Derivative Financial Instruments (Tables)

9 Months Ended

Jun. 27, 2015

Derivative Financial Instruments

Summary of fair value of derivatives

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

	June 27, 2015			September 27, 2014			Balance Sheet Classification
Derivatives designated as cash flow hedges:
Interest rate swaps	—			(3,371		)	Other current liabilities
Coffee futures	—			3,437			Other current assets
Foreign currency forward contracts	(117		)	$	—		Other current liabilities
Foreign currency forward contracts	—			108			Other current assets
	$	(117	)	$	174
Derivatives not designated as hedges:
Interest rate swaps	(1,267		)	—			Other current liabilities
Cross currency swap	7,896			5,951			Other current assets
	$	6,629		$	5,951
Total	$	6,512		$	6,125

Schedule of offsetting of financial assets and derivative assets

Offsetting of financial assets and derivative assets as of June 27, 2015 and September 27, 2014 is as follows (in thousands):

			Gross			Net amount of		Gross amounts not offset in the
			amounts offset			assets presented		Unaudited Consolidated
	Gross		in the			in the		Balance Sheet
	amounts of		Unaudited			Unaudited				Cash
	recognized		Consolidated			Consolidated		Financial		collateral
	assets		Balance Sheet			Balance Sheet		instruments		received		Net amount
Derivative assets, as of June 27, 2015	$	7,896	$	—		$	7,896	$	—	$	—	$	7,896
Derivative assets, as of September 27, 2014	9,830		(334		)	9,496		—		—		9,496

Schedule of offsetting of financial liabilities and derivative liabilities

Offsetting of financial liabilities and derivative liabilities as of June 27, 2015 and September 27, 2014 is as follows (in thousands):

			Gross			Net amount of		Gross amounts not offset in
			amounts offset			liabilities		the Unaudited Consolidated
	Gross		in the			presented in the		Balance Sheet
	amounts of		Unaudited			Unaudited				Cash
	recognized		Consolidated			Consolidated		Financial		collateral
	liabilities		Balance Sheet			Balance Sheet		instruments		pledged		Net amount
Derivative liabilities, as of June 27, 2015	$	1,384	$	—		$	1,384	$	—	$	—	$	1,384
Derivative liabilities, as of September 27, 2014	3,705		(334		)	3,371		—		—		3,371

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						Thirty-nine weeks ended
	June 27, 2015			June 28, 2014			June 27, 2015			June 28, 2014
Cash Flow Hedges:
Interest rate swaps	$	242		$	613		$	1,587		$	1,819
Coffee futures	—			(787		)	(1,288		)	15,998
Foreign currency forward contracts	(335		)	(419		)	(90		)	(154		)
Total	$	(93	)	$	(593	)	$	209		$	17,663

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 27,			June 28,			June 27,			June 28,			(Losses) Reclassified
	2015			2014			2015			2014			from OCI into Income
Coffee futures	$	5,239		$	(2,626	)	$	12,798		$	(4,067	)	Cost of sales
Foreign currency forward contracts	60			135			119			136			Cost of sales
Foreign currency forward contracts	(75		)	—			(75		)	(2		)	Gain (loss) on foreign currency, net
Interest rate swap	(1,783		)	—			(1,783		)	—			(Loss) gain on financial instruments, net
Total	$	3,441		$	(2,491	)	$	11,059		$	(3,933	)

Summary of the amount of gains (losses), gross of tax, representing ineffectiveness on cash flow hedges recorded in income

The following table summarizes the amount of net gains (losses), gross of tax, representing ineffectiveness on cash flow hedges recorded in income (in thousands):

	Thirteen weeks ended					Thirty-nine weeks ended					Location of Net Gains (losses) in
			June 28,						June 28,		Unaudited Consolidated
	June 27, 2015		2014			June 27, 2015			2014		Statements of Operations
Coffee futures	$	—	$	(16	)	$	(94	)	$	1,306	Cost of sales

Schedule of net (losses) 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 Gain in
	June 27,			June 28,			June 27,		June 28,		Unaudited Consolidated
	2015			2014			2015		2014		Statements of Operations
Net (loss) gain on cross currency swap	$	(547	)	$	(2,843	)	$	6,377	$	4,618	(Loss) gain on financial instruments, net
Net gain on interest rate swaps	516			—			516		—		(Loss) gain on financial instruments, net
Net gain on coffee futures	—			829			—		7,005		Cost of sales
Total	$	(31	)	$	(2,014	)	$	6,893	$	11,623