Derivatives and Hedging Activities (Tables)

12 Months Ended

Jul. 02, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Swap Agreements

The following table summarizes the outstanding Swap Agreements as of July 2, 2022 (in millions):

Effective Date	Maturity Date	Notional Amount		Fixed Rate Swapped
August 9, 2021	April 9, 2023	$	50.0		2.93	%
April 15, 2021	December 15, 2024	$	350.0		0.84	%

Effect of Interest Rate Swaps Designated in Hedging Relationships on Consolidated Statement of Operations

The tables below present the effect of the interest rate swaps designated in hedging relationships on the consolidated statement of operations for the fiscal years ended July 2, 2022, July 3, 2021, and June 27, 2020:

(in millions)	Fiscal year ended July 2, 2022			Fiscal year ended July 3, 2021			Fiscal year ended June 27, 2020
Amount of (gain) loss recognized in OCI, pre-tax	$	(19.3	)	$	(2.4	)	$	12.6
Tax expense (benefit)		5.0			0.6			(3.3	)
Amount of (gain) loss recognized in OCI, after-tax	$	(14.3	)	$	(1.8	)	$	9.3
Amount of (loss) gain reclassified from OCI into interest expense, pre-tax	$	(4.9	)	$	(4.3	)	$	1.0
Tax benefit (expense)		1.2			1.1			(0.2	)
Amount of (loss) gain reclassified from OCI into interest expense, after-tax	$	(3.7	)	$	(3.2	)	$	0.8
Total interest expense	$	182.9		$	152.4		$	116.9

Summary of Fair Value of Derivative Financial Instruments

The Company does not currently have a payable or receivable related to cash collateral for its derivatives, and therefore it has not established an accounting policy for offsetting the fair value of its derivatives against such balances. The table below presents the fair value of the derivative financial instruments as well as their classification on the balance sheet as of July 2, 2022 and July 3, 2021:

(in millions)	Balance Sheet Location	Fair Value as of July 2, 2022		Fair Value as of July 3, 2021
Assets
Derivatives designated as hedges:
Interest rate swaps	Prepaid expenses and other current assets	$	7.3	$	—
Interest rate swaps	Other assets		9.9		—
Derivatives not designated as hedges:
Diesel fuel derivative instruments	Prepaid expenses and other current assets	$	16.1	$	3.4
Diesel fuel derivative instruments	Other assets		-		0.1
Other derivative instruments	Prepaid expenses and other current assets		0.2		0.2
Total assets		$	33.5	$	3.7
Liabilities
Derivatives designated as hedges:
Interest rate swaps	Accrued expenses and other current liabilities	$	—	$	5.3
Interest rate swaps	Other long-term liabilities		—		1.7
Derivatives not designated as hedges:
Diesel fuel derivative instruments	Accrued expenses and other current liabilities	$	1.2	$	—
Diesel fuel derivative instruments	Other long-term liabilities		0.9		—
Total liabilities		$	2.1	$	7.0

Summary of Derivative Assets and Liability Balance by Type of Financial Instrument Before and After Effects of Offsetting

The tables below present the derivative assets and liability balance, before and after the effects of offsetting, as of July 2, 2022 and July 3, 2021:

	July 2, 2022								July 3, 2021
(In millions)	Gross Amounts Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements			Net Amounts		Gross Amounts Presented in the Consolidated Balance Sheet			Gross Amounts Not Offset in the Consolidated Balance Sheet Subject to Netting Agreements			Net Amounts
Total asset derivatives:	$	33.5		$	(2.1	)	$	31.4	$	3.7		$	(2.4	)	$	1.3
Total liability derivatives:		(2.1	)		2.1			—		(7.0	)		2.4			(4.6	)