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		$	—