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Note 6 - Derivative Financial Instruments
 12 Months Ended
Apr. 27, 2019
Notes to Financial Statements  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
6.
DERIVATIVE FINANCIAL INSTRUMENTS
 
From time to time, we enter into aluminum swap contracts to partially mitigate our exposure to changes in the cost of aluminum cans. Such financial instruments are designated and accounted for as cash flow hedges. Accordingly, gains or losses attributable to the effective portion of the cash flow hedges are reported in Accumulated Other Comprehensive Income (Loss) (“AOCI”) and reclassified into cost of sales in the period in which the hedged transaction affects earnings. The ineffective portion of the change in fair value of our cash flow hedge was immaterial. The following summarizes the gains (losses) recognized in the Consolidated Statements of Income and AOCI relative to the cash flow hedges for Fiscal
2019,
Fiscal
2018
and Fiscal
2017:
        
 
   
(In thousands)
  
   
Fiscal
    
Fiscal
    
Fiscal
  
   
2019
    
2018
    
2017
  
Recognized in AOCI-
                        
Gain (loss) before income taxes
   $
  (6,138
 )   $
9,498
     $
(984
 )
Less income tax provision (benefit)
    
(1,468
 )    
3,085
      
(365
 )
Net
    
(4,670
 )    
6,413
      
(619
 )
Reclassified from AOCI to cost of sales-
                        
Gain (loss) before income taxes
    
2,100
      
2,569
      
(2,749
 )
Less income tax provision (benefit)
    
452
      
1,383
      
(1,020
 )
Net
    
1,648
      
1,186
      
(1,729
 )
                         
Net change to AOCI
   $
(6,318
 )   $
5,227
     $
1,110
  
 
As of
April 27, 2019,
the notional amount of our outstanding aluminum swap contracts was
$41.5
million and, assuming
no
change in the commodity prices,
$2.0
million of unrealized loss before tax will be reclassified from AOCI and recognized in cost of sales over the next
12
months. See Note
1.
 
As of
April 27, 2019,
the fair value of the derivative liability was
$2.0
million, which was included in accrued liabilities. As of
April 28, 2018,
the fair value of the derivative asset was
$6.2
million, which was included in prepaid and other assets. Such valuation does
not
entail a significant amount of judgment and the inputs that are significant to the fair value measurement are Level
2
as defined by the fair value hierarchy as they are observable market based inputs or unobservable inputs that are corroborated by market data.