| Summary of Significant Accounting Policies and Estimates (Policies) | 12 Months Ended |
| Jul. 01, 2017 |
| Accounting Policies [Abstract] | |
| Principles of Consolidation | Principles of Consolidation
The consolidated financial statements include the accounts of the
Company and its subsidiaries. All inter-company balances and
transactions have been eliminated. |
| Use of Estimates | Use of Estimates
The preparation of the consolidated financial statements in
conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of
revenue and expenses during the reporting period. The most
significant estimates used by management are related to the
accounting for the allowance for doubtful accounts, reserve for
inventories, impairment testing of goodwill and other intangible
assets, acquisition accounting, reserves for claims and recoveries
under insurance programs, vendor rebates and other promotional
incentives, bonus accruals, depreciation, amortization,
determination of useful lives of tangible and intangible assets,
and income taxes. Actual results could differ from these
estimates. |
| Cash | Cash
The Company maintains its cash primarily in institutions insured by
the Federal Deposit Insurance Corporation (“FDIC”). At
times, the Company’s cash balance may be in amounts that
exceed the FDIC insurance limits. |
| Restricted Cash | Restricted Cash
The Company is required by its insurers to collateralize a part of
the deductibles for its workers’ compensation and liability
claims. The Company has chosen to satisfy these collateral
requirements primarily by depositing funds in trusts or by issuing
letters of credit. All amounts in restricted cash at July 1,
2017 and July 2, 2016 represent funds deposited in insurance
trusts, and $10.2 million and $10.2 million,
respectively, represent Level 1 fair value measurements. |
| Accounts Receivable | Accounts Receivable
Accounts receivable are primarily comprised of trade receivables
from customers in the ordinary course of business, are recorded at
the invoiced amount, and primarily do not bear interest. Accounts
receivable also includes other receivables primarily related to
various rebate and promotional incentives with the Company’s
suppliers. Receivables are recorded net of the allowance for
doubtful accounts on the accompanying consolidated balance sheets.
The Company evaluates the collectability of its accounts receivable
based on a combination of factors. The Company regularly analyzes
its significant customer accounts, and when it becomes aware of a
specific customer’s inability to meet its financial
obligations to the Company, such as bankruptcy filings or
deterioration in the customer’s operating results or
financial position, the Company records a specific reserve for bad
debt to reduce the related receivable to the amount it reasonably
believes is collectible. The Company also records reserves for bad
debt for other customers based on a variety of factors, including
the length of time the receivables are past due, macroeconomic
considerations, and historical experience. If circumstances related
to specific customers change, the Company’s estimates of the
recoverability of receivables could be further adjusted. As of
July 1, 2017 and July 2, 2016, the allowance for doubtful
accounts related to trade receivables was approximately
$11.0 million and $10.6 million, respectively, and
$6.0 million and $5.7 million, respectively related to
other receivables. The Company recorded $6.0 million,
$7.5 million, and $6.6 million in provision for doubtful
accounts in fiscal 2017, fiscal 2016, and fiscal 2015,
respectively. |
| Inventories | Inventories
The Company’s inventories consist primarily of food and
non-food first-in, first-out last-in, first-out |
| Property, Plant, and Equipment | Property, Plant, and Equipment
Property, plant, and equipment are stated at cost. Depreciation of
property, plant and equipment, including capital lease assets, is
calculated primarily using the straight-line method over the
estimated useful lives of the assets, which range from two to 39
years, and is included primarily in operating expenses on the
consolidated statement of operations.
Certain internal and external costs related to the development of
internal use software are capitalized within property, plant, and
equipment during the application development stage.
When assets are retired or otherwise disposed, the costs and
related accumulated depreciation are removed from the accounts. The
difference between the net book value of the asset and proceeds
from disposition is recognized as a gain or loss. Routine
maintenance and repairs are charged to expense as incurred, while
costs of betterments and renewals are capitalized. |
| Impairment of Long-Lived Assets | Impairment of Long-Lived Assets
Long-lived assets held and used by the Company, including
intangible assets with definite lives, are tested for
recoverability whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. For
purposes of evaluating the recoverability of long-lived assets, the
Company compares the carrying value of the asset or asset group to
the projected, undiscounted future cash flows expected to be
generated by the long-lived asset or asset group. Based on the
Company’s assessments, no impairment losses were recorded in
fiscal 2017, fiscal 2016, or fiscal 2015. |
| Acquisitions, Goodwill, and Other Intangible Assets | Acquisitions, Goodwill, and Other Intangible Assets
The Company accounts for acquired businesses using the acquisition
method of accounting. The Company’s financial statements
reflect the operations of an acquired business starting from the
completion of the acquisition. Goodwill and other intangible assets
represent the excess of cost of an acquired entity over the amounts
specifically assigned to those tangible net assets acquired in a
business combination. Other identifiable intangible assets
typically include customer relationships, trade names, technology,
non-compete
The Company is required to test goodwill and other intangible
assets with indefinite lives for impairment annually, or more often
if circumstances indicate. Indicators of goodwill impairment
include, but are not limited to, significant declines in the
markets and industries that buy the Company’s products,
changes in the estimated future cash flows of its reporting units,
changes in capital markets, and changes in its market
capitalization. For goodwill and indefinite-lived intangible
assets, the Company’s policy is to assess impairment at the
end of each fiscal year.
The Company applies the guidance in FASB Accounting Standards
Update (ASU) 2011-08 “Intangibles—Goodwill and Other—Testing
Goodwill for Impairment
During fiscal 2017 and fiscal 2016, the Company performed the step
zero analysis for its goodwill impairment test. As a result of the
Company’s step zero analysis, no further quantitative
impairment test was deemed necessary for fiscal 2017 or fiscal
2016. There were no impairments of goodwill or intangible assets
with indefinite lives for fiscal 2017, fiscal 2016, or fiscal
2015. |
| Insurance Program | Insurance Program
The Company maintains high-deductible insurance programs covering
portions of general and vehicle liability and workers’
compensation. The amounts in excess of the deductibles are fully
insured by third-party insurance carriers and subject to certain
limitations and exclusions. The Company also maintains self-funded
group medical insurance. The Company accrues its estimated
liability for these deductibles, including an estimate for incurred
but not reported claims, based on known claims and past claims
history. The estimated short-term portion of these accruals is
included in Accrued expenses on the Company’s consolidated
balance sheets, while the estimated long-term portion of the
accruals is included in Other long-term liabilities. The provisions
for insurance claims include estimates of the frequency and timing
of claims occurrence, as well as the ultimate amounts to be paid.
These insurance programs are managed by a third party, and the
deductibles for general and vehicle liability and workers
compensation are primarily collateralized by letters of credit and
restricted cash. |
| Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss)
Other comprehensive income (loss) is defined as all changes in
equity during each period except for those resulting from net
income (loss) and investments by or distributions to shareholders.
Other comprehensive income (loss) consists primarily of gains or
losses from derivative financial instruments that are designated in
a hedging relationship. For derivative instruments that qualify as
cash flow hedges, the effective portion of the gain or loss on the
derivative instrument is reported as a component of other
comprehensive income and reclassified into earnings during the same
period or periods during which the hedged transaction affects
earnings. |
| Revenue Recognition | Revenue Recognition
The Company recognizes revenue from the sale of a product when it
is considered realized or realizable and earned. The Company
determines these requirements to be met when the product has been
delivered to the customer, the price is fixed and determinable, and
there is reasonable assurance of collection of the sales proceeds.
The Company grants certain customers sales incentives such as
rebates or discounts and treats these as a reduction of sales at
the time the sale is recognized. The Company recognizes
revenues net of applicable sales tax. Sales returns are recorded as
reductions of sales.
Revenue is accounted for in accordance with ASC 605-45, 605-45, Reporting Revenue
Gross as a Principal versus Net as an Agent
• who is the primary obligor to provide
the product or services desired by our customers;
• who has discretion in supplier
selection;
• who has latitude in establishing
price;
• who retains credit risk; and
• who bears inventory risk.
When the Company determines that it does not meet the criteria for
gross revenue recognition under ASC 605-45 |
| Cost of Goods Sold | Cost of Goods Sold
Cost of goods sold includes amounts paid to manufacturers for
products sold, the cost of transportation necessary to bring the
products to the Company’s facilities, plus depreciation
related to processing facilities and equipment. |
| Operating Expenses | Operating Expenses
Operating expenses include warehouse, delivery, occupancy,
insurance, depreciation, amortization, salaries and wages, and
employee benefits expenses. |
| Other, net | Other, net
Other, net primarily includes the change in fair value gain or loss
and cash settlements pertaining to our derivatives on forecasted
diesel fuel purchases along with other non-operating
On December 8, 2013, Sysco Corporation (“Sysco”)
and US Foods, Inc. (“US Foods”) announced that they had
entered into an agreement and plan of merger. On February 2,
2015, the Company reached an agreement to purchase 11 US Foods
facilities relating to the proposed merger. On February 19,
2015, the Federal Trade Commission filed suit seeking an injunction
to prevent the proposed merger and, on June 23, 2015, the
United States District Court for the District of Columbia granted
the injunction. In June 2015, the proposed merger was terminated.
As a result, the Company’s agreement to purchase the
facilities was also terminated and the Company received a
termination fee of $25 million.
Other, net consisted of the following:
(In millions) Fiscal year Fiscal year Fiscal year
Change in fair value (gain) loss on derivatives for forecasted
diesel fuel purchased $ (0.3 ) $ (1.4 ) $ 1.8
Cash settlements on derivatives for forecasted diesel fuel
purchases 0.2 4.9 1.2
Ineffectiveness related to hedge derivatives for forecasted debt
interest payments (1.5 ) 0.5
—
Termination fee
—
— (25.0 )
Other income
— (0.2 ) (0.2 )
Other, net $ (1.6 ) $ 3.8 $ (22.2 ) |
| Vendor Rebates and Other Promotional Incentives | Vendor Rebates and Other Promotional Incentives
The Company participates in various rebate and promotional
incentives with its suppliers, primarily including volume and
growth rebates, annual and multi-year incentives, and promotional
programs. Consideration received under these incentives is
generally recorded as a reduction of cost of goods sold. However,
as described below, in certain limited circumstances the
consideration is recorded as a reduction of operating expenses
incurred by the Company. Consideration received may be in the form
of cash and/or invoice deductions. Changes in the estimated amount
of incentives to be received are treated as changes in estimates
and are recognized in the period of change.
Consideration received for incentives that contain volume and
growth rebates and annual and multi-year incentives are recorded as
a reduction of cost of goods sold. The Company systematically and
rationally allocates the consideration for these incentives to each
of the underlying transactions that results in progress by the
Company toward earning the incentives. If the incentives are not
probable and reasonably estimable, the Company records the
incentives as the underlying objectives or milestones are achieved.
The Company records annual and multi-year incentives when earned,
generally over the agreement period. The Company uses current and
historical purchasing data, forecasted purchasing volumes, and
other factors in estimating whether the underlying objectives or
milestones will be achieved. Consideration received to promote and
sell the supplier’s products is typically a reimbursement of
marketing costs incurred by the Company and is recorded as a
reduction of the Company’s operating expenses. If the amount
of consideration received from the suppliers exceeds the
Company’s marketing costs, any excess is recorded as a
reduction of cost of goods sold. The Company follows the
requirements of FASB ASC 605-50-25-10, Revenue
Recognition—Customer Payments and
Incentives—Recognition—Customer’s Accounting for
Certain Consideration Received from a Vendor 605-50-45-16, Revenue
Recognition—Customer Payments and Incentives—Other
Presentation Matters—Reseller’s Characterization of
Sales Incentives Offered to Customers by Manufacturers |
| Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs
Shipping and handling fees billed to customers are included in net
sales. Estimated shipping and handling costs incurred by the
Company of $807.7 million, $752.0 million, and
$718.8 million are recorded in operating expenses in the
consolidated statement of operations for fiscal 2017, fiscal 2016,
and fiscal 2015, respectively. |
| Stock-Based Compensation | Stock-Based Compensation
The Company participates in the Performance Food Group Company 2007
Management Option Plan (the “2007 Option Plan”) and the
Performance Food Group Company 2015 Omnibus Incentive Plan (the
“2015 Incentive Plan”) and follows the fair value
recognition provisions of FASB ASC 718-10-25, Compensation—Stock
Compensation—Overall—Recognition |
| Income Taxes | Income Taxes
The Company follows FASB ASC 740-10, Income
Taxes—Overall |
| Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities
As required by FASB ASC 815-20, Derivatives and
Hedging—Hedging—General 815-20. Derivatives and Hedging Activities
The Company discloses derivative instruments and hedging activities
in accordance with FASB ASC 815-10-50, Derivatives and
Hedging—Overall—Disclosure 815-10-50 815-20, 815-10-50 |
| Fair Value Measurements | Fair Value Measurements
Fair value is defined as an exit price, representing the price that
would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the
measurement date. The accounting guidance establishes a fair value
hierarchy that prioritizes the inputs to valuation techniques used
to measure fair value. The three levels of the fair value hierarchy
are as follows:
• Level 1—Observable inputs such
as quoted prices for identical assets or liabilities in active
markets;
• Level 2—Inputs, other than the
quoted prices in active markets, that are observable either
directly or indirectly for substantially the full term of the asset
or liability; and
• Level 3—Unobservable inputs in
which there are little or no market data, which include
management’s own assumption about the risk assumptions market
participants would use in pricing an asset or liability.
The Company’s derivative instruments are carried at fair
value and are evaluated in accordance with this hierarchy. |
| Contingent Liabilities | Contingent Liabilities
The Company records a liability related to contingencies when a
loss is considered to be probable and a reasonable estimate of the
loss can be made. This estimate would include legal fees, if
applicable. |
| Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements
In March 2016, the Financial Accounting Standards Board (FASB)
issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements
to Employee Share-Based Payment Accounting tax-related 2016-09 after-tax.
In May 2017, the FASB issued ASU 2017-09, Compensation—Stock
Compensation (Topic 718): Scope of Modification Accounting 2017-09
Recently Issued Accounting Pronouncements Not Yet
Adopted
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts
with Customers (Topic 606) 2016-08, Revenue from Contracts
with Customers (Topic 606): Principal versus Agent Considerations
(Reporting Revenue Gross versus Net) 2016-10, Revenue from Contracts
with Customers (Topic 606): Identifying Performance Obligations and
Licensing, 2016-12, Revenue from
Contracts with Customers (Topic 606): Narrow Scope Improvements and
Practical Expedients 2016-20, Technical
Corrections and Improvements to Topic 606, Revenue from Contracts
with Customers
Companies may use either a full retrospective or modified
retrospective approach for adoption of Topic 606. Topic 606, as
amended by ASU 2015-14, Revenue from Contracts with Customers—Deferral of the
Effective Date,
In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330):
Simplifying the Measurement of Inventory
In February 2016, the FASB issued ASU 2016-02, Leases (Topic
842) 10-K.
In June 2016, the FASB issued ASU 2016-13, Financial
Instruments—Credit Losses (Topic 326): Measurement of Credit
Losses on Financial Instruments.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows
(Topic 230): Classification of Certain Cash Receipts and Cash
Payments
In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows
(Topic 230): Restricted Cash beginning-of-period end-of-period
In January 2017, the FASB issued ASU 2017-01, Business Combinations
(Topic 805): Clarifying the Definition of a Business
In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill
and Other (Topic 350): Simplifying the Test for Goodwill
Impairment |
