Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 26, 2015 | Jan. 23, 2016 | |
Document Entity Information [Abstract] | ||
Entity Registrant Name | SYSCO CORP | |
Entity Central Index Key | 96,021 | |
Current Fiscal Year End Date | --07-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 26, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 564,603,274 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2015 | Jun. 27, 2015 | Dec. 27, 2014 |
Current assets | |||
Cash and cash equivalents | $ 595,602 | $ 5,130,044 | $ 4,907,677 |
Accounts and notes receivable, less allowances of $57,631, $41,720, and $68,427 | 3,353,453 | 3,353,381 | 3,529,997 |
Inventories | 2,736,382 | 2,691,823 | 2,791,813 |
Deferred income taxes | 0 | 135,254 | 140,456 |
Prepaid expenses and other current assets | 83,263 | 93,039 | 76,682 |
Prepaid income taxes | 10,326 | 90,763 | 10,279 |
Total current assets | 6,779,026 | 11,494,304 | 11,456,904 |
Plant and equipment at cost, less depreciation | 3,936,612 | 3,982,143 | 4,002,932 |
Long-term assets | |||
Goodwill | 1,977,921 | 1,959,817 | 1,966,547 |
Intangibles, less amortization | 163,089 | 154,809 | 168,446 |
Restricted cash | 0 | 168,274 | 165,465 |
Other assets | 232,820 | 229,934 | 169,515 |
Total other assets | 2,373,830 | 2,512,834 | 2,469,973 |
Total assets | 13,089,468 | 17,989,281 | 17,929,809 |
Current liabilities | |||
Notes payable | 83,037 | 70,751 | 76,876 |
Accounts payable | 2,710,469 | 2,881,953 | 2,797,947 |
Accrued expenses | 1,071,632 | 1,467,610 | 1,100,239 |
Current maturities of long-term debt | 7,076 | 4,979,301 | 310,891 |
Total current liabilities | 3,872,214 | 9,399,615 | 4,285,953 |
Long-term liabilities | |||
Long-term debt | 4,265,857 | 2,271,825 | 7,208,252 |
Deferred income taxes | 111,822 | 81,591 | 117,353 |
Other long-term liabilities | 852,655 | 934,722 | 940,349 |
Total other liabilities | $ 5,230,334 | $ 3,288,138 | $ 8,265,954 |
Commitments and contingencies | |||
Noncontrolling interest | $ 45,493 | $ 41,304 | $ 34,942 |
Shareholders' equity | |||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | 0 | 0 | 0 |
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765,175 | 765,175 | 765,175 |
Paid-in capital | 1,022,816 | 1,213,999 | 1,181,918 |
Retained earnings | 8,922,498 | 8,751,985 | 8,858,831 |
Accumulated other comprehensive loss | (1,045,177) | (923,197) | (828,656) |
Treasury stock at cost, 198,552,842, 170,857,231 and 174,109,675 shares | (5,723,885) | (4,547,738) | (4,634,308) |
Total shareholders' equity | 3,941,427 | 5,260,224 | 5,342,960 |
Total liabilities and shareholders' equity | $ 13,089,468 | $ 17,989,281 | $ 17,929,809 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 26, 2015 | Jun. 27, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 57,631 | $ 41,720 | $ 68,427 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,500,000 | 1,500,000 | 1,500,000 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 765,174,900 | 765,174,900 | 765,174,900 |
Treasury stock (in shares) | 198,552,842 | 170,857,231 | 174,109,675 |
Consolidated Results of Operati
Consolidated Results of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 12,153,626 | $ 12,087,074 | $ 24,716,237 | $ 24,532,155 |
Cost of sales | 9,996,812 | 10,001,937 | 20,321,428 | 20,258,301 |
Gross profit | 2,156,814 | 2,085,137 | 4,394,809 | 4,273,854 |
Operating expenses | 1,724,231 | 1,769,691 | 3,468,752 | 3,492,795 |
Operating income | 432,583 | 315,446 | 926,057 | 781,059 |
Interest expense | 47,235 | 77,042 | 174,142 | 107,976 |
Other expense (income), net | (7,764) | 2,207 | (23,004) | 19 |
Earnings before income taxes | 393,112 | 236,197 | 774,919 | 673,064 |
Income taxes | 120,713 | 78,218 | 258,100 | 236,272 |
Net earnings | $ 272,399 | $ 157,979 | $ 516,819 | $ 436,792 |
Net earnings: | ||||
Basic earnings per share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.89 | $ 0.74 |
Diluted earnings per share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.88 | $ 0.73 |
Average shares outstanding (in shares) | 566,881,538 | 590,723,351 | 581,790,230 | 589,499,802 |
Diluted shares outstanding (in shares) | 571,452,124 | 595,911,680 | 586,121,013 | 594,610,315 |
Dividends declared per common share (in dollars per share) | $ 0.31 | $ 0.3 | $ 0.61 | $ 0.59 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 272,399 | $ 157,979 | $ 516,819 | $ 436,792 |
Other comprehensive (loss): | ||||
Foreign currency translation adjustment | (44,453) | (91,853) | (131,682) | (163,107) |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 1,825 | 1,639 | 3,501 | 1,765 |
Change in fair value of cash flow hedges | 0 | 0 | (3,779) | (34,111) |
Amortization of prior service cost | 1,715 | 1,737 | 3,430 | 3,474 |
Amortization of actuarial loss, net | 3,275 | 2,993 | 6,550 | 5,986 |
Total other comprehensive (loss) | (37,638) | (85,484) | (121,980) | (185,993) |
Comprehensive income | $ 234,761 | $ 72,495 | $ 394,839 | $ 250,799 |
Consolidated Cash Flows
Consolidated Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 516,819 | $ 436,792 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Share-based compensation expense | 44,045 | 44,460 |
Depreciation and amortization | 281,400 | 274,655 |
Amortization of debt issuance and other debt-related costs | 13,637 | 20,144 |
Loss on extinguishment of debt | 86,460 | 0 |
Deferred income taxes | 153,423 | 6,804 |
Provision for losses on receivables | 10,093 | 9,414 |
Other non-cash items | (15,468) | (2,359) |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
(Increase) in receivables | (50,853) | (181,877) |
(Increase) in inventories | (69,370) | (214,111) |
Decrease in prepaid expenses and other current assets | 9,812 | 6,537 |
(Decrease) in accounts payable | (140,499) | (7,450) |
(Decrease) increase in accrued expenses | (388,667) | 78,438 |
Increase in accrued income taxes | 92,638 | 40,220 |
(Increase) decrease in other assets | (9,556) | 16,072 |
(Decrease) in other long-term liabilities | (52,942) | (67,438) |
Excess tax benefits from share-based compensation arrangements | (12,091) | (7,863) |
Net cash provided by operating activities | 468,881 | 452,438 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (248,233) | (298,068) |
Proceeds from sales of plant and equipment | 10,827 | 2,130 |
Acquisition of businesses, net of cash acquired | (98,154) | (29,177) |
Decrease (increase) in restricted cash | 168,274 | (20,053) |
Net cash used for investing activities | (167,286) | (345,168) |
Cash flows from financing activities: | ||
Bank and commercial paper borrowings (repayments), net | 0 | (129,999) |
Other debt borrowings | 2,012,353 | 5,008,502 |
Other debt repayments | (19,155) | (21,618) |
Redemption of senior notes | (5,050,000) | 0 |
Debt issuance costs | (20,881) | (30,980) |
Cash paid for settlement of cash flow hedge | (6,134) | (188,840) |
Cash received from termination of interest rate swap agreements | 14,496 | 0 |
Proceeds from stock option exercises | 131,969 | 122,492 |
Accelerated share and treasury stock purchases | (1,521,638) | 0 |
Dividends paid | (348,436) | (340,654) |
Excess tax benefits from share-based compensation arrangements | 12,091 | 7,863 |
Net cash (used for) provided by financing activities | (4,795,335) | 4,426,766 |
Effect of exchange rates on cash and cash equivalents | (40,702) | (39,405) |
Net (decrease) increase in cash and cash equivalents | (4,534,442) | 4,494,631 |
Cash and cash equivalents at beginning of period | 5,130,044 | 413,046 |
Cash and cash equivalents at end of period | 595,602 | 4,907,677 |
Supplemental disclosures of cash flow information: | ||
Interest | 106,600 | 73,756 |
Income taxes | $ 33,156 | $ 189,538 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The consolidated financial statements have been prepared by the company, without audit, with the exception of the June 27, 2015 consolidated balance sheet, which was derived from the audited consolidated financial statements included in the company's fiscal 2015 Annual Report on Form 10-K. The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income and consolidated cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position, results of operations, comprehensive income and cash flows for all periods presented have been made. The company adopted Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs in fiscal 2015. This guidance requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than an asset. This guidance requires retrospective application; therefore, prior year amounts within the consolidated balance sheets have been reclassified to conform to the current year presentation. Deferred taxes within the consolidated balance sheet for December 26, 2015, have been classified as long-term due to the adoption of an accounting pronouncement related to simplification in the presentation of deferred taxes. See Note 2 , "Changes in Accounting" for additional information on these changes. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the company's fiscal 2015 Annual Report on Form 10-K. Certain footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements. The interim financial information herein has been reviewed by Ernst & Young LLP, independent registered public accounting firm, in accordance with established professional standards and procedures for such a review. A Review Report of Independent Registered Public Accounting Firm has been issued by Ernst & Young LLP and is included as Exhibit 15.1 to this Form 10-Q. |
Changes in Accounting
Changes in Accounting | 6 Months Ended |
Dec. 26, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting | CHANGES IN ACCOUNTING Simplification of Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, as part of its simplification initiative, which is the FASB's effort to reduce the cost and complexity of certain aspects of U.S. GAAP. This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. The guidance does not change the existing requirement that only permits offsetting of deferred tax assets and deferred tax liabilities within a jurisdiction. The company early adopted this standard in the second quarter of fiscal 2016 on a prospective basis, as permitted by the ASU. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Dec. 26, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for interim and annual periods beginning after December 15, 2017, which is fiscal 2019 for Sysco, and could be early adopted in fiscal 2018. The standard may be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The company has not selected a transition method and is currently evaluating the impact of the pending adoption of this ASU on its ongoing financial reporting. |
Acquisitions
Acquisitions | 6 Months Ended |
Dec. 26, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the first 26 weeks of fiscal 2016 , the company paid cash of $98.2 million for acquisitions. The acquisitions did not have a material effect on the company's operating results, cash flows or financial position. Certain current year and prior year acquisitions involve contingent consideration that may include earnout agreements that are typically payable over periods of up to three years in the event that certain operating results are attained. As of December 26, 2015 , aggregate contingent consideration outstanding was $28.4 million , of which $20.7 million was recorded as earnout liabilities as of December 26, 2015 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 26, 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. 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 6 , "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 other long-term liabilities 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 December 26, 2015 , June 27, 2015 and December 27, 2014 : Assets and Liabilities Measured at Fair Value as of Dec. 26, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 234,161 $ 61,473 $ — $ 295,634 Other assets Interest rate swap agreement — 3,936 — 3,936 Total assets at fair value $ 234,161 $ 65,409 $ — $ 299,570 Liabilities: Long-term debt $ — $ 1,241,786 $ — $ 1,241,786 Other long-term liabilities: Interest rate swap agreement — 6,575 — 6,575 Total liabilities at fair value $ — $ 1,248,361 $ — $ 1,248,361 Assets and Liabilities Measured at Fair Value as of Jun. 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 agreement — 12,597 — 12,597 Total assets at fair value $ 4,846,009 $ 76,286 $ — $ 4,922,295 Liabilities: Accrued expenses 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 Dec. 27, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 4,655,434 $ 21,841 $ — $ 4,677,275 Restricted cash 165,465 — — 165,465 Other assets Interest rate swap agreement — 4,802 — 4,802 Total assets at fair value $ 4,820,899 $ 26,643 $ — $ 4,847,542 Liabilities: Long-term debt $ — $ 1,752,118 $ — $ 1,752,118 Other long-term liabilities Interest rate swap agreement — 152 — 152 Total liabilities at fair value $ — $ 1,752,270 $ — $ 1,752,270 The carrying values of accounts receivable and accounts payable approximated their respective fair values due to their short-term maturities. 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 table above reflects the fair value for any long-term debt that has been hedged and is recorded at fair value. Non-hedged debt is recorded at book value. The fair value of total non-hedged debt approximated $3.3 billion , $5.6 billion and $7.6 billion as of December 26, 2015 , June 27, 2015 and December 27, 2014 , respectively. The carrying value of total non-hedged debt was $3.1 billion , $5.4 billion and $7.1 billion as of December 26, 2015 , June 27, 2015 and December 27, 2014 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Dec. 26, 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 October 2015, Sysco issued senior notes totaling $2.0 billion to fund $1.5 billion in repurchases of outstanding shares of its common stock pursuant to its $1.5 billion accelerated share repurchase program, to repay approximately $500 million of its outstanding commercial paper and for general corporate purposes. Concurrent with the offering of these senior notes, the company entered into interest rate swap agreements that effectively converted $750 million of senior notes maturing in fiscal 2020 to floating rate debt. These transactions were designated as fair value hedges against the changes in fair value of fixed rate debt resulting from changes in interest rates. In August 2015, the company entered into forward starting swap agreements with a notional amount 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 expected to issue in fiscal 2016. Concurrent with the debt offering in October 2015, Sysco terminated these hedges and paid $6.1 million . The loss was recorded in Accumulated other comprehensive income (loss) and will be amortized to interest expense over the term of the issued debt. In October 2014, Sysco obtained long-term financing for its proposed merger with US Foods, Inc. (US Foods) 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. These transactions were designated as fair value hedges against the changes in fair value of fixed rate debt resulting from changes in interest rates. In the first quarter of 2016, we terminated the 2015 swaps for proceeds of $14.5 million in connection with the redemption of these senior notes. In January 2014, the company entered into two forward starting swap agreements with notional amounts totaling $2 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 2013, 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. The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 26, 2015 , June 27, 2015 and December 27, 2014 are as follows: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swap agreements: Dec. 26, 2015 Other assets $ 3,936 Other liabilities $ 6,575 Jun. 27, 2015 Other assets 12,597 Dec. 27, 2014 Other assets 4,802 Other long-term liabilities 152 The location and effect of derivative instruments and related hedged items on the consolidated results of operations for the 13-week periods ended December 26, 2015 and December 27, 2014 presented on a pretax basis are as follows: Location of (Gain) or Loss Recognized Amount of (Gain) or Loss Recognized 13-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 (In thousands) Fair Value Hedge Relationships: Interest rate swap agreements Interest expense $ — $ (6,401 ) Cash Flow Hedge Relationships: Interest rate swap agreements Other comprehensive income — — Interest rate contracts Interest expense 2,962 (2,660 ) The location and effect of derivative instruments and related hedged items on the consolidated results of operations for the 26-week periods ended December 26, 2015 and December 27, 2014 presented on a pretax basis are as follows: Location of (Gain) or Loss Recognized Amount of (Gain) or Loss Recognized 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 (In thousands) Fair Value Hedge Relationships: Interest rate swap agreements Interest expense $ — $ (9,670 ) Cash Flow Hedge Relationships: Interest rate swap agreements Other comprehensive income 5,682 55,374 Interest rate contracts Interest expense 6,134 (2,865 ) 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 not applicable for the second quarter of fiscal 2016 and was immaterial for the second quarter of fiscal 2015 and the 26-week periods ended December 26, 2015 and December 27, 2014 . The interest rate swaps do not contain credit-risk-related contingent features. |
Debt
Debt | 6 Months Ended |
Dec. 26, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT 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 . As of December 26, 2015 , there were no commercial paper issuances outstanding. Any outstanding amounts are classified within long-term debt, as the program is supported by a long-term revolving credit facility. During the first 26 weeks of 2016 , aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from zero to approximately $1.0 billion . In June 2015, Sysco terminated the US Foods merger agreement triggering the redemption of the senior notes that had been issued in contemplation of the proposed merger at a redemption price equal to 101% of the principal of the senior notes. Sysco redeemed the senior notes in July 2015 using cash on hand and proceeds from our commercial paper program in the amount of $5.05 billion . The repayment of these senior notes triggered a redemption loss of $86.5 million included in interest expense for the first quarter of fiscal 2016 . Additionally, as discussed in Note 6, "Derivative Financial Instruments," the company terminated fair value hedges associated with these senior notes. Interest expense for the first 26 weeks of fiscal 2016 includes the following amounts from these transactions: 26-Week Period Ended Dec. 26, 2015 (In thousands) Redemption Premium Payment $ 50,000 Debt issuance cost write-off 28,642 Bond discount write-off 17,869 Gain on swap termination (10,051 ) Loss on extinguishment of debt 86,460 Interest expense on senior notes 8,375 Total $ 94,835 Senior Notes Offering On September 28, 2015, Sysco issued senior notes totaling $2.0 billion . Details of the senior notes are as follows: Maturity Date Par Value (in millions) Coupon Rate Pricing (percentage of par) October 1, 2020 $ 750 2.60 % 99.809 % October 1, 2025 750 3.75 % 100.00 % October 1, 2045 500 4.85 % 99.921 % Sysco used the net proceeds from the offering to fund repurchases of outstanding shares of its common stock pursuant to Sysco’s $1.5 billion accelerated share repurchase program, to repay approximately $500 million of its outstanding commercial paper and for general corporate purposes. The notes are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes. Interest on the senior notes will be paid semi-annually in arrears on April 1 and October 1, beginning April 1, 2016. At Sysco’s option, any or all of the senior notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (i) the senior notes maturing in 2020 before the date that is one month prior to the maturity date, (ii) the senior notes maturing in 2025 before the date that is three months prior to the maturity date or (iii) the senior notes maturing in 2045 before the date that is six months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the senior notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the senior notes to be redeemed that would be due if such senior notes matured on the applicable date described above. If Sysco elects to redeem a series of senior notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the senior notes to be redeemed. Sysco will pay accrued and unpaid interest on the notes redeemed to the redemption date. |
Company-Sponsored Employee Bene
Company-Sponsored Employee Benefit Plans | 6 Months Ended |
Dec. 26, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Company-Sponsored Employee Benefit Plans | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS In the tables below, the caption “Pension Benefits” includes both the company-sponsored qualified pension plan and the Supplemental Executive Retirement Plan. The components of net company-sponsored benefit cost for the second quarter and first 26 weeks of fiscal 2016 and fiscal 2015 are as follows: Pension Benefits Other Postretirement Plans Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 (In thousands) Service cost $ 2,902 $ 2,815 $ 134 $ 134 Interest cost 42,833 42,779 153 148 Expected return on plan assets (53,202 ) (57,156 ) — — Amortization of prior service cost 2,743 2,777 41 42 Amortization of actuarial loss (gain) 5,435 4,968 (118 ) (109 ) Net periodic costs (benefits) $ 711 $ (3,817 ) $ 210 $ 215 Pension Benefits Other Postretirement Plans Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 (In thousands) Service cost $ 5,803 $ 5,630 $ 268 $ 268 Interest cost 85,665 85,558 305 296 Expected return on plan assets (106,404 ) (114,312 ) — — Amortization of actuarial loss (gain) 5,486 5,554 83 84 Amortization of actuarial loss (gain) 10,870 9,936 (236 ) (218 ) Net periodic costs (benefits) $ 1,420 $ (7,634 ) $ 420 $ 430 Sysco’s contributions to its company-sponsored defined benefit plans were $43.7 million and $62.3 million during the first 26 weeks of fiscal 2016 and 2015 , respectively. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 26, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY Accelerated Share Repurchase Program On September 23, 2015, the company entered into a Master Confirmation and Supplemental Confirmation (collectively, the ASR Agreement) with Goldman, Sachs & Co. (Goldman) relating to an accelerated share repurchase program (the ASR Program). Pursuant to the terms of the ASR Agreement, Sysco agreed to repurchase $1.5 billion of its common stock from Goldman. In connection with the ASR Program, the company paid $1.5 billion to Goldman on September 28, 2015, in exchange for 32,319,392 shares of the company’s outstanding common stock, which represents a substantial majority of the shares owed to Sysco by Goldman; however, the number of shares ultimately delivered to the company by Goldman is subject to adjustment based on the volume-weighted average share price of the company’s common stock during the term of the ASR Agreement, less an agreed discount. All purchases under the ASR Program will be completed by May 2016, although the exact date of completion will depend on whether or when Goldman exercises an acceleration option that it has under the ASR Agreement. At settlement, the company may be entitled to receive additional shares of common stock from Goldman or, under certain circumstances, may be required to issue additional shares or make a payment to Goldman at the company’s option. The initial receipt of 32,319,392 shares is included in Treasury Stock and reduced the company's weighted average common shares outstanding for the second quarter and first 26 weeks of fiscal 2016. The adjustment feature, which is based on the volume-weighted average share price, is considered a forward contract indexed to Sysco's own common stock and meets all of the applicable criteria for equity classification and, therefore, is not accounted for as a derivative instrument. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 26, 2015 | |
Earnings Per Share, Basic [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: 13-Week Period Ended 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 (In thousands, except for share and per share data) (In thousands, except for share Numerator: Net earnings $ 272,399 $ 157,979 $ 516,819 $ 436,792 Denominator: Weighted-average basic shares outstanding 566,881,538 590,723,351 581,790,230 589,499,802 Dilutive effect of share-based awards 4,570,586 5,188,329 4,330,783 5,110,513 Weighted-average diluted shares outstanding 571,452,124 595,911,680 586,121,013 594,610,315 Basic earnings per share $ 0.48 $ 0.27 $ 0.89 $ 0.74 Diluted earnings per share $ 0.48 $ 0.27 $ 0.88 $ 0.73 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 4,000,000 and 2,000,000 for the second quarter of fiscal 2016 and fiscal 2015 , respectively. 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 965,000 and 1,300,000 for the first 26 weeks of 2016 and 2015 , respectively. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Dec. 26, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, amounts related to cash flow hedging arrangements and certain amounts related to pension and other postretirement plans. Comprehensive income was $234.8 million and $72.5 million for the second quarter of fiscal 2016 and fiscal 2015 , respectively. Comprehensive income was $394.8 million and $250.8 million for the first 26 weeks of fiscal 2016 and 2015 , respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Dec. 26, 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 $ 2,784 $ 1,069 $ 1,715 Amortization of actuarial loss (gain), net Operating expenses 5,317 2,042 3,275 Total reclassification adjustments 8,101 3,111 4,990 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (44,453 ) — (44,453 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,962 1,137 1,825 Total other comprehensive (loss) income $ (33,390 ) $ 4,248 $ (37,638 ) 13-Week Period Ended Dec. 27, 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 $ 2,819 $ 1,082 $ 1,737 Amortization of actuarial loss (gain), net Operating expenses 4,859 1,866 2,993 Total reclassification adjustments 7,678 2,948 4,730 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (91,853 ) — (91,853 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,660 1,021 1,639 Total other comprehensive (loss) income $ (81,515 ) $ 3,969 $ (85,484 ) 26-Week Period Ended Dec. 26, 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 $ 5,568 $ 2,138 $ 3,430 Amortization of actuarial loss (gain), net Operating expenses 10,634 4,084 6,550 Total reclassification adjustments 16,202 6,222 9,980 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (131,682 ) — (131,682 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 5,682 2,181 3,501 Change in fair value of cash flow hedge N/A (6,134 ) (2,355 ) (3,779 ) Total other comprehensive (loss) income $ (115,932 ) $ 6,048 $ (121,980 ) 26-Week Period Ended Dec. 27, 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 $ 5,638 $ 2,164 $ 3,474 Amortization of actuarial loss (gain), net Operating expenses 9,718 3,732 $ 5,986 Total reclassification adjustments 15,356 5,896 9,460 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (163,107 ) — (163,107 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,865 1,100 1,765 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 (loss) income $ (200,260 ) $ (14,267 ) $ (185,993 ) The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented: 26-Week Period Ended Dec. 26, 2015 Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Translation Interest Rate Swaps, net of tax Total (In thousands) Balance as of Jun. 27, 2015 $ (705,311 ) $ (97,733 ) $ (120,153 ) $ (923,197 ) Other comprehensive income before reclassification adjustments — (131,682 ) — (131,682 ) Amortization of cash flow hedges — — 3,501 3,501 Change in fair value of cash flow hedges — — (3,779 ) (3,779 ) Amortization of unrecognized prior service cost 3,430 — — 3,430 Amortization of unrecognized net actuarial losses 6,550 — — 6,550 Balance as of Dec. 26, 2015 $ (695,331 ) $ (229,415 ) $ (120,431 ) $ (1,045,177 ) 26-Week Period Ended Dec. 27, 2014 Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Translation Interest Rate Swaps, net of tax Total (In thousands) Balance as of Jun. 28, 2014 $ (685,957 ) $ 134,452 $ (91,158 ) $ (642,663 ) Other comprehensive income before reclassification adjustments — (163,107 ) — (163,107 ) Amortization of cash flow hedges — — 1,765 1,765 Change in fair value of cash flow hedges — — (34,111 ) (34,111 ) Amortization of unrecognized prior service cost 3,474 — — 3,474 Amortization of unrecognized net actuarial losses 5,986 — — 5,986 Balance as of Dec. 27, 2014 $ (676,497 ) $ (28,655 ) $ (123,504 ) $ (828,656 ) |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Dec. 26, 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 incentive plans, the Employee Stock Purchase Plan, and various non‑employee director plans. Stock Incentive Plans In the first 26 weeks of fiscal 2016, options to purchase 4,326,915 shares were granted to employees. 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 grant-date fair value per option granted during the first 26 weeks of fiscal 2016 was $40.59 . In the first 26 weeks of fiscal 2016 , 435,970 restricted stock units were granted to employees. Based on the jurisdiction in which the employee resides, some of these restricted stock units were granted with forfeitable 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 restricted stock unit granted during the first 26 weeks of fiscal 2016 was $40.41 . Employee Stock Purchase Plan Plan participants purchased 704,129 shares of Sysco common stock under the Sysco Employee Stock Purchase Plan during the first 26 weeks of fiscal 2016 . The weighted average fair value per share of employee stock purchase rights issued pursuant to the Employee Stock Purchase Plan was $5.63 during the first 26 weeks of fiscal 2016 . The fair value of the stock purchase rights is estimated as the difference between the stock price 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 $44.0 million and $44.5 million for the first 26 weeks of fiscal 2016 and fiscal 2015 , respectively. As of December 26, 2015 , there was $70.4 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.6 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Uncertain Tax Positions As of December 26, 2015 , the gross amount of unrecognized tax benefits was $32.1 million , and the gross amount of liability for accrued interest related to unrecognized tax benefits was $19.4 million . 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 prevails on positions that were being challenged upon 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 numerous states and the allocation of income and expense between tax jurisdictions. At this time, an estimate of the range of the reasonably possible change cannot be made. Effective Tax Rate Sysco’s effective tax rate is reflective of the jurisdictions where the company has operations. In the second quarter of fiscal 2016, the company favorably resolved a tax contingency resulting in a tax benefit of $20.8 million . In the second quarter of fiscal 2015, the tax rate was impacted by reduced state taxes from legal restructuring and a benefit related to disqualifying dispositions of Sysco's stock pursuant to share-based compensation arrangements. Indefinitely reinvested earnings taxed at foreign statutory rates less than our domestic tax rate have the impact of reducing the effective tax rate in both periods. The effective tax rates for the second quarter of fiscal 2016 and fiscal 2015 were 30.71% and 33.12% , respectively. The effective tax rate for the first 26 weeks of fiscal 2016 of 33.31% was favorably impacted by the resolution of a tax contingency in the second quarter of fiscal 2016. The effective tax rate for the first 26 weeks of fiscal 2015 of 35.10% was favorably impacted by lower state taxes. Indefinitely reinvested earnings taxed at foreign statutory rates less than our domestic tax rate have the impact of reducing the effective tax rate in both periods. Other 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 reflects a combination of income earned and taxed in the various U.S. federal and state, as well as foreign, jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings Sysco is engaged in various legal proceedings that 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. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The company has aggregated certain of its operating companies into two reporting segments, Broadline and SYGMA in accordance with the accounting literature related to disclosures about segments of an enterprise. The Broadline reportable segment is an aggregation of the company’s broadline segments located in the Bahamas, Canada, Costa Rica, Ireland and the United States. 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 Broadline leadership. As a result, these operations are no longer included in our Broadline segment and are 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 generally include all expenses of the corporate office and Sysco’s shared service center. These also include all share-based compensation costs. The following tables set forth certain financial information for Sysco’s business segments: 13-Week Period Ended 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 Sales: (In thousands) (In thousands) Broadline $ 9,605,710 $ 9,548,847 $ 19,633,806 $ 19,520,222 SYGMA 1,506,836 1,559,863 2,952,741 3,101,475 Other 1,447,740 1,305,179 2,814,566 2,557,265 Intersegment sales (406,661 ) (326,815 ) (684,875 ) (646,807 ) Total $ 12,153,626 $ 12,087,074 $ 24,716,237 $ 24,532,155 13-Week Period Ended 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 Operating income: (In thousands) (In thousands) Broadline $ 633,167 $ 582,598 $ 1,360,162 $ 1,268,973 SYGMA 5,952 7,803 11,177 12,953 Other 36,865 33,695 63,372 71,422 Total segments 675,984 624,096 1,434,711 1,353,348 Corporate expenses (243,401 ) (308,650 ) (508,654 ) (572,289 ) Total operating income 432,583 315,446 926,057 781,059 Interest expense 47,235 77,042 174,142 107,976 Other expense (income), net (7,764 ) 2,207 (23,004 ) 19 Earnings before income taxes $ 393,112 $ 236,197 $ 774,919 $ 673,064 Dec. 26, 2015 Jun. 27, 2015 Dec. 27, 2014 Assets: (In thousands) Broadline $ 7,739,428 $ 7,730,239 $ 7,906,762 SYGMA 556,480 512,044 520,862 Other 1,523,493 1,415,038 1,401,847 Total segments 9,819,401 9,657,321 9,829,471 Corporate 3,270,067 8,331,960 8,100,338 Total $ 13,089,468 $ 17,989,281 $ 17,929,809 |
Supplemental Guarantor Informat
Supplemental Guarantor Information - Subsidiary Guarantees | 6 Months Ended |
Dec. 26, 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 December 26, 2015 , Sysco had a total of $4.4 billion in senior notes, debentures and commercial paper outstanding that was covered by these guarantees. 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 or (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 Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 279,596 $ 3,944,472 $ 2,554,958 $ — $ 6,779,026 Investment in subsidiaries 9,787,777 241,561 (355,335 ) (9,674,003 ) — Plant and equipment, net 501,514 1,632,601 1,802,497 — 3,936,612 Other assets 258,216 273,324 1,842,290 — 2,373,830 Total assets $ 10,827,103 $ 6,091,958 $ 5,844,410 $ (9,674,003 ) $ 13,089,468 Current liabilities $ 602,058 $ 731,474 $ 2,538,682 $ — $ 3,872,214 Intercompany payables (receivables) 1,576,888 (2,274,556 ) 697,668 — — Long-term debt 4,079,396 9,350 177,111 — 4,265,857 Other liabilities 672,888 278,590 12,999 — 964,477 Noncontrolling interest — — 45,493 — 45,493 Shareholders’ equity 3,895,873 7,347,100 2,372,457 (9,674,003 ) 3,941,427 Total liabilities and shareholders’ equity $ 10,827,103 $ 6,091,958 $ 5,844,410 $ (9,674,003 ) $ 13,089,468 Condensed Consolidating Balance Sheet Jun. 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 Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 4,779,586 $ 4,057,608 $ 2,619,710 $ — $ 11,456,904 Investment in subsidiaries 8,613,500 — — (8,613,500 ) — Plant and equipment, net 491,972 1,736,843 1,774,117 — 4,002,932 Other assets 324,771 520,178 1,625,024 — 2,469,973 Total assets $ 14,209,829 $ 6,314,629 $ 6,018,851 $ (8,613,500 ) $ 17,929,809 Current liabilities $ 848,885 $ 910,487 $ 2,526,581 $ — $ 4,285,953 Intercompany payables (receivables) 258,923 (759,128 ) 500,205 — — Long-term debt 7,127,186 17,550 63,516 — 7,208,252 Other liabilities 631,875 321,406 104,421 — 1,057,702 Noncontrolling interest — — 34,942 — 34,942 Shareholders’ equity 5,342,960 5,824,314 2,789,186 (8,613,500 ) 5,342,960 Total liabilities and shareholders’ equity $ 14,209,829 $ 6,314,629 $ 6,018,851 $ (8,613,500 ) $ 17,929,809 Condensed Consolidating Statement of Comprehensive Income For the 13-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 8,199,071 $ 4,392,744 $ (438,189 ) $ 12,153,626 Cost of sales — 6,670,025 3,764,976 (438,189 ) 9,996,812 Gross profit — 1,529,046 627,768 — 2,156,814 Operating expenses 206,476 939,213 578,542 — 1,724,231 Operating income (loss) (206,476 ) 589,833 49,226 — 432,583 Interest expense (income) 70,318 (40,019 ) 16,936 — 47,235 Other expense (income), net (4,836 ) (352 ) (2,576 ) — (7,764 ) Earnings (losses) before income taxes (271,958 ) 630,204 34,866 — 393,112 Income tax (benefit) provision (81,472 ) 191,274 10,911 — 120,713 Equity in earnings of subsidiaries 462,885 — — (462,885 ) — Net earnings 272,399 438,930 23,955 (462,885 ) 272,399 Other comprehensive income (loss) (37,638 ) — (44,664 ) 44,664 (37,638 ) Comprehensive income $ 234,761 $ 438,930 $ (20,709 ) $ (418,221 ) $ 234,761 Condensed Consolidating Statement of Comprehensive Income For the 13-Week Period Ended Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 8,027,990 $ 4,407,159 $ (348,075 ) $ 12,087,074 Cost of sales — 6,574,759 3,775,253 (348,075 ) 10,001,937 Gross profit — 1,453,231 631,906 — 2,085,137 Operating expenses 256,612 913,137 599,942 — 1,769,691 Operating income (loss) (256,612 ) 540,094 31,964 — 315,446 Interest expense (income) 94,229 (24,501 ) 7,314 — 77,042 Other expense (income), net 1,922 (365 ) 650 — 2,207 Earnings (losses) before income taxes (352,763 ) 564,960 24,000 — 236,197 Income tax (benefit) provision (121,267 ) 191,470 8,015 — 78,218 Equity in earnings of subsidiaries 389,475 — — (389,475 ) — Net earnings 157,979 373,490 15,985 (389,475 ) 157,979 Other comprehensive income (loss) (85,484 ) — (91,853 ) 91,853 (85,484 ) Comprehensive income $ 72,495 $ 373,490 $ (75,868 ) $ (297,622 ) $ 72,495 Condensed Consolidating Statement of Comprehensive Income For the 26-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 16,723,622 $ 8,819,741 $ (827,126 ) $ 24,716,237 Cost of sales — 13,582,194 7,566,360 (827,126 ) 20,321,428 Gross profit — 3,141,428 1,253,381 — 4,394,809 Operating expenses 405,851 1,896,128 1,166,773 — 3,468,752 Operating income (loss) (405,851 ) 1,245,300 86,608 — 926,057 Interest expense (income) 216,415 (80,002 ) 37,729 — 174,142 Other expense (income), net (9,913 ) (829 ) (12,262 ) — (23,004 ) Earnings (losses) before income taxes (612,353 ) 1,326,131 61,141 — 774,919 Income tax (benefit) provision (203,956 ) 441,691 20,365 — 258,100 Equity in earnings of subsidiaries 925,216 — — (925,216 ) — Net earnings 516,819 884,440 40,776 (925,216 ) 516,819 Other comprehensive income (loss) (121,980 ) — (227,849 ) 227,849 (121,980 ) Comprehensive income $ 394,839 $ 884,440 $ (187,073 ) $ (697,367 ) $ 394,839 Condensed Consolidating Statement of Comprehensive Income For the 26-Week Period Ended Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 16,350,298 $ 8,871,628 $ (689,771 ) $ 24,532,155 Cost of sales — 13,349,267 7,598,805 (689,771 ) 20,258,301 Gross profit — 3,001,031 1,272,823 — 4,273,854 Operating expenses 447,509 1,845,332 1,199,954 — 3,492,795 Operating income (loss) (447,509 ) 1,155,699 72,869 — 781,059 Interest expense (income) 144,395 (45,975 ) 9,556 — 107,976 Other expense (income), net (480 ) (764 ) 1,263 — 19 Earnings (losses) before income taxes (591,424 ) 1,202,438 62,050 — 673,064 Income tax (benefit) provision (207,611 ) 422,101 21,782 — 236,272 Equity in earnings of subsidiaries 820,605 — — (820,605 ) — Net earnings 436,792 780,337 40,268 (820,605 ) 436,792 Other comprehensive income (loss) (185,993 ) — (163,107 ) 163,107 (185,993 ) Comprehensive income $ 250,799 $ 780,337 $ (122,839 ) $ (657,498 ) $ 250,799 Condensed Consolidating Cash Flows For the 26-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (576,817 ) $ 427,995 $ 617,703 $ 468,881 Investing activities 123,371 (43,744 ) (246,913 ) (167,286 ) Financing activities (4,871,105 ) (1,003 ) 76,773 (4,795,335 ) Effect of exchange rates on cash — — (40,702 ) (40,702 ) Intercompany activity 679,954 (343,252 ) (336,702 ) — Net increase (decrease) in cash and cash equivalents (4,644,597 ) 39,996 70,159 (4,534,442 ) Cash and cash equivalents at the beginning of period 4,851,067 26,380 252,597 5,130,044 Cash and cash equivalents at the end of period $ 206,470 $ 66,376 $ 322,756 $ 595,602 Condensed Consolidating Cash Flows For the 26-Week Period Ended Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (111,482 ) $ 654,460 $ (90,540 ) $ 452,438 Investing activities (59,843 ) (62,747 ) (222,578 ) (345,168 ) Financing activities 4,391,966 2,161 32,639 4,426,766 Effect of exchange rates on cash — — (39,405 ) (39,405 ) Intercompany activity 324,639 (600,204 ) 275,565 — Net increase (decrease) in cash and cash equivalents 4,545,280 (6,330 ) (44,319 ) 4,494,631 Cash and cash equivalents at the beginning of period 158,957 27,772 226,317 413,046 Cash and cash equivalents at the end of period $ 4,704,237 $ 21,442 $ 181,998 $ 4,907,677 |
Changes in Accounting (Policies
Changes in Accounting (Policies) | 6 Months Ended |
Dec. 26, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting changes | Simplification of Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, as part of its simplification initiative, which is the FASB's effort to reduce the cost and complexity of certain aspects of U.S. GAAP. This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. The guidance does not change the existing requirement that only permits offsetting of deferred tax assets and deferred tax liabilities within a jurisdiction. The company early adopted this standard in the second quarter of fiscal 2016 on a prospective basis, as permitted by the ASU. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for interim and annual periods beginning after December 15, 2017, which is fiscal 2019 for Sysco, and could be early adopted in fiscal 2018. The standard may be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The company has not selected a transition method and is currently evaluating the impact of the pending adoption of this ASU on its ongoing financial reporting. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Dec. 26, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | Simplification of Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, as part of its simplification initiative, which is the FASB's effort to reduce the cost and complexity of certain aspects of U.S. GAAP. This guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. The guidance does not change the existing requirement that only permits offsetting of deferred tax assets and deferred tax liabilities within a jurisdiction. The company early adopted this standard in the second quarter of fiscal 2016 on a prospective basis, as permitted by the ASU. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . This new standard will replace all current GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for interim and annual periods beginning after December 15, 2017, which is fiscal 2019 for Sysco, and could be early adopted in fiscal 2018. The standard may be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The company has not selected a transition method and is currently evaluating the impact of the pending adoption of this ASU on its ongoing financial reporting. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 26, 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 December 26, 2015 , June 27, 2015 and December 27, 2014 : Assets and Liabilities Measured at Fair Value as of Dec. 26, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 234,161 $ 61,473 $ — $ 295,634 Other assets Interest rate swap agreement — 3,936 — 3,936 Total assets at fair value $ 234,161 $ 65,409 $ — $ 299,570 Liabilities: Long-term debt $ — $ 1,241,786 $ — $ 1,241,786 Other long-term liabilities: Interest rate swap agreement — 6,575 — 6,575 Total liabilities at fair value $ — $ 1,248,361 $ — $ 1,248,361 Assets and Liabilities Measured at Fair Value as of Jun. 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 agreement — 12,597 — 12,597 Total assets at fair value $ 4,846,009 $ 76,286 $ — $ 4,922,295 Liabilities: Accrued expenses 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 Dec. 27, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash and cash equivalents Cash equivalents $ 4,655,434 $ 21,841 $ — $ 4,677,275 Restricted cash 165,465 — — 165,465 Other assets Interest rate swap agreement — 4,802 — 4,802 Total assets at fair value $ 4,820,899 $ 26,643 $ — $ 4,847,542 Liabilities: Long-term debt $ — $ 1,752,118 $ — $ 1,752,118 Other long-term liabilities Interest rate swap agreement — 152 — 152 Total liabilities at fair value $ — $ 1,752,270 $ — $ 1,752,270 |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 26, 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 December 26, 2015 , June 27, 2015 and December 27, 2014 are as follows: Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swap agreements: Dec. 26, 2015 Other assets $ 3,936 Other liabilities $ 6,575 Jun. 27, 2015 Other assets 12,597 Dec. 27, 2014 Other assets 4,802 Other long-term liabilities 152 |
Derivatives financial statement performance table | The location and effect of derivative instruments and related hedged items on the consolidated results of operations for the 13-week periods ended December 26, 2015 and December 27, 2014 presented on a pretax basis are as follows: Location of (Gain) or Loss Recognized Amount of (Gain) or Loss Recognized 13-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 (In thousands) Fair Value Hedge Relationships: Interest rate swap agreements Interest expense $ — $ (6,401 ) Cash Flow Hedge Relationships: Interest rate swap agreements Other comprehensive income — — Interest rate contracts Interest expense 2,962 (2,660 ) The location and effect of derivative instruments and related hedged items on the consolidated results of operations for the 26-week periods ended December 26, 2015 and December 27, 2014 presented on a pretax basis are as follows: Location of (Gain) or Loss Recognized Amount of (Gain) or Loss Recognized 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 (In thousands) Fair Value Hedge Relationships: Interest rate swap agreements Interest expense $ — $ (9,670 ) Cash Flow Hedge Relationships: Interest rate swap agreements Other comprehensive income 5,682 55,374 Interest rate contracts Interest expense 6,134 (2,865 ) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Debt Disclosure [Abstract] | |
Debt Redemption | Interest expense for the first 26 weeks of fiscal 2016 includes the following amounts from these transactions: 26-Week Period Ended Dec. 26, 2015 (In thousands) Redemption Premium Payment $ 50,000 Debt issuance cost write-off 28,642 Bond discount write-off 17,869 Gain on swap termination (10,051 ) Loss on extinguishment of debt 86,460 Interest expense on senior notes 8,375 Total $ 94,835 |
Schedule of Debt | On September 28, 2015, Sysco issued senior notes totaling $2.0 billion . Details of the senior notes are as follows: Maturity Date Par Value (in millions) Coupon Rate Pricing (percentage of par) October 1, 2020 $ 750 2.60 % 99.809 % October 1, 2025 750 3.75 % 100.00 % October 1, 2045 500 4.85 % 99.921 % |
Company-Sponsored Employee Be28
Company-Sponsored Employee Benefit Plans (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined benefit plans components of net benefit cost table | The components of net company-sponsored benefit cost for the second quarter and first 26 weeks of fiscal 2016 and fiscal 2015 are as follows: Pension Benefits Other Postretirement Plans Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 (In thousands) Service cost $ 2,902 $ 2,815 $ 134 $ 134 Interest cost 42,833 42,779 153 148 Expected return on plan assets (53,202 ) (57,156 ) — — Amortization of prior service cost 2,743 2,777 41 42 Amortization of actuarial loss (gain) 5,435 4,968 (118 ) (109 ) Net periodic costs (benefits) $ 711 $ (3,817 ) $ 210 $ 215 Pension Benefits Other Postretirement Plans Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 (In thousands) Service cost $ 5,803 $ 5,630 $ 268 $ 268 Interest cost 85,665 85,558 305 296 Expected return on plan assets (106,404 ) (114,312 ) — — Amortization of actuarial loss (gain) 5,486 5,554 83 84 Amortization of actuarial loss (gain) 10,870 9,936 (236 ) (218 ) Net periodic costs (benefits) $ 1,420 $ (7,634 ) $ 420 $ 430 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Earnings Per Share, Basic [Abstract] | |
Computation of basic and diluted earnings per share table | The following table sets forth the computation of basic and diluted earnings per share: 13-Week Period Ended 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 (In thousands, except for share and per share data) (In thousands, except for share Numerator: Net earnings $ 272,399 $ 157,979 $ 516,819 $ 436,792 Denominator: Weighted-average basic shares outstanding 566,881,538 590,723,351 581,790,230 589,499,802 Dilutive effect of share-based awards 4,570,586 5,188,329 4,330,783 5,110,513 Weighted-average diluted shares outstanding 571,452,124 595,911,680 586,121,013 594,610,315 Basic earnings per share $ 0.48 $ 0.27 $ 0.89 $ 0.74 Diluted earnings per share $ 0.48 $ 0.27 $ 0.88 $ 0.73 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Dec. 26, 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 periods presented is as follows: 13-Week Period Ended Dec. 26, 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 $ 2,784 $ 1,069 $ 1,715 Amortization of actuarial loss (gain), net Operating expenses 5,317 2,042 3,275 Total reclassification adjustments 8,101 3,111 4,990 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (44,453 ) — (44,453 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,962 1,137 1,825 Total other comprehensive (loss) income $ (33,390 ) $ 4,248 $ (37,638 ) 13-Week Period Ended Dec. 27, 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 $ 2,819 $ 1,082 $ 1,737 Amortization of actuarial loss (gain), net Operating expenses 4,859 1,866 2,993 Total reclassification adjustments 7,678 2,948 4,730 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (91,853 ) — (91,853 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,660 1,021 1,639 Total other comprehensive (loss) income $ (81,515 ) $ 3,969 $ (85,484 ) 26-Week Period Ended Dec. 26, 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 $ 5,568 $ 2,138 $ 3,430 Amortization of actuarial loss (gain), net Operating expenses 10,634 4,084 6,550 Total reclassification adjustments 16,202 6,222 9,980 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (131,682 ) — (131,682 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 5,682 2,181 3,501 Change in fair value of cash flow hedge N/A (6,134 ) (2,355 ) (3,779 ) Total other comprehensive (loss) income $ (115,932 ) $ 6,048 $ (121,980 ) 26-Week Period Ended Dec. 27, 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 $ 5,638 $ 2,164 $ 3,474 Amortization of actuarial loss (gain), net Operating expenses 9,718 3,732 $ 5,986 Total reclassification adjustments 15,356 5,896 9,460 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A (163,107 ) — (163,107 ) Interest rate swaps: Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,865 1,100 1,765 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 (loss) income $ (200,260 ) $ (14,267 ) $ (185,993 ) |
Rollforward of accumulated other comprehensive (loss) income | The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented: 26-Week Period Ended Dec. 26, 2015 Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Translation Interest Rate Swaps, net of tax Total (In thousands) Balance as of Jun. 27, 2015 $ (705,311 ) $ (97,733 ) $ (120,153 ) $ (923,197 ) Other comprehensive income before reclassification adjustments — (131,682 ) — (131,682 ) Amortization of cash flow hedges — — 3,501 3,501 Change in fair value of cash flow hedges — — (3,779 ) (3,779 ) Amortization of unrecognized prior service cost 3,430 — — 3,430 Amortization of unrecognized net actuarial losses 6,550 — — 6,550 Balance as of Dec. 26, 2015 $ (695,331 ) $ (229,415 ) $ (120,431 ) $ (1,045,177 ) 26-Week Period Ended Dec. 27, 2014 Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Translation Interest Rate Swaps, net of tax Total (In thousands) Balance as of Jun. 28, 2014 $ (685,957 ) $ 134,452 $ (91,158 ) $ (642,663 ) Other comprehensive income before reclassification adjustments — (163,107 ) — (163,107 ) Amortization of cash flow hedges — — 1,765 1,765 Change in fair value of cash flow hedges — — (34,111 ) (34,111 ) Amortization of unrecognized prior service cost 3,474 — — 3,474 Amortization of unrecognized net actuarial losses 5,986 — — 5,986 Balance as of Dec. 27, 2014 $ (676,497 ) $ (28,655 ) $ (123,504 ) $ (828,656 ) |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Business segment table | The following tables set forth certain financial information for Sysco’s business segments: 13-Week Period Ended 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 Sales: (In thousands) (In thousands) Broadline $ 9,605,710 $ 9,548,847 $ 19,633,806 $ 19,520,222 SYGMA 1,506,836 1,559,863 2,952,741 3,101,475 Other 1,447,740 1,305,179 2,814,566 2,557,265 Intersegment sales (406,661 ) (326,815 ) (684,875 ) (646,807 ) Total $ 12,153,626 $ 12,087,074 $ 24,716,237 $ 24,532,155 13-Week Period Ended 26-Week Period Ended Dec. 26, 2015 Dec. 27, 2014 Dec. 26, 2015 Dec. 27, 2014 Operating income: (In thousands) (In thousands) Broadline $ 633,167 $ 582,598 $ 1,360,162 $ 1,268,973 SYGMA 5,952 7,803 11,177 12,953 Other 36,865 33,695 63,372 71,422 Total segments 675,984 624,096 1,434,711 1,353,348 Corporate expenses (243,401 ) (308,650 ) (508,654 ) (572,289 ) Total operating income 432,583 315,446 926,057 781,059 Interest expense 47,235 77,042 174,142 107,976 Other expense (income), net (7,764 ) 2,207 (23,004 ) 19 Earnings before income taxes $ 393,112 $ 236,197 $ 774,919 $ 673,064 Dec. 26, 2015 Jun. 27, 2015 Dec. 27, 2014 Assets: (In thousands) Broadline $ 7,739,428 $ 7,730,239 $ 7,906,762 SYGMA 556,480 512,044 520,862 Other 1,523,493 1,415,038 1,401,847 Total segments 9,819,401 9,657,321 9,829,471 Corporate 3,270,067 8,331,960 8,100,338 Total $ 13,089,468 $ 17,989,281 $ 17,929,809 |
Supplemental Guarantor Inform32
Supplemental Guarantor Information - Subsidiary Guarantees (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Supplemental Guarantor Information - Subsidiary Guarantees [Abstract] | |
Condensed consolidating balance sheet table | Condensed Consolidating Balance Sheet Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 279,596 $ 3,944,472 $ 2,554,958 $ — $ 6,779,026 Investment in subsidiaries 9,787,777 241,561 (355,335 ) (9,674,003 ) — Plant and equipment, net 501,514 1,632,601 1,802,497 — 3,936,612 Other assets 258,216 273,324 1,842,290 — 2,373,830 Total assets $ 10,827,103 $ 6,091,958 $ 5,844,410 $ (9,674,003 ) $ 13,089,468 Current liabilities $ 602,058 $ 731,474 $ 2,538,682 $ — $ 3,872,214 Intercompany payables (receivables) 1,576,888 (2,274,556 ) 697,668 — — Long-term debt 4,079,396 9,350 177,111 — 4,265,857 Other liabilities 672,888 278,590 12,999 — 964,477 Noncontrolling interest — — 45,493 — 45,493 Shareholders’ equity 3,895,873 7,347,100 2,372,457 (9,674,003 ) 3,941,427 Total liabilities and shareholders’ equity $ 10,827,103 $ 6,091,958 $ 5,844,410 $ (9,674,003 ) $ 13,089,468 Condensed Consolidating Balance Sheet Jun. 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 Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 4,779,586 $ 4,057,608 $ 2,619,710 $ — $ 11,456,904 Investment in subsidiaries 8,613,500 — — (8,613,500 ) — Plant and equipment, net 491,972 1,736,843 1,774,117 — 4,002,932 Other assets 324,771 520,178 1,625,024 — 2,469,973 Total assets $ 14,209,829 $ 6,314,629 $ 6,018,851 $ (8,613,500 ) $ 17,929,809 Current liabilities $ 848,885 $ 910,487 $ 2,526,581 $ — $ 4,285,953 Intercompany payables (receivables) 258,923 (759,128 ) 500,205 — — Long-term debt 7,127,186 17,550 63,516 — 7,208,252 Other liabilities 631,875 321,406 104,421 — 1,057,702 Noncontrolling interest — — 34,942 — 34,942 Shareholders’ equity 5,342,960 5,824,314 2,789,186 (8,613,500 ) 5,342,960 Total liabilities and shareholders’ equity $ 14,209,829 $ 6,314,629 $ 6,018,851 $ (8,613,500 ) $ 17,929,809 |
Condensed consolidating statement of comprehensive income table | Condensed Consolidating Statement of Comprehensive Income For the 13-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 8,199,071 $ 4,392,744 $ (438,189 ) $ 12,153,626 Cost of sales — 6,670,025 3,764,976 (438,189 ) 9,996,812 Gross profit — 1,529,046 627,768 — 2,156,814 Operating expenses 206,476 939,213 578,542 — 1,724,231 Operating income (loss) (206,476 ) 589,833 49,226 — 432,583 Interest expense (income) 70,318 (40,019 ) 16,936 — 47,235 Other expense (income), net (4,836 ) (352 ) (2,576 ) — (7,764 ) Earnings (losses) before income taxes (271,958 ) 630,204 34,866 — 393,112 Income tax (benefit) provision (81,472 ) 191,274 10,911 — 120,713 Equity in earnings of subsidiaries 462,885 — — (462,885 ) — Net earnings 272,399 438,930 23,955 (462,885 ) 272,399 Other comprehensive income (loss) (37,638 ) — (44,664 ) 44,664 (37,638 ) Comprehensive income $ 234,761 $ 438,930 $ (20,709 ) $ (418,221 ) $ 234,761 Condensed Consolidating Statement of Comprehensive Income For the 13-Week Period Ended Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 8,027,990 $ 4,407,159 $ (348,075 ) $ 12,087,074 Cost of sales — 6,574,759 3,775,253 (348,075 ) 10,001,937 Gross profit — 1,453,231 631,906 — 2,085,137 Operating expenses 256,612 913,137 599,942 — 1,769,691 Operating income (loss) (256,612 ) 540,094 31,964 — 315,446 Interest expense (income) 94,229 (24,501 ) 7,314 — 77,042 Other expense (income), net 1,922 (365 ) 650 — 2,207 Earnings (losses) before income taxes (352,763 ) 564,960 24,000 — 236,197 Income tax (benefit) provision (121,267 ) 191,470 8,015 — 78,218 Equity in earnings of subsidiaries 389,475 — — (389,475 ) — Net earnings 157,979 373,490 15,985 (389,475 ) 157,979 Other comprehensive income (loss) (85,484 ) — (91,853 ) 91,853 (85,484 ) Comprehensive income $ 72,495 $ 373,490 $ (75,868 ) $ (297,622 ) $ 72,495 Condensed Consolidating Statement of Comprehensive Income For the 26-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 16,723,622 $ 8,819,741 $ (827,126 ) $ 24,716,237 Cost of sales — 13,582,194 7,566,360 (827,126 ) 20,321,428 Gross profit — 3,141,428 1,253,381 — 4,394,809 Operating expenses 405,851 1,896,128 1,166,773 — 3,468,752 Operating income (loss) (405,851 ) 1,245,300 86,608 — 926,057 Interest expense (income) 216,415 (80,002 ) 37,729 — 174,142 Other expense (income), net (9,913 ) (829 ) (12,262 ) — (23,004 ) Earnings (losses) before income taxes (612,353 ) 1,326,131 61,141 — 774,919 Income tax (benefit) provision (203,956 ) 441,691 20,365 — 258,100 Equity in earnings of subsidiaries 925,216 — — (925,216 ) — Net earnings 516,819 884,440 40,776 (925,216 ) 516,819 Other comprehensive income (loss) (121,980 ) — (227,849 ) 227,849 (121,980 ) Comprehensive income $ 394,839 $ 884,440 $ (187,073 ) $ (697,367 ) $ 394,839 Condensed Consolidating Statement of Comprehensive Income For the 26-Week Period Ended Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 16,350,298 $ 8,871,628 $ (689,771 ) $ 24,532,155 Cost of sales — 13,349,267 7,598,805 (689,771 ) 20,258,301 Gross profit — 3,001,031 1,272,823 — 4,273,854 Operating expenses 447,509 1,845,332 1,199,954 — 3,492,795 Operating income (loss) (447,509 ) 1,155,699 72,869 — 781,059 Interest expense (income) 144,395 (45,975 ) 9,556 — 107,976 Other expense (income), net (480 ) (764 ) 1,263 — 19 Earnings (losses) before income taxes (591,424 ) 1,202,438 62,050 — 673,064 Income tax (benefit) provision (207,611 ) 422,101 21,782 — 236,272 Equity in earnings of subsidiaries 820,605 — — (820,605 ) — Net earnings 436,792 780,337 40,268 (820,605 ) 436,792 Other comprehensive income (loss) (185,993 ) — (163,107 ) 163,107 (185,993 ) Comprehensive income $ 250,799 $ 780,337 $ (122,839 ) $ (657,498 ) $ 250,799 Condensed Consolidating Cash Flows For the 26-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (576,817 ) $ 427,995 $ 617,703 $ 468,881 Investing activities 123,371 (43,744 ) (246,913 ) (167,286 ) Financing activities (4,871,105 ) (1,003 ) 76,773 (4,795,335 ) Effect of exchange rates on cash — — (40,702 ) (40,702 ) Intercompany activity 679,954 (343,252 ) (336,702 ) — Net increase (decrease) in cash and cash equivalents (4,644,597 ) 39,996 70,159 (4,534,442 ) Cash and cash equivalents at the beginning of period 4,851,067 26,380 252,597 5,130,044 Cash and cash equivalents at the end of period $ 206,470 $ 66,376 $ 322,756 $ 595,602 |
Condensed consolidating cash flows table | Condensed Consolidating Cash Flows For the 26-Week Period Ended Dec. 26, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (576,817 ) $ 427,995 $ 617,703 $ 468,881 Investing activities 123,371 (43,744 ) (246,913 ) (167,286 ) Financing activities (4,871,105 ) (1,003 ) 76,773 (4,795,335 ) Effect of exchange rates on cash — — (40,702 ) (40,702 ) Intercompany activity 679,954 (343,252 ) (336,702 ) — Net increase (decrease) in cash and cash equivalents (4,644,597 ) 39,996 70,159 (4,534,442 ) Cash and cash equivalents at the beginning of period 4,851,067 26,380 252,597 5,130,044 Cash and cash equivalents at the end of period $ 206,470 $ 66,376 $ 322,756 $ 595,602 Condensed Consolidating Cash Flows For the 26-Week Period Ended Dec. 27, 2014 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (111,482 ) $ 654,460 $ (90,540 ) $ 452,438 Investing activities (59,843 ) (62,747 ) (222,578 ) (345,168 ) Financing activities 4,391,966 2,161 32,639 4,426,766 Effect of exchange rates on cash — — (39,405 ) (39,405 ) Intercompany activity 324,639 (600,204 ) 275,565 — Net increase (decrease) in cash and cash equivalents 4,545,280 (6,330 ) (44,319 ) 4,494,631 Cash and cash equivalents at the beginning of period 158,957 27,772 226,317 413,046 Cash and cash equivalents at the end of period $ 4,704,237 $ 21,442 $ 181,998 $ 4,907,677 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Business Combinations [Abstract] | ||
Acquisition of businesses, net of cash acquired | $ 98,154 | $ 29,177 |
Contingent consideration maximum number of years | 3 years | |
Potential cash payout for contingent consideration arrangements | $ 28,400 | |
Amount of recorded earnout liabilities | $ 20,700 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Jun. 27, 2015 | Dec. 27, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of total debt | $ 4,400,000 | ||
Recurring Fair Value Measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 295,634 | $ 4,741,424 | $ 4,677,275 |
Restricted cash | 168,274 | 165,465 | |
Total assets at fair value | 299,570 | 4,922,295 | 4,847,542 |
Current portion of long-term debt | 1,257,127 | ||
Long-term debt | 1,241,786 | 503,379 | 1,752,118 |
Total liabilities at fair value | 1,248,361 | 1,760,506 | 1,752,270 |
Recurring Fair Value Measurements | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 6,575 | 152 | |
Recurring Fair Value Measurements | Other assets | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 3,936 | 12,597 | 4,802 |
Recurring Fair Value Measurements | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 234,161 | 4,677,735 | 4,655,434 |
Restricted cash | 168,274 | 165,465 | |
Total assets at fair value | 234,161 | 4,846,009 | 4,820,899 |
Current portion of long-term debt | 0 | ||
Long-term debt | 0 | 0 | 0 |
Total liabilities at fair value | 0 | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 0 | 0 | |
Recurring Fair Value Measurements | Level 1 | Other assets | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 0 | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 61,473 | 63,689 | 21,841 |
Restricted cash | 0 | 0 | |
Total assets at fair value | 65,409 | 76,286 | 26,643 |
Current portion of long-term debt | 1,257,127 | ||
Long-term debt | 1,241,786 | 503,379 | 1,752,118 |
Total liabilities at fair value | 1,248,361 | 1,760,506 | 1,752,270 |
Recurring Fair Value Measurements | Level 2 | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 6,575 | 152 | |
Recurring Fair Value Measurements | Level 2 | Other assets | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 3,936 | 12,597 | 4,802 |
Recurring Fair Value Measurements | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 0 | 0 | 0 |
Restricted cash | 0 | 0 | |
Total assets at fair value | 0 | 0 | 0 |
Current portion of long-term debt | 0 | ||
Long-term debt | 0 | 0 | 0 |
Total liabilities at fair value | 0 | 0 | 0 |
Recurring Fair Value Measurements | Level 3 | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 0 | 0 | |
Recurring Fair Value Measurements | Level 3 | Other assets | Interest rate swap agreements: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swap agreement | 0 | 0 | 0 |
Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of total debt | 3,300,000 | 5,600,000 | 7,600,000 |
Carrying value of total debt | $ 3,100,000 | $ 5,400,000 | $ 7,100,000 |
Derivative Financial Instrume35
Derivative Financial Instruments (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Oct. 31, 2015USD ($) | Aug. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jan. 31, 2014USD ($)agreement | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 28, 2015USD ($) | Sep. 23, 2015USD ($) | Jun. 27, 2015USD ($) | Aug. 31, 2013USD ($) | |
Derivative [Line Items] | |||||||||||||
Cash received from termination of interest rate swap agreements | $ 14,496,000 | $ 0 | |||||||||||
Interest rate swap agreements: | |||||||||||||
Derivative [Line Items] | |||||||||||||
Term of forecasted debt issuance (in years) | 10 years | ||||||||||||
Jan 2014 Forward Starting Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of derivative | $ 500,000,000 | $ 2,000,000,000 | |||||||||||
Cash paid for settlement of cash flow hedge | $ 6,100,000 | ||||||||||||
Interest Rate Swap2018 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of derivative | $ 500,000,000 | $ 500,000,000 | |||||||||||
October 2,020 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional amount of derivative | 750,000,000 | 750,000,000 | |||||||||||
Jan 2014 Forward Starting Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of interest rate derivatives held | agreement | 2 | ||||||||||||
Hedging Instrument | Interest rate swap agreements: | Fair Value Hedge Relationships: | Interest expense | |||||||||||||
Derivative [Line Items] | |||||||||||||
(Gain) loss on interest rate swap agreements recorded to interest expense | $ 0 | $ (6,401,000) | 0 | (9,670,000) | |||||||||
Hedging Instrument | Interest rate swap agreements: | Cash Flow Hedge Relationships: | |||||||||||||
Derivative [Line Items] | |||||||||||||
(Gain) loss recognized in other comprehensive income | 0 | 0 | 5,682,000 | 55,374,000 | |||||||||
Hedging Instrument | Interest rate swap agreements: | Cash Flow Hedge Relationships: | Interest expense | |||||||||||||
Derivative [Line Items] | |||||||||||||
(Gain) loss on interest rate contracts reclassified from accumulated other comprehensive income to interest expense | 2,962,000 | (2,660,000) | 6,134,000 | (2,865,000) | |||||||||
Hedging Instrument | Other assets | Interest rate swap agreements: | |||||||||||||
Derivative [Line Items] | |||||||||||||
Fair value of interest rate swap agreements | 3,936,000 | 4,802,000 | 3,936,000 | 4,802,000 | $ 12,597,000 | ||||||||
Hedging Instrument | Accrued expenses | Interest rate swap agreements: | |||||||||||||
Derivative [Line Items] | |||||||||||||
Fair value of interest rate swap agreements | |||||||||||||
Hedging Instrument | Other liabilities | Interest rate swap agreements: | |||||||||||||
Derivative [Line Items] | |||||||||||||
Fair value of interest rate swap agreements | $ 6,575,000 | $ 6,575,000 | |||||||||||
Hedging Instrument | Other long-term liabilities | Interest rate swap agreements: | |||||||||||||
Derivative [Line Items] | |||||||||||||
Fair value of interest rate swap agreements | $ 152,000 | $ 152,000 | |||||||||||
Six Part Senior Notes Offering | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt instrument face amount | 5,000,000,000 | ||||||||||||
Senior Notes October 2024 | Jan 2014 Forward Starting Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Term of forecasted debt issuance (in years) | 10 years | ||||||||||||
Senior Notes October 2044 | Jan 2014 Forward Starting Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Term of forecasted debt issuance (in years) | 30 years | ||||||||||||
Senior Notes, Maturing in October 2024 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt instrument face amount | $ 1,250,000,000 | ||||||||||||
Senior Notes, Maturing in October 2024 | Jan 2014 Forward Starting Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash paid for settlement of cash flow hedge | 58,900,000 | ||||||||||||
Senior Notes, Maturing in October 2044 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt instrument face amount | $ 1,000,000,000 | ||||||||||||
Senior Notes, Maturing in October 2044 | Jan 2014 Forward Starting Swaps | |||||||||||||
Derivative [Line Items] | |||||||||||||
Cash paid for settlement of cash flow hedge | $ 129,900,000 | ||||||||||||
Senior Notes | |||||||||||||
Derivative [Line Items] | |||||||||||||
Senior notes | 2,000,000,000 | $ 2,000,000,000 | |||||||||||
Commercial Paper | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt instrument face amount | 500,000,000 | ||||||||||||
September 23, 2015 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Value of shares repurchased | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | Oct. 31, 2015 | Sep. 28, 2015 | Sep. 23, 2015 | |
Debt [Line Items] | ||||||
Maximum board-authorized aggregate commercial paper limit | $ 1,500,000,000 | |||||
Carrying value of total debt | 4,400,000,000 | |||||
Shortterm debt minimum amount outstanding during period | 0 | |||||
Maximum amount outstanding | 1,000,000,000 | |||||
Loss on extinguishment of debt | 86,460,000 | $ 0 | ||||
Mandatory Redemption | ||||||
Debt [Line Items] | ||||||
Redemption price of debt instrument (as a percent) | 101.00% | |||||
Commercial Paper | ||||||
Debt [Line Items] | ||||||
Carrying value of total debt | 0 | |||||
Debt instrument face amount | $ 500,000,000 | |||||
Senior Notes | ||||||
Debt [Line Items] | ||||||
Extinguishment of debt amount | $ 5,050,000,000 | 94,835,000 | ||||
Loss on extinguishment of debt | $ 86,460,000 | |||||
Senior notes | 2,000,000,000 | $ 2,000,000,000 | ||||
Pricing (percentage of par) | 100.00% | |||||
September 23, 2015 | ||||||
Debt [Line Items] | ||||||
Value of shares repurchased | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 |
Debt (Repayment) (Details)
Debt (Repayment) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 86,460 | $ 0 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption Premium Payment | 50,000 | ||
Debt issuance cost write-off | 28,642 | ||
Bond discount write-off | 17,869 | ||
Interest expense on senior notes | (10,051) | ||
Loss on extinguishment of debt | 86,460 | ||
Gain on swap termination | 8,375 | ||
Total | $ 5,050,000 | $ 94,835 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) $ in Millions | Sep. 28, 2015USD ($) |
October 1, 2020 | |
Debt Instrument [Line Items] | |
Par Value (in millions) | $ 750 |
Coupon Rate (as a percent) | 2.60% |
Pricing (percentage of par) | 99.809% |
October 1, 2025 | |
Debt Instrument [Line Items] | |
Par Value (in millions) | $ 750 |
Coupon Rate (as a percent) | 3.75% |
Pricing (percentage of par) | 100.00% |
October 1, 2045 | |
Debt Instrument [Line Items] | |
Par Value (in millions) | $ 500 |
Coupon Rate (as a percent) | 4.85% |
Pricing (percentage of par) | 99.921% |
Company-Sponsored Employee Be39
Company-Sponsored Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,902 | $ 2,815 | $ 5,803 | $ 5,630 |
Interest cost | 42,833 | 42,779 | 85,665 | 85,558 |
Expected return on plan assets | (53,202) | (57,156) | (106,404) | (114,312) |
Amortization of prior service cost | 2,743 | 2,777 | 5,486 | 5,554 |
Amortization of actuarial loss (gain) | 5,435 | 4,968 | 10,870 | 9,936 |
Net periodic costs (benefits) | 711 | (3,817) | 1,420 | (7,634) |
Employer contributions | 43,700 | 62,300 | ||
Other Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 134 | 134 | 268 | 268 |
Interest cost | 153 | 148 | 305 | 296 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 41 | 42 | 83 | 84 |
Amortization of actuarial loss (gain) | (118) | (109) | (236) | (218) |
Net periodic costs (benefits) | $ 210 | $ 215 | $ 420 | $ 430 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - September 23, 2015 - USD ($) | Sep. 28, 2015 | Oct. 31, 2015 | Sep. 23, 2015 |
Class of Stock [Line Items] | |||
Value of shares repurchased | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 |
Number of shares acquired | 32,319,392 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Earnings Per Share [Line Items] | ||||
Net earnings | $ 272,399 | $ 157,979 | $ 516,819 | $ 436,792 |
Weighted-average basic shares outstanding (in shares) | 566,881,538 | 590,723,351 | 581,790,230 | 589,499,802 |
Dilutive effect of share-based awards (in shares) | 4,570,586 | 5,188,329 | 4,330,783 | 5,110,513 |
Weighted-average diluted shares outstanding (in shares) | 571,452,124 | 595,911,680 | 586,121,013 | 594,610,315 |
Basic earnings per share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.89 | $ 0.74 |
Diluted earnings per share (in dollars per share) | $ 0.48 | $ 0.27 | $ 0.88 | $ 0.73 |
Stock Options | ||||
Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 4,000,000 | 2,000,000 | 1,000,000 | 1,300,000 |
Other Comprehensive Income (Com
Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Comprehensive income | $ 234,761 | $ 72,495 | $ 394,839 | $ 250,799 |
Before Tax Amount | ||||
Foreign currency translation adjustment | (44,453) | (91,853) | (131,682) | (163,107) |
Total other comprehensive (loss) income | (33,390) | (81,515) | (115,932) | (200,260) |
Tax | ||||
Total other comprehensive (loss) income | 4,248 | 3,969 | 6,048 | (14,267) |
Net of Tax Amount | ||||
Amortization of prior service cost | 1,715 | 1,737 | 3,430 | 3,474 |
Amortization of actuarial loss (gain), net | 3,275 | 2,993 | 6,550 | 5,986 |
Amortization of cash flow hedges | 1,825 | 1,639 | 3,501 | 1,765 |
Change in fair value of cash flow hedges | 0 | 0 | (3,779) | (34,111) |
Total other comprehensive (loss) | (37,638) | (85,484) | (121,980) | (185,993) |
Pension and other postretirement benefit plans: | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 3,430 | 3,474 | ||
Amortization of actuarial loss (gain), net | 6,550 | 5,986 | ||
Amortization of cash flow hedges | 0 | 0 | ||
Change in fair value of cash flow hedges | 0 | 0 | ||
Pension and other postretirement benefit plans: | Reclassification adjustments: | Operating expenses | ||||
Before Tax Amount | ||||
Amortization of prior service cost | 2,784 | 2,819 | 5,568 | 5,638 |
Amortization of actuarial loss (gain), net | 5,317 | 4,859 | 10,634 | 9,718 |
Total reclassification adjustments | 8,101 | 7,678 | 16,202 | 15,356 |
Tax | ||||
Amortization of prior service cost | 1,069 | 1,082 | 2,138 | 2,164 |
Amortization of actuarial loss (gain), net | 2,042 | 1,866 | 4,084 | 3,732 |
Total reclassification adjustments | 3,111 | 2,948 | 6,222 | 5,896 |
Net of Tax Amount | ||||
Amortization of prior service cost | 1,715 | 1,737 | 3,430 | 3,474 |
Amortization of actuarial loss (gain), net | 3,275 | 2,993 | 6,550 | 5,986 |
Total reclassification adjustments | 4,990 | 4,730 | 9,980 | 9,460 |
Foreign currency translation: | ||||
Before Tax Amount | ||||
Foreign currency translation adjustment | (44,453) | (91,853) | (131,682) | (163,107) |
Tax | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Amortization of prior service cost | 0 | 0 | ||
Amortization of actuarial loss (gain), net | 0 | 0 | ||
Foreign currency translation adjustment | (44,453) | (91,853) | (131,682) | (163,107) |
Amortization of cash flow hedges | 0 | 0 | ||
Change in fair value of cash flow hedges | 0 | 0 | ||
Interest rate swaps: | ||||
Before Tax Amount | ||||
Change in fair value of cash flow hedges | (6,134) | (55,374) | ||
Tax | ||||
Change in fair value of cash flow hedges | (2,355) | (21,263) | ||
Net of Tax Amount | ||||
Amortization of prior service cost | 0 | 0 | ||
Amortization of actuarial loss (gain), net | 0 | 0 | ||
Amortization of cash flow hedges | 3,501 | 1,765 | ||
Change in fair value of cash flow hedges | (3,779) | (34,111) | ||
Interest rate swaps: | Reclassification adjustments: | Interest expense | ||||
Before Tax Amount | ||||
Amortization of cash flow hedges | 2,962 | 2,660 | 5,682 | 2,865 |
Tax | ||||
Amortization of cash flow hedges | 1,137 | 1,021 | 2,181 | 1,100 |
Net of Tax Amount | ||||
Amortization of cash flow hedges | $ 1,825 | $ 1,639 | $ 3,501 | $ 1,765 |
Other Comprehensive Income (Sum
Other Comprehensive Income (Summary of Changes in Accumulated Other Comprehensive (Loss) Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | $ 5,260,224 | |||
Amortization of cash flow hedges | $ 1,825 | $ 1,639 | 3,501 | $ 1,765 |
Change in fair value of cash flow hedges | 0 | 0 | (3,779) | (34,111) |
Amortization of prior service cost | 1,715 | 1,737 | 3,430 | 3,474 |
Amortization of unrecognized net actuarial losses | 3,275 | 2,993 | 6,550 | 5,986 |
Ending balance, shareholders' equity | 3,941,427 | 5,342,960 | 3,941,427 | 5,342,960 |
Pension and other postretirement benefit plans: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (705,311) | (685,957) | ||
Other comprehensive income before reclassification adjustments | 0 | 0 | ||
Amortization of cash flow hedges | 0 | 0 | ||
Change in fair value of cash flow hedges | 0 | 0 | ||
Amortization of prior service cost | 3,430 | 3,474 | ||
Amortization of unrecognized net actuarial losses | 6,550 | 5,986 | ||
Ending balance, shareholders' equity | (695,331) | (676,497) | (695,331) | (676,497) |
Foreign currency translation: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (97,733) | 134,452 | ||
Other comprehensive income before reclassification adjustments | (131,682) | (163,107) | ||
Amortization of cash flow hedges | 0 | 0 | ||
Change in fair value of cash flow hedges | 0 | 0 | ||
Amortization of prior service cost | 0 | 0 | ||
Amortization of unrecognized net actuarial losses | 0 | 0 | ||
Ending balance, shareholders' equity | (229,415) | (28,655) | (229,415) | (28,655) |
Interest rate swaps: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (120,153) | (91,158) | ||
Other comprehensive income before reclassification adjustments | 0 | 0 | ||
Amortization of cash flow hedges | 3,501 | 1,765 | ||
Change in fair value of cash flow hedges | (3,779) | (34,111) | ||
Amortization of prior service cost | 0 | 0 | ||
Amortization of unrecognized net actuarial losses | 0 | 0 | ||
Ending balance, shareholders' equity | (120,431) | (123,504) | (120,431) | (123,504) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (923,197) | (642,663) | ||
Other comprehensive income before reclassification adjustments | (131,682) | (163,107) | ||
Amortization of cash flow hedges | 3,501 | 1,765 | ||
Change in fair value of cash flow hedges | (3,779) | (34,111) | ||
Amortization of prior service cost | 3,430 | 3,474 | ||
Amortization of unrecognized net actuarial losses | 6,550 | 5,986 | ||
Ending balance, shareholders' equity | $ (1,045,177) | $ (828,656) | $ (1,045,177) | $ (828,656) |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Incentive Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 4,326,915 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 40.59 | |
Share-based compensation expense | $ 44,045 | $ 44,460 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 70,400 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 2 years 7 months 6 days | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 435,970 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 40.41 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options vested (in shares) | 704,129 | |
Equity instruments other than options vested, weighted average grant date fair value per share (in dollars per share) | $ 5.63 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 32.1 | $ 32.1 | ||
Liability recorded for interest and penalties related to unrecognized tax benefits | 19.4 | $ 19.4 | ||
Tax contingency | $ 20.8 | |||
Effective income tax rate (as a percent) | 30.71% | 33.12% | 33.31% | 35.10% |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 26, 2015USD ($)segment | Dec. 27, 2014USD ($) | Jun. 27, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reporting segments | segment | 2 | ||||
Sales | $ 12,153,626 | $ 12,087,074 | $ 24,716,237 | $ 24,532,155 | |
Operating income: | 432,583 | 315,446 | 926,057 | 781,059 | |
Interest expense | 47,235 | 77,042 | 174,142 | 107,976 | |
Other expense (income), net | (7,764) | 2,207 | (23,004) | 19 | |
Earnings before income taxes | 393,112 | 236,197 | 774,919 | 673,064 | |
Assets: | 13,089,468 | 17,929,809 | 13,089,468 | 17,929,809 | $ 17,989,281 |
Intersegment sales | |||||
Segment Reporting Information [Line Items] | |||||
Sales | (406,661) | (326,815) | (684,875) | (646,807) | |
Total | |||||
Segment Reporting Information [Line Items] | |||||
Operating income: | 675,984 | 624,096 | 1,434,711 | 1,353,348 | |
Assets: | 9,819,401 | 9,829,471 | 9,819,401 | 9,829,471 | 9,657,321 |
Corporate expenses | |||||
Segment Reporting Information [Line Items] | |||||
Operating income: | (243,401) | (308,650) | (508,654) | (572,289) | |
Assets: | 3,270,067 | 8,100,338 | 3,270,067 | 8,100,338 | 8,331,960 |
Broadline | Total | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 9,605,710 | 9,548,847 | 19,633,806 | 19,520,222 | |
Operating income: | 633,167 | 582,598 | 1,360,162 | 1,268,973 | |
Assets: | 7,739,428 | 7,906,762 | 7,739,428 | 7,906,762 | 7,730,239 |
SYGMA | Total | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,506,836 | 1,559,863 | 2,952,741 | 3,101,475 | |
Operating income: | 5,952 | 7,803 | 11,177 | 12,953 | |
Assets: | 556,480 | 520,862 | 556,480 | 520,862 | 512,044 |
Other | Total | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,447,740 | 1,305,179 | 2,814,566 | 2,557,265 | |
Operating income: | 36,865 | 33,695 | 63,372 | 71,422 | |
Assets: | $ 1,523,493 | $ 1,401,847 | $ 1,523,493 | $ 1,401,847 | $ 1,415,038 |
Supplemental Guarantor Inform47
Supplemental Guarantor Information - Subsidiary Guarantees (Narrative) (Details) $ in Billions | 6 Months Ended |
Dec. 26, 2015USD ($) | |
Supplemental Guarantor Information - Subsidiary Guarantees [Abstract] | |
Carrying value of total debt | $ 4.4 |
Percentage ownership of subsidiary guarantors by parent | 100.00% |
Supplemental Guarantor Inform48
Supplemental Guarantor Information - Subsidiary Guarantees (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Jun. 27, 2015 | Dec. 27, 2014 |
Supplemental Guarantor Information [Line Items] | |||
Current assets | $ 6,779,026 | $ 11,494,304 | $ 11,456,904 |
Investment in subsidiaries | 0 | 0 | 0 |
Plant and equipment, net | 3,936,612 | 3,982,143 | 4,002,932 |
Other assets | 2,373,830 | 2,512,834 | 2,469,973 |
Total assets | 13,089,468 | 17,989,281 | 17,929,809 |
Current liabilities | 3,872,214 | 9,399,615 | 4,285,953 |
Intercompany payables (receivables) | 0 | 0 | 0 |
Long-term debt | 4,265,857 | 2,271,825 | 7,208,252 |
Other liabilities | 964,477 | 1,016,313 | 1,057,702 |
Noncontrolling interest | 45,493 | 41,304 | 34,942 |
Shareholders’ equity | 3,941,427 | 5,260,224 | 5,342,960 |
Total liabilities and shareholders' equity | 13,089,468 | 17,989,281 | 17,929,809 |
Reportable Legal Entities | Sysco | |||
Supplemental Guarantor Information [Line Items] | |||
Current assets | 279,596 | 4,894,387 | 4,779,586 |
Investment in subsidiaries | 9,787,777 | 9,088,455 | 8,613,500 |
Plant and equipment, net | 501,514 | 510,285 | 491,972 |
Other assets | 258,216 | 371,802 | 324,771 |
Total assets | 10,827,103 | 14,864,929 | 14,209,829 |
Current liabilities | 602,058 | 5,851,364 | 848,885 |
Intercompany payables (receivables) | 1,576,888 | 973,497 | 258,923 |
Long-term debt | 4,079,396 | 2,154,923 | 7,127,186 |
Other liabilities | 672,888 | 624,795 | 631,875 |
Noncontrolling interest | 0 | 0 | 0 |
Shareholders’ equity | 3,895,873 | 5,260,350 | 5,342,960 |
Total liabilities and shareholders' equity | 10,827,103 | 14,864,929 | 14,209,829 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | |||
Supplemental Guarantor Information [Line Items] | |||
Current assets | 3,944,472 | 4,012,924 | 4,057,608 |
Investment in subsidiaries | 241,561 | 0 | 0 |
Plant and equipment, net | 1,632,601 | 1,694,659 | 1,736,843 |
Other assets | 273,324 | 522,566 | 520,178 |
Total assets | 6,091,958 | 6,230,149 | 6,314,629 |
Current liabilities | 731,474 | 1,658,558 | 910,487 |
Intercompany payables (receivables) | (2,274,556) | (1,996,915) | (759,128) |
Long-term debt | 9,350 | 10,121 | 17,550 |
Other liabilities | 278,590 | 278,458 | 321,406 |
Noncontrolling interest | 0 | 0 | 0 |
Shareholders’ equity | 7,347,100 | 6,279,927 | 5,824,314 |
Total liabilities and shareholders' equity | 6,091,958 | 6,230,149 | 6,314,629 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | |||
Supplemental Guarantor Information [Line Items] | |||
Current assets | 2,554,958 | 2,586,993 | 2,619,710 |
Investment in subsidiaries | (355,335) | 0 | 0 |
Plant and equipment, net | 1,802,497 | 1,777,199 | 1,774,117 |
Other assets | 1,842,290 | 1,618,466 | 1,625,024 |
Total assets | 5,844,410 | 5,982,658 | 6,018,851 |
Current liabilities | 2,538,682 | 1,889,693 | 2,526,581 |
Intercompany payables (receivables) | 697,668 | 1,023,418 | 500,205 |
Long-term debt | 177,111 | 106,781 | 63,516 |
Other liabilities | 12,999 | 113,060 | 104,421 |
Noncontrolling interest | 45,493 | 41,304 | 34,942 |
Shareholders’ equity | 2,372,457 | 2,808,402 | 2,789,186 |
Total liabilities and shareholders' equity | 5,844,410 | 5,982,658 | 6,018,851 |
Eliminations | |||
Supplemental Guarantor Information [Line Items] | |||
Current assets | 0 | 0 | 0 |
Investment in subsidiaries | (9,674,003) | (9,088,455) | (8,613,500) |
Plant and equipment, net | 0 | 0 | 0 |
Other assets | 0 | 0 | 0 |
Total assets | (9,674,003) | (9,088,455) | (8,613,500) |
Current liabilities | 0 | 0 | 0 |
Intercompany payables (receivables) | 0 | 0 | 0 |
Long-term debt | 0 | 0 | 0 |
Other liabilities | 0 | 0 | 0 |
Noncontrolling interest | 0 | 0 | 0 |
Shareholders’ equity | (9,674,003) | (9,088,455) | (8,613,500) |
Total liabilities and shareholders' equity | $ (9,674,003) | $ (9,088,455) | $ (8,613,500) |
Supplemental Guarantor Inform49
Supplemental Guarantor Information - Subsidiary Guarantees (Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Supplemental Guarantor Information [Line Items] | ||||
Sales | $ 12,153,626 | $ 12,087,074 | $ 24,716,237 | $ 24,532,155 |
Cost of sales | 9,996,812 | 10,001,937 | 20,321,428 | 20,258,301 |
Gross profit | 2,156,814 | 2,085,137 | 4,394,809 | 4,273,854 |
Operating expenses | 1,724,231 | 1,769,691 | 3,468,752 | 3,492,795 |
Operating income (loss) | 432,583 | 315,446 | 926,057 | 781,059 |
Interest expense (income) | 47,235 | 77,042 | 174,142 | 107,976 |
Other expense (income), net | (7,764) | 2,207 | (23,004) | 19 |
Earnings (losses) before income taxes | 393,112 | 236,197 | 774,919 | 673,064 |
Income tax (benefit) provision | 120,713 | 78,218 | 258,100 | 236,272 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 272,399 | 157,979 | 516,819 | 436,792 |
Other comprehensive income (loss) | (37,638) | (85,484) | (121,980) | (185,993) |
Comprehensive income | 234,761 | 72,495 | 394,839 | 250,799 |
Reportable Legal Entities | Sysco | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | 206,476 | 256,612 | 405,851 | 447,509 |
Operating income (loss) | (206,476) | (256,612) | (405,851) | (447,509) |
Interest expense (income) | 70,318 | 94,229 | 216,415 | 144,395 |
Other expense (income), net | (4,836) | 1,922 | (9,913) | (480) |
Earnings (losses) before income taxes | (271,958) | (352,763) | (612,353) | (591,424) |
Income tax (benefit) provision | (81,472) | (121,267) | (203,956) | (207,611) |
Equity in earnings of subsidiaries | 462,885 | 389,475 | 925,216 | 820,605 |
Net earnings | 272,399 | 157,979 | 516,819 | 436,792 |
Other comprehensive income (loss) | (37,638) | (85,484) | (121,980) | (185,993) |
Comprehensive income | 234,761 | 72,495 | 394,839 | 250,799 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 8,199,071 | 8,027,990 | 16,723,622 | 16,350,298 |
Cost of sales | 6,670,025 | 6,574,759 | 13,582,194 | 13,349,267 |
Gross profit | 1,529,046 | 1,453,231 | 3,141,428 | 3,001,031 |
Operating expenses | 939,213 | 913,137 | 1,896,128 | 1,845,332 |
Operating income (loss) | 589,833 | 540,094 | 1,245,300 | 1,155,699 |
Interest expense (income) | (40,019) | (24,501) | (80,002) | (45,975) |
Other expense (income), net | (352) | (365) | (829) | (764) |
Earnings (losses) before income taxes | 630,204 | 564,960 | 1,326,131 | 1,202,438 |
Income tax (benefit) provision | 191,274 | 191,470 | 441,691 | 422,101 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 438,930 | 373,490 | 884,440 | 780,337 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | 438,930 | 373,490 | 884,440 | 780,337 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 4,392,744 | 4,407,159 | 8,819,741 | 8,871,628 |
Cost of sales | 3,764,976 | 3,775,253 | 7,566,360 | 7,598,805 |
Gross profit | 627,768 | 631,906 | 1,253,381 | 1,272,823 |
Operating expenses | 578,542 | 599,942 | 1,166,773 | 1,199,954 |
Operating income (loss) | 49,226 | 31,964 | 86,608 | 72,869 |
Interest expense (income) | 16,936 | 7,314 | 37,729 | 9,556 |
Other expense (income), net | (2,576) | 650 | (12,262) | 1,263 |
Earnings (losses) before income taxes | 34,866 | 24,000 | 61,141 | 62,050 |
Income tax (benefit) provision | 10,911 | 8,015 | 20,365 | 21,782 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 23,955 | 15,985 | 40,776 | 40,268 |
Other comprehensive income (loss) | (44,664) | (91,853) | (227,849) | (163,107) |
Comprehensive income | (20,709) | (75,868) | (187,073) | (122,839) |
Eliminations | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | (438,189) | (348,075) | (827,126) | (689,771) |
Cost of sales | (438,189) | (348,075) | (827,126) | (689,771) |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense (income) | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Earnings (losses) before income taxes | 0 | 0 | 0 | 0 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (462,885) | (389,475) | (925,216) | (820,605) |
Net earnings | (462,885) | (389,475) | (925,216) | (820,605) |
Other comprehensive income (loss) | 44,664 | 91,853 | 227,849 | 163,107 |
Comprehensive income | $ (418,221) | $ (297,622) | $ (697,367) | $ (657,498) |
Supplemental Guarantor Inform50
Supplemental Guarantor Information - Subsidiary Guarantees (Cash Flows) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Supplemental Guarantor Information [Line Items] | ||
Operating activities | $ 468,881 | $ 452,438 |
Investing activities | (167,286) | (345,168) |
Financing activities | (4,795,335) | 4,426,766 |
Effect of exchange rates on cash and cash equivalents | (40,702) | (39,405) |
Intercompany activity | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (4,534,442) | 4,494,631 |
Cash and cash equivalents at beginning of period | 5,130,044 | 413,046 |
Cash and cash equivalents at end of period | 595,602 | 4,907,677 |
Reportable Legal Entities | Sysco | ||
Supplemental Guarantor Information [Line Items] | ||
Operating activities | (576,817) | (111,482) |
Investing activities | 123,371 | (59,843) |
Financing activities | (4,871,105) | 4,391,966 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Intercompany activity | 679,954 | 324,639 |
Net (decrease) increase in cash and cash equivalents | (4,644,597) | 4,545,280 |
Cash and cash equivalents at beginning of period | 4,851,067 | 158,957 |
Cash and cash equivalents at end of period | 206,470 | 4,704,237 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Operating activities | 427,995 | 654,460 |
Investing activities | (43,744) | (62,747) |
Financing activities | (1,003) | 2,161 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Intercompany activity | (343,252) | (600,204) |
Net (decrease) increase in cash and cash equivalents | 39,996 | (6,330) |
Cash and cash equivalents at beginning of period | 26,380 | 27,772 |
Cash and cash equivalents at end of period | 66,376 | 21,442 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Operating activities | 617,703 | (90,540) |
Investing activities | (246,913) | (222,578) |
Financing activities | 76,773 | 32,639 |
Effect of exchange rates on cash and cash equivalents | (40,702) | (39,405) |
Intercompany activity | (336,702) | 275,565 |
Net (decrease) increase in cash and cash equivalents | 70,159 | (44,319) |
Cash and cash equivalents at beginning of period | 252,597 | 226,317 |
Cash and cash equivalents at end of period | $ 322,756 | $ 181,998 |