DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Apr. 02, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of April 2, 2022, the aggregate notional amount of the Company’s outstanding foreign currency contracts along with their unrealized gains (losses) are expected to mature as summarized below (in thousands):

Quarter Ending	Notional Contracts in MXN		Notional Contracts in USD		Estimated Fair Value
July 2, 2022	$	141,493	$	6,726	$	344

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 April 2, 2022 and July 3, 2021 (in thousands):

		April 2, 2022		July 3, 2021
Derivatives Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Fair Value
Foreign currency forward contracts	Other current assets	$	344	$	3,614

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 April 2, 2022 and April 3, 2021, respectively (in thousands):

Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of January 1, 2022		Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income		AOCI Balance as of April 2, 2022
Forward contracts	Cost of sales	$	(45)	$	302	$	(69)	$	188
Interest rate swap	Interest expense	(498)		—		76		(422)
Total		$	(543)	$	302	$	7	$	(234)
Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of December 26, 2020		Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income		AOCI Balance as of April 3, 2021
Forward contracts	Cost of sales	$	3,493	$	(63)	$	(644)	$	2,786
Interest rate swap	Interest expense	(799)		—		75		(724)
Total		$	2,694	$	(63)	$	(569)	$	2,062

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the nine months ended April 2, 2022 and April 3, 2021, respectively (in thousands):

Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of July 3, 2021		Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income		AOCI Balance as of April 2, 2022
Forward contracts	Cost of sales	$	2,721	$	864	$	(3,397)	$	188
Interest rate swap	Interest expense	(649)		—		227		(422)
Total		$	2,072	$	864	$	(3,170)	$	(234)
Derivatives Designated as Hedging Instruments	Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	AOCI Balance as of June 27, 2020		Effective Portion Recorded In AOCI		Effective Portion Reclassified From AOCI Into Income		AOCI Balance as of April 3, 2021
Forward contracts	Cost of sales	$	(759)	$	3,938	$	(393)	$	2,786
Interest rate swap	Interest expense	(741)		(223)		240		(724)
Total		$	(1,500)	$	3,715	$	(153)	$	2,062