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Derivative Financial Instruments | 3 Months Ended
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Sep. 27, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments A significant portion of our operations are in foreign locations, which results in transactions occurring in currencies other than the U.S. Dollar. As a part of our risk management strategy, we use Mexican Peso forward contracts to hedge foreign currency fluctuations for a portion of our Mexican Peso denominated expenses. As of September 27, 2025, the Company had outstanding foreign currency forward contracts with a total notional amount of $6.4 million through the end of the second quarter of fiscal year 2026. During the three months ended September 27, 2025, the Company did not enter into foreign currency forward contracts and settled $6.5 million of contracts. During the same period of the previous year, the Company entered into $16.1 million of foreign currency forward contracts and settled $6.6 million of contracts. Changes in the fair value of the forward contracts are recognized as a component of OCI and will be recognized in cost of sales when the hedged item affects earnings. The amount of net losses expected to be reclassified into earnings in the next 3 months is $0.7 million. The following table summarizes the fair value of the derivative instruments in the Consolidated Balance Sheets as of September 27, 2025 and June 28, 2025 (in thousands):
|  |  |  | Fair Value
Derivatives designated as hedging instruments under Subtopic 815-20 |  | Balance Sheet Location |  | September 27, 2025 |  | June 28, 2025
Foreign currency forward contracts |  | Other current assets |  | $ | 942 |  |  | $ | 1,330 |
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Operations for the three months ended September 27, 2025 and September 28, 2024, respectively (in thousands):
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of June 28, 2025 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of September 27, 2025
Forward contracts | Cost of sales |  | $ | (1,029) |  |  | $ | 1,099 |  |  | $ | (799) |  |  | $ | (729) |
Total |  |  | $ | (1,029) |  |  | $ | 1,099 |  |  | $ | (799) |  |  | $ | (729) |
Derivatives Designated as Hedging Instruments | Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) |  | AOCI Balance as of June 30, 2024 |  | Effective Portion Recorded In AOCI |  | Effective Portion Reclassified From AOCI Into Income |  | AOCI Balance as of September 28, 2024
Forward contracts | Cost of sales |  | $ | 215 |  |  | $ | 540 |  |  | $ | 298 |  |  | $ | 1,053 |
Total |  |  | $ | 215 |  |  | $ | 540 |  |  | $ | 298 |  |  | $ | 1,053 |
As of September 27, 2025, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our lines of credit and foreign currency risk resulting from our China and Vietnam operations. The Company does not currently manage these risk exposures by using derivative instruments.

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