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Derivative Instruments
 12 Months Ended
Sep. 29, 2013
Derivative Instruments and Hedges, Assets [Abstract]  
Derivative Instruments
DERIVATIVE INSTRUMENTS
Objectives and strategies — We are exposed to interest rate volatility with regard to our variable rate debt. To reduce our exposure to rising interest rates, in August 2010, we entered into two interest rate swap agreements that effectively convert $100.0 million of our variable rate term loan borrowings to a fixed-rate basis from September 2011 through September 2014. These agreements have been designated as cash flow hedges under the terms of the FASB authoritative guidance for derivatives and hedging. To the extent that they are effective in offsetting the variability of the hedged cash flows, changes in the fair values of the derivatives are not included in earnings but are included in OCI. These changes in fair value are subsequently reclassified into net earnings as a component of interest expense as the hedged interest payments are made on our term debt.
Financial position — The following derivative instruments were outstanding as of the end of each fiscal year (in thousands):
 
 
September 29, 2013
 
September 30, 2012
  
 
Balance
Sheet
Location
 
Fair
Value
 
Balance
Sheet
Location
 
Fair
Value
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
Interest rate swaps (Note 5)
 
Accrued
liabilities
 
$
(1,190
)
 
Accrued
liabilities
 
$
(2,433
)
Total derivatives
 
 
 
$
(1,190
)
 
 
 
$
(2,433
)

 
Financial performance — The following is a summary of the accumulated OCI activity related to our interest rate swap derivative instruments (in thousands):
 
 
Location of
Loss
in Income
 
2013
 
2012
 
2011
Loss recognized in OCI
 
N/A
 
$
(110
)
 
$
(1,055
)
 
$
(2,066
)
Loss reclassified from accumulated OCI into income
 
Interest
expense, net
 
$
(1,353
)
 
$
(1,304
)
 
$
(117
)

Amounts reclassified from accumulated OCI into interest expense represent payments made to the counterparty for the effective portions of the interest rate swaps. During 2013, 2012 and 2011, our interest rate swaps had no hedge ineffectiveness.