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Pension and retirement plans (Tables)
12 Months Ended
Jul. 01, 2023
Pension and retirement plan  
Table outlining changes in benefit obligations, plan assets and the funded status of the Plan

    

July 1,

    

July 2,

 

2023

2022

 

 

(Thousands)

Changes in benefit obligations:

Benefit obligations at beginning of year

$

614,359

$

762,708

Service cost

 

12,015

 

15,007

Interest cost

 

26,730

 

15,787

Actuarial gain

 

(43,407)

 

(138,899)

Benefits paid

 

(21,785)

 

(40,244)

Settlements paid

(116,511)

Benefit obligations at end of year

$

471,401

$

614,359

Changes in plan assets:

Fair value of plan assets at beginning of year

$

638,894

$

772,279

Actual return on plan assets

 

(4,250)

 

(107,141)

Benefits paid

 

(21,785)

 

(40,244)

Settlements paid

(116,511)

Contributions

 

8,000

 

14,000

Fair value of plan assets at end of year

$

504,348

$

638,894

Funded status of the plan recognized as a non-current asset

$

32,947

$

24,535

Amounts recognized in accumulated other comprehensive loss:

Unrecognized net actuarial losses

$

148,867

$

178,984

Unamortized prior service cost

 

23

 

27

$

148,890

$

179,011

Other changes in plan assets and benefit obligations recognized in other comprehensive income:

Net actuarial loss

$

9,702

$

17,378

Amortization of net actuarial losses

 

(2,469)

 

(16,343)

Amortization of prior service costs

 

(4)

 

(4)

Net loss recognized due to benefit obligation settlement

(37,350)

$

(30,121)

$

1,031

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

    

2023

    

2022

Discount rate

5.4

%  

4.8

%  

Weighted average assumptions used to determine net benefit costs

    

2023

    

2022

Discount rate

4.6

%

2.5

%

Expected return on plan assets

7.0

%

7.0

%

Rate of compensation increase

3.5

%

3.5

%

Interest crediting rate

4.0

%

4.0

%

Components of net periodic pension costs

Years Ended

July 1,

    

July 2,

    

July 3,

2023

2022

2021

(Thousands)

Service cost

$

12,015

$

15,007

$

15,751

Total net periodic pension cost within selling, general and administrative expenses

12,015

15,007

15,751

Interest cost

 

26,730

 

15,787

 

15,904

Expected return on plan assets

 

(48,860)

 

(49,135)

 

(49,681)

Amortization of prior service cost

 

4

 

4

 

301

Recognized net actuarial loss

 

2,469

 

16,343

 

20,604

Net loss recognized due to benefit obligation settlement

37,350

Total net periodic pension benefit within other income (expense), net and gain on legal settlements and other

17,693

(17,001)

(12,872)

Net periodic pension cost (benefit)

$

29,708

$

(1,994)

$

2,879

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):

2024

$

54,860

2025

 

39,951

2026

 

40,046

2027

 

39,698

2028

 

41,729

2029 through 2033

 

194,798

Plan's assets allocation

    

2023

    

2022

Equity securities

 

67

75

Fixed income debt securities

 

30

24

Cash and cash equivalents

 

3

1

Fair value of Plan investments

The following table sets forth the fair value of the Plan’s investments as of July 1, 2023:

    

Level 1

    

Level 2

    

Level 3

    

Net Asset Value

    

Total

 

(Thousands)

 

Cash and cash equivalents

$

15,389

$

$

$

$

15,389

Return Seeking Investments:

Common stocks

 

 

 

 

138,533

 

138,533

Real estate

 

 

 

 

108,936

 

108,936

High yield credit and bonds

 

 

 

90,767

 

90,767

Fixed Income Investments:

 

U.S. government

 

 

 

 

118,456

 

118,456

Corporate

 

 

 

 

32,267

 

32,267

Total

$

15,389

$

$

$

488,959

$

504,348

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 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