Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 27, 2015 | Aug. 13, 2015 | Dec. 27, 2014 | |
Document Entity Information [Abstract] | |||
Entity Registrant Name | SYSCO CORP | ||
Entity Central Index Key | 96,021 | ||
Current Fiscal Year End Date | --06-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 23,927,875,000 | ||
Entity Common Stock, Shares Outstanding | 594,917,977 | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 27, 2015 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Current assets | ||
Cash and cash equivalents | $ 5,130,044 | $ 413,046 |
Accounts and notes receivable, less allowances of $41,720 and $49,902 | 3,353,381 | 3,398,713 |
Inventories | 2,691,823 | 2,602,018 |
Deferred income taxes | 135,254 | 141,225 |
Prepaid expenses and other current assets | 93,039 | 83,745 |
Prepaid income taxes | 90,763 | 43,225 |
Total current assets | 11,494,304 | 6,681,972 |
Plant and equipment at cost, less depreciation | 3,982,143 | 3,985,618 |
Other assets | ||
Goodwill | 1,959,817 | 1,950,672 |
Intangibles, less amortization | 154,809 | 177,227 |
Restricted cash | 168,274 | 145,412 |
Other assets | 229,934 | 200,212 |
Total other assets | 2,512,834 | 2,473,523 |
Total assets | 17,989,281 | 13,141,113 |
Current liabilities | ||
Notes payable | 70,751 | 70,975 |
Accounts payable | 2,881,953 | 2,831,028 |
Accrued expenses | 1,467,610 | 1,160,850 |
Current maturities of long-term debt | 4,979,301 | 304,777 |
Total current liabilities | 9,399,615 | 4,367,630 |
Other liabilities | ||
Long-term debt | 2,271,825 | 2,357,330 |
Deferred income taxes | 81,591 | 121,580 |
Other long-term liabilities | 934,722 | 1,027,878 |
Total other liabilities | 3,288,138 | 3,506,788 |
Noncontrolling Interest | $ 41,304 | $ 0 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | $ 0 | $ 0 |
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 | 1,213,999 | 1,139,218 |
Retained earnings | 8,751,985 | 8,770,751 |
Accumulated other comprehensive loss | (923,197) | (642,663) |
Treasury stock, 170,857,231 and 179,050,186 shares, at cost | (4,547,738) | (4,765,786) |
Total shareholders' equity | 5,260,224 | 5,266,695 |
Total liabilities and shareholders' equity | $ 17,989,281 | $ 13,141,113 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 41,720 | $ 49,902 |
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,500,000 | 1,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 765,174,900 | 765,174,900 |
Treasury stock (in shares) | 170,857,231 | 179,050,186 |
Consolidated Results of Operati
Consolidated Results of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 12,401,938 | $ 11,746,659 | $ 12,087,074 | $ 12,445,081 | $ 12,286,992 | $ 11,277,484 | $ 11,237,969 | $ 11,714,267 | $ 48,680,752 | $ 46,516,712 | $ 44,411,233 |
Cost of sales | 10,181,774 | 9,689,161 | 10,001,937 | 10,256,364 | 10,131,136 | 9,282,743 | 9,273,018 | 9,648,780 | 40,129,236 | 38,335,677 | 36,414,626 |
Gross profit | 2,220,164 | 2,057,498 | 2,085,137 | 2,188,717 | 2,155,856 | 1,994,741 | 1,964,951 | 2,065,487 | 8,551,516 | 8,181,035 | 7,996,607 |
Operating expenses | 2,099,169 | 1,730,190 | 1,769,691 | 1,723,104 | 1,731,334 | 1,662,116 | 1,613,174 | 1,587,289 | 7,322,154 | 6,593,913 | 6,338,129 |
Operating income | 120,995 | 327,308 | 315,446 | 465,613 | 424,522 | 332,625 | 351,777 | 478,198 | 1,229,362 | 1,587,122 | 1,658,478 |
Interest expense | 77,281 | 69,550 | 77,042 | 30,934 | 31,205 | 32,224 | 29,784 | 30,528 | 254,807 | 123,741 | 128,495 |
Other expense (income), net | (25,034) | (8,577) | 2,207 | (2,188) | (7,216) | 3,718 | (4,211) | (4,534) | (33,592) | (12,243) | (17,472) |
Earnings before income taxes | 68,748 | 266,335 | 236,197 | 436,867 | 400,533 | 296,683 | 326,204 | 452,204 | 1,008,147 | 1,475,624 | 1,547,455 |
Income taxes | (4,278) | 89,380 | 78,218 | 158,054 | 146,362 | 115,746 | 115,369 | 166,614 | 321,374 | 544,091 | 555,028 |
Net earnings | $ 73,026 | $ 176,955 | $ 157,979 | $ 278,813 | $ 254,171 | $ 180,937 | $ 210,835 | $ 285,590 | $ 686,773 | $ 931,533 | $ 992,427 |
Net earnings: | |||||||||||
Basic earnings per share (in USD per share) | $ 0.12 | $ 0.30 | $ 0.27 | $ 0.47 | $ 0.43 | $ 0.31 | $ 0.36 | $ 0.49 | $ 1.16 | $ 1.59 | $ 1.68 |
Diluted earnings per share (in USD per share) | 0.12 | 0.30 | 0.27 | 0.47 | 0.43 | 0.31 | 0.36 | 0.48 | $ 1.15 | $ 1.58 | $ 1.67 |
Average shares outstanding (in shares) | 592,072,308 | 585,988,084 | 589,397,807 | ||||||||
Diluted shares outstanding (in shares) | 596,849,034 | 590,216,220 | 592,675,110 | ||||||||
Dividends declared per common share (in USD per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.28 | $ 1.19 | $ 1.15 | $ 1.11 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net earnings | $ 73,026 | $ 176,955 | $ 157,979 | $ 278,813 | $ 254,171 | $ 180,937 | $ 210,835 | $ 285,590 | $ 686,773 | $ 931,533 | $ 992,427 |
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustment | (232,185) | (3,106) | (33,191) | ||||||||
Items presented net of tax: | |||||||||||
Amortization of cash flow hedges | 5,116 | 385 | 386 | ||||||||
Change in fair value of cash flow hedges | (34,111) | (82,215) | 0 | ||||||||
Amortization of prior service cost | 6,949 | 6,970 | 11,310 | ||||||||
Amortization of actuarial loss (gain), net | 11,972 | 9,968 | 44,610 | ||||||||
Amortization of transition obligation | 0 | 0 | 88 | ||||||||
Prior service cost arising in current year | (563) | 214 | (33,203) | ||||||||
Actuarial (loss) gain, net arising in current year | (37,712) | (127,942) | 225,929 | ||||||||
Total other comprehensive (loss) income | (280,534) | (195,726) | 215,929 | ||||||||
Comprehensive income | $ 406,239 | $ 735,807 | $ 1,208,356 |
Changes in Consolidated Shareho
Changes in Consolidated Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance, shareholders' equity at Jun. 30, 2012 | $ 4,685,040 | $ 765,175 | $ 939,179 | $ 8,175,230 | $ (662,866) | $ (4,531,678) |
Beginning balance, shares at Jun. 30, 2012 | 765,174,900 | 179,228,383 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 992,427 | 992,427 | ||||
Foreign currency translation adjustment | (33,191) | (33,191) | ||||
Amortization of cash flow hedges, net of tax | 386 | 386 | ||||
Change in fair value of cash flow hedges, net of tax | 0 | |||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 56,008 | 56,008 | ||||
Pension funded status adjustment, net of tax | 192,726 | 192,726 | ||||
Dividends declared | (654,871) | (654,871) | ||||
Treasury stock purchases | (729,333) | $ (729,333) | ||||
Treasury stock purchases, shares | 21,897,403 | |||||
Share-based compensation awards | 682,618 | 120,445 | $ 562,173 | |||
Share-based compensation awards, shares | (22,057,356) | |||||
Ending balance, shareholders' equity at Jun. 29, 2013 | 5,191,810 | $ 765,175 | 1,059,624 | 8,512,786 | (446,937) | $ (4,698,838) |
Ending balance, shares at Jun. 29, 2013 | 765,174,900 | 179,068,430 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 931,533 | 931,533 | ||||
Foreign currency translation adjustment | (3,106) | (3,106) | ||||
Amortization of cash flow hedges, net of tax | 385 | 385 | ||||
Change in fair value of cash flow hedges, net of tax | (82,215) | (82,215) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 16,938 | 16,938 | ||||
Pension funded status adjustment, net of tax | (127,728) | (127,728) | ||||
Dividends declared | (673,568) | (673,568) | ||||
Treasury stock purchases | (324,665) | $ (324,665) | ||||
Treasury stock purchases, shares | 9,834,000 | |||||
Share-based compensation awards | 337,311 | 79,594 | $ 257,717 | |||
Share-based compensation awards, shares | (9,852,244) | |||||
Ending balance, shareholders' equity at Jun. 28, 2014 | 5,266,695 | $ 765,175 | 1,139,218 | 8,770,751 | (642,663) | $ (4,765,786) |
Ending balance, shares at Jun. 28, 2014 | 765,174,900 | 179,050,186 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 686,773 | 686,773 | ||||
Foreign currency translation adjustment | (232,185) | (232,185) | ||||
Amortization of cash flow hedges, net of tax | 5,116 | 5,116 | ||||
Change in fair value of cash flow hedges, net of tax | (34,111) | (34,111) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 18,921 | 18,921 | ||||
Pension funded status adjustment, net of tax | (38,275) | (38,275) | ||||
Dividends declared | (705,539) | (705,539) | ||||
Share-based compensation awards | 292,829 | 74,781 | $ 218,048 | |||
Share-based compensation awards, shares | (8,192,955) | |||||
Ending balance, shareholders' equity at Jun. 27, 2015 | $ 5,260,224 | $ 765,175 | $ 1,213,999 | $ 8,751,985 | $ (923,197) | $ (4,547,738) |
Ending balance, shares at Jun. 27, 2015 | 765,174,900 | 170,857,231 |
Consolidated Cash Flows
Consolidated Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Cash flows from operating activities: | |||
Net earnings | $ 686,773 | $ 931,533 | $ 992,427 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Share-based compensation expense | 73,766 | 74,328 | 70,147 |
Depreciation and amortization | 553,021 | 547,776 | 510,061 |
Amortization of debt issuance and other debt-related costs | 27,943 | 8,286 | 2,487 |
Deferred income taxes | (4,705) | (30,665) | (28,129) |
Provision for losses on receivables | 17,996 | 34,429 | 35,243 |
Other non-cash items | (24,205) | 2,875 | 2,485 |
Additional investment in certain assets and liabilities, net of effect of businesses acquired: | |||
(Increase) in receivables | (11,741) | (236,320) | (193,755) |
(Increase) in inventories | (125,232) | (195,845) | (180,277) |
(Increase) decrease in prepaid expenses and other current assets | (10,508) | (24,787) | 21,704 |
Increase in accounts payable | 72,516 | 392,720 | 204,861 |
Increase in accrued expenses | 464,403 | 55,838 | 67,015 |
(Decrease) in accrued income taxes | (32,843) | (18,672) | (38,017) |
(Increase) decrease in other assets | (10,745) | 23,552 | 182 |
(Decrease) increase in other long-term liabilities | (105,501) | (63,753) | 49,716 |
Excess tax benefits from share-based compensation arrangements | (15,454) | (8,480) | (4,556) |
Net cash provided by operating activities | 1,555,484 | 1,492,815 | 1,511,594 |
Cash flows from investing activities: | |||
Additions to plant and equipment | (542,830) | (523,206) | (511,862) |
Proceeds from sales of plant and equipment | 24,472 | 25,790 | 15,527 |
Acquisition of businesses, net of cash acquired | (115,862) | (79,338) | (397,447) |
(Increase) in restricted cash | (20,126) | (84) | (18,100) |
Net cash used for investing activities | (654,346) | (576,838) | (911,882) |
Cash flows from financing activities: | |||
Bank and commercial paper borrowings (repayments), net | (129,999) | 34,499 | 95,500 |
Other debt borrowings | 5,041,032 | 36,830 | 61,467 |
Other debt repayments | (354,007) | (229,507) | (294,514) |
Debt issuance costs | (30,980) | (22,175) | 0 |
Cash paid for settlement of cash flow hedges | (188,840) | 0 | 0 |
Proceeds from stock option exercises | 240,176 | 255,613 | 628,652 |
Treasury stock purchases | 0 | (332,381) | (721,616) |
Dividends paid | (695,274) | (667,217) | (648,253) |
Excess tax benefits from share-based compensation arrangements | 15,454 | 8,480 | 4,556 |
Net cash provided by (used for) financing activities | 3,897,562 | (915,858) | (874,208) |
Effect of exchange rates on cash | (81,702) | 642 | (2,086) |
Net increase (decrease) in cash and cash equivalents | 4,716,998 | 761 | (276,582) |
Cash and cash equivalents at beginning of period | 413,046 | 412,285 | 688,867 |
Cash and cash equivalents at end of period | 5,130,044 | 413,046 | 412,285 |
Cash paid during the period for: | |||
Interest | 192,939 | 128,861 | 131,665 |
Income taxes | $ 376,508 | $ 591,334 | $ 620,132 |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Jun. 27, 2015 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | SUMMARY OF ACCOUNTING POLICIES Business and Consolidation Sysco Corporation, acting through its subsidiaries and divisions (Sysco or the company), is engaged in the marketing and distribution of a wide range of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for approximately 425,000 customers from 197 distribution facilities located throughout the United States (U.S.), Bahamas, Canada and Ireland. Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52-week year ending June 27, 2015 for fiscal 2015 , June 28, 2014 for fiscal 2014 and June 29, 2013 for fiscal 2013 . The accompanying financial statements include the accounts of Sysco and its consolidated subsidiaries. All significant intercompany transactions and account balances have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses. Actual results could differ from the estimates used. Cash and Cash Equivalents Cash includes cash equivalents such as time deposits, certificates of deposit, short-term investments and all highly liquid instruments with original maturities of three months or less, which are recorded at fair value. Accounts Receivable Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts based on a combination of factors. The company utilizes specific criteria to determine uncollectible receivables to be written off including whether a customer has filed for or been placed in bankruptcy, has had accounts referred to outside parties for collection or has had accounts past due over specified periods. In these instances, a specific allowance for doubtful accounts is recorded to reduce the receivable to the net amount reasonably expected to be collected. Allowances are recorded for all other receivables based on an analysis of historical trends of write-offs and recoveries. Inventories Inventories consisting primarily of finished goods include food and related products and lodging products held for resale and are valued at the lower of cost (first-in, first-out method) or market. Elements of costs include the purchase price of the product and freight charges to deliver the product to the company’s warehouses and are net of certain cash or non-cash consideration received from vendors (see “Vendor Consideration”). Plant and Equipment Capital additions, improvements and major replacements are classified as plant and equipment and are carried at cost. Depreciation is recorded using the straight-line method, which reduces the book value of each asset in equal amounts over its estimated useful life, and is included within operating expenses in the consolidated results of operations. Maintenance, repairs and minor replacements are charged to earnings when they are incurred. Upon the disposition of an asset, its accumulated depreciation is deducted from the original cost, and any gain or loss is reflected in current earnings. Certain internal and external costs related to the acquisition and development of internal use software are capitalized within plant and equipment during the application development stages of the project. Applicable interest charges incurred during the construction of new facilities and development of software for internal use are capitalized as one of the elements of cost and are amortized over the assets’ estimated useful lives. Interest capitalized for the past three fiscal years was $0.9 million in fiscal 2015 , $1.1 million in fiscal 2014 and $4.2 million in fiscal 2013 . Long-Lived Assets Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Goodwill and Intangibles Goodwill and intangibles represent the excess of cost over the fair value of tangible net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. The reporting units used to assess goodwill impairment are the company’s 13 operating segments as described in Note 21, “Business Segment Information.” The components within each of the 13 operating segments have similar economic characteristics and therefore are aggregated into 13 reporting units. The evaluation of fair value requires the use of projections, estimates and assumptions as to the future performance of the operations in performing a discounted cash flow analysis, as well as assumptions regarding sales and earnings multiples that would be applied in comparable acquisitions. Intangibles with definite lives are amortized over their useful lives in a manner consistent with underlying cash flow, which generally ranges from two to ten years . Management reviews finite-lived intangibles for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the finite-lived intangibles are estimated over the intangible asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the finite-lived intangible asset may not be recoverable, the potential impairment is measured at fair value. Restricted Cash Sysco is required by its insurers to collateralize a part of the self-insured portion of its workers’ compensation and liability claims. Sysco has chosen to satisfy these collateral requirements by depositing funds in insurance trusts or by issuing letters of credit. All amounts in restricted cash at June 27, 2015 and June 28, 2014 represented funds deposited in insurance trusts. Derivative Financial Instruments All derivatives are recognized as assets or liabilities within the consolidated balance sheets at fair value at their gross values. Gains or losses on derivative financial instruments designated as fair value hedges are recognized immediately in the consolidated results of operations, along with the offsetting gain or loss related to the underlying hedged item. Gains or losses on derivative financial instruments designated as cash flow hedges are recorded as a separate component of shareholders’ equity from inception of the hedges to their settlement, at which time gains or losses are reclassified to the Consolidated Results of Operations in conjunction with the recognition of the underlying hedged item. In the normal course of business, Sysco enters into forward purchase agreements for the procurement of fuel and electricity. Certain of these agreements meet the definition of a derivative. However, the company elected to use the normal purchase and sale exemption available under derivatives accounting literature; therefore, these agreements are not recorded at fair value. Investments in Corporate-Owned Life Insurance Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses. The company does not record deferred tax balances related to cash surrender value gains or losses for the policies that Sysco has the ability and intent to hold to maturity. Deferred tax balances are recorded for those policies that Sysco intends to redeem prior to maturity. The total amounts related to the company’s investments in COLI policies included in other assets in the consolidated balance sheets were $162.8 million and $161.9 million at June 27, 2015 and June 28, 2014 , respectively. Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. Foreign Currency Translation The assets and liabilities of all foreign subsidiaries are translated at current exchange rates. Related translation adjustments are recorded as a component of accumulated other comprehensive income (loss). Revenue Recognition The company recognizes revenue from the sale of a product when it is considered to be realized or realizable and earned. The company determines these requirements to be met at the point at which the product is delivered to the customer. 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. Sales tax collected from customers is not included in revenue but rather recorded as a liability due to the respective taxing authorities. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are considered to be a single nonmonetary transaction. As such, the company records the net effect of such transactions in the consolidated results of operations within sales. Vendor Consideration Sysco recognizes consideration received from vendors when the services performed in connection with the monies received are completed and when the related product has been sold by Sysco as a reduction to cost of sales. There are several types of cash consideration received from vendors. In many instances, the vendor consideration is in the form of a specified amount per case or per pound. In these instances, Sysco will recognize the vendor consideration as a reduction of cost of sales when the product is sold. In the situations in which the vendor consideration is not related directly to specific product purchases, Sysco will recognize these as a reduction of cost of sales when the earnings process is complete, the related service is performed and the amounts are realized. Shipping and Handling Costs Shipping and handling costs include costs associated with the selection of products and delivery to customers. Included in operating expenses are shipping and handling costs of approximately $2.6 billion in fiscal 2015 , $2.6 billion in fiscal 2014 and $2.5 billion in fiscal 2013 . Insurance Program Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. Liabilities associated with these risks are estimated in part by considering historical claims experience, medical cost trends, demographic factors, severity factors and other actuarial assumptions. Share-Based Compensation Sysco recognizes expense for its share-based compensation based on the fair value of the awards that are granted. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company’s stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. Cash flows resulting from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows on the consolidated cash flows statements. Income Taxes Sysco recognizes deferred tax assets and liabilities based on the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Sysco recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. The amount recognized is measured as the largest amount of tax benefit that has greater than a 50% likelihood of being realized upon settlement. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, estimated amounts required by the accounting guidance related to uncertain tax positions have been accrued and are classified as a component of income taxes in the consolidated results of operations. The determination of the company’s provision for income taxes requires significant judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes primarily reflects a combination of income earned and taxed in the various U.S. federal and state, as well as various foreign jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. The balances included in the consolidated balance sheets related to recent acquisitions are based upon preliminary information and are subject to change when final asset and liability valuations are obtained. Subsequent changes to the preliminary balances are reflected retrospectively, if material. Material changes to the preliminary allocations are not anticipated by management. Noncontrolling interest In fiscal 2015, Sysco acquired a 50% interest in a foodservice company in Costa Rica. It was determined that consolidation of the entity was appropriate and, therefore, the financial position, results of operations and cash flows for this company have been included in Sysco’s financial statements. The value of the 50% noncontrolling interest is considered redeemable due to certain features of the investment agreement and has been presented as mezzanine equity, which is outside of permanent equity, in the consolidated balance sheets. The income attributable to the noncontrolling interest is located within other expense (income), net in the consolidated results of operations, as this amount is not material. The non-cash add back for the change in the value of the noncontrolling interest is located within Other non-cash items on the consolidated cash flows. |
Changes in Accounting
Changes in Accounting | 12 Months Ended |
Jun. 27, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting | CHANGES IN ACCOUNTING Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This update amends ASC 740, “Income Taxes,” to require that in certain cases, an unrecognized tax benefit, or portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when such items exist in the same taxing jurisdiction. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, which was fiscal 2015 for Sysco. The company’s adoption of this guidance did not have a material impact on the company’s balance sheets, results of operations or cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. We adopted this standard for the fiscal year ended June 27, 2015 . Although the new guidance had no impact on the company’s results of operations, the debt issuance costs presented as assets within the company’s consolidated balance sheet as of June 28, 2014 , of $26.8 million has been reclassified as reductions of the related debt liability as a result of early adoption. Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets In April 2015, the FASB issued ASU 2015-04, "Compensation-Retirement Benefits (Topic 715), Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets." The amendments in this ASU provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. Sysco early adopted this standard in fiscal 2015 using a June 30th measurement date as a practical expedient. The adoption did not have a material impact on the financial position of Sysco. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Jun. 27, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update amends ASC 205, “Presentation of Financial Statements,” and ASC 360, “Property, Plant, and Equipment,” primarily to change the criteria for when a disposal is required to be reported as a discontinued operation. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the entity’s operations or financial results. The amendments in this update specify presentation and disclosure requirements for discontinued operations as well as disclosure requirements for other disposals that do not qualify as discontinued operations. The amendments in this update are effective for all disposals or classifications as held for sale, including upon acquisition, of a component of an entity that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years, which is fiscal 2016 for Sysco. Early adoption is permitted. Sysco will implement on any related transactions, prospectively. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This update creates ASC 606, “Revenue from Contracts with Customers,” and supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” Additionally, other sections of the ASC were amended to be consistent with the guidance in this update. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. A five-step revenue recognition model is to be applied to achieve this core principle. ASC 606 also specifies comprehensive disclosures to help users of financial statements understand the nature, amount, timing and uncertainty of revenue that is recognized. The amendments in this update are effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period, which is fiscal 2019 for Sysco. Early adoption is not permitted. Sysco is currently evaluating the impact this update will have on its financial statements. Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern." This ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for fiscal years—and interim periods within those fiscal years—beginning after December 15, 2016, with early adoption permitted. The Company is currently reviewing the provisions of the new standard and whether it will early adopt. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 27, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During fiscal 2015 , in the aggregate, the company paid cash of $115.9 million , net of cash acquired, for acquisitions made during fiscal 2015 and for contingent consideration related to acquisitions made in previous fiscal years. During fiscal 2015 , Sysco acquired for cash a broadline company in Ontario, Canada; a joint venture interest in a foodservice distribution company in Mexico; a joint venture interest in a foodservice distribution company in Costa Rica and a specialty seafood company in New Jersey. The fiscal 2015 acquisitions were immaterial, individually and in the aggregate, to the consolidated financial statements. Certain acquisitions involve contingent consideration that may include earnout agreements that are typically payable over periods of up to three years only in the event that certain operating results are attained. As of June 27, 2015 , aggregate contingent consideration amounts outstanding relating to completed acquisitions were $39.0 million , of which $29.4 million was recorded as earnout liabilities as of June 27, 2015 . In the second quarter of fiscal 2014, the company announced an agreement to merge with US Foods, Inc. (US Foods). In February 2015, following completion of its regulatory review of the proposed merger, the US Federal Trade Commission (FTC) filed a motion with the U.S. District Court for the District of Columbia (the Court) seeking a preliminary injunction to prevent the parties from closing the merger, which the Court granted on June 23, 2015. On June 26, 2015, the parties terminated the merger agreement, as a result of which Sysco was obligated to pay $300 million to the owners of US Foods. During the review period with the FTC, Sysco created a divestiture package, comprised of the sale of 11 US Foods facilities to Performance Food Group (PFG), which was contingent on the closing of the merger. This divestiture agreement entitled PFG to receive a $25 million termination fee if the sale of the divestiture package was terminated before July 6, 2015, with each of Sysco and US Foods responsible for one half of the applicable fee. Sysco accrued for termination payments totaling $312.5 million in fiscal 2015 and paid these amounts in fiscal 2016 . At the time of the merger announcement, Sysco secured a fully committed bridge financing that could be used for funding a portion of the purchase price. In contemplation of issuing long-term financing for this proposed merger, in January 2014, the company entered into two forward starting swap agreements with notional amounts totaling $2 billion to reduce interest rate exposure on 10 -year and 30 -year debt that was anticipated to be issued. In October 2014, Sysco obtained long-term financing for this proposed merger by completing a six-part senior notes offering totaling $5 billion . At the same time, (i) the bridge financing was terminated and (ii) the forward starting interest rate swaps were terminated and cash settlement of these swaps was made. Concurrent with the issuance of the new senior notes, Sysco entered into new interest rate swap agreements that effectively converted two series of the senior notes totaling $1.25 billion to floating rate debt. These swaps were designated as fair value hedges. These senior notes contained mandatory redemption features providing that, on the earlier of the merger agreement termination date or October 8, 2015 , the company was required to redeem all of the senior notes at a redemption price equal to 101% of the principal of the senior notes plus accrued interest. These notes were redeemed in July 2015. Detailed discussion of these transactions is located in Note 9, "Derivative Financial Instruments", and Note 11, "Debt and Other Financing Arrangements." |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as 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 (i.e., an exit price). The accounting guidance includes 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 – Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and • Level 3 – Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk. Sysco’s policy is to invest in only high-quality investments. Cash equivalents primarily include time deposits, certificates of deposit, commercial paper, high-quality money market funds and all highly liquid instruments with original maturities of three months or less. Restricted cash consists of investments in high-quality money market funds. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value. • Time deposits and commercial paper included in cash equivalents are valued at amortized cost, which approximates fair value due to the short-term maturities of these instruments. These are included within cash equivalents as a Level 2 measurement in the tables below. • Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents and restricted cash as Level 1 measurements in the tables below. • The interest rate swap agreements, discussed further in Note 9, “Derivative Financial Instruments,” are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. These are included within other assets and accrued expenses as Level 2 measurements in the tables below. The following tables present the company’s assets and liabilities measured at fair value on a recurring basis as of June 27, 2015 and June 28, 2014 : Assets and Liabilities Measured at Fair Value as of June 27, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 4,677,735 $ 63,689 $ — $ 4,741,424 Restricted cash 168,274 — — 168,274 Other assets Interest rate swap agreements — 12,597 — 12,597 Total assets at fair value $ 4,846,009 $ 76,286 $ — $ 4,922,295 Liabilities: Current portion of long-term debt $ — $ 1,257,127 $ — $ 1,257,127 Long-term debt — $ 503,379 $ — $ 503,379 Total liabilities at fair value $ — $ 1,760,506 $ — $ 1,760,506 Assets and Liabilities Measured at Fair Value as of June 28, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 2,770 $ 131,966 $ — $ 134,736 Restricted cash 145,412 — — 145,412 Other assets Interest rate swap agreement — 4,828 — 4,828 Total assets at fair value $ 148,182 $ 136,794 $ — $ 284,976 Liabilities: Accrued expenses Interest rate swap agreements $ — $ 133,466 $ — $ 133,466 Total liabilities at fair value $ — $ 133,466 $ — $ 133,466 The carrying values of accounts receivable and accounts payable approximated their respective fair values due to the short-term maturities of these instruments. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issue or on the current rates offered to the company for debt of the same remaining maturities and is considered a Level 2 measurement. The fair value of total debt approximated $7.6 billion and $3.0 billion as of June 27, 2015 and June 28, 2014 , respectively. The carrying value of total debt was $7.3 billion and $2.7 billion as of June 27, 2015 and June 28, 2014 , respectively. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Jun. 27, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Doubtful Accounts | ALLOWANCE FOR DOUBTFUL ACCOUNTS A summary of the activity in the allowance for doubtful accounts appears below: 2015 2014 2013 (In thousands) Balance at beginning of period $ 49,902 $ 47,345 $ 42,919 Charged to costs and expenses 17,996 34,429 35,243 Customer accounts written off, net of recoveries (25,719 ) (31,721 ) (30,824 ) Other adjustments (459 ) (151 ) 7 Balance at end of period $ 41,720 $ 49,902 $ 47,345 |
Plant and Equipment
Plant and Equipment | 12 Months Ended |
Jun. 27, 2015 | |
Property, Plant and Equipment [Abstract] | |
Plant and Equipment | PLANT AND EQUIPMENT A summary of plant and equipment, including the related accumulated depreciation, appears below: June 27, 2015 June 28, 2014 Estimated Useful Lives (In thousands) Plant and equipment at cost: Land $ 441,939 $ 431,694 Buildings and improvements 3,877,817 3,816,387 10-30 years Fleet and equipment 2,836,554 2,726,415 3-10 years Computer hardware and software 1,234,138 1,109,379 3-7 years Total plant and equipment at cost 8,390,448 8,083,875 Accumulated depreciation (4,408,305 ) (4,098,257 ) Total plant and equipment, net $ 3,982,143 $ 3,985,618 The capitalized direct costs for the internal use software portion of the company’s Enterprise Resource Planning system are included within “computer hardware and software” in the table above in the amount of $293.8 million and $355.2 million , net of accumulated amortization, as of June 27, 2015 and June 28, 2014 , respectively. The majority of this internal use software was placed into service and began amortization in August of fiscal 2013. Depreciation expense, including amortization of capital leases, for the past three years was $495.8 million in 2015 , $493.8 million in 2014 and $473.5 million in 2013 . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Jun. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows: Broadline SYGMA Other Total (In thousands) Carrying amount as of June 29, 2013 $ 1,123,419 $ 32,609 $ 728,207 $ 1,884,235 Goodwill acquired during year 48,425 — 14,408 62,833 Currency translation/other 3,649 — (45 ) 3,604 Carrying amount as of June 28, 2014 1,175,493 32,609 742,570 1,950,672 Goodwill acquired during year 79,802 — 8,408 88,210 Currency translation/other (78,524 ) — (541 ) (79,065 ) Carrying amount as of June 27, 2015 $ 1,176,771 $ 32,609 $ 750,437 $ 1,959,817 Amortizable intangible assets acquired during fiscal 2015 were $27.7 million with a weighted-average amortization period of 7.9 years . By intangible asset category, the amortizable intangible assets acquired during fiscal 2015 were customer relationships of $19.5 million with a weighted-average amortization period of 9.4 years , non-compete agreements of $4.3 million with a weighted-average amortization period of 4.6 years and other intangibles of $3.9 million with a weighted-average amortization period of 4.0 years . The following table presents details of the company’s amortizable intangible assets: June 27, 2015 June 28, 2014 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Customer relationships $ 236,916 $ (130,506 ) $ 106,410 $ 246,019 $ (124,223 ) $ 121,796 Non-compete agreements 33,436 (14,525 ) 18,911 33,164 (10,629 ) 22,535 Trademarks 10,768 (4,117 ) 6,651 12,063 (3,200 ) 8,863 Other 13,437 (4,871 ) 8,566 13,498 (2,070 ) 11,428 Total amortizable intangible assets $ 294,557 $ (154,019 ) $ 140,538 $ 304,744 $ (140,122 ) $ 164,622 Intangible assets that have been fully amortized have been removed in the schedule above in the period full amortization is reached. The following table presents details of the company’s indefinite-lived intangible assets: June 27, 2015 June 28, 2014 (In thousands) Trademarks $ 13,304 $ 11,639 Licenses 966 966 Total indefinite-lived intangible assets $ 14,271 $ 12,605 Amortization expense for the past three years was $40.0 million in 2015 , $42.2 million in 2014 and $32.1 million in 2013 . The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 27, 2015 is shown below: Amount (In thousands) 2016 $ 33,570 2017 29,264 2018 26,162 2019 16,245 2020 12,215 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jun. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Sysco manages its debt portfolio to achieve an overall desired position of fixed and floating rates and may employ interest rate swaps from time to time to achieve this position. The company does not use derivative financial instruments for trading or speculative purposes. In fiscal 2014, the company entered into an interest rate swap agreement that effectively converted $500 million of fixed rate debt maturing in fiscal 2018 to floating rate debt. In October 2014, Sysco obtained long-term financing for the proposed US Foods merger by completing a six-part senior notes offering totaling $5 billion . At the same time of these note issuances, the company entered into interest rate swap agreements that effectively converted $500 million of senior notes maturing in fiscal 2018 and $750 million of senior notes maturing in fiscal 2020 to floating rate debt. These are collectively referred to as the 2015 swaps. See Note 11, "Debt and Other Financing Arrangements," for further discussion of the senior notes issuance. These transactions were designated as fair value hedges against the changes in fair value of fixed rate debt resulting from changes in interest rates. Subsequent to fiscal 2015, we terminated our 2015 swaps in connection with the redemption of the senior notes. In January 2014, the company entered into two forward starting swap agreements with notional amounts totaling $2.0 billion in contemplation of securing long-term financing for the proposed US Foods merger or for other long-term financing purposes in the event the merger did not occur. The company designated these derivatives as cash flow hedges to reduce interest rate exposure on forecasted 10 -year and 30 -year debt due to changes in the benchmark interest rates for debt the company issued in fiscal 2015. In September 2014, in conjunction with the pricing of the $1.25 billion senior notes maturing in fiscal 2025 and the $1 billion senior notes maturing in fiscal 2045, the company terminated these swaps, locking in the effective yields on the related debt. Cash of $58.9 million was paid to settle the 10 -year swap in September 2014, and cash of $129.9 million was paid to settle the 30 -year swap in October 2014. The cash payments are located within the line Cash paid for settlement of cash flow hedge within financing activities in the statement of consolidated cash flows. The cumulative losses recorded in Accumulated other comprehensive (loss) income related to these swaps will continue to be amortized through interest expense over the term of the originally issued debt as the amount hedged is anticipated to remain within our capital structure. In August 2015, the company entered into two forward starting swap agreements with notional amounts totaling $500 million . The company designated these derivatives as cash flow hedges to reduce interest rate exposure on forecasted 10 -year debt due to changes in the benchmark interest rates for debt the company expects to issue in fiscal 2016. The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of each fiscal year-end are as follows: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swap agreements: June 27, 2015 Other assets $ 12,597 Accrued expenses $ — June 28, 2014 Other assets 4,828 Accrued expenses 133,466 The location and effect of derivative instruments and related hedged items on the consolidated comprehensive income for each fiscal year presented on a pretax basis are as follows: Amount of (Gain) or Loss Recognized in Comprehensive Income Location of (Gain) or Loss Recognized in Comprehensive Income 2015 2014 2013 (In thousands) Fair Value Hedge Relationships: Interest rate swap agreements Interest expense $ (21,960 ) $ (10,879 ) $ (4,492 ) Cash Flow Hedge Relationships: Forward starting interest rate swap agreements Other comprehensive income — $ 133,466 N/A Forward starting interest rate swap agreements (1) Interest expense 8,305 625 626 (1) Represents amortization of losses on forward starting interest rate swap agreements that were previously settled. Hedge ineffectiveness represents the difference between the changes in the fair value of the derivative instruments and the changes in fair value of the fixed rate debt attributable to changes in the benchmark interest rates. Hedge ineffectiveness is recorded directly in earnings within interest expense and was immaterial for fiscal 2015 , fiscal 2014 and fiscal 2013 . The interest rate swaps do not contain credit-risk-related contingent features. |
Self-Insured Liabilities
Self-Insured Liabilities | 12 Months Ended |
Jun. 27, 2015 | |
Loss Contingency [Abstract] | |
Self-Insured Liabilities | SELF-INSURED LIABILITIES Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. A summary of the activity in self-insured liabilities appears below: 2015 2014 2013 (In thousands) Balance at beginning of period $ 194,476 $ 147,598 $ 129,749 Charged to costs and expenses 367,025 375,267 352,374 Payments (368,189 ) (328,389 ) (334,525 ) Balance at end of period $ 193,312 $ 194,476 $ 147,598 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 12 Months Ended |
Jun. 27, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | DEBT AND OTHER FINANCING ARRANGEMENTS Sysco’s debt consists of the following: June 27, 2015 June 28, 2014 (In thousands) Commercial paper, interest averaging 0.2% as of June 28, 2014 $ — $ 129,999 Senior notes, interest at 0.55%, maturing in fiscal 2015 — 299,015 Senior notes, interest at 5.25%, maturing in fiscal 2018 (1) 502,608 502,521 Senior notes, interest at 5.375%, maturing in fiscal 2019 (1) 248,824 248,509 Senior notes, interest at 2.6%, maturing in fiscal 2022 (1) 444,212 443,384 Debentures, interest at 7.16%, maturing in fiscal 2027 (2) 50,000 50,000 Debentures, interest at 6.5%, maturing in fiscal 2029 (1) 223,610 223,505 Senior notes, interest at 5.375%, maturing in fiscal 2036 (1) 496,775 495,636 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1) 244,415 244,180 Senior notes, interest at 1.45%, maturing in fiscal 2018 (1), (3) 500,801 — Senior notes, interest at 2.35% maturing in fiscal 2020 (1), (3) 752,070 — Senior notes, interest at 3.00% , maturing in fiscal 2022 (1), (3) 745,136 — Senior notes, interest at 3.50% , maturing in fiscal 2025 (1), (3) 1,239,116 — Senior notes, interest at 4.35%, maturing in fiscal 2035 (1), (3) 742,664 — Senior notes, interest at 4.50%, maturing in fiscal 2045 (1), (3) 981,813 — Notes payable, capital leases, and other debt, interest averaging 2.81% and maturing at various dates to fiscal 2026 as of June 27, 2015 and 2.59% and maturing at various dates to fiscal 2029 as of June 28, 2014 149,833 96,333 Total debt 7,321,877 2,733,082 Less current maturities of long-term debt (4,979,301 ) (304,777 ) Less notes payable (70,751 ) (70,975 ) Net long-term debt $ 2,271,825 $ 2,357,330 (1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption. (2) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. (3) Represents senior notes that were redeemed in July 2015 under a mandatory redemption feature. As of June 27, 2015 , the principal payments required to be made during the next five fiscal years on long-term debt, excluding notes payable and commercial paper, are shown below: Amount (In thousands) 2016 $ 5,007,943 2017 29,140 2018 506,694 2019 269,532 2020 3,387 Commercial Paper and Revolving Credit Facility Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $1.5 billion . Sysco and one of its subsidiaries, Sysco International, ULC, have a revolving credit facility supporting the company’s U.S. and Canadian commercial paper programs. The facility provides for borrowings in both U.S. and Canadian dollars. Borrowings by Sysco International, ULC under the agreement are guaranteed by Sysco, and borrowings by Sysco and Sysco International, ULC under the credit agreement are guaranteed by the wholly-owned subsidiaries of Sysco that are guarantors of the company’s senior notes and debentures. The facility, in the amount of $1.5 billion , expires on December 29, 2018 , but is subject to extension. As of June 27, 2015 , there were no commercial paper issuances outstanding. In periods where Sysco has commercial paper borrowings, the amounts are classified within long-term debt, as the program is supported by long-term revolving credit facility described above. During fiscal 2015 , 2014 , and 2013 , aggregate outstanding commercial paper issuances ranged from approximately zero to $659.4 million , zero to $770.5 million , and zero to $330.0 million , respectively. Fixed Rate Debt In February 2013, Sysco repaid 4.2% senior notes totaling $250.0 million at maturity utilizing a combination of cash flow from operations and cash on hand. In March 2014, Sysco repaid 4.6% senior notes totaling $200.0 million at maturity utilizing a combination of cash flow from operations and commercial paper issuances. In June 2015, Sysco repaid 0.55% senior notes totaling $300.0 million at maturity utilizing a combination of cash flow from operations and cash on hand. In October 2014, Sysco issued senior notes and terminated a previously outstanding unsecured bridge facility that was established in December 2013 as a potential financing mechanism for funding the proposed US Foods merger until longer-term funding could be obtained. The senior notes, issued under the company’s previous February 2012 registration statement, were unsecured, were not subject to any sinking fund requirement and included a redemption provision that allowed Sysco to retire the notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the note holders are not penalized by early redemption. These senior notes contained mandatory redemption features providing that, on the earlier of the merger agreement termination date or October 8, 2015 , Sysco was required to redeem all of the senior notes at a redemption price equal to 101% of the principal of the senior notes plus accrued interest. In June 2015, we terminated the merger agreement, and we redeemed the senior notes in July 2015 using cash on hand and the proceeds from borrowings under our commercial paper program. The senior notes were classified as current maturities of long-term debt as of June 27, 2015. Details of the senior notes are below: Maturity Date Par Value (in millions) Coupon Rate Pricing (percentage of par) October 2, 2017 $ 500 1.45 % 99.962 % October 2, 2019 750 2.35 99.864 October 2, 2021 750 3.00 99.781 October 2, 2024 1,250 3.50 99.616 October 2, 2034 750 4.35 99.841 October 2, 2044 1,000 4.50 98.992 T otal Debt Total debt as of June 27, 2015 was $7.3 billion , of which approximately 74% was at fixed rates with a weighted average of 4.3% and an average life of 4.37 years, and the remainder was at floating rates with a weighted average of 2.9% and an average life of 0.84 years. Certain loan agreements contain typical debt covenants to protect note holders, including provisions to maintain the company’s long-term debt to total capital ratio below a specified level. Sysco is currently in compliance with all debt covenants. Other As of June 27, 2015 and June 28, 2014 , letters of credit outstanding were $101.0 million and $45.7 million , respectively. |
Leases
Leases | 12 Months Ended |
Jun. 27, 2015 | |
Leases [Abstract] | |
Leases | LEASES Sysco has obligations under capital and operating leases for certain distribution facilities, vehicles and computers. Total rental expense under operating leases was $104.3 million , $92.3 million , and $84.4 million in fiscal 2015 , 2014 and 2013 , respectively. Contingent rentals, subleases and assets and obligations under capital leases are not significant. Aggregate minimum lease payments by fiscal year under existing long-term operating leases are as follows: Amount (In thousands) 2016 $ 47,559 2017 38,183 2018 27,831 2019 20,320 2020 16,661 Thereafter 45,670 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Jun. 27, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES The following table presents details of the company’s other long-term liabilities: June 27, 2015 June 28, 2014 (In thousands) Retirement Plan $ 227,352 $ 270,189 Supplemental executive retirement plan 420,704 438,288 Other 286,666 319,401 Total $ 934,722 $ 1,027,878 |
Company-Sponsored Employee Bene
Company-Sponsored Employee Benefit Plans | 12 Months Ended |
Jun. 27, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Company-Sponsored Employee Benefit Plans | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. Defined Contribution Plans In December 2012, the company amended its defined contribution 401(k) Plan to be a Safe Harbor Plan, a plan that treats all employees’ benefits equally within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose unions adopted the Safe Harbor Plan provisions. Effective January 1, 2013, the new Safe Harbor Plan provides that the company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pre-tax contribution on the first 5% of the participant’s compensation contributed by the participant. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan provides that under certain circumstances the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. Prior to the adoption of the Safe Harbor Plan in January 2013, the company’s defined contribution 401(k) plan provided that, under certain circumstances, the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. The company also has a nonqualified, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the Management Incentive Plan. Participants may defer up to 50% of their annual salary and up to 100% of their annual bonus. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pre-tax contribution on the first 5% of the participant’s eligible compensation that is deferred. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts contributed by the company to the participant’s 401(k) account. Sysco’s expense related to its defined contribution plans was $125.4 million in fiscal 2015 , $118.6 million in fiscal 2014 , and $65.3 million in fiscal 2013 . Defined Benefit Plans Sysco maintains a qualified pension plan (Retirement Plan) that pays benefits to participating employees at retirement, using formulas based on a participant’s years of service and compensation. During fiscal 2012, Sysco approved a plan to freeze future benefit accruals under the Retirement Plan as of December 31, 2012 for all U.S.-based salaried and non-union hourly employees. Effective January 1, 2013, these employees were eligible for additional contributions under the company’s defined contribution 401(k) plan. In addition to receiving benefits upon retirement under the company’s Retirement Plan, certain key management personnel who were participants in the Management Incentive Plan are entitled to receive benefits under a Supplemental Executive Retirement Plan (SERP). This plan is a nonqualified, unfunded supplementary retirement plan. In November 2012, Sysco approved a plan to restructure its executive nonqualified retirement program including the SERP. Future benefit accruals have been frozen under this plan as of June 29, 2013, for all participants. Also, the company provides certain health care benefits to eligible retirees and their dependents. Funded Status Accumulated pension assets measured against the obligation for pension benefits represents the funded status of a given plan. The funded status of Sysco’s company-sponsored defined benefit plans is presented in the table below. The caption “Pension Benefits” in the tables below includes both the Retirement Plan and the SERP. Pension Benefits Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 3,671,708 $ 3,089,022 $ 12,611 $ 14,248 Service cost 11,263 9,657 536 546 Interest cost 171,120 160,436 590 748 Amendments 914 (347 ) — — Actuarial (gain) loss, net (86,129 ) 492,720 (1,050 ) (3,280 ) Total disbursements (89,749 ) (79,780 ) 329 349 Benefit obligation at end of year 3,679,127 3,671,708 13,016 12,611 Change in plan assets: Fair value of plan assets at beginning of year 2,937,519 2,518,009 — — Actual return on plan assets 80,225 474,538 — — Employer contribution 75,133 24,752 (329 ) (349 ) Total disbursements (89,749 ) (79,780 ) 329 349 Fair value of plan assets at end of year 3,003,128 2,937,519 — — Funded status at end of year $ (675,999 ) $ (734,189 ) $ (13,016 ) $ (12,611 ) In order to meet a portion of its obligations under the SERP, Sysco has contributed to a rabbi trust, COLI policies on the lives of participants and interests in corporate-owned real estate assets. These assets are not included as plan assets or in the funded status amounts in the tables above and below. As they are held in a rabbi trust, these assets are available to satisfy the claims of the company’s creditors in the event of bankruptcy or insolvency of the company. The life insurance policies on the lives of the participants had carrying values of $97.2 million as of June 27, 2015 and $96.5 million as of June 28, 2014 . Sysco is the sole owner and beneficiary of such policies. The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: Pension Benefits Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Current accrued benefit liability (Accrued expenses) $ (27,942 ) $ (25,712 ) $ (327 ) $ (313 ) Non-current accrued benefit liability (Other long-term liabilities) (648,057 ) (708,477 ) (12,689 ) (12,298 ) Net amount recognized $ (675,999 ) $ (734,189 ) $ (13,016 ) $ (12,611 ) Accumulated other comprehensive loss (income) as of June 27, 2015 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: Pension Benefits Other Postretirement Plans Total (In thousands) Prior service cost $ 50,109 $ 730 $ 50,839 Actuarial losses (gains) 1,101,051 (6,903 ) 1,094,148 Total $ 1,151,160 $ (6,173 ) $ 1,144,987 Accumulated other comprehensive loss (income) as of June 28, 2014 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: Pension Benefits Other Postretirement Plans Total (In thousands) Prior service cost $ 60,306 $ 898 $ 61,204 Actuarial losses (gains) 1,058,651 (6,287 ) 1,052,364 Total $ 1,118,957 $ (5,389 ) $ 1,113,568 The accumulated benefit obligation, which does not consider any salary increases for the remaining active union employees in the Retirement Plan, for the company-sponsored defined benefit pension plans was $3.7 billion and $3.7 billion as of June 27, 2015 and June 28, 2014 , respectively. Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: Pension Benefits (1) Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 3,667,031 $ 3,660,227 $ 13,016 $ 12,611 Fair value of plan assets at end of year 3,003,128 2,937,519 — — (1) Information under Pension Benefits as of June 27, 2015 and June 28, 2014 includes both the Retirement Plan and the SERP. Components of Net Benefit Costs and Other Comprehensive Income The components of net company-sponsored pension costs for each fiscal year are as follows: Pension Benefits 2015 2014 2013 (In thousands) Service cost $ 11,263 $ 9,657 $ 70,166 Interest cost 171,120 160,436 148,561 Expected return on plan assets (228,624 ) (192,795 ) (171,201 ) Amortization of prior service cost 11,111 11,145 9,899 Amortization of actuarial loss 19,871 16,327 72,624 Curtailment loss — — 8,293 Net pension (benefits) costs $ (15,259 ) $ 4,770 $ 138,342 The components of other postretirement benefit costs for each fiscal year are as follows: Other Postretirement Plans 2015 2014 2013 (In thousands) Service cost $ 536 $ 546 $ 541 Interest cost 590 748 614 Amortization of prior service cost 168 168 168 Amortization of actuarial gain (434 ) (143 ) (203 ) Amortization of transition obligation — — 141 Net other postretirement benefit costs $ 860 $ 1,319 $ 1,261 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: Pension Benefits 2015 2014 2013 (In thousands) Amortization of prior service cost $ 11,111 $ 11,145 $ 18,192 Amortization of actuarial loss 19,871 16,327 72,624 Prior service cost arising in current year (914 ) 347 (53,902 ) Actuarial (loss) gain arising in current year (62,270 ) (210,978 ) 366,957 Net pension costs $ (32,202 ) $ (183,159 ) $ 403,871 Other changes in benefit obligations recognized in other comprehensive (loss) income related to other postretirement plans for each fiscal year are as follows: Other Postretirement Plans 2015 2014 2013 (In thousands) Amortization of prior service cost $ 168 $ 168 $ 168 Amortization of actuarial gain (434 ) (143 ) (203 ) Amortization of transition obligation — — 141 Actuarial (loss) gain arising in current year 1,050 3,280 (188 ) Net pension costs $ 784 $ 3,305 $ (82 ) Amounts included in accumulated other comprehensive loss (income) as of June 27, 2015 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2016 are: Pension Benefits Other Postretirement Plans Total (In thousands) Amortization of prior service cost $ 11,202 $ 169 $ 11,371 Amortization of actuarial losses (gains) 22,186 (481 ) 21,705 Total $ 33,388 $ (312 ) $ 33,076 Employer Contributions The company made cash contributions to its company-sponsored pension plans of $75.1 million and $24.8 million in fiscal years 2015 and 2014 , respectively. There were no required contributions to the Retirement Plan to meet ERISA minimum funding requirements in fiscal 2015 . The $50 million contribution to the Retirement Plan in fiscal 2015 was voluntary, as there were no required contributions to meet ERISA minimum funding requirements in fiscal 2015 . There are no required contributions to the Retirement Plan to meet ERISA minimum funding requirements in fiscal 2016 . The company’s contributions to the SERP and other post-retirement plans are made in the amounts needed to fund current year benefit payments. The estimated fiscal 2016 contributions to fund benefit payments for the SERP and other postretirement plans are $27.9 million and $0.3 million , respectively. Estimated Future Benefit Payments Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: Pension Benefits Other Postretirement Plans (In thousands) 2016 $ 105,555 $ 327 2017 115,844 546 2018 126,413 824 2019 137,300 1,035 2020 148,517 1,213 Subsequent five years 906,784 6,658 Assumptions Weighted-average assumptions used to determine benefit obligations as of year-end were: June 27, 2015 June 28, 2014 Discount rate — Retirement Plan 4.84 % 4.74 % Discount rate — SERP 4.63 4.59 Discount rate — Other Postretirement Plans 4.84 4.74 Rate of compensation increase — Retirement Plan 3.89 3.89 As benefit accruals under the SERP were frozen as of June 29, 2013, due to the plan freeze discussed above, future pay is not projected in the determination of the benefit obligation as of June 27, 2015 or June 28, 2014. Weighted-average assumptions used to determine net company-sponsored pension costs and other postretirement benefit costs for each fiscal year were: 2015 2014 2013 Discount rate — Retirement Plan 4.74 % 5.32 % 4.81 % Discount rate — SERP 4.59 % 4.94 % 3.96 % (1) Discount rate — Other Postretirement Plans 4.74 % 5.32 % 4.81 % Expected rate of return — Retirement Plan 7.75 % 7.75 % 7.75 % Rate of compensation increase — Retirement Plan 3.89 % 3.89 % 5.30 % (1) The SERP was remeasured in November 2012 as a result of the plan freeze discussed above. The rate in the table above reflects the discount rate as of this remeasurement. As benefit accruals under the SERP were frozen as of June 29, 2013, due to the plan freeze discussed above, future pay is not projected in the determination of net pension costs related to the SERP for fiscal 2015 and fiscal 2014. For determining the net pension costs related to the SERP for fiscal 2013, the SERP calculations utilized an age-graded salary growth assumption. A healthcare cost trend rate is not used in the calculations of postretirement benefit obligations because Sysco subsidizes the cost of postretirement medical coverage by a fixed dollar amount, with the retiree responsible for the cost of coverage in excess of the subsidy, including all future cost increases. For guidance in determining the discount rate, Sysco calculates the implied rate of return on a hypothetical portfolio of high-quality fixed-income investments for which the timing and amount of cash outflows approximates the estimated payouts of the company-sponsored pension plans. The discount rate assumption is updated annually and revised as deemed appropriate. The discount rate to be used for the calculation of fiscal 2016 net company-sponsored benefit costs for the Retirement Plan is 4.84% . The discount rate to be used for the calculation of fiscal 2016 net company-sponsored benefit costs for the SERP is 4.63% . The discount rate to be used for the calculation of fiscal 2016 net company-sponsored benefit costs for the Other Postretirement Plans is 4.84% . The expected long-term rate of return on plan assets assumption is net return on assets assumption, representing gross return on assets less plan expenses. The expected return is derived from a mathematical asset model that incorporates assumptions as to the various asset class returns, reflecting a combination of rigorous historical performance analysis and the forward-looking views of the financial markets regarding the yield on bonds, the historical returns of the major stock markets and returns on alternative investments. The rate of return assumption is reviewed annually and revised as deemed appropriate. The expected long-term rate of return to be used in the calculation of fiscal 2016 net company-sponsored benefit costs for the Retirement Plan is 7.25% . Plan Assets Investment Strategy The company’s overall strategic investment objectives for the Retirement Plan are to preserve capital for future benefit payments and to balance risk and return commensurate with ongoing changes in the valuation of plan liabilities. Over time, the company intends to decrease the risk of the Retirement Plan’s investments in order to preserve the Retirement Plan’s funded status. In order to accomplish these objectives, the company oversees the Retirement Plan’s investment objectives and policy design, decides proper plan asset class strategies and structures, monitors the performance of plan investment managers and investment funds and determines the proper investment allocation of pension plan contributions and withdrawals. The company has created an investment structure for the Retirement Plan that takes into account the nature of the Retirement Plan’s liabilities. This structure ensures the Retirement Plan’s investments are diversified within each asset class, in addition to being diversified across asset classes with the intent to build asset class portfolios that are structured without strategic bias for or against any subcategories within each asset class. The company has also created a set of investment guidelines for the Retirement Plan’s investment managers to specify prohibited transactions, including borrowing of money except for real estate, private equity or hedge fund portfolios where leverage is a key component of the investment strategy and permitted in the investments’ governing documents, the purchase of securities on margin unless fully collateralized by cash or cash equivalents or short sales, pledging, mortgaging or hypothecating of any securities, except for loans of securities that are fully collateralized, market timing transactions and the direct purchase of the securities of Sysco or the investment manager. The purchase or sale of derivatives for speculation or leverage is also prohibited; however, investment managers are allowed to use derivative securities so long as they do not increase the risk profile or leverage of the manager’s portfolio. The company’s target and actual investment allocation as of June 27, 2015 is as follows: Target Asset Allocation Actual Asset Allocation U.S. equity 24 % 24 % International equity 24 25 Long duration fixed income 27 26 High yield fixed income 7 7 Alternative investments 18 18 100 % Sysco’s investment strategy is implemented through a combination of balanced and specialized investment managers, passive investment funds and actively-managed investment funds. U.S. equity consists of both large-cap and small-to-mid-cap securities. Long duration fixed income investments include U.S. government and agency securities, corporate bonds from diversified industries, asset-backed securities, mortgage-backed securities, other debt securities and derivative securities. High yield fixed income consists of below investment grade corporate debt securities and may include derivative securities. Alternative investments may include private equity, private real estate, hedge funds, timberland, and commodities investments. Investment funds are selected based on each fund’s stated investment strategy to align with Sysco’s overall target mix of investments. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. As discussed above, the Retirement Plan’s investments in equity, fixed income and alternative investments provide a range of returns and also expose the plan to investment risk. However, the investment policies put in place by the company require diversification of plan assets across issuers, industries and countries. As such, the Retirement Plan does not have significant concentrations of risk in plan assets. Fair Value of Plan Assets Fair value is defined as 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 (i.e. an exit price). See Note 5, “Fair Value Measurements,” for a description of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The following is a description of the valuation methodologies used for assets and liabilities held by Sysco's Retirement Plan measured at fair value. Cash and cash equivalents: Valued at amortized cost, which approximates fair value due to the short-term maturities of these investments. Cash and cash equivalents is included as a Level 2 measurement in the table below. Equity securities: Valued at the closing price reported on the exchange market. If a stock is not listed on a public exchange, such as an American Depository Receipt or some preferred stocks, the stock is valued using an evaluated bid price based on a compilation of observable market information. Inputs used include yields, the underlying security “best price”, adjustments for corporate actions and exchange prices of underlying and common stock of the same issuer. Equity securities valued at the closing price reported on the exchange market are classified as a Level 1 measurement in the table below; all other equity securities are included as a Level 2 measurement. Fixed income securities: Valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. All fixed income securities are included as a Level 2 measurement in the table below. Investment funds: Funds holding debt, equity and exchange-traded real estate securities are valued at the net asset value (NAV) provided by the manager of each fund. The NAV is calculated as the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV is based on the fair value of the underlying securities within the fund. Non-exchange traded real estate funds are valued based on the proportionate interest held by the Retirement Plan, which is based on the valuations of the underlying real estate investments held by each fund. Each real estate investment is valued on the basis of a discounted cash flow approach. Inputs used include future rental receipts, expenses and residual values from a market participant view of the highest and best use of the real estate as rental property. The private equity funds are valued based on the proportionate interest held by the Retirement Plan, which is based on the valuations of the underlying private equity investments held by each fund. The hedge funds are valued based on the hedge funds' proportionate share of the net assets of the underlying private investment fund as determined by the underlying private investment fund's general partner. Indirectly-held investments are valued utilizing the latest financial reports supplied by the fund’s portfolio investments. Directly-held investments are valued initially based on transaction price and are adjusted utilizing available market data and investment-specific factors, such as estimates of liquidation value, prices of recent transactions in the same or similar issuer, current operating performance and future expectations of the particular investment, changes in market outlook and the financing environment. Investment funds holding debt, equity and exchange traded real-estate securities are included as a Level 2 measurement in the table below. The non-exchange traded real estate funds, hedge funds and private equity funds are included as Level 3 measurements. Derivatives: Valuation method varies by type of derivative security. • Credit default and interest rate swaps: Valued using evaluated bid prices based on a compilation of observable market information. Inputs used for credit default swaps include spread curves and trade data about the credit quality of the counterparty. Inputs used for interest rate swaps include benchmark yields, swap curves, cash flow analysis, and interdealer broker rates. Credit default and interest rate swaps are included as a Level 2 measurement in the table below. • Foreign currency contracts: Valued using a standardized interpolation model that utilizes the quoted prices for standard-length forward foreign currency contracts and adjusts to the remaining term outstanding on the contract being valued. Foreign currency contracts are included as a Level 2 measurement in the table below. • Futures and option contracts: Valued at the closing price reported on the exchange market for exchange-traded futures and options. Over-the-counter options are valued using pricing models that are based on observable market information. Exchange-traded futures and options are included as a Level 1 measurement in the table below; over-the-counter options are included as a Level 2 measurement. The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 27, 2015 : Assets Measured at Fair Value as of June 27, 2015 Level 1 Level 2 Level 3 Total (In thousands) Cash and cash equivalents $ — $ 21,968 $ — $ 21,968 U.S. equity: U.S. large-cap (1) 233,525 333,709 — $ 567,234 U.S. small-cap 154,598 — — 154,598 International equity (2) — 732,595 — $ 732,595 Long duration fixed income: Corporate bonds — 567,280 — $ 567,280 U.S. government and agency securities — 190,125 — 190,125 Other — 4,343 — 4,343 Derivatives, net (3) — 1,078 — $ 1,078 High yield fixed income (2) — 204,175 — 204,175 Alternative investments: Hedge Fund (2) — 335,265 335,265 Real estate (2) — 25,386 138,283 163,669 Private equity (2) — — 52,891 $ 52,891 Total investments at fair value $ 388,123 $ 2,080,659 $ 526,439 $ 2,995,221 Other (4) 7,907 Fair value of plan assets at end of year $ 3,003,128 (1) Include direct investments and investment funds. (2) Include investments in investment funds only. (3) Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $1.4 million ; the fair value of liability positions totaled $0.3 million . (4) Include primarily plan receivables and payables, net. The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 28, 2014 : Assets Measured at Fair Value as of June 28, 2014 Level 1 Level 2 Level 3 Total (In thousands) Cash and cash equivalents $ — $ 51,066 $ — $ 51,066 U.S. equity: U.S. large-cap (1) 218,165 777,627 — 995,792 U.S. small-cap 135,781 — — 135,781 International equity (2) — 717,022 — 717,022 Long duration fixed income: Corporate bonds — 568,419 — 568,419 U.S. government and agency securities — 171,617 — 171,617 Other — 4,907 — 4,907 Derivatives, net (3) (127 ) 352 — 225 High yield fixed income (2) — 102,041 — 102,041 Alternative investments: Real estate (2) — 114,250 35,403 149,653 Private equity (2) — — 31,204 31,204 Total investments at fair value $ 353,819 $ 2,507,301 $ 66,607 $ 2,927,727 Other (4) 9,792 Fair value of plan assets at the end of the year $ 2,937,519 (1) Include direct investments and investment funds. (2) Include investments in investment funds only. (3) Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $0.8 million ; the fair value of liability positions totaled $0.6 million . (4) Include primarily plan receivables and payables, net. The following table sets forth a summary of changes in the fair value of the Retirement Plan’s Level 3 assets for each fiscal year: Real Estate Private Equity Funds Hedge Funds Total Level 3 Measurements (In thousands) Balance, June 29, 2013 $ 64,845 $ 14,375 $ — $ 79,220 Actual return on plan assets: Relating to assets still held at the reporting date 3,044 1,931 — 4,975 Relating to assets sold during the period 3,307 1,767 — 5,074 Purchases and sales, net (35,793 ) 13,131 — (22,662 ) Transfers in and/or out of Level 3 — — — — Balance, June 28, 2014 $ 35,403 $ 31,204 $ — $ 66,607 Actual return on plan assets: Relating to assets still held at the reporting date 8,122 2,438 12,265 22,825 Relating to assets sold during the period 1,062 1,780 — 2,842 Purchases and sales, net 93,696 17,469 323,000 434,165 Transfers in and/or out of Level 3 — — — — Balance, June 27, 2015 $ 138,283 $ 52,891 $ 335,265 $ 526,439 MULTIEMPLOYER EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans Sysco contributes to several multiemployer defined benefit pension plans in the U.S. and Canada based on obligations arising under collective bargaining agreements covering union-represented employees. Sysco does not directly manage these multiemployer plans, which are generally managed by boards of trustees, half of whom are appointed by the unions and the other half appointed by Sysco and the other employers contributing to the plan. Approximately 10% of Sysco’s current employees are participants in such multiemployer plans as of June 27, 2015 . The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If Sysco chooses to stop participating in some of its multiemployer plans, Sysco may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Based upon the information available from plan administrators, management believes that several of these multiemployer plans are underfunded. In addition, pension-related legislation in the U.S. requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, Sysco expects its contributions to these plans to increase in the future. In addition, if a U.S. multiemployer defined benefit plan fails to satisfy certain minimum funding requirements, the Internal Revenue Service (IRS) may impose a nondeductible excise tax of 5% on the amount of the accumulated funding deficiency for those employers contributing to the fund. Withdrawal Activity Sysco has voluntarily withdrawn from various multiemployer pension plans. There were no withdrawal liability provisions recorded in fiscal 2015 , $1.5 million in fiscal 2014 and $41.9 million in fiscal 2013 . As of June 27, 2015 , Sysco had no liabilities recorded related to certain multiemployer defined benefit plans for which Sysco’s voluntary withdrawal had already occurred and had $1.4 million liabilities as of June 28, 2014 . Recorded withdrawal liabilities are estimated at the time of withdrawal based on the most recently available valuation and participant data for the respective plans; amounts are subsequently adjusted to the period of payment to reflect any changes to these estimates. If any of these plans were to undergo a mass withdrawal, as defined by the Pension Benefit Guaranty Corporation, within the two plan years following the plan year in which we completely withdraw from that plan, Sysco could have additional liability. The company does not currently believe any mass withdrawals are probable to occur in the applicable two -plan year time frame relating to the plans from which Sysco has voluntarily withdrawn. Potential Withdrawal Liability Under current law regarding multiemployer defined benefit plans, a plan’s termination, Sysco’s voluntary withdrawal, or the mass withdrawal of all contributing employers from any underfunded multiemployer defined benefit plan would require Sysco to make payments to the plan for Sysco’s proportionate share of the multiemployer plan’s unfunded vested liabilities. Generally, Sysco does not have the greatest share of liability among the participants in any of the plans in which it participates. Sysco believes that one of the above-mentioned events is reasonably possible for certain plans in which it participates and estimates its share of withdrawal liability for these plans could have been as much as $90.0 million as of June 27, 2015 . This estimate excludes plans for which Sysco has recorded withdrawal liabilities or where the likelihood of the above-mentioned events is deemed remote. This estimate is based on the information available from plan administrators, which had a valuation date of December 31, 2013 for a majority of the plans. As the valuation date for all of these plans was December 31, 2013, the company’s estimate reflects the condition of the financial markets as of that date. Due to the lack of current information, management believes Sysco’s current share of the withdrawal liability could materially differ from this estimate. Plan Contributions Sysco’s contributions to multiemployer defined benefit pension plans were as follows for each fiscal year: 2015 2014 2013 (In thousands) Individually significant plans $ 32,097 $ 30,402 $ 28,816 All other plans 6,047 45,627 36,923 Total contributions $ 38,144 $ 76,029 $ 65,739 Payments for voluntary withdrawals included in contributions were $1.4 million , $40.8 million and $31.8 million in fiscal 2015 , 2014 and 2013 , respectively. Individually Significant Plans The information in the following tables relate to multiemployer defined benefit pension plans which Sysco has determined to be individually significant to the company. To determine individually significant plans, the company evaluated several factors, including Sysco’s significance to the plan in terms of employees and contributions, the funded status of the plan and the size of company’s potential withdrawal liability if it were to voluntarily withdraw from the plan. The following table provides information about the funded status of ind |
Multiemployer Employee Benefit
Multiemployer Employee Benefit Plans | 12 Months Ended |
Jun. 27, 2015 | |
Multiemployer Plans [Abstract] | |
Multiemployer Employee Benefit Plans | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. Defined Contribution Plans In December 2012, the company amended its defined contribution 401(k) Plan to be a Safe Harbor Plan, a plan that treats all employees’ benefits equally within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose unions adopted the Safe Harbor Plan provisions. Effective January 1, 2013, the new Safe Harbor Plan provides that the company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pre-tax contribution on the first 5% of the participant’s compensation contributed by the participant. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan provides that under certain circumstances the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. Prior to the adoption of the Safe Harbor Plan in January 2013, the company’s defined contribution 401(k) plan provided that, under certain circumstances, the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. The company also has a nonqualified, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the Management Incentive Plan. Participants may defer up to 50% of their annual salary and up to 100% of their annual bonus. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pre-tax contribution on the first 5% of the participant’s eligible compensation that is deferred. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts contributed by the company to the participant’s 401(k) account. Sysco’s expense related to its defined contribution plans was $125.4 million in fiscal 2015 , $118.6 million in fiscal 2014 , and $65.3 million in fiscal 2013 . Defined Benefit Plans Sysco maintains a qualified pension plan (Retirement Plan) that pays benefits to participating employees at retirement, using formulas based on a participant’s years of service and compensation. During fiscal 2012, Sysco approved a plan to freeze future benefit accruals under the Retirement Plan as of December 31, 2012 for all U.S.-based salaried and non-union hourly employees. Effective January 1, 2013, these employees were eligible for additional contributions under the company’s defined contribution 401(k) plan. In addition to receiving benefits upon retirement under the company’s Retirement Plan, certain key management personnel who were participants in the Management Incentive Plan are entitled to receive benefits under a Supplemental Executive Retirement Plan (SERP). This plan is a nonqualified, unfunded supplementary retirement plan. In November 2012, Sysco approved a plan to restructure its executive nonqualified retirement program including the SERP. Future benefit accruals have been frozen under this plan as of June 29, 2013, for all participants. Also, the company provides certain health care benefits to eligible retirees and their dependents. Funded Status Accumulated pension assets measured against the obligation for pension benefits represents the funded status of a given plan. The funded status of Sysco’s company-sponsored defined benefit plans is presented in the table below. The caption “Pension Benefits” in the tables below includes both the Retirement Plan and the SERP. Pension Benefits Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 3,671,708 $ 3,089,022 $ 12,611 $ 14,248 Service cost 11,263 9,657 536 546 Interest cost 171,120 160,436 590 748 Amendments 914 (347 ) — — Actuarial (gain) loss, net (86,129 ) 492,720 (1,050 ) (3,280 ) Total disbursements (89,749 ) (79,780 ) 329 349 Benefit obligation at end of year 3,679,127 3,671,708 13,016 12,611 Change in plan assets: Fair value of plan assets at beginning of year 2,937,519 2,518,009 — — Actual return on plan assets 80,225 474,538 — — Employer contribution 75,133 24,752 (329 ) (349 ) Total disbursements (89,749 ) (79,780 ) 329 349 Fair value of plan assets at end of year 3,003,128 2,937,519 — — Funded status at end of year $ (675,999 ) $ (734,189 ) $ (13,016 ) $ (12,611 ) In order to meet a portion of its obligations under the SERP, Sysco has contributed to a rabbi trust, COLI policies on the lives of participants and interests in corporate-owned real estate assets. These assets are not included as plan assets or in the funded status amounts in the tables above and below. As they are held in a rabbi trust, these assets are available to satisfy the claims of the company’s creditors in the event of bankruptcy or insolvency of the company. The life insurance policies on the lives of the participants had carrying values of $97.2 million as of June 27, 2015 and $96.5 million as of June 28, 2014 . Sysco is the sole owner and beneficiary of such policies. The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: Pension Benefits Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Current accrued benefit liability (Accrued expenses) $ (27,942 ) $ (25,712 ) $ (327 ) $ (313 ) Non-current accrued benefit liability (Other long-term liabilities) (648,057 ) (708,477 ) (12,689 ) (12,298 ) Net amount recognized $ (675,999 ) $ (734,189 ) $ (13,016 ) $ (12,611 ) Accumulated other comprehensive loss (income) as of June 27, 2015 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: Pension Benefits Other Postretirement Plans Total (In thousands) Prior service cost $ 50,109 $ 730 $ 50,839 Actuarial losses (gains) 1,101,051 (6,903 ) 1,094,148 Total $ 1,151,160 $ (6,173 ) $ 1,144,987 Accumulated other comprehensive loss (income) as of June 28, 2014 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: Pension Benefits Other Postretirement Plans Total (In thousands) Prior service cost $ 60,306 $ 898 $ 61,204 Actuarial losses (gains) 1,058,651 (6,287 ) 1,052,364 Total $ 1,118,957 $ (5,389 ) $ 1,113,568 The accumulated benefit obligation, which does not consider any salary increases for the remaining active union employees in the Retirement Plan, for the company-sponsored defined benefit pension plans was $3.7 billion and $3.7 billion as of June 27, 2015 and June 28, 2014 , respectively. Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: Pension Benefits (1) Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 3,667,031 $ 3,660,227 $ 13,016 $ 12,611 Fair value of plan assets at end of year 3,003,128 2,937,519 — — (1) Information under Pension Benefits as of June 27, 2015 and June 28, 2014 includes both the Retirement Plan and the SERP. Components of Net Benefit Costs and Other Comprehensive Income The components of net company-sponsored pension costs for each fiscal year are as follows: Pension Benefits 2015 2014 2013 (In thousands) Service cost $ 11,263 $ 9,657 $ 70,166 Interest cost 171,120 160,436 148,561 Expected return on plan assets (228,624 ) (192,795 ) (171,201 ) Amortization of prior service cost 11,111 11,145 9,899 Amortization of actuarial loss 19,871 16,327 72,624 Curtailment loss — — 8,293 Net pension (benefits) costs $ (15,259 ) $ 4,770 $ 138,342 The components of other postretirement benefit costs for each fiscal year are as follows: Other Postretirement Plans 2015 2014 2013 (In thousands) Service cost $ 536 $ 546 $ 541 Interest cost 590 748 614 Amortization of prior service cost 168 168 168 Amortization of actuarial gain (434 ) (143 ) (203 ) Amortization of transition obligation — — 141 Net other postretirement benefit costs $ 860 $ 1,319 $ 1,261 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: Pension Benefits 2015 2014 2013 (In thousands) Amortization of prior service cost $ 11,111 $ 11,145 $ 18,192 Amortization of actuarial loss 19,871 16,327 72,624 Prior service cost arising in current year (914 ) 347 (53,902 ) Actuarial (loss) gain arising in current year (62,270 ) (210,978 ) 366,957 Net pension costs $ (32,202 ) $ (183,159 ) $ 403,871 Other changes in benefit obligations recognized in other comprehensive (loss) income related to other postretirement plans for each fiscal year are as follows: Other Postretirement Plans 2015 2014 2013 (In thousands) Amortization of prior service cost $ 168 $ 168 $ 168 Amortization of actuarial gain (434 ) (143 ) (203 ) Amortization of transition obligation — — 141 Actuarial (loss) gain arising in current year 1,050 3,280 (188 ) Net pension costs $ 784 $ 3,305 $ (82 ) Amounts included in accumulated other comprehensive loss (income) as of June 27, 2015 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2016 are: Pension Benefits Other Postretirement Plans Total (In thousands) Amortization of prior service cost $ 11,202 $ 169 $ 11,371 Amortization of actuarial losses (gains) 22,186 (481 ) 21,705 Total $ 33,388 $ (312 ) $ 33,076 Employer Contributions The company made cash contributions to its company-sponsored pension plans of $75.1 million and $24.8 million in fiscal years 2015 and 2014 , respectively. There were no required contributions to the Retirement Plan to meet ERISA minimum funding requirements in fiscal 2015 . The $50 million contribution to the Retirement Plan in fiscal 2015 was voluntary, as there were no required contributions to meet ERISA minimum funding requirements in fiscal 2015 . There are no required contributions to the Retirement Plan to meet ERISA minimum funding requirements in fiscal 2016 . The company’s contributions to the SERP and other post-retirement plans are made in the amounts needed to fund current year benefit payments. The estimated fiscal 2016 contributions to fund benefit payments for the SERP and other postretirement plans are $27.9 million and $0.3 million , respectively. Estimated Future Benefit Payments Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: Pension Benefits Other Postretirement Plans (In thousands) 2016 $ 105,555 $ 327 2017 115,844 546 2018 126,413 824 2019 137,300 1,035 2020 148,517 1,213 Subsequent five years 906,784 6,658 Assumptions Weighted-average assumptions used to determine benefit obligations as of year-end were: June 27, 2015 June 28, 2014 Discount rate — Retirement Plan 4.84 % 4.74 % Discount rate — SERP 4.63 4.59 Discount rate — Other Postretirement Plans 4.84 4.74 Rate of compensation increase — Retirement Plan 3.89 3.89 As benefit accruals under the SERP were frozen as of June 29, 2013, due to the plan freeze discussed above, future pay is not projected in the determination of the benefit obligation as of June 27, 2015 or June 28, 2014. Weighted-average assumptions used to determine net company-sponsored pension costs and other postretirement benefit costs for each fiscal year were: 2015 2014 2013 Discount rate — Retirement Plan 4.74 % 5.32 % 4.81 % Discount rate — SERP 4.59 % 4.94 % 3.96 % (1) Discount rate — Other Postretirement Plans 4.74 % 5.32 % 4.81 % Expected rate of return — Retirement Plan 7.75 % 7.75 % 7.75 % Rate of compensation increase — Retirement Plan 3.89 % 3.89 % 5.30 % (1) The SERP was remeasured in November 2012 as a result of the plan freeze discussed above. The rate in the table above reflects the discount rate as of this remeasurement. As benefit accruals under the SERP were frozen as of June 29, 2013, due to the plan freeze discussed above, future pay is not projected in the determination of net pension costs related to the SERP for fiscal 2015 and fiscal 2014. For determining the net pension costs related to the SERP for fiscal 2013, the SERP calculations utilized an age-graded salary growth assumption. A healthcare cost trend rate is not used in the calculations of postretirement benefit obligations because Sysco subsidizes the cost of postretirement medical coverage by a fixed dollar amount, with the retiree responsible for the cost of coverage in excess of the subsidy, including all future cost increases. For guidance in determining the discount rate, Sysco calculates the implied rate of return on a hypothetical portfolio of high-quality fixed-income investments for which the timing and amount of cash outflows approximates the estimated payouts of the company-sponsored pension plans. The discount rate assumption is updated annually and revised as deemed appropriate. The discount rate to be used for the calculation of fiscal 2016 net company-sponsored benefit costs for the Retirement Plan is 4.84% . The discount rate to be used for the calculation of fiscal 2016 net company-sponsored benefit costs for the SERP is 4.63% . The discount rate to be used for the calculation of fiscal 2016 net company-sponsored benefit costs for the Other Postretirement Plans is 4.84% . The expected long-term rate of return on plan assets assumption is net return on assets assumption, representing gross return on assets less plan expenses. The expected return is derived from a mathematical asset model that incorporates assumptions as to the various asset class returns, reflecting a combination of rigorous historical performance analysis and the forward-looking views of the financial markets regarding the yield on bonds, the historical returns of the major stock markets and returns on alternative investments. The rate of return assumption is reviewed annually and revised as deemed appropriate. The expected long-term rate of return to be used in the calculation of fiscal 2016 net company-sponsored benefit costs for the Retirement Plan is 7.25% . Plan Assets Investment Strategy The company’s overall strategic investment objectives for the Retirement Plan are to preserve capital for future benefit payments and to balance risk and return commensurate with ongoing changes in the valuation of plan liabilities. Over time, the company intends to decrease the risk of the Retirement Plan’s investments in order to preserve the Retirement Plan’s funded status. In order to accomplish these objectives, the company oversees the Retirement Plan’s investment objectives and policy design, decides proper plan asset class strategies and structures, monitors the performance of plan investment managers and investment funds and determines the proper investment allocation of pension plan contributions and withdrawals. The company has created an investment structure for the Retirement Plan that takes into account the nature of the Retirement Plan’s liabilities. This structure ensures the Retirement Plan’s investments are diversified within each asset class, in addition to being diversified across asset classes with the intent to build asset class portfolios that are structured without strategic bias for or against any subcategories within each asset class. The company has also created a set of investment guidelines for the Retirement Plan’s investment managers to specify prohibited transactions, including borrowing of money except for real estate, private equity or hedge fund portfolios where leverage is a key component of the investment strategy and permitted in the investments’ governing documents, the purchase of securities on margin unless fully collateralized by cash or cash equivalents or short sales, pledging, mortgaging or hypothecating of any securities, except for loans of securities that are fully collateralized, market timing transactions and the direct purchase of the securities of Sysco or the investment manager. The purchase or sale of derivatives for speculation or leverage is also prohibited; however, investment managers are allowed to use derivative securities so long as they do not increase the risk profile or leverage of the manager’s portfolio. The company’s target and actual investment allocation as of June 27, 2015 is as follows: Target Asset Allocation Actual Asset Allocation U.S. equity 24 % 24 % International equity 24 25 Long duration fixed income 27 26 High yield fixed income 7 7 Alternative investments 18 18 100 % Sysco’s investment strategy is implemented through a combination of balanced and specialized investment managers, passive investment funds and actively-managed investment funds. U.S. equity consists of both large-cap and small-to-mid-cap securities. Long duration fixed income investments include U.S. government and agency securities, corporate bonds from diversified industries, asset-backed securities, mortgage-backed securities, other debt securities and derivative securities. High yield fixed income consists of below investment grade corporate debt securities and may include derivative securities. Alternative investments may include private equity, private real estate, hedge funds, timberland, and commodities investments. Investment funds are selected based on each fund’s stated investment strategy to align with Sysco’s overall target mix of investments. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. As discussed above, the Retirement Plan’s investments in equity, fixed income and alternative investments provide a range of returns and also expose the plan to investment risk. However, the investment policies put in place by the company require diversification of plan assets across issuers, industries and countries. As such, the Retirement Plan does not have significant concentrations of risk in plan assets. Fair Value of Plan Assets Fair value is defined as 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 (i.e. an exit price). See Note 5, “Fair Value Measurements,” for a description of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The following is a description of the valuation methodologies used for assets and liabilities held by Sysco's Retirement Plan measured at fair value. Cash and cash equivalents: Valued at amortized cost, which approximates fair value due to the short-term maturities of these investments. Cash and cash equivalents is included as a Level 2 measurement in the table below. Equity securities: Valued at the closing price reported on the exchange market. If a stock is not listed on a public exchange, such as an American Depository Receipt or some preferred stocks, the stock is valued using an evaluated bid price based on a compilation of observable market information. Inputs used include yields, the underlying security “best price”, adjustments for corporate actions and exchange prices of underlying and common stock of the same issuer. Equity securities valued at the closing price reported on the exchange market are classified as a Level 1 measurement in the table below; all other equity securities are included as a Level 2 measurement. Fixed income securities: Valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. All fixed income securities are included as a Level 2 measurement in the table below. Investment funds: Funds holding debt, equity and exchange-traded real estate securities are valued at the net asset value (NAV) provided by the manager of each fund. The NAV is calculated as the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV is based on the fair value of the underlying securities within the fund. Non-exchange traded real estate funds are valued based on the proportionate interest held by the Retirement Plan, which is based on the valuations of the underlying real estate investments held by each fund. Each real estate investment is valued on the basis of a discounted cash flow approach. Inputs used include future rental receipts, expenses and residual values from a market participant view of the highest and best use of the real estate as rental property. The private equity funds are valued based on the proportionate interest held by the Retirement Plan, which is based on the valuations of the underlying private equity investments held by each fund. The hedge funds are valued based on the hedge funds' proportionate share of the net assets of the underlying private investment fund as determined by the underlying private investment fund's general partner. Indirectly-held investments are valued utilizing the latest financial reports supplied by the fund’s portfolio investments. Directly-held investments are valued initially based on transaction price and are adjusted utilizing available market data and investment-specific factors, such as estimates of liquidation value, prices of recent transactions in the same or similar issuer, current operating performance and future expectations of the particular investment, changes in market outlook and the financing environment. Investment funds holding debt, equity and exchange traded real-estate securities are included as a Level 2 measurement in the table below. The non-exchange traded real estate funds, hedge funds and private equity funds are included as Level 3 measurements. Derivatives: Valuation method varies by type of derivative security. • Credit default and interest rate swaps: Valued using evaluated bid prices based on a compilation of observable market information. Inputs used for credit default swaps include spread curves and trade data about the credit quality of the counterparty. Inputs used for interest rate swaps include benchmark yields, swap curves, cash flow analysis, and interdealer broker rates. Credit default and interest rate swaps are included as a Level 2 measurement in the table below. • Foreign currency contracts: Valued using a standardized interpolation model that utilizes the quoted prices for standard-length forward foreign currency contracts and adjusts to the remaining term outstanding on the contract being valued. Foreign currency contracts are included as a Level 2 measurement in the table below. • Futures and option contracts: Valued at the closing price reported on the exchange market for exchange-traded futures and options. Over-the-counter options are valued using pricing models that are based on observable market information. Exchange-traded futures and options are included as a Level 1 measurement in the table below; over-the-counter options are included as a Level 2 measurement. The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 27, 2015 : Assets Measured at Fair Value as of June 27, 2015 Level 1 Level 2 Level 3 Total (In thousands) Cash and cash equivalents $ — $ 21,968 $ — $ 21,968 U.S. equity: U.S. large-cap (1) 233,525 333,709 — $ 567,234 U.S. small-cap 154,598 — — 154,598 International equity (2) — 732,595 — $ 732,595 Long duration fixed income: Corporate bonds — 567,280 — $ 567,280 U.S. government and agency securities — 190,125 — 190,125 Other — 4,343 — 4,343 Derivatives, net (3) — 1,078 — $ 1,078 High yield fixed income (2) — 204,175 — 204,175 Alternative investments: Hedge Fund (2) — 335,265 335,265 Real estate (2) — 25,386 138,283 163,669 Private equity (2) — — 52,891 $ 52,891 Total investments at fair value $ 388,123 $ 2,080,659 $ 526,439 $ 2,995,221 Other (4) 7,907 Fair value of plan assets at end of year $ 3,003,128 (1) Include direct investments and investment funds. (2) Include investments in investment funds only. (3) Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $1.4 million ; the fair value of liability positions totaled $0.3 million . (4) Include primarily plan receivables and payables, net. The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 28, 2014 : Assets Measured at Fair Value as of June 28, 2014 Level 1 Level 2 Level 3 Total (In thousands) Cash and cash equivalents $ — $ 51,066 $ — $ 51,066 U.S. equity: U.S. large-cap (1) 218,165 777,627 — 995,792 U.S. small-cap 135,781 — — 135,781 International equity (2) — 717,022 — 717,022 Long duration fixed income: Corporate bonds — 568,419 — 568,419 U.S. government and agency securities — 171,617 — 171,617 Other — 4,907 — 4,907 Derivatives, net (3) (127 ) 352 — 225 High yield fixed income (2) — 102,041 — 102,041 Alternative investments: Real estate (2) — 114,250 35,403 149,653 Private equity (2) — — 31,204 31,204 Total investments at fair value $ 353,819 $ 2,507,301 $ 66,607 $ 2,927,727 Other (4) 9,792 Fair value of plan assets at the end of the year $ 2,937,519 (1) Include direct investments and investment funds. (2) Include investments in investment funds only. (3) Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $0.8 million ; the fair value of liability positions totaled $0.6 million . (4) Include primarily plan receivables and payables, net. The following table sets forth a summary of changes in the fair value of the Retirement Plan’s Level 3 assets for each fiscal year: Real Estate Private Equity Funds Hedge Funds Total Level 3 Measurements (In thousands) Balance, June 29, 2013 $ 64,845 $ 14,375 $ — $ 79,220 Actual return on plan assets: Relating to assets still held at the reporting date 3,044 1,931 — 4,975 Relating to assets sold during the period 3,307 1,767 — 5,074 Purchases and sales, net (35,793 ) 13,131 — (22,662 ) Transfers in and/or out of Level 3 — — — — Balance, June 28, 2014 $ 35,403 $ 31,204 $ — $ 66,607 Actual return on plan assets: Relating to assets still held at the reporting date 8,122 2,438 12,265 22,825 Relating to assets sold during the period 1,062 1,780 — 2,842 Purchases and sales, net 93,696 17,469 323,000 434,165 Transfers in and/or out of Level 3 — — — — Balance, June 27, 2015 $ 138,283 $ 52,891 $ 335,265 $ 526,439 MULTIEMPLOYER EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans Sysco contributes to several multiemployer defined benefit pension plans in the U.S. and Canada based on obligations arising under collective bargaining agreements covering union-represented employees. Sysco does not directly manage these multiemployer plans, which are generally managed by boards of trustees, half of whom are appointed by the unions and the other half appointed by Sysco and the other employers contributing to the plan. Approximately 10% of Sysco’s current employees are participants in such multiemployer plans as of June 27, 2015 . The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If Sysco chooses to stop participating in some of its multiemployer plans, Sysco may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Based upon the information available from plan administrators, management believes that several of these multiemployer plans are underfunded. In addition, pension-related legislation in the U.S. requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, Sysco expects its contributions to these plans to increase in the future. In addition, if a U.S. multiemployer defined benefit plan fails to satisfy certain minimum funding requirements, the Internal Revenue Service (IRS) may impose a nondeductible excise tax of 5% on the amount of the accumulated funding deficiency for those employers contributing to the fund. Withdrawal Activity Sysco has voluntarily withdrawn from various multiemployer pension plans. There were no withdrawal liability provisions recorded in fiscal 2015 , $1.5 million in fiscal 2014 and $41.9 million in fiscal 2013 . As of June 27, 2015 , Sysco had no liabilities recorded related to certain multiemployer defined benefit plans for which Sysco’s voluntary withdrawal had already occurred and had $1.4 million liabilities as of June 28, 2014 . Recorded withdrawal liabilities are estimated at the time of withdrawal based on the most recently available valuation and participant data for the respective plans; amounts are subsequently adjusted to the period of payment to reflect any changes to these estimates. If any of these plans were to undergo a mass withdrawal, as defined by the Pension Benefit Guaranty Corporation, within the two plan years following the plan year in which we completely withdraw from that plan, Sysco could have additional liability. The company does not currently believe any mass withdrawals are probable to occur in the applicable two -plan year time frame relating to the plans from which Sysco has voluntarily withdrawn. Potential Withdrawal Liability Under current law regarding multiemployer defined benefit plans, a plan’s termination, Sysco’s voluntary withdrawal, or the mass withdrawal of all contributing employers from any underfunded multiemployer defined benefit plan would require Sysco to make payments to the plan for Sysco’s proportionate share of the multiemployer plan’s unfunded vested liabilities. Generally, Sysco does not have the greatest share of liability among the participants in any of the plans in which it participates. Sysco believes that one of the above-mentioned events is reasonably possible for certain plans in which it participates and estimates its share of withdrawal liability for these plans could have been as much as $90.0 million as of June 27, 2015 . This estimate excludes plans for which Sysco has recorded withdrawal liabilities or where the likelihood of the above-mentioned events is deemed remote. This estimate is based on the information available from plan administrators, which had a valuation date of December 31, 2013 for a majority of the plans. As the valuation date for all of these plans was December 31, 2013, the company’s estimate reflects the condition of the financial markets as of that date. Due to the lack of current information, management believes Sysco’s current share of the withdrawal liability could materially differ from this estimate. Plan Contributions Sysco’s contributions to multiemployer defined benefit pension plans were as follows for each fiscal year: 2015 2014 2013 (In thousands) Individually significant plans $ 32,097 $ 30,402 $ 28,816 All other plans 6,047 45,627 36,923 Total contributions $ 38,144 $ 76,029 $ 65,739 Payments for voluntary withdrawals included in contributions were $1.4 million , $40.8 million and $31.8 million in fiscal 2015 , 2014 and 2013 , respectively. Individually Significant Plans The information in the following tables relate to multiemployer defined benefit pension plans which Sysco has determined to be individually significant to the company. To determine individually significant plans, the company evaluated several factors, including Sysco’s significance to the plan in terms of employees and contributions, the funded status of the plan and the size of company’s potential withdrawal liability if it were to voluntarily withdraw from the plan. The following table provides information about the funded status of ind |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 27, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share has been computed by dividing net earnings by the weighted average number of shares of common stock outstanding for each respective year. Diluted earnings per share has been computed by dividing net earnings by the weighted average number of shares of common stock outstanding during those respective years adjusted for the dilutive effect of share-based awards outstanding using the treasury stock method. A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations for the periods presented follows: 2015 2014 2013 (In thousands, except for share and per share data) Numerator: Net earnings $ 686,773 $ 931,533 $ 992,427 Denominator: Weighted-average basic shares outstanding 592,072,308 585,988,084 589,397,807 Dilutive effect of share-based awards 4,776,726 4,228,136 3,277,303 Weighted-average diluted shares outstanding 596,849,034 590,216,220 592,675,110 Basic earnings per share: $ 1.16 $ 1.59 $ 1.68 Diluted earnings per share: $ 1.15 $ 1.58 $ 1.67 The number of options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,400,000 , 2,100,000 and 18,200,000 for fiscal 2015 , 2014 and 2013 , respectively. Dividends declared were $705.5 million , $673.6 million and $654.9 million in fiscal 2015 , 2014 and 2013 , respectively. Included in dividends declared for each year were dividends declared but not yet paid at year-end of approximately $178.3 million , $171.6 million and $165.8 million in fiscal 2015 , 2014 and 2013 , respectively. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Jun. 27, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustments, amounts related to cash flow hedging arrangements and certain amounts related to pension and other postretirement plans. Comprehensive income was $406.2 million , $735.8 million and $1.2 billion in fiscal 2015 , 2014 and 2013 , respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the years presented is as follows: 2015 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 Operating expenses $ 11,279 $ 4,331 $ 6,948 Amortization of actuarial loss (gain), net Operating expenses 19,437 7,464 11,973 Total reclassification adjustments 30,716 11,795 18,921 Other comprehensive income before reclassification adjustments: Prior service cost arising in current year N/A (914 ) (351 ) (563 ) Net actuarial gain arising in current year N/A (61,221 ) (23,509 ) (37,712 ) Total other comprehensive income before reclassification adjustments (62,135 ) (23,860 ) (38,275 ) Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (232,185 ) — (232,185 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,305 3,189 5,116 Other comprehensive income before reclassification adjustments: Change in fair value of cash flow hedges N/A (55,374 ) (21,263 ) (34,111 ) Total other comprehensive income (loss) $ (310,673 ) $ (30,139 ) $ (280,534 ) 2014 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 Operating expenses $ 11,313 $ 4,343 $ 6,970 Amortization of actuarial loss (gain), net Operating expenses 16,184 6,216 9,968 Total reclassification adjustments 27,497 10,559 16,938 Other comprehensive income before reclassification adjustments: Prior service cost arising in current year N/A 347 133 214 Net actuarial gain arising in current year N/A (207,698 ) (79,756 ) (127,942 ) Total other comprehensive income before reclassification adjustments (207,351 ) (79,623 ) (127,728 ) Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (3,106 ) — (3,106 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 625 240 385 Other comprehensive income before reclassification adjustments: Change in fair value of cash flow hedges N/A (133,466 ) (51,251 ) (82,215 ) Total other comprehensive income (loss) $ (315,801 ) $ (120,075 ) $ (195,726 ) 2013 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 Operating expenses $ 18,360 $ 7,050 $ 11,310 Amortization of actuarial loss (gain), net Operating expenses 72,421 27,811 44,610 Amortization of transition obligation Operating expenses 141 53 88 Total reclassification adjustments 90,922 34,914 56,008 Other comprehensive income before reclassification adjustments: Prior service cost arising in current year N/A (53,902 ) (20,699 ) (33,203 ) Net actuarial gain arising in current year N/A 366,769 140,840 225,929 Total other comprehensive income before reclassification adjustments 312,867 120,141 192,726 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (33,191 ) — (33,191 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 626 240 386 Total other comprehensive income (loss) $ 371,224 $ 155,295 $ 215,929 The following table provides a summary of the changes in accumulated other comprehensive (loss) income for the years presented: Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Translation Interest Rate Swap, net of tax Total (In thousands) Balance as of June 30, 2012 $ (823,901 ) $ 170,749 $ (9,714 ) $ (662,866 ) Other comprehensive income before reclassification adjustments 192,726 (33,191 ) — 159,535 Amounts reclassified from accumulated other comprehensive loss 56,008 — 386 56,394 Balance as of June 29, 2013 (575,167 ) 137,558 (9,328 ) (446,937 ) Other comprehensive income before reclassification adjustments (127,728 ) (3,106 ) (82,215 ) (213,049 ) Amounts reclassified from accumulated other comprehensive loss 16,938 — 385 17,323 Balance as of June 28, 2014 (685,957 ) 134,452 (91,158 ) (642,663 ) Other comprehensive income before reclassification adjustments (38,275 ) (232,185 ) (34,111 ) (304,571 ) Amounts reclassified from accumulated other comprehensive loss 18,921 — 5,116 24,037 Balance as of June 27, 2015 $ (705,311 ) $ (97,733 ) $ (120,153 ) $ (923,197 ) |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 27, 2015 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees and non-employee directors under several share-based payment arrangements including various employee stock option plans, a non-employee director plan and the Employees’ Stock Purchase Plan. Stock Incentive Plans In November 2013, Sysco’s Long-term Incentive Plan (2013 Plan) was adopted and reserved up to 55,600,000 shares of Sysco common stock for share-based awards to employees, non-employee directors and key advisors. Of the 55,600,000 authorized shares, the full 55,600,000 shares may be issued as options or stock appreciation rights and up to 17,500,000 shares may be issued as restricted stock, restricted stock units or other types of stock-based awards. To date, Sysco has issued options and restricted stock units under this plan. Vesting requirements for awards under this plan will vary by individual grant and may include either time-based vesting or time-based vesting subject to acceleration based on performance criteria for fiscal periods of at least one year. The contractual life of all options granted under this plan will be no greater than ten years. As of June 27, 2015 , there were 43,562,619 remaining shares authorized and available for grant in total under the 2013 Plan, of which the full 43,562,619 shares may be issued as options or stock appreciation rights, or as a combination of up to 15,115,359 shares that may be issued as restricted stock, restricted stock units or other types of stock-based awards, with the remainder available for issuance as options or stock appreciation rights. Sysco has also granted employee options under several previous employee stock option plans for which previously granted options remain outstanding as of June 27, 2015 . No new options will be issued under any of the prior plans, as future grants to employees will be made through the 2013 Plan or subsequently adopted plans. Awards under these plans are subject to time-based vesting with vesting periods that vary by individual grant. The contractual life of all options granted under these plans is seven years. In November 2009, Sysco’s 2009 Non-Employee Directors Stock Plan was adopted and provides for the issuance of up to 750,000 shares of Sysco common stock for share-based awards to non-employee directors. The authorized shares may be granted as restricted stock, restricted stock units, elected shares or additional shares. Vesting requirements for awards under these plans vary by individual grant and include either time-based vesting or vesting based on performance criteria. As of June 27, 2015 , there were a total of 346,286 remaining shares authorized and available for grant under the 2009 Non-Employee Directors Stock Plan. Stock Options Sysco’s option awards are subject to graded vesting over a service period. Sysco recognizes compensation cost on a straight-line basis over the requisite service period for the entire award. In addition, certain of Sysco’s options provide that the options continue to vest as if the optionee continued to be an employee or director if the optionee meets certain age and years of service thresholds upon retirement. In these cases, Sysco will recognize compensation cost for such awards over the period from the grant date to the date the employee or director first becomes eligible to retire with the options continuing to vest after retirement. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average assumptions for the periods indicated are noted in the following table. Expected volatility is based on historical volatility of Sysco’s stock, implied volatilities from traded options on Sysco’s stock and other factors. Sysco utilizes historical data to estimate option exercise and employee termination behavior within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. Expected dividend yield is estimated based on the historical pattern of dividends and the average stock price for the year preceding the option grant. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following weighted-average assumptions were used for each fiscal year presented: 2015 2014 2013 Dividend yield 3.2 % 3.5 % 3.7 % Expected volatility 20.7 % 20.4 % 20.7 % Risk-free interest rate 2.0 % 2.1 % 0.7 % Expected life 7.3 years 7.2 years 5.4 years The following summary presents information regarding outstanding options as of June 27, 2015 and changes during the fiscal year then ended with regard to options under all stock incentive plans: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of June 28, 2014 27,469,911 $ 29.59 Granted 4,497,954 38.89 Exercised (6,054,528 ) 29.31 Forfeited (85,550 ) 29.33 Expired (35,409 ) 33.22 Outstanding as of June 27, 2015 25,792,378 $ 31.28 5.21 $ 185,242 Vested or expected to vest as of June 27, 2015 25,575,542 $ 31.24 5.18 $ 184,526 Exercisable as of June 27, 2015 9,902,719 $ 28.54 3.05 $ 97,362 The total number of employee options granted was 4,497,954 , 5,575,645 and 6,212,716 in fiscal years 2015 , 2014 and 2013 , respectively. During fiscal 2015 , 1,286,533 options were granted to 6 executive officers and 3,211,421 options were granted to approximately 173 other key employees. During fiscal 2014 , 2,159,698 options were granted to 11 executive officers and 3,415,947 options were granted to approximately 167 other key employees. During fiscal 2013 , 2,351,720 options were granted to 11 executive officers and 3,860,996 options were granted to approximately 152 other key employees. The weighted average grant-date fair value of options granted in fiscal 2015 , 2014 and 2013 was $5.78 , $4.64 and $3.20 , respectively. The total intrinsic value of options exercised during fiscal 2015 , 2014 and 2013 was $21.6 million , $19.1 million and $24.1 million , respectively. Restricted Stock Units During fiscal 2015 , 2014 and 2013 , 1,198,588 , 1,322,709 and 1,722,835 restricted stock units, respectively, were granted to employees, the majority of which will vest ratably over a three -year period. Some of these restricted stock units were granted with dividend equivalents. The fair value of each restricted stock unit award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For restricted stock unit awards granted without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per share of restricted stock units granted during fiscal 2015 , 2014 and 2013 was $37.59 , $33.39 and $29.75 , respectively. The total fair value of restricted stock units vested during fiscal 2015 , 2014 and 2013 was $52.5 million , $39.4 million and $27.6 million , respectively. Non-Employee Director Awards During fiscal 2015 , 2014 and 2013 , 37,035 , 43,119 and 48,069 shares, respectively, of restricted awards were granted to non-employee directors that will vest over a one -year period. Non-employee directors may elect to receive these awards in restricted stock shares that will vest at the end of the award stated vesting period or as deferred units which convert into shares of Sysco common stock upon a date selected by the non-employee director that is subsequent to the award stated vesting date. The fair value of the restricted awards is based on the company’s stock price as of the date of grant. The weighted average grant-date fair value of the shares granted during fiscal 2015 , 2014 and 2013 was $38.89 , $33.40 and $29.96 , respectively. The total fair value of restricted stock shares vested and deferred units distributed during fiscal 2015 , 2014 and 2013 was $1.6 million , $1.4 million and $1.9 million , respectively. Restricted stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date. Non-employee directors may elect to receive up to 100% of their annual directors’ fees in Sysco common stock on either an annual or deferred basis. Sysco provides a matching grant of 50% of the number of shares received for the stock election subject to certain limitations. As a result of such elections, a total of 23,949 , 24,565 and 26,702 shares with a weighted-average grant date fair value of $38.26 , $34.59 and $30.38 per share were issued in fiscal 2015 , 2014 and 2013 , respectively, in the form of fully vested common stock or deferred units. The total fair value of common stock issued as a result of election shares and deferred units distributed during fiscal 2015 , 2014 and 2013 was $0.9 million , $0.8 million and $0.5 million , respectively. Common stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date. As of June 27, 2015 , there were 104,605 fully vested deferred units outstanding that will convert into shares of Sysco common stock upon dates selected by the respective non-employee directors. Summary of Non-vested Awards The following summary presents information regarding outstanding non-vested awards as of June 27, 2015 and changes during the fiscal year then ended with regard to these awards under the stock incentive plans. Award types represented include: restricted stock units granted to employees and restricted awards granted to non-employee directors. Shares Weighted Average Grant Date Fair Value Per Share Nonvested as of June 28, 2014 2,918,405 $ 31.06 Granted 1,235,940 37.63 Vested (1,396,269 ) 30.40 Forfeited (60,422 ) 32.90 Nonvested as of June 27, 2015 2,697,654 $ 34.37 Employees’ Stock Purchase Plan Sysco has an Employees’ Stock Purchase Plan that permits employees to invest in Sysco common stock by means of periodic payroll deductions at a discount of 15% from the closing price on the last business day of each calendar quarter. The total number of shares which may be sold pursuant to the plan may not exceed 79,000,000 shares, of which 1,211,657 remained available as of June 27, 2015 . During fiscal 2015 , 1,243,275 shares of Sysco common stock were purchased by the participants, as compared to 1,315,535 shares purchased in fiscal 2014 and 1,470,271 shares purchased in fiscal 2013 . The weighted average fair value of employee stock purchase rights issued pursuant to the Employees’ Stock Purchase Plan was $5.73 , $5.17 and $4.78 per share during fiscal 2015 , 2014 and 2013 , respectively. The fair value of the stock purchase rights was calculated as the difference between the stock price at date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost that has been recognized in results of operations was $73.8 million , $74.3 million and $70.1 million for fiscal 2015 , 2014 and 2013 , respectively, and is included within operating expenses in the consolidated results of operations. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $27.4 million , $28.1 million and $29.9 million for fiscal 2015 , 2014 and 2013 , respectively. As of June 27, 2015 , there was $69.4 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 2.42 years . Cash received from option exercises and purchases of shares under the Employees’ Stock Purchase Plan was $240.2 million , $255.6 million and $628.7 million during fiscal 2015 , 2014 and 2013 , respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $20.7 million , $16.6 million and $24.0 million during fiscal 2015 , 2014 and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income Tax Provisions For financial reporting purposes, earnings before income taxes consists of the following: 2015 2014 2013 (In thousands) U.S. $ 818,244 $ 1,287,371 $ 1,351,947 Foreign 189,903 188,253 195,508 Total $ 1,008,147 $ 1,475,624 $ 1,547,455 The income tax provision / (benefit) for each fiscal year consists of the following: 2015 2014 2013 (In thousands) U.S. federal income taxes $ 285,807 $ 433,795 $ 439,667 State and local income taxes (2,737 ) 55,736 69,759 Foreign income taxes 38,304 54,560 45,602 Total $ 321,374 $ 544,091 $ 555,028 The current and deferred components of the income tax provisions for each fiscal year are as follows: 2015 2014 2013 (In thousands) Current $ 327,639 $ 574,760 $ 582,889 Deferred (6,265 ) (30,669 ) (27,861 ) Total $ 321,374 $ 544,091 $ 555,028 The deferred tax provisions result from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred Tax Assets and Liabilities Significant components of Sysco’s deferred tax assets and liabilities are as follows: June 27, 2015 June 28, 2014 (In thousands) Deferred tax liabilities: Excess tax depreciation and basis differences of assets $ 381,875 $ 416,417 Goodwill and intangible assets 224,943 211,434 Other 23,449 15,171 Total deferred tax liabilities 630,267 643,022 Deferred tax assets: Net operating tax state loss carryforwards 47,958 20,123 Benefit on unrecognized tax benefits 16,270 22,170 Pension 264,780 287,046 Share-based compensation 42,569 41,262 Deferred compensation 35,573 33,280 Self-insured liabilities 65,617 65,002 Receivables 38,410 47,688 Inventory 68,186 62,799 Cash flow hedge 74,900 56,826 Other 29,667 26,471 Total deferred tax assets 683,930 662,667 Total net deferred tax (assets) $ (53,663 ) $ (19,645 ) The company’s net operating tax loss carryforwards as of June 27, 2015 and June 28, 2014 consisted primarily of state net operating tax loss carryforwards. The state net operating tax loss carryforwards outstanding as of June 27, 2015 expire in fiscal years 2017 through 2035. There were no valuation allowances recorded for the state tax loss carryforwards as of June 27, 2015 and June 28, 2014 because management believes it is more likely than not that these benefits will be realized based on utilization forecasts. Effective Tax Rates Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows: 2015 2014 2013 U.S. statutory federal income tax rate 35.00 % 35.00 % 35.00 % State and local income taxes, net of any applicable federal income tax benefit 0.91 2.82 2.59 Foreign tax rate differential (2.84 ) (1.66 ) (1.22 ) Other (1.19 ) 0.71 (0.50 ) 31.88 % 36.87 % 35.87 % The effective tax rate of 31.9% for fiscal 2015 was favorably impacted by lower earnings in the U.S. primarily due to costs associated with the termination of the US Foods proposed merger. The lower U.S. earnings resulted in a more significant favorable impact on the effective tax rate from the indefinitely reinvested foreign earnings due to lower foreign statutory tax rates as compared to the domestic tax rate. The additional cost associated with the proposed US Foods merger resulted in lower state taxes. The effective tax rate of 36.9% for fiscal 2014 was negatively impacted primarily by two items. First, a non-deductible penalty, that the company incurred, had an unfavorable tax impact of $6.2 million . Second, we recorded net tax expense of $5.2 million for tax and interest related to various federal, foreign and state uncertain tax positions. This negative impact was partially offset by the recording of $5.7 million of tax benefit related to disqualifying dispositions of Sysco stock pursuant to share-based compensation arrangements. Indefinitely reinvested earnings taxed at foreign statutory rates less than our domestic tax rate also had the impact of reducing the effective tax rate. The effective tax rate for fiscal 2013 was 35.9% . Indefinitely reinvested earnings taxed at foreign statutory tax rates that are lower than our domestic tax rate had the impact of reducing the effective tax rate. Uncertain Tax Positions A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2015 2014 (In thousands) Unrecognized tax benefits at beginning of year $ 49,180 $ 108,337 Additions for tax positions related to prior years 797 2,128 Reductions for tax positions related to prior years (8,001 ) (41,802 ) Reductions due to settlements with taxing authorities (4,430 ) (19,483 ) Unrecognized tax benefits at end of year $ 37,546 $ 49,180 As of June 27, 2015 , the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $33.4 million . The expense recorded for interest and penalties related to unrecognized tax benefits in fiscal 2015 was not material . As of June 28, 2014 , the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $36.7 million . The expense recorded for interest and penalties related to unrecognized tax benefits in fiscal 2014 was $14.8 million . In the fourth quarter of fiscal 2014 , we reclassified a receivable that would arise upon the resolution of an unrecognized tax benefit from a gross position in other assets to a net position in other long-term liabilities on our consolidated balance sheet due to a change in circumstances related to transfer pricing positions If Sysco were to recognize all unrecognized tax benefits recorded as of June 27, 2015 , approximately $27.7 million of the $37.5 million reserve would reduce the effective tax rate. If Sysco were to recognize all unrecognized tax benefits recorded as of June 28, 2014 , approximately $35.1 million of the $49.2 million reserve would reduce the effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months either because Sysco’s positions are sustained on audit or because the company agrees to their disallowance. Items that may cause changes to unrecognized tax benefits primarily include the consideration of various filing requirements in various states and the allocation of income and expense between tax jurisdictions. In addition, the amount of unrecognized tax benefits recognized within the next twelve months may decrease due to the expiration of the statute of limitations for certain years in various jurisdictions; however, it is possible that a jurisdiction may open an audit on one of these years prior to the statute of limitations expiring. At this time, an estimate of the range of the reasonably possible change cannot be made. The IRS has open audits for Sysco’s 2006, 2007, 2008 and 2009 federal income tax returns. As of June 27, 2015 , Sysco’s tax returns in the majority of the state and local jurisdictions and Canada are no longer subject to audit for the years before 2009. However, in Canada, the company remains open to transfer pricing adjustments back to 2003 for some entities. Certain tax jurisdictions require partial to full payment on audit assessments or the posting of letters of credit in order to proceed to the appeals process. Although the outcome of tax audits is generally uncertain, the company believes that adequate amounts of tax, including interest and penalties, have been accrued for any adjustments that may result from those open years. Other Undistributed income of certain consolidated foreign subsidiaries at June 27, 2015 amounted to $1.1 billion for which no deferred U.S. income tax provision has been recorded because Sysco intends to permanently reinvest such income in those foreign operations. An estimate of any U.S. income or foreign withholding taxes that may be applicable upon actual or deemed repatriation is not practical due to the complexities associated with the hypothetical calculation. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings Sysco is engaged in various legal proceedings which have arisen but have not been fully adjudicated. The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When probable and reasonably estimable, the losses have been accrued. Based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company. However, the final results of legal proceedings cannot be predicted with certainty and if the company failed to prevail in one or more of these legal matters, and the associated realized losses were to exceed the company’s current estimates of the range of potential losses, the company’s consolidated financial position or results of operations could be materially adversely affected in future periods. Fuel Commitments Sysco routinely enters into forward purchase commitments for a portion of its projected diesel fuel requirements. As of June 27, 2015 , we had forward diesel fuel commitments totaling approximately $99.3 million through June 2016 . Other Commitments Sysco has committed to aggregate product purchases for resale in order to benefit from a centralized approach to purchasing. A majority of these agreements expire within one year ; however, certain agreements have terms through fiscal 2019 . These agreements commit the company to a minimum volume at various pricing terms, including fixed pricing, variable pricing or a combination thereof. Minimum amounts committed to as of June 27, 2015 totaled approximately $3.4 billion . Minimum amounts committed to by year are as follows: Amount (In thousands) 2016 $ 2,553,305 2017 818,521 2018 29,035 2019 2,863 2020 2,863 2021 1,491 Sysco has contracts with various third party service providers to receive information technology services. The services have been committed for periods up to fiscal 2019 and may be extended. As of June 27, 2015 , the total remaining cost of the services over that period is expected to be approximately $485.5 million . A portion of this committed amount may be reduced by Sysco utilizing less than estimated resources and can be increased by Sysco utilizing more than estimated resources. Certain agreements allow adjustments for inflation. Sysco may also cancel a portion or all of the services provided subject to termination fees that decrease over time. If Sysco were to terminate all of the services in fiscal 2016 , the estimated termination fees incurred in fiscal 2016 would be approximately $18.1 million . |
Business Segment Information
Business Segment Information | 12 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The company has aggregated its operating companies into two reporting segments, Broadline and SYGMA, as defined in the accounting literature related to disclosures about segments of an enterprise. The Broadline reportable segment is an aggregation of the company’s U.S. and International Broadline segments located in the Bahamas, Canada, Costa Rica and Ireland. Broadline operating companies distribute a full line of food products and a wide variety of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations. "Other" financial information is attributable to the company's other operating segments, including the company's specialty produce, custom-cut meat operations, lodging industry segments, a company that distributes specialty imported products, a company that distributes to international customers and the company’s Sysco Ventures platform, which includes a suite of technology solutions that help support the business needs of Sysco’s customers. In fiscal 2015 , our leadership structure was realigned and now our custom-cut meat operations no longer report through our U.S. broadline leadership. As a result, these operations are no longer included in our Broadline segment and now reported in "Other." Prior year amounts have been reclassified to conform to the current year presentation. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Intersegment sales primarily represent products the Broadline and SYGMA operating companies procured from the specialty produce, custom-cut meat operations, imported specialty products and a company that distributes to international customers. Management evaluates the performance of each of the operating segments based on its respective operating income results. Corporate expenses and adjustments generally include all expenses of the corporate office and Sysco’s shared service center. These also include all share-based compensation costs. The following table sets forth the financial information for Sysco’s business segments: Fiscal Year 2015 2014 2013 (In thousands) Sales: Broadline $ 38,652,211 $ 36,808,051 $ 35,284,529 SYGMA 6,076,215 6,177,804 5,780,103 Other 5,270,518 4,678,954 4,388,261 Intersegment sales (1,318,192 ) (1,148,097 ) (1,041,660 ) Total $ 48,680,752 $ 46,516,712 $ 44,411,233 Operating income: Broadline $ 2,567,954 $ 2,426,908 $ 2,361,442 SYGMA 20,521 38,048 52,016 Other 135,885 142,419 139,337 Total segments 2,724,360 2,607,375 2,552,795 Corporate expenses and adjustments (1,494,998 ) (1,020,253 ) (894,317 ) Total operating income 1,229,362 1,587,122 1,658,478 Interest expense 254,807 123,741 128,495 Other expense (income), net (33,592 ) (12,243 ) (17,472 ) Earnings before income taxes $ 1,008,147 $ 1,475,624 $ 1,547,455 Depreciation and amortization: Broadline $ 278,553 $ 296,267 $ 303,084 SYGMA 29,753 28,164 28,059 Other 54,086 41,704 38,721 Total segments 362,392 366,135 369,864 Corporate 218,572 189,927 142,684 Total $ 580,964 $ 556,062 $ 512,548 Capital expenditures: Broadline $ 199,831 $ 276,314 $ 265,578 SYGMA 36,948 34,671 18,078 Other 69,193 101,128 66,182 Total segments 305,972 412,113 349,838 Corporate 236,858 111,093 162,024 Total $ 542,830 $ 523,206 $ 511,862 Assets: Broadline $ 7,730,239 $ 8,611,776 $ 9,893,743 SYGMA 512,044 513,587 485,520 Other 1,415,038 1,379,910 1,279,119 Total segments 9,657,321 10,505,273 11,658,382 Corporate 8,331,960 2,635,840 1,007,384 Total $ 17,989,281 $ 13,141,113 $ 12,665,766 The sales mix for the principal product categories for each fiscal year is as follows: Fiscal Year 2015 2014 2013 (In thousands) Fresh and frozen meats $ 10,080,290 $ 8,809,148 $ 8,242,423 Canned and dry products 7,999,250 8,383,007 8,310,634 Frozen fruits, vegetables, bakery and other 6,339,537 6,196,362 6,023,990 Dairy products 5,199,036 4,956,895 4,669,986 Poultry 5,189,496 4,814,949 4,580,445 Fresh produce 3,828,298 3,725,108 3,540,027 Paper and disposables 3,507,007 3,438,074 3,364,965 Seafood 2,490,523 2,401,021 2,167,588 Beverage products 1,754,944 1,671,000 1,643,034 Janitorial products 1,102,855 1,050,187 1,013,488 Equipment and smallwares 661,254 678,454 637,680 Medical supplies 528,262 392,507 216,973 Total $ 48,680,752 $ 46,516,712 $ 44,411,233 Information concerning geographic areas is as follows: Fiscal Year 2015 2014 2013 (In thousands) Sales: (1) U.S. $ 43,146,591 $ 40,612,963 $ 38,985,715 Canada 4,727,742 4,923,672 4,698,814 Other 806,419 980,077 726,704 Total $ 48,680,752 $ 46,516,712 $ 44,411,233 Long-lived assets: (2) U.S. $ 3,519,610 $ 3,520,449 $ 3,593,346 Canada 317,231 347,440 307,605 Other 145,302 117,729 77,120 Total $ 3,982,143 $ 3,985,618 $ 3,978,071 (1) Represents sales to external customers from businesses operating in these countries. (2) Long-lived assets represents net property, plant and equipment reported in the country in which they are held. |
Supplemental Guarantor Informat
Supplemental Guarantor Information - Subsidiary Guarantees | 12 Months Ended |
Jun. 27, 2015 | |
Supplemental Guarantor Information - Subsidiary Guarantees [Abstract] | |
Supplemental Guarantor Information - Subsidiary Guarantees | SUPPLEMENTAL GUARANTOR INFORMATION – SUBSIDIARY GUARANTEES On January 19, 2011, the wholly-owned U.S. Broadline subsidiaries of Sysco Corporation entered into full and unconditional guarantees of all outstanding senior notes and debentures of Sysco Corporation. Borrowings under the company’s revolving credit facility supporting the company’s U.S. and Canadian commercial paper programs are also covered under these guarantees. As of June 27, 2015 , Sysco had a total of $7.3 billion in senior notes, debentures and commercial paper outstanding that was covered by these guarantees, including the $5 billion of senior notes issued in October 2014. See Note 11, "Debt and Other Financing Arrangements," for further discussion of the October 2014 senior notes issuance. All subsidiary guarantors are 100% -owned by the parent company, all guarantees are full and unconditional and all guarantees are joint and several, except that the guarantee of any subsidiary guarantor with respect to a series of senior notes or debentures may be released under certain customary circumstances. If we exercise our defeasance option with respect to the senior notes or debentures of any series, then any subsidiary guarantor effectively will be released with respect to that series. Further, each subsidiary guarantee will remain in full force and effect until the earliest to occur of the date, if any, on which (1) the applicable subsidiary guarantor shall consolidate with or merge into Sysco Corporation or any successor of Sysco Corporation and (2) Sysco Corporation or any successor of Sysco Corporation consolidates with or merges into the applicable subsidiary guarantor. The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (the majority of the company's U.S. Broadline subsidiaries) and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries. Condensed Consolidating Balance Sheet June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 4,894,387 $ 4,012,924 $ 2,586,993 $ 11,494,304 Investment in subsidiaries 9,088,455 — — (9,088,455 ) — Plant and equipment, net 510,285 1,694,659 1,777,199 3,982,143 Other assets 371,802 522,566 1,618,466 2,512,834 Total assets $ 14,864,929 $ 6,230,149 $ 5,982,658 $ (9,088,455 ) $ 17,989,281 Current liabilities $ 5,851,364 $ 1,658,558 $ 1,889,693 $ 9,399,615 Intercompany payables (receivables) 973,497 (1,996,915 ) 1,023,418 — Long-term debt 2,154,923 10,121 106,781 2,271,825 Other liabilities 624,795 278,458 113,060 1,016,313 Noncontrolling interest — — 41,304 $ 41,304 Shareholders’ equity 5,260,350 6,279,927 2,808,402 (9,088,455 ) 5,260,224 Total liabilities and shareholders’ equity $ 14,864,929 $ 6,230,149 $ 5,982,658 $ (9,088,455 ) $ 17,989,281 Condensed Consolidating Balance Sheet June 28, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 254,766 $ 3,928,660 $ 2,498,546 $ — $ 6,681,972 Investment in subsidiaries 8,013,214 — — (8,013,214 ) — Plant and equipment, net 496,953 1,783,262 1,705,403 — 3,985,618 Other assets 317,208 524,468 1,631,847 — 2,473,523 Total assets $ 9,082,141 $ 6,236,390 $ 5,835,796 $ (8,013,214 ) $ 13,141,113 Current liabilities $ 793,240 $ 1,008,366 $ 2,566,024 $ — $ 4,367,630 Intercompany payables (receivables) 20,107 (239,539 ) 219,432 — — Long-term debt 2,321,721 14,094 21,515 — 2,357,330 Other liabilities 680,378 328,185 140,895 — 1,149,458 Shareholders’ equity 5,266,695 5,125,284 2,887,930 (8,013,214 ) 5,266,695 Total liabilities and shareholders’ equity $ 9,082,141 $ 6,236,390 $ 5,835,796 $ (8,013,214 ) $ 13,141,113 Condensed Consolidating Statement of Comprehensive Income Year Ended June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 32,626,221 $ 17,477,986 $ (1,423,455 ) $ 48,680,752 Cost of sales — 26,572,257 14,980,434 (1,423,455 ) 40,129,236 Gross profit — 6,053,964 2,497,552 — 8,551,516 Operating expenses 1,232,956 3,709,320 2,379,878 — 7,322,154 Operating income (loss) (1,232,956 ) 2,344,644 117,674 — 1,229,362 Interest expense (income) 323,918 (108,233 ) 39,122 — 254,807 Other expense (income), net (9,496 ) (3,609 ) (20,487 ) — (33,592 ) Earnings (losses) before income taxes (1,547,378 ) 2,456,486 99,039 — 1,008,147 Income tax (benefit) provision (493,263 ) 783,066 31,571 — 321,374 Equity in earnings of subsidiaries 1,740,888 — — (1,740,888 ) — Net earnings 686,773 1,673,420 67,468 (1,740,888 ) 686,773 Other comprehensive income (loss) (280,534 ) (232,185 ) 232,185 (280,534 ) Comprehensive income $ 406,239 $ 1,673,420 $ (164,717 ) $ (1,508,703 ) $ 406,239 Condensed Consolidating Statement of Comprehensive Income Year Ended June 28, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 30,741,979 $ 16,979,494 $ (1,204,761 ) $ 46,516,712 Cost of sales — 24,990,377 14,550,061 (1,204,761 ) 38,335,677 Gross profit — 5,751,602 2,429,433 — 8,181,035 Operating expenses 804,177 3,520,577 2,269,159 — 6,593,913 Operating income (loss) (804,177 ) 2,231,025 160,274 — 1,587,122 Interest expense (income) 232,140 (102,086 ) (6,313 ) — 123,741 Other expense (income), net (7,434 ) 217 (5,026 ) — (12,243 ) Earnings (losses) before income taxes (1,028,883 ) 2,332,894 171,613 — 1,475,624 Income tax (benefit) provision (379,369 ) 860,184 63,276 — 544,091 Equity in earnings of subsidiaries 1,581,047 — — (1,581,047 ) — Net earnings 931,533 1,472,710 108,337 (1,581,047 ) 931,533 Other comprehensive income (loss) (195,726 ) — (3,106 ) 3,106 (195,726 ) Comprehensive income $ 735,807 $ 1,472,710 $ 105,231 $ (1,577,941 ) $ 735,807 Condensed Consolidating Statement of Comprehensive Income Year Ended June 29, 2013 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 30,162,329 $ 15,335,180 $ (1,086,276 ) $ 44,411,233 Cost of sales — 24,385,677 13,115,225 (1,086,276 ) 36,414,626 Gross profit — 5,776,652 2,219,955 — 7,996,607 Operating expenses 694,323 3,610,907 2,032,899 — 6,338,129 Operating income (loss) (694,323 ) 2,165,745 187,056 — 1,658,478 Interest expense (income) 298,474 (177,421 ) 7,442 — 128,495 Other expense (income), net (12,864 ) (4,554 ) (54 ) — (17,472 ) Earnings (losses) before income taxes (979,933 ) 2,347,720 179,668 — 1,547,455 Income tax (benefit) provision (351,474 ) 842,062 64,440 — 555,028 Equity in earnings of subsidiaries 1,620,886 — — (1,620,886 ) — Net earnings 992,427 1,505,658 115,228 (1,620,886 ) 992,427 Other comprehensive income (loss) 215,929 — (33,191 ) 33,191 215,929 Comprehensive income $ 1,208,356 $ 1,505,658 $ 82,037 $ (1,587,695 ) $ 1,208,356 Condensed Consolidating Cash Flows Year Ended June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Net cash provided by (used for): Operating activities $ (359,239 ) $ 2,363,836 $ (449,113 ) $ 1,555,484 Investing activities (160,234 ) (108,099 ) (386,013 ) (654,346 ) Financing activities 3,832,479 (6,022 ) 71,105 3,897,562 Effect of exchange rate on cash — — (81,702 ) (81,702 ) Intercompany activity 1,379,112 (2,251,109 ) 871,997 — Net increase (decrease) in cash and cash equivalents 4,692,118 (1,394 ) 26,274 4,716,998 Cash and cash equivalents at beginning of the period 158,957 27,772 226,317 413,046 Cash and cash equivalents at end of the period $ 4,851,075 $ 26,378 $ 252,591 $ 5,130,044 Condensed Consolidating Cash Flows Year Ended June 28, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Net cash provided by (used for): Operating activities $ (504,119 ) $ 1,541,062 $ 455,872 $ 1,492,815 Investing activities (51,290 ) (171,979 ) (353,569 ) (576,838 ) Financing activities (919,627 ) 3,872 (103 ) (915,858 ) Effect of exchange rate on cash — — 642 642 Intercompany activity 1,426,402 (1,369,478 ) (56,924 ) — Net increase (decrease) in cash and cash equivalents (48,634 ) 3,477 45,918 761 Cash and cash equivalents at beginning of the period 207,591 24,295 180,399 412,285 Cash and cash equivalents at end of the period $ 158,957 $ 27,772 $ 226,317 $ 413,046 Condensed Consolidating Cash Flows Year Ended June 29, 2013 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Net cash provided by (used for): Operating activities $ (449,417 ) $ 1,705,950 $ 255,061 $ 1,511,594 Investing activities (105,314 ) (140,217 ) (666,351 ) (911,882 ) Financing activities (887,707 ) (15,666 ) 29,165 (874,208 ) Effect of exchange rate on cash — — (2,086 ) (2,086 ) Intercompany activity 1,178,922 (1,560,250 ) 381,328 — Net increase (decrease) in cash and cash equivalents (263,516 ) (10,183 ) (2,883 ) (276,582 ) Cash and cash equivalents at beginning of the period 471,107 34,478 183,282 688,867 Cash and cash equivalents at end of the period $ 207,591 $ 24,295 $ 180,399 $ 412,285 |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Jun. 27, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results (Unaudited) | QUARTERLY RESULTS (UNAUDITED) Financial information for each quarter in the years ended June 27, 2015 and June 28, 2014 is set forth below: Fiscal 2015 Quarter Ended September 27, December 27, March 28, June 27, Fiscal Year (In thousands except for per share data) Sales $ 12,445,081 $ 12,087,074 $ 11,746,659 $ 12,401,938 $ 48,680,752 Cost of sales 10,256,364 10,001,937 9,689,161 10,181,774 40,129,236 Gross profit 2,188,717 2,085,137 2,057,498 2,220,164 8,551,516 Operating expenses 1,723,104 1,769,691 1,730,190 2,099,169 7,322,154 Operating income 465,613 315,446 327,308 120,995 1,229,362 Interest expense 30,934 77,042 69,550 77,281 254,807 Other expense (income), net (2,188 ) 2,207 (8,577 ) (25,034 ) (33,592 ) Earnings before income taxes 436,867 236,197 266,335 68,748 1,008,147 Income taxes 158,054 78,218 89,380 (4,278 ) 321,374 Net earnings $ 278,813 $ 157,979 $ 176,955 $ 73,026 $ 686,773 Per share: Basic net earnings $ 0.47 $ 0.27 $ 0.30 $ 0.12 $ 1.16 Diluted net earnings 0.47 0.27 0.30 0.12 1.15 Dividends declared 0.29 0.30 0.30 0.30 1.19 Market price — high/low 39-36 41-36 41-38 39-36 41-36 Fiscal 2014 Quarter Ended September 28, December 28, March 29, June 28, Fiscal Year (In thousands except for per share data) Sales $ 11,714,267 $ 11,237,969 $ 11,277,484 $ 12,286,992 $ 46,516,712 Cost of sales 9,648,780 9,273,018 9,282,743 10,131,136 38,335,677 Gross profit 2,065,487 1,964,951 1,994,741 2,155,856 8,181,035 Operating expenses 1,587,289 1,613,174 1,662,116 1,731,334 6,593,913 Operating income 478,198 351,777 332,625 424,522 1,587,122 Interest expense 30,528 29,784 32,224 31,205 123,741 Other (income), net (4,534 ) (4,211 ) 3,718 (7,216 ) (12,243 ) Earnings before income taxes 452,204 326,204 296,683 400,533 1,475,624 Income taxes 166,614 115,369 115,746 146,362 544,091 Net earnings $ 285,590 $ 210,835 $ 180,937 $ 254,171 $ 931,533 Per share: Basic net earnings $ 0.49 $ 0.36 $ 0.31 $ 0.43 $ 1.59 Diluted net earnings 0.48 0.36 0.31 0.43 1.58 Dividends declared 0.28 0.29 0.29 0.29 1.15 Market price — high/low 36-31 43-31 37-34 38-35 43-31 Percentage change — 2015 vs. 2014: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Fiscal Year Sales 6 % 8 % 4 % 1 % 5 % Operating income (3 ) (10 ) (2 ) (71 ) (23 ) Net earnings (2 ) (25 ) (2 ) (71 ) (26 ) Basic net earnings per share (4 ) (25 ) (3 ) (72 ) (27 ) Diluted net earnings per share (2 ) (25 ) (3 ) (72 ) (27 ) Financial results are impacted by accounting changes and the adoption of various accounting standards. See Note 2, “Changes in Accounting.” |
Summary of Accounting Policies
Summary of Accounting Policies (Policy) | 12 Months Ended |
Jun. 27, 2015 | |
Accounting Policies [Abstract] | |
Business and Consolidation | Business and Consolidation Sysco Corporation, acting through its subsidiaries and divisions (Sysco or the company), is engaged in the marketing and distribution of a wide range of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for approximately 425,000 customers from 197 distribution facilities located throughout the United States (U.S.), Bahamas, Canada and Ireland. Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52-week year ending June 27, 2015 for fiscal 2015 , June 28, 2014 for fiscal 2014 and June 29, 2013 for fiscal 2013 . The accompanying financial statements include the accounts of Sysco and its consolidated subsidiaries. All significant intercompany transactions and account balances have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses. Actual results could differ from the estimates used. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash equivalents such as time deposits, certificates of deposit, short-term investments and all highly liquid instruments with original maturities of three months or less, which are recorded at fair value. |
Accounts Receivable | Accounts Receivable Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts based on a combination of factors. The company utilizes specific criteria to determine uncollectible receivables to be written off including whether a customer has filed for or been placed in bankruptcy, has had accounts referred to outside parties for collection or has had accounts past due over specified periods. In these instances, a specific allowance for doubtful accounts is recorded to reduce the receivable to the net amount reasonably expected to be collected. Allowances are recorded for all other receivables based on an analysis of historical trends of write-offs and recoveries. |
Inventories | Inventories Inventories consisting primarily of finished goods include food and related products and lodging products held for resale and are valued at the lower of cost (first-in, first-out method) or market. Elements of costs include the purchase price of the product and freight charges to deliver the product to the company’s warehouses and are net of certain cash or non-cash consideration received from vendors (see “Vendor Consideration”). |
Plant and Equipment | Plant and Equipment Capital additions, improvements and major replacements are classified as plant and equipment and are carried at cost. Depreciation is recorded using the straight-line method, which reduces the book value of each asset in equal amounts over its estimated useful life, and is included within operating expenses in the consolidated results of operations. Maintenance, repairs and minor replacements are charged to earnings when they are incurred. Upon the disposition of an asset, its accumulated depreciation is deducted from the original cost, and any gain or loss is reflected in current earnings. Certain internal and external costs related to the acquisition and development of internal use software are capitalized within plant and equipment during the application development stages of the project. Applicable interest charges incurred during the construction of new facilities and development of software for internal use are capitalized as one of the elements of cost and are amortized over the assets’ estimated useful lives. |
Long-Lived Assets | Long-Lived Assets Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill and intangibles represent the excess of cost over the fair value of tangible net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. The reporting units used to assess goodwill impairment are the company’s 13 operating segments as described in Note 21, “Business Segment Information.” The components within each of the 13 operating segments have similar economic characteristics and therefore are aggregated into 13 reporting units. The evaluation of fair value requires the use of projections, estimates and assumptions as to the future performance of the operations in performing a discounted cash flow analysis, as well as assumptions regarding sales and earnings multiples that would be applied in comparable acquisitions. Intangibles with definite lives are amortized over their useful lives in a manner consistent with underlying cash flow, which generally ranges from two to ten years . Management reviews finite-lived intangibles for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the finite-lived intangibles are estimated over the intangible asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the finite-lived intangible asset may not be recoverable, the potential impairment is measured at fair value. |
Restricted Cash | Restricted Cash Sysco is required by its insurers to collateralize a part of the self-insured portion of its workers’ compensation and liability claims. Sysco has chosen to satisfy these collateral requirements by depositing funds in insurance trusts or by issuing letters of credit. |
Derivative Financial Instruments | Derivative Financial Instruments All derivatives are recognized as assets or liabilities within the consolidated balance sheets at fair value at their gross values. Gains or losses on derivative financial instruments designated as fair value hedges are recognized immediately in the consolidated results of operations, along with the offsetting gain or loss related to the underlying hedged item. Gains or losses on derivative financial instruments designated as cash flow hedges are recorded as a separate component of shareholders’ equity from inception of the hedges to their settlement, at which time gains or losses are reclassified to the Consolidated Results of Operations in conjunction with the recognition of the underlying hedged item. In the normal course of business, Sysco enters into forward purchase agreements for the procurement of fuel and electricity. Certain of these agreements meet the definition of a derivative. However, the company elected to use the normal purchase and sale exemption available under derivatives accounting literature; therefore, these agreements are not recorded at fair value. |
Investments in Corporate-Owned Life Insurance | Investments in Corporate-Owned Life Insurance Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses. The company does not record deferred tax balances related to cash surrender value gains or losses for the policies that Sysco has the ability and intent to hold to maturity. Deferred tax balances are recorded for those policies that Sysco intends to redeem prior to maturity. |
Treasury Stock | Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of all foreign subsidiaries are translated at current exchange rates. Related translation adjustments are recorded as a component of accumulated other comprehensive income (loss). |
Revenue Recognition | Revenue Recognition The company recognizes revenue from the sale of a product when it is considered to be realized or realizable and earned. The company determines these requirements to be met at the point at which the product is delivered to the customer. 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. Sales tax collected from customers is not included in revenue but rather recorded as a liability due to the respective taxing authorities. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are considered to be a single nonmonetary transaction. As such, the company records the net effect of such transactions in the consolidated results of operations within sales. |
Vendor Consideration | Vendor Consideration Sysco recognizes consideration received from vendors when the services performed in connection with the monies received are completed and when the related product has been sold by Sysco as a reduction to cost of sales. There are several types of cash consideration received from vendors. In many instances, the vendor consideration is in the form of a specified amount per case or per pound. In these instances, Sysco will recognize the vendor consideration as a reduction of cost of sales when the product is sold. In the situations in which the vendor consideration is not related directly to specific product purchases, Sysco will recognize these as a reduction of cost of sales when the earnings process is complete, the related service is performed and the amounts are realized. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs include costs associated with the selection of products and delivery to customers. |
Insurance Program | Insurance Program Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. Liabilities associated with these risks are estimated in part by considering historical claims experience, medical cost trends, demographic factors, severity factors and other actuarial assumptions. |
Share-Based Compensation | Share-Based Compensation Sysco recognizes expense for its share-based compensation based on the fair value of the awards that are granted. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company’s stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. Cash flows resulting from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows on the consolidated cash flows statements. |
Income Taxes | Income Taxes Sysco recognizes deferred tax assets and liabilities based on the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. Sysco recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. The amount recognized is measured as the largest amount of tax benefit that has greater than a 50% likelihood of being realized upon settlement. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, estimated amounts required by the accounting guidance related to uncertain tax positions have been accrued and are classified as a component of income taxes in the consolidated results of operations. The determination of the company’s provision for income taxes requires significant judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes primarily reflects a combination of income earned and taxed in the various U.S. federal and state, as well as various foreign jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
Acquisitions | Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. The balances included in the consolidated balance sheets related to recent acquisitions are based upon preliminary information and are subject to change when final asset and liability valuations are obtained. Subsequent changes to the preliminary balances are reflected retrospectively, if material. Material changes to the preliminary allocations are not anticipated by management. |
Non-controlling interest | Noncontrolling interest In fiscal 2015, Sysco acquired a 50% interest in a foodservice company in Costa Rica. It was determined that consolidation of the entity was appropriate and, therefore, the financial position, results of operations and cash flows for this company have been included in Sysco’s financial statements. The value of the 50% noncontrolling interest is considered redeemable due to certain features of the investment agreement and has been presented as mezzanine equity, which is outside of permanent equity, in the consolidated balance sheets. The income attributable to the noncontrolling interest is located within other expense (income), net in the consolidated results of operations, as this amount is not material. The non-cash add back for the change in the value of the noncontrolling interest is located within Other non-cash items on the consolidated cash flows. |
New Accounting Pronouncements | Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This update amends ASC 740, “Income Taxes,” to require that in certain cases, an unrecognized tax benefit, or portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when such items exist in the same taxing jurisdiction. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, which was fiscal 2015 for Sysco. The company’s adoption of this guidance did not have a material impact on the company’s balance sheets, results of operations or cash flows. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . The update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. We adopted this standard for the fiscal year ended June 27, 2015 . Although the new guidance had no impact on the company’s results of operations, the debt issuance costs presented as assets within the company’s consolidated balance sheet as of June 28, 2014 , of $26.8 million has been reclassified as reductions of the related debt liability as a result of early adoption. Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets In April 2015, the FASB issued ASU 2015-04, "Compensation-Retirement Benefits (Topic 715), Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets." The amendments in this ASU provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. Sysco early adopted this standard in fiscal 2015 using a June 30th measurement date as a practical expedient. The adoption did not have a material impact on the financial position of Sysco. Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update amends ASC 205, “Presentation of Financial Statements,” and ASC 360, “Property, Plant, and Equipment,” primarily to change the criteria for when a disposal is required to be reported as a discontinued operation. A disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the entity’s operations or financial results. The amendments in this update specify presentation and disclosure requirements for discontinued operations as well as disclosure requirements for other disposals that do not qualify as discontinued operations. The amendments in this update are effective for all disposals or classifications as held for sale, including upon acquisition, of a component of an entity that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years, which is fiscal 2016 for Sysco. Early adoption is permitted. Sysco will implement on any related transactions, prospectively. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers.” This update creates ASC 606, “Revenue from Contracts with Customers,” and supersedes the revenue recognition requirements in ASC 605, “Revenue Recognition.” Additionally, other sections of the ASC were amended to be consistent with the guidance in this update. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. A five-step revenue recognition model is to be applied to achieve this core principle. ASC 606 also specifies comprehensive disclosures to help users of financial statements understand the nature, amount, timing and uncertainty of revenue that is recognized. The amendments in this update are effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period, which is fiscal 2019 for Sysco. Early adoption is not permitted. Sysco is currently evaluating the impact this update will have on its financial statements. Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern." This ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for fiscal years—and interim periods within those fiscal years—beginning after December 15, 2016, with early adoption permitted. The Company is currently reviewing the provisions of the new standard and whether it will early adopt. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value table | The following tables present the company’s assets and liabilities measured at fair value on a recurring basis as of June 27, 2015 and June 28, 2014 : Assets and Liabilities Measured at Fair Value as of June 27, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 4,677,735 $ 63,689 $ — $ 4,741,424 Restricted cash 168,274 — — 168,274 Other assets Interest rate swap agreements — 12,597 — 12,597 Total assets at fair value $ 4,846,009 $ 76,286 $ — $ 4,922,295 Liabilities: Current portion of long-term debt $ — $ 1,257,127 $ — $ 1,257,127 Long-term debt — $ 503,379 $ — $ 503,379 Total liabilities at fair value $ — $ 1,760,506 $ — $ 1,760,506 Assets and Liabilities Measured at Fair Value as of June 28, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 2,770 $ 131,966 $ — $ 134,736 Restricted cash 145,412 — — 145,412 Other assets Interest rate swap agreement — 4,828 — 4,828 Total assets at fair value $ 148,182 $ 136,794 $ — $ 284,976 Liabilities: Accrued expenses Interest rate swap agreements $ — $ 133,466 $ — $ 133,466 Total liabilities at fair value $ — $ 133,466 $ — $ 133,466 |
Allowance for Doubtful Accoun33
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of valuation and qualifying accounts disclosure table | A summary of the activity in the allowance for doubtful accounts appears below: 2015 2014 2013 (In thousands) Balance at beginning of period $ 49,902 $ 47,345 $ 42,919 Charged to costs and expenses 17,996 34,429 35,243 Customer accounts written off, net of recoveries (25,719 ) (31,721 ) (30,824 ) Other adjustments (459 ) (151 ) 7 Balance at end of period $ 41,720 $ 49,902 $ 47,345 |
Plant and Equipment (Tables)
Plant and Equipment (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of plant and equipment, including the related accumulated depreciation table | A summary of plant and equipment, including the related accumulated depreciation, appears below: June 27, 2015 June 28, 2014 Estimated Useful Lives (In thousands) Plant and equipment at cost: Land $ 441,939 $ 431,694 Buildings and improvements 3,877,817 3,816,387 10-30 years Fleet and equipment 2,836,554 2,726,415 3-10 years Computer hardware and software 1,234,138 1,109,379 3-7 years Total plant and equipment at cost 8,390,448 8,083,875 Accumulated depreciation (4,408,305 ) (4,098,257 ) Total plant and equipment, net $ 3,982,143 $ 3,985,618 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill rollforward table by reporting segments | The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows: Broadline SYGMA Other Total (In thousands) Carrying amount as of June 29, 2013 $ 1,123,419 $ 32,609 $ 728,207 $ 1,884,235 Goodwill acquired during year 48,425 — 14,408 62,833 Currency translation/other 3,649 — (45 ) 3,604 Carrying amount as of June 28, 2014 1,175,493 32,609 742,570 1,950,672 Goodwill acquired during year 79,802 — 8,408 88,210 Currency translation/other (78,524 ) — (541 ) (79,065 ) Carrying amount as of June 27, 2015 $ 1,176,771 $ 32,609 $ 750,437 $ 1,959,817 |
Amortized intangible assets table | The following table presents details of the company’s amortizable intangible assets: June 27, 2015 June 28, 2014 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Customer relationships $ 236,916 $ (130,506 ) $ 106,410 $ 246,019 $ (124,223 ) $ 121,796 Non-compete agreements 33,436 (14,525 ) 18,911 33,164 (10,629 ) 22,535 Trademarks 10,768 (4,117 ) 6,651 12,063 (3,200 ) 8,863 Other 13,437 (4,871 ) 8,566 13,498 (2,070 ) 11,428 Total amortizable intangible assets $ 294,557 $ (154,019 ) $ 140,538 $ 304,744 $ (140,122 ) $ 164,622 |
Indefinite-lived intangible assets table | The following table presents details of the company’s indefinite-lived intangible assets: June 27, 2015 June 28, 2014 (In thousands) Trademarks $ 13,304 $ 11,639 Licenses 966 966 Total indefinite-lived intangible assets $ 14,271 $ 12,605 |
Intangibles estimated amortization expense for the next five years table | The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 27, 2015 is shown below: Amount (In thousands) 2016 $ 33,570 2017 29,264 2018 26,162 2019 16,245 2020 12,215 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives balance sheet location table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of each fiscal year-end are as follows: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swap agreements: June 27, 2015 Other assets $ 12,597 Accrued expenses $ — June 28, 2014 Other assets 4,828 Accrued expenses 133,466 |
Derivatives financial statement performance table | The location and effect of derivative instruments and related hedged items on the consolidated comprehensive income for each fiscal year presented on a pretax basis are as follows: Amount of (Gain) or Loss Recognized in Comprehensive Income Location of (Gain) or Loss Recognized in Comprehensive Income 2015 2014 2013 (In thousands) Fair Value Hedge Relationships: Interest rate swap agreements Interest expense $ (21,960 ) $ (10,879 ) $ (4,492 ) Cash Flow Hedge Relationships: Forward starting interest rate swap agreements Other comprehensive income — $ 133,466 N/A Forward starting interest rate swap agreements (1) Interest expense 8,305 625 626 (1) Represents amortization of losses on forward starting interest rate swap agreements that were previously settled. |
Self-Insured Liabilities (Table
Self-Insured Liabilities (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Loss Contingency [Abstract] | |
Summary of the activity in the self-insured liabilities | A summary of the activity in self-insured liabilities appears below: 2015 2014 2013 (In thousands) Balance at beginning of period $ 194,476 $ 147,598 $ 129,749 Charged to costs and expenses 367,025 375,267 352,374 Payments (368,189 ) (328,389 ) (334,525 ) Balance at end of period $ 193,312 $ 194,476 $ 147,598 |
Debt and Other Financing Arra38
Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Sysco’s debt consists of the following: June 27, 2015 June 28, 2014 (In thousands) Commercial paper, interest averaging 0.2% as of June 28, 2014 $ — $ 129,999 Senior notes, interest at 0.55%, maturing in fiscal 2015 — 299,015 Senior notes, interest at 5.25%, maturing in fiscal 2018 (1) 502,608 502,521 Senior notes, interest at 5.375%, maturing in fiscal 2019 (1) 248,824 248,509 Senior notes, interest at 2.6%, maturing in fiscal 2022 (1) 444,212 443,384 Debentures, interest at 7.16%, maturing in fiscal 2027 (2) 50,000 50,000 Debentures, interest at 6.5%, maturing in fiscal 2029 (1) 223,610 223,505 Senior notes, interest at 5.375%, maturing in fiscal 2036 (1) 496,775 495,636 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1) 244,415 244,180 Senior notes, interest at 1.45%, maturing in fiscal 2018 (1), (3) 500,801 — Senior notes, interest at 2.35% maturing in fiscal 2020 (1), (3) 752,070 — Senior notes, interest at 3.00% , maturing in fiscal 2022 (1), (3) 745,136 — Senior notes, interest at 3.50% , maturing in fiscal 2025 (1), (3) 1,239,116 — Senior notes, interest at 4.35%, maturing in fiscal 2035 (1), (3) 742,664 — Senior notes, interest at 4.50%, maturing in fiscal 2045 (1), (3) 981,813 — Notes payable, capital leases, and other debt, interest averaging 2.81% and maturing at various dates to fiscal 2026 as of June 27, 2015 and 2.59% and maturing at various dates to fiscal 2029 as of June 28, 2014 149,833 96,333 Total debt 7,321,877 2,733,082 Less current maturities of long-term debt (4,979,301 ) (304,777 ) Less notes payable (70,751 ) (70,975 ) Net long-term debt $ 2,271,825 $ 2,357,330 (1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption. (2) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. (3) Represents senior notes that were redeemed in July 2015 under a mandatory redemption feature. The senior notes were classified as current maturities of long-term debt as of June 27, 2015. Details of the senior notes are below: Maturity Date Par Value (in millions) Coupon Rate Pricing (percentage of par) October 2, 2017 $ 500 1.45 % 99.962 % October 2, 2019 750 2.35 99.864 October 2, 2021 750 3.00 99.781 October 2, 2024 1,250 3.50 99.616 October 2, 2034 750 4.35 99.841 October 2, 2044 1,000 4.50 98.992 |
Long-term debt principal payments for the next five years table | As of June 27, 2015 , the principal payments required to be made during the next five fiscal years on long-term debt, excluding notes payable and commercial paper, are shown below: Amount (In thousands) 2016 $ 5,007,943 2017 29,140 2018 506,694 2019 269,532 2020 3,387 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Leases [Abstract] | |
Aggregate minimum lease payments for non-capitalized long-term leases for the next five years and thereafter table | Aggregate minimum lease payments by fiscal year under existing long-term operating leases are as follows: Amount (In thousands) 2016 $ 47,559 2017 38,183 2018 27,831 2019 20,320 2020 16,661 Thereafter 45,670 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other long-term liabilities | The following table presents details of the company’s other long-term liabilities: June 27, 2015 June 28, 2014 (In thousands) Retirement Plan $ 227,352 $ 270,189 Supplemental executive retirement plan 420,704 438,288 Other 286,666 319,401 Total $ 934,722 $ 1,027,878 |
Company-Sponsored Employee Be41
Company-Sponsored Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plans funded status table | The funded status of Sysco’s company-sponsored defined benefit plans is presented in the table below. The caption “Pension Benefits” in the tables below includes both the Retirement Plan and the SERP. Pension Benefits Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 3,671,708 $ 3,089,022 $ 12,611 $ 14,248 Service cost 11,263 9,657 536 546 Interest cost 171,120 160,436 590 748 Amendments 914 (347 ) — — Actuarial (gain) loss, net (86,129 ) 492,720 (1,050 ) (3,280 ) Total disbursements (89,749 ) (79,780 ) 329 349 Benefit obligation at end of year 3,679,127 3,671,708 13,016 12,611 Change in plan assets: Fair value of plan assets at beginning of year 2,937,519 2,518,009 — — Actual return on plan assets 80,225 474,538 — — Employer contribution 75,133 24,752 (329 ) (349 ) Total disbursements (89,749 ) (79,780 ) 329 349 Fair value of plan assets at end of year 3,003,128 2,937,519 — — Funded status at end of year $ (675,999 ) $ (734,189 ) $ (13,016 ) $ (12,611 ) |
Defined benefit plans amounts recognized in balance sheet table | The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: Pension Benefits Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Current accrued benefit liability (Accrued expenses) $ (27,942 ) $ (25,712 ) $ (327 ) $ (313 ) Non-current accrued benefit liability (Other long-term liabilities) (648,057 ) (708,477 ) (12,689 ) (12,298 ) Net amount recognized $ (675,999 ) $ (734,189 ) $ (13,016 ) $ (12,611 ) |
Defined benefit plans amounts recognized in accumulated other comprehensive loss (income) table | Accumulated other comprehensive loss (income) as of June 27, 2015 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: Pension Benefits Other Postretirement Plans Total (In thousands) Prior service cost $ 50,109 $ 730 $ 50,839 Actuarial losses (gains) 1,101,051 (6,903 ) 1,094,148 Total $ 1,151,160 $ (6,173 ) $ 1,144,987 Accumulated other comprehensive loss (income) as of June 28, 2014 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: Pension Benefits Other Postretirement Plans Total (In thousands) Prior service cost $ 60,306 $ 898 $ 61,204 Actuarial losses (gains) 1,058,651 (6,287 ) 1,052,364 Total $ 1,118,957 $ (5,389 ) $ 1,113,568 |
Defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets table | Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: Pension Benefits (1) Other Postretirement Plans June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 3,667,031 $ 3,660,227 $ 13,016 $ 12,611 Fair value of plan assets at end of year 3,003,128 2,937,519 — — (1) Information under Pension Benefits as of June 27, 2015 and June 28, 2014 includes both the Retirement Plan and the SERP. |
Defined benefit plans amounts included accumulated other comprehensive loss (income) that are expected to be recognized in net company-sponsored benefit cost in next fiscal year table | Amounts included in accumulated other comprehensive loss (income) as of June 27, 2015 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2016 are: Pension Benefits Other Postretirement Plans Total (In thousands) Amortization of prior service cost $ 11,202 $ 169 $ 11,371 Amortization of actuarial losses (gains) 22,186 (481 ) 21,705 Total $ 33,388 $ (312 ) $ 33,076 |
Defined benefit plans estimated future benefit payments table | Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: Pension Benefits Other Postretirement Plans (In thousands) 2016 $ 105,555 $ 327 2017 115,844 546 2018 126,413 824 2019 137,300 1,035 2020 148,517 1,213 Subsequent five years 906,784 6,658 |
Defined benefit plans weighted average assumptions used in calculating benefit obligations table | Weighted-average assumptions used to determine benefit obligations as of year-end were: June 27, 2015 June 28, 2014 Discount rate — Retirement Plan 4.84 % 4.74 % Discount rate — SERP 4.63 4.59 Discount rate — Other Postretirement Plans 4.84 4.74 Rate of compensation increase — Retirement Plan 3.89 3.89 |
Defined benefit plans weighted average assumptions used in calculating net periodic benefit costs table | Weighted-average assumptions used to determine net company-sponsored pension costs and other postretirement benefit costs for each fiscal year were: 2015 2014 2013 Discount rate — Retirement Plan 4.74 % 5.32 % 4.81 % Discount rate — SERP 4.59 % 4.94 % 3.96 % (1) Discount rate — Other Postretirement Plans 4.74 % 5.32 % 4.81 % Expected rate of return — Retirement Plan 7.75 % 7.75 % 7.75 % Rate of compensation increase — Retirement Plan 3.89 % 3.89 % 5.30 % (1) The SERP was remeasured in November 2012 as a result of the plan freeze discussed above. The rate in the table above reflects the discount rate as of this remeasurement. |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plans components of net benefit cost table | The components of net company-sponsored pension costs for each fiscal year are as follows: Pension Benefits 2015 2014 2013 (In thousands) Service cost $ 11,263 $ 9,657 $ 70,166 Interest cost 171,120 160,436 148,561 Expected return on plan assets (228,624 ) (192,795 ) (171,201 ) Amortization of prior service cost 11,111 11,145 9,899 Amortization of actuarial loss 19,871 16,327 72,624 Curtailment loss — — 8,293 Net pension (benefits) costs $ (15,259 ) $ 4,770 $ 138,342 |
Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: Pension Benefits 2015 2014 2013 (In thousands) Amortization of prior service cost $ 11,111 $ 11,145 $ 18,192 Amortization of actuarial loss 19,871 16,327 72,624 Prior service cost arising in current year (914 ) 347 (53,902 ) Actuarial (loss) gain arising in current year (62,270 ) (210,978 ) 366,957 Net pension costs $ (32,202 ) $ (183,159 ) $ 403,871 |
Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plans target and actual asset allocation table | The company’s target and actual investment allocation as of June 27, 2015 is as follows: Target Asset Allocation Actual Asset Allocation U.S. equity 24 % 24 % International equity 24 25 Long duration fixed income 27 26 High yield fixed income 7 7 Alternative investments 18 18 100 % |
Defined benefit plans fair value of plans assets by major category table | The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 27, 2015 : Assets Measured at Fair Value as of June 27, 2015 Level 1 Level 2 Level 3 Total (In thousands) Cash and cash equivalents $ — $ 21,968 $ — $ 21,968 U.S. equity: U.S. large-cap (1) 233,525 333,709 — $ 567,234 U.S. small-cap 154,598 — — 154,598 International equity (2) — 732,595 — $ 732,595 Long duration fixed income: Corporate bonds — 567,280 — $ 567,280 U.S. government and agency securities — 190,125 — 190,125 Other — 4,343 — 4,343 Derivatives, net (3) — 1,078 — $ 1,078 High yield fixed income (2) — 204,175 — 204,175 Alternative investments: Hedge Fund (2) — 335,265 335,265 Real estate (2) — 25,386 138,283 163,669 Private equity (2) — — 52,891 $ 52,891 Total investments at fair value $ 388,123 $ 2,080,659 $ 526,439 $ 2,995,221 Other (4) 7,907 Fair value of plan assets at end of year $ 3,003,128 (1) Include direct investments and investment funds. (2) Include investments in investment funds only. (3) Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $1.4 million ; the fair value of liability positions totaled $0.3 million . (4) Include primarily plan receivables and payables, net. The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 28, 2014 : Assets Measured at Fair Value as of June 28, 2014 Level 1 Level 2 Level 3 Total (In thousands) Cash and cash equivalents $ — $ 51,066 $ — $ 51,066 U.S. equity: U.S. large-cap (1) 218,165 777,627 — 995,792 U.S. small-cap 135,781 — — 135,781 International equity (2) — 717,022 — 717,022 Long duration fixed income: Corporate bonds — 568,419 — 568,419 U.S. government and agency securities — 171,617 — 171,617 Other — 4,907 — 4,907 Derivatives, net (3) (127 ) 352 — 225 High yield fixed income (2) — 102,041 — 102,041 Alternative investments: Real estate (2) — 114,250 35,403 149,653 Private equity (2) — — 31,204 31,204 Total investments at fair value $ 353,819 $ 2,507,301 $ 66,607 $ 2,927,727 Other (4) 9,792 Fair value of plan assets at the end of the year $ 2,937,519 (1) Include direct investments and investment funds. (2) Include investments in investment funds only. (3) Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $0.8 million ; the fair value of liability positions totaled $0.6 million . (4) Include primarily plan receivables and payables, net. |
Defined benefit plans rollforward of Level 3 plan assets table | The following table sets forth a summary of changes in the fair value of the Retirement Plan’s Level 3 assets for each fiscal year: Real Estate Private Equity Funds Hedge Funds Total Level 3 Measurements (In thousands) Balance, June 29, 2013 $ 64,845 $ 14,375 $ — $ 79,220 Actual return on plan assets: Relating to assets still held at the reporting date 3,044 1,931 — 4,975 Relating to assets sold during the period 3,307 1,767 — 5,074 Purchases and sales, net (35,793 ) 13,131 — (22,662 ) Transfers in and/or out of Level 3 — — — — Balance, June 28, 2014 $ 35,403 $ 31,204 $ — $ 66,607 Actual return on plan assets: Relating to assets still held at the reporting date 8,122 2,438 12,265 22,825 Relating to assets sold during the period 1,062 1,780 — 2,842 Purchases and sales, net 93,696 17,469 323,000 434,165 Transfers in and/or out of Level 3 — — — — Balance, June 27, 2015 $ 138,283 $ 52,891 $ 335,265 $ 526,439 |
Other Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plans components of net benefit cost table | The components of other postretirement benefit costs for each fiscal year are as follows: Other Postretirement Plans 2015 2014 2013 (In thousands) Service cost $ 536 $ 546 $ 541 Interest cost 590 748 614 Amortization of prior service cost 168 168 168 Amortization of actuarial gain (434 ) (143 ) (203 ) Amortization of transition obligation — — 141 Net other postretirement benefit costs $ 860 $ 1,319 $ 1,261 |
Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table | Other changes in benefit obligations recognized in other comprehensive (loss) income related to other postretirement plans for each fiscal year are as follows: Other Postretirement Plans 2015 2014 2013 (In thousands) Amortization of prior service cost $ 168 $ 168 $ 168 Amortization of actuarial gain (434 ) (143 ) (203 ) Amortization of transition obligation — — 141 Actuarial (loss) gain arising in current year 1,050 3,280 (188 ) Net pension costs $ 784 $ 3,305 $ (82 ) |
Multiemployer Employee Benefi42
Multiemployer Employee Benefit Plans (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Multiemployer Plans [Abstract] | |
Multiemployer defined benefit pension plan contributions table | Sysco’s contributions to multiemployer defined benefit pension plans were as follows for each fiscal year: 2015 2014 2013 (In thousands) Individually significant plans $ 32,097 $ 30,402 $ 28,816 All other plans 6,047 45,627 36,923 Total contributions $ 38,144 $ 76,029 $ 65,739 |
Multiemployer individually significant plans statistics table | Pension Protection Act Zone Status Pension Fund EIN-PN As of As of FIP/RP Status Surcharge Imposed Expiration Date(s) of CBA(s) Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green N/A N/A 4/26/14 to 11/7/20 (1) Teamsters Pension Trust Fund of Philadelphia and Vicinity 23-1511735-001 Yellow Yellow Implemented N/A 7/31/16 to 7/20/20 (2) New York State Teamsters 16-6063585-074 Red Red Implemented No 4/30/2017 Truck Drivers and Helpers Local Union No. 355 Retirement Pension 52-6043608-001 Yellow Yellow Implemented N/A 8/31/2015 Minneapolis Food Distributing Industry Pension Plan 41-6047047-001 Green Green Implemented N/A 8/8/2017 (1) Sysco is party to 23 CBAs that require contributions to the Western Conference of Teamsters Pension Trust. Each agreement covers anywhere from less than 1% to 10% of the total contributions Sysco is required to pay the fund. (2) Sysco is party to three CBAs that require contributions to the Teamsters Pension Trust Fund of Philadelphia and Vicinity. One agreement expires July 31, 2016 and covers approximately 5% of the total Contribution Sysco is required to pay the fund. The remaining two agreements expire July 20, 2020 and cover the remaining 95% of the total contributions Sysco is required to pay the fund. |
Multiemployer individually significant plans contributions table | Sysco Contributions Sysco 5% of Total Plan Contributions Pension Fund 2015 2014 2013 Year Ending Year Ending (In thousands) Western Conference of Teamsters Pension Plan $ 23,268 $ 21,893 $ 20,561 No No Teamsters Pension Trust Fund of Philadelphia and Vicinity 2,233 1,977 2,256 No No N.Y. State Teamsters Conference Pension and Retirement Fund 1,455 1,444 1,399 No No Truck Drivers and Helpers Local Union No. 355 Retirement Pension Fund 2,068 1,874 1,624 Yes Yes Minneapolis Food Distributing Industry Pension Plan 3,073 3,214 2,976 Yes Yes |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share table | A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations for the periods presented follows: 2015 2014 2013 (In thousands, except for share and per share data) Numerator: Net earnings $ 686,773 $ 931,533 $ 992,427 Denominator: Weighted-average basic shares outstanding 592,072,308 585,988,084 589,397,807 Dilutive effect of share-based awards 4,776,726 4,228,136 3,277,303 Weighted-average diluted shares outstanding 596,849,034 590,216,220 592,675,110 Basic earnings per share: $ 1.16 $ 1.59 $ 1.68 Diluted earnings per share: $ 1.15 $ 1.58 $ 1.67 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of components of other comprehensive (loss) income and related tax effects | A summary of the components of other comprehensive income (loss) and the related tax effects for each of the years presented is as follows: 2015 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 Operating expenses $ 11,279 $ 4,331 $ 6,948 Amortization of actuarial loss (gain), net Operating expenses 19,437 7,464 11,973 Total reclassification adjustments 30,716 11,795 18,921 Other comprehensive income before reclassification adjustments: Prior service cost arising in current year N/A (914 ) (351 ) (563 ) Net actuarial gain arising in current year N/A (61,221 ) (23,509 ) (37,712 ) Total other comprehensive income before reclassification adjustments (62,135 ) (23,860 ) (38,275 ) Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (232,185 ) — (232,185 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,305 3,189 5,116 Other comprehensive income before reclassification adjustments: Change in fair value of cash flow hedges N/A (55,374 ) (21,263 ) (34,111 ) Total other comprehensive income (loss) $ (310,673 ) $ (30,139 ) $ (280,534 ) 2014 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 Operating expenses $ 11,313 $ 4,343 $ 6,970 Amortization of actuarial loss (gain), net Operating expenses 16,184 6,216 9,968 Total reclassification adjustments 27,497 10,559 16,938 Other comprehensive income before reclassification adjustments: Prior service cost arising in current year N/A 347 133 214 Net actuarial gain arising in current year N/A (207,698 ) (79,756 ) (127,942 ) Total other comprehensive income before reclassification adjustments (207,351 ) (79,623 ) (127,728 ) Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (3,106 ) — (3,106 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 625 240 385 Other comprehensive income before reclassification adjustments: Change in fair value of cash flow hedges N/A (133,466 ) (51,251 ) (82,215 ) Total other comprehensive income (loss) $ (315,801 ) $ (120,075 ) $ (195,726 ) 2013 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 Operating expenses $ 18,360 $ 7,050 $ 11,310 Amortization of actuarial loss (gain), net Operating expenses 72,421 27,811 44,610 Amortization of transition obligation Operating expenses 141 53 88 Total reclassification adjustments 90,922 34,914 56,008 Other comprehensive income before reclassification adjustments: Prior service cost arising in current year N/A (53,902 ) (20,699 ) (33,203 ) Net actuarial gain arising in current year N/A 366,769 140,840 225,929 Total other comprehensive income before reclassification adjustments 312,867 120,141 192,726 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (33,191 ) — (33,191 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 626 240 386 Total other comprehensive income (loss) $ 371,224 $ 155,295 $ 215,929 |
Rollforward of accumulated other comprehensive (loss) income | The following table provides a summary of the changes in accumulated other comprehensive (loss) income for the years presented: Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Translation Interest Rate Swap, net of tax Total (In thousands) Balance as of June 30, 2012 $ (823,901 ) $ 170,749 $ (9,714 ) $ (662,866 ) Other comprehensive income before reclassification adjustments 192,726 (33,191 ) — 159,535 Amounts reclassified from accumulated other comprehensive loss 56,008 — 386 56,394 Balance as of June 29, 2013 (575,167 ) 137,558 (9,328 ) (446,937 ) Other comprehensive income before reclassification adjustments (127,728 ) (3,106 ) (82,215 ) (213,049 ) Amounts reclassified from accumulated other comprehensive loss 16,938 — 385 17,323 Balance as of June 28, 2014 (685,957 ) 134,452 (91,158 ) (642,663 ) Other comprehensive income before reclassification adjustments (38,275 ) (232,185 ) (34,111 ) (304,571 ) Amounts reclassified from accumulated other comprehensive loss 18,921 — 5,116 24,037 Balance as of June 27, 2015 $ (705,311 ) $ (97,733 ) $ (120,153 ) $ (923,197 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Share-based Compensation [Abstract] | |
Black-Scholes option model assumption table | The following weighted-average assumptions were used for each fiscal year presented: 2015 2014 2013 Dividend yield 3.2 % 3.5 % 3.7 % Expected volatility 20.7 % 20.4 % 20.7 % Risk-free interest rate 2.0 % 2.1 % 0.7 % Expected life 7.3 years 7.2 years 5.4 years |
Option rollforward and other disclosures table | The following summary presents information regarding outstanding options as of June 27, 2015 and changes during the fiscal year then ended with regard to options under all stock incentive plans: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of June 28, 2014 27,469,911 $ 29.59 Granted 4,497,954 38.89 Exercised (6,054,528 ) 29.31 Forfeited (85,550 ) 29.33 Expired (35,409 ) 33.22 Outstanding as of June 27, 2015 25,792,378 $ 31.28 5.21 $ 185,242 Vested or expected to vest as of June 27, 2015 25,575,542 $ 31.24 5.18 $ 184,526 Exercisable as of June 27, 2015 9,902,719 $ 28.54 3.05 $ 97,362 |
Non-vested awards rollforward table | The following summary presents information regarding outstanding non-vested awards as of June 27, 2015 and changes during the fiscal year then ended with regard to these awards under the stock incentive plans. Award types represented include: restricted stock units granted to employees and restricted awards granted to non-employee directors. Shares Weighted Average Grant Date Fair Value Per Share Nonvested as of June 28, 2014 2,918,405 $ 31.06 Granted 1,235,940 37.63 Vested (1,396,269 ) 30.40 Forfeited (60,422 ) 32.90 Nonvested as of June 27, 2015 2,697,654 $ 34.37 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Earnings before income taxes by jurisdiction table | For financial reporting purposes, earnings before income taxes consists of the following: 2015 2014 2013 (In thousands) U.S. $ 818,244 $ 1,287,371 $ 1,351,947 Foreign 189,903 188,253 195,508 Total $ 1,008,147 $ 1,475,624 $ 1,547,455 |
Income tax provision by jurisdiction table | The income tax provision / (benefit) for each fiscal year consists of the following: 2015 2014 2013 (In thousands) U.S. federal income taxes $ 285,807 $ 433,795 $ 439,667 State and local income taxes (2,737 ) 55,736 69,759 Foreign income taxes 38,304 54,560 45,602 Total $ 321,374 $ 544,091 $ 555,028 |
Income tax provision by component table | The current and deferred components of the income tax provisions for each fiscal year are as follows: 2015 2014 2013 (In thousands) Current $ 327,639 $ 574,760 $ 582,889 Deferred (6,265 ) (30,669 ) (27,861 ) Total $ 321,374 $ 544,091 $ 555,028 |
Components of deferred tax assets and liabilities table | Significant components of Sysco’s deferred tax assets and liabilities are as follows: June 27, 2015 June 28, 2014 (In thousands) Deferred tax liabilities: Excess tax depreciation and basis differences of assets $ 381,875 $ 416,417 Goodwill and intangible assets 224,943 211,434 Other 23,449 15,171 Total deferred tax liabilities 630,267 643,022 Deferred tax assets: Net operating tax state loss carryforwards 47,958 20,123 Benefit on unrecognized tax benefits 16,270 22,170 Pension 264,780 287,046 Share-based compensation 42,569 41,262 Deferred compensation 35,573 33,280 Self-insured liabilities 65,617 65,002 Receivables 38,410 47,688 Inventory 68,186 62,799 Cash flow hedge 74,900 56,826 Other 29,667 26,471 Total deferred tax assets 683,930 662,667 Total net deferred tax (assets) $ (53,663 ) $ (19,645 ) |
Tax rate reconciliation table | Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows: 2015 2014 2013 U.S. statutory federal income tax rate 35.00 % 35.00 % 35.00 % State and local income taxes, net of any applicable federal income tax benefit 0.91 2.82 2.59 Foreign tax rate differential (2.84 ) (1.66 ) (1.22 ) Other (1.19 ) 0.71 (0.50 ) 31.88 % 36.87 % 35.87 % |
Reconciliation of unrecognized tax benefits table | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2015 2014 (In thousands) Unrecognized tax benefits at beginning of year $ 49,180 $ 108,337 Additions for tax positions related to prior years 797 2,128 Reductions for tax positions related to prior years (8,001 ) (41,802 ) Reductions due to settlements with taxing authorities (4,430 ) (19,483 ) Unrecognized tax benefits at end of year $ 37,546 $ 49,180 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded unconditional purchase obligations table | Minimum amounts committed to by year are as follows: Amount (In thousands) 2016 $ 2,553,305 2017 818,521 2018 29,035 2019 2,863 2020 2,863 2021 1,491 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Business segment table | The following table sets forth the financial information for Sysco’s business segments: Fiscal Year 2015 2014 2013 (In thousands) Sales: Broadline $ 38,652,211 $ 36,808,051 $ 35,284,529 SYGMA 6,076,215 6,177,804 5,780,103 Other 5,270,518 4,678,954 4,388,261 Intersegment sales (1,318,192 ) (1,148,097 ) (1,041,660 ) Total $ 48,680,752 $ 46,516,712 $ 44,411,233 Operating income: Broadline $ 2,567,954 $ 2,426,908 $ 2,361,442 SYGMA 20,521 38,048 52,016 Other 135,885 142,419 139,337 Total segments 2,724,360 2,607,375 2,552,795 Corporate expenses and adjustments (1,494,998 ) (1,020,253 ) (894,317 ) Total operating income 1,229,362 1,587,122 1,658,478 Interest expense 254,807 123,741 128,495 Other expense (income), net (33,592 ) (12,243 ) (17,472 ) Earnings before income taxes $ 1,008,147 $ 1,475,624 $ 1,547,455 Depreciation and amortization: Broadline $ 278,553 $ 296,267 $ 303,084 SYGMA 29,753 28,164 28,059 Other 54,086 41,704 38,721 Total segments 362,392 366,135 369,864 Corporate 218,572 189,927 142,684 Total $ 580,964 $ 556,062 $ 512,548 Capital expenditures: Broadline $ 199,831 $ 276,314 $ 265,578 SYGMA 36,948 34,671 18,078 Other 69,193 101,128 66,182 Total segments 305,972 412,113 349,838 Corporate 236,858 111,093 162,024 Total $ 542,830 $ 523,206 $ 511,862 Assets: Broadline $ 7,730,239 $ 8,611,776 $ 9,893,743 SYGMA 512,044 513,587 485,520 Other 1,415,038 1,379,910 1,279,119 Total segments 9,657,321 10,505,273 11,658,382 Corporate 8,331,960 2,635,840 1,007,384 Total $ 17,989,281 $ 13,141,113 $ 12,665,766 |
Product sales mix table | The sales mix for the principal product categories for each fiscal year is as follows: Fiscal Year 2015 2014 2013 (In thousands) Fresh and frozen meats $ 10,080,290 $ 8,809,148 $ 8,242,423 Canned and dry products 7,999,250 8,383,007 8,310,634 Frozen fruits, vegetables, bakery and other 6,339,537 6,196,362 6,023,990 Dairy products 5,199,036 4,956,895 4,669,986 Poultry 5,189,496 4,814,949 4,580,445 Fresh produce 3,828,298 3,725,108 3,540,027 Paper and disposables 3,507,007 3,438,074 3,364,965 Seafood 2,490,523 2,401,021 2,167,588 Beverage products 1,754,944 1,671,000 1,643,034 Janitorial products 1,102,855 1,050,187 1,013,488 Equipment and smallwares 661,254 678,454 637,680 Medical supplies 528,262 392,507 216,973 Total $ 48,680,752 $ 46,516,712 $ 44,411,233 |
Geographic area revenue and long-lived assets table | Information concerning geographic areas is as follows: Fiscal Year 2015 2014 2013 (In thousands) Sales: (1) U.S. $ 43,146,591 $ 40,612,963 $ 38,985,715 Canada 4,727,742 4,923,672 4,698,814 Other 806,419 980,077 726,704 Total $ 48,680,752 $ 46,516,712 $ 44,411,233 Long-lived assets: (2) U.S. $ 3,519,610 $ 3,520,449 $ 3,593,346 Canada 317,231 347,440 307,605 Other 145,302 117,729 77,120 Total $ 3,982,143 $ 3,985,618 $ 3,978,071 (1) Represents sales to external customers from businesses operating in these countries. (2) Long-lived assets represents net property, plant and equipment reported in the country in which they are held. |
Supplemental Guarantor Inform49
Supplemental Guarantor Information - Subsidiary Guarantees (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Supplemental Guarantor Information - Subsidiary Guarantees [Abstract] | |
Condensed consolidating financial statements | The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (the majority of the company's U.S. Broadline subsidiaries) and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries. Condensed Consolidating Balance Sheet June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 4,894,387 $ 4,012,924 $ 2,586,993 $ 11,494,304 Investment in subsidiaries 9,088,455 — — (9,088,455 ) — Plant and equipment, net 510,285 1,694,659 1,777,199 3,982,143 Other assets 371,802 522,566 1,618,466 2,512,834 Total assets $ 14,864,929 $ 6,230,149 $ 5,982,658 $ (9,088,455 ) $ 17,989,281 Current liabilities $ 5,851,364 $ 1,658,558 $ 1,889,693 $ 9,399,615 Intercompany payables (receivables) 973,497 (1,996,915 ) 1,023,418 — Long-term debt 2,154,923 10,121 106,781 2,271,825 Other liabilities 624,795 278,458 113,060 1,016,313 Noncontrolling interest — — 41,304 $ 41,304 Shareholders’ equity 5,260,350 6,279,927 2,808,402 (9,088,455 ) 5,260,224 Total liabilities and shareholders’ equity $ 14,864,929 $ 6,230,149 $ 5,982,658 $ (9,088,455 ) $ 17,989,281 Condensed Consolidating Balance Sheet June 28, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 254,766 $ 3,928,660 $ 2,498,546 $ — $ 6,681,972 Investment in subsidiaries 8,013,214 — — (8,013,214 ) — Plant and equipment, net 496,953 1,783,262 1,705,403 — 3,985,618 Other assets 317,208 524,468 1,631,847 — 2,473,523 Total assets $ 9,082,141 $ 6,236,390 $ 5,835,796 $ (8,013,214 ) $ 13,141,113 Current liabilities $ 793,240 $ 1,008,366 $ 2,566,024 $ — $ 4,367,630 Intercompany payables (receivables) 20,107 (239,539 ) 219,432 — — Long-term debt 2,321,721 14,094 21,515 — 2,357,330 Other liabilities 680,378 328,185 140,895 — 1,149,458 Shareholders’ equity 5,266,695 5,125,284 2,887,930 (8,013,214 ) 5,266,695 Total liabilities and shareholders’ equity $ 9,082,141 $ 6,236,390 $ 5,835,796 $ (8,013,214 ) $ 13,141,113 Condensed Consolidating Statement of Comprehensive Income Year Ended June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 32,626,221 $ 17,477,986 $ (1,423,455 ) $ 48,680,752 Cost of sales — 26,572,257 14,980,434 (1,423,455 ) 40,129,236 Gross profit — 6,053,964 2,497,552 — 8,551,516 Operating expenses 1,232,956 3,709,320 2,379,878 — 7,322,154 Operating income (loss) (1,232,956 ) 2,344,644 117,674 — 1,229,362 Interest expense (income) 323,918 (108,233 ) 39,122 — 254,807 Other expense (income), net (9,496 ) (3,609 ) (20,487 ) — (33,592 ) Earnings (losses) before income taxes (1,547,378 ) 2,456,486 99,039 — 1,008,147 Income tax (benefit) provision (493,263 ) 783,066 31,571 — 321,374 Equity in earnings of subsidiaries 1,740,888 — — (1,740,888 ) — Net earnings 686,773 1,673,420 67,468 (1,740,888 ) 686,773 Other comprehensive income (loss) (280,534 ) (232,185 ) 232,185 (280,534 ) Comprehensive income $ 406,239 $ 1,673,420 $ (164,717 ) $ (1,508,703 ) $ 406,239 Condensed Consolidating Statement of Comprehensive Income Year Ended June 28, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 30,741,979 $ 16,979,494 $ (1,204,761 ) $ 46,516,712 Cost of sales — 24,990,377 14,550,061 (1,204,761 ) 38,335,677 Gross profit — 5,751,602 2,429,433 — 8,181,035 Operating expenses 804,177 3,520,577 2,269,159 — 6,593,913 Operating income (loss) (804,177 ) 2,231,025 160,274 — 1,587,122 Interest expense (income) 232,140 (102,086 ) (6,313 ) — 123,741 Other expense (income), net (7,434 ) 217 (5,026 ) — (12,243 ) Earnings (losses) before income taxes (1,028,883 ) 2,332,894 171,613 — 1,475,624 Income tax (benefit) provision (379,369 ) 860,184 63,276 — 544,091 Equity in earnings of subsidiaries 1,581,047 — — (1,581,047 ) — Net earnings 931,533 1,472,710 108,337 (1,581,047 ) 931,533 Other comprehensive income (loss) (195,726 ) — (3,106 ) 3,106 (195,726 ) Comprehensive income $ 735,807 $ 1,472,710 $ 105,231 $ (1,577,941 ) $ 735,807 Condensed Consolidating Statement of Comprehensive Income Year Ended June 29, 2013 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 30,162,329 $ 15,335,180 $ (1,086,276 ) $ 44,411,233 Cost of sales — 24,385,677 13,115,225 (1,086,276 ) 36,414,626 Gross profit — 5,776,652 2,219,955 — 7,996,607 Operating expenses 694,323 3,610,907 2,032,899 — 6,338,129 Operating income (loss) (694,323 ) 2,165,745 187,056 — 1,658,478 Interest expense (income) 298,474 (177,421 ) 7,442 — 128,495 Other expense (income), net (12,864 ) (4,554 ) (54 ) — (17,472 ) Earnings (losses) before income taxes (979,933 ) 2,347,720 179,668 — 1,547,455 Income tax (benefit) provision (351,474 ) 842,062 64,440 — 555,028 Equity in earnings of subsidiaries 1,620,886 — — (1,620,886 ) — Net earnings 992,427 1,505,658 115,228 (1,620,886 ) 992,427 Other comprehensive income (loss) 215,929 — (33,191 ) 33,191 215,929 Comprehensive income $ 1,208,356 $ 1,505,658 $ 82,037 $ (1,587,695 ) $ 1,208,356 Condensed Consolidating Cash Flows Year Ended June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Net cash provided by (used for): Operating activities $ (359,239 ) $ 2,363,836 $ (449,113 ) $ 1,555,484 Investing activities (160,234 ) (108,099 ) (386,013 ) (654,346 ) Financing activities 3,832,479 (6,022 ) 71,105 3,897,562 Effect of exchange rate on cash — — (81,702 ) (81,702 ) Intercompany activity 1,379,112 (2,251,109 ) 871,997 — Net increase (decrease) in cash and cash equivalents 4,692,118 (1,394 ) 26,274 4,716,998 Cash and cash equivalents at beginning of the period 158,957 27,772 226,317 413,046 Cash and cash equivalents at end of the period $ 4,851,075 $ 26,378 $ 252,591 $ 5,130,044 Condensed Consolidating Cash Flows Year Ended June 28, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Net cash provided by (used for): Operating activities $ (504,119 ) $ 1,541,062 $ 455,872 $ 1,492,815 Investing activities (51,290 ) (171,979 ) (353,569 ) (576,838 ) Financing activities (919,627 ) 3,872 (103 ) (915,858 ) Effect of exchange rate on cash — — 642 642 Intercompany activity 1,426,402 (1,369,478 ) (56,924 ) — Net increase (decrease) in cash and cash equivalents (48,634 ) 3,477 45,918 761 Cash and cash equivalents at beginning of the period 207,591 24,295 180,399 412,285 Cash and cash equivalents at end of the period $ 158,957 $ 27,772 $ 226,317 $ 413,046 Condensed Consolidating Cash Flows Year Ended June 29, 2013 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Net cash provided by (used for): Operating activities $ (449,417 ) $ 1,705,950 $ 255,061 $ 1,511,594 Investing activities (105,314 ) (140,217 ) (666,351 ) (911,882 ) Financing activities (887,707 ) (15,666 ) 29,165 (874,208 ) Effect of exchange rate on cash — — (2,086 ) (2,086 ) Intercompany activity 1,178,922 (1,560,250 ) 381,328 — Net increase (decrease) in cash and cash equivalents (263,516 ) (10,183 ) (2,883 ) (276,582 ) Cash and cash equivalents at beginning of the period 471,107 34,478 183,282 688,867 Cash and cash equivalents at end of the period $ 207,591 $ 24,295 $ 180,399 $ 412,285 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly results (unaudited) table | Financial information for each quarter in the years ended June 27, 2015 and June 28, 2014 is set forth below: Fiscal 2015 Quarter Ended September 27, December 27, March 28, June 27, Fiscal Year (In thousands except for per share data) Sales $ 12,445,081 $ 12,087,074 $ 11,746,659 $ 12,401,938 $ 48,680,752 Cost of sales 10,256,364 10,001,937 9,689,161 10,181,774 40,129,236 Gross profit 2,188,717 2,085,137 2,057,498 2,220,164 8,551,516 Operating expenses 1,723,104 1,769,691 1,730,190 2,099,169 7,322,154 Operating income 465,613 315,446 327,308 120,995 1,229,362 Interest expense 30,934 77,042 69,550 77,281 254,807 Other expense (income), net (2,188 ) 2,207 (8,577 ) (25,034 ) (33,592 ) Earnings before income taxes 436,867 236,197 266,335 68,748 1,008,147 Income taxes 158,054 78,218 89,380 (4,278 ) 321,374 Net earnings $ 278,813 $ 157,979 $ 176,955 $ 73,026 $ 686,773 Per share: Basic net earnings $ 0.47 $ 0.27 $ 0.30 $ 0.12 $ 1.16 Diluted net earnings 0.47 0.27 0.30 0.12 1.15 Dividends declared 0.29 0.30 0.30 0.30 1.19 Market price — high/low 39-36 41-36 41-38 39-36 41-36 Fiscal 2014 Quarter Ended September 28, December 28, March 29, June 28, Fiscal Year (In thousands except for per share data) Sales $ 11,714,267 $ 11,237,969 $ 11,277,484 $ 12,286,992 $ 46,516,712 Cost of sales 9,648,780 9,273,018 9,282,743 10,131,136 38,335,677 Gross profit 2,065,487 1,964,951 1,994,741 2,155,856 8,181,035 Operating expenses 1,587,289 1,613,174 1,662,116 1,731,334 6,593,913 Operating income 478,198 351,777 332,625 424,522 1,587,122 Interest expense 30,528 29,784 32,224 31,205 123,741 Other (income), net (4,534 ) (4,211 ) 3,718 (7,216 ) (12,243 ) Earnings before income taxes 452,204 326,204 296,683 400,533 1,475,624 Income taxes 166,614 115,369 115,746 146,362 544,091 Net earnings $ 285,590 $ 210,835 $ 180,937 $ 254,171 $ 931,533 Per share: Basic net earnings $ 0.49 $ 0.36 $ 0.31 $ 0.43 $ 1.59 Diluted net earnings 0.48 0.36 0.31 0.43 1.58 Dividends declared 0.28 0.29 0.29 0.29 1.15 Market price — high/low 36-31 43-31 37-34 38-35 43-31 |
Quarterly results (unaudited) percentage change table | Percentage change — 2015 vs. 2014: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Fiscal Year Sales 6 % 8 % 4 % 1 % 5 % Operating income (3 ) (10 ) (2 ) (71 ) (23 ) Net earnings (2 ) (25 ) (2 ) (71 ) (26 ) Basic net earnings per share (4 ) (25 ) (3 ) (72 ) (27 ) Diluted net earnings per share (2 ) (25 ) (3 ) (72 ) (27 ) |
Summary of Accounting Policie51
Summary of Accounting Policies (Details) customer in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 27, 2015USD ($)customersegmentfacility | Jun. 28, 2014USD ($) | Jun. 29, 2013USD ($) | |
Summary of Accounting Policies [Line Items] | |||
Number of customers | customer | 425 | ||
Number of distribution facilities | facility | 197 | ||
Fiscal period | 364 days | 364 days | 364 days |
Capitalized interest | $ 0.9 | $ 1.1 | $ 4.2 |
Number of operating segments | segment | 13 | ||
Cash surrender value of corporate-owned life insurance | $ 162.8 | 161.9 | |
Shipping and handling costs | $ 2,600 | $ 2,600 | $ 2,500 |
Foodservice Company in Costa Rica | |||
Summary of Accounting Policies [Line Items] | |||
Percent of interest acquired | 50.00% | ||
Minimum | |||
Summary of Accounting Policies [Line Items] | |||
Intangible assets useful life (in years) | 2 years | ||
Maximum | |||
Summary of Accounting Policies [Line Items] | |||
Intangible assets useful life (in years) | 10 years |
Changes in Accounting (Details)
Changes in Accounting (Details) $ in Millions | 12 Months Ended |
Jun. 27, 2015USD ($) | |
Accounting Standards Update 2015-03 | Reclassification of debt issuance costs to reduce debt liability | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Prior period reclassification adjustment | $ 26.8 |
Acquisitions (Details)
Acquisitions (Details) | Jun. 26, 2015USD ($)facility | Oct. 31, 2014USD ($)debt_instrument | Jan. 31, 2014USD ($)agreement | Jun. 27, 2015USD ($)facility | Jun. 28, 2014USD ($) | Jun. 29, 2013USD ($) |
Business Acquisition [Line Items] | ||||||
Acquisition of businesses, net of cash acquired | $ 115,862,000 | $ 79,338,000 | $ 397,447,000 | |||
Contingent consideration maximum number of years | 3 years | |||||
Potential cash payout for contingent consideration arrangements | $ 39,000,000 | |||||
Amount of recorded earnout liabilities | $ 29,400,000 | |||||
Number of distribution facilities | facility | 197 | |||||
Mandatory redemption | ||||||
Business Acquisition [Line Items] | ||||||
Redemption price | 101.00% | |||||
Jan 2014 Forward Starting Swaps | ||||||
Business Acquisition [Line Items] | ||||||
Number of interest rate derivatives held | agreement | 2 | |||||
Notional amount of derivative | $ 2,000,000,000 | |||||
Senior Notes October 2024 | ||||||
Business Acquisition [Line Items] | ||||||
Face value of debt instrument | $ 1,250,000,000 | |||||
Number of debt instruments | debt_instrument | 2 | |||||
Senior Notes October 2024 | Jan 2014 Forward Starting Swaps | ||||||
Business Acquisition [Line Items] | ||||||
Term of forecasted debt issuance | 10 years | |||||
Senior Notes October 2044 | Jan 2014 Forward Starting Swaps | ||||||
Business Acquisition [Line Items] | ||||||
Term of forecasted debt issuance | 30 years | |||||
Six Part Senior Notes Offering | ||||||
Business Acquisition [Line Items] | ||||||
Face value of debt instrument | $ 5,000,000,000 | |||||
US Foods Proposed Merger | ||||||
Business Acquisition [Line Items] | ||||||
Number of distribution facilities | facility | 11 | |||||
Percent of applicable fee each company is responsible for upon termination of divestiture package | 50.00% | |||||
Termination payments | US Foods Proposed Merger | ||||||
Business Acquisition [Line Items] | ||||||
Accrued termination fees | $ 312,500,000 | |||||
US Foods, Inc. | US Foods Proposed Merger | ||||||
Business Acquisition [Line Items] | ||||||
Payment of termination fee | $ 300,000,000 | |||||
Performance Food Group | US Foods Proposed Merger | ||||||
Business Acquisition [Line Items] | ||||||
Termination fee due upon termination | $ 25,000,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total debt | $ 7,600,000 | $ 3,000,000 |
Carrying value of total debt | 7,321,877 | 2,733,082 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,741,424 | 134,736 |
Restricted cash | 168,274 | 145,412 |
Total assets at fair value | 4,922,295 | 284,976 |
Current portion of long-term debt | 1,257,127 | |
Long-term debt | 503,379 | |
Total liabilities at fair value | 1,760,506 | 133,466 |
Recurring | Other assets | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 12,597 | 4,828 |
Recurring | Accrued expenses | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 133,466 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,677,735 | 2,770 |
Restricted cash | 168,274 | 145,412 |
Total assets at fair value | 4,846,009 | 148,182 |
Current portion of long-term debt | 0 | |
Long-term debt | 0 | |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 1 | Other assets | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 0 | 0 |
Recurring | Level 1 | Accrued expenses | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 0 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 63,689 | 131,966 |
Restricted cash | 0 | 0 |
Total assets at fair value | 76,286 | 136,794 |
Current portion of long-term debt | 1,257,127 | |
Long-term debt | 503,379 | |
Total liabilities at fair value | 1,760,506 | 133,466 |
Recurring | Level 2 | Other assets | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 12,597 | 4,828 |
Recurring | Level 2 | Accrued expenses | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 133,466 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Total assets at fair value | 0 | 0 |
Current portion of long-term debt | 0 | |
Long-term debt | 0 | |
Total liabilities at fair value | 0 | 0 |
Recurring | Level 3 | Other assets | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 0 | 0 |
Recurring | Level 3 | Accrued expenses | Forward starting interest rate swap agreements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 0 |
Allowance for Doubtful Accoun55
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Allowance for Doubtful Accounts | |||
Balance at beginning of period | $ 49,902 | $ 47,345 | $ 42,919 |
Charged to costs and expenses | 17,996 | 34,429 | 35,243 |
Customer accounts written off, net of recoveries | (25,719) | (31,721) | (30,824) |
Other adjustments | (459) | (151) | 7 |
Balance at end of period | $ 41,720 | $ 49,902 | $ 47,345 |
Plant and Equipment (Details)
Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, at cost | $ 8,390,448 | $ 8,083,875 | |
Accumulated depreciation | (4,408,305) | (4,098,257) | |
Total plant and equipment, net | 3,982,143 | 3,985,618 | $ 3,978,071 |
Depreciation expense | 495,800 | 493,800 | $ 473,500 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, at cost | 441,939 | 431,694 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, at cost | $ 3,877,817 | 3,816,387 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 30 years | ||
Fleet and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, at cost | $ 2,836,554 | 2,726,415 | |
Fleet and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Fleet and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Plant and equipment, at cost | $ 1,234,138 | 1,109,379 | |
Computer hardware and software | Enterprise Resource Planning System | |||
Property, Plant and Equipment [Line Items] | |||
Total plant and equipment, net | $ 293,800 | $ 355,200 | |
Computer hardware and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Computer hardware and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Goodwill and Other Intangible57
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | $ 1,950,672 | $ 1,884,235 | |
Goodwill acquired during year | 88,210 | 62,833 | |
Goodwill currency translation/other | (79,065) | 3,604 | |
Goodwill carrying amount, ending balance | 1,959,817 | 1,950,672 | $ 1,884,235 |
Amortized intangibles acquired during year | $ 27,700 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 7 years 10 months 24 days | ||
Intangibles gross carrying amount | $ 294,557 | 304,744 | |
Intangibles accumulated amortization | (154,019) | (140,122) | |
Intangibles net amount | 140,538 | 164,622 | |
Indefinite-lived intangible assets balance | 14,271 | 12,605 | |
Intangibles amortization expense | 40,000 | 42,200 | 32,100 |
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||
2,016 | 33,570 | ||
2,017 | 29,264 | ||
2,018 | 26,162 | ||
2,019 | 16,245 | ||
2,020 | 12,215 | ||
Trademarks | |||
Goodwill [Roll Forward] | |||
Indefinite-lived intangible assets balance | 13,304 | 11,639 | |
Licenses | |||
Goodwill [Roll Forward] | |||
Indefinite-lived intangible assets balance | 966 | 966 | |
Customer relationships | |||
Goodwill [Roll Forward] | |||
Amortized intangibles acquired during year | $ 19,500 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 9 years 4 months 24 days | ||
Intangibles gross carrying amount | $ 236,916 | 246,019 | |
Intangibles accumulated amortization | (130,506) | (124,223) | |
Intangibles net amount | 106,410 | 121,796 | |
Non-compete agreements | |||
Goodwill [Roll Forward] | |||
Amortized intangibles acquired during year | $ 4,300 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 4 years 7 months 6 days | ||
Intangibles gross carrying amount | $ 33,436 | 33,164 | |
Intangibles accumulated amortization | (14,525) | (10,629) | |
Intangibles net amount | 18,911 | 22,535 | |
Trademarks | |||
Goodwill [Roll Forward] | |||
Intangibles gross carrying amount | 10,768 | 12,063 | |
Intangibles accumulated amortization | (4,117) | (3,200) | |
Intangibles net amount | 6,651 | 8,863 | |
Other | |||
Goodwill [Roll Forward] | |||
Amortized intangibles acquired during year | $ 3,900 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 4 years | ||
Intangibles gross carrying amount | $ 13,437 | 13,498 | |
Intangibles accumulated amortization | (4,871) | (2,070) | |
Intangibles net amount | 8,566 | 11,428 | |
Broadline | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 1,175,493 | 1,123,419 | |
Goodwill acquired during year | 79,802 | 48,425 | |
Goodwill currency translation/other | (78,524) | 3,649 | |
Goodwill carrying amount, ending balance | 1,176,771 | 1,175,493 | 1,123,419 |
SYGMA | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 32,609 | 32,609 | |
Goodwill acquired during year | 0 | 0 | |
Goodwill currency translation/other | 0 | 0 | |
Goodwill carrying amount, ending balance | 32,609 | 32,609 | 32,609 |
Other | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 742,570 | 728,207 | |
Goodwill acquired during year | 8,408 | 14,408 | |
Goodwill currency translation/other | (541) | (45) | |
Goodwill carrying amount, ending balance | $ 750,437 | $ 742,570 | $ 728,207 |
Derivative Financial Instrume58
Derivative Financial Instruments (Details) | 1 Months Ended | 12 Months Ended | |||||
Aug. 24, 2015USD ($)agreement | Oct. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jan. 31, 2014USD ($)agreement | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 29, 2013USD ($) | |
Six Part Senior Notes Offering | |||||||
Derivative [Line Items] | |||||||
Face value of debt instrument | $ 5,000,000,000 | ||||||
Senior Notes October 2024 | |||||||
Derivative [Line Items] | |||||||
Face value of debt instrument | 1,250,000,000 | ||||||
October 2, 2024 | |||||||
Derivative [Line Items] | |||||||
Face value of debt instrument | $ 1,250,000,000 | ||||||
October 2, 2044 | |||||||
Derivative [Line Items] | |||||||
Face value of debt instrument | 1,000,000,000 | ||||||
Interest Rate Swap February 2018 | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | $ 500,000,000 | $ 500,000,000 | |||||
Interest Rate Swap October 2020 | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 750,000,000 | ||||||
Jan 2014 Forward Starting Swaps | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | $ 2,000,000,000 | ||||||
Number of interest rate derivatives held | agreement | 2 | ||||||
Jan 2014 Forward Starting Swaps | Senior Notes October 2024 | |||||||
Derivative [Line Items] | |||||||
Term of forecasted debt issuance | 10 years | ||||||
Jan 2014 Forward Starting Swaps | Senior Notes October 2044 | |||||||
Derivative [Line Items] | |||||||
Term of forecasted debt issuance | 30 years | ||||||
Jan 2014 Forward Starting Swaps | October 2, 2024 | |||||||
Derivative [Line Items] | |||||||
Payments for hedge | $ 129,900,000 | $ 58,900,000 | |||||
Designated as Hedging Instrument | Forward starting interest rate swap agreements | Fair Value Hedge | Interest expense | |||||||
Derivative [Line Items] | |||||||
(Gain) loss on interest rate swap agreements recorded to interest expense | (21,960,000) | (10,879,000) | $ (4,492,000) | ||||
Designated as Hedging Instrument | Forward starting interest rate swap agreements | Cash Flow Hedge | |||||||
Derivative [Line Items] | |||||||
(Gain) loss recognized in other comprehensive income (loss) | 0 | 133,466,000 | |||||
Designated as Hedging Instrument | Forward starting interest rate swap agreements | Cash Flow Hedge | Interest expense | |||||||
Derivative [Line Items] | |||||||
(Gain) loss on interest rate contracts reclassified from accumulated other comprehensive income to interest expense | 8,305,000 | 625,000 | $ 626,000 | ||||
Designated as Hedging Instrument | Other assets | Forward starting interest rate swap agreements | |||||||
Derivative [Line Items] | |||||||
Fair value of interest rate swap agreements, asset | 12,597,000 | 4,828,000 | |||||
Designated as Hedging Instrument | Accrued expenses | Forward starting interest rate swap agreements | |||||||
Derivative [Line Items] | |||||||
Fair value of interest rate swap agreements, liability | $ 0 | $ 133,466,000 | |||||
Subsequent event | Forward starting interest rate swap agreements | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | $ 500,000,000 | ||||||
Number of interest rate derivatives held | agreement | 2 | ||||||
Term of forecasted debt issuance | 10 years |
Self-Insured Liabilities (Detai
Self-Insured Liabilities (Details) - Self-insured liabilities - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Self-Insured Liabilities | |||
Balance at beginning of period | $ 194,476 | $ 147,598 | $ 129,749 |
Charged to costs and expenses | 367,025 | 375,267 | 352,374 |
Payments | (368,189) | (328,389) | (334,525) |
Balance at end of period | $ 193,312 | $ 194,476 | $ 147,598 |
Debt and Other Financing Arra60
Debt and Other Financing Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Debt [Line Items] | ||
Total debt | $ 7,321,877 | $ 2,733,082 |
Less current maturities of long-term debt | (4,979,301) | (304,777) |
Less notes payable | (70,751) | (70,975) |
Long-term debt | 2,271,825 | 2,357,330 |
Principal payment required during next five years | ||
2,016 | 5,007,943 | |
2,017 | 29,140 | |
2,018 | 506,694 | |
2,019 | 269,532 | |
2,020 | $ 3,387 | |
Senior notes, interest at 0.55%, maturing in fiscal 2015 | ||
Debt [Line Items] | ||
Interest rate on debt instrument | 0.55% | |
Notes payable, capital leases, and other debt | Notes payable, capital leases and other debt | ||
Debt [Line Items] | ||
Total debt | $ 149,833 | $ 96,333 |
Average interest rate on debt instruments | 2.81% | 2.59% |
Maturity date range end for capital leases and other debt, stated in fiscal year | 2,026 | |
Commercial paper, interest averaging 0.2% as of June 28, 2014 | ||
Debt [Line Items] | ||
Total debt | $ 0 | $ 129,999 |
Average interest rate on debt instruments | 0.20% | |
Senior notes | Senior notes, interest at 0.55%, maturing in fiscal 2015 | ||
Debt [Line Items] | ||
Total debt | $ 0 | $ 299,015 |
Interest rate on debt instrument | 0.55% | |
Maturity date on long-term debt stated in fiscal year | 2,015 | |
Senior notes | Senior notes, interest at 5.25%, maturing in fiscal 2018 | ||
Debt [Line Items] | ||
Total debt | $ 502,608 | $ 502,521 |
Interest rate on debt instrument | 5.25% | 5.25% |
Maturity date on long-term debt stated in fiscal year | 2,018 | |
Senior notes | Senior notes, interest at 5.375%, maturing in fiscal 2019 | ||
Debt [Line Items] | ||
Total debt | $ 248,824 | $ 248,509 |
Interest rate on debt instrument | 5.375% | 5.375% |
Maturity date on long-term debt stated in fiscal year | 2,019 | |
Senior notes | Senior notes, interest at 2.6%, maturing in fiscal 2022 | ||
Debt [Line Items] | ||
Total debt | $ 444,212 | $ 443,384 |
Interest rate on debt instrument | 2.60% | 2.60% |
Maturity date on long-term debt stated in fiscal year | 2,022 | |
Senior notes | Debentures, interest at 7.16%, maturing in fiscal 2027 | ||
Debt [Line Items] | ||
Total debt | $ 50,000 | $ 50,000 |
Interest rate on debt instrument | 7.16% | 7.16% |
Maturity date on long-term debt stated in fiscal year | 2,027 | |
Senior notes | Debentures, interest at 6.5%, maturing in fiscal 2029 | ||
Debt [Line Items] | ||
Total debt | $ 223,610 | $ 223,505 |
Interest rate on debt instrument | 6.50% | 6.50% |
Maturity date on long-term debt stated in fiscal year | 2,029 | |
Senior notes | Senior notes, interest at 5.375%, maturing in fiscal 2036 | ||
Debt [Line Items] | ||
Total debt | $ 496,775 | $ 495,636 |
Interest rate on debt instrument | 5.375% | 5.375% |
Maturity date on long-term debt stated in fiscal year | 2,036 | |
Senior notes | Senior notes, interest at 6.625%, maturing in fiscal 2039 | ||
Debt [Line Items] | ||
Total debt | $ 244,415 | $ 244,180 |
Interest rate on debt instrument | 6.625% | 6.625% |
Maturity date on long-term debt stated in fiscal year | 2,039 | |
Senior notes | Senior notes, interest at 1.45%, maturing in fiscal 2018 | ||
Debt [Line Items] | ||
Total debt | $ 500,801 | $ 0 |
Interest rate on debt instrument | 1.45% | |
Maturity date on long-term debt stated in fiscal year | 2,018 | |
Senior notes | Senior notes, interest at 2.35% maturing in fiscal 2020 | ||
Debt [Line Items] | ||
Total debt | $ 752,070 | 0 |
Interest rate on debt instrument | 2.35% | |
Maturity date on long-term debt stated in fiscal year | 2,020 | |
Senior notes | Senior notes, interest at 3.00% , maturing in fiscal 2022 | ||
Debt [Line Items] | ||
Total debt | $ 745,136 | 0 |
Interest rate on debt instrument | 3.00% | |
Maturity date on long-term debt stated in fiscal year | 2,022 | |
Senior notes | Senior notes, interest at 3.50% , maturing in fiscal 2025 | ||
Debt [Line Items] | ||
Total debt | $ 1,239,116 | 0 |
Interest rate on debt instrument | 3.50% | |
Maturity date on long-term debt stated in fiscal year | 2,025 | |
Senior notes | Senior notes, interest at 4.35%, maturing in fiscal 2035 | ||
Debt [Line Items] | ||
Total debt | $ 742,664 | 0 |
Interest rate on debt instrument | 4.35% | |
Maturity date on long-term debt stated in fiscal year | 2,035 | |
Senior notes | Senior notes, interest at 4.50%, maturing in fiscal 2045 | ||
Debt [Line Items] | ||
Total debt | $ 981,813 | $ 0 |
Interest rate on debt instrument | 4.50% | |
Maturity date on long-term debt stated in fiscal year | 2,045 |
Debt and Other Financing Arra61
Debt and Other Financing Arrangements (Commercial Paper and Revolving Credit Facility) (Details) - USD ($) | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Debt [Line Items] | |||
Short term bank borrowings and commercial paper borrowings, minimum amount during period | $ 0 | $ 0 | $ 0 |
Short term bank borrowings and commercial paper borrowings, maximum amount during period | 659,400,000 | $ 770,500,000 | $ 330,000,000 |
Commercial Paper Revolver 2018 Extension | |||
Debt [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||
Committed facility for unsecured borrowings, expiration date | Dec. 29, 2018 |
Debt and Other Financing Arra62
Debt and Other Financing Arrangements (Fixed Rate Debt) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jun. 27, 2015 | Oct. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2013 | Jun. 27, 2015 | Sep. 30, 2014 | Jun. 28, 2014 | |
Mandatory redemption | |||||||
Debt [Line Items] | |||||||
Redemption price | 101.00% | ||||||
Senior Notes, Maturing in Fiscal 2013 | |||||||
Debt [Line Items] | |||||||
Repayment of senior notes at maturity | $ 250,000,000 | ||||||
Interest rate on debt instrument | 4.20% | ||||||
Senior Notes, Maturing in Fiscal 2014 | |||||||
Debt [Line Items] | |||||||
Repayment of senior notes at maturity | $ 200,000,000 | ||||||
Interest rate on debt instrument | 4.60% | ||||||
Senior notes, interest at 0.55%, maturing in fiscal 2015 | |||||||
Debt [Line Items] | |||||||
Repayment of senior notes at maturity | $ 300,000,000 | ||||||
Interest rate on debt instrument | 0.55% | 0.55% | |||||
October 2, 2024 | |||||||
Debt [Line Items] | |||||||
Face value of debt instrument | $ 1,250,000,000 | ||||||
October 2, 2044 | |||||||
Debt [Line Items] | |||||||
Face value of debt instrument | $ 1,000,000,000 | ||||||
Senior notes | Senior notes, interest at 0.55%, maturing in fiscal 2015 | |||||||
Debt [Line Items] | |||||||
Interest rate on debt instrument | 0.55% | ||||||
Senior notes | October 2, 2017 | |||||||
Debt [Line Items] | |||||||
Maturity date on long-term debt | Oct. 2, 2017 | ||||||
Face value of debt instrument | $ 500,000,000 | $ 500,000,000 | |||||
Interest rate on debt instrument | 145.00% | 145.00% | |||||
Pricing of senior notes, percentage of par | 99.962% | 99.962% | |||||
Senior notes | October 2, 2019 | |||||||
Debt [Line Items] | |||||||
Maturity date on long-term debt | Oct. 2, 2019 | ||||||
Face value of debt instrument | $ 750,000,000 | $ 750,000,000 | |||||
Interest rate on debt instrument | 235.00% | 235.00% | |||||
Pricing of senior notes, percentage of par | 99.864% | 99.864% | |||||
Senior notes | October 2, 2021 | |||||||
Debt [Line Items] | |||||||
Maturity date on long-term debt | Oct. 2, 2021 | ||||||
Face value of debt instrument | $ 750,000,000 | $ 750,000,000 | |||||
Interest rate on debt instrument | 300.00% | 300.00% | |||||
Pricing of senior notes, percentage of par | 99.781% | 99.781% | |||||
Senior notes | October 2, 2024 | |||||||
Debt [Line Items] | |||||||
Maturity date on long-term debt | Oct. 2, 2024 | ||||||
Face value of debt instrument | $ 1,250,000,000 | $ 1,250,000,000 | |||||
Interest rate on debt instrument | 350.00% | 350.00% | |||||
Pricing of senior notes, percentage of par | 99.616% | 99.616% | |||||
Senior notes | October 2, 2034 | |||||||
Debt [Line Items] | |||||||
Maturity date on long-term debt | Oct. 2, 2034 | ||||||
Face value of debt instrument | $ 750,000,000 | $ 750,000,000 | |||||
Interest rate on debt instrument | 435.00% | 435.00% | |||||
Pricing of senior notes, percentage of par | 99.841% | 99.841% | |||||
Senior notes | October 2, 2044 | |||||||
Debt [Line Items] | |||||||
Maturity date on long-term debt | Oct. 2, 2044 | ||||||
Face value of debt instrument | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Interest rate on debt instrument | 450.00% | 450.00% | |||||
Pricing of senior notes, percentage of par | 98.992% | 98.992% |
Debt and Other Financing Arra63
Debt and Other Financing Arrangements (Total Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Debt [Line Items] | ||
Carrying value of total debt | $ 7,321,877 | $ 2,733,082 |
Percentage of fixed rate debt | 74.00% | |
Debt Bearing Fixed Interest Rate | ||
Debt [Line Items] | ||
Weighted average interest rate | 4.30% | |
Average life of debt (in years) | 4 years 4 months 13 days | |
Debt Bearing Floating Interest Rate | ||
Debt [Line Items] | ||
Weighted average interest rate | 2.90% | |
Average life of debt (in years) | 10 months 2 days |
Debt and Other Financing Arra64
Debt and Other Financing Arrangements (Other) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Jun. 28, 2014 |
Debt Disclosure [Abstract] | ||
Letters of credit outstanding | $ 101 | $ 45.7 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Leases [Abstract] | |||
Operating leases, rent expense | $ 104,300 | $ 92,300 | $ 84,400 |
Aggregate minimum lease payments by fiscal year under existing long-term operating leases: | |||
2,016 | 47,559 | ||
2,017 | 38,183 | ||
2,018 | 27,831 | ||
2,019 | 20,320 | ||
2,020 | 16,661 | ||
Thereafter | $ 45,670 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other | $ 286,666 | $ 319,401 |
Other long-term liabilities | 934,722 | 1,027,878 |
Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term defined benefit pension liabilities | 227,352 | 270,189 |
Supplemental executive retirement plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term defined benefit pension liabilities | $ 420,704 | $ 438,288 |
Company-Sponsored Employee Be67
Company-Sponsored Employee Benefit Plans (Defined Contribution Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plans expense | $ 125.4 | $ 118.6 | $ 65.3 |
Safe Harbor 401(k) Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-elective employer contribution, percent of participant's compensation | 3.00% | ||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 5.00% | ||
Safe Harbor 401(k) Plan Non Adopting Unions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Prior 401(k) Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Management Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-elective employer contribution, percent of participant's compensation | 3.00% | ||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 5.00% | ||
Maximum annual contributions per employee, percent of salary | 50.00% | ||
Maximum annual contributions per employee, percent of bonus | 100.00% |
Company-Sponsored Employee Be68
Company-Sponsored Employee Benefit Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Change in plan assets: | |||
Cash surrender value of corporate-owned life insurance | $ 162,800 | $ 161,900 | |
Accumulated other comprehensive loss (income) | |||
Prior service cost | 50,839 | 61,204 | |
Actuarial losses (gains) | 1,094,148 | 1,052,364 | |
Total amount recognized | 1,144,987 | 1,113,568 | |
Pension Benefits | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 3,671,708 | 3,089,022 | |
Service cost | 11,263 | 9,657 | $ 70,166 |
Interest cost | 171,120 | 160,436 | 148,561 |
Amendments | 914 | (347) | |
Actuarial (gain) loss, net | (86,129) | 492,720 | |
Total disbursements | (89,749) | (79,780) | |
Benefit obligation at end of year | 3,679,127 | 3,671,708 | 3,089,022 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 2,937,519 | 2,518,009 | |
Actual return on plan assets | 80,225 | 474,538 | |
Employer contributions | 75,133 | 24,752 | |
Total disbursements | (89,749) | (79,780) | |
Fair value of plan assets at end of year | 3,003,128 | 2,937,519 | 2,518,009 |
Funded status at end of year | (675,999) | (734,189) | |
Amounts recognized in the balance sheets | |||
Current accrued benefit liability (Accrued expenses) | (27,942) | (25,712) | |
Non-current accrued benefit liability (Other long-term liabilities) | (648,057) | (708,477) | |
Defined benefit plans net amount recognized in balance sheet | (675,999) | (734,189) | |
Accumulated other comprehensive loss (income) | |||
Prior service cost | 50,109 | 60,306 | |
Actuarial losses (gains) | 1,101,051 | 1,058,651 | |
Total amount recognized | 1,151,160 | 1,118,957 | |
Accumulated benefit obligation for all pension benefit plans | 3,700,000 | 3,700,000 | |
Accumulated benefit obligations/aggregate benefit obligation in excess of fair value of plan assets | |||
Accumulated benefit obligation/aggregate benefit obligation | 3,667,031 | 3,660,227 | |
Fair value of plan assets at end of year | 3,003,128 | 2,937,519 | |
Other Postretirement Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 12,611 | 14,248 | |
Service cost | 536 | 546 | 541 |
Interest cost | 590 | 748 | 614 |
Amendments | 0 | 0 | |
Actuarial (gain) loss, net | (1,050) | (3,280) | |
Total disbursements | 329 | 349 | |
Benefit obligation at end of year | 13,016 | 12,611 | 14,248 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | (329) | (349) | |
Total disbursements | 329 | 349 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | (13,016) | (12,611) | |
Amounts recognized in the balance sheets | |||
Current accrued benefit liability (Accrued expenses) | (327) | (313) | |
Non-current accrued benefit liability (Other long-term liabilities) | (12,689) | (12,298) | |
Defined benefit plans net amount recognized in balance sheet | (13,016) | (12,611) | |
Accumulated other comprehensive loss (income) | |||
Prior service cost | 730 | 898 | |
Actuarial losses (gains) | (6,903) | (6,287) | |
Total amount recognized | (6,173) | (5,389) | |
Accumulated benefit obligations/aggregate benefit obligation in excess of fair value of plan assets | |||
Accumulated benefit obligation/aggregate benefit obligation | 13,016 | 12,611 | |
Fair value of plan assets at end of year | 0 | ||
Supplemental executive retirement plan | |||
Change in plan assets: | |||
Cash surrender value of corporate-owned life insurance | $ 97,200 | $ 96,500 |
Company-Sponsored Employee Be69
Company-Sponsored Employee Benefit Plans (Components of Net Benefit Costs and Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost | $ 11,371 | ||
Amortization of actuarial losses (gains) | 21,705 | ||
Total | 33,076 | ||
Pension Benefits | |||
Net benefit costs | |||
Service cost | 11,263 | $ 9,657 | $ 70,166 |
Interest cost | 171,120 | 160,436 | 148,561 |
Expected return on plan assets | (228,624) | (192,795) | (171,201) |
Amortization of prior service cost | 11,111 | 11,145 | 9,899 |
Amortization of actuarial loss | 19,871 | 16,327 | 72,624 |
Curtailment loss | 0 | 0 | 8,293 |
Net pension costs/ Net other postretirement benefit costs | (15,259) | 4,770 | 138,342 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of prior service cost | 11,111 | 11,145 | 18,192 |
Amortization of actuarial loss | 19,871 | 16,327 | 72,624 |
Prior service cost arising in current year, before tax | (914) | 347 | (53,902) |
Actuarial (loss) gain arising in current year | (62,270) | (210,978) | 366,957 |
Total changes recognized in other comprehensive (loss) income | (32,202) | (183,159) | 403,871 |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost | 11,202 | ||
Amortization of actuarial losses (gains) | 22,186 | ||
Total | 33,388 | ||
Other Postretirement Plans | |||
Net benefit costs | |||
Service cost | 536 | 546 | 541 |
Interest cost | 590 | 748 | 614 |
Amortization of prior service cost | 168 | 168 | 168 |
Amortization of actuarial loss | (434) | (143) | (203) |
Amortization of transition obligation | 0 | 0 | 141 |
Net pension costs/ Net other postretirement benefit costs | 860 | 1,319 | 1,261 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of prior service cost | 168 | 168 | 168 |
Amortization of actuarial loss | (434) | (143) | (203) |
Amortization of transition obligation | 0 | 0 | 141 |
Actuarial (loss) gain arising in current year | 1,050 | 3,280 | (188) |
Total changes recognized in other comprehensive (loss) income | 784 | $ 3,305 | $ (82) |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost | 169 | ||
Amortization of actuarial losses (gains) | (481) | ||
Total | $ (312) |
Company-Sponsored Employee Be70
Company-Sponsored Employee Benefit Plans (Employer Contributions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | $ 75,133 | $ 24,752 |
Retirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 50,000 | |
Supplemental executive retirement plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated contributions to defined benefit plans in next fiscal year | 27,900 | |
Other Postretirement Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | (329) | $ (349) |
Estimated contributions to defined benefit plans in next fiscal year | $ 300 |
Company-Sponsored Employee Be71
Company-Sponsored Employee Benefit Plans (Estimated Future Benefit Payments) (Details) $ in Thousands | Jun. 27, 2015USD ($) |
Pension Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 105,555 |
2,017 | 115,844 |
2,018 | 126,413 |
2,019 | 137,300 |
2,020 | 148,517 |
Subsequent five years | 906,784 |
Other Postretirement Plans | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | 327 |
2,017 | 546 |
2,018 | 824 |
2,019 | 1,035 |
2,020 | 1,213 |
Subsequent five years | $ 6,658 |
Company-Sponsored Employee Be72
Company-Sponsored Employee Benefit Plans (Assumptions) (Details) | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Retirement Plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.84% | 4.74% | |
Rate of compensation increase | 3.89% | 3.89% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 4.74% | 5.32% | 4.81% |
Expected rate of return | 7.75% | 7.75% | 7.75% |
Rate of compensation increase | 3.89% | 3.89% | 5.30% |
Discount rate used to calculate next year benefit costs | 4.84% | ||
Expected rate of return on plan assets used in calculating net periodic benefit cost for next fiscal year | 7.25% | ||
Supplemental executive retirement plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.63% | 4.59% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 4.59% | 4.94% | 3.96% |
Description of annual salary growth assumption used in calculating benefit obligation | As benefit accruals under the SERP were frozen as of June 29, 2013, due to the plan freeze discussed above, future pay is not projected in the determination of the benefit obligation as of June 27, 2015 or June 28, 2014. | ||
Description of annual salary growth assumption used in calculating net periodic benefit cost | As benefit accruals under the SERP were frozen as of June 29, 2013, due to the plan freeze discussed above, future pay is not projected in the determination of net pension costs related to the SERP for fiscal 2015 and fiscal 2014. For determining the net pension costs related to the SERP for fiscal 2013, the SERP calculations utilized an age-graded salary growth assumption. | ||
Discount rate used to calculate next year benefit costs | 4.63% | ||
Other Postretirement Plans | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 4.84% | 4.74% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 4.74% | 5.32% | 4.81% |
Discount rate used to calculate next year benefit costs | 4.84% |
Company-Sponsored Employee Be73
Company-Sponsored Employee Benefit Plans (Investment Strategy) (Details) - Jun. 27, 2015 - Retirement Plan | Total |
Defined Benefit Plan Disclosure [Line Items] | |
Actual investment allocation | 100.00% |
U.S. equity | |
Defined Benefit Plan Disclosure [Line Items] | |
Target investment allocation | 24.00% |
Actual investment allocation | 24.00% |
International equity | |
Defined Benefit Plan Disclosure [Line Items] | |
Target investment allocation | 24.00% |
Actual investment allocation | 25.00% |
Long duration fixed income | |
Defined Benefit Plan Disclosure [Line Items] | |
Target investment allocation | 27.00% |
Actual investment allocation | 26.00% |
High yield fixed income | |
Defined Benefit Plan Disclosure [Line Items] | |
Target investment allocation | 7.00% |
Actual investment allocation | 7.00% |
Alternative investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Target investment allocation | 18.00% |
Actual investment allocation | 18.00% |
Company-Sponsored Employee Be74
Company-Sponsored Employee Benefit Plans (Fair Value Measurements) (Details) - Retirement Plan - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 3,003,128 | $ 2,937,519 | |
Fair value of derivative assets | 1,400 | 800 | |
Fair value of derivative liabilities | 300 | 600 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21,968 | 51,066 | |
U.S. large-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 567,234 | 995,792 | |
U.S. small-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 154,598 | 135,781 | |
International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 732,595 | 717,022 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 567,280 | 568,419 | |
U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 190,125 | 171,617 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,343 | 4,907 | |
Derivatives, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,078 | 225 | |
High yield fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 204,175 | 102,041 | |
Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 335,265 | ||
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 163,669 | 149,653 | |
Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52,891 | 31,204 | |
Total investments at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,995,221 | 2,927,727 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,907 | 9,792 | |
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | U.S. large-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 233,525 | 218,165 | |
Level 1 | U.S. small-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 154,598 | 135,781 | |
Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Derivatives, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | (127) | |
Level 1 | High yield fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Level 1 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Total investments at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 388,123 | 353,819 | |
Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21,968 | 51,066 | |
Level 2 | U.S. large-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 333,709 | 777,627 | |
Level 2 | U.S. small-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 732,595 | 717,022 | |
Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 567,280 | 568,419 | |
Level 2 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 190,125 | 171,617 | |
Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,343 | 4,907 | |
Level 2 | Derivatives, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,078 | 352 | |
Level 2 | High yield fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 204,175 | 102,041 | |
Level 2 | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | |||
Level 2 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 25,386 | 114,250 | |
Level 2 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Total investments at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,080,659 | 2,507,301 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 526,439 | 66,607 | $ 79,220 |
Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | U.S. large-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | U.S. small-cap equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Derivatives, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | High yield fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 335,265 | 0 | 0 |
Level 3 | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 138,283 | 35,403 | 64,845 |
Level 3 | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52,891 | 31,204 | $ 14,375 |
Level 3 | Total investments at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 526,439 | $ 66,607 |
Company-Sponsored Employee Be75
Company-Sponsored Employee Benefit Plans (Level 3 Rollforward) (Details) - Retirement Plan - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | $ 2,937,519 | |
Fair value of plan assets at end of year | 3,003,128 | $ 2,937,519 |
Real estate | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 149,653 | |
Fair value of plan assets at end of year | 163,669 | 149,653 |
Private equity | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 31,204 | |
Fair value of plan assets at end of year | 52,891 | 31,204 |
Hedge funds | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at end of year | 335,265 | |
Level 3 | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 66,607 | 79,220 |
Actual return on plan assets still held at the reporting date | 22,825 | 4,975 |
Actual return on plan assets sold during the period | 2,842 | 5,074 |
Purchases and sales, net | 434,165 | (22,662) |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 526,439 | 66,607 |
Level 3 | Real estate | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 35,403 | 64,845 |
Actual return on plan assets still held at the reporting date | 8,122 | 3,044 |
Actual return on plan assets sold during the period | 1,062 | 3,307 |
Purchases and sales, net | 93,696 | (35,793) |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 138,283 | 35,403 |
Level 3 | Private equity | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 31,204 | 14,375 |
Actual return on plan assets still held at the reporting date | 2,438 | 1,931 |
Actual return on plan assets sold during the period | 1,780 | 1,767 |
Purchases and sales, net | 17,469 | 13,131 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | 52,891 | 31,204 |
Level 3 | Hedge funds | ||
Change in Fair Value of Plan Assets, Level 3 Reconciliation | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets still held at the reporting date | 12,265 | 0 |
Actual return on plan assets sold during the period | 0 | 0 |
Purchases and sales, net | 323,000 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year | $ 335,265 | $ 0 |
Multiemployer Employee Benefi76
Multiemployer Employee Benefit Plans (Details) - Multiemployer Defined Benefit Pension Plans - USD ($) | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Multiemployer Plans [Line Items] | |||
Multiemployer plans general description | Sysco contributes to several multiemployer defined benefit pension plans in the U.S. and Canada based on obligations arising under collective bargaining agreements covering union-represented employees. Sysco does not directly manage these multiemployer plans, which are generally managed by boards of trustees, half of whom are appointed by the unions and the other half by other employers contributing to the plan. Approximately 10% of Sysco’s current employees are participants in such multiemployer plans as of June 28, 2014. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If Sysco chooses to stop participating in some of its multiemployer plans, Sysco may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Based upon the information available from plan administrators, management believes that several of these multiemployer plans are underfunded. In addition, pension-related legislation in the U.S. requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, Sysco expects its contributions to these plans to increase in the future. In addition, if a U.S. multiemployer defined benefit plan fails to satisfy certain minimum funding requirements, the Internal Revenue Service (IRS) may impose a nondeductible excise tax of 5% on the amount of the accumulated funding deficiency for those employers contributing to the fund. | ||
Approximate percentage of union representatives on the boards of multiemployer plans | 50.00% | ||
Approximate percentage of contributing employer representatives on the boards of multiemployer plans | 50.00% | ||
Percentage of employees participating in multi-employer plans | 10.00% | ||
Provisions recorded for multiemployer pension withdrawal liabilities | $ 0 | $ 1,500,000 | $ 41,900,000 |
Recorded multiemployer pension withdrawal liability | $ 0 | $ 1,400,000 | |
Aggregate Multiemployer Plan Withdrawal Liability | |||
Multiemployer Plans [Line Items] | |||
Tax rate for potential IRS non-deductible excise tax | 5.00% | ||
Statutory period for company exposure to additional liability after voluntary withdrawal from a multiemployer plan | 2 years | ||
Loss contingency, estimate of possible loss | $ 90,000,000 |
Multiemployer Employee Benefi77
Multiemployer Employee Benefit Plans (Plan Contributions) (Details) - Multiemployer Defined Benefit Pension Plans - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | $ 38,144 | $ 76,029 | $ 65,739 |
Individually significant plans | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | 32,097 | 30,402 | 28,816 |
All other plans | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | 6,047 | 45,627 | 36,923 |
Aggregate Multiemployer Plan Withdrawal Liability | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | $ 1,400 | $ 40,800 | $ 31,800 |
Multiemployer Employee Benefi78
Multiemployer Employee Benefit Plans (Individually Significant Plans) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015USD ($)agreement | Jun. 28, 2014USD ($) | Jun. 29, 2013USD ($) | |
Western Conference of Teamsters Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number (EIN) | 916,145,047 | ||
Plan Number (PN) | 1 | ||
Multiemployer plan certified zone status | Green | Green | |
Multiemployer plan certified zone status as of date | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer plan funding improvement plan/rehabilitation plan status | NA | ||
Multiemployer plan surcharge imposed | NA | ||
Multiemployer plan collective bargaining agreement earliest expiration date | Apr. 26, 2014 | ||
Multiemployer plan collective bargaining agreement latest expiration date | Nov. 7, 2020 | ||
Multiemployer plan number of collective bargaining agreements | agreement | 23 | ||
Multiemployer plan contributions | $ 23,268 | $ 21,893 | $ 20,561 |
Multiemployer plan contributions 5% of total plan contributions | false | false | |
Multiemployer most recent annual report date available | Dec. 31, 2013 | Dec. 31, 2012 | |
Teamsters Pension Trust Fund of Philadelphia and Vicinity | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number (EIN) | 231,511,735 | ||
Plan Number (PN) | 1 | ||
Multiemployer plan certified zone status | Yellow | Yellow | |
Multiemployer plan certified zone status as of date | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer plan funding improvement plan/rehabilitation plan status | Implemented | ||
Multiemployer plan surcharge imposed | NA | ||
Multiemployer plan collective bargaining agreement earliest expiration date | Jul. 31, 2016 | ||
Multiemployer plan collective bargaining agreement latest expiration date | Jul. 20, 2020 | ||
Multiemployer plan number of collective bargaining agreements | agreement | 3 | ||
Multiemployer plan contributions | $ 2,233 | $ 1,977 | $ 2,256 |
Multiemployer plan contributions 5% of total plan contributions | false | false | |
Multiemployer most recent annual report date available | Dec. 31, 2013 | Dec. 31, 2012 | |
New York State Teamsters Conference Pension and Retirement Fund | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number (EIN) | 166,063,585 | ||
Plan Number (PN) | 74 | ||
Multiemployer plan certified zone status | Red | Red | |
Multiemployer plan certified zone status as of date | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer plan funding improvement plan/rehabilitation plan status | Implemented | ||
Multiemployer plan surcharge imposed | No | ||
Multiemployer plan collective bargaining agreement expiration date | Apr. 30, 2017 | ||
Multiemployer plan contributions | $ 1,455 | $ 1,444 | $ 1,399 |
Multiemployer plan contributions 5% of total plan contributions | false | false | |
Multiemployer most recent annual report date available | Dec. 31, 2013 | Dec. 31, 2012 | |
Truck Drivers and Helpers Local Union No. 355 Retirement Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number (EIN) | 526,043,608 | ||
Plan Number (PN) | 1 | ||
Multiemployer plan certified zone status | Yellow | Yellow | |
Multiemployer plan certified zone status as of date | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer plan funding improvement plan/rehabilitation plan status | Implemented | ||
Multiemployer plan surcharge imposed | NA | ||
Multiemployer plan collective bargaining agreement expiration date | Aug. 31, 2015 | ||
Multiemployer plan contributions | $ 2,068 | $ 1,874 | $ 1,624 |
Multiemployer plan contributions 5% of total plan contributions | true | true | |
Multiemployer most recent annual report date available | Dec. 31, 2013 | Dec. 31, 2012 | |
Minneapolis Food Distributing Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Employer Identification Number (EIN) | 416,047,047 | ||
Plan Number (PN) | 1 | ||
Multiemployer plan certified zone status | Green | Green | |
Multiemployer plan certified zone status as of date | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer plan funding improvement plan/rehabilitation plan status | Implemented | ||
Multiemployer plan surcharge imposed | NA | ||
Multiemployer plan collective bargaining agreement expiration date | Aug. 8, 2015 | ||
Multiemployer plan contributions | $ 3,073 | $ 3,214 | $ 2,976 |
Multiemployer plan contributions 5% of total plan contributions | true | true | |
Multiemployer most recent annual report date available | Dec. 31, 2013 | Dec. 31, 2012 | |
Individually Significant Plans Aggregate | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plans description of minimum contribution | For all of the plans noted in the table above, minimum contributions outside of the agreed upon contractual rate are not required. | ||
Minimum | Western Conference of Teamsters Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 1.00% | ||
Maximum | Western Conference of Teamsters Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 10.00% | ||
CBA expiring July 31, 2016 | Teamsters Pension Trust Fund of Philadelphia and Vicinity | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan number of collective bargaining agreements | agreement | 1 | ||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 5.00% | ||
CBAs expiring July 20, 2020 | Teamsters Pension Trust Fund of Philadelphia and Vicinity | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan number of collective bargaining agreements | agreement | 2 | ||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 95.00% |
Multiemployer Employee Benefi79
Multiemployer Employee Benefit Plans (Other Postretirement Benefit Plans) (Details) - Multiemployer Other Postretirement Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Multiemployer Plans [Line Items] | |||
Multiemployer plans benefits description | These plans may provide medical, pharmacy, dental, vision, mental health and other benefits to active employees and retirees as determined by the trustees of each plan. | ||
Multiemployer plan contributions | $ 28.5 | $ 29.7 | $ 30.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Numerator: | |||||||||||
Net earnings | $ 73,026 | $ 176,955 | $ 157,979 | $ 278,813 | $ 254,171 | $ 180,937 | $ 210,835 | $ 285,590 | $ 686,773 | $ 931,533 | $ 992,427 |
Denominator: | |||||||||||
Weighted-average basic shares outstanding (in shares) | 592,072,308 | 585,988,084 | 589,397,807 | ||||||||
Dilutive effect of share-based awards (in shares) | 4,776,726 | 4,228,136 | 3,277,303 | ||||||||
Weighted-average diluted shares outstanding (in shares) | 596,849,034 | 590,216,220 | 592,675,110 | ||||||||
Basic earnings per share (in USD per share) | $ 0.12 | $ 0.30 | $ 0.27 | $ 0.47 | $ 0.43 | $ 0.31 | $ 0.36 | $ 0.49 | $ 1.16 | $ 1.59 | $ 1.68 |
Diluted earnings per share (in USD per share) | $ 0.12 | $ 0.30 | $ 0.27 | $ 0.47 | $ 0.43 | $ 0.31 | $ 0.36 | $ 0.48 | $ 1.15 | $ 1.58 | $ 1.67 |
Dividends declared | $ 705,539 | $ 673,568 | $ 654,871 | ||||||||
Dividends declared but not yet paid | $ 178,300 | $ 171,600 | $ 178,300 | $ 171,600 | $ 165,800 | ||||||
Employee Stock Option | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Number of anti-dilutive options (in shares) | 2,400,000 | 2,100,000 | 18,200,000 |
Comprehensive Income (Component
Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive income | $ 406,239 | $ 735,807 | $ 1,208,356 |
Foreign currency translation adjustment, before tax | (232,185) | (3,106) | (33,191) |
Other comprehensive income (loss), before tax | (310,673) | (315,801) | 371,224 |
Other comprehensive income (loss), tax | (30,139) | (120,075) | 155,295 |
Amortization of prior service cost, net of tax | 6,949 | 6,970 | 11,310 |
Amortization of actuarial loss (gain), net, net of tax | 11,972 | 9,968 | 44,610 |
Amortization of transition obligation, net of tax | 0 | 0 | 88 |
Total reclassification adjustments, net of tax | 18,921 | 16,938 | 56,008 |
Prior service cost arising in current year, net of tax | (563) | 214 | (33,203) |
Actuarial (loss) gain, net, arising in current year, net of tax | (37,712) | (127,942) | 225,929 |
Total other comprehensive income before reclassification adjustments, net of tax | (38,275) | (127,728) | 192,726 |
Amortization of cash flow hedges, net of tax | 5,116 | 385 | 386 |
Change in fair value of cash flow hedges, net of tax | (34,111) | (82,215) | 0 |
Total other comprehensive (loss) income | (280,534) | (195,726) | 215,929 |
Pension and other postretirement plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Prior service cost arising in current year, before tax | (914) | 347 | (53,902) |
Actuarial (loss) gain arising in current year | (61,221) | (207,698) | 366,769 |
Total other comprehensive income before reclassification adjustments, before tax | (62,135) | (207,351) | 312,867 |
Prior service cost arising in current year, tax | (351) | 133 | (20,699) |
Actuarial (loss) gain, net, arising in current year, tax | (23,509) | (79,756) | 140,840 |
Total other comprehensive income before reclassification adjustments, tax | (23,860) | (79,623) | 120,141 |
Prior service cost arising in current year, net of tax | (563) | 214 | (33,203) |
Actuarial (loss) gain, net, arising in current year, net of tax | (37,712) | (127,942) | 225,929 |
Total other comprehensive income before reclassification adjustments, net of tax | (38,275) | (127,728) | 192,726 |
Pension and other postretirement plans | Reclassification adjustments | Operating expenses | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of prior service cost, before tax | 11,279 | 11,313 | 18,360 |
Amortization of actuarial loss (gain), net, before tax | 19,437 | 16,184 | 72,421 |
Amortization of transition obligation, before tax | 141 | ||
Total reclassification adjustments, before tax | 30,716 | 27,497 | 90,922 |
Amortization of prior service cost, tax | 4,331 | 4,343 | 7,050 |
Amortization of actuarial loss (gain), net, tax | 7,464 | 6,216 | 27,811 |
Amortization of transition obligation, tax | 53 | ||
Total reclassification adjustments, tax | 11,795 | 10,559 | 34,914 |
Amortization of prior service cost, net of tax | 6,948 | 6,970 | 11,310 |
Amortization of actuarial loss (gain), net, net of tax | 11,973 | 9,968 | 44,610 |
Amortization of transition obligation, net of tax | 88 | ||
Total reclassification adjustments, net of tax | 18,921 | 16,938 | 56,008 |
Foreign currency translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign currency translation adjustment, before tax | (232,185) | (3,106) | (33,191) |
Foreign currency translation adjustment, tax | 0 | 0 | 0 |
Foreign currency translation adjustment, net of tax | (232,185) | (3,106) | (33,191) |
Interest rate swaps | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Change in fair value of cash flow hedges, before tax | (55,374) | (133,466) | |
Change in fair value of cash flow hedges, tax | (21,263) | (51,251) | |
Change in fair value of cash flow hedges, net of tax | (34,111) | (82,215) | |
Interest rate swaps | Reclassification adjustments | Interest expense | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amortization of cash flow hedges, before tax | 8,305 | 625 | 626 |
Amortization of cash flow hedges, tax | 3,189 | 240 | 240 |
Amortization of cash flow hedges, net of tax | $ 5,116 | $ 385 | $ 386 |
Comprehensive Income (Summary o
Comprehensive Income (Summary of Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Changes in accumulated other comprehensive (loss) income | |||
Beginning balance, shareholders' equity | $ 5,266,695 | $ 5,191,810 | $ 4,685,040 |
Ending balance, shareholders' equity | 5,260,224 | 5,266,695 | 5,191,810 |
Pension and other postretirement plans | |||
Changes in accumulated other comprehensive (loss) income | |||
Beginning balance, shareholders' equity | (685,957) | (575,167) | (823,901) |
Other comprehensive income before reclassification adjustments | (38,275) | (127,728) | 192,726 |
Amounts reclassified from accumulated other comprehensive loss | 18,921 | 16,938 | 56,008 |
Ending balance, shareholders' equity | (705,311) | (685,957) | (575,167) |
Foreign currency translation | |||
Changes in accumulated other comprehensive (loss) income | |||
Beginning balance, shareholders' equity | 134,452 | 137,558 | 170,749 |
Other comprehensive income before reclassification adjustments | (232,185) | (3,106) | (33,191) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Ending balance, shareholders' equity | (97,733) | 134,452 | 137,558 |
Interest rate swaps | |||
Changes in accumulated other comprehensive (loss) income | |||
Beginning balance, shareholders' equity | (91,158) | (9,328) | (9,714) |
Other comprehensive income before reclassification adjustments | (34,111) | (82,215) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 5,116 | 385 | 386 |
Ending balance, shareholders' equity | (120,153) | (91,158) | (9,328) |
Accumulated Other Comprehensive Loss | |||
Changes in accumulated other comprehensive (loss) income | |||
Beginning balance, shareholders' equity | (642,663) | (446,937) | (662,866) |
Other comprehensive income before reclassification adjustments | (304,571) | (213,049) | 159,535 |
Amounts reclassified from accumulated other comprehensive loss | 24,037 | 17,323 | 56,394 |
Ending balance, shareholders' equity | $ (923,197) | $ (642,663) | $ (446,937) |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Incentive Plans) (Details) - Jun. 27, 2015 - shares | Total |
2013 Long-term Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total number of shares authorized (in shares) | 55,600,000 |
Description of vesting requirements for awards issued and contractual life for options granted | Vesting requirements for awards under this plan will vary by individual grant and may include either time-based vesting or time-based vesting subject to acceleration based on performance criteria for fiscal periods of at least one year. The contractual life of all options granted under this plan will be no greater than ten years. |
Total number of shares available for grant (in shares) | 43,562,619 |
Previous Employee Stock Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual life for awards granted | 7 years |
2009 Non-Employee Directors Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total number of shares authorized (in shares) | 750,000 |
Total number of shares available for grant (in shares) | 346,286 |
Options Or Stock Apppreciation Rights | 2013 Long-term Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total number of shares authorized (in shares) | 55,600,000 |
Total number of shares available for grant (in shares) | 43,562,619 |
Restricted Stock, Restricted Stock Units Or Other Types Of Stock-Based Awards | 2013 Long-term Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total number of shares authorized (in shares) | 17,500,000 |
Total number of shares available for grant (in shares) | 15,115,359 |
Minimum | 2013 Long-term Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum vesting period for awards granted | 1 year |
Maximum | 2013 Long-term Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Contractual life for awards granted | 10 years |
Share-Based Compensation (Sto84
Share-Based Compensation (Stock Options) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015USD ($)employee$ / sharesshares | Jun. 28, 2014USD ($)employee$ / sharesshares | Jun. 29, 2013USD ($)employee$ / sharesshares | |
Fair Value Assumptions and Methodology | |||
Dividend yield | 3.20% | 3.50% | 3.70% |
Expected volatility | 20.70% | 20.40% | 20.70% |
Risk-free interest rate | 2.00% | 2.10% | 0.70% |
Expected life | 7 years 3 months 18 days | 7 years 2 months 12 days | 5 years 4 months 24 days |
Shares Under Option | |||
Outstanding, beginning balance (in shares) | 27,469,911 | ||
Granted (in shares) | 4,497,954 | 5,575,645 | 6,212,716 |
Exercised (in shares) | (6,054,528) | ||
Forfeited (in shares) | (85,550) | ||
Expired (in shares) | (35,409) | ||
Outstanding, ending balance (in shares) | 25,792,378 | 27,469,911 | |
Vested or expected to vest (in shares) | 25,575,542 | ||
Exercisable (in shares) | 9,902,719 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding, beginning balance (in USD per share) | $ / shares | $ 29.59 | ||
Granted (in USD per share) | $ / shares | 38.89 | ||
Exercised (in USD per share) | $ / shares | 29.31 | ||
Forfeited (in USD per share) | $ / shares | 29.33 | ||
Expired (in USD per share) | $ / shares | 33.22 | ||
Outstanding, ending balance (in USD per share) | $ / shares | 31.28 | $ 29.59 | |
Vested or expected to vest (in USD per share) | $ / shares | 31.24 | ||
Exercisable (in USD per share) | $ / shares | $ 28.54 | ||
Additional Disclosures | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 5 years 2 months 16 days | ||
Vested or expected to vest, weighted average remaining contractual term | 5 years 2 months 5 days | ||
Exercisable, weighted average remaining contractual term | 3 years 18 days | ||
Outstanding, ending balance, aggregate intrinsic value | $ | $ 185,242 | ||
Vested or expected to vest, aggregate intrinsic value | $ | 184,526 | ||
Exercisable, aggregate intrinsic value | $ | $ 97,362 | ||
Weighted average fair value of options granted in period (in USD per share) | $ / shares | $ 5.78 | $ 4.64 | $ 3.20 |
Total intrinsic value of options exercised in period | $ | $ 21,600 | $ 19,100 | $ 24,100 |
Key Employees | |||
Shares Under Option | |||
Granted (in shares) | 3,211,421 | 3,415,947 | 3,860,996 |
Additional Disclosures | |||
Number of employees receiving options in period | employee | 173 | 167 | 152 |
Executive Officer | |||
Shares Under Option | |||
Granted (in shares) | 1,286,533 | 2,159,698 | 2,351,720 |
Additional Disclosures | |||
Number of employees receiving options in period | employee | 6 | 11 | 11 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Units) (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options granted (in shares) | 1,198,588 | 1,322,709 | 1,722,835 |
Equity instruments other than options granted, award vesting period | 3 years | 3 years | 3 years |
Equity instruments other than options granted, weighted average grant date fair value per share (in USD per share) | $ 37.59 | $ 33.39 | $ 29.75 |
Equity instruments other than options vested, total fair value | $ 52.5 | $ 39.4 | $ 27.6 |
Share-Based Compensation (Non-E
Share-Based Compensation (Non-Employee Director Awards) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Director Restricted Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options granted (in shares) | 37,035 | 43,119 | 48,069 |
Equity instruments other than options granted, award vesting period | 1 year | 1 year | 1 year |
Equity instruments other than options granted, weighted average grant date fair value per share (in USD per share) | $ 38.89 | $ 33.40 | $ 29.96 |
Equity instruments other than options distributed, total fair value | $ 1.6 | $ 1.4 | $ 1.9 |
Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options distributed, total fair value | $ 0.9 | $ 0.8 | $ 0.5 |
Equity instruments other than options vested (in shares) | 23,949 | 24,565 | 26,702 |
Equity instruments other than options vested, weighted average grant date fair value per share (in USD per share) | $ 38.26 | $ 34.59 | $ 30.38 |
Elected Shares | 2009 Non-Employee Directors Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of annual director fees that can be received in common stock | 100.00% | ||
Matching percentage of shares received in the stock election | 50.00% | ||
Director Restricted Award And Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options vested but not distributed ending balance (in shares) | 104,605 |
Share-Based Compensation (Summa
Share-Based Compensation (Summary of Nonvested Awards) (Details) - Nonvested Awards - $ / shares | 12 Months Ended |
Jun. 27, 2015 | |
Shares | |
Nonvested beginning balance (in shares) | 2,918,405 |
Granted (in shares) | 1,235,940 |
Vested (in shares) | (1,396,269) |
Forfeited (in shares) | (60,422) |
Nonvested ending balance (in shares) | 2,697,654 |
Weighted Average Grant Date Fair Value Per Share | |
Nonvested, beginning balance (in USD per share) | $ 31.06 |
Granted (in USD per share) | 37.63 |
Vested (in USD per share) | 30.40 |
Forfeited (in USD per share) | 32.90 |
Nonvested, ending balance (in USD per share) | $ 34.37 |
Share-Based Compensation (Emplo
Share-Based Compensation (Employees' Stock Purchase Plan) (Details) - Employees' Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, discount from market price | 15.00% | ||
Total number of shares authorized (in shares) | 79,000,000 | ||
Total number of shares available for grant (in shares) | 1,211,657 | ||
Equity instruments other than options vested (in shares) | 1,243,275 | 1,315,535 | 1,470,271 |
Equity instruments other than options vested, weighted average grant date fair value per share (in USD per share) | $ 5.73 | $ 5.17 | $ 4.78 |
Share-Based Compensation (All S
Share-Based Compensation (All Share-Based Payment Arrangements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Share-based Compensation [Abstract] | |||
Share-based compensation expense | $ 73,766 | $ 74,328 | $ 70,147 |
Total income tax benefit recognized on share-based compensation expense | 27,400 | 28,100 | 29,900 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 69,400 | ||
Weighted average period of time for unrecognized compensation cost to be recognized | 2 years 5 months 1 day | ||
Cash received from options exercises and purchase of shares under the employees' stock purchase plan | $ 240,200 | 255,600 | 628,700 |
Actual tax benefit realized for tax deductions from option exercises | $ 20,700 | $ 16,600 | $ 24,000 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provisions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States pretax income | $ 818,244 | $ 1,287,371 | $ 1,351,947 | ||||||||
Foreign pretax income | 189,903 | 188,253 | 195,508 | ||||||||
Earnings before income taxes | $ 68,748 | $ 266,335 | $ 236,197 | $ 436,867 | $ 400,533 | $ 296,683 | $ 326,204 | $ 452,204 | 1,008,147 | 1,475,624 | 1,547,455 |
United States federal income tax expense | 285,807 | 433,795 | 439,667 | ||||||||
State and local income tax expense | (2,737) | 55,736 | 69,759 | ||||||||
Foreign income tax expense | 38,304 | 54,560 | 45,602 | ||||||||
Current income tax expense | 327,639 | 574,760 | 582,889 | ||||||||
Deferred income tax expense (benefit) | (6,265) | (30,669) | (27,861) | ||||||||
Total income tax expense | $ (4,278) | $ 89,380 | $ 78,218 | $ 158,054 | $ 146,362 | $ 115,746 | $ 115,369 | $ 166,614 | $ 321,374 | $ 544,091 | $ 555,028 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) | Jun. 27, 2015 | Jun. 28, 2014 |
Deferred tax liabilities: | ||
Excess tax depreciation and basis differences of assets | $ 381,875,000 | $ 416,417,000 |
Goodwill and intangible assets | 224,943,000 | 211,434,000 |
Other | 23,449,000 | 15,171,000 |
Total deferred tax liabilities | 630,267,000 | 643,022,000 |
Deferred tax assets: | ||
Net operating tax state loss carryforwards | 47,958,000 | 20,123,000 |
Benefit on unrecognized tax benefits | 16,270,000 | 22,170,000 |
Pension | 264,780,000 | 287,046,000 |
Share-based compensation | 42,569,000 | 41,262,000 |
Deferred compensation | 35,573,000 | 33,280,000 |
Self-insured liabilities | 65,617,000 | 65,002,000 |
Receivables | 38,410,000 | 47,688,000 |
Inventory | 68,186,000 | 62,799,000 |
Cash flow hedge | 74,900,000 | 56,826,000 |
Other | 29,667,000 | 26,471,000 |
Total deferred tax assets | 683,930,000 | 662,667,000 |
Total net deferred tax (assets) | (53,663,000) | (19,645,000) |
State Jurisdiction [Member] | ||
Deferred tax assets: | ||
State jurisdiction operating loss carryforward valuation allowance | $ 0 | $ 0 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of any applicable federal income tax benefit | 0.91% | 2.82% | 2.59% |
Foreign tax rate differential | (2.84%) | (1.66%) | (1.22%) |
Other | (1.19%) | 0.71% | (0.50%) |
Effective income tax rate | 31.88% | 36.87% | 35.87% |
Net increase (reduction) in income tax expense related to nondeductible penalty | $ 6.2 | ||
Income tax expense for tax adjustments related to federal, state and foreign uncertain tax positions | 5.2 | ||
Net increase (reduction) in income tax expense related to disqualifying dispositions | $ 5.7 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Gross Unrecognized Tax Benefits, Excluding Interest and Penalties | ||
Unrecognized tax benefits at beginning of year | $ 49,180 | $ 108,337 |
Additions for tax positions related to prior years | 797 | 2,128 |
Reductions for tax positions related to prior years | (8,001) | (41,802) |
Reductions due to settlements with taxing authorities | (4,430) | (19,483) |
Unrecognized tax benefits at end of year | 37,546 | 49,180 |
Liability recorded for interest and penalties related to unrecognized tax benefits | 33,400 | 36,700 |
Expense recorded for interest and penalties related to unrecognized tax benefits | 14,800 | |
Amount of unrecognized tax benefits at balance sheet date that, if recognized, would impact effective tax rate | $ 27,700 | $ 35,100 |
Income Taxes (Other) (Details)
Income Taxes (Other) (Details) $ in Billions | Jun. 27, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
Undistributed income of foreign subsidiaries | $ 1.1 |
Commitments and Contingencies95
Commitments and Contingencies (Fuel Commitments) (Details) $ in Millions | Jun. 27, 2015USD ($) |
Fuel Commitments [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Unrecorded unconditional purchase obligation as of balance sheet date | $ 99.3 |
Commitments and Contingencies96
Commitments and Contingencies (Other Commitments) (Details) - Jun. 27, 2015 - USD ($) $ in Thousands | Total |
Product Purchases for Resale Commitments | |
Other Commitments [Line Items] | |
Time period of long-term purchase commitment | 1 year |
Unrecorded unconditional purchase obligation as of balance sheet date | $ 3,400,000 |
Product purchases for resale commitments: | |
2,016 | 2,553,305 |
2,017 | 818,521 |
2,018 | 29,035 |
2,019 | 2,863 |
2,020 | 2,863 |
2,021 | 1,491 |
Information Technology Services Commitments | |
Product purchases for resale commitments: | |
Remaining amount of long-term purchase commitment | 485,500 |
Termination fee associated with long-term purchase commitment if terminated in next fiscal year | $ 18,100 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($) | Mar. 29, 2014USD ($) | Dec. 28, 2013USD ($) | Sep. 28, 2013USD ($) | Jun. 27, 2015USD ($)segment | Jun. 28, 2014USD ($) | Jun. 29, 2013USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 12,401,938 | $ 11,746,659 | $ 12,087,074 | $ 12,445,081 | $ 12,286,992 | $ 11,277,484 | $ 11,237,969 | $ 11,714,267 | $ 48,680,752 | $ 46,516,712 | $ 44,411,233 |
Operating income | 120,995 | 327,308 | 315,446 | 465,613 | 424,522 | 332,625 | 351,777 | 478,198 | 1,229,362 | 1,587,122 | 1,658,478 |
Interest expense | 77,281 | 69,550 | 77,042 | 30,934 | 31,205 | 32,224 | 29,784 | 30,528 | 254,807 | 123,741 | 128,495 |
Other expense (income), net | (25,034) | (8,577) | 2,207 | (2,188) | (7,216) | 3,718 | (4,211) | (4,534) | (33,592) | (12,243) | (17,472) |
Earnings before income taxes | 68,748 | $ 266,335 | $ 236,197 | $ 436,867 | 400,533 | $ 296,683 | $ 326,204 | $ 452,204 | 1,008,147 | 1,475,624 | 1,547,455 |
Depreciation and amortization | 580,964 | 556,062 | 512,548 | ||||||||
Capital expenditures | 542,830 | 523,206 | 511,862 | ||||||||
Assets | 17,989,281 | 13,141,113 | 17,989,281 | 13,141,113 | 12,665,766 | ||||||
Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | 2,724,360 | 2,607,375 | 2,552,795 | ||||||||
Depreciation and amortization | 362,392 | 366,135 | 369,864 | ||||||||
Capital expenditures | 305,972 | 412,113 | 349,838 | ||||||||
Assets | 9,657,321 | 10,505,273 | 9,657,321 | 10,505,273 | 11,658,382 | ||||||
Operating | Broadline | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 38,652,211 | 36,808,051 | 35,284,529 | ||||||||
Operating income | 2,567,954 | 2,426,908 | 2,361,442 | ||||||||
Depreciation and amortization | 278,553 | 296,267 | 303,084 | ||||||||
Capital expenditures | 199,831 | 276,314 | 265,578 | ||||||||
Assets | 7,730,239 | 8,611,776 | 7,730,239 | 8,611,776 | 9,893,743 | ||||||
Operating | SYGMA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 6,076,215 | 6,177,804 | 5,780,103 | ||||||||
Operating income | 20,521 | 38,048 | 52,016 | ||||||||
Depreciation and amortization | 29,753 | 28,164 | 28,059 | ||||||||
Capital expenditures | 36,948 | 34,671 | 18,078 | ||||||||
Assets | 512,044 | 513,587 | 512,044 | 513,587 | 485,520 | ||||||
Operating | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,270,518 | 4,678,954 | 4,388,261 | ||||||||
Operating income | 135,885 | 142,419 | 139,337 | ||||||||
Depreciation and amortization | 54,086 | 41,704 | 38,721 | ||||||||
Capital expenditures | 69,193 | 101,128 | 66,182 | ||||||||
Assets | 1,415,038 | 1,379,910 | 1,415,038 | 1,379,910 | 1,279,119 | ||||||
Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | (1,318,192) | (1,148,097) | (1,041,660) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | (1,494,998) | (1,020,253) | (894,317) | ||||||||
Depreciation and amortization | 218,572 | 189,927 | 142,684 | ||||||||
Capital expenditures | 236,858 | 111,093 | 162,024 | ||||||||
Assets | $ 8,331,960 | $ 2,635,840 | $ 8,331,960 | $ 2,635,840 | $ 1,007,384 |
Business Segment Information (P
Business Segment Information (Product Mix) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | $ 12,401,938 | $ 11,746,659 | $ 12,087,074 | $ 12,445,081 | $ 12,286,992 | $ 11,277,484 | $ 11,237,969 | $ 11,714,267 | $ 48,680,752 | $ 46,516,712 | $ 44,411,233 |
Fresh and frozen meats | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 10,080,290 | 8,809,148 | 8,242,423 | ||||||||
Canned and dry products | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 7,999,250 | 8,383,007 | 8,310,634 | ||||||||
Frozen fruits, vegetables, bakery and other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 6,339,537 | 6,196,362 | 6,023,990 | ||||||||
Dairy products | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 5,199,036 | 4,956,895 | 4,669,986 | ||||||||
Poultry | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 5,189,496 | 4,814,949 | 4,580,445 | ||||||||
Fresh produce | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 3,828,298 | 3,725,108 | 3,540,027 | ||||||||
Paper and disposables | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 3,507,007 | 3,438,074 | 3,364,965 | ||||||||
Seafood | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 2,490,523 | 2,401,021 | 2,167,588 | ||||||||
Beverage products | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 1,754,944 | 1,671,000 | 1,643,034 | ||||||||
Janitorial products | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 1,102,855 | 1,050,187 | 1,013,488 | ||||||||
Equipment and smallwares | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | 661,254 | 678,454 | 637,680 | ||||||||
Medical supplies | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales | $ 528,262 | $ 392,507 | $ 216,973 |
Business Segment Information (G
Business Segment Information (Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 12,401,938 | $ 11,746,659 | $ 12,087,074 | $ 12,445,081 | $ 12,286,992 | $ 11,277,484 | $ 11,237,969 | $ 11,714,267 | $ 48,680,752 | $ 46,516,712 | $ 44,411,233 |
Plant and equipment, net | 3,982,143 | 3,985,618 | 3,982,143 | 3,985,618 | 3,978,071 | ||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 43,146,591 | 40,612,963 | 38,985,715 | ||||||||
Plant and equipment, net | 3,519,610 | 3,520,449 | 3,519,610 | 3,520,449 | 3,593,346 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 4,727,742 | 4,923,672 | 4,698,814 | ||||||||
Plant and equipment, net | 317,231 | 347,440 | 317,231 | 347,440 | 307,605 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 806,419 | 980,077 | 726,704 | ||||||||
Plant and equipment, net | $ 145,302 | $ 117,729 | $ 145,302 | $ 117,729 | $ 77,120 |
Supplemental Guarantor Infor100
Supplemental Guarantor Information - Subsidiary Guarantees (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 27, 2015 | Oct. 31, 2014 | Jun. 28, 2014 | |
Guarantor Obligations [Line Items] | |||
Carrying value of total debt | $ 7,321,877,000 | $ 2,733,082,000 | |
Percentage ownership of subsidiary guarantors by parent | 100.00% | ||
Six Part Senior Notes Offering | |||
Guarantor Obligations [Line Items] | |||
Face value of outstanding senior notes and debentures guaranteed by wholly-owned subsidiaries | $ 5,000,000,000 |
Supplemental Guarantor Infor101
Supplemental Guarantor Information - Subsidiary Guarantees (Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | $ 11,494,304 | $ 6,681,972 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 3,982,143 | 3,985,618 | $ 3,978,071 | |
Other assets | 2,512,834 | 2,473,523 | ||
Total assets | 17,989,281 | 13,141,113 | 12,665,766 | |
Current liabilities | 9,399,615 | 4,367,630 | ||
Intercompany payables (receivables) | 0 | 0 | ||
Long-term debt | 2,271,825 | 2,357,330 | ||
Other liabilities | 1,016,313 | 1,149,458 | ||
Noncontrolling Interest | 41,304 | 0 | ||
Shareholders' equity | 5,260,224 | 5,266,695 | $ 5,191,810 | $ 4,685,040 |
Total liabilities and shareholders' equity | 17,989,281 | 13,141,113 | ||
Reportable Legal Entities | Sysco | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | 4,894,387 | 254,766 | ||
Investment in subsidiaries | 9,088,455 | 8,013,214 | ||
Plant and equipment, net | 510,285 | 496,953 | ||
Other assets | 371,802 | 317,208 | ||
Total assets | 14,864,929 | 9,082,141 | ||
Current liabilities | 5,851,364 | 793,240 | ||
Intercompany payables (receivables) | 973,497 | 20,107 | ||
Long-term debt | 2,154,923 | 2,321,721 | ||
Other liabilities | 624,795 | 680,378 | ||
Noncontrolling Interest | 0 | |||
Shareholders' equity | 5,260,350 | 5,266,695 | ||
Total liabilities and shareholders' equity | 14,864,929 | 9,082,141 | ||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | 4,012,924 | 3,928,660 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 1,694,659 | 1,783,262 | ||
Other assets | 522,566 | 524,468 | ||
Total assets | 6,230,149 | 6,236,390 | ||
Current liabilities | 1,658,558 | 1,008,366 | ||
Intercompany payables (receivables) | (1,996,915) | (239,539) | ||
Long-term debt | 10,121 | 14,094 | ||
Other liabilities | 278,458 | 328,185 | ||
Noncontrolling Interest | 0 | |||
Shareholders' equity | 6,279,927 | 5,125,284 | ||
Total liabilities and shareholders' equity | 6,230,149 | 6,236,390 | ||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | 2,586,993 | 2,498,546 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 1,777,199 | 1,705,403 | ||
Other assets | 1,618,466 | 1,631,847 | ||
Total assets | 5,982,658 | 5,835,796 | ||
Current liabilities | 1,889,693 | 2,566,024 | ||
Intercompany payables (receivables) | 1,023,418 | 219,432 | ||
Long-term debt | 106,781 | 21,515 | ||
Other liabilities | 113,060 | 140,895 | ||
Noncontrolling Interest | 41,304 | |||
Shareholders' equity | 2,808,402 | 2,887,930 | ||
Total liabilities and shareholders' equity | $ 5,982,658 | 5,835,796 | ||
Eliminations | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Current assets | 0 | |||
Investment in subsidiaries | $ (9,088,455) | (8,013,214) | ||
Plant and equipment, net | 0 | |||
Other assets | 0 | |||
Total assets | $ (9,088,455) | (8,013,214) | ||
Current liabilities | 0 | |||
Intercompany payables (receivables) | 0 | |||
Long-term debt | 0 | |||
Other liabilities | 0 | |||
Shareholders' equity | $ (9,088,455) | (8,013,214) | ||
Total liabilities and shareholders' equity | $ (9,088,455) | $ (8,013,214) |
Supplemental Guarantor Infor102
Supplemental Guarantor Information - Subsidiary Guarantees (Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Sales | $ 12,401,938 | $ 11,746,659 | $ 12,087,074 | $ 12,445,081 | $ 12,286,992 | $ 11,277,484 | $ 11,237,969 | $ 11,714,267 | $ 48,680,752 | $ 46,516,712 | $ 44,411,233 |
Cost of sales | 10,181,774 | 9,689,161 | 10,001,937 | 10,256,364 | 10,131,136 | 9,282,743 | 9,273,018 | 9,648,780 | 40,129,236 | 38,335,677 | 36,414,626 |
Gross profit | 2,220,164 | 2,057,498 | 2,085,137 | 2,188,717 | 2,155,856 | 1,994,741 | 1,964,951 | 2,065,487 | 8,551,516 | 8,181,035 | 7,996,607 |
Operating expenses | 2,099,169 | 1,730,190 | 1,769,691 | 1,723,104 | 1,731,334 | 1,662,116 | 1,613,174 | 1,587,289 | 7,322,154 | 6,593,913 | 6,338,129 |
Operating income | 120,995 | 327,308 | 315,446 | 465,613 | 424,522 | 332,625 | 351,777 | 478,198 | 1,229,362 | 1,587,122 | 1,658,478 |
Interest expense (income) | 77,281 | 69,550 | 77,042 | 30,934 | 31,205 | 32,224 | 29,784 | 30,528 | 254,807 | 123,741 | 128,495 |
Other expense (income), net | (25,034) | (8,577) | 2,207 | (2,188) | (7,216) | 3,718 | (4,211) | (4,534) | (33,592) | (12,243) | (17,472) |
Earnings before income taxes | 68,748 | 266,335 | 236,197 | 436,867 | 400,533 | 296,683 | 326,204 | 452,204 | 1,008,147 | 1,475,624 | 1,547,455 |
Income tax (benefit) provision | (4,278) | 89,380 | 78,218 | 158,054 | 146,362 | 115,746 | 115,369 | 166,614 | 321,374 | 544,091 | 555,028 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | $ 73,026 | $ 176,955 | $ 157,979 | $ 278,813 | $ 254,171 | $ 180,937 | $ 210,835 | $ 285,590 | 686,773 | 931,533 | 992,427 |
Other comprehensive income (loss) | (280,534) | (195,726) | 215,929 | ||||||||
Comprehensive income | 406,239 | 735,807 | 1,208,356 | ||||||||
Reportable Legal Entities | Sysco | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses | 1,232,956 | 804,177 | 694,323 | ||||||||
Operating income | (1,232,956) | (804,177) | (694,323) | ||||||||
Interest expense (income) | 323,918 | 232,140 | 298,474 | ||||||||
Other expense (income), net | (9,496) | (7,434) | (12,864) | ||||||||
Earnings before income taxes | (1,547,378) | (1,028,883) | (979,933) | ||||||||
Income tax (benefit) provision | (493,263) | (379,369) | (351,474) | ||||||||
Equity in earnings of subsidiaries | 1,740,888 | 1,581,047 | 1,620,886 | ||||||||
Net earnings | 686,773 | 931,533 | 992,427 | ||||||||
Other comprehensive income (loss) | (280,534) | (195,726) | 215,929 | ||||||||
Comprehensive income | 406,239 | 735,807 | 1,208,356 | ||||||||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Sales | 32,626,221 | 30,741,979 | 30,162,329 | ||||||||
Cost of sales | 26,572,257 | 24,990,377 | 24,385,677 | ||||||||
Gross profit | 6,053,964 | 5,751,602 | 5,776,652 | ||||||||
Operating expenses | 3,709,320 | 3,520,577 | 3,610,907 | ||||||||
Operating income | 2,344,644 | 2,231,025 | 2,165,745 | ||||||||
Interest expense (income) | (108,233) | (102,086) | (177,421) | ||||||||
Other expense (income), net | (3,609) | 217 | (4,554) | ||||||||
Earnings before income taxes | 2,456,486 | 2,332,894 | 2,347,720 | ||||||||
Income tax (benefit) provision | 783,066 | 860,184 | 842,062 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | $ 1,673,420 | 1,472,710 | 1,505,658 | ||||||||
Other comprehensive income (loss) | 0 | 0 | |||||||||
Comprehensive income | $ 1,673,420 | 1,472,710 | 1,505,658 | ||||||||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Sales | 17,477,986 | 16,979,494 | 15,335,180 | ||||||||
Cost of sales | 14,980,434 | 14,550,061 | 13,115,225 | ||||||||
Gross profit | 2,497,552 | 2,429,433 | 2,219,955 | ||||||||
Operating expenses | 2,379,878 | 2,269,159 | 2,032,899 | ||||||||
Operating income | 117,674 | 160,274 | 187,056 | ||||||||
Interest expense (income) | 39,122 | (6,313) | 7,442 | ||||||||
Other expense (income), net | (20,487) | (5,026) | (54) | ||||||||
Earnings before income taxes | 99,039 | 171,613 | 179,668 | ||||||||
Income tax (benefit) provision | 31,571 | 63,276 | 64,440 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | 67,468 | 108,337 | 115,228 | ||||||||
Other comprehensive income (loss) | (232,185) | (3,106) | (33,191) | ||||||||
Comprehensive income | (164,717) | 105,231 | 82,037 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Sales | (1,423,455) | (1,204,761) | (1,086,276) | ||||||||
Cost of sales | (1,423,455) | (1,204,761) | (1,086,276) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense (income) | 0 | 0 | 0 | ||||||||
Other expense (income), net | 0 | 0 | 0 | ||||||||
Earnings before income taxes | 0 | 0 | 0 | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (1,740,888) | (1,581,047) | (1,620,886) | ||||||||
Net earnings | (1,740,888) | (1,581,047) | (1,620,886) | ||||||||
Other comprehensive income (loss) | 232,185 | 3,106 | 33,191 | ||||||||
Comprehensive income | $ (1,508,703) | $ (1,577,941) | $ (1,587,695) |
Supplemental Guarantor Infor103
Supplemental Guarantor Information - Subsidiary Guarantees (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | $ 1,555,484 | $ 1,492,815 | $ 1,511,594 |
Net cash provided by (used for) investing activities | (654,346) | (576,838) | (911,882) |
Net cash provided by (used for) financing activities | 3,897,562 | (915,858) | (874,208) |
Effect of exchange rates on cash | (81,702) | 642 | (2,086) |
Intercompany activity | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 4,716,998 | 761 | (276,582) |
Cash and cash equivalents at beginning of period | 413,046 | 412,285 | 688,867 |
Cash and cash equivalents at end of period | 5,130,044 | 413,046 | 412,285 |
Reportable Legal Entities | Sysco | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | (359,239) | (504,119) | (449,417) |
Net cash provided by (used for) investing activities | (160,234) | (51,290) | (105,314) |
Net cash provided by (used for) financing activities | 3,832,479 | (919,627) | (887,707) |
Effect of exchange rates on cash | 0 | 0 | 0 |
Intercompany activity | 1,379,112 | 1,426,402 | 1,178,922 |
Net increase (decrease) in cash and cash equivalents | 4,692,118 | (48,634) | (263,516) |
Cash and cash equivalents at beginning of period | 158,957 | 207,591 | 471,107 |
Cash and cash equivalents at end of period | 4,851,075 | 158,957 | 207,591 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | 2,363,836 | 1,541,062 | 1,705,950 |
Net cash provided by (used for) investing activities | (108,099) | (171,979) | (140,217) |
Net cash provided by (used for) financing activities | (6,022) | 3,872 | (15,666) |
Effect of exchange rates on cash | 0 | 0 | 0 |
Intercompany activity | (2,251,109) | (1,369,478) | (1,560,250) |
Net increase (decrease) in cash and cash equivalents | (1,394) | 3,477 | (10,183) |
Cash and cash equivalents at beginning of period | 27,772 | 24,295 | 34,478 |
Cash and cash equivalents at end of period | 26,378 | 27,772 | 24,295 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by (used for) operating activities | (449,113) | 455,872 | 255,061 |
Net cash provided by (used for) investing activities | (386,013) | (353,569) | (666,351) |
Net cash provided by (used for) financing activities | 71,105 | (103) | 29,165 |
Effect of exchange rates on cash | (81,702) | 642 | (2,086) |
Intercompany activity | 871,997 | (56,924) | 381,328 |
Net increase (decrease) in cash and cash equivalents | 26,274 | 45,918 | (2,883) |
Cash and cash equivalents at beginning of period | 226,317 | 180,399 | 183,282 |
Cash and cash equivalents at end of period | $ 252,591 | $ 226,317 | $ 180,399 |
Quarterly Results (Unaudited104
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Quarterly Results [Line Items] | |||||||||||
Sales | $ 12,401,938 | $ 11,746,659 | $ 12,087,074 | $ 12,445,081 | $ 12,286,992 | $ 11,277,484 | $ 11,237,969 | $ 11,714,267 | $ 48,680,752 | $ 46,516,712 | $ 44,411,233 |
Cost of sales | 10,181,774 | 9,689,161 | 10,001,937 | 10,256,364 | 10,131,136 | 9,282,743 | 9,273,018 | 9,648,780 | 40,129,236 | 38,335,677 | 36,414,626 |
Gross profit | 2,220,164 | 2,057,498 | 2,085,137 | 2,188,717 | 2,155,856 | 1,994,741 | 1,964,951 | 2,065,487 | 8,551,516 | 8,181,035 | 7,996,607 |
Operating expenses | 2,099,169 | 1,730,190 | 1,769,691 | 1,723,104 | 1,731,334 | 1,662,116 | 1,613,174 | 1,587,289 | 7,322,154 | 6,593,913 | 6,338,129 |
Operating income | 120,995 | 327,308 | 315,446 | 465,613 | 424,522 | 332,625 | 351,777 | 478,198 | 1,229,362 | 1,587,122 | 1,658,478 |
Interest expense | 77,281 | 69,550 | 77,042 | 30,934 | 31,205 | 32,224 | 29,784 | 30,528 | 254,807 | 123,741 | 128,495 |
Other expense (income), net | (25,034) | (8,577) | 2,207 | (2,188) | (7,216) | 3,718 | (4,211) | (4,534) | (33,592) | (12,243) | (17,472) |
Earnings before income taxes | 68,748 | 266,335 | 236,197 | 436,867 | 400,533 | 296,683 | 326,204 | 452,204 | 1,008,147 | 1,475,624 | 1,547,455 |
Income taxes | (4,278) | 89,380 | 78,218 | 158,054 | 146,362 | 115,746 | 115,369 | 166,614 | 321,374 | 544,091 | 555,028 |
Net earnings | $ 73,026 | $ 176,955 | $ 157,979 | $ 278,813 | $ 254,171 | $ 180,937 | $ 210,835 | $ 285,590 | $ 686,773 | $ 931,533 | $ 992,427 |
Basic net earnings (in USD per share) | $ 0.12 | $ 0.30 | $ 0.27 | $ 0.47 | $ 0.43 | $ 0.31 | $ 0.36 | $ 0.49 | $ 1.16 | $ 1.59 | $ 1.68 |
Diluted net earnings (in USD per share) | 0.12 | 0.30 | 0.27 | 0.47 | 0.43 | 0.31 | 0.36 | 0.48 | 1.15 | 1.58 | 1.67 |
Dividends declared per common share (in USD per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.29 | 0.29 | 0.29 | 0.29 | 0.28 | $ 1.19 | 1.15 | $ 1.11 |
Percentage change in sales | 1.00% | 4.00% | 8.00% | 6.00% | 5.00% | ||||||
Percentage change in operating income | (71.00%) | (2.00%) | (10.00%) | (3.00%) | (23.00%) | ||||||
Percentage change in net earnings | (71.00%) | (2.00%) | (25.00%) | (2.00%) | (26.00%) | ||||||
Percentage change in basic net earnings per share | (72.00%) | (3.00%) | (25.00%) | (4.00%) | (27.00%) | ||||||
Percentage change in diluted net earnings per share | (72.00%) | (3.00%) | (25.00%) | (2.00%) | (27.00%) | ||||||
Maximum | |||||||||||
Quarterly Results [Line Items] | |||||||||||
Market price (in USD per share) | $ 39 | $ 41 | $ 41 | $ 39 | 38 | 37 | 43 | 36 | $ 41 | 43 | |
Minimum | |||||||||||
Quarterly Results [Line Items] | |||||||||||
Market price (in USD per share) | $ 36 | $ 38 | $ 36 | $ 36 | $ 35 | $ 34 | $ 31 | $ 31 | $ 36 | $ 31 |