OTHER COMPREHENSIVE INCOME

12 Months Ended

Jul. 03, 2021

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 $1.1 billion, $104.3 million and $1.5 billion for fiscal 2021, 2020 and 2019, 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:


		2021
	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, arising in the current year		$	208,640	$	52,160	$	156,480

Reclassification adjustments:
Amortization of prior service cost	Other expense, net	732		184		548
Amortization of actuarial loss, net	Other expense, net	61,042		14,347		46,695
Total reclassification adjustments		61,774		14,531		47,243
Foreign currency translation:
Foreign currency translation adjustment	N/A	362,292		—		362,292
Marketable securities:
Change in marketable securities (1)	N/A	(3,392)		(712)		(2,680)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (2)	19,066		4,941		14,125
Change in net investment hedges (3)	N/A	(32,206)		(8,051)		(24,155)
Total other comprehensive income before reclassification adjustments		(13,140)		(3,110)		(10,030)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	11,751		2,939		8,812
Total other comprehensive income		$	627,925	$	65,808	$	562,117

(1)Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in fiscal 2021.

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

(3)Change in net investment hedges includes the termination of some net investment hedges, as described in Note 10, “Derivative Financial Instruments.”


		2020
	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		$	(125,214)	$	(32,471)	$	(92,743)

Reclassification adjustments:
Amortization of prior service cost	Other expense, net	7,620		1,908		5,712
Amortization of actuarial loss, net	Other expense, net	49,284		10,350		38,934
Total reclassification adjustments		56,904		12,258		44,646
Foreign currency translation:

Foreign currency translation adjustment	N/A	(112,215)		—		(112,215)
Marketable Securities:
Change in marketable securities (1)	N/A	5,403		1,135		4,268
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (2)	(9,831)		(2,574)		(7,257)
Change in net investment hedges (3)	N/A	58,756		15,227		43,529
Total other comprehensive income before reclassification adjustments		48,925		12,653		36,272
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	11,496		2,876		8,620
Total other comprehensive loss		$	(114,701)	$	(3,549)	$	(111,152)

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

(3)Change in net investment hedges includes the termination of some net investment hedges, as described in Note 10, “Derivative Financial Instruments.”


		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 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		$	(208,099)	$	(17,639)	$	(190,460)

(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 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
Amounts reclassified to retained earnings (1)	—		—		—		2,827		2,827
Balance as of Jun. 29, 2019	(1,217,617)		(290,169)		(94,770)		2,827		(1,599,729)
Other comprehensive income before reclassification adjustments	(92,743)		(112,215)		36,272		—		(168,686)
Amounts reclassified from accumulated other comprehensive loss	44,646		—		8,620		—		53,266
Change in marketable securities	—		—		—		4,268		4,268
Balance as of Jun. 27, 2020	(1,265,714)		(402,384)		(49,878)		7,095		(1,710,881)
Other comprehensive income before reclassification adjustments	156,480		362,292		(10,030)		—		508,742
Amounts reclassified from accumulated other comprehensive loss	47,243		—		8,812		—		56,055

Change in marketable securities	—		—		—		(2,680)		(2,680)
Balance as of Jul. 3, 2021	$	(1,061,991)	$	(40,092)	$	(51,096)	$	4,415	$	(1,148,764)

(1)Deferred taxes stranded in AOCI as a result of the Tax Act were reclassified to retained earnings as a result of early adopting Accounting Standards Update 2018-02.