Derivative Financial Instruments (Tables)

9 Months Ended

Mar. 28, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of outstanding swap agreements

Details of outstanding hedging instruments as of March 28, 2020 are presented below:

Maturity Date of the Hedging Instrument	Currency / Unit of Measure	Notional Value
		(In millions)
Hedging of interest rate risk
October 2020	U.S. Dollar	750
July 2021	U.S. Dollar	500
June 2023	Euro	500
March 2025	U.S. Dollar	500
Hedging of foreign currency risk
Various (March 30, 2020 to August 2020)	Swedish Krona	340
Various (April 2020 to December 2020)	British Pound Sterling	23
July 2021	British Pound Sterling	234
June 2023	Euro	500
Hedging of fuel risk
Various (March 31, 2020 to May 2021)	Gallons	61

Derivatives balance sheet location table

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of March 28, 2020 and June 29, 2019 are as follows:

		Derivative Fair Value
	Balance Sheet location	Mar. 28, 2020		Jun. 29, 2019
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	977	$	—
Interest rate swaps	Other assets	66,563		37,396
Interest rate swaps	Other long-term liabilities	—		9,285
Cash Flow Hedges:
Fuel swaps	Other current assets	$	—	$	154
Foreign currency forwards	Other current assets	2,192		624
Fuel swaps	Other assets	—		136
Cross currency swaps	Other assets	16,991		8,592
Fuel swaps	Other current liabilities	37,468		6,537
Foreign currency forwards	Other current liabilities	302		162
Fuel swaps	Other long-term liabilities	3,905		239
Net Investment Hedges:
Foreign currency swaps	Other assets	$	—	$	18,614
Foreign currency swaps	Other long-term liabilities	—		9,973

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 28, 2020 are as follows:

	Mar. 28, 2020
	Carrying Amount of Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
	(In thousands)
Balance sheet location:
Current maturities of long-term debt	$	(749,853)	$	(977)
Long-term debt	(1,563,222)		(66,987)

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 29, 2019 are as follows:

	Jun. 29, 2019
	Carrying Amount of Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
	(In thousands)
Balance sheet location:
Long-term debt	$	(2,311,636)	$	(28,616)

Schedule of location and effect of derivative instruments and related hedged items

The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows:

	13-Week Period Ended				39-Week Period Ended
	Mar. 28, 2020		Mar. 30, 2019		Mar. 28, 2020		Mar. 30, 2019
Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded	$	83,854	$	94,514	$	243,951	$	270,643
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items	$	(52,942)	$	(41,657)	$	(83,027)	$	(97,164)
Derivatives designated as hedging instruments	38,923		18,865		38,532		39,556

        The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented:

	13-Week Period Ended				39-Week Period Ended
	Mar. 28, 2020		Mar. 30, 2019		Mar. 28, 2020		Mar. 30, 2019
Interest expense	$	(14,562)	$	(17,051)	$	(43,679)	$	(47,834)
Increase (decrease) in fair value of debt	38,380		24,606		39,348		49,330
Hedged items	$	(52,942)	$	(41,657)	$	(83,027)	$	(97,164)

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended March 28, 2020 and March 30, 2019, presented on a pretax basis, are as follows:

	13-Week Period Ended Mar. 28, 2020
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In thousands)			(In thousands)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	(45,375)	Operating expense	$	(2,069)
Foreign currency contracts	22,531		Cost of sales / Other income	—
Total	$	(22,844)		$	(2,069)
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	65,141	N/A	$	—
Foreign denominated debt	350		N/A	—
Total	$	65,491		$	—
	13-Week Period Ended Mar. 30, 2019
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In thousands)			(In thousands)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	16,276	Operating expense	$	(961)
Foreign currency contracts	(14,244)		Cost of sales / Other income	14
Total	$	2,032		$	(947)
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(15,387)	N/A	$	—
Foreign denominated debt	10,550		N/A	—
Total	$	(4,837)		$	—

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39-week periods ended March 28, 2020 and March 30, 2019, presented on a pretax basis, are as follows:

	39-Week Period Ended Mar. 28, 2020
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In thousands)			(In thousands)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	(34,686)	Operating expense	$	(8,688)
Foreign currency contracts	5,180		Cost of sales / Other income	3,626
Total	$	(29,506)		$	(5,062)
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	51,354	N/A	$	—
Foreign denominated debt	10,150		N/A	—
Total	$	61,504		$	—
	39-Week Period Ended Mar. 30, 2019
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In thousands)			(In thousands)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	(19,541)	Operating expense	$	8,432
Foreign currency contracts	6,416		Cost of sales / Other income	505
Total	$	(13,125)		$	8,937
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	18,984	N/A	$	—
Foreign denominated debt	22,650		N/A	—
Total	$	41,634		$	—