Other Comprehensive Income

9 Months Ended

Jun. 27, 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 nine months ended June27, 2015 and June  28, 2014 was as follows:

	June 27, 2015
	Three Months Ended						Nine 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	$	1,512	$	-	$	1,512	$	(9,638)	$	-	$	(9,638)
Derivative instruments:
Unrealized net (loss) gain		(313)		112		(201)		2,818		(1,022)		1,796
Net gain reclassified to earnings		(865)		314		(551)		(3,658)		1,328		(2,330)
Defined benefit pension plan:
Unrealized net (loss) gain		(694)		209		(485)		1,149		(347)		802
Net loss reclassified to earnings		121		(37)		84		380		(115)		265
Currency exchange rate change		(123)		-		(123)		835		-		835
Other comprehensive income (loss)	$	(362)	$	598	$	236	$	(8,114)	$	(156)	$	(8,270)

	June 28, 2014
	Three Months Ended						Nine 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	$	173	$	-	$	173	$	104	$	-	$	104
Derivative instruments:
Unrealized net loss		(148)		54		(94)		(297)		109		(188)
Net loss (gain) reclassified to earnings		46		(18)		28		(614)		224		(390)
Defined benefit pension plan:
Unrealized net gain		900		(271)		629		1,503		(453)		1,050
Net loss reclassified to earnings		117		(36)		81		350		(106)		244
Currency exchange rate change		13		-		13		(62)		-		(62)
Other comprehensive income	$	1,101	$	(271)	$	830	$	984	$	(226)	$	758

The changes in the net-of-tax balances of each component of AOCI during the three and nine months ended June27, 2015 and June  28, 2014 were as follows:

	June 27, 2015
	Three Months Ended								Nine 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	$	1,070	$	1,116	$	(4,868)	$	(2,682)	$	12,220	$	898	$	(7,294)	$	5,824
Other comprehensive
income (loss) before reclassifications		1,512		(201)		(608)		703		(9,638)		1,796		1,637		(6,205)
Amounts reclassified to earnings		-		(551)		84		(467)		-		(2,330)		265		(2,065)
Other comprehensive income (loss)		1,512		(752)		(524)		236		(9,638)		(534)		1,902		(8,270)
Ending balance	$	2,582	$	364	$	(5,392)	$	(2,446)	$	2,582	$	364	$	(5,392)	$	(2,446)

	June 28, 2014
	Three Months Ended								Nine 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	$	17,250	$	(35)	$	(4,950)	$	12,265	$	17,319	$	477	$	(5,459)	$	12,337
Other comprehensive
income (loss) before reclassifications		173		(94)		642		721		104		(188)		988		904
Amounts reclassified to earnings		-		28		81		109		-		(390)		244		(146)
Other comprehensive income		173		(66)		723		830		104		(578)		1,232		758
Ending balance	$	17,423	$	(101)	$	(4,227)	$	13,095	$	17,423	$	(101)	$	(4,227)	$	13,095

The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI for the three and nine months ended June27, 2015 and June  28, 2014 was as follows:

			Three Months Ended				Nine Months Ended			Affected Line Item in the
		June 27,		June 28,		June 27,		June 28,		Consolidated Statements
		2015		2014		2015		2014		of Income
Derivative instruments:	(in thousands)
Currency exchange contracts		$	865	$	(46)	$	3,658	$	614	Revenue
Total net gain (loss) included in income
before income taxes			865		(46)		3,658		614
Income tax (expense) benefit			(314)		18		(1,328)		(224)
Total net gain (loss) included in net income			551		(28)		2,330		390
Defined benefit pension plan:
Actuarial loss			(60)		(58)		(207)		(191)	Cost of sales
Actuarial loss			(38)		(37)		(108)		(99)	Selling and marketing
Actuarial loss			(23)		(22)		(65)		(60)	General and administrative
Total loss included in income
before income taxes			(121)		(117)		(380)		(350)
Income tax benefit			37		36		115		106
Total net losses included in net income			(84)		(81)		(265)		(244)
Total net-of-tax reclassifications out of
accumulated other comprehensive
income (loss) included in net income		$	467	$	(109)	$	2,065	$	146