Pension and retirement plans (Tables)

12 Months Ended

Jul. 02, 2022

Pension and retirement plan

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

	July 2,		July 3,
	2022		2021
	(Thousands)
Changes in benefit obligations:
Benefit obligations at beginning of year	$	762,708	$	790,179
Service cost		15,007		15,751
Interest cost		15,787		15,904
Actuarial gain		(138,899)		(12,397)
Benefits paid		(40,244)		(46,729)
Benefit obligations at end of year	$	614,359	$	762,708
Changes in plan assets:
Fair value of plan assets at beginning of year	$	772,279	$	707,800
Actual return on plan assets		(107,141)		95,208
Benefits paid		(40,244)		(46,729)
Contributions		14,000		16,000
Fair value of plan assets at end of year	$	638,894	$	772,279
Funded status of the plan recognized as a non-current asset	$	24,535	$	9,571
Amounts recognized in accumulated other comprehensive loss:
Unrecognized net actuarial losses	$	178,984	$	177,949
Unamortized prior service cost		27		31
	$	179,011	$	177,980
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	$	17,378	$	(57,924)
Amortization of net actuarial losses		(16,343)		(20,604)
Amortization of prior service costs		(4)		(301)
	$	1,031	$	(78,829)

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

	2022		2021
Discount rate	4.8	%	2.8	%

Weighted average assumptions used to determine net benefit costs

	2022		2021
Discount rate	2.5	%	2.4	%
Expected return on plan assets	7.0	%	7.4	%
Rate of compensation increase	3.5	%	3.5	%
Interest crediting rate	4.0	%	4.0	%

Components of net periodic pension costs

	Years Ended
	July 2,		July 3,		June 27,
	2022		2021		2020
	(Thousands)
Service cost	$	15,007	$	15,751	$	15,145
Total net periodic pension cost within selling, general and administrative expenses		15,007		15,751		15,145
Interest cost		15,787		15,904		22,552
Expected return on plan assets		(49,135)		(49,681)		(50,671)
Amortization of prior service cost		4		301		2,137
Recognized net actuarial loss		16,343		20,604		14,629
Total net periodic pension benefit within other expense, net		(17,001)		(12,872)		(11,353)
Net periodic pension cost	$	(1,994)	$	2,879	$	3,792

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):

2023	$	60,539
2024		44,626
2025		47,037
2026		47,643
2027		50,275
2028 through 2032		250,819

Plan's assets allocation

	2022		2021
Equity securities	75	%	69	%
Fixed income debt securities	24	%	29	%
Cash and cash equivalents	1	%	2	%

Fair value of Plan investments

The following table sets forth the fair value of the Plan’s investments as of July 2, 2022:

	Level 1		Level 2		Level 3		Net Asset Value		Total
	(Thousands)
Cash and cash equivalents	$	5,283	$	—	$	—	$	—	$	5,283
Return Seeking Investments:
Common stocks		—		—		—		219,407		219,407
Real estate		—		—		—		149,975		149,975
High yield credit and bonds		—		—		—		109,253		109,253
Fixed Income Investments:
U.S. government		—		—		—		122,912		122,912
Corporate		—		—		—		32,064		32,064
Total	$	5,283	$	—	$	—	$	633,611	$	638,894

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 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