XML 48 R27.htm IDEA: XBRL DOCUMENT
v3.20.2

Derivative Financial Instruments (Tables) | 3 Months Ended
--- | ---
Sep. 26, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of September 26, 2020 are presented below:
Maturity Date of the Hedging Instrument |  | Currency / Unit of Measure |  | Notional Value
|  |  |  | (In millions)
Hedging of interest rate risk |  |  |  |
July 2021 |  | U.S. Dollar |  | 500
June 2023 |  | Euro |  | 500
March 2025 |  | U.S. Dollar |  | 500
Hedging of foreign currency risk |  |  |  |
Various (September 28, 2020 to October 2020) |  | Swedish Krona |  | 57
Various (October 2020 to February 2021) |  | British Pound Sterling |  | 7
June 2023 |  | Euro |  | 500
Hedging of fuel risk |  |  |  |
Various (September 30, 2020 to December 2021) |  | Gallons |  | 43
Derivatives balance sheet location table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of September 26, 2020 and June 27, 2020 are as follows:
|  |  | Derivative Fair Value
| Balance Sheet location |  | Sep. 26, 2020 |  | Jun. 27, 2020
|  |  | (In thousands)
Fair Value Hedges: |  |  |  |  |
Interest rate swaps | Other current assets |  | $ | 4,013 |  |  | $ | 1,388 |
Interest rate swaps | Other assets |  | 62,594 |  |  | 69,782 |
Cash Flow Hedges: |  |  |  |  |
Fuel swaps | Other current assets |  | $ | 455 |  |  | $ | 233 |
Foreign currency forwards | Other current assets |  | 753 |  |  | 1,063 |
Fuel swaps | Other assets |  | 385 |  |  | 1,173 |
Cross currency swaps | Other assets |  | — |  |  | 19,614 |
Fuel swaps | Other current liabilities |  | 21,160 |  |  | 28,242 |
Foreign currency forwards | Other current liabilities |  | — |  |  | 222 |
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of September 26, 2020 are as follows:
| Sep. 26, 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 | $ | (499,678) |  |  | $ | (4,198) |
Long-term debt | (1,064,374) |  |  | (62,594) |
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) |
Schedule of location and effect of derivative instruments and related hedged items | 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:
|  | 13-Week Period Ended |  |
|  | Sep. 26, 2020 |  | Sep. 28, 2019 |  |  |  |
|  | (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 |  | $ | 146,717 |  |  | $ | 83,335 |  |  |  |  |
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Hedged items |  | $ | (9,998) |  |  | $ | (24,736) |  |  |  |  |
Derivatives designated as hedging instruments |  | 3,457 |  |  | 8,857 |  |  |  |  |
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:
|  | 13-Week Period Ended |  |
|  | Sep. 26, 2020 |  | Sep. 28, 2019 |  |  |  |
|  | (In thousands) |  |  |  |
Interest expense |  | $ | (14,834) |  |  | $ | (14,557) |  |  |  |  |
Increase (decrease) in fair value of debt |  | (4,836) |  |  | 10,179 |  |  |  |  |
Hedged items |  | $ | (9,998) |  |  | $ | (24,736) |  |  |  |  |
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended September 26, 2020 and September 28, 2019, presented on a pretax basis, are as follows:
| 13-Week Period Ended Sep. 26, 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 | $ | 2,891 |  |  | Operating expense |  | $ | (8,652) |
Foreign currency contracts | (19,732) |  |  | Cost of sales / Other income |  | (2,692) |
Total | $ | (16,841) |  |  |  |  | $ | (11,344) |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign denominated debt | (36,550) |  |  | N/A |  | — |
Total | $ | (36,550) |  |  |  |  | $ | — |
| 13-Week Period Ended Sep. 28, 2019
| 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 | $ | 344 |  |  | Operating expense |  | $ | (3,406) |
Foreign currency contracts | 12,307 |  |  | Cost of sales / Other income |  | 2 |
Total | $ | 12,651 |  |  |  |  | $ | (3,404) |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign currency contracts | $ | 20,852 |  |  | N/A |  | $ | — |
Foreign denominated debt | 21,450 |  |  | N/A |  | — |
Total | $ | 42,302 |  |  |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest rate derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfInterestRateDerivativesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration