Derivatives and Hedging Activities (Tables)

12 Months Ended

Jun. 29, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Swap Agreements

The following table summarizes the outstanding swap agreements as of June 29, 2024 (in millions):

Effective Date	Maturity Date	Notional Amount		Fixed Rate Swapped
April 17, 2023	December 15, 2024	$	350.0		0.77	%
December 16, 2024	December 15, 2027	$	100.0		3.14	%
December 16, 2024	December 15, 2027	$	50.0		3.59	%

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

The table below presents the effect of the interest rate swaps designated in hedging relationships on the consolidated statement of operations for the fiscal years ended June 29, 2024, July 1, 2023, and July 2, 2022:

(in millions)	Fiscal year ended June 29, 2024			Fiscal year ended July 1, 2023			Fiscal year ended July 2, 2022
Amount of (gain) loss recognized in OCI, pre-tax	$	(4.5	)	$	(15.4	)	$	(19.3	)
Tax expense (benefit)		1.1			3.9			5.0
Amount of (gain) loss recognized in OCI, after-tax	$	(3.4	)	$	(11.5	)	$	(14.3	)
Amount of gain (loss) reclassified from OCI into interest expense, pre-tax	$	16.1		$	10.8		$	(4.9	)
Tax (expense) benefit		(4.1	)		(2.7	)		1.2
Amount of gain (loss) reclassified from OCI into interest expense, after-tax	$	12.0		$	8.1		$	(3.7	)
Total interest expense	$	232.2		$	218.0		$	182.9

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 June 29, 2024 and July 1, 2023:

(in millions)	Balance Sheet Location	Fair Value as of June 29, 2024		Fair Value as of July 1, 2023
Assets
Derivatives designated as hedges:
Interest rate swaps	Prepaid expenses and other current assets	$	8.2	$	14.8
Interest rate swaps	Other assets		2.0		6.9
Total assets		$	10.2	$	21.7
Liabilities
Derivatives not designated as hedges:
Diesel fuel derivative instruments	Accrued expenses and other current liabilities	$	0.6	$	4.2
Other derivative instruments	Accrued expenses and other current liabilities		0.1	$	0.5
Total liabilities		$	0.7	$	4.7

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 June 29, 2024 and July 1, 2023:

	June 29, 2024									July 1, 2023
(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:	$	10.2		$	(0.3	)	$	9.9		$	21.7		$	(2.9	)	$	18.8
Total liability derivatives:		(0.7	)		0.3			(0.4	)		(4.7	)		2.9			(1.8	)