DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Dec. 26, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of outstanding swap agreements

Details of outstanding hedging instruments as of December 26, 2020 are presented below:

Maturity Date of the Hedging Instrument	Currency / Unit of Measure	Notional Value
		(In millions)
Hedging of interest rate risk
July 2021	U.S. Dollar	500
June 2023	Euro	500
March 2025	U.S. Dollar	500
Hedging of foreign currency risk
Various (December 28, 2020 to January 2021)	Swedish Krona	64
June 2023	Euro	500
Hedging of fuel risk
Various (December 31, 2020 to December 2021)	Gallons	33

Derivatives balance sheet location table

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 26, 2020 and June 27, 2020 are as follows:

		Derivative Fair Value
	Balance Sheet location	Dec. 26, 2020		Jun. 27, 2020
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	2,678	$	1,388
Interest rate swaps	Other assets	58,053		69,782
Cash Flow Hedges:
Fuel swaps	Other current assets	$	3,428	$	233
Foreign currency forwards	Other current assets	34		1,063
Fuel swaps	Other assets	—		1,173
Cross currency swaps	Other assets	—		19,614
Fuel swaps	Other current liabilities	6,973		28,242
Foreign currency forwards	Other current liabilities	163		222

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 26, 2020 are as follows:

	Dec. 26, 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	$	(499,778)	$	(2,797)
Long-term debt	(1,064,694)		(58,053)

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 27, 2020 are as follows:

	Jun. 27, 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	$	(749,924)	$	(1,388)
Long-term debt	(1,563,636)		(70,239)

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				26-Week Period Ended
	Dec. 26, 2020		Dec. 28, 2019		Dec. 26, 2020		Dec. 28, 2019
	(In thousands)
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	$	146,498	$	76,762	$	293,215	$	160,097
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items	$	(3,793)	$	(5,350)	$	(13,791)	$	(30,086)
Derivatives designated as hedging instruments	(296)		(9,248)		3,161		(391)

    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				26-Week Period Ended
	Dec. 26, 2020		Dec. 28, 2019		Dec. 26, 2020		Dec. 28, 2019
	(In thousands)
Interest expense	$	(9,735)	$	(14,560)	$	(24,568)	$	(29,117)
Increase (decrease) in fair value of debt	(5,942)		(9,210)		(10,777)		969
Hedged items	$	(3,793)	$	(5,350)	$	(13,791)	$	(30,086)

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 December 26, 2020 and December 28, 2019, presented on a pretax basis, are as follows:

	13-Week Period Ended Dec. 26, 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	$	16,939	Operating expense	$	(7,613)
Foreign currency contracts	(587)		Cost of sales / Other income	—
Total	$	16,352		$	(7,613)
Derivatives in net investment hedging relationships:
Foreign denominated debt	(27,554)		N/A	—
Total	$	(27,554)		$	—
	13-Week Period Ended Dec. 28, 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	$	10,345	Operating expense	$	(3,213)
Foreign currency contracts	(29,658)		Cost of sales / Other income	3,624
Total	$	(19,313)		$	411
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(34,639)	N/A	$	—
Foreign denominated debt	(11,650)		N/A	—
Total	$	(46,289)		$	—

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 26-week periods ended December 26, 2020 and December 28, 2019, presented on a pretax basis, are as follows:

	26-Week Period Ended Dec. 26, 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	$	19,830	Operating expense	$	(16,265)
Foreign currency contracts	(20,319)		Cost of sales / Other income	(2,692)
Total	$	(489)		$	(18,957)
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	—	N/A	$	—
Foreign denominated debt	(47,953)		N/A	—
Total	$	(47,953)		$	—
	26-Week Period Ended Dec. 28, 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	$	10,689	Operating expense	$	(6,619)
Foreign currency contracts	(17,351)		Cost of sales / Other income	3,626
Total	$	(6,662)		$	(2,993)
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(13,787)	N/A	$	—
Foreign denominated debt	9,800		N/A	—
Total	$	(3,987)		$	—