OTHER COMPREHENSIVE INCOME

9 Months Ended

Apr. 02, 2022

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

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOMEComprehensive 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 $240.6 million and $124.7 million for the third quarter of fiscal 2022 and fiscal 2021, respectively. Comprehensive income was $698.5 million and $731.6 million for the first 39 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 Apr. 2, 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	8,668		2,154		6,514
Total reclassification adjustments		8,767		2,179		6,588
Foreign currency translation:
Foreign currency translation adjustment	N/A	(96,582)		—		(96,582)
Marketable securities:
Change in marketable securities (1)	N/A	(6,738)		(1,415)		(5,323)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedge	Operating expenses (2)	24,039		5,664		18,375
Change in net investment hedge	N/A	16,055		4,014		12,041
Total other comprehensive income before reclassification adjustments		40,094		9,678		30,416
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,874		719		2,155
Total other comprehensive income (loss)		$	(51,585)	$	11,161	$	(62,746)

(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 third quarter of fiscal 2022.

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

		13-Week Period Ended Mar. 27, 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:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	183	$	46	$	137
Amortization of actuarial loss, net	Other expense, net	10,421		2,601		7,820
Total reclassification adjustments		10,604		2,647		7,957
Foreign currency translation:
Foreign currency translation adjustment	N/A	9,805		—		9,805
Marketable securities:
Change in marketable securities (1)	N/A	(3,485)		(732)		(2,753)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedge	Operating expenses (2)	12,043		2,908		9,135
Change in net investment hedges	N/A	17,901		8,513		9,388
Total other comprehensive income before reclassification adjustments		29,944		11,421		18,523
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,921		730		2,191
Total other comprehensive income		$	49,789	$	14,066	$	35,723

(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 third quarter of fiscal 2021.

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

		39-Week Period Ended Apr. 2, 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	$	297	$	75	$	222
Amortization of actuarial loss, net	Other expense, net	24,555		6,186		18,369
Total reclassification adjustments		24,852		6,261		18,591
Foreign currency translation:
Other comprehensive income (loss) before reclassification adjustments:
Foreign currency translation adjustment	N/A	(210,646)		—		(210,646)
Marketable securities:
Change in marketable securities (1)	N/A	(8,939)		(1,876)		(7,063)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (2)	15,532		3,687		11,845
Change in net investment hedges	N/A	40,757		10,189		30,568
Total other comprehensive income before reclassification adjustments		56,289		13,876		42,413
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	8,622		2,157		6,465
Total other comprehensive income (loss)		$	(129,822)	$	20,418	$	(150,240)

(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 39 weeks of fiscal 2022.

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

		39-Week Period Ended Mar. 27, 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:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	549	$	138	$	411
Amortization of actuarial loss, net	Other expense, net	31,161		7,783		23,378
Total reclassification adjustments		31,710		7,921		23,789
Foreign currency translation:
Foreign currency translation adjustment	N/A	345,452		—		345,452
Marketable securities:
Change in marketable securities (1)	N/A	(4,140)		(869)		(3,271)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedge (3)	Operating expenses (2)	11,554		3,051		8,503
Change in net investment hedges	N/A	(30,052)		(7,513)		(22,539)
Total other comprehensive income before reclassification adjustments		(18,498)		(4,462)		(14,036)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	8,669		2,168		6,501
Total other comprehensive (loss) income		$	363,193	$	4,758	$	358,435

(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 39 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:

	39-Week Period Ended Apr. 2, 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	—		(210,646)		—		—		(210,646)
Amortization of cash flow hedges	—		—		6,465		—		6,465
Change in net investment hedges	—		—		30,568		—		30,568
Change in cash flow hedge	—		—		11,845		—		11,845
Amortization of unrecognized prior service cost	222		—		—		—		222
Amortization of unrecognized net actuarial losses	18,369		—		—		—		18,369
Change in marketable securities	—		—		—		(7,063)		(7,063)
Balance as of Apr. 2, 2022	$	(1,043,400)	$	(250,738)	$	(2,218)	$	(2,648)	$	(1,299,004)

	39-Week Period Ended Mar. 27, 2021
	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	—		345,452		—		—		345,452
Amortization of cash flow hedges	—		—		6,501		—		6,501
Change in net investment hedges	—		—		(22,539)		—		(22,539)
Change in cash flow hedge	—		—		8,503		—		8,503
Amortization of unrecognized prior service cost	411		—		—		—		411
Amortization of unrecognized net actuarial losses	23,378		—		—		—		23,378
Change in marketable securities	—		—		—		(3,271)		(3,271)
Balance as of Mar. 27, 2021	$	(1,241,925)	$	(56,932)	$	(57,413)	$	3,824	$	(1,352,446)