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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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Jul. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Outstanding Swap Agreements | Details of outstanding hedging instruments as of July 1, 2023 are presented below:
Maturity Date of the Hedging Instrument |  | Currency / Unit of Measure |  | Notional Value
|  |  |  | (In millions)
Hedging of foreign currency risk |  |  |  |
Various (July 2023 to August 2023) |  | Swedish Krona |  | 140
Various (July 2023 to October 2023) |  | British Pound Sterling |  | 15
May 2024 |  | Mexican Peso |  | 439
Hedging of fuel risk |  |  |  |
Various (July 2023 to September 2025) |  | Gallons |  | 71
Schedule of Derivatives Balance Sheet Location Table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of July 1, 2023 and July 2, 2022 are as follows:
|  |  | Derivative Fair Value
| Balance Sheet location |  | Jul. 1, 2023 |  | Jul. 2, 2022
|  |  | (In thousands)
Fair Value Hedges: |  |  |  |  |
Cross currency swap | Other current liabilities |  | $ | 1,262 |  |  | $ | — |
Interest rate swaps | Other current liabilities |  | — |  |  | 2,820 |
Cash Flow Hedges: |  |  |  |  |
Fuel swaps | Other current assets |  | $ | 102 |  |  | $ | 47,170 |
Foreign currency forwards | Other current assets |  | 624 |  |  | 633 |
Fuel swaps | Other assets |  | 40 |  |  | — |
Fuel swaps | Other current liabilities |  | 17,932 |  |  | — |
Foreign currency forwards | Other current liabilities |  | 404 |  |  | — |
Fuel swaps | Other long-term liabilities |  | 5,637 |  |  | 209 |
The carrying amount of hedged liabilities in the consolidated balance sheet as of July 1, 2023 is zero. 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 |
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:
|  |  |  |  |  | Jul. 1, 2023 |  | Jul. 2, 2022
|  |  |  |  |  | (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 |  |  |  |  |  | $ | 753,194 |  |  | $ | 623,643 |
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Hedged items |  |  |  |  |  | $ | (10,410) |  |  | $ | 30,268 |
Derivatives designated as hedging instruments |  |  |  |  |  | (4,489) |  |  | (56,543) |
Cross currency swap: |  |  |  |  |  |  |  |
Hedged items |  |  |  |  |  | $ | 1,063 |  |  | $ | — |
Derivatives designated as hedging instruments |  |  |  |  |  | (1,063) |  |  | — |
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. 1, 2023 |  | Jul. 2, 2022
|  |  |  |  |  | (In thousands)
Interest expense |  |  |  |  |  | $ | (7,590) |  |  | $ | (15,769) |
Increase (decrease) in fair value of debt |  |  |  |  |  | 1,757 |  |  | (46,037) |
Hedged items |  |  |  |  |  | $ | (9,347) |  |  | $ | 30,268 |
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 1, 2023 and July 2, 2022, presented on a pretax basis, are as follows:
| 2023
| 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 | $ | (70,842) |  |  | Operating expense |  | $ | 29,028 |
Foreign currency contracts | (428) |  |  | Cost of sales / Other income |  | — |
Total | $ | (71,270) |  |  |  |  | $ | 29,028 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign denominated debt | $ | (27,902) |  |  | N/A |  | $ | — |
Derivatives in fair value hedging relationships: |  |  |  |  |
Change in excluded component of fair value hedge | $ | (199) |  |  | Other expense (income) |  | $ | — |
| 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 |  | $ | — |

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