COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Apr. 02, 2022 | Apr. 22, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 2, 2022 | |
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 | 77077-2099 | |
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 | 509,475,816 | |
Entity Central Index Key | 0000096021 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-02 | |
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 | Apr. 02, 2022 | Jul. 03, 2021 |
Current assets | ||
Cash and cash equivalents | $ 876,139 | $ 3,007,123 |
Accounts receivable, less allowances of $126,580 and $117,695 | 4,777,660 | 3,781,510 |
Inventories | 4,409,094 | 3,695,219 |
Prepaid expenses and other current assets | 303,212 | 240,956 |
Income tax receivable | 47,173 | 8,759 |
Total current assets | 10,413,278 | 10,733,567 |
Plant and equipment at cost, less accumulated depreciation | 4,345,098 | 4,326,063 |
Other long-term assets | ||
Goodwill | 4,703,777 | 3,944,139 |
Intangibles, less amortization | 1,042,878 | 746,073 |
Deferred income taxes | 393,302 | 352,523 |
Operating lease right-of-use assets, net | 787,347 | 709,163 |
Other assets | 637,995 | 602,011 |
Total other long-term assets | 7,565,299 | 6,353,909 |
Total assets | 22,323,675 | 21,413,539 |
Current liabilities | ||
Notes payable | 8,655 | 8,782 |
Accounts payable | 5,721,705 | 4,884,781 |
Accrued expenses | 2,011,597 | 1,814,837 |
Accrued income taxes | 19,045 | 22,644 |
Current operating lease liabilities | 113,157 | 102,659 |
Current maturities of long-term debt | 498,028 | 486,141 |
Total current liabilities | 8,372,187 | 7,319,844 |
Long-term liabilities | ||
Long-term debt | 10,608,840 | 10,588,184 |
Deferred income taxes | 195,910 | 147,066 |
Long-term operating lease liabilities | 701,929 | 634,481 |
Other long-term liabilities | 1,090,386 | 1,136,480 |
Total long-term liabilities | 12,597,065 | 12,506,211 |
Noncontrolling interest | 33,014 | 34,588 |
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 | 1,737,301 | 1,619,995 |
Retained earnings | 10,279,792 | 10,151,706 |
Accumulated other comprehensive loss | (1,299,004) | (1,148,764) |
Treasury stock at cost, 256,507,982 and 253,342,595 shares | (10,161,855) | (9,835,216) |
Total shareholders’ equity | 1,321,409 | 1,552,896 |
Total liabilities and shareholders’ equity | $ 22,323,675 | $ 21,413,539 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2022 | Jul. 03, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 128,189 | $ 117,695 |
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) | 256,507,982 | 253,342,595 |
CONSOLIDATED RESULTS OF OPERATI
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 16,902,139 | $ 11,824,589 | $ 49,678,888 | $ 35,160,950 |
Cost of sales | 13,888,745 | 9,701,921 | 40,802,636 | 28,719,979 |
Gross profit | 3,013,394 | 2,122,668 | 8,876,252 | 6,440,971 |
Operating expenses | 2,517,665 | 1,886,751 | 7,303,932 | 5,573,413 |
Operating income | 495,729 | 235,917 | 1,572,320 | 867,558 |
Interest expense | 124,018 | 145,773 | 495,131 | 438,988 |
Other income, net | (13,777) | (12,708) | (27,705) | (14,140) |
Earnings before income taxes | 385,488 | 102,852 | 1,104,894 | 442,710 |
Income taxes | 82,163 | 13,925 | 256,115 | 69,594 |
Net earnings | $ 303,325 | $ 88,927 | $ 848,779 | $ 373,116 |
Net earnings: | ||||
Basic earnings per share (in dollars per share) | $ 0.60 | $ 0.17 | $ 1.66 | $ 0.73 |
Diluted earnings per share (in dollars per share) | $ 0.59 | $ 0.17 | $ 1.65 | $ 0.73 |
Average shares outstanding (in shares) | 508,368,159 | 511,110,670 | 510,642,876 | 510,081,610 |
Diluted shares outstanding (in shares) | 512,238,523 | 514,585,129 | 514,198,780 | 512,688,895 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 303,325 | $ 88,927 | $ 848,779 | $ 373,116 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (96,582) | 9,805 | (210,646) | 345,452 |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,155 | 2,191 | 6,465 | 6,501 |
Change in net investment hedges | 12,041 | 9,388 | 30,568 | (22,539) |
Change in cash flow hedges | 18,375 | 9,135 | 11,845 | 8,503 |
Amortization of prior service cost | 74 | 137 | 222 | 411 |
Amortization of actuarial gain | 6,514 | 7,820 | 18,369 | 23,378 |
Change in marketable securities | (5,323) | (2,753) | (7,063) | (3,271) |
Total other comprehensive (loss) income | (62,746) | 35,723 | (150,240) | 358,435 |
Comprehensive income | $ 240,579 | $ 124,650 | $ 698,539 | $ 731,551 |
CHANGES IN CONSOLIDATED SHAREHO
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Jun. 27, 2020 | 765,174,900 | 256,915,825 | ||||||
Beginning balance at Jun. 27, 2020 | $ 1,158,613 | $ (2,068) | $ 765,175 | $ 1,506,901 | $ 10,563,008 | $ (2,068) | $ (1,710,881) | $ (9,965,590) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 373,116 | 373,116 | ||||||
Foreign currency translation adjustment | 345,452 | 345,452 | ||||||
Amortization of cash flow hedges, net of tax | 6,501 | 6,501 | ||||||
Change in cash flow hedges, net of tax | 8,503 | 8,503 | ||||||
Change in net investment hedges, net of tax | (22,539) | (22,539) | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 23,789 | 23,789 | ||||||
Change in marketable securities, net of tax | (3,271) | (3,271) | ||||||
Dividends declared | (692,390) | (692,390) | ||||||
Share-based compensation awards | 199,891 | 87,660 | $ 112,231 | |||||
Share-based compensation awards (in shares) | (3,098,812) | |||||||
Ending balance (in shares) at Mar. 27, 2021 | 765,174,900 | 253,817,013 | ||||||
Ending balance at Mar. 27, 2021 | 1,395,597 | $ 765,175 | 1,594,561 | 10,241,666 | (1,352,446) | $ (9,853,359) | ||
Beginning balance (in shares) at Dec. 26, 2020 | 765,174,900 | 255,176,469 | ||||||
Beginning balance at Dec. 26, 2020 | 1,426,799 | $ 765,175 | 1,565,255 | 10,383,493 | (1,388,169) | $ (9,898,955) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 88,927 | 88,927 | ||||||
Foreign currency translation adjustment | 9,805 | 9,805 | ||||||
Amortization of cash flow hedges, net of tax | 2,191 | 2,191 | ||||||
Change in cash flow hedges, net of tax | 9,135 | 9,135 | ||||||
Change in net investment hedges, net of tax | 9,388 | 9,388 | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 7,957 | 7,957 | ||||||
Change in marketable securities, net of tax | (2,753) | (2,753) | ||||||
Dividends declared | (230,754) | (230,754) | ||||||
Share-based compensation awards | 74,902 | 29,306 | $ 45,596 | |||||
Share-based compensation awards (in shares) | (1,359,456) | |||||||
Ending balance (in shares) at Mar. 27, 2021 | 765,174,900 | 253,817,013 | ||||||
Ending balance at Mar. 27, 2021 | 1,395,597 | $ 765,175 | 1,594,561 | 10,241,666 | (1,352,446) | $ (9,853,359) | ||
Beginning balance (in shares) at Jul. 03, 2021 | 765,174,900 | 253,342,595 | ||||||
Beginning balance at Jul. 03, 2021 | 1,552,896 | $ 765,175 | 1,619,995 | 10,151,706 | (1,148,764) | $ (9,835,216) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 848,779 | 848,779 | ||||||
Foreign currency translation adjustment | (210,646) | (210,646) | ||||||
Amortization of cash flow hedges, net of tax | 6,465 | 6,465 | ||||||
Change in cash flow hedges, net of tax | 11,845 | 11,845 | ||||||
Change in net investment hedges, net of tax | 30,568 | 30,568 | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 18,591 | 18,591 | ||||||
Change in marketable securities, net of tax | (7,063) | (7,063) | ||||||
Dividends declared | (720,693) | (720,693) | ||||||
Treasury stock purchases (in shares) | 5,679,298 | |||||||
Treasury stock purchases | (415,824) | $ (415,824) | ||||||
Increase in ownership interest in subsidiaries | (304) | (304) | ||||||
Share-based compensation awards | 206,795 | 117,610 | $ 89,185 | |||||
Share-based compensation awards (in shares) | (2,513,911) | |||||||
Ending balance (in shares) at Apr. 02, 2022 | 765,174,900 | 256,507,982 | ||||||
Ending balance at Apr. 02, 2022 | 1,321,409 | $ 765,175 | 1,737,301 | 10,279,792 | (1,299,004) | $ (10,161,855) | ||
Beginning balance (in shares) at Jan. 02, 2022 | 765,174,900 | 258,033,856 | ||||||
Beginning balance at Jan. 02, 2022 | 1,221,072 | $ 765,175 | 1,690,487 | 10,216,625 | (1,236,258) | $ (10,214,957) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 303,325 | 303,325 | ||||||
Foreign currency translation adjustment | (96,582) | (96,582) | ||||||
Amortization of cash flow hedges, net of tax | 2,155 | 2,155 | ||||||
Change in cash flow hedges, net of tax | 18,375 | 18,375 | ||||||
Change in net investment hedges, net of tax | 12,041 | 12,041 | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 6,588 | 6,588 | ||||||
Change in marketable securities, net of tax | (5,323) | (5,323) | ||||||
Dividends declared | (240,158) | (240,158) | ||||||
Share-based compensation awards | 99,916 | 46,814 | $ 53,102 | |||||
Share-based compensation awards (in shares) | (1,525,874) | |||||||
Ending balance (in shares) at Apr. 02, 2022 | 765,174,900 | 256,507,982 | ||||||
Ending balance at Apr. 02, 2022 | $ 1,321,409 | $ 765,175 | $ 1,737,301 | $ 10,279,792 | $ (1,299,004) | $ (10,161,855) |
CHANGES IN CONSOLIDATED SHARE_2
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.47 | $ 0.45 | $ 1.41 | $ 1.35 |
CONSOLIDATED CASH FLOWS (Unaudi
CONSOLIDATED CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 02, 2022 | Mar. 27, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 848,779 | $ 373,116 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Share-based compensation expense | 90,667 | 65,655 |
Depreciation and amortization | 571,607 | 542,471 |
Operating lease asset amortization | 82,415 | 81,414 |
Amortization of debt issuance and other debt-related costs | 16,160 | 19,485 |
Deferred income taxes | (110,058) | (161,824) |
Provision for losses on receivables | 572 | (137,670) |
Loss on extinguishment of debt | 115,603 | 0 |
Loss on sale of business | 0 | 22,834 |
Other non-cash items | (8,945) | (7,507) |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
Increase in receivables | (908,127) | (130,403) |
Increase in inventories | (644,799) | (82,525) |
Increase in prepaid expenses and other current assets | (25,391) | (50,833) |
Increase in accounts payable | 764,263 | 800,248 |
Increase in accrued expenses | 131,376 | 9,065 |
Decrease in operating lease liabilities | (99,343) | (94,228) |
(Decrease) increase in accrued income taxes | (42,013) | 167,693 |
(Increase) decrease in other assets | (6,595) | 23,345 |
(Decrease) increase in other long-term liabilities | (30,300) | 39,448 |
Net cash provided by operating activities | 745,871 | 1,479,784 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (327,535) | (251,167) |
Proceeds from sales of plant and equipment | 15,946 | 19,308 |
Acquisition of businesses, net of cash acquired | (1,281,835) | 0 |
Purchase of marketable securities | (19,318) | (44,687) |
Proceeds from sales of marketable securities | 16,648 | 30,773 |
Other investing activities | 12,773 | 0 |
Net cash used for investing activities | (1,583,321) | (245,773) |
Cash flows from financing activities: | ||
Bank and commercial paper borrowings, net | 0 | (411,200) |
Other debt borrowings including senior notes | 1,251,484 | 2,943 |
Other debt repayments | (38,370) | (1,489,431) |
Redemption premiums and repayments of senior notes | (1,395,668) | 0 |
Debt issuance costs | (15,547) | 0 |
Cash received from termination of interest rate swap agreements | 23,127 | 0 |
Proceeds from stock option exercises | 89,185 | 112,231 |
Stock repurchases | (415,824) | 0 |
Dividends paid | (719,865) | (689,251) |
Other financing activities | (19,456) | (15,024) |
Net cash used for financing activities | (1,240,934) | (2,489,732) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (13,623) | 85,183 |
Net decrease in cash, cash equivalents and restricted cash | (2,092,007) | (1,170,538) |
Cash, cash equivalents and restricted cash at beginning of period | 3,037,100 | 6,095,570 |
Cash, cash equivalents and restricted cash at end of period | 945,093 | 4,925,032 |
Cash paid during the period for: | ||
Interest | 456,996 | 386,753 |
Income taxes, net of refunds | $ 395,065 | $ 71,435 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Apr. 02, 2022 | |
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 (loss), 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 July 3, 2021. 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 reported within the consolidated balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows: Apr. 2, 2022 Mar. 27, 2021 (In thousands) Cash and cash equivalents $ 876,139 $ 4,895,723 Restricted cash (1) 68,954 29,309 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 945,093 $ 4,925,032 (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. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 9 Months Ended |
Apr. 02, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Government Assistance In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-10, “Government Assistance (Topic 832),” which requires business entities to make annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. For transactions in the scope of the new standard, business entities will need to provide information about the nature of the transaction, including significant terms and conditions, as well as the amounts and specific financial statement line items affected by the transaction. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The company is currently reviewing the provisions of the new standard. |
REVENUE
REVENUE | 9 Months Ended |
Apr. 02, 2022 | |
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. Customer receivables, which are included in accounts receivable, less allowances in the consolidated balance sheet, were $4.5 billion and $3.5 billion as of April 2, 2022 and July 3, 2021, respectively, with the increase reflective of the ongoing industry recovery and increasing customer sales following the COVID-19 pandemic. 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 April 2, 2022, 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 Apr. 2, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,295,514 $ 398,378 $ 484,082 $ 9 $ 3,177,983 Canned and dry products 2,194,073 593,156 203,184 77 2,990,490 Frozen fruits, vegetables, bakery and other 1,597,129 514,418 282,246 — 2,393,793 Poultry 1,425,320 232,456 243,927 — 1,901,703 Dairy products 1,230,092 308,260 138,414 — 1,676,766 Fresh produce 1,162,694 222,765 60,738 — 1,446,197 Paper and disposables 930,526 121,184 186,801 13,034 1,251,545 Seafood 630,833 100,312 42,667 — 773,812 Beverage products 264,087 116,590 124,058 19,218 523,953 Other (1) 275,895 226,570 28,720 234,712 765,897 Total Sales $ 12,006,163 $ 2,834,089 $ 1,794,837 $ 267,050 $ 16,902,139 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. 13-Week Period Ended Mar. 27, 2021 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 1,585,533 $ 227,350 $ 425,156 $ — $ 2,238,039 Canned and dry products 1,513,681 338,853 46,583 — 1,899,117 Frozen fruits, vegetables, bakery and other 1,141,919 337,477 277,766 — 1,757,162 Poultry 920,979 159,589 228,504 — 1,309,072 Dairy products 812,887 188,212 143,028 — 1,144,127 Paper and disposables 752,996 93,205 189,337 10,122 1,045,660 Fresh produce 715,406 126,965 68,074 — 910,445 Seafood 507,446 55,873 36,553 — 599,872 Beverage products 186,211 56,963 145,704 11,080 399,958 Other (1) 223,183 138,639 19,990 139,325 521,137 Total Sales $ 8,360,241 $ 1,723,126 $ 1,580,695 $ 160,527 $ 11,824,589 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Apr. 2, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 7,143,738 $ 1,211,781 $ 1,471,877 $ 9 $ 9,827,405 Canned and dry products 6,358,629 1,735,674 496,396 107 8,590,806 Frozen fruits, vegetables, bakery and other 4,606,909 1,550,944 847,579 — 7,005,432 Poultry 4,127,709 714,412 696,633 — 5,538,754 Dairy products 3,445,668 902,752 418,373 — 4,766,793 Fresh produce 3,187,379 656,552 191,349 — 4,035,280 Paper and disposables 2,736,429 355,559 568,054 41,325 3,701,367 Seafood 1,909,559 332,114 109,871 — 2,351,544 Beverage products 766,829 340,966 393,089 60,133 1,561,017 Other (1) 824,432 734,854 76,972 664,232 2,300,490 Total Sales $ 35,107,281 $ 8,535,608 $ 5,270,193 $ 765,806 $ 49,678,888 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Mar. 27, 2021 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 4,583,392 $ 809,339 $ 1,256,208 $ — $ 6,648,939 Canned and dry products 4,325,880 1,113,600 109,023 11 5,548,514 Frozen fruits, vegetables, bakery and other 3,269,395 1,158,748 809,975 — 5,238,118 Poultry 2,600,235 513,184 662,759 — 3,776,178 Dairy products 2,467,961 629,376 433,023 — 3,530,360 Paper and disposables 2,149,596 276,819 550,605 30,435 3,007,455 Fresh produce 2,123,214 443,462 199,584 — 2,766,260 Seafood 1,398,098 213,874 88,036 — 1,700,008 Beverage products 535,130 207,851 436,503 33,018 1,212,502 Other (1) 753,016 488,355 79,528 411,717 1,732,616 Total Sales $ 24,205,917 $ 5,854,608 $ 4,625,244 $ 475,181 $ 35,160,950 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our former Sysco Labs business, and other janitorial products, medical supplies and smallwares. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Apr. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS During the first 39 weeks of fiscal 2022, the company paid cash of $1.3 billion for several acquisitions. 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 April 2, 2022, aggregate contingent consideration outstanding was $89.5 million, of which $87.0 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 fair value measurement. Greco and Sons On August 12, 2021, Sysco consummated its acquisition of Greco and Sons (Greco), a leading independent Italian specialty distributor in the United States, operating out of 10 distribution centers and servicing 22 geographies nationwide. Greco imports and distributes a full line of food and non-food products and manufactures specialty meat products. The acquisition also includes Bellissimo Foods Company, which distributes a broad selection of Italian and Mediterranean ingredients, including a proprietary branded line of products that are sold exclusively through the Bellissimo Foods Company distribution network, serving independent pizza and Italian restaurants. The purpose of the acquisition is to strengthen Sysco’s business within the Italian foodservice sector. The purchase price was allocated based on the company’s preliminary estimated fair value of the assets acquired and liabilities assumed, as follows: Preliminary Purchase Price Allocation (In millions) Accounts receivable, net $ 69 Inventories 79 Plant and equipment 24 Other assets 151 Goodwill and other intangibles (1) 717 Total assets 1,040 Accounts payable (73) Accrued expenses (17) Deferred tax liabilities (35) Other liabilities (154) Total consideration $ 761 (1) The excess purchase price of $717.1 million was assigned to goodwill and intangibles, a portion of which is deductible for income tax purposes. Goodwill of $491.6 million has been assigned to the U.S. Foodservice Operations reportable segment. Intangible assets include customer relationships of $116.0 million with a weighted average life of 8 years and trade names of $109.5 million with a weighted average life of 15 years. Amortization expense is being recognized on a straight-line basis and was $14.7 million for the first 39 weeks of fiscal 2022. The assets, liabilities and operating results of Greco are reflected in the company’s consolidated financial statements in accordance with Accounting Standard Codification Topic No. 805, Business Combinations, commencing from the acquisition date. In certain circumstances, the purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision until Sysco receives final information and other analysis during the measurement period. These include items such as finalizing valuation of acquired tangible and intangible assets and related tax attributes. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSSysco’s policy is to invest in only high-quality investments. The fair value of the company’s cash deposits and money market funds included in cash equivalents are valued using inputs that are considered a Level 1 measurement. Other cash equivalents, such as time deposits and highly liquid instruments with original maturities of three months or less, are valued using inputs that are considered a Level 2 measurement. The fair value of the company’s marketable securities are all measured using inputs that are considered a Level 2 measurement, as they rely on quoted prices in markets that are not actively traded or observable inputs over the full term of the asset. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 6, “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 7, “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of April 2, 2022 and July 3, 2021: Assets Measured at Fair Value as of Apr. 2, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 862,187 $ 3 $ — $ 862,190 Other assets (1) 68,954 — — 68,954 Total assets at fair value $ 931,141 $ 3 $ — $ 931,144 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jul. 3, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 2,805,961 $ 3 $ — $ 2,805,964 Other assets (1) 29,977 — — 29,977 Total assets at fair value $ 2,835,938 $ 3 $ — $ 2,835,941 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Apr. 02, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES Sysco 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 any portion of a security’s unrealized loss attributable to non-credit losses are recorded in accumulated other comprehensive loss. There were no significant credit losses recognized in the first 39 weeks of fiscal 2022. The following table presents the company’s available-for-sale marketable securities as of April 2, 2022 and July 3, 2021: Apr. 2, 2022 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 $ 95,571 $ 265 $ (4,248) $ 91,588 $ 3,025 $ 88,563 Government bonds 30,141 760 (124) 30,777 — 30,777 Total marketable securities $ 125,712 $ 1,025 $ (4,372) $ 122,365 $ 3,025 $ 119,340 Jul. 3, 2021 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 $ 92,547 $ 2,491 $ (456) $ 94,582 $ 11,570 $ 83,012 Government bonds 31,552 3,556 — 35,108 — 35,108 Total marketable securities $ 124,099 $ 6,047 $ (456) $ 129,690 $ 11,570 $ 118,120 As of April 2, 2022, the balance of available-for-sale securities by contractual maturity is shown in the following table. Within the table, maturities of fixed income securities have been allocated based upon timing of estimated cash flows. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Apr. 2, 2022 (In thousands) Due in one year or less $ 3,025 Due after one year through five years 83,747 Due after five years through ten years 35,593 Total $ 122,365 There were no significant realized gains or losses in marketable securities in the first 39 weeks of fiscal 2022. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Apr. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTSSysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk. Hedging of interest rate risk Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In the second quarter of fiscal 2022, Sysco settled some of its previously held interest rate swap contracts for proceeds of $23.1 million, which had a notional value of $500 million, due to the redemption of the entire $500 million aggregate principal amount of Sysco’s outstanding 3.550% Senior Notes due 2025 in December 2021. Hedging of foreign currency risk The company uses euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, U.S. dollar, Polish zloty and Danish krone. These inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. The company enters into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases. Hedging of fuel price risk Sysco 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 April 2, 2022 are presented below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk June 2023 Euro 500 Hedging of foreign currency risk Various (April 2022 to August 2022) Swedish Krona 272 Various (April 2022 to December 2022) British Pound Sterling 24 June 2023 Euro 500 Hedging of fuel risk Various (April 2022 to July 2023) Gallons 58 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of April 2, 2022 and July 3, 2021 are as follows: Derivative Fair Value Balance Sheet location Apr. 2, 2022 Jul. 3, 2021 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 376 $ 43,217 Cash Flow Hedges: Fuel swaps Other current assets $ 29,682 $ 16,732 Foreign currency forwards Other current assets 59 42 Fuel swaps Other assets 3,112 — Fuel swaps Other current liabilities 116 — Foreign currency forwards Other current liabilities 372 46 Fuel swaps Other long-term liabilities 38 — 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 Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 (In thousands) 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 $ 124,018 $ 145,773 $ 495,131 $ 438,988 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ 1,656 $ 2,097 $ 29,011 $ (11,694) Derivatives designated as hedging instruments (4,628) (6,239) (52,491) (3,078) The gains and losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above consist of the following components for each of the periods presented: 13-Week Period Ended 39-Week Period Ended Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 (In thousands) Interest expense $ (1,938) $ (9,737) $ (13,830) $ (34,306) Decrease in fair value of debt (3,594) (11,834) (42,841) (22,612) Hedged items $ 1,656 $ 2,097 $ 29,011 $ (11,694) 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 April 2, 2022 and March 27, 2021, presented on a pretax basis, are as follows: 13-Week Period Ended Apr. 2, 2022 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 $ 24,097 Operating expense $ 9,302 Foreign currency contracts (58) Cost of sales / Other income — Total $ 24,039 $ 9,302 Derivatives in net investment hedging relationships: Foreign denominated debt $ 16,055 N/A $ — Total $ 16,055 $ — 13-Week Period Ended Mar. 27, 2021 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 $ 12,143 Operating expense $ (8,745) Foreign currency contracts (100) Cost of sales / Other income — Total $ 12,043 $ (8,745) Derivatives in net investment hedging relationships: Foreign denominated debt $ 17,901 N/A $ — Total $ 17,901 $ — 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 April 2, 2022 and March 27, 2021, presented on a pretax basis, are as follows: 39-Week Period Ended Apr. 2, 2022 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 $ 16,024 Operating expense $ 26,882 Foreign currency contracts (492) Cost of sales / Other income — Total $ 15,532 $ 26,882 Derivatives in net investment hedging relationships: Foreign denominated debt $ 40,757 N/A $ — Total $ 40,757 $ — 39-Week Period Ended Mar. 27, 2021 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 $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of April 2, 2022 are as follows: Apr. 2, 2022 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 $ (568,436) $ (376) The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 3, 2021 are as follows: Jul. 3, 2021 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 $ (1,065,364) $ (43,217) |
DEBT
DEBT | 9 Months Ended |
Apr. 02, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of April 2, 2022, the company had a $2.0 billion long-term revolving credit facility ($2.0 billion facility) that would have expired on June 28, 2024. As of April 2, 2022, there were no borrowings outstanding under this facility. This credit facility was amended in the first quarter of fiscal 2022, to (a) eliminate the covenant that had restricted (i) increases to the company’s regular quarterly dividend and (ii) share repurchases, in each case, until the earlier of September 2022 or the date on which Sysco has achieved a certain ratio of consolidated EBITDA to consolidated interest expense, and (b) adjusted the covenant requiring Sysco to maintain a certain ratio of consolidated EBITDA to consolidated interest expense. On April 29, 2022, Sysco entered into a new long-term revolving credit facility to replace the $2.0 billion facility. The new facility includes aggregate commitments of the lenders thereunder of $3.0 billion, with an option to increase such commitments to $4.0 billion. The new facility includes a covenant requiring Sysco to maintain a ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 over four consecutive fiscal quarters. This ratio is lower than the previous covenant that was included in the $2.0 billion facility. The new revolving credit facility expires on April 29, 2027. Sysco has a U.S. commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. As of April 2, 2022, there were no commercial paper issuances outstanding under this program. During the first 39 weeks of fiscal 2022, there were no borrowing activities under our commercial paper programs, $2.0 billion facility or short-term bank notes. In December 2021, the company accessed favorable credit markets and undertook a refinancing of previously outstanding senior notes to increase its weighted-average maturity profile and lower its average interest rates on the company’s debt portfolio. As part of the refinancing, on December 14, 2021, Sysco issued senior notes (the “Notes”) totaling $1.25 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing December 14, 2031 (the 2031 Notes) $ 450 2.45 % 99.578 % December 14, 2051 (the 2051 Notes) 800 3.15 99.308 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 in arrears on June 14 and December 14, beginning June 14, 2022. 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 2031 Notes before the date that is three months prior to the maturity date, or (ii) the 2051 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 that would be due if such senior notes matured on the applicable date described above. 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. On December 14, 2021, Sysco redeemed $1.25 billion in combined aggregate principal amount of its 5.650% Senior Notes due 2025 (the “5.650% Notes”) and 3.550% Senior Notes due 2025 (the “3.550% Notes”). Sysco used the net proceeds from the offering of the Notes, together with cash on hand, to fund the redemption of all of Sysco’s outstanding 5.650% Notes and 3.550% Notes. The redemption price for the senior notes of each such series that were redeemed was the principal amount of such senior notes plus a “make-whole” amount determined in accordance with the indenture governing such senior notes and accrued and unpaid interest to the applicable redemption date. The redemption was considered to be a debt extinguishment. As such, Sysco recognized a loss on extinguishment of debt of $115.6 million , which is recorded as a component of interest expense in the accompanying consolidated results of operations. Of this loss, $132.7 million was attributable to the purchase premium paid to the noteholders, and $6.0 million was attributable to the write-off of unamortized debt issuance costs and debt discount associated with the redeemed notes, offset by a gain of $23.1 million attributable to the termination of interest rate swap agreements that were serving as a fair value hedge. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Apr. 02, 2022 | |
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 Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 303,325 $ 88,927 $ 848,779 $ 373,116 Denominator: Weighted-average basic shares outstanding 508,368,159 511,110,670 510,642,876 510,081,610 Dilutive effect of share-based awards 3,870,364 3,474,459 3,555,904 2,607,285 Weighted-average diluted shares outstanding 512,238,523 514,585,129 514,198,780 512,688,895 Basic earnings per share $ 0.60 $ 0.17 $ 1.66 $ 0.73 Diluted earnings per share $ 0.59 $ 0.17 $ 1.65 $ 0.73 The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximatel y 1,105,000 and 1,893,000 for the third quarter of fiscal 2022 and fiscal 2021, 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 approximatel y 1,731,000 |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Apr. 02, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOMEComprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $240.6 million and $124.7 million for the third quarter of fiscal 2022 and fiscal 2021, respectively. Comprehensive income was $698.5 million and $731.6 million for the first 39 weeks of fiscal 2022 and fiscal 2021, 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 Apr. 2, 2022 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 $ 99 $ 25 $ 74 Amortization of actuarial loss, net Other expense, net 8,668 2,154 6,514 Total reclassification adjustments 8,767 2,179 6,588 Foreign currency translation: Foreign currency translation adjustment N/A (96,582) — (96,582) Marketable securities: Change in marketable securities (1) N/A (6,738) (1,415) (5,323) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge Operating expenses (2) 24,039 5,664 18,375 Change in net investment hedge N/A 16,055 4,014 12,041 Total other comprehensive income before reclassification adjustments 40,094 9,678 30,416 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,874 719 2,155 Total other comprehensive income (loss) $ (51,585) $ 11,161 $ (62,746) (1) Realized gains or losses on marketa ble 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 third quarter of fiscal 2022. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Mar. 27, 2021 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 $ 183 $ 46 $ 137 Amortization of actuarial loss, net Other expense, net 10,421 2,601 7,820 Total reclassification adjustments 10,604 2,647 7,957 Foreign currency translation: Foreign currency translation adjustment N/A 9,805 — 9,805 Marketable securities: Change in marketable securities (1) N/A (3,485) (732) (2,753) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge Operating expenses (2) 12,043 2,908 9,135 Change in net investment hedges N/A 17,901 8,513 9,388 Total other comprehensive income before reclassification adjustments 29,944 11,421 18,523 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,921 730 2,191 Total other comprehensive income $ 49,789 $ 14,066 $ 35,723 (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 third quarter of fiscal 2021 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Apr. 2, 2022 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 $ 297 $ 75 $ 222 Amortization of actuarial loss, net Other expense, net 24,555 6,186 18,369 Total reclassification adjustments 24,852 6,261 18,591 Foreign currency translation: Other comprehensive income (loss) before reclassification adjustments: Foreign currency translation adjustment N/A (210,646) — (210,646) Marketable securities: Change in marketable securities (1) N/A (8,939) (1,876) (7,063) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) 15,532 3,687 11,845 Change in net investment hedges N/A 40,757 10,189 30,568 Total other comprehensive income before reclassification adjustments 56,289 13,876 42,413 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,622 2,157 6,465 Total other comprehensive income (loss) $ (129,822) $ 20,418 $ (150,240) (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 2022 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 27, 2021 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 $ 549 $ 138 $ 411 Amortization of actuarial loss, net Other expense, net 31,161 7,783 23,378 Total reclassification adjustments 31,710 7,921 23,789 Foreign currency translation: Foreign currency translation adjustment N/A 345,452 — 345,452 Marketable securities: Change in marketable securities (1) N/A (4,140) (869) (3,271) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge (3) Operating expenses (2) 11,554 3,051 8,503 Change in net investment hedges N/A (30,052) (7,513) (22,539) Total other comprehensive income before reclassification adjustments (18,498) (4,462) (14,036) Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,669 2,168 6,501 Total other comprehensive (loss) income $ 363,193 $ 4,758 $ 358,435 (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 2021 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in cash flow hedges includes the termination of some cash flow hedges. The following tables provide a summary of the changes in accumulated other comprehensive (loss) income f or the periods presented: 39-Week Period Ended Apr. 2, 2022 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jul. 3, 2021 $ (1,061,991) $ (40,092) $ (51,096) $ 4,415 $ (1,148,764) Equity adjustment from foreign currency translation — (210,646) — — (210,646) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 30,568 — 30,568 Change in cash flow hedge — — 11,845 — 11,845 Amortization of unrecognized prior service cost 222 — — — 222 Amortization of unrecognized net actuarial losses 18,369 — — — 18,369 Change in marketable securities — — — (7,063) (7,063) Balance as of Apr. 2, 2022 $ (1,043,400) $ (250,738) $ (2,218) $ (2,648) $ (1,299,004) 39-Week Period Ended Mar. 27, 2021 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jun. 27, 2020 $ (1,265,714) $ (402,384) $ (49,878) $ 7,095 $ (1,710,881) Equity adjustment from foreign currency translation — 345,452 — — 345,452 Amortization of cash flow hedges — — 6,501 — 6,501 Change in net investment hedges — — (22,539) — (22,539) Change in cash flow hedge — — 8,503 — 8,503 Amortization of unrecognized prior service cost 411 — — — 411 Amortization of unrecognized net actuarial losses 23,378 — — — 23,378 Change in marketable securities — — — (3,271) (3,271) Balance as of Mar. 27, 2021 $ (1,241,925) $ (56,932) $ (57,413) $ 3,824 $ (1,352,446) |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Apr. 02, 2022 | |
Share-based Payment Arrangement [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 2022, options to purchase 1,224,150 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 2022 was $17.39. In the first 39 weeks of fiscal 2022, employees were granted 473,355 performance share units (PSUs). 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 2022 was $76.75. The PSUs will convert into shares of Sysco common stock at the end of the three-year performance period based on actual performance targets achieved, as well as the market-based return of Sysco’s common stock relative to that of each company within the S&P 500 index. In the first 39 weeks of fiscal 2022, employees were granted 736,709 restricted stock units. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2022 was $80.24. Employee Stock Purchase Plan Plan participants purchased 661,656 shares of common stock under the ESPP during the first 39 weeks of fiscal 2022. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $11.92 during the first 39 weeks of fiscal 2022. 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 $90.7 million and $65.7 million for the first 39 weeks of fiscal 2022 and fiscal 2021, respectively. As of April 2, 2022, there was $144.2 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 1.97 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 02, 2022 | |
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 2022 were 21.31% and 23.18%, respectively. As compared to the company’s statutory tax rate, the higher effective tax rate for the third quarter and first 39 weeks of fiscal 2022 was favorably impacted by the excess tax benefits of equity-based compensation that totaled $7.9 million and $10.8 million, respectively, and the impact of non-taxable corporate-owned life insurance policies that totaled $0.4 million and $1.4 million, respectively. For the first 39 weeks of fiscal 2022, these were partially offset by the increase in our reserve for uncertain tax positions of $12.0 million recognized in the first quarter of fiscal 2022. The effective tax rates for the third quarter and first 39 weeks of fiscal 2021 were 13.54% and 15.72%, respectively. As compared to the company’s statutory tax rate, the lower effective tax rate for the third quarter and first 39 weeks of fiscal 2021 was impacted by the favorable impact of excess tax benefits of equity-based compensation that totaled $6.0 million and $12.6 million, respectively. The first 39 weeks of fiscal 2021 were also favorably impacted by the $7.6 million tax benefit attributable to the sale of the stock of Cake Corporation and the impact of changes in tax law in the U.K. of $5.5 million, both of which occurred in the first quarter of fiscal 2021. Uncertain Tax Positions As of April 2, 2022, the gross amount of unrecognized tax benefit and related accrued interest was $32.4 million and $5.4 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 |
Apr. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings Sysco is engaged in various legal proceedings that have arisen but have not been fully adjudicated. The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When probable and reasonably estimable, the losses have been accrued. Although the final results of legal proceedings cannot be predicted with certainty, based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended |
Apr. 02, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Sysco distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Our primary operations are located in North America and Europe. Under the accounting provisions related to disclosures about segments of an enterprise, we have aggregated certain operating segments into three reportable segments. “Other” financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds. • U.S. Foodservice Operations – includes (a) the company’s U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, produce, specialty Italian, specialty imports and a wide variety of non-food products and (b) our U.S. Specialty operations, which include our FreshPoint fresh production distribution business, our Specialty Meats and Seafood Group specialty protein operations and a number of small specialty businesses that are not material to the operations of Sysco; • International Foodservice Operations – includes operations in the Americas (primarily outside of the U.S. and Europe), which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the U.K., France, Ireland and Sweden; • SYGMA – our U.S. customized distribution operations serving quick-service chain restaurant customer locations; and • Other – primarily our hotel supply operations, Guest Worldwide. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Our Global Support Center generally includes all expenses of the corporate office and Sysco’s shared service operations. These also include all U.S. 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 Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 12,006,163 $ 8,360,241 $ 35,107,281 $ 24,205,917 International Foodservice Operations 2,834,089 1,723,126 8,535,608 5,854,608 SYGMA 1,794,837 1,580,695 5,270,193 4,625,244 Other 267,050 160,527 765,806 475,181 Total $ 16,902,139 $ 11,824,589 $ 49,678,888 $ 35,160,950 13-Week Period Ended 39-Week Period Ended Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 Operating income (loss): (In thousands) (In thousands) U.S. Foodservice Operations $ 746,467 $ 545,502 $ 2,220,812 $ 1,619,162 International Foodservice Operations 7,760 (121,487) 55,181 (201,973) SYGMA 4,362 12,937 (4,814) 35,957 Other (3,972) 5,884 2,667 4,861 Total segments 754,617 442,836 2,273,846 1,458,007 Global Support Center (258,888) (206,919) (701,526) (590,449) Total operating income 495,729 235,917 1,572,320 867,558 Interest expense 124,018 145,773 495,131 438,988 Other (income) expense, net (13,777) (12,708) (27,705) (14,140) Earnings before income taxes $ 385,488 $ 102,852 $ 1,104,894 $ 442,710 |
NEW ACCOUNTING STANDARDS (Polic
NEW ACCOUNTING STANDARDS (Policies) | 9 Months Ended |
Apr. 02, 2022 | |
Accounting Policies [Abstract] | |
Government Assistance | Government Assistance In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-10, “Government Assistance (Topic 832),” which requires business entities to make annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. For transactions in the scope of the new standard, business entities will need to provide information about the nature of the transaction, including significant terms and conditions, as well as the amounts and specific financial statement line items affected by the transaction. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The company is currently reviewing the provisions of the new standard. |
Fair Value Measurements | The fair value of the company’s marketable securities are all measured using inputs that are considered a Level 2 measurement, as they rely on quoted prices in markets that are not actively traded or observable inputs over the full term of the asset. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 6, “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 7, “Derivative Financial Instruments.” |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
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 reported within the consolidated balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows: Apr. 2, 2022 Mar. 27, 2021 (In thousands) Cash and cash equivalents $ 876,139 $ 4,895,723 Restricted cash (1) 68,954 29,309 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 945,093 $ 4,925,032 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in each consolidated balance sheet. |
Schedule of Restrictions on Cash and Cash Equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows: Apr. 2, 2022 Mar. 27, 2021 (In thousands) Cash and cash equivalents $ 876,139 $ 4,895,723 Restricted cash (1) 68,954 29,309 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 945,093 $ 4,925,032 (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 |
Apr. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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 Apr. 2, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,295,514 $ 398,378 $ 484,082 $ 9 $ 3,177,983 Canned and dry products 2,194,073 593,156 203,184 77 2,990,490 Frozen fruits, vegetables, bakery and other 1,597,129 514,418 282,246 — 2,393,793 Poultry 1,425,320 232,456 243,927 — 1,901,703 Dairy products 1,230,092 308,260 138,414 — 1,676,766 Fresh produce 1,162,694 222,765 60,738 — 1,446,197 Paper and disposables 930,526 121,184 186,801 13,034 1,251,545 Seafood 630,833 100,312 42,667 — 773,812 Beverage products 264,087 116,590 124,058 19,218 523,953 Other (1) 275,895 226,570 28,720 234,712 765,897 Total Sales $ 12,006,163 $ 2,834,089 $ 1,794,837 $ 267,050 $ 16,902,139 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. 13-Week Period Ended Mar. 27, 2021 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 1,585,533 $ 227,350 $ 425,156 $ — $ 2,238,039 Canned and dry products 1,513,681 338,853 46,583 — 1,899,117 Frozen fruits, vegetables, bakery and other 1,141,919 337,477 277,766 — 1,757,162 Poultry 920,979 159,589 228,504 — 1,309,072 Dairy products 812,887 188,212 143,028 — 1,144,127 Paper and disposables 752,996 93,205 189,337 10,122 1,045,660 Fresh produce 715,406 126,965 68,074 — 910,445 Seafood 507,446 55,873 36,553 — 599,872 Beverage products 186,211 56,963 145,704 11,080 399,958 Other (1) 223,183 138,639 19,990 139,325 521,137 Total Sales $ 8,360,241 $ 1,723,126 $ 1,580,695 $ 160,527 $ 11,824,589 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Apr. 2, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 7,143,738 $ 1,211,781 $ 1,471,877 $ 9 $ 9,827,405 Canned and dry products 6,358,629 1,735,674 496,396 107 8,590,806 Frozen fruits, vegetables, bakery and other 4,606,909 1,550,944 847,579 — 7,005,432 Poultry 4,127,709 714,412 696,633 — 5,538,754 Dairy products 3,445,668 902,752 418,373 — 4,766,793 Fresh produce 3,187,379 656,552 191,349 — 4,035,280 Paper and disposables 2,736,429 355,559 568,054 41,325 3,701,367 Seafood 1,909,559 332,114 109,871 — 2,351,544 Beverage products 766,829 340,966 393,089 60,133 1,561,017 Other (1) 824,432 734,854 76,972 664,232 2,300,490 Total Sales $ 35,107,281 $ 8,535,608 $ 5,270,193 $ 765,806 $ 49,678,888 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Mar. 27, 2021 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 4,583,392 $ 809,339 $ 1,256,208 $ — $ 6,648,939 Canned and dry products 4,325,880 1,113,600 109,023 11 5,548,514 Frozen fruits, vegetables, bakery and other 3,269,395 1,158,748 809,975 — 5,238,118 Poultry 2,600,235 513,184 662,759 — 3,776,178 Dairy products 2,467,961 629,376 433,023 — 3,530,360 Paper and disposables 2,149,596 276,819 550,605 30,435 3,007,455 Fresh produce 2,123,214 443,462 199,584 — 2,766,260 Seafood 1,398,098 213,874 88,036 — 1,700,008 Beverage products 535,130 207,851 436,503 33,018 1,212,502 Other (1) 753,016 488,355 79,528 411,717 1,732,616 Total Sales $ 24,205,917 $ 5,854,608 $ 4,625,244 $ 475,181 $ 35,160,950 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our former Sysco Labs business, and other janitorial products, medical supplies and smallwares. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price was allocated based on the company’s preliminary estimated fair value of the assets acquired and liabilities assumed, as follows: Preliminary Purchase Price Allocation (In millions) Accounts receivable, net $ 69 Inventories 79 Plant and equipment 24 Other assets 151 Goodwill and other intangibles (1) 717 Total assets 1,040 Accounts payable (73) Accrued expenses (17) Deferred tax liabilities (35) Other liabilities (154) Total consideration $ 761 (1) The excess purchase price of $717.1 million was assigned to goodwill and intangibles, a portion of which is deductible for income tax purposes. Goodwill of $491.6 million has been assigned to the U.S. Foodservice Operations reportable segment. Intangible assets include customer relationships of $116.0 million with a weighted average life of 8 years and trade names of $109.5 million with a weighted average life of 15 years. Amortization expense is being recognized on a straight-line basis and was $14.7 million for the first 39 weeks of fiscal 2022. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 April 2, 2022 and July 3, 2021: Assets Measured at Fair Value as of Apr. 2, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 862,187 $ 3 $ — $ 862,190 Other assets (1) 68,954 — — 68,954 Total assets at fair value $ 931,141 $ 3 $ — $ 931,144 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jul. 3, 2021 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 2,805,961 $ 3 $ — $ 2,805,964 Other assets (1) 29,977 — — 29,977 Total assets at fair value $ 2,835,938 $ 3 $ — $ 2,835,941 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Marketable Securities | The following table presents the company’s available-for-sale marketable securities as of April 2, 2022 and July 3, 2021: Apr. 2, 2022 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 $ 95,571 $ 265 $ (4,248) $ 91,588 $ 3,025 $ 88,563 Government bonds 30,141 760 (124) 30,777 — 30,777 Total marketable securities $ 125,712 $ 1,025 $ (4,372) $ 122,365 $ 3,025 $ 119,340 Jul. 3, 2021 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 $ 92,547 $ 2,491 $ (456) $ 94,582 $ 11,570 $ 83,012 Government bonds 31,552 3,556 — 35,108 — 35,108 Total marketable securities $ 124,099 $ 6,047 $ (456) $ 129,690 $ 11,570 $ 118,120 |
Schedule of Available-For-Sale Debt Securities Held To Actual Maturity | As of April 2, 2022, the balance of available-for-sale securities by contractual maturity is shown in the following table. Within the table, maturities of fixed income securities have been allocated based upon timing of estimated cash flows. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Apr. 2, 2022 (In thousands) Due in one year or less $ 3,025 Due after one year through five years 83,747 Due after five years through ten years 35,593 Total $ 122,365 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Swap Agreements | Details of outstanding hedging instruments as of April 2, 2022 are presented below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk June 2023 Euro 500 Hedging of foreign currency risk Various (April 2022 to August 2022) Swedish Krona 272 Various (April 2022 to December 2022) British Pound Sterling 24 June 2023 Euro 500 Hedging of fuel risk Various (April 2022 to July 2023) Gallons 58 39-Week Period Ended Apr. 2, 2022 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 $ 16,024 Operating expense $ 26,882 Foreign currency contracts (492) Cost of sales / Other income — Total $ 15,532 $ 26,882 Derivatives in net investment hedging relationships: Foreign denominated debt $ 40,757 N/A $ — Total $ 40,757 $ — 39-Week Period Ended Mar. 27, 2021 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 $ — |
Schedule of Derivatives Balance Sheet Location Table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of April 2, 2022 and July 3, 2021 are as follows: Derivative Fair Value Balance Sheet location Apr. 2, 2022 Jul. 3, 2021 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 376 $ 43,217 Cash Flow Hedges: Fuel swaps Other current assets $ 29,682 $ 16,732 Foreign currency forwards Other current assets 59 42 Fuel swaps Other assets 3,112 — Fuel swaps Other current liabilities 116 — Foreign currency forwards Other current liabilities 372 46 Fuel swaps Other long-term liabilities 38 — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of April 2, 2022 are as follows: Apr. 2, 2022 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 $ (568,436) $ (376) The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 3, 2021 are as follows: Jul. 3, 2021 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 $ (1,065,364) $ (43,217) |
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 Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 (In thousands) 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 $ 124,018 $ 145,773 $ 495,131 $ 438,988 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ 1,656 $ 2,097 $ 29,011 $ (11,694) Derivatives designated as hedging instruments (4,628) (6,239) (52,491) (3,078) The gains and losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above consist of the following components for each of the periods presented: 13-Week Period Ended 39-Week Period Ended Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 (In thousands) Interest expense $ (1,938) $ (9,737) $ (13,830) $ (34,306) Decrease in fair value of debt (3,594) (11,834) (42,841) (22,612) Hedged items $ 1,656 $ 2,097 $ 29,011 $ (11,694) 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 April 2, 2022 and March 27, 2021, presented on a pretax basis, are as follows: 13-Week Period Ended Apr. 2, 2022 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 $ 24,097 Operating expense $ 9,302 Foreign currency contracts (58) Cost of sales / Other income — Total $ 24,039 $ 9,302 Derivatives in net investment hedging relationships: Foreign denominated debt $ 16,055 N/A $ — Total $ 16,055 $ — 13-Week Period Ended Mar. 27, 2021 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 $ 12,143 Operating expense $ (8,745) Foreign currency contracts (100) Cost of sales / Other income — Total $ 12,043 $ (8,745) Derivatives in net investment hedging relationships: Foreign denominated debt $ 17,901 N/A $ — Total $ 17,901 $ — |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As part of the refinancing, on December 14, 2021, Sysco issued senior notes (the “Notes”) totaling $1.25 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing December 14, 2031 (the 2031 Notes) $ 450 2.45 % 99.578 % December 14, 2051 (the 2051 Notes) 800 3.15 99.308 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Earnings Per Share, Basic [Abstract] | |
Schedule of 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 Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 303,325 $ 88,927 $ 848,779 $ 373,116 Denominator: Weighted-average basic shares outstanding 508,368,159 511,110,670 510,642,876 510,081,610 Dilutive effect of share-based awards 3,870,364 3,474,459 3,555,904 2,607,285 Weighted-average diluted shares outstanding 512,238,523 514,585,129 514,198,780 512,688,895 Basic earnings per share $ 0.60 $ 0.17 $ 1.66 $ 0.73 Diluted earnings per share $ 0.59 $ 0.17 $ 1.65 $ 0.73 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
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 Apr. 2, 2022 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 $ 99 $ 25 $ 74 Amortization of actuarial loss, net Other expense, net 8,668 2,154 6,514 Total reclassification adjustments 8,767 2,179 6,588 Foreign currency translation: Foreign currency translation adjustment N/A (96,582) — (96,582) Marketable securities: Change in marketable securities (1) N/A (6,738) (1,415) (5,323) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge Operating expenses (2) 24,039 5,664 18,375 Change in net investment hedge N/A 16,055 4,014 12,041 Total other comprehensive income before reclassification adjustments 40,094 9,678 30,416 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,874 719 2,155 Total other comprehensive income (loss) $ (51,585) $ 11,161 $ (62,746) (1) Realized gains or losses on marketa ble 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 third quarter of fiscal 2022. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Mar. 27, 2021 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 $ 183 $ 46 $ 137 Amortization of actuarial loss, net Other expense, net 10,421 2,601 7,820 Total reclassification adjustments 10,604 2,647 7,957 Foreign currency translation: Foreign currency translation adjustment N/A 9,805 — 9,805 Marketable securities: Change in marketable securities (1) N/A (3,485) (732) (2,753) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge Operating expenses (2) 12,043 2,908 9,135 Change in net investment hedges N/A 17,901 8,513 9,388 Total other comprehensive income before reclassification adjustments 29,944 11,421 18,523 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,921 730 2,191 Total other comprehensive income $ 49,789 $ 14,066 $ 35,723 (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 third quarter of fiscal 2021 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Apr. 2, 2022 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 $ 297 $ 75 $ 222 Amortization of actuarial loss, net Other expense, net 24,555 6,186 18,369 Total reclassification adjustments 24,852 6,261 18,591 Foreign currency translation: Other comprehensive income (loss) before reclassification adjustments: Foreign currency translation adjustment N/A (210,646) — (210,646) Marketable securities: Change in marketable securities (1) N/A (8,939) (1,876) (7,063) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) 15,532 3,687 11,845 Change in net investment hedges N/A 40,757 10,189 30,568 Total other comprehensive income before reclassification adjustments 56,289 13,876 42,413 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,622 2,157 6,465 Total other comprehensive income (loss) $ (129,822) $ 20,418 $ (150,240) (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 2022 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 27, 2021 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 $ 549 $ 138 $ 411 Amortization of actuarial loss, net Other expense, net 31,161 7,783 23,378 Total reclassification adjustments 31,710 7,921 23,789 Foreign currency translation: Foreign currency translation adjustment N/A 345,452 — 345,452 Marketable securities: Change in marketable securities (1) N/A (4,140) (869) (3,271) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge (3) Operating expenses (2) 11,554 3,051 8,503 Change in net investment hedges N/A (30,052) (7,513) (22,539) Total other comprehensive income before reclassification adjustments (18,498) (4,462) (14,036) Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,669 2,168 6,501 Total other comprehensive (loss) income $ 363,193 $ 4,758 $ 358,435 (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 2021 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in cash flow hedges includes the termination of some cash flow hedges. |
Schedule of Rollforward of Accumulated Other Comprehensive (Loss) Income | The following tables provide a summary of the changes in accumulated other comprehensive (loss) income f or the periods presented: 39-Week Period Ended Apr. 2, 2022 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jul. 3, 2021 $ (1,061,991) $ (40,092) $ (51,096) $ 4,415 $ (1,148,764) Equity adjustment from foreign currency translation — (210,646) — — (210,646) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 30,568 — 30,568 Change in cash flow hedge — — 11,845 — 11,845 Amortization of unrecognized prior service cost 222 — — — 222 Amortization of unrecognized net actuarial losses 18,369 — — — 18,369 Change in marketable securities — — — (7,063) (7,063) Balance as of Apr. 2, 2022 $ (1,043,400) $ (250,738) $ (2,218) $ (2,648) $ (1,299,004) 39-Week Period Ended Mar. 27, 2021 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jun. 27, 2020 $ (1,265,714) $ (402,384) $ (49,878) $ 7,095 $ (1,710,881) Equity adjustment from foreign currency translation — 345,452 — — 345,452 Amortization of cash flow hedges — — 6,501 — 6,501 Change in net investment hedges — — (22,539) — (22,539) Change in cash flow hedge — — 8,503 — 8,503 Amortization of unrecognized prior service cost 411 — — — 411 Amortization of unrecognized net actuarial losses 23,378 — — — 23,378 Change in marketable securities — — — (3,271) (3,271) Balance as of Mar. 27, 2021 $ (1,241,925) $ (56,932) $ (57,413) $ 3,824 $ (1,352,446) |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Apr. 02, 2022 | |
Segment Reporting [Abstract] | |
Schedule of 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 Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 12,006,163 $ 8,360,241 $ 35,107,281 $ 24,205,917 International Foodservice Operations 2,834,089 1,723,126 8,535,608 5,854,608 SYGMA 1,794,837 1,580,695 5,270,193 4,625,244 Other 267,050 160,527 765,806 475,181 Total $ 16,902,139 $ 11,824,589 $ 49,678,888 $ 35,160,950 13-Week Period Ended 39-Week Period Ended Apr. 2, 2022 Mar. 27, 2021 Apr. 2, 2022 Mar. 27, 2021 Operating income (loss): (In thousands) (In thousands) U.S. Foodservice Operations $ 746,467 $ 545,502 $ 2,220,812 $ 1,619,162 International Foodservice Operations 7,760 (121,487) 55,181 (201,973) SYGMA 4,362 12,937 (4,814) 35,957 Other (3,972) 5,884 2,667 4,861 Total segments 754,617 442,836 2,273,846 1,458,007 Global Support Center (258,888) (206,919) (701,526) (590,449) Total operating income 495,729 235,917 1,572,320 867,558 Interest expense 124,018 145,773 495,131 438,988 Other (income) expense, net (13,777) (12,708) (27,705) (14,140) Earnings before income taxes $ 385,488 $ 102,852 $ 1,104,894 $ 442,710 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jul. 03, 2021 | Mar. 27, 2021 | Jun. 27, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 876,139 | $ 3,007,123 | $ 4,895,723 | |
Restricted cash | 68,954 | 29,309 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 945,093 | $ 3,037,100 | $ 4,925,032 | $ 6,095,570 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Billions | Apr. 02, 2022 | Jul. 03, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Customer receivables included in accounts and notes receivable, net | $ 4.5 | $ 3.5 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 16,902,139 | $ 11,824,589 | $ 49,678,888 | $ 35,160,950 |
Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,177,983 | 2,238,039 | 9,827,405 | 6,648,939 |
Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,990,490 | 1,899,117 | 8,590,806 | 5,548,514 |
Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,393,793 | 1,757,162 | 7,005,432 | 5,238,118 |
Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,901,703 | 1,309,072 | 5,538,754 | 3,776,178 |
Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,676,766 | 1,144,127 | 4,766,793 | 3,530,360 |
Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,446,197 | 910,445 | 4,035,280 | 2,766,260 |
Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,251,545 | 1,045,660 | 3,701,367 | 3,007,455 |
Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 773,812 | 599,872 | 2,351,544 | 1,700,008 |
Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 523,953 | 399,958 | 1,561,017 | 1,212,502 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 765,897 | 521,137 | 2,300,490 | 1,732,616 |
US Foodservice Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,006,163 | 8,360,241 | 35,107,281 | 24,205,917 |
US Foodservice Operations | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,295,514 | 1,585,533 | 7,143,738 | 4,583,392 |
US Foodservice Operations | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,194,073 | 1,513,681 | 6,358,629 | 4,325,880 |
US Foodservice Operations | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,597,129 | 1,141,919 | 4,606,909 | 3,269,395 |
US Foodservice Operations | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,425,320 | 920,979 | 4,127,709 | 2,600,235 |
US Foodservice Operations | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,230,092 | 812,887 | 3,445,668 | 2,467,961 |
US Foodservice Operations | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,162,694 | 715,406 | 3,187,379 | 2,123,214 |
US Foodservice Operations | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 930,526 | 752,996 | 2,736,429 | 2,149,596 |
US Foodservice Operations | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 630,833 | 507,446 | 1,909,559 | 1,398,098 |
US Foodservice Operations | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 264,087 | 186,211 | 766,829 | 535,130 |
US Foodservice Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 275,895 | 223,183 | 824,432 | 753,016 |
International Foodservice Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,834,089 | 1,723,126 | 8,535,608 | 5,854,608 |
International Foodservice Operations | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 398,378 | 227,350 | 1,211,781 | 809,339 |
International Foodservice Operations | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 593,156 | 338,853 | 1,735,674 | 1,113,600 |
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 514,418 | 337,477 | 1,550,944 | 1,158,748 |
International Foodservice Operations | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 232,456 | 159,589 | 714,412 | 513,184 |
International Foodservice Operations | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 308,260 | 188,212 | 902,752 | 629,376 |
International Foodservice Operations | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 222,765 | 126,965 | 656,552 | 443,462 |
International Foodservice Operations | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 121,184 | 93,205 | 355,559 | 276,819 |
International Foodservice Operations | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 100,312 | 55,873 | 332,114 | 213,874 |
International Foodservice Operations | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 116,590 | 56,963 | 340,966 | 207,851 |
International Foodservice Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 226,570 | 138,639 | 734,854 | 488,355 |
SYGMA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,794,837 | 1,580,695 | 5,270,193 | 4,625,244 |
SYGMA | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 484,082 | 425,156 | 1,471,877 | 1,256,208 |
SYGMA | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 203,184 | 46,583 | 496,396 | 109,023 |
SYGMA | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 282,246 | 277,766 | 847,579 | 809,975 |
SYGMA | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 243,927 | 228,504 | 696,633 | 662,759 |
SYGMA | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 138,414 | 143,028 | 418,373 | 433,023 |
SYGMA | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 60,738 | 68,074 | 191,349 | 199,584 |
SYGMA | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 186,801 | 189,337 | 568,054 | 550,605 |
SYGMA | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,667 | 36,553 | 109,871 | 88,036 |
SYGMA | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 124,058 | 145,704 | 393,089 | 436,503 |
SYGMA | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,720 | 19,990 | 76,972 | 79,528 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 267,050 | 160,527 | 765,806 | 475,181 |
Other | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9 | 0 | 9 | 0 |
Other | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 77 | 0 | 107 | 11 |
Other | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Dairy products | ||||
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 | 13,034 | 10,122 | 41,325 | 30,435 |
Other | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 19,218 | 11,080 | 60,133 | 33,018 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 234,712 | $ 139,325 | $ 664,232 | $ 411,717 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Thousands | 9 Months Ended | ||
Apr. 02, 2022USD ($) | Mar. 27, 2021USD ($) | Aug. 12, 2021areacenter | |
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net of cash acquired | $ 1,281,835 | $ 0 | |
Payable term for contingent consideration | 3 years | ||
Contingent consideration outstanding | $ 89,500 | ||
Greco and Sons | |||
Business Acquisition [Line Items] | |||
Number of distribution centers | center | 10 | ||
Number of geographic areas | area | 22 | ||
Earnout Liabilities | |||
Business Acquisition [Line Items] | |||
Contingent consideration outstanding | $ 87,000 |
ACQUISITIONS - Recognized Ident
ACQUISITIONS - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 12, 2021 | Apr. 02, 2022 | Jul. 03, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,703,777 | $ 3,944,139 | |
Greco and Sons | |||
Business Acquisition [Line Items] | |||
Accounts receivable, net | $ 69,000 | ||
Inventories | 79,000 | ||
Plant and equipment | 24,000 | ||
Other assets | 151,000 | ||
Goodwill and other intangibles | 717,000 | ||
Total assets | 1,040,000 | ||
Accounts payable | (73,000) | ||
Accrued expenses | (17,000) | ||
Deferred tax liabilities | (35,000) | ||
Other liabilities | (154,000) | ||
Total consideration | 761,000 | ||
Goodwill | 717,100 | ||
Amortization expense | $ 14,700 | ||
Greco and Sons | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets, finite-lived | $ 116,000 | ||
Acquired finite-lived Intangible assets, weighted average useful life | 8 years | ||
Greco and Sons | Trade Names | |||
Business Acquisition [Line Items] | |||
Intangible assets, finite-lived | $ 109,500 | ||
Acquired finite-lived Intangible assets, weighted average useful life | 15 years | ||
Greco and Sons | US Foodservice Operations | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 491,600 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value Table (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Apr. 02, 2022 | Jul. 03, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 862,190 | $ 2,805,964 |
Other assets | 68,954 | 29,977 |
Total assets at fair value | 931,144 | 2,835,941 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 862,187 | 2,805,961 |
Other assets | 68,954 | 29,977 |
Total assets at fair value | 931,141 | 2,835,938 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3 | 3 |
Other assets | 0 | 0 |
Total assets at fair value | 3 | 3 |
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 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions | Apr. 02, 2022 | Jul. 03, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 11.9 | $ 13.3 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 11.1 | $ 11.1 |
MARKETABLE SECURITIES - Availab
MARKETABLE SECURITIES - Available-For-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jul. 03, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost Basis | $ 125,712 | $ 124,099 |
Gross Unrealized Gains | 1,025 | 6,047 |
Gross Unrealized Losses | (4,372) | (456) |
Fair Value | 122,365 | 129,690 |
Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 3,025 | 11,570 |
Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 119,340 | 118,120 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 95,571 | 92,547 |
Gross Unrealized Gains | 265 | 2,491 |
Gross Unrealized Losses | (4,248) | (456) |
Fair Value | 91,588 | 94,582 |
Corporate bonds | Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 3,025 | 11,570 |
Corporate bonds | Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 88,563 | 83,012 |
Government bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 30,141 | 31,552 |
Gross Unrealized Gains | 760 | 3,556 |
Gross Unrealized Losses | (124) | 0 |
Fair Value | 30,777 | 35,108 |
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 | $ 30,777 | $ 35,108 |
MARKETABLE SECURITIES - Avail_2
MARKETABLE SECURITIES - Available-For-Sale Debt Securities Held To Actual Maturity (Details) - USD ($) | 3 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Jul. 03, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Due in one year or less | $ 3,025,000 | ||
Due after one year through five years | 83,747,000 | ||
Due after five years through ten years | 35,593,000 | ||
Amortized Cost Basis | 122,365,000 | $ 129,690,000 | |
Realized gain (loss) | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) | Apr. 02, 2022USD ($) |
Senior Notes, 3.55% Due 2025 | Senior Notes | |
Derivative [Line Items] | |
Interest rate | 3.55% |
Senior Notes, 5.65% Due 2021 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 23,100,000 |
Senior Notes, 3.55% Due 2021 | |
Derivative [Line Items] | |
Derivative, Notional Amount | 500,000,000 |
Senior Notes, 3.55% Due 2025 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 500,000,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Outstanding Swap Agreements (Details) - 9 months ended Apr. 02, 2022 | EUR (€)gal | SEK (kr) | GBP (£) |
Hedging of interest rate risk, June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | € 500,000,000 | ||
Hedging of foreign currency risk Various (January 2022 to April 2022) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | kr 272,000,000 | £ 24,000,000 | |
Hedging of foreign currency risk euro , June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | € 500,000,000 | ||
Fuel swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount (in gallons) | gal | 58,000,000 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Derivatives Balance Sheet Location Table (Details) - Hedging Instrument - USD ($) $ in Thousands | Apr. 02, 2022 | Jul. 03, 2021 |
Fair Value Hedges | Interest rate swap agreements | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | $ 376 | $ 43,217 |
Cash Flow Hedges | Fuel swaps | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 29,682 | 16,732 |
Cash Flow Hedges | Fuel swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 3,112 | 0 |
Cash Flow Hedges | Fuel swaps | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 116 | 0 |
Cash Flow Hedges | Fuel swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 38 | 0 |
Cash Flow Hedges | Foreign currency forwards | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 59 | 42 |
Cash Flow Hedges | Foreign currency forwards | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 372 | $ 46 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Location and Effect of Derivative Instruments and Related Hedged Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Derivative [Line Items] | ||||
Interest expense | $ 124,018 | $ 145,773 | $ 495,131 | $ 438,988 |
Interest expense | (1,938) | (9,737) | (13,830) | (34,306) |
Decrease in fair value of debt | (3,594) | (11,834) | (42,841) | (22,612) |
Hedging Instrument | Fair Value Hedges | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Hedged items | 1,656 | 2,097 | 29,011 | (11,694) |
Derivatives designated as hedging instruments | $ (4,628) | $ (6,239) | $ (52,491) | $ (3,078) |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges (Details) - Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | $ 24,039 | $ 12,043 | $ 15,532 | $ (29,506) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - cash flow hedging | 9,302 | (8,745) | 26,882 | (5,062) |
Cash Flow Hedges | Fuel swaps | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | 24,097 | 12,143 | 16,024 | (34,686) |
Cash Flow Hedges | Fuel swaps | Operating expense | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - cash flow hedging | 9,302 | (8,745) | 26,882 | (8,688) |
Cash Flow Hedges | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | (58) | (100) | (492) | 5,180 |
Cash Flow Hedges | 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 | 0 | 0 | 3,626 |
Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - net investment hedging | 16,055 | 17,901 | 40,757 | 61,504 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - net investment hedging | 0 | 0 | 0 | 0 |
Net Investment Hedging | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - net investment hedging | 51,354 | |||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - net investment hedging | 0 | |||
Net Investment Hedging | Foreign denominated debt | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - net investment hedging | 16,055 | 17,901 | 40,757 | 10,150 |
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) - Long-term debt - USD ($) $ in Thousands | Apr. 02, 2022 | Jul. 03, 2021 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (568,436) | $ (1,065,364) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ (376) | $ (43,217) |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Apr. 29, 2022USD ($) | Dec. 14, 2021USD ($) | Apr. 02, 2022USD ($) | Mar. 27, 2021USD ($) |
Debt [Line Items] | ||||
Maximum board-authorized aggregate commercial paper limit | $ 2,000,000,000 | |||
Commercial paper average outstanding | 0 | |||
Loss on extinguishment of debt | 115,603,000 | $ 0 | ||
Line of Credit | Revolving Credit Facility | ||||
Debt [Line Items] | ||||
Long-term revolving credit facility | 2,000,000,000 | |||
Borrowings outstanding under revolving credit facility | 0 | |||
Line of Credit | Revolving Credit Facility | Subsequent Event | ||||
Debt [Line Items] | ||||
Long-term revolving credit facility | $ 2,000,000,000 | |||
Aggregate commitments | 3,000,000,000 | |||
Increase in commitment fee amount | $ 4,000,000,000 | |||
Line of Credit | Revolving Credit Facility | Interest expense | Minimum | Subsequent Event | ||||
Debt [Line Items] | ||||
Conversion ratio | 3 | |||
Line of Credit | Revolving Credit Facility | Interest expense | Maximum | Subsequent Event | ||||
Debt [Line Items] | ||||
Conversion ratio | 1 | |||
Commercial Paper | ||||
Debt [Line Items] | ||||
Carrying value of total debt | 0 | |||
Commercial paper average outstanding | $ 2,000,000,000 | |||
Senior Notes | ||||
Debt [Line Items] | ||||
Principal amount of notes | $ 1,250,000,000 | |||
Redemption of senior notes | 1,250,000,000 | |||
Loss on redemption of debt | 132,700,000 | |||
Write off of Deferred Debt Issuance Cost | 6,000,000 | |||
Gain on extinguishment of debt, portion attributable to accelerated charge on debt discount | 23,100,000 | |||
Senior Notes | Interest expense | ||||
Debt [Line Items] | ||||
Loss on extinguishment of debt | 115,600,000 | |||
Senior Notes | Senior Notes Due 2031 | ||||
Debt [Line Items] | ||||
Principal amount of notes | $ 450,000,000 | |||
Period prior to maturity for early redemption | 3 months | |||
Interest rate | 2.45% | |||
Senior Notes | Senior Notes Due 2051 | ||||
Debt [Line Items] | ||||
Principal amount of notes | $ 800,000,000 | |||
Period prior to maturity for early redemption | 6 months | |||
Percent of principal due upon early repayment | 100.00% | |||
Interest rate | 3.15% | |||
Senior Notes | 5.650% Senior Note Due 2025 | ||||
Debt [Line Items] | ||||
Interest rate | 5.65% | |||
Senior Notes | 3.550% Senior Note Due 2025 | ||||
Debt [Line Items] | ||||
Interest rate | 3.55% |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - Senior Notes | Dec. 14, 2021USD ($) |
Debt [Line Items] | |
Principal amount of notes | $ 1,250,000,000 |
Senior Notes Due 2031 | |
Debt [Line Items] | |
Principal amount of notes | $ 450,000,000 |
Interest rate | 2.45% |
Debt Instrument Issuance Percentage of Par | 99.578% |
Senior Notes Due 2051 | |
Debt [Line Items] | |
Principal amount of notes | $ 800,000,000 |
Interest rate | 3.15% |
Debt Instrument Issuance Percentage of Par | 99.308% |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Numerator: | ||||
Net earnings | $ 303,325 | $ 88,927 | $ 848,779 | $ 373,116 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 508,368,159 | 511,110,670 | 510,642,876 | 510,081,610 |
Dilutive effect of share-based awards (in shares) | 3,870,364 | 3,474,459 | 3,555,904 | 2,607,285 |
Weighted-average diluted shares outstanding (in shares) | 512,238,523 | 514,585,129 | 514,198,780 | 512,688,895 |
Basic earnings per share (in dollars per share) | $ 0.60 | $ 0.17 | $ 1.66 | $ 0.73 |
Diluted earnings per share (in dollars per share) | $ 0.59 | $ 0.17 | $ 1.65 | $ 0.73 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 1,105 | 1,893 | 1,731 | 4,763 |
OTHER COMPREHENSIVE INCOME - Na
OTHER COMPREHENSIVE INCOME - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Comprehensive income | $ 240,579,000 | $ 124,650,000 | $ 698,539,000 | $ 731,551,000 |
Realized gain (loss) | $ 0 | $ 0 |
OTHER COMPREHENSIVE INCOME - Co
OTHER COMPREHENSIVE INCOME - Components of Other Comprehensive (Loss) Income and Related Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Before Tax Amount | ||||
Total other comprehensive income (loss) | $ (51,585) | $ 49,789 | $ (129,822) | $ 363,193 |
Tax | ||||
Total other comprehensive income (loss) | 11,161 | 14,066 | 20,418 | 4,758 |
Net of Tax Amount | ||||
Total other comprehensive (loss) income | (62,746) | 35,723 | (150,240) | 358,435 |
Pension and other postretirement benefit plans: | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 8,767 | 10,604 | 24,852 | 31,710 |
Tax | ||||
Amortization of prior service cost | 2,179 | 2,647 | 6,261 | 7,921 |
Net of Tax Amount | ||||
Amortization of prior service cost | 6,588 | 7,957 | 18,591 | 23,789 |
Amortization of prior service cost | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 222 | 411 | ||
Amortization of prior service cost | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 99 | 183 | 297 | 549 |
Tax | ||||
Amortization of prior service cost | 25 | 46 | 75 | 138 |
Net of Tax Amount | ||||
Amortization of prior service cost | 74 | 137 | 222 | 411 |
Amortization of actuarial loss, net | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 18,369 | 23,378 | ||
Amortization of actuarial loss, net | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 8,668 | 10,421 | 24,555 | 31,161 |
Tax | ||||
Amortization of prior service cost | 2,154 | 2,601 | 6,186 | 7,783 |
Net of Tax Amount | ||||
Amortization of prior service cost | 6,514 | 7,820 | 18,369 | 23,378 |
Foreign currency translation: | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (96,582) | 9,805 | (210,646) | 345,452 |
Tax | ||||
Before reclassifications tax | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (96,582) | 9,805 | (210,646) | 345,452 |
Change in marketable securities | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (6,738) | (3,485) | (8,939) | (4,140) |
Tax | ||||
Before reclassifications tax | (1,415) | (732) | (1,876) | (869) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (5,323) | (2,753) | (7,063) | (3,271) |
Hedging, net of tax | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 40,094 | 29,944 | 56,289 | (18,498) |
Tax | ||||
Before reclassifications tax | 9,678 | 11,421 | 13,876 | (4,462) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | 30,416 | 18,523 | 42,413 | (14,036) |
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 6,465 | 6,501 | ||
Before reclassifications, net of tax | 11,845 | 8,503 | ||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 24,039 | 12,043 | 15,532 | 11,554 |
Tax | ||||
Before reclassifications tax | 5,664 | 2,908 | 3,687 | 3,051 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | 18,375 | 9,135 | 11,845 | 8,503 |
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,874 | 2,921 | 8,622 | 8,669 |
Tax | ||||
Amortization of prior service cost | 719 | 730 | 2,157 | 2,168 |
Net of Tax Amount | ||||
Amortization of prior service cost | 2,155 | 2,191 | 6,465 | 6,501 |
Change in net investment hedges | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 16,055 | 17,901 | 40,757 | (30,052) |
Tax | ||||
Before reclassifications tax | 4,014 | 8,513 | 10,189 | (7,513) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | $ 12,041 | $ 9,388 | $ 30,568 | $ (22,539) |
OTHER COMPREHENSIVE INCOME - Ro
OTHER COMPREHENSIVE INCOME - Roll forward of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,221,072 | $ 1,426,799 | $ 1,552,896 | $ 1,158,613 |
Ending balance | 1,321,409 | 1,395,597 | 1,321,409 | 1,395,597 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,236,258) | (1,388,169) | (1,148,764) | (1,710,881) |
Ending balance | (1,299,004) | (1,352,446) | (1,299,004) | (1,352,446) |
Pension and Other Postretirement Benefit Plans, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,061,991) | (1,265,714) | ||
Ending balance | (1,043,400) | (1,241,925) | (1,043,400) | (1,241,925) |
Amortization of prior service cost | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 222 | 411 | ||
Amortization of unrecognized net actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 18,369 | 23,378 | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (40,092) | (402,384) | ||
OCI before reclassifications, net of tax | (96,582) | 9,805 | (210,646) | 345,452 |
Ending balance | (250,738) | (56,932) | (250,738) | (56,932) |
Hedging, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (51,096) | (49,878) | ||
OCI before reclassifications, net of tax | 30,416 | 18,523 | 42,413 | (14,036) |
Ending balance | (2,218) | (57,413) | (2,218) | (57,413) |
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 11,845 | 8,503 | ||
Reclassification adjustment, net of tax | 6,465 | 6,501 | ||
Change in net investment hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 12,041 | 9,388 | 30,568 | (22,539) |
Change in marketable securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 4,415 | 7,095 | ||
OCI before reclassifications, net of tax | (5,323) | (2,753) | (7,063) | (3,271) |
Ending balance | $ (2,648) | $ 3,824 | $ (2,648) | $ 3,824 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Apr. 02, 2022 | Mar. 27, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 1,224,150 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 17.39 | |
Share-based compensation expense | $ 90,667 | $ 65,655 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 144,200 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 1 year 11 months 19 days | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 473,355 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 76.75 | |
Performance period | 3 years | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 736,709 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 80.24 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 661,656 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 11.92 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022 | Mar. 27, 2021 | Apr. 02, 2022 | Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 21.31% | 13.54% | 23.18% | 15.72% |
Impact of excess tax benefits of equity-based compensation | $ 7.9 | $ 6 | $ 10.8 | $ 12.6 |
Impact of corporate owned life insurance policies | 0.4 | 1.4 | ||
Increase in reserve for uncertain tax positions | 12 | |||
Tax benefit attributable to the sale of stock | 7.6 | |||
Impact of changes in tax law | $ 5.5 | |||
Unrecognized tax benefits | 32.4 | 32.4 | ||
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 5.4 | $ 5.4 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 02, 2022USD ($) | Mar. 27, 2021USD ($) | Apr. 02, 2022USD ($)segment | Mar. 27, 2021USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reporting segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 16,902,139 | $ 11,824,589 | $ 49,678,888 | $ 35,160,950 |
Operating income (loss): | 495,729 | 235,917 | 1,572,320 | 867,558 |
Interest expense | 124,018 | 145,773 | 495,131 | 438,988 |
Other income, net | (13,777) | (12,708) | (27,705) | (14,140) |
Earnings before income taxes | 385,488 | 102,852 | 1,104,894 | 442,710 |
US Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 12,006,163 | 8,360,241 | 35,107,281 | 24,205,917 |
International Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,834,089 | 1,723,126 | 8,535,608 | 5,854,608 |
SYGMA | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,794,837 | 1,580,695 | 5,270,193 | 4,625,244 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 267,050 | 160,527 | 765,806 | 475,181 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 16,902,139 | 11,824,589 | 49,678,888 | 35,160,950 |
Operating income (loss): | 754,617 | 442,836 | 2,273,846 | 1,458,007 |
Operating Segments | US Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 12,006,163 | 8,360,241 | 35,107,281 | 24,205,917 |
Operating income (loss): | 746,467 | 545,502 | 2,220,812 | 1,619,162 |
Operating Segments | International Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,834,089 | 1,723,126 | 8,535,608 | 5,854,608 |
Operating income (loss): | 7,760 | (121,487) | 55,181 | (201,973) |
Operating Segments | SYGMA | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,794,837 | 1,580,695 | 5,270,193 | 4,625,244 |
Operating income (loss): | 4,362 | 12,937 | (4,814) | 35,957 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 267,050 | 160,527 | 765,806 | 475,181 |
Operating income (loss): | (3,972) | 5,884 | 2,667 | 4,861 |
Global Support Center | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss): | $ (258,888) | $ (206,919) | $ (701,526) | $ (590,449) |
Uncategorized Items - syy-20220
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |