DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Mar. 29, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
DERIVATIVE FINANCIAL INSTRUMENTS | ' |
Derivative Financial Instruments |
As of March 29, 2014, the Company had outstanding foreign currency forward contracts with a total notional amount of $67.4 million. The maturity dates for these contracts extend through June 2017. For the three months ended March 29, 2014, the Company entered into foreign currency forward contracts of $5.0 million and settled $5.7 million of such contracts. For the three months ended March 30, 2013, the Company entered into $10.9 million of foreign currency forward contracts and settled $5.8 million of such contracts. |
For the nine months ended March 29, 2014, the Company entered into forward contracts of $15.2 million and settled $17.6 million of such contracts. During the same period of the previous year, the Company entered into foreign currency forward contracts of $21.5 million and settled $17.0 million of such contracts. |
The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of March 29, 2014 and June 29, 2013 (in thousands): |
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| | | 29-Mar-14 | | 29-Jun-13 | | | | | | |
Derivatives Designated as Hedging Instruments | Balance Sheet Location | | Fair Value | | Fair Value | | | | | | |
Foreign currency forward contracts | Other current assets | | $ | 2,020 | | | $ | 760 | | | | | | | |
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Foreign currency forward contracts | Other long-term assets | | $ | 813 | | | $ | 1,669 | | | | | | | |
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Foreign currency forward contracts | Other current liabilities | | $ | — | | | $ | (145 | ) | | | | | | |
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Foreign currency forward contracts | Other long-term liabilities | | $ | (59 | ) | | $ | (289 | ) | | | | | | |
The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended March 29, 2014 and March 30, 2013, respectively (in thousands): |
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Derivatives Designated as Hedging Instruments | AOCI Balance | | Effective | | Effective Portion | | AOCI Balance |
as of | Portion | Reclassified From | as of |
December 28, | Recorded In | AOCI Into | March 29, |
2013 | AOCI | Cost of Sales | 2014 |
Settled foreign currency forward contracts for the three months ended March 29, 2014 | $ | 110 | | | $ | 11 | | | $ | (121 | ) | | $ | — | |
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Unsettled foreign currency forward contracts | 1,515 | | | 313 | | | — | | | 1,828 | |
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Total | $ | 1,625 | | | $ | 324 | | | $ | (121 | ) | | $ | 1,828 | |
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Derivatives Designated as Hedging Instruments | AOCI Balance | | Effective | | Effective Portion | | AOCI Balance |
as of | Portion | Reclassified From | as of March 30, |
December 29, | Recorded In | AOCI Into | 2013 |
2012 | AOCI | Cost of Sales | |
Settled foreign currency forward contracts for the three months ended March 30, 2013 | $ | (9 | ) | | $ | 184 | | | $ | (175 | ) | | $ | — | |
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Unsettled foreign currency forward contracts | 373 | | | 2,449 | | | — | | | 2,822 | |
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Total | $ | 364 | | | $ | 2,633 | | | $ | (175 | ) | | $ | 2,822 | |
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The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the nine months ended March 29, 2014 and March 30, 2013, respectively (in thousands): |
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Derivatives Designated as Hedging Instruments | AOCI Balance | | Effective | | Effective Portion | | AOCI Balance |
as of June 29, | Portion | Reclassified From | as of |
2013 | Recorded In | AOCI Into | March 29, |
| AOCI | Cost of Sales | 2014 |
Settled foreign currency forward contracts for the nine months ended March 29, 2014 | $ | 85 | | | $ | 124 | | | $ | (209 | ) | | $ | — | |
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Unsettled foreign currency forward contracts | 1,228 | | | 600 | | | — | | | 1,828 | |
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Total | $ | 1,313 | | | $ | 724 | | | $ | (209 | ) | | $ | 1,828 | |
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Derivatives Designated as Hedging Instruments | AOCI Balance | | Effective | | Effective Portion | | AOCI Balance |
as of June 30, | Portion | Reclassified From | as of March 30, |
2012 | Recorded In | AOCI Into | 2013 |
| AOCI | Cost of Sales | |
Settled foreign currency forward contracts for the nine months ended March 30, 2013 | $ | (162 | ) | | $ | 675 | | | $ | (513 | ) | | $ | — | |
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Unsettled foreign currency forward contracts | (497 | ) | | 3,319 | | | — | | | 2,822 | |
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Total | $ | (659 | ) | | $ | 3,994 | | | $ | (513 | ) | | $ | 2,822 | |
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The Company does not enter into derivative instruments for trading or speculative purposes. The Company’s counterparties to the foreign currency forward contracts are major financial institutions. These institutions do not require collateral for the contracts and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. As of March 29, 2014, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $1.4 million. As of March 29, 2014, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. |