Other Comprehensive Income

3 Months Ended

Jan. 02, 2016

Other Comprehensive Income (Loss) [Abstract]

Other Comprehensive Income

NOTE 11OTHER COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss), 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 (loss) for the three months ended January2, 2016 and December  27, 2014 was as follows:

	Three Months Ended
	January 2, 2016
(in thousands)	Pretax		Tax		Net
Foreign currency translation
gain (loss) adjustments	$	(2,418)	$	-	$	(2,418)
Derivative instruments
Unrealized net gain (loss)		211		(76)		135
Net (gain) loss reclassified to earnings		(150)		55		(95)
Defined benefit pension plan
Unrealized net gain (loss)		176		(53)		123
Net (gain) loss reclassified to earnings		145		(44)		101
Currency exchange rate gain (loss)		150		-		150
Other comprehensive income (loss)	$	(1,886)	$	(118)	$	(2,004)

	Three Months Ended
	December 27, 2014
(in thousands)	Pretax		Tax		Net
Foreign currency translation
gain (loss) adjustments	$	(4,812)	$	-	$	(4,812)
Derivative instruments
Unrealized net gain (loss)		2,262		(818)		1,444
Net (gain) loss reclassified to earnings		(1,698)		616		(1,082)
Defined benefit pension plan
Unrealized net gain (loss)		553		(167)		386
Net (gain) loss reclassified to earnings		136		(41)		95
Currency exchange rate gain (loss)		318		-		318
Other comprehensive income (loss)	$	(3,241)	$	(410)	$	(3,651)

The changes in the net-of-tax balances of each component of AOCI during the three months ended January2, 2016 and December  27, 2014 were as follows:

	Three Months Ended
	January 2, 2016
	Foreign		Unrealized		Defined
	Currency		Derivative		Benefit
	Translation		Instrument		Pension Plan
(in thousands)	Adjustments		Adjustments		Adjustments		Total
Beginning balance	$	1,005	$	386	$	(6,968)	$	(5,577)
Other comprehensive net
gain (loss) reclassifications		(2,418)		135		273		(2,010)
Net (gain) loss reclassified to earnings		-		(95)		101		6
Other comprehensive income (loss)		(2,418)		40		374		(2,004)
Ending balance	$	(1,413)	$	426	$	(6,594)	$	(7,581)

	Three Months Ended
	December 27, 2014
	Foreign		Unrealized		Defined
	Currency		Derivative		Benefit
	Translation		Instrument		Pension Plan
(in thousands)	Adjustments		Adjustments		Adjustments		Total
Beginning balance	$	12,220	$	898	$	(7,294)	$	5,824
Other comprehensive net
gain (loss) reclassifications		(4,812)		1,444		704		(2,664)
Net (gain) loss reclassified to earnings		-		(1,082)		95		(987)
Other comprehensive income (loss)		(4,812)		362		799		(3,651)
Ending balance	$	7,408	$	1,260	$	(6,495)	$	2,173

The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI for the three months ended January2, 2016 and December  27, 2014 were as follows:

		Three Months Ended			Affected Line Item in the
	January 2,		December 27,		Consolidated Statements
(in thousands)	2016		2014		of Income
Derivative instruments
Currency exchange contracts gain (loss)	$	150	$	1,698	Revenue
Income tax benefit (expense)		(55)		(616)	Provision for income taxes
Total net gain (loss) on
derivative instruments		95		1,082	Net income
Defined benefit pension plan
Actuarial gain (loss)		(79)		(75)	Cost of sales
Actuarial gain (loss)		(41)		(38)	Selling and marketing
Actuarial gain (loss)		(25)		(23)	General and administrative
Total actuarial gain (loss)		(145)		(136)	Income before income taxes
Income tax benefit (expense)		44		41	Provision for income taxes
Total net gain (loss) on pension plan		(101)		(95)	Net income
Total net-of-tax reclassifications out of
AOCI included in net income	$	(6)	$	987