Derivative Financial Instruments

12 Months Ended

Mar. 27, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Forward Contracts

Beginning in fiscal year 2020, the Company began using foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-functional currency balance sheet exposures. The Company recognizes both the gains and losses on foreign currency forward contracts and the gains and losses on the remeasurement of non-functional currency assets and liabilities within "Other income (expense)" in the consolidated statements of income. The Company does not apply hedge accounting to these foreign currency derivative instruments.

As of March 27, 2021, the Company held one foreign currency forward contract denominated in British Pound Sterling with a notional value of $13.6 million. The fair value of this contract was not material as of March 27, 2021.

The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):


	Fiscal Years Ended
	March 27, 2021		March 28, 2020		March 30, 2019		Location
Gain (loss) recognized in income
Foreign currency forward contracts	$	3,212	$	(4,226)	$	—	Other income (expense)