DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Jun. 28, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

As of June 28, 2014, the Company had outstanding foreign currency forward contracts of $62.4 million. These contract maturity dates extend through June 2017. As of June 28, 2014, the net amount of existing gains expected to be reclassified into earnings within the next 12 months is $1.4 million. During the fiscal year ended June 28, 2014, the Company entered into $15.2 million of foreign currency forward contracts and settled $22.5 million of such contracts. During the fiscal year ended June 29, 2013, the Company entered into $34.7 million of foreign currency forward contracts and settled $22.7 million of such contracts. During the fiscal year ended June 30, 2012, the Company entered into $41.1 million of foreign currency forward contracts and settled $21.2 million of such contracts.

Subsequent to June 28, 2014, the Company entered into $5.4 million of additional foreign currency forward contracts that extended our hedge position through September 2017.

The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheets as of June 28, 2014 and June 29, 2013 (in thousands):

		June 28, 2014		June 29, 2013
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Fair Value
Foreign currency forward contracts	Other current assets	$	2,034	$	760
Foreign currency forward contracts	Other long-term assets	$	1,607	$	1,669
Foreign currency forward contracts	Other current liabilities	$	—	$	(145	)
Foreign currency forward contracts	Other long-term liabilities	$	—	$	(289	)

The following table summarizes the gain (loss) of derivative instruments on the Consolidated Statement of Operations for the fiscal year 2014 (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 June 28, 2014
Settled foreign currency forward contracts	$	404	$	421	$	(825	)	$	—
Unsettled foreign currency forward contracts	909		1,494		—			2,403
Total	$	1,313	$	1,915	$	(825	)	$	2,403

The following table summarizes the gain (loss) of derivative instruments on the Consolidated Statement of Operations for the fiscal year 2013 (in thousands):

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 June 29, 2013
Settled foreign currency forward contracts	$	(479	)	$	1,060	$	(581	)	$	—
Unsettled foreign currency forward contracts	(180		)	1,493		—			1,313
Total	$	(659	)	$	2,553	$	(581	)	$	1,313

The following table summarizes the gain (loss) of derivative instruments on the Consolidated Statement of Operations for the fiscal year 2012 (in thousands):

Derivatives Designated as Hedging Instruments	AOCI Balance as of July 2, 2011		Effective Portion Recorded In AOCI			Effective Portion Reclassified From AOCI Into Cost of Sales		AOCI Balance as of June 30, 2012
Settled foreign currency forward contracts	$	1,035	$	(1,119	)	$	84	$	—
Unsettled foreign currency forward contracts	705		(1,364		)	—		(659		)
Total	$	1,740	$	(2,483	)	$	84	$	(659	)

As of June 28, 2014, the Company does not have any foreign exchange contracts with credit-risk-related contingent features. The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China operations. The Company does not currently manage these risk exposures by using derivative instruments.