DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Mar. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of March 30, 2019, the aggregate notional amount of the Company’s outstanding foreign currency contracts along with their unrealized gains are expected to mature as summarized below (in thousands):

Quarter Ending	Notional Contracts in MXN		Notional Contracts in USD		Estimated Fair Value
June 29, 2019	$	142,947	$	6,828	$	483
September 28, 2019	$	148,468	$	6,740	$	741
December 28, 2019	$	152,613	$	7,187	$	399
March 28, 2020	$	146,613	$	6,553	$	631
June 27, 2020	$	138,213	$	6,257	$	430

Summerized Fair Value of Derivative Instruments in Consolidated Balance Sheets

The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of March 30, 2019 and June 30, 2018 (in thousands):

		March 30, 2019		June 30, 2018
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Fair Value
Foreign currency forward contracts & swaps	Other current assets	$	2,254	$	23
Foreign currency forward contracts & swaps	Other long-term assets	$	430	$	477
Foreign currency forward contracts & swaps	Other current liabilities	$	—	$	(1,618	)
Foreign currency forward contracts & swaps	Other long-term liabilities	$	—	$	(58	)
Interest rate swap	Other current assets	$	8	$	20
Interest rate swap	Other long-term assets	$	—	$	4

Gain (Loss) of Derivative Instruments in Statement of Operations

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 30, 2019 and March 31, 2018, respectively (in thousands):

Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of December 29, 2018			Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income			AOCI Balance as of March 30, 2019
Forward contracts & swaps	Cost of sales	$	1,178		$	1,059	$	(194	)	$	2,043
Interest rate swap	Interest expense	13			1		(7		)	7
Total		$	1,191		$	1,060	$	(201	)	$	2,050
Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of December 30, 2017			Effective Portion Recorded In AOCI (1)		Effective Portion Reclassified From AOCI Into Income			AOCI Balance as of March 31, 2018
Forward contracts & swaps	Cost of sales	$	(2,972	)	$	2,830	$	897		$	755
Interest rate swap	Interest expense	(16		)	13		14			11
Total		$	(2,988	)	$	2,843	$	911		$	766

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 30, 2019 and March 31, 2018, respectively (in thousands):

Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of June 30, 2018			Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income			AOCI Balance as of March 30, 2019
Forward contracts & swaps	Cost of sales	$	(988	)	$	2,308	$	723		$	2,043
Interest rate swap	Interest expense	19			2		(14		)	7
Total		$	(969	)	$	2,310	$	709		$	2,050
Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of July 1, 2017			Effective Portion Recorded In AOCI (1)		Effective Portion Reclassified From AOCI Into Income			AOCI Balance as of March 31, 2018
Forward contracts & swaps	Cost of sales	$	(2,707	)	$	39	$	3,423		$	755
Interest rate swap	Interest expense	(68		)	12		67			11
Total		$	(2,775	)	$	51	$	3,490		$	766

⁽¹⁾ The effective portion recorded in AOCI for the three and nine months ended March 31, 2018 is net of the adoption of ASU 2018-02 which required a reclassification from AOCI to retained earnings for the stranded tax effects resulting from the Tax Cuts and Jobs Act.