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FOREIGN CURRENCY DERIVATIVES
 12 Months Ended
Apr. 03, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Foreign Currency Derivatives DERIVATIVES
Foreign Currency Derivatives

The Company's foreign currency derivatives consist primarily of foreign currency forward exchange contracts and option contracts.  The Company does not purchase derivative financial instruments for speculative trading purposes.  The derivatives expose the Company to credit risk to the extent the counterparties may be unable to meet the terms of the derivative instrument.  The Company's maximum exposure to loss as a result of credit risk was equal to the carrying value of the Company's derivative assets as of April 3, 2021.  The Company seeks to mitigate such risk by limiting its counterparties to large financial institutions.  In addition, the Company monitors the potential risk of loss with any one counterparty resulting from this type of credit risk on an ongoing basis.

The Company enters into master netting arrangements with counterparties to mitigate credit risk in derivative transactions, when possible. A master netting arrangement may allow each counterparty to net settle amounts owed between the Company and the counterparty as a result of multiple, separate derivative transactions. As of April 3, 2021, the Company had International Swaps and Derivatives Association (ISDA) agreements with four applicable banks and financial institutions which contained netting provisions. The Company has elected to present the fair value of derivative assets and liabilities within the Company's Consolidated Balance Sheets on a gross basis, even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. Derivatives not subject to master netting agreements are not eligible for net presentation. As of April 3, 2021 and March 28, 2020, no cash collateral had been received or pledged related to these derivative instruments.

Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties

As of April 3, 2021:
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)Gross Amount of Eligible Offsetting Recognized Derivative LiabilitiesCash Collateral ReceivedNet Amount of Derivative Assets
Derivatives subject to master netting agreements$5,106 $(5,106)$— $— 
Derivatives not subject to master netting agreements— — 
Total$5,106 $— 
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)Gross Amount of Eligible Offsetting Recognized Derivative AssetsCash Collateral ReceivedNet Amount of Derivative Liabilities
Derivatives subject to master netting agreements$(11,700)$5,106 $— $(6,594)
Derivatives not subject to master netting agreements— — 
Total$(11,700)$(6,594)


As of March 28, 2020:
Gross Amount of Derivative Assets Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)Gross Amount of Eligible Offsetting Recognized Derivative LiabilitiesCash Collateral ReceivedNet Amount of Derivative Assets
Derivatives subject to master netting agreements$3,550 $(3,550)$— $— 
Derivatives not subject to master netting agreements— — 
Total$3,550 $— 

Gross Amount of Derivative Liabilities Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)Gross Amount of Eligible Offsetting Recognized Derivative AssetsCash Collateral ReceivedNet Amount of Derivative Liabilities
Derivatives subject to master netting agreements$(22,890)$3,550 $— $(19,340)
Derivatives not subject to master netting agreements— — 
Total$(22,890)$(19,340)

The Company's derivative instruments are measured using Level 2 fair value inputs.
Non-Designated Hedges

As of April 3, 2021, the Company had foreign currency forward contracts denominated in EUR and GBP.  The Company does not elect to obtain hedge accounting for these forward contracts. These forward contracts hedge against a portion of the Company’s foreign currency-denominated Cash balances, Accounts Receivable, and Accounts Payable. The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate USD equivalent at April 3, 2021:
(in thousands)Local CurrencyUSD EquivalentPositionMaturity
EUR€56,000 $65,875 Sell EUR1 month
GBP£9,900 $13,680 Sell GBP1 month

Effect of Non-Designated Derivative Contracts on the Consolidated Statements of Operations

The effect of non-designated derivative contracts on results of operations recognized in Other Non-Operating Income, net in the Consolidated Statements of Operations was as follows:
 Fiscal Year Ended
(in thousands)April 3, 2021March 28, 2020March 30, 2019
(Loss)/Gain on foreign exchange contracts$(3,248)$2,665 $7,340 

Cash Flow Hedges
 
Costless Collars

The Company hedges a portion of the forecasted EUR and GBP denominated revenues with costless collars. On a monthly basis, the Company enters into option contracts with a six to 12 month term.  Collar contracts are scheduled to mature at the beginning of each fiscal quarter, at which time the instruments convert to forward contracts. The Company also enters into cash flow forwards with a three-month term. Once the hedged revenues are recognized, the forward contracts become non-designated hedges to protect the resulting foreign monetary asset position for the Company.

The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows:
April 3, 2021March 28, 2020
(in millions)EURGBPEURGBP
Option contracts€91.4£18.1€67.0£18.4
Forward contracts€76.0£15.6€50.2£18.5

The Company will reclassify all related amounts in Accumulated Other Comprehensive Loss into earnings within the next twelve months.

Cross-currency Swaps

The Company hedges a portion of the forecasted MXN denominated expenditures with a cross-currency swap.

The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD equivalent at April 3, 2021. There were no MXN currency swaps outstanding at March 28, 2020.

(in thousands)Local CurrencyUSD EquivalentPositionMaturity
MXNMXN564,308 $27,246 Buy MXNMonthly over twelve months

The Company will reclassify all related amounts in Accumulated Other Comprehensive Loss into earnings within the next twelve months.
Interest Rate Swap

On July 30, 2018, the Company entered into a four year amortizing interest rate swap agreement with Bank of America, N.A. The swap has an initial notional amount of $831 million and matures on July 31, 2022. The swap involves the receipt of floating-rate interest payments for fixed interest rate payments at a rate of 2.78% over the life of the agreement. The Company has designated this interest rate swap as a cash flow hedge. The purpose of this swap is to hedge against changes in cash flows (interest payments) attributable to fluctuations in the Company's variable rate debt. The derivative is valued based on prevailing LIBOR rate curves on the date of measurement. The Company also evaluates counterparty credit risk when it calculates the fair value of the swap. Changes in the fair value of the interest rate swap are recorded to Other Comprehensive Loss on and reclassified to Interest Expense over the life of the underlying debt as interest is accrued. During Fiscal Year 2021, the Company recorded a loss of $13.6 million on its interest rate swap derivative designated as a cash flow hedge.

The Company will reclassify $8.0 million in Accumulated Other Comprehensive Loss into earnings within the next twelve months.

Effect of Designated Derivative Contracts on Accumulated Other Comprehensive Loss and the Consolidated Statements of Operations

The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on Accumulated Other Comprehensive Loss and the Consolidated Statements of Operations for Fiscal Years 2021, 2020 and 2019:
Fiscal Year Ended
(in thousands)April 3, 2021March 28, 2020March 30, 2019
Loss included in accumulated other comprehensive loss, as of beginning of period$(20,156)$(7,480)$(1,693)
Loss recognized in other comprehensive loss(6,807)(13,172)(4,176)
Loss/(gain) reclassified from accumulated other comprehensive loss to the Consolidated Statements of Operations
Amount of loss/(gain) reclassified from accumulated other comprehensive loss into net revenues3,479 (4,270)(4,034)
Amount of loss/(gain) reclassified from accumulated other comprehensive loss into cost of revenues(166)(238)(177)
Amount of loss reclassified from accumulated other comprehensive loss into interest expense13,588 5,004 2,600 
Total amount of loss/(gain) reclassified from accumulated other comprehensive loss to the Consolidated Statements of Operations16,901 496 (1,611)
Loss included in accumulated other comprehensive loss, as of end of period$(10,062)$(20,156)$(7,480)