Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 30, 2019 | Apr. 19, 2019 | |
Document Entity Information [Abstract] | ||
Entity Registrant Name | SYSCO CORP | |
Entity Central Index Key | 0000096021 | |
Current Fiscal Year End Date | --06-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 513,975,346 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets | |||
Cash and cash equivalents | $ 521,621 | $ 552,325 | $ 901,551 |
Accounts and notes receivable, less allowances of $59,643, $25,768 and $65,647 | 4,328,952 | 4,073,723 | 4,227,743 |
Inventories, net | 3,344,683 | 3,125,413 | 3,259,771 |
Prepaid expenses and other current assets | 211,155 | 187,880 | 231,064 |
Income tax receivable | 49,138 | 64,112 | 95,742 |
Total current assets | 8,455,549 | 8,003,453 | 8,715,871 |
Plant and equipment at cost, less accumulated depreciation | 4,377,059 | 4,521,660 | 4,392,158 |
Other long-term assets | |||
Goodwill | 3,924,021 | 3,955,485 | 4,066,186 |
Intangibles, less amortization | 888,466 | 979,812 | 1,056,068 |
Deferred income taxes | 61,873 | 83,666 | 4,289 |
Other assets | 493,831 | 526,328 | 394,570 |
Total other long-term assets | 5,368,191 | 5,545,291 | 5,521,113 |
Total assets | 18,200,799 | 18,070,404 | 18,629,142 |
Current liabilities | |||
Notes payable | 5,733 | 4,176 | 6,606 |
Accounts payable | 4,293,468 | 4,136,482 | 4,235,856 |
Accrued expenses | 1,663,719 | 1,608,966 | 1,515,682 |
Accrued income taxes | 0 | 56,793 | 0 |
Current maturities of long-term debt | 537,238 | 782,329 | 288,055 |
Total current liabilities | 6,500,158 | 6,588,746 | 6,046,199 |
Long-term liabilities | |||
Long-term debt | 8,134,461 | 7,540,765 | 8,835,156 |
Deferred income taxes | 219,587 | 319,124 | 161,193 |
Other long-term liabilities | 949,636 | 1,077,163 | 1,199,472 |
Total long-term liabilities | 9,303,684 | 8,937,052 | 10,195,821 |
Commitments and contingencies | |||
Noncontrolling interest | 35,060 | 37,649 | 35,909 |
Shareholders’ equity | |||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | 0 | 0 | 0 |
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765,175 | 765,175 | 765,175 |
Paid-in capital | 1,425,079 | 1,383,619 | 1,357,399 |
Retained earnings | 10,893,648 | 10,348,628 | 9,850,739 |
Accumulated other comprehensive loss | (1,483,469) | (1,409,269) | (1,075,484) |
Treasury stock at cost, 251,329,462, 244,533,248 and 244,419,011 shares | (9,238,536) | (8,581,196) | (8,546,616) |
Total shareholders’ equity | 2,361,897 | 2,506,957 | 2,351,213 |
Total liabilities and shareholders' equity | $ 18,200,799 | $ 18,070,404 | $ 18,629,142 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 59,643 | $ 25,768 | $ 65,647 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,500,000 | 1,500,000 | 1,500,000 |
Preferred stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 765,174,900 | 765,174,900 | 765,174,900 |
Treasury stock (in shares) | 251,329,462 | 244,533,248 | 244,419,011 |
Consolidated Results of Operati
Consolidated Results of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 14,658,074 | $ 14,349,504 | $ 44,639,060 | $ 43,411,418 |
Cost of sales | 11,903,776 | 11,673,876 | 36,209,265 | 35,242,736 |
Gross profit | 2,754,298 | 2,675,628 | 8,429,795 | 8,168,682 |
Operating expenses | 2,224,713 | 2,193,425 | 6,820,175 | 6,538,562 |
Operating income | 529,585 | 482,203 | 1,609,620 | 1,630,120 |
Interest expense | 94,514 | 136,145 | 270,643 | 303,015 |
Other expense (income), net | 4,120 | (18,826) | 15,449 | (35,963) |
Earnings before income taxes | 430,951 | 364,884 | 1,323,528 | 1,363,068 |
Income taxes | (9,132) | 34,799 | 185,023 | 381,230 |
Net earnings | $ 440,083 | $ 330,085 | $ 1,138,505 | $ 981,838 |
Net earnings: | ||||
Basic earnings per share (in dollars per share) | $ 0.86 | $ 0.63 | $ 2.20 | $ 1.88 |
Diluted earnings per share (in dollars per share) | $ 0.85 | $ 0.63 | $ 2.17 | $ 1.85 |
Average shares outstanding (in shares) | 514,185,453 | 521,832,671 | 517,637,952 | 523,468,845 |
Diluted shares outstanding (in shares) | 519,821,311 | 527,990,563 | 524,487,510 | 529,434,527 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Net earnings | $ 440,083 | $ 330,085 | $ 1,138,505 | $ 981,838 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 37,471 | 72,010 | (88,989) | 212,594 |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,155 | 6,465 | ||
Amortization of cash flow hedges | 2,155 | 2,155 | 6,465 | 6,080 |
Change in net investment hedges | (9,466) | 25,591 | ||
Change in cash flow hedges | 1,546 | (10,246) | ||
Amortization of prior service cost | 1,600 | 1,807 | 4,800 | 5,098 |
Amortization of actuarial loss | 6,529 | 6,571 | 19,587 | 18,539 |
Actuarial loss | 0 | 0 | (32,511) | 0 |
Change in marketable securities | 1,103 | 0 | 1,103 | 0 |
Total other comprehensive income (loss) | 40,938 | 40,544 | (74,200) | 187,253 |
Comprehensive income | 481,021 | 370,629 | 1,064,305 | 1,169,091 |
Cash flow hedging | ||||
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,155 | 6,080 | ||
Changes in derivatives | 1,546 | (10,473) | (10,246) | (7,355) |
Net investment hedging | ||||
Items presented net of tax: | ||||
Changes in derivatives | $ (9,466) | $ (31,526) | $ 25,591 | $ (47,703) |
Changes in Consolidated Shareho
Changes in Consolidated Shareholders' Equity - USD ($) $ in Thousands | Total | Net investment hedging | Cash flow hedging | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossNet investment hedging | Accumulated Other Comprehensive LossCash flow hedging | Treasury Stock |
Beginning balance, shareholders' equity at Jul. 01, 2017 | $ 2,381,516 | $ 765,175 | $ 1,327,366 | $ 9,447,755 | $ (1,262,737) | $ (7,896,043) | ||||
Beginning balance, shareholders' equity (in shares) at Jul. 01, 2017 | 765,174,900 | 235,135,699 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 981,838 | 981,838 | ||||||||
Foreign currency translation adjustment | 212,594 | 212,594 | ||||||||
Amortization of cash flow hedges | 6,080 | $ 6,080 | 6,080 | |||||||
Changes in derivatives | $ (47,703) | (7,355) | $ (47,703) | $ (7,355) | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 23,637 | 23,637 | ||||||||
Change in marketable securities, net of tax | 0 | |||||||||
Dividends declared | (547,782) | (547,782) | ||||||||
Treasury stock purchases | (888,966) | $ (888,966) | ||||||||
Treasury stock purchases (in shares) | 16,416,122 | |||||||||
Increase in ownership interest in subsidiaries | (31,072) | (31,072) | ||||||||
Share-based compensation awards | 268,426 | 30,033 | $ 238,393 | |||||||
Share-based compensation awards (in shares) | (7,132,810) | |||||||||
Ending balance, shareholders' equity at Mar. 31, 2018 | 2,351,213 | $ 765,175 | 1,357,399 | 9,850,739 | (1,075,484) | $ (8,546,616) | ||||
Ending balance, shareholders' equity (in shares) at Mar. 31, 2018 | 765,174,900 | 244,419,011 | ||||||||
Beginning balance, shareholders' equity at Dec. 30, 2017 | 2,268,602 | $ 765,175 | 1,361,470 | 9,708,263 | (1,116,028) | $ (8,450,278) | ||||
Beginning balance, shareholders' equity (in shares) at Dec. 30, 2017 | 765,174,900 | 243,764,879 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 330,085 | 330,085 | ||||||||
Foreign currency translation adjustment | 72,010 | 72,010 | ||||||||
Amortization of cash flow hedges | 2,155 | 2,155 | 2,155 | |||||||
Changes in derivatives | (31,526) | (10,473) | (31,526) | (10,473) | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 8,378 | 8,378 | ||||||||
Change in marketable securities, net of tax | 0 | |||||||||
Dividends declared | (187,609) | (187,609) | ||||||||
Treasury stock purchases | (162,434) | $ (162,434) | ||||||||
Treasury stock purchases (in shares) | 2,686,585 | |||||||||
Share-based compensation awards | 62,025 | (4,071) | $ 66,096 | |||||||
Share-based compensation awards (in shares) | (2,032,453) | |||||||||
Ending balance, shareholders' equity at Mar. 31, 2018 | 2,351,213 | $ 765,175 | 1,357,399 | 9,850,739 | (1,075,484) | $ (8,546,616) | ||||
Ending balance, shareholders' equity (in shares) at Mar. 31, 2018 | 765,174,900 | 244,419,011 | ||||||||
Beginning balance, shareholders' equity at Jun. 30, 2018 | 2,506,957 | $ 765,175 | 1,383,619 | 10,348,628 | (1,409,269) | $ (8,581,196) | ||||
Beginning balance, shareholders' equity (in shares) at Jun. 30, 2018 | 765,174,900 | 244,533,248 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 1,138,505 | 1,138,505 | ||||||||
Foreign currency translation adjustment | (88,989) | (88,989) | ||||||||
Amortization of cash flow hedges | 6,465 | 6,465 | ||||||||
Changes in derivatives | 25,591 | (10,246) | 25,591 | (10,246) | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 24,387 | 24,387 | ||||||||
Pension funded status adjustment, net of tax | (32,511) | (32,511) | ||||||||
Change in marketable securities, net of tax | 1,103 | 1,103 | ||||||||
Dividends declared | (593,485) | (593,485) | ||||||||
Treasury stock purchases | (868,527) | $ (868,527) | ||||||||
Treasury stock purchases (in shares) | 12,850,437 | |||||||||
Increase in ownership interest in subsidiaries | (54,877) | (54,877) | ||||||||
Share-based compensation awards | 307,524 | 96,337 | $ 211,187 | |||||||
Share-based compensation awards (in shares) | (6,054,223) | |||||||||
Ending balance, shareholders' equity at Mar. 30, 2019 | 2,361,897 | $ 765,175 | 1,425,079 | 10,893,648 | (1,483,469) | $ (9,238,536) | ||||
Ending balance, shareholders' equity (in shares) at Mar. 30, 2019 | 765,174,900 | 251,329,462 | ||||||||
Beginning balance, shareholders' equity at Dec. 29, 2018 | 2,167,636 | $ 765,175 | 1,465,461 | 10,654,711 | (1,524,407) | $ (9,193,304) | ||||
Beginning balance, shareholders' equity (in shares) at Dec. 29, 2018 | 765,174,900 | 251,658,719 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 440,083 | 440,083 | ||||||||
Foreign currency translation adjustment | 37,471 | 37,471 | ||||||||
Amortization of cash flow hedges | 2,155 | 2,155 | ||||||||
Changes in derivatives | $ (9,466) | $ 1,546 | $ (9,466) | $ 1,546 | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 8,129 | 8,129 | ||||||||
Change in marketable securities, net of tax | 1,103 | 1,103 | ||||||||
Dividends declared | (201,146) | (201,146) | ||||||||
Treasury stock purchases | (118,524) | $ (118,524) | ||||||||
Treasury stock purchases (in shares) | 1,835,170 | |||||||||
Increase in ownership interest in subsidiaries | (54,877) | (54,877) | ||||||||
Share-based compensation awards | 87,787 | 14,495 | $ 73,292 | |||||||
Share-based compensation awards (in shares) | (2,164,427) | |||||||||
Ending balance, shareholders' equity at Mar. 30, 2019 | $ 2,361,897 | $ 765,175 | $ 1,425,079 | $ 10,893,648 | $ (1,483,469) | $ (9,238,536) | ||||
Ending balance, shareholders' equity (in shares) at Mar. 30, 2019 | 765,174,900 | 251,329,462 |
Consolidated Cash Flows (Unaudi
Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,138,505 | $ 981,838 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Share-based compensation expense | 78,110 | 72,742 |
Depreciation and amortization | 576,596 | 563,732 |
Amortization of debt issuance and other debt-related costs | 16,244 | 21,095 |
Loss on extinguishment of debt | 0 | 53,104 |
Deferred income taxes | (98,206) | 142,242 |
Provision for losses on receivables | 43,791 | 32,387 |
Other non-cash items | (7,677) | 3,325 |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
(Increase) in receivables | (317,627) | (157,355) |
(Increase) in inventories | (231,732) | (202,779) |
(Increase) in prepaid expenses and other current assets | (20,823) | (27,301) |
Increase in accounts payable | 231,213 | 111,888 |
Increase (decrease) in accrued expenses | 62,518 | (65,993) |
(Decrease) in accrued income taxes | (41,813) | (100,131) |
(Increase) in other assets | (14,819) | (49,923) |
(Decrease) in other long-term liabilities | (49,055) | (257,936) |
Net cash provided by operating activities | 1,365,225 | 1,120,935 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (382,905) | (372,612) |
Proceeds from sales of plant and equipment | 16,383 | 16,910 |
Acquisition of businesses, net of cash acquired | (97,530) | (203,608) |
Purchase of marketable securities | (115,807) | 0 |
Other investing activities | 0 | 3,252 |
Net cash (used for) investing activities | (579,859) | (556,058) |
Cash flows from financing activities: | ||
Bank and commercial paper borrowings, net | 200,000 | 638,300 |
Other debt borrowings | 389,681 | 1,005,490 |
Other debt repayments | (278,234) | (538,967) |
Tender and redemption premiums for senior notes | 0 | (281,762) |
Proceeds from stock option exercises | 211,174 | 238,392 |
Treasury stock purchases | (866,714) | (910,966) |
Dividends paid | (575,059) | (534,741) |
Other financing activities | (20,663) | (27,745) |
Net cash (used for) financing activities | (939,815) | (411,999) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (11,619) | 24,745 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (166,068) | 177,623 |
Cash, cash equivalents and restricted cash at beginning of period | 715,844 | 869,502 |
Cash, cash equivalents and restricted cash at end of period | 549,776 | 1,047,125 |
Cash paid during the period for: | ||
Interest | 252,377 | 226,882 |
Income taxes | $ 379,728 | $ 218,059 |
Changes in Consolidated Share_2
Changes in Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.39 | $ 0.36 | $ 1.14 | $ 1.05 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The consolidated financial statements have been prepared by the company, without audit, with the exception of the June 30, 2018 consolidated balance sheet, which was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (our 2018 Form 10-K). 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 2018 Form 10-K. 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 Within the Consolidated Statement of Cash Flows, certain prior year items have been grouped as other investing activities. These primarily include proceeds from the settlement of corporate-owned life insurance policies, which have been reclassified to conform with the current year presentation in accordance with new accounting standards related to the presentation of cash flows as described in Note 2 , “Changes in Accounting” . The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: Mar. 30, 2019 Mar. 31, 2018 (In thousands) Cash and cash equivalents $ 521,621 $ 901,551 Restricted cash (1) 28,155 145,574 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 549,776 $ 1,047,125 (1) |
Changes in Accounting
Changes in Accounting | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting | CHANGES IN ACCOUNTING Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the period ended March 30, 2019 . Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments , to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Businesses Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for the period ended March 30, 2019 . Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits ( Topic 715 ): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $8.9 million in the third quarter of fiscal 2019 and net cost of $26.7 million for the first 39 weeks of fiscal 2019 being reported in Other expense (income), net that would have previously been included in Operating expenses. The ASU was applied retrospectively, resulting in a net benefit of $3.7 million for the third quarter of fiscal 2018 and a net benefit of $11.2 million for the first 39 weeks of fiscal 2018 |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco. To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company has substantially completed the process of gathering lease data and reviewing its lease portfolio and is in the process of completing an impact assessment with respect to the adoption of the provisions of the new standard. To facilitate this ongoing process, the company is currently implementing a third-party lease accounting software. The company will finalize its assessment in the fourth quarter of fiscal 2019 and adopt this standard on June 30, 2019, the first day of fiscal 2020. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years-and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract |
Revenue
Revenue | 9 Months Ended |
Mar. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Adoption of ASC Topic 606, “Revenues from Contracts with Customers” On July 1, 2018, Sysco adopted ASC Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under ASC Topic 605, Revenue Recognition. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for the quarter and 39 weeks ended March 30, 2019 as a result of applying ASC Topic 606. Revenue Recognition The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and therefore, not assessed as performance obligations. Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses. Product Sales Revenues Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment. Contract Balances After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $4.1 billion and $3.8 billion as of March 30, 2019 and June 30, 2018 , respectively. Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other Assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of March 30, 2019 , Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. Disaggregation of Sales The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 13-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,035,201 $ 389,126 $ 386,074 $ — $ 2,810,401 Canned and dry products 1,812,070 554,653 69,730 — 2,436,453 Frozen fruits, vegetables, bakery and other 1,408,601 500,999 300,725 — 2,210,325 Dairy products 1,030,209 304,315 145,460 — 1,479,984 Poultry 1,013,513 195,816 200,518 — 1,409,847 Fresh produce 936,972 245,436 56,847 — 1,239,255 Paper and disposables 686,732 88,400 178,465 14,287 967,884 Seafood 624,953 166,103 32,959 — 824,015 Beverage products 277,421 129,366 136,876 19,787 563,450 Other (1) 279,611 183,677 29,658 223,514 716,460 Total Sales $ 10,105,283 $ 2,757,891 $ 1,537,312 $ 257,588 $ 14,658,074 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 13-Week Period Ended Mar. 31, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 1,964,633 $ 403,684 $ 376,554 $ — $ 2,744,871 Canned and dry products 1,759,588 577,363 78,810 — 2,415,761 Frozen fruits, vegetables, bakery and other 1,325,252 618,684 296,774 — 2,240,710 Dairy products 1,016,360 314,272 151,835 — 1,482,467 Poultry 956,664 201,133 269,142 — 1,426,939 Fresh produce 878,802 248,261 59,016 — 1,186,079 Paper and disposables 646,278 95,295 181,112 13,804 936,489 Seafood 610,291 170,210 30,010 — 810,511 Beverage products 273,849 45,938 141,137 19,682 480,606 Other (1) 272,778 124,411 21,363 206,519 625,071 Total Sales $ 9,704,495 $ 2,799,251 $ 1,605,753 $ 240,005 $ 14,349,504 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 6,241,367 $ 1,218,668 $ 1,132,476 $ — $ 8,592,511 Canned and dry products 5,463,772 1,777,733 214,070 — 7,455,575 Frozen fruits, vegetables, bakery and other 4,249,051 1,483,735 907,718 — 6,640,504 Dairy products 3,158,050 929,025 448,369 — 4,535,444 Poultry 3,042,028 620,940 681,253 — 4,344,221 Fresh produce 2,802,548 825,000 178,745 — 3,806,293 Paper and disposables 2,079,381 280,315 548,977 44,871 2,953,544 Seafood 1,868,294 550,953 81,795 — 2,501,042 Beverage products 839,173 342,753 420,414 63,389 1,665,729 Other (1) 848,135 540,317 81,559 674,186 2,144,197 Total Sales $ 30,591,799 $ 8,569,439 $ 4,695,376 $ 782,446 $ 44,639,060 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Mar. 31, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 5,971,490 $ 1,250,050 $ 1,138,404 $ — $ 8,359,944 Canned and dry products 5,241,179 1,750,597 245,569 — 7,237,345 Frozen fruits, vegetables, bakery and other 3,908,210 1,890,105 858,500 — 6,656,815 Poultry 3,000,575 621,150 843,861 — 4,465,586 Dairy products 3,053,156 938,288 480,894 — 4,472,338 Fresh produce 2,705,538 770,590 188,508 — 3,664,636 Paper and disposables 1,940,107 297,663 546,146 42,639 2,826,555 Seafood 1,786,608 535,874 74,894 — 2,397,376 Beverage products 815,081 145,816 426,401 62,134 1,449,432 Other (1) 812,718 371,416 76,392 620,865 1,881,391 Total Sales $ 29,234,662 $ 8,571,549 $ 4,879,569 $ 725,638 $ 43,411,418 (1) |
Acquisitions
Acquisitions | 9 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the first 39 weeks of fiscal 2019 , the company paid cash of $97.5 million for acquisitions. These acquisitions did not have a material effect on the company’s operating results, cash flows or financial position. Certain acquisitions involve contingent consideration that may include earnout agreements that are typically payable over periods of up to three years in the event that certain operating results are achieved. As of March 30, 2019 , aggregate contingent consideration outstanding was $19.4 million , of which $14.2 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 measurement. In the third quarter of fiscal 2019, Sysco consummated the acquisition of the remaining 23% interest in Iowa Premium, LLC, making the previously consolidated entity a wholly-owned subsidiary. The transaction resulted in a reduction of Sysco’s non-controlling interest within Other long-term liabilities and a reduction in Paid-in capital on the consolidated balance sheet for the period ended March 30, 2019 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and • Level 3 – Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk. Sysco’s policy is to invest in only high-quality investments. Cash equivalents primarily include cash deposits, time deposits, certificates of deposit, commercial paper, high-quality money market funds and all highly liquid instruments with original maturities of three months or less. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value: • Cash deposits included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 1 measurement in the tables below. • Time deposits and commercial paper included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 2 measurement in the tables below. • Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents as Level 1 measurements in the tables below. • Fixed income securities are valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. • The interest rate swap agreements are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. • The foreign currency swap agreements, including cross-currency swaps, are valued using a swap valuation model that utilizes an income approach applying observable market inputs including interest rates, LIBOR swap rates for U.S. dollars, Canadian dollars, pound sterling and euro currencies, and credit default swap rates. • Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments. • Fuel swap contracts are valued based on observable market transactions of forward commodity prices. The fair value of the company’s marketable securities are all measured using inputs that are considered a Level 2 measurement, as they are actively traded and are valued using quoted market prices in active markets. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 7 , "Marketable Securities." The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 8 , “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of March 30, 2019 , June 30, 2018 and March 31, 2018 : Assets and Liabilities Measured at Fair Value as of Mar. 30, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 105,717 $ 200 $ — $ 105,917 Other assets (1) 28,155 — — 28,155 Total assets at fair value $ 133,872 $ 200 $ — $ 134,072 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 169,214 $ 30,190 $ — $ 199,404 Other assets (1) 163,519 — — 163,519 Total assets at fair value $ 332,733 $ 30,190 $ — $ 362,923 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities Measured at Fair Value as of Mar. 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 384,528 $ 49,190 $ — $ 433,718 Prepaid expenses and other current assets (1) 43,364 — — 43,364 Other assets (1) 102,211 — — 102,211 Total assets at fair value $ 530,103 $ 49,190 $ — $ 579,293 (1) Represents restricted cash balances recorded within other current assets and other assets in the consolidated balance sheet. The carrying values of accounts receivable and accounts payable approximated their respective fair values due to their short-term maturities. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the company for new debt with the same maturities as existing debt, and is considered a Level 2 measurement. The fair value of total debt was approximately $8.9 billion , $8.4 billion and $9.3 billion as of March 30, 2019 , June 30, 2018 and March 31, 2018 , respectively. The carrying value of total debt was $8.7 billion , $8.3 billion and $9.1 billion as of March 30, 2019 , June 30, 2018 and March 31, 2018 |
Marketable Securities
Marketable Securities | 9 Months Ended |
Mar. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES In March 2019, Sysco began to invest a portion of the assets held by its wholly-owned captive insurance subsidiary in a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale. The company includes fixed income securities maturing in less than twelve months within Prepaid expenses and other current assets and includes fixed income securities maturing in more than twelve months within Other assets in the accompanying Consolidated Balance Sheets. The company records the amounts at fair market value, which is determined using quoted market prices at the end of the reporting period. Unrealized gains and losses on marketable securities are recorded in Accumulated other comprehensive loss. The following table presents the company’s available-for-sale marketable securities as of March 30, 2019 : March 30, 2019 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-Term Marketable Securities Long-Term Marketable Securities (in thousands) Fixed income securities: Corporate bonds $ 86,843 $ 563 $ (15 ) $ 87,391 $ 8,990 $ 78,401 Government bonds 28,964 848 — 29,812 — 29,812 Total marketable securities $ 115,807 $ 1,411 $ (15 ) $ 117,203 $ 8,990 $ 108,213 The fixed income securities held at March 30, 2019 had effective maturities ranging from less than one year to approximately ten years . The company did not realize any gains or losses on its marketable securities during the third quarter of fiscal 2019 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Sysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk. Hedging of interest rate risk Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In December 2018, the company entered into an interest rate swap agreement that effectively converted €500.0 million of fixed rate debt maturing in 2023 to floating rate debt. Hedging of foreign currency risk Sysco enters into cross-currency swap contracts to hedge the foreign currency transaction risk of certain intercompany loans. There are no credit-risk related contingent features associated with these swaps, which have been designated as cash flow hedges. The company also uses cross-currency swap contracts and euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, U.S. dollar, Polish zloty and Danish krone. These inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. The company enters into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases. Hedging of fuel price risk Sysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel on anticipated future purchases. These swaps have been designated as cash flow hedges. None of the company’s hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of March 30, 2019 are below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk April 2019 U.S. Dollar 500 October 2020 U.S. Dollar 750 July 2021 U.S. Dollar 500 June 2023 Euro 500 March 2025 U.S. Dollar 500 Hedging of foreign currency risk Various (April 2019 to August 2019) Swedish Krona 321 Various (April 2019 to December 2019) British Pound Sterling 21 Various (April 2019 to December 2019) U.S. Dollar 1 June 2021 Canadian Dollar 300 July 2021 British Pound Sterling 234 August 2021 British Pound Sterling 466 June 2023 Euro 500 Hedging of fuel risk Various (March 31, 2019 to May 2020) Gallons 57 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of March 30, 2019 , June 30, 2018 and March 31, 2018 are as follows: Derivative Fair Value Balance Sheet location Mar. 30, 2019 Jun. 30, 2018 Mar. 31, 2018 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 18,627 $ — $ 1,800 Interest rate swaps Other current liabilities 50 6,820 — Interest rate swaps Other long-term liabilities 22,461 49,734 49,256 Cash Flow Hedges: Fuel Swaps Other current assets $ 1,025 $ 15,316 $ 12,381 Foreign currency forwards Other current assets 192 693 533 Fuel swaps Other assets 397 — — Cross currency swaps Other current assets — 4,284 — Cross currency swaps Other assets 5,464 3,454 — Fuel Swaps Other current liabilities 5,352 — — Foreign currency forwards Other current liabilities 945 71 88 Fuel swaps Other long-term liabilities 85 — — Cross currency swaps Other long-term liabilities 5,465 14,201 34,690 Net Investment Hedges: Foreign currency swaps Other assets $ — $ 10,709 $ 7,946 Foreign currency swaps Other long-term liabilities 13,592 39,690 71,784 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 Mar. 30, 2019 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 11,903,776 $ 2,224,713 $ 94,514 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (41,657 ) Derivatives designated as hedging instruments — — 18,865 (1) The hedged total includes interest expense of $17.1 million and change in fair value of debt of $24.6 million . 13-Week Period Ended Mar. 31, 2018 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 11,673,876 $ 2,193,425 $ 136,145 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ 419 Derivatives designated as hedging instruments — — (15,740 ) (1) The hedged total includes interest expense of $13.6 million and change in fair value of debt of $14.1 million . 39-Week Period Ended Mar. 30, 2019 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 36,209,265 $ 6,820,175 $ 270,643 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (97,164 ) Derivatives designated as hedging instruments — — 39,556 (1) The hedged total includes interest expense of $47.8 million and change in fair value of debt of $49.3 million . 39-Week Period Ended Mar. 31, 2018 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 35,242,736 $ 6,538,562 $ 303,015 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (22,325 ) Derivatives designated as hedging instruments — — (26,729 ) (1) The hedged total includes interest expense of $47.8 million and change in fair value of debt of $25.5 million . The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13 -week periods ended March 30, 2019 and March 31, 2018 , presented on a pretax basis, are as follows: 13-Week Period Ended Mar. 30, 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ 16,276 Operating expense $ (961 ) Foreign currency contracts (14,244 ) Cost of goods sold 14 Total $ 2,032 $ (947 ) Derivatives in net investment hedging relationships: Foreign currency contracts $ (15,387 ) N/A $ — Foreign denominated debt 10,550 N/A — Total $ (4,837 ) $ — 13-Week Period Ended Mar. 31, 2018 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (1,195 ) Operating expense $ 4,438 Foreign currency contracts (12,875 ) Cost of goods sold 348 Total $ (14,070 ) $ 4,786 Derivatives in net investment hedging relationships: Foreign currency contracts $ (24,420 ) N/A $ — Foreign denominated debt (16,400 ) N/A — Total $ (40,820 ) $ — The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39 -week periods ended March 30, 2019 and March 31, 2018 , presented on a pretax basis, are as follows: 39-Week Period Ended Mar. 30, 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (19,541 ) Operating expense $ 8,432 Foreign currency contracts 6,416 Cost of goods sold 505 Total $ (13,125 ) $ 8,937 Derivatives in net investment hedging relationships: Foreign currency contracts $ 18,984 N/A $ — Foreign denominated debt 22,650 N/A — Total $ 41,634 $ — 39-Week Period Ended Mar. 31, 2018 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ 18,855 Operating expense $ 5,679 Foreign currency contracts (27,450 ) Cost of goods sold 1,178 Total $ (8,595 ) $ 6,857 Derivatives in net investment hedging relationships: Foreign currency contracts $ (56,580 ) N/A $ — Foreign denominated debt (45,000 ) N/A — Total $ (101,580 ) $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 30, 2019 are as follows: Mar. 30, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (499,997 ) $ 58 Long-term debt (2,311,161 ) 3,264 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 30, 2018 are as follows: Jun. 30, 2018 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (499,610 ) $ 5,097 Long-term debt (1,743,732 ) 47,555 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 31, 2018 are as follows: Mar. 31, 2018 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,242,904 ) $ 45,030 |
Debt
Debt | 9 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion . As of March 30, 2019 , there was $200.0 million in commercial paper issuances outstanding. Any outstanding amounts are classified within long-term debt, as the program is supported by a long-term revolving credit facility. During the first 39 weeks of fiscal 2019 , aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from zero to approximately $669.0 million . In March 2019, Sysco repaid 5.375% senior notes totaling $250 million at maturity utilizing a combination of cash flow from operations and commercial paper issuances. Senior notes offering On September 25, 2018, Sysco’s wholly-owned subsidiary, Sysco Canada Inc. (Sysco Canada), issued senior notes totaling CDN $500.0 million . The senior notes were issued in Canada with a coupon rate of 3.65% and pricing, as a percentage of par, of 99.962% . Net proceeds from the offering were used to repay internal debt that was created in fiscal 2018 when the company repatriated earnings from its Canadian operations back to Sysco Corporation, and to repay outstanding borrowings under Sysco’s commercial paper program, along with other general corporate purposes. Interest on the senior notes will be paid semi-annually on April 25 and October 25, beginning April 25, 2019. At Sysco Canada’s option, any or all of the senior notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco Canada elects to redeem the senior notes before the date that is two months prior to the maturity date, Sysco Canada will pay an amount equal to the greater of (1) 100% of the principal amount of the senior notes to be redeemed; or (2) the applicable yield price, plus in either case, any accrued and unpaid interest on the senior notes to be redeemed to the date of redemption. If Sysco Canada elects to redeem a series of senior notes on or after the applicable date described in the preceding sentence, Sysco Canada will pay an amount equal to 100% |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share, Basic [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: 13-Week Period Ended 39-Week Period Ended Mar. 30, 2019 Mar. 31, 2018 Mar. 30, 2019 Mar. 31, 2018 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 440,083 $ 330,085 $ 1,138,505 $ 981,838 Denominator: Weighted-average basic shares outstanding 514,185,453 521,832,671 517,637,952 523,468,845 Dilutive effect of share-based awards 5,635,858 6,157,892 6,849,558 5,965,682 Weighted-average diluted shares outstanding 519,821,311 527,990,563 524,487,510 529,434,527 Basic earnings per share $ 0.86 $ 0.63 $ 2.20 $ 1.88 Diluted earnings per share $ 0.85 $ 0.63 $ 2.17 $ 1.85 The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,583,000 and 25,000 for the third quarter of fiscal 2019 and fiscal 2018 , respectively. The number of options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,260,000 and 3,071,000 for the first 39 weeks of fiscal 2019 and fiscal 2018 |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Mar. 30, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, amounts related to cash flow hedging arrangements, certain amounts related to pension and other postretirement plans and changes in marketable securities. Comprehensive income was $481.0 million and $370.6 million for the third quarter of fiscal 2019 and fiscal 2018 , respectively. Comprehensive income was $1.1 billion and $1.2 billion for the first 39 weeks of fiscal 2019 and fiscal 2018 , respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Mar. 30, 2019 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 2,133 $ 533 $ 1,600 Amortization of actuarial loss, net Other expense, net 8,706 2,177 6,529 Total reclassification adjustments 10,839 2,710 8,129 Foreign currency translation: Foreign currency translation adjustment N/A 37,471 — 37,471 Marketable securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 2,032 486 1,546 Change in net investment hedges N/A (4,837 ) 4,629 (9,466 ) Total other comprehensive income (loss) before reclassification adjustments (2,805 ) 5,115 (7,920 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income $ 49,774 $ 8,836 $ 40,938 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Mar. 31, 2018 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 2,409 $ 602 $ 1,807 Amortization of actuarial loss, net Other expense, net 8,761 2,190 6,571 Total reclassification adjustments 11,170 2,792 8,378 Foreign currency translation: Foreign currency translation adjustment N/A 72,010 — 72,010 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (14,070 ) (3,597 ) (10,473 ) Change in net investment hedges N/A (40,820 ) (9,294 ) (31,526 ) Total other comprehensive income (loss) before reclassification adjustments (54,890 ) (12,891 ) (41,999 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income (loss) $ 31,163 $ (9,381 ) $ 40,544 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 30, 2019 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial loss $ (36,891 ) $ (4,380 ) $ (32,511 ) Reclassification adjustments: Amortization of prior service cost Other expense, net 6,399 1,599 4,800 Amortization of actuarial loss, net Other expense, net 26,118 6,531 19,587 Total reclassification adjustments 32,517 8,130 24,387 Foreign currency translation: Other comprehensive income (loss) before reclassification adjustments: Foreign currency translation adjustment N/A (88,989 ) — (88,989 ) Marketable securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (13,125 ) (2,879 ) (10,246 ) Change in net investment hedges N/A 41,634 16,043 25,591 Total other comprehensive income (loss) before reclassification adjustments 28,509 13,164 15,345 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,619 2,154 6,465 Total other comprehensive income $ (54,839 ) $ 19,361 $ (74,200 ) (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 31, 2018 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 7,227 $ 2,129 $ 5,098 Amortization of actuarial loss, net Other expense, net 26,283 7,744 18,539 Total reclassification adjustments 33,510 9,873 23,637 Foreign currency translation: Foreign currency translation adjustment N/A 212,594 — 212,594 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (7,720 ) (365 ) (7,355 ) Change in net investment hedges N/A (70,739 ) (23,036 ) (47,703 ) Total other comprehensive income (loss) before reclassification adjustments (78,459 ) (23,401 ) (55,058 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,619 2,539 6,080 Total other comprehensive income (loss) $ 176,264 $ (10,989 ) $ 187,253 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented: 39-Week Period Ended Mar. 30, 2019 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, net of tax Total (In thousands) Balance as of Jun. 30, 2018 $ (1,095,059 ) $ (171,043 ) $ (143,167 ) $ — $ (1,409,269 ) Equity adjustment from foreign currency translation — (88,989 ) — — (88,989 ) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 25,591 — 25,591 Change in cash flow hedge — — (10,246 ) — (10,246 ) Net actuarial loss (32,511 ) — — — (32,511 ) Amortization of unrecognized prior service cost 4,800 — — — 4,800 Amortization of unrecognized net actuarial losses 19,587 — — — 19,587 Change in marketable securities — — — 1,103 1,103 Balance as of Mar. 30, 2019 $ (1,103,183 ) $ (260,032 ) $ (121,357 ) $ 1,103 $ (1,483,469 ) 39-Week Period Ended Mar. 31, 2018 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Total (In thousands) Balance as of Jul. 1, 2017 $ (974,232 ) $ (148,056 ) $ (140,449 ) $ (1,262,737 ) Equity adjustment from foreign currency translation — 212,594 — 212,594 Amortization of cash flow hedges — — 6,080 6,080 Change in net investment hedges — — (47,703 ) (47,703 ) Change in cash flow hedges — — (7,355 ) (7,355 ) Amortization of unrecognized prior service cost 5,098 — — 5,098 Amortization of unrecognized net actuarial losses 18,539 — — 18,539 Balance as of Mar. 31, 2018 $ (950,595 ) $ 64,538 $ (189,427 ) $ (1,075,484 ) |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Mar. 30, 2019 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP). Stock Incentive Plans In the first 39 weeks of fiscal 2019 , options to purchase 2,609,755 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant-date fair value per option granted during the first 39 weeks of fiscal 2019 was $11.70 . In the first 39 weeks of fiscal 2019 , 578,102 performance share units (PSUs) were granted to employees. Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For PSUs granted without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per performance share unit granted during the first 39 weeks of fiscal 2019 was $74.86 . The PSUs will convert into shares of Sysco common stock at the end of the performance period based on financial performance targets consisting of Sysco’s earnings per share compound annual growth rate and adjusted return on invested capital. In the first 39 weeks of fiscal 2019 , 616,868 restricted stock units were granted to employees. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2019 was $63.91 . Employee Stock Purchase Plan Plan participants purchased 739,051 shares of common stock under the Sysco ESPP during the first 39 weeks of fiscal 2019 . The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $10.22 during the first 39 weeks of fiscal 2019 . The fair value of each stock purchase right is estimated as the difference between the stock price 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 $78.1 million and $72.7 million for the first 39 weeks of fiscal 2019 and fiscal 2018 , respectively. As of March 30, 2019 , there was $141.9 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 1.98 years |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Effective Tax Rate The effective tax rates for the third quarter and first 39 weeks of fiscal 2019 were (2.12)% and 13.98% , respectively. The lower effective tax rates for the third quarter and first 39 weeks of fiscal 2019 are primarily due to (1) Sysco’s determination in the third quarter of fiscal 2019 to recognize the favorable impact of $95.1 million of foreign tax credits generated as a result of distributions to Sysco from our foreign operations at the end of fiscal 2018, which fully offset our transition tax liability, (2) lower U.S. tax rates from the Tax Cuts and Jobs Act (Tax Act), which were not yet fully applicable as of the third quarter of fiscal 2018, and (3) the favorable impact of excess tax benefits of equity-based compensation that totaled $11.3 million and $33.2 million for the third quarter and first 39 weeks of fiscal 2019 , respectively. These reductions were partially offset by additional U.S. federal tax as a result of the global intangible low taxed income (GILTI) regime, which the company is accounting for as a periodic cost. The effective tax rate for the third quarter of fiscal 2018 of 9.54% and the first 39 weeks of fiscal 2018 of 27.97% reflects the favorable impact of (1) a net tax benefit attributable to the change in the federal statutory tax rate as a result of the Tax Act, (2) the tax benefit of $44.4 million attributable to a contribution to the U.S. Retirement Plan, and (3) excess tax benefits of equity-based compensation that totaled $14.9 million and $45.7 million for the third quarter and first 39 weeks of fiscal 2018, respectively. An additional factor that impacted the effective tax rate for the first 39 weeks of fiscal 2018 was the favorable impact of changes in tax law in various foreign jurisdictions of $8.1 million. These benefits were partially offset by the negative impacts of the transition tax resulting from the Tax Act. In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Job Act, the company recognized the provisional impacts related to re-measurement of deferred tax assets and liabilities and the one-time transition tax in its results for the annual period ended June 30, 2018. In the second quarter of fiscal 2019 , the company completed its accounting for all aspects of the Tax Act, with a corresponding adjustment of $15.1 million to income tax expense related to transition tax, and a benefit of $3.2 million attributable to realizability of certain deferred tax assets. Uncertain Tax Positions As of March 30, 2019 , the gross amount of unrecognized tax benefit and related accrued interest was $26.6 million and $4.6 million , respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months. At this time, an estimate of the range of the reasonably possible change cannot be made. Other |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings |
Business Segment Information
Business Segment Information | 9 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The company has aggregated certain of its operating segments into three reportable segments. “Other” financial information is attributable to the company’s other operating segments that do not meet the quantitative disclosure thresholds. • U.S. Foodservice Operations - primarily includes U.S. Broadline operations, which distribute a full line of food products including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products; • International Foodservice Operations - includes operations in the Americas and Europe, which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden; • SYGMA - our U.S. customized distribution subsidiary; and • Other - primarily our hotel supply operations and Sysco Labs, which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These expenses also include all share-based compensation costs. The following tables set forth certain financial information for Sysco’s reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07. 13-Week Period Ended 39-Week Period Ended Mar. 30, 2019 Mar. 31, 2018 Mar. 30, 2019 Mar. 31, 2018 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 10,105,283 $ 9,704,495 $ 30,591,799 $ 29,234,662 International Foodservice Operations 2,757,891 2,799,251 8,569,439 8,571,549 SYGMA 1,537,312 1,605,753 4,695,376 4,879,569 Other 257,588 240,005 782,446 725,638 Total $ 14,658,074 $ 14,349,504 $ 44,639,060 $ 43,411,418 13-Week Period Ended 39-Week Period Ended Mar. 30, 2019 Mar. 31, 2018 Mar. 30, 2019 Mar. 31, 2018 Operating income: (In thousands) (In thousands) U.S. Foodservice Operations $ 765,425 $ 696,671 $ 2,318,660 $ 2,186,327 International Foodservice Operations 10,145 19,476 62,000 148,874 SYGMA 11,668 4,477 17,213 12,675 Other 6,376 8,962 22,429 22,072 Total segments 793,614 729,586 2,420,302 2,369,948 Corporate (264,029 ) (247,383 ) (810,682 ) (739,828 ) Total operating income 529,585 482,203 1,609,620 1,630,120 Interest expense 94,514 136,145 270,643 303,015 Other expense (income), net 4,120 (18,826 ) 15,449 (35,963 ) Earnings before income taxes $ 430,951 $ 364,884 $ 1,323,528 $ 1,363,068 |
Supplemental Guarantor Informat
Supplemental Guarantor Information - Subsidiary Guarantees | 9 Months Ended |
Mar. 30, 2019 | |
Guarantees [Abstract] | |
Supplemental Guarantor Information - Subsidiary Guarantees | SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES On January 19, 2011, the wholly owned U.S. Broadline subsidiaries of Sysco Corporation at that time entered into full and unconditional guarantees of all outstanding senior notes and debentures of Sysco Corporation. All subsequent issuances of senior notes and debentures in the U.S. have also been guaranteed by these subsidiaries. As of March 30, 2019 , Sysco had a total of $8.3 billion in senior notes and debentures that was covered by these guarantees. All subsidiary guarantors are 100% owned by the parent company, all guarantees are full and unconditional and all guarantees are joint and several, except that the guarantee of any subsidiary guarantor with respect to a series of senior notes or debentures may be released under certain customary circumstances. If we exercise our defeasance option with respect to the senior notes or debentures of any series, then any subsidiary guarantor effectively will be released with respect to that series. Further, each subsidiary guarantee will remain in full force and effect until the earliest to occur of the date, if any, on which (1) the applicable subsidiary guarantor shall consolidate with or merge into Sysco Corporation or any successor of Sysco Corporation or (2) Sysco Corporation or any successor of Sysco Corporation consolidates with or merges into the applicable subsidiary guarantor. The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (certain of the company’s U.S. Broadline subsidiaries), and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries. Condensed Consolidated Balance Sheet Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 163,070 $ 4,281,687 $ 4,010,792 $ — $ 8,455,549 Intercompany receivables 7,078,153 124,572 1,672,208 (8,874,933 ) — Investment in subsidiaries 6,227,092 — 1,193,850 (7,420,942 ) — Plant and equipment, net 243,519 2,101,630 2,031,910 — 4,377,059 Other assets 755,655 687,844 4,432,595 (507,903 ) 5,368,191 Total assets $ 14,467,489 $ 7,195,733 $ 13,341,355 $ (16,803,778 ) $ 18,200,799 Current liabilities $ 918,395 $ 992,713 $ 4,589,050 $ — $ 6,500,158 Intercompany payables 2,917,036 2,753,120 3,204,777 (8,874,933 ) — Long-term debt 7,697,302 8,621 428,538 — 8,134,461 Other liabilities 572,859 525,069 579,198 (507,903 ) 1,169,223 Noncontrolling interest — — 35,060 — 35,060 Shareholders’ equity 2,361,897 2,916,210 4,504,732 (7,420,942 ) 2,361,897 Total liabilities and shareholders’ equity $ 14,467,489 $ 7,195,733 $ 13,341,355 $ (16,803,778 ) $ 18,200,799 Condensed Consolidated Balance Sheet Jun. 30, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 157,994 $ 4,018,444 $ 3,827,015 $ — $ 8,003,453 Intercompany receivables 6,621,438 270,748 5,793,352 (12,685,538 ) — Investment in subsidiaries 4,896,004 — 983,625 (5,879,629 ) — Plant and equipment, net 278,855 2,181,576 2,061,229 — 4,521,660 Other assets 788,473 611,004 4,593,537 (447,723 ) 5,545,291 Total assets $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Current liabilities $ 1,233,541 $ 886,305 $ 4,468,900 $ — $ 6,588,746 Intercompany payables 882,487 3,798,134 8,004,917 (12,685,538 ) — Long-term debt 7,470,334 8,285 62,146 — 7,540,765 Other liabilities 649,445 508,387 686,178 (447,723 ) 1,396,287 Noncontrolling interest — — 37,649 — 37,649 Shareholders’ equity 2,506,957 1,880,661 3,998,968 (5,879,629 ) 2,506,957 Total liabilities and shareholders’ equity $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Condensed Consolidated Balance Sheet Mar. 31, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 273,948 $ 4,093,321 $ 4,348,602 $ — $ 8,715,871 Intercompany receivables 3,344,142 590,025 — (3,934,167 ) — Investment in subsidiaries 7,771,987 — — (7,771,987 ) — Plant and equipment, net 263,472 2,047,608 2,081,078 — 4,392,158 Other assets 891,242 553,270 4,761,664 (685,063 ) 5,521,113 Total assets $ 12,544,791 $ 7,284,224 $ 11,191,344 $ (12,391,217 ) $ 18,629,142 Current liabilities $ 623,141 $ 3,704,927 $ 1,718,131 $ — $ 6,046,199 Intercompany payables — — 3,934,167 (3,934,167 ) — Long-term debt 8,761,475 6,429 67,252 — 8,835,156 Other liabilities 808,962 531,480 705,286 (685,063 ) 1,360,665 Noncontrolling interest — — 35,909 — 35,909 Shareholders’ equity 2,351,213 3,041,388 4,730,599 (7,771,987 ) 2,351,213 Total liabilities and shareholders’ equity $ 12,544,791 $ 7,284,224 $ 11,191,344 $ (12,391,217 ) $ 18,629,142 Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,135,852 $ 6,098,725 $ (576,503 ) $ 14,658,074 Cost of sales — 7,392,718 5,087,561 (576,503 ) 11,903,776 Gross profit — 1,743,134 1,011,164 — 2,754,298 Operating expenses 206,795 1,025,383 992,535 — 2,224,713 Operating income (loss) (206,795 ) 717,751 18,629 — 529,585 Interest expense (income) (1) 55,925 (43,056 ) 81,645 — 94,514 Other expense (income), net (1,730 ) (80 ) 5,930 — 4,120 Earnings (losses) before income taxes (260,990 ) 760,887 (68,946 ) — 430,951 Income tax (benefit) provision (183,601 ) 188,703 (14,234 ) — (9,132 ) Equity in earnings of subsidiaries 517,472 — 107,865 (625,337 ) — Net earnings 440,083 572,184 53,153 (625,337 ) 440,083 Other comprehensive income (loss) 40,938 — 37,471 (37,471 ) 40,938 Comprehensive income $ 481,021 $ 572,184 $ 90,624 $ (662,808 ) $ 481,021 (1) Interest expense (income) includes $43.1 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 30, 2019 . There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Mar. 31, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 8,762,013 $ 6,078,876 $ (491,385 ) $ 14,349,504 Cost of sales — 7,105,014 5,060,247 (491,385 ) 11,673,876 Gross profit — 1,656,999 1,018,629 — 2,675,628 Operating expenses 192,451 1,002,854 998,120 — 2,193,425 Operating income (loss) (192,451 ) 654,145 20,509 — 482,203 Interest expense (income) (1) 160,334 (28,743 ) 4,554 — 136,145 Other expense (income), net (8,744 ) 612 (10,694 ) — (18,826 ) Earnings (losses) before income taxes (344,041 ) 682,276 26,649 — 364,884 Income tax (benefit) provision (117,286 ) 151,090 995 — 34,799 Equity in earnings of subsidiaries 556,840 — — (556,840 ) — Net earnings 330,085 531,186 25,654 (556,840 ) 330,085 Other comprehensive income (loss) 40,544 — 72,010 (72,010 ) 40,544 Comprehensive income $ 370,629 $ 531,186 $ 97,664 $ (628,850 ) $ 370,629 (1) Interest expense (income) includes $28.7 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 31, 2018 . There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 27,716,772 $ 18,662,548 $ (1,740,260 ) $ 44,639,060 Cost of sales — 22,434,604 15,514,921 (1,740,260 ) 36,209,265 Gross profit — 5,282,168 3,147,627 — 8,429,795 Operating expenses 659,697 3,113,409 3,047,069 — 6,820,175 Operating income (loss) (659,697 ) 2,168,759 100,558 — 1,609,620 Interest expense (income) (1) 160,830 (73,515 ) 183,328 — 270,643 Other expense (income), net 8,642 (220 ) 7,027 — 15,449 Earnings (losses) before income taxes (829,169 ) 2,242,494 (89,797 ) — 1,323,528 Income tax (benefit) provision (350,246 ) 556,107 (20,838 ) — 185,023 Equity in earnings of subsidiaries 1,617,428 — 330,236 (1,947,664 ) — Net earnings 1,138,505 1,686,387 261,277 (1,947,664 ) 1,138,505 Other comprehensive income (loss) (74,200 ) — (88,989 ) 88,989 (74,200 ) Comprehensive income $ 1,064,305 $ 1,686,387 $ 172,288 $ (1,858,675 ) $ 1,064,305 (1) Interest expense (income) includes $73.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 39-Week Period Ended Mar. 31, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 26,537,840 $ 18,368,427 $ (1,494,849 ) $ 43,411,418 Cost of sales — 21,482,727 15,254,858 (1,494,849 ) 35,242,736 Gross profit — 5,055,113 3,113,569 — 8,168,682 Operating expenses 599,300 3,002,446 2,936,816 — 6,538,562 Operating income (loss) (599,300 ) 2,052,667 176,753 — 1,630,120 Interest expense (income) (1) 368,099 (80,048 ) 14,964 — 303,015 Other expense (income), net (27,573 ) 1,466 (9,856 ) — (35,963 ) Earnings (losses) before income taxes (939,826 ) 2,131,249 171,645 — 1,363,068 Income tax (benefit) provision (333,562 ) 663,476 51,316 — 381,230 Equity in earnings of subsidiaries 1,588,102 — — (1,588,102 ) — Net earnings 981,838 1,467,773 120,329 (1,588,102 ) 981,838 Other comprehensive income (loss) 187,253 — 212,594 (212,594 ) 187,253 Comprehensive income $ 1,169,091 $ 1,467,773 $ 332,923 $ (1,800,696 ) $ 1,169,091 (1) Interest expense (income) includes $80.0 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Cash Flows For the 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 976,731 $ 132,990 $ 255,504 $ — $ 1,365,225 Investing activities 349,816 (133,190 ) (293,088 ) (503,397 ) (579,859 ) Financing activities (1,338,077 ) (6,850 ) (98,285 ) 503,397 (939,815 ) Effect of exchange rates on cash — — (11,619 ) — (11,619 ) Net (decrease) in cash, cash equivalents and restricted cash (11,530 ) (7,050 ) (147,488 ) — (166,068 ) Cash, cash equivalents and restricted cash at the beginning of period 29,144 111,843 574,857 — 715,844 Cash, cash equivalents and restricted cash at the end of period $ 17,614 $ 104,793 $ 427,369 $ — $ 549,776 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 39-Week Period Ended Mar. 31, 2018 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 333,522 $ 328,096 $ 459,317 $ — $ 1,120,935 Investing activities (118,952 ) (235,164 ) (349,564 ) 147,622 (556,058 ) Financing activities (227,327 ) (5,609 ) (31,441 ) (147,622 ) (411,999 ) Effect of exchange rates on cash — — 24,745 — 24,745 Net increase (decrease) in cash and cash equivalents (12,757 ) 87,323 103,057 — 177,623 Cash and cash equivalents at the beginning of period 111,576 18,788 739,138 — 869,502 Cash and cash equivalents at the end of period $ 98,819 $ 106,111 $ 842,195 $ — $ 1,047,125 (1) |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards | Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the period ended March 30, 2019 . Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments , to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Businesses Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for the period ended March 30, 2019 . Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits ( Topic 715 ): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $8.9 million in the third quarter of fiscal 2019 and net cost of $26.7 million for the first 39 weeks of fiscal 2019 being reported in Other expense (income), net that would have previously been included in Operating expenses. The ASU was applied retrospectively, resulting in a net benefit of $3.7 million for the third quarter of fiscal 2018 and a net benefit of $11.2 million for the first 39 weeks of fiscal 2018 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco. To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company has substantially completed the process of gathering lease data and reviewing its lease portfolio and is in the process of completing an impact assessment with respect to the adoption of the provisions of the new standard. To facilitate this ongoing process, the company is currently implementing a third-party lease accounting software. The company will finalize its assessment in the fourth quarter of fiscal 2019 and adopt this standard on June 30, 2019, the first day of fiscal 2020. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years-and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: Mar. 30, 2019 Mar. 31, 2018 (In thousands) Cash and cash equivalents $ 521,621 $ 901,551 Restricted cash (1) 28,155 145,574 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 549,776 $ 1,047,125 (1) |
Restrictions on cash and cash equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: Mar. 30, 2019 Mar. 31, 2018 (In thousands) Cash and cash equivalents $ 521,621 $ 901,551 Restricted cash (1) 28,155 145,574 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 549,776 $ 1,047,125 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 13-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,035,201 $ 389,126 $ 386,074 $ — $ 2,810,401 Canned and dry products 1,812,070 554,653 69,730 — 2,436,453 Frozen fruits, vegetables, bakery and other 1,408,601 500,999 300,725 — 2,210,325 Dairy products 1,030,209 304,315 145,460 — 1,479,984 Poultry 1,013,513 195,816 200,518 — 1,409,847 Fresh produce 936,972 245,436 56,847 — 1,239,255 Paper and disposables 686,732 88,400 178,465 14,287 967,884 Seafood 624,953 166,103 32,959 — 824,015 Beverage products 277,421 129,366 136,876 19,787 563,450 Other (1) 279,611 183,677 29,658 223,514 716,460 Total Sales $ 10,105,283 $ 2,757,891 $ 1,537,312 $ 257,588 $ 14,658,074 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 13-Week Period Ended Mar. 31, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 1,964,633 $ 403,684 $ 376,554 $ — $ 2,744,871 Canned and dry products 1,759,588 577,363 78,810 — 2,415,761 Frozen fruits, vegetables, bakery and other 1,325,252 618,684 296,774 — 2,240,710 Dairy products 1,016,360 314,272 151,835 — 1,482,467 Poultry 956,664 201,133 269,142 — 1,426,939 Fresh produce 878,802 248,261 59,016 — 1,186,079 Paper and disposables 646,278 95,295 181,112 13,804 936,489 Seafood 610,291 170,210 30,010 — 810,511 Beverage products 273,849 45,938 141,137 19,682 480,606 Other (1) 272,778 124,411 21,363 206,519 625,071 Total Sales $ 9,704,495 $ 2,799,251 $ 1,605,753 $ 240,005 $ 14,349,504 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Mar. 30, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 6,241,367 $ 1,218,668 $ 1,132,476 $ — $ 8,592,511 Canned and dry products 5,463,772 1,777,733 214,070 — 7,455,575 Frozen fruits, vegetables, bakery and other 4,249,051 1,483,735 907,718 — 6,640,504 Dairy products 3,158,050 929,025 448,369 — 4,535,444 Poultry 3,042,028 620,940 681,253 — 4,344,221 Fresh produce 2,802,548 825,000 178,745 — 3,806,293 Paper and disposables 2,079,381 280,315 548,977 44,871 2,953,544 Seafood 1,868,294 550,953 81,795 — 2,501,042 Beverage products 839,173 342,753 420,414 63,389 1,665,729 Other (1) 848,135 540,317 81,559 674,186 2,144,197 Total Sales $ 30,591,799 $ 8,569,439 $ 4,695,376 $ 782,446 $ 44,639,060 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. 39-Week Period Ended Mar. 31, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 5,971,490 $ 1,250,050 $ 1,138,404 $ — $ 8,359,944 Canned and dry products 5,241,179 1,750,597 245,569 — 7,237,345 Frozen fruits, vegetables, bakery and other 3,908,210 1,890,105 858,500 — 6,656,815 Poultry 3,000,575 621,150 843,861 — 4,465,586 Dairy products 3,053,156 938,288 480,894 — 4,472,338 Fresh produce 2,705,538 770,590 188,508 — 3,664,636 Paper and disposables 1,940,107 297,663 546,146 42,639 2,826,555 Seafood 1,786,608 535,874 74,894 — 2,397,376 Beverage products 815,081 145,816 426,401 62,134 1,449,432 Other (1) 812,718 371,416 76,392 620,865 1,881,391 Total Sales $ 29,234,662 $ 8,571,549 $ 4,879,569 $ 725,638 $ 43,411,418 (1) Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value table | The following tables present the company’s assets measured at fair value on a recurring basis as of March 30, 2019 , June 30, 2018 and March 31, 2018 : Assets and Liabilities Measured at Fair Value as of Mar. 30, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 105,717 $ 200 $ — $ 105,917 Other assets (1) 28,155 — — 28,155 Total assets at fair value $ 133,872 $ 200 $ — $ 134,072 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 169,214 $ 30,190 $ — $ 199,404 Other assets (1) 163,519 — — 163,519 Total assets at fair value $ 332,733 $ 30,190 $ — $ 362,923 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities Measured at Fair Value as of Mar. 31, 2018 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 384,528 $ 49,190 $ — $ 433,718 Prepaid expenses and other current assets (1) 43,364 — — 43,364 Other assets (1) 102,211 — — 102,211 Total assets at fair value $ 530,103 $ 49,190 $ — $ 579,293 (1) |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale marketable securities | The following table presents the company’s available-for-sale marketable securities as of March 30, 2019 : March 30, 2019 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-Term Marketable Securities Long-Term Marketable Securities (in thousands) Fixed income securities: Corporate bonds $ 86,843 $ 563 $ (15 ) $ 87,391 $ 8,990 $ 78,401 Government bonds 28,964 848 — 29,812 — 29,812 Total marketable securities $ 115,807 $ 1,411 $ (15 ) $ 117,203 $ 8,990 $ 108,213 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of March 30, 2019 are below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk April 2019 U.S. Dollar 500 October 2020 U.S. Dollar 750 July 2021 U.S. Dollar 500 June 2023 Euro 500 March 2025 U.S. Dollar 500 Hedging of foreign currency risk Various (April 2019 to August 2019) Swedish Krona 321 Various (April 2019 to December 2019) British Pound Sterling 21 Various (April 2019 to December 2019) U.S. Dollar 1 June 2021 Canadian Dollar 300 July 2021 British Pound Sterling 234 August 2021 British Pound Sterling 466 June 2023 Euro 500 Hedging of fuel risk Various (March 31, 2019 to May 2020) Gallons 57 |
Derivatives balance sheet location table | The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 30, 2019 are as follows: Mar. 30, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (499,997 ) $ 58 Long-term debt (2,311,161 ) 3,264 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 30, 2018 are as follows: Jun. 30, 2018 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (499,610 ) $ 5,097 Long-term debt (1,743,732 ) 47,555 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 31, 2018 are as follows: Mar. 31, 2018 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,242,904 ) $ 45,030 March 30, 2019 , June 30, 2018 and March 31, 2018 are as follows: Derivative Fair Value Balance Sheet location Mar. 30, 2019 Jun. 30, 2018 Mar. 31, 2018 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 18,627 $ — $ 1,800 Interest rate swaps Other current liabilities 50 6,820 — Interest rate swaps Other long-term liabilities 22,461 49,734 49,256 Cash Flow Hedges: Fuel Swaps Other current assets $ 1,025 $ 15,316 $ 12,381 Foreign currency forwards Other current assets 192 693 533 Fuel swaps Other assets 397 — — Cross currency swaps Other current assets — 4,284 — Cross currency swaps Other assets 5,464 3,454 — Fuel Swaps Other current liabilities 5,352 — — Foreign currency forwards Other current liabilities 945 71 88 Fuel swaps Other long-term liabilities 85 — — Cross currency swaps Other long-term liabilities 5,465 14,201 34,690 Net Investment Hedges: Foreign currency swaps Other assets $ — $ 10,709 $ 7,946 Foreign currency swaps Other long-term liabilities 13,592 39,690 71,784 |
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 Mar. 30, 2019 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 11,903,776 $ 2,224,713 $ 94,514 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (41,657 ) Derivatives designated as hedging instruments — — 18,865 (1) The hedged total includes interest expense of $17.1 million and change in fair value of debt of $24.6 million . 13-Week Period Ended Mar. 31, 2018 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 11,673,876 $ 2,193,425 $ 136,145 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ 419 Derivatives designated as hedging instruments — — (15,740 ) (1) The hedged total includes interest expense of $13.6 million and change in fair value of debt of $14.1 million . 39-Week Period Ended Mar. 30, 2019 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 36,209,265 $ 6,820,175 $ 270,643 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (97,164 ) Derivatives designated as hedging instruments — — 39,556 (1) The hedged total includes interest expense of $47.8 million and change in fair value of debt of $49.3 million . 39-Week Period Ended Mar. 31, 2018 Cost of Goods Sold Operating Expense Interest Expense (In thousands) Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded $ 35,242,736 $ 6,538,562 $ 303,015 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (22,325 ) Derivatives designated as hedging instruments — — (26,729 ) (1) The hedged total includes interest expense of $47.8 million and change in fair value of debt of $25.5 million 13 -week periods ended March 30, 2019 and March 31, 2018 , presented on a pretax basis, are as follows: 13-Week Period Ended Mar. 30, 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ 16,276 Operating expense $ (961 ) Foreign currency contracts (14,244 ) Cost of goods sold 14 Total $ 2,032 $ (947 ) Derivatives in net investment hedging relationships: Foreign currency contracts $ (15,387 ) N/A $ — Foreign denominated debt 10,550 N/A — Total $ (4,837 ) $ — 13-Week Period Ended Mar. 31, 2018 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (1,195 ) Operating expense $ 4,438 Foreign currency contracts (12,875 ) Cost of goods sold 348 Total $ (14,070 ) $ 4,786 Derivatives in net investment hedging relationships: Foreign currency contracts $ (24,420 ) N/A $ — Foreign denominated debt (16,400 ) N/A — Total $ (40,820 ) $ — The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39 -week periods ended March 30, 2019 and March 31, 2018 , presented on a pretax basis, are as follows: 39-Week Period Ended Mar. 30, 2019 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (19,541 ) Operating expense $ 8,432 Foreign currency contracts 6,416 Cost of goods sold 505 Total $ (13,125 ) $ 8,937 Derivatives in net investment hedging relationships: Foreign currency contracts $ 18,984 N/A $ — Foreign denominated debt 22,650 N/A — Total $ 41,634 $ — 39-Week Period Ended Mar. 31, 2018 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ 18,855 Operating expense $ 5,679 Foreign currency contracts (27,450 ) Cost of goods sold 1,178 Total $ (8,595 ) $ 6,857 Derivatives in net investment hedging relationships: Foreign currency contracts $ (56,580 ) N/A $ — Foreign denominated debt (45,000 ) N/A — Total $ (101,580 ) $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share, Basic [Abstract] | |
Computation of basic and diluted earnings per share table | The following table sets forth the computation of basic and diluted earnings per share: 13-Week Period Ended 39-Week Period Ended Mar. 30, 2019 Mar. 31, 2018 Mar. 30, 2019 Mar. 31, 2018 (In thousands, except for share (In thousands, except for share Numerator: Net earnings $ 440,083 $ 330,085 $ 1,138,505 $ 981,838 Denominator: Weighted-average basic shares outstanding 514,185,453 521,832,671 517,637,952 523,468,845 Dilutive effect of share-based awards 5,635,858 6,157,892 6,849,558 5,965,682 Weighted-average diluted shares outstanding 519,821,311 527,990,563 524,487,510 529,434,527 Basic earnings per share $ 0.86 $ 0.63 $ 2.20 $ 1.88 Diluted earnings per share $ 0.85 $ 0.63 $ 2.17 $ 1.85 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of components of other comprehensive (loss) income and related tax effects | A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Mar. 30, 2019 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 2,133 $ 533 $ 1,600 Amortization of actuarial loss, net Other expense, net 8,706 2,177 6,529 Total reclassification adjustments 10,839 2,710 8,129 Foreign currency translation: Foreign currency translation adjustment N/A 37,471 — 37,471 Marketable securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 2,032 486 1,546 Change in net investment hedges N/A (4,837 ) 4,629 (9,466 ) Total other comprehensive income (loss) before reclassification adjustments (2,805 ) 5,115 (7,920 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income $ 49,774 $ 8,836 $ 40,938 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Mar. 31, 2018 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 2,409 $ 602 $ 1,807 Amortization of actuarial loss, net Other expense, net 8,761 2,190 6,571 Total reclassification adjustments 11,170 2,792 8,378 Foreign currency translation: Foreign currency translation adjustment N/A 72,010 — 72,010 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (14,070 ) (3,597 ) (10,473 ) Change in net investment hedges N/A (40,820 ) (9,294 ) (31,526 ) Total other comprehensive income (loss) before reclassification adjustments (54,890 ) (12,891 ) (41,999 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income (loss) $ 31,163 $ (9,381 ) $ 40,544 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 30, 2019 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial loss $ (36,891 ) $ (4,380 ) $ (32,511 ) Reclassification adjustments: Amortization of prior service cost Other expense, net 6,399 1,599 4,800 Amortization of actuarial loss, net Other expense, net 26,118 6,531 19,587 Total reclassification adjustments 32,517 8,130 24,387 Foreign currency translation: Other comprehensive income (loss) before reclassification adjustments: Foreign currency translation adjustment N/A (88,989 ) — (88,989 ) Marketable securities: Change in marketable securities N/A 1,396 293 1,103 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (13,125 ) (2,879 ) (10,246 ) Change in net investment hedges N/A 41,634 16,043 25,591 Total other comprehensive income (loss) before reclassification adjustments 28,509 13,164 15,345 Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,619 2,154 6,465 Total other comprehensive income $ (54,839 ) $ 19,361 $ (74,200 ) (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 39-Week Period Ended Mar. 31, 2018 Location of Expense (Income) Recognized in Net Earnings Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Reclassification adjustments: Amortization of prior service cost Other expense, net $ 7,227 $ 2,129 $ 5,098 Amortization of actuarial loss, net Other expense, net 26,283 7,744 18,539 Total reclassification adjustments 33,510 9,873 23,637 Foreign currency translation: Foreign currency translation adjustment N/A 212,594 — 212,594 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (7,720 ) (365 ) (7,355 ) Change in net investment hedges N/A (70,739 ) (23,036 ) (47,703 ) Total other comprehensive income (loss) before reclassification adjustments (78,459 ) (23,401 ) (55,058 ) Reclassification adjustments: Amortization of cash flow hedges Interest expense 8,619 2,539 6,080 Total other comprehensive income (loss) $ 176,264 $ (10,989 ) $ 187,253 (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. |
Rollforward of accumulated other comprehensive (loss) income | The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented: 39-Week Period Ended Mar. 30, 2019 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, net of tax Total (In thousands) Balance as of Jun. 30, 2018 $ (1,095,059 ) $ (171,043 ) $ (143,167 ) $ — $ (1,409,269 ) Equity adjustment from foreign currency translation — (88,989 ) — — (88,989 ) Amortization of cash flow hedges — — 6,465 — 6,465 Change in net investment hedges — — 25,591 — 25,591 Change in cash flow hedge — — (10,246 ) — (10,246 ) Net actuarial loss (32,511 ) — — — (32,511 ) Amortization of unrecognized prior service cost 4,800 — — — 4,800 Amortization of unrecognized net actuarial losses 19,587 — — — 19,587 Change in marketable securities — — — 1,103 1,103 Balance as of Mar. 30, 2019 $ (1,103,183 ) $ (260,032 ) $ (121,357 ) $ 1,103 $ (1,483,469 ) 39-Week Period Ended Mar. 31, 2018 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Total (In thousands) Balance as of Jul. 1, 2017 $ (974,232 ) $ (148,056 ) $ (140,449 ) $ (1,262,737 ) Equity adjustment from foreign currency translation — 212,594 — 212,594 Amortization of cash flow hedges — — 6,080 6,080 Change in net investment hedges — — (47,703 ) (47,703 ) Change in cash flow hedges — — (7,355 ) (7,355 ) Amortization of unrecognized prior service cost 5,098 — — 5,098 Amortization of unrecognized net actuarial losses 18,539 — — 18,539 Balance as of Mar. 31, 2018 $ (950,595 ) $ 64,538 $ (189,427 ) $ (1,075,484 ) |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Business segment table | The following tables set forth certain financial information for Sysco’s reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07. 13-Week Period Ended 39-Week Period Ended Mar. 30, 2019 Mar. 31, 2018 Mar. 30, 2019 Mar. 31, 2018 Sales: (In thousands) (In thousands) U.S. Foodservice Operations $ 10,105,283 $ 9,704,495 $ 30,591,799 $ 29,234,662 International Foodservice Operations 2,757,891 2,799,251 8,569,439 8,571,549 SYGMA 1,537,312 1,605,753 4,695,376 4,879,569 Other 257,588 240,005 782,446 725,638 Total $ 14,658,074 $ 14,349,504 $ 44,639,060 $ 43,411,418 13-Week Period Ended 39-Week Period Ended Mar. 30, 2019 Mar. 31, 2018 Mar. 30, 2019 Mar. 31, 2018 Operating income: (In thousands) (In thousands) U.S. Foodservice Operations $ 765,425 $ 696,671 $ 2,318,660 $ 2,186,327 International Foodservice Operations 10,145 19,476 62,000 148,874 SYGMA 11,668 4,477 17,213 12,675 Other 6,376 8,962 22,429 22,072 Total segments 793,614 729,586 2,420,302 2,369,948 Corporate (264,029 ) (247,383 ) (810,682 ) (739,828 ) Total operating income 529,585 482,203 1,609,620 1,630,120 Interest expense 94,514 136,145 270,643 303,015 Other expense (income), net 4,120 (18,826 ) 15,449 (35,963 ) Earnings before income taxes $ 430,951 $ 364,884 $ 1,323,528 $ 1,363,068 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information - Subsidiary Guarantees (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Guarantees [Abstract] | |
Condensed consolidating balance sheet table | The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (certain of the company’s U.S. Broadline subsidiaries), and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries. Condensed Consolidated Balance Sheet Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 163,070 $ 4,281,687 $ 4,010,792 $ — $ 8,455,549 Intercompany receivables 7,078,153 124,572 1,672,208 (8,874,933 ) — Investment in subsidiaries 6,227,092 — 1,193,850 (7,420,942 ) — Plant and equipment, net 243,519 2,101,630 2,031,910 — 4,377,059 Other assets 755,655 687,844 4,432,595 (507,903 ) 5,368,191 Total assets $ 14,467,489 $ 7,195,733 $ 13,341,355 $ (16,803,778 ) $ 18,200,799 Current liabilities $ 918,395 $ 992,713 $ 4,589,050 $ — $ 6,500,158 Intercompany payables 2,917,036 2,753,120 3,204,777 (8,874,933 ) — Long-term debt 7,697,302 8,621 428,538 — 8,134,461 Other liabilities 572,859 525,069 579,198 (507,903 ) 1,169,223 Noncontrolling interest — — 35,060 — 35,060 Shareholders’ equity 2,361,897 2,916,210 4,504,732 (7,420,942 ) 2,361,897 Total liabilities and shareholders’ equity $ 14,467,489 $ 7,195,733 $ 13,341,355 $ (16,803,778 ) $ 18,200,799 Condensed Consolidated Balance Sheet Jun. 30, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 157,994 $ 4,018,444 $ 3,827,015 $ — $ 8,003,453 Intercompany receivables 6,621,438 270,748 5,793,352 (12,685,538 ) — Investment in subsidiaries 4,896,004 — 983,625 (5,879,629 ) — Plant and equipment, net 278,855 2,181,576 2,061,229 — 4,521,660 Other assets 788,473 611,004 4,593,537 (447,723 ) 5,545,291 Total assets $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Current liabilities $ 1,233,541 $ 886,305 $ 4,468,900 $ — $ 6,588,746 Intercompany payables 882,487 3,798,134 8,004,917 (12,685,538 ) — Long-term debt 7,470,334 8,285 62,146 — 7,540,765 Other liabilities 649,445 508,387 686,178 (447,723 ) 1,396,287 Noncontrolling interest — — 37,649 — 37,649 Shareholders’ equity 2,506,957 1,880,661 3,998,968 (5,879,629 ) 2,506,957 Total liabilities and shareholders’ equity $ 12,742,764 $ 7,081,772 $ 17,258,758 $ (19,012,890 ) $ 18,070,404 Condensed Consolidated Balance Sheet Mar. 31, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 273,948 $ 4,093,321 $ 4,348,602 $ — $ 8,715,871 Intercompany receivables 3,344,142 590,025 — (3,934,167 ) — Investment in subsidiaries 7,771,987 — — (7,771,987 ) — Plant and equipment, net 263,472 2,047,608 2,081,078 — 4,392,158 Other assets 891,242 553,270 4,761,664 (685,063 ) 5,521,113 Total assets $ 12,544,791 $ 7,284,224 $ 11,191,344 $ (12,391,217 ) $ 18,629,142 Current liabilities $ 623,141 $ 3,704,927 $ 1,718,131 $ — $ 6,046,199 Intercompany payables — — 3,934,167 (3,934,167 ) — Long-term debt 8,761,475 6,429 67,252 — 8,835,156 Other liabilities 808,962 531,480 705,286 (685,063 ) 1,360,665 Noncontrolling interest — — 35,909 — 35,909 Shareholders’ equity 2,351,213 3,041,388 4,730,599 (7,771,987 ) 2,351,213 Total liabilities and shareholders’ equity $ 12,544,791 $ 7,284,224 $ 11,191,344 $ (12,391,217 ) $ 18,629,142 |
Condensed consolidating statement of comprehensive income table | Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,135,852 $ 6,098,725 $ (576,503 ) $ 14,658,074 Cost of sales — 7,392,718 5,087,561 (576,503 ) 11,903,776 Gross profit — 1,743,134 1,011,164 — 2,754,298 Operating expenses 206,795 1,025,383 992,535 — 2,224,713 Operating income (loss) (206,795 ) 717,751 18,629 — 529,585 Interest expense (income) (1) 55,925 (43,056 ) 81,645 — 94,514 Other expense (income), net (1,730 ) (80 ) 5,930 — 4,120 Earnings (losses) before income taxes (260,990 ) 760,887 (68,946 ) — 430,951 Income tax (benefit) provision (183,601 ) 188,703 (14,234 ) — (9,132 ) Equity in earnings of subsidiaries 517,472 — 107,865 (625,337 ) — Net earnings 440,083 572,184 53,153 (625,337 ) 440,083 Other comprehensive income (loss) 40,938 — 37,471 (37,471 ) 40,938 Comprehensive income $ 481,021 $ 572,184 $ 90,624 $ (662,808 ) $ 481,021 (1) Interest expense (income) includes $43.1 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 30, 2019 . There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Mar. 31, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 8,762,013 $ 6,078,876 $ (491,385 ) $ 14,349,504 Cost of sales — 7,105,014 5,060,247 (491,385 ) 11,673,876 Gross profit — 1,656,999 1,018,629 — 2,675,628 Operating expenses 192,451 1,002,854 998,120 — 2,193,425 Operating income (loss) (192,451 ) 654,145 20,509 — 482,203 Interest expense (income) (1) 160,334 (28,743 ) 4,554 — 136,145 Other expense (income), net (8,744 ) 612 (10,694 ) — (18,826 ) Earnings (losses) before income taxes (344,041 ) 682,276 26,649 — 364,884 Income tax (benefit) provision (117,286 ) 151,090 995 — 34,799 Equity in earnings of subsidiaries 556,840 — — (556,840 ) — Net earnings 330,085 531,186 25,654 (556,840 ) 330,085 Other comprehensive income (loss) 40,544 — 72,010 (72,010 ) 40,544 Comprehensive income $ 370,629 $ 531,186 $ 97,664 $ (628,850 ) $ 370,629 (1) Interest expense (income) includes $28.7 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the third quarter ended March 31, 2018 . There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 27,716,772 $ 18,662,548 $ (1,740,260 ) $ 44,639,060 Cost of sales — 22,434,604 15,514,921 (1,740,260 ) 36,209,265 Gross profit — 5,282,168 3,147,627 — 8,429,795 Operating expenses 659,697 3,113,409 3,047,069 — 6,820,175 Operating income (loss) (659,697 ) 2,168,759 100,558 — 1,609,620 Interest expense (income) (1) 160,830 (73,515 ) 183,328 — 270,643 Other expense (income), net 8,642 (220 ) 7,027 — 15,449 Earnings (losses) before income taxes (829,169 ) 2,242,494 (89,797 ) — 1,323,528 Income tax (benefit) provision (350,246 ) 556,107 (20,838 ) — 185,023 Equity in earnings of subsidiaries 1,617,428 — 330,236 (1,947,664 ) — Net earnings 1,138,505 1,686,387 261,277 (1,947,664 ) 1,138,505 Other comprehensive income (loss) (74,200 ) — (88,989 ) 88,989 (74,200 ) Comprehensive income $ 1,064,305 $ 1,686,387 $ 172,288 $ (1,858,675 ) $ 1,064,305 (1) Interest expense (income) includes $73.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. Condensed Consolidated Statement of Comprehensive Income For the 39-Week Period Ended Mar. 31, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 26,537,840 $ 18,368,427 $ (1,494,849 ) $ 43,411,418 Cost of sales — 21,482,727 15,254,858 (1,494,849 ) 35,242,736 Gross profit — 5,055,113 3,113,569 — 8,168,682 Operating expenses 599,300 3,002,446 2,936,816 — 6,538,562 Operating income (loss) (599,300 ) 2,052,667 176,753 — 1,630,120 Interest expense (income) (1) 368,099 (80,048 ) 14,964 — 303,015 Other expense (income), net (27,573 ) 1,466 (9,856 ) — (35,963 ) Earnings (losses) before income taxes (939,826 ) 2,131,249 171,645 — 1,363,068 Income tax (benefit) provision (333,562 ) 663,476 51,316 — 381,230 Equity in earnings of subsidiaries 1,588,102 — — (1,588,102 ) — Net earnings 981,838 1,467,773 120,329 (1,588,102 ) 981,838 Other comprehensive income (loss) 187,253 — 212,594 (212,594 ) 187,253 Comprehensive income $ 1,169,091 $ 1,467,773 $ 332,923 $ (1,800,696 ) $ 1,169,091 (1) Interest expense (income) includes $80.0 million |
Condensed consolidating cash flows table | Condensed Consolidated Cash Flows For the 39-Week Period Ended Mar. 30, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 976,731 $ 132,990 $ 255,504 $ — $ 1,365,225 Investing activities 349,816 (133,190 ) (293,088 ) (503,397 ) (579,859 ) Financing activities (1,338,077 ) (6,850 ) (98,285 ) 503,397 (939,815 ) Effect of exchange rates on cash — — (11,619 ) — (11,619 ) Net (decrease) in cash, cash equivalents and restricted cash (11,530 ) (7,050 ) (147,488 ) — (166,068 ) Cash, cash equivalents and restricted cash at the beginning of period 29,144 111,843 574,857 — 715,844 Cash, cash equivalents and restricted cash at the end of period $ 17,614 $ 104,793 $ 427,369 $ — $ 549,776 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 39-Week Period Ended Mar. 31, 2018 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 333,522 $ 328,096 $ 459,317 $ — $ 1,120,935 Investing activities (118,952 ) (235,164 ) (349,564 ) 147,622 (556,058 ) Financing activities (227,327 ) (5,609 ) (31,441 ) (147,622 ) (411,999 ) Effect of exchange rates on cash — — 24,745 — 24,745 Net increase (decrease) in cash and cash equivalents (12,757 ) 87,323 103,057 — 177,623 Cash and cash equivalents at the beginning of period 111,576 18,788 739,138 — 869,502 Cash and cash equivalents at the end of period $ 98,819 $ 106,111 $ 842,195 $ — $ 1,047,125 (1) |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jul. 01, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 521,621 | $ 552,325 | $ 901,551 | |
Restricted cash | 28,155 | 145,574 | ||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows | $ 549,776 | $ 715,844 | $ 1,047,125 | $ 869,502 |
Changes in Accounting (Details)
Changes in Accounting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other expense (income), net | $ (4,120) | $ 18,826 | $ (15,449) | $ 35,963 |
ASU 2017-07 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other expense (income), net | $ (8,900) | $ 3,700 | $ 26,700 | $ 11,200 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Customer receivables included in accounts and notes receivable, net | $ 4,100,000 | $ 4,100,000 | $ 3,800,000 | ||
Revenue | 14,658,074 | $ 14,349,504 | 44,639,060 | $ 43,411,418 | |
Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,810,401 | 2,744,871 | 8,592,511 | 8,359,944 | |
Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,436,453 | 2,415,761 | 7,455,575 | 7,237,345 | |
Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,210,325 | 2,240,710 | 6,640,504 | 6,656,815 | |
Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,479,984 | 1,482,467 | 4,535,444 | 4,472,338 | |
Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,409,847 | 1,426,939 | 4,344,221 | 4,465,586 | |
Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,239,255 | 1,186,079 | 3,806,293 | 3,664,636 | |
Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 967,884 | 936,489 | 2,953,544 | 2,826,555 | |
Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 824,015 | 810,511 | 2,501,042 | 2,397,376 | |
Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 563,450 | 480,606 | 1,665,729 | 1,449,432 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 716,460 | 625,071 | 2,144,197 | 1,881,391 | |
U.S. Foodservice Operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 10,105,283 | 9,704,495 | 30,591,799 | 29,234,662 | |
U.S. Foodservice Operations | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,035,201 | 1,964,633 | 6,241,367 | 5,971,490 | |
U.S. Foodservice Operations | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,812,070 | 1,759,588 | 5,463,772 | 5,241,179 | |
U.S. Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,408,601 | 1,325,252 | 4,249,051 | 3,908,210 | |
U.S. Foodservice Operations | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,030,209 | 1,016,360 | 3,158,050 | 3,053,156 | |
U.S. Foodservice Operations | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,013,513 | 956,664 | 3,042,028 | 3,000,575 | |
U.S. Foodservice Operations | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 936,972 | 878,802 | 2,802,548 | 2,705,538 | |
U.S. Foodservice Operations | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 686,732 | 646,278 | 2,079,381 | 1,940,107 | |
U.S. Foodservice Operations | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 624,953 | 610,291 | 1,868,294 | 1,786,608 | |
U.S. Foodservice Operations | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 277,421 | 273,849 | 839,173 | 815,081 | |
U.S. Foodservice Operations | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 279,611 | 272,778 | 848,135 | 812,718 | |
International Foodservice Operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 2,757,891 | 2,799,251 | 8,569,439 | 8,571,549 | |
International Foodservice Operations | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 389,126 | 403,684 | 1,218,668 | 1,250,050 | |
International Foodservice Operations | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 554,653 | 577,363 | 1,777,733 | 1,750,597 | |
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 500,999 | 618,684 | 1,483,735 | 1,890,105 | |
International Foodservice Operations | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 304,315 | 314,272 | 929,025 | 938,288 | |
International Foodservice Operations | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 195,816 | 201,133 | 620,940 | 621,150 | |
International Foodservice Operations | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 245,436 | 248,261 | 825,000 | 770,590 | |
International Foodservice Operations | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 88,400 | 95,295 | 280,315 | 297,663 | |
International Foodservice Operations | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 166,103 | 170,210 | 550,953 | 535,874 | |
International Foodservice Operations | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 129,366 | 45,938 | 342,753 | 145,816 | |
International Foodservice Operations | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 183,677 | 124,411 | 540,317 | 371,416 | |
SYGMA | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 1,537,312 | 1,605,753 | 4,695,376 | 4,879,569 | |
SYGMA | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 386,074 | 376,554 | 1,132,476 | 1,138,404 | |
SYGMA | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 69,730 | 78,810 | 214,070 | 245,569 | |
SYGMA | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 300,725 | 296,774 | 907,718 | 858,500 | |
SYGMA | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 145,460 | 151,835 | 448,369 | 480,894 | |
SYGMA | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 200,518 | 269,142 | 681,253 | 843,861 | |
SYGMA | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 56,847 | 59,016 | 178,745 | 188,508 | |
SYGMA | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 178,465 | 181,112 | 548,977 | 546,146 | |
SYGMA | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 32,959 | 30,010 | 81,795 | 74,894 | |
SYGMA | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 136,876 | 141,137 | 420,414 | 426,401 | |
SYGMA | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 29,658 | 21,363 | 81,559 | 76,392 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 257,588 | 240,005 | 782,446 | 725,638 | |
Other | Fresh and frozen meats | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Canned and dry products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Frozen fruits, vegetables, bakery and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Dairy products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Poultry | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Fresh produce | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Paper and disposables | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 14,287 | 13,804 | 44,871 | 42,639 | |
Other | Seafood | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Other | Beverage products | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | 19,787 | 19,682 | 63,389 | 62,134 | |
Other | Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 223,514 | $ 206,519 | $ 674,186 | $ 620,865 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 30, 2019 | Mar. 30, 2019 | Mar. 31, 2018 | |
Business Combinations [Abstract] | |||
Acquisition of businesses, net of cash acquired | $ 97,530 | $ 203,608 | |
Contingent consideration maximum number of years (in years) | 3 years | ||
Potential cash payout for contingent consideration arrangements | $ 19,400 | $ 19,400 | |
Amount of recorded earnout liabilities | $ 14,200 | $ 14,200 | |
Ownership interest acquired, percent | 23.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of total debt | $ 8,300,000 | ||
Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of total debt | 8,900,000 | $ 8,400,000 | $ 9,300,000 |
Carrying value of total debt | 8,700,000 | 8,300,000 | 9,100,000 |
Recurring Fair Value Measurements | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 105,917 | 199,404 | 433,718 |
Prepaid expenses and other current assets | 43,364 | ||
Other assets | 28,155 | 163,519 | 102,211 |
Total assets at fair value | 134,072 | 362,923 | 579,293 |
Recurring Fair Value Measurements | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 105,717 | 169,214 | 384,528 |
Prepaid expenses and other current assets | 43,364 | ||
Other assets | 28,155 | 163,519 | 102,211 |
Total assets at fair value | 133,872 | 332,733 | 530,103 |
Recurring Fair Value Measurements | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 200 | 30,190 | 49,190 |
Prepaid expenses and other current assets | 0 | ||
Other assets | 0 | 0 | 0 |
Total assets at fair value | 200 | 30,190 | 49,190 |
Recurring Fair Value Measurements | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Prepaid expenses and other current assets | 0 | ||
Other assets | 0 | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 | $ 0 |
Marketable Securities (Details)
Marketable Securities (Details) $ in Thousands | 9 Months Ended |
Mar. 30, 2019USD ($) | |
Marketable Securities [Line Items] | |
Amortized Cost Basis | $ 115,807 |
Gross Unrealized Gains | 1,411 |
Gross Unrealized Losses | (15) |
Fair Value | $ 117,203 |
Minimum | |
Marketable Securities [Line Items] | |
Debt securities maturities | 1 year |
Maximum | |
Marketable Securities [Line Items] | |
Debt securities maturities | 10 years |
Short-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | $ 8,990 |
Long-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 108,213 |
Corporate bonds | |
Marketable Securities [Line Items] | |
Amortized Cost Basis | 86,843 |
Gross Unrealized Gains | 563 |
Gross Unrealized Losses | (15) |
Fair Value | 87,391 |
Corporate bonds | Short-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 8,990 |
Corporate bonds | Long-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 78,401 |
Government bonds | |
Marketable Securities [Line Items] | |
Amortized Cost Basis | 28,964 |
Gross Unrealized Gains | 848 |
Gross Unrealized Losses | 0 |
Fair Value | 29,812 |
Government bonds | Short-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | 0 |
Government bonds | Long-Term Marketable Securities | |
Marketable Securities [Line Items] | |
Fair Value | $ 29,812 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Hedging of Debt Portfolio (Details) - 9 months ended Mar. 30, 2019 £ in Millions, kr in Millions, gal in Millions, $ in Millions, $ in Millions | GBP (£)gal | EUR (€) | USD ($) | CAD ($) | SEK (kr) |
Interest rate swap, April 2019 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | $ 500 | ||||
Interest rate swap, October 2020 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | 750 | ||||
Interest rate swap, July 2021 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | 500 | ||||
Interest rate swaps, June 2023 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | € | € 500,000,000 | ||||
Interest rate swap, March 2025 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | 500 | ||||
Hedging of foreign currency risk, SEK, January 2019 to April 2019 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | kr | kr 321 | ||||
Hedging of foreign currency risk, GBP, Maturing January 2019 to October 2019 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | £ | £ 21 | ||||
Hedging of foreign currency risk, USD, Maturing January 2019 to December 2019 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | $ 1 | ||||
Hedging of foreign currency risk, CAD, June 2021 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | $ 300 | ||||
Hedging of foreign currency risk, GBP, July 2021 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | £ | 234 | ||||
Hedging of foreign currency risk, GBP, August 2021 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | £ | £ 466 | ||||
Hedging of foreign currency risk, Euro, June 2023 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | € | € 500,000,000 | ||||
Fuel swaps | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount (in gallons) | gal | 57 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Details) - Hedging Instrument - USD ($) $ in Thousands | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value Hedging | Interest rate swap agreements | Other assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | $ 18,627 | $ 0 | $ 1,800 |
Fair Value Hedging | Interest rate swap agreements | Other current liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | 50 | 6,820 | 0 |
Fair Value Hedging | Interest rate swap agreements | Other long-term liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | 22,461 | 49,734 | 49,256 |
Cash flow hedging | Fuel swaps | Other assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | 397 | 0 | 0 |
Cash flow hedging | Fuel swaps | Other current liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | 5,352 | 0 | 0 |
Cash flow hedging | Fuel swaps | Other long-term liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | 85 | 0 | 0 |
Cash flow hedging | Fuel swaps | Other current assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | 1,025 | 15,316 | 12,381 |
Cash flow hedging | Foreign currency forwards | Other current liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | 945 | 71 | 88 |
Cash flow hedging | Foreign currency forwards | Other current assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | 192 | 693 | 533 |
Cash flow hedging | Cross-currency swaps | Other assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | 5,464 | 3,454 | 0 |
Cash flow hedging | Cross-currency swaps | Other long-term liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | 5,465 | 14,201 | 34,690 |
Cash flow hedging | Cross-currency swaps | Other current assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | 0 | 4,284 | 0 |
Net investment hedging | Foreign currency swaps | Other assets | |||
Derivative [Line Items] | |||
Fair value of derivative assets | 0 | 10,709 | 7,946 |
Net investment hedging | Foreign currency swaps | Other long-term liabilities | |||
Derivative [Line Items] | |||
Fair value of derivative liabilities | $ 13,592 | $ 39,690 | $ 71,784 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Location of Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Derivative [Line Items] | ||||
Cost of sales | $ 11,903,776 | $ 11,673,876 | $ 36,209,265 | $ 35,242,736 |
Operating expenses | 2,224,713 | 2,193,425 | 6,820,175 | 6,538,562 |
Interest expense | 94,514 | 136,145 | 270,643 | 303,015 |
Unrealized gain (loss) on hedged item in fair value hedge, interest expense | 17,100 | 13,600 | 47,800 | 47,800 |
Unrealized gain (loss) on hedged item in fair value hedge, change in fair value of debt | 24,600 | 14,100 | 49,300 | 25,500 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Cost of Goods Sold | ||||
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship, hedged items | 0 | 0 | 0 | 0 |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | 0 | 0 | 0 | 0 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Other expense (income) | ||||
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship, hedged items | 0 | 0 | 0 | 0 |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | 0 | 0 | 0 | 0 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Gain (loss) on fair value hedging relationship, hedged items | (41,657) | 419 | (97,164) | (22,325) |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | $ 18,865 | $ (15,740) | $ 39,556 | $ (26,729) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Cash Flow Hedges (Details) - Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flow hedging | ||||
Derivative [Line Items] | ||||
Derivatives in cash flow hedging relationships: | $ 2,032 | $ (13,125) | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | $ (14,070) | $ (8,595) | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (947) | 4,786 | 8,937 | 6,857 |
Cash flow hedging | Fuel swaps | ||||
Derivative [Line Items] | ||||
Derivatives in cash flow hedging relationships: | 16,276 | (19,541) | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (1,195) | 18,855 | ||
Cash flow hedging | Fuel swaps | Operating expense | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (961) | 4,438 | 8,432 | 5,679 |
Cash flow hedging | Foreign currency swaps | ||||
Derivative [Line Items] | ||||
Derivatives in cash flow hedging relationships: | (14,244) | 6,416 | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (12,875) | (27,450) | ||
Cash flow hedging | Foreign currency swaps | Cost of goods sold | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 14 | 348 | 505 | 1,178 |
Net investment hedging | ||||
Derivative [Line Items] | ||||
Derivatives in net investment hedging relationships: | (4,837) | 41,634 | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (40,820) | (101,580) | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 | 0 | 0 |
Net investment hedging | Foreign currency swaps | ||||
Derivative [Line Items] | ||||
Derivatives in net investment hedging relationships: | (15,387) | 18,984 | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (24,420) | (56,580) | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 | 0 | 0 |
Net investment hedging | Foreign denominated debt | ||||
Derivative [Line Items] | ||||
Derivatives in net investment hedging relationships: | 10,550 | 22,650 | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (16,400) | (45,000) | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Location of Hedged Liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Current maturities of long-term debt | |||
Derivative [Line Items] | |||
Carrying Amount of Hedged Assets (Liabilities) | $ (499,997) | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (499,610) | ||
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | 58 | 5,097 | |
Long-term debt | |||
Derivative [Line Items] | |||
Carrying Amount of Hedged Assets (Liabilities) | (2,311,161) | ||
Carrying Amount of Hedged Assets (Liabilities) | (1,743,732) | $ (2,242,904) | |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ 3,264 | $ 47,555 | |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ 45,030 |
Debt (Details)
Debt (Details) | 9 Months Ended |
Mar. 30, 2019USD ($) | |
Debt [Line Items] | |
Maximum board-authorized aggregate commercial paper limit | $ 2,000,000,000 |
Carrying value of total debt | 8,300,000,000 |
Aggregate outstanding commercial paper and short-term debt minimum amount outstanding during period | 0 |
Maximum amount outstanding | 669,000,000 |
Commercial paper | |
Debt [Line Items] | |
Carrying value of total debt | $ 200,000,000 |
Senior Notes | Senior Notes, 5.25% Due 2018 | |
Debt [Line Items] | |
Coupon Rate | 5.375% |
Repurchased face amount | $ 250,000,000 |
Debt - Senior Notes Offering (D
Debt - Senior Notes Offering (Details) - Senior Notes - Senior Notes, 3.65% in Canada | Sep. 25, 2018CAD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 500,000,000 |
Coupon Rate | 3.65% |
Pricing (percentage of par) | 99.962% |
Period prior to maturity for early redemption | 2 months |
Percent of principal due upon early repayment | 100.00% |
Percent of principal due after applicable date | 100.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Numerator: | ||||
Net earnings | $ 440,083 | $ 330,085 | $ 1,138,505 | $ 981,838 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 514,185,453 | 521,832,671 | 517,637,952 | 523,468,845 |
Dilutive effect of share-based awards (in shares) | 5,635,858 | 6,157,892 | 6,849,558 | 5,965,682 |
Weighted-average diluted shares outstanding (in shares) | 519,821,311 | 527,990,563 | 524,487,510 | 529,434,527 |
Basic earnings per share (in dollars per share) | $ 0.86 | $ 0.63 | $ 2.20 | $ 1.88 |
Diluted earnings per share (in dollars per share) | $ 0.85 | $ 0.63 | $ 2.17 | $ 1.85 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 2,583,000 | 25,000 | 2,260,000 | 3,071,000 |
Other Comprehensive Income - Co
Other Comprehensive Income - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Comprehensive income | $ 481,021 | $ 370,629 | $ 1,064,305 | $ 1,169,091 |
Before Tax Amount | ||||
Total other comprehensive income (loss) | 49,774 | 31,163 | (54,839) | 176,264 |
Tax | ||||
Total other comprehensive income (loss) | 8,836 | (9,381) | 19,361 | (10,989) |
Net of Tax Amount | ||||
Foreign currency translation adjustment | (32,511) | |||
Total other comprehensive income (loss) | 40,938 | 40,544 | (74,200) | 187,253 |
Pension and other postretirement benefit plans: | ||||
Net of Tax Amount | ||||
Foreign currency translation adjustment | (32,511) | |||
Pension and other postretirement benefit plans: | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 10,839 | 11,170 | 32,517 | 33,510 |
Tax | ||||
Amortization of prior service cost | 2,710 | 2,792 | 8,130 | 9,873 |
Net of Tax Amount | ||||
Amortization of prior service cost | 8,129 | 8,378 | 24,387 | 23,637 |
Amortization of prior service cost | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 4,800 | 5,098 | ||
Amortization of prior service cost | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,133 | 2,409 | 6,399 | 7,227 |
Tax | ||||
Amortization of prior service cost | 533 | 602 | 1,599 | 2,129 |
Net of Tax Amount | ||||
Amortization of prior service cost | 1,600 | 1,807 | 4,800 | 5,098 |
Amortization of actuarial loss (gain), net | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (36,891) | |||
Tax | ||||
Foreign currency translation adjustment | (4,380) | |||
Net of Tax Amount | ||||
Amortization of prior service cost | 19,587 | 18,539 | ||
Foreign currency translation adjustment | (32,511) | |||
Amortization of actuarial loss (gain), net | Other expense, net | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 8,706 | 8,761 | 26,118 | 26,283 |
Tax | ||||
Amortization of prior service cost | 2,177 | 2,190 | 6,531 | 7,744 |
Net of Tax Amount | ||||
Amortization of prior service cost | 6,529 | 6,571 | 19,587 | 18,539 |
Foreign currency translation: | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 37,471 | 72,010 | (88,989) | 212,594 |
Tax | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Foreign currency translation adjustment | 37,471 | 72,010 | (88,989) | 212,594 |
Change in marketable securities | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 1,396 | 1,396 | ||
Tax | ||||
Foreign currency translation adjustment | 293 | 293 | ||
Net of Tax Amount | ||||
Foreign currency translation adjustment | 1,103 | 1,103 | ||
Hedging, net of tax | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (2,805) | (54,890) | 28,509 | (78,459) |
Tax | ||||
Foreign currency translation adjustment | 5,115 | (12,891) | 13,164 | (23,401) |
Net of Tax Amount | ||||
Foreign currency translation adjustment | (7,920) | (41,999) | 15,345 | (55,058) |
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 6,465 | |||
Foreign currency translation adjustment | (10,246) | |||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | 2,032 | (13,125) | ||
Tax | ||||
Foreign currency translation adjustment | 486 | (2,879) | ||
Net of Tax Amount | ||||
Foreign currency translation adjustment | 1,546 | (10,246) | ||
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,873 | 8,619 | ||
Tax | ||||
Amortization of prior service cost | 718 | 2,154 | ||
Net of Tax Amount | ||||
Amortization of prior service cost | 2,155 | 6,465 | ||
Amortization of cash flow hedges | ||||
Net of Tax Amount | ||||
Amortization of prior service cost | 6,080 | |||
Foreign currency translation adjustment | (7,355) | |||
Amortization of cash flow hedges | Operating expenses | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (14,070) | (7,720) | ||
Tax | ||||
Foreign currency translation adjustment | (3,597) | (365) | ||
Net of Tax Amount | ||||
Foreign currency translation adjustment | (10,473) | (7,355) | ||
Amortization of cash flow hedges | Interest expense | ||||
Before Tax Amount | ||||
Reclassification adjustments, before tax | 2,873 | 8,619 | ||
Tax | ||||
Amortization of prior service cost | 718 | 2,539 | ||
Net of Tax Amount | ||||
Amortization of prior service cost | 2,155 | 6,080 | ||
Change in net investment hedge | ||||
Before Tax Amount | ||||
Other comprehensive income before reclassifications, before tax | (4,837) | (40,820) | 41,634 | (70,739) |
Tax | ||||
Foreign currency translation adjustment | 4,629 | (9,294) | 16,043 | (23,036) |
Net of Tax Amount | ||||
Foreign currency translation adjustment | $ (9,466) | $ (31,526) | $ 25,591 | $ (47,703) |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | $ 2,167,636 | $ 2,268,602 | $ 2,506,957 | $ 2,381,516 |
Change in cash flow hedges | (32,511) | |||
Ending balance, shareholders' equity | 2,361,897 | 2,351,213 | 2,361,897 | 2,351,213 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (1,524,407) | (1,116,028) | (1,409,269) | (1,262,737) |
Ending balance, shareholders' equity | (1,483,469) | (1,075,484) | (1,483,469) | (1,075,484) |
Pension and Other Postretirement Benefit Plans, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (1,095,059) | (974,232) | ||
Change in cash flow hedges | (32,511) | |||
Ending balance, shareholders' equity | (1,103,183) | (950,595) | (1,103,183) | (950,595) |
Amortization of prior service cost | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification adjustment, net of tax | 4,800 | 5,098 | ||
Amortization of unrecognized net actuarial losses | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Change in cash flow hedges | (32,511) | |||
Reclassification adjustment, net of tax | 19,587 | 18,539 | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (171,043) | (148,056) | ||
Change in cash flow hedges | 37,471 | 72,010 | (88,989) | 212,594 |
Ending balance, shareholders' equity | (260,032) | 64,538 | (260,032) | 64,538 |
Hedging, net of tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | (143,167) | (140,449) | ||
Change in cash flow hedges | (7,920) | (41,999) | 15,345 | (55,058) |
Ending balance, shareholders' equity | (121,357) | (189,427) | (121,357) | (189,427) |
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Change in cash flow hedges | (10,246) | |||
Reclassification adjustment, net of tax | 6,465 | |||
Amortization of cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Change in cash flow hedges | (7,355) | |||
Reclassification adjustment, net of tax | 6,080 | |||
Change in net investment hedge | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Change in cash flow hedges | (9,466) | $ (31,526) | 25,591 | $ (47,703) |
Change in marketable securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, shareholders' equity | 0 | |||
Change in cash flow hedges | 1,103 | 1,103 | ||
Ending balance, shareholders' equity | $ 1,103 | $ 1,103 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 2,609,755 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 11.70 | |
Share-based compensation expense | $ 78,110 | $ 72,742 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 141,900 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 1 year 11 months 23 days | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 578,102 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 74.86 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 616,868 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 63.91 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 739,051 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 10.22 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | (2.12%) | 9.54% | 13.98% | 27.97% |
Effective income tax expense (benefit) attributable to the pension plan | $ (11.3) | $ (33.2) | ||
Tax cuts and jobs act, tax benefit from pension plan contribution | $ 44.4 | |||
Excess tax benefits of equity-based compensation and tax law changes in foreign jurisdictions | 14.9 | $ 45.7 | ||
Impact of changes in tax law in foreign jurisdictions | $ 8.1 | |||
Tax act, transition taxes | 15.1 | |||
Tax act, deferred tax assets | 3.2 | |||
Unrecognized tax benefits | 26.6 | 26.6 | ||
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 4.6 | $ 4.6 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 30, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reporting segments | segment | 3 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 14,658,074 | $ 14,349,504 | $ 44,639,060 | $ 43,411,418 |
Operating income: | 529,585 | 482,203 | 1,609,620 | 1,630,120 |
Interest expense | 94,514 | 136,145 | 270,643 | 303,015 |
Other expense (income), net | 4,120 | (18,826) | 15,449 | (35,963) |
Earnings before income taxes | 430,951 | 364,884 | 1,323,528 | 1,363,068 |
U.S. Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 10,105,283 | 9,704,495 | 30,591,799 | 29,234,662 |
International Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,757,891 | 2,799,251 | 8,569,439 | 8,571,549 |
SYGMA | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,537,312 | 1,605,753 | 4,695,376 | 4,879,569 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 257,588 | 240,005 | 782,446 | 725,638 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | 793,614 | 729,586 | 2,420,302 | 2,369,948 |
Operating Segments | U.S. Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | 765,425 | 696,671 | 2,318,660 | 2,186,327 |
Operating Segments | International Foodservice Operations | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | 10,145 | 19,476 | 62,000 | 148,874 |
Operating Segments | SYGMA | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | 11,668 | 4,477 | 17,213 | 12,675 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | 6,376 | 8,962 | 22,429 | 22,072 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Operating income: | $ (264,029) | $ (247,383) | $ (810,682) | $ (739,828) |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Subsidiary Guarantees - Narrative (Details) $ in Billions | 9 Months Ended |
Mar. 30, 2019USD ($) | |
Guarantees [Abstract] | |
Carrying value of total debt | $ 8.3 |
Percentage ownership of subsidiary guarantors by parent | 100.00% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Subsidiary Guarantees - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Jul. 01, 2017 |
Supplemental Guarantor Information [Line Items] | ||||||
Current assets | $ 8,455,549 | $ 8,003,453 | $ 8,715,871 | |||
Intercompany receivables | 0 | 0 | 0 | |||
Investment in subsidiaries | 0 | 0 | 0 | |||
Plant and equipment, net | 4,377,059 | 4,521,660 | 4,392,158 | |||
Other assets | 5,368,191 | 5,545,291 | 5,521,113 | |||
Total assets | 18,200,799 | 18,070,404 | 18,629,142 | |||
Current liabilities | 6,500,158 | 6,588,746 | 6,046,199 | |||
Intercompany payables | 0 | 0 | 0 | |||
Long-term debt | 8,134,461 | 7,540,765 | 8,835,156 | |||
Other liabilities | 1,169,223 | 1,396,287 | 1,360,665 | |||
Noncontrolling interest | 35,060 | 37,649 | 35,909 | |||
Shareholders’ equity | 2,361,897 | $ 2,167,636 | 2,506,957 | 2,351,213 | $ 2,268,602 | $ 2,381,516 |
Total liabilities and shareholders' equity | 18,200,799 | 18,070,404 | 18,629,142 | |||
Reportable Legal Entities | Sysco | ||||||
Supplemental Guarantor Information [Line Items] | ||||||
Current assets | 163,070 | 157,994 | 273,948 | |||
Intercompany receivables | 7,078,153 | 6,621,438 | 3,344,142 | |||
Investment in subsidiaries | 6,227,092 | 4,896,004 | 7,771,987 | |||
Plant and equipment, net | 243,519 | 278,855 | 263,472 | |||
Other assets | 755,655 | 788,473 | 891,242 | |||
Total assets | 14,467,489 | 12,742,764 | 12,544,791 | |||
Current liabilities | 918,395 | 1,233,541 | 623,141 | |||
Intercompany payables | 2,917,036 | 882,487 | 0 | |||
Long-term debt | 7,697,302 | 7,470,334 | 8,761,475 | |||
Other liabilities | 572,859 | 649,445 | 808,962 | |||
Noncontrolling interest | 0 | 0 | 0 | |||
Shareholders’ equity | 2,361,897 | 2,506,957 | 2,351,213 | |||
Total liabilities and shareholders' equity | 14,467,489 | 12,742,764 | 12,544,791 | |||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||||
Supplemental Guarantor Information [Line Items] | ||||||
Current assets | 4,281,687 | 4,018,444 | 4,093,321 | |||
Intercompany receivables | 124,572 | 270,748 | 590,025 | |||
Investment in subsidiaries | 0 | 0 | 0 | |||
Plant and equipment, net | 2,101,630 | 2,181,576 | 2,047,608 | |||
Other assets | 687,844 | 611,004 | 553,270 | |||
Total assets | 7,195,733 | 7,081,772 | 7,284,224 | |||
Current liabilities | 992,713 | 886,305 | 3,704,927 | |||
Intercompany payables | 2,753,120 | 3,798,134 | 0 | |||
Long-term debt | 8,621 | 8,285 | 6,429 | |||
Other liabilities | 525,069 | 508,387 | 531,480 | |||
Noncontrolling interest | 0 | 0 | 0 | |||
Shareholders’ equity | 2,916,210 | 1,880,661 | 3,041,388 | |||
Total liabilities and shareholders' equity | 7,195,733 | 7,081,772 | 7,284,224 | |||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||||
Supplemental Guarantor Information [Line Items] | ||||||
Current assets | 4,010,792 | 3,827,015 | 4,348,602 | |||
Intercompany receivables | 1,672,208 | 5,793,352 | 0 | |||
Investment in subsidiaries | 1,193,850 | 983,625 | 0 | |||
Plant and equipment, net | 2,031,910 | 2,061,229 | 2,081,078 | |||
Other assets | 4,432,595 | 4,593,537 | 4,761,664 | |||
Total assets | 13,341,355 | 17,258,758 | 11,191,344 | |||
Current liabilities | 4,589,050 | 4,468,900 | 1,718,131 | |||
Intercompany payables | 3,204,777 | 8,004,917 | 3,934,167 | |||
Long-term debt | 428,538 | 62,146 | 67,252 | |||
Other liabilities | 579,198 | 686,178 | 705,286 | |||
Noncontrolling interest | 35,060 | 37,649 | 35,909 | |||
Shareholders’ equity | 4,504,732 | 3,998,968 | 4,730,599 | |||
Total liabilities and shareholders' equity | 13,341,355 | 17,258,758 | 11,191,344 | |||
Eliminations | ||||||
Supplemental Guarantor Information [Line Items] | ||||||
Current assets | 0 | 0 | 0 | |||
Intercompany receivables | (8,874,933) | (12,685,538) | (3,934,167) | |||
Investment in subsidiaries | (7,420,942) | (5,879,629) | (7,771,987) | |||
Plant and equipment, net | 0 | 0 | 0 | |||
Other assets | (507,903) | (447,723) | (685,063) | |||
Total assets | (16,803,778) | (19,012,890) | (12,391,217) | |||
Current liabilities | 0 | 0 | 0 | |||
Intercompany payables | (8,874,933) | (12,685,538) | (3,934,167) | |||
Long-term debt | 0 | 0 | 0 | |||
Other liabilities | (507,903) | (447,723) | (685,063) | |||
Noncontrolling interest | 0 | 0 | 0 | |||
Shareholders’ equity | (7,420,942) | (5,879,629) | (7,771,987) | |||
Total liabilities and shareholders' equity | $ (16,803,778) | $ (19,012,890) | $ (12,391,217) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Subsidiary Guarantees - Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Supplemental Guarantor Information [Line Items] | ||||
Sales | $ 14,658,074 | $ 14,349,504 | $ 44,639,060 | $ 43,411,418 |
Cost of sales | 11,903,776 | 11,673,876 | 36,209,265 | 35,242,736 |
Gross profit | 2,754,298 | 2,675,628 | 8,429,795 | 8,168,682 |
Operating expenses | 2,224,713 | 2,193,425 | 6,820,175 | 6,538,562 |
Operating income | 529,585 | 482,203 | 1,609,620 | 1,630,120 |
Interest expense (income) | 94,514 | 136,145 | 270,643 | 303,015 |
Other expense (income), net | 4,120 | (18,826) | 15,449 | (35,963) |
Earnings before income taxes | 430,951 | 364,884 | 1,323,528 | 1,363,068 |
Income tax (benefit) provision | (9,132) | 34,799 | 185,023 | 381,230 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 440,083 | 330,085 | 1,138,505 | 981,838 |
Other comprehensive income (loss) | 40,938 | 40,544 | (74,200) | 187,253 |
Comprehensive income | 481,021 | 370,629 | 1,064,305 | 1,169,091 |
Reportable Legal Entities | Sysco | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | 206,795 | 192,451 | 659,697 | 599,300 |
Operating income | (206,795) | (192,451) | (659,697) | (599,300) |
Interest expense (income) | 55,925 | 160,334 | 160,830 | 368,099 |
Other expense (income), net | (1,730) | (8,744) | 8,642 | (27,573) |
Earnings before income taxes | (260,990) | (344,041) | (829,169) | (939,826) |
Income tax (benefit) provision | (183,601) | (117,286) | (350,246) | (333,562) |
Equity in earnings of subsidiaries | 517,472 | 556,840 | 1,617,428 | 1,588,102 |
Net earnings | 440,083 | 330,085 | 1,138,505 | 981,838 |
Other comprehensive income (loss) | 40,938 | 40,544 | (74,200) | 187,253 |
Comprehensive income | 481,021 | 370,629 | 1,064,305 | 1,169,091 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 9,135,852 | 8,762,013 | 27,716,772 | 26,537,840 |
Cost of sales | 7,392,718 | 7,105,014 | 22,434,604 | 21,482,727 |
Gross profit | 1,743,134 | 1,656,999 | 5,282,168 | 5,055,113 |
Operating expenses | 1,025,383 | 1,002,854 | 3,113,409 | 3,002,446 |
Operating income | 717,751 | 654,145 | 2,168,759 | 2,052,667 |
Interest expense (income) | (43,056) | (28,743) | (73,515) | (80,048) |
Other expense (income), net | (80) | 612 | (220) | 1,466 |
Earnings before income taxes | 760,887 | 682,276 | 2,242,494 | 2,131,249 |
Income tax (benefit) provision | 188,703 | 151,090 | 556,107 | 663,476 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 572,184 | 531,186 | 1,686,387 | 1,467,773 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | 572,184 | 531,186 | 1,686,387 | 1,467,773 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | 6,098,725 | 6,078,876 | 18,662,548 | 18,368,427 |
Cost of sales | 5,087,561 | 5,060,247 | 15,514,921 | 15,254,858 |
Gross profit | 1,011,164 | 1,018,629 | 3,147,627 | 3,113,569 |
Operating expenses | 992,535 | 998,120 | 3,047,069 | 2,936,816 |
Operating income | 18,629 | 20,509 | 100,558 | 176,753 |
Interest expense (income) | 81,645 | 4,554 | 183,328 | 14,964 |
Other expense (income), net | 5,930 | (10,694) | 7,027 | (9,856) |
Earnings before income taxes | (68,946) | 26,649 | (89,797) | 171,645 |
Income tax (benefit) provision | (14,234) | 995 | (20,838) | 51,316 |
Equity in earnings of subsidiaries | 107,865 | 0 | 330,236 | 0 |
Net earnings | 53,153 | 25,654 | 261,277 | 120,329 |
Other comprehensive income (loss) | 37,471 | 72,010 | (88,989) | 212,594 |
Comprehensive income | 90,624 | 97,664 | 172,288 | 332,923 |
Eliminations | ||||
Supplemental Guarantor Information [Line Items] | ||||
Sales | (576,503) | (491,385) | (1,740,260) | (1,494,849) |
Cost of sales | (576,503) | (491,385) | (1,740,260) | (1,494,849) |
Gross profit | 0 | 0 | 0 | 0 |
Operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense (income) | 0 | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 | 0 |
Earnings before income taxes | 0 | 0 | 0 | 0 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (625,337) | (556,840) | (1,947,664) | (1,588,102) |
Net earnings | (625,337) | (556,840) | (1,947,664) | (1,588,102) |
Other comprehensive income (loss) | (37,471) | (72,010) | 88,989 | (212,594) |
Comprehensive income | (662,808) | (628,850) | (1,858,675) | (1,800,696) |
Eliminations | Other Non-Guarantor Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Interest expense (income) | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Subsidiary Guarantees - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows provided by (used for): | ||
Operating activities | $ 1,365,225 | $ 1,120,935 |
Investing activities | (579,859) | (556,058) |
Financing activities | (939,815) | (411,999) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (11,619) | 24,745 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (166,068) | 177,623 |
Cash, cash equivalents and restricted cash at beginning of period | 715,844 | 869,502 |
Cash, cash equivalents and restricted cash at end of period | 549,776 | 1,047,125 |
Reportable Legal Entities | Sysco | ||
Cash flows provided by (used for): | ||
Operating activities | 976,731 | 333,522 |
Investing activities | 349,816 | (118,952) |
Financing activities | (1,338,077) | (227,327) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (11,530) | (12,757) |
Cash, cash equivalents and restricted cash at beginning of period | 29,144 | 111,576 |
Cash, cash equivalents and restricted cash at end of period | 17,614 | 98,819 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||
Cash flows provided by (used for): | ||
Operating activities | 132,990 | 328,096 |
Investing activities | (133,190) | (235,164) |
Financing activities | (6,850) | (5,609) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (7,050) | 87,323 |
Cash, cash equivalents and restricted cash at beginning of period | 111,843 | 18,788 |
Cash, cash equivalents and restricted cash at end of period | 104,793 | 106,111 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||
Cash flows provided by (used for): | ||
Operating activities | 255,504 | 459,317 |
Investing activities | (293,088) | (349,564) |
Financing activities | (98,285) | (31,441) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (11,619) | 24,745 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (147,488) | 103,057 |
Cash, cash equivalents and restricted cash at beginning of period | 574,857 | 739,138 |
Cash, cash equivalents and restricted cash at end of period | 427,369 | 842,195 |
Eliminations | ||
Cash flows provided by (used for): | ||
Operating activities | 0 | 0 |
Investing activities | (503,397) | 147,622 |
Financing activities | 503,397 | (147,622) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 |