Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 29, 2019 | Aug. 09, 2019 | Dec. 29, 2018 | |
Document Entity Information [Abstract] | |||
Document Type | 10-K | ||
Entity Registrant Name | SYSCO CORP | ||
Entity Central Index Key | 0000096021 | ||
Current Fiscal Year End Date | --06-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Period End Date | Jun. 29, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 30,189,057,751 | ||
Entity Common Stock, Shares Outstanding | 513,176,946 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 513,460 | $ 552,325 |
Accounts and notes receivable, less allowances of $28,176 and $25,768 | 4,181,696 | 4,073,723 |
Inventories | 3,216,034 | 3,125,413 |
Prepaid expenses and other current assets | 210,582 | 187,880 |
Income tax receivable | 19,733 | 64,112 |
Total current assets | 8,141,505 | 8,003,453 |
Plant and equipment at cost, less accumulated depreciation | 4,501,705 | 4,521,660 |
Other long-term assets | ||
Goodwill | 3,896,226 | 3,955,485 |
Intangibles, less amortization | 857,301 | 979,812 |
Deferred income taxes | 80,760 | 83,666 |
Other assets | 489,025 | 526,328 |
Total other long-term assets | 5,323,312 | 5,545,291 |
Total assets | 17,966,522 | 18,070,404 |
Current liabilities | ||
Notes payable | 3,957 | 4,176 |
Accounts payable | 4,314,620 | 4,136,482 |
Accrued expenses | 1,729,941 | 1,608,966 |
Accrued income taxes | 17,343 | 56,793 |
Current maturities of long-term debt | 37,322 | 782,329 |
Total current liabilities | 6,103,183 | 6,588,746 |
Long-term liabilities | ||
Long-term debt | 8,122,058 | 7,540,765 |
Deferred income taxes | 172,232 | 319,124 |
Other long-term liabilities | 1,031,020 | 1,077,163 |
Total long-term liabilities | 9,325,310 | 8,937,052 |
Commitments and contingencies | ||
Noncontrolling interest | 35,426 | 37,649 |
Shareholders’ equity | ||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | 0 | 0 |
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765,175 | 765,175 |
Paid-in capital | 1,457,419 | 1,383,619 |
Retained earnings | 11,229,679 | 10,348,628 |
Accumulated other comprehensive loss | (1,599,729) | (1,409,269) |
Treasury stock at cost, 252,297,926 and 244,533,248 shares | (9,349,941) | (8,581,196) |
Total shareholders’ equity | 2,502,603 | 2,506,957 |
Total liabilities and shareholders’ equity | $ 17,966,522 | $ 18,070,404 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 28,176 | $ 25,768 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,500,000 | 1,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 765,174,900 | 765,174,900 |
Treasury stock (in shares) | 252,297,926 | 244,533,248 |
CONSOLIDATED RESULTS OF OPERATI
CONSOLIDATED RESULTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 15,315,906 | $ 14,349,504 | $ 14,411,490 | $ 14,650,424 | $ 60,113,922 | $ 58,727,324 | $ 55,371,139 |
Cost of sales | 12,495,670 | 11,903,776 | 11,993,995 | 12,311,494 | 12,399,197 | 11,673,876 | 11,712,104 | 11,856,756 | 48,704,935 | 47,641,933 | 44,813,632 |
Gross profit | 2,979,192 | 2,754,298 | 2,771,712 | 2,903,785 | 2,916,709 | 2,675,628 | 2,699,386 | 2,793,668 | 11,408,987 | 11,085,391 | 10,557,507 |
Operating expenses | 2,258,662 | 2,224,713 | 2,319,817 | 2,275,645 | 2,232,773 | 2,193,425 | 2,170,834 | 2,174,303 | 9,078,837 | 8,771,335 | 8,502,891 |
Operating income | 720,530 | 529,585 | 451,895 | 628,140 | 683,936 | 482,203 | 528,552 | 619,365 | 2,330,150 | 2,314,056 | 2,054,616 |
Interest expense | 89,780 | 94,514 | 87,113 | 89,016 | 92,468 | 136,145 | 85,986 | 80,884 | 360,423 | 395,483 | 302,878 |
Other (income) expense, net | (51,558) | 4,120 | 10,197 | 1,132 | (1,688) | (18,826) | (9,162) | (7,975) | (36,109) | (37,651) | (14,492) |
Earnings before income taxes | 682,308 | 430,951 | 354,585 | 537,992 | 593,156 | 364,884 | 451,728 | 546,456 | 2,005,836 | 1,956,224 | 1,766,230 |
Income taxes | 146,542 | (9,132) | 87,205 | 106,950 | 144,228 | 34,799 | 167,615 | 178,816 | 331,565 | 525,458 | 623,727 |
Net earnings | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 448,928 | $ 330,085 | $ 284,113 | $ 367,640 | $ 1,674,271 | $ 1,430,766 | $ 1,142,503 |
Net earnings: | |||||||||||
Basic earnings per share (in dollars per share) | $ 1.04 | $ 0.86 | $ 0.52 | $ 0.83 | $ 0.86 | $ 0.63 | $ 0.55 | $ 0.70 | $ 3.24 | $ 2.74 | $ 2.10 |
Diluted earnings per share (in dollars per share) | $ 1.03 | $ 0.85 | $ 0.51 | $ 0.81 | $ 0.85 | $ 0.63 | $ 0.54 | $ 0.69 | $ 3.20 | $ 2.70 | $ 2.08 |
Average shares outstanding (in shares) | 516,890,581 | 522,926,914 | 543,496,816 | ||||||||
Diluted shares outstanding (in shares) | 523,381,124 | 529,089,854 | 548,545,027 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Thousands | 12 Months Ended |
Jun. 29, 2019USD ($) | |
Net earnings | $ 1,674,271 |
Other comprehensive (loss) income: | |
Foreign currency translation adjustment | (119,126) |
Items presented net of tax: | |
Amortization of cash flow hedges | 8,620 |
Amortization of cash flow hedges | 8,620 |
Change in net investment hedges | 43,839 |
Change in cash flow hedges | (4,062) |
Amortization of prior service cost | 6,400 |
Amortization of actuarial loss | 26,116 |
Actuarial (loss) gain | (155,074) |
Change in marketable securities | 2,827 |
Total other comprehensive (loss) income | (190,460) |
Comprehensive income | 1,483,811 |
Cash flow hedging | |
Items presented net of tax: | |
Change in cash flow hedges | $ (4,062) |
CHANGES IN CONSOLIDATED SHAREHO
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cash flow hedging | Net investment hedging | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCash flow hedging | Accumulated Other Comprehensive LossNet investment hedging | Treasury Stock | |
Beginning balance, shareholders' equity at Jul. 02, 2016 | $ 3,479,608 | $ 765,175 | $ 1,281,140 | $ 9,006,138 | $ (1,358,118) | $ (6,214,727) | |||||
Beginning balance, shareholders' equity (in shares) at Jul. 02, 2016 | 765,174,900 | 205,577,484 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings | 1,142,503 | 1,142,503 | |||||||||
Foreign currency translation adjustment | (11,243) | (11,243) | |||||||||
Amortization of cash flow hedges, net of tax | 7,082 | $ 7,082 | 7,082 | ||||||||
Amortization of cash flow hedges, net of tax | (6,698) | $ (24,012) | $ (6,698) | $ (24,012) | |||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 32,969 | 32,969 | |||||||||
Actuarial (loss) gain | 97,283 | 97,283 | |||||||||
Change in marketable securities | 0 | ||||||||||
Dividends declared | (700,886) | (700,886) | |||||||||
Treasury stock purchases | (1,886,121) | $ (1,886,121) | |||||||||
Treasury stock purchases (in shares) | 36,224,078 | ||||||||||
Increase in ownership interest in subsidiaries | (39,991) | (39,991) | |||||||||
Share-based compensation awards | 291,022 | 86,217 | $ 204,805 | ||||||||
Share-based compensation awards (in shares) | (6,665,863) | ||||||||||
Ending balance, shareholders' equity at Jul. 01, 2017 | 2,381,516 | $ 765,175 | 1,327,366 | 9,447,755 | (1,262,737) | $ (7,896,043) | |||||
Ending balance, shareholders' equity (in shares) at Jul. 01, 2017 | 765,174,900 | 235,135,699 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Reclassification of accumulated other comprehensive loss to retained earnings | [1] | 0 | 236,445 | (236,445) | |||||||
Net earnings | 1,430,766 | 1,430,766 | |||||||||
Foreign currency translation adjustment | (22,987) | (22,987) | |||||||||
Amortization of cash flow hedges, net of tax | 8,240 | 8,240 | 8,240 | ||||||||
Amortization of cash flow hedges, net of tax | 14,343 | $ 5,791 | 14,343 | $ 5,791 | |||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 32,015 | 32,015 | |||||||||
Actuarial (loss) gain | 52,511 | 52,511 | |||||||||
Change in marketable securities | 0 | ||||||||||
Dividends declared | (735,266) | (735,266) | |||||||||
Treasury stock purchases | (956,502) | $ (956,502) | |||||||||
Treasury stock purchases (in shares) | 17,473,973 | ||||||||||
Increase in ownership interest in subsidiaries | (31,072) | (31,072) | |||||||||
Share-based compensation awards | 327,602 | 56,253 | $ 271,349 | ||||||||
Share-based compensation awards (in shares) | (8,076,424) | ||||||||||
Ending balance, shareholders' equity at Jun. 30, 2018 | 2,506,957 | $ 765,175 | 1,383,619 | 10,348,628 | (1,409,269) | $ (8,581,196) | |||||
Ending balance, shareholders' equity (in shares) at Jun. 30, 2018 | 765,174,900 | 244,533,248 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings | 1,674,271 | 1,674,271 | |||||||||
Foreign currency translation adjustment | (119,126) | (119,126) | |||||||||
Amortization of cash flow hedges, net of tax | 8,620 | 8,620 | |||||||||
Change in cash flow hedges | (4,062) | $ (4,062) | $ (4,062) | ||||||||
Change in net investment hedges | 43,839 | 43,839 | |||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 32,516 | 32,516 | |||||||||
Actuarial (loss) gain | (155,074) | (155,074) | |||||||||
Change in marketable securities | 2,827 | 2,827 | |||||||||
Dividends declared | (793,220) | (793,220) | |||||||||
Treasury stock purchases | (1,021,881) | $ (1,021,881) | |||||||||
Treasury stock purchases (in shares) | 14,960,390 | ||||||||||
Increase in ownership interest in subsidiaries | (54,877) | (54,877) | |||||||||
Share-based compensation awards | 381,813 | 128,677 | $ 253,136 | ||||||||
Share-based compensation awards (in shares) | (7,195,712) | ||||||||||
Ending balance, shareholders' equity at Jun. 29, 2019 | $ 2,502,603 | $ 765,175 | $ 1,457,419 | $ 11,229,679 | $ (1,599,729) | $ (9,349,941) | |||||
Ending balance, shareholders' equity (in shares) at Jun. 29, 2019 | 765,174,900 | 252,297,926 | |||||||||
[1] | Deferred taxes stranded in accumulated other comprehensive income (AOCI) as a result of the Tax Cuts and Jobs Act of 2017 (the Tax Act) were reclassified to retained earnings as a result of early adopting Accounting Standards Update (ASU) 2018-02. |
CHANGES IN CONSOLIDATED SHARE_2
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.33 | $ 1.53 | $ 1.41 | $ 1.30 |
CONSOLIDATED CASH FLOWS
CONSOLIDATED CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 1,674,271 | $ 1,430,766 | $ 1,142,503 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Share-based compensation expense | 104,904 | 93,841 | 83,883 |
Depreciation and amortization | 763,935 | 765,498 | 901,992 |
Amortization of debt issuance and other debt-related costs | 21,382 | 28,474 | 31,852 |
Gain on sale of business | (66,309) | 0 | 0 |
Loss on extinguishment of debt | 0 | 53,104 | 0 |
Deferred income taxes | (126,719) | 187,908 | (51,846) |
Provision for losses on receivables | 62,946 | 21,448 | 20,672 |
Other non-cash items | (3,172) | 3,986 | 6,704 |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | |||
(Increase) decrease in receivables | (203,458) | (37,457) | 20,452 |
(Increase) in inventories | (114,667) | (89,737) | (113,647) |
(Increase) decrease in prepaid expenses and other current assets | (18,535) | (19,643) | 8,158 |
Increase in accounts payable | 246,420 | 76,897 | 322,775 |
Increase (decrease) in accrued expenses | 137,517 | 47,105 | (4,476) |
Increase (decrease) in accrued income taxes | 4,929 | (10,652) | (74,590) |
(Increase) in other assets | (21,346) | (81,104) | (43,236) |
(Decrease) in other long-term liabilities | (50,891) | (315,054) | (18,629) |
Net cash provided by operating activities | 2,411,207 | 2,155,380 | 2,232,567 |
Cash flows from investing activities: | |||
Additions to plant and equipment | (692,391) | (687,815) | (686,378) |
Proceeds from sales of plant and equipment | 20,941 | 22,255 | 23,715 |
Acquisition of businesses, net of cash acquired | (106,616) | (248,105) | (2,921,798) |
Proceeds from sale of business | 149,879 | 0 | 0 |
Purchase of marketable securities | (116,440) | 0 | 0 |
Other investing activities | 1,772 | 3,252 | 6,787 |
Net cash used for investing activities | (742,855) | (910,413) | (3,577,674) |
Cash flows from financing activities: | |||
Bank and commercial paper borrowings (repayments), net | 132,100 | (119,700) | 119,700 |
Other debt borrowings | 388,180 | 1,000,599 | 753,834 |
Other debt repayments | (790,250) | (552,036) | (143,664) |
Tender and redemption premiums for senior notes | 0 | (281,762) | 0 |
Proceeds from stock option exercises | 253,135 | 268,751 | 204,805 |
Treasury stock purchases | (1,022,033) | (978,901) | (1,886,121) |
Dividends paid | (775,430) | (722,158) | (698,647) |
Other financing activities | (22,976) | (25,262) | (32,494) |
Net cash used for financing activities | (1,837,274) | (1,410,469) | (1,682,587) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (14,677) | 11,844 | (22,104) |
Net decrease in cash, cash equivalents and restricted cash | (183,599) | (153,658) | (3,049,798) |
Cash, cash equivalents and restricted cash at beginning of period | 715,844 | 869,502 | 3,919,300 |
Cash, cash equivalents and restricted cash at end of period | 532,245 | 715,844 | 869,502 |
Supplemental disclosures of cash flow information: | |||
Interest | 346,670 | 301,672 | 285,025 |
Income taxes | $ 531,103 | $ 268,384 | $ 761,384 |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | SUMMARY OF ACCOUNTING POLICIES Business and Consolidation Sysco Corporation, acting through its subsidiaries and divisions (Sysco or the company), is engaged in the marketing and distribution of a wide range of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for over 650,000 customers from 325 distribution facilities located throughout North America and Europe. Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52 -week year ended June 29, 2019 for fiscal 2019 , June 30, 2018 for fiscal 2018 and July 1, 2017 for fiscal 2017 . The accompanying financial statements include the accounts of Sysco and its consolidated subsidiaries. All significant intercompany transactions and account balances have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses. Actual results could differ from the estimates used. Cash and Cash Equivalents Cash includes cash equivalents such as cash deposits, 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, which are recorded at fair value. Accounts Receivable and Notes Receivable, Less Allowances Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts based on a combination of factors. The company utilizes specific criteria to determine uncollectible receivables to be written off including whether a customer has filed for or been placed in bankruptcy, has had accounts referred to outside parties for collection or has had accounts past due over specified periods. In these instances, a specific allowance for doubtful accounts is recorded to reduce the receivable to the net amount reasonably expected to be collected. Allowances are recorded for all other receivables based on an analysis of historical trends of write-offs and recoveries. The company utilizes arrangements to sell portions of its trade accounts receivable to third-party financial institutions on a non-recourse basis. The arrangements meet the requirements for the receivables transferred to be accounted for as sales. Proceeds from the sales are reported net of negotiated discount and are recorded as a reduction to accounts receivable outstanding in the company’s consolidated balance sheets and as cash flows from operating activities in the company’s consolidated statements of cash flows. The discounts and fees associated with these arrangements were not material for the fiscal year ended June 29, 2019 . For the fiscal year ended June 29, 2019 , Sysco sold, without recourse, $3.9 billion of accounts receivable under these arrangements. In certain instances, Sysco has continuing involvement subsequent to the transfer, limited to providing certain servicing and collection actions on behalf of the purchasers of the designated trade receivables. As of June 29, 2019, the outstanding aggregate principal amount of receivables that has been derecognized was $373.8 million . Sysco continues to service the receivables post-transfer on a non-recourse basis with no participating interest. Transfers under these arrangements are treated as a sale and are accounted for as a reduction in trade receivables because the agreements transfer effective control of the receivables to the buyer. Inventories Inventories consisting primarily of finished goods include food and related products and lodging products held for resale and are valued at the lower of cost (first-in, first-out method) and net realizable value. Elements of costs include the purchase price of the product and freight charges to deliver the product to the company’s warehouses and are net of certain cash received from vendors (see “Vendor Consideration”). Plant and Equipment Capital additions, improvements and major replacements are classified as plant and equipment and are carried at cost. Depreciation is recorded using the straight-line method, which reduces the book value of each asset in equal amounts over its estimated useful life, and is included within operating expenses in the consolidated results of operations. Maintenance, repairs and minor replacements are charged to earnings when they are incurred. Upon the disposition of an asset, its accumulated depreciation is deducted from the original cost, and any gain or loss is reflected in current earnings. Long-Lived Assets Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life based on updated projections on an undiscounted basis. For assets held for use, Sysco groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Intangibles with definite lives are amortized over their useful lives in a manner consistent with underlying cash flow, which generally ranges from two to fifteen years . Management reviews finite-lived intangibles for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the finite-lived intangibles are estimated over the intangible asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the finite-lived intangible asset may not be recoverable, the potential impairment is measured at fair value. Goodwill and Indefinite-Lived Intangibles Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. This annual testing may be performed utilizing either a qualitative or quantitative assessment; however, if a qualitative assessment is performed and it is determined that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative test is performed. For fiscal 2019 , the company utilized a qualitative assessment for certain reporting units. For the remaining reporting units, Sysco performed a quantitative test using a combination of the income and market approaches. The evaluation of fair value requires the use of projections, estimates and assumptions as to the future performance of the operations in performing a discounted cash flow analysis, as well as assumptions regarding sales and earnings multiples that would be applied in comparable acquisitions. The company does not believe the estimates used in the analysis are reasonably likely to change materially in the future, but Sysco will continue to assess the estimates in the future based on the expectations of the reporting units. In the fiscal 2019 assessment, the estimated fair values exceeded the carrying values for two reporting units by 13% and 15% , respectively, with goodwill of $226.0 million in the aggregate as of June 29, 2019 , recorded for these reporting units. Derivative Financial Instruments All derivatives are recognized as assets or liabilities within the consolidated balance sheets at fair value at their gross values. Gains or losses on derivative financial instruments designated as fair value hedges are recognized immediately in the consolidated results of operations, along with the offsetting gain or loss related to the underlying hedged item. Gains or losses on derivative financial instruments designated as cash flow hedges are recorded as a separate component of shareholders’ equity from inception of the hedges and are reclassified to the Consolidated Results of Operations in conjunction with the recognition of the underlying hedged item. For net investment hedges, the remeasurement gain or loss is recorded in AOCI and will be subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. Investments in Corporate-Owned Life Insurance Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses. Sysco has the ability and intent to hold certain of its COLI policies to maturity; therefore, the company does not record deferred tax balances related to cash surrender value gains or losses for these policies. The company invests in COLI policies relating to its executive deferred compensation plan and Supplemental Executive Retirement Plan (SERP). The total amounts related to the company’s investments in COLI policies included in other assets in the consolidated balance sheets were $168.4 million and $167.9 million at June 29, 2019 and June 30, 2018 , respectively. Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. Foreign Currency Translation The assets and liabilities of all foreign subsidiaries are translated at current exchange rates. Related translation adjustments are recorded as a component of AOCI (loss). Revenue Recognition On July 1, 2018, Sysco adopted ASC Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under ASC Topic 605, Revenue Recognition. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for fiscal 2019 as a result of applying ASC Topic 606. The accounting policies and other disclosures are below, as well as the disclosure of disaggregated revenues in Note 4 , “Revenue.” The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and, therefore, not assessed as performance obligations. Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses. Product Sales Revenues Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment. Contract Balances After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $3.9 billion and $3.8 billion as of June 29, 2019 and June 30, 2018 , respectively. Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other Assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of June 29, 2019 , Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. Vendor Consideration Sysco recognizes consideration received from vendors as a reduction to cost of sales when the services performed in connection with the monies received are completed and when the related product has been sold by Sysco. There are several types of cash consideration received from vendors. In many instances, the vendor consideration is in the form of a specified amount per case or per pound. In these instances, Sysco will recognize the vendor consideration as a reduction of cost of sales when the product is sold. Shipping and Handling Costs Shipping and handling costs include costs associated with the selection of products and delivery to customers. Included in operating expenses are shipping and handling costs of approximately $3.5 billion , $3.6 billion and $3.4 billion in fiscal 2019 , 2018 and 2017 , respectively. Insurance Program Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. In fiscal 2018, Sysco created a wholly owned captive insurance subsidiary (the Captive) with the primary purpose to enhance Sysco’s risk financing strategies by providing Sysco the opportunity to negotiate insurance premiums in the non-retail insurance market. The Captive must maintain a sufficient level of cash to fund future reserve payments and secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. The Captive holds restricted assets in order to meet solvency requirements, including a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale, and cash and restricted cash equivalents held in a cash deposit account. Further, Sysco has letters of credit available to collateralize the remaining liabilities not covered by restricted cash, restricted cash equivalents and marketable securities. The company also maintains a fully self-insured group medical program. Liabilities associated with these risks are estimated in part by considering historical claims experience, medical cost trends, demographic factors, severity factors and other actuarial assumptions. Share-Based Compensation Sysco recognizes expense for its share-based compensation based on the fair value of the awards that are granted. The fair value of performance share unit awards is determined based on the target number of shares of common stock and the company’s stock price on the date of grant and subsequently adjusted based on actual and forecasted performance compared to planned targets. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company’s stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. The method for estimating the fair value of stock options has not changed in the past three years. During the vesting period, Sysco reduces share-based compensation expense for estimated forfeitures, which is based on analysis of historical trends reviewed on an annual basis. Sysco’s estimate of forfeitures is applied at the grant level. The estimate of forfeitures is trued up to actual forfeitures at the end of each vesting period. Income Taxes Sysco recognizes deferred tax assets and liabilities based on the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. The additional U.S. federal tax burden as a result of the global intangible low taxed income (GILTI) regime is accounted for as a periodic cost. The determination of the company’s provision for income taxes requires significant judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes primarily reflects a combination of income earned and taxed in the various United States (U.S.) federal and state, as well as various foreign jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is preliminarily allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. Subsequent changes to preliminary amounts are made prospectively. Basis of Presentation The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income, changes in consolidated shareholders’ equity 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. Sysco has interests in various jointly owned foodservice operations in Mexico, Panama and Sweden for which it consolidates the results of the operations; therefore, the financial position, results of operations and cash flows for these companies have been included in Sysco’s consolidated financial statements. The value of the noncontrolling interest in each entity is considered redeemable due to certain features of the investment agreement and has, therefore, been presented as mezzanine equity, which is outside of permanent equity, in the consolidated balance sheets. The income attributable to the noncontrolling interest is located within Other expense (income), net, in the consolidated results of operations, as this amount is not material. The non-cash add back for the change in the value of the noncontrolling interest is located within Other non-cash items on the consolidated cash flows. Reclassifications Prior year amounts have been reclassified to conform with the current year presentation. Supplemental Cash Flow Information Within the Consolidated Statement of Cash Flows, certain items have been grouped as other financing activities. These primarily includes cash paid for shares withheld to cover taxes from share-based compensation and debt issuance costs. The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Balance Sheets: Jun. 29, 2019 Jun. 30, 2018 Jul. 1, 2017 (In thousands) Cash and cash equivalents $ 513,460 $ 552,325 $ 869,502 Restricted cash (1) 18,785 163,519 — Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 532,245 $ 715,844 $ 869,502 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
CHANGES IN ACCOUNTING
CHANGES IN ACCOUNTING | 12 Months Ended |
Jun. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
CHANGES IN ACCOUNTING | CHANGES IN ACCOUNTING Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018, using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for fiscal 2019. Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments , to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for fiscal 2019. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits ( Topic 715 ): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $35.5 million for fiscal 2019 being reported in Other expense (income), net that would have previously been included in Operating expenses. The ASU was applied retrospectively, resulting in a net benefit of $14.9 million for fiscal 2018 and a net cost of $1.4 million for fiscal 2017, reported in Other expense (income), net. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 12 Months Ended |
Jun. 29, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases, and has issued subsequent amendments to Topic 842. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco. To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company has substantially completed its assessment of the accounting required under Topic 842 and the estimated impact upon adoption. To facilitate the adoption of the provisions of the new standard, the company has implemented a third-party lease accounting software. The company adopted this standard on June 30, 2019, the first day of fiscal 2020. The company will elect the package of practical expedients permitted under the transition guidance within Topic 842, which, among other things, allows the company to carry forward historical lease classifications. The estimated impact of the adoption to the Sysco’s consolidated financial statements includes the recognition of right-of-use assets and liabilities of between $500 million to $600 million related to operating leases as of June 30, 2019. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Sales The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 52-Week Period Ended Jun. 29, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,422,126 $ 1,627,392 $ 1,520,907 $ — $ 11,570,425 Canned and dry products 7,344,015 2,326,584 270,651 — 9,941,250 Frozen fruits, vegetables, bakery and other 5,708,030 2,074,991 1,194,944 — 8,977,965 Dairy products 4,265,320 1,243,773 604,624 — 6,113,717 Poultry 4,121,367 833,844 892,316 — 5,847,527 Fresh produce 3,801,828 1,022,503 241,602 — 5,065,933 Paper and disposables 2,797,521 369,329 731,511 61,908 3,960,269 Seafood 2,550,524 717,703 113,746 — 3,381,973 Beverage products 1,127,701 531,247 563,401 86,845 2,309,194 Other (1) 1,149,756 745,674 110,626 939,613 2,945,669 Total Sales $ 41,288,188 $ 11,493,040 $ 6,244,328 $ 1,088,366 $ 60,113,922 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 52-Week Period Ended Jun. 30, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,123,565 $ 1,666,247 $ 1,523,029 $ — $ 11,312,841 Canned and dry products 7,093,691 2,367,921 327,785 — 9,789,397 Frozen fruits, vegetables, bakery and other 5,327,020 2,538,265 1,160,369 — 9,025,654 Poultry 4,020,340 833,917 1,125,085 — 5,979,342 Dairy products 4,136,973 1,260,354 640,482 — 6,037,809 Fresh produce 3,642,247 1,031,796 255,192 — 4,929,235 Paper and disposables 2,639,280 400,345 739,074 59,166 3,837,865 Seafood 2,449,741 726,010 104,459 — 3,280,210 Beverage products 1,107,574 196,379 576,359 84,868 1,965,180 Other (1) 1,101,832 497,331 105,199 865,429 2,569,791 Total Sales $ 39,642,263 $ 11,518,565 $ 6,557,033 $ 1,009,463 $ 58,727,324 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 52-Week Period Ended Jul. 1, 2017 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 7,643,653 $ 1,547,790 $ 1,414,235 $ — $ 10,605,678 Canned and dry products 6,812,689 1,567,714 315,426 — 8,695,829 Frozen fruits, vegetables, bakery and other 4,976,547 2,393,206 1,074,507 — 8,444,260 Poultry 3,939,048 886,528 1,048,368 — 5,873,944 Dairy products 3,870,052 1,102,625 637,424 — 5,610,101 Fresh produce 3,399,043 1,043,636 258,761 — 4,701,440 Paper and disposables 2,473,005 374,379 689,772 59,314 3,596,470 Seafood 2,358,819 633,304 97,227 — 3,089,350 Beverage products 1,077,680 353,305 548,607 79,861 2,059,453 Other (1) 1,054,162 710,572 94,582 835,298 2,694,614 Total Sales $ 37,604,698 $ 10,613,059 $ 6,178,909 $ 974,473 $ 55,371,139 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 29, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS During fiscal 2019 , the company paid cash of $106.6 million for acquisitions. These acquisitions did not have a material effect on the company’s operating results, cash flows or financial position. Certain 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 achieved. As of June 29, 2019 , aggregate contingent consideration outstanding was $18.9 million , of which $14.2 million was recorded as earnout liabilities. Brakes Group On July 5, 2016, Sysco consummated its acquisition of Cucina Lux Investments Limited (a private company limited by shares organized under the laws of England and Wales), a holding company of the Brakes Group, pursuant to an agreement for the sale and purchase of securities in the capital of the Brakes Group, dated as of February 19, 2016, by and among Sysco, entities affiliated with Bain Capital Investors, LLC, and members of management of the Brakes Group (the Brakes Acquisition). The company paid cash of $2.9 billion , net of cash acquired, for the Brakes Acquisition. Following the closing of the Brakes Acquisition, the Brakes Group became a wholly owned subsidiary of Sysco. Purchase accounting for this acquisition was finalized in fiscal 2017. The Brakes Group is a large European foodservice business supplying fresh, refrigerated and frozen food products, as well as non-food products and supplies, to foodservice customers ranging from large customers, including leisure, pub, restaurant, hotel and contract catering groups, to smaller customers, including independent restaurants, hotels, fast food outlets, schools and hospitals. The Brakes Group’s largest businesses are in the U.K., France, Ireland and Sweden, in addition to a presence in Belgium, Spain and Luxembourg. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 29, 2019 | |
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 cash deposits, 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. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value: • Cash deposits included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 1 measurement in the tables below. • 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 as Level 1 measurements in the tables below. • Fixed income securities are valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. • The interest rate swap agreements 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. • The foreign currency swap agreements, including cross-currency swaps, are valued using a swap valuation model that utilizes an income approach applying observable market inputs, including interest rates, LIBOR swap rates for U.S. dollars, Canadian dollars, pound sterling and euro currencies, and credit default swap rates. • Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments. • Fuel swap contracts are valued based on observable market transactions of forward commodity prices. The fair value of the company’s marketable securities are all measured using inputs that are considered a Level 2 measurement, as they are actively traded and are valued using quoted market prices in active markets. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 7 , “Marketable Securities.” The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 11 , “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of June 29, 2019 and June 30, 2018 : Assets and Liabilities Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 72,824 $ 200 $ — $ 73,024 Other assets (1) 18,785 — — 18,785 Total assets at fair value $ 91,609 $ 200 $ — $ 91,809 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 169,214 $ 30,190 $ — $ 199,404 Other assets (1) 163,519 — — 163,519 Total assets at fair value $ 332,733 $ 30,190 $ — $ 362,923 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. 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 issues or on the current rates offered to the company for new debt with the same maturities as existing debt, and is considered a Level 2 measurement. The fair value of total debt was approximately $8.6 billion and $8.4 billion as of June 29, 2019 and June 30, 2018 , respectively. The carrying value of total debt was $8.2 billion and $8.3 billion as of June 29, 2019 and June 30, 2018 , respectively. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Jun. 29, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES In March 2019, Sysco began to invest a portion of the assets held by its wholly owned captive insurance subsidiary in a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale. The company includes fixed income securities maturing in less than twelve months within Prepaid expenses and other current assets and includes fixed income securities maturing in more than twelve months within Other assets in the accompanying Consolidated Balance Sheets. The company records the amounts at fair market value, which is determined using quoted market prices at the end of the reporting period. Unrealized gains and losses on marketable securities are recorded in Accumulated other comprehensive loss. The following table presents the company’s available-for-sale marketable securities as of June 29, 2019 : June 29, 2019 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-Term Marketable Securities Long-Term Marketable Securities (in thousands) Fixed income securities: Corporate bonds $ 87,540 $ 1,734 $ — $ 89,274 $ 12,006 $ 77,268 Government bonds 28,900 1,845 — 30,745 — 30,745 Total marketable securities $ 116,440 $ 3,579 $ — $ 120,019 $ 12,006 $ 108,013 The fixed income securities held at June 29, 2019 had effective maturities ranging from less than one year to approximately eleven years . The company did not realize any gains or losses on its marketable securities during fiscal 2019 . |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Jun. 29, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS A summary of the activity in the allowance for doubtful accounts appears below: 2019 2018 2017 (In thousands) Balance at beginning of period $ 25,768 $ 31,059 $ 37,880 Charged to costs and expenses 62,946 21,448 20,672 Customer accounts written off, net of recoveries (64,219 ) (27,120 ) (26,943 ) Other adjustments 3,681 381 (550 ) Balance at end of period $ 28,176 $ 25,768 $ 31,059 |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | PLANT AND EQUIPMENT A summary of plant and equipment, including the related accumulated depreciation, appears below: Jun. 29, 2019 Jun. 30, 2018 Estimated Useful Lives (In thousands) Plant and equipment at cost: Land $ 498,180 $ 495,909 Buildings and improvements 4,545,099 4,268,687 10-30 years Fleet and equipment 3,697,008 3,808,133 3-10 years Computer hardware and software 1,213,942 1,628,121 3-7 years Total plant and equipment at cost 9,954,229 10,200,850 Accumulated depreciation (5,452,524 ) (5,679,190 ) Total plant and equipment, net $ 4,501,705 $ 4,521,660 Depreciation expense, including amortization of capital leases, was $656.6 million in 2019 , $614.8 million in 2018 and $765.4 million in 2017 . In fiscal 2019 , Sysco recognized $39.3 million in accelerated depreciation, including facilities and equipment, due to restructuring in Europe and certain ERP systems and software platforms that the company is no longer using in the U.S. In fiscal 2017, Sysco reported accelerated depreciation of $111.3 million |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES The changes in the carrying amount of goodwill by reportable segment for the years presented are as follows: U.S. Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Carrying amount as of July 1, 2017 $ 1,231,045 $ 2,432,508 $ 32,607 $ 219,968 $ 3,916,128 Goodwill acquired during year 36,020 20,648 — — 56,668 Currency translation/other (6,165 ) (12,335 ) — 1,189 (17,311 ) Carrying amount as of June 30, 2018 $ 1,260,900 $ 2,440,821 $ 32,607 $ 221,157 $ 3,955,485 Goodwill acquired during year 10,428 9,127 — — 19,555 Currency translation/other (5,843 ) (74,016 ) — 1,045 (78,814 ) Carrying amount as of June 29, 2019 $ 1,265,485 $ 2,375,932 $ 32,607 $ 222,202 $ 3,896,226 Amortizable intangible assets acquired during fiscal 2019 were $14.4 million , with a weighted-average amortization period of 8.0 years . Amortizable intangible assets acquired during fiscal 2019 by category were customer relationships, non-compete, and amortized trademarks of $10.6 million , $1.6 million , and $2.2 million respectively, with a weighted-average amortization period of 7.0 years , 5.0 years , and 15.0 years respectively. Fully amortized intangible assets have been removed in the period fully amortized in the table below, which presents the company’s amortizable intangible assets in total by category as follows: Jun. 29, 2019 Jun. 30, 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Customer relationships $ 1,052,608 $ (358,592 ) $ 694,016 $ 1,119,136 $ (307,408 ) $ 811,728 Non-compete agreements 11,827 (8,556 ) 3,271 31,754 (28,819 ) 2,935 Trademarks 14,785 (5,736 ) 9,049 10,073 (7,058 ) 3,015 Other 185 (148 ) 37 13,623 (13,548 ) 75 Total amortizable intangible $ 1,079,405 $ (373,032 ) $ 706,373 $ 1,174,586 $ (356,833 ) $ 817,753 The table below presents the company’s indefinite-lived intangible assets by category as follows: Jun. 29, 2019 Jun. 30, 2018 (In thousands) Trademarks $ 149,962 $ 161,093 Licenses 966 966 Total indefinite-lived intangible assets $ 150,928 $ 162,059 Amortization expense for 2019 , 2018 and 2017 was $92.3 million , $114.7 million and $112.9 million , respectively. The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 29, 2019 is shown below: Amount (In thousands) 2020 $ 94,898 2021 92,562 2022 90,728 2023 87,552 2024 84,279 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Sysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk. Hedging of interest rate risk Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In December 2018, the company entered into an interest rate swap agreement that effectively converted €500.0 million of fixed rate debt maturing in 2023 to floating rate debt. Hedging of foreign currency risk Sysco enters into cross-currency swap contracts to hedge the foreign currency transaction risk of certain intercompany loans. There are no credit-risk related contingent features associated with these swaps, which have been designated as cash flow hedges. The company also uses cross-currency swap contracts and euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, U.S. dollar, Polish zloty and Danish krone. These inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. The company enters into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases. Hedging of fuel price risk Sysco utilizes fuel commodity swap contracts to hedge against the risk of the change in the price of diesel on anticipated future purchases. These swaps have been designated as cash flow hedges. None of the company’s hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of June 29, 2019 are below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk October 2020 U.S. Dollar 750 July 2021 U.S. Dollar 500 June 2023 Euro 500 March 2025 U.S. Dollar 500 Hedging of foreign currency risk Various (July 2019 to October 2019) Swedish Krona 229 Various (July 2019 to December 2019) British Pound Sterling 13 June 2021 Canadian Dollar 235 July 2021 British Pound Sterling 234 August 2021 British Pound Sterling 466 June 2023 Euro 500 Hedging of fuel risk Various (June 30, 2019 to June 2020) Gallons 51 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of June 29, 2019 and June 30, 2018 are as follows: Derivative Fair Value Balance Sheet Location Jun. 29, 2019 Jun. 30, 2018 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 37,396 $ — Interest rate swaps Other current liabilities — 6,820 Interest rate swaps Other long-term liabilities 9,285 49,734 Cash Flow Hedges: Fuel Swaps Other current assets $ 154 $ 15,316 Foreign currency forwards Other current assets 624 693 Cross currency swaps Other current assets — 4,284 Fuel swaps Other assets 136 — Cross currency swaps Other assets 8,592 3,454 Fuel Swaps Other current liabilities 6,537 — Foreign currency forwards Other current liabilities 162 71 Fuel swaps Other long-term liabilities 239 — Cross currency swaps Other long-term liabilities — 14,201 Net Investment Hedges: Foreign currency swaps Other assets $ 18,614 $ 10,709 Foreign currency swaps Other long-term liabilities 9,973 39,690 The location and amount of gains or losses recognized in the consolidated results of operations for fair value and cash flow hedging relationships for each of the periods, presented on a pretax basis, are as follows: 2019 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 48,704,935 $ 9,078,837 $ 360,423 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (143,711 ) Derivatives designated as hedging instruments — — 68,689 (1) The hedged total includes interest expense of $62.4 million and change in fair value of debt of $81.3 million . 2018 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 47,641,933 $ 8,771,335 $ 395,483 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (30,418 ) Derivatives designated as hedging instruments — — (39,540 ) (1) The hedged total includes interest expense of $63.5 million and change in fair value of debt of $33.1 million . The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended June 29, 2019 and June 30, 2018, presented on a pretax basis, are as follows: 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (22,100 ) Operating expense $ 8,180 Foreign currency contracts 16,706 Cost of goods sold 509 Total $ (5,394 ) $ 8,689 Derivatives in net investment hedging relationships: Foreign currency contracts $ 42,488 N/A $ — Foreign denominated debt 15,650 N/A — Total $ 58,138 $ — 2018 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ 21,878 Operating expense $ 13,983 Foreign currency contracts 1,118 Cost of goods sold 1,776 Total $ 22,996 $ 15,759 Derivatives in net investment hedging relationships: Foreign currency contracts $ (20,584 ) N/A $ — Foreign denominated debt (12,700 ) N/A — Total $ (33,284 ) $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 29, 2019 are as follows: Jun. 29, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,311,636 ) $ (28,616 ) The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 30, 2018 are as follows: Jun. 30, 2018 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (499,610 ) $ 5,097 Long-term debt (1,743,732 ) 47,555 |
SELF-INSURED LIABILITIES
SELF-INSURED LIABILITIES | 12 Months Ended |
Jun. 29, 2019 | |
Loss Contingency [Abstract] | |
SELF-INSURED LIABILITIES | SELF-INSURED LIABILITIES Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. A summary of the activity in self-insured liabilities appears below: 2019 2018 2017 (In thousands) Balance at beginning of period $ 270,986 $ 245,811 $ 199,059 Charged to costs and expenses 492,411 461,867 523,674 Payments (465,580 ) (436,692 ) (476,922 ) Balance at end of period $ 297,817 $ 270,986 $ 245,811 The long-term portion of the self-insured liability balance was $183.6 million and $167.1 million as of June 29, 2019 , and June 30, 2018 , respectively. |
DEBT AND OTHER FINANCING ARRANG
DEBT AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER FINANCING ARRANGEMENTS | DEBT AND OTHER FINANCING ARRANGEMENTS Sysco’s debt consists of the following: Jun. 29, 2019 Jun. 30, 2018 (In thousands) Commercial paper, interest at 2.56% as of June 29, 2019 $ 132,081 $ — Senior notes, interest at 1.90%, maturing in fiscal 2019 (1) — 491,700 Senior notes, interest at 5.375%, maturing in fiscal 2019 (1) — 249,701 Senior notes, interest at 2.60%, maturing in fiscal 2021 (1) 744,034 724,047 Senior notes, interest at 2.50%, maturing in fiscal 2022 (1) 494,814 477,411 Senior notes, interest at 2.60%, maturing in fiscal 2022 (1) 447,509 446,681 Senior notes, interest at 1.25%, maturing in fiscal 2023 (1) 576,771 580,196 Senior notes, interest at 3.55%, maturing in fiscal 2025 (1) 521,490 492,606 Senior notes, interest at 3.65%, maturing in fiscal 2025 (1) 379,658 — Senior notes, interest at 3.75%, maturing in fiscal 2026 (1) 747,330 746,879 Senior notes, interest at 3.30%, maturing in fiscal 2027 (1) 993,084 992,176 Debentures, interest at 7.16%, maturing in fiscal 2027 (2) 44,272 44,276 Senior notes, interest at 3.25%, maturing in fiscal 2028 (1) 743,304 742,555 Debentures, interest at 6.50%, maturing in fiscal 2029 (2) 162,150 162,276 Senior notes, interest at 5.375%, maturing in fiscal 2036 (1) 382,250 382,010 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1) 199,198 201,766 Senior notes, interest at 4.85%, maturing in fiscal 2046 (1) 495,860 495,709 Senior notes, interest at 4.50%, maturing in fiscal 2046 (1) 494,215 494,090 Senior notes, interest at 4.45%, maturing in fiscal 2048 (1) 492,579 493,165 Notes payable, capital leases, and other debt, interest averaging 4.99% and maturing at various dates to fiscal 2031 as of June 29, 2019 and 6.33% and maturing at various dates to fiscal 2026 as of June 30, 2018 112,738 110,026 Total debt 8,163,337 8,327,270 Less current maturities of long-term debt (37,322 ) (782,329 ) Less notes payable (3,957 ) (4,176 ) Net long-term debt $ 8,122,058 $ 7,540,765 (1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption. (2) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. As of June 29, 2019 , the principal payments required to be made during the next five fiscal years on long-term debt, excluding notes payable and commercial paper, are shown below: Amount (In thousands) 2020 $ 35,197 2021 775,518 2022 967,931 2023 581,225 2024 8,352 In June 2019, the company’s then-current long-term revolving credit facility was terminated and a new facility in the amount of $2.0 billion was established. The new facility expires on June 28, 2024 , subject to extension. As of June 29, 2019 , there were no amounts outstanding under this facility. Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2 billion . As of June 29, 2019 , there were $132.1 million in 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 52 weeks of 2019 , aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from zero to approximately $1.1 billion . Senior notes offering On September 25, 2018 , Sysco’s wholly owned subsidiary, Sysco Canada Inc. (Sysco Canada), issued senior notes totaling CDN $500.0 million . The senior notes were issued in Canada with a coupon rate of 3.65% and pricing, as a percentage of par, of 99.962% . Net proceeds from the offering were used to repay internal debt that was created in fiscal 2018 when the company repatriated earnings from its Canadian operations back to Sysco Corporation, and to repay outstanding borrowings under Sysco’s commercial paper program, along with other general corporate purposes. Interest on the senior notes will be paid semi-annually on April 25 and October 25, and began on April 25, 2019. At Sysco Canada’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 Canada elects to redeem the senior notes before the date that is two months prior to the maturity date, Sysco Canada will pay an amount equal to the greater of (1) 100% of the principal amount of the senior notes to be redeemed; or (2) the applicable yield price, plus, in either case, any accrued and unpaid interest on the senior notes to be redeemed to the date of redemption. If Sysco Canada elects to redeem a series of senior notes on or after the applicable date described in the preceding sentence, Sysco Canada will pay an amount equal to 100% of the principal amount of the senior notes to be redeemed plus accrued and unpaid interest on the senior notes redeemed to the redemption date. Senior notes and debentures redemption related to the tender offer Sysco used a portion of the net proceeds of its March 2018 senior notes offering to fund the fiscal 2018 purchase, pursuant to a tender offer, of $230.5 million in combined aggregate principal amount of the following securities: its 7.160% debentures due 2027, its 6.500% debentures due 2028, its 5.375% senior notes due 2035 and its 6.625% senior notes due 2039. Holders of securities received an early tender payment of $50 per $1,000 principal amount of securities. Holders of such securities also received accrued and unpaid interest from, and including, the last interest payment date for their tendered securities, but not including, the early settlement date, which was March 23, 2018. The tender offer transaction was considered to be a debt extinguishment. As such, Sysco recognized a loss on extinguishment of $53.1 million in fiscal 2018, which was recorded as a component of interest expense in the accompanying consolidated results of operations. Of this loss, $51.2 million was attributable to the purchase premium paid to the lenders, $1.1 million was attributable to the write-off of unamortized debt issuance costs associated with the redeemed debentures and notes, and $0.8 million was attributable to an accelerated charge on the debt discount related to these debentures and notes. In April 2019, Sysco repaid 1.90% senior notes totaling $500.0 million at maturity utilizing a combination of cash flow from operations and commercial paper issuances. In March 2019, Sysco repaid 5.375% senior notes totaling $250.0 million at maturity utilizing a combination of cash flow from operations and commercial paper issuances. As of June 29, 2019 and June 30, 2018 , letters of credit outsta nding were $226.0 million and $221.7 million , respectively. |
LEASES
LEASES | 12 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Sysco has obligations under capital and operating leases for certain distribution facilities, vehicles, equipment and computers. Total rental expense under operating leases was $205.5 million , $184.1 million , and $170.5 million in fiscal 2019 , 2018 and 2017 , respectively. Contingent rentals, subleases and assets and obligations under capital leases are not significant. Aggregate minimum lease payments by fiscal year under existing operating leases are as follows: Amount (In thousands) 2020 $ 107,492 2021 99,232 2022 73,249 2023 58,287 2024 39,158 Thereafter 266,445 |
COMPANY-SPONSORED EMPLOYEE BENE
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. Defined Contribution Plans The company operates a defined contribution 401(k) Plan as a Safe Harbor Plan, which is a plan that treats all employees’ benefits equally within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose unions adopted the Safe Harbor Plan provisions. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pretax contribution on the first 6% of the participant’s compensation contributed by the participant. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan provides that under certain circumstances the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. The company also has a non-qualified, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the Management Incentive Plan (MIP). Participants may defer up to 50% of their annual salary and up to 90% of their annual bonus. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pretax contribution on the first 6% of the participant’s eligible compensation that is deferred. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts contributed by the company to the participant’s 401(k) account. Sysco’s expense related to its defined contribution plans was $150.4 million in fiscal 2019 , $151.0 million in fiscal 2018 , and $ 141.2 million in fiscal 2017 . Defined Benefit Plans Sysco maintains various qualified pension plans that pay benefits to participating employees at retirement, using formulas based on a participant’s years of service and compensation. The U.S. pension plan (U.S. Retirement Plan) is frozen for all U.S.-based salaried and non-union hourly employees, as these employees are eligible for benefits under the company’s defined contribution 401(k) plan. Various defined benefit pension plans cover certain employees, primarily in the U.K., France and Sweden; however, the U.K. pension plan (U.K. Retirement Plan) is frozen to new plan participants and future accrual of benefits. The funding policy for each plan complies with the requirements of relevant governmental laws and regulations. In addition to receiving benefits upon retirement under the company’s U.S. Retirement Plan, certain key management personnel who were participants in the MIP are entitled to receive benefits under the SERP. This plan is a nonqualified, unfunded supplementary retirement plan. This plan is frozen to all participants, and current MIP participants are eligible to participate in the MSP. The company also provides certain health care benefits to eligible retirees and their dependents. These health care benefits represent Sysco’s unfunded other post-retirement medical plans. The plan had benefit obligations of $10.8 million as of June 29, 2019 and $14.3 million as of June 30, 2018 . Funded Status Accumulated pension assets measured against the obligation for pension benefits represents the funded status of a given plan. The funded status of Sysco’s company-sponsored defined benefit plans is presented in the table below. The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. U.S. Pension Benefits International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 4,043,011 $ 4,224,231 $ 399,000 $ 420,735 Service cost 13,977 14,514 2,790 3,219 Interest cost 172,213 173,827 10,637 10,667 Amendments — — 3,050 (4,624 ) Plan Combinations — — 173 — Actuarial (gain) loss, net 439,082 (89,253 ) 20,783 (21,162 ) Total disbursements (130,635 ) (280,308 ) (14,398 ) (13,817 ) Exchange rate changes — — (15,338 ) 3,982 Benefit obligation at end of year 4,537,648 4,043,011 406,697 399,000 Change in plan assets: Fair value of plan assets at beginning of year 3,666,408 3,341,662 258,028 259,372 Actual return on plan assets 418,789 196,051 23,765 897 Employer contribution 29,592 409,003 7,612 7,960 Total disbursements (130,635 ) (280,308 ) (14,398 ) (13,817 ) Exchange rate changes — — (10,261 ) 3,616 Fair value of plan assets at end of year 3,984,154 3,666,408 264,746 258,028 Funded status at end of year $ (553,494 ) $ (376,603 ) $ (141,951 ) $ (140,972 ) As of June 29, 2019 and June 30, 2018 , the SERP had benefit obligations of $468.0 million and $440.5 million , respectively. In order to meet a portion of its obligations under the SERP, Sysco has a rabbi trust that invests in COLI policies on the lives of participants and interests in corporate-owned real estate assets. These assets are not included as plan assets or in the funded status amounts in the tables above and below. The life insurance policies on the lives of the participants had carrying values of $97.7 million as of June 29, 2019 and $96.5 million as of June 30, 2018 . Sysco is the sole owner and beneficiary of such policies. The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: U.S. Pension Benefits International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Noncurrent assets (Other assets) $ — $ 63,945 $ — $ — Current accrued benefit liability (Accrued expenses) (31,652 ) (31,313 ) (1,285 ) (1,280 ) Noncurrent accrued benefit liability (Other long-term liabilities) (521,842 ) (409,235 ) (140,666 ) (139,692 ) Net amount recognized $ (553,494 ) $ (376,603 ) $ (141,951 ) $ (140,972 ) Accumulated other comprehensive loss (income) as of June 29, 2019 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 10,790 $ (588 ) $ 10,202 Actuarial losses (gains) 1,599,539 (33,008 ) 1,566,531 Total $ 1,610,329 $ (33,596 ) $ 1,576,733 Accumulated other comprehensive loss (income) as of June 30, 2018 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 19,170 $ 2,679 $ 21,849 Actuarial losses (gains) 1,434,160 (26,106 ) 1,408,054 Total $ 1,453,330 $ (23,427 ) $ 1,429,903 The accumulated benefit obligation, which does not consider any salary increases for the remaining active union employees in the U.S. Retirement Plan was $4.9 billion and $4.4 billion as of June 29, 2019 and June 30, 2018 , respectively. Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: U.S. Pension Benefits (1) International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 4,524,513 $ 4,034,383 $ 399,966 $ 392,457 Fair value of plan assets at end of year 3,984,154 3,666,408 264,746 258,028 (1) Information under Pension Benefits as of June 29, 2019 and June 30, 2018 includes both the U.S. Retirement Plan and the SERP. Components of Net Benefit Costs and Other Comprehensive Income The components of net company-sponsored pension costs for each fiscal year are as follows: 2019 2018 2017 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Service cost $ 13,977 $ 2,790 $ 14,514 $ 3,219 $ 14,287 $ 2,880 Interest cost 172,213 10,637 173,827 10,667 171,282 9,951 Expected return on plan assets (180,624 ) (11,072 ) (233,987 ) (11,653 ) (222,699 ) (10,033 ) Amortization of prior service cost 8,380 (202 ) 9,460 (2,003 ) 11,202 (1 ) Amortization of actuarial loss 35,537 (98 ) 35,696 (67 ) 41,511 (38 ) Curtailment loss — — — — — (611 ) Settlement loss (gain) recognized — 109 — 16 — — Net pension (benefits) costs $ 49,483 $ 2,164 $ (490 ) $ 179 $ 15,583 $ 2,148 The components of net company-sponsored pension costs other than the service cost component are reported in Other expense (income), net within the consolidated results of operations. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: 2019 2018 2017 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Amortization of prior service cost $ 8,380 $ (202 ) $ 9,460 $ (2,003 ) $ 11,202 $ (1 ) Amortization of actuarial loss 35,537 11 35,696 (51 ) 41,511 (38 ) Prior service cost arising in current year — (3,050 ) — 4,624 (925 ) 110 Effect of exchange rates on amounts in AOCI — 1,163 — (583 ) — (1,269 ) Actuarial gain (loss) arising in current year (163,588 ) (8,090 ) 51,318 10,406 197,871 (34,623 ) Net pension costs $ (119,671 ) $ (10,168 ) $ 96,474 $ 12,393 $ 249,659 $ (35,821 ) Amounts included in accumulated other comprehensive loss (income) as of June 29, 2019 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2020 are: U.S. Pension Benefits International Pension Benefits Total (In thousands) Amortization of prior service cost $ 7,537 $ (82 ) $ 7,455 Amortization of actuarial losses (gains) 39,483 133 39,616 Total $ 47,020 $ 51 $ 47,071 Employer Contributions The company made cash contributions to its company-sponsored pension plans of $37.2 million and $415.0 million in fiscal years 2019 and 2018 , respectively. There were no contributions made to the U.S. Retirement Plan in fiscal 2019 , as there were no required contributions to meet ERISA minimum funding requirements in fiscal 2019 . There are no required contributions to the U.S. Retirement Plan to meet ERISA minimum funding requirements in fiscal 2020 . The company’s contributions to the SERP plan are made in the amounts needed to fund current year benefit payments. The estimated aggregate fiscal 2020 contribution to fund benefit payments for the SERP plan is $31.7 million . The estimated fiscal 2020 contributions to fund benefit payments for the international retirement plans are $7 million . Estimated Future Benefit Payments Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: U.S. Pension Benefits International Pension Benefits (In thousands) 2020 $ 149,999 $ 9,938 2021 160,568 11,240 2022 171,171 11,481 2023 181,811 12,707 2024 191,850 14,280 Subsequent five years 1,097,454 86,099 Assumptions Weighted-average assumptions used to determine benefit obligations as of year-end were: Jun. 29, 2019 Jun. 30, 2018 Discount rate — U.S. Retirement Plan 3.70 % 4.28 % Discount rate — SERP 3.62 4.41 Discount rate — U.K. Retirement Plan 2.30 2.85 Rate of compensation increase — U.S. Retirement Plan 2.56 2.62 As benefit accruals under the SERP and U.K. Retirement Plan are frozen, future pay is not projected in the determination of the benefit obligation as of June 29, 2019 or June 30, 2018 . Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were: 2019 2018 2017 Discount rate — U.S. Retirement Plan 4.28 % 4.19 % 4.07 % Discount rate — SERP 4.41 4.08 3.91 Discount rate — U.K. Retirement Plan 2.85 2.60 2.80 Expected rate of return — U.S. Retirement Plan 5.00 7.00 7.25 Expected rate of return — U.K. Retirement Plan 4.55 4.55 4.15 Rate of compensation increase — U.S. Retirement Plan 2.62 2.62 2.62 For guidance in determining the discount rate for U.S. defined benefit plans, Sysco calculates the implied rate of return on a hypothetical portfolio of high-quality fixed-income investments for which the timing and amount of cash outflows approximates the estimated payouts of the company-sponsored pension plans. Sysco uses an annualized corporate bond yield curve to estimate the rate at which pension benefits could effectively be settled to estimate a discount rate for the U.K. Retirement Plan. The discount rate assumption is updated annually and revised as deemed appropriate. The discount rates to be used for the calculation of fiscal 2020 net company-sponsored benefit costs for the U.S. Retirement Plan and U.K. Retirement Plan are 3.70% and 2.30% , respectively. The discount rate to be used for the calculation of fiscal 2020 net company-sponsored benefit costs for the SERP is 3.62% . The expected long-term rate of return on plan assets assumption for the retirement plans are net return on assets assumption, representing gross return on assets less asset management expenses. Specific to the U.S. Retirement Plan, administrative expenses are also excluded from the gross return on assets. The expected return for the U.S. Retirement Plan is derived from a mathematical asset model that incorporates assumptions as to the various asset class returns, reflecting a combination of rigorous historical performance analysis and the forward-looking views of the financial markets regarding the yield on bonds, the historical returns of the major stock markets and returns on alternative investments. The expected return for the U.K. Retirement Plan is derived from a long-term swap yield time horizon adjusted for the expected return based on the plan’s current asset allocation and historical results. The rate of return assumption is reviewed annually and revised as deemed appropriate. The expected long-term rate of return to be used in the calculation of fiscal 2020 net company-sponsored benefit costs for the U.S. Retirement Plan and U.K. Retirement Plan are 5.0% and 4.55% , respectively. Plan Assets Investment Strategy The company’s overall strategic investment objectives for the U.S. Retirement Plan are to preserve capital for future benefit payments and to balance risk and return commensurate with ongoing changes in the valuation of plan liabilities using an investment strategy that closely aligns the duration of the U.S. Retirement Plan’s assets with the duration of its liabilities. In order to accomplish these objectives, the company oversees the U.S. Retirement Plan’s investment objectives and policy design, decides proper plan asset class strategies and structures, monitors the performance of plan investment managers and investment funds and determines the proper investment allocation of pension plan contributions. The strategy results in an asset portfolio that more closely matches the behavior of the liability, thereby reducing the volatility of the U.S. Retirement Plan’s funded status. This structure ensures the U.S. Retirement Plan’s investments are diversified within each asset class, in addition to being diversified across asset classes with the intent to build asset class portfolios that are structured without strategic bias for or against any subcategories within each asset class. The company has also created a set of investment guidelines for the U.S. Retirement Plan’s investment managers to specify prohibited transactions, including borrowing of money except for real estate, private equity or hedge fund portfolios where leverage is a key component of the investment strategy and permitted in the investments’ governing documents, the purchase of securities on margin unless fully collateralized by cash or cash equivalents or short sales, pledging, mortgaging or hypothecating of any securities, except for loans of securities that are fully collateralized, market timing transactions and the direct purchase of the securities of Sysco or the investment manager. The purchase or sale of derivatives for speculation or leverage is also prohibited; however, investment managers are allowed to use derivative securities so long as they do not increase the risk profile or leverage of the manager’s portfolio. The U.S. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows: U.S. Retirement Plan Target Asset Allocation Actual Asset Allocation Growth assets 30 % 27 % Liability hedging assets 70 73 100 % Sysco’s U.S. Retirement Plan investment strategy is implemented through a combination of balanced and specialized investment managers, passive investment funds and actively managed investment funds. Growth assets include, but are not limited to, equities, alternatives, real estate, and growth fixed income intended to generate returns in excess of the liability growth rate. The Liability Hedging assets will be comprised primarily of fixed income investments, including interest rate and credit derivatives, intended to reduce funded status volatility due to changes in interest rates and credit spreads, while generating returns consistent with the projected liability growth rate. The U.S. Retirement Plan’s portfolio includes investment funds which are selected based on each fund’s stated investment strategy to align with Sysco’s overall target mix of investments. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. The day-to-day management of the assets of the U.K. Retirement Plan has been delegated by the plan trustee to a solvency manager who decides the composition of the asset portfolio in line with the objectives of the plan’s trustee and within specific investment guidelines agreed upon with the trustee. The primary objective for the U.K. Retirement Plan is to provide sufficient assets to pay benefits as they fall due. The U.K. Retirement Plan has a return objective that aims to achieve a return on plan assets of 2.9% in excess of the return on the liability benchmark over rolling five-year periods. The liability benchmark is the portfolio of gilts, which are bonds issued by the British government, that best matches the liability profile of the U.K. Retirement Plan. The investment objective includes a risk statement that targets a level of investment tracking error versus the liability benchmark to be below 12% per year. The actual tracking error targeted may fluctuate over time as the composition of the portfolio changes and the levels of risk in markets change. The U.K. Retirement Plan’s Trustee and Solvency Manager seeks to achieve the Plan’s investment objectives by investing in a suitably diversified mix of assets. The U.K. Retirement Plan uses derivatives such as forwards, futures, swaps and options for risk management and for the efficient implementation of the investment strategy. The U.K. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows: U.K. Retirement Plan Target Asset Allocation Actual Asset Allocation Common contractual fund 75 % 71 % Liability hedging assets 25 29 100 % The U.K. Retirement Plan’s investment strategy is implemented primarily through a common contractual investment fund and liability hedging assets both managed by the solvency manager. The pooled investment fund consists of investment types including (1) equity investments covering a range of geographies and including investment managers that hold long and short positions and private equity investments, (2) credit investments including global investment grade and high yield bonds, loans and other debt and derivative securities, (3) property investments including global direct or indirect real estate holdings, (4) macro-oriented funds that seek to generate return by going long and short in a variety of markets and operate strategies which focus on markets rather than individual stocks and often use derivatives rather than physical assets, and (5) multi-strategy funds which combine a range of different credit, equity and macro-orientated ideas and dynamically allocate funds across asset classes. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. As discussed above, the retirement plans’ investments in equities, debt instruments and alternative investments provide a range of returns and also expose the plan to investment risk. However, the investment policies put in place by the trustee and solvency manager ensure diversification of plan assets across issuers, industries and countries. Fair Value of Plan Assets Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). See Note 6 , “Fair Value Measurements,” for a description of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The following is a description of the valuation methodologies used for assets and liabilities held by Sysco’s retirement plans measured at fair value. Cash and cash equivalents: Valued at amortized cost, which approximates fair value due to the short-term maturities of these investments. Cash and cash equivalents is included as a Level 1 and Level 2 measurement in the table below. Equity securities: Valued at the closing price reported on the exchange market. If a stock is not listed on a public exchange, such as an American Depository Receipt or some preferred stocks, the stock is valued using an evaluated bid price based on a compilation of observable market information. Inputs used include yields, the underlying security “best price,” adjustments for corporate actions and exchange prices of underlying and common stock of the same issuer. Equity securities valued at the closing price reported on the exchange market are classified as a Level 1 measurement in the table below. Fixed income securities: Valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. All fixed income securities are included as a Level 2 measurement in the table below. Investment funds: Represents collective trust and funds holding debt, equity, hedge funds, private equity funds, exchange-traded real estate securities, and common contractual funds which are valued at the net asset value (NAV) provided by the manager of each fund. The NAV for funds within the U.S. and U.K Retirement Plans is calculated as the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV is based on the fair value of the underlying securities within the fund. Non-exchange traded real estate funds are valued based on the proportionate interest held by the U.S. Retirement Plan, which is based on the valuations of the underlying real estate investments held by each fund. Each real estate investment is valued on the basis of a discounted cash flow approach. Inputs used include future rental receipts, expenses and residual values from a market participant view of the highest and best use of the real estate as rental property. The private equity funds are valued based on the proportionate interest held by the U.S. Retirement Plan, which is based on the valuations of the underlying private equity investments held by each fund. The hedge funds are valued based on the hedge funds’ proportionate share of the net assets of the underlying private investment fund as determined by the underlying private investment fund’s general partner. Indirectly held investments are valued utilizing the latest financial reports supplied by the fund’s portfolio investments. Directly held investments are valued initially based on transaction price and are adjusted utilizing available market data and investment-specific factors, such as estimates of liquidation value, prices of recent transactions in the same or similar issuer, current operating performance and future expectations of the particular investment, changes in market outlook and the financing environment. Derivatives: Valuation method varies by type of derivative security. • Credit default and interest rate swaps: Valued using evaluated bid prices based on a compilation of observable market information. Inputs used for credit default swaps include spread curves and trade data about the credit quality of the counterparty. Inputs used for interest rate swaps include benchmark yields, swap curves, cash flow analysis, and interdealer broker rates. Credit default and interest rate swaps are included as a Level 2 measurement in the table below. • Foreign currency contracts: Valued using a standardized interpolation model that utilizes the quoted prices for standard-length forward foreign currency contracts and adjusts to the remaining term outstanding on the contract being valued. Foreign currency contracts are included as a Level 2 measurement in the table below. • Futures and option contracts: Valued at the closing price reported on the exchange market for exchange-traded futures and options. Over-the-counter options are valued using pricing models that are based on observable market information. Exchange-traded futures and options are included as a Level 1 measurement in the table below; over-the-counter options are included as a Level 2 measurement. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 29, 2019 : Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 39,981 $ 41,266 $ — $ — $ 81,247 Growth assets: U.S. equity (1) — — — 468,923 468,923 International equity (1) 95,296 — — 107,197 202,493 Hedge fund of funds (2) — — — 226,409 226,409 Real estate funds (3) — — — 93,592 93,592 Private equity funds (4) — — — 84,266 84,266 Liability hedging assets: Corporate bonds — 1,987,964 — — 1,987,964 U.S. government and agency securities (1) — 298,629 — 522,489 821,118 Other (5) — 18,142 — — 18,142 Total investments at fair value $ 135,277 $ 2,346,001 $ — $ 1,502,876 $ 3,984,154 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 29, 2019 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 29, 2019 , and there were no redemption restrictions as of June 29, 2019 . The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 29, 2019 was $10.3 million . Approximately 15% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2019 to 2021 . The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitments in the funds listed in this category as of June 29, 2019 were $17.6 million . The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2019 to 2031 . (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 29, 2019 : Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 13,372 $ — $ — $ — $ 13,372 U.K. government securities — 63,363 — — 63,363 Derivatives, net (1) — 575 — — 575 Investment funds: Common contractual fund (2) — — — 187,436 187,436 Total investments at fair value $ 13,372 $ 63,938 $ — $ 187,436 $ 264,746 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $9.3 million ; the fair value of liability positions totaled $8.7 million . (2) There were $13.9 million of unfunded commitments as of June 29, 2019 , and there were no redemption restrictions as of June 29, 2019 . The investment may be redeemed twice per month. (3) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 30, 2018 : Assets Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Measured at NAV (7) Total (In thousands) Cash and cash equivalents $ 25,810 $ 34,430 $ — $ — $ 60,240 Growth assets: U.S. equity (1) 80,719 — — 143,701 224,420 International equity (1) 57,959 — — 109,186 167,145 Hedge fund of funds (2) — — — 388,281 388,281 Real estate funds (3) — — — 146,389 146,389 Private equity funds (4) — — — 84,003 84,003 Liability hedging assets: Corporate bonds — 1,775,324 — — 1,775,324 U.S. government and agency securities (1) — 277,986 — 469,868 747,854 Other (5) — 27,324 — — 27,324 High yield and emerging markets fixed income (6) — — — 45,428 45,428 Total investments at fair value $ 164,488 $ 2,115,064 $ — $ 1,386,856 $ 3,666,408 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 30, 2018 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per quarter. (3) The estimate of the liquidation period for these funds varies from 2018 to 2021 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (4) Total unfunded commitment as of June 30, 2018 was $22.6 million . The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2018 to 2031 . (5) Include foreign government and state and municipal debt securities. (6) There were no unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per day. The daily maximum withdrawal limitation is the greater of $2.0 million or 5% of the asset value. (7) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 30, 2018 : Assets Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 30,987 $ — $ — $ — $ 30,987 U.K. government securities — 9,336 — — 9,336 Derivatives, net (1) — 17,658 — — 17,658 Pooled funds — 5,387 — — 5,387 Investment funds: Common contractual fund (2) — — — 194,660 194,660 Total investments at fair value $ 30,987 $ 32,381 $ — $ 194,660 $ 258,028 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $45.2 million ; the fair value of li |
MULTIEMPLOYER EMPLOYEE BENEFIT
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 29, 2019 | |
Multiemployer Plans [Abstract] | |
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. Defined Contribution Plans The company operates a defined contribution 401(k) Plan as a Safe Harbor Plan, which is a plan that treats all employees’ benefits equally within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose unions adopted the Safe Harbor Plan provisions. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pretax contribution on the first 6% of the participant’s compensation contributed by the participant. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan provides that under certain circumstances the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. The company also has a non-qualified, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the Management Incentive Plan (MIP). Participants may defer up to 50% of their annual salary and up to 90% of their annual bonus. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pretax contribution on the first 6% of the participant’s eligible compensation that is deferred. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts contributed by the company to the participant’s 401(k) account. Sysco’s expense related to its defined contribution plans was $150.4 million in fiscal 2019 , $151.0 million in fiscal 2018 , and $ 141.2 million in fiscal 2017 . Defined Benefit Plans Sysco maintains various qualified pension plans that pay benefits to participating employees at retirement, using formulas based on a participant’s years of service and compensation. The U.S. pension plan (U.S. Retirement Plan) is frozen for all U.S.-based salaried and non-union hourly employees, as these employees are eligible for benefits under the company’s defined contribution 401(k) plan. Various defined benefit pension plans cover certain employees, primarily in the U.K., France and Sweden; however, the U.K. pension plan (U.K. Retirement Plan) is frozen to new plan participants and future accrual of benefits. The funding policy for each plan complies with the requirements of relevant governmental laws and regulations. In addition to receiving benefits upon retirement under the company’s U.S. Retirement Plan, certain key management personnel who were participants in the MIP are entitled to receive benefits under the SERP. This plan is a nonqualified, unfunded supplementary retirement plan. This plan is frozen to all participants, and current MIP participants are eligible to participate in the MSP. The company also provides certain health care benefits to eligible retirees and their dependents. These health care benefits represent Sysco’s unfunded other post-retirement medical plans. The plan had benefit obligations of $10.8 million as of June 29, 2019 and $14.3 million as of June 30, 2018 . Funded Status Accumulated pension assets measured against the obligation for pension benefits represents the funded status of a given plan. The funded status of Sysco’s company-sponsored defined benefit plans is presented in the table below. The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. U.S. Pension Benefits International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 4,043,011 $ 4,224,231 $ 399,000 $ 420,735 Service cost 13,977 14,514 2,790 3,219 Interest cost 172,213 173,827 10,637 10,667 Amendments — — 3,050 (4,624 ) Plan Combinations — — 173 — Actuarial (gain) loss, net 439,082 (89,253 ) 20,783 (21,162 ) Total disbursements (130,635 ) (280,308 ) (14,398 ) (13,817 ) Exchange rate changes — — (15,338 ) 3,982 Benefit obligation at end of year 4,537,648 4,043,011 406,697 399,000 Change in plan assets: Fair value of plan assets at beginning of year 3,666,408 3,341,662 258,028 259,372 Actual return on plan assets 418,789 196,051 23,765 897 Employer contribution 29,592 409,003 7,612 7,960 Total disbursements (130,635 ) (280,308 ) (14,398 ) (13,817 ) Exchange rate changes — — (10,261 ) 3,616 Fair value of plan assets at end of year 3,984,154 3,666,408 264,746 258,028 Funded status at end of year $ (553,494 ) $ (376,603 ) $ (141,951 ) $ (140,972 ) As of June 29, 2019 and June 30, 2018 , the SERP had benefit obligations of $468.0 million and $440.5 million , respectively. In order to meet a portion of its obligations under the SERP, Sysco has a rabbi trust that invests in COLI policies on the lives of participants and interests in corporate-owned real estate assets. These assets are not included as plan assets or in the funded status amounts in the tables above and below. The life insurance policies on the lives of the participants had carrying values of $97.7 million as of June 29, 2019 and $96.5 million as of June 30, 2018 . Sysco is the sole owner and beneficiary of such policies. The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: U.S. Pension Benefits International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Noncurrent assets (Other assets) $ — $ 63,945 $ — $ — Current accrued benefit liability (Accrued expenses) (31,652 ) (31,313 ) (1,285 ) (1,280 ) Noncurrent accrued benefit liability (Other long-term liabilities) (521,842 ) (409,235 ) (140,666 ) (139,692 ) Net amount recognized $ (553,494 ) $ (376,603 ) $ (141,951 ) $ (140,972 ) Accumulated other comprehensive loss (income) as of June 29, 2019 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 10,790 $ (588 ) $ 10,202 Actuarial losses (gains) 1,599,539 (33,008 ) 1,566,531 Total $ 1,610,329 $ (33,596 ) $ 1,576,733 Accumulated other comprehensive loss (income) as of June 30, 2018 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 19,170 $ 2,679 $ 21,849 Actuarial losses (gains) 1,434,160 (26,106 ) 1,408,054 Total $ 1,453,330 $ (23,427 ) $ 1,429,903 The accumulated benefit obligation, which does not consider any salary increases for the remaining active union employees in the U.S. Retirement Plan was $4.9 billion and $4.4 billion as of June 29, 2019 and June 30, 2018 , respectively. Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: U.S. Pension Benefits (1) International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 4,524,513 $ 4,034,383 $ 399,966 $ 392,457 Fair value of plan assets at end of year 3,984,154 3,666,408 264,746 258,028 (1) Information under Pension Benefits as of June 29, 2019 and June 30, 2018 includes both the U.S. Retirement Plan and the SERP. Components of Net Benefit Costs and Other Comprehensive Income The components of net company-sponsored pension costs for each fiscal year are as follows: 2019 2018 2017 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Service cost $ 13,977 $ 2,790 $ 14,514 $ 3,219 $ 14,287 $ 2,880 Interest cost 172,213 10,637 173,827 10,667 171,282 9,951 Expected return on plan assets (180,624 ) (11,072 ) (233,987 ) (11,653 ) (222,699 ) (10,033 ) Amortization of prior service cost 8,380 (202 ) 9,460 (2,003 ) 11,202 (1 ) Amortization of actuarial loss 35,537 (98 ) 35,696 (67 ) 41,511 (38 ) Curtailment loss — — — — — (611 ) Settlement loss (gain) recognized — 109 — 16 — — Net pension (benefits) costs $ 49,483 $ 2,164 $ (490 ) $ 179 $ 15,583 $ 2,148 The components of net company-sponsored pension costs other than the service cost component are reported in Other expense (income), net within the consolidated results of operations. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: 2019 2018 2017 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Amortization of prior service cost $ 8,380 $ (202 ) $ 9,460 $ (2,003 ) $ 11,202 $ (1 ) Amortization of actuarial loss 35,537 11 35,696 (51 ) 41,511 (38 ) Prior service cost arising in current year — (3,050 ) — 4,624 (925 ) 110 Effect of exchange rates on amounts in AOCI — 1,163 — (583 ) — (1,269 ) Actuarial gain (loss) arising in current year (163,588 ) (8,090 ) 51,318 10,406 197,871 (34,623 ) Net pension costs $ (119,671 ) $ (10,168 ) $ 96,474 $ 12,393 $ 249,659 $ (35,821 ) Amounts included in accumulated other comprehensive loss (income) as of June 29, 2019 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2020 are: U.S. Pension Benefits International Pension Benefits Total (In thousands) Amortization of prior service cost $ 7,537 $ (82 ) $ 7,455 Amortization of actuarial losses (gains) 39,483 133 39,616 Total $ 47,020 $ 51 $ 47,071 Employer Contributions The company made cash contributions to its company-sponsored pension plans of $37.2 million and $415.0 million in fiscal years 2019 and 2018 , respectively. There were no contributions made to the U.S. Retirement Plan in fiscal 2019 , as there were no required contributions to meet ERISA minimum funding requirements in fiscal 2019 . There are no required contributions to the U.S. Retirement Plan to meet ERISA minimum funding requirements in fiscal 2020 . The company’s contributions to the SERP plan are made in the amounts needed to fund current year benefit payments. The estimated aggregate fiscal 2020 contribution to fund benefit payments for the SERP plan is $31.7 million . The estimated fiscal 2020 contributions to fund benefit payments for the international retirement plans are $7 million . Estimated Future Benefit Payments Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: U.S. Pension Benefits International Pension Benefits (In thousands) 2020 $ 149,999 $ 9,938 2021 160,568 11,240 2022 171,171 11,481 2023 181,811 12,707 2024 191,850 14,280 Subsequent five years 1,097,454 86,099 Assumptions Weighted-average assumptions used to determine benefit obligations as of year-end were: Jun. 29, 2019 Jun. 30, 2018 Discount rate — U.S. Retirement Plan 3.70 % 4.28 % Discount rate — SERP 3.62 4.41 Discount rate — U.K. Retirement Plan 2.30 2.85 Rate of compensation increase — U.S. Retirement Plan 2.56 2.62 As benefit accruals under the SERP and U.K. Retirement Plan are frozen, future pay is not projected in the determination of the benefit obligation as of June 29, 2019 or June 30, 2018 . Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were: 2019 2018 2017 Discount rate — U.S. Retirement Plan 4.28 % 4.19 % 4.07 % Discount rate — SERP 4.41 4.08 3.91 Discount rate — U.K. Retirement Plan 2.85 2.60 2.80 Expected rate of return — U.S. Retirement Plan 5.00 7.00 7.25 Expected rate of return — U.K. Retirement Plan 4.55 4.55 4.15 Rate of compensation increase — U.S. Retirement Plan 2.62 2.62 2.62 For guidance in determining the discount rate for U.S. defined benefit plans, Sysco calculates the implied rate of return on a hypothetical portfolio of high-quality fixed-income investments for which the timing and amount of cash outflows approximates the estimated payouts of the company-sponsored pension plans. Sysco uses an annualized corporate bond yield curve to estimate the rate at which pension benefits could effectively be settled to estimate a discount rate for the U.K. Retirement Plan. The discount rate assumption is updated annually and revised as deemed appropriate. The discount rates to be used for the calculation of fiscal 2020 net company-sponsored benefit costs for the U.S. Retirement Plan and U.K. Retirement Plan are 3.70% and 2.30% , respectively. The discount rate to be used for the calculation of fiscal 2020 net company-sponsored benefit costs for the SERP is 3.62% . The expected long-term rate of return on plan assets assumption for the retirement plans are net return on assets assumption, representing gross return on assets less asset management expenses. Specific to the U.S. Retirement Plan, administrative expenses are also excluded from the gross return on assets. The expected return for the U.S. Retirement Plan is derived from a mathematical asset model that incorporates assumptions as to the various asset class returns, reflecting a combination of rigorous historical performance analysis and the forward-looking views of the financial markets regarding the yield on bonds, the historical returns of the major stock markets and returns on alternative investments. The expected return for the U.K. Retirement Plan is derived from a long-term swap yield time horizon adjusted for the expected return based on the plan’s current asset allocation and historical results. The rate of return assumption is reviewed annually and revised as deemed appropriate. The expected long-term rate of return to be used in the calculation of fiscal 2020 net company-sponsored benefit costs for the U.S. Retirement Plan and U.K. Retirement Plan are 5.0% and 4.55% , respectively. Plan Assets Investment Strategy The company’s overall strategic investment objectives for the U.S. Retirement Plan are to preserve capital for future benefit payments and to balance risk and return commensurate with ongoing changes in the valuation of plan liabilities using an investment strategy that closely aligns the duration of the U.S. Retirement Plan’s assets with the duration of its liabilities. In order to accomplish these objectives, the company oversees the U.S. Retirement Plan’s investment objectives and policy design, decides proper plan asset class strategies and structures, monitors the performance of plan investment managers and investment funds and determines the proper investment allocation of pension plan contributions. The strategy results in an asset portfolio that more closely matches the behavior of the liability, thereby reducing the volatility of the U.S. Retirement Plan’s funded status. This structure ensures the U.S. Retirement Plan’s investments are diversified within each asset class, in addition to being diversified across asset classes with the intent to build asset class portfolios that are structured without strategic bias for or against any subcategories within each asset class. The company has also created a set of investment guidelines for the U.S. Retirement Plan’s investment managers to specify prohibited transactions, including borrowing of money except for real estate, private equity or hedge fund portfolios where leverage is a key component of the investment strategy and permitted in the investments’ governing documents, the purchase of securities on margin unless fully collateralized by cash or cash equivalents or short sales, pledging, mortgaging or hypothecating of any securities, except for loans of securities that are fully collateralized, market timing transactions and the direct purchase of the securities of Sysco or the investment manager. The purchase or sale of derivatives for speculation or leverage is also prohibited; however, investment managers are allowed to use derivative securities so long as they do not increase the risk profile or leverage of the manager’s portfolio. The U.S. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows: U.S. Retirement Plan Target Asset Allocation Actual Asset Allocation Growth assets 30 % 27 % Liability hedging assets 70 73 100 % Sysco’s U.S. Retirement Plan investment strategy is implemented through a combination of balanced and specialized investment managers, passive investment funds and actively managed investment funds. Growth assets include, but are not limited to, equities, alternatives, real estate, and growth fixed income intended to generate returns in excess of the liability growth rate. The Liability Hedging assets will be comprised primarily of fixed income investments, including interest rate and credit derivatives, intended to reduce funded status volatility due to changes in interest rates and credit spreads, while generating returns consistent with the projected liability growth rate. The U.S. Retirement Plan’s portfolio includes investment funds which are selected based on each fund’s stated investment strategy to align with Sysco’s overall target mix of investments. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. The day-to-day management of the assets of the U.K. Retirement Plan has been delegated by the plan trustee to a solvency manager who decides the composition of the asset portfolio in line with the objectives of the plan’s trustee and within specific investment guidelines agreed upon with the trustee. The primary objective for the U.K. Retirement Plan is to provide sufficient assets to pay benefits as they fall due. The U.K. Retirement Plan has a return objective that aims to achieve a return on plan assets of 2.9% in excess of the return on the liability benchmark over rolling five-year periods. The liability benchmark is the portfolio of gilts, which are bonds issued by the British government, that best matches the liability profile of the U.K. Retirement Plan. The investment objective includes a risk statement that targets a level of investment tracking error versus the liability benchmark to be below 12% per year. The actual tracking error targeted may fluctuate over time as the composition of the portfolio changes and the levels of risk in markets change. The U.K. Retirement Plan’s Trustee and Solvency Manager seeks to achieve the Plan’s investment objectives by investing in a suitably diversified mix of assets. The U.K. Retirement Plan uses derivatives such as forwards, futures, swaps and options for risk management and for the efficient implementation of the investment strategy. The U.K. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows: U.K. Retirement Plan Target Asset Allocation Actual Asset Allocation Common contractual fund 75 % 71 % Liability hedging assets 25 29 100 % The U.K. Retirement Plan’s investment strategy is implemented primarily through a common contractual investment fund and liability hedging assets both managed by the solvency manager. The pooled investment fund consists of investment types including (1) equity investments covering a range of geographies and including investment managers that hold long and short positions and private equity investments, (2) credit investments including global investment grade and high yield bonds, loans and other debt and derivative securities, (3) property investments including global direct or indirect real estate holdings, (4) macro-oriented funds that seek to generate return by going long and short in a variety of markets and operate strategies which focus on markets rather than individual stocks and often use derivatives rather than physical assets, and (5) multi-strategy funds which combine a range of different credit, equity and macro-orientated ideas and dynamically allocate funds across asset classes. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. As discussed above, the retirement plans’ investments in equities, debt instruments and alternative investments provide a range of returns and also expose the plan to investment risk. However, the investment policies put in place by the trustee and solvency manager ensure diversification of plan assets across issuers, industries and countries. Fair Value of Plan Assets Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). See Note 6 , “Fair Value Measurements,” for a description of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The following is a description of the valuation methodologies used for assets and liabilities held by Sysco’s retirement plans measured at fair value. Cash and cash equivalents: Valued at amortized cost, which approximates fair value due to the short-term maturities of these investments. Cash and cash equivalents is included as a Level 1 and Level 2 measurement in the table below. Equity securities: Valued at the closing price reported on the exchange market. If a stock is not listed on a public exchange, such as an American Depository Receipt or some preferred stocks, the stock is valued using an evaluated bid price based on a compilation of observable market information. Inputs used include yields, the underlying security “best price,” adjustments for corporate actions and exchange prices of underlying and common stock of the same issuer. Equity securities valued at the closing price reported on the exchange market are classified as a Level 1 measurement in the table below. Fixed income securities: Valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. All fixed income securities are included as a Level 2 measurement in the table below. Investment funds: Represents collective trust and funds holding debt, equity, hedge funds, private equity funds, exchange-traded real estate securities, and common contractual funds which are valued at the net asset value (NAV) provided by the manager of each fund. The NAV for funds within the U.S. and U.K Retirement Plans is calculated as the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV is based on the fair value of the underlying securities within the fund. Non-exchange traded real estate funds are valued based on the proportionate interest held by the U.S. Retirement Plan, which is based on the valuations of the underlying real estate investments held by each fund. Each real estate investment is valued on the basis of a discounted cash flow approach. Inputs used include future rental receipts, expenses and residual values from a market participant view of the highest and best use of the real estate as rental property. The private equity funds are valued based on the proportionate interest held by the U.S. Retirement Plan, which is based on the valuations of the underlying private equity investments held by each fund. The hedge funds are valued based on the hedge funds’ proportionate share of the net assets of the underlying private investment fund as determined by the underlying private investment fund’s general partner. Indirectly held investments are valued utilizing the latest financial reports supplied by the fund’s portfolio investments. Directly held investments are valued initially based on transaction price and are adjusted utilizing available market data and investment-specific factors, such as estimates of liquidation value, prices of recent transactions in the same or similar issuer, current operating performance and future expectations of the particular investment, changes in market outlook and the financing environment. Derivatives: Valuation method varies by type of derivative security. • Credit default and interest rate swaps: Valued using evaluated bid prices based on a compilation of observable market information. Inputs used for credit default swaps include spread curves and trade data about the credit quality of the counterparty. Inputs used for interest rate swaps include benchmark yields, swap curves, cash flow analysis, and interdealer broker rates. Credit default and interest rate swaps are included as a Level 2 measurement in the table below. • Foreign currency contracts: Valued using a standardized interpolation model that utilizes the quoted prices for standard-length forward foreign currency contracts and adjusts to the remaining term outstanding on the contract being valued. Foreign currency contracts are included as a Level 2 measurement in the table below. • Futures and option contracts: Valued at the closing price reported on the exchange market for exchange-traded futures and options. Over-the-counter options are valued using pricing models that are based on observable market information. Exchange-traded futures and options are included as a Level 1 measurement in the table below; over-the-counter options are included as a Level 2 measurement. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 29, 2019 : Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 39,981 $ 41,266 $ — $ — $ 81,247 Growth assets: U.S. equity (1) — — — 468,923 468,923 International equity (1) 95,296 — — 107,197 202,493 Hedge fund of funds (2) — — — 226,409 226,409 Real estate funds (3) — — — 93,592 93,592 Private equity funds (4) — — — 84,266 84,266 Liability hedging assets: Corporate bonds — 1,987,964 — — 1,987,964 U.S. government and agency securities (1) — 298,629 — 522,489 821,118 Other (5) — 18,142 — — 18,142 Total investments at fair value $ 135,277 $ 2,346,001 $ — $ 1,502,876 $ 3,984,154 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 29, 2019 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 29, 2019 , and there were no redemption restrictions as of June 29, 2019 . The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 29, 2019 was $10.3 million . Approximately 15% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2019 to 2021 . The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitments in the funds listed in this category as of June 29, 2019 were $17.6 million . The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2019 to 2031 . (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 29, 2019 : Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 13,372 $ — $ — $ — $ 13,372 U.K. government securities — 63,363 — — 63,363 Derivatives, net (1) — 575 — — 575 Investment funds: Common contractual fund (2) — — — 187,436 187,436 Total investments at fair value $ 13,372 $ 63,938 $ — $ 187,436 $ 264,746 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $9.3 million ; the fair value of liability positions totaled $8.7 million . (2) There were $13.9 million of unfunded commitments as of June 29, 2019 , and there were no redemption restrictions as of June 29, 2019 . The investment may be redeemed twice per month. (3) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 30, 2018 : Assets Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Measured at NAV (7) Total (In thousands) Cash and cash equivalents $ 25,810 $ 34,430 $ — $ — $ 60,240 Growth assets: U.S. equity (1) 80,719 — — 143,701 224,420 International equity (1) 57,959 — — 109,186 167,145 Hedge fund of funds (2) — — — 388,281 388,281 Real estate funds (3) — — — 146,389 146,389 Private equity funds (4) — — — 84,003 84,003 Liability hedging assets: Corporate bonds — 1,775,324 — — 1,775,324 U.S. government and agency securities (1) — 277,986 — 469,868 747,854 Other (5) — 27,324 — — 27,324 High yield and emerging markets fixed income (6) — — — 45,428 45,428 Total investments at fair value $ 164,488 $ 2,115,064 $ — $ 1,386,856 $ 3,666,408 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 30, 2018 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per quarter. (3) The estimate of the liquidation period for these funds varies from 2018 to 2021 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (4) Total unfunded commitment as of June 30, 2018 was $22.6 million . The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2018 to 2031 . (5) Include foreign government and state and municipal debt securities. (6) There were no unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per day. The daily maximum withdrawal limitation is the greater of $2.0 million or 5% of the asset value. (7) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 30, 2018 : Assets Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 30,987 $ — $ — $ — $ 30,987 U.K. government securities — 9,336 — — 9,336 Derivatives, net (1) — 17,658 — — 17,658 Pooled funds — 5,387 — — 5,387 Investment funds: Common contractual fund (2) — — — 194,660 194,660 Total investments at fair value $ 30,987 $ 32,381 $ — $ 194,660 $ 258,028 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $45.2 million ; the fair value of li |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 29, 2019 | |
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: 2019 2018 2017 (In thousands, except for share and per share data) Numerator: Net earnings $ 1,674,271 $ 1,430,766 $ 1,142,503 Denominator: Weighted-average basic shares outstanding 516,890,581 522,926,914 543,496,816 Dilutive effect of share-based awards 6,490,543 6,162,940 5,048,211 Weighted-average diluted shares outstanding 523,381,124 529,089,854 548,545,027 Basic earnings per share $ 3.24 $ 2.74 $ 2.10 Diluted earnings per share $ 3.20 $ 2.70 $ 2.08 The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,338,000 , 2,303,000 and 4,194,000 for fiscal 2019 , 2018 and 2017 , respectively. Dividends declared were $793.2 million , $735.3 million and $700.9 million in fiscal 2019 , 2018 and 2017 , respectively. Included in dividends declared for each year were dividends declared but not yet paid at year-end of approximately $200.0 million , $187.4 million and $174.9 million in fiscal 2019 , 2018 and 2017 , respectively. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Jun. 29, 2019 | |
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, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $1.5 billion , $1.5 billion and $1.2 billion for fiscal 2019 , 2018 and 2017 , 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: 2019 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ (200,144 ) $ (45,070 ) $ (155,074 ) Reclassification adjustments: Amortization of prior service cost Other expense, net 8,532 2,132 6,400 Amortization of actuarial loss, net Other expense, net 34,824 8,708 26,116 Total reclassification adjustments 43,356 10,840 32,516 Foreign currency translation: Foreign currency translation adjustment N/A (119,126 ) — (119,126 ) Marketable securities: Change in marketable securities N/A 3,579 752 2,827 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (5,394 ) (1,332 ) (4,062 ) Change in net investment hedges N/A 58,138 14,299 43,839 Total other comprehensive income (loss) before reclassification adjustments 52,744 12,967 39,777 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,492 2,872 8,620 Total other comprehensive (loss) income $ (208,099 ) $ (17,639 ) $ (190,460 ) (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 2018 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial (loss) gain, net arising in the current year $ 69,476 $ 16,965 $ 52,511 Reclassification adjustments: Amortization of prior service cost Other expense, net 9,636 2,731 6,905 Amortization of actuarial loss (gain), net Other expense, net 35,044 9,934 25,110 Total reclassification adjustments 44,680 12,665 32,015 Foreign currency translation: Foreign currency translation adjustment N/A (22,987 ) — (22,987 ) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 23,872 9,529 14,343 Change in net investment hedges N/A (2,443 ) (8,234 ) 5,791 Total other comprehensive income (loss) before reclassification adjustments 21,429 1,295 20,134 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,499 3,259 8,240 Total other comprehensive income (loss) $ 124,097 $ 34,184 $ 89,913 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 2017 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial (loss) gain, net arising in the current year $ 168,498 $ 71,215 $ 97,283 Reclassification adjustments: Amortization of prior service cost Other expense, net 11,370 4,366 7,004 Amortization of actuarial loss (gain), net Other expense, net 41,689 15,724 25,965 Total reclassification adjustments 53,059 20,090 32,969 Foreign currency translation: Foreign currency translation adjustment N/A (11,243 ) — (11,243 ) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (10,871 ) (4,173 ) (6,698 ) Change in net investment hedges N/A (34,152 ) (10,140 ) (24,012 ) Total other comprehensive income (loss) before reclassification adjustments (45,023 ) (14,313 ) (30,710 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,495 4,413 7,082 Total other comprehensive income (loss) $ 176,786 $ 81,405 $ 95,381 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. The following tables provide a summary of the changes in accumulated other comprehensive (loss) income (AOCI) for the periods presented: Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, net of tax Marketable Securities Total (In thousands) Balance as of Jul. 2, 2016 $ (1,104,484 ) $ (136,813 ) $ (116,821 ) $ — $ (1,358,118 ) Other comprehensive income before 97,283 (11,243 ) (30,710 ) — 55,330 Amounts reclassified from accumulated 32,969 — 7,082 — 40,051 Balance as of Jul. 1, 2017 (974,232 ) (148,056 ) (140,449 ) — (1,262,737 ) Other comprehensive income before 52,511 (22,987 ) 20,134 — 49,658 Amounts reclassified from accumulated 32,015 — 8,240 — 40,255 Amounts reclassified to retained earnings (1) (205,353 ) — (31,092 ) — (236,445 ) Balance as of Jun. 30, 2018 (1,095,059 ) (171,043 ) (143,167 ) — (1,409,269 ) Other comprehensive income before (155,074 ) (119,126 ) 39,777 — (234,423 ) Amounts reclassified from accumulated 32,516 — 8,620 — 41,136 Change in marketable securities — — — 2,827 2,827 Jun. 29, 2019 $ (1,217,617 ) $ (290,169 ) $ (94,770 ) $ 2,827 $ (1,599,729 ) (1) Deferred taxes stranded in AOCI as a result of the Tax Act were reclassified to retained earnings as a result of early adopting ASU 2018-02. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jun. 29, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP). Stock Incentive Plans In November 2018, Sysco’s Omnibus Incentive Plan (2018 Plan) was adopted and reserved up to 51,500,000 shares of Sysco common stock for share-based awards to employees, non-employee directors and key advisors. Of the 51,500,000 authorized shares, the full 51,500,000 shares may be issued as options or stock appreciation rights and up to 17,500,000 shares may be issued as restricted stock, restricted stock units or other types of stock-based awards. To date, Sysco has issued options, restricted stock units and performance share units under the 2018 Plan. Vesting requirements for awards under the 2018 Plan vary by individual grant and may include either time-based vesting or time-based vesting subject to acceleration based on performance criteria for fiscal periods of at least one year . The contractual life of all options granted under the 2018 Plan are and will be no greater than ten years . As of June 29, 2019 , there were 50,783,126 remaining shares authorized and available for grant in total under the 2018 Plan, of which the full 50,783,126 shares may be issued as options or stock appreciation rights, or as a combination of up to 16,841,942 shares that may be issued as restricted stock, restricted stock units or other types of stock-based awards, with the remainder available for issuance as options or stock appreciation rights. Sysco has also granted employee options under several previous employee stock option plans for which previously granted options remain outstanding as of June 29, 2019 . No new options will be issued under any of the prior plans, as future grants to employees will be made through the 2018 Plan or subsequently adopted plans. Awards under these plans are subject to time-based vesting with vesting periods that vary by individual grant. The contractual life of all options granted under these plans is ten years . Sysco’s policy is to utilize treasury stock for issuing shares upon share option exercise or share unit conversion. Performance Share Units During fiscal 2019 and 2018 , 581,174 and 895,968 performance share units (PSUs), respectively, were granted to employees. Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For PSUs 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 performance share unit granted during fiscal 2019 and 2018 was $74.86 and $51.11 , respectively. The PSUs granted will vest and convert into shares of Sysco common stock at the end of the performance periods, which conclude at the end of fiscal 2021 and fiscal 2020, respectively, based on financial performance targets consisting of Sysco’s earnings per share, compound annual growth rate and adjusted return on invested capital. Stock Options Sysco’s option awards are subject to graded vesting over a requisite service period with compensation cost recognized on a straight-line basis over the requisite service period over the duration of the award. In addition, certain of Sysco’s options provide that the options continue to vest as if the optionee continued as an employee or director if the optionee meets certain age and years of service thresholds upon retirement. In these cases, Sysco will recognize compensation cost for such awards over the period from the grant date to the date the employee or director first becomes eligible to retire with the options continuing to vest after retirement. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. Expected dividend yield is estimated based on the historical pattern of dividends and the average stock price for the year preceding the option grant. Expected volatility is based on historical volatility of Sysco’s stock, implied volatilities from traded options on Sysco’s stock and other factors. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Sysco utilizes historical data to estimate option exercise and employee termination behavior within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately in determining the expected life of awards for valuation purposes. The weighted average assumptions discussed above are noted in the table below for relevant periods as follows: 2019 2018 2017 Dividend yield 2.5 % 2.6 % 2.8 % Expected volatility 16.9 % 17.5 % 16.9 % Risk-free interest rate 2.8 % 2.0 % 1.4 % Expected Life 7.0 years 7.0 years 7.2 years The following summary presents information regarding outstanding options as of June 29, 2019 and changes during the fiscal year then ended with regard to options under all stock incentive plans: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of June 30, 2018 18,391,610 $ 43.92 Granted 2,609,755 74.88 Exercised 5,796,853 40.88 Forfeited 215,235 54.29 Expired — — Outstanding as of June 29, 2019 14,989,277 $ 50.36 7.05 $ 316,212 Vested or expected to vest as of June 29, 2019 9,018,881 $ 55.01 7.71 $ 152,389 Exercisable as of June 29, 2019 5,866,374 $ 42.96 6.01 $ 162,835 The total number of employee options granted was 2,609,755 , 4,042,415 and 4,990,396 in fiscal years 2019 , 2018 and 2017 , respectively. During fiscal 2019 , 657,341 and 1,952,414 options were granted to 9 executive officers and approximately 179 other key employees, respectively. During fiscal 2018 , 955,344 and 3,087,071 options were granted to 10 executive officers and approximately 181 other key employees, respectively. During fiscal 2017 , 1,529,997 and 3,460,399 options were granted to 9 executive officers and 187 other key employees, respectively. The weighted average grant date fair value of options granted in fiscal 2019 , 2018 and 2017 was $11.70 , $7.08 and $6.05 , respectively. The total intrinsic value of options exercised during fiscal 2019 , 2018 and 2017 was $14.0 million , $17.7 million and $22.1 million , respectively. Restricted Stock Units During fiscal 2019 , 2018 and 2017 , 617,685 , 660,923 and 631,281 restricted stock units, respectively, were granted to employees, the majority of which will vest ratably over a three -year period. Some of these restricted stock units were granted with dividend equivalents. The fair value of each restricted stock unit award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For restricted stock unit awards granted without dividend equivalents, the fair value was reduced by the present value of expected dividends as of the date of grant date during the vesting period. The weighted average grant date fair value per share of restricted stock units granted during fiscal 2019 , 2018 and 2017 was $63.91 , $55.81 and $50.04 , respectively. The total fair value of restricted stock units vested during fiscal 2019 , 2018 and 2017 was $35.3 million , $40.4 million and $46.0 million , respectively. The total intrinsic value of options exercised during fiscal 2019 , 2018 and 2017 was $49.8 million , $56.4 million and $65.1 million , respectively. Non-Employee Director Awards During fiscal 2019 , 2018 and 2017 , 30,870 , 35,672 and 40,498 restricted equity awards, respectively, were granted to non-employee directors (NEDs), which will vest over a one -year period. NEDs may elect to receive these awards in restricted stock shares that will vest at the end of the award stated vesting period or as deferred units that convert into shares of Sysco common stock on a date subsequent to the award stated vesting date selected by the NED. The fair value of the restricted awards is based on the company’s stock price as of the date of grant. The weighted average grant date fair value of the shares granted during fiscal 2019 , 2018 and 2017 was $66.22 , $54.10 and $53.49 , respectively. The total fair value of restricted stock shares vested and deferred units distributed during fiscal 2019 , 2018 and 2017 was $2.0 million , $2.9 million and $2.0 million , respectively. Restricted stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date. NEDs may elect to receive up to 100% of their annual directors’ fees in Sysco common stock on either an annual or deferred basis. Sysco provides a matching grant of 50% of the number of shares received for the stock election subject to certain limitations. As a result of such elections, a total of 10,672 , 21,478 and 22,094 shares with a weighted-average grant date fair value of $67.45 , $54.69 and $51.46 per share were issued in fiscal 2019 , 2018 and 2017 , respectively, in the form of fully vested common stock or deferred units. The total fair value of common stock issued as a result of election shares and deferred units distributed during fiscal 2019 , 2018 and 2017 was $0.7 million , $1.2 million and $1.1 million , respectively. Common stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date. As of June 29, 2019 , there were 73,548 fully vested deferred units outstanding that will convert into shares of Sysco common stock upon dates selected by the respective NED. Summary of Equity Instruments Other Than Stock Options The following summary presents information regarding outstanding non-vested awards as of June 29, 2019 and changes during the fiscal year then ended with regard to these awards under the stock incentive plans. Award types represented include restricted stock units granted to employees, restricted awards granted to non-employee directors and PSUs. Shares Weighted Average Grant Date Fair Value Per Share Non-vested as of June 30, 2018 3,086,884 $ 51.08 Granted 1,262,405 69.29 Vested (764,762 ) 48.13 Forfeited (296,786 ) 55.05 Non-vested as of June 29, 2019 3,287,741 $ 58.40 2015 Employee Stock Purchase Plan The Sysco ESPP permits employees to invest in Sysco common stock by means of periodic payroll deductions at a discount of 15% from the closing price on the last business day of each calendar quarter. The total number of shares that may be sold pursuant to the ESPP may not exceed 79,000,000 shares, of which 6,238,555 remained available as of June 29, 2019 . During fiscal 2019 , 986,631 shares of Sysco common stock were purchased by the participants, as compared to 1,078,597 shares purchased in fiscal 2018 and 1,103,995 shares purchased in fiscal 2017 . The weighted average fair value of employee stock purchase rights issued pursuant to the ESPP was $10.17 , $8.38 and $7.73 per share during fiscal 2019 , 2018 and 2017 , respectively. The fair value of the stock purchase rights was calculated as the difference between the stock price at date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost included in operating expenses in the consolidated results of operations was $104.9 million , $93.8 million and $83.9 million for fiscal 2019 , 2018 and 2017 , respectively. The total income tax benefit for share-based compensation arrangements was $21.7 million , $19.4 million and $30.0 million for fiscal 2019 , 2018 and 2017 , respectively. As of June 29, 2019 , there was $116.4 million of total unrecognized share-based compensation cost, which is expected to be recognized over a weighted-average period of 1.84 years . Cash received from option exercises and purchases of shares under the ESPP was $253.1 million , $268.8 million and $204.8 million during fiscal 2019 , 2018 and 2017 , respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $32.4 million , $38.4 million and $38.9 million during fiscal 2019 , 2018 and 2017 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Provisions For financial reporting purposes, earnings before income taxes consists of the following: 2019 2018 2017 (In thousands) U.S. $ 1,910,549 $ 1,765,793 $ 1,569,073 Foreign 95,287 190,431 197,157 Total $ 2,005,836 $ 1,956,224 $ 1,766,230 The income tax provision for each fiscal year consists of the following: 2019 2018 2017 (In thousands) U.S. federal income taxes $ 262,940 $ 399,254 $ 534,266 State and local income taxes 73,835 62,670 69,913 Foreign income taxes (5,210 ) 63,534 19,548 Total $ 331,565 $ 525,458 $ 623,727 The current and deferred components of the income tax provisions for each fiscal year are as follows: 2019 2018 2017 (In thousands) Current $ 458,284 $ 337,550 $ 675,573 Deferred (126,719 ) 187,908 (51,846 ) Total $ 331,565 $ 525,458 $ 623,727 The deferred tax provisions result from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred Tax Assets and Liabilities Significant components of Sysco’s deferred tax assets and liabilities are as follows: Jun. 29, 2019 Jun. 30, 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 274,231 $ 226,274 Pension 157,670 115,361 Share-based compensation 39,218 34,486 Deferred compensation 29,694 29,512 Receivables 17,383 13,001 Self-insured liabilities 16,496 — Inventory 12,139 14,728 Foreign currency remeasurement losses and currency hedge 1,725 15,796 Other 32,641 33,386 Deferred tax assets before valuation allowances 581,197 482,544 Valuation allowances (127,807 ) (123,237 ) Total deferred tax assets 453,390 359,307 Deferred tax liabilities: Excess tax depreciation and basis differences of assets 163,123 180,950 Goodwill and intangible assets 358,847 373,041 Other 22,892 40,774 Total deferred tax liabilities 544,862 594,765 Total net deferred tax assets (liabilities) $ (91,472 ) $ (235,458 ) The company’s deferred tax asset for net operating loss carryforwards as of June 29, 2019 and June 30, 2018 consisted of state and foreign net operating tax loss carryforwards. The state net operating loss carryforwards outstanding as of June 29, 2019 expire in fiscal years 2020 through 2038 . The foreign net operating loss carryforward periods vary by jurisdiction, from 17 years to unlimited. The company assesses the recoverability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. The company considers all available evidence (both positive and negative) in determining whether a valuation allowance is required. As a result of the company’s analysis, it was concluded that, as of June 29, 2019 , a valuation allowance of $127.8 million should be established against the portion of the deferred tax asset attributable to certain foreign and U.S. state losses. The company will continue to monitor facts and circumstances in the reassessment of the likelihood that net operating loss carryforwards will be realized. Tax Cuts and Jobs Act On December 22, 2017 , the U.S. government enacted the Tax Act. The Tax Act made broad and complex changes to the U.S. tax code that affected the company’s fiscal year ending June 30, 2018, including, but not limited to: (1) reducing the U.S. federal corporate tax rate; (2) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over 8 years ; and (3) bonus depreciation that will allow for full expensing of qualified property placed in service after September 27, 2017 . The Tax Act also establishes new tax laws that could affect Sysco in future fiscal years, including, but not limited to (1) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (2) a new provision designed to tax global intangible low-taxed income (GILTI); (3) creation of the base erosion anti-abuse tax (BEAT), a new minimum tax; (4) a new limitation on deductible interest; (5) repeal of the domestic production activity deduction; and (6) increased limitations on the deductibility of certain executive compensation. Also, in December 2017, the Securities and Exchange Commission staff issued SAB 118, which provided guidance on accounting for the tax effects of the Tax Act. SAB 118 provided a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC Topic 740, “Income Taxes” (ASC 740). In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act was incomplete, but it was able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. If a company could not determine a provisional estimate to be included in the financial statements, it continued to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In accordance with SAB 118, the company recognized provisional impacts related to re-measurement of deferred tax assets and liabilities and the one-time transition tax in its results for the annual period ended June 30, 2018. In the second quarter of fiscal 2019, the company completed its accounting for all aspects of the Tax Act, with a corresponding adjustment of $15.1 million to income tax expense related to transition tax, and a benefit of $3.2 million attributable to realizability of certain deferred tax assets. Effective Tax Rates Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows: 2019 2018 2017 U.S. statutory federal income tax rate 21.00 % 28.00 % 35.00 % State and local income taxes, net of any 3.35 2.48 2.61 Foreign income taxes (1.42 ) 0.07 (2.81 ) Uncertain tax position (0.31 ) (0.22 ) 0.01 Tax benefit of equity-based compensation (2.07 ) (2.66 ) — Impact of U.S. Tax Reform (4.64 ) 0.13 — Other 0.62 (0.95 ) 0.50 Effective income tax rate 16.53 % 26.85 % 35.31 % The effective tax rate of 16.53% for fiscal 2019 was favorably impacted by the reduction of the statutory rate in the U.S. and certain foreign jurisdictions, the excess tax benefits attributable to equity compensation exercises and the favorable impact of $95.1 million of foreign tax credits included within Impacts of U.S. Tax Reform. These credits fully offset our transition tax liability , as well as a reduction of the statutory tax rate in the U.S. and certain foreign jurisdictions. Foreign earnings taxed at rates different than our domestic tax rate had the impact of decreasing the effective tax rate. The effective tax rate of 26.85% for fiscal 2018 was favorably impacted by the adoption of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), as well as a reduction of the statutory tax rate in the U.S. and certain foreign jurisdictions. Foreign earnings taxed at rates different than our domestic tax rate had the impact of increasing the effective tax rate. The effective tax rate of 35.31% for fiscal 2017 was favorably impacted by tax credits allowed against U.S. Federal and State income tax liabilities, as well as a reduction of the statutory tax rate in certain foreign jurisdictions. Indefinitely reinvested earnings taxed at foreign statutory rates less than our domestic tax rate also had the impact of reducing the effective tax rate. Uncertain Tax Positions A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2019 2018 (In thousands) Unrecognized tax benefits at beginning of year $ 12,195 $ 16,278 Additions for tax positions related to prior years 20,508 652 Reductions for tax positions related to prior years (6,086 ) (4,033 ) Reductions due to settlements with taxing authorities (508 ) (702 ) Unrecognized tax benefits at end of year $ 26,109 $ 12,195 As of June 29, 2019 , the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $4.6 million . As of June 30, 2018 , the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $8.5 million . The expense recorded for interest and penalties related to unrecognized tax benefits was not material in any year presented. If Sysco were to recognize all unrecognized tax benefits recorded as of June 29, 2019 , approximately $24.8 million of the $26.1 million reserve would reduce the effective tax rate. If Sysco were to recognize all unrecognized tax benefits recorded as of June 30, 2018 , approximately $9.6 million of the $12.2 million reserve would reduce the effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months either because Sysco’s positions are sustained on audit or because the company agrees to their disallowance. Items that may cause changes to unrecognized tax benefits primarily include the consideration of various filing requirements in various jurisdictions and the allocation of income and expense between tax jurisdictions. In addition, the amount of unrecognized tax benefits recognized within the next twelve months may decrease due to the expiration of the statute of limitations for certain years in various jurisdictions; however, it is possible that a jurisdiction may open an audit on one of these years prior to the statute of limitations expiring. Sysco anticipates an immaterial decrease to the reserve within twelve months as a result of lapse of statutes. Sysco’s federal tax returns for 2018 and subsequent tax years have statutes of limitations that remain open for audit. As of June 29, 2019 , Sysco’s tax returns in the majority of the state and local and material foreign jurisdictions are no longer subject to audit for the years before 2011. Other Undistributed income of certain consolidated foreign subsidiaries at June 29, 2019 amounted to $384.8 million , for which no deferred U.S. income tax provision has been recorded because Sysco intends to indefinitely reinvest such income in those foreign operations. An estimate of any U.S. income or foreign withholding taxes that may be applicable upon actual or deemed repatriation is not practical due to the complexities associated with the hypothetical calculation. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 29, 2019 | |
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. Although the final results of legal proceedings cannot be predicted with certainty, 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. Other Commitments Sysco has committed to aggregate product purchases for resale in order to benefit from a centralized approach to purchasing. A majority of these agreements expire within one year; however, certain agreements have terms through fiscal 2024 . These agreements commit the company to a minimum volume at various pricing terms, including fixed pricing, variable pricing or a combination thereof. Minimum amounts committed to as of June 29, 2019 totaled approximately $2.6 billion . Minimum amounts committed to by year are as follows: Amount (In thousands) 2020 $ 1,716,184 2021 391,136 2022 178,308 2023 175,750 2024 171,757 Sysco has contracts with various third-party service providers to receive information technology services. The services have been committed for periods up to fiscal 2024 and may be extended. As of June 29, 2019 , the total remaining cost of the services over that period is expected to be approximately $459.2 million . A portion of this committed amount may be reduced by Sysco utilizing less than estimated resources and can be increased by Sysco utilizing more than estimated resources. Certain agreements allow adjustments for inflation. Sysco may also cancel a portion or all of the services provided subject to termination fees that decrease over time. If Sysco were to terminate all of the services in fiscal 2020 , the estimated termination fees incurred in fiscal 2020 would be approximately $48.7 million . |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The company has aggregated certain of its operating segments into three reportable segments. “Other” financial information is attributable to the company’s other operating segments that do not meet the quantitative disclosure thresholds. • U.S. Foodservice Operations - primarily includes U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products; • International Foodservice Operations - includes operations in the Americas and Europe, which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as the company’s operations that distribute to international customers. The company’s European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden; • SYGMA - the company’s U.S. customized distribution subsidiary; and • Other - primarily the company’s hotel supply operations and Sysco Labs, which includes the company’s suite of technology solutions that help support the business needs of the company’s customers and provide support for some of the company’s business technology needs. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These also include all share-based compensation costs. The following tables set forth certain financial information for Sysco’s business segments. Fiscal Year 2019 2018 2017 Sales: (In thousands) U.S. Foodservice Operations $ 41,288,188 $ 39,642,263 $ 37,604,698 International Foodservice Operations 11,493,040 11,518,565 10,613,059 SYGMA 6,244,328 6,557,033 6,178,909 Other 1,088,366 1,009,463 974,473 Total $ 60,113,922 $ 58,727,324 $ 55,371,139 Fiscal Year 2019 2018 2017 Operating income: (In thousands) U.S. Foodservice Operations $ 3,192,816 $ 3,056,817 $ 2,896,357 International Foodservice Operations 125,443 193,864 243,790 SYGMA 27,780 24,318 23,299 Other 35,848 39,485 30,217 Total segments 3,381,887 3,314,484 3,193,663 Corporate (1,051,737 ) (1,000,428 ) (1,139,047 ) Total operating income 2,330,150 2,314,056 2,054,616 Interest expense 360,423 395,483 302,878 Other expense (income), net (36,109 ) (37,651 ) (14,492 ) Earnings before income taxes $ 2,005,836 $ 1,956,224 $ 1,766,230 Fiscal Year 2019 2018 2017 Depreciation and amortization: (In thousands) U.S. Foodservice Operations $ 342,277 $ 348,041 $ 266,024 International Foodservice Operations 248,914 258,156 243,628 SYGMA 35,473 36,367 34,890 Other 10,868 9,599 10,678 Total segments 637,532 652,163 555,220 Corporate 126,403 113,335 346,772 Total $ 763,935 $ 765,498 $ 901,992 Fiscal Year 2019 2018 2017 Capital Expenditures: (In thousands) U.S. Foodservice Operations $ 327,005 $ 262,887 $ 194,714 International Foodservice Operations 249,527 157,139 228,564 SYGMA 36,396 45,132 50,722 Other 25,003 11,406 13,237 Total segments 637,931 476,564 487,237 Corporate 54,460 211,251 199,141 Total $ 692,391 $ 687,815 $ 686,378 Fiscal Year 2019 2018 2017 Assets: (In thousands) U.S. Foodservice Operations $ 7,238,309 $ 7,039,354 $ 6,675,543 International Foodservice Operations 5,888,275 6,112,666 6,433,815 SYGMA 624,720 662,290 625,653 Other 477,038 452,426 448,885 Total segments 14,228,342 14,266,736 14,183,896 Corporate 3,738,180 3,803,668 3,572,759 Total $ 17,966,522 $ 18,070,404 $ 17,756,655 Information concerning geographic areas is as follows: Fiscal Year 2019 2018 2017 (In thousands) Sales: United States $ 48,257,385 $ 46,812,297 $ 44,395,765 Canada 4,660,030 4,661,615 4,346,894 United Kingdom 3,133,793 3,176,069 2,974,133 France 1,581,663 1,625,407 1,426,973 Other 2,481,051 2,451,936 2,227,374 Total $ 60,113,922 $ 58,727,324 $ 55,371,139 Long-lived assets: United States $ 3,361,629 $ 3,448,164 $ 3,252,980 Canada 334,177 318,410 329,090 France 329,923 240,507 284,611 United Kingdom 270,613 319,664 303,178 Other 205,363 194,915 207,443 Total $ 4,501,705 $ 4,521,660 $ 4,377,302 The sales mix for the principal product categories by segment is disclosed in Note 4 , “Revenue.” |
SUPPLEMENTAL GUARANTOR INFORMAT
SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES | 12 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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 at that time entered into full and unconditional guarantees of all outstanding senior notes and debentures of Sysco Corporation. All subsequent issuances of senior notes and debentures in the U.S. have also been guaranteed by these subsidiaries. As of June 29, 2019 , Sysco had a total of $7.8 billion in senior notes and debentures 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 (certain 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 Consolidated Balance Sheet Jun. 29, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 121,993 $ 4,195,543 $ 3,823,969 $ — $ 8,141,505 Intercompany receivables 6,162,303 30,469 3,220,237 (9,413,009 ) — Investment in subsidiaries 4,680,530 — 1,126,315 (5,806,845 ) — Plant and equipment, net 252,101 2,162,668 2,086,936 — 4,501,705 Other assets 787,986 718,600 4,372,725 (555,999 ) 5,323,312 Total assets $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Current liabilities $ 465,101 $ 1,018,650 $ 4,619,432 $ — $ 6,103,183 Intercompany payables 686,116 3,443,182 5,283,711 (9,413,009 ) — Long-term debt 7,668,314 7,938 445,806 — 8,122,058 Other liabilities 682,779 545,391 531,081 (555,999 ) 1,203,252 Noncontrolling interest — — 35,426 — 35,426 Shareholders’ equity 2,502,603 2,092,119 3,714,726 (5,806,845 ) 2,502,603 Total liabilities and shareholders’ equity $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Condensed Consolidated Balance Sheet Jun. 30, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 157,994 $ 4,018,444 $ 3,827,015 $ — $ 8,003,453 Intercompany receivables 6,621,438 270,748 5,793,352 (12,685,538 ) — Investment in subsidiaries 4,896,004 — 983,625 (5,879,629 ) — Plant and equipment, net 278,855 2,181,576 2,061,229 — 4,521,660 Other assets 788,473 611,004 4,593,537 (447,723 ) 5,545,291 Total assets $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Current liabilities $ 1,233,541 $ 886,305 $ 4,468,900 $ — $ 6,588,746 Intercompany payables 882,487 3,798,134 8,004,917 (12,685,538 ) — Long-term debt 7,470,334 8,285 62,146 — 7,540,765 Other liabilities 649,445 508,387 686,178 (447,723 ) 1,396,287 Noncontrolling interest — — 37,649 — 37,649 Shareholders’ equity 2,506,957 1,880,661 3,998,968 (5,879,629 ) 2,506,957 Total liabilities and shareholders’ equity $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Condensed Consolidated Statement of Comprehensive Income For the 52-Week Period Ended Jun. 29, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 37,453,729 $ 25,002,655 $ (2,342,462 ) $ 60,113,922 Cost of sales — 30,282,665 20,764,732 (2,342,462 ) 48,704,935 Gross profit — 7,171,064 4,237,923 — 11,408,987 Operating expenses 861,914 4,163,261 4,053,662 — 9,078,837 Operating income (loss) (861,914 ) 3,007,803 184,261 — 2,330,150 Interest expense (income) (1) 193,457 (104,341 ) 271,307 — 360,423 Other expense (income), net (38,360 ) (489 ) 2,740 — (36,109 ) Earnings (losses) before income taxes (1,017,011 ) 3,112,633 (89,786 ) — 2,005,836 Income tax (benefit) provision (454,578 ) 792,542 (6,399 ) — 331,565 Equity in earnings of subsidiaries 2,236,704 — 464,701 (2,701,405 ) — Net earnings 1,674,271 2,320,091 381,314 (2,701,405 ) 1,674,271 Other comprehensive income (loss) (190,460 ) — (119,126 ) 119,126 (190,460 ) Comprehensive income $ 1,483,811 $ 2,320,091 $ 262,188 $ (2,582,279 ) $ 1,483,811 (1) Interest expense (income) includes $104.3 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 52-Week Period Ended Jun. 30, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 35,963,053 $ 24,784,842 $ (2,020,571 ) $ 58,727,324 Cost of sales — 29,102,278 20,560,226 (2,020,571 ) 47,641,933 Gross profit — 6,860,775 4,224,616 — 11,085,391 Operating expenses 804,202 4,007,565 3,959,568 — 8,771,335 Operating income (loss) (804,202 ) 2,853,210 265,048 — 2,314,056 Interest expense (income) (1) 294,401 (110,715 ) 211,797 — 395,483 Other expense (income), net (39,503 ) 2,270 (418 ) — (37,651 ) Earnings (losses) before income taxes (1,059,100 ) 2,961,655 53,669 — 1,956,224 Income tax (benefit) provision (135,385 ) 655,824 5,019 — 525,458 Equity in earnings of subsidiaries 2,354,481 — — (2,354,481 ) — Net earnings 1,430,766 2,305,831 48,650 (2,354,481 ) 1,430,766 Other comprehensive income (loss) 89,913 — (22,987 ) 22,987 89,913 Comprehensive income $ 1,520,679 $ 2,305,831 $ 25,663 $ (2,331,494 ) $ 1,520,679 (1) Interest expense (income) includes $110.7 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 52-Week Period Ended Jul. 1, 2017 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 34,325,884 $ 22,862,131 $ (1,816,876 ) $ 55,371,139 Cost of sales — 27,690,469 18,940,039 (1,816,876 ) 44,813,632 Gross profit — 6,635,415 3,922,092 — 10,557,507 Operating expenses 935,472 3,903,183 3,664,236 — 8,502,891 Operating income (loss) (935,472 ) 2,732,232 257,856 — 2,054,616 Interest expense (income) (1) 405,030 (122,012 ) 19,860 — 302,878 Other expense (income), net (27,713 ) 3,530 9,691 — (14,492 ) Earnings (losses) before income taxes (1,312,789 ) 2,850,714 228,305 — 1,766,230 Income tax (benefit) provision (463,598 ) 1,006,703 80,622 — 623,727 Equity in earnings of subsidiaries 1,991,694 — — (1,991,694 ) — Net earnings 1,142,503 1,844,011 147,683 (1,991,694 ) 1,142,503 Other comprehensive income (loss) 95,381 — (9,317 ) 9,317 95,381 Comprehensive income $ 1,237,884 $ 1,844,011 $ 138,366 $ (1,982,377 ) $ 1,237,884 (1) Interest expense (income) includes $122.0 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Cash Flows For the 52-Week Period Ended Jun. 29, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 1,683,417 $ 1,755,756 $ 1,092,034 $ (2,120,000 ) $ 2,411,207 Investing activities 544,149 (263,029 ) (440,743 ) (583,232 ) (742,855 ) Financing activities (2,226,842 ) (1,486,927 ) (826,737 ) 2,703,232 (1,837,274 ) Effect of exchange rates on cash — — (14,677 ) — (14,677 ) Net increase (decrease) in cash, cash equivalents and restricted cash 724 5,800 (190,123 ) — (183,599 ) Cash, cash equivalents and restricted cash at the beginning of period 29,144 111,843 574,857 — 715,844 Cash, cash equivalents and restricted cash at the end of period $ 29,868 $ 117,643 $ 384,734 $ — $ 532,245 (1) Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation, partially offset by intercompany loans issued. Condensed Consolidated Cash Flows For the 52-Week Period Ended Jun. 30, 2018 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 1,051,976 $ 2,548,139 $ 799,062 $ (2,243,797 ) $ 2,155,380 Investing activities 58,864 (439,178 ) (503,745 ) (26,354 ) (910,413 ) Financing activities (1,193,272 ) (2,015,906 ) (471,442 ) 2,270,151 (1,410,469 ) Effect of exchange rates on cash — — 11,844 — 11,844 Net increase (decrease) in cash, cash equivalents and restricted cash (82,432 ) 93,055 (164,281 ) — (153,658 ) Cash, cash equivalents and restricted cash at the beginning of period 111,576 18,788 739,138 — 869,502 Cash, cash equivalents and restricted cash at the end of period $ 29,144 $ 111,843 $ 574,857 $ — $ 715,844 (1) Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 52-Week Period Ended Jul. 1, 2017 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 1,523,519 $ 3,028,819 $ 658,229 $ (2,978,000 ) $ 2,232,567 Investing activities (3,267,779 ) (261,330 ) (175,565 ) 127,000 (3,577,674 ) Financing activities (1,525,995 ) (2,777,661 ) (229,931 ) 2,851,000 (1,682,587 ) Effect of exchange rates on cash — — (22,104 ) — (22,104 ) Net increase (decrease) in cash and cash equivalents (3,270,255 ) (10,172 ) 230,629 — (3,049,798 ) Cash and cash equivalents at the beginning of period 3,376,412 34,379 508,509 — 3,919,300 Cash and cash equivalents at the end of period $ 106,157 $ 24,207 $ 739,138 $ — $ 869,502 (1) Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation. |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Jun. 29, 2019 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) Sysco’s fiscal year includes four quarterly periods that are comprised of thirteen weeks each. Financial information for each 13-week period in the fiscal years ended June 29, 2019 and June 30, 2018 is set forth below: Fiscal 2019 Quarter Ended September 29 December 29 March 30 (1) June 29 (2) Fiscal Year (In thousands except for per share data) Sales $ 15,215,279 $ 14,765,707 $ 14,658,074 $ 15,474,862 $ 60,113,922 Cost of sales 12,311,494 11,993,995 11,903,776 12,495,670 48,704,935 Gross profit 2,903,785 2,771,712 2,754,298 2,979,192 11,408,987 Operating expenses 2,275,645 2,319,817 2,224,713 2,258,662 9,078,837 Operating income 628,140 451,895 529,585 720,530 2,330,150 Interest expense 89,016 87,113 94,514 89,780 360,423 Other expense (income), net 1,132 10,197 4,120 (51,558 ) (36,109 ) Earnings before income taxes 537,992 354,585 430,951 682,308 2,005,836 Income taxes 106,950 87,205 (9,132 ) 146,542 331,565 Net earnings $ 431,042 $ 267,380 $ 440,083 $ 535,766 $ 1,674,271 Per share: Basic net earnings $ 0.83 $ 0.52 $ 0.86 $ 1.04 $ 3.24 Diluted net earnings 0.81 0.51 0.85 1.03 3.20 Dividends declared 0.36 0.39 0.39 0.39 1.53 (1) Sysco’s third quarter of fiscal 2019 results included the recognition of $95.1 million of foreign tax credits generated as a result of distributions to Sysco from its foreign operations at the end of fiscal 2018. See Note 20 , “Income Taxes.” (2) Sysco’s fourth quarter of fiscal 2019 results included a $66.3 million gain on the sale of Iowa Premium, LLC. Fiscal 2018 Quarter Ended September 30 December 30 March 31 (1) June 30 Fiscal Year (In thousands except for per share data) Sales $ 14,650,424 $ 14,411,490 $ 14,349,504 $ 15,315,906 $ 58,727,324 Cost of sales 11,856,756 11,712,104 11,673,876 12,399,197 47,641,933 Gross profit 2,793,668 2,699,386 2,675,628 2,916,709 11,085,391 Operating expenses 2,174,303 2,170,834 2,193,425 2,232,773 8,771,335 Operating income 619,365 528,552 482,203 683,936 2,314,056 Interest expense 80,884 85,986 136,145 92,468 395,483 Other expense (income), net (7,975 ) (9,162 ) (18,826 ) (1,688 ) (37,651 ) Earnings before income taxes 546,456 451,728 364,884 593,156 1,956,224 Income taxes 178,816 167,615 34,799 144,228 525,458 Net earnings $ 367,640 $ 284,113 $ 330,085 $ 448,928 $ 1,430,766 Per share: Basic net earnings $ 0.70 $ 0.55 $ 0.63 $ 0.86 $ 2.74 Diluted net earnings 0.69 0.54 0.63 0.85 2.70 Dividends declared 0.33 0.36 0.36 0.36 1.41 (1) Sysco’s third quarter of fiscal 2018 included a charge for $53.1 million in interest expense related to the redemption of senior notes as well as tax benefits derived from our $380.0 million contribution to our U.S. Retirement Plan. See Note 13 , “Debt and Other Financing Arrangements” and Note 20 , “Income Taxes.” |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Business and Consolidation | Business and Consolidation Sysco Corporation, acting through its subsidiaries and divisions (Sysco or the company), is engaged in the marketing and distribution of a wide range of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for over 650,000 customers from 325 distribution facilities located throughout North America and Europe. Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52 -week year ended June 29, 2019 for fiscal 2019 , June 30, 2018 for fiscal 2018 and July 1, 2017 for fiscal 2017 . The accompanying financial statements include the accounts of Sysco and its consolidated subsidiaries. All significant intercompany transactions and account balances have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses. Actual results could differ from the estimates used. |
Fiscal period | Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52 -week year ended June 29, 2019 for fiscal 2019 , June 30, 2018 for fiscal 2018 and July 1, 2017 for fiscal 2017 . |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash equivalents such as cash deposits, 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, which are recorded at fair value. |
Accounts Receivable and Notes Receivable, Less Allowances | Accounts Receivable and Notes Receivable, Less Allowances Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts based on a combination of factors. The company utilizes specific criteria to determine uncollectible receivables to be written off including whether a customer has filed for or been placed in bankruptcy, has had accounts referred to outside parties for collection or has had accounts past due over specified periods. In these instances, a specific allowance for doubtful accounts is recorded to reduce the receivable to the net amount reasonably expected to be collected. Allowances are recorded for all other receivables based on an analysis of historical trends of write-offs and recoveries. The company utilizes arrangements to sell portions of its trade accounts receivable to third-party financial institutions on a non-recourse basis. The arrangements meet the requirements for the receivables transferred to be accounted for as sales. Proceeds from the sales are reported net of negotiated discount and are recorded as a reduction to accounts receivable outstanding in the company’s consolidated balance sheets and as cash flows from operating activities in the company’s consolidated statements of cash flows. The discounts and fees associated with these arrangements were not material for the fiscal year ended June 29, 2019 |
Inventories | Inventories Inventories consisting primarily of finished goods include food and related products and lodging products held for resale and are valued at the lower of cost (first-in, first-out method) and net realizable value. Elements of costs include the purchase price of the product and freight charges to deliver the product to the company’s warehouses and are net of certain cash received from vendors (see “Vendor Consideration”). |
Plant and Equipment | Plant and Equipment Capital additions, improvements and major replacements are classified as plant and equipment and are carried at cost. Depreciation is recorded using the straight-line method, which reduces the book value of each asset in equal amounts over its estimated useful life, and is included within operating expenses in the consolidated results of operations. Maintenance, repairs and minor replacements are charged to earnings when they are incurred. Upon the disposition of an asset, its accumulated depreciation is deducted from the original cost, and any gain or loss is reflected in current earnings. |
Long-Lived Assets | Long-Lived Assets Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life based on updated projections on an undiscounted basis. For assets held for use, Sysco groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Intangibles with definite lives are amortized over their useful lives in a manner consistent with underlying cash flow, which generally ranges from two to fifteen years . Management reviews finite-lived intangibles for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the finite-lived intangibles are estimated over the intangible asset’s useful life based on updated projections on an undiscounted basis. If the evaluation indicates that the carrying value of the finite-lived intangible asset may not be recoverable, the potential impairment is measured at fair value. |
Goodwill and Indefinite-Lived Intangibles | Goodwill and Indefinite-Lived Intangibles Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. This annual testing may be performed utilizing either a qualitative or quantitative assessment; however, if a qualitative assessment is performed and it is determined that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative test is performed. For fiscal 2019 , the company utilized a qualitative assessment for certain reporting units. For the remaining reporting units, Sysco performed a quantitative test using a combination of the income and market approaches. The evaluation of fair value requires the use of projections, estimates and assumptions as to the future performance of the operations in performing a discounted cash flow analysis, as well as assumptions regarding sales and earnings multiples that would be applied in comparable acquisitions. The company does not believe the estimates used in the analysis are reasonably likely to change materially in the future, but Sysco will continue to assess the estimates in the future based on the expectations of the reporting units. In the fiscal 2019 assessment, the estimated fair values exceeded the carrying values for two reporting units by 13% and 15% , respectively, with goodwill of $226.0 million in the aggregate as of June 29, 2019 , recorded for these reporting units. |
Derivative Financial Instruments | Derivative Financial Instruments All derivatives are recognized as assets or liabilities within the consolidated balance sheets at fair value at their gross values. Gains or losses on derivative financial instruments designated as fair value hedges are recognized immediately in the consolidated results of operations, along with the offsetting gain or loss related to the underlying hedged item. Gains or losses on derivative financial instruments designated as cash flow hedges are recorded as a separate component of shareholders’ equity from inception of the hedges and are reclassified to the Consolidated Results of Operations in conjunction with the recognition of the underlying hedged item. For net investment hedges, the remeasurement gain or loss is recorded in AOCI and will be subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. |
Investments in Corporate-Owned Life Insurance | Investments in Corporate-Owned Life Insurance |
Treasury Stock | Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of all foreign subsidiaries are translated at current exchange rates. Related translation adjustments are recorded as a component of AOCI (loss). |
Revenue Recognition | Revenue Recognition On July 1, 2018, Sysco adopted ASC Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under ASC Topic 605, Revenue Recognition. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for fiscal 2019 as a result of applying ASC Topic 606. The accounting policies and other disclosures are below, as well as the disclosure of disaggregated revenues in Note 4 , “Revenue.” The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and, therefore, not assessed as performance obligations. Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses. Product Sales Revenues Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment. Contract Balances After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $3.9 billion and $3.8 billion as of June 29, 2019 and June 30, 2018 , respectively. Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other Assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of June 29, 2019 , Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. |
Vendor Consideration | Vendor Consideration Sysco recognizes consideration received from vendors as a reduction to cost of sales when the services performed in connection with the monies received are completed and when the related product has been sold by Sysco. There are several types of cash consideration received from vendors. In many instances, the vendor consideration is in the form of a specified amount per case or per pound. In these instances, Sysco will recognize the vendor consideration as a reduction of cost of sales when the product is sold. |
Shipping and Handling Costs | Shipping and Handling Costs |
Insurance Program | Insurance Program Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. In fiscal 2018, Sysco created a wholly owned captive insurance subsidiary (the Captive) with the primary purpose to enhance Sysco’s risk financing strategies by providing Sysco the opportunity to negotiate insurance premiums in the non-retail insurance market. The Captive must maintain a sufficient level of cash to fund future reserve payments and secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. The Captive holds restricted assets in order to meet solvency requirements, including a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale, and cash and restricted cash equivalents held in a cash deposit account. Further, Sysco has letters of credit available to collateralize the remaining liabilities not covered by restricted cash, restricted cash equivalents and marketable securities. The company also maintains a fully self-insured group medical program. Liabilities associated with these risks are estimated in part by considering historical claims experience, medical cost trends, demographic factors, severity factors and other actuarial assumptions. |
Share-Based Compensation | Share-Based Compensation Sysco recognizes expense for its share-based compensation based on the fair value of the awards that are granted. The fair value of performance share unit awards is determined based on the target number of shares of common stock and the company’s stock price on the date of grant and subsequently adjusted based on actual and forecasted performance compared to planned targets. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company’s stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. The method for estimating the fair value of stock options has not changed in the past three years. During the vesting period, Sysco reduces share-based compensation expense for estimated forfeitures, which is based on analysis of historical trends reviewed on an annual basis. Sysco’s estimate of forfeitures is applied at the grant level. The estimate of forfeitures is trued up to actual forfeitures at the end of each vesting period. |
Income Taxes | Income Taxes Sysco recognizes deferred tax assets and liabilities based on the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. The additional U.S. federal tax burden as a result of the global intangible low taxed income (GILTI) regime is accounted for as a periodic cost. The determination of the company’s provision for income taxes requires significant judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes primarily reflects a combination of income earned and taxed in the various United States (U.S.) federal and state, as well as various foreign jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
Acquisitions | Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is preliminarily allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. Subsequent changes to preliminary amounts are made prospectively. |
Basis of Presentation | Basis of Presentation The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income, changes in consolidated shareholders’ equity 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. Sysco has interests in various jointly owned foodservice operations in Mexico, Panama and Sweden for which it consolidates the results of the operations; therefore, the financial position, results of operations and cash flows for these companies have been included in Sysco’s consolidated financial statements. The value of the noncontrolling interest in each entity is considered redeemable due to certain features of the investment agreement and has, therefore, been presented as mezzanine equity, which is outside of permanent equity, in the consolidated balance sheets. The income attributable to the noncontrolling interest is located within Other expense (income), net, in the consolidated results of operations, as this amount is not material. The non-cash add back for the change in the value of the noncontrolling interest is located within Other non-cash items on the consolidated cash flows. |
Reclassifications | Reclassifications Prior year amounts have been reclassified to conform with the current year presentation. |
New Accounting Pronouncements | Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018, using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for fiscal 2019. Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments , to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Business Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for fiscal 2019. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits ( Topic 715 ): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $35.5 million for fiscal 2019 being reported in Other expense (income), net that would have previously been included in Operating expenses. The ASU was applied retrospectively, resulting in a net benefit of $14.9 million for fiscal 2018 and a net cost of $1.4 million for fiscal 2017, reported in Other expense (income), net. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases, and has issued subsequent amendments to Topic 842. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco. To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company has substantially completed its assessment of the accounting required under Topic 842 and the estimated impact upon adoption. To facilitate the adoption of the provisions of the new standard, the company has implemented a third-party lease accounting software. The company adopted this standard on June 30, 2019, the first day of fiscal 2020. The company will elect the package of practical expedients permitted under the transition guidance within Topic 842, which, among other things, allows the company to carry forward historical lease classifications. The estimated impact of the adoption to the Sysco’s consolidated financial statements includes the recognition of right-of-use assets and liabilities of between $500 million to $600 million related to operating leases as of June 30, 2019. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Balance Sheets: Jun. 29, 2019 Jun. 30, 2018 Jul. 1, 2017 (In thousands) Cash and cash equivalents $ 513,460 $ 552,325 $ 869,502 Restricted cash (1) 18,785 163,519 — Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 532,245 $ 715,844 $ 869,502 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
Schedule of Restrictions on Cash and Cash Equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Balance Sheets: Jun. 29, 2019 Jun. 30, 2018 Jul. 1, 2017 (In thousands) Cash and cash equivalents $ 513,460 $ 552,325 $ 869,502 Restricted cash (1) 18,785 163,519 — Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 532,245 $ 715,844 $ 869,502 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 52-Week Period Ended Jun. 29, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,422,126 $ 1,627,392 $ 1,520,907 $ — $ 11,570,425 Canned and dry products 7,344,015 2,326,584 270,651 — 9,941,250 Frozen fruits, vegetables, bakery and other 5,708,030 2,074,991 1,194,944 — 8,977,965 Dairy products 4,265,320 1,243,773 604,624 — 6,113,717 Poultry 4,121,367 833,844 892,316 — 5,847,527 Fresh produce 3,801,828 1,022,503 241,602 — 5,065,933 Paper and disposables 2,797,521 369,329 731,511 61,908 3,960,269 Seafood 2,550,524 717,703 113,746 — 3,381,973 Beverage products 1,127,701 531,247 563,401 86,845 2,309,194 Other (1) 1,149,756 745,674 110,626 939,613 2,945,669 Total Sales $ 41,288,188 $ 11,493,040 $ 6,244,328 $ 1,088,366 $ 60,113,922 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 52-Week Period Ended Jun. 30, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,123,565 $ 1,666,247 $ 1,523,029 $ — $ 11,312,841 Canned and dry products 7,093,691 2,367,921 327,785 — 9,789,397 Frozen fruits, vegetables, bakery and other 5,327,020 2,538,265 1,160,369 — 9,025,654 Poultry 4,020,340 833,917 1,125,085 — 5,979,342 Dairy products 4,136,973 1,260,354 640,482 — 6,037,809 Fresh produce 3,642,247 1,031,796 255,192 — 4,929,235 Paper and disposables 2,639,280 400,345 739,074 59,166 3,837,865 Seafood 2,449,741 726,010 104,459 — 3,280,210 Beverage products 1,107,574 196,379 576,359 84,868 1,965,180 Other (1) 1,101,832 497,331 105,199 865,429 2,569,791 Total Sales $ 39,642,263 $ 11,518,565 $ 6,557,033 $ 1,009,463 $ 58,727,324 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 52-Week Period Ended Jul. 1, 2017 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 7,643,653 $ 1,547,790 $ 1,414,235 $ — $ 10,605,678 Canned and dry products 6,812,689 1,567,714 315,426 — 8,695,829 Frozen fruits, vegetables, bakery and other 4,976,547 2,393,206 1,074,507 — 8,444,260 Poultry 3,939,048 886,528 1,048,368 — 5,873,944 Dairy products 3,870,052 1,102,625 637,424 — 5,610,101 Fresh produce 3,399,043 1,043,636 258,761 — 4,701,440 Paper and disposables 2,473,005 374,379 689,772 59,314 3,596,470 Seafood 2,358,819 633,304 97,227 — 3,089,350 Beverage products 1,077,680 353,305 548,607 79,861 2,059,453 Other (1) 1,054,162 710,572 94,582 835,298 2,694,614 Total Sales $ 37,604,698 $ 10,613,059 $ 6,178,909 $ 974,473 $ 55,371,139 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value table | The following tables present the company’s assets measured at fair value on a recurring basis as of June 29, 2019 and June 30, 2018 : Assets and Liabilities Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 72,824 $ 200 $ — $ 73,024 Other assets (1) 18,785 — — 18,785 Total assets at fair value $ 91,609 $ 200 $ — $ 91,809 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 169,214 $ 30,190 $ — $ 199,404 Other assets (1) 163,519 — — 163,519 Total assets at fair value $ 332,733 $ 30,190 $ — $ 362,923 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale marketable securities | The following table presents the company’s available-for-sale marketable securities as of June 29, 2019 : June 29, 2019 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-Term Marketable Securities Long-Term Marketable Securities (in thousands) Fixed income securities: Corporate bonds $ 87,540 $ 1,734 $ — $ 89,274 $ 12,006 $ 77,268 Government bonds 28,900 1,845 — 30,745 — 30,745 Total marketable securities $ 116,440 $ 3,579 $ — $ 120,019 $ 12,006 $ 108,013 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of valuation and qualifying accounts disclosure table | A summary of the activity in the allowance for doubtful accounts appears below: 2019 2018 2017 (In thousands) Balance at beginning of period $ 25,768 $ 31,059 $ 37,880 Charged to costs and expenses 62,946 21,448 20,672 Customer accounts written off, net of recoveries (64,219 ) (27,120 ) (26,943 ) Other adjustments 3,681 381 (550 ) Balance at end of period $ 28,176 $ 25,768 $ 31,059 |
PLANT AND EQUIPMENT (Tables)
PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of plant and equipment, including the related accumulated depreciation table | A summary of plant and equipment, including the related accumulated depreciation, appears below: Jun. 29, 2019 Jun. 30, 2018 Estimated Useful Lives (In thousands) Plant and equipment at cost: Land $ 498,180 $ 495,909 Buildings and improvements 4,545,099 4,268,687 10-30 years Fleet and equipment 3,697,008 3,808,133 3-10 years Computer hardware and software 1,213,942 1,628,121 3-7 years Total plant and equipment at cost 9,954,229 10,200,850 Accumulated depreciation (5,452,524 ) (5,679,190 ) Total plant and equipment, net $ 4,501,705 $ 4,521,660 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill rollforward table by reporting segments | The changes in the carrying amount of goodwill by reportable segment for the years presented are as follows: U.S. Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Carrying amount as of July 1, 2017 $ 1,231,045 $ 2,432,508 $ 32,607 $ 219,968 $ 3,916,128 Goodwill acquired during year 36,020 20,648 — — 56,668 Currency translation/other (6,165 ) (12,335 ) — 1,189 (17,311 ) Carrying amount as of June 30, 2018 $ 1,260,900 $ 2,440,821 $ 32,607 $ 221,157 $ 3,955,485 Goodwill acquired during year 10,428 9,127 — — 19,555 Currency translation/other (5,843 ) (74,016 ) — 1,045 (78,814 ) Carrying amount as of June 29, 2019 $ 1,265,485 $ 2,375,932 $ 32,607 $ 222,202 $ 3,896,226 |
Amortized intangible assets table | Fully amortized intangible assets have been removed in the period fully amortized in the table below, which presents the company’s amortizable intangible assets in total by category as follows: Jun. 29, 2019 Jun. 30, 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Customer relationships $ 1,052,608 $ (358,592 ) $ 694,016 $ 1,119,136 $ (307,408 ) $ 811,728 Non-compete agreements 11,827 (8,556 ) 3,271 31,754 (28,819 ) 2,935 Trademarks 14,785 (5,736 ) 9,049 10,073 (7,058 ) 3,015 Other 185 (148 ) 37 13,623 (13,548 ) 75 Total amortizable intangible $ 1,079,405 $ (373,032 ) $ 706,373 $ 1,174,586 $ (356,833 ) $ 817,753 |
Indefinite-lived intangible assets table | The table below presents the company’s indefinite-lived intangible assets by category as follows: Jun. 29, 2019 Jun. 30, 2018 (In thousands) Trademarks $ 149,962 $ 161,093 Licenses 966 966 Total indefinite-lived intangible assets $ 150,928 $ 162,059 |
Intangibles estimated amortization expense for the next five years table | The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 29, 2019 is shown below: Amount (In thousands) 2020 $ 94,898 2021 92,562 2022 90,728 2023 87,552 2024 84,279 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of June 29, 2019 are below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk October 2020 U.S. Dollar 750 July 2021 U.S. Dollar 500 June 2023 Euro 500 March 2025 U.S. Dollar 500 Hedging of foreign currency risk Various (July 2019 to October 2019) Swedish Krona 229 Various (July 2019 to December 2019) British Pound Sterling 13 June 2021 Canadian Dollar 235 July 2021 British Pound Sterling 234 August 2021 British Pound Sterling 466 June 2023 Euro 500 Hedging of fuel risk Various (June 30, 2019 to June 2020) Gallons 51 |
Derivatives balance sheet location table | The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 29, 2019 are as follows: Jun. 29, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,311,636 ) $ (28,616 ) The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 30, 2018 are as follows: Jun. 30, 2018 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (499,610 ) $ 5,097 Long-term debt (1,743,732 ) 47,555 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of June 29, 2019 and June 30, 2018 are as follows: Derivative Fair Value Balance Sheet Location Jun. 29, 2019 Jun. 30, 2018 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 37,396 $ — Interest rate swaps Other current liabilities — 6,820 Interest rate swaps Other long-term liabilities 9,285 49,734 Cash Flow Hedges: Fuel Swaps Other current assets $ 154 $ 15,316 Foreign currency forwards Other current assets 624 693 Cross currency swaps Other current assets — 4,284 Fuel swaps Other assets 136 — Cross currency swaps Other assets 8,592 3,454 Fuel Swaps Other current liabilities 6,537 — Foreign currency forwards Other current liabilities 162 71 Fuel swaps Other long-term liabilities 239 — Cross currency swaps Other long-term liabilities — 14,201 Net Investment Hedges: Foreign currency swaps Other assets $ 18,614 $ 10,709 Foreign currency swaps Other long-term liabilities 9,973 39,690 |
Derivatives financial statement performance table | The location and amount of gains or losses recognized in the consolidated results of operations for fair value and cash flow hedging relationships for each of the periods, presented on a pretax basis, are as follows: 2019 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 48,704,935 $ 9,078,837 $ 360,423 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (143,711 ) Derivatives designated as hedging instruments — — 68,689 (1) The hedged total includes interest expense of $62.4 million and change in fair value of debt of $81.3 million . 2018 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 47,641,933 $ 8,771,335 $ 395,483 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (30,418 ) Derivatives designated as hedging instruments — — (39,540 ) (1) The hedged total includes interest expense of $63.5 million and change in fair value of debt of $33.1 million . The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended June 29, 2019 and June 30, 2018, presented on a pretax basis, are as follows: 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (22,100 ) Operating expense $ 8,180 Foreign currency contracts 16,706 Cost of goods sold 509 Total $ (5,394 ) $ 8,689 Derivatives in net investment hedging relationships: Foreign currency contracts $ 42,488 N/A $ — Foreign denominated debt 15,650 N/A — Total $ 58,138 $ — 2018 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ 21,878 Operating expense $ 13,983 Foreign currency contracts 1,118 Cost of goods sold 1,776 Total $ 22,996 $ 15,759 Derivatives in net investment hedging relationships: Foreign currency contracts $ (20,584 ) N/A $ — Foreign denominated debt (12,700 ) N/A — Total $ (33,284 ) $ — |
SELF-INSURED LIABILITIES (Table
SELF-INSURED LIABILITIES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Loss Contingency [Abstract] | |
Summary of the activity in the self-insured liabilities | A summary of the activity in self-insured liabilities appears below: 2019 2018 2017 (In thousands) Balance at beginning of period $ 270,986 $ 245,811 $ 199,059 Charged to costs and expenses 492,411 461,867 523,674 Payments (465,580 ) (436,692 ) (476,922 ) Balance at end of period $ 297,817 $ 270,986 $ 245,811 |
DEBT AND OTHER FINANCING ARRA_2
DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Sysco’s debt consists of the following: Jun. 29, 2019 Jun. 30, 2018 (In thousands) Commercial paper, interest at 2.56% as of June 29, 2019 $ 132,081 $ — Senior notes, interest at 1.90%, maturing in fiscal 2019 (1) — 491,700 Senior notes, interest at 5.375%, maturing in fiscal 2019 (1) — 249,701 Senior notes, interest at 2.60%, maturing in fiscal 2021 (1) 744,034 724,047 Senior notes, interest at 2.50%, maturing in fiscal 2022 (1) 494,814 477,411 Senior notes, interest at 2.60%, maturing in fiscal 2022 (1) 447,509 446,681 Senior notes, interest at 1.25%, maturing in fiscal 2023 (1) 576,771 580,196 Senior notes, interest at 3.55%, maturing in fiscal 2025 (1) 521,490 492,606 Senior notes, interest at 3.65%, maturing in fiscal 2025 (1) 379,658 — Senior notes, interest at 3.75%, maturing in fiscal 2026 (1) 747,330 746,879 Senior notes, interest at 3.30%, maturing in fiscal 2027 (1) 993,084 992,176 Debentures, interest at 7.16%, maturing in fiscal 2027 (2) 44,272 44,276 Senior notes, interest at 3.25%, maturing in fiscal 2028 (1) 743,304 742,555 Debentures, interest at 6.50%, maturing in fiscal 2029 (2) 162,150 162,276 Senior notes, interest at 5.375%, maturing in fiscal 2036 (1) 382,250 382,010 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1) 199,198 201,766 Senior notes, interest at 4.85%, maturing in fiscal 2046 (1) 495,860 495,709 Senior notes, interest at 4.50%, maturing in fiscal 2046 (1) 494,215 494,090 Senior notes, interest at 4.45%, maturing in fiscal 2048 (1) 492,579 493,165 Notes payable, capital leases, and other debt, interest averaging 4.99% and maturing at various dates to fiscal 2031 as of June 29, 2019 and 6.33% and maturing at various dates to fiscal 2026 as of June 30, 2018 112,738 110,026 Total debt 8,163,337 8,327,270 Less current maturities of long-term debt (37,322 ) (782,329 ) Less notes payable (3,957 ) (4,176 ) Net long-term debt $ 8,122,058 $ 7,540,765 (1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption. (2) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. |
Long-term debt principal payments for the next five years table | As of June 29, 2019 , the principal payments required to be made during the next five fiscal years on long-term debt, excluding notes payable and commercial paper, are shown below: Amount (In thousands) 2020 $ 35,197 2021 775,518 2022 967,931 2023 581,225 2024 8,352 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Aggregate minimum lease payments for non-capitalized long-term leases for the next five years and thereafter table | Aggregate minimum lease payments by fiscal year under existing operating leases are as follows: Amount (In thousands) 2020 $ 107,492 2021 99,232 2022 73,249 2023 58,287 2024 39,158 Thereafter 266,445 |
COMPANY-SPONSORED EMPLOYEE BE_2
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Retirement Benefits [Abstract] | |
Defined benefit plans funded status table | The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. U.S. Pension Benefits International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 4,043,011 $ 4,224,231 $ 399,000 $ 420,735 Service cost 13,977 14,514 2,790 3,219 Interest cost 172,213 173,827 10,637 10,667 Amendments — — 3,050 (4,624 ) Plan Combinations — — 173 — Actuarial (gain) loss, net 439,082 (89,253 ) 20,783 (21,162 ) Total disbursements (130,635 ) (280,308 ) (14,398 ) (13,817 ) Exchange rate changes — — (15,338 ) 3,982 Benefit obligation at end of year 4,537,648 4,043,011 406,697 399,000 Change in plan assets: Fair value of plan assets at beginning of year 3,666,408 3,341,662 258,028 259,372 Actual return on plan assets 418,789 196,051 23,765 897 Employer contribution 29,592 409,003 7,612 7,960 Total disbursements (130,635 ) (280,308 ) (14,398 ) (13,817 ) Exchange rate changes — — (10,261 ) 3,616 Fair value of plan assets at end of year 3,984,154 3,666,408 264,746 258,028 Funded status at end of year $ (553,494 ) $ (376,603 ) $ (141,951 ) $ (140,972 ) |
Defined benefit plans amounts recognized in balance sheet table | The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: U.S. Pension Benefits International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Noncurrent assets (Other assets) $ — $ 63,945 $ — $ — Current accrued benefit liability (Accrued expenses) (31,652 ) (31,313 ) (1,285 ) (1,280 ) Noncurrent accrued benefit liability (Other long-term liabilities) (521,842 ) (409,235 ) (140,666 ) (139,692 ) Net amount recognized $ (553,494 ) $ (376,603 ) $ (141,951 ) $ (140,972 ) |
Defined benefit plans amounts recognized in accumulated other comprehensive loss (income) table | Accumulated other comprehensive loss (income) as of June 29, 2019 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 10,790 $ (588 ) $ 10,202 Actuarial losses (gains) 1,599,539 (33,008 ) 1,566,531 Total $ 1,610,329 $ (33,596 ) $ 1,576,733 Accumulated other comprehensive loss (income) as of June 30, 2018 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 19,170 $ 2,679 $ 21,849 Actuarial losses (gains) 1,434,160 (26,106 ) 1,408,054 Total $ 1,453,330 $ (23,427 ) $ 1,429,903 |
Defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets table | Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: U.S. Pension Benefits (1) International Pension Benefits Jun. 29, 2019 Jun. 30, 2018 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 4,524,513 $ 4,034,383 $ 399,966 $ 392,457 Fair value of plan assets at end of year 3,984,154 3,666,408 264,746 258,028 (1) Information under Pension Benefits as of June 29, 2019 and June 30, 2018 includes both the U.S. Retirement Plan and the SERP. |
Defined benefit plans components of net benefit cost table | The components of net company-sponsored pension costs for each fiscal year are as follows: 2019 2018 2017 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Service cost $ 13,977 $ 2,790 $ 14,514 $ 3,219 $ 14,287 $ 2,880 Interest cost 172,213 10,637 173,827 10,667 171,282 9,951 Expected return on plan assets (180,624 ) (11,072 ) (233,987 ) (11,653 ) (222,699 ) (10,033 ) Amortization of prior service cost 8,380 (202 ) 9,460 (2,003 ) 11,202 (1 ) Amortization of actuarial loss 35,537 (98 ) 35,696 (67 ) 41,511 (38 ) Curtailment loss — — — — — (611 ) Settlement loss (gain) recognized — 109 — 16 — — Net pension (benefits) costs $ 49,483 $ 2,164 $ (490 ) $ 179 $ 15,583 $ 2,148 |
Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: 2019 2018 2017 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Amortization of prior service cost $ 8,380 $ (202 ) $ 9,460 $ (2,003 ) $ 11,202 $ (1 ) Amortization of actuarial loss 35,537 11 35,696 (51 ) 41,511 (38 ) Prior service cost arising in current year — (3,050 ) — 4,624 (925 ) 110 Effect of exchange rates on amounts in AOCI — 1,163 — (583 ) — (1,269 ) Actuarial gain (loss) arising in current year (163,588 ) (8,090 ) 51,318 10,406 197,871 (34,623 ) Net pension costs $ (119,671 ) $ (10,168 ) $ 96,474 $ 12,393 $ 249,659 $ (35,821 ) |
Defined benefit plans amounts included accumulated other comprehensive loss (income) that are expected to be recognized in net company-sponsored benefit cost in next fiscal year table | Amounts included in accumulated other comprehensive loss (income) as of June 29, 2019 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2020 are: U.S. Pension Benefits International Pension Benefits Total (In thousands) Amortization of prior service cost $ 7,537 $ (82 ) $ 7,455 Amortization of actuarial losses (gains) 39,483 133 39,616 Total $ 47,020 $ 51 $ 47,071 |
Defined benefit plans estimated future benefit payments table | Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: U.S. Pension Benefits International Pension Benefits (In thousands) 2020 $ 149,999 $ 9,938 2021 160,568 11,240 2022 171,171 11,481 2023 181,811 12,707 2024 191,850 14,280 Subsequent five years 1,097,454 86,099 |
Defined benefit plans weighted average assumptions used in calculating net periodic benefit costs table | Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were: 2019 2018 2017 Discount rate — U.S. Retirement Plan 4.28 % 4.19 % 4.07 % Discount rate — SERP 4.41 4.08 3.91 Discount rate — U.K. Retirement Plan 2.85 2.60 2.80 Expected rate of return — U.S. Retirement Plan 5.00 7.00 7.25 Expected rate of return — U.K. Retirement Plan 4.55 4.55 4.15 Rate of compensation increase — U.S. Retirement Plan 2.62 2.62 2.62 Weighted-average assumptions used to determine benefit obligations as of year-end were: Jun. 29, 2019 Jun. 30, 2018 Discount rate — U.S. Retirement Plan 3.70 % 4.28 % Discount rate — SERP 3.62 4.41 Discount rate — U.K. Retirement Plan 2.30 2.85 Rate of compensation increase — U.S. Retirement Plan 2.56 2.62 |
Defined benefit plans target and actual asset allocation table | The U.K. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows: U.K. Retirement Plan Target Asset Allocation Actual Asset Allocation Common contractual fund 75 % 71 % Liability hedging assets 25 29 100 % The U.S. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows: U.S. Retirement Plan Target Asset Allocation Actual Asset Allocation Growth assets 30 % 27 % Liability hedging assets 70 73 100 % |
Defined benefit plans fair value of plans assets by major category table | The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 29, 2019 : Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 39,981 $ 41,266 $ — $ — $ 81,247 Growth assets: U.S. equity (1) — — — 468,923 468,923 International equity (1) 95,296 — — 107,197 202,493 Hedge fund of funds (2) — — — 226,409 226,409 Real estate funds (3) — — — 93,592 93,592 Private equity funds (4) — — — 84,266 84,266 Liability hedging assets: Corporate bonds — 1,987,964 — — 1,987,964 U.S. government and agency securities (1) — 298,629 — 522,489 821,118 Other (5) — 18,142 — — 18,142 Total investments at fair value $ 135,277 $ 2,346,001 $ — $ 1,502,876 $ 3,984,154 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 29, 2019 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 29, 2019 , and there were no redemption restrictions as of June 29, 2019 . The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 29, 2019 was $10.3 million . Approximately 15% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2019 to 2021 . The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitments in the funds listed in this category as of June 29, 2019 were $17.6 million . The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2019 to 2031 . (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 29, 2019 : Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 13,372 $ — $ — $ — $ 13,372 U.K. government securities — 63,363 — — 63,363 Derivatives, net (1) — 575 — — 575 Investment funds: Common contractual fund (2) — — — 187,436 187,436 Total investments at fair value $ 13,372 $ 63,938 $ — $ 187,436 $ 264,746 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $9.3 million ; the fair value of liability positions totaled $8.7 million . (2) There were $13.9 million of unfunded commitments as of June 29, 2019 , and there were no redemption restrictions as of June 29, 2019 . The investment may be redeemed twice per month. (3) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 30, 2018 : Assets Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Measured at NAV (7) Total (In thousands) Cash and cash equivalents $ 25,810 $ 34,430 $ — $ — $ 60,240 Growth assets: U.S. equity (1) 80,719 — — 143,701 224,420 International equity (1) 57,959 — — 109,186 167,145 Hedge fund of funds (2) — — — 388,281 388,281 Real estate funds (3) — — — 146,389 146,389 Private equity funds (4) — — — 84,003 84,003 Liability hedging assets: Corporate bonds — 1,775,324 — — 1,775,324 U.S. government and agency securities (1) — 277,986 — 469,868 747,854 Other (5) — 27,324 — — 27,324 High yield and emerging markets fixed income (6) — — — 45,428 45,428 Total investments at fair value $ 164,488 $ 2,115,064 $ — $ 1,386,856 $ 3,666,408 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 30, 2018 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per quarter. (3) The estimate of the liquidation period for these funds varies from 2018 to 2021 . The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (4) Total unfunded commitment as of June 30, 2018 was $22.6 million . The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2018 to 2031 . (5) Include foreign government and state and municipal debt securities. (6) There were no unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per day. The daily maximum withdrawal limitation is the greater of $2.0 million or 5% of the asset value. (7) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 30, 2018 : Assets Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 30,987 $ — $ — $ — $ 30,987 U.K. government securities — 9,336 — — 9,336 Derivatives, net (1) — 17,658 — — 17,658 Pooled funds — 5,387 — — 5,387 Investment funds: Common contractual fund (2) — — — 194,660 194,660 Total investments at fair value $ 30,987 $ 32,381 $ — $ 194,660 $ 258,028 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $45.2 million ; the fair value of liability positions totaled $27.5 million . (2) There were $20.8 million of unfunded commitments as of June 30, 2018 , and there were no redemption restrictions as of June 30, 2018 . The investment may be redeemed once per week. (3) |
MULTIEMPLOYER EMPLOYEE BENEFI_2
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Multiemployer Plans [Abstract] | |
Multiemployer defined benefit pension plan contributions table | Sysco’s contributions to multiemployer defined benefit pension plans were as follows for each fiscal year: 2019 2018 2017 (In thousands) Individually significant plans $ 40,947 $ 39,121 $ 36,653 All other plans 7,598 7,254 7,898 Total contributions $ 48,545 $ 46,375 $ 44,551 |
Multiemployer individually significant plans statistics table | The following table provides information about the funded status of individually significant plans: • The “EIN-PN” column provides the Employer Identification Number (EIN) and the three-digit plan number (PN). • The “Pension Protection Act Zone Status” columns provide the two most recent Pension Protection Act zone statuses available from each plan. The zone status is based on information that the company received from the plan’s administrators and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The Multiemployer Protection Act of 2014 created a new zone called “critical and declining.” Plans are generally considered “critical and declining” if they are projected to become insolvent within 15 years. • The “FIP/RP Status” column indicates whether a financial improvement plan (FIP) for yellow/orange zone plans or a rehabilitation plan (RP) for red zone plans is pending or implemented in the current year or was put in place in a prior year. A status of “Pending” indicates a FIP/RP has been approved but actual period covered by the FIP/RP has not begun. A status of “Implemented” means the period covered by the FIP/RP began in the current year or is ongoing. • The “Surcharge Imposed” column indicates whether a surcharge was paid during the most recent annual period presented for the company’s contributions to each plan in the red zone. If the company’s current collective bargaining agreement (CBA) with a plan satisfies the requirements of a pending but not yet implemented RP, then the payment of surcharges is not required and “No” will be reflected in this column. If the company’s current CBA with a plan does not yet satisfy the requirements of a pending but not yet implemented RP, then the payment of surcharges is required and “Yes” will be reflected in this column. Pension Protection Act Pension Fund EIN-PN As of As of FIP/RP Surcharge Expiration Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green N/A N/A 10/2/19 to 2/15/2026 (1) Teamsters Pension Trust Fund of Philadelphia and Vicinity 23-1511735-001 Yellow Yellow Implemented N/A 7/20/2020 Truck Drivers and Helpers Local Union No. 355 Retirement Pension Fund 52-6043608-001 Green Yellow Implemented N/A 2/28/2022 Minneapolis Food Distributing Industry Pension Plan 41-6047047-001 Green Green Implemented N/A 8/1/2021 (1) Sysco is party to 22 CBAs that require contributions to the Western Conference of Teamsters Pension Trust. Each agreement covers anywhere from less than 1% to 12% of the total contributions Sysco is required to pay the fund. |
Multiemployer individually significant plans contributions table | The following table provides information about the company’s contributions to individually significant plans: • The “Sysco Contributions” columns provide contribution amounts based on Sysco’s fiscal years, which may not coincide with the plans’ fiscal years. • The “Sysco 5% of Total Plan Contributions” columns indicate whether Sysco was listed in the plan’s most recently filed Form 5500s as providing more than five percent of the total contributions to the plan, and the plan year-end is noted. Sysco Contributions Sysco 5% of Total Plan Contributions Pension Fund 2019 2018 2017 Year Ending Year Ending (In thousands) Western Conference of Teamsters Pension Plan $ 31,669 $ 30,460 $ 28,145 No No Teamsters Pension Trust Fund of Philadelphia and Vicinity 3,454 3,313 3,081 No No Truck Drivers and Helpers Local Union No. 355 Retirement Pension Fund 2,321 2,245 2,430 Yes Yes Minneapolis Food Distributing Industry Pension Plan 3,503 3,103 2,996 Yes Yes |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
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: 2019 2018 2017 (In thousands, except for share and per share data) Numerator: Net earnings $ 1,674,271 $ 1,430,766 $ 1,142,503 Denominator: Weighted-average basic shares outstanding 516,890,581 522,926,914 543,496,816 Dilutive effect of share-based awards 6,490,543 6,162,940 5,048,211 Weighted-average diluted shares outstanding 523,381,124 529,089,854 548,545,027 Basic earnings per share $ 3.24 $ 2.74 $ 2.10 Diluted earnings per share $ 3.20 $ 2.70 $ 2.08 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
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: 2019 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ (200,144 ) $ (45,070 ) $ (155,074 ) Reclassification adjustments: Amortization of prior service cost Other expense, net 8,532 2,132 6,400 Amortization of actuarial loss, net Other expense, net 34,824 8,708 26,116 Total reclassification adjustments 43,356 10,840 32,516 Foreign currency translation: Foreign currency translation adjustment N/A (119,126 ) — (119,126 ) Marketable securities: Change in marketable securities N/A 3,579 752 2,827 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (5,394 ) (1,332 ) (4,062 ) Change in net investment hedges N/A 58,138 14,299 43,839 Total other comprehensive income (loss) before reclassification adjustments 52,744 12,967 39,777 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,492 2,872 8,620 Total other comprehensive (loss) income $ (208,099 ) $ (17,639 ) $ (190,460 ) (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 2018 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial (loss) gain, net arising in the current year $ 69,476 $ 16,965 $ 52,511 Reclassification adjustments: Amortization of prior service cost Other expense, net 9,636 2,731 6,905 Amortization of actuarial loss (gain), net Other expense, net 35,044 9,934 25,110 Total reclassification adjustments 44,680 12,665 32,015 Foreign currency translation: Foreign currency translation adjustment N/A (22,987 ) — (22,987 ) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 23,872 9,529 14,343 Change in net investment hedges N/A (2,443 ) (8,234 ) 5,791 Total other comprehensive income (loss) before reclassification adjustments 21,429 1,295 20,134 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,499 3,259 8,240 Total other comprehensive income (loss) $ 124,097 $ 34,184 $ 89,913 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 2017 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial (loss) gain, net arising in the current year $ 168,498 $ 71,215 $ 97,283 Reclassification adjustments: Amortization of prior service cost Other expense, net 11,370 4,366 7,004 Amortization of actuarial loss (gain), net Other expense, net 41,689 15,724 25,965 Total reclassification adjustments 53,059 20,090 32,969 Foreign currency translation: Foreign currency translation adjustment N/A (11,243 ) — (11,243 ) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (10,871 ) (4,173 ) (6,698 ) Change in net investment hedges N/A (34,152 ) (10,140 ) (24,012 ) Total other comprehensive income (loss) before reclassification adjustments (45,023 ) (14,313 ) (30,710 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,495 4,413 7,082 Total other comprehensive income (loss) $ 176,786 $ 81,405 $ 95,381 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. |
Rollforward of accumulated other comprehensive (loss) income | The following tables provide a summary of the changes in accumulated other comprehensive (loss) income (AOCI) for the periods presented: Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, net of tax Marketable Securities Total (In thousands) Balance as of Jul. 2, 2016 $ (1,104,484 ) $ (136,813 ) $ (116,821 ) $ — $ (1,358,118 ) Other comprehensive income before 97,283 (11,243 ) (30,710 ) — 55,330 Amounts reclassified from accumulated 32,969 — 7,082 — 40,051 Balance as of Jul. 1, 2017 (974,232 ) (148,056 ) (140,449 ) — (1,262,737 ) Other comprehensive income before 52,511 (22,987 ) 20,134 — 49,658 Amounts reclassified from accumulated 32,015 — 8,240 — 40,255 Amounts reclassified to retained earnings (1) (205,353 ) — (31,092 ) — (236,445 ) Balance as of Jun. 30, 2018 (1,095,059 ) (171,043 ) (143,167 ) — (1,409,269 ) Other comprehensive income before (155,074 ) (119,126 ) 39,777 — (234,423 ) Amounts reclassified from accumulated 32,516 — 8,620 — 41,136 Change in marketable securities — — — 2,827 2,827 Jun. 29, 2019 $ (1,217,617 ) $ (290,169 ) $ (94,770 ) $ 2,827 $ (1,599,729 ) (1) Deferred taxes stranded in AOCI as a result of the Tax Act were reclassified to retained earnings as a result of early adopting ASU 2018-02. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Black-Scholes option model assumption table | The weighted average assumptions discussed above are noted in the table below for relevant periods as follows: 2019 2018 2017 Dividend yield 2.5 % 2.6 % 2.8 % Expected volatility 16.9 % 17.5 % 16.9 % Risk-free interest rate 2.8 % 2.0 % 1.4 % Expected Life 7.0 years 7.0 years 7.2 years |
Option rollforward and other disclosures table | The following summary presents information regarding outstanding options as of June 29, 2019 and changes during the fiscal year then ended with regard to options under all stock incentive plans: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of June 30, 2018 18,391,610 $ 43.92 Granted 2,609,755 74.88 Exercised 5,796,853 40.88 Forfeited 215,235 54.29 Expired — — Outstanding as of June 29, 2019 14,989,277 $ 50.36 7.05 $ 316,212 Vested or expected to vest as of June 29, 2019 9,018,881 $ 55.01 7.71 $ 152,389 Exercisable as of June 29, 2019 5,866,374 $ 42.96 6.01 $ 162,835 |
Non-vested awards rollforward table | The following summary presents information regarding outstanding non-vested awards as of June 29, 2019 and changes during the fiscal year then ended with regard to these awards under the stock incentive plans. Award types represented include restricted stock units granted to employees, restricted awards granted to non-employee directors and PSUs. Shares Weighted Average Grant Date Fair Value Per Share Non-vested as of June 30, 2018 3,086,884 $ 51.08 Granted 1,262,405 69.29 Vested (764,762 ) 48.13 Forfeited (296,786 ) 55.05 Non-vested as of June 29, 2019 3,287,741 $ 58.40 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Earnings before income taxes by jurisdiction table | For financial reporting purposes, earnings before income taxes consists of the following: 2019 2018 2017 (In thousands) U.S. $ 1,910,549 $ 1,765,793 $ 1,569,073 Foreign 95,287 190,431 197,157 Total $ 2,005,836 $ 1,956,224 $ 1,766,230 |
Income tax provision by jurisdiction table | The income tax provision for each fiscal year consists of the following: 2019 2018 2017 (In thousands) U.S. federal income taxes $ 262,940 $ 399,254 $ 534,266 State and local income taxes 73,835 62,670 69,913 Foreign income taxes (5,210 ) 63,534 19,548 Total $ 331,565 $ 525,458 $ 623,727 |
Income tax provision by component table | The current and deferred components of the income tax provisions for each fiscal year are as follows: 2019 2018 2017 (In thousands) Current $ 458,284 $ 337,550 $ 675,573 Deferred (126,719 ) 187,908 (51,846 ) Total $ 331,565 $ 525,458 $ 623,727 |
Components of deferred tax assets and liabilities table | Significant components of Sysco’s deferred tax assets and liabilities are as follows: Jun. 29, 2019 Jun. 30, 2018 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 274,231 $ 226,274 Pension 157,670 115,361 Share-based compensation 39,218 34,486 Deferred compensation 29,694 29,512 Receivables 17,383 13,001 Self-insured liabilities 16,496 — Inventory 12,139 14,728 Foreign currency remeasurement losses and currency hedge 1,725 15,796 Other 32,641 33,386 Deferred tax assets before valuation allowances 581,197 482,544 Valuation allowances (127,807 ) (123,237 ) Total deferred tax assets 453,390 359,307 Deferred tax liabilities: Excess tax depreciation and basis differences of assets 163,123 180,950 Goodwill and intangible assets 358,847 373,041 Other 22,892 40,774 Total deferred tax liabilities 544,862 594,765 Total net deferred tax assets (liabilities) $ (91,472 ) $ (235,458 ) |
Tax rate reconciliation table | Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows: 2019 2018 2017 U.S. statutory federal income tax rate 21.00 % 28.00 % 35.00 % State and local income taxes, net of any 3.35 2.48 2.61 Foreign income taxes (1.42 ) 0.07 (2.81 ) Uncertain tax position (0.31 ) (0.22 ) 0.01 Tax benefit of equity-based compensation (2.07 ) (2.66 ) — Impact of U.S. Tax Reform (4.64 ) 0.13 — Other 0.62 (0.95 ) 0.50 Effective income tax rate 16.53 % 26.85 % 35.31 % |
Reconciliation of unrecognized tax benefits table | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2019 2018 (In thousands) Unrecognized tax benefits at beginning of year $ 12,195 $ 16,278 Additions for tax positions related to prior years 20,508 652 Reductions for tax positions related to prior years (6,086 ) (4,033 ) Reductions due to settlements with taxing authorities (508 ) (702 ) Unrecognized tax benefits at end of year $ 26,109 $ 12,195 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded unconditional purchase obligations table | Minimum amounts committed to by year are as follows: Amount (In thousands) 2020 $ 1,716,184 2021 391,136 2022 178,308 2023 175,750 2024 171,757 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Segment Reporting [Abstract] | |
Business segment table | The following tables set forth certain financial information for Sysco’s business segments. Fiscal Year 2019 2018 2017 Sales: (In thousands) U.S. Foodservice Operations $ 41,288,188 $ 39,642,263 $ 37,604,698 International Foodservice Operations 11,493,040 11,518,565 10,613,059 SYGMA 6,244,328 6,557,033 6,178,909 Other 1,088,366 1,009,463 974,473 Total $ 60,113,922 $ 58,727,324 $ 55,371,139 Fiscal Year 2019 2018 2017 Operating income: (In thousands) U.S. Foodservice Operations $ 3,192,816 $ 3,056,817 $ 2,896,357 International Foodservice Operations 125,443 193,864 243,790 SYGMA 27,780 24,318 23,299 Other 35,848 39,485 30,217 Total segments 3,381,887 3,314,484 3,193,663 Corporate (1,051,737 ) (1,000,428 ) (1,139,047 ) Total operating income 2,330,150 2,314,056 2,054,616 Interest expense 360,423 395,483 302,878 Other expense (income), net (36,109 ) (37,651 ) (14,492 ) Earnings before income taxes $ 2,005,836 $ 1,956,224 $ 1,766,230 Fiscal Year 2019 2018 2017 Depreciation and amortization: (In thousands) U.S. Foodservice Operations $ 342,277 $ 348,041 $ 266,024 International Foodservice Operations 248,914 258,156 243,628 SYGMA 35,473 36,367 34,890 Other 10,868 9,599 10,678 Total segments 637,532 652,163 555,220 Corporate 126,403 113,335 346,772 Total $ 763,935 $ 765,498 $ 901,992 Fiscal Year 2019 2018 2017 Capital Expenditures: (In thousands) U.S. Foodservice Operations $ 327,005 $ 262,887 $ 194,714 International Foodservice Operations 249,527 157,139 228,564 SYGMA 36,396 45,132 50,722 Other 25,003 11,406 13,237 Total segments 637,931 476,564 487,237 Corporate 54,460 211,251 199,141 Total $ 692,391 $ 687,815 $ 686,378 Fiscal Year 2019 2018 2017 Assets: (In thousands) U.S. Foodservice Operations $ 7,238,309 $ 7,039,354 $ 6,675,543 International Foodservice Operations 5,888,275 6,112,666 6,433,815 SYGMA 624,720 662,290 625,653 Other 477,038 452,426 448,885 Total segments 14,228,342 14,266,736 14,183,896 Corporate 3,738,180 3,803,668 3,572,759 Total $ 17,966,522 $ 18,070,404 $ 17,756,655 |
Geographic area revenue and long-lived assets table | Information concerning geographic areas is as follows: Fiscal Year 2019 2018 2017 (In thousands) Sales: United States $ 48,257,385 $ 46,812,297 $ 44,395,765 Canada 4,660,030 4,661,615 4,346,894 United Kingdom 3,133,793 3,176,069 2,974,133 France 1,581,663 1,625,407 1,426,973 Other 2,481,051 2,451,936 2,227,374 Total $ 60,113,922 $ 58,727,324 $ 55,371,139 Long-lived assets: United States $ 3,361,629 $ 3,448,164 $ 3,252,980 Canada 334,177 318,410 329,090 France 329,923 240,507 284,611 United Kingdom 270,613 319,664 303,178 Other 205,363 194,915 207,443 Total $ 4,501,705 $ 4,521,660 $ 4,377,302 The sales mix for the principal product categories by segment is disclosed in Note 4 , “Revenue.” |
SUPPLEMENTAL GUARANTOR INFORM_2
SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed consolidating balance sheet table | The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (certain 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 Consolidated Balance Sheet Jun. 29, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 121,993 $ 4,195,543 $ 3,823,969 $ — $ 8,141,505 Intercompany receivables 6,162,303 30,469 3,220,237 (9,413,009 ) — Investment in subsidiaries 4,680,530 — 1,126,315 (5,806,845 ) — Plant and equipment, net 252,101 2,162,668 2,086,936 — 4,501,705 Other assets 787,986 718,600 4,372,725 (555,999 ) 5,323,312 Total assets $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Current liabilities $ 465,101 $ 1,018,650 $ 4,619,432 $ — $ 6,103,183 Intercompany payables 686,116 3,443,182 5,283,711 (9,413,009 ) — Long-term debt 7,668,314 7,938 445,806 — 8,122,058 Other liabilities 682,779 545,391 531,081 (555,999 ) 1,203,252 Noncontrolling interest — — 35,426 — 35,426 Shareholders’ equity 2,502,603 2,092,119 3,714,726 (5,806,845 ) 2,502,603 Total liabilities and shareholders’ equity $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Condensed Consolidated Balance Sheet Jun. 30, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 157,994 $ 4,018,444 $ 3,827,015 $ — $ 8,003,453 Intercompany receivables 6,621,438 270,748 5,793,352 (12,685,538 ) — Investment in subsidiaries 4,896,004 — 983,625 (5,879,629 ) — Plant and equipment, net 278,855 2,181,576 2,061,229 — 4,521,660 Other assets 788,473 611,004 4,593,537 (447,723 ) 5,545,291 Total assets $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Current liabilities $ 1,233,541 $ 886,305 $ 4,468,900 $ — $ 6,588,746 Intercompany payables 882,487 3,798,134 8,004,917 (12,685,538 ) — Long-term debt 7,470,334 8,285 62,146 — 7,540,765 Other liabilities 649,445 508,387 686,178 (447,723 ) 1,396,287 Noncontrolling interest — — 37,649 — 37,649 Shareholders’ equity 2,506,957 1,880,661 3,998,968 (5,879,629 ) 2,506,957 Total liabilities and shareholders’ equity $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 |
Condensed consolidating statement of comprehensive income table | Condensed Consolidated Statement of Comprehensive Income For the 52-Week Period Ended Jun. 29, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 37,453,729 $ 25,002,655 $ (2,342,462 ) $ 60,113,922 Cost of sales — 30,282,665 20,764,732 (2,342,462 ) 48,704,935 Gross profit — 7,171,064 4,237,923 — 11,408,987 Operating expenses 861,914 4,163,261 4,053,662 — 9,078,837 Operating income (loss) (861,914 ) 3,007,803 184,261 — 2,330,150 Interest expense (income) (1) 193,457 (104,341 ) 271,307 — 360,423 Other expense (income), net (38,360 ) (489 ) 2,740 — (36,109 ) Earnings (losses) before income taxes (1,017,011 ) 3,112,633 (89,786 ) — 2,005,836 Income tax (benefit) provision (454,578 ) 792,542 (6,399 ) — 331,565 Equity in earnings of subsidiaries 2,236,704 — 464,701 (2,701,405 ) — Net earnings 1,674,271 2,320,091 381,314 (2,701,405 ) 1,674,271 Other comprehensive income (loss) (190,460 ) — (119,126 ) 119,126 (190,460 ) Comprehensive income $ 1,483,811 $ 2,320,091 $ 262,188 $ (2,582,279 ) $ 1,483,811 (1) Interest expense (income) includes $104.3 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 52-Week Period Ended Jun. 30, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 35,963,053 $ 24,784,842 $ (2,020,571 ) $ 58,727,324 Cost of sales — 29,102,278 20,560,226 (2,020,571 ) 47,641,933 Gross profit — 6,860,775 4,224,616 — 11,085,391 Operating expenses 804,202 4,007,565 3,959,568 — 8,771,335 Operating income (loss) (804,202 ) 2,853,210 265,048 — 2,314,056 Interest expense (income) (1) 294,401 (110,715 ) 211,797 — 395,483 Other expense (income), net (39,503 ) 2,270 (418 ) — (37,651 ) Earnings (losses) before income taxes (1,059,100 ) 2,961,655 53,669 — 1,956,224 Income tax (benefit) provision (135,385 ) 655,824 5,019 — 525,458 Equity in earnings of subsidiaries 2,354,481 — — (2,354,481 ) — Net earnings 1,430,766 2,305,831 48,650 (2,354,481 ) 1,430,766 Other comprehensive income (loss) 89,913 — (22,987 ) 22,987 89,913 Comprehensive income $ 1,520,679 $ 2,305,831 $ 25,663 $ (2,331,494 ) $ 1,520,679 (1) Interest expense (income) includes $110.7 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 52-Week Period Ended Jul. 1, 2017 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 34,325,884 $ 22,862,131 $ (1,816,876 ) $ 55,371,139 Cost of sales — 27,690,469 18,940,039 (1,816,876 ) 44,813,632 Gross profit — 6,635,415 3,922,092 — 10,557,507 Operating expenses 935,472 3,903,183 3,664,236 — 8,502,891 Operating income (loss) (935,472 ) 2,732,232 257,856 — 2,054,616 Interest expense (income) (1) 405,030 (122,012 ) 19,860 — 302,878 Other expense (income), net (27,713 ) 3,530 9,691 — (14,492 ) Earnings (losses) before income taxes (1,312,789 ) 2,850,714 228,305 — 1,766,230 Income tax (benefit) provision (463,598 ) 1,006,703 80,622 — 623,727 Equity in earnings of subsidiaries 1,991,694 — — (1,991,694 ) — Net earnings 1,142,503 1,844,011 147,683 (1,991,694 ) 1,142,503 Other comprehensive income (loss) 95,381 — (9,317 ) 9,317 95,381 Comprehensive income $ 1,237,884 $ 1,844,011 $ 138,366 $ (1,982,377 ) $ 1,237,884 (1) Interest expense (income) includes $122.0 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. |
Condensed consolidating cash flows table | Condensed Consolidated Cash Flows For the 52-Week Period Ended Jun. 29, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 1,683,417 $ 1,755,756 $ 1,092,034 $ (2,120,000 ) $ 2,411,207 Investing activities 544,149 (263,029 ) (440,743 ) (583,232 ) (742,855 ) Financing activities (2,226,842 ) (1,486,927 ) (826,737 ) 2,703,232 (1,837,274 ) Effect of exchange rates on cash — — (14,677 ) — (14,677 ) Net increase (decrease) in cash, cash equivalents and restricted cash 724 5,800 (190,123 ) — (183,599 ) Cash, cash equivalents and restricted cash at the beginning of period 29,144 111,843 574,857 — 715,844 Cash, cash equivalents and restricted cash at the end of period $ 29,868 $ 117,643 $ 384,734 $ — $ 532,245 (1) Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation, partially offset by intercompany loans issued. Condensed Consolidated Cash Flows For the 52-Week Period Ended Jun. 30, 2018 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 1,051,976 $ 2,548,139 $ 799,062 $ (2,243,797 ) $ 2,155,380 Investing activities 58,864 (439,178 ) (503,745 ) (26,354 ) (910,413 ) Financing activities (1,193,272 ) (2,015,906 ) (471,442 ) 2,270,151 (1,410,469 ) Effect of exchange rates on cash — — 11,844 — 11,844 Net increase (decrease) in cash, cash equivalents and restricted cash (82,432 ) 93,055 (164,281 ) — (153,658 ) Cash, cash equivalents and restricted cash at the beginning of period 111,576 18,788 739,138 — 869,502 Cash, cash equivalents and restricted cash at the end of period $ 29,144 $ 111,843 $ 574,857 $ — $ 715,844 (1) Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 52-Week Period Ended Jul. 1, 2017 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 1,523,519 $ 3,028,819 $ 658,229 $ (2,978,000 ) $ 2,232,567 Investing activities (3,267,779 ) (261,330 ) (175,565 ) 127,000 (3,577,674 ) Financing activities (1,525,995 ) (2,777,661 ) (229,931 ) 2,851,000 (1,682,587 ) Effect of exchange rates on cash — — (22,104 ) — (22,104 ) Net increase (decrease) in cash and cash equivalents (3,270,255 ) (10,172 ) 230,629 — (3,049,798 ) Cash and cash equivalents at the beginning of period 3,376,412 34,379 508,509 — 3,919,300 Cash and cash equivalents at the end of period $ 106,157 $ 24,207 $ 739,138 $ — $ 869,502 (1) Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation. |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 29, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly results (unaudited) table | Financial information for each 13-week period in the fiscal years ended June 29, 2019 and June 30, 2018 is set forth below: Fiscal 2019 Quarter Ended September 29 December 29 March 30 (1) June 29 (2) Fiscal Year (In thousands except for per share data) Sales $ 15,215,279 $ 14,765,707 $ 14,658,074 $ 15,474,862 $ 60,113,922 Cost of sales 12,311,494 11,993,995 11,903,776 12,495,670 48,704,935 Gross profit 2,903,785 2,771,712 2,754,298 2,979,192 11,408,987 Operating expenses 2,275,645 2,319,817 2,224,713 2,258,662 9,078,837 Operating income 628,140 451,895 529,585 720,530 2,330,150 Interest expense 89,016 87,113 94,514 89,780 360,423 Other expense (income), net 1,132 10,197 4,120 (51,558 ) (36,109 ) Earnings before income taxes 537,992 354,585 430,951 682,308 2,005,836 Income taxes 106,950 87,205 (9,132 ) 146,542 331,565 Net earnings $ 431,042 $ 267,380 $ 440,083 $ 535,766 $ 1,674,271 Per share: Basic net earnings $ 0.83 $ 0.52 $ 0.86 $ 1.04 $ 3.24 Diluted net earnings 0.81 0.51 0.85 1.03 3.20 Dividends declared 0.36 0.39 0.39 0.39 1.53 (1) Sysco’s third quarter of fiscal 2019 results included the recognition of $95.1 million of foreign tax credits generated as a result of distributions to Sysco from its foreign operations at the end of fiscal 2018. See Note 20 , “Income Taxes.” (2) Sysco’s fourth quarter of fiscal 2019 results included a $66.3 million gain on the sale of Iowa Premium, LLC. Fiscal 2018 Quarter Ended September 30 December 30 March 31 (1) June 30 Fiscal Year (In thousands except for per share data) Sales $ 14,650,424 $ 14,411,490 $ 14,349,504 $ 15,315,906 $ 58,727,324 Cost of sales 11,856,756 11,712,104 11,673,876 12,399,197 47,641,933 Gross profit 2,793,668 2,699,386 2,675,628 2,916,709 11,085,391 Operating expenses 2,174,303 2,170,834 2,193,425 2,232,773 8,771,335 Operating income 619,365 528,552 482,203 683,936 2,314,056 Interest expense 80,884 85,986 136,145 92,468 395,483 Other expense (income), net (7,975 ) (9,162 ) (18,826 ) (1,688 ) (37,651 ) Earnings before income taxes 546,456 451,728 364,884 593,156 1,956,224 Income taxes 178,816 167,615 34,799 144,228 525,458 Net earnings $ 367,640 $ 284,113 $ 330,085 $ 448,928 $ 1,430,766 Per share: Basic net earnings $ 0.70 $ 0.55 $ 0.63 $ 0.86 $ 2.74 Diluted net earnings 0.69 0.54 0.63 0.85 2.70 Dividends declared 0.33 0.36 0.36 0.36 1.41 (1) Sysco’s third quarter of fiscal 2018 included a charge for $53.1 million in interest expense related to the redemption of senior notes as well as tax benefits derived from our $380.0 million contribution to our U.S. Retirement Plan. See Note 13 , “Debt and Other Financing Arrangements” and Note 20 , “Income Taxes.” |
SUMMARY OF ACCOUNTING POLICIE_3
SUMMARY OF ACCOUNTING POLICIES - NARRATIVE (Details) customer in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 29, 2019USD ($)customerreporting_unitfacility | Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | |
Accounting Policies [Abstract] | |||
Number of customers | customer | 650 | ||
Number of distribution facilities | facility | 325 | ||
Accounts receivable sold without recourse | $ 3,900 | ||
Outstanding principal amount of receivables derecognized | $ 373.8 | ||
Summary of Accounting Policies [Line Items] | |||
Number of international reporting units | reporting_unit | 2 | ||
Aggregate goodwill threshold for requiring additional analysis | $ 226 | ||
Cash surrender value of corporate-owned life insurance | 168.4 | $ 167.9 | |
Customer receivables, less allowances | 3,900 | 3,800 | |
Shipping and Handling | |||
Summary of Accounting Policies [Line Items] | |||
Shipping and handling costs | $ 3,500 | $ 3,600 | $ 3,400 |
Minimum | |||
Summary of Accounting Policies [Line Items] | |||
Reporting unit impairment, decrease in fair value estimate requiring additional analysis, percent | 13.00% | ||
Intangible assets useful life (in years) | 2 years | ||
Maximum | |||
Summary of Accounting Policies [Line Items] | |||
Reporting unit impairment, decrease in fair value estimate requiring additional analysis, percent | 15.00% | ||
Intangible assets useful life (in years) | 15 years |
SUMMARY OF ACCOUNTING POLICIE_4
SUMMARY OF ACCOUNTING POLICIES - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | Jul. 02, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 513,460 | $ 552,325 | $ 869,502 | $ 3,919,300 |
Restricted cash | 18,785 | 163,519 | 0 | |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows | $ 532,245 | $ 715,844 | $ 869,502 | $ 3,919,300 |
CHANGES IN ACCOUNTING (Details)
CHANGES IN ACCOUNTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Other income (expense), net | $ 51,558 | $ (4,120) | $ (10,197) | $ (1,132) | $ 1,688 | $ 18,826 | $ 9,162 | $ 7,975 | $ 36,109 | $ 37,651 | $ 14,492 |
ASU 2017-07 | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Other income (expense), net | $ (35,500) | $ 14,900 | $ (1,400) |
NEW ACCOUNTING STANDARDS NEW AC
NEW ACCOUNTING STANDARDS NEW ACCOUNTING STANDARDS (Details) - ASU 2016-02 $ in Millions | Jun. 29, 2019USD ($) |
Minimum | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Right-of-use assets | $ 500 |
Operating lease liabilities | 550 |
Maximum | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Right-of-use assets | 600 |
Operating lease liabilities | $ 650 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 15,315,906 | $ 14,349,504 | $ 14,411,490 | $ 14,650,424 | $ 60,113,922 | $ 58,727,324 | $ 55,371,139 |
Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 11,570,425 | 11,312,841 | 10,605,678 | ||||||||
Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 9,941,250 | 9,789,397 | 8,695,829 | ||||||||
Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 8,977,965 | 9,025,654 | 8,444,260 | ||||||||
Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,847,527 | 5,979,342 | 5,873,944 | ||||||||
Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 6,113,717 | 6,037,809 | 5,610,101 | ||||||||
Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,065,933 | 4,929,235 | 4,701,440 | ||||||||
Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,960,269 | 3,837,865 | 3,596,470 | ||||||||
Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,381,973 | 3,280,210 | 3,089,350 | ||||||||
Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,309,194 | 1,965,180 | 2,059,453 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,945,669 | 2,569,791 | 2,694,614 | ||||||||
U.S. Foodservice Operations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 41,288,188 | 39,642,263 | 37,604,698 | ||||||||
U.S. Foodservice Operations | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 8,422,126 | 8,123,565 | 7,643,653 | ||||||||
U.S. Foodservice Operations | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 7,344,015 | 7,093,691 | 6,812,689 | ||||||||
U.S. Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,708,030 | 5,327,020 | 4,976,547 | ||||||||
U.S. Foodservice Operations | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,121,367 | 4,020,340 | 3,939,048 | ||||||||
U.S. Foodservice Operations | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,265,320 | 4,136,973 | 3,870,052 | ||||||||
U.S. Foodservice Operations | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,801,828 | 3,642,247 | 3,399,043 | ||||||||
U.S. Foodservice Operations | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,797,521 | 2,639,280 | 2,473,005 | ||||||||
U.S. Foodservice Operations | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,550,524 | 2,449,741 | 2,358,819 | ||||||||
U.S. Foodservice Operations | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,127,701 | 1,107,574 | 1,077,680 | ||||||||
U.S. Foodservice Operations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,149,756 | 1,101,832 | 1,054,162 | ||||||||
International Foodservice Operations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 11,493,040 | 11,518,565 | 10,613,059 | ||||||||
International Foodservice Operations | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,627,392 | 1,666,247 | 1,547,790 | ||||||||
International Foodservice Operations | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,326,584 | 2,367,921 | 1,567,714 | ||||||||
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,074,991 | 2,538,265 | 2,393,206 | ||||||||
International Foodservice Operations | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 833,844 | 833,917 | 886,528 | ||||||||
International Foodservice Operations | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,243,773 | 1,260,354 | 1,102,625 | ||||||||
International Foodservice Operations | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,022,503 | 1,031,796 | 1,043,636 | ||||||||
International Foodservice Operations | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 369,329 | 400,345 | 374,379 | ||||||||
International Foodservice Operations | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 717,703 | 726,010 | 633,304 | ||||||||
International Foodservice Operations | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 531,247 | 196,379 | 353,305 | ||||||||
International Foodservice Operations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 745,674 | 497,331 | 710,572 | ||||||||
SYGMA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 6,244,328 | 6,557,033 | 6,178,909 | ||||||||
SYGMA | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,520,907 | 1,523,029 | 1,414,235 | ||||||||
SYGMA | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 270,651 | 327,785 | 315,426 | ||||||||
SYGMA | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,194,944 | 1,160,369 | 1,074,507 | ||||||||
SYGMA | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 892,316 | 1,125,085 | 1,048,368 | ||||||||
SYGMA | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 604,624 | 640,482 | 637,424 | ||||||||
SYGMA | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 241,602 | 255,192 | 258,761 | ||||||||
SYGMA | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 731,511 | 739,074 | 689,772 | ||||||||
SYGMA | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 113,746 | 104,459 | 97,227 | ||||||||
SYGMA | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 563,401 | 576,359 | 548,607 | ||||||||
SYGMA | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 110,626 | 105,199 | 94,582 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,088,366 | 1,009,463 | 974,473 | ||||||||
Other | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 61,908 | 59,166 | 59,314 | ||||||||
Other | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 86,845 | 84,868 | 79,861 | ||||||||
Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 939,613 | $ 865,429 | $ 835,298 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Jul. 05, 2016 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 |
Business Acquisition [Line Items] | ||||
Acquisition of businesses, net of cash acquired | $ 106,616 | $ 248,105 | $ 2,921,798 | |
Contingent consideration maximum number of years | 3 years | |||
Potential cash payout for contingent consideration arrangements | $ 18,900 | |||
Contingent consideration | $ 14,200 | |||
Cucina Lux Investments Limited | ||||
Business Acquisition [Line Items] | ||||
Acquisition of businesses, net of cash acquired | $ 2,900,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of total debt | $ 8,163,337 | $ 8,327,270 |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total debt | 8,600,000 | 8,400,000 |
Carrying value of total debt | 8,200,000 | 8,300,000 |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 73,024 | 199,404 |
Other assets | 18,785 | 163,519 |
Total assets at fair value | 91,809 | 362,923 |
Recurring Fair Value Measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 72,824 | 169,214 |
Other assets | 18,785 | 163,519 |
Total assets at fair value | 91,609 | 332,733 |
Recurring Fair Value Measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 200 | 30,190 |
Other assets | 0 | 0 |
Total assets at fair value | 200 | 30,190 |
Recurring Fair Value Measurements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) $ in Thousands | 12 Months Ended |
Jun. 29, 2019USD ($) | |
Marketable Securities [Line Items] | |
Amortized Cost Basis | $ 116,440 |
Gross Unrealized Gains | 3,579 |
Gross Unrealized Losses | 0 |
Fair Value | $ 120,019 |
Minimum | |
Marketable Securities [Line Items] | |
Debt securities maturities | 1 year |
Maximum | |
Marketable Securities [Line Items] | |
Debt securities maturities | 11 years |
Short-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | $ 12,006 |
Long-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 108,013 |
Corporate bonds | |
Marketable Securities [Line Items] | |
Amortized Cost Basis | 87,540 |
Gross Unrealized Gains | 1,734 |
Gross Unrealized Losses | 0 |
Fair Value | 89,274 |
Corporate bonds | Short-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 12,006 |
Corporate bonds | Long-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 77,268 |
Government bonds | |
Marketable Securities [Line Items] | |
Amortized Cost Basis | 28,900 |
Gross Unrealized Gains | 1,845 |
Gross Unrealized Losses | 0 |
Fair Value | 30,745 |
Government bonds | Short-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 0 |
Government bonds | Long-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | $ 30,745 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Allowance for Doubtful Accounts | |||
Balance at beginning of period | $ 25,768 | $ 31,059 | $ 37,880 |
Charged to costs and expenses | 62,946 | 21,448 | 20,672 |
Customer accounts written off, net of recoveries | (64,219) | (27,120) | (26,943) |
Other adjustments | 3,681 | 381 | (550) |
Balance at end of period | $ 28,176 | $ 25,768 | $ 31,059 |
PLANT AND EQUIPMENT (Details)
PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Total plant and equipment at cost | $ 9,954,229 | $ 10,200,850 | |
Accumulated depreciation | (5,452,524) | (5,679,190) | |
Total plant and equipment, net | 4,501,705 | 4,521,660 | $ 4,377,302 |
Depreciation expense | 656,600 | 614,800 | 765,400 |
Accelerated depreciation | 39,300 | ||
Intangible Assets, Amortization Period | |||
Property, Plant and Equipment [Line Items] | |||
Amortization | $ 111,300 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total plant and equipment at cost | 498,180 | 495,909 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total plant and equipment at cost | $ 4,545,099 | 4,268,687 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining life (in years) | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining life (in years) | 30 years | ||
Fleet and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total plant and equipment at cost | $ 3,697,008 | 3,808,133 | |
Fleet and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining life (in years) | 3 years | ||
Fleet and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining life (in years) | 10 years | ||
Computer hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Total plant and equipment at cost | $ 1,213,942 | $ 1,628,121 | |
Computer hardware and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining life (in years) | 3 years | ||
Computer hardware and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Remaining life (in years) | 7 years |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | $ 3,955,485 | $ 3,916,128 | |
Goodwill acquired during year | 19,555 | 56,668 | |
Currency translation/other | (78,814) | (17,311) | |
Goodwill carrying amount, ending balance | 3,896,226 | 3,955,485 | $ 3,916,128 |
Amortized intangibles acquired during year | $ 14,400 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 8 years | ||
Intangibles gross carrying amount | $ 1,079,405 | 1,174,586 | |
Intangibles accumulated amortization | (373,032) | (356,833) | |
Intangibles net amount | 706,373 | 817,753 | |
Indefinite-lived intangible assets balance | 150,928 | 162,059 | |
Intangibles amortization expense | 92,300 | 114,700 | 112,900 |
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||
2020 | 94,898 | ||
2021 | 92,562 | ||
2022 | 90,728 | ||
2023 | 87,552 | ||
2024 | 84,279 | ||
Trademarks | |||
Goodwill [Roll Forward] | |||
Indefinite-lived intangible assets balance | 149,962 | 161,093 | |
Licenses | |||
Goodwill [Roll Forward] | |||
Indefinite-lived intangible assets balance | 966 | 966 | |
Customer relationships | |||
Goodwill [Roll Forward] | |||
Amortized intangibles acquired during year | $ 10,600 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 7 years | ||
Intangibles gross carrying amount | $ 1,052,608 | 1,119,136 | |
Intangibles accumulated amortization | (358,592) | (307,408) | |
Intangibles net amount | 694,016 | 811,728 | |
Non-compete agreements | |||
Goodwill [Roll Forward] | |||
Amortized intangibles acquired during year | $ 1,600 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 5 years | ||
Intangibles gross carrying amount | $ 11,827 | 31,754 | |
Intangibles accumulated amortization | (8,556) | (28,819) | |
Intangibles net amount | 3,271 | 2,935 | |
Trademarks | |||
Goodwill [Roll Forward] | |||
Amortized intangibles acquired during year | $ 2,200 | ||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 15 years | ||
Intangibles gross carrying amount | $ 14,785 | 10,073 | |
Intangibles accumulated amortization | (5,736) | (7,058) | |
Intangibles net amount | 9,049 | 3,015 | |
Other | |||
Goodwill [Roll Forward] | |||
Intangibles gross carrying amount | 185 | 13,623 | |
Intangibles accumulated amortization | (148) | (13,548) | |
Intangibles net amount | 37 | 75 | |
U.S. Foodservice Operations | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 1,260,900 | 1,231,045 | |
Goodwill acquired during year | 10,428 | 36,020 | |
Currency translation/other | (5,843) | (6,165) | |
Goodwill carrying amount, ending balance | 1,265,485 | 1,260,900 | 1,231,045 |
International Foodservice Operations | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 2,440,821 | 2,432,508 | |
Goodwill acquired during year | 9,127 | 20,648 | |
Currency translation/other | (74,016) | (12,335) | |
Goodwill carrying amount, ending balance | 2,375,932 | 2,440,821 | 2,432,508 |
SYGMA | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 32,607 | 32,607 | |
Goodwill acquired during year | 0 | 0 | |
Currency translation/other | 0 | 0 | |
Goodwill carrying amount, ending balance | 32,607 | 32,607 | 32,607 |
Other | |||
Goodwill [Roll Forward] | |||
Goodwill carrying amount, beginning balance | 221,157 | 219,968 | |
Goodwill acquired during year | 0 | 0 | |
Currency translation/other | 1,045 | 1,189 | |
Goodwill carrying amount, ending balance | $ 222,202 | $ 221,157 | $ 219,968 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - ADDITIONAL INFORMATION (Details) | Jun. 29, 2019EUR (€) |
Interest Rate Swap, Due June 2023 | |
Derivative [Line Items] | |
Notional amount of derivative | € 500,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - SUMMARY OF INTEREST RATE SWAPS (Details) - 12 months ended Jun. 29, 2019 £ in Millions, kr in Millions, gal in Millions, $ in Millions, $ in Millions | USD ($)gal | GBP (£) | EUR (€) | CAD ($) | SEK (kr) |
Interest Rate Swap - October 1, 2020 | |||||
Derivative [Line Items] | |||||
Notional Value | $ 750 | ||||
Interest Rate Swap - July 15, 2021 | |||||
Derivative [Line Items] | |||||
Notional Value | 500 | ||||
Interest Rate Swap, Due June 2023 | |||||
Derivative [Line Items] | |||||
Notional Value | € | € 500,000,000 | ||||
Interest Rate Swap - March 2025 | |||||
Derivative [Line Items] | |||||
Notional Value | $ 500 | ||||
Hedging of foreign currency risk - Various | |||||
Derivative [Line Items] | |||||
Notional Value | £ 13 | kr 229 | |||
Hedging of foreign currency risk - June 2021 | |||||
Derivative [Line Items] | |||||
Notional Value | $ 235 | ||||
Hedging of foreign currency risk - July 2021 | |||||
Derivative [Line Items] | |||||
Notional Value | £ | 234 | ||||
Hedging of foreign currency risk - August 2021 | |||||
Derivative [Line Items] | |||||
Notional Value | £ | £ 466 | ||||
Hedging of foreign currency risk - June 2023 | |||||
Derivative [Line Items] | |||||
Notional Value | € | € 500,000,000 | ||||
Hedging of fuel risk | |||||
Derivative [Line Items] | |||||
Notional amount (in gallons) | gal | 51 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - BALANCE SHEET LOCATION (Details) - Hedging Instrument - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 |
Interest rate swaps | Fair value hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | $ 37,396 | $ 0 |
Interest rate swaps | Fair value hedging | Other current liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 6,820 |
Interest rate swaps | Fair value hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 9,285 | 49,734 |
Fuel swaps | Cash flow hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 136 | 0 |
Fuel swaps | Cash flow hedging | Other current liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 6,537 | 0 |
Fuel swaps | Cash flow hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 239 | 0 |
Fuel swaps | Cash flow hedging | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 154 | 15,316 |
Foreign currency forwards | Cash flow hedging | Other current liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 162 | 71 |
Foreign currency forwards | Cash flow hedging | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 624 | 693 |
Cross currency swaps | Cash flow hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 8,592 | 3,454 |
Cross currency swaps | Cash flow hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 14,201 |
Cross currency swaps | Cash flow hedging | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 4,284 |
Foreign currency swaps | Net investment hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 18,614 | 10,709 |
Foreign currency swaps | Net investment hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ 9,973 | $ 39,690 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - LOCATION OF GAIN (LOSS) ON DERIVATIVES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Derivative [Line Items] | |||||||||||
Cost of sales | $ 12,495,670 | $ 11,903,776 | $ 11,993,995 | $ 12,311,494 | $ 12,399,197 | $ 11,673,876 | $ 11,712,104 | $ 11,856,756 | $ 48,704,935 | $ 47,641,933 | $ 44,813,632 |
Operating expenses | 2,258,662 | 2,224,713 | 2,319,817 | 2,275,645 | 2,232,773 | 2,193,425 | 2,170,834 | 2,174,303 | 9,078,837 | 8,771,335 | 8,502,891 |
Interest expense | $ 89,780 | $ 94,514 | $ 87,113 | $ 89,016 | $ 92,468 | $ 136,145 | $ 85,986 | $ 80,884 | 360,423 | 395,483 | $ 302,878 |
Unrealized gain (loss) on hedged item in fair value hedge, interest expense | 62,400 | 63,500 | |||||||||
Unrealized gain (loss) on hedged item in fair value hedge, change in fair value of debt | 81,300 | 33,100 | |||||||||
Hedging Instrument | Fair value hedging | Cost of Goods Sold | Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | |||||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |||||||||
Hedging Instrument | Fair value hedging | Operating Expense | Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | |||||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | 0 | 0 | |||||||||
Hedging Instrument | Fair value hedging | Interest Expense | Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (143,711) | (30,418) | |||||||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 68,689 | $ (39,540) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Current maturities of long-term debt | ||
Derivative [Line Items] | ||
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ 5,097 | |
Carrying Amount of Hedged Assets (Liabilities) | (499,610) | |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (2,311,636) | |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | (28,616) | 47,555 |
Carrying Amount of Hedged Assets (Liabilities) | (1,743,732) | |
Hedging Instrument | Cash flow hedging | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (5,394) | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 8,689 | 15,759 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 22,996 | |
Hedging Instrument | Cash flow hedging | Hedging of fuel risk | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (22,100) | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 21,878 | |
Hedging Instrument | Cash flow hedging | Hedging of fuel risk | Operating expense | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 8,180 | 13,983 |
Hedging Instrument | Cash flow hedging | Foreign currency swaps | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 16,706 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 1,118 | |
Hedging Instrument | Cash flow hedging | Foreign currency swaps | Cost of goods sold | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 509 | 1,776 |
Hedging Instrument | Net investment hedging | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 58,138 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (33,284) | |
Hedging Instrument | Net investment hedging | Foreign currency swaps | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 42,488 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (20,584) | |
Hedging Instrument | Net investment hedging | Foreign denominated debt | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 15,650 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 0 | 0 |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | $ (12,700) |
SELF-INSURED LIABILITIES (Detai
SELF-INSURED LIABILITIES (Details) - Self-insured liabilities - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Self-Insured Liabilities | |||
Balance at beginning of period | $ 270,986 | $ 245,811 | $ 199,059 |
Charged to costs and expenses | 492,411 | 461,867 | 523,674 |
Payments | (465,580) | (436,692) | (476,922) |
Balance at end of period | 297,817 | 270,986 | $ 245,811 |
Long-term portion of self-insured liability balance | $ 183,600 | $ 167,100 |
DEBT AND OTHER FINANCING ARRA_3
DEBT AND OTHER FINANCING ARRANGEMENTS - SUMMARY (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 29, 2019 | Apr. 30, 2019 | Jun. 30, 2018 | Mar. 23, 2018 | |
Debt [Line Items] | ||||
Total debt | $ 8,163,337 | $ 8,327,270 | ||
Less current maturities of long-term debt | (37,322) | (782,329) | ||
Less notes payable | (3,957) | (4,176) | ||
Long-term debt | 8,122,058 | 7,540,765 | ||
Principal payment required during next five years | ||||
2020 | 35,197 | |||
2021 | 775,518 | |||
2022 | 967,931 | |||
2023 | 581,225 | |||
2024 | 8,352 | |||
Commercial Paper | ||||
Debt [Line Items] | ||||
Total debt | $ 132,081 | 0 | ||
Interest rate on debt instrument (as a percent) | 2.56% | |||
Senior Notes | Senior notes, interest at 1.90%, maturing in fiscal 2019 | ||||
Debt [Line Items] | ||||
Total debt | $ 0 | 491,700 | ||
Interest rate on debt instrument (as a percent) | 1.90% | 1.90% | ||
Maturity date on long-term debt stated in fiscal year | 2019 | |||
Senior Notes | Senior notes, interest at 5.375%, maturing in fiscal 2019 | ||||
Debt [Line Items] | ||||
Total debt | $ 0 | 249,701 | ||
Interest rate on debt instrument (as a percent) | 5.375% | |||
Maturity date on long-term debt stated in fiscal year | 2019 | |||
Senior Notes | Senior notes, interest at 2.60%, maturing in fiscal 2021 | ||||
Debt [Line Items] | ||||
Total debt | $ 744,034 | 724,047 | ||
Interest rate on debt instrument (as a percent) | 2.60% | |||
Maturity date on long-term debt stated in fiscal year | 2021 | |||
Senior Notes | Senior notes, interest at 2.50%, maturing in fiscal 2022 | ||||
Debt [Line Items] | ||||
Total debt | $ 494,814 | 477,411 | ||
Interest rate on debt instrument (as a percent) | 2.50% | |||
Maturity date on long-term debt stated in fiscal year | 2022 | |||
Senior Notes | Senior notes, interest at 2.60%, maturing in fiscal 2022 | ||||
Debt [Line Items] | ||||
Total debt | $ 447,509 | 446,681 | ||
Interest rate on debt instrument (as a percent) | 2.60% | |||
Maturity date on long-term debt stated in fiscal year | 2022 | |||
Senior Notes | Senior notes, interest at 1.25%, maturing in fiscal 2023 | ||||
Debt [Line Items] | ||||
Total debt | $ 576,771 | 580,196 | ||
Interest rate on debt instrument (as a percent) | 1.25% | |||
Maturity date on long-term debt stated in fiscal year | 2023 | |||
Senior Notes | Senior notes, interest at 3.55%, maturing in fiscal 2025 | ||||
Debt [Line Items] | ||||
Total debt | $ 521,490 | 492,606 | ||
Interest rate on debt instrument (as a percent) | 3.55% | |||
Maturity date on long-term debt stated in fiscal year | 2025 | |||
Senior Notes | Senior notes, interest at 3.65%, maturing in fiscal 2025 | ||||
Debt [Line Items] | ||||
Total debt | $ 379,658 | 0 | ||
Interest rate on debt instrument (as a percent) | 3.65% | |||
Maturity date on long-term debt stated in fiscal year | 2025 | |||
Senior Notes | Senior notes, interest at 3.75%, maturing in fiscal 2026 | ||||
Debt [Line Items] | ||||
Total debt | $ 747,330 | 746,879 | ||
Interest rate on debt instrument (as a percent) | 3.75% | |||
Maturity date on long-term debt stated in fiscal year | 2026 | |||
Senior Notes | Senior notes, interest at 3.30%, maturing in fiscal 2027 | ||||
Debt [Line Items] | ||||
Total debt | $ 993,084 | 992,176 | ||
Interest rate on debt instrument (as a percent) | 3.30% | |||
Maturity date on long-term debt stated in fiscal year | 2027 | |||
Senior Notes | Debentures, interest at 7.16%, maturing in fiscal 2027 | ||||
Debt [Line Items] | ||||
Interest rate on debt instrument (as a percent) | 7.16% | |||
Senior Notes | Senior notes, interest at 3.25%, maturing in fiscal 2028 | ||||
Debt [Line Items] | ||||
Total debt | $ 743,304 | 742,555 | ||
Interest rate on debt instrument (as a percent) | 3.25% | |||
Maturity date on long-term debt stated in fiscal year | 2028 | |||
Senior Notes | Senior notes, interest at 5.375%, maturing in fiscal 2036 | ||||
Debt [Line Items] | ||||
Total debt | $ 382,250 | 382,010 | ||
Interest rate on debt instrument (as a percent) | 5.375% | |||
Maturity date on long-term debt stated in fiscal year | 2036 | |||
Senior Notes | Senior notes, interest at 6.625%, maturing in fiscal 2039 | ||||
Debt [Line Items] | ||||
Total debt | $ 199,198 | 201,766 | ||
Interest rate on debt instrument (as a percent) | 6.625% | 6.625% | ||
Maturity date on long-term debt stated in fiscal year | 2039 | |||
Senior Notes | Senior notes, interest at 4.85%, maturing in fiscal 2046 | ||||
Debt [Line Items] | ||||
Total debt | $ 495,860 | 495,709 | ||
Interest rate on debt instrument (as a percent) | 4.85% | |||
Maturity date on long-term debt stated in fiscal year | 2046 | |||
Senior Notes | Senior notes, interest at 4.50%, maturing in fiscal 2046 | ||||
Debt [Line Items] | ||||
Total debt | $ 494,215 | 494,090 | ||
Interest rate on debt instrument (as a percent) | 4.50% | |||
Maturity date on long-term debt stated in fiscal year | 2046 | |||
Senior Notes | Senior notes, interest at 4.45%, maturing in fiscal 2048 | ||||
Debt [Line Items] | ||||
Total debt | $ 492,579 | 493,165 | ||
Interest rate on debt instrument (as a percent) | 4.45% | |||
Maturity date on long-term debt stated in fiscal year | 2048 | |||
Debentures | Debentures, interest at 7.16%, maturing in fiscal 2027 | ||||
Debt [Line Items] | ||||
Total debt | $ 44,272 | 44,276 | ||
Interest rate on debt instrument (as a percent) | 7.16% | |||
Maturity date on long-term debt stated in fiscal year | 2027 | |||
Debentures | Debentures, interest at 6.50%, maturing in fiscal 2029 | ||||
Debt [Line Items] | ||||
Total debt | $ 162,150 | 162,276 | ||
Interest rate on debt instrument (as a percent) | 6.50% | |||
Maturity date on long-term debt stated in fiscal year | 2029 | |||
Notes payable, capital leases, and other debt, interest averaging 4.99% and maturing at various dates to fiscal 2031 as of June 29, 2019 and 6.33% and maturing at various dates to fiscal 2026 as of June 30, 2018 | ||||
Debt [Line Items] | ||||
Total debt | $ 112,738 | $ 110,026 | ||
Average interest rate on debt instruments (as a percent) | 4.99% | 6.33% |
DEBT AND OTHER FINANCING ARRA_4
DEBT AND OTHER FINANCING ARRANGEMENTS - NARRATIVE (Details) | Sep. 25, 2018CAD ($) | Mar. 23, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | Apr. 30, 2019USD ($) | Mar. 30, 2019USD ($) |
Debt [Line Items] | ||||||||
Maximum commercial paper limit | $ 2,000,000,000 | |||||||
Carrying value of total debt | 8,163,337,000 | $ 8,327,270,000 | ||||||
Short term bank borrowings and commercial paper borrowings, minimum amount during period | 0 | |||||||
Short term bank borrowings and commercial paper borrowings, maximum amount during period | 1,100,000,000 | |||||||
Cash amount paid (including interest) | $ 230,500,000 | |||||||
Redemption loss | $ 53,100,000 | 0 | 53,104,000 | $ 0 | ||||
Loss on redemption of debt | 51,200,000 | |||||||
Write-off of deferred debt issuance costs | 1,100,000 | |||||||
Loss on extinguishment of debt, portion attributable to accelerated charge on debt discount | 800,000 | |||||||
Letters of credit outstanding, amount | 226,000,000 | 221,700,000 | ||||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt [Line Items] | ||||||||
Borrowing capacity | 2,000,000,000 | |||||||
Commercial Paper | ||||||||
Debt [Line Items] | ||||||||
Carrying value of total debt | $ 132,081,000 | 0 | ||||||
Interest rate on debt instrument (as a percent) | 2.56% | |||||||
Senior Notes | ||||||||
Debt [Line Items] | ||||||||
Tender offer, payment amount per $1,000 | $ 50 | |||||||
Senior Notes | Senior Notes, 3.65% in Canada | ||||||||
Debt [Line Items] | ||||||||
Debt instrument face amount | $ 500,000,000 | |||||||
Interest rate on debt instrument (as a percent) | 3.65% | |||||||
Pricing (percentage of par) | 99.962% | |||||||
Period prior to maturity for early redemption | 2 months | |||||||
Percent of principal due upon early repayment | 100.00% | |||||||
Percent of principal due after applicable date | 100.00% | |||||||
Senior Notes | Debentures, interest at 7.16%, maturing in fiscal 2027 | ||||||||
Debt [Line Items] | ||||||||
Interest rate on debt instrument (as a percent) | 7.16% | |||||||
Senior Notes | Senior Notes, interest at 6.500%, maturing in fiscal 2028 | ||||||||
Debt [Line Items] | ||||||||
Interest rate on debt instrument (as a percent) | 6.50% | |||||||
Senior Notes | Senior notes, interest at 5.375%, maturing in fiscal 2035 | ||||||||
Debt [Line Items] | ||||||||
Interest rate on debt instrument (as a percent) | 5.375% | |||||||
Senior Notes | Senior notes, interest at 6.625%, maturing in fiscal 2039 | ||||||||
Debt [Line Items] | ||||||||
Carrying value of total debt | $ 199,198,000 | 201,766,000 | ||||||
Interest rate on debt instrument (as a percent) | 6.625% | 6.625% | ||||||
Senior Notes | Senior notes, interest at 1.90%, maturing in fiscal 2019 | ||||||||
Debt [Line Items] | ||||||||
Carrying value of total debt | $ 0 | $ 491,700,000 | ||||||
Interest rate on debt instrument (as a percent) | 1.90% | 1.90% | ||||||
Principal amount tendered | $ 500,000,000 | |||||||
Senior Notes | Senior notes, interest at 5.25%, maturing in fiscal 2018 | ||||||||
Debt [Line Items] | ||||||||
Interest rate on debt instrument (as a percent) | 5.375% | |||||||
Principal amount tendered | $ 250,000,000 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Leases [Abstract] | |||
Operating leases, rent expense | $ 205,500 | $ 184,100 | $ 170,500 |
Aggregate minimum lease payments by fiscal year under existing long-term operating leases: | |||
2020 | 107,492 | ||
2021 | 99,232 | ||
2022 | 73,249 | ||
2023 | 58,287 | ||
2024 | 39,158 | ||
Thereafter | $ 266,445 |
COMPANY-SPONSORED EMPLOYEE BE_3
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plans expense | $ 150.4 | $ 151 | $ 141.2 |
Safe Harbor 401(k) Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-elective employer contribution, percent of participant's compensation | 3.00% | ||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Safe Harbor 401(k) Plan Non Adopting Unions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Management Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-elective employer contribution, percent of participant's compensation | 3.00% | ||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Maximum annual contributions per employee, percent of salary | 50.00% | ||
Maximum annual contributions per employee, percent of bonus | 90.00% |
COMPANY-SPONSORED EMPLOYEE BE_4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - FUNDED STATUS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Change in plan assets: | ||||
Employer contribution | $ 380,000 | |||
Cash surrender value of corporate-owned life insurance | $ 168,400 | $ 167,900 | ||
Accumulated other comprehensive loss (income) | ||||
Prior service cost | 10,202 | 21,849 | ||
Actuarial losses (gains) | 1,566,531 | 1,408,054 | ||
Total | 1,576,733 | 1,429,903 | ||
Accumulated benefit obligation for all pension benefit plans | 4,900,000 | 4,400,000 | ||
Other Postretirement Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 14,300 | |||
Benefit obligation at end of year | 10,800 | 14,300 | ||
Change in plan assets: | ||||
Cash surrender value of corporate-owned life insurance | 97,700 | 96,500 | ||
Pension Benefits and SERP | United States | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 4,043,011 | 4,224,231 | ||
Service cost | 13,977 | 14,514 | ||
Interest cost | 172,213 | 173,827 | ||
Amendments | 0 | 0 | ||
Plan Combinations | 0 | 0 | ||
Actuarial (gain) loss, net | 439,082 | (89,253) | ||
Total disbursements | (130,635) | (280,308) | ||
Exchange rate changes | 0 | 0 | ||
Benefit obligation at end of year | 4,537,648 | 4,043,011 | $ 4,224,231 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 3,666,408 | 3,341,662 | ||
Actual return on plan assets | 418,789 | 196,051 | ||
Employer contribution | 29,592 | 409,003 | ||
Total disbursements | (130,635) | (280,308) | ||
Exchange rate changes | 0 | 0 | ||
Fair value of plan assets at end of year | 3,984,154 | 3,666,408 | 3,341,662 | |
Funded status at end of year | (553,494) | (376,603) | ||
Accumulated benefit obligations/aggregate benefit obligation in excess of fair value of plan assets | ||||
Pension Benefits, Accumulated benefit obligation/aggregate benefit obligation | 4,524,513 | 4,034,383 | ||
Pension Benefits, Fair value of plan assets at end of year | 3,984,154 | 3,666,408 | ||
Pension Benefits | ||||
Change in plan assets: | ||||
Employer contribution | 37,200 | 415,000 | ||
Pension Benefits | United States | ||||
Change in benefit obligation: | ||||
Service cost | 13,977 | 14,514 | 14,287 | |
Interest cost | 172,213 | 173,827 | 171,282 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 3,666,408 | |||
Fair value of plan assets at end of year | 3,984,154 | 3,666,408 | ||
Amounts recognized in the balance sheets | ||||
Noncurrent assets (Other assets) | 0 | 63,945 | ||
Current accrued benefit liability (Accrued expenses) | (31,652) | (31,313) | ||
Noncurrent accrued benefit liability (Other long-term liabilities) | (521,842) | (409,235) | ||
Net amount recognized | (553,494) | (376,603) | ||
Accumulated other comprehensive loss (income) | ||||
Prior service cost | 10,790 | 19,170 | ||
Actuarial losses (gains) | 1,599,539 | 1,434,160 | ||
Total | 1,610,329 | 1,453,330 | ||
Pension Benefits | International Plan | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 399,000 | 420,735 | ||
Service cost | 2,790 | 3,219 | 2,880 | |
Interest cost | 10,637 | 10,667 | 9,951 | |
Amendments | 3,050 | (4,624) | ||
Plan Combinations | 173 | 0 | ||
Actuarial (gain) loss, net | 20,783 | (21,162) | ||
Total disbursements | (14,398) | (13,817) | ||
Exchange rate changes | (15,338) | 3,982 | ||
Benefit obligation at end of year | 406,697 | 399,000 | 420,735 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 258,028 | 259,372 | ||
Actual return on plan assets | 23,765 | 897 | ||
Employer contribution | 7,612 | 7,960 | ||
Total disbursements | (14,398) | (13,817) | ||
Exchange rate changes | (10,261) | 3,616 | ||
Fair value of plan assets at end of year | 264,746 | 258,028 | $ 259,372 | |
Funded status at end of year | (141,951) | (140,972) | ||
Amounts recognized in the balance sheets | ||||
Noncurrent assets (Other assets) | 0 | 0 | ||
Current accrued benefit liability (Accrued expenses) | (1,285) | (1,280) | ||
Noncurrent accrued benefit liability (Other long-term liabilities) | (140,666) | (139,692) | ||
Net amount recognized | (141,951) | (140,972) | ||
Accumulated other comprehensive loss (income) | ||||
Prior service cost | (588) | 2,679 | ||
Actuarial losses (gains) | (33,008) | (26,106) | ||
Total | (33,596) | (23,427) | ||
Accumulated benefit obligations/aggregate benefit obligation in excess of fair value of plan assets | ||||
Pension Benefits, Accumulated benefit obligation/aggregate benefit obligation | 399,966 | 392,457 | ||
Pension Benefits, Fair value of plan assets at end of year | 264,746 | 258,028 | ||
Supplemental executive retirement plan | ||||
Change in plan assets: | ||||
Long-term defined benefit pension liabilities | $ 468,000 | $ 440,500 |
COMPANY-SPONSORED EMPLOYEE BE_5
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET BENEFIT COSTS AND OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of actuarial loss | $ 155,074 | $ (52,511) | $ (97,283) |
Prior service cost arising in current year | (6,400) | (6,905) | (7,004) |
Actuarial gain (loss) arising in current year | (26,116) | (25,110) | (25,965) |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost | 7,455 | ||
Amortization of actuarial losses (gains) | 39,616 | ||
Total | 47,071 | ||
Pension Benefits | United States | |||
Net benefit costs | |||
Service cost | 13,977 | 14,514 | 14,287 |
Interest cost | 172,213 | 173,827 | 171,282 |
Expected return on plan assets | (180,624) | (233,987) | (222,699) |
Amortization of prior service cost | 8,380 | 9,460 | 11,202 |
Amortization of actuarial loss | 35,537 | 35,696 | 41,511 |
Curtailment loss | 0 | 0 | 0 |
Settlement loss (gain) recognized | 0 | 0 | 0 |
Net pension (benefits) costs | 49,483 | (490) | 15,583 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of prior service cost | 8,380 | 9,460 | 11,202 |
Amortization of actuarial loss | 35,537 | 35,696 | 41,511 |
Prior service cost arising in current year | 0 | 0 | (925) |
Effect of exchange rates on amounts in AOCI | 0 | 0 | 0 |
Actuarial gain (loss) arising in current year | (163,588) | 51,318 | 197,871 |
Net pension costs | (119,671) | 96,474 | 249,659 |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost | 7,537 | ||
Amortization of actuarial losses (gains) | 39,483 | ||
Total | 47,020 | ||
Pension Benefits | International Plan | |||
Net benefit costs | |||
Service cost | 2,790 | 3,219 | 2,880 |
Interest cost | 10,637 | 10,667 | 9,951 |
Expected return on plan assets | (11,072) | (11,653) | (10,033) |
Amortization of prior service cost | (202) | (2,003) | (1) |
Amortization of actuarial loss | (98) | (67) | (38) |
Curtailment loss | 0 | 0 | (611) |
Settlement loss (gain) recognized | 109 | 16 | 0 |
Net pension (benefits) costs | 2,164 | 179 | 2,148 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of prior service cost | (202) | (2,003) | (1) |
Amortization of actuarial loss | 11 | (51) | (38) |
Prior service cost arising in current year | (3,050) | 4,624 | 110 |
Effect of exchange rates on amounts in AOCI | 1,163 | (583) | (1,269) |
Actuarial gain (loss) arising in current year | (8,090) | 10,406 | (34,623) |
Net pension costs | (10,168) | $ 12,393 | $ (35,821) |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost | (82) | ||
Amortization of actuarial losses (gains) | 133 | ||
Total | $ 51 |
COMPANY-SPONSORED EMPLOYEE BE_6
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - EMPLOYER CONTRIBUTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution | $ 380,000 | ||
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution | $ 37,200 | $ 415,000 | |
Pension Benefits | International Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution | 7,612 | $ 7,960 | |
Estimated contributions to defined benefit plans in next fiscal year | 7,000 | ||
Supplemental executive retirement plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Estimated contributions to defined benefit plans in next fiscal year | $ 31,700 |
COMPANY-SPONSORED EMPLOYEE BE_7
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - ESTIMATED FUTURE BENEFIT PAYMENTS (Details) - Pension Benefits $ in Thousands | Jun. 29, 2019USD ($) |
United States | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | $ 149,999 |
2021 | 160,568 |
2022 | 171,171 |
2023 | 181,811 |
2024 | 191,850 |
Subsequent five years | 1,097,454 |
International Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 9,938 |
2021 | 11,240 |
2022 | 11,481 |
2023 | 12,707 |
2024 | 14,280 |
Subsequent five years | $ 86,099 |
COMPANY-SPONSORED EMPLOYEE BE_8
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - ASSUMPTIONS (Details) | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Pension Benefits | United States | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 3.70% | 4.28% | |
Rate of compensation increase | 2.56% | 2.62% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 4.28% | 4.19% | 4.07% |
Expected rate of return | 5.00% | 7.00% | 7.25% |
Rate of compensation increase | 2.62% | 2.62% | 2.62% |
Discount rate used to calculate next year benefit costs | 3.70% | ||
Expected rate of return on plan assets used in calculating net periodic benefit cost for next fiscal year | 5.00% | ||
Pension Benefits | United Kingdom | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.30% | 2.85% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 2.85% | 2.60% | 2.80% |
Expected rate of return | 4.55% | 4.55% | 4.15% |
Discount rate used to calculate next year benefit costs | 2.30% | ||
Expected rate of return on plan assets used in calculating net periodic benefit cost for next fiscal year | 4.55% | ||
Supplemental executive retirement plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 3.62% | 4.41% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 4.41% | 4.08% | 3.91% |
Discount rate used to calculate next year benefit costs | 3.62% |
COMPANY-SPONSORED EMPLOYEE BE_9
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - INVESTMENTS STRATEGY (Details) - Pension Benefits | 12 Months Ended | |
Jun. 30, 2018 | Jun. 29, 2019 | |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual investment allocation | 100.00% | |
United Kingdom | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target investment allocation | 2.90% | |
Actual investment allocation | 100.00% | |
Maximum allowable portfolio annual risk | 12.00% | |
Growth assets | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target investment allocation | 30.00% | |
Actual investment allocation | 27.00% | |
Liability hedging assets | United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target investment allocation | 70.00% | |
Actual investment allocation | 73.00% | |
Liability hedging assets | United Kingdom | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target investment allocation | 25.00% | |
Actual investment allocation | 29.00% | |
Common contractual fund | United Kingdom | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target investment allocation | 75.00% | |
Actual investment allocation | 71.00% |
COMPANY-SPONSORED EMPLOYEE B_10
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - FAIR VALUE MEASUREMENTS (Details) - Pension Benefits - USD ($) | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 3,984,154,000 | $ 3,666,408,000 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 81,247,000 | 60,240,000 | |
United States | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded commitments related to investments | 0 | 0 | |
United States | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 468,923,000 | 224,420,000 | |
United States | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 202,493,000 | 167,145,000 | |
United States | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 226,409,000 | 388,281,000 | |
Unfunded commitments related to investments | 0 | 0 | |
United States | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 93,592,000 | 146,389,000 | |
Unfunded commitments related to investments | $ 10,300,000 | ||
Nonredeemable portion of investment, percent | 15.00% | ||
United States | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 84,266,000 | 84,003,000 | |
Unfunded commitments related to investments | 17,600,000 | 22,600,000 | |
United States | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,987,964,000 | 1,775,324,000 | |
United States | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 821,118,000 | 747,854,000 | |
United States | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,142,000 | 27,324,000 | |
United States | High yield and emerging markets fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45,428,000 | ||
Unfunded commitments related to investments | 0 | ||
Maximum withdrawal limitation | $ 2,000,000 | ||
Maximum withdrawal limitation, percent of asset value | 5.00% | ||
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135,277,000 | $ 164,488,000 | |
United States | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39,981,000 | 25,810,000 | |
United States | Level 1 | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 80,719,000 | |
United States | Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 95,296,000 | 57,959,000 | |
United States | Level 1 | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | High yield and emerging markets fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,346,001,000 | 2,115,064,000 | |
United States | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41,266,000 | 34,430,000 | |
United States | Level 2 | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,987,964,000 | 1,775,324,000 | |
United States | Level 2 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 298,629,000 | 277,986,000 | |
United States | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18,142,000 | 27,324,000 | |
United States | Level 2 | High yield and emerging markets fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | High yield and emerging markets fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Fair Value Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,502,876,000 | 1,386,856,000 | |
United States | Fair Value Measured at NAV | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fair Value Measured at NAV | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 468,923,000 | 143,701,000 | |
United States | Fair Value Measured at NAV | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 107,197,000 | 109,186,000 | |
United States | Fair Value Measured at NAV | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 226,409,000 | 388,281,000 | |
United States | Fair Value Measured at NAV | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 93,592,000 | 146,389,000 | |
United States | Fair Value Measured at NAV | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84,266,000 | 84,003,000 | |
United States | Fair Value Measured at NAV | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fair Value Measured at NAV | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 522,489,000 | 469,868,000 | |
United States | Fair Value Measured at NAV | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fair Value Measured at NAV | High yield and emerging markets fixed income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 45,428,000 | ||
International Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 264,746,000 | 258,028,000 | $ 259,372,000 |
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 264,746,000 | 258,028,000 | |
United Kingdom | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,372,000 | 30,987,000 | |
United Kingdom | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63,363,000 | 9,336,000 | |
United Kingdom | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 575,000 | 17,658,000 | |
Fair value of derivative assets | 9,300,000 | 45,200,000 | |
Fair value of derivative liabilities | 8,700,000 | 27,500,000 | |
United Kingdom | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,387,000 | ||
United Kingdom | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 187,436,000 | 194,660,000 | |
Unfunded commitments related to investments | 13,900,000 | 20,800,000 | |
United Kingdom | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,372,000 | 30,987,000 | |
United Kingdom | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,372,000 | 30,987,000 | |
United Kingdom | Level 1 | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 1 | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 1 | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United Kingdom | Level 1 | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63,938,000 | 32,381,000 | |
United Kingdom | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 2 | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63,363,000 | 9,336,000 | |
United Kingdom | Level 2 | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 575,000 | 17,658,000 | |
United Kingdom | Level 2 | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,387,000 | ||
United Kingdom | Level 2 | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United Kingdom | Level 3 | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 187,436,000 | 194,660,000 | |
United Kingdom | Fair Value Measured at NAV | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United Kingdom | Fair Value Measured at NAV | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 187,436,000 | $ 194,660,000 |
MULTIEMPLOYER EMPLOYEE BENEFI_3
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS (Details) - Multiemployer Defined Benefit Pension Plans - USD ($) $ in Millions | 12 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Multiemployer Plans [Line Items] | ||
Percentage of employees participating in multi-employer plans | 12.00% | |
New York State Teamsters Conference Pension and Retirement Fund | ||
Multiemployer Plans [Line Items] | ||
Withdrawal liability accrued | $ 37.3 |
MULTIEMPLOYER EMPLOYEE BENEFI_4
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS - PLAN CONTRIBUTIONS (Details) - Multiemployer Defined Benefit Pension Plans - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | $ 48,545 | $ 46,375 | $ 44,551 |
Individually significant plans | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | 40,947 | 39,121 | 36,653 |
All other plans | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan contributions | $ 7,598 | $ 7,254 | $ 7,898 |
MULTIEMPLOYER EMPLOYEE BENEFI_5
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS - INDIVIDUALLY SIGNIFICANT PLANS (Details) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019USD ($)agreement | Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | |
Western Conference of Teamsters Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | Green | Green | |
Multiemployer plan number of collective bargaining agreements | agreement | 22 | ||
Multiemployer plan contributions | $ 31,669 | $ 30,460 | $ 28,145 |
Western Conference of Teamsters Pension Plan | Minimum | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 1.00% | ||
Western Conference of Teamsters Pension Plan | Maximum | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 12.00% | ||
Teamsters Pension Trust Fund of Philadelphia and Vicinity | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | Yellow | Yellow | |
Multiemployer plan contributions | $ 3,454 | $ 3,313 | 3,081 |
Truck Drivers and Helpers Local Union No. 355 Retirement Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | Green | Yellow | |
Multiemployer plan contributions | $ 2,321 | $ 2,245 | 2,430 |
Minneapolis Food Distributing Industry Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | Green | Green | |
Multiemployer plan contributions | $ 3,503 | $ 3,103 | $ 2,996 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Numerator: | |||||||||||
Net earnings | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 448,928 | $ 330,085 | $ 284,113 | $ 367,640 | $ 1,674,271 | $ 1,430,766 | $ 1,142,503 |
Denominator: | |||||||||||
Weighted-average basic shares outstanding (in shares) | 516,890,581 | 522,926,914 | 543,496,816 | ||||||||
Dilutive effect of share-based awards (in shares) | 6,490,543 | 6,162,940 | 5,048,211 | ||||||||
Weighted-average diluted shares outstanding (in shares) | 523,381,124 | 529,089,854 | 548,545,027 | ||||||||
Basic earnings per share (in dollars per share) | $ 1.04 | $ 0.86 | $ 0.52 | $ 0.83 | $ 0.86 | $ 0.63 | $ 0.55 | $ 0.70 | $ 3.24 | $ 2.74 | $ 2.10 |
Diluted earnings per share (in dollars per share) | $ 1.03 | $ 0.85 | $ 0.51 | $ 0.81 | $ 0.85 | $ 0.63 | $ 0.54 | $ 0.69 | $ 3.20 | $ 2.70 | $ 2.08 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dividends declared | $ 793,220 | $ 735,266 | $ 700,886 | ||||||||
Dividends declared but not yet paid | $ 200,000 | $ 187,400 | $ 200,000 | $ 187,400 | $ 174,900 | ||||||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive securities excluded (in shares) | 2,338,000 | 2,303,000 | 4,194,000 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS OF OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive income | $ 1,483,811 | $ 1,520,679 | $ 1,237,884 |
Before Tax Amount | |||
Total other comprehensive income (loss) | (208,099) | 124,097 | 176,786 |
Tax | |||
Total other comprehensive income (loss) | (17,639) | 34,184 | 81,405 |
Net of Tax Amount | |||
Before reclassifications, net of tax | (234,423) | 49,658 | 55,330 |
Reclassifications, net of tax | 41,136 | 40,255 | 40,051 |
Total other comprehensive (loss) income | (190,460) | 89,913 | 95,381 |
Pension and other postretirement benefit plans | |||
Net of Tax Amount | |||
Before reclassifications, net of tax | (155,074) | 52,511 | 97,283 |
Reclassifications, net of tax | 32,516 | 32,015 | 32,969 |
Pension and other postretirement benefit plans | Other expense, net | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 43,356 | 44,680 | |
Tax | |||
Reclassifications tax | 10,840 | 12,665 | |
Net of Tax Amount | |||
Reclassifications, net of tax | 32,516 | 32,015 | |
Pension and other postretirement benefit plans | Operating expenses | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 53,059 | ||
Tax | |||
Reclassifications tax | 20,090 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 32,969 | ||
Amortization of prior service cost | Other expense, net | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 8,532 | 9,636 | |
Tax | |||
Reclassifications tax | 2,132 | 2,731 | |
Net of Tax Amount | |||
Reclassifications, net of tax | 6,400 | 6,905 | |
Amortization of prior service cost | Operating expenses | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,370 | ||
Tax | |||
Reclassifications tax | 4,366 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 7,004 | ||
Amortization of actuarial loss (gain), net | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (200,144) | 69,476 | 168,498 |
Tax | |||
Before reclassifications tax | (45,070) | 16,965 | 71,215 |
Net of Tax Amount | |||
Before reclassifications, net of tax | (155,074) | 52,511 | 97,283 |
Amortization of actuarial loss (gain), net | Other expense, net | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 34,824 | 35,044 | |
Tax | |||
Reclassifications tax | 8,708 | 9,934 | |
Net of Tax Amount | |||
Reclassifications, net of tax | 26,116 | 25,110 | |
Amortization of actuarial loss (gain), net | Operating expenses | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 41,689 | ||
Tax | |||
Reclassifications tax | 15,724 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 25,965 | ||
Foreign currency translation | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (119,126) | (22,987) | (11,243) |
Tax | |||
Before reclassifications tax | 0 | 0 | 0 |
Net of Tax Amount | |||
Before reclassifications, net of tax | (119,126) | (22,987) | (11,243) |
Marketable Securities | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 3,579 | ||
Tax | |||
Before reclassifications tax | 752 | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | 2,827 | ||
Hedging, net of tax | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (10,871) | ||
Tax | |||
Before reclassifications tax | (4,173) | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | (6,698) | ||
Hedging, net of tax | Interest expense | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,495 | ||
Tax | |||
Reclassifications tax | 4,413 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 7,082 | ||
Change in net investment hedges | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 58,138 | (2,443) | (34,152) |
Tax | |||
Before reclassifications tax | 14,299 | (8,234) | (10,140) |
Net of Tax Amount | |||
Before reclassifications, net of tax | 43,839 | 5,791 | (24,012) |
Change in cash flow hedges | Operating expenses | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 23,872 | ||
Tax | |||
Before reclassifications tax | 9,529 | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | 14,343 | ||
Change in cash flow hedges | Interest expense | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,499 | ||
Tax | |||
Reclassifications tax | 3,259 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 8,240 | ||
Total other comprehensive income (loss) before reclassification adjustments | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 52,744 | 21,429 | (45,023) |
Tax | |||
Before reclassifications tax | 12,967 | 1,295 | (14,313) |
Net of Tax Amount | |||
Before reclassifications, net of tax | 39,777 | $ 20,134 | $ (30,710) |
Change in cash flow hedges | Operating expenses | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (5,394) | ||
Tax | |||
Before reclassifications tax | (1,332) | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | (4,062) | ||
Change in cash flow hedges | Interest expense | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,492 | ||
Tax | |||
Reclassifications tax | 2,872 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | $ 8,620 |
OTHER COMPREHENSIVE INCOME - SU
OTHER COMPREHENSIVE INCOME - SUMMARY OF CHANGES IN AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | $ 2,506,957 | $ 2,381,516 | $ 3,479,608 |
Other comprehensive income before reclassification adjustments | (234,423) | 49,658 | 55,330 |
Amounts reclassified from accumulated other comprehensive loss | 41,136 | 40,255 | 40,051 |
Amounts reclassified to retained earnings | (236,445) | ||
Change in marketable securities | 2,827 | ||
Ending balance, shareholders' equity | 2,502,603 | 2,506,957 | 2,381,516 |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (1,409,269) | (1,262,737) | (1,358,118) |
Ending balance, shareholders' equity | (1,599,729) | (1,409,269) | (1,262,737) |
Pension and Other Postretirement Benefit Plans, net of tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (1,095,059) | (974,232) | (1,104,484) |
Other comprehensive income before reclassification adjustments | (155,074) | 52,511 | 97,283 |
Amounts reclassified from accumulated other comprehensive loss | 32,516 | 32,015 | 32,969 |
Amounts reclassified to retained earnings | (205,353) | ||
Ending balance, shareholders' equity | (1,217,617) | (1,095,059) | (974,232) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (171,043) | (148,056) | (136,813) |
Other comprehensive income before reclassification adjustments | (119,126) | (22,987) | (11,243) |
Ending balance, shareholders' equity | (290,169) | (171,043) | (148,056) |
Hedging, net of tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (143,167) | (140,449) | (116,821) |
Other comprehensive income before reclassification adjustments | 39,777 | 20,134 | (30,710) |
Amounts reclassified from accumulated other comprehensive loss | 8,620 | 8,240 | 7,082 |
Amounts reclassified to retained earnings | (31,092) | ||
Ending balance, shareholders' equity | (94,770) | (143,167) | (140,449) |
Marketable Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | 0 | 0 | 0 |
Other comprehensive income before reclassification adjustments | 2,827 | ||
Change in marketable securities | 2,827 | ||
Ending balance, shareholders' equity | $ 2,827 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - STOC
SHARE-BASED COMPENSATION - STOCK INCENTIVE PLANS (Details) - shares | 1 Months Ended | 12 Months Ended |
Nov. 30, 2018 | Jun. 29, 2019 | |
2018 Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares authorized (in shares) | 51,500,000 | |
Performance measurement period (in years) | 10 years | |
Total number of shares available for grant (in shares) | 50,783,126 | |
2018 Omnibus Incentive Plan | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period (in years) | 1 year | |
2018 Omnibus Incentive Plan | Restricted Stock, Restricted Stock Units Or Other Types Of Stock-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares authorized (in shares) | 17,500,000 | |
Total number of shares available for grant (in shares) | 16,841,942 | |
2018 Omnibus Incentive Plan | Options Or Stock Apppreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares available for grant (in shares) | 50,783,126 | |
Long-term Incentive Plan prior to 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period (in years) | 10 years |
SHARE-BASED COMPENSATION - PERF
SHARE-BASED COMPENSATION - PERFORMANCE SHARE UNITS (Details) - Performance Share Units (PSUs) - $ / shares | 12 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 581,174 | 895,968 |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 74.86 | $ 51.11 |
SHARE-BASED COMPENSATION - ST_2
SHARE-BASED COMPENSATION - STOCK OPTIONS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019USD ($)employeeofficer$ / sharesshares | Jun. 30, 2018USD ($)employee$ / sharesshares | Jul. 01, 2017USD ($)employeeofficer$ / sharesshares | |
Fair Value Assumptions and Methodology | |||
Dividend yield | 2.50% | 2.60% | 2.80% |
Expected volatility | 16.90% | 17.50% | 16.90% |
Risk-free interest rate | 2.80% | 2.00% | 1.40% |
Expected life (in years) | 7 years | 7 years | 7 years 2 months 12 days |
Shares Under Option | |||
Outstanding, beginning balance (in shares) | 18,391,610 | ||
Granted (in shares) | 2,609,755 | 4,042,415 | 4,990,396 |
Exercised (in shares) | 5,796,853 | ||
Forfeited (in shares) | 215,235 | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 14,989,277 | 18,391,610 | |
Vested or expected to vest (in shares) | 9,018,881 | ||
Exercisable (in shares) | 5,866,374 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 43.92 | ||
Granted (in dollars per share) | $ / shares | 74.88 | ||
Exercised (in dollars per share) | $ / shares | 40.88 | ||
Forfeited (in dollars per share) | $ / shares | 54.29 | ||
Expired (in dollars per share) | $ / shares | 0 | ||
Outstanding, ending balance (in dollars per share) | $ / shares | 50.36 | $ 43.92 | |
Vested or expected to vest (in dollars per share) | $ / shares | 55.01 | ||
Exercisable (in dollars per share) | $ / shares | $ 42.96 | ||
Additional Disclosures | |||
Outstanding, ending balance, weighted average remaining contractual term (in years) | 7 years 18 days | ||
Vested or expected to vest, weighted average remaining contractual term (in years) | 7 years 8 months 15 days | ||
Exercisable, weighted average remaining contractual term (in years) | 6 years 3 days | ||
Outstanding, ending balance, aggregate intrinsic value | $ | $ 316,212 | ||
Vested or expected to vest, aggregate intrinsic value | $ | 152,389 | ||
Exercisable, aggregate intrinsic value | $ | $ 162,835 | ||
Weighted average fair value of options granted in period (in USD per share) | $ / shares | $ 11.70 | $ 7.08 | $ 6.05 |
Total intrinsic value of options exercised in period | $ | $ 14,000 | $ 17,700 | $ 22,100 |
Key Employees | |||
Shares Under Option | |||
Granted (in shares) | 1,952,414 | 3,087,071 | 3,460,399 |
Additional Disclosures | |||
Number of employees/officers receiving options in period | employee | 179 | 181 | 187 |
Executive Officer | |||
Shares Under Option | |||
Granted (in shares) | 657,341 | 955,344 | 1,529,997 |
Additional Disclosures | |||
Number of employees/officers receiving options in period | 9 | 10 | 9 |
SHARE-BASED COMPENSATION - REST
SHARE-BASED COMPENSATION - RESTRICTED STOCK UNITS (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options granted (in shares) | 617,685 | 660,923 | 631,281 |
Equity instruments other than options granted, award vesting period (in years) | 3 years | ||
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 63.91 | $ 55.81 | $ 50.04 |
Equity instruments other than options vested, total fair value | $ 35.3 | $ 40.4 | $ 46 |
Equity instruments other than options exercised, intrinsic value | $ 49.8 | $ 56.4 | $ 65.1 |
SHARE-BASED COMPENSATION - NON-
SHARE-BASED COMPENSATION - NON-EMPLOYEE DIRECTOR AWARDS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options distributed, total fair value | $ 0.7 | $ 1.2 | $ 1.1 |
Equity instruments other than options vested (in shares) | 10,672 | 21,478 | 22,094 |
Equity instruments other than options vested, weighted average grant date fair value per share (in dollars per share) | $ 67.45 | $ 54.69 | $ 51.46 |
Director Restricted Award And Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options vested but not distributed ending balance (in shares) | 73,548 | ||
Director Restricted Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options granted (in shares) | 30,870 | 35,672 | 40,498 |
Equity instruments other than options granted, award vesting period (in years) | 1 year | ||
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 66.22 | $ 54.10 | $ 53.49 |
Equity instruments other than options distributed, total fair value | $ 2 | $ 2.9 | $ 2 |
2009 Non-Employee Directors Stock Plan | Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of annual director fees that can be received in common stock | 100.00% | ||
Matching percentage of shares received in the stock election | 50.00% |
SHARE-BASED COMPENSATION - SUMM
SHARE-BASED COMPENSATION - SUMMARY OF NONVESTED AWARDS (Details) - Nonvested Awards | 12 Months Ended |
Jun. 29, 2019$ / sharesshares | |
Shares | |
Nonvested beginning balance (in shares) | shares | 3,086,884 |
Granted (in shares) | shares | 1,262,405 |
Vested (in shares) | shares | (764,762) |
Forfeited (in shares) | shares | (296,786) |
Nonvested ending balance (in shares) | shares | 3,287,741 |
Weighted Average Grant Date Fair Value Per Share | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 51.08 |
Granted (in dollars per share) | $ / shares | 69.29 |
Vested (in dollars per share) | $ / shares | 48.13 |
Forfeited (in dollars per share) | $ / shares | 55.05 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 58.40 |
SHARE-BASED COMPENSATION - EMPL
SHARE-BASED COMPENSATION - EMPLOYEES' STOCK PURCHASE PLAN (Details) - Employees' Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, discount from market price | 15.00% | ||
Total number of shares authorized (in shares) | 79,000,000 | ||
Total number of shares available for grant (in shares) | 6,238,555 | ||
Equity instruments other than options vested (in shares) | 986,631 | 1,078,597 | 1,103,995 |
Equity instruments other than options vested, weighted average grant date fair value per share (in dollars per share) | $ 10.17 | $ 8.38 | $ 7.73 |
SHARE-BASED COMPENSATION - ALL
SHARE-BASED COMPENSATION - ALL SHARE-BASED PAYMENT ARRANGEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Share-based compensation expense | $ 104,904 | $ 93,841 | $ 83,883 |
Total income tax benefit for share-based compensation arrangements | 21,700 | 19,400 | 30,000 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 116,400 | ||
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 1 year 10 months 2 days | ||
Cash received from options exercises and purchase of shares under the employees' stock purchase plan | $ 253,100 | 268,800 | 204,800 |
Share-based compensation | $ 32,400 | $ 38,400 | $ 38,900 |
INCOME TAXES - INCOME TAX PROVI
INCOME TAXES - INCOME TAX PROVISIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States pretax income | $ 1,910,549 | $ 1,765,793 | $ 1,569,073 | ||||||||
Foreign pretax income | 95,287 | 190,431 | 197,157 | ||||||||
Earnings before income taxes | $ 682,308 | $ 430,951 | $ 354,585 | $ 537,992 | $ 593,156 | $ 364,884 | $ 451,728 | $ 546,456 | 2,005,836 | 1,956,224 | 1,766,230 |
U.S. federal income taxes | 262,940 | 399,254 | 534,266 | ||||||||
State and local income taxes | 73,835 | 62,670 | 69,913 | ||||||||
Foreign income taxes | (5,210) | 63,534 | 19,548 | ||||||||
Current income tax expense | 458,284 | 337,550 | 675,573 | ||||||||
Deferred income tax expense (benefit) | (126,719) | 187,908 | (51,846) | ||||||||
Total income tax expense | $ 146,542 | $ (9,132) | $ 87,205 | $ 106,950 | $ 144,228 | $ 34,799 | $ 167,615 | $ 178,816 | $ 331,565 | $ 525,458 | $ 623,727 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 274,231 | $ 226,274 |
Pension | 157,670 | 115,361 |
Share-based compensation | 39,218 | 34,486 |
Deferred compensation | 29,694 | 29,512 |
Receivables | 17,383 | 13,001 |
Self-insured liabilities | 16,496 | 0 |
Inventory | 12,139 | 14,728 |
Foreign currency remeasurement losses and currency hedge | 1,725 | 15,796 |
Other | 32,641 | 33,386 |
Deferred tax assets before valuation allowances | 581,197 | 482,544 |
Valuation allowances | (127,807) | (123,237) |
Total deferred tax assets | 453,390 | 359,307 |
Deferred tax liabilities: | ||
Excess tax depreciation and basis differences of assets | 163,123 | 180,950 |
Goodwill and intangible assets | 358,847 | 373,041 |
Other | 22,892 | 40,774 |
Total deferred tax liabilities | 544,862 | 594,765 |
Total net deferred tax (liability) | $ (91,472) | $ (235,458) |
INCOME TAXES - OTHER (Details)
INCOME TAXES - OTHER (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | $ 127,807 | $ 123,237 |
Foreign Tax Authority | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward period | 17 years |
INCOME TAXES - TAX CUTS AND JOB
INCOME TAXES - TAX CUTS AND JOBS ACT (Details) $ in Millions | 3 Months Ended |
Dec. 29, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Income tax expense related to transition tax | $ 15.1 |
Tax benefits attributable to realizability of certain deferred tax assets | $ 3.2 |
INCOME TAXES - EFFECTIVE TAX RA
INCOME TAXES - EFFECTIVE TAX RATES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal income tax rate | 21.00% | 28.00% | 35.00% |
State and local income taxes, net of any applicable federal income tax benefit | 3.35% | 2.48% | 2.61% |
Foreign income taxes | (1.42%) | 0.07% | (2.81%) |
Uncertain tax position | (0.31%) | (0.22%) | 0.01% |
Tax benefit of equity-based compensation | (2.07%) | (2.66%) | 0.00% |
Impact of U.S. Tax Reform | (4.64%) | 0.13% | 0.00% |
Other | 0.62% | (0.95%) | 0.50% |
Effective income tax rate | 16.53% | 26.85% | 35.31% |
Foreign tax credits | $ 95.1 |
INCOME TAXES - UNCERTAIN TAX PO
INCOME TAXES - UNCERTAIN TAX POSITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Gross Unrecognized Tax Benefits, Excluding Interest and Penalties | ||
Unrecognized tax benefits at beginning of year | $ 12,195 | $ 16,278 |
Additions for tax positions related to prior years | 20,508 | 652 |
Reductions for tax positions related to prior years | (6,086) | (4,033) |
Reductions due to settlements with taxing authorities | (508) | (702) |
Unrecognized tax benefits at end of year | 26,109 | 12,195 |
Liability recorded for interest and penalties related to unrecognized tax benefits | 4,600 | 8,500 |
Amount of unrecognized tax benefits at balance sheet date that, if recognized, would impact effective tax rate | 24,800 | $ 9,600 |
Undistributed income from foreign subsidiaries | $ 384,800 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - FUEL COMMITMENTS (Details) $ in Billions | Jun. 29, 2019USD ($) |
Product Purchases for Resale Commitments | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Unrecorded unconditional purchase obligation as of balance sheet date | $ 2.6 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - OTHER COMMITMENTS (Details) $ in Thousands | 12 Months Ended |
Jun. 29, 2019USD ($) | |
Product Purchases for Resale Commitments | |
Product purchases for resale commitments: | |
2020 | $ 1,716,184 |
2021 | 391,136 |
2022 | 178,308 |
2023 | 175,750 |
2024 | 171,757 |
Information Technology Services Commitments | |
Product purchases for resale commitments: | |
Remaining amount of long-term purchase commitment | 459,200 |
Termination fee associated with long-term purchase commitment if terminated in next fiscal year | $ 48,700 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 29, 2019USD ($)segment | Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 15,315,906 | $ 14,349,504 | $ 14,411,490 | $ 14,650,424 | $ 60,113,922 | $ 58,727,324 | $ 55,371,139 |
Operating income | 720,530 | 529,585 | 451,895 | 628,140 | 683,936 | 482,203 | 528,552 | 619,365 | 2,330,150 | 2,314,056 | 2,054,616 |
Interest expense | 89,780 | 94,514 | 87,113 | 89,016 | 92,468 | 136,145 | 85,986 | 80,884 | 360,423 | 395,483 | 302,878 |
Other (income) expense, net | (51,558) | 4,120 | 10,197 | 1,132 | (1,688) | (18,826) | (9,162) | (7,975) | (36,109) | (37,651) | (14,492) |
Earnings before income taxes | 682,308 | $ 430,951 | $ 354,585 | $ 537,992 | 593,156 | $ 364,884 | $ 451,728 | $ 546,456 | 2,005,836 | 1,956,224 | 1,766,230 |
Depreciation and amortization | 763,935 | 765,498 | 901,992 | ||||||||
Capital expenditures | 692,391 | 687,815 | 686,378 | ||||||||
Assets | 17,966,522 | 18,070,404 | 17,966,522 | 18,070,404 | 17,756,655 | ||||||
U.S. Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 41,288,188 | 39,642,263 | 37,604,698 | ||||||||
International Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 11,493,040 | 11,518,565 | 10,613,059 | ||||||||
SYGMA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 6,244,328 | 6,557,033 | 6,178,909 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,088,366 | 1,009,463 | 974,473 | ||||||||
Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 60,113,922 | 58,727,324 | 55,371,139 | ||||||||
Operating income | 3,381,887 | 3,314,484 | 3,193,663 | ||||||||
Depreciation and amortization | 637,532 | 652,163 | 555,220 | ||||||||
Capital expenditures | 637,931 | 476,564 | 487,237 | ||||||||
Assets | 14,228,342 | 14,266,736 | 14,228,342 | 14,266,736 | 14,183,896 | ||||||
Operating | U.S. Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 41,288,188 | 39,642,263 | 37,604,698 | ||||||||
Operating income | 3,192,816 | 3,056,817 | 2,896,357 | ||||||||
Depreciation and amortization | 342,277 | 348,041 | 266,024 | ||||||||
Capital expenditures | 327,005 | 262,887 | 194,714 | ||||||||
Assets | 7,238,309 | 7,039,354 | 7,238,309 | 7,039,354 | 6,675,543 | ||||||
Operating | International Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 11,493,040 | 11,518,565 | 10,613,059 | ||||||||
Operating income | 125,443 | 193,864 | 243,790 | ||||||||
Depreciation and amortization | 248,914 | 258,156 | 243,628 | ||||||||
Capital expenditures | 249,527 | 157,139 | 228,564 | ||||||||
Assets | 5,888,275 | 6,112,666 | 5,888,275 | 6,112,666 | 6,433,815 | ||||||
Operating | SYGMA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 6,244,328 | 6,557,033 | 6,178,909 | ||||||||
Operating income | 27,780 | 24,318 | 23,299 | ||||||||
Depreciation and amortization | 35,473 | 36,367 | 34,890 | ||||||||
Capital expenditures | 36,396 | 45,132 | 50,722 | ||||||||
Assets | 624,720 | 662,290 | 624,720 | 662,290 | 625,653 | ||||||
Operating | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,088,366 | 1,009,463 | 974,473 | ||||||||
Operating income | 35,848 | 39,485 | 30,217 | ||||||||
Depreciation and amortization | 10,868 | 9,599 | 10,678 | ||||||||
Capital expenditures | 25,003 | 11,406 | 13,237 | ||||||||
Assets | 477,038 | 452,426 | 477,038 | 452,426 | 448,885 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | (1,051,737) | (1,000,428) | (1,139,047) | ||||||||
Depreciation and amortization | 126,403 | 113,335 | 346,772 | ||||||||
Capital expenditures | 54,460 | 211,251 | 199,141 | ||||||||
Assets | $ 3,738,180 | $ 3,803,668 | $ 3,738,180 | $ 3,803,668 | $ 3,572,759 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - GEOGRAPHIC AREA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 15,315,906 | $ 14,349,504 | $ 14,411,490 | $ 14,650,424 | $ 60,113,922 | $ 58,727,324 | $ 55,371,139 |
Long-lived assets | 4,501,705 | 4,521,660 | 4,501,705 | 4,521,660 | 4,377,302 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 48,257,385 | 46,812,297 | 44,395,765 | ||||||||
Long-lived assets | 3,361,629 | 3,448,164 | 3,361,629 | 3,448,164 | 3,252,980 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 4,660,030 | 4,661,615 | 4,346,894 | ||||||||
Long-lived assets | 334,177 | 318,410 | 334,177 | 318,410 | 329,090 | ||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 3,133,793 | 3,176,069 | 2,974,133 | ||||||||
Long-lived assets | 270,613 | 319,664 | 270,613 | 319,664 | 303,178 | ||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,581,663 | 1,625,407 | 1,426,973 | ||||||||
Long-lived assets | 329,923 | 240,507 | 329,923 | 240,507 | 284,611 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,481,051 | 2,451,936 | 2,227,374 | ||||||||
Long-lived assets | $ 205,363 | $ 194,915 | $ 205,363 | $ 194,915 | $ 207,443 |
SUPPLEMENTAL GUARANTOR INFORM_3
SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES - NARRATIVE (Details) $ in Billions | 12 Months Ended |
Jun. 29, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Carrying value of total debt | $ 7.8 |
Percentage ownership of subsidiary guarantors by parent | 100.00% |
SUPPLEMENTAL GUARANTOR INFORM_4
SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES - BALANCE SHEET (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | Jul. 02, 2016 |
Supplemental Guarantor Information [Line Items] | ||||
Current assets | $ 8,141,505 | $ 8,003,453 | ||
Intercompany receivables | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 4,501,705 | 4,521,660 | $ 4,377,302 | |
Other assets | 5,323,312 | 5,545,291 | ||
Total assets | 17,966,522 | 18,070,404 | 17,756,655 | |
Current liabilities | 6,103,183 | 6,588,746 | ||
Intercompany payables | 0 | 0 | ||
Long-term debt | 8,122,058 | 7,540,765 | ||
Other liabilities | 1,203,252 | 1,396,287 | ||
Noncontrolling interest | 35,426 | 37,649 | ||
Shareholders’ equity | 2,502,603 | 2,506,957 | $ 2,381,516 | $ 3,479,608 |
Total liabilities and shareholders’ equity | 17,966,522 | 18,070,404 | ||
Reportable Legal Entities | Sysco | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 121,993 | 157,994 | ||
Intercompany receivables | 6,162,303 | 6,621,438 | ||
Investment in subsidiaries | 4,680,530 | 4,896,004 | ||
Plant and equipment, net | 252,101 | 278,855 | ||
Other assets | 787,986 | 788,473 | ||
Total assets | 12,004,913 | 12,742,764 | ||
Current liabilities | 465,101 | 1,233,541 | ||
Intercompany payables | 686,116 | 882,487 | ||
Long-term debt | 7,668,314 | 7,470,334 | ||
Other liabilities | 682,779 | 649,445 | ||
Noncontrolling interest | 0 | 0 | ||
Shareholders’ equity | 2,502,603 | 2,506,957 | ||
Total liabilities and shareholders’ equity | 12,004,913 | 12,742,764 | ||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 4,195,543 | 4,018,444 | ||
Intercompany receivables | 30,469 | 270,748 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 2,162,668 | 2,181,576 | ||
Other assets | 718,600 | 611,004 | ||
Total assets | 7,107,280 | 7,081,772 | ||
Current liabilities | 1,018,650 | 886,305 | ||
Intercompany payables | 3,443,182 | 3,798,134 | ||
Long-term debt | 7,938 | 8,285 | ||
Other liabilities | 545,391 | 508,387 | ||
Noncontrolling interest | 0 | 0 | ||
Shareholders’ equity | 2,092,119 | 1,880,661 | ||
Total liabilities and shareholders’ equity | 7,107,280 | 7,081,772 | ||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 3,823,969 | 3,827,015 | ||
Intercompany receivables | 3,220,237 | 5,793,352 | ||
Investment in subsidiaries | 1,126,315 | 983,625 | ||
Plant and equipment, net | 2,086,936 | 2,061,229 | ||
Other assets | 4,372,725 | 4,593,537 | ||
Total assets | 14,630,182 | 17,258,758 | ||
Current liabilities | 4,619,432 | 4,468,900 | ||
Intercompany payables | 5,283,711 | 8,004,917 | ||
Long-term debt | 445,806 | 62,146 | ||
Other liabilities | 531,081 | 686,178 | ||
Noncontrolling interest | 35,426 | 37,649 | ||
Shareholders’ equity | 3,714,726 | 3,998,968 | ||
Total liabilities and shareholders’ equity | 14,630,182 | 17,258,758 | ||
Eliminations | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 0 | 0 | ||
Intercompany receivables | (9,413,009) | (12,685,538) | ||
Investment in subsidiaries | (5,806,845) | (5,879,629) | ||
Plant and equipment, net | 0 | 0 | ||
Other assets | (555,999) | (447,723) | ||
Total assets | (15,775,853) | (19,012,890) | ||
Current liabilities | 0 | 0 | ||
Intercompany payables | (9,413,009) | (12,685,538) | ||
Long-term debt | 0 | 0 | ||
Other liabilities | (555,999) | (447,723) | ||
Noncontrolling interest | 0 | 0 | ||
Shareholders’ equity | (5,806,845) | (5,879,629) | ||
Total liabilities and shareholders’ equity | $ (15,775,853) | $ (19,012,890) |
SUPPLEMENTAL GUARANTOR INFORM_5
SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES - COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Supplemental Guarantor Information [Line Items] | |||||||||||
Sales | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 15,315,906 | $ 14,349,504 | $ 14,411,490 | $ 14,650,424 | $ 60,113,922 | $ 58,727,324 | $ 55,371,139 |
Cost of sales | 12,495,670 | 11,903,776 | 11,993,995 | 12,311,494 | 12,399,197 | 11,673,876 | 11,712,104 | 11,856,756 | 48,704,935 | 47,641,933 | 44,813,632 |
Gross profit | 2,979,192 | 2,754,298 | 2,771,712 | 2,903,785 | 2,916,709 | 2,675,628 | 2,699,386 | 2,793,668 | 11,408,987 | 11,085,391 | 10,557,507 |
Operating expenses | 2,258,662 | 2,224,713 | 2,319,817 | 2,275,645 | 2,232,773 | 2,193,425 | 2,170,834 | 2,174,303 | 9,078,837 | 8,771,335 | 8,502,891 |
Operating income | 720,530 | 529,585 | 451,895 | 628,140 | 683,936 | 482,203 | 528,552 | 619,365 | 2,330,150 | 2,314,056 | 2,054,616 |
Interest expense (income) | 89,780 | 94,514 | 87,113 | 89,016 | 92,468 | 136,145 | 85,986 | 80,884 | 360,423 | 395,483 | 302,878 |
Other (income) expense, net | (51,558) | 4,120 | 10,197 | 1,132 | (1,688) | (18,826) | (9,162) | (7,975) | (36,109) | (37,651) | (14,492) |
Earnings before income taxes | 682,308 | 430,951 | 354,585 | 537,992 | 593,156 | 364,884 | 451,728 | 546,456 | 2,005,836 | 1,956,224 | 1,766,230 |
Income tax (benefit) provision | 146,542 | (9,132) | 87,205 | 106,950 | 144,228 | 34,799 | 167,615 | 178,816 | 331,565 | 525,458 | 623,727 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 448,928 | $ 330,085 | $ 284,113 | $ 367,640 | 1,674,271 | 1,430,766 | 1,142,503 |
Other comprehensive income (loss) | (190,460) | 89,913 | 95,381 | ||||||||
Comprehensive income | 1,483,811 | 1,520,679 | 1,237,884 | ||||||||
Reportable Legal Entities | Sysco | |||||||||||
Supplemental Guarantor Information [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses | 861,914 | 804,202 | 935,472 | ||||||||
Operating income | (861,914) | (804,202) | (935,472) | ||||||||
Interest expense (income) | 193,457 | 294,401 | 405,030 | ||||||||
Other (income) expense, net | (38,360) | (39,503) | (27,713) | ||||||||
Earnings before income taxes | (1,017,011) | (1,059,100) | (1,312,789) | ||||||||
Income tax (benefit) provision | (454,578) | (135,385) | (463,598) | ||||||||
Equity in earnings of subsidiaries | 2,236,704 | 2,354,481 | 1,991,694 | ||||||||
Net earnings | 1,674,271 | 1,430,766 | 1,142,503 | ||||||||
Other comprehensive income (loss) | (190,460) | 89,913 | 95,381 | ||||||||
Comprehensive income | 1,483,811 | 1,520,679 | 1,237,884 | ||||||||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | |||||||||||
Supplemental Guarantor Information [Line Items] | |||||||||||
Sales | 37,453,729 | 35,963,053 | 34,325,884 | ||||||||
Cost of sales | 30,282,665 | 29,102,278 | 27,690,469 | ||||||||
Gross profit | 7,171,064 | 6,860,775 | 6,635,415 | ||||||||
Operating expenses | 4,163,261 | 4,007,565 | 3,903,183 | ||||||||
Operating income | 3,007,803 | 2,853,210 | 2,732,232 | ||||||||
Interest expense (income) | (104,341) | (110,715) | (122,012) | ||||||||
Other (income) expense, net | (489) | 2,270 | 3,530 | ||||||||
Earnings before income taxes | 3,112,633 | 2,961,655 | 2,850,714 | ||||||||
Income tax (benefit) provision | 792,542 | 655,824 | 1,006,703 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | 2,320,091 | 2,305,831 | 1,844,011 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 2,320,091 | 2,305,831 | 1,844,011 | ||||||||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | |||||||||||
Supplemental Guarantor Information [Line Items] | |||||||||||
Sales | 25,002,655 | 24,784,842 | 22,862,131 | ||||||||
Cost of sales | 20,764,732 | 20,560,226 | 18,940,039 | ||||||||
Gross profit | 4,237,923 | 4,224,616 | 3,922,092 | ||||||||
Operating expenses | 4,053,662 | 3,959,568 | 3,664,236 | ||||||||
Operating income | 184,261 | 265,048 | 257,856 | ||||||||
Interest expense (income) | 271,307 | 211,797 | 19,860 | ||||||||
Other (income) expense, net | 2,740 | (418) | 9,691 | ||||||||
Earnings before income taxes | (89,786) | 53,669 | 228,305 | ||||||||
Income tax (benefit) provision | (6,399) | 5,019 | 80,622 | ||||||||
Equity in earnings of subsidiaries | 464,701 | 0 | 0 | ||||||||
Net earnings | 381,314 | 48,650 | 147,683 | ||||||||
Other comprehensive income (loss) | (119,126) | (22,987) | (9,317) | ||||||||
Comprehensive income | 262,188 | 25,663 | 138,366 | ||||||||
Eliminations | |||||||||||
Supplemental Guarantor Information [Line Items] | |||||||||||
Sales | (2,342,462) | (2,020,571) | (1,816,876) | ||||||||
Cost of sales | (2,342,462) | (2,020,571) | (1,816,876) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Operating expenses | 0 | 0 | 0 | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense (income) | 0 | 0 | 0 | ||||||||
Other (income) expense, net | 0 | 0 | 0 | ||||||||
Earnings before income taxes | 0 | 0 | 0 | ||||||||
Income tax (benefit) provision | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (2,701,405) | (2,354,481) | (1,991,694) | ||||||||
Net earnings | (2,701,405) | (2,354,481) | (1,991,694) | ||||||||
Other comprehensive income (loss) | 119,126 | 22,987 | 9,317 | ||||||||
Comprehensive income | $ (2,582,279) | $ (2,331,494) | $ (1,982,377) |
SUPPLEMENTAL GUARANTOR INFORM_6
SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Supplemental Guarantor Information [Line Items] | |||
Operating activities | $ 2,411,207 | $ 2,155,380 | $ 2,232,567 |
Investing activities | (742,855) | (910,413) | (3,577,674) |
Financing activities | (1,837,274) | (1,410,469) | (1,682,587) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (14,677) | 11,844 | (22,104) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | |||
Net decrease in cash, cash equivalents and restricted cash | (183,599) | (153,658) | (3,049,798) |
Cash, cash equivalents and restricted cash at beginning of period | 715,844 | 869,502 | 3,919,300 |
Cash, cash equivalents and restricted cash at end of period | 532,245 | 715,844 | 869,502 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net increase (decrease) in cash and cash equivalents | (3,049,798) | ||
Cash and cash equivalents at the beginning of period | 552,325 | 869,502 | 3,919,300 |
Cash and cash equivalents at the end of period | 513,460 | 552,325 | 869,502 |
Reportable Legal Entities | Sysco | |||
Supplemental Guarantor Information [Line Items] | |||
Operating activities | 1,683,417 | 1,051,976 | 1,523,519 |
Investing activities | 544,149 | 58,864 | (3,267,779) |
Financing activities | (2,226,842) | (1,193,272) | (1,525,995) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | |||
Net decrease in cash, cash equivalents and restricted cash | 724 | (82,432) | |
Cash, cash equivalents and restricted cash at beginning of period | 29,144 | 111,576 | |
Cash, cash equivalents and restricted cash at end of period | 29,868 | 29,144 | 111,576 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net increase (decrease) in cash and cash equivalents | (3,270,255) | ||
Cash and cash equivalents at the beginning of period | 106,157 | 3,376,412 | |
Cash and cash equivalents at the end of period | 106,157 | ||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | |||
Supplemental Guarantor Information [Line Items] | |||
Operating activities | 1,755,756 | 2,548,139 | 3,028,819 |
Investing activities | (263,029) | (439,178) | (261,330) |
Financing activities | (1,486,927) | (2,015,906) | (2,777,661) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | |||
Net decrease in cash, cash equivalents and restricted cash | 5,800 | 93,055 | |
Cash, cash equivalents and restricted cash at beginning of period | 111,843 | 18,788 | |
Cash, cash equivalents and restricted cash at end of period | 117,643 | 111,843 | 18,788 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net increase (decrease) in cash and cash equivalents | (10,172) | ||
Cash and cash equivalents at the beginning of period | 24,207 | 34,379 | |
Cash and cash equivalents at the end of period | 24,207 | ||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | |||
Supplemental Guarantor Information [Line Items] | |||
Operating activities | 1,092,034 | 799,062 | 658,229 |
Investing activities | (440,743) | (503,745) | (175,565) |
Financing activities | (826,737) | (471,442) | (229,931) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (14,677) | 11,844 | (22,104) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | |||
Net decrease in cash, cash equivalents and restricted cash | (190,123) | (164,281) | |
Cash, cash equivalents and restricted cash at beginning of period | 574,857 | 739,138 | |
Cash, cash equivalents and restricted cash at end of period | 384,734 | 574,857 | 739,138 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net increase (decrease) in cash and cash equivalents | 230,629 | ||
Cash and cash equivalents at the beginning of period | 739,138 | 508,509 | |
Cash and cash equivalents at the end of period | 739,138 | ||
Eliminations | |||
Supplemental Guarantor Information [Line Items] | |||
Operating activities | (2,120,000) | (2,243,797) | (2,978,000) |
Investing activities | (583,232) | (26,354) | 127,000 |
Financing activities | 2,703,232 | 2,270,151 | 2,851,000 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | |||
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | $ 0 | 0 | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | |||
Net increase (decrease) in cash and cash equivalents | 0 | ||
Cash and cash equivalents at the beginning of period | $ 0 | 0 | |
Cash and cash equivalents at the end of period | $ 0 |
QUARTERLY RESULTS (UNAUDITED)_2
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 15,315,906 | $ 14,349,504 | $ 14,411,490 | $ 14,650,424 | $ 60,113,922 | $ 58,727,324 | $ 55,371,139 |
Cost of sales | 12,495,670 | 11,903,776 | 11,993,995 | 12,311,494 | 12,399,197 | 11,673,876 | 11,712,104 | 11,856,756 | 48,704,935 | 47,641,933 | 44,813,632 |
Gross profit | 2,979,192 | 2,754,298 | 2,771,712 | 2,903,785 | 2,916,709 | 2,675,628 | 2,699,386 | 2,793,668 | 11,408,987 | 11,085,391 | 10,557,507 |
Operating expenses | 2,258,662 | 2,224,713 | 2,319,817 | 2,275,645 | 2,232,773 | 2,193,425 | 2,170,834 | 2,174,303 | 9,078,837 | 8,771,335 | 8,502,891 |
Operating income | 720,530 | 529,585 | 451,895 | 628,140 | 683,936 | 482,203 | 528,552 | 619,365 | 2,330,150 | 2,314,056 | 2,054,616 |
Interest expense | 89,780 | 94,514 | 87,113 | 89,016 | 92,468 | 136,145 | 85,986 | 80,884 | 360,423 | 395,483 | 302,878 |
Other (income) expense, net | (51,558) | 4,120 | 10,197 | 1,132 | (1,688) | (18,826) | (9,162) | (7,975) | (36,109) | (37,651) | (14,492) |
Earnings before income taxes | 682,308 | 430,951 | 354,585 | 537,992 | 593,156 | 364,884 | 451,728 | 546,456 | 2,005,836 | 1,956,224 | 1,766,230 |
Income taxes | 146,542 | (9,132) | 87,205 | 106,950 | 144,228 | 34,799 | 167,615 | 178,816 | 331,565 | 525,458 | 623,727 |
Net earnings | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 448,928 | $ 330,085 | $ 284,113 | $ 367,640 | $ 1,674,271 | $ 1,430,766 | $ 1,142,503 |
Per Share: | |||||||||||
Basic net earnings (in dollars per share) | $ 1.04 | $ 0.86 | $ 0.52 | $ 0.83 | $ 0.86 | $ 0.63 | $ 0.55 | $ 0.70 | $ 3.24 | $ 2.74 | $ 2.10 |
Diluted net earnings (in dollars per share) | 1.03 | 0.85 | 0.51 | 0.81 | 0.85 | 0.63 | 0.54 | 0.69 | 3.20 | 2.70 | 2.08 |
Dividends declared (in dollars per share) | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.33 | $ 1.53 | $ 1.41 | $ 1.30 |
Foreign tax credits | $ 95,100 | ||||||||||
Gain on sale of business | $ 66,300 | 66,309 | $ 0 | $ 0 | |||||||
Loss on extinguishment of debt | $ 53,100 | $ 0 | $ 53,104 | $ 0 | |||||||
Employer contribution | $ 380,000 |