Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 28, 2020 | Apr. 17, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 28, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6544 | |
Entity Registrant Name | Sysco Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1648137 | |
Entity Address, Address Line One | 1390 Enclave Parkway | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77077 | |
City Area Code | 281 | |
Local Phone Number | 584-1390 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 507,617,963 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000096021 | |
Current Fiscal Year End Date | --06-27 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of each class | Common stock, $1.00 Par Value | |
Trading Symbol | SYY | |
Security Exchange Name | NYSE | |
Senior Notes, 1.25% Due 2023 | ||
Document Information [Line Items] | ||
Title of each class | 1.25% Notes due June 2023 | |
Trading Symbol | SYY 23 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,240,807 | $ 513,460 |
Accounts and notes receivable, less allowances of $246,076 and $28,176 | 3,656,219 | 4,181,696 |
Inventories | 3,697,515 | 3,216,034 |
Prepaid expenses and other current assets | 234,857 | 210,582 |
Income tax receivable | 28,377 | 19,733 |
Total current assets | 9,857,775 | 8,141,505 |
Plant and equipment at cost, less accumulated depreciation | 4,604,618 | 4,501,705 |
Other long-term assets | ||
Goodwill | 3,862,725 | 3,896,226 |
Intangibles, less amortization | 802,593 | 857,301 |
Deferred income taxes | 168,496 | 80,760 |
Operating lease right-of-use assets, net | 620,556 | |
Other assets | 515,569 | 489,025 |
Total other long-term assets | 5,969,939 | 5,323,312 |
Total assets | 20,432,332 | 17,966,522 |
Current liabilities | ||
Notes payable | 4,314 | 3,957 |
Accounts payable | 3,969,004 | 4,314,620 |
Accrued expenses | 1,721,100 | 1,729,941 |
Accrued income taxes | 0 | 17,343 |
Current operating lease liabilities | 102,994 | |
Current maturities of long-term debt | 827,597 | 37,322 |
Total current liabilities | 6,625,009 | 6,103,183 |
Long-term liabilities | ||
Long-term debt | 10,023,250 | 8,122,058 |
Deferred income taxes | 128,848 | 172,232 |
Long-term operating lease liabilities | 543,127 | |
Other long-term liabilities | 1,051,655 | 1,031,020 |
Total long-term liabilities | 11,746,880 | 9,325,310 |
Noncontrolling interest | 31,553 | 35,426 |
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 | 1,528,893 | 1,457,419 |
Retained earnings | 11,407,033 | 11,229,679 |
Accumulated other comprehensive loss | (1,665,522) | (1,599,729) |
Treasury stock at cost, 257,976,491 and 252,297,926 shares | (10,006,689) | (9,349,941) |
Total shareholders’ equity | 2,028,890 | 2,502,603 |
Total liabilities and shareholders’ equity | $ 20,432,332 | $ 17,966,522 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 246,076 | $ 28,176 |
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) | 257,976,491 | 252,297,926 |
Consolidated Results of Operati
Consolidated Results of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales | $ 13,698,699 | $ 14,658,074 | $ 44,026,746 | $ 44,639,060 |
Cost of sales | 11,134,459 | 11,903,776 | 35,690,737 | 36,209,265 |
Gross profit | 2,564,240 | 2,754,298 | 8,336,009 | 8,429,795 |
Operating expenses | 2,503,966 | 2,224,713 | 7,054,924 | 6,820,175 |
Operating income | 60,274 | 529,585 | 1,281,085 | 1,609,620 |
Interest expense | 83,854 | 94,514 | 243,951 | 270,643 |
Other expense (income), net | 5,200 | 4,120 | 7,505 | 15,449 |
Earnings (loss) before income taxes | (28,780) | 430,951 | 1,029,629 | 1,323,528 |
Income taxes | (25,483) | (9,132) | 195,735 | 185,023 |
Net earnings (loss) | $ (3,297) | $ 440,083 | $ 833,894 | $ 1,138,505 |
Net earnings (loss): | ||||
Basic earnings (loss) per share (in dollars per share) | $ (0.01) | $ 0.86 | $ 1.63 | $ 2.20 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.01) | $ 0.85 | $ 1.62 | $ 2.17 |
Average shares outstanding (in shares) | 508,745,253 | 514,185,453 | 510,729,277 | 517,637,952 |
Diluted shares outstanding (in shares) | 512,657,657 | 519,821,311 | 515,632,815 | 524,487,510 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (3,297) | $ 440,083 | $ 833,894 | $ 1,138,505 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (151,143) | 37,471 | (122,347) | (88,989) |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,155 | 2,155 | 6,465 | 6,465 |
Change in net investment hedges | 57,069 | (9,466) | 45,590 | 25,591 |
Change in cash flow hedges | (16,751) | 1,546 | (22,289) | (10,246) |
Amortization of prior service cost | 1,428 | 1,600 | 4,284 | 4,800 |
Amortization of actuarial loss | 8,029 | 6,529 | 21,937 | 19,587 |
Actuarial loss | 0 | 0 | 0 | (32,511) |
Change in marketable securities | 20 | 1,103 | 567 | 1,103 |
Total other comprehensive (loss) income | (99,193) | 40,938 | (65,793) | (74,200) |
Comprehensive (loss) income | $ (102,490) | $ 481,021 | $ 768,101 | $ 1,064,305 |
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 (in shares) at Jun. 30, 2018 | 765,174,900 | 244,533,248 | ||||||||
Beginning balance, shareholders' equity at Jun. 30, 2018 | $ 2,506,957 | $ 765,175 | $ 1,383,619 | $ 10,348,628 | $ (1,409,269) | $ (8,581,196) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 1,138,505 | 1,138,505 | ||||||||
Foreign currency translation adjustment | (88,989) | (88,989) | ||||||||
Amortization of cash flow hedges, net of tax | 6,465 | |||||||||
Amortization of cash flow hedges, net of tax | $ 6,465 | $ 6,465 | ||||||||
Change in cash flow hedges, net of tax | (10,246) | |||||||||
Changes in derivatives, net of tax | (10,246) | $ 25,591 | (10,246) | $ 25,591 | ||||||
Change in net investment hedges, net of tax | 25,591 | |||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 24,387 | 24,387 | ||||||||
Pension funded status adjustment, net of tax | (32,511) | (32,511) | ||||||||
Change in marketable securities, net of tax | 1,103 | 1,103 | ||||||||
Dividends declared | (593,485) | (593,485) | ||||||||
Treasury stock purchases (in shares) | 12,850,437 | |||||||||
Treasury stock purchases | (868,527) | $ (868,527) | ||||||||
Increase in ownership interest in subsidiaries | (54,877) | (54,877) | ||||||||
Share-based compensation awards (in shares) | (6,054,223) | |||||||||
Share-based compensation awards | 307,524 | 96,337 | $ 211,187 | |||||||
Ending balance, shareholders' equity (in shares) at Mar. 30, 2019 | 765,174,900 | 251,329,462 | ||||||||
Ending balance, shareholders' equity at Mar. 30, 2019 | 2,361,897 | $ 765,175 | 1,425,079 | 10,893,648 | (1,483,469) | $ (9,238,536) | ||||
Beginning balance, shareholders' equity (in shares) at Dec. 29, 2018 | 765,174,900 | 251,658,719 | ||||||||
Beginning balance, shareholders' equity at Dec. 29, 2018 | 2,167,636 | $ 765,175 | 1,465,461 | 10,654,711 | (1,524,407) | $ (9,193,304) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 440,083 | 440,083 | ||||||||
Foreign currency translation adjustment | 37,471 | 37,471 | ||||||||
Amortization of cash flow hedges, net of tax | 2,155 | |||||||||
Amortization of cash flow hedges, net of tax | 2,155 | 2,155 | ||||||||
Change in cash flow hedges, net of tax | 1,546 | |||||||||
Changes in derivatives, net of tax | $ 1,546 | $ (9,466) | $ 1,546 | $ (9,466) | ||||||
Change in net investment hedges, net of tax | (9,466) | |||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 8,129 | 8,129 | ||||||||
Change in marketable securities, net of tax | 1,103 | 1,103 | ||||||||
Dividends declared | (201,146) | (201,146) | ||||||||
Treasury stock purchases (in shares) | 1,835,170 | |||||||||
Treasury stock purchases | (118,524) | $ (118,524) | ||||||||
Increase in ownership interest in subsidiaries | (54,877) | (54,877) | ||||||||
Share-based compensation awards (in shares) | (2,164,427) | |||||||||
Share-based compensation awards | 87,787 | 14,495 | $ 73,292 | |||||||
Ending balance, shareholders' equity (in shares) at Mar. 30, 2019 | 765,174,900 | 251,329,462 | ||||||||
Ending balance, shareholders' equity at Mar. 30, 2019 | 2,361,897 | $ 765,175 | 1,425,079 | 10,893,648 | (1,483,469) | $ (9,238,536) | ||||
Beginning balance, shareholders' equity (in shares) at Jun. 29, 2019 | 765,174,900 | 252,297,926 | ||||||||
Beginning balance, shareholders' equity at Jun. 29, 2019 | 2,502,603 | $ 765,175 | 1,457,419 | 11,229,679 | (1,599,729) | $ (9,349,941) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | 833,894 | 833,894 | ||||||||
Foreign currency translation adjustment | (122,347) | (122,347) | ||||||||
Amortization of cash flow hedges, net of tax | 6,465 | 6,465 | ||||||||
Change in cash flow hedges, net of tax | (22,289) | (22,289) | ||||||||
Change in net investment hedges, net of tax | 45,590 | 45,590 | ||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 26,221 | 26,221 | ||||||||
Change in marketable securities, net of tax | 567 | 567 | ||||||||
Dividends declared | (658,518) | (658,518) | ||||||||
Treasury stock purchases (in shares) | 11,030,287 | |||||||||
Treasury stock purchases | (843,252) | $ (843,252) | ||||||||
Share-based compensation awards (in shares) | (5,351,722) | |||||||||
Share-based compensation awards | 257,978 | 71,474 | $ 186,504 | |||||||
Ending balance, shareholders' equity (in shares) at Mar. 28, 2020 | 765,174,900 | 257,976,491 | ||||||||
Ending balance, shareholders' equity at Mar. 28, 2020 | 2,028,890 | $ 765,175 | 1,528,893 | 11,407,033 | (1,665,522) | $ (10,006,689) | ||||
Beginning balance, shareholders' equity (in shares) at Dec. 28, 2019 | 765,174,900 | 256,332,388 | ||||||||
Beginning balance, shareholders' equity at Dec. 28, 2019 | 2,527,526 | $ 765,175 | 1,526,132 | 11,639,727 | (1,566,329) | $ (9,837,179) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings (loss) | (3,297) | (3,297) | ||||||||
Foreign currency translation adjustment | (151,143) | (151,143) | ||||||||
Amortization of cash flow hedges, net of tax | 2,155 | 2,155 | ||||||||
Change in cash flow hedges, net of tax | (16,751) | (16,751) | ||||||||
Change in net investment hedges, net of tax | 57,069 | 57,069 | ||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 9,457 | 9,457 | ||||||||
Change in marketable securities, net of tax | 20 | 20 | ||||||||
Dividends declared | (229,397) | (229,397) | ||||||||
Treasury stock purchases (in shares) | 2,940,960 | |||||||||
Treasury stock purchases | (214,304) | $ (214,304) | ||||||||
Share-based compensation awards (in shares) | (1,296,857) | |||||||||
Share-based compensation awards | 47,555 | 2,761 | $ 44,794 | |||||||
Ending balance, shareholders' equity (in shares) at Mar. 28, 2020 | 765,174,900 | 257,976,491 | ||||||||
Ending balance, shareholders' equity at Mar. 28, 2020 | $ 2,028,890 | $ 765,175 | $ 1,528,893 | $ 11,407,033 | $ (1,665,522) | $ (10,006,689) |
Changes in Consolidated Share_2
Changes in Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.39 | $ 1.29 | $ 1.14 |
Consolidated Cash Flows (Unaudi
Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Cash flows from operating activities: | ||
Net earnings (loss) | $ 833,894 | $ 1,138,505 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Share-based compensation expense | 63,942 | 78,110 |
Depreciation and amortization | 558,588 | 576,596 |
Operating lease asset amortization | 83,749 | |
Amortization of debt issuance and other debt-related costs | 15,247 | 16,244 |
Goodwill Impairment | 68,725 | 0 |
Deferred income taxes | (145,133) | (98,206) |
Provision for losses on receivables | 213,769 | 43,791 |
Other non-cash items | 6,765 | (7,677) |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
Decrease (increase) in receivables | 342,557 | (317,627) |
(Increase) in inventories | (497,391) | (231,732) |
(Increase) in prepaid expenses and other current assets | (38,831) | (20,823) |
(Decrease) increase in accounts payable | (353,836) | 231,213 |
(Decrease) increase in accrued expenses | (28,406) | 62,518 |
(Decrease) in operating lease liabilities | (95,861) | |
(Decrease) in accrued income taxes | (25,987) | (41,813) |
Decrease (increase) in other assets | 23,263 | (14,819) |
Increase (decrease) in other long-term liabilities | 53,415 | (49,055) |
Net cash provided by operating activities | 1,078,469 | 1,365,225 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (603,865) | (382,905) |
Proceeds from sales of plant and equipment | 13,245 | 16,383 |
Acquisition of businesses, net of cash acquired | (142,780) | (97,530) |
Purchase of marketable securities | (11,424) | (115,807) |
Proceeds from sales of marketable securities | 17,465 | 0 |
Other investing activities | 67,371 | 0 |
Net cash used for investing activities | (659,988) | (579,859) |
Cash flows from financing activities: | ||
Bank and commercial paper borrowings, net | 20,886 | 200,000 |
Other debt borrowings | 2,682,278 | 389,681 |
Other debt repayments | (28,244) | (278,234) |
Proceeds from stock option exercises | 186,503 | 211,174 |
Treasury stock purchases | (844,699) | (866,714) |
Dividends paid | (628,056) | (575,059) |
Other financing activities | (45,990) | (20,663) |
Net cash provided by (used for) for financing activities | 1,342,678 | (939,815) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (8,857) | (11,619) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,752,302 | (166,068) |
Cash, cash equivalents and restricted cash at beginning of period | 532,245 | 715,844 |
Cash, cash equivalents and restricted cash at end of period | 2,284,547 | 549,776 |
Cash paid during the period for: | ||
Interest | 247,606 | 252,377 |
Income taxes | $ 358,622 | $ 379,728 |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Mar. 28, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, amounts related to cash flow hedging arrangements, certain amounts related to pension and other postretirement plans and changes in marketable securities. Comprehensive loss was $102.5 million for the third quarter of fiscal 2020 an d comprehensive income was $481.0 million for the third quarter of fiscal 2019. Comprehensive income was $768.1 million and $1.1 billion for the first 39 weeks of fiscal 2020 and fiscal 2019, respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Mar. 28, 2020 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 1,905 $ 477 $ 1,428 Amortization of actuarial loss, net Other expense, net 10,644 2,615 8,029 Total reclassification adjustments 12,549 3,092 9,457 Foreign currency translation: Foreign currency translation adjustment N/A (151,143) — (151,143) Marketable securities: Change in marketable securities (1) N/A 25 5 20 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (22,844) (6,093) (16,751) Change in net investment hedge (3) N/A 65,491 8,422 57,069 Total other comprehensive income (loss) before reclassification adjustments 42,647 2,329 40,318 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,874 719 2,155 Total other comprehensive (loss) income $ (93,048) $ 6,145 $ (99,193) (1) Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no si gnificant gains or losses realized in the third quarter of fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges, as described in Note 10, “Derivative Financial Instruments.” 13-Week Period Ended Mar. 30, 2019 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 2,133 $ 533 $ 1,600 Amortization of actuarial loss (gain), net Other expense, net 8,706 2,177 6,529 Total reclassification adjustments 10,839 2,710 8,129 Foreign currency translation: Other comprehensive income (loss) before Foreign currency translation adjustment N/A 37,471 — 37,471 Marketable Securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 2,032 486 1,546 Change in net investment hedges N/A (4,837) 4,629 (9,466) Total other comprehensive income (loss) before reclassification adjustments (2,805) 5,115 (7,920) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income $ 49,774 $ 8,836 $ 40,938 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 28, 2020 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 5,715 $ 1,431 $ 4,284 Amortization of actuarial loss, net Other expense, net 29,216 7,279 21,937 Total reclassification adjustments 34,931 8,710 26,221 Foreign currency translation: Other comprehensive income (loss) before reclassification adjustments: Foreign currency translation adjustment N/A (122,347) — (122,347) Marketable securities: Change in marketable securities (1) N/A 717 150 567 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (29,506) (7,217) (22,289) Change in net investment hedge (3) N/A 61,504 15,914 45,590 Total other comprehensive income (loss) before reclassification adjustments 31,998 8,697 23,301 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,622 2,157 6,465 Total other comprehensive (loss) income $ (46,079) $ 19,714 $ (65,793) (1) Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges, as described in Note 10, “Derivative Financial Instruments.” 39-Week Period Ended Mar. 30, 2019 Location of 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 $ (36,891) $ (4,380) $ (32,511) Reclassification adjustments: Amortization of prior service cost Other expense, net 6,399 1,599 4,800 Amortization of actuarial loss (gain), net Other expense, net 26,118 6,531 19,587 Total reclassification adjustments 32,517 8,130 24,387 Foreign currency translation: Foreign currency translation adjustment N/A (88,989) — (88,989) Marketable Securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (13,125) (2,879) (10,246) Change in net investment hedges N/A 41,634 16,043 25,591 Total other comprehensive income (loss) before reclassification adjustments 28,509 13,164 15,345 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,619 2,154 6,465 Total other comprehensive (loss) income $ (54,839) $ 19,361 $ (74,200) (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 for the periods presented: 39-Week Period Ended Mar. 28, 2020 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jun. 29, 2019 $ (1,217,617) $ (290,169) $ (94,770) $ 2,827 $ (1,599,729) Equity adjustment from foreign currency translation — (122,347) — — (122,347) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 45,590 — 45,590 Change in cash flow hedge — — (22,289) — (22,289) Amortization of unrecognized prior service cost 4,284 — — — 4,284 Amortization of unrecognized net actuarial losses 21,937 — — — 21,937 Change in marketable securities — — — 567 567 Balance as of Mar. 28, 2020 $ (1,191,396) $ (412,516) $ (65,004) $ 3,394 $ (1,665,522) 39-Week Period Ended Mar. 30, 2019 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jun. 30, 2018 $ (1,095,059) $ (171,043) $ (143,167) — $ (1,409,269) Equity adjustment from foreign currency translation — (88,989) — — (88,989) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 25,591 — 25,591 Change in cash flow hedges — — (10,246) — (10,246) Net actuarial loss (32,511) — — — (32,511) Amortization of unrecognized prior service cost 4,800 — — — 4,800 Amortization of unrecognized net actuarial losses 19,587 — — — 19,587 Change in marketable securities — — — 1,103 1,103 Balance as of Mar. 30, 2019 $ (1,103,183) $ (260,032) $ (121,357) $ 1,103 $ (1,483,469) |
Supplemental Guarantor Informat
Supplemental Guarantor Information - Subsidiary Guarantees | 9 Months Ended |
Mar. 28, 2020 | |
Guarantees [Abstract] | |
Supplemental Guarantor Information - Subsidiary Guarantees | SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES On January 19, 2011, the wholly owned U.S. Broadline subsidiaries of Sysco Corporation 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. and borrowings under the company’s $2.0 billion long-term revolving credit facility have also been guaranteed by these subsidiaries. As of March 28, 2020, Sysco had a total of $10.2 billion in senior notes, debentures and borrowings under the long-term revolving credit facility that were 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 Mar. 28, 2020 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 1,914,935 $ 4,242,407 $ 3,700,433 $ — $ 9,857,775 Intercompany receivables 7,642,333 46,037 4,628,264 (12,316,634) — Investment in subsidiaries 6,091,917 — 1,332,048 (7,423,965) — Plant and equipment, net 245,678 2,241,821 2,117,119 — 4,604,618 Other assets 859,731 733,274 4,930,759 (553,825) 5,969,939 Total assets $ 16,754,594 $ 7,263,539 $ 16,708,623 $ (20,294,424) $ 20,432,332 Current liabilities $ 1,255,999 $ 989,820 $ 4,379,190 $ — $ 6,625,009 Intercompany payables 3,179,796 2,627,223 6,509,615 (12,316,634) — Long-term debt 9,593,045 9,099 421,106 — 10,023,250 Other liabilities 696,864 536,503 1,044,088 (553,825) 1,723,630 Noncontrolling interest — — 31,553 — 31,553 Shareholders’ equity 2,028,890 3,100,894 4,323,071 (7,423,965) 2,028,890 Total liabilities and shareholders’ equity $ 16,754,594 $ 7,263,539 $ 16,708,623 $ (20,294,424) $ 20,432,332 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 Statement of Comprehensive Income For the 13-Week Period Ended Mar. 28, 2020 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 8,722,745 $ 5,493,011 $ (517,057) $ 13,698,699 Cost of sales — 7,070,961 4,580,555 (517,057) 11,134,459 Gross profit — 1,651,784 912,456 — 2,564,240 Operating expenses 295,242 1,141,038 1,067,686 — 2,503,966 Operating income (loss) (295,242) 510,746 (155,230) — 60,274 Interest expense (income) (1) 120,302 (28,747) (7,701) — 83,854 Other expense (income), net 2,513 (84) 2,771 — 5,200 Earnings (losses) before income taxes (418,057) 539,577 (150,300) — (28,780) Income tax (benefit) provision (49,263) 137,143 (113,363) — (25,483) Equity in earnings of subsidiaries 365,497 — 87,631 (453,128) — Net earnings (3,297) 402,434 50,694 (453,128) (3,297) Other comprehensive income (loss) (99,193) — (151,143) 151,143 (99,193) Comprehensive income $ (102,490) $ 402,434 $ (100,449) $ (301,985) $ (102,490) (1) Interest expense (income) includes $28.7 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 28, 2020. 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 13-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,135,852 $ 6,098,725 $ (576,503) $ 14,658,074 Cost of sales — 7,392,718 5,087,561 (576,503) 11,903,776 Gross profit — 1,743,134 1,011,164 — 2,754,298 Operating expenses 206,795 1,025,383 992,535 — 2,224,713 Operating income (loss) (206,795) 717,751 18,629 — 529,585 Interest expense (income) (1) 55,925 (43,056) 81,645 — 94,514 Other expense (income), net (1,730) (80) 5,930 — 4,120 Earnings (losses) before income taxes (260,990) 760,887 (68,946) — 430,951 Income tax (benefit) provision (183,601) 188,703 (14,234) — (9,132) Equity in earnings of subsidiaries 517,472 — 107,865 (625,337) — Net earnings 440,083 572,184 53,153 (625,337) 440,083 Other comprehensive income (loss) 40,938 — 37,471 (37,471) 40,938 Comprehensive income $ 481,021 $ 572,184 $ 90,624 $ (662,808) $ 481,021 (1) Interest expense (income) includes $43.1 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 30, 2019. 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 39-Week Period Ended Mar. 28, 2020 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 28,022,282 $ 17,671,368 $ (1,666,904) $ 44,026,746 Cost of sales — 22,694,007 14,663,634 (1,666,904) 35,690,737 Gross profit — 5,328,275 3,007,734 — 8,336,009 Operating expenses 701,003 3,269,879 3,084,042 — 7,054,924 Operating income (loss) (701,003) 2,058,396 (76,308) — 1,281,085 Interest expense (income) (1) 338,459 (73,268) (21,240) — 243,951 Other expense (income), net 8,954 (434) (1,015) — 7,505 Earnings (losses) before income taxes (1,048,416) 2,132,098 (54,053) — 1,029,629 Income tax (benefit) provision (254,669) 538,598 (88,194) — 195,735 Equity in earnings of subsidiaries 1,627,641 — 330,332 (1,957,973) — Net earnings 833,894 1,593,500 364,473 (1,957,973) 833,894 Other comprehensive income (loss) (65,793) — (122,347) 122,347 (65,793) Comprehensive income $ 768,101 $ 1,593,500 $ 242,126 $ (1,835,626) $ 768,101 (1) Interest expense (income) includes $73.3 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 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 27,716,772 $ 18,662,548 $ (1,740,260) $ 44,639,060 Cost of sales — 22,434,604 15,514,921 (1,740,260) 36,209,265 Gross profit — 5,282,168 3,147,627 — 8,429,795 Operating expenses 659,697 3,113,409 3,047,069 — 6,820,175 Operating income (loss) (659,697) 2,168,759 100,558 — 1,609,620 Interest expense (income) (1) 160,830 (73,515) 183,328 — 270,643 Other expense (income), net 8,642 (220) 7,027 — 15,449 Earnings (losses) before income taxes (829,169) 2,242,494 (89,797) — 1,323,528 Income tax (benefit) provision (350,246) 556,107 (20,838) — 185,023 Equity in earnings of subsidiaries 1,617,428 — 330,236 (1,947,664) — Net earnings 1,138,505 1,686,387 261,277 (1,947,664) 1,138,505 Other comprehensive income (loss) (74,200) — (88,989) 88,989 (74,200) Comprehensive income $ 1,064,305 $ 1,686,387 $ 172,288 $ (1,858,675) $ 1,064,305 (1) Interest expense (income) includes $73.5 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 39-Week Period Ended Mar. 28, 2020 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 517,337 $ 256,752 $ 304,380 $ — $ 1,078,469 Investing activities (122,409) (281,927) (357,681) 102,029 (659,988) Financing activities 1,378,241 (6,816) 73,282 (102,029) 1,342,678 Effect of exchange rates on cash — — (8,857) — (8,857) Net increase (decrease) in cash, cash equivalents and restricted cash 1,773,169 (31,991) 11,124 — 1,752,302 Cash, cash equivalents and restricted cash at the beginning of period 29,868 117,643 384,734 — 532,245 Cash, cash equivalents and restricted cash at the end of period $ 1,803,037 $ 85,652 $ 395,858 $ — $ 2,284,547 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 976,731 $ 132,990 $ 255,504 $ — $ 1,365,225 Investing activities 349,816 (133,190) (293,088) (503,397) (579,859) Financing activities (1,338,077) (6,850) (98,285) 503,397 (939,815) Effect of exchange rates on cash — — (11,619) — (11,619) Net increase (decrease) in cash, cash equivalents and restricted cash (11,530) (7,050) (147,488) — (166,068) 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 $ 17,614 $ 104,793 $ 427,369 $ — $ 549,776 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of components of other comprehensive (loss) income and related tax effects | A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Mar. 28, 2020 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 1,905 $ 477 $ 1,428 Amortization of actuarial loss, net Other expense, net 10,644 2,615 8,029 Total reclassification adjustments 12,549 3,092 9,457 Foreign currency translation: Foreign currency translation adjustment N/A (151,143) — (151,143) Marketable securities: Change in marketable securities (1) N/A 25 5 20 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (22,844) (6,093) (16,751) Change in net investment hedge (3) N/A 65,491 8,422 57,069 Total other comprehensive income (loss) before reclassification adjustments 42,647 2,329 40,318 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,874 719 2,155 Total other comprehensive (loss) income $ (93,048) $ 6,145 $ (99,193) (1) Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no si gnificant gains or losses realized in the third quarter of fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges, as described in Note 10, “Derivative Financial Instruments.” 13-Week Period Ended Mar. 30, 2019 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 2,133 $ 533 $ 1,600 Amortization of actuarial loss (gain), net Other expense, net 8,706 2,177 6,529 Total reclassification adjustments 10,839 2,710 8,129 Foreign currency translation: Other comprehensive income (loss) before Foreign currency translation adjustment N/A 37,471 — 37,471 Marketable Securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 2,032 486 1,546 Change in net investment hedges N/A (4,837) 4,629 (9,466) Total other comprehensive income (loss) before reclassification adjustments (2,805) 5,115 (7,920) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income $ 49,774 $ 8,836 $ 40,938 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 28, 2020 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 5,715 $ 1,431 $ 4,284 Amortization of actuarial loss, net Other expense, net 29,216 7,279 21,937 Total reclassification adjustments 34,931 8,710 26,221 Foreign currency translation: Other comprehensive income (loss) before reclassification adjustments: Foreign currency translation adjustment N/A (122,347) — (122,347) Marketable securities: Change in marketable securities (1) N/A 717 150 567 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (29,506) (7,217) (22,289) Change in net investment hedge (3) N/A 61,504 15,914 45,590 Total other comprehensive income (loss) before reclassification adjustments 31,998 8,697 23,301 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,622 2,157 6,465 Total other comprehensive (loss) income $ (46,079) $ 19,714 $ (65,793) (1) Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges, as described in Note 10, “Derivative Financial Instruments.” 39-Week Period Ended Mar. 30, 2019 Location of 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 $ (36,891) $ (4,380) $ (32,511) Reclassification adjustments: Amortization of prior service cost Other expense, net 6,399 1,599 4,800 Amortization of actuarial loss (gain), net Other expense, net 26,118 6,531 19,587 Total reclassification adjustments 32,517 8,130 24,387 Foreign currency translation: Foreign currency translation adjustment N/A (88,989) — (88,989) Marketable Securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (13,125) (2,879) (10,246) Change in net investment hedges N/A 41,634 16,043 25,591 Total other comprehensive income (loss) before reclassification adjustments 28,509 13,164 15,345 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,619 2,154 6,465 Total other comprehensive (loss) income $ (54,839) $ 19,361 $ (74,200) (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 for the periods presented: 39-Week Period Ended Mar. 28, 2020 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jun. 29, 2019 $ (1,217,617) $ (290,169) $ (94,770) $ 2,827 $ (1,599,729) Equity adjustment from foreign currency translation — (122,347) — — (122,347) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 45,590 — 45,590 Change in cash flow hedge — — (22,289) — (22,289) Amortization of unrecognized prior service cost 4,284 — — — 4,284 Amortization of unrecognized net actuarial losses 21,937 — — — 21,937 Change in marketable securities — — — 567 567 Balance as of Mar. 28, 2020 $ (1,191,396) $ (412,516) $ (65,004) $ 3,394 $ (1,665,522) 39-Week Period Ended Mar. 30, 2019 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jun. 30, 2018 $ (1,095,059) $ (171,043) $ (143,167) — $ (1,409,269) Equity adjustment from foreign currency translation — (88,989) — — (88,989) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 25,591 — 25,591 Change in cash flow hedges — — (10,246) — (10,246) Net actuarial loss (32,511) — — — (32,511) Amortization of unrecognized prior service cost 4,800 — — — 4,800 Amortization of unrecognized net actuarial losses 19,587 — — — 19,587 Change in marketable securities — — — 1,103 1,103 Balance as of Mar. 30, 2019 $ (1,103,183) $ (260,032) $ (121,357) $ 1,103 $ (1,483,469) |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information - Subsidiary Guarantees (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Guarantees [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 Mar. 28, 2020 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 1,914,935 $ 4,242,407 $ 3,700,433 $ — $ 9,857,775 Intercompany receivables 7,642,333 46,037 4,628,264 (12,316,634) — Investment in subsidiaries 6,091,917 — 1,332,048 (7,423,965) — Plant and equipment, net 245,678 2,241,821 2,117,119 — 4,604,618 Other assets 859,731 733,274 4,930,759 (553,825) 5,969,939 Total assets $ 16,754,594 $ 7,263,539 $ 16,708,623 $ (20,294,424) $ 20,432,332 Current liabilities $ 1,255,999 $ 989,820 $ 4,379,190 $ — $ 6,625,009 Intercompany payables 3,179,796 2,627,223 6,509,615 (12,316,634) — Long-term debt 9,593,045 9,099 421,106 — 10,023,250 Other liabilities 696,864 536,503 1,044,088 (553,825) 1,723,630 Noncontrolling interest — — 31,553 — 31,553 Shareholders’ equity 2,028,890 3,100,894 4,323,071 (7,423,965) 2,028,890 Total liabilities and shareholders’ equity $ 16,754,594 $ 7,263,539 $ 16,708,623 $ (20,294,424) $ 20,432,332 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 consolidating statement of comprehensive income table | Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Mar. 28, 2020 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 8,722,745 $ 5,493,011 $ (517,057) $ 13,698,699 Cost of sales — 7,070,961 4,580,555 (517,057) 11,134,459 Gross profit — 1,651,784 912,456 — 2,564,240 Operating expenses 295,242 1,141,038 1,067,686 — 2,503,966 Operating income (loss) (295,242) 510,746 (155,230) — 60,274 Interest expense (income) (1) 120,302 (28,747) (7,701) — 83,854 Other expense (income), net 2,513 (84) 2,771 — 5,200 Earnings (losses) before income taxes (418,057) 539,577 (150,300) — (28,780) Income tax (benefit) provision (49,263) 137,143 (113,363) — (25,483) Equity in earnings of subsidiaries 365,497 — 87,631 (453,128) — Net earnings (3,297) 402,434 50,694 (453,128) (3,297) Other comprehensive income (loss) (99,193) — (151,143) 151,143 (99,193) Comprehensive income $ (102,490) $ 402,434 $ (100,449) $ (301,985) $ (102,490) (1) Interest expense (income) includes $28.7 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 28, 2020. 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 13-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,135,852 $ 6,098,725 $ (576,503) $ 14,658,074 Cost of sales — 7,392,718 5,087,561 (576,503) 11,903,776 Gross profit — 1,743,134 1,011,164 — 2,754,298 Operating expenses 206,795 1,025,383 992,535 — 2,224,713 Operating income (loss) (206,795) 717,751 18,629 — 529,585 Interest expense (income) (1) 55,925 (43,056) 81,645 — 94,514 Other expense (income), net (1,730) (80) 5,930 — 4,120 Earnings (losses) before income taxes (260,990) 760,887 (68,946) — 430,951 Income tax (benefit) provision (183,601) 188,703 (14,234) — (9,132) Equity in earnings of subsidiaries 517,472 — 107,865 (625,337) — Net earnings 440,083 572,184 53,153 (625,337) 440,083 Other comprehensive income (loss) 40,938 — 37,471 (37,471) 40,938 Comprehensive income $ 481,021 $ 572,184 $ 90,624 $ (662,808) $ 481,021 (1) Interest expense (income) includes $43.1 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 30, 2019. 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 39-Week Period Ended Mar. 28, 2020 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 28,022,282 $ 17,671,368 $ (1,666,904) $ 44,026,746 Cost of sales — 22,694,007 14,663,634 (1,666,904) 35,690,737 Gross profit — 5,328,275 3,007,734 — 8,336,009 Operating expenses 701,003 3,269,879 3,084,042 — 7,054,924 Operating income (loss) (701,003) 2,058,396 (76,308) — 1,281,085 Interest expense (income) (1) 338,459 (73,268) (21,240) — 243,951 Other expense (income), net 8,954 (434) (1,015) — 7,505 Earnings (losses) before income taxes (1,048,416) 2,132,098 (54,053) — 1,029,629 Income tax (benefit) provision (254,669) 538,598 (88,194) — 195,735 Equity in earnings of subsidiaries 1,627,641 — 330,332 (1,957,973) — Net earnings 833,894 1,593,500 364,473 (1,957,973) 833,894 Other comprehensive income (loss) (65,793) — (122,347) 122,347 (65,793) Comprehensive income $ 768,101 $ 1,593,500 $ 242,126 $ (1,835,626) $ 768,101 (1) Interest expense (income) includes $73.3 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 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 27,716,772 $ 18,662,548 $ (1,740,260) $ 44,639,060 Cost of sales — 22,434,604 15,514,921 (1,740,260) 36,209,265 Gross profit — 5,282,168 3,147,627 — 8,429,795 Operating expenses 659,697 3,113,409 3,047,069 — 6,820,175 Operating income (loss) (659,697) 2,168,759 100,558 — 1,609,620 Interest expense (income) (1) 160,830 (73,515) 183,328 — 270,643 Other expense (income), net 8,642 (220) 7,027 — 15,449 Earnings (losses) before income taxes (829,169) 2,242,494 (89,797) — 1,323,528 Income tax (benefit) provision (350,246) 556,107 (20,838) — 185,023 Equity in earnings of subsidiaries 1,617,428 — 330,236 (1,947,664) — Net earnings 1,138,505 1,686,387 261,277 (1,947,664) 1,138,505 Other comprehensive income (loss) (74,200) — (88,989) 88,989 (74,200) Comprehensive income $ 1,064,305 $ 1,686,387 $ 172,288 $ (1,858,675) $ 1,064,305 (1) Interest expense (income) includes $73.5 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 39-Week Period Ended Mar. 28, 2020 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 517,337 $ 256,752 $ 304,380 $ — $ 1,078,469 Investing activities (122,409) (281,927) (357,681) 102,029 (659,988) Financing activities 1,378,241 (6,816) 73,282 (102,029) 1,342,678 Effect of exchange rates on cash — — (8,857) — (8,857) Net increase (decrease) in cash, cash equivalents and restricted cash 1,773,169 (31,991) 11,124 — 1,752,302 Cash, cash equivalents and restricted cash at the beginning of period 29,868 117,643 384,734 — 532,245 Cash, cash equivalents and restricted cash at the end of period $ 1,803,037 $ 85,652 $ 395,858 $ — $ 2,284,547 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 976,731 $ 132,990 $ 255,504 $ — $ 1,365,225 Investing activities 349,816 (133,190) (293,088) (503,397) (579,859) Financing activities (1,338,077) (6,850) (98,285) 503,397 (939,815) Effect of exchange rates on cash — — (11,619) — (11,619) Net increase (decrease) in cash, cash equivalents and restricted cash (11,530) (7,050) (147,488) — (166,068) 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 $ 17,614 $ 104,793 $ 427,369 $ — $ 549,776 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. |
Other Comprehensive Income - Co
Other Comprehensive Income - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Comprehensive income | $ (102,490) | $ 481,021 | $ 768,101 | $ 1,064,305 |
Before Tax Amount | ||||
Total other comprehensive (loss) income | (93,048) | 49,774 | (46,079) | (54,839) |
Tax | ||||
Total other comprehensive (loss) income | 6,145 | 8,836 | 19,714 | 19,361 |
Net of Tax Amount | ||||
Total other comprehensive (loss) income | (99,193) | 40,938 | (65,793) | (74,200) |
Pension and other postretirement benefit plans: | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 12,549 | 10,839 | 34,931 | 32,517 |
Tax | ||||
Amortization of prior service cost | 3,092 | 2,710 | 8,710 | 8,130 |
Net of Tax Amount | ||||
Amortization of prior service cost | 9,457 | 8,129 | 26,221 | 24,387 |
Amortization of prior service cost | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 4,284 | 4,800 | ||
Amortization of prior service cost | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 1,905 | 2,133 | 5,715 | 6,399 |
Tax | ||||
Amortization of prior service cost | 477 | 533 | 1,431 | 1,599 |
Net of Tax Amount | ||||
Amortization of prior service cost | 1,428 | 1,600 | 4,284 | 4,800 |
Amortization of actuarial loss (gain), net | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (36,891) | |||
Tax | ||||
Foreign currency translation adjustment | (4,380) | |||
Net of Tax Amount | ||||
Amortization of prior service cost | 21,937 | 19,587 | ||
Foreign currency translation adjustment | (32,511) | |||
Amortization of actuarial loss (gain), net | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 10,644 | 8,706 | 29,216 | 26,118 |
Tax | ||||
Amortization of prior service cost | 2,615 | 2,177 | 7,279 | 6,531 |
Net of Tax Amount | ||||
Amortization of prior service cost | 8,029 | 6,529 | 21,937 | 19,587 |
Foreign currency translation: | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (151,143) | 37,471 | (122,347) | (88,989) |
Tax | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Foreign currency translation adjustment | (151,143) | 37,471 | (122,347) | (88,989) |
Change in marketable securities | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 25 | 1,396 | 717 | 1,396 |
Tax | ||||
Foreign currency translation adjustment | 5 | 293 | 150 | 293 |
Net of Tax Amount | ||||
Foreign currency translation adjustment | 20 | 1,103 | 567 | 1,103 |
Hedging, net of tax | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 42,647 | (2,805) | 31,998 | 28,509 |
Tax | ||||
Foreign currency translation adjustment | 2,329 | 5,115 | 8,697 | 13,164 |
Net of Tax Amount | ||||
Foreign currency translation adjustment | 40,318 | (7,920) | 23,301 | 15,345 |
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 6,465 | |||
Foreign currency translation adjustment | (22,289) | |||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (22,844) | (29,506) | ||
Tax | ||||
Foreign currency translation adjustment | (6,093) | (7,217) | ||
Net of Tax Amount | ||||
Foreign currency translation adjustment | (16,751) | (22,289) | ||
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,874 | 8,622 | ||
Tax | ||||
Amortization of prior service cost | 719 | 2,157 | ||
Net of Tax Amount | ||||
Amortization of prior service cost | 2,155 | 6,465 | ||
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 6,465 | |||
Foreign currency translation adjustment | (10,246) | |||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 2,032 | (13,125) | ||
Tax | ||||
Foreign currency translation adjustment | 486 | (2,879) | ||
Net of Tax Amount | ||||
Foreign currency translation adjustment | 1,546 | (10,246) | ||
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,873 | 8,619 | ||
Tax | ||||
Amortization of prior service cost | 718 | 2,154 | ||
Net of Tax Amount | ||||
Amortization of prior service cost | 2,155 | 6,465 | ||
Change in net investment hedge | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 65,491 | (4,837) | 61,504 | 41,634 |
Tax | ||||
Foreign currency translation adjustment | 8,422 | 4,629 | 15,914 | 16,043 |
Net of Tax Amount | ||||
Foreign currency translation adjustment | $ 57,069 | $ (9,466) | $ 45,590 | $ 25,591 |
Other Comprehensive Income - Ch
Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | $ 2,527,526 | $ 2,167,636 | $ 2,502,603 | $ 2,506,957 |
Ending balance, shareholders' equity | 2,028,890 | 2,361,897 | 2,028,890 | 2,361,897 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (1,566,329) | (1,524,407) | (1,599,729) | (1,409,269) |
Ending balance, shareholders' equity | (1,665,522) | (1,483,469) | (1,665,522) | (1,483,469) |
Pension and Other Postretirement Benefit Plans, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (1,217,617) | (1,095,059) | ||
Ending balance, shareholders' equity | (1,191,396) | (1,103,183) | (1,191,396) | (1,103,183) |
Net actuarial loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (32,511) | |||
Amortization of prior service cost | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 4,284 | 4,800 | ||
Amortization of unrecognized net actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (32,511) | |||
Reclassification adjustment, net of tax | 21,937 | 19,587 | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (290,169) | (171,043) | ||
OCI before reclassifications, net of tax | (151,143) | 37,471 | (122,347) | (88,989) |
Ending balance, shareholders' equity | (412,516) | (260,032) | (412,516) | (260,032) |
Hedging, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (94,770) | (143,167) | ||
OCI before reclassifications, net of tax | 40,318 | (7,920) | 23,301 | 15,345 |
Ending balance, shareholders' equity | (65,004) | (121,357) | (65,004) | (121,357) |
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (22,289) | |||
Reclassification adjustment, net of tax | 6,465 | |||
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (10,246) | |||
Reclassification adjustment, net of tax | 6,465 | |||
Change in net investment hedge | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 57,069 | (9,466) | 45,590 | 25,591 |
Change in marketable securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | 2,827 | |||
OCI before reclassifications, net of tax | 20 | 1,103 | 567 | 1,103 |
Ending balance, shareholders' equity | $ 3,394 | $ 1,103 | $ 3,394 | $ 1,103 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Subsidiary Guarantees - Narrative (Details) $ in Billions | 9 Months Ended |
Mar. 28, 2020USD ($) | |
Guarantees [Abstract] | |
Senior notes and debentures covered by guarantees | $ 10.2 |
Percentage ownership of subsidiary guarantors by parent | 100.00% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Subsidiary Guarantees - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 |
Supplemental Guarantor Information [Line Items] | ||
Current assets | $ 9,857,775 | $ 8,141,505 |
Intercompany receivables | 0 | 0 |
Investment in subsidiaries | 0 | 0 |
Plant and equipment, net | 4,604,618 | 4,501,705 |
Other assets | 5,969,939 | 5,323,312 |
Total assets | 20,432,332 | 17,966,522 |
Current liabilities | 6,625,009 | 6,103,183 |
Intercompany payables | 0 | 0 |
Long-term debt | 10,023,250 | 8,122,058 |
Other liabilities | 1,723,630 | 1,203,252 |
Noncontrolling interest | 31,553 | 35,426 |
Shareholders’ equity | 2,028,890 | 2,502,603 |
Total liabilities and shareholders’ equity | 20,432,332 | 17,966,522 |
Reportable Legal Entities | Sysco | ||
Supplemental Guarantor Information [Line Items] | ||
Current assets | 1,914,935 | 121,993 |
Intercompany receivables | 7,642,333 | 6,162,303 |
Investment in subsidiaries | 6,091,917 | 4,680,530 |
Plant and equipment, net | 245,678 | 252,101 |
Other assets | 859,731 | 787,986 |
Total assets | 16,754,594 | 12,004,913 |
Current liabilities | 1,255,999 | 465,101 |
Intercompany payables | 3,179,796 | 686,116 |
Long-term debt | 9,593,045 | 7,668,314 |
Other liabilities | 696,864 | 682,779 |
Noncontrolling interest | 0 | 0 |
Shareholders’ equity | 2,028,890 | 2,502,603 |
Total liabilities and shareholders’ equity | 16,754,594 | 12,004,913 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Current assets | 4,242,407 | 4,195,543 |
Intercompany receivables | 46,037 | 30,469 |
Investment in subsidiaries | 0 | 0 |
Plant and equipment, net | 2,241,821 | 2,162,668 |
Other assets | 733,274 | 718,600 |
Total assets | 7,263,539 | 7,107,280 |
Current liabilities | 989,820 | 1,018,650 |
Intercompany payables | 2,627,223 | 3,443,182 |
Long-term debt | 9,099 | 7,938 |
Other liabilities | 536,503 | 545,391 |
Noncontrolling interest | 0 | 0 |
Shareholders’ equity | 3,100,894 | 2,092,119 |
Total liabilities and shareholders’ equity | 7,263,539 | 7,107,280 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Current assets | 3,700,433 | 3,823,969 |
Intercompany receivables | 4,628,264 | 3,220,237 |
Investment in subsidiaries | 1,332,048 | 1,126,315 |
Plant and equipment, net | 2,117,119 | 2,086,936 |
Other assets | 4,930,759 | 4,372,725 |
Total assets | 16,708,623 | 14,630,182 |
Current liabilities | 4,379,190 | 4,619,432 |
Intercompany payables | 6,509,615 | 5,283,711 |
Long-term debt | 421,106 | 445,806 |
Other liabilities | 1,044,088 | 531,081 |
Noncontrolling interest | 31,553 | 35,426 |
Shareholders’ equity | 4,323,071 | 3,714,726 |
Total liabilities and shareholders’ equity | 16,708,623 | 14,630,182 |
Eliminations | ||
Supplemental Guarantor Information [Line Items] | ||
Current assets | 0 | 0 |
Intercompany receivables | (12,316,634) | (9,413,009) |
Investment in subsidiaries | (7,423,965) | (5,806,845) |
Plant and equipment, net | 0 | 0 |
Other assets | (553,825) | (555,999) |
Total assets | (20,294,424) | (15,775,853) |
Current liabilities | 0 | 0 |
Intercompany payables | (12,316,634) | (9,413,009) |
Long-term debt | 0 | 0 |
Other liabilities | (553,825) | (555,999) |
Noncontrolling interest | 0 | 0 |
Shareholders’ equity | (7,423,965) | (5,806,845) |
Total liabilities and shareholders’ equity | $ (20,294,424) | $ (15,775,853) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Subsidiary Guarantees - Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Supplemental Guarantor Information [Line Items] | ||||
Sales | $ 13,698,699 | $ 14,658,074 | $ 44,026,746 | $ 44,639,060 |
Cost of sales | 11,134,459 | 11,903,776 | 35,690,737 | 36,209,265 |
Gross profit | 2,564,240 | 2,754,298 | 8,336,009 | 8,429,795 |
Operating expenses | 2,503,966 | 2,224,713 | 7,054,924 | 6,820,175 |
Operating income | 60,274 | 529,585 | 1,281,085 | 1,609,620 |
Interest expense (income) | 83,854 | 94,514 | 243,951 | 270,643 |
Other expense (income), net | 5,200 | 4,120 | 7,505 | 15,449 |
Earnings (loss) before income taxes | (28,780) | 430,951 | 1,029,629 | 1,323,528 |
Income tax (benefit) provision | (25,483) | (9,132) | 195,735 | 185,023 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings (loss) | (3,297) | 440,083 | 833,894 | 1,138,505 |
Other comprehensive income (loss) | (99,193) | 40,938 | (65,793) | (74,200) |
Comprehensive (loss) income | (102,490) | 481,021 | 768,101 | 1,064,305 |
Reportable Legal Entities | Sysco | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | 295,242 | 206,795 | 701,003 | 659,697 |
Operating income | (295,242) | (206,795) | (701,003) | (659,697) |
Interest expense (income) | 120,302 | 55,925 | 338,459 | 160,830 |
Other expense (income), net | 2,513 | (1,730) | 8,954 | 8,642 |
Earnings (loss) before income taxes | (418,057) | (260,990) | (1,048,416) | (829,169) |
Income tax (benefit) provision | (49,263) | (183,601) | (254,669) | (350,246) |
Equity in earnings of subsidiaries | 365,497 | 517,472 | 1,627,641 | 1,617,428 |
Net earnings (loss) | (3,297) | 440,083 | 833,894 | 1,138,505 |
Other comprehensive income (loss) | (99,193) | 40,938 | (65,793) | (74,200) |
Comprehensive (loss) income | (102,490) | 481,021 | 768,101 | 1,064,305 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 8,722,745 | 9,135,852 | 28,022,282 | 27,716,772 |
Cost of sales | 7,070,961 | 7,392,718 | 22,694,007 | 22,434,604 |
Gross profit | 1,651,784 | 1,743,134 | 5,328,275 | 5,282,168 |
Operating expenses | 1,141,038 | 1,025,383 | 3,269,879 | 3,113,409 |
Operating income | 510,746 | 717,751 | 2,058,396 | 2,168,759 |
Interest expense (income) | (28,747) | (43,056) | (73,268) | (73,515) |
Other expense (income), net | (84) | (80) | (434) | (220) |
Earnings (loss) before income taxes | 539,577 | 760,887 | 2,132,098 | 2,242,494 |
Income tax (benefit) provision | 137,143 | 188,703 | 538,598 | 556,107 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings (loss) | 402,434 | 572,184 | 1,593,500 | 1,686,387 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive (loss) income | 402,434 | 572,184 | 1,593,500 | 1,686,387 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 5,493,011 | 6,098,725 | 17,671,368 | 18,662,548 |
Cost of sales | 4,580,555 | 5,087,561 | 14,663,634 | 15,514,921 |
Gross profit | 912,456 | 1,011,164 | 3,007,734 | 3,147,627 |
Operating expenses | 1,067,686 | 992,535 | 3,084,042 | 3,047,069 |
Operating income | (155,230) | 18,629 | (76,308) | 100,558 |
Interest expense (income) | (7,701) | 81,645 | (21,240) | 183,328 |
Other expense (income), net | 2,771 | 5,930 | (1,015) | 7,027 |
Earnings (loss) before income taxes | (150,300) | (68,946) | (54,053) | (89,797) |
Income tax (benefit) provision | (113,363) | (14,234) | (88,194) | (20,838) |
Equity in earnings of subsidiaries | 87,631 | 107,865 | 330,332 | 330,236 |
Net earnings (loss) | 50,694 | 53,153 | 364,473 | 261,277 |
Other comprehensive income (loss) | (151,143) | 37,471 | (122,347) | (88,989) |
Comprehensive (loss) income | (100,449) | 90,624 | 242,126 | 172,288 |
Eliminations | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | (517,057) | (576,503) | (1,666,904) | (1,740,260) |
Cost of sales | (517,057) | (576,503) | (1,666,904) | (1,740,260) |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense (income) | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Earnings (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (453,128) | (625,337) | (1,957,973) | (1,947,664) |
Net earnings (loss) | (453,128) | (625,337) | (1,957,973) | (1,947,664) |
Other comprehensive income (loss) | 151,143 | (37,471) | 122,347 | 88,989 |
Comprehensive (loss) income | $ (301,985) | $ (662,808) | $ (1,835,626) | $ (1,858,675) |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Subsidiary Guarantees - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Cash flows provided by (used for): | ||
Operating activities | $ 1,078,469 | $ 1,365,225 |
Investing activities | (659,988) | (579,859) |
Financing activities | 1,342,678 | (939,815) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (8,857) | (11,619) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,752,302 | (166,068) |
Cash, cash equivalents and restricted cash at beginning of period | 532,245 | 715,844 |
Cash, cash equivalents and restricted cash at end of period | 2,284,547 | 549,776 |
Reportable Legal Entities | Sysco | ||
Cash flows provided by (used for): | ||
Operating activities | 517,337 | 976,731 |
Investing activities | (122,409) | 349,816 |
Financing activities | 1,378,241 | (1,338,077) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,773,169 | (11,530) |
Cash, cash equivalents and restricted cash at beginning of period | 29,868 | 29,144 |
Cash, cash equivalents and restricted cash at end of period | 1,803,037 | 17,614 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||
Cash flows provided by (used for): | ||
Operating activities | 256,752 | 132,990 |
Investing activities | (281,927) | (133,190) |
Financing activities | (6,816) | (6,850) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (31,991) | (7,050) |
Cash, cash equivalents and restricted cash at beginning of period | 117,643 | 111,843 |
Cash, cash equivalents and restricted cash at end of period | 85,652 | 104,793 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||
Cash flows provided by (used for): | ||
Operating activities | 304,380 | 255,504 |
Investing activities | (357,681) | (293,088) |
Financing activities | 73,282 | (98,285) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (8,857) | (11,619) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,124 | (147,488) |
Cash, cash equivalents and restricted cash at beginning of period | 384,734 | 574,857 |
Cash, cash equivalents and restricted cash at end of period | 395,858 | 427,369 |
Eliminations | ||
Cash flows provided by (used for): | ||
Operating activities | 0 | 0 |
Investing activities | 102,029 | (503,397) |
Financing activities | (102,029) | 503,397 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net increase (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 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The consolidated financial statements have been prepared by the company, without audit. 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 (loss), cash flows and changes in shareholders’ equity for all periods presented have been made. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 29, 2019. Certain footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements. Supplemental Cash Flow Information The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash included within the Consolidated Balance Sheets that sum to the total of the amounts shown in the Consolidated Statement of Cash Flows: Mar. 28, 2020 Mar. 30, 2019 (In thousands) Cash and cash equivalents $ 2,240,807 $ 521,621 Restricted cash (1) 43,740 28,155 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 2,284,547 $ 549,776 (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 | 9 Months Ended |
Mar. 28, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting | CHANGES IN ACCOUNTING Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. 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 and timing 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. Sysco adopted this ASU and related amendments as of June 30, 2019, the first day of fiscal 2020, under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification, as well as relief from separating and allocating consideration across all categories of leases to lease and non-lease components of an agreement. For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS 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 continuing to evaluate the impact of the pending adoption of this ASU on its ongoing financial reporting. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 using the modified retrospective method. 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 continuing to evaluate the impact of the pending adoption of this ASU on its ongoing financial reporting. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 on a prospective basis. |
Revenue
Revenue | 9 Months Ended |
Mar. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The company recognizes revenues when its performance obligations are satisfied in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods and services. 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 $3.4 billion and $3.9 billion as of March 28, 2020 and June 29, 2019, 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. As of March 28, 2020, Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 13-Week Period Ended Mar. 28, 2020 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 1,840,655 $ 348,748 $ 374,531 $ — $ 2,563,934 Canned and dry products 1,747,522 516,841 28,804 — 2,293,167 Frozen fruits, vegetables, bakery and other 1,316,562 479,444 244,151 — 2,040,157 Dairy products 1,020,115 272,854 135,818 — 1,428,787 Poultry 953,741 177,661 179,833 — 1,311,235 Fresh produce 926,527 223,614 57,667 — 1,207,808 Paper and disposables 678,104 84,684 155,487 16,060 934,335 Seafood 569,922 98,212 33,269 — 701,403 Beverage products 253,683 111,105 132,430 18,681 515,899 Other (1) 280,174 195,479 22,121 204,200 701,974 Total Sales $ 9,587,005 $ 2,508,642 $ 1,364,111 $ 238,941 $ 13,698,699 (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. 13-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,035,201 $ 389,126 $ 386,074 $ — $ 2,810,401 Canned and dry products 1,812,070 554,653 69,730 — 2,436,453 Frozen fruits, vegetables, bakery and other 1,408,601 500,999 300,725 — 2,210,325 Dairy products 1,030,209 304,315 145,460 — 1,479,984 Poultry 1,013,513 195,816 200,518 — 1,409,847 Fresh produce 936,972 245,436 56,847 — 1,239,255 Paper and disposables 686,732 88,400 178,465 14,287 967,884 Seafood 624,953 166,103 32,959 — 824,015 Beverage products 277,421 129,366 136,876 19,787 563,450 Other (1) 279,611 183,677 29,658 223,514 716,460 Total Sales $ 10,105,283 $ 2,757,891 $ 1,537,312 $ 257,588 $ 14,658,074 (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. 39-Week Period Ended Mar. 28, 2020 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 5,987,431 $ 1,167,126 $ 1,148,493 $ — $ 8,303,050 Canned and dry products 5,508,168 1,687,732 104,646 — 7,300,546 Frozen fruits, vegetables, bakery and other 4,225,248 1,610,048 765,146 — 6,600,442 Poultry 3,108,528 605,506 584,583 — 4,298,617 Dairy products 3,308,322 886,256 424,706 — 4,619,284 Fresh produce 2,877,445 734,824 177,918 — 3,790,187 Paper and disposables 2,087,588 269,797 490,235 48,723 2,896,343 Seafood 1,857,040 367,486 81,507 — 2,306,033 Beverage products 821,092 366,006 415,215 63,922 1,666,235 Other (1) 878,353 616,300 74,549 676,807 2,246,009 Total Sales $ 30,659,215 $ 8,311,081 $ 4,266,998 $ 789,452 $ 44,026,746 (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. 39-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 6,241,367 $ 1,218,668 $ 1,132,476 $ — $ 8,592,511 Canned and dry products 5,463,772 1,777,733 214,070 — 7,455,575 Frozen fruits, vegetables, bakery and other 4,249,051 1,483,735 907,718 — 6,640,504 Dairy products 3,158,050 929,025 448,369 — 4,535,444 Poultry 3,042,028 620,940 681,253 — 4,344,221 Fresh produce 2,802,548 825,000 178,745 — 3,806,293 Paper and disposables 2,079,381 280,315 548,977 44,871 2,953,544 Seafood 1,868,294 550,953 81,795 — 2,501,042 Beverage products 839,173 342,753 420,414 63,389 1,665,729 Other (1) 848,135 540,317 81,559 674,186 2,144,197 Total Sales $ 30,591,799 $ 8,569,439 $ 4,695,376 $ 782,446 $ 44,639,060 (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. Credit Risk |
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 28, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONSDuring the first 39 weeks of fiscal 2020, the company paid cash of $142.8 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 March 28, 2020, aggregate contingent consideration outstanding was $30.5 million, of which $25.0 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 measurement. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 28, 2020 | |
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 10, “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of March 28, 2020 and June 29, 2019: Assets Measured at Fair Value as of Mar. 28, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 1,656,813 $ 200,200 $ — $ 1,857,013 Other assets (1) 43,740 — — 43,740 Total assets at fair value $ 1,700,553 $ 200,200 $ — $ 1,900,753 (1) Represents restricted cash balance recorded within Other assets in the consolidated balance sheet. Assets 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. 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 $10.4 billion and $8.6 billion as of March 28, 2020 and June 29, 2019, respectively. The carrying value of total debt was $10.9 billion and $8.2 billion as of March 28, 2020 and June 29, 2019, respectively. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Mar. 28, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIESSysco invests 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 March 28, 2020 and June 29, 2019: Mar. 28, 2020 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 $ 81,760 $ 885 $ (359) $ 82,286 $ 11,976 $ 70,310 Government bonds 28,700 3,770 — 32,470 — 32,470 Total marketable securities $ 110,460 $ 4,655 $ (359) $ 114,756 $ 11,976 $ 102,780 Jun. 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 March 28, 2020 had effective maturities ranging from less than one year to approximately ten years. There were no significant realized gains or losses in marketable securities in the third quarter or the first 39 weeks of fiscal 2020. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 9 Months Ended |
Mar. 28, 2020 | |
Credit Loss [Abstract] | |
Allowance for Doubtful Accounts | ALLOWANCE FOR DOUBTFUL ACCOUNTS Sysco determines the past due status of trade receivables based on contractual terms with each customer, evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts or the uncollectible receivables to be written off. As a result of the COVID-19 pandemic, many of Sysco’s customers, including those in the restaurant, hospitality and education segments, are closed or operating at a substantially reduced volume due to governmental requirements for closures. Some of these customers have ceased paying their outstanding receivables, creating uncertainty as to their collectability. In the third quarter and first 39 weeks of fiscal 2020, Sysco recorded a provision for losses on receivables totaling $175.4 million and $213.8 million, respectively, a large portion of which was associated with the COVID-19 pandemic impact to its customers. To calculate the ending reserve needed as of March 28, 2020, the company estimated uncollectible amounts by applying write-off percentages based on an aging of past due receivables. These write-off percentages are based, in part, on historical loss experience, including losses incurred during times of local and regional disasters. The COVID-19 pandemic is more widespread and longer in duration than historical disasters impacting our business, and it is possible actual uncollectible amounts will differ and additional charges may be required in the fourth quarter of fiscal 2020. A summary of the activity in the allowance for doubtful accounts appears below: Mar. 28, 2020 (In thousands) Balance at beginning of period $ 28,176 Charged to costs and expenses 213,769 Customer accounts written off, net of recoveries 11,474 Other adjustments (7,343) Balance at end of period $ 246,076 |
Goodwill Impairment
Goodwill Impairment | 9 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment | GOODWILL IMPAIRMENTThe Company had approximately $3.9 billion of goodwill at March 28, 2020. The Company tests goodwill for impairment annually in our fourth quarter, or more frequently if events or circumstances indicate they could be impaired. Potential impairment indicators include (but are not limited to) macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, specific events affecting the reporting unit or sustained decrease in share price. During the third quarter of fiscal 2020, as a result of significant declines in macroeconomic conditions and equity valuations, as well as regulatory restrictions brought forth by the COVID-19 pandemic, the company determined that certain reporting units were more sensitive than others to these declines and that it was more likely than not that an impairment may exist within the European reporting units and the Pacific Star (our Mexico operations) and Cake reporting units. The company performed quantitative goodwill impairment tests for these reporting units using a combination of discounted cash flow and earnings or revenue multiple models and determined goodwill was impaired for Pacific Star and Cake, and not impaired for any of the European reporting units. Based upon the results of the tests, during the third quarter of fiscal 2020 the company recorded impairment charges of $34.5 million and $34.2 million for Pacific Star and Cake, respectively, which represented the full balance of goodwill for those reporting units. In the third quarter test, impairment charges would have been applicable for three European reporting units if our estimates of fair value were decreased by ranges of 14% to 26%, with goodwill of $511.7 million in the aggregate as of March 28, 2020, recorded for these reporting units. The company estimated the fair value of these reporting units using a combination of discounted cash flow and earnings or revenue multiple models. For the purposes of the discounted cash flow models, fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. The fair value conclusions as of March 28, 2020 for the reporting units are highly sensitive to changes in the assumptions used in the income approach, which include forecasted revenues, perpetual growth rates, and long-term discount rates, among others, all of which require significant judgments by management. Fair value of the reporting unit is therefore determined using significant unobservable inputs, or level 3 in the fair value hierarchy. The company has used recent historical performance, current forecasted financial information, and broad-based industry and economic statistics as a basis to estimate the key assumptions utilized in the discounted cash flow model. These key assumptions are inherently uncertain and require a high degree of estimation and judgment and are subject to change based on future changes, industry and global economic and geo-political conditions, and the timing and success of the implementation of current strategic initiatives. The impact of the COVID-19 pandemic on estimated future cash flows is uncertain and will largely depend on the outcome of future events, which could result in further goodwill impairments going forward. The company will complete its annual impairment test in the fourth quarter of fiscal 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Mar. 28, 2020 | |
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. 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. In the third quarter of fiscal 2020, Sysco settled some of its net investment hedges, which resulted in a gain of $56.7 million recorded in other comprehensive income (loss). 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 uses 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 March 28, 2020 are presented 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 (March 30, 2020 to August 2020) Swedish Krona 340 Various (April 2020 to December 2020) British Pound Sterling 23 July 2021 British Pound Sterling 234 June 2023 Euro 500 Hedging of fuel risk Various (March 31, 2020 to May 2021) Gallons 61 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of March 28, 2020 and June 29, 2019 are as follows: Derivative Fair Value Balance Sheet location Mar. 28, 2020 Jun. 29, 2019 (In thousands) Fair Value Hedges: Interest rate swaps Other current assets $ 977 $ — Interest rate swaps Other assets 66,563 37,396 Interest rate swaps Other long-term liabilities — 9,285 Cash Flow Hedges: Fuel swaps Other current assets $ — $ 154 Foreign currency forwards Other current assets 2,192 624 Fuel swaps Other assets — 136 Cross currency swaps Other assets 16,991 8,592 Fuel swaps Other current liabilities 37,468 6,537 Foreign currency forwards Other current liabilities 302 162 Fuel swaps Other long-term liabilities 3,905 239 Net Investment Hedges: Foreign currency swaps Other assets $ — $ 18,614 Foreign currency swaps Other long-term liabilities — 9,973 Gains or losses recognized in the consolidated results of operations for cash flow hedging relationships are not significant for each of the periods presented. The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows: 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded $ 83,854 $ 94,514 $ 243,951 $ 270,643 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (52,942) $ (41,657) $ (83,027) $ (97,164) Derivatives designated as hedging instruments 38,923 18,865 38,532 39,556 The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented: 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Interest expense $ (14,562) $ (17,051) $ (43,679) $ (47,834) Increase (decrease) in fair value of debt 38,380 24,606 39,348 49,330 Hedged items $ (52,942) $ (41,657) $ (83,027) $ (97,164) The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended March 28, 2020 and March 30, 2019, presented on a pretax basis, are as follows: 13-Week Period Ended Mar. 28, 2020 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 $ (45,375) Operating expense $ (2,069) Foreign currency contracts 22,531 Cost of sales / Other income — Total $ (22,844) $ (2,069) Derivatives in net investment hedging relationships: Foreign currency contracts $ 65,141 N/A $ — Foreign denominated debt 350 N/A — Total $ 65,491 $ — 13-Week Period Ended Mar. 30, 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 $ 16,276 Operating expense $ (961) Foreign currency contracts (14,244) Cost of sales / Other income 14 Total $ 2,032 $ (947) Derivatives in net investment hedging relationships: Foreign currency contracts $ (15,387) N/A $ — Foreign denominated debt 10,550 N/A — Total $ (4,837) $ — The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39-week periods ended March 28, 2020 and March 30, 2019, presented on a pretax basis, are as follows: 39-Week Period Ended Mar. 28, 2020 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 $ (34,686) Operating expense $ (8,688) Foreign currency contracts 5,180 Cost of sales / Other income 3,626 Total $ (29,506) $ (5,062) Derivatives in net investment hedging relationships: Foreign currency contracts $ 51,354 N/A $ — Foreign denominated debt 10,150 N/A — Total $ 61,504 $ — 39-Week Period Ended Mar. 30, 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 $ (19,541) Operating expense $ 8,432 Foreign currency contracts 6,416 Cost of sales / Other income 505 Total $ (13,125) $ 8,937 Derivatives in net investment hedging relationships: Foreign currency contracts $ 18,984 N/A $ — Foreign denominated debt 22,650 N/A — Total $ 41,634 $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 28, 2020 are as follows: Mar. 28, 2020 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 $ (749,853) $ (977) Long-term debt (1,563,222) (66,987) 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) |
Debt
Debt | 9 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The company has a $2.0 billion long-term revolving credit facility that expires on June 28, 2024, subject to extension. As of March 28, 2020, there were $1.7 billion in borrowings 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 $2.0 billion. As of March 28, 2020, there were $153.0 million in commercial paper issuances outstanding. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. During the first 39 weeks of fiscal 2020, aggregate outstanding commercial paper issuances, borrowings under our long-term revolving credit facility and short-term bank borrowings ranged from approximately $18.4 million to approximately $1.8 billion. Senior notes offerin g On February 13, 2020, Sysco issued senior notes (the Notes) totaling $1.0 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing February 15, 2030 (the 2030 Notes) (1) $ 500 2.40 % 99.647 % February 15, 2050 (the 2050 Notes) 500 3.30 99.811 (1) The net proceeds from this issuance have been and will be used to fund, in whole or in part, “Eligible Projects.” “Eligible Projects” are investments and expenditures made by Sysco in new projects and projects that have received funding in the three years prior to the issuance of the 2030 notes, which meet one or more of the following categories of eligible criteria: (1) renewable energy; (2) energy efficiency; (3) clean transportation; (4) waste reduction; (5) sustainable water and wastewater management; (6) environmentally sustainable management of living natural resources and land use/food security; (7) aquatic biodiversity conservation/food security; and (8) socioeconomic advancement and empowerment. The Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes issued under the indenture governing the Notes or any of Sysco’s other indebtedness. Interest on the Notes will be paid semi-annually on February 15 and August 15, beginning August 15, 2020. At Sysco’s option, any or all of the Notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (i) the 2030 Notes before the date that is three months prior to the maturity date or (ii) the 2050 Notes before the date that is six months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed. If Sysco elects to redeem a series of Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Notes redeemed to the redemption date. See Note 20, “Subsequent Events” for additional information on other recent developments involving the company’s debt. |
Leases
Leases | 9 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Leases | LEASES Sysco leases certain of its distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The company determines if an arrangement is a lease at inception and recognizes a finance or operating lease liability and ROU asset in the consolidated balance sheets if a lease exists. Lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at the commencement date. If the borrowing rate implicit in the lease is not readily determinable, Sysco uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The lease term is defined as the noncancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the company will exercise one of these options. Leases with an initial term of 12 months or less are not recorded in Sysco’s consolidated balance sheets, and the company recognizes expense for these leases on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance. Sysco’s leases do not contain significant residual value guarantees and do not impose significant restrictions or covenants. The following table presents the location of the finance lease ROU assets and lease liabilities in the company’s Consolidated Balance Sheet at March 28, 2020: Consolidated Balance Sheet Location Mar. 28, 2020 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 89,914 Current finance lease liabilities Current maturities of long-term debt 29,436 Long-term finance lease liabilities Long-term debt 65,409 The following table presents lease costs for each of the presented periods ended March 28, 2020: Consolidated Results of Operations Location 13-Week Period Ended Mar. 28, 2020 39-Week Period Ended Mar. 28, 2020 (In thousands) Operating lease cost Operating expenses $ 32,290 $ 94,632 Financing lease cost: Amortization of right-of-use assets Operating expenses 8,657 27,613 Interest on lease obligations Interest expense 1,046 3,455 Variable lease cost Operating expenses 2,608 9,055 Short-term lease cost Operating expenses 2,285 8,455 Net lease cost $ 46,886 $ 143,210 Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of March 28, 2020 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 31,191 $ 8,902 2021 118,673 32,333 2022 90,938 23,457 2023 75,258 16,782 2024 52,718 10,510 2025 46,088 6,077 Thereafter 337,334 5,859 Total undiscounted lease obligations 752,200 103,920 Less imputed interest (106,079) (9,075) Present value of lease obligations $ 646,121 $ 94,845 Other information related to lease agreements was as follows: 39-Week Period Ended Mar. 28, 2020 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 95,861 Operating cash flows for financing leases 3,424 Financing cash flows for financing leases 24,773 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 61,646 Assets obtained in exchange for finance lease obligations 11,797 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.55 years Financing leases 3.99 years Weighted-average discount rate: Operating leases 2.46 % Financing leases 4.60 % |
Leases | LEASES Sysco leases certain of its distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The company determines if an arrangement is a lease at inception and recognizes a finance or operating lease liability and ROU asset in the consolidated balance sheets if a lease exists. Lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at the commencement date. If the borrowing rate implicit in the lease is not readily determinable, Sysco uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The lease term is defined as the noncancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the company will exercise one of these options. Leases with an initial term of 12 months or less are not recorded in Sysco’s consolidated balance sheets, and the company recognizes expense for these leases on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance. Sysco’s leases do not contain significant residual value guarantees and do not impose significant restrictions or covenants. The following table presents the location of the finance lease ROU assets and lease liabilities in the company’s Consolidated Balance Sheet at March 28, 2020: Consolidated Balance Sheet Location Mar. 28, 2020 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 89,914 Current finance lease liabilities Current maturities of long-term debt 29,436 Long-term finance lease liabilities Long-term debt 65,409 The following table presents lease costs for each of the presented periods ended March 28, 2020: Consolidated Results of Operations Location 13-Week Period Ended Mar. 28, 2020 39-Week Period Ended Mar. 28, 2020 (In thousands) Operating lease cost Operating expenses $ 32,290 $ 94,632 Financing lease cost: Amortization of right-of-use assets Operating expenses 8,657 27,613 Interest on lease obligations Interest expense 1,046 3,455 Variable lease cost Operating expenses 2,608 9,055 Short-term lease cost Operating expenses 2,285 8,455 Net lease cost $ 46,886 $ 143,210 Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of March 28, 2020 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 31,191 $ 8,902 2021 118,673 32,333 2022 90,938 23,457 2023 75,258 16,782 2024 52,718 10,510 2025 46,088 6,077 Thereafter 337,334 5,859 Total undiscounted lease obligations 752,200 103,920 Less imputed interest (106,079) (9,075) Present value of lease obligations $ 646,121 $ 94,845 Other information related to lease agreements was as follows: 39-Week Period Ended Mar. 28, 2020 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 95,861 Operating cash flows for financing leases 3,424 Financing cash flows for financing leases 24,773 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 61,646 Assets obtained in exchange for finance lease obligations 11,797 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.55 years Financing leases 3.99 years Weighted-average discount rate: Operating leases 2.46 % Financing leases 4.60 % |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share, Basic [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ (3,297) $ 440,083 $ 833,894 $ 1,138,505 Denominator: Weighted-average basic shares outstanding 508,745,253 514,185,453 510,729,277 517,637,952 Dilutive effect of share-based awards 3,912,404 5,635,858 4,903,538 6,849,558 Weighted-average diluted shares outstanding 512,657,657 519,821,311 515,632,815 524,487,510 Basic earnings per share $ (0.01) $ 0.86 $ 1.63 $ 2.20 Diluted earnings per share $ (0.01) $ 0.85 $ 1.62 $ 2.17 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 4,844,000 and 2,583,000 for the third quarters of fiscal 2020 and fiscal 2019, respectively. 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 3,704,000 and 2,260,000 for the first 39 weeks of fiscal 2020 and fiscal 2019, respectively. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Mar. 28, 2020 | |
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 the first 39 weeks of fiscal 2020, options to purchas e 3,184,042 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant-date fair value per option granted during the first 39 weeks of fiscal 2020 was $10.69. In the first 39 weeks of fiscal 2020, 667,335 p erformance share units (PSUs) 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 PSU granted during the first 39 weeks of fiscal 2020 was $73.64. The PSUs will convert into shares of Sysco common stock at the end of the performance period based on financial performance targets consisting of Sysco’s adjusted earnings per share compound annual growth rate and adjusted return on invested capital. In the first 39 weeks of fiscal 2020 , 651,100 r estricted stock units were granted to employees. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2020 was $73.17 . Employee Stock Purchase Plan Plan participants purchas ed 710,394 sha res of common stock under the Sysco ESPP during the first 39 weeks of fiscal 2020. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $11.73 d uring the first 39 weeks of fiscal 2020. The fair value of each stock purchase right is estimated as the difference between the stock price at the date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost that has been recognized in results of operations was $63.9 million and $78.1 million for the first 39 weeks of fiscal 2020 and fiscal 2019, respectively. As of March 28, 2020, there was $143.8 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.01 years . |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Effective Tax Rate The effective tax rates for the third quarter and first 39 weeks of fiscal 2020 were 88.54% and 19.01%, respectively. As compared to the company’s statutory tax rate, the effective tax rates for the third quarter and the first 39 weeks of fiscal 2020 were impacted by (1) the favorable impact of excess tax benefits of equity-based compensation that totaled $6.8 million and $34.3 million, respectively and (2) the unfavorable tax effect of goodwill impairments in the third quarter of $17.7 million. The effective tax rates for the third quarter and first 39 weeks of fiscal 2019 were (2.12)% and 13.98%, respectively. The lower effective tax rates for the third quarter and first 39 weeks of fiscal 2019 were primarily due to Sysco’s determination in the third quarter of fiscal 2019 to recognize the favorable impact of $95.1 million of foreign tax credits, which fully offset its transition tax liability and the favorable impact of excess tax benefits of equity-based compensation that totaled $11.3 million and $33.2 million for the third quarter and first 39 weeks of fiscal 2019, respectively. Uncertain Tax Positions As of March 28, 2020, the gross amount of unrecognized tax benefit and related accrued interest was $23.9 million and $4.6 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months. At this time, an estimate of the range of the reasonably possible change cannot be made. Other The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects income earned and taxed in the various U.S. federal and state, as well as foreign jurisdictions. Tax law changes, increases or decreases in permanent book versus tax basis differences, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 28, 2020 | |
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 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Mar. 28, 2020 | |
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 - primarily includes operations that the company has grouped into Canada, Latin America and Europe, which distribute a full line of food products and a wide variety of non-food products. Latin America primarily consists of operations in Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom, France, Ireland and Sweden; • SYGMA - our U.S. customized distribution subsidiary; and • Other - primarily our hotel supply operations and Sysco Labs, which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our 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 expenses also include all share-based compensation costs. The following tables set forth certain financial information for Sysco’s reportable business segments. 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 9,587,005 $ 10,105,283 $ 30,659,215 $ 30,591,799 International Foodservice Operations 2,508,642 2,757,891 8,311,081 8,569,439 SYGMA 1,364,111 1,537,312 4,266,998 4,695,376 Other 238,941 257,588 789,452 782,446 Total $ 13,698,699 $ 14,658,074 $ 44,026,746 $ 44,639,060 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Operating income: (In thousands) (In thousands) U.S. Foodservice Operations $ 528,025 $ 765,425 $ 2,158,211 $ 2,318,660 International Foodservice Operations (83,786) 10,145 5,895 62,000 SYGMA 10,301 11,668 27,732 17,213 Other (19,051) 6,376 486 22,429 Total segments 435,489 793,614 2,192,324 2,420,302 Corporate (375,215) (264,029) (911,239) (810,682) Total operating income 60,274 529,585 1,281,085 1,609,620 Interest expense 83,854 94,514 243,951 270,643 Other expense (income), net 5,200 4,120 7,505 15,449 Earnings (loss) before income taxes $ (28,780) $ 430,951 $ 1,029,629 $ 1,323,528 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Towards the end of March 2020, Sysco’s business declined significantly from the time that federal, regional, state and local governments issued shelter in place orders related to the COVID-19 pandemic. Many of Sysco’s customers, including those in the restaurant, hospitality and education segments, ceased operating due to governmental requirements for closures to help curb the spread of COVID-19, and there are no assurances as to how long these closures may remain in effect. Furthermore, even after reopening, there can be no assurance as to the time required to regain operations and sales volume at prior levels. Given the dynamic nature of this situation, the company cannot reasonably estimate the impacts of COVID-19 on its financial condition, results of operations or cash flows for the foreseeable future. However, Sysco expects the COVID-19 pandemic will have a material, adverse impact on future revenue growth, as well as overall profitability, and may lead to higher bad debt expense, higher inventory spoilage charges, the impairment of goodwill, intangible assets or fixed assets, the write-off of contract balances and a volatile effective tax rate driven by changes in the mix of earnings across the areas in which Sysco operates. Senior Notes Offering On April 2, 2020, which is in Sysco's fourth quarter of fiscal 2020, Sysco issued senior notes (Senior Notes) totaling $4.0 billion in aggregate principal amount in order to enhance the company’s liquidity position in response to the COVID-19 pandemic. Details of the senior notes are as follows: Maturity Date Par Value Coupon Rate Pricing April 1, 2025 (the 5.650% Senior Notes due 2025) 750 5.65 % 99.931 % April 1, 2030 (the 5.950% Senior Notes due 2030) 1,250 5.95 99.792 April 1, 2040 (the 6.600% Senior Notes due 2040) 750 6.60 99.802 April 1, 2050 (the 6.600% Senior Notes due 2050) 1,250 6.60 99.767 Sysco anticipates using the net proceeds from the offering to payoff its commercial paper borrowings and to redeem its $750 million aggregate principal amount of Senior Notes due October 2020. The Senior Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes. Interest on the Senior Notes will be paid semi-annually in arrears on April 1 and October 1, beginning October 1, 2020. At Sysco’s option, any or all of the Senior Notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (i) the Senior Notes maturing in 2025 before the date that is one month prior to the maturity date, (ii) the Senior Notes maturing in 2030 before the date that is three months prior to the maturity date, (iii) the Senior Notes maturing in 2040 before the date that is six months prior to the maturity date or (iv) the Senior Notes maturing in 2050 before the date that is six months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Senior Notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes to be redeemed that would be due if such Senior Notes matured on the applicable date described above. If Sysco elects to redeem a series of Senior Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Senior Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Senior Notes redeemed to the redemption date. The interest rate payable on each series of Senior Notes will be subject to adjustment from time to time if either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. (or, in either case, a substitute rating agency), downgrades (or subsequently upgrades) its rating assigned to the Senior Notes, as set forth in the supplemental indentures under which the Senior Notes were issued. |
Changes in Accounting (Policies
Changes in Accounting (Policies) | 9 Months Ended |
Mar. 28, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. 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 and timing 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. Sysco adopted this ASU and related amendments as of June 30, 2019, the first day of fiscal 2020, under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification, as well as relief from separating and allocating consideration across all categories of leases to lease and non-lease components of an agreement. For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption. 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 continuing to evaluate the impact of the pending adoption of this ASU on its ongoing financial reporting. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 using the modified retrospective method. 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 continuing to evaluate the impact of the pending adoption of this ASU on its ongoing financial reporting. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 on a prospective basis. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. 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 and timing 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. Sysco adopted this ASU and related amendments as of June 30, 2019, the first day of fiscal 2020, under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification, as well as relief from separating and allocating consideration across all categories of leases to lease and non-lease components of an agreement. For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption. 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 continuing to evaluate the impact of the pending adoption of this ASU on its ongoing financial reporting. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 using the modified retrospective method. 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 continuing to evaluate the impact of the pending adoption of this ASU on its ongoing financial reporting. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 on a prospective basis. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash included within the Consolidated Balance Sheets that sum to the total of the amounts shown in the Consolidated Statement of Cash Flows: Mar. 28, 2020 Mar. 30, 2019 (In thousands) Cash and cash equivalents $ 2,240,807 $ 521,621 Restricted cash (1) 43,740 28,155 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 2,284,547 $ 549,776 (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. |
Restrictions on cash and cash equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash included within the Consolidated Balance Sheets that sum to the total of the amounts shown in the Consolidated Statement of Cash Flows: Mar. 28, 2020 Mar. 30, 2019 (In thousands) Cash and cash equivalents $ 2,240,807 $ 521,621 Restricted cash (1) 43,740 28,155 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 2,284,547 $ 549,776 (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) | 9 Months Ended |
Mar. 28, 2020 | |
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: 13-Week Period Ended Mar. 28, 2020 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 1,840,655 $ 348,748 $ 374,531 $ — $ 2,563,934 Canned and dry products 1,747,522 516,841 28,804 — 2,293,167 Frozen fruits, vegetables, bakery and other 1,316,562 479,444 244,151 — 2,040,157 Dairy products 1,020,115 272,854 135,818 — 1,428,787 Poultry 953,741 177,661 179,833 — 1,311,235 Fresh produce 926,527 223,614 57,667 — 1,207,808 Paper and disposables 678,104 84,684 155,487 16,060 934,335 Seafood 569,922 98,212 33,269 — 701,403 Beverage products 253,683 111,105 132,430 18,681 515,899 Other (1) 280,174 195,479 22,121 204,200 701,974 Total Sales $ 9,587,005 $ 2,508,642 $ 1,364,111 $ 238,941 $ 13,698,699 (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. 13-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,035,201 $ 389,126 $ 386,074 $ — $ 2,810,401 Canned and dry products 1,812,070 554,653 69,730 — 2,436,453 Frozen fruits, vegetables, bakery and other 1,408,601 500,999 300,725 — 2,210,325 Dairy products 1,030,209 304,315 145,460 — 1,479,984 Poultry 1,013,513 195,816 200,518 — 1,409,847 Fresh produce 936,972 245,436 56,847 — 1,239,255 Paper and disposables 686,732 88,400 178,465 14,287 967,884 Seafood 624,953 166,103 32,959 — 824,015 Beverage products 277,421 129,366 136,876 19,787 563,450 Other (1) 279,611 183,677 29,658 223,514 716,460 Total Sales $ 10,105,283 $ 2,757,891 $ 1,537,312 $ 257,588 $ 14,658,074 (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. 39-Week Period Ended Mar. 28, 2020 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 5,987,431 $ 1,167,126 $ 1,148,493 $ — $ 8,303,050 Canned and dry products 5,508,168 1,687,732 104,646 — 7,300,546 Frozen fruits, vegetables, bakery and other 4,225,248 1,610,048 765,146 — 6,600,442 Poultry 3,108,528 605,506 584,583 — 4,298,617 Dairy products 3,308,322 886,256 424,706 — 4,619,284 Fresh produce 2,877,445 734,824 177,918 — 3,790,187 Paper and disposables 2,087,588 269,797 490,235 48,723 2,896,343 Seafood 1,857,040 367,486 81,507 — 2,306,033 Beverage products 821,092 366,006 415,215 63,922 1,666,235 Other (1) 878,353 616,300 74,549 676,807 2,246,009 Total Sales $ 30,659,215 $ 8,311,081 $ 4,266,998 $ 789,452 $ 44,026,746 (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. 39-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 6,241,367 $ 1,218,668 $ 1,132,476 $ — $ 8,592,511 Canned and dry products 5,463,772 1,777,733 214,070 — 7,455,575 Frozen fruits, vegetables, bakery and other 4,249,051 1,483,735 907,718 — 6,640,504 Dairy products 3,158,050 929,025 448,369 — 4,535,444 Poultry 3,042,028 620,940 681,253 — 4,344,221 Fresh produce 2,802,548 825,000 178,745 — 3,806,293 Paper and disposables 2,079,381 280,315 548,977 44,871 2,953,544 Seafood 1,868,294 550,953 81,795 — 2,501,042 Beverage products 839,173 342,753 420,414 63,389 1,665,729 Other (1) 848,135 540,317 81,559 674,186 2,144,197 Total Sales $ 30,591,799 $ 8,569,439 $ 4,695,376 $ 782,446 $ 44,639,060 (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. Credit Risk |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 and June 29, 2019: Assets Measured at Fair Value as of Mar. 28, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 1,656,813 $ 200,200 $ — $ 1,857,013 Other assets (1) 43,740 — — 43,740 Total assets at fair value $ 1,700,553 $ 200,200 $ — $ 1,900,753 (1) Represents restricted cash balance recorded within Other assets in the consolidated balance sheet. Assets 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. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 and June 29, 2019: Mar. 28, 2020 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 $ 81,760 $ 885 $ (359) $ 82,286 $ 11,976 $ 70,310 Government bonds 28,700 3,770 — 32,470 — 32,470 Total marketable securities $ 110,460 $ 4,655 $ (359) $ 114,756 $ 11,976 $ 102,780 Jun. 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) | 9 Months Ended |
Mar. 28, 2020 | |
Credit Loss [Abstract] | |
Schedule of activity in allowance for doubtful accounts | A summary of the activity in the allowance for doubtful accounts appears below: Mar. 28, 2020 (In thousands) Balance at beginning of period $ 28,176 Charged to costs and expenses 213,769 Customer accounts written off, net of recoveries 11,474 Other adjustments (7,343) Balance at end of period $ 246,076 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of March 28, 2020 are presented 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 (March 30, 2020 to August 2020) Swedish Krona 340 Various (April 2020 to December 2020) British Pound Sterling 23 July 2021 British Pound Sterling 234 June 2023 Euro 500 Hedging of fuel risk Various (March 31, 2020 to May 2021) Gallons 61 |
Derivatives balance sheet location table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of March 28, 2020 and June 29, 2019 are as follows: Derivative Fair Value Balance Sheet location Mar. 28, 2020 Jun. 29, 2019 (In thousands) Fair Value Hedges: Interest rate swaps Other current assets $ 977 $ — Interest rate swaps Other assets 66,563 37,396 Interest rate swaps Other long-term liabilities — 9,285 Cash Flow Hedges: Fuel swaps Other current assets $ — $ 154 Foreign currency forwards Other current assets 2,192 624 Fuel swaps Other assets — 136 Cross currency swaps Other assets 16,991 8,592 Fuel swaps Other current liabilities 37,468 6,537 Foreign currency forwards Other current liabilities 302 162 Fuel swaps Other long-term liabilities 3,905 239 Net Investment Hedges: Foreign currency swaps Other assets $ — $ 18,614 Foreign currency swaps Other long-term liabilities — 9,973 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 28, 2020 are as follows: Mar. 28, 2020 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 $ (749,853) $ (977) Long-term debt (1,563,222) (66,987) 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) |
Schedule of location and effect of derivative instruments and related hedged items | The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows: 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded $ 83,854 $ 94,514 $ 243,951 $ 270,643 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (52,942) $ (41,657) $ (83,027) $ (97,164) Derivatives designated as hedging instruments 38,923 18,865 38,532 39,556 The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented: 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Interest expense $ (14,562) $ (17,051) $ (43,679) $ (47,834) Increase (decrease) in fair value of debt 38,380 24,606 39,348 49,330 Hedged items $ (52,942) $ (41,657) $ (83,027) $ (97,164) The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended March 28, 2020 and March 30, 2019, presented on a pretax basis, are as follows: 13-Week Period Ended Mar. 28, 2020 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 $ (45,375) Operating expense $ (2,069) Foreign currency contracts 22,531 Cost of sales / Other income — Total $ (22,844) $ (2,069) Derivatives in net investment hedging relationships: Foreign currency contracts $ 65,141 N/A $ — Foreign denominated debt 350 N/A — Total $ 65,491 $ — 13-Week Period Ended Mar. 30, 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 $ 16,276 Operating expense $ (961) Foreign currency contracts (14,244) Cost of sales / Other income 14 Total $ 2,032 $ (947) Derivatives in net investment hedging relationships: Foreign currency contracts $ (15,387) N/A $ — Foreign denominated debt 10,550 N/A — Total $ (4,837) $ — The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39-week periods ended March 28, 2020 and March 30, 2019, presented on a pretax basis, are as follows: 39-Week Period Ended Mar. 28, 2020 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 $ (34,686) Operating expense $ (8,688) Foreign currency contracts 5,180 Cost of sales / Other income 3,626 Total $ (29,506) $ (5,062) Derivatives in net investment hedging relationships: Foreign currency contracts $ 51,354 N/A $ — Foreign denominated debt 10,150 N/A — Total $ 61,504 $ — 39-Week Period Ended Mar. 30, 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 $ (19,541) Operating expense $ 8,432 Foreign currency contracts 6,416 Cost of sales / Other income 505 Total $ (13,125) $ 8,937 Derivatives in net investment hedging relationships: Foreign currency contracts $ 18,984 N/A $ — Foreign denominated debt 22,650 N/A — Total $ 41,634 $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | On February 13, 2020, Sysco issued senior notes (the Notes) totaling $1.0 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing February 15, 2030 (the 2030 Notes) (1) $ 500 2.40 % 99.647 % February 15, 2050 (the 2050 Notes) 500 3.30 99.811 (1) The net proceeds from this issuance have been and will be used to fund, in whole or in part, “Eligible Projects.” “Eligible Projects” are investments and expenditures made by Sysco in new projects and projects that have received funding in the three years prior to the issuance of the 2030 notes, which meet one or more of the following categories of eligible criteria: (1) renewable energy; (2) energy efficiency; (3) clean transportation; (4) waste reduction; (5) sustainable water and wastewater management; (6) environmentally sustainable management of living natural resources and land use/food security; (7) aquatic biodiversity conservation/food security; and (8) socioeconomic advancement and empowerment. On April 2, 2020, which is in Sysco's fourth quarter of fiscal 2020, Sysco issued senior notes (Senior Notes) totaling $4.0 billion in aggregate principal amount in order to enhance the company’s liquidity position in response to the COVID-19 pandemic. Details of the senior notes are as follows: Maturity Date Par Value Coupon Rate Pricing April 1, 2025 (the 5.650% Senior Notes due 2025) 750 5.65 % 99.931 % April 1, 2030 (the 5.950% Senior Notes due 2030) 1,250 5.95 99.792 April 1, 2040 (the 6.600% Senior Notes due 2040) 750 6.60 99.802 April 1, 2050 (the 6.600% Senior Notes due 2050) 1,250 6.60 99.767 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Schedule of Leases, Financial Statement Presentation | The following table presents the location of the finance lease ROU assets and lease liabilities in the company’s Consolidated Balance Sheet at March 28, 2020: Consolidated Balance Sheet Location Mar. 28, 2020 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 89,914 Current finance lease liabilities Current maturities of long-term debt 29,436 Long-term finance lease liabilities Long-term debt 65,409 |
Schedule of Lease Costs | The following table presents lease costs for each of the presented periods ended March 28, 2020: Consolidated Results of Operations Location 13-Week Period Ended Mar. 28, 2020 39-Week Period Ended Mar. 28, 2020 (In thousands) Operating lease cost Operating expenses $ 32,290 $ 94,632 Financing lease cost: Amortization of right-of-use assets Operating expenses 8,657 27,613 Interest on lease obligations Interest expense 1,046 3,455 Variable lease cost Operating expenses 2,608 9,055 Short-term lease cost Operating expenses 2,285 8,455 Net lease cost $ 46,886 $ 143,210 Other information related to lease agreements was as follows: 39-Week Period Ended Mar. 28, 2020 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 95,861 Operating cash flows for financing leases 3,424 Financing cash flows for financing leases 24,773 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 61,646 Assets obtained in exchange for finance lease obligations 11,797 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.55 years Financing leases 3.99 years Weighted-average discount rate: Operating leases 2.46 % Financing leases 4.60 % |
Schedule of Minimum Operating Lease Obligations | Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of March 28, 2020 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 31,191 $ 8,902 2021 118,673 32,333 2022 90,938 23,457 2023 75,258 16,782 2024 52,718 10,510 2025 46,088 6,077 Thereafter 337,334 5,859 Total undiscounted lease obligations 752,200 103,920 Less imputed interest (106,079) (9,075) Present value of lease obligations $ 646,121 $ 94,845 |
Schedule of Minimum Finance Lease Obligations | Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of March 28, 2020 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 31,191 $ 8,902 2021 118,673 32,333 2022 90,938 23,457 2023 75,258 16,782 2024 52,718 10,510 2025 46,088 6,077 Thereafter 337,334 5,859 Total undiscounted lease obligations 752,200 103,920 Less imputed interest (106,079) (9,075) Present value of lease obligations $ 646,121 $ 94,845 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share, Basic [Abstract] | |
Computation of basic and diluted earnings per share table | The following table sets forth the computation of basic and diluted earnings per share: 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ (3,297) $ 440,083 $ 833,894 $ 1,138,505 Denominator: Weighted-average basic shares outstanding 508,745,253 514,185,453 510,729,277 517,637,952 Dilutive effect of share-based awards 3,912,404 5,635,858 4,903,538 6,849,558 Weighted-average diluted shares outstanding 512,657,657 519,821,311 515,632,815 524,487,510 Basic earnings per share $ (0.01) $ 0.86 $ 1.63 $ 2.20 Diluted earnings per share $ (0.01) $ 0.85 $ 1.62 $ 2.17 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Business segment table | The following tables set forth certain financial information for Sysco’s reportable business segments. 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 9,587,005 $ 10,105,283 $ 30,659,215 $ 30,591,799 International Foodservice Operations 2,508,642 2,757,891 8,311,081 8,569,439 SYGMA 1,364,111 1,537,312 4,266,998 4,695,376 Other 238,941 257,588 789,452 782,446 Total $ 13,698,699 $ 14,658,074 $ 44,026,746 $ 44,639,060 13-Week Period Ended 39-Week Period Ended Mar. 28, 2020 Mar. 30, 2019 Mar. 28, 2020 Mar. 30, 2019 Operating income: (In thousands) (In thousands) U.S. Foodservice Operations $ 528,025 $ 765,425 $ 2,158,211 $ 2,318,660 International Foodservice Operations (83,786) 10,145 5,895 62,000 SYGMA 10,301 11,668 27,732 17,213 Other (19,051) 6,376 486 22,429 Total segments 435,489 793,614 2,192,324 2,420,302 Corporate (375,215) (264,029) (911,239) (810,682) Total operating income 60,274 529,585 1,281,085 1,609,620 Interest expense 83,854 94,514 243,951 270,643 Other expense (income), net 5,200 4,120 7,505 15,449 Earnings (loss) before income taxes $ (28,780) $ 430,951 $ 1,029,629 $ 1,323,528 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Mar. 28, 2020 | |
Subsequent Events [Abstract] | |
Schedule of Long-term Debt Instruments | On February 13, 2020, Sysco issued senior notes (the Notes) totaling $1.0 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing February 15, 2030 (the 2030 Notes) (1) $ 500 2.40 % 99.647 % February 15, 2050 (the 2050 Notes) 500 3.30 99.811 (1) The net proceeds from this issuance have been and will be used to fund, in whole or in part, “Eligible Projects.” “Eligible Projects” are investments and expenditures made by Sysco in new projects and projects that have received funding in the three years prior to the issuance of the 2030 notes, which meet one or more of the following categories of eligible criteria: (1) renewable energy; (2) energy efficiency; (3) clean transportation; (4) waste reduction; (5) sustainable water and wastewater management; (6) environmentally sustainable management of living natural resources and land use/food security; (7) aquatic biodiversity conservation/food security; and (8) socioeconomic advancement and empowerment. On April 2, 2020, which is in Sysco's fourth quarter of fiscal 2020, Sysco issued senior notes (Senior Notes) totaling $4.0 billion in aggregate principal amount in order to enhance the company’s liquidity position in response to the COVID-19 pandemic. Details of the senior notes are as follows: Maturity Date Par Value Coupon Rate Pricing April 1, 2025 (the 5.650% Senior Notes due 2025) 750 5.65 % 99.931 % April 1, 2030 (the 5.950% Senior Notes due 2030) 1,250 5.95 99.792 April 1, 2040 (the 6.600% Senior Notes due 2040) 750 6.60 99.802 April 1, 2050 (the 6.600% Senior Notes due 2050) 1,250 6.60 99.767 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 2,240,807 | $ 513,460 | $ 521,621 | |
Restricted cash | 43,740 | 28,155 | ||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows | $ 2,284,547 | $ 532,245 | $ 549,776 | $ 715,844 |
Changes in Accounting (Details)
Changes in Accounting (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets, net | $ 620,556 | |
Present value of lease obligations | $ 646,121 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets, net | $ 647,200 | |
Present value of lease obligations | $ 657,900 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | Jun. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||||
Customer receivables included in accounts and notes receivable, net | $ 3,400,000 | $ 3,400,000 | $ 3,900,000 | ||
Revenue | 13,698,699 | $ 14,658,074 | 44,026,746 | $ 44,639,060 | |
Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,563,934 | 2,810,401 | 8,303,050 | 8,592,511 | |
Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,293,167 | 2,436,453 | 7,300,546 | 7,455,575 | |
Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,040,157 | 2,210,325 | 6,600,442 | 6,640,504 | |
Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,428,787 | 1,479,984 | 4,619,284 | 4,535,444 | |
Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,311,235 | 1,409,847 | 4,298,617 | 4,344,221 | |
Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,207,808 | 1,239,255 | 3,790,187 | 3,806,293 | |
Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 934,335 | 967,884 | 2,896,343 | 2,953,544 | |
Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 701,403 | 824,015 | 2,306,033 | 2,501,042 | |
Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 515,899 | 563,450 | 1,666,235 | 1,665,729 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 701,974 | 716,460 | 2,246,009 | 2,144,197 | |
U.S. Foodservice Operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 9,587,005 | 10,105,283 | 30,659,215 | 30,591,799 | |
U.S. Foodservice Operations | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,840,655 | 2,035,201 | 5,987,431 | 6,241,367 | |
U.S. Foodservice Operations | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,747,522 | 1,812,070 | 5,508,168 | 5,463,772 | |
U.S. Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,316,562 | 1,408,601 | 4,225,248 | 4,249,051 | |
U.S. Foodservice Operations | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,020,115 | 1,030,209 | 3,308,322 | 3,158,050 | |
U.S. Foodservice Operations | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 953,741 | 1,013,513 | 3,108,528 | 3,042,028 | |
U.S. Foodservice Operations | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 926,527 | 936,972 | 2,877,445 | 2,802,548 | |
U.S. Foodservice Operations | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 678,104 | 686,732 | 2,087,588 | 2,079,381 | |
U.S. Foodservice Operations | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 569,922 | 624,953 | 1,857,040 | 1,868,294 | |
U.S. Foodservice Operations | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 253,683 | 277,421 | 821,092 | 839,173 | |
U.S. Foodservice Operations | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 280,174 | 279,611 | 878,353 | 848,135 | |
International Foodservice Operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,508,642 | 2,757,891 | 8,311,081 | 8,569,439 | |
International Foodservice Operations | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 348,748 | 389,126 | 1,167,126 | 1,218,668 | |
International Foodservice Operations | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 516,841 | 554,653 | 1,687,732 | 1,777,733 | |
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 479,444 | 500,999 | 1,610,048 | 1,483,735 | |
International Foodservice Operations | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 272,854 | 304,315 | 886,256 | 929,025 | |
International Foodservice Operations | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 177,661 | 195,816 | 605,506 | 620,940 | |
International Foodservice Operations | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 223,614 | 245,436 | 734,824 | 825,000 | |
International Foodservice Operations | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 84,684 | 88,400 | 269,797 | 280,315 | |
International Foodservice Operations | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 98,212 | 166,103 | 367,486 | 550,953 | |
International Foodservice Operations | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 111,105 | 129,366 | 366,006 | 342,753 | |
International Foodservice Operations | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 195,479 | 183,677 | 616,300 | 540,317 | |
SYGMA | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,364,111 | 1,537,312 | 4,266,998 | 4,695,376 | |
SYGMA | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 374,531 | 386,074 | 1,148,493 | 1,132,476 | |
SYGMA | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 28,804 | 69,730 | 104,646 | 214,070 | |
SYGMA | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 244,151 | 300,725 | 765,146 | 907,718 | |
SYGMA | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 135,818 | 145,460 | 424,706 | 448,369 | |
SYGMA | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 179,833 | 200,518 | 584,583 | 681,253 | |
SYGMA | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 57,667 | 56,847 | 177,918 | 178,745 | |
SYGMA | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 155,487 | 178,465 | 490,235 | 548,977 | |
SYGMA | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 33,269 | 32,959 | 81,507 | 81,795 | |
SYGMA | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 132,430 | 136,876 | 415,215 | 420,414 | |
SYGMA | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 22,121 | 29,658 | 74,549 | 81,559 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 238,941 | 257,588 | 789,452 | 782,446 | |
Other | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 16,060 | 14,287 | 48,723 | 44,871 | |
Other | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 18,681 | 19,787 | 63,922 | 63,389 | |
Other | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 204,200 | $ 223,514 | $ 676,807 | $ 674,186 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Business Combinations [Abstract] | ||
Acquisition of businesses, net of cash acquired | $ 142,780 | $ 97,530 |
Contingent consideration maximum number of years (in years) | 3 years | |
Potential cash payout for contingent consideration arrangements | $ 30,500 | |
Amount of recorded earnout liabilities | $ 25,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total debt | $ 10,400,000 | $ 8,600,000 |
Carrying value of total debt | 10,900,000 | 8,200,000 |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,857,013 | 73,024 |
Other assets | 43,740 | 18,785 |
Total assets at fair value | 1,900,753 | 91,809 |
Recurring Fair Value Measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,656,813 | 72,824 |
Other assets | 43,740 | 18,785 |
Total assets at fair value | 1,700,553 | 91,609 |
Recurring Fair Value Measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 200,200 | 200 |
Other assets | 0 | 0 |
Total assets at fair value | 200,200 | 200 |
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) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 28, 2020 | Jun. 29, 2019 | |
Marketable Securities [Line Items] | ||
Amortized Cost Basis | $ 110,460 | $ 116,440 |
Gross Unrealized Gains | 4,655 | 3,579 |
Gross Unrealized Losses | (359) | 0 |
Fair Value | $ 114,756 | 120,019 |
Minimum | ||
Marketable Securities [Line Items] | ||
Debt securities maturities | 1 year | |
Maximum | ||
Marketable Securities [Line Items] | ||
Debt securities maturities | 10 years | |
Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | $ 11,976 | 12,006 |
Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 102,780 | 108,013 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 81,760 | 87,540 |
Gross Unrealized Gains | 885 | 1,734 |
Gross Unrealized Losses | (359) | 0 |
Fair Value | 82,286 | 89,274 |
Corporate bonds | Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 11,976 | 12,006 |
Corporate bonds | Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 70,310 | 77,268 |
Government bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 28,700 | 28,900 |
Gross Unrealized Gains | 3,770 | 1,845 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 32,470 | 30,745 |
Government bonds | Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 0 | 0 |
Government bonds | Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | $ 32,470 | $ 30,745 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | |
Credit Loss [Abstract] | |||
Provision for losses on receivables | $ 175,400 | $ 213,769 | $ 43,791 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 28, 2020 | Mar. 28, 2020 | Mar. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 28,176 | ||
Charged to costs and expenses | $ 175,400 | 213,769 | $ 43,791 |
Customer accounts written off, net of recoveries | 11,474 | ||
Other adjustments | (7,343) | ||
Balance at end of period | $ 246,076 | $ 246,076 |
Goodwill Impairment (Details)
Goodwill Impairment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020USD ($)reporting_unit | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Jun. 29, 2019USD ($) | |
Goodwill [Line Items] | ||||
Goodwill | $ 3,862,725 | $ 3,862,725 | $ 3,896,226 | |
Impairment charge | 68,725 | $ 0 | ||
Number of reporting units if estimates of fair value decreased | reporting_unit | 3 | |||
Minimum | ||||
Goodwill [Line Items] | ||||
Percentage decrease of estimated fair value | 14.00% | |||
Maximum | ||||
Goodwill [Line Items] | ||||
Percentage decrease of estimated fair value | 26.00% | |||
Cake | ||||
Goodwill [Line Items] | ||||
Impairment charge | $ 34,500 | |||
Pacific Star | ||||
Goodwill [Line Items] | ||||
Impairment charge | 34,200 | |||
Three European Reporting Units | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 511,700 | $ 511,700 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain from settlement of net investment hedge | $ 56.7 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Hedging of Debt Portfolio (Details) - 9 months ended Mar. 28, 2020 € in Millions, £ in Millions, kr in Millions, gal in Millions, $ in Millions | USD ($)gal | GBP (£) | EUR (€) | SEK (kr) |
Interest rate swap, October 2020 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | $ 750 | |||
Interest rate swap, July 2021 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | 500 | |||
Interest rate swaps, June 2023 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | € | € 500 | |||
Interest rate swap, March 2025 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | $ 500 | |||
Foreign Currency Interest Rate, Various Maturity Dates | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | £ 23 | kr 340 | ||
Hedging of foreign currency risk, GBP, July 2021 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | £ | £ 234 | |||
Hedging of foreign currency risk, Euro, June 2023 | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional Value | € | € 500 | |||
Fuel swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount (in gallons) | gal | 61 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Balance Sheet Disclosures (Details) - Hedging Instrument - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 |
Fair Value Hedging | Interest rate swap agreements | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | $ 977 | $ 0 |
Fair Value Hedging | Interest rate swap agreements | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 66,563 | 37,396 |
Fair Value Hedging | Interest rate swap agreements | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 0 | 9,285 |
Cash flow hedging | Fuel swaps | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 0 | 154 |
Cash flow hedging | Fuel swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 0 | 136 |
Cash flow hedging | Fuel swaps | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 37,468 | 6,537 |
Cash flow hedging | Fuel swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 3,905 | 239 |
Cash flow hedging | Foreign currency forwards | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 2,192 | 624 |
Cash flow hedging | Foreign currency forwards | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 302 | 162 |
Cash flow hedging | Cross-currency swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 16,991 | 8,592 |
Net investment hedging | Foreign currency swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 0 | 18,614 |
Net investment hedging | Foreign currency swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 0 | $ 9,973 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Location of Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Derivative [Line Items] | ||||
Interest expense | $ 83,854 | $ 94,514 | $ 243,951 | $ 270,643 |
Unrealized gain (loss) on hedged item in fair value hedge, interest expense | (14,562) | (17,051) | (43,679) | (47,834) |
Unrealized gain (loss) on hedged item in fair value hedge, change in fair value of debt | 38,380 | 24,606 | 39,348 | 49,330 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship, hedged items | (52,942) | (41,657) | (83,027) | (97,164) |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | $ 38,923 | $ 18,865 | $ 38,532 | $ 39,556 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Net Investment Hedging | $ 56,700 | |||
Hedging Instrument | Cash flow hedging | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Cash Flow Hedging | (22,844) | $ 2,032 | $ (29,506) | $ (13,125) |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income - Cash Flow Hedging | (2,069) | (947) | (5,062) | 8,937 |
Hedging Instrument | Cash flow hedging | Fuel swaps | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Cash Flow Hedging | (45,375) | 16,276 | (34,686) | (19,541) |
Hedging Instrument | Cash flow hedging | Fuel swaps | Operating expense | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income - Cash Flow Hedging | (2,069) | (961) | (8,688) | 8,432 |
Hedging Instrument | Cash flow hedging | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Cash Flow Hedging | 22,531 | (14,244) | 5,180 | 6,416 |
Hedging Instrument | Cash flow hedging | Foreign currency contracts | Cost of sales / Other income | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income - Cash Flow Hedging | 0 | 14 | 3,626 | 505 |
Hedging Instrument | Net investment hedging | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Net Investment Hedging | 65,491 | (4,837) | 61,504 | 41,634 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income - Net Investment Hedging | 0 | 0 | 0 | 0 |
Hedging Instrument | Net investment hedging | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Net Investment Hedging | 65,141 | (15,387) | 51,354 | 18,984 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income - Net Investment Hedging | 0 | 0 | 0 | 0 |
Hedging Instrument | Net investment hedging | Foreign denominated debt | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives - Net Investment Hedging | 350 | 10,550 | 10,150 | 22,650 |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income - Net Investment Hedging | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Location of Hedged Liabilities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Jun. 29, 2019 |
Current maturities of long-term debt | ||
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (749,853) | |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | (977) | |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | (1,563,222) | $ (2,311,636) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ (66,987) | $ (28,616) |
Debt (Details)
Debt (Details) - USD ($) | Feb. 13, 2020 | Mar. 28, 2020 |
Debt [Line Items] | ||
Maximum board-authorized aggregate commercial paper limit | $ 2,000,000,000 | |
Aggregate outstanding commercial paper and short-term debt minimum amount outstanding during period | 18,400,000 | |
Maximum amount outstanding | 1,800,000,000 | |
Line of Credit | Revolving Credit Facility | ||
Debt [Line Items] | ||
Long-term revolving credit facility | 2,000,000,000 | |
Borrowings outstanding under revolving credit facility | 1,700,000,000 | |
Commercial paper | ||
Debt [Line Items] | ||
Carrying value of total debt | $ 153,000,000 | |
Senior Notes | ||
Debt [Line Items] | ||
Principal amount of notes | $ 1,000,000,000 | |
Senior Notes | Senior Notes due 2030 | ||
Debt [Line Items] | ||
Principal amount of notes | $ 500,000,000 | |
Coupon Rate | 2.40% | |
Pricing (percentage of par) | 99.647% | |
Period prior to maturity for early redemption | 3 months | |
Senior Notes | Senior Notes due 2050 | ||
Debt [Line Items] | ||
Principal amount of notes | $ 500,000,000 | |
Coupon Rate | 3.30% | |
Pricing (percentage of par) | 99.811% | |
Period prior to maturity for early redemption | 6 months | |
Percent of principal due upon early repayment | 100.00% | |
Percent of principal due after applicable date | 100.00% |
Leases - Summary of Balance She
Leases - Summary of Balance Sheet Information (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Leases [Abstract] | |
Finance lease right-of-use assets | $ 89,914 |
Current finance lease liabilities | 29,436 |
Long-term finance lease liabilities | $ 65,409 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 28, 2020 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 32,290 | $ 94,632 |
Financing lease cost: | ||
Amortization of right-of-use assets | 8,657 | 27,613 |
Interest on lease obligations | 1,046 | 3,455 |
Variable lease cost | 2,608 | 9,055 |
Short-term lease cost | 2,285 | 8,455 |
Net lease cost | $ 46,886 | $ 143,210 |
Leases - Future Payments (Detai
Leases - Future Payments (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Operating Leases | |
Remainder of fiscal 2020 | $ 31,191 |
2021 | 118,673 |
2022 | 90,938 |
2023 | 75,258 |
2024 | 52,718 |
2025 | 46,088 |
Thereafter | 337,334 |
Total undiscounted lease obligations | 752,200 |
Less imputed interest | (106,079) |
Present value of lease obligations | 646,121 |
Finance Leases | |
Remainder of fiscal 2020 | 8,902 |
2021 | 32,333 |
2022 | 23,457 |
2023 | 16,782 |
2024 | 10,510 |
2025 | 6,077 |
Thereafter | 5,859 |
Total undiscounted lease obligations | 103,920 |
Less imputed interest | (9,075) |
Present value of lease obligations | $ 94,845 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended |
Mar. 28, 2020USD ($) | |
Cash Paid For Amounts Included In Measurement of Liabilities: | |
Operating cash flows for operating leases | $ 95,861 |
Operating cash flows for financing leases | 3,424 |
Financing cash flows for financing leases | 24,773 |
Supplemental Non-cash Information on Lease Liabilities: | |
Assets obtained in exchange for operating lease obligations | 61,646 |
Assets obtained in exchange for finance lease obligations | $ 11,797 |
Weighted-average remaining lease term (years): | |
Operating leases | 11 years 6 months 18 days |
Financing leases | 3 years 11 months 26 days |
Weighted-average discount rate: | |
Operating leases | 2.46% |
Financing leases | 4.60% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Numerator: | ||||
Net earnings (loss) | $ (3,297) | $ 440,083 | $ 833,894 | $ 1,138,505 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 508,745,253 | 514,185,453 | 510,729,277 | 517,637,952 |
Dilutive effect of share-based awards (in shares) | 3,912,404 | 5,635,858 | 4,903,538 | 6,849,558 |
Weighted-average diluted shares outstanding (in shares) | 512,657,657 | 519,821,311 | 515,632,815 | 524,487,510 |
Basic earnings per share (in dollars per share) | $ (0.01) | $ 0.86 | $ 1.63 | $ 2.20 |
Diluted earnings per share (in dollars per share) | $ (0.01) | $ 0.85 | $ 1.62 | $ 2.17 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 4,844,000 | 2,583,000 | 3,704,000 | 2,260,000 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 3,184,042 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 10.69 | |
Share-based compensation expense | $ 63,942 | $ 78,110 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 143,800 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 2 years 3 days | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 667,335 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 73.64 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 651,100 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 73.17 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 710,394 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 11.73 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Mar. 28, 2020 | Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 88.54% | (2.12%) | 19.01% | 13.98% |
Effective income tax expense (benefit) attributable to equity-based compensation | $ (6.8) | $ (11.3) | $ (34.3) | $ (33.2) |
Effective income tax expense (benefit) attributable to goodwill impairment | 17.7 | |||
Foreign tax credits | $ 95.1 | |||
Unrecognized tax benefits | 23.9 | 23.9 | ||
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 4.6 | $ 4.6 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Mar. 28, 2020USD ($)segment | Mar. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reporting segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 13,698,699 | $ 14,658,074 | $ 44,026,746 | $ 44,639,060 |
Operating income: | 60,274 | 529,585 | 1,281,085 | 1,609,620 |
Interest expense | 83,854 | 94,514 | 243,951 | 270,643 |
Other expense (income), net | 5,200 | 4,120 | 7,505 | 15,449 |
Earnings (loss) before income taxes | (28,780) | 430,951 | 1,029,629 | 1,323,528 |
U.S. Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 9,587,005 | 10,105,283 | 30,659,215 | 30,591,799 |
International Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,508,642 | 2,757,891 | 8,311,081 | 8,569,439 |
SYGMA | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,364,111 | 1,537,312 | 4,266,998 | 4,695,376 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 238,941 | 257,588 | 789,452 | 782,446 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 13,698,699 | 14,658,074 | 44,026,746 | 44,639,060 |
Operating income: | 435,489 | 793,614 | 2,192,324 | 2,420,302 |
Operating Segments | U.S. Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 9,587,005 | 10,105,283 | 30,659,215 | 30,591,799 |
Operating income: | 528,025 | 765,425 | 2,158,211 | 2,318,660 |
Operating Segments | International Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,508,642 | 2,757,891 | 8,311,081 | 8,569,439 |
Operating income: | (83,786) | 10,145 | 5,895 | 62,000 |
Operating Segments | SYGMA | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,364,111 | 1,537,312 | 4,266,998 | 4,695,376 |
Operating income: | 10,301 | 11,668 | 27,732 | 17,213 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 257,588 | 789,452 | 782,446 | |
Operating income: | (19,051) | 6,376 | 486 | 22,429 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | $ (375,215) | $ (264,029) | $ (911,239) | $ (810,682) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Apr. 02, 2020 | Dec. 31, 2020 | Feb. 13, 2020 |
Senior Notes | |||
Subsequent Event [Line Items] | |||
Principal amount of notes | $ 1,000,000,000 | ||
Subsequent Event | Senior Notes, Due 2020 | Forecast | |||
Subsequent Event [Line Items] | |||
Payoff of senior note | $ 750,000,000 | ||
Subsequent Event | Senior Notes | |||
Subsequent Event [Line Items] | |||
Principal amount of notes | $ 4,000,000,000 | ||
Percent of principal due upon early repayment | 100.00% | ||
Percent of principal due after applicable date | 100.00% | ||
Subsequent Event | Senior Notes | Senior Notes, 5.650%, Due 2025 | |||
Subsequent Event [Line Items] | |||
Principal amount of notes | $ 750,000,000 | ||
Coupon Rate | 5.65% | ||
Pricing (percentage of par) | 99.931% | ||
Period prior to maturity for early redemption | 1 month | ||
Subsequent Event | Senior Notes | Senior Notes, 5.950%, Due 2030 | |||
Subsequent Event [Line Items] | |||
Principal amount of notes | $ 1,250,000,000 | ||
Coupon Rate | 5.95% | ||
Pricing (percentage of par) | 99.792% | ||
Period prior to maturity for early redemption | 3 months | ||
Subsequent Event | Senior Notes | Senior Notes, 6.600%, Due 2040 | |||
Subsequent Event [Line Items] | |||
Principal amount of notes | $ 750,000,000 | ||
Coupon Rate | 6.60% | ||
Pricing (percentage of par) | 99.802% | ||
Period prior to maturity for early redemption | 6 months | ||
Subsequent Event | Senior Notes | Senior Notes, 6.600%, Due 2050 | |||
Subsequent Event [Line Items] | |||
Principal amount of notes | $ 1,250,000,000 | ||
Coupon Rate | 6.60% | ||
Pricing (percentage of par) | 99.767% | ||
Period prior to maturity for early redemption | 6 months |
Uncategorized Items - syy-20200
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,978,000 |
Retained Earnings, Unappropriated [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,978,000 |