Other Comprehensive Income

9 Months Ended

Mar. 30, 2019

Other Comprehensive Income (Loss), Net of Tax [Abstract]

OTHER COMPREHENSIVE INCOME

Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, amounts related to cash flow hedging arrangements, certain amounts related to pension and other postretirement plans and changes in marketable securities. Comprehensive income was $481.0 million and $370.6 million for the third quarter of fiscal 2019 and fiscal 2018, respectively. Comprehensive income was $1.1 billion and $1.2 billion for the first 39 weeks of fiscal 2019 and fiscal 2018, respectively.

A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows:



		13-Week Period Ended Mar. 30, 2019
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax		Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,133		$	533	$	1,600
Amortization of actuarial loss, net	Other expense, net	8,706			2,177		6,529
Total reclassification adjustments		10,839			2,710		8,129
Foreign currency translation:
Foreign currency translation adjustment	N/A	37,471			—		37,471
Marketable securities:
Change in marketable securities	N/A	1,396			293		1,103
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses ⁽¹⁾	2,032			486		1,546
Change in net investment hedges	N/A	(4,837		)	4,629		(9,466		)
Total other comprehensive income (loss) before reclassification adjustments		(2,805		)	5,115		(7,920		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718		2,155
Total other comprehensive income		$	49,774		$	8,836	$	40,938


⁽¹⁾	Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.



		13-Week Period Ended Mar. 31, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,409		$	602		$	1,807
Amortization of actuarial loss, net	Other expense, net	8,761			2,190			6,571
Total reclassification adjustments		11,170			2,792			8,378
Foreign currency translation:
Foreign currency translation adjustment	N/A	72,010			—			72,010
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses ⁽¹⁾	(14,070		)	(3,597		)	(10,473		)
Change in net investment hedges	N/A	(40,820		)	(9,294		)	(31,526		)
Total other comprehensive income (loss) before reclassification adjustments		(54,890		)	(12,891		)	(41,999		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	31,163		$	(9,381	)	$	40,544


⁽¹⁾	Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.



		39-Week Period Ended Mar. 30, 2019
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial loss		$	(36,891	)	$	(4,380	)	$	(32,511	)
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	6,399			1,599			4,800
Amortization of actuarial loss, net	Other expense, net	26,118			6,531			19,587
Total reclassification adjustments		32,517			8,130			24,387
Foreign currency translation:
Other comprehensive income (loss) before reclassification adjustments:
Foreign currency translation adjustment	N/A	(88,989		)	—			(88,989		)
Marketable securities:
Change in marketable securities	N/A	1,396			293			1,103
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses ⁽¹⁾	(13,125		)	(2,879		)	(10,246		)
Change in net investment hedges	N/A	41,634			16,043			25,591
Total other comprehensive income (loss) before reclassification adjustments		28,509			13,164			15,345
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	8,619			2,154			6,465
Total other comprehensive income		$	(54,839	)	$	19,361		$	(74,200	)


⁽¹⁾	Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.



		39-Week Period Ended Mar. 31, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	7,227		$	2,129		$	5,098
Amortization of actuarial loss, net	Other expense, net	26,283			7,744			18,539
Total reclassification adjustments		33,510			9,873			23,637
Foreign currency translation:
Foreign currency translation adjustment	N/A	212,594			—			212,594
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses ⁽¹⁾	(7,720		)	(365		)	(7,355		)
Change in net investment hedges	N/A	(70,739		)	(23,036		)	(47,703		)
Total other comprehensive income (loss) before reclassification adjustments		(78,459		)	(23,401		)	(55,058		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	8,619			2,539			6,080
Total other comprehensive income (loss)		$	176,264		$	(10,989	)	$	187,253


⁽¹⁾	Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:



	39-Week Period Ended Mar. 30, 2019
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Jun. 30, 2018	$	(1,095,059	)	$	(171,043	)	$	(143,167	)	$	—	$	(1,409,269	)
Equity adjustment from foreign currency translation	—			(88,989		)	—			—		(88,989		)
Amortization of cash flow hedges	—			—			6,465			—		6,465
Change in net investment hedges	—			—			25,591			—		25,591
Change in cash flow hedge	—			—			(10,246		)	—		(10,246		)
Net actuarial loss	(32,511		)	—			—			—		(32,511		)
Amortization of unrecognized prior service cost	4,800			—			—			—		4,800
Amortization of unrecognized net actuarial losses	19,587			—			—			—		19,587
Change in marketable securities	—			—			—			1,103		1,103
Balance as of Mar. 30, 2019	$	(1,103,183	)	$	(260,032	)	$	(121,357	)	$	1,103	$	(1,483,469	)



	39-Week Period Ended Mar. 31, 2018
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jul. 1, 2017	$	(974,232	)	$	(148,056	)	$	(140,449	)	$	(1,262,737	)
Equity adjustment from foreign currency translation	—			212,594			—			212,594
Amortization of cash flow hedges	—			—			6,080			6,080
Change in net investment hedges	—			—			(47,703		)	(47,703		)
Change in cash flow hedges	—			—			(7,355		)	(7,355		)
Amortization of unrecognized prior service cost	5,098			—			—			5,098
Amortization of unrecognized net actuarial losses	18,539			—			—			18,539
Balance as of Mar. 31, 2018	$	(950,595	)	$	64,538		$	(189,427	)	$	(1,075,484	)