OTHER COMPREHENSIVE INCOME

6 Months Ended

Dec. 30, 2023

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 $552.3 million and $527.8 million for the second quarter of fiscal 2024 and fiscal 2023, respectively. Comprehensive income was $981.5 million and $764.1 million for the first 26 weeks of fiscal 2024 and fiscal 2023, 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 Dec. 30, 2023
	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	$	195	$	49	$	146
Amortization of actuarial loss, net	Other expense, net	6,676		1,665		5,011
Total reclassification adjustments		6,871		1,714		5,157
Foreign currency translation:

Foreign currency translation adjustment	N/A	163,084		—		163,084
Marketable securities:
Change in marketable securities (1)	N/A	4,359		915		3,444
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	210		52		158
Change in cash flow hedges	Operating expenses (2)	(25,031)		(4,806)		(20,225)
Change in net investment hedges	N/A	(22,361)		(5,620)		(16,741)

Total other comprehensive (loss) before reclassification adjustments		(47,182)		(10,374)		(36,808)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,893		723		2,170

Total other comprehensive income (loss)		$	130,025	$	(7,022)	$	137,047


(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 2024.
(2)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.


		13-Week Period Ended Dec. 31, 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:
Other comprehensive income before reclassification adjustments:
Net actuarial gain, arising in the current year	Other expense, net	$	(89,851)	$	(22,463)	$	(67,388)
Settlements	Other expense, net	315,455		78,864		236,591
Total other comprehensive income before reclassification adjustments		225,604		56,401		169,203
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	99		25		74
Amortization of actuarial loss, net	Other expense, net	7,500		1,872		5,628

Total reclassification adjustments		7,599		1,897		5,702
Foreign currency translation:
Foreign currency translation adjustment	N/A	241,814		—		241,814
Marketable securities:
Change in marketable securities (1)	N/A	1,511		317		1,194
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (2)	1,189		986		203
Change in net investment hedges	N/A	(44,999)		(11,250)		(33,749)

Total other comprehensive (loss) before reclassification adjustments		(43,810)		(10,264)		(33,546)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,893		723		2,170
Total other comprehensive income		$	435,611	$	49,074	$	386,537


(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 2023.
(2)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.


		26-Week Period Ended Dec. 30, 2023
	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 loss, arising in the current year	Other expense, net	$	672	$	169	$	503


Reclassification adjustments:
Amortization of prior service cost	Other expense, net	390		98		292
Amortization of actuarial loss, net	Other expense, net	13,317		3,324		9,993
Total reclassification adjustments		13,707		3,422		10,285




Foreign currency translation:

Foreign currency translation adjustment	N/A	54,890		—		54,890
Marketable securities:
Change in marketable securities (1)	N/A	3,163		664		2,499
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	184		46		138
Change in cash flow hedges	Operating expenses (2)	9,184		2,261		6,923
Change in net investment hedges	N/A	(22,361)		(5,620)		(16,741)
Total other comprehensive (loss) before reclassification adjustments		(12,993)		(3,313)		(9,680)

Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,786		1,446		4,340
Total other comprehensive income		$	65,225	$	2,388	$	62,837


(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 2024.
(2)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.


		26-Week Period Ended Dec. 31, 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:
Other comprehensive income before reclassification adjustments:
Net actuarial loss, arising in the current year	Other expense, net	$	(89,851)	$	(22,463)	$	(67,388)
Settlements	Other expense, net	315,455		78,864		236,591
Total other comprehensive income before reclassification adjustments		225,604		56,401		169,203
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	198		50		148
Amortization of actuarial loss, net	Other expense, net	16,686		4,167		12,519
Total reclassification adjustments		16,884		4,217		12,667




Foreign currency translation:

Foreign currency translation adjustment	N/A	9,632		—		9,632
Marketable securities:
Change in marketable securities (1)	N/A	(2,701)		(567)		(2,134)
Hedging instruments:
Other comprehensive (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (2)	(34,820)		(8,633)		(26,187)
Change in net investment hedges	N/A	(13,653)		(3,413)		(10,240)
Total other comprehensive (loss) before reclassification adjustments		(48,473)		(12,046)		(36,427)

Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,767		1,442		4,325
Total other comprehensive income		$	206,713	$	49,447	$	157,266


(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 2023.
(2)			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 for the periods presented:


	26-Week Period Ended Dec. 30, 2023
	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. 1, 2023	$	(839,541)	$	(374,290)	$	(31,966)	$	(6,793)	$	(1,252,590)

Net actuarial loss arising in the current year	503		—		—		—		503

Equity adjustment from foreign currency translation	—		54,890		—		—		54,890
Amortization of cash flow hedges	—		—		4,340		—		4,340

Change in net investment hedges					(16,741)				(16,741)
Change in excluded component of fair value hedge	—		—		138		—		138
Change in cash flow hedge	—		—		6,923		—		6,923


Amortization of unrecognized prior service cost	292		—		—		—		292
Amortization of unrecognized net actuarial losses	9,993		—		—		—		9,993
Change in marketable securities	—		—		—		2,499		2,499
Balance as of Dec. 30, 2023	$	(828,753)	$	(319,400)	$	(37,306)	$	(4,294)	$	(1,189,753)


	26-Week Period Ended Dec. 31, 2022
	Pension and Other Postretirement Benefit Plans, net of tax		Foreign Currency Translation		Hedging, net of tax		Marketable Securities		Total
	(In thousands)
Balance as of Jul. 2, 2022	$	(1,011,335)	$	(501,517)	$	35,770	$	(4,972)	$	(1,482,054)
Net actuarial loss arising in the current year	(67,388)		—		—		—		(67,388)
Settlements	236,591		—		—		—		236,591
Equity adjustment from foreign currency translation	—		9,632		—		—		9,632
Amortization of cash flow hedges	—		—		4,325		—		4,325
Change in net investment hedges	—		—		(10,240)		—		(10,240)

Change in cash flow hedges	—		—		(26,187)		—		(26,187)

Amortization of unrecognized prior service cost	148		—		—		—		148
Amortization of unrecognized net actuarial losses	12,519		—		—		—		12,519
Change in marketable securities	—		—		—		(2,134)		(2,134)
Balance as of Dec. 31, 2022	$	(829,465)	$	(491,885)	$	3,668	$	(7,106)	$	(1,324,788)