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Fair Value of Financial Instruments and Non-financial Assets and Liabilities
9 Months Ended
Mar. 26, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments and Non-financial Assets and Liabilities

15.  Fair Value of Financial Instruments and Non-Financial Assets and Liabilities

The Company may use derivative financial instruments such as foreign currency forward contracts or interest rate swaps to reduce its ongoing business exposures to fluctuations in foreign currency exchange rates or interest rates.  The Company does not enter into derivative contracts for speculative purposes.

On January 5, 2017 and February 24, 2017, the Company entered into two interest rate swaps, with notional amounts of $20,000 and $30,000, respectively. As a result, the Company was a party to three interest rate swaps as of March 26, 2017, including the aforementioned $20,000 interest rate swap (“Swap A”) and the $30,000 interest rate swap (“Swap B”), as well as a historical interest rate swap that was de-designated on November 26, 2012 and terminates on May 24, 2017. Swap A and Swap B are designated hedges.

Swap A and Swap B each fix LIBOR at 1.94% for the respective amount of variable rate borrowings for the five-year period beginning May 24, 2017. In accordance with hedge accounting, Swap A and Swap B are reflected on the balance sheet at fair value with a corresponding balance in accumulated other comprehensive loss, and impact earnings commensurate with the forecasted transaction.

For the nine months ended March 26, 2017 and March 27, 2016, the Company’s financial assets and liabilities accounted for at fair value (including the Level 2 interest rate swaps discussed above) had an insignificant impact to the Company’s financial condition and results of operations. Accordingly, the Company has provided no further fair value disclosures. Additionally, there were no transfers into or out of the levels of the fair value hierarchy.