DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jul. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of outstanding swap agreements

Maturity Date of the Hedging Instrument	Currency / Unit of Measure	Notional Value
		(In millions)
Hedging of interest rate risk
June 2023	Euro	500
March 2025	U.S. Dollar	500
Hedging of foreign currency risk
Various (July 2021 to August 2021)	Swedish Krona	89
Various (July 2021 to December 2021)	British Pound Sterling	10
June 2023	Euro	500
Hedging of fuel risk
Various (July 2021 to June 2022)	Gallons	32

Derivatives balance sheet location table

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of July 3, 2021 and June 27, 2020 are as follows:

		Derivative Fair Value
	Balance Sheet location	Jul. 3, 2021		Jun. 27, 2020
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	—	$	1,388
Interest rate swaps	Other assets	43,217		69,782
Cash Flow Hedges:
Fuel swaps	Other current assets	$	16,732	$	233
Foreign currency forwards	Other current assets	42		1,063
Fuel swaps	Other assets	—		1,173
Cross currency swaps	Other assets	—		19,614
Fuel swaps	Other current liabilities	—		28,242
Foreign currency forwards	Other current liabilities	46		222

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 3, 2021 are as follows:

	Jul. 3, 2021
	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	$	(1,065,364)	$	(43,217)

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)

Derivatives financial statement performance table

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:

	Jul. 3, 2021		Jun. 27, 2020
	(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	$	880,137	$	408,220
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items	$	(15,749)	$	(101,255)
Derivatives designated as hedging instruments	(53,701)		44,489

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:

	Jul. 3, 2021		Jun. 27, 2020
	(In thousands)
Interest expense	$	(44,159)	$	(58,244)
Increase (decrease) in fair value of debt	(28,410)		43,011
Hedged items	$	(15,749)	$	(101,255)

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended July 3, 2021 and June 27, 2020, presented on a pretax basis, are as follows:

	2021
	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	$	39,644	Operating expense	$	(17,470)
Foreign currency contracts	(20,578)		Cost of sales / Other income	(2,692)
Total	$	19,066		$	(20,162)
Derivatives in net investment hedging relationships:
Foreign denominated debt	(32,206)		N/A	—
Total	$	(32,206)		$	—

	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	$	(16,586)	Operating expense	$	(22,058)
Foreign currency contracts	6,755		Cost of sales / Other income	3,626
Total	$	(9,831)		$	(18,432)
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	51,354	N/A	$	—
Foreign denominated debt	7,402		N/A	—
Total	$	58,756		$	—