OTHER COMPREHENSIVE INCOME

6 Months Ended

Dec. 28, 2024

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, amounts related to certain hedging arrangements, amounts related to pension and other postretirement plans and changes in marketable securities. Comprehensive income was $176 million and $552 million for the second quarter of fiscal 2025 and fiscal 2024, respectively. Comprehensive income was $839 million and $982 million for the first 26 weeks of fiscal 2025 and 2024, 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. 28, 2024
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In millions)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	(257)	$	—	$	(257)
Currency translation adjustment as a result of disposition of a foreign subsidiary	Operating expense	2		—		2
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	(2)		—		(2)
Change in cash flow hedges	Operating expenses (1)	7		1		6
Change in net investment hedges	N/A	22		6		16

Total other comprehensive income before reclassification adjustments		27		7		20
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2		—		2
Pension and other postretirement benefit plans:




Reclassification adjustments:

Amortization of actuarial loss, net	Other expense, net	7		2		5
Total reclassification adjustments		7		2		5
Marketable securities:
Change in marketable securities (2)	N/A	(3)		(1)		(2)
Total other comprehensive income (loss)		$	(222)	$	8	$	(230)


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			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 2025.


		13-Week Period Ended Dec. 30, 2023
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In millions)
Foreign currency translation:
Foreign currency translation adjustment	N/A	$	163	$	—	$	163
Hedging instruments:
Other comprehensive income before reclassification adjustments:

Change in cash flow hedges	Operating expenses (1)	(25)		(5)		(20)
Change in net investment hedges	N/A	(22)		(5)		(17)

Total other comprehensive (loss) before reclassification adjustments		(47)		(10)		(37)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	3		1		2
Pension and other postretirement benefit plans:




Reclassification adjustments:

Amortization of actuarial loss, net	Other expense, net	7		2		5

Total reclassification adjustments		7		2		5
Marketable securities:
Change in marketable securities (2)	N/A	4		—		4
Total other comprehensive income (loss)		$	130	$	(7)	$	137


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


		26-Week Period Ended Dec. 28, 2024
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In millions)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	(89)	$	—	$	(89)
Currency translation adjustment as a result of disposition of a foreign subsidiary	Operating expense	2		—		2
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	(2)		—		(2)
Change in cash flow hedges	Operating expenses (1)	(13)		(5)		(8)
Change in net investment hedges	N/A	4		1		3
Total other comprehensive (loss) before reclassification adjustments		(11)		(4)		(7)

Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	4		1		3
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial gain arising in the current year		31		8		23


Reclassification adjustments:

Amortization of actuarial loss, net	Other expense, net	14		4		10
Total reclassification adjustments		14		4		10




Marketable securities:
Change in marketable securities (2)	N/A	1		—		1
Total other comprehensive income (loss)		$	(48)	$	9	$	(57)


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			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 2025.


		26-Week Period Ended Dec. 30, 2023
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In millions)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	55	$	—	$	55
Hedging instruments:
Other comprehensive (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	9		2		7
Change in net investment hedges	N/A	(22)		(5)		(17)
Total other comprehensive (loss) before reclassification adjustments		(13)		(3)		(10)

Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	6		2		4
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial gain arising in the current year		1		—		1


Reclassification adjustments:

Amortization of actuarial loss, net	Other expense, net	13		3		10
Total reclassification adjustments		13		3		10




Marketable securities:
Change in marketable securities (2)	N/A	3		—		3
Total other comprehensive income		$	65	$	2	$	63


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

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


	13-Week Period Ended Dec. 28, 2024
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In millions)
Balance as of Sep. 28, 2024	$	(239)	$	(36)	$	(889)	$	(2)	$	(1,166)
Equity adjustment from foreign currency translation	(257)		—		—		—		(257)
Currency translation adjustment as a result of disposition of a foreign subsidiary	2		—		—		—		2
Amortization of cash flow hedges	—		2		—		—		2
Change in net investment hedges	—		16		—		—		16
Change in cash flow hedges	—		6		—		—		6
Change in excluded component of fair value hedge	—		(2)		—		—		(2)

Amortization of unrecognized net actuarial losses	—		—		5		—		5





Change in marketable securities	—		—		—		(2)		(2)
Balance as of Dec. 28, 2024	$	(494)	$	(14)	$	(884)	$	(4)	$	(1,396)


	13-Week Period Ended Dec. 30, 2023
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In millions)
Balance as of Sep. 30, 2023	$	(482)	$	(3)	$	(834)	$	(8)	$	(1,327)
Equity adjustment from foreign currency translation	163		—		—		—		163
Amortization of cash flow hedges	—		2		—		—		2
Change in net investment hedges	—		(17)		—		—		(17)
Change in cash flow hedges	—		(20)		—		—		(20)
Amortization of unrecognized prior service cost	—		—		—		—		—
Amortization of unrecognized net actuarial losses	—		—		5		—		5



Change in marketable securities	—		—		—		4		4
Balance as of Dec. 30, 2023	$	(319)	$	(38)	$	(829)	$	(4)	$	(1,190)



	26-Week Period Ended Dec. 28, 2024
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In millions)
Balance as of Jun. 29, 2024	$	(407)	$	(10)	$	(917)	$	(5)	$	(1,339)
Equity adjustment from foreign currency translation	(89)		—		—		—		(89)
Currency translation adjustment as a result of disposition of a foreign subsidiary	2		—		—		—		2
Amortization of cash flow hedges	—		3		—		—		3
Change in net investment hedges	—		3		—		—		3
Change in cash flow hedges	—		(8)		—		—		(8)
Change in excluded component of fair value hedge	—		(2)		—		—		(2)

Amortization of unrecognized net actuarial losses	—		—		10		—		10


Net actuarial gain arising in the current year	—		—		23		—		23


Change in marketable securities	—		—		—		1		1
Balance as of Dec. 28, 2024	$	(494)	$	(14)	$	(884)	$	(4)	$	(1,396)


	26-Week Period Ended Dec. 30, 2023
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In millions)
Balance as of Jul. 1, 2023	$	(374)	$	(32)	$	(840)	$	(7)	$	(1,253)
Equity adjustment from foreign currency translation	55		—		—		—		55
Amortization of cash flow hedges	—		4		—		—		4
Change in net investment hedges	—		(17)		—		—		(17)
Change in cash flow hedges	—		7		—		—		7

Amortization of unrecognized net actuarial losses	—		—		10		—		10


Net actuarial gain arising in the current year	—		—		1		—		1
Change in marketable securities	—		—		—		3		3
Balance as of Dec. 30, 2023	$	(319)	$	(38)	$	(829)	$	(4)	$	(1,190)