OTHER COMPREHENSIVE INCOME

12 Months Ended

Jun. 29, 2019

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

Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $1.5 billion, $1.5 billion and $1.2 billion for fiscal 2019, 2018 and 2017, 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:



		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 gain (loss), arising in the current year		$	(200,144	)	$	(45,070	)	$	(155,074	)
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	8,532			2,132			6,400
Amortization of actuarial loss, net	Other expense, net	34,824			8,708			26,116
Total reclassification adjustments		43,356			10,840			32,516
Foreign currency translation:
Foreign currency translation adjustment	N/A	(119,126		)	—			(119,126		)
Marketable securities:
Change in marketable securities	N/A	3,579			752			2,827
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses ⁽¹⁾	(5,394		)	(1,332		)	(4,062		)
Change in net investment hedges	N/A	58,138			14,299			43,839
Total other comprehensive income (loss) before reclassification adjustments		52,744			12,967			39,777
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	11,492			2,872			8,620
Total other comprehensive (loss) income		$	(208,099	)	$	(17,639	)	$	(190,460	)


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



		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:
Other comprehensive income before reclassification adjustments:
Net actuarial (loss) gain, net arising in the current year		$	69,476		$	16,965		$	52,511
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	9,636			2,731			6,905
Amortization of actuarial loss (gain), net	Other expense, net	35,044			9,934			25,110
Total reclassification adjustments		44,680			12,665			32,015
Foreign currency translation:
Foreign currency translation adjustment	N/A	(22,987		)	—			(22,987		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses ⁽¹⁾	23,872			9,529			14,343
Change in net investment hedges	N/A	(2,443		)	(8,234		)	5,791
Total other comprehensive income (loss) before reclassification adjustments		21,429			1,295			20,134
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	11,499			3,259			8,240
Total other comprehensive income (loss)		$	124,097		$	34,184		$	89,913


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



		2017
	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) gain, net arising in the current year		$	168,498		$	71,215		$	97,283
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	11,370			4,366			7,004
Amortization of actuarial loss (gain), net	Other expense, net	41,689			15,724			25,965
Total reclassification adjustments		53,059			20,090			32,969
Foreign currency translation:
Foreign currency translation adjustment	N/A	(11,243		)	—			(11,243		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses⁽¹⁾	(10,871		)	(4,173		)	(6,698		)
Change in net investment hedges	N/A	(34,152		)	(10,140		)	(24,012		)
Total other comprehensive income (loss) before reclassification adjustments		(45,023		)	(14,313		)	(30,710		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	11,495			4,413			7,082
Total other comprehensive income (loss)		$	176,786		$	81,405		$	95,381


⁽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 (AOCI) for the periods presented:



	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Marketable Securities		Total
	(In thousands)
Balance as of Jul. 2, 2016	$	(1,104,484	)	$	(136,813	)	$	(116,821	)	$	—	$	(1,358,118	)
Other comprehensive income before reclassification adjustments	97,283			(11,243		)	(30,710		)	—		55,330
Amounts reclassified from accumulated other comprehensive loss	32,969			—			7,082			—		40,051
Balance as of Jul. 1, 2017	(974,232		)	(148,056		)	(140,449		)	—		(1,262,737		)
Other comprehensive income before reclassification adjustments	52,511			(22,987		)	20,134			—		49,658
Amounts reclassified from accumulated other comprehensive loss	32,015			—			8,240			—		40,255
Amounts reclassified to retained earnings ⁽¹⁾	(205,353		)	—			(31,092		)	—		(236,445		)
Balance as of Jun. 30, 2018	(1,095,059		)	(171,043		)	(143,167		)	—		(1,409,269		)
Other comprehensive income before reclassification adjustments	(155,074		)	(119,126		)	39,777			—		(234,423		)
Amounts reclassified from accumulated other comprehensive loss	32,516			—			8,620			—		41,136
Change in marketable securities	—			—			—			2,827		2,827
Jun. 29, 2019	$	(1,217,617	)	$	(290,169	)	$	(94,770	)	$	2,827	$	(1,599,729	)

⁽¹⁾

Deferred taxes stranded in AOCI as a result of the Tax Act were reclassified to retained earnings as a result of early adopting ASU 2018-02.