Derivative liability

[Table of Contents](#ic085909a172f44ef92ae922b1099b569_7)Financial Instrument Presentation  
The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the balance sheet as of March 26, 2022:   


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Sheet Location |  | March 26, 2022 |  | September 25, 2021 |
| Assets: |  |  |  |  |  |
| Derivative instruments designated as a cash flow hedge: |  |  |  |  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Interest rate swap contract | Prepaid expenses and other current assets |  | $ | 5.5  |  |  | $ | —  |  |
| Interest rate swap contract | Other assets |  | 12.2  |  |  | —  |  |
|  |  |  | $ | 17.7  |  |  | $ | —  |  |
|  |  |  |  |  |  |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |
| Forward foreign currency contracts | Prepaid expenses and other current assets |  | $ | 10.6  |  |  | $ | 1.7  |  |
|  |  |  |  |  |  |
|  |  |  | $ | 10.6  |  |  | $ | 1.7  |  |
|  |  |  |  |  |  |
| Liabilities: |  |  |  |  |  |
| Derivative instruments designated as a cash flow hedge: |  |  |  |  |  |
| Interest rate swap contract | Accrued expenses |  | $ | —  |  |  | $ | 11.1  |  |
| Interest rate swap contract | Other long-term liabilities |  | —  |  |  | 7.6  |  |
| Total |  |  | $ | —  |  |  | $ | 18.7  |  |
| Derivatives not designated as hedging instruments: |  |  |  |  |  |
| Forward foreign currency contracts | Accrued expenses |  | $ | 2.7  |  |  | $ | 0.6  |  |

  
The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps and interest rate swap for the following reporting periods:  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Six Months Ended |
|  | March 26, 2022 |  | March 27, 2021 |  | March 26, 2022 |  | March 27, 2021 |
| Amount of gain (loss) recognized in other comprehensive income, net of taxes: |  |  |  |  |  |  |  |
| Interest rate swap | $ | 19.4  |  |  | $ | 4.3  |  |  | $ | 27.3  |  |  | $ | 5.2  |  |
| Interest rate cap agreements | —  |  |  | —  |  |  | —  |  |  | (0.2) |  |
| Total | $ | 19.4  |  |  | $ | 4.3  |  |  | $ | 27.3  |  |  | $ | 5.0  |  |

  
(10) Commitments and Contingencies  
Litigation and Related Matters    On November 6, 2015, the Company filed a suit against Minerva Surgical, Inc. (“Minerva”) in the United States District Court for the District of Delaware, alleging that Minerva’s endometrial ablation device infringes U.S. Patent 6,872,183 (the '183 patent), U.S. Patent 8,998,898 and U.S. Patent 9,095,348 (the '348 patent). On January 25, 2016, the Company amended the complaint to include claims against Minerva for unfair competition, deceptive trade practices and tortious interference with business relationships. On February 5, 2016, the Company filed a second amended complaint to additionally allege that Minerva’s endometrial ablation device infringes U.S. Patent 9,247,989 (the '989 patent). On March 4, 2016, Minerva filed an answer and counterclaims against the Company, seeking declaratory judgment on the Company’s claims and asserting claims against the Company for unfair competition, deceptive trade practices, interference with contractual relationships, breach of contract and trade libel. On June 2, 2016, the Court denied the Company’s motion for a preliminary injunction on its patent claims and denied Minerva’s request for preliminary injunction related to the Company’s alleged false and deceptive statements regarding the Minerva product. On June 28, 2018, the Court granted the Company's summary judgment motions on 23
