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Derivatives and Hedging Activities (Tables)
12 Months Ended
Jun. 29, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Swap Agreements The following table summarizes the outstanding Swap Agreements as of June 29, 2019 (in millions):

 

Effective Date

 

Maturity Date

 

Notional

Amount

 

 

Fixed Rate

Swapped

 

June 30, 2017

 

June 30, 2019

 

 

50.0

 

 

 

1.13

%

June 30, 2017

 

June 30, 2020

 

 

50.0

 

 

 

1.23

%

June 30, 2017

 

June 30, 2020

 

 

50.0

 

 

 

1.25

%

June 30, 2017

 

June 30, 2020

 

 

50.0

 

 

 

1.26

%

August 9, 2018

 

August 9, 2021

 

 

75.0

 

 

 

1.21

%

August 9, 2018

 

August 9, 2021

 

 

75.0

 

 

 

1.20

%

June 30, 2020

 

December 31, 2021

 

 

100.0

 

 

 

2.16

%

August 9, 2021

 

April 9, 2023

 

 

100.0

 

 

 

2.93

%

 

Effect of Interest Rate Swaps Designated in Hedging Relationships on Consolidated Statement of Operations

The tables below present the effect of the interest rate swaps designated in hedging relationships on the consolidated statement of operations for the fiscal years ended June 29, 2019, June 30, 2018 and July 1, 2017:

 

(in millions)

 

Fiscal year

ended

June 29, 2019

 

 

Fiscal year

ended

June 30, 2018

 

 

Fiscal year

ended

July 1, 2017

 

Amount of loss (gain) recognized in OCI, pre-tax

 

$

8.4

 

 

$

(7.9

)

 

$

(9.3

)

Tax (benefit) expense

 

 

(2.1

)

 

 

2.1

 

 

 

3.6

 

Amount of loss (gain) recognized in OCI, after-tax

 

$

6.3

 

 

$

(5.8

)

 

$

(5.7

)

Amount of gain (loss) reclassified from OCI into interest expense, pre-tax

 

$

4.0

 

 

$

0.6

 

 

$

(4.0

)

Tax (expense) benefit

 

 

(0.9

)

 

 

(0.2

)

 

 

1.5

 

Amount of gain (loss) reclassified from OCI into interest expense, after-tax

 

$

3.1

 

 

$

0.4

 

 

$

(2.5

)

Total interest expense

 

$

65.4

 

 

$

60.4

 

 

$

54.9

 

 

Summary of Fair Value of Derivative Financial Instruments

The Company does not currently have a payable or receivable related to cash collateral for its derivatives, and therefore it has not established an accounting policy for offsetting the fair value of its derivatives against such balances. The table below presents the fair value of the derivative financial instruments as well as their classification on the balance sheet as of June 29, 2019 and June 30, 2018:

 

(in millions)

 

Balance Sheet Location

 

Fair Value

as of

June 29, 2019

 

 

Fair Value

as of

June 30, 2018

 

Assets

 

 

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

Prepaid expenses and other current assets

 

$

1.9

 

 

$

4.0

 

Interest rate swaps

 

Other assets

 

 

0.5

 

 

 

8.4

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

 

Diesel fuel collars

 

Prepaid expenses and other current assets

 

 

 

 

 

0.1

 

Total assets

 

 

 

$

2.4

 

 

$

12.5

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

Other liabilities

 

$

2.4

 

 

$

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

 

 

Diesel fuel collars

 

Accrued expenses and other current liabilities

 

 

0.1

 

 

 

 

Total liabilities

 

 

 

$

2.5

 

 

$

 

 

Summary of Derivative Assets and Liability Balance by Type of Financial Instrument Before and After Effects of Offsetting The tables below present the derivative assets and liability balance, before and after the effects of offsetting, as of June 29, 2019 and June 30, 2018:

 

 

 

June 29, 2019

 

 

June 30, 2018

 

(In millions)

 

Gross

Amounts

Presented

in the

Consolidated

Balance Sheet

 

 

Gross Amounts

Not Offset in

the Consolidated

Balance Sheet

Subject to

Netting

Agreements

 

 

Net

Amounts

 

 

Gross Amounts

Presented in

the Consolidated

Balance Sheet

 

 

Gross Amounts

Not Offset in

the Consolidated

Balance Sheet

Subject to

Netting

Agreements

 

 

Net

Amounts

 

Total asset derivatives:

 

$

2.4

 

 

$

(0.4

)

 

$

2.0

 

 

$

12.5

 

 

$

 

 

$

12.5

 

Total liability derivatives:

 

 

(2.5

)

 

 

0.4

 

 

 

(2.1

)