Derivative Financial Instruments (Tables)

9 Months Ended

Jun. 28, 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):

	June 28, 2014			September 28, 2013			Balance Sheet Classification
Derivatives designated as cash flow hedges:
Interest rate swaps	$	(4,186	)	$	(6,004	)	Other current liabilities
Coffee futures	6,419			—			Other current assets
Coffee futures	—			(3,809		)	Other current liabilities
Foreign currency forward contracts	(419		)	(141		)	Other current liabilities
Foreign currency forward contracts	—			13			Other current assets
	$	1,814		$	(9,941	)
Derivatives not designated as hedges:
Cross currency swap	$	2,262		$	—		Other current assets
Cross currency swap	—			(1,253		)	Other current liabilities
	$	2,262		$	(1,253	)
Total	$	4,076		$	(11,194	)

Schedule of offsetting of financial assets and derivative assets

Offsetting of financial assets and derivative assets as of June 28, 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 June 28, 2014	$	10,230	$	(1,549	)	$	8,681	$	—	$	—	$	8,681
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 June 28, 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 June 28, 2014	$	6,154	$	(1,549	)	$	4,605	$	—	$	—	$	4,605
Derivative liabilities, as of September 28, 2013	11,207		—			11,207		—		—		11,207

Summary of 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						Thirty-nine weeks ended
	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Cash Flow Hedges:
Interest rate swaps	$	613		$	1,020		$	1,819		$	2,690
Coffee futures	(787		)	(2,714		)	15,998			(3,662		)
Foreign currency forward contracts	(419		)	—			(154		)	—
Total	$	(593	)	$	(1,694	)	$	17,663		$	(972	)

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						Thirty-nine weeks ended						Location of Gains
	June 28,  2014			June 29,  2013			June 28,  2014			June 29,  2013			(Losses) Reclassified  from OCI into Income
Coffee futures	$	(2,626	)	$	(394	)	$	(4,067	)	$	(1,122	)	Cost of sales
Foreign currency forward contracts	135			—			136			—			Cost of sales
Foreign currency forward contracts	—			—			(2		)	—			Gain (loss) on foreign currency, net
Total	$	(2,491	)	$	(394	)	$	(3,933	)	$	(1,122	)

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

There were no gains or losses on fair value hedges related to foreign currency forward contracts for the thirteen weeks ended June 28, 2014 and June 29, 2013.  The following table summarizes the amount of gain (loss), gross of tax, on fair value hedges and related hedged items for the thirty-nine weeks ended June 28, 2014, and June 29, 2013 (in thousands):

	Thirty-nine weeks ended
	June 28, 2014				June 29, 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 forward contracts	$	—	$	—	$	(10	)	$	10	Gain (loss) on foreign currency, net

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

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

	Thirteen weeks ended					Thirty-nine weeks ended				Location of net (loss) gain in
	June 28,  2014			June 29,  2013		June 28,  2014		June 29,  2013		Unaudited Consolidated  Statements of Operations
Net (loss) gain on cross currency swap	$	(2,843	)	$	4,419	$	4,618	$	8,994	(Loss) gain on financial instruments, net
Net gain on coffee futures	829			—		7,005		—		Cost of sales
Total	$	(2,014	)	$	4,419	$	11,623	$	8,994