Fair value of financial instruments (Tables)

6 Months Ended

Dec. 29, 2023

Fair Value Disclosures [Abstract]

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
(in thousands)	Level 1		Level 2			Level 3		Total
As of December 29, 2023
Assets
Cash equivalents	$	—	$	1,172		$	—	$	1,172
Liquidity funds	—		31,736			—		31,736
Certificates of deposit and time deposits	—		136,296			—		136,296
Corporate debt securities	—		121,396			—		121,396
U.S. agency and U.S. treasury securities	—		117,112			—		117,112
Derivative assets – current portion	—		4,391		(1)	—		4,391
Total	$	—	$	412,103		$	—	$	412,103
Liabilities
Derivative liabilities – current portion	$	—	$	(1)		$	—	$	(1)
Total	$	—	$	(1)	(2)	$	—	$	(1)

	Fair Value Measurements at Reporting Date Using
(in thousands)	Level 1		Level 2			Level 3		Total
As of June 30, 2023
Assets
Cash equivalents	$	—	$	401		$	—	$	401
Liquidity funds	—		41,104			—		41,104
Certificates of deposit and time deposits	—		64,607			—		64,607
Corporate debt securities	—		158,078			—		158,078
U.S. agency and U.S. treasury securities	—		55,311			—		55,311
Derivative assets – current portion	—		221		(3)	—		221
Total	$	—	$	319,722		$	—	$	319,722
Liabilities
Derivative liabilities – current portion	$	—	$	(5,236)		$	—	$	(5,236)
Total	$	—	$	(5,236)	(4)	$	—	$	(5,236)

(1)Foreign currency forward contracts with an aggregate notional amount of $125.0 million and 0.3 million Canadian dollars and an interest rate swap agreement with a notional amount of $60.9 million.

(2)Foreign currency forward contracts with an aggregate notional amount of $1.0 million.

(3)Foreign currency forward contracts with an aggregate notional amount of $3.0 million and 0.2 million Canadian dollars and an interest rate swap agreement with a notional amount of $60.9 million.

(4)Foreign currency forward contracts with an aggregate notional amount of $140.0 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				Six Months Ended
(in thousands)	Financial statements line item	December 29, 2023		December 30, 2022		December 29, 2023		December 30, 2022
Derivatives gain (loss) recognized in other comprehensive income (loss):
Foreign currency forward contracts	Other comprehensive income	$	11,119	$	14,754	$	9,554	$	11,762
Interest rate swaps	Other comprehensive income	(75)		310		(153)		826
Total derivatives gain (loss) recognized in other comprehensive income (loss)		$	11,044	$	15,064	$	9,401	$	12,588
Derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings:
Foreign currency forward contracts	Cost of revenues	$	4,783	$	5,534	$	8,455	$	9,328
Foreign currency forward contracts	SG&A	199		230		354		390
Foreign currency forward contracts	Foreign exchange loss, net	(7,205)		(9,485)		(10,420)		(11,990)
Interest rate swaps	Interest expense	(65)		(155)		(154)		(346)
Total derivatives (gain) loss reclassified from accumulated other comprehensive income (loss) into earnings		$	(2,288)	$	(3,876)	$	(1,765)	$	(2,618)
Change in net unrealized gain (loss) on derivatives instruments		$	8,756	$	11,188	$	7,636	$	9,970

Schedule of Derivative Financial Instruments

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

	December 29, 2023				June 30, 2023
(in thousands)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives not designated as hedging instruments
Foreign currency forward and option contracts	$	328	$	(1)	$	2	$	(1,256)
Derivatives designated as hedging instruments
Foreign currency forward contracts	4,001		—		4		(3,980)
Interest rate swaps	62		—		215		—
Derivatives, gross balances	$	4,391	$	(1)	$	221	$	(5,236)

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