Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 28, 2019 | Oct. 18, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-6544 | |
Entity Registrant Name | Sysco Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1648137 | |
Entity Address, Address Line One | 1390 Enclave Parkway | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77077 | |
City Area Code | 281 | |
Local Phone Number | 584-1390 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 510,226,830 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000096021 | |
Current Fiscal Year End Date | --06-27 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of each class | Common stock, $1.00 Par Value | |
Trading Symbol | SYY | |
Security Exchange Name | NYSE | |
Senior Notes, 5.25% Due 2018 | ||
Document Information [Line Items] | ||
Title of each class | 1.25% Notes due June 2023 | |
Trading Symbol | SYY 23 | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 |
Current assets | ||
Cash and cash equivalents | $ 455,482 | $ 513,460 |
Accounts and notes receivable, less allowances of $49,443 and $28,176 | 4,397,005 | 4,181,696 |
Inventories | 3,386,808 | 3,216,034 |
Prepaid expenses and other current assets | 235,014 | 210,582 |
Income tax receivable | 9,855 | 19,733 |
Total current assets | 8,484,164 | 8,141,505 |
Plant and equipment at cost, less accumulated depreciation | 4,493,016 | 4,501,705 |
Other long-term assets | ||
Goodwill | 3,871,722 | 3,896,226 |
Intangibles, less amortization | 825,287 | 857,301 |
Deferred income taxes | 98,118 | 80,760 |
Operating lease right-of-use assets, net | 626,580 | |
Other assets | 557,688 | 489,025 |
Total other long-term assets | 5,979,395 | 5,323,312 |
Total assets | 18,956,575 | 17,966,522 |
Current liabilities | ||
Notes payable | 3,433 | 3,957 |
Accounts payable | 4,247,276 | 4,314,620 |
Accrued expenses | 1,596,925 | 1,729,941 |
Accrued income taxes | 96,932 | 17,343 |
Current operating lease liabilities | 102,544 | |
Current maturities of long-term debt | 54,361 | 37,322 |
Total current liabilities | 6,101,471 | 6,103,183 |
Long-term liabilities | ||
Long-term debt | 8,637,706 | 8,122,058 |
Deferred income taxes | 178,719 | 172,232 |
Long-term operating lease liabilities | 545,566 | |
Other long-term liabilities | 1,005,337 | 1,031,020 |
Total long-term liabilities | 10,367,328 | 9,325,310 |
Noncontrolling interest | 33,028 | 35,426 |
Shareholders’ equity | ||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | 0 | 0 |
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | 765,175 | 765,175 |
Paid-in capital | 1,490,661 | 1,457,419 |
Retained earnings | 11,486,833 | 11,229,679 |
Accumulated other comprehensive loss | (1,675,430) | (1,599,729) |
Treasury stock at cost, 254,310,626 and 252,297,926 shares | (9,612,491) | (9,349,941) |
Total shareholders’ equity | 2,454,748 | 2,502,603 |
Total liabilities and shareholders’ equity | $ 18,956,575 | $ 17,966,522 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 49,443 | $ 28,176 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,500,000 | 1,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 765,174,900 | 765,174,900 |
Treasury stock (in shares) | 254,310,626 | 252,297,926 |
Consolidated Results of Operati
Consolidated Results of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||
Sales | $ 15,303,005 | $ 15,215,279 |
Cost of sales | 12,359,635 | 12,311,494 |
Gross profit | 2,943,370 | 2,903,785 |
Operating expenses | 2,275,052 | 2,275,645 |
Operating income | 668,318 | 628,140 |
Interest expense | 83,335 | 89,016 |
Other (income) expense, net | 3,112 | 1,132 |
Earnings before income taxes | 581,871 | 537,992 |
Income taxes | 128,090 | 106,950 |
Net earnings | $ 453,781 | $ 431,042 |
Net earnings: | ||
Basic earnings per share (in dollars per share) | $ 0.88 | $ 0.83 |
Diluted earnings per share (in dollars per share) | $ 0.87 | $ 0.81 |
Average shares outstanding (in shares) | 513,496,296 | 520,856,599 |
Diluted shares outstanding (in shares) | 518,761,456 | 529,034,470 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Net earnings | $ 453,781 | $ 431,042 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustment | (126,159) | (24,927) |
Items presented net of tax: | ||
Amortization of cash flow hedges | 2,155 | |
Amortization of cash flow hedges | 2,155 | 2,155 |
Change in net investment hedges | 30,000 | |
Change in cash flow hedges | 9,259 | |
Amortization of prior service cost | 1,428 | 1,600 |
Amortization of actuarial loss | 6,683 | 6,529 |
Actuarial (loss) gain | 0 | (32,511) |
Change in marketable securities | 933 | 0 |
Total other comprehensive (loss) income | (75,701) | (41,574) |
Comprehensive income | 378,080 | 389,468 |
Cash flow hedging | ||
Items presented net of tax: | ||
Amortization of cash flow hedges | 2,155 | |
Changes in derivatives | 9,259 | (3,008) |
Net investment hedging | ||
Items presented net of tax: | ||
Changes in derivatives | $ 30,000 | $ 8,588 |
Changes in Consolidated Shareho
Changes in Consolidated Shareholders' Equity - USD ($) $ in Thousands | Total | Cash flow hedging | Net investment hedging | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCash flow hedging | Accumulated Other Comprehensive LossNet investment hedging | Treasury Stock |
Beginning balance, shareholders' equity 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 | 431,042 | 431,042 | ||||||||
Foreign currency translation adjustment | (24,927) | (24,927) | ||||||||
Amortization of cash flow hedges | 2,155 | $ 2,155 | 2,155 | |||||||
Changes in derivatives | (3,008) | $ 8,588 | $ (3,008) | $ 8,588 | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 8,129 | 8,129 | ||||||||
Pension funded status adjustment, net of tax | (32,511) | (32,511) | ||||||||
Change in marketable securities, net of tax | 0 | |||||||||
Dividends declared | (187,180) | (187,180) | ||||||||
Treasury stock purchases | (209,541) | $ (209,541) | ||||||||
Treasury stock purchases (in shares) | 2,911,677 | |||||||||
Share-based compensation awards | 138,870 | 54,478 | $ 84,392 | |||||||
Share-based compensation awards (in shares) | (2,419,654) | |||||||||
Ending balance, shareholders' equity at Sep. 29, 2018 | 2,638,574 | $ 765,175 | 1,438,097 | 10,592,490 | (1,450,843) | $ (8,706,345) | ||||
Ending balance, shareholders' equity (in shares) at Sep. 29, 2018 | 765,174,900 | 245,025,271 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Adoption of ASU 2016-02, Leases (Topic 842), net of tax | 1,978 | 1,978 | ||||||||
Beginning balance, shareholders' equity at Jun. 29, 2019 | 2,502,603 | $ 765,175 | 1,457,419 | 11,229,679 | (1,599,729) | $ (9,349,941) | ||||
Beginning balance, shareholders' equity (in shares) at Jun. 29, 2019 | 765,174,900 | 252,297,926 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 453,781 | 453,781 | ||||||||
Foreign currency translation adjustment | (126,159) | (126,159) | ||||||||
Amortization of cash flow hedges | 2,155 | 2,155 | ||||||||
Changes in derivatives | $ 9,259 | $ 30,000 | $ 9,259 | $ 30,000 | ||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 8,111 | 8,111 | ||||||||
Change in marketable securities, net of tax | 933 | 933 | ||||||||
Dividends declared | (198,605) | (198,605) | ||||||||
Treasury stock purchases | (347,867) | $ (347,867) | ||||||||
Treasury stock purchases (in shares) | 4,587,397 | |||||||||
Share-based compensation awards | 118,559 | 33,242 | $ 85,317 | |||||||
Share-based compensation awards (in shares) | (2,574,697) | |||||||||
Ending balance, shareholders' equity at Sep. 28, 2019 | $ 2,454,748 | $ 765,175 | $ 1,490,661 | $ 11,486,833 | $ (1,675,430) | $ (9,612,491) | ||||
Ending balance, shareholders' equity (in shares) at Sep. 28, 2019 | 765,174,900 | 254,310,626 |
Changes in Consolidated Share_2
Changes in Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.39 | $ 0.36 |
Consolidated Cash Flows (Unaudi
Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 453,781 | $ 431,042 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Share-based compensation expense | 21,386 | 29,193 |
Depreciation and amortization | 187,405 | 187,627 |
Operating lease asset amortization | 26,925 | 0 |
Amortization of debt issuance and other debt-related costs | 4,920 | 6,170 |
Deferred income taxes | (25,494) | (20,249) |
Provision for losses on receivables | 18,712 | 10,464 |
Other non-cash items | 2,295 | (3,695) |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
(Increase) in receivables | (236,136) | (182,233) |
(Increase) in inventories | (186,331) | (229,100) |
(Increase) in prepaid expenses and other current assets | (30,133) | (23,540) |
(Decrease) increase in accounts payable | (38,894) | 78,112 |
(Decrease) in accrued expenses | (92,661) | (111,309) |
(Decrease) in operating lease liabilities | (30,597) | 0 |
Increase in accrued income taxes | 89,467 | 100,868 |
Decrease (increase) in other assets | 3,141 | (4,261) |
Increase in other long-term liabilities | 3,793 | 2,056 |
Net cash provided by operating activities | 171,579 | 271,145 |
Cash flows from investing activities: | ||
Additions to plant and equipment | (175,728) | (104,322) |
Proceeds from sales of plant and equipment | 4,902 | 3,839 |
Acquisition of businesses, net of cash acquired | (74,814) | 0 |
Purchase of marketable securities | (4,002) | 0 |
Proceeds from sales of marketable securities | 3,018 | 0 |
Other investing activities | 0 | 912 |
Net cash used for investing activities | (246,624) | (99,571) |
Cash flows from financing activities: | ||
Bank and commercial paper borrowings (repayments), net | 533,400 | 0 |
Other debt borrowings | 31,789 | 386,142 |
Other debt repayments | (16,139) | (8,078) |
Proceeds from stock option exercises | 85,317 | 84,393 |
Treasury stock purchases | (349,314) | (204,640) |
Dividends paid | (200,037) | (187,229) |
Other financing activities | (22,311) | (2,200) |
Net cash provided by financing activities | 62,705 | 68,388 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (5,485) | (2,435) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (17,825) | 237,527 |
Cash, cash equivalents and restricted cash at beginning of period | 532,245 | 715,844 |
Cash, cash equivalents and restricted cash at end of period | 514,420 | 953,371 |
Cash paid during the period for: | ||
Interest | 84,407 | 81,392 |
Income taxes | $ 70,013 | $ 70,675 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 28, 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. The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income, changes in consolidated shareholders’ equity and consolidated cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position, results of operations, comprehensive income, cash flows and changes in shareholders’ equity for all periods presented have been made. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 29, 2019 . Certain footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements. Supplemental Cash Flow Information The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: Sep. 28, 2019 Sep. 29, 2018 (In thousands) Cash and cash equivalents $ 455,482 $ 790,304 Restricted cash (1) 58,938 163,067 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 514,420 $ 953,371 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
Changes in Accounting
Changes in Accounting | 3 Months Ended |
Sep. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Changes in Accounting | CHANGES IN ACCOUNTING Leases In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount and timing of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. Sysco adopted this ASU and related amendments as of June 30, 2019, the first day of fiscal 2020, under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification, as well as relief from separating and allocating consideration across all categories of leases to lease and non-lease components of an agreement. For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption. The adoption of this ASU and related amendments resulted in Sysco recognizing $647.2 million and $657.9 million of operating lease right-of-use (ROU) assets and operating lease liabilities, respectively, as of June 30, 2019. There were no other significant impacts to the company’s consolidated financial statements. Updated accounting policies and additional lease disclosures as a result of the adoption of this ASU are described in Note 9 , “Leases.” |
Revenue
Revenue | 3 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The company recognizes revenues when its performance obligations are satisfied in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods and services. After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $4.1 billion and $3.9 billion as of September 28, 2019 and June 29, 2019 , respectively. Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other Assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of September 28, 2019 , Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 13-Week Period Ended Sep. 28, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,075,300 $ 412,155 $ 381,377 $ — $ 2,868,832 Canned and dry products 1,898,889 586,625 37,190 — 2,522,704 Frozen fruits, vegetables, bakery and other 1,449,218 552,014 254,455 — 2,255,687 Dairy products 1,148,381 312,178 145,921 — 1,606,480 Poultry 1,090,106 218,600 204,269 — 1,512,975 Fresh produce 998,164 257,758 60,933 — 1,316,855 Paper and disposables 719,540 98,342 168,436 17,373 1,003,691 Seafood 685,410 149,590 24,855 — 859,855 Beverage products 290,785 132,852 143,679 24,329 591,645 Other (1) 302,840 192,274 25,879 243,288 764,281 Total Sales $ 10,658,633 $ 2,912,388 $ 1,446,994 $ 284,990 $ 15,303,005 (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 Sep. 29, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,121,517 $ 420,456 $ 372,334 $ — $ 2,914,307 Canned and dry products 1,852,168 611,470 77,621 — 2,541,259 Frozen fruits, vegetables, bakery and other 1,423,386 628,559 291,864 — 2,343,809 Dairy products 1,086,404 318,347 154,806 — 1,559,557 Poultry 1,026,936 215,582 272,061 — 1,514,579 Fresh produce 937,580 257,544 64,849 — 1,259,973 Paper and disposables 710,759 104,539 188,616 16,409 1,020,323 Seafood 661,687 188,436 25,385 — 875,508 Beverage products 290,571 52,069 147,294 23,180 513,114 Other (1) 288,403 123,948 26,627 233,872 672,850 Total Sales $ 10,399,411 $ 2,920,950 $ 1,621,457 $ 273,461 $ 15,215,279 (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. |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the first 13 weeks of fiscal 2020 , the company paid cash of $74.8 million for acquisitions. These acquisitions did not have a material effect on the company’s operating results, cash flows or financial position. Certain acquisitions involve contingent consideration that may include earnout agreements that are typically payable over periods of up to three years in the event that certain operating results are achieved. As of September 28, 2019 , aggregate contingent consideration outstanding was $28.3 million , of which $21.5 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 measurement. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 28, 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 6 , “Marketable Securities.” The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 7 , “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of September 28, 2019 and June 29, 2019 : Assets Measured at Fair Value as of Sep. 28, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 108,962 $ 1,400 $ — $ 110,362 Other assets (1) 58,938 — — 58,938 Total assets at fair value $ 167,900 $ 1,400 $ — $ 169,300 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 72,824 $ 200 $ — $ 73,024 Other assets (1) 18,785 — — 18,785 Total assets at fair value $ 91,609 $ 200 $ — $ 91,809 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. The carrying values of accounts receivable and accounts payable approximated their respective fair values due to their short-term maturities. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the company for new debt with the same maturities as existing debt, and is considered a Level 2 measurement. The fair value of total debt was approximately $9.5 billion and $8.6 billion as of September 28, 2019 and June 29, 2019 , respectively. The carrying value of total debt was $8.7 billion and $8.2 billion as of September 28, 2019 and June 29, 2019 , respectively. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Sep. 28, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES Sysco invests a portion of the assets held by its wholly owned captive insurance subsidiary in a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale. The company includes fixed income securities maturing in less than twelve months within Prepaid expenses and other current assets and includes fixed income securities maturing in more than twelve months within Other assets in the accompanying Consolidated Balance Sheets. The company records the amounts at fair market value, which is determined using quoted market prices at the end of the reporting period. Unrealized gains and 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 September 28, 2019 and June 29, 2019 : September 28, 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 $ 88,505 $ 2,067 $ (2 ) $ 90,570 $ 12,017 $ 78,553 Government bonds 28,834 2,695 — 31,529 — 31,529 Total marketable securities $ 117,339 $ 4,762 $ (2 ) $ 122,099 $ 12,017 $ 110,082 June 29, 2019 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-Term Marketable Securities Long-Term Marketable Securities (In thousands) Corporate bonds $ 87,540 $ 1,734 $ — $ 89,274 $ 12,006 $ 77,268 Government bonds 28,900 1,845 — 30,745 — 30,745 Total marketable securities $ 116,440 $ 3,579 $ — $ 120,019 $ 12,006 $ 108,013 The fixed income securities held at September 28, 2019 had effective maturities ranging from less than one year to approximately eleven years . There were no significant realized gains or losses in marketable securities in the first quarter of 2020 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Sep. 28, 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. 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 September 28, 2019 are presented below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk October 2020 U.S. Dollar 750 July 2021 U.S. Dollar 500 June 2023 Euro 500 March 2025 U.S. Dollar 500 Hedging of foreign currency risk Various (September 30, 2019 to January 2020) Swedish Krona 280 Various (October 2019 to June 2020) British Pound Sterling 23 June 2021 Canadian Dollar 187 July 2021 British Pound Sterling 234 August 2021 British Pound Sterling 466 June 2023 Euro 500 Hedging of fuel risk Various (September 30, 2019 to September 2020) Gallons 55 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of September 28, 2019 and June 29, 2019 are as follows: Derivative Fair Value Balance Sheet location Sep. 28, 2019 Jun. 29, 2019 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 44,407 $ 37,396 Interest rate swaps Other long-term liabilities 6,061 9,285 Cash Flow Hedges: Fuel Swaps Other current assets $ 16 $ 154 Foreign currency forwards Other current assets 275 624 Fuel swaps Other assets — 136 Cross currency swaps Other assets 21,046 8,592 Fuel Swaps Other current liabilities 6,262 6,537 Foreign currency forwards Other current liabilities 591 162 Fuel swaps Other long-term liabilities 28 239 Net Investment Hedges: Foreign currency swaps Other assets $ 28,171 $ 18,614 Foreign currency swaps Other long-term liabilities — 9,973 Gains or losses recognized in the consolidated results of operations for cash flow hedging relationships are not significant for each of the periods presented. The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows: 13-Week Period Ended Sep. 28, 2019 Cost of Sales 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 $ 12,359,635 $ 2,275,052 $ 83,335 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (24,736 ) Derivatives designated as hedging instruments — — 8,857 (1) The hedged total includes interest expense of $14.6 million and change in fair value of debt of $10.2 million . 13-Week Period Ended Sep. 29, 2018 Cost of Sales 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 $ 12,311,494 $ 2,275,645 $ 89,016 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (8,588 ) Derivatives designated as hedging instruments — — (10,859 ) (1) The hedged total includes interest expense of $15.1 million and change in fair value of debt of $6.5 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 September 28, 2019 and September 29, 2018 , presented on a pretax basis, are as follows: 13-Week Period Ended Sep. 28, 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 $ 344 Operating expense $ (3,406 ) Foreign currency contracts 12,307 Cost of sales 2 Total $ 12,651 $ (3,404 ) Derivatives in net investment hedging relationships: Foreign currency contracts $ 20,852 N/A $ — Foreign denominated debt 21,450 N/A — Total $ 42,302 $ — 13-Week Period Ended Sep. 29, 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 $ 1,026 Operating expense $ 4,353 Foreign currency contracts (4,803 ) Cost of sales 483 Total $ (3,777 ) $ 4,836 Derivatives in net investment hedging relationships: Foreign currency contracts $ 7,228 N/A $ — Foreign denominated debt 3,950 N/A — Total $ 11,178 $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of September 28, 2019 are as follows: Sep. 28, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,312,113 ) $ (38,795 ) The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 29, 2019 are as follows: Jun. 29, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,311,636 ) $ (28,616 ) |
Debt
Debt | 3 Months Ended |
Sep. 28, 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 September 28, 2019 , there were $665.4 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 13 weeks of fiscal 2020 , aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from approximately $208.9 million to approximately $911.3 million . |
Leases
Leases | 3 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | LEASES Sysco leases certain of its distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The company determines if an arrangement is a lease at inception and recognizes a finance or operating lease liability and ROU asset in the consolidated balance sheets if a lease exists. Lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at the commencement date. If the borrowing rate implicit in the lease is not readily determinable, Sysco uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The lease term is defined as the noncancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the company will exercise one of these options. Leases with an initial term of 12 months or less are not recorded in Sysco’s consolidated balance sheets, and the company recognizes expense for these leases on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance. Sysco’s leases do not contain significant residual value guarantees and do not impose significant restrictions or covenants. The following table presents the location of the finance lease ROU assets and lease liabilities in the company’s Consolidated Balance Sheet at September 28, 2019 : Consolidated Balance Sheet Location September 28, 2019 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 92,052 Current finance lease liabilities Current maturities of long-term debt 27,300 Long-term finance lease liabilities Long-term debt 69,213 The following table presents lease costs for the 13 -week period ended September 28, 2019 : Consolidated Results of Operations Location 13-Week Period Ended Sep. 28, 2019 (In thousands) Operating lease cost Operating expenses $ 30,425 Financing lease cost: Amortization of right-of-use assets Operating expenses 8,613 Interest on lease obligations Interest expense 1,182 Variable lease cost Operating expenses 468 Short-term lease cost Operating expenses 2,896 Net lease cost $ 43,584 Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of September 28, 2019 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 88,622 $ 24,112 2021 109,589 27,829 2022 84,288 20,370 2023 68,088 14,046 2024 46,874 8,912 2025 43,721 5,742 Thereafter 322,335 6,378 Total undiscounted lease obligations 763,517 107,389 Less imputed interest (115,407 ) (10,876 ) Present value of lease obligations $ 648,110 $ 96,513 Other information related to lease agreements was as follows: 13-Week Period Ended Sep. 28, 2019 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 30,597 Operating cash flows for financing leases 1,182 Financing cash flows for financing leases 7,232 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 5,781 Assets obtained in exchange for finance lease obligations 1,553 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.35 years Financing leases 4.34 years Weighted-average discount rate: Operating leases 2.39 % Financing leases 4.96 % |
Leases | LEASES Sysco leases certain of its distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The company determines if an arrangement is a lease at inception and recognizes a finance or operating lease liability and ROU asset in the consolidated balance sheets if a lease exists. Lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at the commencement date. If the borrowing rate implicit in the lease is not readily determinable, Sysco uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The lease term is defined as the noncancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the company will exercise one of these options. Leases with an initial term of 12 months or less are not recorded in Sysco’s consolidated balance sheets, and the company recognizes expense for these leases on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities, and repairs and maintenance. Sysco’s leases do not contain significant residual value guarantees and do not impose significant restrictions or covenants. The following table presents the location of the finance lease ROU assets and lease liabilities in the company’s Consolidated Balance Sheet at September 28, 2019 : Consolidated Balance Sheet Location September 28, 2019 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 92,052 Current finance lease liabilities Current maturities of long-term debt 27,300 Long-term finance lease liabilities Long-term debt 69,213 The following table presents lease costs for the 13 -week period ended September 28, 2019 : Consolidated Results of Operations Location 13-Week Period Ended Sep. 28, 2019 (In thousands) Operating lease cost Operating expenses $ 30,425 Financing lease cost: Amortization of right-of-use assets Operating expenses 8,613 Interest on lease obligations Interest expense 1,182 Variable lease cost Operating expenses 468 Short-term lease cost Operating expenses 2,896 Net lease cost $ 43,584 Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of September 28, 2019 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 88,622 $ 24,112 2021 109,589 27,829 2022 84,288 20,370 2023 68,088 14,046 2024 46,874 8,912 2025 43,721 5,742 Thereafter 322,335 6,378 Total undiscounted lease obligations 763,517 107,389 Less imputed interest (115,407 ) (10,876 ) Present value of lease obligations $ 648,110 $ 96,513 Other information related to lease agreements was as follows: 13-Week Period Ended Sep. 28, 2019 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 30,597 Operating cash flows for financing leases 1,182 Financing cash flows for financing leases 7,232 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 5,781 Assets obtained in exchange for finance lease obligations 1,553 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.35 years Financing leases 4.34 years Weighted-average discount rate: Operating leases 2.39 % Financing leases 4.96 % |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 28, 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 Sep. 28, 2019 Sep. 29, 2018 (In thousands, except for share Numerator: Net earnings $ 453,781 $ 431,042 Denominator: Weighted-average basic shares outstanding 513,496,296 520,856,599 Dilutive effect of share-based awards 5,265,160 8,177,871 Weighted-average diluted shares outstanding 518,761,456 529,034,470 Basic earnings per share $ 0.88 $ 0.83 Diluted earnings per share $ 0.87 $ 0.81 The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 3,321,000 and 1,067,000 for the first quarter of fiscal 2020 and fiscal 2019 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Sep. 28, 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 $378.1 million and $389.5 million for the first quarter of fiscal 2020 and fiscal 2019 , respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 13-Week Period Ended Sep. 28, 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 $ 1,905 $ 477 $ 1,428 Amortization of actuarial loss, net Other expense, net 8,942 2,259 6,683 Total reclassification adjustments 10,847 2,736 8,111 Foreign currency translation: Foreign currency translation adjustment N/A (126,159 ) — (126,159 ) Marketable securities: Change in marketable securities (1) N/A 1,181 248 933 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) 12,651 3,392 9,259 Change in net investment hedges N/A 42,302 12,302 30,000 Total other comprehensive income (loss) before reclassification adjustments 54,953 15,694 39,259 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,874 719 2,155 Total other comprehensive (loss) income $ (56,304 ) $ 19,397 $ (75,701 ) (1) Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first quarter of 2020 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Sep. 29, 2018 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) gain, arising in the current year $ (36,891 ) $ (4,380 ) $ (32,511 ) Reclassification adjustments: Amortization of prior service cost Other expense, net 2,133 533 1,600 Amortization of actuarial loss (gain), net Other expense, net 8,706 2,177 6,529 Total reclassification adjustments 10,839 2,710 8,129 Foreign currency translation: Other comprehensive income (loss) before Foreign currency translation adjustment N/A (24,927 ) — (24,927 ) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (3,777 ) (769 ) (3,008 ) Change in net investment hedges N/A 11,178 2,590 8,588 Total other comprehensive income (loss) before reclassification adjustments 7,401 1,821 5,580 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income (loss) $ (40,705 ) $ 869 $ (41,574 ) (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: 13-Week Period Ended Sep. 28, 2019 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, net of tax Total (In thousands) Balance as of Jun. 29, 2019 $ (1,217,617 ) $ (290,169 ) $ (94,770 ) $ 2,827 $ (1,599,729 ) Equity adjustment from foreign currency translation — (126,159 ) — — (126,159 ) Amortization of cash flow hedges — — 2,155 — 2,155 Change in net investment hedges — — 30,000 — 30,000 Change in cash flow hedge — — 9,259 — 9,259 Amortization of unrecognized prior service cost 1,428 — — — 1,428 Amortization of unrecognized net actuarial losses 6,683 — — — 6,683 Change in marketable securities — — — 933 933 Balance as of Sep. 28, 2019 $ (1,209,506 ) $ (416,328 ) $ (53,356 ) $ 3,760 $ (1,675,430 ) 13-Week Period Ended Sep. 29, 2018 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, 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 — (24,927 ) — (24,927 ) Amortization of cash flow hedges — — 2,155 2,155 Change in net investment hedges — — 8,588 8,588 Change in cash flow hedges — — (3,008 ) (3,008 ) Net actuarial loss (32,511 ) — — (32,511 ) Amortization of unrecognized prior service cost 1,600 — — 1,600 Amortization of unrecognized net actuarial losses 6,529 — — 6,529 Balance as of Sep. 29, 2018 $ (1,119,441 ) $ (195,970 ) $ (135,432 ) $ (1,450,843 ) |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP). Stock Incentive Plans In the first quarter of fiscal 2020 , options to purchase 2,291,085 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 quarter of fiscal 2020 was $10.40 . In the first quarter of fiscal 2020 , 512,765 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 PSU granted during the first quarter of fiscal 2020 was $72.66 . The PSUs will convert into shares of Sysco common stock at the end of the performance period based on financial performance targets consisting of Sysco’s adjusted earnings per share compound annual growth rate and adjusted return on invested capital. Employee Stock Purchase Plan Plan participants purchased 240,802 shares of common stock under the Sysco ESPP during the first quarter of fiscal 2020 . The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $10.61 during the first quarter of fiscal 2020 . The fair value of each stock purchase right is estimated as the difference between the stock price at the date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost that has been recognized in results of operations was $21.4 million and $29.2 million for the first quarter of fiscal 2020 and fiscal 2019 , respectively. As of September 28, 2019 , there was $136.8 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 2.06 years . |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Effective Tax Rate The effective tax rates for the first quarters of fiscal 2020 and 2019 were 22.01% and 19.88% , respectively. As compared to the company’s statutory tax rate, the lower effective tax rate for the first quarter of fiscal 2020 was primarily due to the favorable impact of excess tax benefits of equity-based compensation that totaled $15.7 million . The lower effective tax rate for the first quarter of 2019 was primarily due to the favorable impact of excess tax benefits of equity-based compensation that totaled $14.3 million and the release of certain tax contingencies due to the lapse of statutes of limitations. Uncertain Tax Positions As of September 28, 2019 , the gross amount of unrecognized tax benefit and related accrued interest was $23.9 million and $3.8 million , respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months. At this time, an estimate of the range of the reasonably possible change cannot be made. Other The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects a combination of income earned and taxed in the various U.S. federal and state, as well as foreign, jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings Sysco is engaged in various legal proceedings that have arisen but have not been fully adjudicated. The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When probable and reasonably estimable, the losses have been accrued. Although the final results of legal proceedings cannot be predicted with certainty, based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Sep. 28, 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 - primarily includes operations that the company has grouped into Canada, Latin America and Europe, which distribute a full line of food products and a wide variety of non-food products. Latin America primarily consists of operations in Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom, France, Ireland and Sweden; • SYGMA - our U.S. customized distribution subsidiary; and • Other - primarily our hotel supply operations and Sysco Labs, which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These expenses also include all share-based compensation costs. The following tables set forth certain financial information for Sysco’s reportable business segments. 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 Sep. 28, 2019 Sep. 29, 2018 Sales: (In thousands) U.S. Foodservice Operations $ 10,658,633 $ 10,399,411 International Foodservice Operations 2,912,388 2,920,950 SYGMA 1,446,994 1,621,457 Other 284,990 273,461 Total $ 15,303,005 $ 15,215,279 13-Week Period Ended Sep. 28, 2019 Sep. 29, 2018 Operating income: (In thousands) U.S. Foodservice Operations $ 861,406 $ 815,758 International Foodservice Operations 54,800 66,772 SYGMA 7,570 2,431 Other 10,137 10,335 Total segments 933,913 895,296 Corporate (265,595 ) (267,156 ) Total operating income 668,318 628,140 Interest expense 83,335 89,016 Other expense (income), net 3,112 1,132 Earnings before income taxes $ 581,871 $ 537,992 |
Supplemental Guarantor Informat
Supplemental Guarantor Information - Subsidiary Guarantees | 3 Months Ended |
Sep. 28, 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 September 28, 2019 , Sysco had a total of $7.5 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 Sep. 28, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 172,317 $ 4,548,019 $ 3,763,828 $ — $ 8,484,164 Intercompany receivables 6,517,293 148,589 3,229,688 (9,895,570 ) — Investment in subsidiaries 5,305,887 — 1,255,862 (6,561,749 ) — Plant and equipment, net 242,040 2,184,301 2,066,675 — 4,493,016 Other assets 817,530 729,136 4,974,095 (541,366 ) 5,979,395 Total assets $ 13,055,067 $ 7,610,045 $ 15,290,148 $ (16,998,685 ) $ 18,956,575 Current liabilities $ 443,234 $ 1,061,795 $ 4,596,442 $ — $ 6,101,471 Intercompany payables 1,307,665 3,261,317 5,326,588 (9,895,570 ) — Long-term debt 8,192,123 10,747 434,836 — 8,637,706 Other liabilities 657,297 551,789 1,061,902 (541,366 ) 1,729,622 Noncontrolling interest — — 33,028 — 33,028 Shareholders’ equity 2,454,748 2,724,397 3,837,352 (6,561,749 ) 2,454,748 Total liabilities and shareholders’ equity $ 13,055,067 $ 7,610,045 $ 15,290,148 $ (16,998,685 ) $ 18,956,575 Condensed Consolidated Balance Sheet Jun. 29, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 121,993 $ 4,195,543 $ 3,823,969 $ — $ 8,141,505 Intercompany receivables 6,162,303 30,469 3,220,237 (9,413,009 ) — Investment in subsidiaries 4,680,530 — 1,126,315 (5,806,845 ) — Plant and equipment, net 252,101 2,162,668 2,086,936 — 4,501,705 Other assets 787,986 718,600 4,372,725 (555,999 ) 5,323,312 Total assets $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Current liabilities $ 465,101 $ 1,018,650 $ 4,619,432 $ — $ 6,103,183 Intercompany payables 686,116 3,443,182 5,283,711 (9,413,009 ) — Long-term debt 7,668,314 7,938 445,806 — 8,122,058 Other liabilities 682,779 545,391 531,081 (555,999 ) 1,203,252 Noncontrolling interest — — 35,426 — 35,426 Shareholders’ equity 2,502,603 2,092,119 3,714,726 (5,806,845 ) 2,502,603 Total liabilities and shareholders’ equity $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Sep. 28, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,810,408 $ 6,043,288 $ (550,691 ) $ 15,303,005 Cost of sales — 7,910,440 4,999,886 (550,691 ) 12,359,635 Gross profit — 1,899,968 1,043,402 — 2,943,370 Operating expenses 198,840 1,075,837 1,000,375 — 2,275,052 Operating income (loss) (198,840 ) 824,131 43,027 — 668,318 Interest expense (income) (1) 107,336 (20,528 ) (3,473 ) — 83,335 Other expense (income), net 7,053 (167 ) (3,774 ) — 3,112 Earnings (losses) before income taxes (313,229 ) 844,826 50,274 — 581,871 Income tax (benefit) provision (98,500 ) 212,546 14,044 — 128,090 Equity in earnings of subsidiaries 668,510 — 129,548 (798,058 ) — Net earnings 453,781 632,280 165,778 (798,058 ) 453,781 Other comprehensive income (loss) (75,701 ) — (126,159 ) 126,159 (75,701 ) Comprehensive income $ 378,080 $ 632,280 $ 39,619 $ (671,899 ) $ 378,080 (1) Interest expense (income) includes $20.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the first quarter ended September 28, 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 Sep. 29, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,479,806 $ 6,234,158 $ (498,685 ) $ 15,215,279 Cost of sales — 7,660,101 5,150,078 (498,685 ) 12,311,494 Gross profit — 1,819,705 1,084,080 — 2,903,785 Operating expenses 220,281 1,052,350 1,003,014 — 2,275,645 Operating income (loss) (220,281 ) 767,355 81,066 — 628,140 Interest expense (income) (1) 41,413 (21,538 ) 69,141 — 89,016 Other expense (income), net 6,600 (54 ) (5,414 ) — 1,132 Earnings (losses) before income taxes (268,294 ) 788,947 17,339 — 537,992 Income tax (benefit) provision (93,587 ) 196,445 4,092 — 106,950 Equity in earnings of subsidiaries 605,750 — 94,341 (700,091 ) — Net earnings 431,043 592,502 107,588 (700,091 ) 431,042 Other comprehensive income (loss) (41,574 ) — (24,927 ) 24,927 (41,574 ) Comprehensive income $ 389,469 $ 592,502 $ 82,661 $ (675,164 ) $ 389,468 (1) Interest expense (income) includes $21.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the first quarter ended September 29, 2018 . 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 13-Week Period Ended Sep. 28, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 11,776 $ 69,098 $ 90,705 $ — $ 171,579 Investing activities (49,434 ) (85,903 ) (128,923 ) 17,636 (246,624 ) Financing activities 109,226 742 (29,627 ) (17,636 ) 62,705 Effect of exchange rates on cash — — (5,485 ) — (5,485 ) Net increase (decrease) in cash, cash equivalents and restricted cash 71,568 (16,063 ) (73,330 ) — (17,825 ) Cash, cash equivalents and restricted cash at the beginning of period 29,868 117,643 384,734 — 532,245 Cash, cash equivalents and restricted cash at the end of period $ 101,436 $ 101,580 $ 311,404 $ — $ 514,420 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 13-Week Period Ended Sep. 29, 2018 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 167,767 $ 69,459 $ 33,919 $ — $ 271,145 Investing activities 361,777 (42,188 ) (12,229 ) (406,931 ) (99,571 ) Financing activities (332,988 ) (1,581 ) (3,974 ) 406,931 68,388 Effect of exchange rates on cash — — (2,435 ) — (2,435 ) Net increase (decrease) in cash, cash equivalents and restricted cash 196,556 25,690 15,281 — 237,527 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 $ 225,700 $ 137,533 $ 590,138 $ — $ 953,371 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. |
Changes in Accounting (Policies
Changes in Accounting (Policies) | 3 Months Ended |
Sep. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Leases In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) , specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount and timing of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. Sysco adopted this ASU and related amendments as of June 30, 2019, the first day of fiscal 2020, under the modified retrospective approach and elected certain practical expedients permitted under the transition guidance, including to retain the historical lease classification, as well as relief from separating and allocating consideration across all categories of leases to lease and non-lease components of an agreement. For leases subject to index or rate adjustments, the most current index or rate adjustments were included in the measurement of operating lease obligations at adoption. The adoption of this ASU and related amendments resulted in Sysco recognizing $647.2 million and $657.9 million of operating lease right-of-use (ROU) assets and operating lease liabilities, respectively, as of June 30, 2019. There were no other significant impacts to the company’s consolidated financial statements. Updated accounting policies and additional lease disclosures as a result of the adoption of this ASU are described in Note 9 , “Leases.” |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Sep. 28, 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: Sep. 28, 2019 Sep. 29, 2018 (In thousands) Cash and cash equivalents $ 455,482 $ 790,304 Restricted cash (1) 58,938 163,067 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 514,420 $ 953,371 (1) Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
Restrictions on cash and cash equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows: Sep. 28, 2019 Sep. 29, 2018 (In thousands) Cash and cash equivalents $ 455,482 $ 790,304 Restricted cash (1) 58,938 163,067 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 514,420 $ 953,371 (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) | 3 Months Ended |
Sep. 28, 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 Sep. 28, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,075,300 $ 412,155 $ 381,377 $ — $ 2,868,832 Canned and dry products 1,898,889 586,625 37,190 — 2,522,704 Frozen fruits, vegetables, bakery and other 1,449,218 552,014 254,455 — 2,255,687 Dairy products 1,148,381 312,178 145,921 — 1,606,480 Poultry 1,090,106 218,600 204,269 — 1,512,975 Fresh produce 998,164 257,758 60,933 — 1,316,855 Paper and disposables 719,540 98,342 168,436 17,373 1,003,691 Seafood 685,410 149,590 24,855 — 859,855 Beverage products 290,785 132,852 143,679 24,329 591,645 Other (1) 302,840 192,274 25,879 243,288 764,281 Total Sales $ 10,658,633 $ 2,912,388 $ 1,446,994 $ 284,990 $ 15,303,005 (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 Sep. 29, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 2,121,517 $ 420,456 $ 372,334 $ — $ 2,914,307 Canned and dry products 1,852,168 611,470 77,621 — 2,541,259 Frozen fruits, vegetables, bakery and other 1,423,386 628,559 291,864 — 2,343,809 Dairy products 1,086,404 318,347 154,806 — 1,559,557 Poultry 1,026,936 215,582 272,061 — 1,514,579 Fresh produce 937,580 257,544 64,849 — 1,259,973 Paper and disposables 710,759 104,539 188,616 16,409 1,020,323 Seafood 661,687 188,436 25,385 — 875,508 Beverage products 290,571 52,069 147,294 23,180 513,114 Other (1) 288,403 123,948 26,627 233,872 672,850 Total Sales $ 10,399,411 $ 2,920,950 $ 1,621,457 $ 273,461 $ 15,215,279 (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) | 3 Months Ended |
Sep. 28, 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 September 28, 2019 and June 29, 2019 : Assets Measured at Fair Value as of Sep. 28, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 108,962 $ 1,400 $ — $ 110,362 Other assets (1) 58,938 — — 58,938 Total assets at fair value $ 167,900 $ 1,400 $ — $ 169,300 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 72,824 $ 200 $ — $ 73,024 Other assets (1) 18,785 — — 18,785 Total assets at fair value $ 91,609 $ 200 $ — $ 91,809 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Sep. 28, 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 September 28, 2019 and June 29, 2019 : September 28, 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 $ 88,505 $ 2,067 $ (2 ) $ 90,570 $ 12,017 $ 78,553 Government bonds 28,834 2,695 — 31,529 — 31,529 Total marketable securities $ 117,339 $ 4,762 $ (2 ) $ 122,099 $ 12,017 $ 110,082 June 29, 2019 Amortized Cost Basis Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-Term Marketable Securities Long-Term Marketable Securities (In thousands) Corporate bonds $ 87,540 $ 1,734 $ — $ 89,274 $ 12,006 $ 77,268 Government bonds 28,900 1,845 — 30,745 — 30,745 Total marketable securities $ 116,440 $ 3,579 $ — $ 120,019 $ 12,006 $ 108,013 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of September 28, 2019 are presented below: Maturity Date of the Hedging Instrument Currency / Unit of Measure Notional Value (In millions) Hedging of interest rate risk October 2020 U.S. Dollar 750 July 2021 U.S. Dollar 500 June 2023 Euro 500 March 2025 U.S. Dollar 500 Hedging of foreign currency risk Various (September 30, 2019 to January 2020) Swedish Krona 280 Various (October 2019 to June 2020) British Pound Sterling 23 June 2021 Canadian Dollar 187 July 2021 British Pound Sterling 234 August 2021 British Pound Sterling 466 June 2023 Euro 500 Hedging of fuel risk Various (September 30, 2019 to September 2020) Gallons 55 |
Derivatives balance sheet location table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of September 28, 2019 and June 29, 2019 are as follows: Derivative Fair Value Balance Sheet location Sep. 28, 2019 Jun. 29, 2019 (In thousands) Fair Value Hedges: Interest rate swaps Other assets $ 44,407 $ 37,396 Interest rate swaps Other long-term liabilities 6,061 9,285 Cash Flow Hedges: Fuel Swaps Other current assets $ 16 $ 154 Foreign currency forwards Other current assets 275 624 Fuel swaps Other assets — 136 Cross currency swaps Other assets 21,046 8,592 Fuel Swaps Other current liabilities 6,262 6,537 Foreign currency forwards Other current liabilities 591 162 Fuel swaps Other long-term liabilities 28 239 Net Investment Hedges: Foreign currency swaps Other assets $ 28,171 $ 18,614 Foreign currency swaps Other long-term liabilities — 9,973 The location and carrying amount of hedged liabilities in the consolidated balance sheet as of September 28, 2019 are as follows: Sep. 28, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,312,113 ) $ (38,795 ) The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 29, 2019 are as follows: Jun. 29, 2019 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Long-term debt $ (2,311,636 ) $ (28,616 ) |
Schedule of location and effect of derivative instruments and related hedged items | The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows: 13-Week Period Ended Sep. 28, 2019 Cost of Sales 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 $ 12,359,635 $ 2,275,052 $ 83,335 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (24,736 ) Derivatives designated as hedging instruments — — 8,857 (1) The hedged total includes interest expense of $14.6 million and change in fair value of debt of $10.2 million . 13-Week Period Ended Sep. 29, 2018 Cost of Sales 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 $ 12,311,494 $ 2,275,645 $ 89,016 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items (1) $ — $ — $ (8,588 ) Derivatives designated as hedging instruments — — (10,859 ) (1) The hedged total includes interest expense of $15.1 million and change in fair value of debt of $6.5 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 September 28, 2019 and September 29, 2018 , presented on a pretax basis, are as follows: 13-Week Period Ended Sep. 28, 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 $ 344 Operating expense $ (3,406 ) Foreign currency contracts 12,307 Cost of sales 2 Total $ 12,651 $ (3,404 ) Derivatives in net investment hedging relationships: Foreign currency contracts $ 20,852 N/A $ — Foreign denominated debt 21,450 N/A — Total $ 42,302 $ — 13-Week Period Ended Sep. 29, 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 $ 1,026 Operating expense $ 4,353 Foreign currency contracts (4,803 ) Cost of sales 483 Total $ (3,777 ) $ 4,836 Derivatives in net investment hedging relationships: Foreign currency contracts $ 7,228 N/A $ — Foreign denominated debt 3,950 N/A — Total $ 11,178 $ — |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Schedule of Leases, Financial Statement Presentation | The following table presents the location of the finance lease ROU assets and lease liabilities in the company’s Consolidated Balance Sheet at September 28, 2019 : Consolidated Balance Sheet Location September 28, 2019 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 92,052 Current finance lease liabilities Current maturities of long-term debt 27,300 Long-term finance lease liabilities Long-term debt 69,213 |
Schedule of Lease Costs | The following table presents lease costs for the 13 -week period ended September 28, 2019 : Consolidated Results of Operations Location 13-Week Period Ended Sep. 28, 2019 (In thousands) Operating lease cost Operating expenses $ 30,425 Financing lease cost: Amortization of right-of-use assets Operating expenses 8,613 Interest on lease obligations Interest expense 1,182 Variable lease cost Operating expenses 468 Short-term lease cost Operating expenses 2,896 Net lease cost $ 43,584 Other information related to lease agreements was as follows: 13-Week Period Ended Sep. 28, 2019 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 30,597 Operating cash flows for financing leases 1,182 Financing cash flows for financing leases 7,232 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 5,781 Assets obtained in exchange for finance lease obligations 1,553 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.35 years Financing leases 4.34 years Weighted-average discount rate: Operating leases 2.39 % Financing leases 4.96 % |
Schedule of Minimum Operating Lease Obligations | Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of September 28, 2019 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 88,622 $ 24,112 2021 109,589 27,829 2022 84,288 20,370 2023 68,088 14,046 2024 46,874 8,912 2025 43,721 5,742 Thereafter 322,335 6,378 Total undiscounted lease obligations 763,517 107,389 Less imputed interest (115,407 ) (10,876 ) Present value of lease obligations $ 648,110 $ 96,513 |
Schedule of Minimum Finance Lease Obligations | Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of September 28, 2019 are as follows: Operating Leases Finance Leases (In thousands) Remainder of fiscal 2020 $ 88,622 $ 24,112 2021 109,589 27,829 2022 84,288 20,370 2023 68,088 14,046 2024 46,874 8,912 2025 43,721 5,742 Thereafter 322,335 6,378 Total undiscounted lease obligations 763,517 107,389 Less imputed interest (115,407 ) (10,876 ) Present value of lease obligations $ 648,110 $ 96,513 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 28, 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 Sep. 28, 2019 Sep. 29, 2018 (In thousands, except for share Numerator: Net earnings $ 453,781 $ 431,042 Denominator: Weighted-average basic shares outstanding 513,496,296 520,856,599 Dilutive effect of share-based awards 5,265,160 8,177,871 Weighted-average diluted shares outstanding 518,761,456 529,034,470 Basic earnings per share $ 0.88 $ 0.83 Diluted earnings per share $ 0.87 $ 0.81 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Sep. 28, 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 Sep. 28, 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 $ 1,905 $ 477 $ 1,428 Amortization of actuarial loss, net Other expense, net 8,942 2,259 6,683 Total reclassification adjustments 10,847 2,736 8,111 Foreign currency translation: Foreign currency translation adjustment N/A (126,159 ) — (126,159 ) Marketable securities: Change in marketable securities (1) N/A 1,181 248 933 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) 12,651 3,392 9,259 Change in net investment hedges N/A 42,302 12,302 30,000 Total other comprehensive income (loss) before reclassification adjustments 54,953 15,694 39,259 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,874 719 2,155 Total other comprehensive (loss) income $ (56,304 ) $ 19,397 $ (75,701 ) (1) Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first quarter of 2020 . (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 13-Week Period Ended Sep. 29, 2018 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) gain, arising in the current year $ (36,891 ) $ (4,380 ) $ (32,511 ) Reclassification adjustments: Amortization of prior service cost Other expense, net 2,133 533 1,600 Amortization of actuarial loss (gain), net Other expense, net 8,706 2,177 6,529 Total reclassification adjustments 10,839 2,710 8,129 Foreign currency translation: Other comprehensive income (loss) before Foreign currency translation adjustment N/A (24,927 ) — (24,927 ) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (3,777 ) (769 ) (3,008 ) Change in net investment hedges N/A 11,178 2,590 8,588 Total other comprehensive income (loss) before reclassification adjustments 7,401 1,821 5,580 Reclassification adjustments: Amortization of cash flow hedges Interest expense 2,873 718 2,155 Total other comprehensive income (loss) $ (40,705 ) $ 869 $ (41,574 ) (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: 13-Week Period Ended Sep. 28, 2019 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, Marketable Securities, net of tax Total (In thousands) Balance as of Jun. 29, 2019 $ (1,217,617 ) $ (290,169 ) $ (94,770 ) $ 2,827 $ (1,599,729 ) Equity adjustment from foreign currency translation — (126,159 ) — — (126,159 ) Amortization of cash flow hedges — — 2,155 — 2,155 Change in net investment hedges — — 30,000 — 30,000 Change in cash flow hedge — — 9,259 — 9,259 Amortization of unrecognized prior service cost 1,428 — — — 1,428 Amortization of unrecognized net actuarial losses 6,683 — — — 6,683 Change in marketable securities — — — 933 933 Balance as of Sep. 28, 2019 $ (1,209,506 ) $ (416,328 ) $ (53,356 ) $ 3,760 $ (1,675,430 ) 13-Week Period Ended Sep. 29, 2018 Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, 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 — (24,927 ) — (24,927 ) Amortization of cash flow hedges — — 2,155 2,155 Change in net investment hedges — — 8,588 8,588 Change in cash flow hedges — — (3,008 ) (3,008 ) Net actuarial loss (32,511 ) — — (32,511 ) Amortization of unrecognized prior service cost 1,600 — — 1,600 Amortization of unrecognized net actuarial losses 6,529 — — 6,529 Balance as of Sep. 29, 2018 $ (1,119,441 ) $ (195,970 ) $ (135,432 ) $ (1,450,843 ) |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Sep. 28, 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 Sep. 28, 2019 Sep. 29, 2018 Sales: (In thousands) U.S. Foodservice Operations $ 10,658,633 $ 10,399,411 International Foodservice Operations 2,912,388 2,920,950 SYGMA 1,446,994 1,621,457 Other 284,990 273,461 Total $ 15,303,005 $ 15,215,279 13-Week Period Ended Sep. 28, 2019 Sep. 29, 2018 Operating income: (In thousands) U.S. Foodservice Operations $ 861,406 $ 815,758 International Foodservice Operations 54,800 66,772 SYGMA 7,570 2,431 Other 10,137 10,335 Total segments 933,913 895,296 Corporate (265,595 ) (267,156 ) Total operating income 668,318 628,140 Interest expense 83,335 89,016 Other expense (income), net 3,112 1,132 Earnings before income taxes $ 581,871 $ 537,992 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information - Subsidiary Guarantees (Tables) | 3 Months Ended |
Sep. 28, 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 Sep. 28, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 172,317 $ 4,548,019 $ 3,763,828 $ — $ 8,484,164 Intercompany receivables 6,517,293 148,589 3,229,688 (9,895,570 ) — Investment in subsidiaries 5,305,887 — 1,255,862 (6,561,749 ) — Plant and equipment, net 242,040 2,184,301 2,066,675 — 4,493,016 Other assets 817,530 729,136 4,974,095 (541,366 ) 5,979,395 Total assets $ 13,055,067 $ 7,610,045 $ 15,290,148 $ (16,998,685 ) $ 18,956,575 Current liabilities $ 443,234 $ 1,061,795 $ 4,596,442 $ — $ 6,101,471 Intercompany payables 1,307,665 3,261,317 5,326,588 (9,895,570 ) — Long-term debt 8,192,123 10,747 434,836 — 8,637,706 Other liabilities 657,297 551,789 1,061,902 (541,366 ) 1,729,622 Noncontrolling interest — — 33,028 — 33,028 Shareholders’ equity 2,454,748 2,724,397 3,837,352 (6,561,749 ) 2,454,748 Total liabilities and shareholders’ equity $ 13,055,067 $ 7,610,045 $ 15,290,148 $ (16,998,685 ) $ 18,956,575 Condensed Consolidated Balance Sheet Jun. 29, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Current assets $ 121,993 $ 4,195,543 $ 3,823,969 $ — $ 8,141,505 Intercompany receivables 6,162,303 30,469 3,220,237 (9,413,009 ) — Investment in subsidiaries 4,680,530 — 1,126,315 (5,806,845 ) — Plant and equipment, net 252,101 2,162,668 2,086,936 — 4,501,705 Other assets 787,986 718,600 4,372,725 (555,999 ) 5,323,312 Total assets $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 Current liabilities $ 465,101 $ 1,018,650 $ 4,619,432 $ — $ 6,103,183 Intercompany payables 686,116 3,443,182 5,283,711 (9,413,009 ) — Long-term debt 7,668,314 7,938 445,806 — 8,122,058 Other liabilities 682,779 545,391 531,081 (555,999 ) 1,203,252 Noncontrolling interest — — 35,426 — 35,426 Shareholders’ equity 2,502,603 2,092,119 3,714,726 (5,806,845 ) 2,502,603 Total liabilities and shareholders’ equity $ 12,004,913 $ 7,107,280 $ 14,630,182 $ (15,775,853 ) $ 17,966,522 |
Condensed consolidating statement of comprehensive income table | Condensed Consolidated Statement of Comprehensive Income For the 13-Week Period Ended Sep. 28, 2019 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,810,408 $ 6,043,288 $ (550,691 ) $ 15,303,005 Cost of sales — 7,910,440 4,999,886 (550,691 ) 12,359,635 Gross profit — 1,899,968 1,043,402 — 2,943,370 Operating expenses 198,840 1,075,837 1,000,375 — 2,275,052 Operating income (loss) (198,840 ) 824,131 43,027 — 668,318 Interest expense (income) (1) 107,336 (20,528 ) (3,473 ) — 83,335 Other expense (income), net 7,053 (167 ) (3,774 ) — 3,112 Earnings (losses) before income taxes (313,229 ) 844,826 50,274 — 581,871 Income tax (benefit) provision (98,500 ) 212,546 14,044 — 128,090 Equity in earnings of subsidiaries 668,510 — 129,548 (798,058 ) — Net earnings 453,781 632,280 165,778 (798,058 ) 453,781 Other comprehensive income (loss) (75,701 ) — (126,159 ) 126,159 (75,701 ) Comprehensive income $ 378,080 $ 632,280 $ 39,619 $ (671,899 ) $ 378,080 (1) Interest expense (income) includes $20.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the first quarter ended September 28, 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 Sep. 29, 2018 Sysco Certain U.S. Other Eliminations Consolidated (In thousands) Sales $ — $ 9,479,806 $ 6,234,158 $ (498,685 ) $ 15,215,279 Cost of sales — 7,660,101 5,150,078 (498,685 ) 12,311,494 Gross profit — 1,819,705 1,084,080 — 2,903,785 Operating expenses 220,281 1,052,350 1,003,014 — 2,275,645 Operating income (loss) (220,281 ) 767,355 81,066 — 628,140 Interest expense (income) (1) 41,413 (21,538 ) 69,141 — 89,016 Other expense (income), net 6,600 (54 ) (5,414 ) — 1,132 Earnings (losses) before income taxes (268,294 ) 788,947 17,339 — 537,992 Income tax (benefit) provision (93,587 ) 196,445 4,092 — 106,950 Equity in earnings of subsidiaries 605,750 — 94,341 (700,091 ) — Net earnings 431,043 592,502 107,588 (700,091 ) 431,042 Other comprehensive income (loss) (41,574 ) — (24,927 ) 24,927 (41,574 ) Comprehensive income $ 389,469 $ 592,502 $ 82,661 $ (675,164 ) $ 389,468 (1) Interest expense (income) includes $21.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the first quarter ended September 29, 2018 . There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries. |
Condensed consolidating cash flows table | Condensed Consolidated Cash Flows For the 13-Week Period Ended Sep. 28, 2019 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 11,776 $ 69,098 $ 90,705 $ — $ 171,579 Investing activities (49,434 ) (85,903 ) (128,923 ) 17,636 (246,624 ) Financing activities 109,226 742 (29,627 ) (17,636 ) 62,705 Effect of exchange rates on cash — — (5,485 ) — (5,485 ) Net increase (decrease) in cash, cash equivalents and restricted cash 71,568 (16,063 ) (73,330 ) — (17,825 ) Cash, cash equivalents and restricted cash at the beginning of period 29,868 117,643 384,734 — 532,245 Cash, cash equivalents and restricted cash at the end of period $ 101,436 $ 101,580 $ 311,404 $ — $ 514,420 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. Condensed Consolidated Cash Flows For the 13-Week Period Ended Sep. 29, 2018 Sysco Certain U.S. Other Elimination (1) Consolidated (In thousands) Cash flows provided by (used for): Operating activities $ 167,767 $ 69,459 $ 33,919 $ — $ 271,145 Investing activities 361,777 (42,188 ) (12,229 ) (406,931 ) (99,571 ) Financing activities (332,988 ) (1,581 ) (3,974 ) 406,931 68,388 Effect of exchange rates on cash — — (2,435 ) — (2,435 ) Net increase (decrease) in cash, cash equivalents and restricted cash 196,556 25,690 15,281 — 237,527 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 $ 225,700 $ 137,533 $ 590,138 $ — $ 953,371 (1) Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 455,482 | $ 513,460 | $ 790,304 | |
Restricted cash | 58,938 | 163,067 | ||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows | $ 514,420 | $ 532,245 | $ 953,371 | $ 715,844 |
Changes in Accounting (Details)
Changes in Accounting (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets, net | $ 626,580 | |
Present value of lease obligations | $ 648,110 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets, net | $ 647,200 | |
Present value of lease obligations | $ 657,900 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Customer receivables included in accounts and notes receivable, net | $ 4,100,000 | $ 3,900,000 | |
Revenue | 15,303,005 | $ 15,215,279 | |
Fresh and frozen meats | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,868,832 | 2,914,307 | |
Canned and dry products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,522,704 | 2,541,259 | |
Frozen fruits, vegetables, bakery and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,255,687 | 2,343,809 | |
Dairy products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,606,480 | 1,559,557 | |
Poultry | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,512,975 | 1,514,579 | |
Fresh produce | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,316,855 | 1,259,973 | |
Paper and disposables | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,003,691 | 1,020,323 | |
Seafood | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 859,855 | 875,508 | |
Beverage products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 591,645 | 513,114 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 764,281 | 672,850 | |
U.S. Foodservice Operations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10,658,633 | 10,399,411 | |
U.S. Foodservice Operations | Fresh and frozen meats | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,075,300 | 2,121,517 | |
U.S. Foodservice Operations | Canned and dry products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,898,889 | 1,852,168 | |
U.S. Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,449,218 | 1,423,386 | |
U.S. Foodservice Operations | Dairy products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,148,381 | 1,086,404 | |
U.S. Foodservice Operations | Poultry | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,090,106 | 1,026,936 | |
U.S. Foodservice Operations | Fresh produce | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 998,164 | 937,580 | |
U.S. Foodservice Operations | Paper and disposables | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 719,540 | 710,759 | |
U.S. Foodservice Operations | Seafood | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 685,410 | 661,687 | |
U.S. Foodservice Operations | Beverage products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 290,785 | 290,571 | |
U.S. Foodservice Operations | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 302,840 | 288,403 | |
International Foodservice Operations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,912,388 | 2,920,950 | |
International Foodservice Operations | Fresh and frozen meats | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 412,155 | 420,456 | |
International Foodservice Operations | Canned and dry products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 586,625 | 611,470 | |
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 552,014 | 628,559 | |
International Foodservice Operations | Dairy products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 312,178 | 318,347 | |
International Foodservice Operations | Poultry | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 218,600 | 215,582 | |
International Foodservice Operations | Fresh produce | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 257,758 | 257,544 | |
International Foodservice Operations | Paper and disposables | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 98,342 | 104,539 | |
International Foodservice Operations | Seafood | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 149,590 | 188,436 | |
International Foodservice Operations | Beverage products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 132,852 | 52,069 | |
International Foodservice Operations | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 192,274 | 123,948 | |
SYGMA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,446,994 | 1,621,457 | |
SYGMA | Fresh and frozen meats | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 381,377 | 372,334 | |
SYGMA | Canned and dry products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 37,190 | 77,621 | |
SYGMA | Frozen fruits, vegetables, bakery and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 254,455 | 291,864 | |
SYGMA | Dairy products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 145,921 | 154,806 | |
SYGMA | Poultry | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 204,269 | 272,061 | |
SYGMA | Fresh produce | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 60,933 | 64,849 | |
SYGMA | Paper and disposables | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 168,436 | 188,616 | |
SYGMA | Seafood | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24,855 | 25,385 | |
SYGMA | Beverage products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 143,679 | 147,294 | |
SYGMA | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 25,879 | 26,627 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 284,990 | 273,461 | |
Other | Fresh and frozen meats | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Canned and dry products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Frozen fruits, vegetables, bakery and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Dairy products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Poultry | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Fresh produce | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Paper and disposables | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17,373 | 16,409 | |
Other | Seafood | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Other | Beverage products | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 24,329 | 23,180 | |
Other | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 243,288 | $ 233,872 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Business Combinations [Abstract] | ||
Acquisition of businesses, net of cash acquired | $ 74,814 | $ 0 |
Contingent consideration maximum number of years (in years) | 3 years | |
Potential cash payout for contingent consideration arrangements | $ 28,300 | |
Amount of recorded earnout liabilities | $ 21,500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total debt | $ 9,500,000 | $ 8,600,000 |
Carrying value of total debt | 8,700,000 | 8,200,000 |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 110,362 | 73,024 |
Other assets | 58,938 | 18,785 |
Total assets at fair value | 169,300 | 91,809 |
Recurring Fair Value Measurements | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 108,962 | 72,824 |
Other assets | 58,938 | 18,785 |
Total assets at fair value | 167,900 | 91,609 |
Recurring Fair Value Measurements | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 1,400 | 200 |
Other assets | 0 | 0 |
Total assets at fair value | 1,400 | 200 |
Recurring Fair Value Measurements | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
Marketable Securities [Line Items] | |||
Amortized Cost Basis | $ 117,339,000 | $ 116,440,000 | |
Gross Unrealized Gains | 4,762,000 | 3,579,000 | |
Gross Unrealized Losses | (2,000) | 0 | |
Fair Value | $ 122,099,000 | 120,019,000 | |
Realized gain (loss) on marketable securities | $ 0 | ||
Minimum | |||
Marketable Securities [Line Items] | |||
Debt securities maturities | 1 year | ||
Maximum | |||
Marketable Securities [Line Items] | |||
Debt securities maturities | 11 years | ||
Short-Term Marketable Securities | |||
Marketable Securities [Line Items] | |||
Fair Value | $ 12,017,000 | 12,006,000 | |
Long-Term Marketable Securities | |||
Marketable Securities [Line Items] | |||
Fair Value | 110,082,000 | 108,013,000 | |
Corporate bonds | |||
Marketable Securities [Line Items] | |||
Amortized Cost Basis | 88,505,000 | 87,540,000 | |
Gross Unrealized Gains | 2,067,000 | 1,734,000 | |
Gross Unrealized Losses | (2,000) | 0 | |
Fair Value | 90,570,000 | 89,274,000 | |
Corporate bonds | Short-Term Marketable Securities | |||
Marketable Securities [Line Items] | |||
Fair Value | 12,017,000 | 12,006,000 | |
Corporate bonds | Long-Term Marketable Securities | |||
Marketable Securities [Line Items] | |||
Fair Value | 78,553,000 | 77,268,000 | |
Government bonds | |||
Marketable Securities [Line Items] | |||
Amortized Cost Basis | 28,834,000 | 28,900,000 | |
Gross Unrealized Gains | 2,695,000 | 1,845,000 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 31,529,000 | 30,745,000 | |
Government bonds | Short-Term Marketable Securities | |||
Marketable Securities [Line Items] | |||
Fair Value | 0 | 0 | |
Government bonds | Long-Term Marketable Securities | |||
Marketable Securities [Line Items] | |||
Fair Value | $ 31,529,000 | $ 30,745,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Hedging of Debt Portfolio (Details) - 3 months ended Sep. 28, 2019 € in Millions, £ in Millions, kr in Millions, gal in Millions, $ in Millions, $ in Millions | GBP (£)gal | EUR (€) | CAD ($) | USD ($) | SEK (kr) |
Interest rate swap, October 2020 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | $ 750 | ||||
Interest rate swap, July 2021 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | 500 | ||||
Interest rate swaps, June 2023 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | € | € 500 | ||||
Interest rate swap, March 2025 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | $ 500 | ||||
Foreign Currency Interest Rate, Various Maturity Dates | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | £ 23 | kr 280 | |||
Hedging of foreign currency risk, CAD, June 2021 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Value | $ 187 | ||||
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 | ||||
Fuel swaps | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount (in gallons) | gal | 55 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Balance Sheet Disclosures (Details) - Hedging Instrument - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 |
Fair Value Hedging | Interest rate swap agreements | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | $ 44,407 | $ 37,396 |
Fair Value Hedging | Interest rate swap agreements | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 6,061 | 9,285 |
Cash flow hedging | Fuel swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 0 | 136 |
Cash flow hedging | Fuel swaps | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 6,262 | 6,537 |
Cash flow hedging | Fuel swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 28 | 239 |
Cash flow hedging | Fuel swaps | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 16 | 154 |
Cash flow hedging | Foreign currency forwards | Other current liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | 591 | 162 |
Cash flow hedging | Foreign currency forwards | Other current assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 275 | 624 |
Cash flow hedging | Cross-currency swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 21,046 | 8,592 |
Net investment hedging | Foreign currency swaps | Other assets | ||
Derivative [Line Items] | ||
Fair value of derivative assets | 28,171 | 18,614 |
Net investment hedging | Foreign currency swaps | Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities | $ 0 | $ 9,973 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Location of Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative [Line Items] | ||
Cost of sales | $ 12,359,635 | $ 12,311,494 |
Operating expenses | 2,275,052 | 2,275,645 |
Interest expense | 83,335 | 89,016 |
Unrealized gain (loss) on hedged item in fair value hedge, interest expense | 14,600 | 15,100 |
Unrealized gain (loss) on hedged item in fair value hedge, change in fair value of debt | 10,200 | 6,500 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Cost of Sales | ||
Derivative [Line Items] | ||
Gain (loss) on fair value hedging relationship, hedged items | 0 | 0 |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | 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 |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | 0 | 0 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Interest expense | ||
Derivative [Line Items] | ||
Gain (loss) on fair value hedging relationship, hedged items | (24,736) | (8,588) |
Gain (loss) on fair value hedging relationship, designated as hedging instruments | $ 8,857 | $ (10,859) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Cash Flow Hedges (Details) - Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flow hedging | ||
Derivative [Line Items] | ||
Derivatives in cash flow hedging relationships: | $ 12,651 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | $ (3,777) | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (3,404) | 4,836 |
Cash flow hedging | Fuel swaps | ||
Derivative [Line Items] | ||
Derivatives in cash flow hedging relationships: | 344 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 1,026 | |
Cash flow hedging | Fuel swaps | Operating expense | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (3,406) | 4,353 |
Cash flow hedging | Foreign currency swaps | ||
Derivative [Line Items] | ||
Derivatives in cash flow hedging relationships: | 12,307 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (4,803) | |
Cash flow hedging | Foreign currency swaps | Cost of sales | ||
Derivative [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 2 | 483 |
Net investment hedging | ||
Derivative [Line Items] | ||
Derivatives in net investment hedging relationships: | 42,302 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 11,178 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 |
Net investment hedging | Foreign currency swaps | ||
Derivative [Line Items] | ||
Derivatives in net investment hedging relationships: | 20,852 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 7,228 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 |
Net investment hedging | Foreign denominated debt | ||
Derivative [Line Items] | ||
Derivatives in net investment hedging relationships: | 21,450 | |
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 3,950 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Location of Hedged Liabilities (Details) - Long-term debt - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (2,312,113) | $ (2,311,636) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ (38,795) | $ (28,616) |
Debt (Details)
Debt (Details) | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Debt [Line Items] | |
Maximum board-authorized aggregate commercial paper limit | $ 2,000,000,000 |
Aggregate outstanding commercial paper and short-term debt minimum amount outstanding during period | 208,900,000 |
Maximum amount outstanding | 911,300,000 |
Commercial paper | |
Debt [Line Items] | |
Carrying value of total debt | $ 665,400,000 |
Leases - Summary of Balance She
Leases - Summary of Balance Sheet Information (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Leases [Abstract] | |
Finance lease right-of-use assets | $ 92,052 |
Current finance lease liabilities | 27,300 |
Long-term finance lease liabilities | $ 69,213 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 30,425 |
Financing lease cost: | |
Amortization of right-of-use assets | 8,613 |
Interest on lease obligations | 1,182 |
Variable lease cost | 468 |
Short-term lease cost | 2,896 |
Net lease cost | $ 43,584 |
Leases - Future Payments (Detai
Leases - Future Payments (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Operating Leases | |
Remainder of fiscal 2020 | $ 88,622 |
2021 | 109,589 |
2022 | 84,288 |
2023 | 68,088 |
2024 | 46,874 |
2025 | 43,721 |
Thereafter | 322,335 |
Total undiscounted lease obligations | 763,517 |
Less imputed interest | (115,407) |
Present value of lease obligations | 648,110 |
Finance Leases | |
Remainder of fiscal 2020 | 24,112 |
2021 | 27,829 |
2022 | 20,370 |
2023 | 14,046 |
2024 | 8,912 |
2025 | 5,742 |
Thereafter | 6,378 |
Total undiscounted lease obligations | 107,389 |
Less imputed interest | (10,876) |
Present value of lease obligations | $ 96,513 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash Paid For Amounts Included In Measurement of Liabilities: | ||
Operating cash flows for operating leases | $ 30,597 | $ 0 |
Operating cash flows for financing leases | 1,182 | |
Financing cash flows for financing leases | 7,232 | |
Supplemental Non-cash Information on Lease Liabilities: | ||
Assets obtained in exchange for operating lease obligations | 5,781 | |
Assets obtained in exchange for finance lease obligations | $ 1,553 | |
Weighted-average remaining lease term (years): | ||
Operating leases | 11 years 4 months 6 days | |
Financing leases | 4 years 4 months 2 days | |
Weighted-average discount rate: | ||
Operating leases | 2.39% | |
Financing leases | 4.96% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Numerator: | ||
Net earnings | $ 453,781 | $ 431,042 |
Denominator: | ||
Weighted-average basic shares outstanding (in shares) | 513,496,296 | 520,856,599 |
Dilutive effect of share-based awards (in shares) | 5,265,160 | 8,177,871 |
Weighted-average diluted shares outstanding (in shares) | 518,761,456 | 529,034,470 |
Basic earnings per share (in dollars per share) | $ 0.88 | $ 0.83 |
Diluted earnings per share (in dollars per share) | $ 0.87 | $ 0.81 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded (in shares) | 3,321,000 | 1,067,000 |
Other Comprehensive Income - Co
Other Comprehensive Income - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Comprehensive income | $ 378,080 | $ 389,468 |
Before Tax Amount | ||
Total other comprehensive income (loss) | (56,304) | (40,705) |
Tax | ||
Total other comprehensive income (loss) | 19,397 | 869 |
Net of Tax Amount | ||
Total other comprehensive (loss) income | (75,701) | (41,574) |
Pension and other postretirement benefit plans: | Other expense, net | ||
Before Tax Amount | ||
Reclassification adjustments, before tax | 10,847 | 10,839 |
Tax | ||
Amortization of prior service cost | 2,736 | 2,710 |
Net of Tax Amount | ||
Amortization of prior service cost | 8,111 | 8,129 |
Amortization of prior service cost | ||
Net of Tax Amount | ||
Amortization of prior service cost | 1,428 | 1,600 |
Amortization of prior service cost | Other expense, net | ||
Before Tax Amount | ||
Reclassification adjustments, before tax | 1,905 | 2,133 |
Tax | ||
Amortization of prior service cost | 477 | 533 |
Net of Tax Amount | ||
Amortization of prior service cost | 1,428 | 1,600 |
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 | 6,683 | 6,529 |
Foreign currency translation adjustment | (32,511) | |
Amortization of actuarial loss (gain), net | Other expense, net | ||
Before Tax Amount | ||
Reclassification adjustments, before tax | 8,942 | 8,706 |
Tax | ||
Amortization of prior service cost | 2,259 | 2,177 |
Net of Tax Amount | ||
Amortization of prior service cost | 6,683 | 6,529 |
Foreign currency translation: | ||
Before Tax Amount | ||
Other comprehensive income before reclassifications, before tax | (126,159) | (24,927) |
Tax | ||
Foreign currency translation adjustment | 0 | 0 |
Net of Tax Amount | ||
Foreign currency translation adjustment | (126,159) | (24,927) |
Change in marketable securities (1) | ||
Before Tax Amount | ||
Other comprehensive income before reclassifications, before tax | 1,181 | |
Tax | ||
Foreign currency translation adjustment | 248 | |
Net of Tax Amount | ||
Foreign currency translation adjustment | 933 | |
Hedging, net of tax | ||
Before Tax Amount | ||
Other comprehensive income before reclassifications, before tax | 54,953 | 7,401 |
Tax | ||
Foreign currency translation adjustment | 15,694 | 1,821 |
Net of Tax Amount | ||
Foreign currency translation adjustment | 39,259 | 5,580 |
Amortization of cash flow hedges | ||
Net of Tax Amount | ||
Amortization of prior service cost | 2,155 | |
Foreign currency translation adjustment | 9,259 | |
Amortization of cash flow hedges | Operating expenses | ||
Before Tax Amount | ||
Other comprehensive income before reclassifications, before tax | 12,651 | |
Tax | ||
Foreign currency translation adjustment | 3,392 | |
Net of Tax Amount | ||
Foreign currency translation adjustment | 9,259 | |
Amortization of cash flow hedges | Interest expense | ||
Before Tax Amount | ||
Reclassification adjustments, before tax | 2,874 | |
Tax | ||
Amortization of prior service cost | 719 | |
Net of Tax Amount | ||
Amortization of prior service cost | 2,155 | |
Amortization of cash flow hedges | ||
Net of Tax Amount | ||
Amortization of prior service cost | 2,155 | |
Foreign currency translation adjustment | (3,008) | |
Amortization of cash flow hedges | Operating expenses | ||
Before Tax Amount | ||
Other comprehensive income before reclassifications, before tax | (3,777) | |
Tax | ||
Foreign currency translation adjustment | (769) | |
Net of Tax Amount | ||
Foreign currency translation adjustment | (3,008) | |
Amortization of cash flow hedges | Interest expense | ||
Before Tax Amount | ||
Reclassification adjustments, before tax | 2,873 | |
Tax | ||
Amortization of prior service cost | 718 | |
Net of Tax Amount | ||
Amortization of prior service cost | 2,155 | |
Change in net investment hedge | ||
Before Tax Amount | ||
Other comprehensive income before reclassifications, before tax | 42,302 | 11,178 |
Tax | ||
Foreign currency translation adjustment | 12,302 | 2,590 |
Net of Tax Amount | ||
Foreign currency translation adjustment | $ 30,000 | $ 8,588 |
Other Comprehensive Income - Ch
Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance, shareholders' equity | $ 2,502,603 | $ 2,506,957 |
Ending balance, shareholders' equity | 2,454,748 | 2,638,574 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance, shareholders' equity | (1,599,729) | (1,409,269) |
Ending balance, shareholders' equity | (1,675,430) | (1,450,843) |
Pension and Other Postretirement Benefit Plans, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance, shareholders' equity | (1,217,617) | (1,095,059) |
Ending balance, shareholders' equity | (1,209,506) | (1,119,441) |
Net actuarial loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
OCI before reclassifications, net of tax | (32,511) | |
Amortization of prior service cost | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification adjustment, net of tax | 1,428 | 1,600 |
Amortization of unrecognized net actuarial losses | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
OCI before reclassifications, net of tax | (32,511) | |
Reclassification adjustment, net of tax | 6,683 | 6,529 |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance, shareholders' equity | (290,169) | (171,043) |
OCI before reclassifications, net of tax | (126,159) | (24,927) |
Ending balance, shareholders' equity | (416,328) | (195,970) |
Hedging, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance, shareholders' equity | (94,770) | (143,167) |
OCI before reclassifications, net of tax | 39,259 | 5,580 |
Ending balance, shareholders' equity | (53,356) | (135,432) |
Amortization of cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
OCI before reclassifications, net of tax | 9,259 | |
Reclassification adjustment, net of tax | 2,155 | |
Amortization of cash flow hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
OCI before reclassifications, net of tax | (3,008) | |
Reclassification adjustment, net of tax | 2,155 | |
Change in net investment hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
OCI before reclassifications, net of tax | 30,000 | $ 8,588 |
Change in marketable securities (1) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance, shareholders' equity | 2,827 | |
OCI before reclassifications, net of tax | 933 | |
Ending balance, shareholders' equity | $ 3,760 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 2,291,085 | |
Options granted, weighted average grant date fair value (in dollars per share) | $ 10.40 | |
Share-based compensation expense | $ 21,386 | $ 29,193 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 136,800 | |
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 2 years 21 days | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 512,765 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 72.66 | |
Employees' Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 240,802 | |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 10.61 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22.01% | 19.88% |
Effective income tax expense (benefit) attributable to the pension plan | $ (15.7) | |
Excess tax benefits of equity-based compensation and tax law changes in foreign jurisdictions | $ 14.3 | |
Unrecognized tax benefits | 23.9 | |
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 3.8 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($)segment | |
Segment Reporting [Abstract] | ||
Number of reporting segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 15,303,005 | $ 15,215,279 |
Operating income: | 668,318 | 628,140 |
Interest expense | 83,335 | 89,016 |
Other (income) expense, net | 3,112 | 1,132 |
Earnings before income taxes | 581,871 | 537,992 |
U.S. Foodservice Operations | ||
Segment Reporting Information [Line Items] | ||
Sales | 10,658,633 | 10,399,411 |
International Foodservice Operations | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,912,388 | 2,920,950 |
SYGMA | ||
Segment Reporting Information [Line Items] | ||
Sales | 1,446,994 | 1,621,457 |
Other | ||
Segment Reporting Information [Line Items] | ||
Sales | 284,990 | 273,461 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income: | 933,913 | 895,296 |
Operating Segments | U.S. Foodservice Operations | ||
Segment Reporting Information [Line Items] | ||
Operating income: | 861,406 | 815,758 |
Operating Segments | International Foodservice Operations | ||
Segment Reporting Information [Line Items] | ||
Operating income: | 54,800 | 66,772 |
Operating Segments | SYGMA | ||
Segment Reporting Information [Line Items] | ||
Operating income: | 7,570 | 2,431 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Operating income: | 10,137 | 10,335 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income: | $ (265,595) | $ (267,156) |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Subsidiary Guarantees - Narrative (Details) $ in Billions | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Guarantees [Abstract] | |
Senior notes and debentures covered by guarantees | $ 7.5 |
Percentage ownership of subsidiary guarantors by parent | 100.00% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Subsidiary Guarantees - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Jun. 30, 2018 |
Supplemental Guarantor Information [Line Items] | ||||
Current assets | $ 8,484,164 | $ 8,141,505 | ||
Intercompany receivables | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 4,493,016 | 4,501,705 | ||
Other assets | 5,979,395 | 5,323,312 | ||
Total assets | 18,956,575 | 17,966,522 | ||
Current liabilities | 6,101,471 | 6,103,183 | ||
Intercompany payables | 0 | 0 | ||
Long-term debt | 8,637,706 | 8,122,058 | ||
Other liabilities | 1,729,622 | 1,203,252 | ||
Noncontrolling interest | 33,028 | 35,426 | ||
Shareholders’ equity | 2,454,748 | 2,502,603 | $ 2,638,574 | $ 2,506,957 |
Total liabilities and shareholders’ equity | 18,956,575 | 17,966,522 | ||
Reportable Legal Entities | Sysco | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 172,317 | 121,993 | ||
Intercompany receivables | 6,517,293 | 6,162,303 | ||
Investment in subsidiaries | 5,305,887 | 4,680,530 | ||
Plant and equipment, net | 242,040 | 252,101 | ||
Other assets | 817,530 | 787,986 | ||
Total assets | 13,055,067 | 12,004,913 | ||
Current liabilities | 443,234 | 465,101 | ||
Intercompany payables | 1,307,665 | 686,116 | ||
Long-term debt | 8,192,123 | 7,668,314 | ||
Other liabilities | 657,297 | 682,779 | ||
Noncontrolling interest | 0 | 0 | ||
Shareholders’ equity | 2,454,748 | 2,502,603 | ||
Total liabilities and shareholders’ equity | 13,055,067 | 12,004,913 | ||
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 4,548,019 | 4,195,543 | ||
Intercompany receivables | 148,589 | 30,469 | ||
Investment in subsidiaries | 0 | 0 | ||
Plant and equipment, net | 2,184,301 | 2,162,668 | ||
Other assets | 729,136 | 718,600 | ||
Total assets | 7,610,045 | 7,107,280 | ||
Current liabilities | 1,061,795 | 1,018,650 | ||
Intercompany payables | 3,261,317 | 3,443,182 | ||
Long-term debt | 10,747 | 7,938 | ||
Other liabilities | 551,789 | 545,391 | ||
Noncontrolling interest | 0 | 0 | ||
Shareholders’ equity | 2,724,397 | 2,092,119 | ||
Total liabilities and shareholders’ equity | 7,610,045 | 7,107,280 | ||
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 3,763,828 | 3,823,969 | ||
Intercompany receivables | 3,229,688 | 3,220,237 | ||
Investment in subsidiaries | 1,255,862 | 1,126,315 | ||
Plant and equipment, net | 2,066,675 | 2,086,936 | ||
Other assets | 4,974,095 | 4,372,725 | ||
Total assets | 15,290,148 | 14,630,182 | ||
Current liabilities | 4,596,442 | 4,619,432 | ||
Intercompany payables | 5,326,588 | 5,283,711 | ||
Long-term debt | 434,836 | 445,806 | ||
Other liabilities | 1,061,902 | 531,081 | ||
Noncontrolling interest | 33,028 | 35,426 | ||
Shareholders’ equity | 3,837,352 | 3,714,726 | ||
Total liabilities and shareholders’ equity | 15,290,148 | 14,630,182 | ||
Eliminations | ||||
Supplemental Guarantor Information [Line Items] | ||||
Current assets | 0 | 0 | ||
Intercompany receivables | (9,895,570) | (9,413,009) | ||
Investment in subsidiaries | (6,561,749) | (5,806,845) | ||
Plant and equipment, net | 0 | 0 | ||
Other assets | (541,366) | (555,999) | ||
Total assets | (16,998,685) | (15,775,853) | ||
Current liabilities | 0 | 0 | ||
Intercompany payables | (9,895,570) | (9,413,009) | ||
Long-term debt | 0 | 0 | ||
Other liabilities | (541,366) | (555,999) | ||
Noncontrolling interest | 0 | 0 | ||
Shareholders’ equity | (6,561,749) | (5,806,845) | ||
Total liabilities and shareholders’ equity | $ (16,998,685) | $ (15,775,853) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Subsidiary Guarantees - Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Supplemental Guarantor Information [Line Items] | ||
Sales | $ 15,303,005 | $ 15,215,279 |
Cost of sales | 12,359,635 | 12,311,494 |
Gross profit | 2,943,370 | 2,903,785 |
Operating expenses | 2,275,052 | 2,275,645 |
Operating income | 668,318 | 628,140 |
Interest expense (income) | 83,335 | 89,016 |
Other (income) expense, net | 3,112 | 1,132 |
Earnings before income taxes | 581,871 | 537,992 |
Income tax (benefit) provision | 128,090 | 106,950 |
Equity in earnings of subsidiaries | 0 | 0 |
Net earnings | 453,781 | 431,042 |
Other comprehensive income (loss) | (75,701) | (41,574) |
Comprehensive income | 378,080 | 389,468 |
Reportable Legal Entities | Sysco | ||
Supplemental Guarantor Information [Line Items] | ||
Sales | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Operating expenses | 198,840 | 220,281 |
Operating income | (198,840) | (220,281) |
Interest expense (income) | 107,336 | 41,413 |
Other (income) expense, net | 7,053 | 6,600 |
Earnings before income taxes | (313,229) | (268,294) |
Income tax (benefit) provision | (98,500) | (93,587) |
Equity in earnings of subsidiaries | 668,510 | 605,750 |
Net earnings | 453,781 | 431,043 |
Other comprehensive income (loss) | (75,701) | (41,574) |
Comprehensive income | 378,080 | 389,469 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Sales | 9,810,408 | 9,479,806 |
Cost of sales | 7,910,440 | 7,660,101 |
Gross profit | 1,899,968 | 1,819,705 |
Operating expenses | 1,075,837 | 1,052,350 |
Operating income | 824,131 | 767,355 |
Interest expense (income) | (20,528) | (21,538) |
Other (income) expense, net | (167) | (54) |
Earnings before income taxes | 844,826 | 788,947 |
Income tax (benefit) provision | 212,546 | 196,445 |
Equity in earnings of subsidiaries | 0 | 0 |
Net earnings | 632,280 | 592,502 |
Other comprehensive income (loss) | 0 | 0 |
Comprehensive income | 632,280 | 592,502 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Sales | 6,043,288 | 6,234,158 |
Cost of sales | 4,999,886 | 5,150,078 |
Gross profit | 1,043,402 | 1,084,080 |
Operating expenses | 1,000,375 | 1,003,014 |
Operating income | 43,027 | 81,066 |
Interest expense (income) | (3,473) | 69,141 |
Other (income) expense, net | (3,774) | (5,414) |
Earnings before income taxes | 50,274 | 17,339 |
Income tax (benefit) provision | 14,044 | 4,092 |
Equity in earnings of subsidiaries | 129,548 | 94,341 |
Net earnings | 165,778 | 107,588 |
Other comprehensive income (loss) | (126,159) | (24,927) |
Comprehensive income | 39,619 | 82,661 |
Eliminations | ||
Supplemental Guarantor Information [Line Items] | ||
Sales | (550,691) | (498,685) |
Cost of sales | (550,691) | (498,685) |
Gross profit | 0 | 0 |
Operating expenses | 0 | 0 |
Operating income | 0 | 0 |
Interest expense (income) | 0 | 0 |
Other (income) expense, net | 0 | 0 |
Earnings before income taxes | 0 | 0 |
Income tax (benefit) provision | 0 | 0 |
Equity in earnings of subsidiaries | (798,058) | (700,091) |
Net earnings | (798,058) | (700,091) |
Other comprehensive income (loss) | 126,159 | 24,927 |
Comprehensive income | (671,899) | (675,164) |
Eliminations | Other Non-Guarantor Subsidiaries | ||
Supplemental Guarantor Information [Line Items] | ||
Interest expense (income) | $ 0 | $ 0 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Subsidiary Guarantees - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows provided by (used for): | ||
Operating activities | $ 171,579 | $ 271,145 |
Investing activities | (246,624) | (99,571) |
Financing activities | 62,705 | 68,388 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (5,485) | (2,435) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (17,825) | 237,527 |
Cash, cash equivalents and restricted cash at beginning of period | 532,245 | 715,844 |
Cash, cash equivalents and restricted cash at end of period | 514,420 | 953,371 |
Reportable Legal Entities | Sysco | ||
Cash flows provided by (used for): | ||
Operating activities | 11,776 | 167,767 |
Investing activities | (49,434) | 361,777 |
Financing activities | 109,226 | (332,988) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 71,568 | 196,556 |
Cash, cash equivalents and restricted cash at beginning of period | 29,868 | 29,144 |
Cash, cash equivalents and restricted cash at end of period | 101,436 | 225,700 |
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries | ||
Cash flows provided by (used for): | ||
Operating activities | 69,098 | 69,459 |
Investing activities | (85,903) | (42,188) |
Financing activities | 742 | (1,581) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (16,063) | 25,690 |
Cash, cash equivalents and restricted cash at beginning of period | 117,643 | 111,843 |
Cash, cash equivalents and restricted cash at end of period | 101,580 | 137,533 |
Reportable Legal Entities | Other Non-Guarantor Subsidiaries | ||
Cash flows provided by (used for): | ||
Operating activities | 90,705 | 33,919 |
Investing activities | (128,923) | (12,229) |
Financing activities | (29,627) | (3,974) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (5,485) | (2,435) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (73,330) | 15,281 |
Cash, cash equivalents and restricted cash at beginning of period | 384,734 | 574,857 |
Cash, cash equivalents and restricted cash at end of period | 311,404 | 590,138 |
Eliminations | ||
Cash flows provided by (used for): | ||
Operating activities | 0 | 0 |
Investing activities | 17,636 | (406,931) |
Financing activities | (17,636) | 406,931 |
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 |