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)		$	—