(Mark One) | |||||
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 74-1648137 | ||||||||||
(State or other jurisdiction of incorporation or organization) | ( |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common stock, $1.00 Par Value | SYY | New York Stock Exchange | ||||||||||||
1.25% Notes due June 2023 | SYY 23 | New York Stock Exchange |
Large Accelerated Filer | ☑ | Accelerated Filer | ☐ | ||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ | ||||||||
(Do not check if a smaller reporting company) | Emerging growth company | ☐ |
PART I – FINANCIAL INFORMATION | Page No. | |||||||
PART II – OTHER INFORMATION | ||||||||
Oct. 1, 2022 | Jul. 2, 2022 | Apr. 1, 2023 | Jul. 2, 2022 | |||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | ||||||||||||||||||||||||||||||||
Current assets | Current assets | Current assets | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 437,670 | $ | 867,086 | Cash and cash equivalents | $ | 757,867 | $ | 867,086 | ||||||||||||||||||||||||
Accounts receivable, less allowances of $74,002 and $70,790 | 5,336,857 | 4,838,912 | ||||||||||||||||||||||||||||||||
Accounts receivable, less allowances of $81,190 and $70,790 | Accounts receivable, less allowances of $81,190 and $70,790 | 5,227,387 | 4,838,912 | |||||||||||||||||||||||||||||||
Inventories | Inventories | 4,682,609 | 4,437,498 | Inventories | 4,620,614 | 4,437,498 | ||||||||||||||||||||||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets | 310,131 | 303,789 | Prepaid expenses and other current assets | 292,726 | 303,789 | ||||||||||||||||||||||||||||
Income tax receivable | Income tax receivable | — | 35,934 | Income tax receivable | — | 35,934 | ||||||||||||||||||||||||||||
Total current assets | Total current assets | 10,767,267 | 10,483,219 | Total current assets | 10,898,594 | 10,483,219 | ||||||||||||||||||||||||||||
Plant and equipment at cost, less accumulated depreciation | Plant and equipment at cost, less accumulated depreciation | 4,462,608 | 4,456,420 | Plant and equipment at cost, less accumulated depreciation | 4,649,356 | 4,456,420 | ||||||||||||||||||||||||||||
Other long-term assets | Other long-term assets | Other long-term assets | ||||||||||||||||||||||||||||||||
Goodwill | Goodwill | 4,434,476 | 4,542,315 | Goodwill | 4,613,805 | 4,542,315 | ||||||||||||||||||||||||||||
Intangibles, less amortization | Intangibles, less amortization | 906,385 | 952,683 | Intangibles, less amortization | 886,629 | 952,683 | ||||||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 382,778 | 377,604 | Deferred income taxes | 435,800 | 377,604 | ||||||||||||||||||||||||||||
Operating lease right-of-use assets, net | Operating lease right-of-use assets, net | 704,664 | 723,297 | Operating lease right-of-use assets, net | 708,763 | 723,297 | ||||||||||||||||||||||||||||
Other assets | Other assets | 552,765 | 550,150 | Other assets | 509,086 | 550,150 | ||||||||||||||||||||||||||||
Total other long-term assets | Total other long-term assets | 6,981,068 | 7,146,049 | Total other long-term assets | 7,154,083 | 7,146,049 | ||||||||||||||||||||||||||||
Total assets | Total assets | $ | 22,210,943 | $ | 22,085,688 | Total assets | $ | 22,702,033 | $ | 22,085,688 | ||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Current liabilities | Current liabilities | Current liabilities | ||||||||||||||||||||||||||||||||
Accounts payable | Accounts payable | $ | 6,018,227 | $ | 5,752,958 | Accounts payable | $ | 5,902,249 | $ | 5,752,958 | ||||||||||||||||||||||||
Accrued expenses | Accrued expenses | 2,177,793 | 2,270,753 | Accrued expenses | 2,136,322 | 2,270,753 | ||||||||||||||||||||||||||||
Accrued income taxes | Accrued income taxes | 113,388 | 40,042 | Accrued income taxes | 123,892 | 40,042 | ||||||||||||||||||||||||||||
Current operating lease liabilities | Current operating lease liabilities | 94,027 | 105,690 | Current operating lease liabilities | 94,799 | 105,690 | ||||||||||||||||||||||||||||
Current maturities of long-term debt | Current maturities of long-term debt | 555,829 | 580,611 | Current maturities of long-term debt | 723,473 | 580,611 | ||||||||||||||||||||||||||||
Total current liabilities | Total current liabilities | 8,959,264 | 8,750,054 | Total current liabilities | 8,980,735 | 8,750,054 | ||||||||||||||||||||||||||||
Long-term liabilities | Long-term liabilities | Long-term liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 10,263,331 | 10,066,931 | Long-term debt | 10,258,345 | 10,066,931 | ||||||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 241,748 | 250,171 | Deferred income taxes | 212,407 | 250,171 | ||||||||||||||||||||||||||||
Long-term operating lease liabilities | Long-term operating lease liabilities | 628,861 | 636,417 | Long-term operating lease liabilities | 633,224 | 636,417 | ||||||||||||||||||||||||||||
Other long-term liabilities | Other long-term liabilities | 971,190 | 967,907 | Other long-term liabilities | 1,009,016 | 967,907 | ||||||||||||||||||||||||||||
Total long-term liabilities | Total long-term liabilities | 12,105,130 | 11,921,426 | Total long-term liabilities | 12,112,992 | 11,921,426 | ||||||||||||||||||||||||||||
Noncontrolling interest | Noncontrolling interest | 31,208 | 31,948 | Noncontrolling interest | 33,004 | 31,948 | ||||||||||||||||||||||||||||
Shareholders’ equity | Shareholders’ equity | Shareholders’ equity | ||||||||||||||||||||||||||||||||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | — | — | Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | — | — | ||||||||||||||||||||||||||||
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765,175 | 765,175 | Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765,175 | 765,175 | ||||||||||||||||||||||||||||
Paid-in capital | Paid-in capital | 1,754,409 | 1,766,305 | Paid-in capital | 1,785,075 | 1,766,305 | ||||||||||||||||||||||||||||
Retained earnings | Retained earnings | 10,757,136 | 10,539,722 | Retained earnings | 10,829,909 | 10,539,722 | ||||||||||||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (1,711,325) | (1,482,054) | Accumulated other comprehensive loss | (1,280,885) | (1,482,054) | ||||||||||||||||||||||||||||
Treasury stock at cost, 258,414,989 and 256,531,543 shares | (10,450,054) | (10,206,888) | ||||||||||||||||||||||||||||||||
Treasury stock at cost, 258,761,015 and 256,531,543 shares | Treasury stock at cost, 258,761,015 and 256,531,543 shares | (10,523,972) | (10,206,888) | |||||||||||||||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 1,115,341 | 1,382,260 | Total shareholders’ equity | 1,575,302 | 1,382,260 | ||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | Total liabilities and shareholders’ equity | $ | 22,210,943 | $ | 22,085,688 | Total liabilities and shareholders’ equity | $ | 22,702,033 | $ | 22,085,688 |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 19,126,830 | $ | 16,456,546 | Sales | $ | 18,875,676 | $ | 16,902,139 | $ | 56,596,459 | $ | 49,678,888 | ||||||||||||||||||||||||||||||||
Cost of sales | Cost of sales | 15,637,975 | 13,484,838 | Cost of sales | 15,444,316 | 13,888,745 | 46,326,628 | 40,802,636 | ||||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 3,488,855 | 2,971,708 | Gross profit | 3,431,360 | 3,013,394 | 10,269,831 | 8,876,252 | ||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 2,754,522 | 2,340,026 | Operating expenses | 2,737,183 | 2,517,665 | 8,200,679 | 7,303,932 | ||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 734,333 | 631,682 | Operating income | 694,177 | 495,729 | 2,069,152 | 1,572,320 | ||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 124,150 | 128,214 | Interest expense | 134,931 | 124,018 | 391,123 | 495,131 | ||||||||||||||||||||||||||||||||||||||
Other expense (income), net | Other expense (income), net | 15,281 | (3,252) | Other expense (income), net | 5,209 | (13,777) | 350,614 | (27,705) | ||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | Earnings before income taxes | 594,902 | 506,720 | Earnings before income taxes | 554,037 | 385,488 | 1,327,415 | 1,104,894 | ||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes | 129,334 | 128,707 | Income taxes | 124,433 | 82,163 | 291,027 | 256,115 | ||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 465,568 | $ | 378,013 | Net earnings | $ | 429,604 | $ | 303,325 | $ | 1,036,388 | $ | 848,779 | ||||||||||||||||||||||||||||||||
Net earnings: | Net earnings: | Net earnings: | ||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.92 | $ | 0.74 | Basic earnings per share | $ | 0.85 | $ | 0.60 | $ | 2.04 | $ | 1.66 | ||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | 0.91 | 0.73 | Diluted earnings per share | 0.84 | 0.59 | 2.03 | 1.65 | ||||||||||||||||||||||||||||||||||||||
Average shares outstanding | Average shares outstanding | 507,578,576 | 512,516,067 | Average shares outstanding | 507,716,975 | 508,368,159 | 507,635,083 | 510,642,876 | ||||||||||||||||||||||||||||||||||||||
Diluted shares outstanding | Diluted shares outstanding | 510,383,149 | 515,782,928 | Diluted shares outstanding | 509,842,400 | 512,238,523 | 510,123,782 | 514,198,780 |
(1) | Sysco’s second quarter of fiscal 2023 included a charge for $315.4 million in other expense related to pension settlement charges. See Note 9, “Company-Sponsored Employee Benefit Plans.” |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 465,568 | $ | 378,013 | Net earnings | $ | 429,604 | $ | 303,325 | $ | 1,036,388 | $ | 848,779 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | (232,182) | (87,194) | Foreign currency translation adjustment | 62,771 | (96,582) | 72,403 | (210,646) | ||||||||||||||||||||||||||||||||||||||||||||
Items presented net of tax: | Items presented net of tax: | Items presented net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges | Amortization of cash flow hedges | 2,155 | 2,155 | Amortization of cash flow hedges | 2,170 | 2,155 | 6,495 | 6,465 | ||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges | Change in net investment hedges | 23,509 | 10,165 | Change in net investment hedges | (5,401) | 12,041 | (15,641) | 30,568 | ||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges | Change in cash flow hedges | (26,390) | (429) | Change in cash flow hedges | (22,455) | 18,375 | (48,642) | 11,845 | ||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for loss included in net income | Reclassification adjustment for loss included in net income | (7) | — | 15 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | Amortization of prior service cost | 74 | 74 | Amortization of prior service cost | 74 | 74 | 222 | 222 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | Amortization of actuarial loss | 6,891 | 6,367 | Amortization of actuarial loss | 5,605 | 6,514 | 18,124 | 18,369 | ||||||||||||||||||||||||||||||||||||||||||||
Pension settlement charge | Pension settlement charge | — | — | 236,591 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss arising in current year | Net actuarial loss arising in current year | — | — | (67,388) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities | Change in marketable securities | (3,328) | (311) | Change in marketable securities | 1,146 | (5,323) | (1,010) | (7,063) | ||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive loss | (229,271) | (69,173) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | 43,903 | (62,746) | 201,169 | (150,240) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 236,297 | $ | 308,840 | Comprehensive income | $ | 473,507 | $ | 240,579 | $ | 1,237,557 | $ | 698,539 |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of July 2, 2022 | 765,174,900 | $ | 765,175 | $ | 1,766,305 | $ | 10,539,722 | $ | (1,482,054) | 256,531,543 | $ | (10,206,888) | $ | 1,382,260 | |||||||||||||||||||||||||||||||||
Net earnings | 465,568 | 465,568 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (232,182) | (232,182) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | 2,155 | 2,155 | |||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | (26,390) | (26,390) | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | 23,509 | 23,509 | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 6,965 | 6,965 | |||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | (3,328) | (3,328) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.49 per common share) | (248,154) | (248,154) | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | 3,099,268 | (267,727) | (267,727) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | (11,896) | (1,215,822) | 24,561 | 12,665 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of October 1, 2022 | 765,174,900 | $ | 765,175 | $ | 1,754,409 | $ | 10,757,136 | $ | (1,711,325) | 258,414,989 | $ | (10,450,054) | $ | 1,115,341 | |||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of July 3, 2021 | 765,174,900 | $ | 765,175 | $ | 1,619,995 | $ | 10,151,706 | $ | (1,148,764) | 253,342,595 | $ | (9,835,216) | $ | 1,552,896 | |||||||||||||||||||||||||||||||||
Net earnings | 378,013 | 378,013 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (87,194) | (87,194) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | 2,155 | 2,155 | |||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | (429) | (429) | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | 10,165 | 10,165 | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 6,441 | 6,441 | |||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | (311) | (311) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.47 per common share) | (241,428) | (241,428) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | 35,115 | (517,515) | 17,869 | 52,984 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of October 2, 2021 | 765,174,900 | $ | 765,175 | $ | 1,655,110 | $ | 10,288,291 | $ | (1,217,937) | 252,825,080 | $ | (9,817,347) | $ | 1,673,292 |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | 765,174,900 | $ | 765,175 | $ | 1,774,141 | $ | 10,649,338 | $ | (1,324,788) | 257,846,972 | $ | (10,427,277) | $ | 1,436,589 | |||||||||||||||||||||||||||||||||
Net earnings | 429,604 | 429,604 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 62,771 | 62,771 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | 2,170 | 2,170 | |||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | (22,455) | (22,455) | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | (5,401) | (5,401) | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 5,679 | 5,679 | |||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | 1,139 | 1,139 | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.49 per common share) | (249,033) | (249,033) | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | 1,530,029 | (116,023) | (116,023) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | 10,934 | (615,986) | 19,328 | 30,262 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2023 | 765,174,900 | $ | 765,175 | $ | 1,785,075 | $ | 10,829,909 | $ | (1,280,885) | 258,761,015 | $ | (10,523,972) | $ | 1,575,302 | |||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | 765,174,900 | $ | 765,175 | $ | 1,690,487 | $ | 10,216,625 | $ | (1,236,258) | 258,033,856 | $ | (10,214,957) | $ | 1,221,072 | |||||||||||||||||||||||||||||||||
Net earnings | 303,325 | 303,325 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (96,582) | (96,582) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | 2,155 | 2,155 | |||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | 18,375 | 18,375 | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | 12,041 | 12,041 | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 6,588 | 6,588 | |||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | (5,323) | (5,323) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.47 per common share) | (240,158) | (240,158) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | 46,814 | (1,525,874) | 53,102 | 99,916 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of April 2, 2022 | 765,174,900 | $ | 765,175 | $ | 1,737,301 | $ | 10,279,792 | $ | (1,299,004) | 256,507,982 | $ | (10,161,855) | $ | 1,321,409 |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of July 2, 2022 | 765,174,900 | $ | 765,175 | $ | 1,766,305 | $ | 10,539,722 | $ | (1,482,054) | 256,531,543 | $ | (10,206,888) | $ | 1,382,260 | |||||||||||||||||||||||||||||||||
Net earnings | 1,036,388 | 1,036,388 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 72,403 | 72,403 | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | 6,495 | 6,495 | |||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | (48,642) | (48,642) | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | (15,641) | (15,641) | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 18,346 | 18,346 | |||||||||||||||||||||||||||||||||||||||||||||
Pension settlement charge, net of tax | 236,591 | 236,591 | |||||||||||||||||||||||||||||||||||||||||||||
Net actuarial loss arising in current year | (67,388) | (67,388) | |||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | (995) | (995) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.47 per common share) | (746,201) | (746,201) | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | 4,629,297 | (383,750) | (383,750) | ||||||||||||||||||||||||||||||||||||||||||||
Increase in ownership interest in subsidiaries | (2,077) | (2,077) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | 20,847 | (2,399,825) | 66,666 | 87,513 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2023 | 765,174,900 | $ | 765,175 | $ | 1,785,075 | $ | 10,829,909 | $ | (1,280,885) | 258,761,015 | $ | (10,523,972) | $ | 1,575,302 | |||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of July 3, 2021 | 765,174,900 | $ | 765,175 | $ | 1,619,995 | $ | 10,151,706 | $ | (1,148,764) | 253,342,595 | $ | (9,835,216) | $ | 1,552,896 | |||||||||||||||||||||||||||||||||
Net earnings | 848,779 | 848,779 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (210,646) | (210,646) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | 6,465 | 6,465 | |||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | 11,845 | 11,845 | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | 30,568 | 30,568 | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 18,591 | 18,591 | |||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | (7,063) | (7,063) | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.41 per common share) | (720,693) | (720,693) | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | 5,679,298 | (415,824) | (415,824) | ||||||||||||||||||||||||||||||||||||||||||||
Increase in ownership interest in subsidiaries | (304) | (304) | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | 117,610 | (2,513,911) | 89,185 | 206,795 | |||||||||||||||||||||||||||||||||||||||||||
Balance as of April 2, 2022 | 765,174,900 | $ | 765,175 | $ | 1,737,301 | $ | 10,279,792 | $ | (1,299,004) | 256,507,982 | $ | (10,161,855) | $ | 1,321,409 |
13-Week Period Ended | 39-Week Period Ended | |||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | Cash flows from operating activities: | ||||||||||||||||||||
Net earnings | Net earnings | $ | 465,568 | $ | 378,013 | Net earnings | $ | 1,036,388 | $ | 848,779 | ||||||||||||
Adjustments to reconcile net earnings to cash provided by operating activities: | Adjustments to reconcile net earnings to cash provided by operating activities: | Adjustments to reconcile net earnings to cash provided by operating activities: | ||||||||||||||||||||
Pension settlement charge | Pension settlement charge | 315,354 | — | |||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | 27,224 | 29,313 | Share-based compensation expense | 73,765 | 90,667 | ||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 188,924 | 186,466 | Depreciation and amortization | 574,945 | 571,607 | ||||||||||||||||
Operating lease asset amortization | Operating lease asset amortization | 27,542 | 28,221 | Operating lease asset amortization | 83,959 | 82,415 | ||||||||||||||||
Amortization of debt issuance and other debt-related costs | Amortization of debt issuance and other debt-related costs | 5,435 | 5,577 | Amortization of debt issuance and other debt-related costs | 15,019 | 16,160 | ||||||||||||||||
Deferred income taxes | Deferred income taxes | (31,226) | (30,452) | Deferred income taxes | (163,044) | (110,058) | ||||||||||||||||
Provision for losses on receivables | Provision for losses on receivables | 3,865 | 2,097 | Provision for losses on receivables | 21,899 | 572 | ||||||||||||||||
Loss on extinguishment of debt | Loss on extinguishment of debt | — | 115,603 | |||||||||||||||||||
Other non-cash items | Other non-cash items | 5,011 | (201) | Other non-cash items | 2,787 | (8,945) | ||||||||||||||||
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | Additional changes in certain assets and liabilities, net of effect of businesses acquired: | Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||||||||||||||||||||
Increase in receivables | Increase in receivables | (576,585) | (478,671) | Increase in receivables | (405,372) | (908,127) | ||||||||||||||||
Increase in inventories | Increase in inventories | (283,252) | (294,517) | Increase in inventories | (172,117) | (644,799) | ||||||||||||||||
Increase in prepaid expenses and other current assets | Increase in prepaid expenses and other current assets | (28,372) | (12,528) | Increase in prepaid expenses and other current assets | (6,242) | (25,391) | ||||||||||||||||
Increase in accounts payable | Increase in accounts payable | 288,517 | 329,523 | Increase in accounts payable | 88,995 | 764,263 | ||||||||||||||||
Decrease in accrued expenses | (10,893) | (103,483) | ||||||||||||||||||||
(Decrease) increase in accrued expenses | (Decrease) increase in accrued expenses | (55,162) | 131,376 | |||||||||||||||||||
Decrease in operating lease liabilities | Decrease in operating lease liabilities | (33,319) | (34,146) | Decrease in operating lease liabilities | (100,847) | (99,343) | ||||||||||||||||
Increase in accrued income taxes | 109,280 | 69,256 | ||||||||||||||||||||
Increase (decrease) in accrued income taxes | Increase (decrease) in accrued income taxes | 119,784 | (42,013) | |||||||||||||||||||
Decrease (increase) in other assets | Decrease (increase) in other assets | 17,627 | (9,345) | Decrease (increase) in other assets | 23,843 | (6,595) | ||||||||||||||||
(Decrease) increase in other long-term liabilities | (16,740) | 45,689 | ||||||||||||||||||||
Decrease in other long-term liabilities | Decrease in other long-term liabilities | (28,172) | (30,300) | |||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 158,606 | 110,812 | Net cash provided by operating activities | 1,425,782 | 745,871 | ||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | Cash flows from investing activities: | ||||||||||||||||||||
Additions to plant and equipment | Additions to plant and equipment | (167,260) | (85,019) | Additions to plant and equipment | (474,456) | (327,535) | ||||||||||||||||
Proceeds from sales of plant and equipment | Proceeds from sales of plant and equipment | 22,448 | 5,627 | Proceeds from sales of plant and equipment | 28,313 | 15,946 | ||||||||||||||||
Acquisition of businesses, net of cash acquired | Acquisition of businesses, net of cash acquired | (32,651) | (714,010) | Acquisition of businesses, net of cash acquired | (37,384) | (1,281,835) | ||||||||||||||||
Purchase of marketable securities | Purchase of marketable securities | (3,296) | (9,925) | Purchase of marketable securities | (15,078) | (19,318) | ||||||||||||||||
Proceeds from sales of marketable securities | Proceeds from sales of marketable securities | 2,650 | 8,700 | Proceeds from sales of marketable securities | 11,641 | 16,648 | ||||||||||||||||
Other investing activities | Other investing activities | 3,274 | 6,022 | Other investing activities | 5,610 | 12,773 | ||||||||||||||||
Net cash used for investing activities | Net cash used for investing activities | (174,835) | (788,605) | Net cash used for investing activities | (481,354) | (1,583,321) | ||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | Cash flows from financing activities: | ||||||||||||||||||||
Bank and commercial paper borrowings, net | 97,000 | — | ||||||||||||||||||||
Other debt borrowings including senior notes | Other debt borrowings including senior notes | 59,063 | 3 | Other debt borrowings including senior notes | 174,262 | 1,251,484 | ||||||||||||||||
Other debt repayments including senior notes | Other debt repayments including senior notes | (18,104) | (10,051) | Other debt repayments including senior notes | (81,345) | (38,370) | ||||||||||||||||
Redemption premiums and repayments for senior notes | Redemption premiums and repayments for senior notes | — | (1,395,668) | |||||||||||||||||||
Debt issuance costs | Debt issuance costs | — | (15,547) | |||||||||||||||||||
Cash received from termination of interest rate swap agreements | Cash received from termination of interest rate swap agreements | — | 23,127 | |||||||||||||||||||
Proceeds from stock option exercises | Proceeds from stock option exercises | 24,561 | 17,881 | Proceeds from stock option exercises | 67,115 | 89,185 | ||||||||||||||||
Stock repurchases | Stock repurchases | (267,727) | — | Stock repurchases | (377,800) | (415,824) | ||||||||||||||||
Dividends paid | Dividends paid | (249,294) | (240,561) | Dividends paid | (747,378) | (719,865) | ||||||||||||||||
Other financing activities | Other financing activities | (45,851) | (5,003) | Other financing activities | (57,906) | (19,456) | ||||||||||||||||
Net cash used for financing activities | Net cash used for financing activities | (400,352) | (237,731) | Net cash used for financing activities | (1,023,052) | (1,240,934) | ||||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | Effect of exchange rates on cash, cash equivalents and restricted cash | (11,369) | (9,355) | Effect of exchange rates on cash, cash equivalents and restricted cash | 1,713 | (13,623) | ||||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | Net decrease in cash, cash equivalents and restricted cash | (427,950) | (924,879) | Net decrease in cash, cash equivalents and restricted cash | (76,911) | (2,092,007) | ||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | Cash, cash equivalents and restricted cash at beginning of period | 931,376 | 3,037,100 | Cash, cash equivalents and restricted cash at beginning of period | 931,376 | 3,037,100 | ||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | Cash, cash equivalents and restricted cash at end of period | $ | 503,426 | $ | 2,112,221 | Cash, cash equivalents and restricted cash at end of period | $ | 854,465 | $ | 945,093 | ||||||||||||
Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid during the period for: | Cash paid during the period for: | Cash paid during the period for: | ||||||||||||||||||||
Interest | Interest | $ | 84,010 | $ | 225,031 | Interest | $ | 343,402 | $ | 456,996 | ||||||||||||
Income taxes, net of refunds | Income taxes, net of refunds | 47,985 | 76,712 | Income taxes, net of refunds | 306,174 | 395,065 |
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 437,670 | $ | 2,067,873 | Cash and cash equivalents | $ | 757,867 | $ | 876,139 | ||||||||||||
Restricted cash (1) | Restricted cash (1) | 65,756 | 44,348 | Restricted cash (1) | 96,598 | 68,954 | ||||||||||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | 503,426 | $ | 2,112,221 | Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | 854,465 | $ | 945,093 |
(1) | Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in each consolidated balance sheet. |
Apr. 1, 2023 | Apr. 2, 2022 | ||||||||||
(In thousands) | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Plant and equipment acquired through financing programs | $ | 111,771 | $ | — | |||||||
Assets obtained in exchange for finance lease obligations | 99,776 | 155,541 |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Apr. 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Product Categories | Principal Product Categories | Principal Product Categories | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canned and dry products | Canned and dry products | $ | 2,577,255 | $ | 691,374 | $ | 236,168 | $ | 2,068 | $ | 3,506,865 | Canned and dry products | $ | 2,649,632 | $ | 743,056 | $ | 244,695 | $ | — | $ | 3,637,383 | ||||||||||||||||||||||||||||||||||||||||||
Fresh and frozen meats | Fresh and frozen meats | 2,465,450 | 453,364 | 463,440 | — | 3,382,254 | Fresh and frozen meats | 2,378,124 | 474,824 | 461,897 | — | 3,314,845 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | Frozen fruits, vegetables, bakery and other | 1,843,464 | 580,032 | 309,197 | 149 | 2,732,842 | Frozen fruits, vegetables, bakery and other | 1,949,160 | 548,719 | 336,495 | — | 2,834,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dairy products | Dairy products | 1,513,084 | 404,943 | 162,065 | — | 2,080,092 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Poultry | Poultry | 1,574,251 | 292,849 | 277,464 | — | 2,144,564 | Poultry | 1,266,096 | 288,185 | 272,727 | — | 1,827,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dairy products | 1,525,483 | 366,847 | 164,648 | — | 2,056,978 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fresh produce | Fresh produce | 1,337,919 | 254,737 | 65,244 | — | 1,657,900 | Fresh produce | 1,288,241 | 255,615 | 66,458 | — | 1,610,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Paper and disposables | Paper and disposables | 1,022,904 | 144,068 | 209,358 | 15,056 | 1,391,386 | Paper and disposables | 988,448 | 131,784 | 205,353 | 14,561 | 1,340,146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Seafood | Seafood | 638,405 | 121,201 | 40,124 | — | 799,730 | Seafood | 587,726 | 111,779 | 51,077 | — | 750,582 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beverage products | Beverage products | 315,619 | 136,475 | 138,169 | 24,657 | 614,920 | Beverage products | 328,221 | 145,013 | 144,703 | 21,957 | 639,894 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (1) | 301,732 | 242,788 | 29,645 | 265,226 | 839,391 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (1) | Other (1) | 308,787 | 240,203 | 26,588 | 265,460 | 841,038 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Sales | Total Sales | $ | 13,602,482 | $ | 3,283,735 | $ | 1,933,457 | $ | 307,156 | $ | 19,126,830 | Total Sales | $ | 13,257,519 | $ | 3,344,121 | $ | 1,972,058 | $ | 301,978 | $ | 18,875,676 |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
13-Week Period Ended Oct. 2, 2021 | 13-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Product Categories | Principal Product Categories | Principal Product Categories | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fresh and frozen meats | Fresh and frozen meats | $ | 2,444,461 | $ | 417,171 | $ | 474,656 | $ | — | $ | 3,336,288 | Fresh and frozen meats | $ | 2,295,514 | $ | 398,378 | $ | 484,082 | $ | 9 | $ | 3,177,983 | ||||||||||||||||||||||||||||||||||||||||||
Canned and dry products | Canned and dry products | 2,076,779 | 581,895 | 137,597 | — | 2,796,271 | Canned and dry products | 2,194,073 | 593,156 | 203,184 | 77 | 2,990,490 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | Frozen fruits, vegetables, bakery and other | 1,501,293 | 518,255 | 273,148 | — | 2,292,696 | Frozen fruits, vegetables, bakery and other | 1,597,129 | 514,418 | 282,246 | — | 2,393,793 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Poultry | Poultry | 1,351,200 | 241,202 | 229,357 | — | 1,821,759 | Poultry | 1,425,320 | 232,456 | 243,927 | — | 1,901,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dairy products | Dairy products | 1,101,423 | 305,112 | 140,224 | — | 1,546,759 | Dairy products | 1,230,092 | 308,260 | 138,414 | — | 1,676,766 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fresh produce | Fresh produce | 986,998 | 218,963 | 66,563 | — | 1,272,524 | Fresh produce | 1,162,694 | 222,765 | 60,738 | — | 1,446,197 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Paper and disposables | Paper and disposables | 911,350 | 119,740 | 188,243 | 15,499 | 1,234,832 | Paper and disposables | 930,526 | 121,184 | 186,801 | 13,034 | 1,251,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Seafood | Seafood | 693,013 | 121,465 | 33,224 | — | 847,702 | Seafood | 630,833 | 100,312 | 42,667 | — | 773,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beverage products | Beverage products | 256,385 | 117,220 | 137,515 | 22,089 | 533,209 | Beverage products | 264,087 | 116,590 | 124,058 | 19,218 | 523,953 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other (1) | Other (1) | 280,061 | 254,224 | 23,506 | 216,715 | 774,506 | Other (1) | 275,895 | 226,570 | 28,720 | 234,712 | 765,897 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Sales | Total Sales | $ | 11,602,963 | $ | 2,895,247 | $ | 1,704,033 | $ | 254,303 | $ | 16,456,546 | Total Sales | $ | 12,006,163 | $ | 2,834,089 | $ | 1,794,837 | $ | 267,050 | $ | 16,902,139 |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
39-Week Period Ended Apr. 1, 2023 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Canned and dry products | $ | 7,729,545 | $ | 2,135,052 | $ | 717,588 | $ | 2,002 | $ | 10,584,187 | ||||||||||||||||||||||
Fresh and frozen meats | 7,234,503 | 1,373,206 | 1,377,707 | — | 9,985,416 | |||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | 5,643,893 | 1,724,851 | 984,070 | 149 | 8,352,963 | |||||||||||||||||||||||||||
Dairy products | 4,536,602 | 1,130,429 | 487,466 | — | 6,154,497 | |||||||||||||||||||||||||||
Poultry | 4,169,417 | 866,378 | 815,461 | — | 5,851,256 | |||||||||||||||||||||||||||
Fresh produce | 4,011,326 | 767,993 | 197,801 | — | 4,977,120 | |||||||||||||||||||||||||||
Paper and disposables | 2,987,583 | 410,358 | 625,402 | 43,102 | 4,066,445 | |||||||||||||||||||||||||||
Seafood | 1,773,891 | 342,270 | 129,010 | — | 2,245,171 | |||||||||||||||||||||||||||
Beverage products | 947,633 | 415,004 | 419,541 | 67,929 | 1,850,107 | |||||||||||||||||||||||||||
Other (1) | 902,662 | 744,726 | 85,005 | 796,904 | 2,529,297 | |||||||||||||||||||||||||||
Total Sales | $ | 39,937,055 | $ | 9,910,267 | $ | 5,839,051 | $ | 910,086 | $ | 56,596,459 |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
39-Week Period Ended Apr. 2, 2022 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | 7,143,738 | $ | 1,211,781 | $ | 1,471,877 | $ | 9 | $ | 9,827,405 | ||||||||||||||||||||||
Canned and dry products | 6,358,629 | 1,735,674 | 496,396 | 107 | 8,590,806 | |||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | 4,606,909 | 1,550,944 | 847,579 | — | 7,005,432 | |||||||||||||||||||||||||||
Poultry | 4,127,709 | 714,412 | 696,633 | — | 5,538,754 | |||||||||||||||||||||||||||
Dairy products | 3,445,668 | 902,752 | 418,373 | — | 4,766,793 | |||||||||||||||||||||||||||
Fresh produce | 3,187,379 | 656,552 | 191,349 | — | 4,035,280 | |||||||||||||||||||||||||||
Paper and disposables | 2,736,429 | 355,559 | 568,054 | 41,325 | 3,701,367 | |||||||||||||||||||||||||||
Seafood | 1,909,559 | 332,114 | 109,871 | — | 2,351,544 | |||||||||||||||||||||||||||
Beverage products | 766,829 | 340,966 | 393,089 | 60,133 | 1,561,017 | |||||||||||||||||||||||||||
Other (1) | 824,432 | 734,854 | 76,972 | 664,232 | 2,300,490 | |||||||||||||||||||||||||||
Total Sales | $ | 35,107,281 | $ | 8,535,608 | $ | 5,270,193 | $ | 765,806 | $ | 49,678,888 |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
Assets Measured at Fair Value as of Oct. 1, 2022 | Assets Measured at Fair Value as of Apr. 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | Cash equivalents | Cash equivalents | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 183,816 | $ | 5,008 | $ | — | $ | 188,824 | Cash and cash equivalents | $ | 457,876 | $ | 10,014 | $ | — | $ | 467,890 | ||||||||||||||||||||||||||||
Other assets (1) | Other assets (1) | 65,756 | — | — | 65,756 | Other assets (1) | 96,598 | — | — | 96,598 | ||||||||||||||||||||||||||||||||||||
Total assets at fair value | Total assets at fair value | $ | 249,572 | $ | 5,008 | $ | — | $ | 254,580 | Total assets at fair value | $ | 554,474 | $ | 10,014 | $ | — | $ | 564,488 |
(1) | Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
Assets Measured at Fair Value as of Jul. 2, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Cash and cash equivalents | $ | 625,281 | $ | 10,007 | $ | — | $ | 635,288 | |||||||||||||||
Other assets (1) | 64,290 | — | — | 64,290 | |||||||||||||||||||
Total assets at fair value | $ | 689,571 | $ | 10,007 | $ | — | $ | 699,578 | |||||||||||||||
(1) | Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
Oct. 1, 2022 | Apr. 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities: | Fixed income securities: | Fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | $ | 96,457 | $ | — | $ | (8,615) | $ | 87,842 | $ | 5,955 | $ | 81,887 | Corporate bonds | $ | 98,637 | $ | 277 | $ | (6,418) | $ | 92,496 | $ | 7,812 | $ | 84,684 | ||||||||||||||||||||||||||||||||||||||||||||
Government bonds | Government bonds | 29,997 | — | (1,885) | 28,112 | — | 28,112 | Government bonds | 29,851 | — | (1,407) | 28,444 | — | 28,444 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total marketable securities | Total marketable securities | $ | 126,454 | $ | — | $ | (10,500) | $ | 115,954 | $ | 5,955 | $ | 109,999 | Total marketable securities | $ | 128,488 | $ | 277 | $ | (7,825) | $ | 120,940 | $ | 7,812 | $ | 113,128 | ||||||||||||||||||||||||||||||||||||||||||||
Jul. 2, 2022 | Jul. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income securities: | Fixed income securities: | Fixed income securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | $ | 96,167 | $ | 8 | $ | (5,995) | $ | 90,180 | $ | 5,983 | $ | 84,197 | Corporate bonds | $ | 96,167 | $ | 8 | $ | (5,995) | $ | 90,180 | $ | 5,983 | $ | 84,197 | ||||||||||||||||||||||||||||||||||||||||||||
Government bonds | Government bonds | 30,070 | — | (302) | 29,768 | — | 29,768 | Government bonds | 30,070 | — | (302) | 29,768 | — | 29,768 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total marketable securities | Total marketable securities | $ | 126,237 | $ | 8 | $ | (6,297) | $ | 119,948 | $ | 5,983 | $ | 113,965 | Total marketable securities | $ | 126,237 | $ | 8 | $ | (6,297) | $ | 119,948 | $ | 5,983 | $ | 113,965 |
(In thousands) | |||||
Due in one year or less | $ | ||||
Due after one year through five years | |||||
Due after five years through ten years | |||||
Total | $ |
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 | Swedish Krona | |||||||||||||
Various | British Pound Sterling | |||||||||||||
June 2023 | Euro | 500 | ||||||||||||
Hedging of fuel risk | ||||||||||||||
Various | Gallons |
Derivative Fair Value | Derivative Fair Value | |||||||||||||||||||||||||||||||||
Balance Sheet location | Oct. 1, 2022 | Jul. 2, 2022 | Balance Sheet location | Apr. 1, 2023 | Jul. 2, 2022 | |||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||
Fair Value Hedges: | Fair Value Hedges: | Fair Value Hedges: | ||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | Other current liabilities | $ | 7,136 | $ | 2,820 | Interest rate swaps | Other current liabilities | $ | 3,443 | $ | 2,820 | ||||||||||||||||||||||
Cash Flow Hedges: | Cash Flow Hedges: | Cash Flow Hedges: | ||||||||||||||||||||||||||||||||
Fuel swaps | Fuel swaps | Other current assets | $ | 16,188 | $ | 47,170 | Fuel swaps | Other current assets | $ | 1,463 | $ | 47,170 | ||||||||||||||||||||||
Foreign currency forwards | Foreign currency forwards | Other current assets | 945 | 633 | Foreign currency forwards | Other current assets | 326 | 633 | ||||||||||||||||||||||||||
Fuel swaps | Fuel swaps | Other assets | 3 | — | Fuel swaps | Other assets | 32 | — | ||||||||||||||||||||||||||
Fuel swaps | Fuel swaps | Other current liabilities | 1,647 | — | Fuel swaps | Other current liabilities | 10,638 | — | ||||||||||||||||||||||||||
Foreign currency forwards | Foreign currency forwards | Other current liabilities | 81 | — | ||||||||||||||||||||||||||||||
Fuel swaps | Fuel swaps | Other long-term liabilities | 3,844 | 209 | Fuel swaps | Other long-term liabilities | 5,628 | 209 |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (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 | 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 | $ | 124,150 | $ | 128,214 | 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 | $ | 134,931 | $ | 124,018 | $ | 391,123 | $ | 495,131 | ||||||||||||||||||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships: | Gain or (loss) on fair value hedging relationships: | Gain or (loss) on fair value hedging relationships: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps: | Interest rate swaps: | Interest rate swaps: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged items | Hedged items | $ | 2,376 | $ | (2,433) | Hedged items | $ | (4,888) | $ | 1,656 | $ | (5,197) | $ | 29,011 | ||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | Derivatives designated as hedging instruments | (4,759) | (8,390) | Derivatives designated as hedging instruments | (394) | (4,628) | (5,008) | (52,491) |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | $ | (1,939) | $ | (6,526) | Interest expense | $ | (1,940) | $ | (1,938) | $ | (5,819) | $ | (13,830) | ||||||||||||||||||||||||||||||||||||||
Decrease in fair value of debt | Decrease in fair value of debt | (4,315) | (4,093) | Decrease in fair value of debt | 2,948 | (3,594) | (622) | (42,841) | ||||||||||||||||||||||||||||||||||||||||||||
Hedged items | Hedged items | $ | 2,376 | $ | (2,433) | Hedged items | $ | (4,888) | $ | 1,656 | $ | (5,197) | $ | 29,011 |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Apr. 1, 2023 | |||||||||||||||||||||||||||||||||
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 | 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) | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||
Fuel swaps | Fuel swaps | $ | (36,295) | Operating expense | $ | 12,985 | Fuel swaps | $ | (27,031) | Operating expense | $ | (969) | ||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | 286 | Cost of sales / Other income | — | Foreign currency contracts | (878) | Cost of sales / Other income | — | ||||||||||||||||||||||||||
Total | Total | $ | (36,009) | $ | 12,985 | Total | $ | (27,909) | $ | (969) | ||||||||||||||||||||||||
Derivatives in net investment hedging relationships: | Derivatives in net investment hedging relationships: | Derivatives in net investment hedging relationships: | ||||||||||||||||||||||||||||||||
Foreign denominated debt | Foreign denominated debt | $ | 31,346 | N/A | $ | — | Foreign denominated debt | $ | (7,201) | N/A | $ | — | ||||||||||||||||||||||
Total | $ | 31,346 | $ | — | ||||||||||||||||||||||||||||||
13-Week Period Ended Oct. 2, 2021 | 13-Week Period Ended Apr. 2, 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 | 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) | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: | Derivatives in cash flow hedging relationships: | ||||||||||||||||||||||||||||||||
Fuel swaps | Fuel swaps | $ | (485) | Operating expense | $ | 7,972 | Fuel swaps | $ | 24,097 | Operating expense | $ | 9,302 | ||||||||||||||||||||||
Foreign currency contracts | Foreign currency contracts | (78) | Cost of sales / Other income | — | Foreign currency contracts | (58) | Cost of sales / Other income | — | ||||||||||||||||||||||||||
Total | Total | $ | (563) | $ | 7,972 | Total | $ | 24,039 | $ | 9,302 | ||||||||||||||||||||||||
Derivatives in net investment hedging relationships: | Derivatives in net investment hedging relationships: | Derivatives in net investment hedging relationships: | ||||||||||||||||||||||||||||||||
Foreign denominated debt | Foreign denominated debt | $ | 13,553 | N/A | $ | — | Foreign denominated debt | $ | 16,055 | N/A | $ | — | ||||||||||||||||||||||
Total | $ | 13,553 | $ | — |
39-Week Period Ended Apr. 1, 2023 | |||||||||||||||||
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 | $ | (62,186) | Operating expense | $ | 24,393 | ||||||||||||
Foreign currency contracts | (543) | Cost of sales / Other income | — | ||||||||||||||
Total | $ | (62,729) | $ | 24,393 | |||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | $ | (20,854) | N/A | $ | — | ||||||||||||
39-Week Period Ended Apr. 2, 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 | $ | 16,024 | Operating expense | $ | 26,882 | ||||||||||||
Foreign currency contracts | (492) | Cost of sales / Other income | — | ||||||||||||||
Total | $ | 15,532 | $ | 26,882 | |||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | $ | 40,757 | N/A | $ | — | ||||||||||||
Oct. 1, 2022 | Apr. 1, 2023 | |||||||||||||||||||||
Carrying Amount of Hedged Assets (Liabilities) | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | Carrying Amount of Hedged Assets (Liabilities) | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||
Balance sheet location: | Balance sheet location: | Balance sheet location: | ||||||||||||||||||||
Current maturities of long-term debt | Current maturities of long-term debt | $ | (568,766) | $ | 7,136 | Current maturities of long-term debt | $ | (569,098) | $ | 3,443 |
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 | |||||||
U.S. Retirement Plan | |||||
(In thousands) | |||||
Change in benefit obligation: | |||||
Benefit obligation at July 2, 2022 | $ | 3,538,232 | |||
Service cost | 6,247 | ||||
Interest cost | 116,508 | ||||
Actuarial gain, net | (440,311) | ||||
Benefit payments | (96,768) | ||||
Settlements | (694,998) | ||||
Benefit obligation at April 1, 2023 | 2,428,910 | ||||
Change in plan assets: | |||||
Fair value of plan assets at July 2, 2022 | 3,633,167 | ||||
Actual return on plan assets | (420,775) | ||||
Benefit payments | (96,768) | ||||
Settlements | (694,998) | ||||
Fair value of plan assets at April 1, 2023 | 2,420,626 | ||||
Funded status at April 1, 2023 | $ | (8,284) |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Service cost | $ | 1,890 | $ | 3,382 | $ | 6,247 | $ | 10,146 | |||||||||||||||
Interest cost | 35,904 | 34,792 | 116,508 | 104,376 | |||||||||||||||||||
Expected return on plan assets | (35,425) | (51,580) | (112,402) | (154,740) | |||||||||||||||||||
Amortization of prior service cost | 98 | 99 | 295 | 297 | |||||||||||||||||||
Amortization of actuarial loss | 7,018 | 7,304 | 23,627 | 21,912 | |||||||||||||||||||
Settlement loss recognized | — | — | 315,354 | — | |||||||||||||||||||
Net pension (benefits) costs | $ | 9,485 | $ | (6,003) | $ | 349,629 | $ | (18,009) |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||
(In thousands, except for share and per share data) | (In thousands, except for share and per share data) | (In thousands, except for share and per share data) | ||||||||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | Numerator: | ||||||||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | $ | 465,568 | $ | 378,013 | Net earnings | $ | 429,604 | $ | 303,325 | $ | 1,036,388 | $ | 848,779 | ||||||||||||||||||||||||||||||||
Denominator: | Denominator: | Denominator: | ||||||||||||||||||||||||||||||||||||||||||||
Weighted-average basic shares outstanding | Weighted-average basic shares outstanding | 507,578,576 | 512,516,067 | Weighted-average basic shares outstanding | 507,716,975 | 508,368,159 | 507,635,083 | 510,642,876 | ||||||||||||||||||||||||||||||||||||||
Dilutive effect of share-based awards | Dilutive effect of share-based awards | 2,804,573 | 3,266,861 | Dilutive effect of share-based awards | 2,125,425 | 3,870,364 | 2,488,699 | 3,555,904 | ||||||||||||||||||||||||||||||||||||||
Weighted-average diluted shares outstanding | Weighted-average diluted shares outstanding | 510,383,149 | 515,782,928 | Weighted-average diluted shares outstanding | 509,842,400 | 512,238,523 | 510,123,782 | 514,198,780 | ||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.92 | $ | 0.74 | Basic earnings per share | $ | 0.85 | $ | 0.60 | $ | 2.04 | $ | 1.66 | ||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.91 | $ | 0.73 | Diluted earnings per share | $ | 0.84 | $ | 0.59 | $ | 2.03 | $ | 1.65 |
13-Week Period Ended Oct. 1, 2022 | |||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
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 | 9,186 | 2,295 | 6,891 | |||||||||||||||||||
Total reclassification adjustments | 9,285 | 2,320 | 6,965 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | (232,182) | — | (232,182) | |||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | (4,212) | (884) | (3,328) | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedge | Operating expenses (2) | (36,009) | (9,619) | (26,390) | |||||||||||||||||||
Change in net investment hedge | N/A | 31,346 | 7,837 | 23,509 | |||||||||||||||||||
Total other comprehensive income before reclassification adjustments | (4,663) | (1,782) | (2,881) | ||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | 2,874 | 719 | 2,155 | |||||||||||||||||||
Total other comprehensive income (loss) | $ | (228,898) | $ | 373 | $ | (229,271) |
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) | |||||||||||||||||||||||
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 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Other comprehensive income before reclassification adjustments: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | 62,771 | — | 62,771 | |||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | 1,441 | 302 | 1,139 | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedge | Operating expenses (2) | (27,909) | (5,454) | (22,455) | |||||||||||||||||||
Change in net investment hedge | N/A | (7,201) | (1,800) | (5,401) | |||||||||||||||||||
Total other comprehensive income (loss) before reclassification adjustments | (35,110) | (7,254) | (27,856) | ||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | 2,893 | 723 | 2,170 | |||||||||||||||||||
Total other comprehensive income (loss) | $ | 39,566 | $ | (4,337) | $ | 43,903 |
(1) | 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 | ||||
(2) | Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. |
13-Week Period Ended Oct. 2, 2021 | 13-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | |||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement benefit plans: | Pension and other postretirement benefit plans: | Pension and other postretirement benefit plans: | ||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments: | Reclassification adjustments: | Reclassification adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost | Amortization of prior service cost | Other expense, net | $ | 99 | $ | 25 | $ | 74 | Amortization of prior service cost | Other expense, net | $ | 99 | $ | 25 | $ | 74 | ||||||||||||||||||||||||||||||
Amortization of actuarial loss, net | Amortization of actuarial loss, net | Other expense, net | 8,486 | 2,119 | 6,367 | Amortization of actuarial loss, net | Other expense, net | 8,668 | 2,154 | 6,514 | ||||||||||||||||||||||||||||||||||||
Total reclassification adjustments | Total reclassification adjustments | 8,585 | 2,144 | 6,441 | Total reclassification adjustments | 8,767 | 2,179 | 6,588 | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation: | Foreign currency translation: | Foreign currency translation: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | N/A | (87,194) | — | (87,194) | Foreign currency translation adjustment | N/A | (96,582) | — | (96,582) | ||||||||||||||||||||||||||||||||||||
Marketable securities: | Marketable securities: | Marketable securities: | ||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities (1) | Change in marketable securities (1) | N/A | (393) | (82) | (311) | Change in marketable securities (1) | N/A | (6,738) | (1,415) | (5,323) | ||||||||||||||||||||||||||||||||||||
Hedging instruments: | Hedging instruments: | Hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | Other comprehensive income (loss) before reclassification adjustments: | Other comprehensive income (loss) before reclassification adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges | Change in cash flow hedges | Operating expenses (2) | (563) | (134) | (429) | Change in cash flow hedges | Operating expenses (2) | 24,039 | 5,664 | 18,375 | ||||||||||||||||||||||||||||||||||||
Change in net investment hedges | Change in net investment hedges | N/A | 13,553 | 3,388 | 10,165 | Change in net investment hedges | N/A | 16,055 | 4,014 | 12,041 | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income before reclassification adjustments | Total other comprehensive income before reclassification adjustments | 12,990 | 3,254 | 9,736 | Total other comprehensive income before reclassification adjustments | 40,094 | 9,678 | 30,416 | ||||||||||||||||||||||||||||||||||||||
Reclassification adjustments: | Reclassification adjustments: | Reclassification adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges | Amortization of cash flow hedges | Interest expense | 2,874 | 719 | 2,155 | Amortization of cash flow hedges | Interest expense | 2,874 | 719 | 2,155 | ||||||||||||||||||||||||||||||||||||
Total other comprehensive income | $ | (63,138) | $ | 6,035 | $ | (69,173) | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | Total other comprehensive income (loss) | $ | (51,585) | $ | 11,161 | $ | (62,746) |
(1) | 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 | ||||
(2) | Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. |
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) | |||||||||||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||||||||||
Other comprehensive income before reclassification adjustments: | |||||||||||||||||||||||
Net actuarial loss, arising in the current year | Other expense, net | $ | (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 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | 72,403 | — | 72,403 | |||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | (1,260) | (265) | (995) | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedges | Operating expenses (2) | (62,729) | (14,087) | (48,642) | |||||||||||||||||||
Change in net investment hedges | N/A | (20,854) | (5,213) | (15,641) | |||||||||||||||||||
Total other comprehensive income (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 | |||||||||||||||||||
Total other comprehensive income | $ | 246,279 | $ | 45,110 | $ | 201,169 | |||||||||||||||||
(1) | 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. | ||||
(2) | Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of prior service cost | Other expense, net | $ | 297 | $ | 75 | $ | 222 | ||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | 24,555 | 6,186 | 18,369 | |||||||||||||||||||
Total reclassification adjustments | 24,852 | 6,261 | 18,591 | ||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | (210,646) | — | (210,646) | |||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | (8,939) | (1,876) | (7,063) | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedges | Operating expenses (2) | 15,532 | 3,687 | 11,845 | |||||||||||||||||||
Change in net investment hedges | N/A | 40,757 | 10,189 | 30,568 | |||||||||||||||||||
Total other comprehensive income before reclassification adjustments | 56,289 | 13,876 | 42,413 | ||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | 8,622 | 2,157 | 6,465 | |||||||||||||||||||
Total other comprehensive income (loss) | $ | (129,822) | $ | 20,418 | $ | (150,240) |
(1) | 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 2022. | ||||
(2) | Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. |
13-Week Period Ended Oct. 1, 2022 | 39-Week Period Ended Apr. 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities, net of tax | Total | Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities, net of tax | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of Jul. 2, 2022 | Balance as of Jul. 2, 2022 | $ | (1,011,335) | $ | (501,517) | $ | 35,770 | $ | (4,972) | $ | (1,482,054) | Balance as of Jul. 2, 2022 | $ | (1,011,335) | $ | (501,517) | $ | 35,770 | $ | (4,972) | $ | (1,482,054) | ||||||||||||||||||||||||||||||||||||
Net actuarial loss arising in the current year | Net actuarial loss arising in the current year | (67,388) | — | — | — | (67,388) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | 236,591 | — | — | — | 236,591 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity adjustment from foreign currency translation | Equity adjustment from foreign currency translation | — | (232,182) | — | — | (232,182) | Equity adjustment from foreign currency translation | — | 72,403 | — | — | 72,403 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges | Amortization of cash flow hedges | — | — | 2,155 | — | 2,155 | Amortization of cash flow hedges | — | — | 6,495 | — | 6,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges | Change in net investment hedges | — | — | 23,509 | — | 23,509 | Change in net investment hedges | — | — | (15,641) | — | (15,641) | ||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedge | Change in cash flow hedge | — | — | (26,390) | — | (26,390) | Change in cash flow hedge | — | — | (48,642) | — | (48,642) | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrecognized prior service cost | Amortization of unrecognized prior service cost | 74 | — | — | — | 74 | Amortization of unrecognized prior service cost | 222 | — | — | — | 222 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | Amortization of unrecognized net actuarial losses | 6,891 | — | — | — | 6,891 | Amortization of unrecognized net actuarial losses | 18,124 | — | — | — | 18,124 | ||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities | Change in marketable securities | — | — | — | (3,328) | (3,328) | Change in marketable securities | — | — | — | (995) | (995) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of Oct. 1, 2022 | $ | (1,004,370) | $ | (733,699) | $ | 35,044 | $ | (8,300) | $ | (1,711,325) | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of Apr. 1, 2023 | Balance as of Apr. 1, 2023 | $ | (823,786) | $ | (429,114) | $ | (22,018) | $ | (5,967) | $ | (1,280,885) |
13-Week Period Ended Oct. 2, 2021 | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of Jul. 3, 2021 | $ | (1,061,991) | $ | (40,092) | $ | (51,096) | $ | 4,415 | $ | (1,148,764) | |||||||||||||||||||
Equity adjustment from foreign currency translation | — | (87,194) | — | — | (87,194) | ||||||||||||||||||||||||
Amortization of cash flow hedges | — | — | 2,155 | — | 2,155 | ||||||||||||||||||||||||
Change in net investment hedges | — | — | 10,165 | — | 10,165 | ||||||||||||||||||||||||
Change in cash flow hedge | — | — | (429) | — | (429) | ||||||||||||||||||||||||
Amortization of unrecognized prior service cost | 74 | — | — | — | 74 | ||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | 6,367 | — | — | — | 6,367 | ||||||||||||||||||||||||
Change in marketable securities | — | — | — | (311) | (311) | ||||||||||||||||||||||||
Balance as of Oct. 2, 2021 | $ | (1,055,550) | $ | (127,286) | $ | (39,205) | $ | 4,104 | $ | (1,217,937) |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of Jul. 3, 2021 | $ | (1,061,991) | $ | (40,092) | $ | (51,096) | $ | 4,415 | $ | (1,148,764) | |||||||||||||||||||
Equity adjustment from foreign currency translation | — | (210,646) | — | — | (210,646) | ||||||||||||||||||||||||
Amortization of cash flow hedges | — | — | 6,465 | — | 6,465 | ||||||||||||||||||||||||
Change in net investment hedges | — | — | 30,568 | — | 30,568 | ||||||||||||||||||||||||
Change in cash flow hedge | — | — | 11,845 | — | 11,845 | ||||||||||||||||||||||||
Amortization of unrecognized prior service cost | 222 | — | — | — | 222 | ||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | 18,369 | — | — | — | 18,369 | ||||||||||||||||||||||||
Change in marketable securities | — | — | — | (7,063) | (7,063) | ||||||||||||||||||||||||
Balance as of Apr. 2, 2022 | $ | (1,043,400) | $ | (250,738) | $ | (2,218) | $ | (2,648) | $ | (1,299,004) |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||
Sales: | Sales: | (In thousands) | Sales: | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | U.S. Foodservice Operations | $ | 13,602,482 | $ | 11,602,963 | U.S. Foodservice Operations | $ | 13,257,519 | $ | 12,006,163 | $ | 39,937,055 | $ | 35,107,281 | ||||||||||||||||||||||||||||||||
International Foodservice Operations | International Foodservice Operations | 3,283,735 | 2,895,247 | International Foodservice Operations | 3,344,121 | 2,834,089 | 9,910,267 | 8,535,608 | ||||||||||||||||||||||||||||||||||||||
SYGMA | SYGMA | 1,933,457 | 1,704,033 | SYGMA | 1,972,058 | 1,794,837 | 5,839,051 | 5,270,193 | ||||||||||||||||||||||||||||||||||||||
Other | Other | 307,156 | 254,303 | Other | 301,978 | 267,050 | 910,086 | 765,806 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 19,126,830 | $ | 16,456,546 | Total | $ | 18,875,676 | $ | 16,902,139 | $ | 56,596,459 | $ | 49,678,888 | ||||||||||||||||||||||||||||||||
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss): | Operating income (loss): | (In thousands) | Operating income (loss): | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | U.S. Foodservice Operations | $ | 903,828 | $ | 797,523 | U.S. Foodservice Operations | $ | 855,766 | $ | 746,467 | $ | 2,540,555 | $ | 2,220,812 | ||||||||||||||||||||||||||||||||
International Foodservice Operations | International Foodservice Operations | 87,208 | 36,676 | International Foodservice Operations | 48,352 | 7,760 | 192,945 | 55,181 | ||||||||||||||||||||||||||||||||||||||
SYGMA | SYGMA | 5,471 | (2,447) | SYGMA | 25,439 | 4,362 | 37,715 | (4,814) | ||||||||||||||||||||||||||||||||||||||
Other | Other | 11,538 | 6,456 | Other | 11,836 | (3,972) | 33,255 | 2,667 | ||||||||||||||||||||||||||||||||||||||
Total segments | Total segments | 1,008,045 | 838,208 | Total segments | 941,393 | 754,617 | 2,804,470 | 2,273,846 | ||||||||||||||||||||||||||||||||||||||
Global Support Center | Global Support Center | (273,712) | (206,526) | Global Support Center | (247,216) | (258,888) | (735,318) | (701,526) | ||||||||||||||||||||||||||||||||||||||
Total operating income | Total operating income | 734,333 | 631,682 | Total operating income | 694,177 | 495,729 | 2,069,152 | 1,572,320 | ||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 124,150 | 128,214 | Interest expense | 134,931 | 124,018 | 391,123 | 495,131 | ||||||||||||||||||||||||||||||||||||||
Other expense (income), net | Other expense (income), net | 15,281 | (3,252) | Other expense (income), net | 5,209 | (13,777) | 350,614 | (27,705) | ||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | Earnings before income taxes | $ | 594,902 | $ | 506,720 | Earnings before income taxes | $ | 554,037 | $ | 385,488 | $ | 1,327,415 | $ | 1,104,894 |
13-Week Period Ended | 13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||||||||||||||||||||||||
Oct. 1, 2022 | Oct. 2, 2021 | Apr. 1, 2023 | Apr. 2, 2022 | Apr. 1, 2023 | Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||
Sales | Sales | 100.0 | % | 100.0 | % | Sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||||||||||
Cost of sales | Cost of sales | 81.8 | 81.9 | Cost of sales | 81.8 | 82.2 | 81.9 | 82.1 | ||||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 18.2 | 18.1 | Gross profit | 18.2 | 17.8 | 18.1 | 17.9 | ||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 14.4 | 14.2 | Operating expenses | 14.5 | 14.9 | 14.4 | 14.7 | ||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 3.8 | 3.8 | Operating income | 3.7 | 2.9 | 3.7 | 3.2 | ||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 0.6 | 0.8 | Interest expense | 0.8 | 0.7 | 0.7 | 1.0 | ||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | 0.1 | — | ||||||||||||||||||||||||||||||||||||||||||||
Other expense (income), net | Other expense (income), net | — | (0.1) | 0.7 | — | |||||||||||||||||||||||||||||||||||||||||
Earnings before income taxes | Earnings before income taxes | 3.1 | 3.1 | Earnings before income taxes | 2.9 | 2.3 | 2.3 | 2.2 | ||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes | 0.7 | 0.8 | Income taxes | 0.6 | 0.5 | 0.5 | 0.5 | ||||||||||||||||||||||||||||||||||||||
Net earnings | Net earnings | 2.4 | % | 2.3 | % | Net earnings | 2.3 | % | 1.8 | % | 1.8 | % | 1.7 | % |
13-Week Period Ended | 39-Week Period Ended | ||||||||||
Apr. 1, 2023 | Apr. 1, 2023 | ||||||||||
Sales | 11.7 | % | 13.9 | % | |||||||
Cost of sales | 11.2 | 13.5 | |||||||||
Gross profit | 13.9 | 15.7 | |||||||||
Operating expenses | 8.7 | 12.3 | |||||||||
Operating income | 40.0 | 31.6 | |||||||||
Interest expense | 8.8 | (21.0) | |||||||||
Other expense (income), net (1) (2) | (137.8) | (1,365.5) | |||||||||
Earnings before income taxes | 43.7 | 20.1 | |||||||||
Income taxes | 51.4 | 13.6 | |||||||||
Net earnings | 41.6 | % | 22.1 | % | |||||||
Basic earnings per share | 41.7 | % | 22.9 | % | |||||||
Diluted earnings per share | 42.4 | 23.0 | |||||||||
Average shares outstanding | (0.1) | (0.6) | |||||||||
Diluted shares outstanding | (0.5) | (0.8) |
(1) | Other expense (income) | ||||
(2) | Other expense (income), net was expense of $350.6 million and income of $27.7 million in the first 39 weeks of fiscal 2023 and fiscal 2022, respectively. |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Apr. 1, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 13,602,482 | $ | 3,283,735 | $ | 1,933,457 | $ | 307,156 | $ | — | $ | 19,126,830 | Sales | $ | 13,257,519 | $ | 3,344,121 | $ | 1,972,058 | $ | 301,978 | $ | — | $ | 18,875,676 | ||||||||||||||||||||||||||||||||||||||||||||
Sales increase | Sales increase | 17.2 | % | 13.4 | % | 13.5 | % | 20.8 | % | 16.2 | % | Sales increase | 10.4 | % | 18.0 | % | 9.9 | % | 13.1 | % | 11.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of total | Percentage of total | 71.1 | % | 17.2 | % | 10.1 | % | 1.6 | % | 100.0 | % | Percentage of total | 70.2 | % | 17.7 | % | 10.4 | % | 1.7 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | Operating income (loss) | $ | 903,828 | $ | 87,208 | $ | 5,471 | $ | 11,538 | $ | (273,712) | $ | 734,333 | Operating income (loss) | $ | 855,766 | $ | 48,352 | $ | 25,439 | $ | 11,836 | $ | (247,216) | $ | 694,177 | ||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) increase | 13.3 | % | 137.8 | % | NM | 78.7 | % | 32.5 | % | 16.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) increase (decrease) | Operating income (loss) increase (decrease) | 14.6 | % | NM | NM | NM | (4.5) | % | 40.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of total segments | Percentage of total segments | 89.7 | % | 8.7 | % | 0.5 | % | 1.1 | % | 100.0 | % | Percentage of total segments | 90.9 | % | 5.1 | % | 2.7 | % | 1.3 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income as a percentage of sales | Operating income as a percentage of sales | 6.6 | % | 2.7 | % | 0.3 | % | 3.8 | % | 3.8 | % | Operating income as a percentage of sales | 6.5 | % | 1.4 | % | 1.3 | % | 3.9 | % | 3.7 | % |
13-Week Period Ended Oct. 2, 2021 | 13-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 11,602,963 | $ | 2,895,247 | $ | 1,704,033 | $ | 254,303 | $ | — | $ | 16,456,546 | Sales | $ | 12,006,163 | $ | 2,834,089 | $ | 1,794,837 | $ | 267,050 | $ | — | $ | 16,902,139 | ||||||||||||||||||||||||||||||||||||||||||||
Percentage of total | Percentage of total | 70.5 | % | 17.6 | % | 10.4 | % | 1.5 | % | 100.0 | % | Percentage of total | 71.0 | % | 16.8 | % | 10.6 | % | 1.6 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | Operating income (loss) | $ | 797,523 | $ | 36,676 | $ | (2,447) | $ | 6,456 | $ | (206,526) | $ | 631,682 | Operating income (loss) | $ | 746,467 | $ | 7,760 | $ | 4,362 | $ | (3,972) | $ | (258,888) | $ | 495,729 | ||||||||||||||||||||||||||||||||||||||||||||
Percentage of total segments | Percentage of total segments | 95.1 | % | 4.4 | % | (0.3) | % | 0.8 | % | 100.0 | % | Percentage of total segments | 98.9 | % | 1.0 | % | 0.6 | % | (0.5) | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) as a percentage of sales | Operating income (loss) as a percentage of sales | 6.9 | % | 1.3 | % | (0.1) | % | 2.5 | % | 3.8 | % | Operating income (loss) as a percentage of sales | 6.2 | % | 0.3 | % | 0.2 | % | (1.5) | % | 2.9 | % |
39-Week Period Ended Apr. 1, 2023 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 39,937,055 | $ | 9,910,267 | $ | 5,839,051 | $ | 910,086 | $ | — | $ | 56,596,459 | |||||||||||||||||||||||
Sales increase | 13.8 | % | 16.1 | % | 10.8 | % | 18.8 | % | 13.9 | % | |||||||||||||||||||||||||
Percentage of total | 70.6 | % | 17.5 | % | 10.3 | % | 1.6 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 2,540,555 | $ | 192,945 | $ | 37,715 | $ | 33,255 | $ | (735,318) | $ | 2,069,152 | |||||||||||||||||||||||
Operating income (loss) increase | 14.4 | % | 249.7 | % | NM | NM | 4.8 | % | 31.6 | % | |||||||||||||||||||||||||
Percentage of total segments | 90.6 | % | 6.9 | % | 1.3 | % | 1.2 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 6.4 | % | 1.9 | % | 0.6 | % | 3.7 | % | 3.7 | % |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 35,107,281 | $ | 8,535,608 | $ | 5,270,193 | $ | 765,806 | $ | — | $ | 49,678,888 | |||||||||||||||||||||||
Percentage of total | 70.7 | % | 17.2 | % | 10.6 | % | 1.5 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 2,220,812 | $ | 55,181 | $ | (4,814) | $ | 2,667 | $ | (701,526) | $ | 1,572,320 | |||||||||||||||||||||||
Percentage of total segments | 97.7 | % | 2.4 | % | (0.2) | % | 0.1 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) as a percentage of sales | 6.3 | % | 0.6 | % | (0.1) | % | 0.3 | % | 3.2 | % |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 13,602,482 | $ | 11,602,963 | $ | 1,999,519 | 17.2 | % | |||||||||||||||
Gross profit | 2,612,343 | 2,185,154 | 427,189 | 19.5 | |||||||||||||||||||
Operating expenses | 1,708,515 | 1,387,631 | 320,884 | 23.1 | |||||||||||||||||||
Operating income | $ | 903,828 | $ | 797,523 | $ | 106,305 | 13.3 | % | |||||||||||||||
Gross profit | $ | 2,612,343 | $ | 2,185,154 | $ | 427,189 | 19.5 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 1,698,570 | 1,389,394 | 309,176 | 22.3 | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 913,773 | $ | 795,760 | $ | 118,013 | 14.8 | % | |||||||||||||||
13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 13,257,519 | $ | 12,006,163 | $ | 1,251,356 | 10.4 | % | |||||||||||||||
Gross profit | 2,545,859 | 2,270,045 | 275,814 | 12.2 | |||||||||||||||||||
Operating expenses | 1,690,093 | 1,523,578 | 166,515 | 10.9 | |||||||||||||||||||
Operating income | $ | 855,766 | $ | 746,467 | $ | 109,299 | 14.6 | % | |||||||||||||||
Gross profit | $ | 2,545,859 | $ | 2,270,045 | $ | 275,814 | 12.2 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 1,678,390 | 1,520,676 | 157,714 | 10.4 | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 867,469 | $ | 749,369 | $ | 118,100 | 15.8 | % | |||||||||||||||
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 39,937,055 | $ | 35,107,281 | $ | 4,829,774 | 13.8 | % | |||||||||||||||
Gross profit | 7,651,291 | 6,594,477 | 1,056,814 | 16.0 | |||||||||||||||||||
Operating expenses | 5,110,736 | 4,373,665 | 737,071 | 16.9 | |||||||||||||||||||
Operating income | $ | 2,540,555 | $ | 2,220,812 | $ | 319,743 | 14.4 | % | |||||||||||||||
Gross profit | $ | 7,651,291 | $ | 6,594,477 | $ | 1,056,814 | 16.0 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 5,079,140 | 4,364,629 | 714,511 | 16.4 | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 2,572,151 | $ | 2,229,848 | $ | 342,303 | 15.4 | % |
Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
13-Week Period | 13-Week Period | 39-Week Period | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Cause of change | Cause of change | Percentage | Dollars | Cause of change | Percentage | Dollars | Percentage | Dollars | ||||||||||||||||||||||||||||||||||||||
Case volume (1) | Case volume (1) | 6.2 | % | $ | 714.1 | Case volume (1) | 5.9 | % | $ | 709.6 | 5.2 | % | $ | 1,833.7 | ||||||||||||||||||||||||||||||||
Inflation | Inflation | 9.8 | 1,137.1 | Inflation | 4.2 | 510.0 | 7.6 | 2,664.2 | ||||||||||||||||||||||||||||||||||||||
Other (2) | Other (2) | 1.2 | 148.3 | Other (2) | 0.3 | 31.8 | 1.0 | 331.9 | ||||||||||||||||||||||||||||||||||||||
Total change in sales | Total change in sales | 17.2 | % | $ | 1,999.5 | Total change in sales | 10.4 | % | $ | 1,251.4 | 13.8 | % | $ | 4,829.8 |
(1) | Case volumes increased | ||||
(2) | Case volume reflects our broadline and specialty businesses, with the exception of our specialty meats business, which measures its volume in pounds. Any impact in volumes from these specialty meats operations is included within “Other.” |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | % Change | 13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 3,283,735 | $ | 2,895,247 | $ | 388,488 | 13.4 | % | Sales | $ | 3,344,121 | $ | 2,834,089 | $ | 510,032 | 18.0 | % | ||||||||||||||||||||||||||||
Gross profit | Gross profit | 649,265 | 589,134 | 60,131 | 10.2 | Gross profit | 642,778 | 570,241 | 72,537 | 12.7 | ||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 562,057 | 552,458 | 9,599 | 1.7 | Operating expenses | 594,426 | 562,481 | 31,945 | 5.7 | ||||||||||||||||||||||||||||||||||||
Operating income | Operating income | $ | 87,208 | $ | 36,676 | $ | 50,532 | 137.8 | % | Operating income | $ | 48,352 | $ | 7,760 | $ | 40,592 | 523.1 | % | ||||||||||||||||||||||||||||
Gross profit | Gross profit | $ | 649,265 | $ | 589,134 | $ | 60,131 | 10.2 | % | Gross profit | $ | 642,778 | $ | 570,241 | $ | 72,537 | 12.7 | % | ||||||||||||||||||||||||||||
Adjusted operating expenses (Non-GAAP) | Adjusted operating expenses (Non-GAAP) | 542,136 | 525,017 | 17,119 | 3.3 | Adjusted operating expenses (Non-GAAP) | 575,728 | 535,617 | 40,111 | 7.5 | ||||||||||||||||||||||||||||||||||||
Adjusted operating income (Non-GAAP) | Adjusted operating income (Non-GAAP) | $ | 107,129 | $ | 64,117 | $ | 43,012 | 67.1 | % | Adjusted operating income (Non-GAAP) | $ | 67,050 | $ | 34,624 | $ | 32,426 | 93.7 | % | ||||||||||||||||||||||||||||
Sales on a constant currency basis (Non-GAAP) | Sales on a constant currency basis (Non-GAAP) | $ | 3,599,186 | $ | 2,895,247 | $ | 703,939 | 24.3 | % | Sales on a constant currency basis (Non-GAAP) | $ | 3,550,782 | $ | 2,834,089 | $ | 716,693 | 25.3 | % | ||||||||||||||||||||||||||||
Gross profit on a constant currency basis (Non-GAAP) | Gross profit on a constant currency basis (Non-GAAP) | 721,025 | 589,134 | 131,891 | 22.4 | Gross profit on a constant currency basis (Non-GAAP) | 683,023 | 570,241 | 112,782 | 19.8 | ||||||||||||||||||||||||||||||||||||
Adjusted operating expenses on a constant currency basis (Non-GAAP) | Adjusted operating expenses on a constant currency basis (Non-GAAP) | 606,843 | 525,017 | 81,826 | 15.6 | Adjusted operating expenses on a constant currency basis (Non-GAAP) | 612,798 | 535,617 | 77,181 | 14.4 | ||||||||||||||||||||||||||||||||||||
Adjusted operating income (Non-GAAP) | Adjusted operating income (Non-GAAP) | $ | 114,182 | $ | 64,117 | $ | 50,065 | 78.1 | % | Adjusted operating income (Non-GAAP) | $ | 70,225 | $ | 34,624 | $ | 35,601 | 102.8 | % | ||||||||||||||||||||||||||||
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | $ | 9,910,267 | $ | 8,535,608 | $ | 1,374,659 | 16.1 | % | |||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | 1,916,503 | 1,725,306 | 191,197 | 11.1 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 1,723,558 | 1,670,125 | 53,433 | 3.2 | |||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | $ | 192,945 | $ | 55,181 | $ | 137,764 | 249.7 | % | |||||||||||||||||||||||||||||||||||||
Gross profit | Gross profit | $ | 1,916,503 | $ | 1,725,306 | $ | 191,197 | 11.1 | % | |||||||||||||||||||||||||||||||||||||
Adjusted operating expenses (Non-GAAP) | Adjusted operating expenses (Non-GAAP) | 1,663,682 | 1,586,914 | 76,768 | 4.8 | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (Non-GAAP) | Adjusted operating income (Non-GAAP) | $ | 252,821 | $ | 138,392 | $ | 114,429 | 82.7 | % | |||||||||||||||||||||||||||||||||||||
Sales on a constant currency basis (Non-GAAP) | Sales on a constant currency basis (Non-GAAP) | $ | 10,758,433 | $ | 8,535,608 | $ | 2,222,825 | 26.0 | % | |||||||||||||||||||||||||||||||||||||
Gross profit on a constant currency basis (Non-GAAP) | Gross profit on a constant currency basis (Non-GAAP) | 2,094,357 | 1,725,306 | 369,051 | 21.4 | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating expenses on a constant currency basis (Non-GAAP) | Adjusted operating expenses on a constant currency basis (Non-GAAP) | 1,826,687 | 1,586,914 | 239,773 | 15.1 | |||||||||||||||||||||||||||||||||||||||||
Adjusted operating income on a constant currency basis (Non-GAAP) | Adjusted operating income on a constant currency basis (Non-GAAP) | $ | 267,670 | $ | 138,392 | $ | 129,278 | 93.4 | % |
Increase (Decrease) | Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
13-Week Period | 13-Week Period | 39-Week Period | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Cause of change | Cause of change | Percentage | Dollars | Cause of change | Percentage | Dollars | Percentage | Dollars | ||||||||||||||||||||||||||||||||||||||
Inflation | Inflation | 14.5 | % | $ | 418.5 | Inflation | 14.9 | % | $ | 421.7 | 15.2 | % | $ | 1,293.4 | ||||||||||||||||||||||||||||||||
Foreign currency | Foreign currency | (10.9) | (315.5) | Foreign currency | (7.3) | (206.7) | (9.9) | (848.2) | ||||||||||||||||||||||||||||||||||||||
Other (1) | Other (1) | 9.8 | 285.5 | Other (1) | 10.4 | 295.0 | 10.8 | 929.5 | ||||||||||||||||||||||||||||||||||||||
Total change in sales | Total change in sales | 13.4 | % | $ | 388.5 | Total change in sales | 18.0 | % | $ | 510.0 | 16.1 | % | $ | 1,374.7 |
(1) | The impact of volumes as a component of sales growth from international operations are included within “Other.” Volume in our foreign operations includes volume metrics that differ from country to country and cannot be aggregated on a consistent, comparable basis. |
Our discussion of our results includes certain non-GAAP financial measures, such as EBITDA and adjusted EBITDA, | ||
The results of our | ||
Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove these Certain Items and presenting its | ||
Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2023 and fiscal 2022. | ||
Set forth below is a reconciliation of sales, operating expenses, operating income, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not add up to the total presented due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | % Change | 13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | |||||||||||||||||||||||||||||||||||||||
Sales (GAAP) | Sales (GAAP) | $ | 19,126,830 | $ | 16,456,546 | $ | 2,670,284 | 16.2 | % | Sales (GAAP) | $ | 18,875,676 | $ | 16,902,139 | $ | 1,973,537 | 11.7 | % | ||||||||||||||||||||||||||||
Impact of currency fluctuations (1) | Impact of currency fluctuations (1) | 319,162 | — | 319,162 | 2.0 | Impact of currency fluctuations (1) | 211,164 | — | 211,164 | 1.2 | ||||||||||||||||||||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | Comparable sales using a constant currency basis (Non-GAAP) | $ | 19,445,992 | $ | 16,456,546 | $ | 2,989,446 | 18.2 | % | Comparable sales using a constant currency basis (Non-GAAP) | $ | 19,086,840 | $ | 16,902,139 | $ | 2,184,701 | 12.9 | % | ||||||||||||||||||||||||||||
Cost of sales (GAAP) | Cost of sales (GAAP) | $ | 15,637,975 | $ | 13,484,838 | $ | 2,153,137 | 16.0 | % | Cost of sales (GAAP) | $ | 15,444,316 | $ | 13,888,745 | $ | 1,555,571 | 11.2 | % | ||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (2) | Impact of inventory valuation adjustment (2) | 2,571 | — | 2,571 | — | Impact of inventory valuation adjustment (2) | — | (29,550) | 29,550 | 0.2 | ||||||||||||||||||||||||||||||||||||
Cost of sales adjusted for Certain Items (Non-GAAP) | Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 15,640,546 | $ | 13,484,838 | $ | 2,155,708 | 16.0 | % | Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 15,444,316 | $ | 13,859,195 | $ | 1,585,121 | 11.4 | % | ||||||||||||||||||||||||||||
Gross profit (GAAP) | Gross profit (GAAP) | $ | 3,488,855 | $ | 2,971,708 | $ | 517,147 | 17.4 | % | Gross profit (GAAP) | $ | 3,431,360 | $ | 3,013,394 | $ | 417,966 | 13.9 | % | ||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (2) | Impact of inventory valuation adjustment (2) | (2,571) | — | (2,571) | (0.1) | Impact of inventory valuation adjustment (2) | — | 29,550 | (29,550) | (1.1) | ||||||||||||||||||||||||||||||||||||
Comparable gross profit adjusted for Certain Items (Non-GAAP) | Comparable gross profit adjusted for Certain Items (Non-GAAP) | 3,486,284 | 2,971,708 | 514,576 | 17.3 | Comparable gross profit adjusted for Certain Items (Non-GAAP) | 3,431,360 | 3,042,944 | 388,416 | 12.8 | ||||||||||||||||||||||||||||||||||||
Impact of currency fluctuations (1) | Impact of currency fluctuations (1) | 73,035 | — | 73,035 | 2.5 | Impact of currency fluctuations (1) | 41,794 | — | 41,794 | 1.3 | ||||||||||||||||||||||||||||||||||||
Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 3,559,319 | $ | 2,971,708 | $ | 587,611 | 19.8 | % | Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 3,473,154 | $ | 3,042,944 | $ | 430,210 | 14.1 | % | ||||||||||||||||||||||||||||
Gross margin (GAAP) | Gross margin (GAAP) | 18.24 | % | 18.06 | % | 18 bps | Gross margin (GAAP) | 18.18 | % | 17.83 | % | 35 bps | ||||||||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (2) | Impact of inventory valuation adjustment (2) | (0.01) | % | — | % | -1 bps | Impact of inventory valuation adjustment (2) | — | 0.17 | -17 bps | ||||||||||||||||||||||||||||||||||||
Comparable gross margin adjusted for Certain Items (Non-GAAP) | 18.23 | % | 18.06 | % | 17 bps | |||||||||||||||||||||||||||||||||||||||||
Comparable gross margin adjusted for Certain Items (Non-GAAP) | Comparable gross margin adjusted for Certain Items (Non-GAAP) | 18.18 | 18.00 | 18 bps | ||||||||||||||||||||||||||||||||||||||||||
Impact of currency fluctuations (1) | Impact of currency fluctuations (1) | 0.07 | — | 7 bps | Impact of currency fluctuations (1) | 0.02 | — | 2 bps | ||||||||||||||||||||||||||||||||||||||
Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 18.30 | % | 18.06 | % | 24 bps | Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 18.20 | % | 18.00 | % | 20 bps | ||||||||||||||||||||||||||||||||||
Operating expenses (GAAP) | Operating expenses (GAAP) | $ | 2,754,522 | $ | 2,340,026 | $ | 414,496 | 17.7 | % | Operating expenses (GAAP) | $ | 2,737,183 | $ | 2,517,665 | $ | 219,518 | 8.7 | % | ||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (3) | Impact of restructuring and transformational project costs (3) | (11,645) | (24,511) | 12,866 | 52.5 | Impact of restructuring and transformational project costs (3) | (12,255) | (19,171) | 6,916 | 36.1 | ||||||||||||||||||||||||||||||||||||
Impact of acquisition-related costs (4) | Impact of acquisition-related costs (4) | (29,454) | (35,926) | 6,472 | 18.0 | Impact of acquisition-related costs (4) | (29,004) | (36,699) | 7,695 | 21.0 | ||||||||||||||||||||||||||||||||||||
Impact of bad debt reserve adjustments (5) | Impact of bad debt reserve adjustments (5) | 2,592 | 7,061 | (4,469) | (63.3) | Impact of bad debt reserve adjustments (5) | (90) | 5,717 | (5,807) | NM | ||||||||||||||||||||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | Operating expenses adjusted for Certain Items (Non-GAAP) | 2,716,015 | 2,286,650 | 429,365 | 18.8 | Operating expenses adjusted for Certain Items (Non-GAAP) | 2,695,834 | 2,467,512 | 228,322 | 9.3 | ||||||||||||||||||||||||||||||||||||
Impact of currency fluctuations (1) | Impact of currency fluctuations (1) | 70,695 | — | 70,695 | 3.1 | Impact of currency fluctuations (1) | 41,607 | — | 41,607 | 1.6 | ||||||||||||||||||||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 2,786,710 | $ | 2,286,650 | $ | 500,060 | 21.9 | % | Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 2,737,441 | $ | 2,467,512 | $ | 269,929 | 10.9 | % | ||||||||||||||||||||||||||||
Operating expense as a percentage of sales (GAAP) | Operating expense as a percentage of sales (GAAP) | 14.40 | % | 14.22 | % | 18 bps | Operating expense as a percentage of sales (GAAP) | 14.50 | % | 14.90 | % | -40 bps | ||||||||||||||||||||||||||||||||||
Impact of certain item adjustments | Impact of certain item adjustments | (0.20) | % | (0.32) | % | 12 bps | Impact of certain item adjustments | (0.22) | (0.30) | 8 bps | ||||||||||||||||||||||||||||||||||||
Adjusted operating expense as a percentage of sales (Non-GAAP) | Adjusted operating expense as a percentage of sales (Non-GAAP) | 14.20 | % | 13.90 | % | 30 bps | Adjusted operating expense as a percentage of sales (Non-GAAP) | 14.28 | % | 14.60 | % | -32 bps | ||||||||||||||||||||||||||||||||||
Operating income (GAAP) | Operating income (GAAP) | $ | 734,333 | $ | 631,682 | $ | 102,651 | 16.3 | % | Operating income (GAAP) | $ | 694,177 | $ | 495,729 | $ | 198,448 | 40.0 | % | ||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (2) | Impact of inventory valuation adjustment (2) | (2,571) | — | (2,571) | NM | Impact of inventory valuation adjustment (2) | — | 29,550 | (29,550) | NM | ||||||||||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (3) | Impact of restructuring and transformational project costs (3) | 11,645 | 24,511 | (12,866) | (52.5) | Impact of restructuring and transformational project costs (3) | 12,255 | 19,171 | (6,916) | (36.1) | ||||||||||||||||||||||||||||||||||||
Impact of acquisition-related costs (4) | Impact of acquisition-related costs (4) | 29,454 | 35,926 | (6,472) | (18.0) | Impact of acquisition-related costs (4) | 29,004 | 36,699 | (7,695) | (21.0) | ||||||||||||||||||||||||||||||||||||
Impact of bad debt reserve adjustments (5) | Impact of bad debt reserve adjustments (5) | (2,592) | (7,061) | 4,469 | 63.3 | Impact of bad debt reserve adjustments (5) | 90 | (5,717) | 5,807 | NM | ||||||||||||||||||||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | Operating income adjusted for Certain Items (Non-GAAP) | 770,269 | 685,058 | 85,211 | 12.4 | Operating income adjusted for Certain Items (Non-GAAP) | 735,526 | 575,432 | 160,094 | 27.8 | ||||||||||||||||||||||||||||||||||||
Impact of currency fluctuations (1) | Impact of currency fluctuations (1) | 2,340 | — | 2,340 | 0.4 | Impact of currency fluctuations (1) | 187 | — | 187 | 0.1 | ||||||||||||||||||||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 772,609 | $ | 685,058 | $ | 87,551 | 12.8 | % | Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 735,713 | $ | 575,432 | $ | 160,281 | 27.9 | % | ||||||||||||||||||||||||||||
Operating margin (GAAP) | Operating margin (GAAP) | 3.84 | % | 3.84 | % | 0 bps | Operating margin (GAAP) | 3.68 | % | 2.93 | % | 75 bps |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | % Change | 13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | |||||||||||||||||||||||||||||||||||||||
Operating margin adjusted for Certain Items (Non-GAAP) | Operating margin adjusted for Certain Items (Non-GAAP) | 4.03 | % | 4.16 | % | -13 bps | Operating margin adjusted for Certain Items (Non-GAAP) | 3.90 | % | 3.40 | % | 50 bps | ||||||||||||||||||||||||||||||||||
Operating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | Operating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 3.97 | % | 4.16 | % | -19 bps | Operating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 3.85 | % | 3.40 | % | 45 bps | ||||||||||||||||||||||||||||||||||
Other expense (income) (GAAP) | Other expense (income) (GAAP) | $ | 5,209 | $ | (13,777) | $ | 18,986 | NM | ||||||||||||||||||||||||||||||||||||||
Impact of other non-routine gains and losses | Impact of other non-routine gains and losses | (448) | — | (448) | NM | |||||||||||||||||||||||||||||||||||||||||
Other expense (income) adjusted for Certain Items (Non-GAAP) | Other expense (income) adjusted for Certain Items (Non-GAAP) | $ | 4,761 | $ | (13,777) | $ | 18,538 | NM | ||||||||||||||||||||||||||||||||||||||
Net earnings (GAAP) | Net earnings (GAAP) | $ | 465,568 | $ | 378,013 | $ | 87,555 | 23.2 | % | Net earnings (GAAP) | $ | 429,604 | $ | 303,325 | $ | 126,279 | 41.6 | % | ||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (2) | Impact of inventory valuation adjustment (2) | (2,571) | — | (2,571) | NM | Impact of inventory valuation adjustment (2) | — | 29,550 | (29,550) | NM | ||||||||||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (3) | Impact of restructuring and transformational project costs (3) | 11,645 | 24,511 | (12,866) | (52.5) | Impact of restructuring and transformational project costs (3) | 12,255 | 19,171 | (6,916) | (36.1) | ||||||||||||||||||||||||||||||||||||
Impact of acquisition-related costs (4) | Impact of acquisition-related costs (4) | 29,454 | 35,926 | (6,472) | (18.0) | Impact of acquisition-related costs (4) | 29,004 | 36,699 | (7,695) | (21.0) | ||||||||||||||||||||||||||||||||||||
Impact of bad debt reserve adjustments (5) | Impact of bad debt reserve adjustments (5) | (2,592) | (7,061) | 4,469 | 63.3 | Impact of bad debt reserve adjustments (5) | 90 | (5,717) | 5,807 | NM | ||||||||||||||||||||||||||||||||||||
Impact of other non-routine gains and losses | Impact of other non-routine gains and losses | 448 | — | 448 | NM | |||||||||||||||||||||||||||||||||||||||||
Tax impact of inventory valuation adjustment (6) | Tax impact of inventory valuation adjustment (6) | 637 | — | 637 | NM | Tax impact of inventory valuation adjustment (6) | — | (7,449) | 7,449 | NM | ||||||||||||||||||||||||||||||||||||
Tax impact of restructuring and transformational project costs (6) | Tax impact of restructuring and transformational project costs (6) | (2,884) | (6,186) | 3,302 | 53.4 | Tax impact of restructuring and transformational project costs (6) | (3,190) | (5,579) | 2,389 | 42.8 | ||||||||||||||||||||||||||||||||||||
Tax impact of acquisition-related costs (6) | Tax impact of acquisition-related costs (6) | (7,295) | (9,066) | 1,771 | 19.5 | Tax impact of acquisition-related costs (6) | (7,550) | (8,537) | 987 | 11.6 | ||||||||||||||||||||||||||||||||||||
Tax impact of bad debt reserves adjustments (6) | Tax impact of bad debt reserves adjustments (6) | 642 | 1,782 | (1,140) | (64.0) | Tax impact of bad debt reserves adjustments (6) | (23) | 1,445 | (1,468) | NM | ||||||||||||||||||||||||||||||||||||
Impact of adjustments to uncertain tax positions | — | 12,000 | (12,000) | NM | ||||||||||||||||||||||||||||||||||||||||||
Tax impact of other non-routine gains and losses (6) | Tax impact of other non-routine gains and losses (6) | (117) | — | (117) | NM | |||||||||||||||||||||||||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | Net earnings adjusted for Certain Items (Non-GAAP) | $ | 492,604 | $ | 429,919 | $ | 62,685 | 14.6 | % | Net earnings adjusted for Certain Items (Non-GAAP) | $ | 460,521 | $ | 362,908 | $ | 97,613 | 26.9 | % | ||||||||||||||||||||||||||||
Diluted earnings per share (GAAP) | Diluted earnings per share (GAAP) | $ | 0.91 | $ | 0.73 | $ | 0.18 | 24.7 | % | Diluted earnings per share (GAAP) | $ | 0.84 | $ | 0.59 | $ | 0.25 | 42.4 | % | ||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (2) | Impact of inventory valuation adjustment (2) | (0.01) | — | (0.01) | NM | Impact of inventory valuation adjustment (2) | — | 0.06 | (0.06) | NM | ||||||||||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (3) | Impact of restructuring and transformational project costs (3) | 0.02 | 0.05 | (0.03) | (60.0) | Impact of restructuring and transformational project costs (3) | 0.02 | 0.04 | (0.02) | (50.0) | ||||||||||||||||||||||||||||||||||||
Impact of acquisition-related costs (4) | Impact of acquisition-related costs (4) | 0.06 | 0.07 | (0.01) | (14.3) | Impact of acquisition-related costs (4) | 0.06 | 0.07 | (0.01) | (14.3) | ||||||||||||||||||||||||||||||||||||
Impact of bad debt reserve adjustments (5) | Impact of bad debt reserve adjustments (5) | (0.01) | (0.01) | — | — | Impact of bad debt reserve adjustments (5) | — | (0.01) | 0.01 | NM | ||||||||||||||||||||||||||||||||||||
Tax impact of inventory valuation adjustment (6) | Tax impact of inventory valuation adjustment (6) | — | (0.01) | 0.01 | NM | |||||||||||||||||||||||||||||||||||||||||
Tax impact of restructuring and transformational project costs (6) | Tax impact of restructuring and transformational project costs (6) | (0.01) | (0.01) | — | — | Tax impact of restructuring and transformational project costs (6) | (0.01) | (0.01) | — | — | ||||||||||||||||||||||||||||||||||||
Tax impact of acquisition-related costs (6) | Tax impact of acquisition-related costs (6) | (0.01) | (0.02) | 0.01 | 50.0 | Tax impact of acquisition-related costs (6) | (0.01) | (0.02) | 0.01 | 50.0 | ||||||||||||||||||||||||||||||||||||
Impact of adjustments to uncertain tax positions | — | 0.02 | (0.02) | NM | ||||||||||||||||||||||||||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (7) | Diluted earnings per share adjusted for Certain Items (Non-GAAP) (7) | $ | 0.97 | $ | 0.83 | $ | 0.14 | 16.9 | % | Diluted earnings per share adjusted for Certain Items (Non-GAAP) (7) | $ | 0.90 | $ | 0.71 | $ | 0.19 | 26.8 | % |
(1) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. | ||||
(2) | Fiscal | ||||
(3) | Fiscal 2023 includes | ||||
(4) | Fiscal 2023 includes | ||||
(5) | Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(6) | The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(7) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | %/bps Change | ||||||||||||||||||||
U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 1,708,515 | $ | 1,387,631 | $ | 320,884 | 23.1 | % | |||||||||||||||
Impact of restructuring and transformational project costs | 48 | (3) | 51 | NM | |||||||||||||||||||
Impact of acquisition-related costs (1) | (12,585) | (4,654) | (7,931) | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 2,592 | 6,420 | (3,828) | (59.6) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 1,698,570 | $ | 1,389,394 | $ | 309,176 | 22.3 | % | |||||||||||||||
Operating income (GAAP) | $ | 903,828 | $ | 797,523 | $ | 106,305 | 13.3 | % | |||||||||||||||
Impact of restructuring and transformational project costs | (48) | 3 | (51) | NM | |||||||||||||||||||
Impact of acquisition-related costs (1) | 12,585 | 4,654 | 7,931 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (2,592) | (6,420) | 3,828 | 59.6 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 913,773 | $ | 795,760 | $ | 118,013 | 14.8 | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 3,283,735 | $ | 2,895,247 | $ | 388,488 | 13.4 | % | |||||||||||||||
Impact of currency fluctuations (3) | 315,451 | — | 315,451 | 10.9 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 3,599,186 | $ | 2,895,247 | $ | 703,939 | 24.3 | % | |||||||||||||||
Gross profit (GAAP) | $ | 649,265 | $ | 589,134 | $ | 60,131 | 10.2 | % | |||||||||||||||
Impact of currency fluctuations (3) | 71,760 | — | 71,760 | 12.2 | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 721,025 | $ | 589,134 | $ | 131,891 | 22.4 | % | |||||||||||||||
Gross margin (GAAP) | 19.77 | % | 20.35 | % | -58 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.26 | — | 26 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 20.03 | % | 20.35 | % | -32 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 562,057 | $ | 552,458 | $ | 9,599 | 1.7 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (3,907) | (9,426) | 5,519 | 58.6 | |||||||||||||||||||
Impact of acquisition-related costs (5) | (16,014) | (18,656) | 2,642 | 14.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | — | 641 | (641) | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 542,136 | 525,017 | 17,119 | 3.3 | |||||||||||||||||||
Impact of currency fluctuations (3) | 64,707 | — | 64,707 | 12.3 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 606,843 | $ | 525,017 | $ | 81,826 | 15.6 | % | |||||||||||||||
Operating income (GAAP) | $ | 87,208 | $ | 36,676 | $ | 50,532 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (4) | 3,907 | 9,426 | (5,519) | (58.6) | |||||||||||||||||||
Impact of acquisition-related costs (5) | 16,014 | 18,656 | (2,642) | (14.2) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | — | (641) | 641 | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | 107,129 | 64,117 | 43,012 | 67.1 | |||||||||||||||||||
Impact of currency fluctuations (3) | 7,053 | — | 7,053 | 11.0 | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 114,182 | $ | 64,117 | $ | 50,065 | 78.1 | % | |||||||||||||||
SYGMA | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 148,422 | $ | 140,604 | $ | 7,818 | 5.6 | % | |||||||||||||||
Operating (loss) income (GAAP) | 5,471 | (2,447) | 7,918 | NM | |||||||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 69,300 | $ | 52,565 | $ | 16,735 | 31.8 | % | |||||||||||||||
Operating income (GAAP) | 11,538 | 6,456 | 5,082 | 78.7 | |||||||||||||||||||
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
Sales (GAAP) | $ | 56,596,459 | $ | 49,678,888 | $ | 6,917,571 | 13.9 | % | |||||||||||||||
Impact of currency fluctuations (1) | 862,752 | — | 862,752 | 1.8 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 57,459,211 | $ | 49,678,888 | $ | 7,780,323 | 15.7 | % | |||||||||||||||
Cost of sales (GAAP) | $ | 46,326,628 | $ | 40,802,636 | $ | 5,523,992 | 13.5 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 2,571 | (29,550) | 32,121 | 0.1 | |||||||||||||||||||
Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 46,329,199 | $ | 40,773,086 | $ | 5,556,113 | 13.6 | % | |||||||||||||||
Gross profit (GAAP) | $ | 10,269,831 | $ | 8,876,252 | $ | 1,393,579 | 15.7 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | (2,571) | 29,550 | (32,121) | (0.4) | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items (Non-GAAP) | 10,267,260 | 8,905,802 | 1,361,458 | 15.3 | |||||||||||||||||||
Impact of currency fluctuations (1) | 182,727 | — | 182,727 | 2.0 | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 10,449,987 | $ | 8,905,802 | $ | 1,544,185 | 17.3 | % | |||||||||||||||
Gross margin (GAAP) | 18.15 | % | 17.87 | % | 28 bps | ||||||||||||||||||
Impact of inventory valuation adjustment (2) | (0.01) | 0.06 | -7 bps | ||||||||||||||||||||
Comparable gross margin adjusted for Certain Items (Non-GAAP) | 18.14 | 17.93 | 21 bps | ||||||||||||||||||||
Impact of currency fluctuations (1) | 0.05 | — | 5 bps | ||||||||||||||||||||
Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 18.19 | % | 17.93 | % | 26 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 8,200,679 | $ | 7,303,932 | $ | 896,747 | 12.3 | % | |||||||||||||||
Impact of restructuring and transformational project costs (3) | (38,288) | (70,058) | 31,770 | 45.3 | |||||||||||||||||||
Impact of acquisition-related costs (4) | (87,419) | (103,449) | 16,030 | 15.5 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | 4,425 | 19,216 | (14,791) | (77.0) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 8,079,397 | 7,149,641 | 929,756 | 13.0 | |||||||||||||||||||
Impact of currency fluctuations (1) | 179,277 | — | 179,277 | 2.5 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 8,258,674 | $ | 7,149,641 | $ | 1,109,033 | 15.5 | % | |||||||||||||||
Operating expense as a percentage of sales (GAAP) | 14.49 | % | 14.70 | % | -21 bps | ||||||||||||||||||
Impact of certain item adjustments | (0.21) | (0.31) | 10 bps | ||||||||||||||||||||
Adjusted operating expense as a percentage of sales (Non-GAAP) | 14.28 | % | 14.39 | % | -11 bps | ||||||||||||||||||
Operating income (GAAP) | $ | 2,069,152 | $ | 1,572,320 | $ | 496,832 | 31.6 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | (2,571) | 29,550 | (32,121) | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 38,288 | 70,058 | (31,770) | (45.3) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 87,419 | 103,449 | (16,030) | (15.5) | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (4,425) | (19,216) | 14,791 | 77.0 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | 2,187,863 | 1,756,161 | 431,702 | 24.6 | |||||||||||||||||||
Impact of currency fluctuations (1) | 3,449 | — | 3,449 | 0.2 | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 2,191,312 | $ | 1,756,161 | $ | 435,151 | 24.8 | % | |||||||||||||||
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | %/bps Change | ||||||||||||||||||||
GLOBAL SUPPORT CENTER | |||||||||||||||||||||||
Gross (loss) profit (GAAP) | $ | (7,484) | $ | 242 | $ | (7,726) | NM | ||||||||||||||||
Impact of inventory valuation adjustment (6) | (2,571) | — | (2,571) | NM | |||||||||||||||||||
Comparable gross profit (loss) adjusted for Certain Items (Non-GAAP) | $ | (10,055) | $ | 242 | $ | (10,297) | NM | ||||||||||||||||
Operating expenses (GAAP) | $ | 266,228 | $ | 206,768 | $ | 59,460 | 28.8 | % | |||||||||||||||
Impact of restructuring and transformational project costs (7) | (7,786) | (15,082) | 7,296 | 48.4 | |||||||||||||||||||
Impact of acquisition-related costs (8) | (855) | (12,616) | 11,761 | 93.2 | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 257,587 | $ | 179,070 | $ | 78,517 | 43.8 | % | |||||||||||||||
Operating loss (GAAP) | $ | (273,712) | $ | (206,526) | $ | (67,186) | (32.5) | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | (2,571) | — | (2,571) | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (7) | 7,786 | 15,082 | (7,296) | (48.4) | |||||||||||||||||||
Impact of acquisition-related costs (8) | 855 | 12,616 | (11,761) | (93.2) | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (267,642) | $ | (178,828) | $ | (88,814) | (49.7) | % | |||||||||||||||
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
Interest expense (GAAP) | $ | 391,123 | $ | 495,131 | $ | (104,008) | (21.0) | % | |||||||||||||||
Impact of loss on extinguishment of debt | — | (115,603) | 115,603 | NM | |||||||||||||||||||
Interest expense adjusted for Certain Items (Non-GAAP) | $ | 391,123 | $ | 379,528 | $ | 11,595 | 3.1 | % | |||||||||||||||
Other expense (income) (GAAP) | $ | 350,614 | $ | (27,705) | $ | 378,319 | NM | ||||||||||||||||
Impact of other non-routine gains and losses (6) | (315,326) | — | (315,326) | NM | |||||||||||||||||||
Other expense (income) adjusted for Certain Items (Non-GAAP) | $ | 35,288 | $ | (27,705) | $ | 62,993 | NM | ||||||||||||||||
Net earnings (GAAP) | $ | 1,036,388 | $ | 848,779 | $ | 187,609 | 22.1 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | (2,571) | 29,550 | (32,121) | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 38,288 | 70,058 | (31,770) | (45.3) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 87,419 | 103,449 | (16,030) | (15.5) | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (4,425) | (19,216) | 14,791 | 77.0 | |||||||||||||||||||
Impact of loss on extinguishment of debt | — | 115,603 | (115,603) | NM | |||||||||||||||||||
Impact of other non-routine gains and losses (6) | 315,326 | — | 315,326 | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (7) | 648 | (7,449) | 8,097 | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (7) | (9,649) | (17,661) | 8,012 | 45.4 | |||||||||||||||||||
Tax impact of acquisition-related costs (7) | (22,031) | (26,079) | 4,048 | 15.5 | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (7) | 1,115 | 4,844 | (3,729) | (77.0) | |||||||||||||||||||
Tax impact of loss on extinguishment of debt (7) | — | (29,143) | 29,143 | NM | |||||||||||||||||||
Tax impact of other non-routine gains and losses (7) | (79,466) | — | (79,466) | NM | |||||||||||||||||||
Impact of adjustments to uncertain tax positions | — | 12,000 | (12,000) | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 1,361,042 | $ | 1,084,735 | $ | 276,307 | 25.5 | % | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 2.03 | $ | 1.65 | $ | 0.38 | 23.0 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | (0.01) | 0.06 | (0.07) | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 0.08 | 0.14 | (0.06) | (42.9) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 0.17 | 0.20 | (0.03) | (15.0) | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (0.01) | (0.04) | 0.03 | 75.0 | |||||||||||||||||||
Impact of loss on extinguishment of debt | — | 0.22 | (0.22) | NM | |||||||||||||||||||
Impact of other non-routine gains and losses (6) | 0.62 | — | 0.62 | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (7) | — | (0.01) | 0.01 | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (7) | (0.02) | (0.03) | 0.01 | 33.3 | |||||||||||||||||||
Tax impact of acquisition-related costs (7) | (0.04) | (0.05) | 0.01 | 20.0 | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (7) | — | 0.01 | (0.01) | NM | |||||||||||||||||||
Tax impact of loss on extinguishment of debt (7) | — | (0.06) | 0.06 | NM | |||||||||||||||||||
Tax impact of other non-routine gains and losses (7) | (0.16) | — | (0.16) | NM | |||||||||||||||||||
Impact of adjustments to uncertain tax positions | — | 0.02 | (0.02) | NM | |||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (8) | $ | 2.67 | $ | 2.11 | $ | 0.56 | 26.5 | % |
(1) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. | ||||
(2) | Fiscal 2023 represents an adjustment to a product return allowance, related to COVID-related personal protection equipment inventory. Fiscal 2022 represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(3) | Fiscal 2023 includes $12 million related to restructuring, severance, and facility closure charges and $26 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2022 includes $39 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy and $31 million related to various restructuring, severance, and facility closure charges. | ||||
(4) | Fiscal 2023 includes $78 million of intangible amortization expense and $9 million in acquisition and due diligence costs. Fiscal 2022 includes $75 million of intangible amortization expense and $28 million in acquisition and due diligence costs. | ||||
(5) | Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(6) | Fiscal 2023 primarily represents a pension settlement charge of $315 million that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer. | ||||
(7) | The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(8) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | %/bps Change | ||||||||||||||||||||
U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 1,690,093 | $ | 1,523,578 | $ | 166,515 | 10.9 | % | |||||||||||||||
Impact of restructuring and transformational project costs | (159) | 2,543 | (2,702) | NM | |||||||||||||||||||
Impact of acquisition-related costs (1) | (11,463) | (10,505) | (958) | (9.1) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (81) | 5,060 | (5,141) | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 1,678,390 | $ | 1,520,676 | $ | 157,714 | 10.4 | % | |||||||||||||||
Operating income (GAAP) | $ | 855,766 | $ | 746,467 | $ | 109,299 | 14.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs | 159 | (2,543) | 2,702 | NM | |||||||||||||||||||
Impact of acquisition-related costs (1) | 11,463 | 10,505 | 958 | 9.1 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 81 | (5,060) | 5,141 | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 867,469 | $ | 749,369 | $ | 118,100 | 15.8 | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 3,344,121 | $ | 2,834,089 | $ | 510,032 | 18.0 | % | |||||||||||||||
Impact of currency fluctuations (3) | 206,661 | — | 206,661 | 7.3 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 3,550,782 | $ | 2,834,089 | $ | 716,693 | 25.3 | % | |||||||||||||||
Gross profit (GAAP) | $ | 642,778 | $ | 570,241 | $ | 72,537 | 12.7 | % | |||||||||||||||
Impact of currency fluctuations (3) | 40,245 | — | 40,245 | 7.1 | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 683,023 | $ | 570,241 | $ | 112,782 | 19.8 | % | |||||||||||||||
Gross margin (GAAP) | 19.22 | % | 20.12 | % | -90 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.02 | — | 2 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 19.24 | % | 20.12 | % | -88 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 594,426 | $ | 562,481 | $ | 31,945 | 5.7 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (2,103) | (9,379) | 7,276 | 77.6 | |||||||||||||||||||
Impact of acquisition-related costs (5) | (16,585) | (18,142) | 1,557 | 8.6 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (10) | 657 | (667) | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 575,728 | 535,617 | 40,111 | 7.5 | |||||||||||||||||||
Impact of currency fluctuations (3) | 37,070 | — | 37,070 | 6.9 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 612,798 | $ | 535,617 | $ | 77,181 | 14.4 | % | |||||||||||||||
Operating income (GAAP) | $ | 48,352 | $ | 7,760 | $ | 40,592 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (4) | 2,103 | 9,379 | (7,276) | (77.6) | |||||||||||||||||||
Impact of acquisition-related costs (5) | 16,585 | 18,142 | (1,557) | (8.6) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 10 | (657) | 667 | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | 67,050 | 34,624 | 32,426 | 93.7 | |||||||||||||||||||
Impact of currency fluctuations (3) | 3,175 | — | 3,175 | NM | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 70,225 | $ | 34,624 | $ | 35,601 | NM | ||||||||||||||||
SYGMA | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 140,665 | $ | 142,883 | $ | (2,218) | (1.6) | % | |||||||||||||||
Operating income (GAAP) | 25,439 | 4,362 | 21,077 | NM | |||||||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 67,615 | $ | 59,369 | $ | 8,246 | 13.9 | % | |||||||||||||||
13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | %/bps Change | ||||||||||||||||||||
Operating income (loss) (GAAP) | $ | 11,836 | $ | (3,972) | $ | 15,808 | NM | ||||||||||||||||
GLOBAL SUPPORT CENTER | |||||||||||||||||||||||
Gross loss (GAAP) | $ | (2,832) | $ | (29,534) | $ | 26,702 | 90.4 | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | — | 29,550 | (29,550) | NM | |||||||||||||||||||
Comparable gross (loss) profit adjusted for Certain Items (Non-GAAP) | $ | (2,832) | $ | 16 | $ | (2,848) | NM | ||||||||||||||||
Operating expenses (GAAP) | $ | 244,384 | $ | 229,354 | $ | 15,030 | 6.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (7) | (9,992) | (12,335) | 2,343 | 19.0 | |||||||||||||||||||
Impact of acquisition-related costs (8) | (956) | (8,052) | 7,096 | 88.1 | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 233,436 | $ | 208,967 | $ | 24,469 | 11.7 | % | |||||||||||||||
Operating loss (GAAP) | $ | (247,216) | $ | (258,888) | $ | 11,672 | 4.5 | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | — | 29,550 | (29,550) | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (7) | 9,992 | 12,335 | (2,343) | (19.0) | |||||||||||||||||||
Impact of acquisition-related costs (8) | 956 | 8,052 | (7,096) | (88.1) | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (236,268) | $ | (208,951) | $ | (27,317) | (13.1) | % | |||||||||||||||
(1) | Fiscal 2023 and fiscal 2022 include intangible amortization expense and acquisition costs. | ||||
(2) | Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring and facility closure costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense. | ||||
(6) | Fiscal | ||||
(7) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(8) | Represents due diligence costs. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 5,110,736 | $ | 4,373,665 | $ | 737,071 | 16.9 | % | |||||||||||||||
Impact of restructuring and transformational project costs | (203) | (383) | 180 | 47.0 | |||||||||||||||||||
Impact of acquisition-related costs (1) | (35,563) | (25,382) | (10,181) | (40.1) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 4,170 | 16,729 | (12,559) | (75.1) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 5,079,140 | $ | 4,364,629 | $ | 714,511 | 16.4 | % | |||||||||||||||
Operating income (GAAP) | $ | 2,540,555 | $ | 2,220,812 | $ | 319,743 | 14.4 | % | |||||||||||||||
Impact of restructuring and transformational project costs | 203 | 383 | (180) | (47.0) | |||||||||||||||||||
Impact of acquisition-related costs (1) | 35,563 | 25,382 | 10,181 | 40.1 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (4,170) | (16,729) | 12,559 | 75.1 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 2,572,151 | $ | 2,229,848 | $ | 342,303 | 15.4 | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 9,910,267 | $ | 8,535,608 | $ | 1,374,659 | 16.1 | % | |||||||||||||||
Impact of currency fluctuations (3) | 848,166 | — | 848,166 | 9.9 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 10,758,433 | $ | 8,535,608 | $ | 2,222,825 | 26.0 | % | |||||||||||||||
Gross profit (GAAP) | $ | 1,916,503 | $ | 1,725,306 | $ | 191,197 | 11.1 | % | |||||||||||||||
Impact of currency fluctuations (3) | 177,854 | — | 177,854 | 10.3 | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 2,094,357 | $ | 1,725,306 | $ | 369,051 | 21.4 | % | |||||||||||||||
Gross margin (GAAP) | 19.34 | % | 20.21 | % | -87 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.13 | — | 13 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 19.47 | % | 20.21 | % | -74 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 1,723,558 | $ | 1,670,125 | $ | 53,433 | 3.2 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (11,597) | (30,426) | 18,829 | 61.9 | |||||||||||||||||||
Impact of acquisition-related costs (5) | (48,534) | (55,273) | 6,739 | 12.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 255 | 2,488 | (2,233) | (89.8) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 1,663,682 | 1,586,914 | 76,768 | 4.8 | |||||||||||||||||||
Impact of currency fluctuations (3) | 163,005 | — | 163,005 | 10.3 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 1,826,687 | $ | 1,586,914 | $ | 239,773 | 15.1 | % | |||||||||||||||
Operating income (GAAP) | $ | 192,945 | $ | 55,181 | $ | 137,764 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (4) | 11,597 | 30,426 | (18,829) | (61.9) | |||||||||||||||||||
Impact of acquisition-related costs (5) | 48,534 | 55,273 | (6,739) | (12.2) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (255) | (2,488) | 2,233 | 89.8 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | 252,821 | 138,392 | 114,429 | 82.7 | |||||||||||||||||||
Impact of currency fluctuations (3) | 14,849 | — | 14,849 | 10.7 | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 267,670 | $ | 138,392 | $ | 129,278 | 93.4 | % | |||||||||||||||
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
SYGMA | |||||||||||||||||||||||
Sales (GAAP) | $ | 5,839,051 | $ | 5,270,193 | $ | 568,858 | 10.8 | % | |||||||||||||||
Gross profit (GAAP) | 470,458 | 422,354 | 48,104 | 11.4 | |||||||||||||||||||
Gross margin (GAAP) | 8.06 | % | 8.01 | % | 5 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 432,743 | $ | 427,168 | $ | 5,575 | 1.3 | % | |||||||||||||||
Operating income (loss) (GAAP) | 37,715 | (4,814) | 42,529 | NM | |||||||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 204,345 | $ | 166,560 | $ | 37,785 | 22.7 | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | — | (1) | 1 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 204,345 | $ | 166,559 | $ | 37,786 | 22.7 | % | |||||||||||||||
Operating income (GAAP) | $ | 33,255 | $ | 2,667 | $ | 30,588 | NM | ||||||||||||||||
Impact of bad debt reserve adjustments (2) | — | 1 | (1) | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 33,255 | $ | 2,668 | $ | 30,587 | NM | ||||||||||||||||
GLOBAL SUPPORT CENTER | |||||||||||||||||||||||
Gross loss (GAAP) | $ | (6,021) | $ | (35,112) | $ | 29,091 | 82.9 | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | (2,571) | 29,550 | (32,121) | NM | |||||||||||||||||||
Comparable gross loss adjusted for Certain Items (Non-GAAP) | $ | (8,592) | $ | (5,562) | $ | (3,030) | (54.5) | % | |||||||||||||||
Operating expenses (GAAP) | $ | 729,297 | $ | 666,414 | $ | 62,883 | 9.4 | % | |||||||||||||||
Impact of restructuring and transformational project costs (7) | (26,488) | (39,249) | 12,761 | 32.5 | |||||||||||||||||||
Impact of acquisition-related costs (8) | (3,322) | (22,794) | 19,472 | 85.4 | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 699,487 | $ | 604,371 | $ | 95,116 | 15.7 | % | |||||||||||||||
Operating loss (GAAP) | $ | (735,318) | $ | (701,526) | $ | (33,792) | (4.8) | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | (2,571) | 29,550 | (32,121) | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (7) | 26,488 | 39,249 | (12,761) | (32.5) | |||||||||||||||||||
Impact of acquisition-related costs (8) | 3,322 | 22,794 | (19,472) | (85.4) | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (708,079) | $ | (609,933) | $ | (98,146) | (16.1) | % | |||||||||||||||
(1) | Fiscal 2023 and fiscal 2022 include intangible amortization expense and acquisition costs. | ||||
(2) | Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring, severance and facility closure costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense. | ||||
(6) | Fiscal 2023 represents an adjustment to a product return allowance, related to COVID-related personal protection equipment inventory. Fiscal 2022 represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(7) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(8) | Represents due diligence costs. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | Change in Dollars | % Change | 13-Week Period Ended Apr. 1, 2023 | 13-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | |||||||||||||||||||||||||||||||||||||||
Net earnings (GAAP) | Net earnings (GAAP) | $ | 465,568 | $ | 378,013 | $ | 87,555 | 23.2 | % | Net earnings (GAAP) | $ | 429,604 | $ | 303,325 | $ | 126,279 | 41.6 | % | ||||||||||||||||||||||||||||
Interest (GAAP) | Interest (GAAP) | 124,150 | 128,214 | (4,064) | (3.2) | Interest (GAAP) | 134,931 | 124,018 | 10,913 | 8.8 | ||||||||||||||||||||||||||||||||||||
Income taxes (GAAP) | Income taxes (GAAP) | 129,334 | 128,707 | 627 | 0.5 | Income taxes (GAAP) | 124,433 | 82,163 | 42,270 | 51.4 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization (GAAP) | Depreciation and amortization (GAAP) | 188,924 | 186,466 | 2,458 | 1.3 | Depreciation and amortization (GAAP) | 195,996 | 193,843 | 2,153 | 1.1 | ||||||||||||||||||||||||||||||||||||
EBITDA (Non-GAAP) | EBITDA (Non-GAAP) | $ | 907,976 | $ | 821,400 | $ | 86,576 | 10.5 | % | EBITDA (Non-GAAP) | $ | 884,964 | $ | 703,349 | $ | 181,615 | 25.8 | % | ||||||||||||||||||||||||||||
Certain Item adjustments: | Certain Item adjustments: | Certain Item adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Impact of inventory valuation adjustment (1) | Impact of inventory valuation adjustment (1) | $ | (2,571) | $ | — | $ | (2,571) | NM | Impact of inventory valuation adjustment (1) | $ | — | $ | 29,550 | $ | (29,550) | NM | ||||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (2) | Impact of restructuring and transformational project costs (2) | 10,509 | 24,247 | (13,738) | (56.7) | Impact of restructuring and transformational project costs (2) | 11,890 | 18,746 | (6,856) | (36.6) | ||||||||||||||||||||||||||||||||||||
Impact of acquisition-related costs (3) | Impact of acquisition-related costs (3) | 3,546 | 14,221 | (10,675) | (75.1) | Impact of acquisition-related costs (3) | 2,349 | 9,861 | (7,512) | (76.2) | ||||||||||||||||||||||||||||||||||||
Impact of bad debt reserve adjustments (4) | Impact of bad debt reserve adjustments (4) | (2,592) | (7,061) | 4,469 | 63.3 | Impact of bad debt reserve adjustments (4) | 90 | (5,717) | 5,807 | 101.6 | ||||||||||||||||||||||||||||||||||||
Impact of other non-routine gains and losses | Impact of other non-routine gains and losses | 448 | — | 448 | NM | |||||||||||||||||||||||||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (5) | EBITDA adjusted for Certain Items (Non-GAAP) (5) | $ | 916,868 | $ | 852,807 | $ | 64,061 | 7.5 | % | EBITDA adjusted for Certain Items (Non-GAAP) (5) | $ | 899,741 | $ | 755,789 | $ | 143,952 | 19.0 | % |
(1) | Fiscal | ||||
(2) | Fiscal 2023 and fiscal 2022 include charges related to restructuring, severance, and facility closures, as well as various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(3) | Fiscal 2023 and fiscal 2022 include acquisition and due diligence costs. | ||||
(4) | Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $7 million and $2 million or non-cash stock compensation expense of $21 million and $30 million in fiscal 2023 and fiscal 2022, respectively. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (GAAP) | $ | 1,036,388 | $ | 848,779 | $ | 187,609 | 22.1 | % | |||||||||||||||
Interest (GAAP) | 391,123 | 495,131 | (104,008) | (21.0) | |||||||||||||||||||
Income taxes (GAAP) | 291,027 | 256,115 | 34,912 | 13.6 | |||||||||||||||||||
Depreciation and amortization (GAAP) | 574,945 | 571,606 | 3,339 | 0.6 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 2,293,483 | $ | 2,171,631 | $ | 121,852 | 5.6 | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of inventory valuation adjustment (1) | $ | (2,571) | $ | 29,550 | $ | (32,121) | (108.7) | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | 37,192 | 69,093 | (31,901) | (46.2) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 8,944 | 28,260 | (19,316) | (68.4) | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (4,425) | (19,216) | 14,791 | 77.0 | |||||||||||||||||||
Impact of other non-routine gains and losses (5) | 315,326 | — | 315,326 | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (6) | $ | 2,647,949 | $ | 2,279,318 | $ | 368,631 | 16.2 | % |
(1) | Fiscal 2023 represents an adjustment to a product return allowance, related to COVID-related personal protection equipment inventory. Fiscal 2022 represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Fiscal 2023 and fiscal 2022 include charges related to restructuring, severance, and facility closures, as well as various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(3) | Fiscal 2023 and fiscal 2022 include acquisition and due diligence costs. | ||||
(4) | Fiscal 2023 and fiscal 2022 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | Fiscal 2023 primarily represents a pension settlement charge of $315 million that resulted from the purchase of a nonparticipating single premium group annuity contract that transferred defined benefit plan obligations to an insurer. | ||||
(6) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Oct. 1, 2022 | 13-Week Period Ended Oct. 2, 2021 | 39-Week Period Ended Apr. 1, 2023 | 39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||
Source of cash (use of cash) | Source of cash (use of cash) | (In thousands) | Source of cash (use of cash) | (In thousands) | ||||||||||||||||||
Net cash provided by operating activities (GAAP) | Net cash provided by operating activities (GAAP) | $ | 158,606 | $ | 110,812 | Net cash provided by operating activities (GAAP) | $ | 1,425,782 | $ | 745,871 | ||||||||||||
Additions to plant and equipment | Additions to plant and equipment | (167,260) | (85,019) | Additions to plant and equipment | (474,456) | (327,535) | ||||||||||||||||
Proceeds from sales of plant and equipment | Proceeds from sales of plant and equipment | 22,448 | 5,627 | Proceeds from sales of plant and equipment | 28,313 | 15,946 | ||||||||||||||||
Free Cash Flow (Non-GAAP) (1) | Free Cash Flow (Non-GAAP) (1) | $ | 13,794 | $ | 31,420 | Free Cash Flow (Non-GAAP) (1) | $ | 979,639 | $ | 434,282 | ||||||||||||
Acquisition of businesses, net of cash acquired | Acquisition of businesses, net of cash acquired | $ | (32,651) | $ | (714,010) | Acquisition of businesses, net of cash acquired | $ | (37,384) | $ | (1,281,835) | ||||||||||||
Debt borrowings (repayments), net | Debt borrowings (repayments), net | 137,959 | (10,048) | Debt borrowings (repayments), net | 92,917 | 1,213,114 | ||||||||||||||||
Redemption premiums and repayments for senior notes | Redemption premiums and repayments for senior notes | — | (1,395,668) | |||||||||||||||||||
Stock repurchases | Stock repurchases | (267,727) | — | Stock repurchases | (377,800) | (415,824) | ||||||||||||||||
Dividends paid | Dividends paid | (249,294) | (240,561) | Dividends paid | (747,378) | (719,865) |
(1) | Free cash flow should not be used as a substitute for the most comparable GAAP measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” contained in our fiscal 2022 Form 10-K for discussions regarding this non-GAAP performance metric. |
Combined Parent and Guarantor Subsidiaries Summarized Balance Sheet | Oct. 1, 2022 | Jul. 2, 2022 | ||||||||||||
(In thousands) | ||||||||||||||
ASSETS | ||||||||||||||
Receivables due from non-obligor subsidiaries | $ | 218,392 | $ | 264,378 | ||||||||||
Current assets | 5,714,872 | 5,658,972 | ||||||||||||
Total current assets | $ | 5,933,264 | $ | 5,923,350 | ||||||||||
Notes receivable from non-obligor subsidiaries | $ | 91,138 | $ | 91,067 | ||||||||||
Other noncurrent assets | 3,969,771 | 3,910,951 | ||||||||||||
Total noncurrent assets | $ | 4,060,909 | $ | 4,002,018 | ||||||||||
LIABILITIES | ||||||||||||||
Payables due to non-obligor subsidiaries | $ | 60,283 | $ | 62,441 | ||||||||||
Other current liabilities | 2,826,594 | 2,765,756 | ||||||||||||
Total current liabilities | $ | 2,886,877 | $ | 2,828,197 | ||||||||||
Notes payable to non-obligor subsidiaries | $ | 272,099 | $ | 315,753 | ||||||||||
Long-term debt | 9,718,645 | 9,501,842 | ||||||||||||
Other noncurrent liabilities | 1,206,767 | 1,190,177 | ||||||||||||
Total noncurrent liabilities | $ | 11,197,511 | $ | 11,007,772 |
Combined Parent and Guarantor Subsidiaries Summarized Balance Sheet | Apr. 1, 2023 | Jul. 2, 2022 | ||||||||||||
(In thousands) | ||||||||||||||
ASSETS | ||||||||||||||
Receivables due from non-obligor subsidiaries | $ | 129,217 | $ | 264,378 | ||||||||||
Current assets | 5,596,334 | 5,658,972 | ||||||||||||
Total current assets | $ | 5,725,551 | $ | 5,923,350 | ||||||||||
Notes receivable from non-obligor subsidiaries | $ | 88,433 | $ | 91,067 | ||||||||||
Other noncurrent assets | 4,052,080 | 3,910,951 | ||||||||||||
Total noncurrent assets | $ | 4,140,513 | $ | 4,002,018 | ||||||||||
LIABILITIES | ||||||||||||||
Payables due to non-obligor subsidiaries | $ | 59,808 | $ | 62,441 | ||||||||||
Other current liabilities | 2,793,576 | 2,765,756 | ||||||||||||
Total current liabilities | $ | 2,853,384 | $ | 2,828,197 | ||||||||||
Notes payable to non-obligor subsidiaries | $ | 178,392 | $ | 315,753 | ||||||||||
Long-term debt | 9,709,004 | 9,501,842 | ||||||||||||
Other noncurrent liabilities | 1,246,097 | 1,190,177 | ||||||||||||
Total noncurrent liabilities | $ | 11,133,493 | $ | 11,007,772 |
Combined Parent and Guarantor Subsidiaries Summarized Results of Operations | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Sales | $ | |||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Interest expense from non-obligor subsidiaries | ||||||||||||||||||||||||||
Net earnings |
ISSUER PURCHASES OF EQUITY SECURITIES | ISSUER PURCHASES OF EQUITY SECURITIES | ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||||||||||||||||||||||||||||||||||
Period | Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||||||||||||||||
Month #1 | Month #1 | Month #1 | ||||||||||||||||||||||||||||||||||||||||||||
July 3 - July 30 | 3,099,268 | $ | 86.37 | 267,680,804 | — | |||||||||||||||||||||||||||||||||||||||||
January 1 - January 28 | January 1 - January 28 | — | $ | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Month #2 | Month #2 | Month #2 | ||||||||||||||||||||||||||||||||||||||||||||
July 31 - Aug 27 | 4,638 | 86.18 | 399,720 | — | ||||||||||||||||||||||||||||||||||||||||||
January 29 - February 25 | January 29 - February 25 | 540,019 | 77.11 | 540,019 | — | |||||||||||||||||||||||||||||||||||||||||
Month #3 | Month #3 | Month #3 | ||||||||||||||||||||||||||||||||||||||||||||
Aug 28 - October 1 | 1,191 | 83.89 | 99,913 | — | ||||||||||||||||||||||||||||||||||||||||||
February 26 - April 1 | February 26 - April 1 | 912,993 | 74.93 | 912,993 | — | |||||||||||||||||||||||||||||||||||||||||
Totals | Totals | 3,105,097 | $ | 86.37 | 268,180,437 | — | Totals | 1,453,012 | $ | 75.74 | 1,453,012 | — |
(1) | The total number of shares purchased includes | ||||
(2) | See the discussion in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Equity Transactions” for additional information regarding Sysco’s share repurchase program. |
3.1 | — | |||||||
3.2 | — | |||||||
3.3 | — | |||||||
3.4 | — | |||||||
— | ||||||||
— | ||||||||
22.1 | — | |||||||
31.1# | — | |||||||
31.2# | — | |||||||
32.1# | — | |||||||
32.2# | — | |||||||
101.SCH# | — | Inline XBRL Taxonomy Extension Schema Document | ||||||
101.CAL# | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.DEF# | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB# | — | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||||
101.PRE# | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Sysco Corporation | ||||||||
(Registrant) | ||||||||
Date: | By: | /s/ KEVIN P. HOURICAN | ||||||
Kevin P. Hourican | ||||||||
President and Chief Executive Officer | ||||||||
Date: | By: | /s/ | ||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
Date: | By: | /s/ SCOTT B. STONE | ||||||
Scott B. Stone | ||||||||
Vice President of Financial Reporting | ||||||||
and Interim Chief Accounting Officer |