OTHER COMPREHENSIVE INCOME

9 Months Ended

Mar. 30, 2024

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $383.2 million and $473.5 million for the third quarter of fiscal 2024 and fiscal 2023, respectively. Comprehensive income was $1.4 billion and $1.2 billion for the first 39 weeks of fiscal 2024 and fiscal 2023, respectively.

A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows:


		13-Week Period Ended Mar. 30, 2024
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	(67,825)	$	—	$	(67,825)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	313		79		234
Change in cash flow hedges	Operating expenses (1)	15,172		2,632		12,540
Change in net investment hedges	N/A	9,042		2,273		6,769

Total other comprehensive (loss) before reclassification adjustments		24,527		4,984		19,543
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,893		723		2,170
Pension and other postretirement benefit plans:




Reclassification adjustments:
Amortization of prior service cost	Other expense, net	195		49		146
Amortization of actuarial loss, net	Other expense, net	6,705		1,671		5,034
Total reclassification adjustments		6,900		1,720		5,180
Marketable securities:
Change in marketable securities (2)	N/A	(443)		93		(536)
Total other comprehensive income (loss)		$	(33,948)	$	7,520	$	(41,468)


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2024.


		13-Week Period Ended Apr. 1, 2023
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Foreign currency translation:
Foreign currency translation adjustment	N/A	$	62,771	$	—	$	62,771
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(27,909)		(5,454)		(22,455)
Change in net investment hedges	N/A	(7,201)		(1,800)		(5,401)

Total other comprehensive (loss) before reclassification adjustments		(35,110)		(7,254)		(27,856)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,893		723		2,170
Pension and other postretirement benefit plans:




Reclassification adjustments:
Amortization of prior service cost	Other expense, net	99		25		74
Amortization of actuarial loss, net	Other expense, net	7,472		1,867		5,605

Total reclassification adjustments		7,571		1,892		5,679
Marketable securities:
Change in marketable securities (2)	N/A	1,441		302		1,139
Total other comprehensive income		$	39,566	$	(4,337)	$	43,903


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2023.


		39-Week Period Ended Mar. 30, 2024
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	(12,935)	$	—	$	(12,935)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	497		125		372
Change in cash flow hedges	Operating expenses (1)	24,356		4,893		19,463
Change in net investment hedges	N/A	(13,319)		(3,347)		(9,972)
Total other comprehensive (loss) before reclassification adjustments		11,534		1,671		9,863

Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	8,679		2,169		6,510
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial gain, arising in the current year		672		169		503


Reclassification adjustments:
Amortization of prior service cost	Other expense, net	585		147		438
Amortization of actuarial loss, net	Other expense, net	20,022		4,995		15,027
Total reclassification adjustments		20,607		5,142		15,465




Marketable securities:
Change in marketable securities (2)	N/A	2,720		757		1,963
Total other comprehensive income		$	31,277	$	9,908	$	21,369


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2024.


		39-Week Period Ended Apr. 1, 2023
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	72,403	$	—	$	72,403
Hedging instruments:
Other comprehensive (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(62,729)		(14,087)		(48,642)
Change in net investment hedges	N/A	(20,854)		(5,213)		(15,641)
Total other comprehensive (loss) before reclassification adjustments		(83,583)		(19,300)		(64,283)

Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	8,660		2,165		6,495
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial loss, arising in the current year		(89,851)		(22,463)		(67,388)
Settlements	Other expense, net	315,455		78,864		236,591
Total other comprehensive income before reclassification adjustments		225,604		56,401		169,203
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	297		75		222
Amortization of actuarial loss, net	Other expense, net	24,158		6,034		18,124
Total reclassification adjustments		24,455		6,109		18,346




Marketable securities:
Change in marketable securities (2)	N/A	(1,260)		(265)		(995)
Total other comprehensive income		$	246,279	$	45,110	$	201,169


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2023.

The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:


	13-Week Period Ended Mar. 30, 2024
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Dec. 30, 2023	$	(319,400)	$	(37,306)	$	(828,753)	$	(4,294)	$	(1,189,753)
Equity adjustment from foreign currency translation	(67,825)		—		—		—		(67,825)
Amortization of cash flow hedges	—		2,170		—		—		2,170
Change in net investment hedges	—		6,769		—		—		6,769
Change in cash flow hedges	—		12,540		—		—		12,540
Change in excluded component of fair value hedge	—		234		—		—		234
Amortization of unrecognized prior service cost	—		—		146		—		146
Amortization of unrecognized net actuarial losses	—		—		5,034		—		5,034





Change in marketable securities	—		—		—		(536)		(536)
Balance as of Mar. 30, 2024	$	(387,225)	$	(15,593)	$	(823,573)	$	(4,830)	$	(1,231,221)


	13-Week Period Ended Apr. 1, 2023
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Dec. 31, 2022	$	(491,885)	$	3,668	$	(829,465)	$	(7,106)	$	(1,324,788)
Equity adjustment from foreign currency translation	62,771		—		—		—		62,771
Amortization of cash flow hedges	—		2,170		—		—		2,170
Change in net investment hedges	—		(5,401)		—		—		(5,401)
Change in cash flow hedges	—		(22,455)		—		—		(22,455)
Amortization of unrecognized prior service cost	—		—		74		—		74
Amortization of unrecognized net actuarial losses	—		—		5,605		—		5,605



Change in marketable securities	—		—		—		1,139		1,139
Balance as of Apr. 1, 2023	$	(429,114)	$	(22,018)	$	(823,786)	$	(5,967)	$	(1,280,885)



	39-Week Period Ended Mar. 30, 2024
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Jul. 1, 2023	$	(374,290)	$	(31,966)	$	(839,541)	$	(6,793)	$	(1,252,590)
Equity adjustment from foreign currency translation	(12,935)		—		—		—		(12,935)
Amortization of cash flow hedges	—		6,510		—		—		6,510
Change in net investment hedges	—		(9,972)		—		—		(9,972)
Change in cash flow hedges	—		19,463		—		—		19,463
Change in excluded component of fair value hedge	—		372		—		—		372
Amortization of unrecognized prior service cost	—		—		438		—		438
Amortization of unrecognized net actuarial losses	—		—		15,027		—		15,027


Net actuarial loss arising in the current year	—		—		503		—		503


Change in marketable securities	—		—		—		1,963		1,963
Balance as of Mar. 30, 2024	$	(387,225)	$	(15,593)	$	(823,573)	$	(4,830)	$	(1,231,221)


	39-Week Period Ended Apr. 1, 2023
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Jul. 2, 2022	$	(501,517)	$	35,770	$	(1,011,335)	$	(4,972)	$	(1,482,054)
Equity adjustment from foreign currency translation	72,403		—		—		—		72,403
Amortization of cash flow hedges	—		6,495		—		—		6,495
Change in net investment hedges	—		(15,641)		—		—		(15,641)
Change in cash flow hedges	—		(48,642)		—		—		(48,642)
Amortization of unrecognized prior service cost	—		—		222		—		222
Amortization of unrecognized net actuarial losses	—		—		18,124		—		18,124
Settlements	—		—		236,591		—		236,591

Net actuarial loss arising in the current year	—		—		(67,388)		—		(67,388)
Change in marketable securities	—		—		—		(995)		(995)
Balance as of Apr. 1, 2023	$	(429,114)	$	(22,018)	$	(823,786)	$	(5,967)	$	(1,280,885)