DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Mar. 29, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Derivative Financial Instruments

As of March 29, 2014, the Company had outstanding foreign currency forward contracts with a total notional amount of $67.4 million. The maturity dates for these contracts extend through June 2017. For the three months ended March 29, 2014, the Company entered into foreign currency forward contracts of $5.0 million and settled $5.7 million of such contracts. For the three months ended March 30, 2013, the Company entered into $10.9 million of foreign currency forward contracts and settled $5.8 million of such contracts.

For the nine months ended March 29, 2014, the Company entered into forward contracts of $15.2 million and settled $17.6 million of such contracts. During the same period of the previous year, the Company entered into foreign currency forward contracts of $21.5 million and settled $17.0 million of such contracts.

The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of March 29, 2014 and June 29, 2013 (in thousands):

		March 29, 2014			June 29, 2013
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value			Fair Value
Foreign currency forward contracts	Other current assets	$	2,020		$	760
Foreign currency forward contracts	Other long-term assets	$	813		$	1,669
Foreign currency forward contracts	Other current liabilities	$	—		$	(145	)
Foreign currency forward contracts	Other long-term liabilities	$	(59	)	$	(289	)

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 29, 2014 and March 30, 2013, respectively (in thousands):

Derivatives Designated as Hedging Instruments	AOCI Balance as of December 28, 2013			Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Cost of  Sales			AOCI Balance as of March 29, 2014
Settled foreign currency forward contracts for the three months ended March 29, 2014	$	110		$	11	$	(121	)	$	—
Unsettled foreign currency forward contracts	1,515			313		—			1,828
Total	$	1,625		$	324	$	(121	)	$	1,828
Derivatives Designated as Hedging Instruments	AOCI Balance as of December 29, 2012			Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Cost of  Sales			AOCI Balance as of March 30, 2013
Settled foreign currency forward contracts for the three months ended March 30, 2013	$	(9	)	$	184	$	(175	)	$	—
Unsettled foreign currency forward contracts	373			2,449		—			2,822
Total	$	364		$	2,633	$	(175	)	$	2,822

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 29, 2014 and March 30, 2013, respectively (in thousands):

Derivatives Designated as Hedging Instruments	AOCI Balance as of June 29, 2013			Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Cost of  Sales			AOCI Balance as of March 29, 2014
Settled foreign currency forward contracts for the nine months ended March 29, 2014	$	85		$	124	$	(209	)	$	—
Unsettled foreign currency forward contracts	1,228			600		—			1,828
Total	$	1,313		$	724	$	(209	)	$	1,828
Derivatives Designated as Hedging Instruments	AOCI Balance as of June 30, 2012			Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Cost of  Sales			AOCI Balance as of March 30, 2013
Settled foreign currency forward contracts for the nine months ended March 30, 2013	$	(162	)	$	675	$	(513	)	$	—
Unsettled foreign currency forward contracts	(497		)	3,319		—			2,822
Total	$	(659	)	$	3,994	$	(513	)	$	2,822

The Company does not enter into derivative instruments for trading or speculative purposes. The Company’s counterparties to the foreign currency forward contracts are major financial institutions. These institutions do not require collateral for the contracts and the Company believes that the risk of the counterparties failing to meet their contractual obligations is remote. As of March 29, 2014, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $1.4 million. As of March 29, 2014, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.