OTHER COMPREHENSIVE INCOME

6 Months Ended

Jan. 02, 2022

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

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME

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 $149.1 million and $291.5 million for the second quarter of fiscal 2022 and fiscal 2021, respectively. Comprehensive income was $458.0 million and $606.9 million for the first 26 weeks of fiscal 2022 and fiscal 2021, 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:

		13-Week Period Ended Jan. 1, 2022
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	99	$	25	$	74
Amortization of actuarial loss, net	Other expense, net	7,401		1,913		5,488
Total reclassification adjustments		7,500		1,938		5,562
Foreign currency translation:
Foreign currency translation adjustment	N/A	(26,870)		—		(26,870)
Marketable securities:
Change in marketable securities (1)	N/A	(1,808)		(379)		(1,429)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedge	Operating expenses (2)	(7,944)		(1,843)		(6,101)
Change in net investment hedge	N/A	11,149		2,787		8,362
Total other comprehensive income before reclassification adjustments		3,205		944		2,261
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,874		719		2,155
Total other comprehensive loss		$	(15,099)	$	3,222	$	(18,321)

(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 the second quarter of fiscal 2022.

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

		13-Week Period Ended Dec. 26, 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:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	183	$	46	$	137
Amortization of actuarial loss, net	Other expense, net	10,387		2,594		7,793
Total reclassification adjustments		10,570		2,640		7,930
Foreign currency translation:
Foreign currency translation adjustment	N/A	222,507		—		222,507
Marketable securities:
Change in marketable securities (1)	N/A	(55)		(11)		(44)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedge	Operating expenses (2)	16,352		4,017		12,335
Change in net investment hedges	N/A	(27,554)		(6,888)		(20,666)
Total other comprehensive income before reclassification adjustments		(11,202)		(2,871)		(8,331)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,874		719		2,155
Total other comprehensive income		$	224,694	$	477	$	224,217

(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 the second quarter of fiscal 2021.

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

		26-Week Period Ended Jan. 1, 2022
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	198	$	50	$	148
Amortization of actuarial loss, net	Other expense, net	15,887		4,032		11,855
Total reclassification adjustments		16,085		4,082		12,003
Foreign currency translation:
Other comprehensive income (loss) before reclassification adjustments:
Foreign currency translation adjustment	N/A	(114,064)		—		(114,064)
Marketable securities:
Change in marketable securities (1)	N/A	(2,201)		(461)		(1,740)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (2)	(8,507)		(1,977)		(6,530)
Change in net investment hedges	N/A	24,702		6,175		18,527
Total other comprehensive income before reclassification adjustments		16,195		4,198		11,997
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,748		1,438		4,310
Total other comprehensive income (loss)		$	(78,237)	$	9,257	$	(87,494)

(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 the first 26 weeks of fiscal 2022.

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

		26-Week Period Ended Dec. 26, 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:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	366	$	92	$	274
Amortization of actuarial loss, net	Other expense, net	20,740		5,182		15,558
Total reclassification adjustments		21,106		5,274		15,832
Foreign currency translation:
Foreign currency translation adjustment	N/A	335,647		—		335,647
Marketable securities:
Change in marketable securities (1)	N/A	(655)		(137)		(518)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedge (3)	Operating expenses (2)	(489)		143		(632)
Change in net investment hedges	N/A	(47,953)		(16,026)		(31,927)
Total other comprehensive income before reclassification adjustments		(48,442)		(15,883)		(32,559)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,748		1,438		4,310
Total other comprehensive (loss) income		$	313,404	$	(9,308)	$	322,712

(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 the first 26 weeks of fiscal 2021.

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

(3) Change in cash flow hedges includes the termination of some cash flow hedges.

The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:

	26-Week Period Ended Jan. 1, 2022
	Pension and Other Postretirement Benefit Plans, net of tax		Foreign Currency Translation		Hedging, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Jul. 3, 2021	$	(1,061,991)	$	(40,092)	$	(51,096)	$	4,415	$	(1,148,764)
Equity adjustment from foreign currency translation	—		(114,064)		—		—		(114,064)
Amortization of cash flow hedges	—		—		4,310		—		4,310
Change in net investment hedges	—		—		18,527		—		18,527
Change in cash flow hedge	—		—		(6,530)		—		(6,530)
Amortization of unrecognized prior service cost	148		—		—		—		148
Amortization of unrecognized net actuarial losses	11,855		—		—		—		11,855
Change in marketable securities	—		—		—		(1,740)		(1,740)
Balance as of Jan. 1, 2022	$	(1,049,988)	$	(154,156)	$	(34,789)	$	2,675	$	(1,236,258)

	26-Week Period Ended Dec. 26, 2020
	Pension and Other Postretirement Benefit Plans, net of tax		Foreign Currency Translation		Hedging, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Jun. 27, 2020	$	(1,265,714)	$	(402,384)	$	(49,878)	$	7,095	$	(1,710,881)
Equity adjustment from foreign currency translation	—		335,647		—		—		335,647
Amortization of cash flow hedges	—		—		4,310		—		4,310
Change in net investment hedges	—		—		(31,927)		—		(31,927)
Change in cash flow hedge	—		—		(632)		—		(632)
Amortization of unrecognized prior service cost	274		—		—		—		274
Amortization of unrecognized net actuarial losses	15,558		—		—		—		15,558
Change in marketable securities	—		—		—		(518)		(518)
Balance as of Dec. 26, 2020	$	(1,249,882)	$	(66,737)	$	(78,127)	$	6,577	$	(1,388,169)