Derivative Financial Instruments (Tables)

6 Months Ended

Mar. 29, 2014

Derivative Financial Instruments

Summary of fair value of derivatives included on Consolidated Balance Sheets

The following table summarizes the fair value of the Company’s derivatives included on the Unaudited Consolidated Balance Sheets (in thousands):

	March 29, 2014			September 28, 2013			Balance Sheet Classification
Derivatives designated as cash flow hedges:
Interest rate swaps	$	(4,799	)	$	(6,004	)	Other current liabilities
Coffee futures	16,901			—			Other current assets
Coffee futures	—			(3,809		)	Other current liabilities
Foreign currency forward contracts	—			(141		)	Other current liabilities
Foreign currency forward contracts	—			13			Other current assets
	$	12,102		$	(9,941	)
Derivatives not designated as hedges:
Cross currency swap	$	5,105		$	—		Other current assets
Cross currency swap	—			(1,253		)	Other current liabilities
Coffee futures	2,285			—			Other current assets
	$	7,390		$	(1,253	)
Total	$	19,492		$	(11,194	)

Schedule of offsetting of financial assets and derivative assets

Offsetting of financial assets and derivative assets as of March 29, 2014 and September 28, 2013 is as follows (in thousands):

	Gross		Gross amounts			Net amount of assets presented		Gross amounts not offset in the Consolidated Balance Sheet
	amounts of recognized assets		offset in the Consolidated Balance Sheet			in the Consolidated Balance Sheet		Financial instruments		Cash collateral received		Net amount
Derivative assets, as of March 29, 2014	$	24,969	$	(678	)	$	24,291	$	—	$	—	$	24,291
Derivative assets, as of September 28, 2013	13		—			13		—		—		13

Schedule of offsetting of financial liabilities and derivative liabilities

Offsetting of financial liabilities and derivative liabilities as of March 29, 2014 and September 28, 2013 is as follows (in thousands):

	Gross		Gross amounts			Net amount of liabilities		Gross amounts not offset in the Consolidated Balance Sheet
	amounts of recognized liabilities		offset in the Consolidated Balance Sheet			presented in the Consolidated Balance Sheet		Financial instruments		Cash collateral pledged		Net amount
Derivative liabilities, as of March 29, 2014	$	5,477	$	(678	)	$	4,799	$	—	$	—	$	4,799
Derivative liabilities, as of September 28, 2013	11,207		—			11,207		—		—		11,207

Summary of unrealized gain (loss), gross of tax, on financial instruments that qualify for hedge accounting included in OCI

The following table summarizes the amount of unrealized gain (loss), gross of tax, arising during the period on financial instruments that qualify for hedge accounting included in OCI (in thousands):

	Thirteen weeks ended					Twenty-six weeks ended
	March 29, 2014		March 30, 2013			March 29, 2014		March 30, 2013
Cash Flow Hedges:
Interest rate swaps	$	632	$	638		$	1,206	$	1,670
Coffee futures	18,185		(50		)	16,785		(948		)
Foreign currency forward contracts	70		—			265		—
Total	$	18,887	$	588		$	18,256	$	722

Summary of gains (losses), gross of tax, reclassified from OCI to income

The following table summarizes the amount of gains (losses), gross of tax, reclassified from OCI to income (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	March 29, 2014			March 30, 2013			March 29, 2014			March 30, 2013			Location of Losses Reclassified from OCI into Income
Coffee futures	$	(1,235	)	$	(379	)	$	(1,441	)	$	(728	)	Cost of sales
Foreign currency forward contracts	45			—			1			—			Cost of sales
Foreign currency forward contracts	23			—			(2		)	—			Loss on foreign currency, net
Total	$	(1,167	)	$	(379	)	$	(1,442	)	$	(728	)

Summary of the amount of gain (loss), gross of tax, on fair value hedges and related hedged items

The following table summarizes the amount of gain (loss), gross of tax, on fair value hedges and related hedged items for the thirteen weeks ended March 29, 2014, and March 30, 2014 (in thousands):

	Thirteen weeks ended
	March 29, 2014				March 30, 2013
	Gain (loss) on hedging derivatives		Gain (loss) on hedged items		Gain (loss) on hedging derivatives			Gain (loss) on hedged items		Location of Gain (Loss) Recognized in Income on Derivative
Foreign currency forwards contracts	$	—	$	—	$	(10	)	$	10	Loss on foreign currency, net

The following table summarizes the amount of gain (loss), gross of tax, on fair value hedges and related hedged items for the twenty-six weeks ended March 29, 2014, and March 30, 2014 (in thousands):

	Twenty-six weeks ended
	March 29, 2014				March 30, 2013
	Gain (loss) on hedging derivatives		Gain (loss) on hedged items		Gain (loss) on hedging derivatives			Gain (loss) on hedged items		Location of Gain (Loss) Recognized in Income on Derivative
Foreign currency forwards contracts	$	—	$	—	$	(10	)	$	10	Loss on foreign currency, net

Schedule of net gains on financial instruments not designated as hedges for accounting purposes

Net gains on financial instruments not designated as hedges for accounting purposes are as follows (in thousands):

	Thirteen weeks ended				Twenty-six weeks ended				Location of net gain in
	March 29, 2014		March 30, 2013		March 29, 2014		March 30, 2013		Unaudited Consolidated Statements of Operations
Net gain on cross currency swap	$	2,900	$	3,471	$	7,461	$	4,575	Gain on financial instruments, net
Net gain on coffee futures	4,051		—		6,176		—		Cost of sales
Total	$	6,951	$	3,471	$	13,637	$	4,575