v3.26.1
Derivatives and Fair Value Measurements
 9 Months Ended
Jul. 04, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Fair Value Measurements Derivatives and Fair Value Measurements
All derivatives are recognized in the accompanying Condensed Consolidated Balance Sheets at their estimated fair value. The Company uses derivatives to manage the variability of foreign currency obligations. The Company has cash flow hedges related
to forecasted foreign currency obligations, in addition to non-designated hedges to manage foreign currency exposures associated with certain foreign currency denominated assets and liabilities. The Company does not enter into derivatives for speculative purposes.
The Company designates some foreign currency exchange contracts as cash flow hedges of forecasted foreign currency expenses. Changes in the fair value of the derivatives that qualify as cash flow hedges are recorded in "Accumulated other comprehensive income" in the accompanying Condensed Consolidated Balance Sheets until earnings are affected by the variability of the cash flows. In the next twelve months, the Company estimates that $2.6 million of unrealized gains, net of tax, related to cash flow hedges will be reclassified from other comprehensive (loss) income into earnings. Changes in the fair value of the non-designated derivatives related to recognized foreign currency denominated assets and liabilities are recorded in "Miscellaneous, net" in the accompanying Condensed Consolidated Statements of Comprehensive Income.
The Company enters into forward currency exchange contracts for its operations in certain jurisdictions in the AMER and APAC segments on a rolling basis. The Company had cash flow hedges outstanding with a notional value of $282.6 million as of July 4, 2026, and a notional value of $249.4 million as of September 27, 2025. These forward currency contracts fix the exchange rates for the settlement of future foreign currency obligations that have yet to be realized. The total fair value of the forward currency exchange contracts was a $2.6 million asset as of July 4, 2026, and a $10.1 million asset as of September 27, 2025.
The Company had additional forward currency exchange contracts outstanding with a notional value of $166.5 million as of July 4, 2026, and a notional value of $172.8 million as of September 27, 2025. The Company did not designate these derivative instruments as hedging instruments. The net settlement amount (fair value) related to these contracts is recorded on the Condensed Consolidated Balance Sheets as either a current or long-term asset or liability, depending on the term, and as an element of "Miscellaneous, net" in the Condensed Consolidated Statements of Comprehensive Income. The total fair value of these derivatives was a $2.7 million liability as of July 4, 2026, and a less than $0.1 million liability as of September 27, 2025.
The tables below present information regarding the fair values of derivative instruments and the effects of derivative instruments on the Company’s Condensed Consolidated Financial Statements:
Fair Values of Derivative Instruments (in thousands)
  Derivative AssetsDerivative Liabilities
    July 4,
2026		September 27,
2025		  July 4,
2026		September 27,
2025
Derivatives designated as hedging instrumentsBalance sheet
classification		Fair ValueFair ValueBalance sheet
classification		Fair ValueFair Value
Foreign currency forward contractsPrepaid expenses and other$5,662 $10,141 Other accrued liabilities$3,076 $11 
Fair Values of Derivative Instruments (in thousands)
  Derivative AssetsDerivative Liabilities
    July 4,
2026		September 27,
2025		  July 4,
2026		September 27,
2025
Derivatives not designated as hedging instrumentsBalance sheet
classification		Fair ValueFair ValueBalance sheet
classification		Fair ValueFair Value
Foreign currency forward contractsPrepaid expenses and other$465 $579 Other accrued liabilities$3,179 $599 
The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income ("OCI") (in thousands)
for the Three Months Ended
Derivatives in cash flow hedging relationships
Amount of Gain Recognized in OCI on Derivatives
July 4, 2026June 28, 2025
Foreign currency forward contracts$1,012 $12,564 
Derivative Impact on Gain (Loss) Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands)
for the Three Months Ended
Derivatives in cash flow hedging relationships
Classification of Gain (Loss) Reclassified from Accumulated OCI into Income
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income 
July 4, 2026June 28, 2025
Foreign currency forward contractsCost of sales$4,531 $(2,328)
Foreign currency forward contractsSelling and administrative expenses307 (142)
Derivatives not designated as hedging instruments
Location of (Loss) Gain Recognized on Derivatives in Income
Amount of (Loss) Gain on Derivatives Recognized in Income
July 4, 2026June 28, 2025
Foreign currency forward contractsMiscellaneous, net$(748)$3,762 

The Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income ("OCI") (in thousands)
for the Nine Months Ended
Derivatives in cash flow hedging relationships
Amount of Gain Recognized in OCI on Derivatives
July 4, 2026June 28, 2025
Foreign currency forward contracts$10,930 $115 

Derivative Impact on Gain Recognized in Condensed Consolidated Statements of Comprehensive Income (in thousands)
for the Nine Months Ended
Derivatives in cash flow hedging relationships
Classification of Gain Reclassified from Accumulated OCI into Income
Amount of Gain Reclassified from Accumulated OCI into Income 
July 4, 2026June 28, 2025
Foreign currency forward contractsCost of sales$17,423 $871 
Foreign currency forward contractsSelling and administrative expenses1,051 103 
Derivatives not designated as hedging instruments
Location of Gain Recognized on Derivatives in Income
Amount of Gain on Derivatives Recognized in Income
July 4, 2026June 28, 2025
Foreign currency forward contractsMiscellaneous, net$838 $284 

Fair Value Measurements:
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (or exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses quoted market prices when available or discounted cash flows to calculate fair value. The accounting guidance establishes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. The input levels are:
Level 1: Quoted (observable) market prices in active markets for identical assets or liabilities.
Level 2: Inputs other than Level 1 that are observable, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
The following table lists the fair values of the Company’s derivatives as of July 4, 2026 and September 27, 2025, by input level:
Fair Value Measurements Using Input Levels (Liability) Asset (in thousands)
Fiscal period ended July 4, 2026
Level 1Level 2Level 3Total
Derivatives
Foreign currency forward contracts$— $(128)$— $(128)
Fiscal period ended September 27, 2025
Derivatives
Foreign currency forward contracts$— $10,110 $— $10,110 
The fair value of foreign currency forward contracts is determined using a market approach, which includes obtaining directly or indirectly observable values from third parties active in the relevant markets. Inputs in the fair value of the foreign currency forward contracts include prevailing forward and spot prices for currency.