DERIVATIVE FINANCIAL INSTRUMENTS | Derivative Financial Instruments As of March 31, 2018 , the Company had outstanding foreign currency forward contracts and swaps with a total notional amount of $45.6 million . The maturity dates for these contracts and swaps extend through December 2019 . For the three months ended March 31, 2018 , the Company did not enter into any foreign currency forward contracts and settled $5.7 million of such contracts. During the same period of the previous year, the Company did not enter into foreign currency forward contracts and settled $5.2 million of such contracts. For the nine months ended March 31, 2018 , the Company entered into foreign currency forward contracts of $7.2 million and settled $22.3 million of such contracts. During the same period of the previous year, the Company entered into foreign currency forward contracts of $6.7 million and settled $15.5 million of such contracts. As of March 31, 2018 , the aggregate notional amount of the Company’s outstanding foreign currency contracts and swaps along with their unrealized gains (losses) are expected to mature as summarized below (in thousands): Quarter Ending Notional Contracts and Swaps in MXN Notional Contracts and Swaps in USD Estimated Fair Value June 30, 2018 $ 95,500 $ 5,811 $ (592 ) September 29, 2018 $ 90,443 $ 5,301 $ (426 ) December 29, 2018 $ 125,328 $ 6,746 $ (87 ) March 30, 2019 $ 137,944 $ 6,979 $ 248 June 29, 2019 $ 142,947 $ 6,828 $ 556 September 28, 2019 $ 148,468 $ 6,740 $ 826 December 28, 2019 $ 152,613 $ 7,187 $ 507 On October 1, 2014, the Company entered into an interest rate swap contract with an effective date of September 1, 2015 and a termination date of September 3, 2019, with a notional amount of $25.0 million related to the borrowings outstanding under the term loan. This interest rate swap pays the Company variable interest at the one month LIBOR rate, and the Company pays the counter party a fixed interest rate. The fixed interest rate for the contract is 1.97% that replaces the one month LIBOR rate component of our contractual interest to be paid to WFB as part of our term loan. Based on the terms of the interest rate swap contract and the underlying borrowings outstanding under the term loan, the interest rate contract was determined to be effective, and thus qualifies as a cash flow hedge. The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of March 31, 2018 and July 1, 2017 (in thousands): March 31, 2018 July 1, 2017 Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Fair Value Foreign currency forward contracts & swaps Other current assets $ 248 $ — Foreign currency forward contracts & swaps Other long-term assets $ 1,889 $ 1,010 Foreign currency forward contracts & swaps Other current liabilities $ (1,105 ) $ (4,226 ) Foreign currency forward contracts & swaps Other long-term liabilities $ — $ (886 ) Interest rate swap Other current assets $ 9 $ — Interest rate swap Other long-term assets $ 8 $ — Interest rate swap Other current liabilities $ (3 ) $ (81 ) Interest rate swap Other long-term liabilities $ — $ (22 ) 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 31, 2018 and April 1, 2017 , respectively (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI (1) Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (2,972 ) $ 2,830 $ 897 $ 755 Interest rate swap Interest expense (16 ) 13 14 11 Total $ (2,988 ) $ 2,843 $ 911 $ 766 Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (9,701 ) $ 3,155 $ 1,562 $ (4,984 ) Interest rate swap Interest expense (138 ) (7 ) 53 (92 ) Total $ (9,839 ) $ 3,148 $ 1,615 $ (5,076 ) 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 31, 2018 and April 1, 2017 , respectively (in thousands): Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI (1) Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (2,707 ) $ 39 $ 3,423 $ 755 Interest rate swap Interest expense (68 ) 12 67 11 Total $ (2,775 ) $ 51 $ 3,490 $ 766 Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance Effective Portion Recorded In AOCI Effective Portion Reclassified From AOCI Into Income AOCI Balance Forward contracts & swaps Cost of sales $ (7,245 ) $ (1,751 ) $ 4,012 $ (4,984 ) Interest rate swap Interest expense (328 ) 34 202 (92 ) Total $ (7,573 ) $ (1,717 ) $ 4,214 $ (5,076 ) (1) The effective portion recorded in AOCI for the three and nine months ended March 31, 2018 is net of the adoption of ASU 2018-02 which required a reclassification from AOCI to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act. As of March 31, 2018 , the net amount of unrealized loss expected to be reclassified into earnings within the next 12 months is approximately $0.7 million . As of March 31, 2018 , the Company does not have any foreign exchange contracts with credit-risk-related contingent features. |