Pension and retirement plans (Tables)

12 Months Ended

Jul. 03, 2021

Pension and retirement plan

Table outlining changes in benefit obligations, plan assets and the funded status of the Plan

	July 3,		June 27,
	2021		2020
	(Thousands)
Changes in benefit obligations:
Benefit obligations at beginning of year	$	790,179	$	731,695
Service cost		15,751		15,145
Interest cost		15,904		22,552
Actuarial (gain) loss		(12,397)		72,144
Benefits paid		(46,729)		(51,357)
Benefit obligations at end of year	$	762,708	$	790,179
Changes in plan assets:
Fair value of plan assets at beginning of year	$	707,800	$	664,063
Actual return on plan assets		95,208		87,094
Benefits paid		(46,729)		(51,357)
Contributions		16,000		8,000
Fair value of plan assets at end of year	$	772,279	$	707,800
Funded status of the plan recognized as a non-current asset (non-current liability)	$	9,571	$	(82,379)
Amounts recognized in accumulated other comprehensive loss:
Unrecognized net actuarial losses	$	177,949	$	256,477
Unamortized prior service cost		31		332
	$	177,980	$	256,809
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial (gain) loss	$	(57,924)	$	35,721
Amortization of net actuarial losses		(20,604)		(14,629)
Amortization of prior service costs		(301)		(2,137)
	$	(78,829)	$	18,955

Weighted average assumptions used to calculate actuarial present values of benefit obligations

	2021		2020
Discount rate	2.8	%	2.7	%

Weighted average assumptions used to determine net benefit costs

	2021		2020
Discount rate	2.4	%	3.3	%
Expected return on plan assets	7.4	%	7.7	%
Rate of compensation increase	3.5	%	3.5	%
Interest crediting rate	4.0	%	4.0	%

Components of net periodic pension costs

	Years Ended
	July 3,		June 27,		June 29,
	2021		2020		2019
	(Thousands)
Service cost	$	15,751	$	15,145	$	14,631
Total net periodic pension cost within selling, general and administrative expenses		15,751		15,145		14,631
Interest cost		15,904		22,552		26,354
Expected return on plan assets		(49,681)		(50,671)		(53,518)
Amortization of prior service cost (credits)		301		2,137		(1,571)
Recognized net actuarial loss		20,604		14,629		9,251
Total net periodic pension benefit within other (expense) income, net		(12,872)		(11,353)		(19,484)
Net periodic pension cost (benefit)	$	2,879	$	3,792	$	(4,853)

Benefit payments expected to be paid to Plan participants

Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands):

2022	$	53,511
2023		42,750
2024		45,728
2025		47,737
2026		47,987
2027 through 2031		253,355

Plan's assets allocation

	2021		2020
Equity securities	69	%	62	%
Fixed income debt securities	29	%	36	%
Cash and cash equivalents	2	%	2	%

Fair value of Plan investments

The following table sets forth the fair value of the Plan’s investments as of July 3, 2021:

	Level 1		Level 2		Level 3		Net Asset Value		Total
	(Thousands)
Cash and cash equivalents	$	16,655	$	—	$	—	$	—	$	16,655
Return Seeking Investments:
Common stocks		—		—		—		290,347		290,347
Real estate		—		—		—		124,363		124,363
High yield credit and bonds		—		—		—		117,722		117,722
Fixed Income Investments:
U.S. government		—		—		—		186,279		186,279
Corporate		—		—		—		36,913		36,913
Total	$	16,655	$	—	$	—	$	755,624	$	772,279

Certain investments included in the table above are measured at fair value using the net asset value per share (or its equivalent) practical expedient and are not included in the three levels of the fair value hierarchy.

The following table sets forth the fair value of the Plan’s investments as of June 27, 2020:

	Level 1		Level 2		Level 3		Net Asset Value		Total
	(Thousands)
Cash and cash equivalents	$	13,243	$	—	$	—	$	—	$	13,243
Return Seeking Investments:
Common stocks		—		—		—		254,917		254,917
Real estate		—		—		—		81,817		81,817
High yield credit and bonds		—		—		—		103,925		103,925
Fixed Income Investments:
U.S. government		—		—		—		218,573		218,573
Corporate		—		—		—		35,325		35,325
Total	$	13,243	$	—	$	—	$	694,557	$	707,800