v3.26.1
Derivative Instruments
 6 Months Ended
Apr. 03, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments DERIVATIVE INSTRUMENTS:
The Company enters into contractual derivative arrangements to manage changes in market conditions related to interest on debt obligations, including interest rate swap agreements, that are recognized as either assets or liabilities on the balance sheet at fair value at the end of each quarter. The counterparties to the Company's contractual derivative agreements are all major international financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company continually monitors its positions and the credit ratings of its counterparties and does not anticipate nonperformance by the counterparties. The Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged and how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively for designated hedges. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items.
Cash Flow Hedges
The Company has approximately $2.5 billion notional amount of outstanding interest rate swap agreements as of April 3, 2026, which fix the rate on a like amount of variable rate borrowings with varying maturities through June 2028.
Changes in the fair value of a derivative that is designated as and meets all the required criteria for a cash flow hedge are recorded in accumulated other comprehensive loss and reclassified into earnings as the underlying hedged item affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Cash flows from hedging transactions are classified in the same category as the cash flows from the respective hedged item. As of April 3, 2026 and October 3, 2025, $16.0 million and $12.1 million, respectively, of unrealized net of tax gains related to the interest rate swaps were included in "Accumulated other comprehensive loss" on the Condensed Consolidated Balance Sheets.
The following table summarizes the unrealized gain (loss) arising from the Company's derivatives designated as cash flow hedging instruments on Other comprehensive (loss) income (in thousands):
Three Months EndedSix Months Ended
April 3, 2026March 28, 2025April 3, 2026March 28, 2025
Interest rate swap agreements(1)
$14,276 $(16,543)$17,414 $16,458 
(1)
Change in the amounts are driven by fluctuations in forward interest rates, while fiscal 2025 changes are also impacted by the maturity of previously existing interest rate swaps and the initiation of new interest rate swaps.
The following table summarizes the location and fair value, using Level 2 inputs (see Note 11 for a description of the fair value levels), of the Company's derivatives designated as hedging instruments on the Condensed Consolidated Balance Sheets (in thousands):
Balance Sheet LocationApril 3, 2026October 3, 2025
ASSETS
Interest rate swap agreementsPrepayments and other current assets$7,853 $— 
Interest rate swap agreementsOther Assets15,644 20,262 
$23,497 $20,262 
LIABILITIES
Interest rate swap agreementsOther Noncurrent Liabilities$1,837 $3,972 
The following table summarizes the location of the gain reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments on the Condensed Consolidated Statements of Income (in thousands):
Three Months EndedSix Months Ended
Income Statement Location
April 3, 2026March 28, 2025April 3, 2026March 28, 2025
Interest rate swap agreementsInterest Expense, net$(5,054)$(10,134)$(12,046)$(25,801)
At April 3, 2026, the net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months based on current market rates is approximately $12.3 million.
As of April 3, 2026, the Company has a Euro denominated term loan in the amount of €85.8 million. The term loan was designated as a hedge of the Company's net Euro currency exposure represented by certain holdings in the Company's European affiliates.