COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Dec. 30, 2023 | Jan. 12, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 30, 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 | |
Title of each class | Common stock, $1.00 Par Value | |
Trading Symbol | SYY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 497,829,748 | |
Entity Central Index Key | 0000096021 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-29 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 |
Current assets | ||
Cash and cash equivalents | $ 962,165 | $ 745,201 |
Accounts receivable, less allowances of $79,179 and $45,599 | 5,291,552 | 5,091,970 |
Inventories | 4,722,499 | 4,480,812 |
Prepaid expenses and other current assets | 327,569 | 284,566 |
Income tax receivable | 5,815 | 5,815 |
Total current assets | 11,309,600 | 10,608,364 |
Plant and equipment at cost, less accumulated depreciation | 5,157,150 | 4,915,049 |
Other long-term assets | ||
Goodwill | 5,255,010 | 4,645,754 |
Intangibles, less amortization | 1,174,151 | 859,530 |
Deferred income taxes | 444,180 | 420,450 |
Operating lease right-of-use assets, net | 824,390 | 731,766 |
Other assets | 576,120 | 640,232 |
Total other long-term assets | 8,273,851 | 7,297,732 |
Total assets | 24,740,601 | 22,821,145 |
Current liabilities | ||
Accounts payable | 5,737,726 | 6,025,757 |
Accrued expenses | 2,266,062 | 2,251,181 |
Accrued income taxes | 46,772 | 101,894 |
Current operating lease liabilities | 119,397 | 99,051 |
Current maturities of long-term debt | 84,513 | 62,550 |
Total current liabilities | 8,254,470 | 8,540,433 |
Long-term liabilities | ||
Long-term debt | 12,028,122 | 10,347,997 |
Deferred income taxes | 303,878 | 302,904 |
Long-term operating lease liabilities | 737,354 | 656,269 |
Other long-term liabilities | 979,376 | 931,708 |
Total long-term liabilities | 14,048,730 | 12,238,878 |
Noncontrolling interest | 33,367 | 33,212 |
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 | 1,877,201 | 1,814,681 |
Retained earnings | 11,724,251 | 11,310,664 |
Accumulated other comprehensive loss | (1,189,753) | (1,252,590) |
Treasury stock at cost, 261,472,819 and 260,062,834 shares | (10,772,840) | (10,629,308) |
Total shareholders’ equity | 2,404,034 | 2,008,622 |
Total liabilities and shareholders’ equity | $ 24,740,601 | $ 22,821,145 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 79,179 | $ 45,599 |
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) | 261,472,819 | 260,062,834 |
CONSOLIDATED RESULTS OF OPERATI
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | ||
Income Statement [Abstract] | |||||
Sales | $ 19,287,942 | $ 18,593,953 | $ 38,908,396 | $ 37,720,783 | |
Cost of sales | 15,774,309 | 15,244,337 | 31,746,991 | 30,882,312 | |
Gross profit | 3,513,633 | 3,349,616 | 7,161,405 | 6,838,471 | |
Operating expenses | 2,813,590 | 2,708,793 | 5,657,780 | 5,460,847 | |
Operating income | 700,043 | 640,823 | 1,503,625 | 1,377,624 | |
Interest expense | 149,680 | 132,042 | 284,014 | 256,192 | |
Other expense (income), net | [1],[2] | 5,245 | 330,305 | 11,885 | 348,054 |
Earnings before income taxes | 545,118 | 178,476 | 1,207,726 | 773,378 | |
Income taxes | 129,876 | 37,260 | 289,092 | 166,594 | |
Net earnings | $ 415,242 | $ 141,216 | $ 918,634 | $ 606,784 | |
Net earnings: | |||||
Basic earnings per share (in dollars per share) | $ 0.82 | $ 0.28 | $ 1.82 | $ 1.20 | |
Diluted earnings per share (in dollars per share) | $ 0.82 | $ 0.28 | $ 1.81 | $ 1.19 | |
Average shares outstanding (in shares) | 504,312,633 | 507,609,696 | 504,719,562 | 507,594,137 | |
Diluted shares outstanding (in shares) | 505,929,342 | 510,145,794 | 506,499,390 | 510,264,473 | |
[1] Gains and losses related to the disposition of fixed assets have been recognized within operating expenses. Prior year amounts have been reclassified to conform to this presentation. Sysco’s second quarter of fiscal 2023 included a charge of $315.4 million in other expense related to pension settlement charges. See Note 9, “Company-Sponsored Employee Benefit Plans.” |
CONSOLIDATED RESULTS OF OPERA_2
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Pension settlement charge | $ 0 | $ 315,354 | |
United States | Pension Benefits | |||
Pension settlement charge | $ 315,354 | $ 315,354 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 415,242 | $ 141,216 | $ 918,634 | $ 606,784 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 163,084 | 241,814 | 54,890 | 9,632 |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,170 | 2,170 | 4,340 | 4,325 |
Change in net investment hedges | (16,741) | (33,749) | (16,741) | (10,240) |
Change in cash flow hedges | (20,225) | 203 | 6,923 | (26,187) |
Changes in excluded components of fair value hedge | 158 | 0 | 138 | 0 |
Amortization of prior service cost | 146 | 74 | 292 | 148 |
Amortization of actuarial loss | 5,011 | 5,628 | 9,993 | 12,519 |
Pension settlement charge | 0 | 236,591 | 0 | 236,591 |
Net actuarial (loss) gain arising in current year | 0 | (67,388) | 503 | (67,388) |
Change in marketable securities | 3,444 | 1,194 | 2,499 | (2,134) |
Total other comprehensive income | 137,047 | 386,537 | 62,837 | 157,266 |
Comprehensive income | $ 552,289 | $ 527,753 | $ 981,471 | $ 764,050 |
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. 02, 2022 | 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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 606,784 | 606,784 | ||||
Foreign currency translation adjustment | 9,632 | 9,632 | ||||
Amortization of cash flow hedges, net of tax | 4,325 | 4,325 | ||||
Change in cash flow hedges, net of tax | (26,187) | (26,187) | ||||
Change in net investment hedges, net of tax | (10,240) | (10,240) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 12,667 | 12,667 | ||||
Pension settlement charge | 236,591 | 236,591 | ||||
Net actuarial (loss) gain arising in current year | (67,388) | (67,388) | ||||
Change in marketable securities, net of tax | (2,134) | (2,134) | ||||
Dividends declared | (497,168) | (497,168) | ||||
Treasury stock purchases (in shares) | 3,099,268 | |||||
Treasury stock purchases | (267,727) | $ (267,727) | ||||
Increase in ownership interest in subsidiaries | (2,077) | (2,077) | ||||
Share-based compensation awards (in shares) | (1,783,839) | |||||
Share-based compensation awards | 57,251 | 9,913 | $ 47,338 | |||
Ending balance (in shares) at Dec. 31, 2022 | 765,174,900 | |||||
Ending balance at Dec. 31, 2022 | 1,436,589 | $ 765,175 | 1,774,141 | 10,649,338 | (1,324,788) | $ (10,427,277) |
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 257,846,972 | |||||
Beginning balance (in shares) at Oct. 01, 2022 | 765,174,900 | |||||
Beginning balance at Oct. 01, 2022 | 1,115,341 | $ 765,175 | 1,754,409 | 10,757,136 | (1,711,325) | $ (10,450,054) |
Treasury stock, beginning balance (in shares) at Oct. 01, 2022 | 258,414,989 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 141,216 | 141,216 | ||||
Foreign currency translation adjustment | 241,814 | 241,814 | ||||
Amortization of cash flow hedges, net of tax | 2,170 | 2,170 | ||||
Change in cash flow hedges, net of tax | 203 | 203 | ||||
Change in net investment hedges, net of tax | (33,749) | (33,749) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 5,702 | 5,702 | ||||
Pension settlement charge | 236,591 | 236,591 | ||||
Net actuarial (loss) gain arising in current year | (67,388) | (67,388) | ||||
Change in marketable securities, net of tax | 1,194 | 1,194 | ||||
Dividends declared | (249,014) | (249,014) | ||||
Increase in ownership interest in subsidiaries | (2,077) | (2,077) | ||||
Share-based compensation awards (in shares) | (568,017) | |||||
Share-based compensation awards | 44,586 | 21,809 | $ 22,777 | |||
Ending balance (in shares) at Dec. 31, 2022 | 765,174,900 | |||||
Ending balance at Dec. 31, 2022 | $ 1,436,589 | $ 765,175 | 1,774,141 | 10,649,338 | (1,324,788) | $ (10,427,277) |
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 257,846,972 | |||||
Beginning balance (in shares) at Jul. 01, 2023 | 765,174,900 | 765,174,900 | ||||
Beginning balance at Jul. 01, 2023 | $ 2,008,622 | $ 765,175 | 1,814,681 | 11,310,664 | (1,252,590) | $ (10,629,308) |
Treasury stock, beginning balance (in shares) at Jul. 01, 2023 | 260,062,834 | 260,062,834 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 918,634 | 918,634 | ||||
Foreign currency translation adjustment | 54,890 | 54,890 | ||||
Amortization of cash flow hedges, net of tax | 4,340 | 4,340 | ||||
Change in cash flow hedges, net of tax | 6,923 | 6,923 | ||||
Change in net investment hedges, net of tax | (16,741) | (16,741) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 10,285 | 10,285 | ||||
Pension settlement charge | 0 | |||||
Net actuarial (loss) gain arising in current year | 503 | |||||
Change in marketable securities, net of tax | 2,499 | 2,499 | ||||
Changes in excluded components of fair value hedge, net of tax | 138 | 138 | ||||
Dividends declared | (505,047) | (505,047) | ||||
Treasury stock purchases (in shares) | 2,862,667 | |||||
Treasury stock purchases | (199,947) | $ (199,947) | ||||
Share-based compensation awards (in shares) | (1,452,682) | |||||
Share-based compensation awards | $ 118,935 | 62,520 | $ 56,415 | |||
Ending balance (in shares) at Dec. 30, 2023 | 765,174,900 | 765,174,900 | ||||
Ending balance at Dec. 30, 2023 | $ 2,404,034 | $ 765,175 | 1,877,201 | 11,724,251 | (1,189,753) | $ (10,772,840) |
Treasury stock, ending balance (in shares) at Dec. 30, 2023 | 261,472,819 | 261,472,819 | ||||
Beginning balance (in shares) at Sep. 30, 2023 | 765,174,900 | |||||
Beginning balance at Sep. 30, 2023 | $ 2,125,799 | $ 765,175 | 1,838,986 | 11,560,924 | (1,326,800) | $ (10,712,486) |
Treasury stock, beginning balance (in shares) at Sep. 30, 2023 | 260,971,761 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 415,242 | 415,242 | ||||
Foreign currency translation adjustment | 163,084 | 163,084 | ||||
Amortization of cash flow hedges, net of tax | 2,170 | 2,170 | ||||
Change in cash flow hedges, net of tax | (20,225) | (20,225) | ||||
Change in net investment hedges, net of tax | (16,741) | (16,741) | ||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 5,157 | 5,157 | ||||
Pension settlement charge | 0 | |||||
Net actuarial (loss) gain arising in current year | 0 | |||||
Change in marketable securities, net of tax | 3,444 | 3,444 | ||||
Changes in excluded components of fair value hedge, net of tax | 158 | 158 | ||||
Dividends declared | (251,915) | (251,915) | ||||
Treasury stock purchases (in shares) | 1,479,720 | |||||
Treasury stock purchases | (99,973) | $ (99,973) | ||||
Share-based compensation awards (in shares) | (978,662) | |||||
Share-based compensation awards | $ 77,834 | 38,215 | $ 39,619 | |||
Ending balance (in shares) at Dec. 30, 2023 | 765,174,900 | 765,174,900 | ||||
Ending balance at Dec. 30, 2023 | $ 2,404,034 | $ 765,175 | $ 1,877,201 | $ 11,724,251 | $ (1,189,753) | $ (10,772,840) |
Treasury stock, ending balance (in shares) at Dec. 30, 2023 | 261,472,819 | 261,472,819 |
CHANGES IN CONSOLIDATED SHARE_2
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |
Dec. 30, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 0.50 | $ 1 | $ 0.98 |
CONSOLIDATED CASH FLOWS (Unaudi
CONSOLIDATED CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 918,634 | $ 606,784 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Pension settlement charge | 0 | 315,354 |
Share-based compensation expense | 52,821 | 52,679 |
Depreciation and amortization | 425,465 | 378,949 |
Operating lease asset amortization | 59,127 | 55,884 |
Amortization of debt issuance and other debt-related costs | 9,117 | 10,315 |
Deferred income taxes | (28,689) | (123,187) |
Provision for losses on receivables | 29,784 | 9,732 |
Other non-cash items | (3,782) | 11,525 |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
Increase in receivables | (25,431) | (87,190) |
Increase in inventories | (98,047) | (222,650) |
Decrease (increase) in prepaid expenses and other current assets | 3,362 | (8,915) |
Decrease in accounts payable | (404,411) | (390,124) |
Increase (decrease) in accrued expenses | 17,033 | (62,779) |
Decrease in operating lease liabilities | (64,112) | (57,234) |
(Decrease) increase in accrued income taxes | (55,123) | 3,108 |
Decrease in other assets | 21,942 | 22,156 |
Decrease in other long-term liabilities | (1,793) | (10,941) |
Net cash provided by operating activities | 855,897 | 503,466 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (346,797) | (309,664) |
Proceeds from sales of plant and equipment | 18,347 | 25,493 |
Acquisition of businesses, net of cash acquired | (1,174,608) | (37,699) |
Purchase of marketable securities | (1,878) | (14,019) |
Proceeds from sales of marketable securities | 0 | 11,641 |
Other investing activities | 0 | 4,840 |
Net cash used for investing activities | (1,504,936) | (319,408) |
Cash flows from financing activities: | ||
Bank and commercial paper borrowings, net | 500,000 | 155,000 |
Other debt borrowings including senior notes | 1,132,475 | 140,024 |
Other debt repayments including senior notes | (187,720) | (57,270) |
Debt issuance costs | (13,035) | 0 |
Proceeds from stock option exercises | 57,347 | 47,339 |
Stock repurchases | (199,947) | (267,727) |
Dividends paid | (505,588) | (498,323) |
Other financing activities | (5,775) | (46,517) |
Net cash provided by (used for) financing activities | 777,757 | (527,474) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 905 | (2,314) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 129,623 | (345,730) |
Cash, cash equivalents and restricted cash at beginning of period | 966,033 | 931,376 |
Cash, cash equivalents and restricted cash at end of period | 1,095,656 | 585,646 |
Cash paid during the period for: | ||
Interest | 266,002 | 244,530 |
Income taxes, net of refunds | $ 371,855 | $ 289,413 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Dec. 30, 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 an 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 1, 2023. 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 our 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: Dec. 30, 2023 Dec. 31, 2022 (In thousands) Cash and cash equivalents $ 962,165 $ 500,340 Restricted cash (1) 133,491 85,306 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 1,095,656 $ 585,646 (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 our non-cash investing and financing activities: Dec. 30, 2023 Dec. 31, 2022 (In thousands) Non-cash investing and financing activities: Plant and equipment acquired through financing programs $ 158,454 $ 52,360 Assets obtained in exchange for finance lease obligations 52,367 81,799 |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Recently Adopted Accounting Guidance 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 the supplier finance program they use in connection with the purchase of goods and services, along with information about their obligations under such 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. The guidance requires retrospective application to all periods in which a balance sheet is presented, except for the roll forward requirement, which will be applied prospectively. Sysco completed its assessment of the disclosures required under ASU 2022-04 and adopted the standard, with the exception of the roll forward requirement, in the first quarter of fiscal 2024 on a retrospective basis. The company has agreements with third parties to provide supplier finance programs which facilitate participating suppliers’ ability to finance payment obligations from the company with designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to participating financial institutions. Obligations of the company that have been confirmed as valid require payment by Sysco upon the due date of the obligation. The company’s outstanding payment obligations that suppliers financed to participating financial institutions, which are included in accounts payable on the consolidated balance sheets, are as follows: Dec. 30, 2023 Jul. 1, 2023 Dec. 31, 2022 Jul. 2, 2022 (In thousands) Financed payment obligations $ 83,528 $ 99,606 $ 81,018 $ 90,267 Recent Accounting Guidance Not Yet Adopted Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, which is fiscal 2025 for Sysco, and interim periods for our fiscal years beginning after December 15, 2024, which is the first quarter of fiscal 2026 for Sysco, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-07 on our disclosures. Income Taxes In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, which is fiscal 2026 for Sysco, on a prospective basis. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-09 on our disclosures. |
REVENUE
REVENUE | 6 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE We recognize revenues when our 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 $5.0 billion and $4.7 billion as of December 30, 2023 and July 1, 2023, respectively. Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in other assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of December 30, 2023, our contract assets were not significant. We have 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 Dec. 30, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 2,601,298 $ 801,170 $ 228,632 $ — $ 3,631,100 Fresh and frozen meats 2,574,453 503,387 504,102 — 3,581,942 Frozen fruits, vegetables, bakery and other 1,996,667 682,027 315,778 — 2,994,472 Dairy products 1,448,604 388,401 141,137 — 1,978,142 Poultry 1,340,095 285,312 261,300 — 1,886,707 Fresh produce 1,308,581 265,417 65,891 — 1,639,889 Paper and disposables 971,489 129,881 188,075 14,099 1,303,544 Seafood 507,958 110,121 44,056 — 662,135 Beverage products 335,748 164,368 139,137 21,330 660,583 Other (1) 409,550 266,374 25,607 247,897 949,428 Total Sales $ 13,494,443 $ 3,596,458 $ 1,913,715 $ 283,326 $ 19,287,942 (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 Dec. 31, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 2,502,665 $ 700,622 $ 236,726 $ — $ 3,440,013 Fresh and frozen meats 2,390,929 445,018 452,370 — 3,288,317 Frozen fruits, vegetables, bakery and other 1,851,344 596,100 338,379 — 2,785,823 Dairy products 1,498,039 358,639 160,753 — 2,017,431 Poultry 1,329,071 285,343 265,269 — 1,879,683 Fresh produce 1,385,083 257,641 66,099 — 1,708,823 Paper and disposables 976,231 134,507 210,691 13,484 1,334,913 Seafood 547,760 109,290 37,810 — 694,860 Beverage products 303,789 133,515 136,668 21,318 595,290 Other (1) 292,143 261,736 28,771 266,150 848,800 Total Sales $ 13,077,054 $ 3,282,411 $ 1,933,536 $ 300,952 $ 18,593,953 (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. 26-Week Period Ended Dec. 30, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 5,285,985 $ 1,632,713 $ 461,617 $ — $ 7,380,315 Fresh and frozen meats 5,143,634 1,023,128 984,691 — 7,151,453 Frozen fruits, vegetables, bakery and other 4,024,601 1,355,575 621,077 — 6,001,253 Dairy products 2,902,553 802,572 282,568 — 3,987,693 Poultry 2,701,790 576,635 535,008 — 3,813,433 Fresh produce 2,669,938 540,135 136,209 — 3,346,282 Paper and disposables 1,965,326 304,206 374,618 30,380 2,674,530 Seafood 1,085,593 235,145 87,572 — 1,408,310 Beverage products 698,413 334,921 285,359 45,196 1,363,889 Other (1) 740,409 474,638 51,010 515,181 1,781,238 Total Sales $ 27,218,242 $ 7,279,668 $ 3,819,729 $ 590,757 $ 38,908,396 (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. 26-Week Period Ended Dec. 31, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 5,079,917 $ 1,391,996 $ 472,894 $ 1,931 $ 6,946,738 Fresh and frozen meats 4,856,379 898,382 915,810 — 6,670,571 Frozen fruits, vegetables, bakery and other 3,694,811 1,176,132 647,576 149 5,518,668 Dairy products 3,023,521 725,486 325,401 — 4,074,408 Poultry 2,903,321 578,193 542,733 — 4,024,247 Fresh produce 2,723,003 512,378 131,343 — 3,366,724 Paper and disposables 1,999,135 278,574 420,049 28,541 2,726,299 Seafood 1,186,165 230,491 77,934 — 1,494,590 Beverage products 619,407 269,991 274,835 45,974 1,210,207 Other (1) 593,877 504,523 58,418 531,513 1,688,331 Total Sales $ 26,679,536 $ 6,566,146 $ 3,866,993 $ 608,108 $ 37,720,783 (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 | 6 Months Ended |
Dec. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS During the first 26 weeks of fiscal 2024, we paid cash of $1.2 billion for several acquisitions. Edward Don & Company On November 27, 2023, Sysco consummated its acquisition of Edward Don & Company (Edward Don or the acquiree) through a merger between Edward Don and a wholly owned subsidiary of Sysco Corporation, in which Sysco acquired 100% of the members’ equity of the acquiree for cash consideration of $969.4 million. Edward Don is a leading distributor of foodservice equipment, supplies and disposables and has a robust supply chain that is expected to enable cost effective distribution of restaurant equipment and supplies across the Sysco network. The acquisition allows Sysco to add strategic capabilities and diversified offerings to complement its existing business and create a specialty equipment and supplies platform that will provide better selection and service to customers. The assets, liabilities and operating results of Edward Don are reflected in our consolidated financial statements in accordance with ASC Topic No. 805, Business Combinations, commencing from the acquisition date. The purchase price was allocated based on the company’s preliminary estimated fair value of the assets acquired and liabilities assumed, and the excess was assigned to goodwill and intangibles. Goodwill of $447.6 million is assigned to the U.S. Foodservice Operations reportable segment and represents synergies and disposable, supply and foodservice equipment capabilities and offerings expected to benefit Sysco’s existing business. In certain circumstances, purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, allocations are subject to revision until Sysco receives final information and completes its analysis during the measurement period. This includes finalizing the valuation of acquired tangible and intangible assets and related tax attributes. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Sysco’s policy is to invest in only high-quality investments. The fair values of our 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 our marketable securities is 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 our derivative instruments is 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 values 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 December 30, 2023 and July 1, 2023: Assets Measured at Fair Value as of Dec. 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 573,597 $ 3 $ — $ 573,600 Other assets (1) 133,491 — — 133,491 Total assets at fair value $ 707,088 $ 3 $ — $ 707,091 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jul. 1, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 308,952 $ 10,021 $ — $ 318,973 Other assets (1) 220,831 — — 220,831 Total assets at fair value $ 529,783 $ 10,021 $ — $ 539,804 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Dec. 30, 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. We include fixed income securities maturing in less than 12 months within prepaid expenses and other current assets. Fixed income securities maturing in more than 12 months are included within other assets in the accompanying consolidated balance sheets. We record 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 i n the first 26 weeks of fiscal 2024. The following table presents our available-for-sale marketable securities as of December 30, 2023 and July 1, 2023: Dec. 30, 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 $ 100,865 $ 523 $ (4,585) $ 96,803 $ 23,032 $ 73,771 Government bonds 29,628 — (1,368) 28,260 — 28,260 Total marketable securities $ 130,493 $ 523 $ (5,953) $ 125,063 $ 23,032 $ 102,031 Jul. 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 $ 99,501 $ 96 $ (6,777) $ 92,820 $ 12,767 $ 80,053 Government bonds 29,777 — (1,913) 27,864 — 27,864 Total marketable securities $ 129,278 $ 96 $ (8,690) $ 120,684 $ 12,767 $ 107,917 As of December 30, 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. Dec. 30, 2023 (In thousands) Due in one year or less $ 23,032 Due after one year through five years 62,334 Due after five years 39,697 Total $ 125,063 There wer e no significant realized gains or losses in marketable securities in the first 26 weeks of fiscal 2024. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Sysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk. Hedging of interest rate risk Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In the second quarter of fiscal 2024, we entered into forward swap agreements to trade the fixed interest rate on $500 million of 6.00% senior notes with variable rates, starting in November 2024. The interest rate swap agreements are designated as fair value hedges and valued based on an income approach using observable market inputs including Secured Overnight Financing Rate (SOFR) yield curves. The company has incorporated credit valuation adjustments to appropriately reflect the risk of default in the fair value measurements. Changes in the fair value of the hedge and the carrying value of the hedged item attributable to changes in the benchmark interest rates being hedged are recognized in interest expense. Hedging of foreign currency risk 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. Sysco has cross-currency swaps designated as fair value hedges for the purpose of hedging foreign currency risk associated with changes in spot rates on foreign denominated intercompany loans. Sysco has elected to exclude the changes in fair value of the forward points from the assessments of hedge effectiveness. Gains or losses from fair value hedges impact the same category on the consolidated statements of income as the item being hedged, including the earnings impact of the excluded components. Unrealized gains or losses on components excluded from hedge effectiveness are recorded as a component of accumulated other comprehensive income (loss) and recognized into earnings over the life of the hedged instrument. Except for the excluded components, changes in the fair value of the hedge are offset against changes in the fair value of the hedged assets or liabilities through earnings. In the second quarter of fiscal 2024, Sysco entered into a cross-currency swap to hedge the foreign currency exposure of our net investment in certain foreign operations. This cross-currency swap is designated as a net investment hedge with gains and losses recognized within accumulated other comprehensive income (loss). Cross-currency swaps are valued based on an income approach using observable market inputs including foreign currency rates and interest rates in both countries subject to the swap. Hedging of fuel price risk Sysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel fuel on anticipated future purchases. These swaps have been designated as cash flow hedges. None of our hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of December 30, 2023 are presented below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk January 2034 U.S. Dollar 500 Hedging of foreign currency risk Various (January 2024) Swedish Krona 101 Various (January 2024 to April 2024) British Pound Sterling 17 May 2024 Mexican Peso 439 April 2025 Canadian Dollar 180 January 2029 Euro 470 Hedging of fuel risk Various (January 2024 to March 2026) Gallons 57 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 30, 2023 and July 1, 2023 are as follows: Derivative Fair Value Balance Sheet location Dec. 30, 2023 Jul. 1, 2023 (In thousands) Fair Value Hedges: Cross currency swaps Other assets $ 1,198 $ — Interest rate swaps Other assets 24,557 — Cross currency swaps Other current liabilities 1,497 1,262 Cash Flow Hedges: Fuel swaps Other current assets $ 168 $ 102 Foreign currency forwards Other current assets 74 624 Fuel swaps Other assets 136 40 Fuel swaps Other current liabilities 10,372 17,932 Foreign currency forwards Other current liabilities 642 404 Fuel swaps Other long-term liabilities 2,794 5,637 Net Investment Hedges: Cross currency swaps Other current assets $ 3,377 $ — Cross currency swaps Other long-term liabilities 25,738 — 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 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 $ 154,925 $ 132,042 $ 295,899 $ 256,192 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (30,298) $ (2,685) $ (30,298) $ (309) Derivatives designated as hedging instruments 22,066 742 22,066 (5,501) Cross currency swaps: Hedged items $ (2,711) $ — $ 285 $ — Derivatives designated as hedging instruments 2,711 — (285) — 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 (In thousands) Interest expense $ (3,250) $ (1,940) $ (3,250) $ (3,879) Decrease in fair value of debt 27,048 745 27,048 (3,570) Foreign currency gain (loss) (2,711) — 285 — Hedged items $ (33,009) $ (2,685) $ (30,013) $ (309) The location and effect of cash flow, net investment, and excluded components of fair value hedges on the consolidated statements of comprehensive income for the 13-week periods ended December 30, 2023 and December 31, 2022, presented on a pretax basis, are as follows: 13-Week Period Ended Dec. 30, 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 $ (24,524) Operating expense $ 669 Foreign currency contracts (507) Cost of sales / Other income — Total $ (25,031) $ 669 Derivatives in net investment hedging relationships: Cross currency contracts $ (22,361) N/A $ — Derivatives in fair value hedging relationships: Change in excluded component of fair value hedge $ 210 Other expense (income) $ — 13-Week Period Ended Dec. 31, 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 $ 1,140 Operating expense $ 12,377 Foreign currency contracts 49 Cost of sales / Other income — Total $ 1,189 $ 12,377 Derivatives in net investment hedging relationships: Foreign denominated debt $ (44,999) N/A $ — The location and effect of cash flow, net investment, and excluded components of fair value hedges on the consolidated statements of comprehensive income for the 26-week periods ended December 30, 2023 and December 31, 2022, presented on a pretax basis, are as follows: 26-Week Period Ended Dec. 30, 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 $ 9,975 Operating expense $ 3,003 Foreign currency contracts (791) Cost of sales / Other income — Total $ 9,184 $ 3,003 Derivatives in net investment hedging relationships: Cross currency contracts $ (22,361) N/A $ — Derivatives in fair value hedging relationships: Change in excluded component of fair value hedge $ 184 Other expense (income) $ — 26-Week Period Ended Dec. 31, 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 $ (35,155) Operating expense $ 25,362 Foreign currency contracts 335 Cost of sales / Other income — Total $ (34,820) $ 25,362 Derivatives in net investment hedging relationships: Foreign denominated debt $ (13,653) N/A $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 30, 2023 are as follows: Dec. 30, 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: Long-term debt $ (518,622) $ (27,048) The carrying amount of hedged liabilities in the consolidated balance sheet as of July 1, 2023 is zero. |
DEBT
DEBT | 6 Months Ended |
Dec. 30, 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 December 30, 2023, there were no borrowings outstanding under this facility. We have a U.S commercial paper program allowing the company to issue short-term unsecured notes in 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 December 30, 2023, there were $500.0 million in commercial paper issuances outstanding under this program. On November 17, 2023, Sysco issued senior notes (the Notes) totaling $1.0 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing January 17, 2029 (the 2029 Notes) $ 500 5.75 % 99.784 % January 17, 2034 (the 2034 Notes) 500 6.00 99.037 The Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes issued under the indenture governing the Notes or any of Sysco’s other indebtedness. Interest on the Notes will be paid semi-annually in arrears on July 17 and January 17, beginning July 17, 2024. At Sysco’s option, any or all of the Notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (i) the 2029 Notes before the date that is one month prior to the maturity date, or (ii) the 2034 Notes before the date that is three months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such senior notes matured on the applicable date described above. If Sysco elects to redeem a series of Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Notes redeemed to the redemption date. The total carrying value of our debt was $12.1 billion as of December 30, 2023 and $10.4 billion as of July 1, 2023. The increase in the carrying value of our debt from the prior year was due to the issuance of senior notes, new borrowings under our commercial paper program and new financing leases in support of equipment. On October 17, 2023, we entered into a new commercial paper dealer agreement in Europe for a commercial paper program with borrowings not to exceed €250 million. As of December 30, 2023, there were no commercial paper issuances outstanding under this program. 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 | 6 Months Ended |
Dec. 30, 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. We also provide 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, we 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 us to remeasure the benefit obligations and plan assets of the U.S. Retirement Plan. The remeasurement reflected 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. Components of Net Benefit Costs The components of net company-sponsored benefit cost for the U.S. Retirement Plan are as follows: 13-Week Period 26-Week Period Ended (1) Ended (1) Dec. 31, 2022 Dec. 31, 2022 (In thousands) (In thousands) Service cost $ 2,034 $ 4,357 Interest cost 38,103 80,604 Expected return on plan assets (36,957) (76,977) Amortization of prior service cost 98 197 Amortization of actuarial loss 7,661 16,609 Settlement loss recognized 315,354 315,354 Net pension costs $ 326,293 $ 340,144 (1) Net pension costs were not material for the second quarter and first 26 weeks of fiscal 2024. 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Dec. 30, 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 415,242 $ 141,216 $ 918,634 $ 606,784 Denominator: Weighted-average basic shares outstanding 504,312,633 507,609,696 504,719,562 507,594,137 Dilutive effect of share-based awards 1,616,709 2,536,098 1,779,828 2,670,336 Weighted-average diluted shares outstanding 505,929,342 510,145,794 506,499,390 510,264,473 Basic earnings per share $ 0.82 $ 0.28 $ 1.82 $ 1.20 Diluted earnings per share $ 0.82 $ 0.28 $ 1.81 $ 1.19 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 6,451,000 and 1,848,000 for the second quarter of fiscal 2024 and 2023, respectively, and approximately 6,219,000 and 1,620,000 for the first 26 weeks of fiscal 2024 and 2023, respectively. Accelerated Share Repurchase Program On December 15, 2023, we entered into a Master Confirmation and Supplemental Confirmation (collectively, the ASR Agreement) with Goldman, Sachs & Co. (Goldman) relating to an accelerated share repurchase program (the ASR Program). Pursuant to the terms of the ASR Agreement, effective January 3, 2024, we agreed to repurchase $500 million of our common stock from Goldman under the share repurchase program authorized by our Board of Directors in May 2021. In connection with the ASR Program, we paid $500 million to Goldman on January 11, 2024, in exchange for 6,026,110 shares of Sysco’s outstanding common stock, which represents a substantial majority of the shares owed to Sysco by Goldman; however, the number of shares ultimately delivered to us by Goldman is subject to adjustment based on the volume-weighted average share price of Sysco’s common stock during the term of the ASR Agreement, less an agreed discount. We expect all purchases under the ASR Program to be completed by the end of March 2024, although the exact date of completion will depend on whether or when Goldman exercises an acceleration option that it has under the ASR Agreement. At settlement, we may be entitled to receive additional shares of common stock from Goldman or, under certain circumstances, may be required to issue additional shares or make a payment to Goldman at our option. In the third quarter of fiscal 2024, the shares received will be recognized in treasury stock and reduce the number of weighted average shares outstanding. The incremental consideration to be received or issued upon settlement of the ASR Program was evaluated as an unsettled forward contract indexed to our common stock and will be classified within stockholders’ equity in the third quarter of fiscal 2024, if the ASR Program has not concluded by the end of the third quarter of fiscal 2024. The ASR Agreement contains the principal terms and provisions governing the ASR Program, including, but not limited to, the mechanism used to determine the number of shares that will be delivered, the required timing of delivery of the shares, the specific circumstances under which Goldman may delay any date of valuation or settlement under the ASR Program (such as upon the occurrence of certain market disruptions), the specific circumstances under which Goldman is permitted to make adjustments to the terms of the ASR Program or to terminate the ASR Program (such as upon the announcement of certain fundamental transactions affecting Sysco), and various acknowledgments, representations and warranties made by Sysco and Goldman to one another. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Dec. 30, 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 $552.3 million and $527.8 million for the second quarter of fiscal 2024 and fiscal 2023, respectively. Comprehensive income was $981.5 million and $764.1 million for the first 26 weeks of fiscal 2024 and fiscal 2023, respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Dec. 30, 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 $ 195 $ 49 $ 146 Amortization of actuarial loss, net Other expense, net 6,676 1,665 5,011 Total reclassification adjustments 6,871 1,714 5,157 Foreign currency translation: Foreign currency translation adjustment N/A 163,084 — 163,084 Marketable securities: Change in marketable securities (1) N/A 4,359 915 3,444 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in excluded component of fair value Other expense, net 210 52 158 Change in cash flow hedges Operating expenses (2) (25,031) (4,806) (20,225) Change in net investment hedges N/A (22,361) (5,620) (16,741) Total other comprehensive (loss) before reclassification adjustments (47,182) (10,374) (36,808) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,893 723 2,170 Total other comprehensive income (loss) $ 130,025 $ (7,022) $ 137,047 (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 second quarter of fiscal 2024. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Dec. 31, 2022 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain, 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 99 25 74 Amortization of actuarial loss, net Other expense, net 7,500 1,872 5,628 Total reclassification adjustments 7,599 1,897 5,702 Foreign currency translation: Foreign currency translation adjustment N/A 241,814 — 241,814 Marketable securities: Change in marketable securities (1) N/A 1,511 317 1,194 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) 1,189 986 203 Change in net investment hedges N/A (44,999) (11,250) (33,749) Total other comprehensive (loss) before reclassification adjustments (43,810) (10,264) (33,546) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,893 723 2,170 Total other comprehensive income $ 435,611 $ 49,074 $ 386,537 (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 second quarter of fiscal 2023 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 26-Week Period Ended Dec. 30, 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 $ 672 $ 169 $ 503 Reclassification adjustments: Amortization of prior service cost Other expense, net 390 98 292 Amortization of actuarial loss, net Other expense, net 13,317 3,324 9,993 Total reclassification adjustments 13,707 3,422 10,285 Foreign currency translation: Foreign currency translation adjustment N/A 54,890 — 54,890 Marketable securities: Change in marketable securities (1) N/A 3,163 664 2,499 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in excluded component of fair value Other expense, net 184 46 138 Change in cash flow hedges Operating expenses (2) 9,184 2,261 6,923 Change in net investment hedges N/A (22,361) (5,620) (16,741) Total other comprehensive (loss) before reclassification adjustments (12,993) (3,313) (9,680) Reclassification adjustments: Amortization of cash flow hedges Interest expense 5,786 1,446 4,340 Total other comprehensive income $ 65,225 $ 2,388 $ 62,837 (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 26 weeks of fiscal 2024. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 26-Week Period Ended Dec. 31, 2022 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 198 50 148 Amortization of actuarial loss, net Other expense, net 16,686 4,167 12,519 Total reclassification adjustments 16,884 4,217 12,667 Foreign currency translation: Foreign currency translation adjustment N/A 9,632 — 9,632 Marketable securities: Change in marketable securities (1) N/A (2,701) (567) (2,134) Hedging instruments: Other comprehensive (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (34,820) (8,633) (26,187) Change in net investment hedges N/A (13,653) (3,413) (10,240) Total other comprehensive (loss) before reclassification adjustments (48,473) (12,046) (36,427) Reclassification adjustments: Amortization of cash flow hedges Interest expense 5,767 1,442 4,325 Total other comprehensive income $ 206,713 $ 49,447 $ 157,266 (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 26 weeks of fiscal 2023. (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: 26-Week Period Ended Dec. 30, 2023 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jul. 1, 2023 $ (839,541) $ (374,290) $ (31,966) $ (6,793) $ (1,252,590) Net actuarial loss arising in the current year 503 — — — 503 Equity adjustment from foreign currency translation — 54,890 — — 54,890 Amortization of cash flow hedges — — 4,340 — 4,340 Change in net investment hedges (16,741) (16,741) Change in excluded component of fair value hedge — — 138 — 138 Change in cash flow hedge — — 6,923 — 6,923 Amortization of unrecognized prior service cost 292 — — — 292 Amortization of unrecognized net actuarial losses 9,993 — — — 9,993 Change in marketable securities — — — 2,499 2,499 Balance as of Dec. 30, 2023 $ (828,753) $ (319,400) $ (37,306) $ (4,294) $ (1,189,753) 26-Week Period Ended Dec. 31, 2022 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 — 9,632 — — 9,632 Amortization of cash flow hedges — — 4,325 — 4,325 Change in net investment hedges — — (10,240) — (10,240) Change in cash flow hedges — — (26,187) — (26,187) Amortization of unrecognized prior service cost 148 — — — 148 Amortization of unrecognized net actuarial losses 12,519 — — — 12,519 Change in marketable securities — — — (2,134) (2,134) Balance as of Dec. 31, 2022 $ (829,465) $ (491,885) $ 3,668 $ (7,106) $ (1,324,788) |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Dec. 30, 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 26 weeks of fiscal 2024, options to purchase 808,279 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant-date fair value per option granted during the first 26 weeks of fiscal 2024 was $19.27. In the first 26 weeks of fiscal 2024, employees were granted 521,082 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 26 weeks of fiscal 2024 was $73.58. The PSUs will convert into shares of Sysco’s 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 26 weeks of fiscal 2024, employees were granted 366,883 restricted stock units. The weighted average grant-date fair value per restricted stock unit granted during the first 26 weeks of fiscal 2024 was $71.93. Employee Stock Purchase Plan Plan participants purchased 594,056 shares of common stock under the ESPP during the first 26 weeks of fiscal 2024. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $10.33 during the first 26 weeks of fiscal 2024. 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 $52.8 million and $52.7 million for the first 26 weeks of fiscal 2024 and fiscal 2023, respectively. As of December 30, 2023, there was $143.6 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 1.95 years. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Effective Tax Rate The effective tax rates for the second quarter and first 26 weeks of fiscal 2024 were 23.83% and 23.94%, respectively. These rates are higher than the company’s 21.00% statutory tax rate primarily because of state income taxes. The rates are partially offset by a foreign income tax benefit and the equity-based compensation excess tax benefits. The effective tax rates for the second quarter and first 26 weeks of fiscal 2023 were 20.88% and 21.54%, respectively. The second quarter was favorably impacted by the benefit of the pension buyout of $4.9 million and excess benefits of equity-based compensation, which totaled $1.4 million. The first 26 weeks of fiscal 2023 were favorably impacted by excess tax benefits of equity-based compensation, which totaled $10.3 million. Uncertain Tax Positions As of December 30, 2023, the gross amount of unrecognized tax benefit and related accrued interest was $32.4 million and $9.7 million, respectively. It is reasonably possible 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 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 were 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 we are ultimately unsuccessful in defending our position, we may be required to reverse all, or some portion, of the benefit previously recorded. Other On October 8, 2021, the Organization for Economic Co-operation and Development (OECD) announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, which provides for a two-pillar solution to address tax challenges arising from the digitalization of the economy. Pillar One expands a country’s authority to tax profits from companies that make sales into their country but do not have a physical location in the country. Pillar Two includes an agreement on international tax reform, including rules to ensure that large corporations pay a minimum rate of corporate income tax. On December 20, 2021, the OECD released Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large corporations at a minimum rate of 15%. The OECD continues to release additional guidance on the two-pillar framework, with widespread implementation anticipated by 2024. We are continuing to evaluate the potential impact on future periods of the Pillar Two Framework, pending legislation adoption and/or guidance by individual countries, with the rules being effective for tax years beginning on or after January 1, 2024. For Sysco, Pillar Two will be effective in fiscal 2025. The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects income earned and taxed in the various U.S. federal and state, as well as foreign jurisdictions. Tax law changes, increases or decreases in permanent book versus tax basis differences, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 30, 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 | 6 Months Ended |
Dec. 30, 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, Edward Don, acquired in the second quarter of fiscal 2024, which distributes restaurant equipment and supplies, 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, 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 13,494,443 $ 13,077,054 $ 27,218,242 $ 26,679,536 International Foodservice Operations 3,596,458 3,282,411 7,279,668 6,566,146 SYGMA 1,913,715 1,933,536 3,819,729 3,866,993 Other 283,326 300,952 590,757 608,108 Total $ 19,287,942 $ 18,593,953 $ 38,908,396 $ 37,720,783 13-Week Period Ended 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 Operating income (loss): (In thousands) (In thousands) U.S. Foodservice Operations $ 839,036 $ 780,968 $ 1,780,007 $ 1,686,679 International Foodservice Operations 82,930 57,413 176,413 144,393 SYGMA 16,346 6,847 29,113 12,544 Other 8,387 9,870 20,210 21,408 Total segments 946,699 855,098 2,005,743 1,865,024 Global Support Center (246,656) (214,275) (502,118) (487,400) Total operating income 700,043 640,823 1,503,625 1,377,624 Interest expense 149,680 132,042 284,014 256,192 Other expense, net 5,245 330,305 11,885 348,054 Earnings before income taxes $ 545,118 $ 178,476 $ 1,207,726 $ 773,378 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings | $ 415,242 | $ 141,216 | $ 918,634 | $ 606,784 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Dec. 30, 2023 shares | Dec. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The table below shows the plans or other arrangements (each, a (Plan)) adopted or terminated during the quarter ended December 30, 2023 providing for the purchase and/or sale of Sysco securities by Sysco’s directors and Section 16 officers: Name Title Action Date Trading Arrangement Number of Securities Covered Expiration Date (3) Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Kevin Hourican President and Chief Executive Officer Adopt December 13, 2023 X 75,019 shares to be sold December 31, 2024 Neil Russell Senior Vice President, Adopt December 7, 2023 X 5,129 shares to be sold December 31, 2024 Chris Jasper Senior Vice President and President, U.S. Broadline and Foodservice Operations Adopt December 13, 2023 X 4,000 shares to be sold December 31, 2024 (1) Intended to satisfy the affirmative defense conditions of SEC Rule 10b5-1(c). (2) Non-Rule Rule 10b5-1 trading arrangement as defined in Item 408 of Regulation S-K. (3) Each Plan terminates on the earlier of: (i) the expiration date listed in the table above; (ii) the first date on which all trades set forth in the Plan have been executed; or (iii) such date the Plan is otherwise terminated according to its terms. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Kevin Hourican [Member] | ||
Trading Arrangements, by Individual | ||
Name | Kevin Hourican | |
Title | President and Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 13, 2023 | |
Arrangement Duration | 384 days | |
Aggregate Available | 75,019 | 75,019 |
Neil Russell [Member] | ||
Trading Arrangements, by Individual | ||
Name | Neil Russell | |
Title | Senior Vice President,Corporate Affairs and Chief Administrative Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 7, 2023 | |
Arrangement Duration | 390 days | |
Aggregate Available | 5,129 | 5,129 |
Chris Jasper [Member] | ||
Trading Arrangements, by Individual | ||
Name | Chris Jasper | |
Title | Senior Vice President and President, U.S. Broadline and Foodservice Operations | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 13, 2023 | |
Arrangement Duration | 384 days | |
Aggregate Available | 4,000 | 4,000 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Guidance/Recent Accounting Guidance Not Yet Adopted | Recently Adopted Accounting Guidance 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 the supplier finance program they use in connection with the purchase of goods and services, along with information about their obligations under such 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. The guidance requires retrospective application to all periods in which a balance sheet is presented, except for the roll forward requirement, which will be applied prospectively. Sysco completed its assessment of the disclosures required under ASU 2022-04 and adopted the standard, with the exception of the roll forward requirement, in the first quarter of fiscal 2024 on a retrospective basis. The company has agreements with third parties to provide supplier finance programs which facilitate participating suppliers’ ability to finance payment obligations from the company with designated third-party financial institutions. Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their scheduled due dates at a discounted price to participating financial institutions. Obligations of the company that have been confirmed as valid require payment by Sysco upon the due date of the obligation. Recent Accounting Guidance Not Yet Adopted Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, which is fiscal 2025 for Sysco, and interim periods for our fiscal years beginning after December 15, 2024, which is the first quarter of fiscal 2026 for Sysco, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-07 on our disclosures. Income Taxes In December 2023, the FASB issued 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, which is fiscal 2026 for Sysco, on a prospective basis. Early adoption is permitted. We are currently evaluating the effect of adopting ASU 2023-09 on our disclosures. |
Fair Value Measurements | Sysco’s policy is to invest in only high-quality investments. The fair values of our 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 our marketable securities is 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 our derivative instruments is 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 values 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) | 6 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table sets forth our 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: Dec. 30, 2023 Dec. 31, 2022 (In thousands) Cash and cash equivalents $ 962,165 $ 500,340 Restricted cash (1) 133,491 85,306 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 1,095,656 $ 585,646 (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 our 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: Dec. 30, 2023 Dec. 31, 2022 (In thousands) Cash and cash equivalents $ 962,165 $ 500,340 Restricted cash (1) 133,491 85,306 Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 1,095,656 $ 585,646 (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 our non-cash investing and financing activities: Dec. 30, 2023 Dec. 31, 2022 (In thousands) Non-cash investing and financing activities: Plant and equipment acquired through financing programs $ 158,454 $ 52,360 Assets obtained in exchange for finance lease obligations 52,367 81,799 |
NEW ACCOUNTING STANDARDS (Table
NEW ACCOUNTING STANDARDS (Tables) | 6 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Supplier Finance Program | The company’s outstanding payment obligations that suppliers financed to participating financial institutions, which are included in accounts payable on the consolidated balance sheets, are as follows: Dec. 30, 2023 Jul. 1, 2023 Dec. 31, 2022 Jul. 2, 2022 (In thousands) Financed payment obligations $ 83,528 $ 99,606 $ 81,018 $ 90,267 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Dec. 30, 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 Dec. 30, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 2,601,298 $ 801,170 $ 228,632 $ — $ 3,631,100 Fresh and frozen meats 2,574,453 503,387 504,102 — 3,581,942 Frozen fruits, vegetables, bakery and other 1,996,667 682,027 315,778 — 2,994,472 Dairy products 1,448,604 388,401 141,137 — 1,978,142 Poultry 1,340,095 285,312 261,300 — 1,886,707 Fresh produce 1,308,581 265,417 65,891 — 1,639,889 Paper and disposables 971,489 129,881 188,075 14,099 1,303,544 Seafood 507,958 110,121 44,056 — 662,135 Beverage products 335,748 164,368 139,137 21,330 660,583 Other (1) 409,550 266,374 25,607 247,897 949,428 Total Sales $ 13,494,443 $ 3,596,458 $ 1,913,715 $ 283,326 $ 19,287,942 (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 Dec. 31, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 2,502,665 $ 700,622 $ 236,726 $ — $ 3,440,013 Fresh and frozen meats 2,390,929 445,018 452,370 — 3,288,317 Frozen fruits, vegetables, bakery and other 1,851,344 596,100 338,379 — 2,785,823 Dairy products 1,498,039 358,639 160,753 — 2,017,431 Poultry 1,329,071 285,343 265,269 — 1,879,683 Fresh produce 1,385,083 257,641 66,099 — 1,708,823 Paper and disposables 976,231 134,507 210,691 13,484 1,334,913 Seafood 547,760 109,290 37,810 — 694,860 Beverage products 303,789 133,515 136,668 21,318 595,290 Other (1) 292,143 261,736 28,771 266,150 848,800 Total Sales $ 13,077,054 $ 3,282,411 $ 1,933,536 $ 300,952 $ 18,593,953 (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. 26-Week Period Ended Dec. 30, 2023 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 5,285,985 $ 1,632,713 $ 461,617 $ — $ 7,380,315 Fresh and frozen meats 5,143,634 1,023,128 984,691 — 7,151,453 Frozen fruits, vegetables, bakery and other 4,024,601 1,355,575 621,077 — 6,001,253 Dairy products 2,902,553 802,572 282,568 — 3,987,693 Poultry 2,701,790 576,635 535,008 — 3,813,433 Fresh produce 2,669,938 540,135 136,209 — 3,346,282 Paper and disposables 1,965,326 304,206 374,618 30,380 2,674,530 Seafood 1,085,593 235,145 87,572 — 1,408,310 Beverage products 698,413 334,921 285,359 45,196 1,363,889 Other (1) 740,409 474,638 51,010 515,181 1,781,238 Total Sales $ 27,218,242 $ 7,279,668 $ 3,819,729 $ 590,757 $ 38,908,396 (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. 26-Week Period Ended Dec. 31, 2022 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Canned and dry products $ 5,079,917 $ 1,391,996 $ 472,894 $ 1,931 $ 6,946,738 Fresh and frozen meats 4,856,379 898,382 915,810 — 6,670,571 Frozen fruits, vegetables, bakery and other 3,694,811 1,176,132 647,576 149 5,518,668 Dairy products 3,023,521 725,486 325,401 — 4,074,408 Poultry 2,903,321 578,193 542,733 — 4,024,247 Fresh produce 2,723,003 512,378 131,343 — 3,366,724 Paper and disposables 1,999,135 278,574 420,049 28,541 2,726,299 Seafood 1,186,165 230,491 77,934 — 1,494,590 Beverage products 619,407 269,991 274,835 45,974 1,210,207 Other (1) 593,877 504,523 58,418 531,513 1,688,331 Total Sales $ 26,679,536 $ 6,566,146 $ 3,866,993 $ 608,108 $ 37,720,783 (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) | 6 Months Ended |
Dec. 30, 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 December 30, 2023 and July 1, 2023: Assets Measured at Fair Value as of Dec. 30, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 573,597 $ 3 $ — $ 573,600 Other assets (1) 133,491 — — 133,491 Total assets at fair value $ 707,088 $ 3 $ — $ 707,091 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jul. 1, 2023 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 308,952 $ 10,021 $ — $ 318,973 Other assets (1) 220,831 — — 220,831 Total assets at fair value $ 529,783 $ 10,021 $ — $ 539,804 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Dec. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-For-Sale Marketable Securities | The following table presents our available-for-sale marketable securities as of December 30, 2023 and July 1, 2023: Dec. 30, 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 $ 100,865 $ 523 $ (4,585) $ 96,803 $ 23,032 $ 73,771 Government bonds 29,628 — (1,368) 28,260 — 28,260 Total marketable securities $ 130,493 $ 523 $ (5,953) $ 125,063 $ 23,032 $ 102,031 Jul. 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 $ 99,501 $ 96 $ (6,777) $ 92,820 $ 12,767 $ 80,053 Government bonds 29,777 — (1,913) 27,864 — 27,864 Total marketable securities $ 129,278 $ 96 $ (8,690) $ 120,684 $ 12,767 $ 107,917 |
Schedule of Available-For-Sale Debt Securities Held To Actual Maturity | As of December 30, 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. Dec. 30, 2023 (In thousands) Due in one year or less $ 23,032 Due after one year through five years 62,334 Due after five years 39,697 Total $ 125,063 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Dec. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Swap Agreements | Details of outstanding hedging instruments as of December 30, 2023 are presented below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk January 2034 U.S. Dollar 500 Hedging of foreign currency risk Various (January 2024) Swedish Krona 101 Various (January 2024 to April 2024) British Pound Sterling 17 May 2024 Mexican Peso 439 April 2025 Canadian Dollar 180 January 2029 Euro 470 Hedging of fuel risk Various (January 2024 to March 2026) Gallons 57 |
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 December 30, 2023 and July 1, 2023 are as follows: Derivative Fair Value Balance Sheet location Dec. 30, 2023 Jul. 1, 2023 (In thousands) Fair Value Hedges: Cross currency swaps Other assets $ 1,198 $ — Interest rate swaps Other assets 24,557 — Cross currency swaps Other current liabilities 1,497 1,262 Cash Flow Hedges: Fuel swaps Other current assets $ 168 $ 102 Foreign currency forwards Other current assets 74 624 Fuel swaps Other assets 136 40 Fuel swaps Other current liabilities 10,372 17,932 Foreign currency forwards Other current liabilities 642 404 Fuel swaps Other long-term liabilities 2,794 5,637 Net Investment Hedges: Cross currency swaps Other current assets $ 3,377 $ — Cross currency swaps Other long-term liabilities 25,738 — |
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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 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 $ 154,925 $ 132,042 $ 295,899 $ 256,192 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (30,298) $ (2,685) $ (30,298) $ (309) Derivatives designated as hedging instruments 22,066 742 22,066 (5,501) Cross currency swaps: Hedged items $ (2,711) $ — $ 285 $ — Derivatives designated as hedging instruments 2,711 — (285) — 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 (In thousands) Interest expense $ (3,250) $ (1,940) $ (3,250) $ (3,879) Decrease in fair value of debt 27,048 745 27,048 (3,570) Foreign currency gain (loss) (2,711) — 285 — Hedged items $ (33,009) $ (2,685) $ (30,013) $ (309) The location and effect of cash flow, net investment, and excluded components of fair value hedges on the consolidated statements of comprehensive income for the 13-week periods ended December 30, 2023 and December 31, 2022, presented on a pretax basis, are as follows: 13-Week Period Ended Dec. 30, 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 $ (24,524) Operating expense $ 669 Foreign currency contracts (507) Cost of sales / Other income — Total $ (25,031) $ 669 Derivatives in net investment hedging relationships: Cross currency contracts $ (22,361) N/A $ — Derivatives in fair value hedging relationships: Change in excluded component of fair value hedge $ 210 Other expense (income) $ — 13-Week Period Ended Dec. 31, 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 $ 1,140 Operating expense $ 12,377 Foreign currency contracts 49 Cost of sales / Other income — Total $ 1,189 $ 12,377 Derivatives in net investment hedging relationships: Foreign denominated debt $ (44,999) N/A $ — The location and effect of cash flow, net investment, and excluded components of fair value hedges on the consolidated statements of comprehensive income for the 26-week periods ended December 30, 2023 and December 31, 2022, presented on a pretax basis, are as follows: 26-Week Period Ended Dec. 30, 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 $ 9,975 Operating expense $ 3,003 Foreign currency contracts (791) Cost of sales / Other income — Total $ 9,184 $ 3,003 Derivatives in net investment hedging relationships: Cross currency contracts $ (22,361) N/A $ — Derivatives in fair value hedging relationships: Change in excluded component of fair value hedge $ 184 Other expense (income) $ — 26-Week Period Ended Dec. 31, 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 $ (35,155) Operating expense $ 25,362 Foreign currency contracts 335 Cost of sales / Other income — Total $ (34,820) $ 25,362 Derivatives in net investment hedging relationships: Foreign denominated debt $ (13,653) N/A $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 30, 2023 are as follows: Dec. 30, 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: Long-term debt $ (518,622) $ (27,048) |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing January 17, 2029 (the 2029 Notes) $ 500 5.75 % 99.784 % January 17, 2034 (the 2034 Notes) 500 6.00 99.037 |
COMPANY-SPONSORED EMPLOYEE BE_2
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Dec. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans components of net benefit cost | The components of net company-sponsored benefit cost for the U.S. Retirement Plan are as follows: 13-Week Period 26-Week Period Ended (1) Ended (1) Dec. 31, 2022 Dec. 31, 2022 (In thousands) (In thousands) Service cost $ 2,034 $ 4,357 Interest cost 38,103 80,604 Expected return on plan assets (36,957) (76,977) Amortization of prior service cost 98 197 Amortization of actuarial loss 7,661 16,609 Settlement loss recognized 315,354 315,354 Net pension costs $ 326,293 $ 340,144 (1) Net pension costs were not material for the second quarter and first 26 weeks of fiscal 2024. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Dec. 30, 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 415,242 $ 141,216 $ 918,634 $ 606,784 Denominator: Weighted-average basic shares outstanding 504,312,633 507,609,696 504,719,562 507,594,137 Dilutive effect of share-based awards 1,616,709 2,536,098 1,779,828 2,670,336 Weighted-average diluted shares outstanding 505,929,342 510,145,794 506,499,390 510,264,473 Basic earnings per share $ 0.82 $ 0.28 $ 1.82 $ 1.20 Diluted earnings per share $ 0.82 $ 0.28 $ 1.81 $ 1.19 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Dec. 30, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Other Comprehensive (Loss) Income and Related Tax Effects | A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Dec. 30, 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 $ 195 $ 49 $ 146 Amortization of actuarial loss, net Other expense, net 6,676 1,665 5,011 Total reclassification adjustments 6,871 1,714 5,157 Foreign currency translation: Foreign currency translation adjustment N/A 163,084 — 163,084 Marketable securities: Change in marketable securities (1) N/A 4,359 915 3,444 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in excluded component of fair value Other expense, net 210 52 158 Change in cash flow hedges Operating expenses (2) (25,031) (4,806) (20,225) Change in net investment hedges N/A (22,361) (5,620) (16,741) Total other comprehensive (loss) before reclassification adjustments (47,182) (10,374) (36,808) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,893 723 2,170 Total other comprehensive income (loss) $ 130,025 $ (7,022) $ 137,047 (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 second quarter of fiscal 2024. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Dec. 31, 2022 Location of Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain, 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 99 25 74 Amortization of actuarial loss, net Other expense, net 7,500 1,872 5,628 Total reclassification adjustments 7,599 1,897 5,702 Foreign currency translation: Foreign currency translation adjustment N/A 241,814 — 241,814 Marketable securities: Change in marketable securities (1) N/A 1,511 317 1,194 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) 1,189 986 203 Change in net investment hedges N/A (44,999) (11,250) (33,749) Total other comprehensive (loss) before reclassification adjustments (43,810) (10,264) (33,546) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,893 723 2,170 Total other comprehensive income $ 435,611 $ 49,074 $ 386,537 (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 second quarter of fiscal 2023 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 26-Week Period Ended Dec. 30, 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 $ 672 $ 169 $ 503 Reclassification adjustments: Amortization of prior service cost Other expense, net 390 98 292 Amortization of actuarial loss, net Other expense, net 13,317 3,324 9,993 Total reclassification adjustments 13,707 3,422 10,285 Foreign currency translation: Foreign currency translation adjustment N/A 54,890 — 54,890 Marketable securities: Change in marketable securities (1) N/A 3,163 664 2,499 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in excluded component of fair value Other expense, net 184 46 138 Change in cash flow hedges Operating expenses (2) 9,184 2,261 6,923 Change in net investment hedges N/A (22,361) (5,620) (16,741) Total other comprehensive (loss) before reclassification adjustments (12,993) (3,313) (9,680) Reclassification adjustments: Amortization of cash flow hedges Interest expense 5,786 1,446 4,340 Total other comprehensive income $ 65,225 $ 2,388 $ 62,837 (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 26 weeks of fiscal 2024. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 26-Week Period Ended Dec. 31, 2022 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 198 50 148 Amortization of actuarial loss, net Other expense, net 16,686 4,167 12,519 Total reclassification adjustments 16,884 4,217 12,667 Foreign currency translation: Foreign currency translation adjustment N/A 9,632 — 9,632 Marketable securities: Change in marketable securities (1) N/A (2,701) (567) (2,134) Hedging instruments: Other comprehensive (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (34,820) (8,633) (26,187) Change in net investment hedges N/A (13,653) (3,413) (10,240) Total other comprehensive (loss) before reclassification adjustments (48,473) (12,046) (36,427) Reclassification adjustments: Amortization of cash flow hedges Interest expense 5,767 1,442 4,325 Total other comprehensive income $ 206,713 $ 49,447 $ 157,266 (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 26 weeks of fiscal 2023. (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: 26-Week Period Ended Dec. 30, 2023 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, Total (In thousands) Balance as of Jul. 1, 2023 $ (839,541) $ (374,290) $ (31,966) $ (6,793) $ (1,252,590) Net actuarial loss arising in the current year 503 — — — 503 Equity adjustment from foreign currency translation — 54,890 — — 54,890 Amortization of cash flow hedges — — 4,340 — 4,340 Change in net investment hedges (16,741) (16,741) Change in excluded component of fair value hedge — — 138 — 138 Change in cash flow hedge — — 6,923 — 6,923 Amortization of unrecognized prior service cost 292 — — — 292 Amortization of unrecognized net actuarial losses 9,993 — — — 9,993 Change in marketable securities — — — 2,499 2,499 Balance as of Dec. 30, 2023 $ (828,753) $ (319,400) $ (37,306) $ (4,294) $ (1,189,753) 26-Week Period Ended Dec. 31, 2022 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 — 9,632 — — 9,632 Amortization of cash flow hedges — — 4,325 — 4,325 Change in net investment hedges — — (10,240) — (10,240) Change in cash flow hedges — — (26,187) — (26,187) Amortization of unrecognized prior service cost 148 — — — 148 Amortization of unrecognized net actuarial losses 12,519 — — — 12,519 Change in marketable securities — — — (2,134) (2,134) Balance as of Dec. 31, 2022 $ (829,465) $ (491,885) $ 3,668 $ (7,106) $ (1,324,788) |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Dec. 30, 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 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 13,494,443 $ 13,077,054 $ 27,218,242 $ 26,679,536 International Foodservice Operations 3,596,458 3,282,411 7,279,668 6,566,146 SYGMA 1,913,715 1,933,536 3,819,729 3,866,993 Other 283,326 300,952 590,757 608,108 Total $ 19,287,942 $ 18,593,953 $ 38,908,396 $ 37,720,783 13-Week Period Ended 26-Week Period Ended Dec. 30, 2023 Dec. 31, 2022 Dec. 30, 2023 Dec. 31, 2022 Operating income (loss): (In thousands) (In thousands) U.S. Foodservice Operations $ 839,036 $ 780,968 $ 1,780,007 $ 1,686,679 International Foodservice Operations 82,930 57,413 176,413 144,393 SYGMA 16,346 6,847 29,113 12,544 Other 8,387 9,870 20,210 21,408 Total segments 946,699 855,098 2,005,743 1,865,024 Global Support Center (246,656) (214,275) (502,118) (487,400) Total operating income 700,043 640,823 1,503,625 1,377,624 Interest expense 149,680 132,042 284,014 256,192 Other expense, net 5,245 330,305 11,885 348,054 Earnings before income taxes $ 545,118 $ 178,476 $ 1,207,726 $ 773,378 |
BASIS OF PRESENTATION - Reconci
BASIS OF PRESENTATION - Reconciliation and Restricted Cash, Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 | Jul. 02, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 962,165 | $ 745,201 | $ 500,340 | |
Restricted cash | 133,491 | 85,306 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 1,095,656 | $ 966,033 | $ 585,646 | $ 931,376 |
BASIS OF PRESENTATION - Non-cas
BASIS OF PRESENTATION - Non-cash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Non-cash investing and financing activities: | ||
Plant and equipment acquired through financing programs | $ 158,454 | $ 52,360 |
Assets obtained in exchange for finance lease obligations | $ 52,367 | $ 81,799 |
NEW ACCOUNTING STANDARDS (Detai
NEW ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 | Jul. 02, 2022 |
Accounting Policies [Abstract] | ||||
Financed payment obligations | $ 83,528 | $ 99,606 | $ 81,018 | $ 90,267 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Billions | Dec. 30, 2023 | Jul. 01, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Customer receivables included in accounts and notes receivable, net | $ 5 | $ 4.7 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 19,287,942 | $ 18,593,953 | $ 38,908,396 | $ 37,720,783 |
Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,631,100 | 3,440,013 | 7,380,315 | 6,946,738 |
Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,581,942 | 3,288,317 | 7,151,453 | 6,670,571 |
Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,994,472 | 2,785,823 | 6,001,253 | 5,518,668 |
Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,978,142 | 2,017,431 | 3,987,693 | 4,074,408 |
Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,886,707 | 1,879,683 | 3,813,433 | 4,024,247 |
Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,639,889 | 1,708,823 | 3,346,282 | 3,366,724 |
Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,303,544 | 1,334,913 | 2,674,530 | 2,726,299 |
Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 662,135 | 694,860 | 1,408,310 | 1,494,590 |
Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 660,583 | 595,290 | 1,363,889 | 1,210,207 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 949,428 | 848,800 | 1,781,238 | 1,688,331 |
US Foodservice Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,494,443 | 13,077,054 | 27,218,242 | 26,679,536 |
US Foodservice Operations | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,601,298 | 2,502,665 | 5,285,985 | 5,079,917 |
US Foodservice Operations | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,574,453 | 2,390,929 | 5,143,634 | 4,856,379 |
US Foodservice Operations | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,996,667 | 1,851,344 | 4,024,601 | 3,694,811 |
US Foodservice Operations | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,448,604 | 1,498,039 | 2,902,553 | 3,023,521 |
US Foodservice Operations | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,340,095 | 1,329,071 | 2,701,790 | 2,903,321 |
US Foodservice Operations | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,308,581 | 1,385,083 | 2,669,938 | 2,723,003 |
US Foodservice Operations | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 971,489 | 976,231 | 1,965,326 | 1,999,135 |
US Foodservice Operations | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 507,958 | 547,760 | 1,085,593 | 1,186,165 |
US Foodservice Operations | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 335,748 | 303,789 | 698,413 | 619,407 |
US Foodservice Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 409,550 | 292,143 | 740,409 | 593,877 |
International Foodservice Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,596,458 | 3,282,411 | 7,279,668 | 6,566,146 |
International Foodservice Operations | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 801,170 | 700,622 | 1,632,713 | 1,391,996 |
International Foodservice Operations | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 503,387 | 445,018 | 1,023,128 | 898,382 |
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 682,027 | 596,100 | 1,355,575 | 1,176,132 |
International Foodservice Operations | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 388,401 | 358,639 | 802,572 | 725,486 |
International Foodservice Operations | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 285,312 | 285,343 | 576,635 | 578,193 |
International Foodservice Operations | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 265,417 | 257,641 | 540,135 | 512,378 |
International Foodservice Operations | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 129,881 | 134,507 | 304,206 | 278,574 |
International Foodservice Operations | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 110,121 | 109,290 | 235,145 | 230,491 |
International Foodservice Operations | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 164,368 | 133,515 | 334,921 | 269,991 |
International Foodservice Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 266,374 | 261,736 | 474,638 | 504,523 |
SYGMA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,913,715 | 1,933,536 | 3,819,729 | 3,866,993 |
SYGMA | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 228,632 | 236,726 | 461,617 | 472,894 |
SYGMA | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 504,102 | 452,370 | 984,691 | 915,810 |
SYGMA | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 315,778 | 338,379 | 621,077 | 647,576 |
SYGMA | Dairy products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 141,137 | 160,753 | 282,568 | 325,401 |
SYGMA | Poultry | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 261,300 | 265,269 | 535,008 | 542,733 |
SYGMA | Fresh produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 65,891 | 66,099 | 136,209 | 131,343 |
SYGMA | Paper and disposables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 188,075 | 210,691 | 374,618 | 420,049 |
SYGMA | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,056 | 37,810 | 87,572 | 77,934 |
SYGMA | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 139,137 | 136,668 | 285,359 | 274,835 |
SYGMA | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,607 | 28,771 | 51,010 | 58,418 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 283,326 | 300,952 | 590,757 | 608,108 |
Other | Canned and dry products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 1,931 |
Other | Fresh and frozen meats | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Frozen fruits, vegetables, bakery and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 149 |
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 | 14,099 | 13,484 | 30,380 | 28,541 |
Other | Seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,330 | 21,318 | 45,196 | 45,974 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 247,897 | $ 266,150 | $ 515,181 | $ 531,513 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Nov. 27, 2023 | Jul. 01, 2023 | |
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, net of cash acquired | $ 1,174,608 | $ 37,699 | ||
Goodwill | 5,255,010 | $ 4,645,754 | ||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, net of cash acquired | 1,200,000 | |||
Edward Don & Company | ||||
Business Acquisition [Line Items] | ||||
Voting interests acquired | 100% | |||
Contingent consideration outstanding | $ 969,400 | |||
Edward Don & Company | US Foodservice Operations | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 447,600 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value Table (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 573,600 | $ 318,973 |
Other assets | 133,491 | 220,831 |
Total assets at fair value | 707,091 | 539,804 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 573,597 | 308,952 |
Other assets | 133,491 | 220,831 |
Total assets at fair value | 707,088 | 529,783 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3 | 10,021 |
Other assets | 0 | 0 |
Total assets at fair value | 3 | 10,021 |
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 | Dec. 30, 2023 | Jul. 01, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 11.9 | $ 9.8 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 12.1 | $ 10.4 |
MARKETABLE SECURITIES - Availab
MARKETABLE SECURITIES - Available-For-Sale Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 |
Marketable Securities [Line Items] | ||
Amortized Cost Basis | $ 130,493 | $ 129,278 |
Gross Unrealized Gains | 523 | 96 |
Gross Unrealized Losses | (5,953) | (8,690) |
Fair Value | 125,063 | 120,684 |
Short-Term Marketable Securities | 23,032 | 12,767 |
Long-Term Marketable Securities | 102,031 | 107,917 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 100,865 | 99,501 |
Gross Unrealized Gains | 523 | 96 |
Gross Unrealized Losses | (4,585) | (6,777) |
Fair Value | 96,803 | 92,820 |
Short-Term Marketable Securities | 23,032 | 12,767 |
Long-Term Marketable Securities | 73,771 | 80,053 |
Government bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 29,628 | 29,777 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,368) | (1,913) |
Fair Value | 28,260 | 27,864 |
Short-Term Marketable Securities | 0 | 0 |
Long-Term Marketable Securities | $ 28,260 | $ 27,864 |
MARKETABLE SECURITIES - Avail_2
MARKETABLE SECURITIES - Available-For-Sale Debt Securities Held To Actual Maturity (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 23,032 | |
Due after one year through five years | 62,334 | |
Due after five years | 39,697 | |
Fair Value | $ 125,063 | $ 120,684 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - Senior Notes - USD ($) $ in Millions | Dec. 30, 2023 | Nov. 17, 2023 |
Derivative [Line Items] | ||
Par Value (in millions) | $ 1,000 | |
Senior Notes 6.00%, Due November 2024 | ||
Derivative [Line Items] | ||
Par Value (in millions) | $ 500 | |
Coupon Rate | 6% |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Outstanding Swap Agreements (Details) - 6 months ended Dec. 30, 2023 € in Millions, £ in Millions, kr in Millions, gal in Millions, $ in Millions, $ in Millions, $ in Millions | USD ($) gal | SEK (kr) | GBP (£) | MXN ($) | CAD ($) | EUR (€) |
Hedging of interest rate risk, March 2025 | ||||||
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 101 | £ 17 | ||||
Hedging of foreign currency risk euro , June 2023 | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional value | $ 439 | |||||
Canadian Dollar | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional value | $ 180 | € 470 | ||||
Fuel swaps | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional amount (in gallons) | gal | 57 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Derivatives Balance Sheet Location Table (Details) - Hedging Instrument - USD ($) $ in Thousands | Dec. 30, 2023 | Jul. 01, 2023 |
Fair Value Hedges | Foreign currency swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | $ 1,198 | $ 0 |
Fair Value Hedges | Foreign currency swaps | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 1,497 | 1,262 |
Fair Value Hedges | Interest rate swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 24,557 | 0 |
Cash Flow Hedges | Fuel swaps | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 168 | 102 |
Cash Flow Hedges | Fuel swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 136 | 40 |
Cash Flow Hedges | Fuel swaps | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 10,372 | 17,932 |
Cash Flow Hedges | Fuel swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 2,794 | 5,637 |
Cash Flow Hedges | Foreign currency forwards | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 74 | 624 |
Cash Flow Hedges | Foreign currency forwards | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 642 | 404 |
Net Investment Hedging | Foreign currency swaps | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 3,377 | 0 |
Net Investment Hedging | Foreign currency swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 25,738 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Location and Effect of Derivative Instruments and Related Hedged Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||||
Interest expense | $ 149,680 | $ 132,042 | $ 284,014 | $ 256,192 |
Derivatives designated as hedging instruments | (2,711) | 0 | 285 | 0 |
Interest expense | (3,250) | (1,940) | (3,250) | (3,879) |
Decrease in fair value of debt | 27,048 | 745 | 27,048 | (3,570) |
Foreign currency gain (loss) | (2,711) | 0 | 285 | 0 |
Hedging Instrument | Fair Value Hedges | ||||
Derivative [Line Items] | ||||
Interest expense | 154,925 | 132,042 | 295,899 | 256,192 |
Hedging Instrument | Fair Value Hedges | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Hedged items | (33,009) | (2,685) | (30,013) | (309) |
Hedging Instrument | Fair Value Hedges | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Hedged items | (30,298) | (2,685) | (30,298) | (309) |
Derivatives designated as hedging instruments | 22,066 | 742 | 22,066 | (5,501) |
Foreign currency gain (loss) | 22,066 | 742 | 22,066 | (5,501) |
Hedging Instrument | Fair Value Hedges | Foreign currency swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Hedged items | (2,711) | 0 | 285 | 0 |
Derivatives designated as hedging instruments | 2,711 | 0 | (285) | 0 |
Foreign currency gain (loss) | $ 2,711 | $ 0 | $ (285) | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges (Details) - Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | $ (25,031) | $ 1,189 | $ 9,184 | $ (34,820) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - cash flow hedging | 669 | 12,377 | 3,003 | 25,362 |
Cash Flow Hedges | Fuel swaps | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | (24,524) | 1,140 | 9,975 | (35,155) |
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 | 669 | 12,377 | 3,003 | 25,362 |
Cash Flow Hedges | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - cash flow hedging | (507) | 49 | (791) | 335 |
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 | Cross currency swaps | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - net investment hedging | (22,361) | (22,361) | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - net investment hedging | 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 | (44,999) | (13,653) | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - net investment hedging | $ 0 | $ 0 | ||
Fair Value Hedges | Foreign currency contracts | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) recognized in other comprehensive income on derivatives - net investment hedging | 210 | 184 | ||
Fair Value Hedges | Foreign currency contracts | Other expense (income) | ||||
Derivative [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - net investment hedging | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS - Location of Hedged Liabilities (Details) - USD ($) | Dec. 30, 2023 | Jul. 01, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt | |
Carrying amount of hedged liabilities | $ 518,622,000 | $ 0 |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ (27,048,000) |
DEBT - Narrative (Details)
DEBT - Narrative (Details) € in Millions | 6 Months Ended | |||
Nov. 06, 2023 | Oct. 17, 2023 EUR (€) | Dec. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) | |
Debt [Line Items] | ||||
Total carrying value of debt | $ 11,900,000,000 | $ 9,800,000,000 | ||
Carrying Value | ||||
Debt [Line Items] | ||||
Total carrying value of debt | 12,100,000,000 | $ 10,400,000,000 | ||
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 | 0 | |||
Senior Notes | January 17, 2029 (the 2029 Notes) | ||||
Debt [Line Items] | ||||
Early redemption | 1 month | |||
Principal repayment for early redemption | 100% | |||
Senior Notes | January 17, 2034 (the 2034 Notes) | ||||
Debt [Line Items] | ||||
Early redemption | 3 months | |||
Principal repayment for early redemption | 100% | |||
Commercial Paper | ||||
Debt [Line Items] | ||||
Maximum board-authorized aggregate commercial paper limit | 3,000,000,000 | |||
Debt issuances outstanding | 500,000,000 | |||
Commercial Paper | Barclays Bank of Ireland | ||||
Debt [Line Items] | ||||
Maximum board-authorized aggregate commercial paper limit | € | € 250 | |||
Debt issuances outstanding | $ 0 |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - Senior Notes - USD ($) $ in Millions | Nov. 17, 2023 | Nov. 06, 2023 |
Debt [Line Items] | ||
Par Value (in millions) | $ 1,000 | |
January 17, 2029 (the 2029 Notes) | ||
Debt [Line Items] | ||
Par Value (in millions) | $ 500 | |
Coupon Rate | 5.75% | |
Pricing (percentage of par) | 99.784% | |
January 17, 2034 (the 2034 Notes) | ||
Debt [Line Items] | ||
Par Value (in millions) | $ 500 | |
Coupon Rate | 6% | |
Pricing (percentage of par) | 99.037% |
COMPANY-SPONSORED EMPLOYEE BE_3
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - Narrative (Details) participant in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 25, 2022 USD ($) participant | Dec. 31, 2022 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension settlement charge | $ 0 | $ 315,354 | ||
United States | Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Payment for settlement | $ 695,000 | |||
Number of participants | participant | 10 | |||
Pension settlement charge | $ 315,354 | $ 315,354 |
COMPANY-SPONSORED EMPLOYEE BE_4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET BENEFIT COSTS AND OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Net benefit costs | |||
Settlement loss recognized | $ 0 | $ 315,354 | |
Pension Benefits | United States | |||
Net benefit costs | |||
Service cost | $ 2,034 | 4,357 | |
Interest cost | 38,103 | 80,604 | |
Expected return on plan assets | (36,957) | (76,977) | |
Amortization of prior service cost | 98 | 197 | |
Amortization of actuarial loss | 7,661 | 16,609 | |
Settlement loss recognized | 315,354 | 315,354 | |
Net pension costs | $ 326,293 | $ 340,144 |
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 | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Numerator: | ||||
Net earnings | $ 415,242 | $ 141,216 | $ 918,634 | $ 606,784 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 504,312,633 | 507,609,696 | 504,719,562 | 507,594,137 |
Dilutive effect of share-based awards (in shares) | 1,616,709 | 2,536,098 | 1,779,828 | 2,670,336 |
Weighted-average diluted shares outstanding (in shares) | 505,929,342 | 510,145,794 | 506,499,390 | 510,264,473 |
Basic earnings per share (in dollars per share) | $ 0.82 | $ 0.28 | $ 1.82 | $ 1.20 |
Diluted earnings per share (in dollars per share) | $ 0.82 | $ 0.28 | $ 1.81 | $ 1.19 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 15, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Payments for repurchase of common stock | $ 199,947 | $ 267,727 | |||
Accelerated Share Repurchase | Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Accelerated share repurchase program, authorized amount | $ 500,000 | ||||
Payments for repurchase of common stock | $ 500,000 | ||||
Treasury stock purchases (in shares) | 6,026,110 | ||||
Employee Stock Option | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities excluded (in shares) | 6,451,000 | 1,848,000 | 6,219,000 | 1,620,000 |
OTHER COMPREHENSIVE INCOME - Na
OTHER COMPREHENSIVE INCOME - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Comprehensive income | $ 552,289 | $ 527,753 | $ 981,471 | $ 764,050 |
OTHER COMPREHENSIVE INCOME - Co
OTHER COMPREHENSIVE INCOME - Components of Other Comprehensive (Loss) Income and Related Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Before Tax Amount | ||||
Total other comprehensive income (loss) | $ 130,025 | $ 435,611 | $ 65,225 | $ 206,713 |
Tax | ||||
Total other comprehensive income (loss) | (7,022) | 49,074 | 2,388 | 49,447 |
Net of Tax Amount | ||||
Total other comprehensive income | 137,047 | 386,537 | 62,837 | 157,266 |
Pension and other postretirement benefit plans: | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 6,871 | 7,599 | 13,707 | 16,884 |
Tax | ||||
Amortization of prior service cost | 1,714 | 1,897 | 3,422 | 4,217 |
Net of Tax Amount | ||||
Amortization of prior service cost | 5,157 | 5,702 | 10,285 | 12,667 |
Amortization of actuarial loss, net | ||||
Net of Tax Amount | ||||
Before reclassifications, net of tax | 503 | (67,388) | ||
Amortization of prior service cost | 9,993 | 12,519 | ||
Amortization of actuarial loss, net | Other expense, net | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (89,851) | 672 | (89,851) | |
Reclassification adjustments, before tax | 6,676 | 7,500 | 13,317 | 16,686 |
Tax | ||||
Before reclassifications tax | (22,463) | 169 | (22,463) | |
Amortization of prior service cost | 1,665 | 1,872 | 3,324 | 4,167 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (67,388) | 503 | (67,388) | |
Amortization of prior service cost | 5,011 | 5,628 | 9,993 | 12,519 |
Settlements | Other expense, net | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 315,455 | 315,455 | ||
Tax | ||||
Before reclassifications tax | 78,864 | 78,864 | ||
Net of Tax Amount | ||||
Before reclassifications, net of tax | 236,591 | 236,591 | ||
Total other comprehensive income before reclassification adjustments | Other expense, net | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 225,604 | 225,604 | ||
Tax | ||||
Before reclassifications tax | 56,401 | 56,401 | ||
Net of Tax Amount | ||||
Before reclassifications, net of tax | 169,203 | 169,203 | ||
Amortization of prior service cost | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 292 | 148 | ||
Amortization of prior service cost | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 195 | 99 | 390 | 198 |
Tax | ||||
Amortization of prior service cost | 49 | 25 | 98 | 50 |
Net of Tax Amount | ||||
Amortization of prior service cost | 146 | 74 | 292 | 148 |
Foreign currency translation adjustment | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 163,084 | 241,814 | 54,890 | 9,632 |
Tax | ||||
Before reclassifications tax | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Before reclassifications, net of tax | 163,084 | 241,814 | 54,890 | 9,632 |
Marketable Securities, net of tax | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 4,359 | 1,511 | 3,163 | (2,701) |
Tax | ||||
Before reclassifications tax | 915 | 317 | 664 | (567) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | 3,444 | 1,194 | 2,499 | (2,134) |
Hedging, net of tax | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (47,182) | (43,810) | (12,993) | (48,473) |
Tax | ||||
Before reclassifications tax | (10,374) | (10,264) | (3,313) | (12,046) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (36,808) | (33,546) | (9,680) | (36,427) |
Change in excluded component of fair value hedge | Other expense, net | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 210 | 184 | ||
Tax | ||||
Before reclassifications tax | 52 | 46 | ||
Net of Tax Amount | ||||
Before reclassifications, net of tax | 158 | 138 | ||
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Before reclassifications, net of tax | 6,923 | (26,187) | ||
Amortization of prior service cost | 4,340 | 4,325 | ||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (25,031) | 1,189 | 9,184 | (34,820) |
Tax | ||||
Before reclassifications tax | (4,806) | 986 | 2,261 | (8,633) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | (20,225) | 203 | 6,923 | (26,187) |
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,893 | 2,893 | 5,786 | 5,767 |
Tax | ||||
Amortization of prior service cost | 723 | 723 | 1,446 | 1,442 |
Net of Tax Amount | ||||
Amortization of prior service cost | 2,170 | 2,170 | 4,340 | 4,325 |
Amounts reclassified from accumulated other comprehensive loss | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (22,361) | (44,999) | (22,361) | (13,653) |
Tax | ||||
Before reclassifications tax | (5,620) | (11,250) | (5,620) | (3,413) |
Net of Tax Amount | ||||
Before reclassifications, net of tax | $ (16,741) | $ (33,749) | $ (16,741) | $ (10,240) |
OTHER COMPREHENSIVE INCOME - Ro
OTHER COMPREHENSIVE INCOME - Roll forward of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,125,799 | $ 1,115,341 | $ 2,008,622 | $ 1,382,260 |
Ending balance | 2,404,034 | 1,436,589 | 2,404,034 | 1,436,589 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,326,800) | (1,711,325) | (1,252,590) | (1,482,054) |
Ending balance | (1,189,753) | (1,324,788) | (1,189,753) | (1,324,788) |
Pension and Other Postretirement Benefit Plans, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (839,541) | (1,011,335) | ||
Ending balance | (828,753) | (829,465) | (828,753) | (829,465) |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (374,290) | (501,517) | ||
OCI before reclassifications, net of tax | 163,084 | 241,814 | 54,890 | 9,632 |
Other comprehensive income before reclassifications, before tax | 163,084 | 241,814 | 54,890 | 9,632 |
Ending balance | (319,400) | (491,885) | (319,400) | (491,885) |
Hedging, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (31,966) | 35,770 | ||
OCI before reclassifications, net of tax | (36,808) | (33,546) | (9,680) | (36,427) |
Other comprehensive income before reclassifications, before tax | (47,182) | (43,810) | (12,993) | (48,473) |
Ending balance | (37,306) | 3,668 | (37,306) | 3,668 |
Marketable Securities, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (6,793) | (4,972) | ||
OCI before reclassifications, net of tax | 3,444 | 1,194 | 2,499 | (2,134) |
Other comprehensive income before reclassifications, before tax | 4,359 | 1,511 | 3,163 | (2,701) |
Ending balance | $ (4,294) | $ (7,106) | (4,294) | (7,106) |
Amortization of unrecognized net actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 503 | (67,388) | ||
Reclassification adjustment, net of tax | 9,993 | 12,519 | ||
Settlements | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 236,591 | |||
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 6,923 | (26,187) | ||
Reclassification adjustment, net of tax | 4,340 | 4,325 | ||
Change in net investment hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | (16,741) | (10,240) | ||
Change in cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
OCI before reclassifications, net of tax | 138 | |||
Amortization of prior service cost | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | $ 292 | $ 148 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 52,821 | $ 52,679 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 143,600 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 1 year 11 months 12 days | |
Stock Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 808,279 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 19.27 | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 521,082 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 73.58 | |
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) | 366,883 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 71.93 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 594,056 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 10.33 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 23.83% | 20.88% | 23.94% | 21.54% | |
Pension buyout | $ 4.9 | ||||
Impact of excess tax benefits of equity-based compensation | 1.4 | $ 10.3 | |||
Unrecognized tax benefits | 32.4 | $ 32.4 | |||
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 9.7 | $ 9.7 | |||
Income tax benefit | $ 131 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | ||
Segment Reporting [Abstract] | |||||
Number of reporting segments | segment | 3 | ||||
Segment Reporting Information [Line Items] | |||||
Sales | $ 19,287,942 | $ 18,593,953 | $ 38,908,396 | $ 37,720,783 | |
Operating income (loss): | 700,043 | 640,823 | 1,503,625 | 1,377,624 | |
Interest expense | 149,680 | 132,042 | 284,014 | 256,192 | |
Other expense (income), net | [1],[2] | 5,245 | 330,305 | 11,885 | 348,054 |
Earnings before income taxes | 545,118 | 178,476 | 1,207,726 | 773,378 | |
US Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 13,494,443 | 13,077,054 | 27,218,242 | 26,679,536 | |
International Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 3,596,458 | 3,282,411 | 7,279,668 | 6,566,146 | |
SYGMA | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,913,715 | 1,933,536 | 3,819,729 | 3,866,993 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 283,326 | 300,952 | 590,757 | 608,108 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 19,287,942 | 18,593,953 | 38,908,396 | 37,720,783 | |
Operating income (loss): | 946,699 | 855,098 | 2,005,743 | 1,865,024 | |
Operating Segments | US Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 13,494,443 | 13,077,054 | 27,218,242 | 26,679,536 | |
Operating income (loss): | 839,036 | 780,968 | 1,780,007 | 1,686,679 | |
Operating Segments | International Foodservice Operations | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 3,596,458 | 3,282,411 | 7,279,668 | 6,566,146 | |
Operating income (loss): | 82,930 | 57,413 | 176,413 | 144,393 | |
Operating Segments | SYGMA | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,913,715 | 1,933,536 | 3,819,729 | 3,866,993 | |
Operating income (loss): | 16,346 | 6,847 | 29,113 | 12,544 | |
Operating Segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 283,326 | 300,952 | 590,757 | 608,108 | |
Operating income (loss): | 8,387 | 9,870 | 20,210 | 21,408 | |
Global Support Center | |||||
Segment Reporting Information [Line Items] | |||||
Operating income (loss): | $ (246,656) | $ (214,275) | $ (502,118) | $ (487,400) | |
[1] Gains and losses related to the disposition of fixed assets have been recognized within operating expenses. Prior year amounts have been reclassified to conform to this presentation. Sysco’s second quarter of fiscal 2023 included a charge of $315.4 million in other expense related to pension settlement charges. See Note 9, “Company-Sponsored Employee Benefit Plans.” |