XML 59 R41.htm IDEA: XBRL DOCUMENT
v3.22.2.2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
--- | ---
Jul. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of July 2, 2022 are presented below:
Maturity Date of the Hedging Instrument |  | Currency / Unit of Measure |  | Notional Value
|  |  |  | (In millions)
Hedging of interest rate risk |  |  |  |
June 2023 |  | Euro |  | 500
Hedging of foreign currency risk |  |  |  |
Various (July 2022 to August 2022) |  | Swedish Krona |  | 106
Various (July 2022 to December 2022) |  | British Pound Sterling |  | 14
June 2023 |  | Euro |  | 500
Hedging of fuel risk |  |  |  |
Various (July 2022 to June 2024) |  | Gallons |  | 52
Summary of derivatives balance sheet location | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of July 2, 2022 and July 3, 2021 are as follows:
|  |  | Derivative Fair Value
| Balance Sheet location |  | Jul. 2, 2022 |  | Jul. 3, 2021
|  |  | (In thousands)
Fair Value Hedges: |  |  |  |  |
Interest rate swaps | Other assets |  | $ | — |  |  | $ | 43,217 |
Interest rate swaps | Other current liabilities |  | 2,820 |  |  | — |
Cash Flow Hedges: |  |  |  |  |
Fuel swaps | Other current assets |  | $ | 47,170 |  |  | $ | 16,732 |
Foreign currency forwards | Other current assets |  | 633 |  |  | 42 |
Foreign currency forwards | Other current liabilities |  | — |  |  | 46 |
Fuel swaps | Other long-term liabilities |  | 209 |  |  | — |
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 2, 2022 are as follows:
| Jul. 2, 2022
| 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 | $ | (568,601) |  |  | $ | 2,820 |
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 3, 2021 are as follows:
| Jul. 3, 2021
| 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: |  |  |
Long-term debt | $ | (1,065,364) |  |  | $ | (43,217) |
Summary of derivatives financial statement performance | 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:
|  |  |  |  |  | Jul. 2, 2022 |  | Jul. 3, 2021
|  |  |  |  |  | (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 |  |  |  |  |  | $ | 623,643 |  |  | $ | 880,137 |
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Hedged items |  |  |  |  |  | $ | 30,268 |  |  | $ | (15,749) |
Derivatives designated as hedging instruments |  |  |  |  |  | (56,543) |  |  | (53,701) |
The (gains) 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:
|  |  |  |  |  | Jul. 2, 2022 |  | Jul. 3, 2021
|  |  |  |  |  | (In thousands)
Interest expense |  |  |  |  |  | $ | (15,769) |  |  | $ | (44,159) |
Increase (decrease) in fair value of debt |  |  |  |  |  | (46,037) |  |  | (28,410) |
Hedged items |  |  |  |  |  | $ | 30,268 |  |  | $ | (15,749) |
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended July 2, 2022 and July 3, 2021, presented on a pretax basis, are as follows:
| 2022
| 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 | $ | 30,514 |  |  | Operating expense |  | $ | 51,941 |
Foreign currency contracts | 621 |  |  | Cost of sales / Other income |  | — |
Total | $ | 31,135 |  |  |  |  | $ | 51,941 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign denominated debt | 71,906 |  |  | N/A |  | — |
Total | $ | 71,906 |  |  |  |  | $ | — |
| 2021
| 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 | $ | 39,644 |  |  | Operating expense |  | $ | (17,470) |
Foreign currency contracts | (20,578) |  |  | Cost of sales / Other income |  | (2,692) |
Total | $ | 19,066 |  |  |  |  | $ | (20,162) |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign denominated debt | (32,206) |  |  | N/A |  | — |
Total | $ | (32,206) |  |  |  |  | $ | — |

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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfInterestRateDerivativesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration