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DERIVATIVE FINANCIAL INSTRUMENTS
 12 Months Ended
Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
As of July 1, 2023, the Company did not have any outstanding foreign currency forward contracts. During the fiscal year ended July 2, 2022, the Company entered into $13.9 million of foreign currency forward contracts and settled $24.6 million of such contracts.
On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of September 30, 2022, related to the borrowings outstanding under the term loan with Wells Fargo Bank. This interest rate swap contract was terminated on August 14, 2020 when the Company entered into a loan and security agreement with Bank of America. At date of termination this interest rate swap was in a liability position of $148,400, which will be amortized to interest expense over the original term of the swap.
On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of November 1, 2023, related to the borrowings outstanding under the line of credit with Wells Fargo Bank. This interest rate swap contract was terminated on August 14, 2020 when the Company entered into a loan and security agreement with Bank of America. At date of termination this interest rate swap was in a liability position of $776,500, which will be amortized to interest expense over the original term of the swap.
The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2023 (in thousands):
Derivatives Designated as Hedging InstrumentsClassification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)AOCI Balance
as of
July 2, 2022		Effective
Portion
Recorded In
AOCI		Effective Portion
Reclassified From
AOCI Into Income		AOCI Balance
as of
July 1, 2023
Forward contractsCost of sales$(79)$— $79 $— 
Interest rate swapInterest expense(346)— 249 (97)
Total$(425)$— $328 $(97)

The following table summarizes the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the fiscal year 2022 (in thousands):
Derivatives Designated as Hedging InstrumentsClassification 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
July 2, 2022
Forward contractsCost of sales$2,721 $950 $(3,750)$(79)
Interest rate swapInterest expense(649)— 303 (346)
Total$2,072 $950 $(3,447)$(425)
As of July 1, 2023, 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.