Fair value of financial instruments (Tables)

9 Months Ended

Mar. 25, 2022

Schedule of Financial Instruments Measured at Fair Value on Recurring Basis

The following table provides details of the financial instruments measured at fair value on a recurring basis, including:


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of March 25, 2022
Assets
Cash equivalents	$	—	$	36,344		$	—	$	36,344
Liquidity funds	—		31,382			—		31,382
Corporate debt securities	—		189,722			—		189,722
U.S. agency and U.S. treasury securities	—		24,748			—		24,748
Derivative assets – current portion	—		182		(1)	—		182
Total	$	—	$	282,378		$	—	$	282,378
Liabilities
Derivative liabilities – current portion	$	—	$	(2,834)		$	—	$	(2,834)
Derivative liabilities – non-current portion	—		(524)			—		(524)
Total	$	—	$	(3,358)	(2)	$	—	$	(3,358)


	Fair Value Measurements at Reporting Date Using
(amount in thousands)	Level 1		Level 2			Level 3		Total
As of June 25, 2021
Assets
Cash equivalents	$	—	$	80,305		$	—	$	80,305
Liquidity funds	—		31,226			—		31,226
Corporate debt securities	—		171,790			—		171,790
U.S. agency and U.S. treasury securities	—		31,447			—		31,447
Derivative assets – current portion	—		1		(3)	—		1
Total	$	—	$	314,769		$	—	$	314,769
Liabilities
Derivative liabilities – current portion	$	—	$	(5,654)		$	—	$	(5,654)
Derivative liabilities – non-current portion	—		(1,977)			—		(1,977)
Total	$	—	$	(7,631)	(4)	$	—	$	(7,631)

(1)Foreign currency forward contracts with a notional amount of $32.0 million and of 0.8 million Canadian dollars.

(2)Foreign currency forward contracts with a notional amount of $103.0 million and two interest rate swap agreements with an aggregate notional amount of $125.1 million.

(3)Foreign currency forward contracts with an aggregate notional amount of $2.0 million.

(4)Foreign currency forward contracts with an aggregate notional amount of $128.0 million and of 0.4 million Canadian dollars and two interest rate swap agreements with an aggregate notional amount of $125.1 million.

Schedule of Impacts of Derivative Gain (Loss) of Cash Flow Hedges

The following table provides a summary of the impact of derivative gain (loss) of the Company’s foreign currency forward contracts and interest rate swaps which were designated as cash flow hedges on the unaudited condensed consolidated statements of operations and other comprehensive income:


		Three Months Ended				Nine Months Ended
(amount in thousands)	Financial statements line item	March 25, 2022		March 26, 2021		March 25, 2022		March 26, 2021
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income	$	1,009	$	(6,098)	$	2,558	$	(5,289)
Interest rate swaps	Other comprehensive income	882		453		1,885		1,196
Total derivatives gain (loss) recognized in other comprehensive income (loss)		$	1,891	$	(5,645)	$	4,443	$	(4,093)
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Foreign currency forward contracts	Cost of revenues	$	1,117	$	(1,470)	$	6,216	$	(3,190)
Foreign currency forward contracts	SG&A	46		(62)		258		(135)
Foreign currency forward contracts	Foreign exchange loss, net	(2,165)		2,491		(7,438)		2,604
Interest rate swaps	Interest expense	(223)		(314)		(736)		(1,009)
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings		$	(1,225)	$	645	$	(1,700)	$	(1,730)
Change in net unrealized gain (loss) on derivatives instruments		$	666	$	(5,000)	$	2,743	$	(5,823)

Schedule of Derivative Financial Instruments

The following table provides the fair values of the Company’s derivative financial instruments for the periods presented:


	March 25, 2022				June 25, 2021
(amount in thousands)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	19	$	(405)	$	—	$	(1,379)

Derivatives designated as hedging instruments
Foreign currency forward contracts	163		(1,289)		1		(2,703)
Interest rate swaps	—		(1,664)		—		(3,549)
Derivatives, gross balances	$	182	$	(3,358)	$	1	$	(7,631)

Schedule of Derivative Financial Instruments in the Unaudited Condensed Consolidated Balance Sheets

The Company recorded the fair value of derivative financial instruments in the unaudited condensed consolidated balance sheets as follows:


Derivative Financial Instruments			Balance Sheet line item

Fair Value of Derivative Assets			Other current assets
Fair Value of Derivative Liabilities			Accrued expenses
Fair Value of Derivative Liabilities			Other non-current liabilities

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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