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DERIVATIVES (Tables)

9 Months Ended

Jan. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Offsetting Financial Assets Under Master Netting Agreements

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

As of January 1, 2022


	Gross Amount of Derivative Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	10,572	$	(4,915)	$	—	$	5,657
Derivatives not subject to master netting agreements	—						—
Total	$	10,572					$	5,657


	Gross Amount of Derivative Liabilities Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(4,915)	$	4,915	$	—	$	—
Derivatives not subject to master netting agreements	—						—
Total	$	(4,915)					$	—

As of April 3, 2021


	Gross Amount of Derivative Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net 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 Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net 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)

Offsetting Financial Liabilities Under Master Netting Agreements

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

As of January 1, 2022


	Gross Amount of Derivative Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	10,572	$	(4,915)	$	—	$	5,657
Derivatives not subject to master netting agreements	—						—
Total	$	10,572					$	5,657


	Gross Amount of Derivative Liabilities Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	(4,915)	$	4,915	$	—	$	—
Derivatives not subject to master netting agreements	—						—
Total	$	(4,915)					$	—

As of April 3, 2021


	Gross Amount of Derivative Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net 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 Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet that are Subject to Master Netting Agreements
(in thousands)			Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Received		Net 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)

Summary of Outstanding Derivative Contracts

The gross fair value of the Company's outstanding derivative contracts at January 1, 2022 and April 3, 2021 was as follows:


(in thousands)	January 1, 2022		April 3, 2021
Derivative assets(1)
Non-designated hedges	$	317	$	2,864
Cash flow hedges	2,803		2,242
Interest rate swaps	7,452		—
Total derivative assets	$	10,572	$	5,106

Derivative liabilities(2)
Non-designated hedges	$	1,134	$	18
Cash flow hedges	477		1,819
Interest rate swaps	3,304		9,863
Accrued interest	22		102
Total derivative liabilities	$	4,937	$	11,802

(1) Short-term derivative assets are recorded in other current assets and long-term derivative assets are recorded in other non-current assets on the condensed consolidated balance sheets. As of January 1, 2022, the portion of derivative assets classified as long-term was $6.9 million. As of April 3, 2021, the portion of derivative assets classified as long-term was $0.1 million.

(2) Short-term derivative liabilities are recorded in accrued liabilities and long-term derivative liabilities are recorded in other non-current liabilities on the condensed consolidated balance sheets. As of January 1, 2022, the portion of derivative liabilities classified as long-term was $0.1 million. As of April 3, 2021, the portion of derivative liabilities classified as long-term was $2.0 million.

Notional Value of Outstanding Foreign Exchange Currency Contracts

The following table summarizes the notional value of the Company’s outstanding foreign exchange currency contracts and approximate USD equivalent at January 1, 2022:


(in thousands)	Local Currency		USD Equivalent		Position	Maturity
EUR	€	25,000	$	28,335	Sell EUR	1 month
GBP	£	10,400	$	14,040	Sell GBP	1 month

The notional value of the Company's outstanding EUR and GBP option and forward contracts at the end of each period was as follows:


	January 1, 2022		April 3, 2021
(in millions)	EUR	GBP	EUR	GBP
Option contracts	€77.4	£15.7	€91.4	£18.1
Forward contracts	€75.0	£14.0	€76.0	£15.6

The following table summarizes the notional value of the Company's outstanding MXN currency swaps and approximate USD Equivalent at January 1, 2022:

(in thousands)

Local Currency

USD Equivalent

Position

Maturity

MXN

415,938

19,860

Buy MXN

Monthly over a nine month period

Effect of Non-Designated Derivative Contracts Recognized in Interest and Other Income, Net

The effect of non-designated derivative contracts on results of operations recognized in other non-operating income, net in the condensed consolidated statements of operations was as follows:


	Three Months Ended				Nine Months Ended
(in thousands)	January 1, 2022		December 26, 2020		January 1, 2022		December 26, 2020
Gain (loss) on foreign exchange contracts	$	651	$	(4,440)	$	1,841	$	(7,173)

Reclassification out of Accumulated Other Comprehensive Income

The following table presents the pre-tax effects of derivative instruments designated as cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended January 1, 2022 and December 26, 2020:


	Three Months Ended				Nine Months Ended
(in thousands)	January 1, 2022		December 26, 2020		January 1, 2022		December 26, 2020
Loss included in accumulated other comprehensive income (loss), as of beginning of period	$	(3,252)	$	(16,747)	$	(10,062)	$	(20,156)

Gain (loss) recognized in other comprehensive income (loss)	7,846		(3,754)		8,520		(8,339)

Amount of (gain) loss reclassified from accumulated other comprehensive income (loss) into net revenues	(1,804)		1,054		(671)		1,797
Amount of gain reclassified from accumulated other comprehensive income (loss) into cost of revenues	(10)		—		(489)		—
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest expense	2,100		3,039		7,582		10,290
Total amount of loss reclassified from accumulated other comprehensive income to the condensed consolidated statements of operations	286		4,093		6,422		12,087



Gain (loss) included in accumulated other comprehensive income (loss), as of end of period	$	4,880	$	(16,408)	$	4,880	$	(16,408)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details