Accumulated Other Comprehensive Income

6 Months Ended

Mar. 29, 2024

Accumulated Other Comprehensive Loss

Other comprehensive income/loss consists of three components: unrealized gains or losses on our AFS marketable investment securities, gains and losses on derivatives in cash flow hedge relationships not yet recognized in earnings, and the gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies. Until realized and reported as a component of net income, these comprehensive income items accumulate and are included within accumulated other comprehensive loss, a subsection within stockholders’ equity in our unaudited interim condensed consolidated balance sheets. Unrealized gains and losses on our investment securities are reclassified from AOCI into earnings when realized upon sale, and are determined based on specific identification of securities sold. Unrealized gains and losses on our cash flow hedges are reclassified from AOCI into earnings when the hedged operating expenses are recognized, which is also when the gains and losses are realized.

The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of AOCI into earnings affect our unaudited interim condensed consolidated statements of operations (in thousands):


	Fiscal Quarter Ended March 29, 2024								Fiscal Year-To-Date Ended March 29, 2024
	Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total		Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total
Beginning Balance	$	(902)	$	1,894	$	(22,420)	$	(21,428)	$	(2,858)	$	(197)	$	(33,929)	$	(36,984)
Other comprehensive income before reclassifications:
Unrealized gains/(losses)	(295)		(2,425)		—		(2,720)		1,716		162		—		1,878
Foreign currency translation gains/(losses) (1)	—		—		(6,204)		(6,204)		—		—		5,305		5,305
Income tax effect - benefit/(expense) (3)	—		467		—		467		—		(181)		—		(181)
Net of tax	(295)		(1,958)		(6,204)		(8,457)		1,716		(19)		5,305		7,002
Amounts reclassified from AOCI into earnings:
Realized gains (2)	119		841		—		960		52		1,029		—		1,081
Income tax effect - benefit/(expense) (3)	(8)		(135)		—		(143)		4		(171)		—		(167)
Net of tax	111		706		—		817		56		858		—		914
Net current-period other comprehensive income/(loss)	(184)		(1,252)		(6,204)		(7,640)		1,772		839		5,305		7,916
Ending Balance	$	(1,086)	$	642	$	(28,624)	$	(29,068)	$	(1,086)	$	642	$	(28,624)	$	(29,068)


	Fiscal Quarter Ended March 31, 2023								Fiscal Year-To-Date Ended March 31, 2023
	Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total		Investment Securities		Cash Flow Hedges		Currency Translation Adjustments		Total
Beginning Balance	$	(4,630)	$	(151)	$	(27,094)	$	(31,875)	$	(5,986)	$	(4,483)	$	(41,172)	$	(51,641)
Other comprehensive income before reclassifications:
Unrealized gains	1,572		372		—		1,944		3,104		5,552		—		8,656
Foreign currency translation gains (1)	—		—		2,423		2,423		—		—		16,501		16,501
Income tax effect - expense	—		(61)		—		(61)		—		(61)		—		(61)
Net of tax	1,572		311		2,423		4,306		3,104		5,491		16,501		25,096
Amounts reclassified from AOCI into earnings:
Realized losses (2)	62		86		—		148		(151)		(918)		—		(1,069)
Income tax effect - benefit (3)	1		(6)		—		(5)		38		150		—		188
Net of tax	63		80		—		143		(113)		(768)		—		(881)
Net current-period other comprehensive income	1,635		391		2,423		4,449		2,991		4,723		16,501		24,215
Ending Balance	$	(2,995)	$	240	$	(24,671)	$	(27,426)	$	(2,995)	$	240	$	(24,671)	$	(27,426)

(1)The foreign currency translation gains during the fiscal year-to-date period ended March 29, 2024, and during the second quarter of fiscal 2023 and fiscal year-to-date period ended March 31, 2023, were primarily due to the strengthening of other foreign currencies as compared to the U.S. dollar. The foreign currency translation losses during the second quarter of fiscal 2024 were due to the weakening of other foreign currencies as compared to the U.S. dollar.

(2)Realized gains or losses, if any, from the sale of our AFS investment securities or from foreign currency translation adjustments are included within other income/(expense), net in our unaudited interim condensed consolidated statements of operations. Realized gains or losses on foreign currency contracts designated as cash flow hedges are included in operating expenses in the unaudited interim condensed consolidated statements of operations.

(3)The income tax benefit or expense is included within provision for income taxes in our unaudited interim condensed consolidated statements of operations.