Derivative Financial Instruments

3 Months Ended

Jun. 25, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Forward Contracts

The Company uses 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 condensed statements of income. The Company does not apply hedge accounting to these foreign currency derivative instruments.

As of June 25, 2022, the Company held one foreign currency forward contract denominated in British Pound Sterling with a notional value of $1.8 million. The fair value of this contract was not material as of June 25, 2022.

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


	Three Months Ended
	June 25,		June 26,
	2022		2021		Location
Gain (loss) recognized in income:
Foreign currency forward contracts	$	(219)	$	332	Other income (expense)