COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Apr. 01, 2023 | Apr. 14, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 01, 2023 | |
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 | 506,682,318 | |
Entity Central Index Key | 0000096021 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --07-01 | |
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. 01, 2023 | Jul. 02, 2022 |
Current assets | ||
Cash and cash equivalents | $ 757,867 | $ 867,086 |
Accounts receivable, less allowances of $81,190 and $70,790 | 5,227,387 | 4,838,912 |
Inventories | 4,620,614 | 4,437,498 |
Prepaid expenses and other current assets | 292,726 | 303,789 |
Income tax receivable | 0 | 35,934 |
Total current assets | 10,898,594 | 10,483,219 |
Plant and equipment at cost, less accumulated depreciation | 4,649,356 | 4,456,420 |
Other long-term assets | ||
Goodwill | 4,613,805 | 4,542,315 |
Intangibles, less amortization | 886,629 | 952,683 |
Deferred income taxes | 435,800 | 377,604 |
Operating lease right-of-use assets, net | 708,763 | 723,297 |
Other assets | 509,086 | 550,150 |
Total other long-term assets | 7,154,083 | 7,146,049 |
Total assets | 22,702,033 | 22,085,688 |
Current liabilities | ||
Accounts payable | 5,902,249 | 5,752,958 |
Accrued expenses | 2,136,322 | 2,270,753 |
Accrued income taxes | 123,892 | 40,042 |
Current operating lease liabilities | 94,799 | 105,690 |
Current maturities of long-term debt | 723,473 | 580,611 |
Total current liabilities | 8,980,735 | 8,750,054 |
Long-term liabilities | ||
Long-term debt | 10,258,345 | 10,066,931 |
Deferred income taxes | 212,407 | 250,171 |
Long-term operating lease liabilities | 633,224 | 636,417 |
Other long-term liabilities | 1,009,016 | 967,907 |
Total long-term liabilities | 12,112,992 | 11,921,426 |
Noncontrolling interest | 33,004 | 31,948 |
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 | 1,785,075 | 1,766,305 |
Retained earnings | 10,829,909 | 10,539,722 |
Accumulated other comprehensive loss | (1,280,885) | (1,482,054) |
Treasury stock at cost, 258,761,015 and 256,531,543 shares | (10,523,972) | (10,206,888) |
Total shareholders’ equity | 1,575,302 | 1,382,260 |
Total liabilities and shareholders’ equity | $ 22,702,033 | $ 22,085,688 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 81,190 | $ 70,790 |
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) | 258,761,015 | 256,531,543 |
CONSOLIDATED RESULTS OF OPERATI
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | ||
Income Statement [Abstract] | |||||
Sales | $ 18,875,676 | $ 16,902,139 | $ 56,596,459 | $ 49,678,888 | |
Cost of sales | 15,444,316 | 13,888,745 | 46,326,628 | 40,802,636 | |
Gross profit | 3,431,360 | 3,013,394 | 10,269,831 | 8,876,252 | |
Operating expenses | 2,737,183 | 2,517,665 | 8,200,679 | 7,303,932 | |
Operating income | 694,177 | 495,729 | 2,069,152 | 1,572,320 | |
Interest expense | 134,931 | 124,018 | 391,123 | 495,131 | |
Other expense (income), net | [1] | 5,209 | (13,777) | 350,614 | (27,705) |
Earnings before income taxes | 554,037 | 385,488 | 1,327,415 | 1,104,894 | |
Income taxes | 124,433 | 82,163 | 291,027 | 256,115 | |
Net earnings | $ 429,604 | $ 303,325 | $ 1,036,388 | $ 848,779 | |
Net earnings: | |||||
Basic earnings per share (in dollars per share) | $ 0.85 | $ 0.60 | $ 2.04 | $ 1.66 | |
Diluted earnings per share (in dollars per share) | $ 0.84 | $ 0.59 | $ 2.03 | $ 1.65 | |
Average shares outstanding (in shares) | 507,716,975 | 508,368,159 | 507,635,083 | 510,642,876 | |
Diluted shares outstanding (in shares) | 509,842,400 | 512,238,523 | 510,123,782 | 514,198,780 | |
[1]Sysco’s second quarter of fiscal 2023 included a charge for $315.4 million in other expense related to pension settlement charges. See Note 9, “Company-Sponsored Employee Benefit Plans.” |
CONSOLIDATED RESULTS OF OPERA_2
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Pension settlement charge | $ 315,354 | $ 0 | |||
United States | Pension Benefits | |||||
Pension settlement charge | $ 0 | $ 315,400 | $ 0 | $ 315,354 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 429,604 | $ 303,325 | $ 1,036,388 | $ 848,779 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 62,771 | (96,582) | 72,403 | (210,646) |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,170 | 2,155 | 6,495 | 6,465 |
Change in net investment hedges | (5,401) | 12,041 | (15,641) | 30,568 |
Change in cash flow hedges | (22,455) | 18,375 | (48,642) | 11,845 |
Reclassification adjustment for loss included in net income | (7) | 0 | 15 | 0 |
Amortization of prior service cost | 74 | 74 | 222 | 222 |
Amortization of actuarial loss | 5,605 | 6,514 | 18,124 | 18,369 |
Pension settlement charge | 0 | 0 | 236,591 | 0 |
Net actuarial loss arising in current year | 0 | 0 | (67,388) | 0 |
Change in marketable securities | 1,146 | (5,323) | (1,010) | (7,063) |
Total other comprehensive income (loss) | 43,903 | (62,746) | 201,169 | (150,240) |
Comprehensive income | $ 473,507 | $ 240,579 | $ 1,237,557 | $ 698,539 |
CHANGES IN CONSOLIDATED SHAREHO
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Jul. 03, 2021 | 765,174,900 | |||||
Beginning balance at Jul. 03, 2021 | $ 1,552,896 | $ 765,175 | $ 1,619,995 | $ 10,151,706 | $ (1,148,764) | $ (9,835,216) |
Treasury stock, beginning balance (in shares) at Jul. 03, 2021 | 253,342,595 | |||||
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 | ||||
Pension settlement charge, net of tax | 0 | |||||
Net actuarial loss arising in current year | 0 | |||||
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 | |||||
Ending balance at Apr. 02, 2022 | 1,321,409 | $ 765,175 | 1,737,301 | 10,279,792 | (1,299,004) | $ (10,161,855) |
Treasury stock, ending balance (in shares) at Apr. 02, 2022 | 256,507,982 | |||||
Beginning balance (in shares) at Jan. 02, 2022 | 765,174,900 | |||||
Beginning balance at Jan. 02, 2022 | 1,221,072 | $ 765,175 | 1,690,487 | 10,216,625 | (1,236,258) | $ (10,214,957) |
Treasury stock, beginning balance (in shares) at Jan. 02, 2022 | 258,033,856 | |||||
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 | ||||
Pension settlement charge, net of tax | 0 | |||||
Net actuarial loss arising in current year | 0 | |||||
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 | |||||
Ending balance at Apr. 02, 2022 | $ 1,321,409 | $ 765,175 | 1,737,301 | 10,279,792 | (1,299,004) | $ (10,161,855) |
Treasury stock, ending balance (in shares) at Apr. 02, 2022 | 256,507,982 | |||||
Beginning balance (in shares) at Jul. 02, 2022 | 765,174,900 | 765,174,900 | ||||
Beginning balance at Jul. 02, 2022 | $ 1,382,260 | $ 765,175 | 1,766,305 | 10,539,722 | (1,482,054) | $ (10,206,888) |
Treasury stock, beginning balance (in shares) at Jul. 02, 2022 | 256,531,543 | 256,531,543 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 1,036,388 | 1,036,388 | ||||
Foreign currency translation adjustment | 72,403 | 72,403 | ||||
Amortization of cash flow hedges, net of tax | 6,495 | 6,495 | ||||
Change in cash flow hedges, net of tax | (48,642) | (48,642) | ||||
Change in net investment hedges, net of tax | (15,641) | (15,641) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 18,346 | 18,346 | ||||
Pension settlement charge, net of tax | 236,591 | 236,591 | ||||
Net actuarial loss arising in current year | (67,388) | |||||
Change in marketable securities, net of tax | (995) | (995) | ||||
Dividends declared | (746,201) | (746,201) | ||||
Treasury stock purchases (in shares) | 4,629,297 | |||||
Treasury stock purchases | (383,750) | $ (383,750) | ||||
Increase in ownership interest in subsidiaries | (2,077) | (2,077) | ||||
Share-based compensation awards | $ 87,513 | 20,847 | $ 66,666 | |||
Share-based compensation awards (in shares) | (2,399,825) | |||||
Ending balance (in shares) at Apr. 01, 2023 | 765,174,900 | 765,174,900 | ||||
Ending balance at Apr. 01, 2023 | $ 1,575,302 | $ 765,175 | 1,785,075 | 10,829,909 | (1,280,885) | $ (10,523,972) |
Treasury stock, ending balance (in shares) at Apr. 01, 2023 | 258,761,015 | 258,761,015 | ||||
Beginning balance (in shares) at Dec. 31, 2022 | 765,174,900 | |||||
Beginning balance at Dec. 31, 2022 | $ 1,436,589 | $ 765,175 | 1,774,141 | 10,649,338 | (1,324,788) | $ (10,427,277) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | 257,846,972 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 429,604 | 429,604 | ||||
Foreign currency translation adjustment | 62,771 | 62,771 | ||||
Amortization of cash flow hedges, net of tax | 2,170 | 2,170 | ||||
Change in cash flow hedges, net of tax | (22,455) | (22,455) | ||||
Change in net investment hedges, net of tax | (5,401) | (5,401) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 5,679 | 5,679 | ||||
Pension settlement charge, net of tax | 0 | |||||
Net actuarial loss arising in current year | 0 | |||||
Change in marketable securities, net of tax | 1,139 | 1,139 | ||||
Dividends declared | (249,033) | (249,033) | ||||
Treasury stock purchases (in shares) | 1,530,029 | |||||
Treasury stock purchases | (116,023) | $ (116,023) | ||||
Share-based compensation awards | $ 30,262 | 10,934 | $ 19,328 | |||
Share-based compensation awards (in shares) | (615,986) | |||||
Ending balance (in shares) at Apr. 01, 2023 | 765,174,900 | 765,174,900 | ||||
Ending balance at Apr. 01, 2023 | $ 1,575,302 | $ 765,175 | $ 1,785,075 | $ 10,829,909 | $ (1,280,885) | $ (10,523,972) |
Treasury stock, ending balance (in shares) at Apr. 01, 2023 | 258,761,015 | 258,761,015 |
CHANGES IN CONSOLIDATED SHARE_2
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.49 | $ 0.47 | $ 1.47 | $ 1.41 |
CONSOLIDATED CASH FLOWS (Unaudi
CONSOLIDATED CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,036,388 | $ 848,779 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Pension settlement charge | 315,354 | 0 |
Share-based compensation expense | 73,765 | 90,667 |
Depreciation and amortization | 574,945 | 571,607 |
Operating lease asset amortization | 83,959 | 82,415 |
Amortization of debt issuance and other debt-related costs | 15,019 | 16,160 |
Deferred income taxes | (163,044) | (110,058) |
Provision for losses on receivables | 21,899 | 572 |
Loss on extinguishment of debt | 0 | 115,603 |
Other non-cash items | 2,787 | (8,945) |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
Increase in receivables | (405,372) | (908,127) |
Increase in inventories | (172,117) | (644,799) |
Increase in prepaid expenses and other current assets | (6,242) | (25,391) |
Increase in accounts payable | 88,995 | 764,263 |
(Decrease) increase in accrued expenses | (55,162) | 131,376 |
Decrease in operating lease liabilities | (100,847) | (99,343) |
Increase (decrease) in accrued income taxes | 119,784 | (42,013) |
Decrease (increase) in other assets | 23,843 | (6,595) |
Decrease in other long-term liabilities | (28,172) | (30,300) |
Net cash provided by operating activities | 1,425,782 | 745,871 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (474,456) | (327,535) |
Proceeds from sales of plant and equipment | 28,313 | 15,946 |
Acquisition of businesses, net of cash acquired | (37,384) | (1,281,835) |
Purchase of marketable securities | (15,078) | (19,318) |
Proceeds from sales of marketable securities | 11,641 | 16,648 |
Other investing activities | 5,610 | 12,773 |
Net cash used for investing activities | (481,354) | (1,583,321) |
Cash flows from financing activities: | ||
Other debt borrowings including senior notes | 174,262 | 1,251,484 |
Other debt repayments including senior notes | (81,345) | (38,370) |
Redemption premiums and repayments for senior notes | 0 | (1,395,668) |
Debt issuance costs | 0 | (15,547) |
Cash received from termination of interest rate swap agreements | 0 | 23,127 |
Proceeds from stock option exercises | 67,115 | 89,185 |
Stock repurchases | (377,800) | (415,824) |
Dividends paid | (747,378) | (719,865) |
Other financing activities | (57,906) | (19,456) |
Net cash used for financing activities | (1,023,052) | (1,240,934) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 1,713 | (13,623) |
Net decrease in cash, cash equivalents and restricted cash | (76,911) | (2,092,007) |
Cash, cash equivalents and restricted cash at beginning of period | 931,376 | 3,037,100 |
Cash, cash equivalents and restricted cash at end of period | 854,465 | 945,093 |
Cash paid during the period for: | ||
Interest | 343,402 | 456,996 |
Income taxes, net of refunds | $ 306,174 | $ 395,065 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements have been prepared by the company, without audit. The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income, changes in consolidated shareholders’ equity and consolidated cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position, results of operations, comprehensive income, 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 2, 2022. 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. 1, 2023 Apr. 2, 2022 (In thousands) Cash and cash equivalents $ 757,867 $ 876,139 Restricted cash (1) 96,598 68,954 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 854,465 $ 945,093 (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. The following table sets forth the company’s non-cash investing and financing activities: Apr. 1, 2023 Apr. 2, 2022 (In thousands) Non-cash investing and financing activities: Plant and equipment acquired through financing programs $ 111,771 $ — Assets obtained in exchange for finance lease obligations 99,776 155,541 |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 9 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Liabilities – Supplier Financing Programs In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities—Supplier Finance Programs, Subtopic 405-50, that requires entities to disclose in the annual financial statements the key terms of supplier finance programs they use in connection with the purchase of goods and services, along with information about their obligations under these programs, including a roll forward of those obligations. Additionally, the guidance requires disclosure of the outstanding amount of the obligations as of the end of each interim period. The guidance does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. The guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2022, which is the first quarter of fiscal 2024 for Sysco, except for the roll forward requirement, which is effective annually for fiscal years beginning after December 15, 2023, which is fiscal year 2025 for Sysco. Early adoption is permitted. |
REVENUE
REVENUE | 9 Months Ended |
Apr. 01, 2023 | |
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 $4.9 billion and $4.6 billion as of April 1, 2023 and July 2, 2022, respectively. Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in other assets and amortized over the life of the contract or the expected life of the relationship with the customer. As of April 1, 2023, 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. 1, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 2,649,632 $ 743,056 $ 244,695 $ — $ 3,637,383 Fresh and frozen meats 2,378,124 474,824 461,897 — 3,314,845 Frozen fruits, vegetables, bakery and other 1,949,160 548,719 336,495 — 2,834,374 Dairy products 1,513,084 404,943 162,065 — 2,080,092 Poultry 1,266,096 288,185 272,727 — 1,827,008 Fresh produce 1,288,241 255,615 66,458 — 1,610,314 Paper and disposables 988,448 131,784 205,353 14,561 1,340,146 Seafood 587,726 111,779 51,077 — 750,582 Beverage products 328,221 145,013 144,703 21,957 639,894 Other (1) 308,787 240,203 26,588 265,460 841,038 Total Sales $ 13,257,519 $ 3,344,121 $ 1,972,058 $ 301,978 $ 18,875,676 (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 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. 39-Week Period Ended Apr. 1, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 7,729,545 $ 2,135,052 $ 717,588 $ 2,002 $ 10,584,187 Fresh and frozen meats 7,234,503 1,373,206 1,377,707 — 9,985,416 Frozen fruits, vegetables, bakery and other 5,643,893 1,724,851 984,070 149 8,352,963 Dairy products 4,536,602 1,130,429 487,466 — 6,154,497 Poultry 4,169,417 866,378 815,461 — 5,851,256 Fresh produce 4,011,326 767,993 197,801 — 4,977,120 Paper and disposables 2,987,583 410,358 625,402 43,102 4,066,445 Seafood 1,773,891 342,270 129,010 — 2,245,171 Beverage products 947,633 415,004 419,541 67,929 1,850,107 Other (1) 902,662 744,726 85,005 796,904 2,529,297 Total Sales $ 39,937,055 $ 9,910,267 $ 5,839,051 $ 910,086 $ 56,596,459 (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. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Apr. 01, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS During the first 39 weeks of fiscal 2023, the company paid cash of $37.4 million 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 1, 2023, aggregate contingent consideration outstanding was $57.2 million, of which $53.7 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. 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 was to strengthen Sysco’s business within the Italian foodservice sector. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Sysco’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 1, 2023 and July 2, 2022: Assets Measured at Fair Value as of Apr. 1, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 457,876 $ 10,014 $ — $ 467,890 Other assets (1) 96,598 — — 96,598 Total assets at fair value $ 554,474 $ 10,014 $ — $ 564,488 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jul. 2, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 625,281 $ 10,007 $ — $ 635,288 Other assets (1) 64,290 — — 64,290 Total assets at fair value $ 689,571 $ 10,007 $ — $ 699,578 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Apr. 01, 2023 | |
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 12 months within prepaid expenses and other current assets and includes fixed income securities maturing in more than 12 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 2023. The following table presents the company’s available-for-sale marketable securities as of April 1, 2023 and July 2, 2022: Apr. 1, 2023 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 $ 98,637 $ 277 $ (6,418) $ 92,496 $ 7,812 $ 84,684 Government bonds 29,851 — (1,407) 28,444 — 28,444 Total marketable securities $ 128,488 $ 277 $ (7,825) $ 120,940 $ 7,812 $ 113,128 Jul. 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 $ 96,167 $ 8 $ (5,995) $ 90,180 $ 5,983 $ 84,197 Government bonds 30,070 — (302) 29,768 — 29,768 Total marketable securities $ 126,237 $ 8 $ (6,297) $ 119,948 $ 5,983 $ 113,965 As of April 1, 2023, 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. 1, 2023 (In thousands) Due in one year or less $ 7,812 Due after one year through five years 66,939 Due after five years through ten years 46,189 Total $ 120,940 There were no significant realized gains or losses in marketable securities in the first 39 weeks of fiscal 2023. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Apr. 01, 2023 | |
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. 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, British pound sterling, 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 1, 2023 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 2023 to August 2023) Swedish Krona 373 Various (May 2023 to October 2023) British Pound Sterling 18 June 2023 Euro 500 Hedging of fuel risk Various (April 2023 to June 2025) Gallons 79 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of April 1, 2023 and July 2, 2022 are as follows: Derivative Fair Value Balance Sheet location Apr. 1, 2023 Jul. 2, 2022 (In thousands) Fair Value Hedges: Interest rate swaps Other current liabilities $ 3,443 $ 2,820 Cash Flow Hedges: Fuel swaps Other current assets $ 1,463 $ 47,170 Foreign currency forwards Other current assets 326 633 Fuel swaps Other assets 32 — Fuel swaps Other current liabilities 10,638 — Foreign currency forwards Other current liabilities 81 — Fuel swaps Other long-term liabilities 5,628 209 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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (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 $ 134,931 $ 124,018 $ 391,123 $ 495,131 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (4,888) $ 1,656 $ (5,197) $ 29,011 Derivatives designated as hedging instruments (394) (4,628) (5,008) (52,491) 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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (In thousands) Interest expense $ (1,940) $ (1,938) $ (5,819) $ (13,830) Decrease in fair value of debt 2,948 (3,594) (622) (42,841) Hedged items $ (4,888) $ 1,656 $ (5,197) $ 29,011 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 1, 2023 and April 2, 2022, presented on a pretax basis, are as follows: 13-Week Period Ended Apr. 1, 2023 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 $ (27,031) Operating expense $ (969) Foreign currency contracts (878) Cost of sales / Other income — Total $ (27,909) $ (969) Derivatives in net investment hedging relationships: Foreign denominated debt $ (7,201) N/A $ — 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 $ — 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 1, 2023 and April 2, 2022, presented on a pretax basis, are as follows: 39-Week Period Ended Apr. 1, 2023 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 $ (62,186) Operating expense $ 24,393 Foreign currency contracts (543) Cost of sales / Other income — Total $ (62,729) $ 24,393 Derivatives in net investment hedging relationships: Foreign denominated debt $ (20,854) N/A $ — 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 $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of April 1, 2023 are as follows: Apr. 1, 2023 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (569,098) $ 3,443 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 2, 2022 are as follows: Jul. 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: Current maturities of long-term debt $ (568,601) $ 2,820 |
DEBT
DEBT | 9 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Sysco has a long-term revolving credit facility that includes aggregate commitments of the lenders thereunder of $3.0 billion, with an option to increase such commitments to $4.0 billion. As of April 1, 2023, there were $108.5 million in borrowings outstanding under this facility. Sysco has a U.S commercial paper program allowing the company to issue short-term unsecured notes. On September 2, 2022, Sysco entered into an amended and restated commercial paper dealer agreement increasing the issuance allowance from an aggregate amount not to exceed $2.0 billion to an aggregate amount not to exceed $3.0 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 1, 2023, there were no commercial paper issuances outstanding under this program. The total carrying value of our debt was $11.0 billion as of April 1, 2023 and $10.6 billion as of July 2, 2022. The increase in the carrying value of our debt from the prior year was due to new financing leases in support of equipment and borrowings under our long-term revolving credit facility. Information regarding the guarantors of our registered debt securities is contained in the section captioned Guarantor Summarized Financial Information in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I of this Form 10-Q. |
COMPANY-SPONSORED EMPLOYEE BENE
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Apr. 01, 2023 | |
Retirement Benefits [Abstract] | |
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. On October 25, 2022, the Sysco Corporation Retirement Plan (the Plan) executed an agreement with Massachusetts Mutual Life Insurance Company (the Insurer). Under this agreement, the Plan purchased a nonparticipating single premium group annuity contract using Plan assets that transferred to the Insurer $695.0 million of the Plan’s defined benefit pension obligations related to certain pension benefits. The contract covers approximately 10,000 Sysco participants and beneficiaries (the Transferred Participants) in the U.S. pension plan (the U.S. Retirement Plan). Under the group annuity contract, the Insurer made an unconditional and irrevocable commitment to pay the pension benefits of each Transferred Participant that were due on or after January 1, 2023. The transaction resulted in no changes to the amount of benefits payable to the Transferred Participants. As a result of the transaction, the company recognized a one-time, non-cash pre-tax pension settlement charge of $315.4 million in the second quarter of fiscal 2023 primarily related to the accelerated recognition of actuarial losses included within accumulated other comprehensive loss in the statement of changes in consolidated shareholders’ equity. The transaction also required the company to remeasure the benefit obligations and plan assets of the U.S. Retirement Plan. The remeasurement reflects the use of an updated discount rate and an expected rate of return on plan assets as of October 31, 2022, applying the practical expedient to remeasure plan assets and obligations as of the nearest calendar month-end date. Funded Status The following table presents the changes in benefit obligations and plan assets of the U.S. Retirement Plan affected by the interim remeasurements described above for the 39-week period ended April 1, 2023: U.S. Retirement Plan (In thousands) Change in benefit obligation: Benefit obligation at July 2, 2022 $ 3,538,232 Service cost 6,247 Interest cost 116,508 Actuarial gain, net (440,311) Benefit payments (96,768) Settlements (694,998) Benefit obligation at April 1, 2023 2,428,910 Change in plan assets: Fair value of plan assets at July 2, 2022 3,633,167 Actual return on plan assets (420,775) Benefit payments (96,768) Settlements (694,998) Fair value of plan assets at April 1, 2023 2,420,626 Funded status at April 1, 2023 $ (8,284) Components of Net Benefit Costs The components of net company-sponsored benefit cost for the U.S. Retirement Plan for the third quarter and first 39 weeks of fiscal 2023 and fiscal 2022 are as follows: 13-Week Period Ended 39-Week Period Ended Apr. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (In thousands) (In thousands) Service cost $ 1,890 $ 3,382 $ 6,247 $ 10,146 Interest cost 35,904 34,792 116,508 104,376 Expected return on plan assets (35,425) (51,580) (112,402) (154,740) Amortization of prior service cost 98 99 295 297 Amortization of actuarial loss 7,018 7,304 23,627 21,912 Settlement loss recognized — — 315,354 — Net pension (benefits) costs $ 9,485 $ (6,003) $ 349,629 $ (18,009) The components of net company-sponsored benefit costs other than the service cost component are reported in Other expense (income), net within the consolidated results of operations. Assumptions The remeasurement of the benefit obligations and plan assets of the U.S. Retirement Plan that took place on October 31, 2022 reflects an updated discount rate and an updated expected rate of return on plan assets. The discount rate used to determine benefit obligations as of the remeasurement date was 6.07%, as compared to the discount rate of 4.91% that was used |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Apr. 01, 2023 | |
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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 429,604 $ 303,325 $ 1,036,388 $ 848,779 Denominator: Weighted-average basic shares outstanding 507,716,975 508,368,159 507,635,083 510,642,876 Dilutive effect of share-based awards 2,125,425 3,870,364 2,488,699 3,555,904 Weighted-average diluted shares outstanding 509,842,400 512,238,523 510,123,782 514,198,780 Basic earnings per share $ 0.85 $ 0.60 $ 2.04 $ 1.66 Diluted earnings per share $ 0.84 $ 0.59 $ 2.03 $ 1.65 The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,264,000 and 1,105,000 for the third quarter of fiscal 2023 and fiscal 2022, respectively. The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 1,835,000 and 1,731,000 for the first 39 weeks of fiscal 2023 and fiscal 2022, respectively. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Apr. 01, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $473.5 million and $240.6 million for the third quarter of fiscal 2023 and fiscal 2022, respectively. Comprehensive income was $1.2 billion and $698.5 million for the first 39 weeks of fiscal 2023 and fiscal 2022, 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. 1, 2023 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 7,472 1,867 5,605 Total reclassification adjustments 7,571 1,892 5,679 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A 62,771 — 62,771 Marketable securities: Change in marketable securities (1) N/A 1,441 302 1,139 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge Operating expenses (2) (27,909) (5,454) (22,455) Change in net investment hedge N/A (7,201) (1,800) (5,401) Total other comprehensive income (loss) before reclassification adjustments (35,110) (7,254) (27,856) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,893 723 2,170 Total other comprehensive income (loss) $ 39,566 $ (4,337) $ 43,903 (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 2023. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 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 hedges Operating expenses (2) 24,039 5,664 18,375 Change in net investment hedges 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 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 2022 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Apr. 1, 2023 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial loss, arising in the current year Other expense, net $ (89,851) $ (22,463) $ (67,388) Settlements Other expense, net 315,455 78,864 236,591 Total other comprehensive income before reclassification adjustments 225,604 56,401 169,203 Reclassification adjustments: Amortization of prior service cost Other expense, net 297 75 222 Amortization of actuarial loss, net Other expense, net 24,158 6,034 18,124 Total reclassification adjustments 24,455 6,109 18,346 Foreign currency translation: Foreign currency translation adjustment N/A 72,403 — 72,403 Marketable securities: Change in marketable securities (1) N/A (1,260) (265) (995) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (62,729) (14,087) (48,642) Change in net investment hedges N/A (20,854) (5,213) (15,641) Total other comprehensive income (loss) before reclassification adjustments (83,583) (19,300) (64,283) Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,660 2,165 6,495 Total other comprehensive income $ 246,279 $ 45,110 $ 201,169 (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 2023. (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: 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. 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. 1, 2023 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jul. 2, 2022 $ (1,011,335) $ (501,517) $ 35,770 $ (4,972) $ (1,482,054) Net actuarial loss arising in the current year (67,388) — — — (67,388) Settlements 236,591 — — — 236,591 Equity adjustment from foreign currency translation — 72,403 — — 72,403 Amortization of cash flow hedges — — 6,495 — 6,495 Change in net investment hedges — — (15,641) — (15,641) Change in cash flow hedge — — (48,642) — (48,642) Amortization of unrecognized prior service cost 222 — — — 222 Amortization of unrecognized net actuarial losses 18,124 — — — 18,124 Change in marketable securities — — — (995) (995) Balance as of Apr. 1, 2023 $ (823,786) $ (429,114) $ (22,018) $ (5,967) $ (1,280,885) 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) |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Apr. 01, 2023 | |
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 2023, options to purchase 916,673 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 2023 was $24.58. In the first 39 weeks of fiscal 2023, employees were granted 441,153 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 2023 was $85.31. 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 2023, employees were granted 889,635 restricted stock units. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2023 was $75.70. Employee Stock Purchase Plan Plan participants purchased 792,411 shares of common stock under the ESPP during the first 39 weeks of fiscal 2023. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $11.15 during the first 39 weeks of fiscal 2023. 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 $73.8 million and $90.7 million for the first 39 weeks of fiscal 2023 and fiscal 2022, respectively. As of April 1, 2023, there was $149.4 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.05 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Apr. 01, 2023 | |
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 2023 were 22.46% and 21.92%, respectively. The third quarter was favorably impacted by a cumulative effect of the change in the effective tax rate. The first 39 weeks of fiscal 2023 were favorably impacted by the benefit of the pension buyout and excess tax benefits of equity-based compensation. The effective tax rates for the third quarter and first 39 weeks of fiscal 2022 were 21.31% and 23.18%, respectively. The 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 and the impact of non-taxable corporate-owned life insurance policies. For the first 39 weeks of fiscal 2022, these were partially offset by the increase in our reserve for uncertain tax positions recognized in the first quarter of fiscal 2022. Uncertain Tax Positions As of April 1, 2023, the gross amount of unrecognized tax benefit and related accrued interest was $32.4 million and $7.4 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions of the company will increase or decrease in the next 12 months. At this time, an estimate of the range of the reasonably possible change cannot be made. During the third quarter of fiscal 2023, Sysco received a Statutory Notice of Deficiency from the Internal Revenue Service, mainly related to foreign tax credits generated in fiscal 2018 from repatriated earnings primarily from our Canadian operations. In the fourth quarter (April 18th) of fiscal 2023, the company filed suit in the U.S. Tax Court challenging the validity of certain tax regulations related to the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of the Tax Cuts and Jobs Act of 2017 (TCJA). The lawsuit seeks to have the court invalidate these regulations, which would affirm the company’s position regarding its foreign tax credits. Sysco has previously recorded a benefit of $131.0 million attributable to its interpretation of the TCJA and the Internal Revenue Code. If the company is ultimately unsuccessful in defending its position, it may be required to reverse all, or some portion, of the benefit previously recorded. Other The Inflation Reduction Act of 2022 (Inflation Reduction Act) was enacted on August 16, 2022. The Inflation Reduction Act imposes a new 15% corporate alternative minimum tax (CAMT) on “applicable corporations” for taxable years beginning after December 31, 2022. The CAMT is imposed to the extent the alternative minimum tax exceeds a corporation’s regular tax liability. A corporation that pays alternative minimum tax is eligible for a credit against income tax in future years. 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 United States (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. 01, 2023 | |
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. 01, 2023 | |
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 – primarily includes (a) our 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 produce distribution business, our Specialty Meats and Seafood Group specialty protein operations, our growing Italian Specialty platform anchored by Greco & Sons, our Asian specialty distribution company and a number of other small specialty businesses that are not material to our operations; • International Foodservice Operations – includes operations outside of the U.S., 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 export operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom (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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 13,257,519 $ 12,006,163 $ 39,937,055 $ 35,107,281 International Foodservice Operations 3,344,121 2,834,089 9,910,267 8,535,608 SYGMA 1,972,058 1,794,837 5,839,051 5,270,193 Other 301,978 267,050 910,086 765,806 Total $ 18,875,676 $ 16,902,139 $ 56,596,459 $ 49,678,888 13-Week Period Ended 39-Week Period Ended Apr. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 Operating income (loss): (In thousands) (In thousands) U.S. Foodservice Operations $ 855,766 $ 746,467 $ 2,540,555 $ 2,220,812 International Foodservice Operations 48,352 7,760 192,945 55,181 SYGMA 25,439 4,362 37,715 (4,814) Other 11,836 (3,972) 33,255 2,667 Total segments 941,393 754,617 2,804,470 2,273,846 Global Support Center (247,216) (258,888) (735,318) (701,526) Total operating income 694,177 495,729 2,069,152 1,572,320 Interest expense 134,931 124,018 391,123 495,131 Other expense (income), net 5,209 (13,777) 350,614 (27,705) Earnings before income taxes $ 554,037 $ 385,488 $ 1,327,415 $ 1,104,894 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liabilities – Supplier Financing Programs | Liabilities – Supplier Financing Programs In September 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-04, Liabilities—Supplier Finance Programs, Subtopic 405-50, that requires entities to disclose in the annual financial statements the key terms of supplier finance programs they use in connection with the purchase of goods and services, along with information about their obligations under these programs, including a roll forward of those obligations. Additionally, the guidance requires disclosure of the outstanding amount of the obligations as of the end of each interim period. The guidance does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. The guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2022, which is the first quarter of fiscal 2024 for Sysco, except for the roll forward requirement, which is effective annually for fiscal years beginning after December 15, 2023, which is fiscal year 2025 for Sysco. Early adoption is permitted. |
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. 01, 2023 | |
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. 1, 2023 Apr. 2, 2022 (In thousands) Cash and cash equivalents $ 757,867 $ 876,139 Restricted cash (1) 96,598 68,954 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 854,465 $ 945,093 (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. 1, 2023 Apr. 2, 2022 (In thousands) Cash and cash equivalents $ 757,867 $ 876,139 Restricted cash (1) 96,598 68,954 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 854,465 $ 945,093 (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 Non-cash Investing and Financing Activities | The following table sets forth the company’s non-cash investing and financing activities: Apr. 1, 2023 Apr. 2, 2022 (In thousands) Non-cash investing and financing activities: Plant and equipment acquired through financing programs $ 111,771 $ — Assets obtained in exchange for finance lease obligations 99,776 155,541 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
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. 1, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 2,649,632 $ 743,056 $ 244,695 $ — $ 3,637,383 Fresh and frozen meats 2,378,124 474,824 461,897 — 3,314,845 Frozen fruits, vegetables, bakery and other 1,949,160 548,719 336,495 — 2,834,374 Dairy products 1,513,084 404,943 162,065 — 2,080,092 Poultry 1,266,096 288,185 272,727 — 1,827,008 Fresh produce 1,288,241 255,615 66,458 — 1,610,314 Paper and disposables 988,448 131,784 205,353 14,561 1,340,146 Seafood 587,726 111,779 51,077 — 750,582 Beverage products 328,221 145,013 144,703 21,957 639,894 Other (1) 308,787 240,203 26,588 265,460 841,038 Total Sales $ 13,257,519 $ 3,344,121 $ 1,972,058 $ 301,978 $ 18,875,676 (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 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. 39-Week Period Ended Apr. 1, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 7,729,545 $ 2,135,052 $ 717,588 $ 2,002 $ 10,584,187 Fresh and frozen meats 7,234,503 1,373,206 1,377,707 — 9,985,416 Frozen fruits, vegetables, bakery and other 5,643,893 1,724,851 984,070 149 8,352,963 Dairy products 4,536,602 1,130,429 487,466 — 6,154,497 Poultry 4,169,417 866,378 815,461 — 5,851,256 Fresh produce 4,011,326 767,993 197,801 — 4,977,120 Paper and disposables 2,987,583 410,358 625,402 43,102 4,066,445 Seafood 1,773,891 342,270 129,010 — 2,245,171 Beverage products 947,633 415,004 419,541 67,929 1,850,107 Other (1) 902,662 744,726 85,005 796,904 2,529,297 Total Sales $ 39,937,055 $ 9,910,267 $ 5,839,051 $ 910,086 $ 56,596,459 (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. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
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 1, 2023 and July 2, 2022: Assets Measured at Fair Value as of Apr. 1, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 457,876 $ 10,014 $ — $ 467,890 Other assets (1) 96,598 — — 96,598 Total assets at fair value $ 554,474 $ 10,014 $ — $ 564,488 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jul. 2, 2022 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 625,281 $ 10,007 $ — $ 635,288 Other assets (1) 64,290 — — 64,290 Total assets at fair value $ 689,571 $ 10,007 $ — $ 699,578 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
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 1, 2023 and July 2, 2022: Apr. 1, 2023 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 $ 98,637 $ 277 $ (6,418) $ 92,496 $ 7,812 $ 84,684 Government bonds 29,851 — (1,407) 28,444 — 28,444 Total marketable securities $ 128,488 $ 277 $ (7,825) $ 120,940 $ 7,812 $ 113,128 Jul. 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 $ 96,167 $ 8 $ (5,995) $ 90,180 $ 5,983 $ 84,197 Government bonds 30,070 — (302) 29,768 — 29,768 Total marketable securities $ 126,237 $ 8 $ (6,297) $ 119,948 $ 5,983 $ 113,965 |
Schedule of Available-For-Sale Debt Securities Held To Actual Maturity | As of April 1, 2023, 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. 1, 2023 (In thousands) Due in one year or less $ 7,812 Due after one year through five years 66,939 Due after five years through ten years 46,189 Total $ 120,940 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Swap Agreements | Details of outstanding hedging instruments as of April 1, 2023 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 2023 to August 2023) Swedish Krona 373 Various (May 2023 to October 2023) British Pound Sterling 18 June 2023 Euro 500 Hedging of fuel risk Various (April 2023 to June 2025) Gallons 79 |
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 1, 2023 and July 2, 2022 are as follows: Derivative Fair Value Balance Sheet location Apr. 1, 2023 Jul. 2, 2022 (In thousands) Fair Value Hedges: Interest rate swaps Other current liabilities $ 3,443 $ 2,820 Cash Flow Hedges: Fuel swaps Other current assets $ 1,463 $ 47,170 Foreign currency forwards Other current assets 326 633 Fuel swaps Other assets 32 — Fuel swaps Other current liabilities 10,638 — Foreign currency forwards Other current liabilities 81 — Fuel swaps Other long-term liabilities 5,628 209 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of April 1, 2023 are as follows: Apr. 1, 2023 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (569,098) $ 3,443 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 2, 2022 are as follows: Jul. 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: Current maturities of long-term debt $ (568,601) $ 2,820 |
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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (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 $ 134,931 $ 124,018 $ 391,123 $ 495,131 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (4,888) $ 1,656 $ (5,197) $ 29,011 Derivatives designated as hedging instruments (394) (4,628) (5,008) (52,491) 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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (In thousands) Interest expense $ (1,940) $ (1,938) $ (5,819) $ (13,830) Decrease in fair value of debt 2,948 (3,594) (622) (42,841) Hedged items $ (4,888) $ 1,656 $ (5,197) $ 29,011 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 1, 2023 and April 2, 2022, presented on a pretax basis, are as follows: 13-Week Period Ended Apr. 1, 2023 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 $ (27,031) Operating expense $ (969) Foreign currency contracts (878) Cost of sales / Other income — Total $ (27,909) $ (969) Derivatives in net investment hedging relationships: Foreign denominated debt $ (7,201) N/A $ — 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 $ — 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 1, 2023 and April 2, 2022, presented on a pretax basis, are as follows: 39-Week Period Ended Apr. 1, 2023 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 $ (62,186) Operating expense $ 24,393 Foreign currency contracts (543) Cost of sales / Other income — Total $ (62,729) $ 24,393 Derivatives in net investment hedging relationships: Foreign denominated debt $ (20,854) N/A $ — 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 $ — |
COMPANY-SPONSORED EMPLOYEE BE_2
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans funded status | The following table presents the changes in benefit obligations and plan assets of the U.S. Retirement Plan affected by the interim remeasurements described above for the 39-week period ended April 1, 2023: U.S. Retirement Plan (In thousands) Change in benefit obligation: Benefit obligation at July 2, 2022 $ 3,538,232 Service cost 6,247 Interest cost 116,508 Actuarial gain, net (440,311) Benefit payments (96,768) Settlements (694,998) Benefit obligation at April 1, 2023 2,428,910 Change in plan assets: Fair value of plan assets at July 2, 2022 3,633,167 Actual return on plan assets (420,775) Benefit payments (96,768) Settlements (694,998) Fair value of plan assets at April 1, 2023 2,420,626 Funded status at April 1, 2023 $ (8,284) |
Schedule of defined benefit plans components of net benefit cost | The components of net company-sponsored benefit cost for the U.S. Retirement Plan for the third quarter and first 39 weeks of fiscal 2023 and fiscal 2022 are as follows: 13-Week Period Ended 39-Week Period Ended Apr. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (In thousands) (In thousands) Service cost $ 1,890 $ 3,382 $ 6,247 $ 10,146 Interest cost 35,904 34,792 116,508 104,376 Expected return on plan assets (35,425) (51,580) (112,402) (154,740) Amortization of prior service cost 98 99 295 297 Amortization of actuarial loss 7,018 7,304 23,627 21,912 Settlement loss recognized — — 315,354 — Net pension (benefits) costs $ 9,485 $ (6,003) $ 349,629 $ (18,009) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 429,604 $ 303,325 $ 1,036,388 $ 848,779 Denominator: Weighted-average basic shares outstanding 507,716,975 508,368,159 507,635,083 510,642,876 Dilutive effect of share-based awards 2,125,425 3,870,364 2,488,699 3,555,904 Weighted-average diluted shares outstanding 509,842,400 512,238,523 510,123,782 514,198,780 Basic earnings per share $ 0.85 $ 0.60 $ 2.04 $ 1.66 Diluted earnings per share $ 0.84 $ 0.59 $ 2.03 $ 1.65 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
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. 1, 2023 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 7,472 1,867 5,605 Total reclassification adjustments 7,571 1,892 5,679 Foreign currency translation: Other comprehensive income before reclassification adjustments: Foreign currency translation adjustment N/A 62,771 — 62,771 Marketable securities: Change in marketable securities (1) N/A 1,441 302 1,139 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedge Operating expenses (2) (27,909) (5,454) (22,455) Change in net investment hedge N/A (7,201) (1,800) (5,401) Total other comprehensive income (loss) before reclassification adjustments (35,110) (7,254) (27,856) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,893 723 2,170 Total other comprehensive income (loss) $ 39,566 $ (4,337) $ 43,903 (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 2023. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 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 hedges Operating expenses (2) 24,039 5,664 18,375 Change in net investment hedges 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 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 2022 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Apr. 1, 2023 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial loss, arising in the current year Other expense, net $ (89,851) $ (22,463) $ (67,388) Settlements Other expense, net 315,455 78,864 236,591 Total other comprehensive income before reclassification adjustments 225,604 56,401 169,203 Reclassification adjustments: Amortization of prior service cost Other expense, net 297 75 222 Amortization of actuarial loss, net Other expense, net 24,158 6,034 18,124 Total reclassification adjustments 24,455 6,109 18,346 Foreign currency translation: Foreign currency translation adjustment N/A 72,403 — 72,403 Marketable securities: Change in marketable securities (1) N/A (1,260) (265) (995) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (62,729) (14,087) (48,642) Change in net investment hedges N/A (20,854) (5,213) (15,641) Total other comprehensive income (loss) before reclassification adjustments (83,583) (19,300) (64,283) Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,660 2,165 6,495 Total other comprehensive income $ 246,279 $ 45,110 $ 201,169 (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 2023. (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: 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. |
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. 1, 2023 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jul. 2, 2022 $ (1,011,335) $ (501,517) $ 35,770 $ (4,972) $ (1,482,054) Net actuarial loss arising in the current year (67,388) — — — (67,388) Settlements 236,591 — — — 236,591 Equity adjustment from foreign currency translation — 72,403 — — 72,403 Amortization of cash flow hedges — — 6,495 — 6,495 Change in net investment hedges — — (15,641) — (15,641) Change in cash flow hedge — — (48,642) — (48,642) Amortization of unrecognized prior service cost 222 — — — 222 Amortization of unrecognized net actuarial losses 18,124 — — — 18,124 Change in marketable securities — — — (995) (995) Balance as of Apr. 1, 2023 $ (823,786) $ (429,114) $ (22,018) $ (5,967) $ (1,280,885) 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) |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended |
Apr. 01, 2023 | |
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. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 13,257,519 $ 12,006,163 $ 39,937,055 $ 35,107,281 International Foodservice Operations 3,344,121 2,834,089 9,910,267 8,535,608 SYGMA 1,972,058 1,794,837 5,839,051 5,270,193 Other 301,978 267,050 910,086 765,806 Total $ 18,875,676 $ 16,902,139 $ 56,596,459 $ 49,678,888 13-Week Period Ended 39-Week Period Ended Apr. 1, 2023 Apr. 2, 2022 Apr. 1, 2023 Apr. 2, 2022 Operating income (loss): (In thousands) (In thousands) U.S. Foodservice Operations $ 855,766 $ 746,467 $ 2,540,555 $ 2,220,812 International Foodservice Operations 48,352 7,760 192,945 55,181 SYGMA 25,439 4,362 37,715 (4,814) Other 11,836 (3,972) 33,255 2,667 Total segments 941,393 754,617 2,804,470 2,273,846 Global Support Center (247,216) (258,888) (735,318) (701,526) Total operating income 694,177 495,729 2,069,152 1,572,320 Interest expense 134,931 124,018 391,123 495,131 Other expense (income), net 5,209 (13,777) 350,614 (27,705) Earnings before income taxes $ 554,037 $ 385,488 $ 1,327,415 $ 1,104,894 |
BASIS OF PRESENTATION - Reconci
BASIS OF PRESENTATION - Reconciliation and Restricted Cash, Cash Equivalents (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 | Apr. 02, 2022 | Jul. 03, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 757,867 | $ 867,086 | $ 876,139 | |
Restricted cash | 96,598 | 68,954 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 854,465 | $ 931,376 | $ 945,093 | $ 3,037,100 |
BASIS OF PRESENTATION - Non-cas
BASIS OF PRESENTATION - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Non-cash investing and financing activities: | ||
Plant and equipment acquired through financing programs | $ 111,771 | $ 0 |
Assets obtained in exchange for finance lease obligations | $ 99,776 | $ 155,541 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Billions | Apr. 01, 2023 | Jul. 02, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Customer receivables included in accounts and notes receivable, net | $ 4.9 | $ 4.6 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 18,875,676 | $ 16,902,139 | $ 56,596,459 | $ 49,678,888 |
Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,637,383 | 2,990,490 | 10,584,187 | 8,590,806 |
Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,314,845 | 3,177,983 | 9,985,416 | 9,827,405 |
Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,834,374 | 2,393,793 | 8,352,963 | 7,005,432 |
Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,080,092 | 1,676,766 | 6,154,497 | 4,766,793 |
Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,827,008 | 1,901,703 | 5,851,256 | 5,538,754 |
Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,610,314 | 1,446,197 | 4,977,120 | 4,035,280 |
Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,340,146 | 1,251,545 | 4,066,445 | 3,701,367 |
Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 750,582 | 773,812 | 2,245,171 | 2,351,544 |
Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 639,894 | 523,953 | 1,850,107 | 1,561,017 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 841,038 | 765,897 | 2,529,297 | 2,300,490 |
US Foodservice Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,257,519 | 12,006,163 | 39,937,055 | 35,107,281 |
US Foodservice Operations | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,649,632 | 2,194,073 | 7,729,545 | 6,358,629 |
US Foodservice Operations | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,378,124 | 2,295,514 | 7,234,503 | 7,143,738 |
US Foodservice Operations | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,949,160 | 1,597,129 | 5,643,893 | 4,606,909 |
US Foodservice Operations | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,513,084 | 1,230,092 | 4,536,602 | 3,445,668 |
US Foodservice Operations | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,266,096 | 1,425,320 | 4,169,417 | 4,127,709 |
US Foodservice Operations | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,288,241 | 1,162,694 | 4,011,326 | 3,187,379 |
US Foodservice Operations | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 988,448 | 930,526 | 2,987,583 | 2,736,429 |
US Foodservice Operations | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 587,726 | 630,833 | 1,773,891 | 1,909,559 |
US Foodservice Operations | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 328,221 | 264,087 | 947,633 | 766,829 |
US Foodservice Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 308,787 | 275,895 | 902,662 | 824,432 |
International Foodservice Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,344,121 | 2,834,089 | 9,910,267 | 8,535,608 |
International Foodservice Operations | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 743,056 | 593,156 | 2,135,052 | 1,735,674 |
International Foodservice Operations | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 474,824 | 398,378 | 1,373,206 | 1,211,781 |
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 548,719 | 514,418 | 1,724,851 | 1,550,944 |
International Foodservice Operations | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 404,943 | 308,260 | 1,130,429 | 902,752 |
International Foodservice Operations | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 288,185 | 232,456 | 866,378 | 714,412 |
International Foodservice Operations | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 255,615 | 222,765 | 767,993 | 656,552 |
International Foodservice Operations | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 131,784 | 121,184 | 410,358 | 355,559 |
International Foodservice Operations | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 111,779 | 100,312 | 342,270 | 332,114 |
International Foodservice Operations | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 145,013 | 116,590 | 415,004 | 340,966 |
International Foodservice Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 240,203 | 226,570 | 744,726 | 734,854 |
SYGMA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,972,058 | 1,794,837 | 5,839,051 | 5,270,193 |
SYGMA | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 244,695 | 203,184 | 717,588 | 496,396 |
SYGMA | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 461,897 | 484,082 | 1,377,707 | 1,471,877 |
SYGMA | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 336,495 | 282,246 | 984,070 | 847,579 |
SYGMA | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 162,065 | 138,414 | 487,466 | 418,373 |
SYGMA | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 272,727 | 243,927 | 815,461 | 696,633 |
SYGMA | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 66,458 | 60,738 | 197,801 | 191,349 |
SYGMA | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 205,353 | 186,801 | 625,402 | 568,054 |
SYGMA | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 51,077 | 42,667 | 129,010 | 109,871 |
SYGMA | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 144,703 | 124,058 | 419,541 | 393,089 |
SYGMA | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,588 | 28,720 | 85,005 | 76,972 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 301,978 | 267,050 | 910,086 | 765,806 |
Other | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 77 | 2,002 | 107 |
Other | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 9 | 0 | 9 |
Other | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 149 | 0 |
Other | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,561 | 13,034 | 43,102 | 41,325 |
Other | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,957 | 19,218 | 67,929 | 60,133 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 265,460 | $ 234,712 | $ 796,904 | $ 664,232 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Thousands | 9 Months Ended | ||
Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Aug. 12, 2021 center | |
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net of cash acquired | $ 37,384 | $ 1,281,835 | |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net of cash acquired | $ 37,400 | ||
Payable term for contingent consideration | 3 years | ||
Contingent consideration outstanding | $ 57,200 | ||
Series of Individually Immaterial Business Acquisitions | Earnout Liabilities | |||
Business Acquisition [Line Items] | |||
Contingent consideration outstanding | $ 53,700 | ||
Greco and Sons | |||
Business Acquisition [Line Items] | |||
Number of distribution centers | center | 10 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value Table (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 467,890 | $ 635,288 |
Other assets | 96,598 | 64,290 |
Total assets at fair value | 564,488 | 699,578 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 457,876 | 625,281 |
Other assets | 96,598 | 64,290 |
Total assets at fair value | 554,474 | 689,571 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 10,014 | 10,007 |
Other assets | 0 | 0 |
Total assets at fair value | 10,014 | 10,007 |
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. 01, 2023 | Jul. 02, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 10.7 | $ 10.5 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 11 | $ 10.6 |
MARKETABLE SECURITIES - Availab
MARKETABLE SECURITIES - Available-For-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 |
Marketable Securities [Line Items] | ||
Amortized Cost Basis | $ 128,488 | $ 126,237 |
Gross Unrealized Gains | 277 | 8 |
Gross Unrealized Losses | (7,825) | (6,297) |
Fair Value | 120,940 | 119,948 |
Short-Term Marketable Securities | 7,812 | 5,983 |
Long-Term Marketable Securities | 113,128 | 113,965 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 98,637 | 96,167 |
Gross Unrealized Gains | 277 | 8 |
Gross Unrealized Losses | (6,418) | (5,995) |
Fair Value | 92,496 | 90,180 |
Short-Term Marketable Securities | 7,812 | 5,983 |
Long-Term Marketable Securities | 84,684 | 84,197 |
Government bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 29,851 | 30,070 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,407) | (302) |
Fair Value | 28,444 | 29,768 |
Short-Term Marketable Securities | 0 | 0 |
Long-Term Marketable Securities | $ 28,444 | $ 29,768 |
MARKETABLE SECURITIES - Avail_2
MARKETABLE SECURITIES - Available-For-Sale Debt Securities Held To Actual Maturity (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 7,812 | |
Due after one year through five years | 66,939 | |
Due after five years through ten years | 46,189 | |
Amortized Cost Basis | $ 120,940 | $ 119,948 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Outstanding Swap Agreements (Details) - 9 months ended Apr. 01, 2023 € in Millions, £ in Millions, kr in Millions, gal in Millions | EUR (€) gal | SEK (kr) | GBP (£) |
Hedging of interest rate risk, June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | € 500 | ||
Hedging of foreign currency risk Various (April 2023 to October 2023) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | kr 373 | £ 18 | |
Hedging of foreign currency risk euro , June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | € 500 | ||
Fuel swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount (in gallons) | gal | 79 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Derivatives Balance Sheet Location Table (Details) - Hedging Instrument - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 |
Fair Value Hedges | Interest rate swap agreements | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 3,443 | $ 2,820 |
Cash Flow Hedges | Fuel swaps | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 1,463 | 47,170 |
Cash Flow Hedges | Fuel swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 32 | 0 |
Cash Flow Hedges | Fuel swaps | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 10,638 | 0 |
Cash Flow Hedges | Fuel swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 5,628 | 209 |
Cash Flow Hedges | Foreign currency forwards | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 326 | 633 |
Cash Flow Hedges | Foreign currency forwards | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 81 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Location and Effect of Derivative Instruments and Related Hedged Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Derivative [Line Items] | ||||
Interest expense | $ 134,931 | $ 124,018 | $ 391,123 | $ 495,131 |
Interest expense | (1,940) | (1,938) | (5,819) | (13,830) |
Decrease in fair value of debt | 2,948 | (3,594) | (622) | (42,841) |
Hedging Instrument | Fair Value Hedges | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Hedged items | (4,888) | 1,656 | (5,197) | 29,011 |
Derivatives designated as hedging instruments | $ (394) | $ (4,628) | $ (5,008) | $ (52,491) |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges (Details) - Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | $ (27,909) | $ 24,039 | $ (62,729) | $ 15,532 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - cash flow hedging | (969) | 9,302 | 24,393 | 26,882 |
Cash Flow Hedges | Fuel swaps | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | (27,031) | 24,097 | (62,186) | 16,024 |
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 | (969) | 9,302 | 24,393 | 26,882 |
Cash Flow Hedges | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | (878) | (58) | (543) | (492) |
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 | 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 | (7,201) | 16,055 | (20,854) | 40,757 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - net investment hedging | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Location of Hedged Liabilities (Details) - Current maturities of long-term debt - USD ($) $ in Thousands | Apr. 01, 2023 | Jul. 02, 2022 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (569,098) | $ (568,601) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ 3,443 | $ 2,820 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 02, 2022 | Apr. 01, 2023 | Jul. 02, 2022 | |
Debt [Line Items] | |||
Maximum board-authorized aggregate commercial paper limit | $ 2,000,000,000 | $ 3,000,000,000 | |
Total carrying value of debt | 10,700,000,000 | $ 10,500,000,000 | |
Carrying Value | |||
Debt [Line Items] | |||
Total carrying value of debt | 11,000,000,000 | $ 10,600,000,000 | |
Line of Credit | Revolving Credit Facility | |||
Debt [Line Items] | |||
Aggregate commitments | 3,000,000,000 | ||
Increase in commitment fee amount | 4,000,000,000 | ||
Borrowings outstanding under revolving credit facility | 108,500,000 | ||
Commercial Paper | |||
Debt [Line Items] | |||
Debt issuances outstanding | $ 0 |
COMPANY-SPONSORED EMPLOYEE BE_3
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Narrative (Details) participant in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Oct. 25, 2022 USD ($) participant | Apr. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Oct. 01, 2022 | Apr. 02, 2022 USD ($) | Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Oct. 31, 2022 | Jul. 02, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Pension settlement charge | $ 315,354 | $ 0 | |||||||
United States | Pension Benefits | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Settlements | $ 695,000 | 694,998 | |||||||
Number of participants | participant | 10 | ||||||||
Pension settlement charge | $ 0 | $ 315,400 | $ 0 | $ 315,354 | $ 0 | ||||
Discount rate | 6.07% | 4.91% | |||||||
Expected rate of return | 4.50% | 6% |
COMPANY-SPONSORED EMPLOYEE BE_4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - FUNDED STATUS (Details) - Pension Benefits - United States - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 25, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Change in benefit obligation: | |||||
Benefit obligation at beginning of year | $ 3,538,232 | ||||
Service cost | $ 1,890 | $ 3,382 | 6,247 | $ 10,146 | |
Interest cost | 35,904 | $ 34,792 | 116,508 | $ 104,376 | |
Actuarial gain, net | (440,311) | ||||
Benefit payments | (96,768) | ||||
Settlements | $ (695,000) | (694,998) | |||
Benefit obligation at end of year | 2,428,910 | 2,428,910 | |||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 3,633,167 | ||||
Actual return on plan assets | (420,775) | ||||
Benefit payments | (96,768) | ||||
Settlements | $ (695,000) | (694,998) | |||
Fair value of plan assets at end of year | 2,420,626 | 2,420,626 | |||
Funded status at end of year | $ (8,284) | $ (8,284) |
COMPANY-SPONSORED EMPLOYEE BE_5
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET BENEFIT COSTS AND OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Net benefit costs | |||||
Settlement loss recognized | $ 315,354 | $ 0 | |||
Pension Benefits | United States | |||||
Net benefit costs | |||||
Service cost | $ 1,890 | $ 3,382 | 6,247 | 10,146 | |
Interest cost | 35,904 | 34,792 | 116,508 | 104,376 | |
Expected return on plan assets | (35,425) | (51,580) | (112,402) | (154,740) | |
Amortization of prior service cost | 98 | 99 | 295 | 297 | |
Amortization of actuarial loss | 7,018 | 7,304 | 23,627 | 21,912 | |
Settlement loss recognized | 0 | $ 315,400 | 0 | 315,354 | 0 |
Net pension (benefits) costs | $ 9,485 | $ (6,003) | $ 349,629 | $ (18,009) |
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. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Numerator: | ||||
Net earnings | $ 429,604 | $ 303,325 | $ 1,036,388 | $ 848,779 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 507,716,975 | 508,368,159 | 507,635,083 | 510,642,876 |
Dilutive effect of share-based awards (in shares) | 2,125,425 | 3,870,364 | 2,488,699 | 3,555,904 |
Weighted-average diluted shares outstanding (in shares) | 509,842,400 | 512,238,523 | 510,123,782 | 514,198,780 |
Basic earnings per share (in dollars per share) | $ 0.85 | $ 0.60 | $ 2.04 | $ 1.66 |
Diluted earnings per share (in dollars per share) | $ 0.84 | $ 0.59 | $ 2.03 | $ 1.65 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 2,264 | 1,105 | 1,835 | 1,731 |
OTHER COMPREHENSIVE INCOME - Na
OTHER COMPREHENSIVE INCOME - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Comprehensive income | $ 473,507 | $ 240,579 | $ 1,237,557 | $ 698,539 |
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. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Before Tax Amount | ||||
Total other comprehensive income (loss) | $ 39,566 | $ (51,585) | $ 246,279 | $ (129,822) |
Tax | ||||
Total other comprehensive income (loss) | (4,337) | 11,161 | 45,110 | 20,418 |
Net of Tax Amount | ||||
Amortization of prior service cost | 30,568 | |||
Total other comprehensive income (loss) | 43,903 | (62,746) | 201,169 | (150,240) |
Pension and other postretirement benefit plans: | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 7,571 | 8,767 | 24,455 | 24,852 |
Tax | ||||
Amortization of prior service cost | 1,892 | 2,179 | 6,109 | 6,261 |
Net of Tax Amount | ||||
Amortization of prior service cost | 5,679 | 6,588 | 18,346 | 18,591 |
Net actuarial loss, arising in the current year | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | (67,388) | |||
Net actuarial loss, arising in the current year | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | (89,851) | |||
Tax | ||||
Amortization of prior service cost | (22,463) | |||
Net of Tax Amount | ||||
Amortization of prior service cost | (67,388) | |||
Settlements | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 236,591 | |||
Settlements | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 315,455 | |||
Tax | ||||
Amortization of prior service cost | 78,864 | |||
Net of Tax Amount | ||||
Amortization of prior service cost | 236,591 | |||
Total other comprehensive income before reclassification adjustments | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 225,604 | |||
Tax | ||||
Amortization of prior service cost | 56,401 | |||
Net of Tax Amount | ||||
Amortization of prior service cost | 169,203 | |||
Amortization of prior service cost | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 222 | 222 | ||
Amortization of prior service cost | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 99 | 99 | 297 | 297 |
Tax | ||||
Amortization of prior service cost | 25 | 25 | 75 | 75 |
Net of Tax Amount | ||||
Amortization of prior service cost | 74 | 74 | 222 | 222 |
Amortization of actuarial loss, net | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 18,124 | 18,369 | ||
Amortization of actuarial loss, net | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 7,472 | 8,668 | 24,158 | 24,555 |
Tax | ||||
Amortization of prior service cost | 1,867 | 2,154 | 6,034 | 6,186 |
Net of Tax Amount | ||||
Amortization of prior service cost | 5,605 | 6,514 | 18,124 | 18,369 |
Foreign currency translation adjustment | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 62,771 | (96,582) | 72,403 | (210,646) |
Tax | ||||
Before reclassifications tax | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | 62,771 | (96,582) | 72,403 | (210,646) |
Change in marketable securities | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 1,441 | (6,738) | (1,260) | (8,939) |
Tax | ||||
Before reclassifications tax | 302 | (1,415) | (265) | (1,876) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | 1,139 | (5,323) | (995) | (7,063) |
Hedging, net of tax | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (35,110) | 40,094 | (83,583) | 56,289 |
Tax | ||||
Before reclassifications tax | (7,254) | 9,678 | (19,300) | 13,876 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (27,856) | 30,416 | (64,283) | 42,413 |
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 6,495 | 6,465 | ||
Before reclassifications, net of tax | (48,642) | 11,845 | ||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (27,909) | 24,039 | (62,729) | 15,532 |
Tax | ||||
Before reclassifications tax | (5,454) | 5,664 | (14,087) | 3,687 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (22,455) | 18,375 | (48,642) | 11,845 |
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,893 | 2,874 | 8,660 | 8,622 |
Tax | ||||
Amortization of prior service cost | 723 | 719 | 2,165 | 2,157 |
Net of Tax Amount | ||||
Amortization of prior service cost | 2,170 | 2,155 | 6,495 | 6,465 |
Amounts reclassified from accumulated other comprehensive loss | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (7,201) | 16,055 | (20,854) | 40,757 |
Tax | ||||
Before reclassifications tax | (1,800) | 4,014 | (5,213) | 10,189 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | $ (5,401) | $ 12,041 | $ (15,641) | $ 30,568 |
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. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,436,589 | $ 1,221,072 | $ 1,382,260 | $ 1,552,896 |
Reclassification adjustment, net of tax | 30,568 | |||
Ending balance | 1,575,302 | 1,321,409 | 1,575,302 | 1,321,409 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,324,788) | (1,236,258) | (1,482,054) | (1,148,764) |
Ending balance | (1,280,885) | (1,299,004) | (1,280,885) | (1,299,004) |
Pension and Other Postretirement Benefit Plans, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,011,335) | (1,061,991) | ||
Ending balance | (823,786) | (1,043,400) | (823,786) | (1,043,400) |
Net actuarial loss, arising in the current year | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | (67,388) | |||
Pension and Other Postretirement Benefit Plans, Settlement | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 236,591 | |||
Settlements | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 236,591 | |||
Amortization of prior service cost | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 222 | 222 | ||
Amortization of unrecognized net actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 18,124 | 18,369 | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (501,517) | (40,092) | ||
OCI before reclassifications, net of tax | 62,771 | (96,582) | 72,403 | (210,646) |
Ending balance | (429,114) | (250,738) | (429,114) | (250,738) |
Hedging, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 35,770 | (51,096) | ||
OCI before reclassifications, net of tax | (27,856) | 30,416 | (64,283) | 42,413 |
Ending balance | (22,018) | (2,218) | (22,018) | (2,218) |
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (48,642) | 11,845 | ||
Reclassification adjustment, net of tax | 6,495 | 6,465 | ||
Amounts reclassified from accumulated other comprehensive loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (5,401) | 12,041 | (15,641) | 30,568 |
Change in net investment hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 30,568 | |||
Change in marketable securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,972) | 4,415 | ||
OCI before reclassifications, net of tax | 1,139 | (5,323) | (995) | (7,063) |
Ending balance | $ (5,967) | $ (2,648) | $ (5,967) | $ (2,648) |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 916,673 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 24.58 | |
Share-based compensation expense | $ 73,765 | $ 90,667 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 149,400 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 2 years 18 days | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 441,153 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 85.31 | |
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) | 889,635 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 75.70 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 792,411 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 11.15 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.46% | 21.31% | 21.92% | 23.18% |
Unrecognized tax benefits | $ 32.4 | $ 32.4 | ||
Liability recorded for interest and penalties related to unrecognized tax benefits | 7.4 | $ 7.4 | ||
Income tax benefit | $ 131 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Apr. 01, 2023 USD ($) segment | Apr. 02, 2022 USD ($) | ||
Segment Reporting [Abstract] | |||||
Number of reporting segments | segment | 3 | ||||
Segment Reporting Information [Line Items] | |||||
Sales | $ 18,875,676 | $ 16,902,139 | $ 56,596,459 | $ 49,678,888 | |
Operating income (loss): | 694,177 | 495,729 | 2,069,152 | 1,572,320 | |
Interest expense | 134,931 | 124,018 | 391,123 | 495,131 | |
Other expense (income), net | [1] | 5,209 | (13,777) | 350,614 | (27,705) |
Earnings before income taxes | 554,037 | 385,488 | 1,327,415 | 1,104,894 | |
US Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 13,257,519 | 12,006,163 | 39,937,055 | 35,107,281 | |
International Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 3,344,121 | 2,834,089 | 9,910,267 | 8,535,608 | |
SYGMA | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,972,058 | 1,794,837 | 5,839,051 | 5,270,193 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 301,978 | 267,050 | 910,086 | 765,806 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 18,875,676 | 16,902,139 | 56,596,459 | 49,678,888 | |
Operating income (loss): | 941,393 | 754,617 | 2,804,470 | 2,273,846 | |
Operating Segments | US Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 13,257,519 | 12,006,163 | 39,937,055 | 35,107,281 | |
Operating income (loss): | 855,766 | 746,467 | 2,540,555 | 2,220,812 | |
Operating Segments | International Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 3,344,121 | 2,834,089 | 9,910,267 | 8,535,608 | |
Operating income (loss): | 48,352 | 7,760 | 192,945 | 55,181 | |
Operating Segments | SYGMA | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,972,058 | 1,794,837 | 5,839,051 | 5,270,193 | |
Operating income (loss): | 25,439 | 4,362 | 37,715 | (4,814) | |
Operating Segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 301,978 | 267,050 | 910,086 | 765,806 | |
Operating income (loss): | 11,836 | (3,972) | 33,255 | 2,667 | |
Global Support Center | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss): | $ (247,216) | $ (258,888) | $ (735,318) | $ (701,526) | |
[1]Sysco’s second quarter of fiscal 2023 included a charge for $315.4 million in other expense related to pension settlement charges. See Note 9, “Company-Sponsored Employee Benefit Plans.” |