Other Comprehensive Income

6 Months Ended

Mar. 28, 2015

Other Comprehensive Income [Abstract]

Other Comprehensive Income

11. Other Comprehensive Income

Other Comprehensive Income, a component of Shareholders’ Equity, consists of foreign currency translation adjustments, gains or losses on derivative instruments, and defined benefit pension plan adjustments.

Income tax expense or benefit allocated to each component of Other Comprehensive Income for the three and six months ended March28, 2015 and March 29, 2014 was as follows:

	March 28, 2015
	Three Months Ended						Six Months Ended
			Tax		Net of						Net of
	Pretax		(Expense)		Tax		Pretax		Tax		Tax
	Amount		or Benefit		Amount		Amount		Expense		Amount
	(in thousands)
Foreign currency translation adjustments	$	(6,338)	$	-	$	(6,338)	$	(11,150)	$	-	$	(11,150)
Derivative instruments:
Unrealized net gain		869		(316)		553		3,131		(1,134)		1,997
Net gain reclassified to earnings		(1,095)		398		(697)		(2,793)		1,014		(1,779)
Defined benefit pension plan:
Unrealized net gain		1,290		(389)		901		1,843		(556)		1,287
Net loss reclassified to earnings		123		(37)		86		259		(78)		181
Currency exchange rate change		640		-		640		958		-		958
Other comprehensive loss	$	(4,511)	$	(344)	$	(4,855)	$	(7,752)	$	(754)	$	(8,506)

	March 29, 2014
	Three Months Ended						Six Months Ended
			Tax		Net of				Tax		Net of
	Pretax		(Expense)		Tax		Pretax		(Expense)		Tax
	Amount		or Benefit		Amount		Amount		or Benefit		Amount
	(in thousands)
Foreign currency translation adjustments	$	(1,029)	$	-	$	(1,029)	$	(69)	$	-	$	(69)
Derivative instruments:
Unrealized net loss		(190)		69		(121)		(149)		55		(94)
Net gain reclassified to earnings		(1,163)		426		(737)		(660)		242		(418)
Defined benefit pension plan:
Unrealized net (loss) gain		(17)		5		(12)		603		(182)		421
Net loss reclassified to earnings		117		(35)		82		233		(70)		163
Currency exchange rate change		11		-		11		(75)		-		(75)
Other comprehensive loss	$	(2,271)	$	465	$	(1,806)	$	(117)	$	45	$	(72)

The changes in the net-of-tax balances of each component of AOCI during the three and six months ended March 28, 2015 and March 29, 2014 were as follows:

	March 28, 2015
	Three Months Ended								Six Months Ended
	Foreign		Unrealized		Defined				Foreign		Unrealized		Defined
	Currency		Gain (Loss)		Benefit				Currency		Gain (Loss)		Benefit
	Translation		on Derivative		Pension Plan				Translation		on Derivative		Pension Plan
	Adjustments		Instruments		Adjustments		Total		Adjustments		Instruments		Adjustments		Total
	(in thousands)
Beginning balance	$	7,408	$	1,260	$	(6,495)	$	2,173	$	12,220	$	898	$	(7,294)	$	5,824
Other comprehensive
income (loss) before reclassifications		(6,338)		553		1,541		(4,244)		(11,150)		1,997		2,245		(6,908)
Amounts reclassified to earnings		-		(697)		86		(611)		-		(1,779)		181		(1,598)
Other comprehensive income (loss)		(6,338)		(144)		1,627		(4,855)		(11,150)		218		2,426		(8,506)
Ending balance	$	1,070	$	1,116	$	(4,868)	$	(2,682)	$	1,070	$	1,116	$	(4,868)	$	(2,682)

	March 29, 2014
	Three Months Ended								Six Months Ended
	Foreign		Unrealized		Defined				Foreign		Unrealized		Defined
	Currency		Gain (Loss)		Benefit				Currency		Gain (Loss)		Benefit
	Translation		Derivative		Pension Plan				Translation		on Derivative		Pension Plan
	Adjustments		Instruments		Adjustments		Total		Adjustments		Instruments		Adjustments		Total
	(in thousands)
Beginning balance	$	18,279	$	823	$	(5,031)	$	14,071	$	17,319	$	477	$	(5,459)	$	12,337
Other comprehensive
income (loss) before reclassifications		(1,029)		(121)		(1)		(1,151)		(69)		(94)		346		183
Amounts reclassified to earnings		-		(737)		82		(655)		-		(418)		163		(255)
Other comprehensive income (loss)		(1,029)		(858)		81		(1,806)		(69)		(512)		509		(72)
Ending balance	$	17,250	$	(35)	$	(4,950)	$	12,265	$	17,250	$	(35)	$	(4,950)	$	12,265

The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI for the three and six months ended March 28, 2015 and March 29, 2014 was as follows:

			Three Months Ended				Six Months Ended			Affected Line Item in the
		March 28,		March 29,		March 28,		March 29,		Consolidated Statements
		2015		2014		2015		2014		of Income
Derivative instruments:	(in thousands)
Currency exchange contracts		$	1,095	$	1,163	$	2,793	$	660	Revenue
Total net gains included in income
before income taxes			1,095		1,163		2,793		660
Income tax expense			(398)		(426)		(1,014)		(242)
Total net gains included in net income			697		737		1,779		418
Defined benefit pension plan:
Actuarial losses			(67)		(58)		(142)		(127)	Cost of sales
Actuarial losses			(35)		(37)		(73)		(66)	Selling and marketing
Actuarial losses			(21)		(22)		(44)		(40)	General and administrative
Total losses included in income
before income taxes			(123)		(117)		(259)		(233)
Income tax benefit			37		35		78		70
Total net losses included in net income			(86)		(82)		(181)		(163)
Total net-of-tax reclassifications out of
accumulated other comprehensive
income (losses) included in net income		$	611	$	655	$	1,598	$	255