v3.26.1
Derivatives and Hedging Activities (Tables)
 12 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Swap Agreements The following table summarizes the outstanding swap agreements as of June 27, 2026 (in millions):

Effective Date

 

Maturity Date

 

Notional
Amount

 

 

Fixed Rate
Swapped

 

December 16, 2024

 

December 15, 2027

 

$

100.0

 

 

 

3.14

%

December 16, 2024

 

December 15, 2027

 

$

50.0

 

 

 

3.59

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

The table below presents the effect of the interest rate swaps designated in hedging relationships on the consolidated statements of operations for the fiscal years ended June 27, 2026, June 28, 2025, and June 29, 2024:

(In millions)

 

Fiscal Year
Ended
June 27, 2026

 

 

Fiscal Year
Ended
June 28, 2025

 

 

Fiscal Year
Ended
June 29, 2024

 

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

 

$

(1.7

)

 

$

1.8

 

 

$

(4.5

)

Tax expense (benefit)

 

 

0.4

 

 

 

(0.5

)

 

 

1.1

 

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

 

$

(1.3

)

 

$

1.3

 

 

$

(3.4

)

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

 

$

0.9

 

 

$

7.9

 

 

$

16.1

 

Tax expense

 

 

(0.2

)

 

 

(2.0

)

 

 

(4.1

)

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

 

$

0.7

 

 

$

5.9

 

 

$

12.0

 

Total interest expense

 

$

413.7

 

 

$

358.4

 

 

$

232.2

 
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 27, 2026 and June 28, 2025:

(In millions)

 

Balance Sheet Location

 

Fair Value
as of
June 27, 2026

 

 

Fair Value
as of
June 28, 2025

 

Assets

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

Interest rate swaps

 

Prepaid expenses and other current assets

 

$

0.8

 

 

$

0.8

 

Interest rate swaps

 

Other assets

 

 

0.5

 

 

 

—

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

Diesel fuel derivative instruments

 

Prepaid expenses and other current assets

 

$

3.0

 

 

$

0.1

 

Other derivative instruments

 

Prepaid expenses and other current assets

 

 

0.7

 

 

 

0.2

 

Total assets

 

 

 

$

5.0

 

 

$

1.1

 

Liabilities

 

 

 

 

 

 

 

 

Derivatives designated as hedges:

 

 

 

 

 

 

 

 

Interest rate swaps

 

Other long-term liabilities

 

 

—

 

 

 

0.3

 

Derivatives not designated as hedges:

 

 

 

 

 

 

 

 

Diesel fuel derivative instruments

 

Accrued expenses and other current liabilities

 

 

—

 

 

$

0.2

 

Total liabilities

 

 

 

$

—

 

 

$

0.5

 
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 27, 2026 and June 28, 2025:

 

 

June 27, 2026

 

 

June 28, 2025

 

(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:

 

$

5.0

 

 

$

—

 

 

$

5.0

 

 

$

1.1

 

 

$

(0.3

)

 

$

0.8

 

Total liability derivatives:

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.5

)

 

 

0.3

 

 

 

(0.2

)

 

The derivative instruments are the only assets or liabilities that are recorded at fair value on a recurring basis. The fuel collars represent Level 2 on the fair value hierarchy because they are not actively traded and are valued using pricing models that utilize observable market inputs including commodity prices. The fair values of the Company’s interest rate swap agreements are determined using a valuation model with several inputs and assumptions, some of which may be unobservable. A specific unobservable input used by the Company in determining the fair value of its interest rate swaps is an estimation of both the unsecured borrowing spread to SOFR for the Company as well as that of the derivative counterparties. Based on the lack of significance of this estimated spread component to the overall value of the Company’s interest rate swaps, the Company has concluded that these swaps represent Level 2 on the hierarchy.