Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 27, 2020 | Aug. 07, 2020 | Dec. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 27, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-6544 | ||
Entity Registrant Name | Sysco Corporation | ||
Entity Central Index Key | 0000096021 | ||
Current Fiscal Year End Date | --06-27 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 74-1648137 | ||
Entity Address, Address Line One | 1390 Enclave Parkway | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77077-2099 | ||
City Area Code | 281 | ||
Local Phone Number | 584-1390 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 41,443,388,035 | ||
Entity Common Stock, Shares Outstanding | 508,535,623 | ||
Documents Incorporated by Reference | Portions of the company’s 2020 Proxy Statement to be filed with the Securities and Exchange Commission no later than 120 days after the end of the fiscal year covered by this Form 10-K are incorporated by reference into Part III. | ||
Common Stock, $1.00 Par Value | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $1.00 Par Value | ||
Trading Symbol | SYY | ||
Security Exchange Name | NYSE | ||
1.25% Notes due June 2023 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.25% Notes due June 2023 | ||
Trading Symbol | SYY 23 | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Current assets | ||
Cash and cash equivalents | $ 6,059,427 | $ 513,460 |
Accounts receivable, less allowances of $334,810 and $28,176 | 2,893,551 | 4,181,696 |
Inventories | 3,095,085 | 3,216,034 |
Prepaid expenses and other current assets | 192,163 | 210,582 |
Income tax receivable | 108,006 | 19,733 |
Total current assets | 12,348,232 | 8,141,505 |
Plant and equipment at cost, less accumulated depreciation | 4,458,567 | |
Plant and equipment at cost, less accumulated depreciation | 4,458,567 | 4,501,705 |
Other long-term assets | ||
Goodwill | 3,732,469 | 3,896,226 |
Intangibles, less amortization | 780,172 | 857,301 |
Deferred income taxes | 194,115 | 80,760 |
Operating lease right-of-use assets, net | 603,616 | |
Other assets | 511,095 | 489,025 |
Total other long-term assets | 5,821,467 | 5,323,312 |
Total assets | 22,628,266 | 17,966,522 |
Current liabilities | ||
Notes payable | 2,266 | 3,957 |
Accounts payable | 3,447,065 | 4,314,620 |
Accrued expenses | 1,616,289 | 1,729,941 |
Accrued income taxes | 2,938 | 17,343 |
Current operating lease liabilities | 107,167 | |
Current maturities of long-term debt | 1,542,128 | 37,322 |
Total current liabilities | 6,717,853 | 6,103,183 |
Long-term liabilities | ||
Long-term debt | 12,902,485 | 8,122,058 |
Deferred income taxes | 86,601 | 172,232 |
Long-term operating lease liabilities | 523,496 | |
Other long-term liabilities | 1,204,953 | 1,031,020 |
Total long-term liabilities | 14,717,535 | 9,325,310 |
Commitments and contingencies | ||
Noncontrolling interest | 34,265 | 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 | 1,506,901 | 1,457,419 |
Retained earnings | 10,563,008 | 11,229,679 |
Accumulated other comprehensive loss | (1,710,881) | (1,599,729) |
Treasury stock at cost, 256,915,825 and 252,297,926 shares | (9,965,590) | (9,349,941) |
Total shareholders’ equity | 1,158,613 | 2,502,603 |
Total liabilities and shareholders’ equity | $ 22,628,266 | $ 17,966,522 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 334,810 | $ 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) | 256,915,825 | 252,297,926 |
CONSOLIDATED RESULTS OF OPERATI
CONSOLIDATED RESULTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 8,866,564 | $ 13,698,699 | $ 15,025,042 | $ 15,303,005 | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 52,893,310 | $ 60,113,922 | $ 58,727,324 |
Cost of sales | 7,300,909 | 11,134,459 | 12,196,643 | 12,359,635 | 12,495,670 | 11,903,776 | 11,993,995 | 12,311,494 | 42,991,646 | 48,704,935 | 47,641,933 |
Gross profit | 1,565,655 | 2,564,240 | 2,828,399 | 2,943,370 | 2,979,192 | 2,754,298 | 2,771,712 | 2,903,785 | 9,901,664 | 11,408,987 | 11,085,391 |
Operating expenses | 2,097,235 | 2,503,966 | 2,275,906 | 2,275,052 | 2,258,662 | 2,224,713 | 2,319,817 | 2,275,645 | 9,152,159 | 9,078,837 | 8,771,335 |
Operating income | (531,580) | 60,274 | 552,493 | 668,318 | 720,530 | 529,585 | 451,895 | 628,140 | 749,505 | 2,330,150 | 2,314,056 |
Interest expense | 164,269 | 83,854 | 76,762 | 83,335 | 89,780 | 94,514 | 87,113 | 89,016 | 408,220 | 360,423 | 395,483 |
Other expense (income), net | 40,396 | 5,200 | (807) | 3,112 | (51,558) | 4,120 | 10,197 | 1,132 | 47,901 | (36,109) | (37,651) |
Earnings before income taxes | (736,245) | (28,780) | 476,538 | 581,871 | 682,308 | 430,951 | 354,585 | 537,992 | 293,384 | 2,005,836 | 1,956,224 |
Income taxes | (117,826) | (25,483) | 93,128 | 128,090 | 146,542 | (9,132) | 87,205 | 106,950 | 77,909 | 331,565 | 525,458 |
Net earnings | $ (618,419) | $ (3,297) | $ 383,410 | $ 453,781 | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 215,475 | $ 1,674,271 | $ 1,430,766 |
Net earnings: | |||||||||||
Basic earnings per share (in dollars per share) | $ (1.22) | $ (0.01) | $ 0.75 | $ 0.88 | $ 1.04 | $ 0.86 | $ 0.52 | $ 0.83 | $ 0.42 | $ 3.24 | $ 2.74 |
Diluted earnings per share (in dollars per share) | $ (1.22) | $ (0.01) | $ 0.74 | $ 0.87 | $ 1.03 | $ 0.85 | $ 0.51 | $ 0.81 | $ 0.42 | $ 3.20 | $ 2.70 |
Average shares outstanding (in shares) | 510,121,071 | 516,890,581 | 522,926,914 | ||||||||
Diluted shares outstanding (in shares) | 514,025,974 | 523,381,124 | 529,089,854 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 215,475 | $ 1,674,271 | $ 1,430,766 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (112,215) | (119,126) | (22,987) |
Items presented net of tax: | |||
Amortization of cash flow hedges | 8,620 | 8,620 | 8,240 |
Change in net investment hedges | 43,529 | 43,839 | 5,791 |
Change in cash flow hedges | (7,257) | (4,062) | 14,343 |
Amortization of prior service cost | 5,712 | 6,400 | 6,905 |
Amortization of actuarial loss | 38,934 | 26,116 | 25,110 |
Actuarial loss | (92,743) | (155,074) | 52,511 |
Change in marketable securities | 4,268 | 2,827 | 0 |
Total other comprehensive (loss) income | (111,152) | (190,460) | 89,913 |
Comprehensive income | $ 104,323 | $ 1,483,811 | $ 1,520,679 |
CHANGES IN CONSOLIDATED SHAREHO
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cash flow hedging | Net investment hedging | Common Stock | Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCash flow hedging | Accumulated Other Comprehensive LossNet investment hedging | Treasury Stock | |
Beginning balance, shareholders' equity at Jul. 01, 2017 | $ 2,381,516 | $ 765,175 | $ 1,327,366 | $ 9,447,755 | $ (1,262,737) | $ (7,896,043) | |||||||
Beginning balance, shareholders' equity (in shares) at Jul. 01, 2017 | 765,174,900 | 235,135,699 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net earnings | 1,430,766 | 1,430,766 | |||||||||||
Reclass of accumulated other comprehensive loss to retained earnings | [1] | 236,445 | (236,445) | ||||||||||
Foreign currency translation adjustment | (22,987) | (22,987) | |||||||||||
Amortization of cash flow hedges, net of tax | 8,240 | 8,240 | |||||||||||
Amortization of cash flow hedges, net of tax | $ 14,343 | $ 5,791 | $ 14,343 | $ 5,791 | |||||||||
Change in cash flow hedges | 14,343 | ||||||||||||
Change in net investment hedges | 5,791 | ||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 32,015 | 32,015 | |||||||||||
Pension funded status adjustment, net of tax | 52,511 | 52,511 | |||||||||||
Change in marketable securities | 0 | ||||||||||||
Dividends declared | (735,266) | (735,266) | |||||||||||
Treasury stock purchases | (956,502) | $ (956,502) | |||||||||||
Treasury stock purchases (in shares) | 17,473,973 | ||||||||||||
Increase in ownership interest in subsidiaries | (31,072) | (31,072) | |||||||||||
Share-based compensation awards | 327,602 | 56,253 | $ 271,349 | ||||||||||
Share-based compensation awards (in shares) | (8,076,424) | ||||||||||||
Ending balance, shareholders' equity at Jun. 30, 2018 | $ 2,506,957 | $ 765,175 | 1,383,619 | 10,348,628 | (1,409,269) | $ (8,581,196) | |||||||
Ending balance, shareholders' equity (in shares) at Jun. 30, 2018 | 765,174,900 | 244,533,248 | |||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net earnings | $ 1,674,271 | 1,674,271 | |||||||||||
Foreign currency translation adjustment | (119,126) | (119,126) | |||||||||||
Amortization of cash flow hedges, net of tax | 8,620 | 8,620 | |||||||||||
Amortization of cash flow hedges, net of tax | (4,062) | $ 43,839 | (4,062) | $ 43,839 | |||||||||
Change in cash flow hedges | (4,062) | ||||||||||||
Change in net investment hedges | 43,839 | ||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 32,516 | 32,516 | |||||||||||
Pension funded status adjustment, net of tax | (155,074) | (155,074) | |||||||||||
Change in marketable securities | 2,827 | 2,827 | |||||||||||
Dividends declared | (793,220) | (793,220) | |||||||||||
Treasury stock purchases | (1,021,881) | $ (1,021,881) | |||||||||||
Treasury stock purchases (in shares) | 14,960,390 | ||||||||||||
Increase in ownership interest in subsidiaries | (54,877) | (54,877) | |||||||||||
Share-based compensation awards | 381,813 | 128,677 | $ 253,136 | ||||||||||
Share-based compensation awards (in shares) | (7,195,712) | ||||||||||||
Ending balance, shareholders' equity at Jun. 29, 2019 | 2,502,603 | $ 1,978 | $ 765,175 | 1,457,419 | 11,229,679 | $ 1,978 | (1,599,729) | $ (9,349,941) | |||||
Ending balance, shareholders' equity (in shares) at Jun. 29, 2019 | 765,174,900 | 252,297,926 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net earnings | 215,475 | 215,475 | |||||||||||
Foreign currency translation adjustment | (112,215) | (112,215) | |||||||||||
Amortization of cash flow hedges, net of tax | 8,620 | 8,620 | |||||||||||
Change in cash flow hedges | (7,257) | $ (7,257) | $ (7,257) | ||||||||||
Change in net investment hedges | 43,529 | 43,529 | |||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | 44,646 | 44,646 | |||||||||||
Pension funded status adjustment, net of tax | (92,743) | (92,743) | |||||||||||
Change in marketable securities | 4,268 | 4,268 | |||||||||||
Dividends declared | (884,124) | (884,124) | |||||||||||
Treasury stock purchases | (843,251) | $ (843,251) | |||||||||||
Treasury stock purchases (in shares) | 11,030,287,000 | ||||||||||||
Share-based compensation awards | 277,084 | 49,482 | $ 227,602 | ||||||||||
Share-based compensation awards (in shares) | (6,412,388,000) | ||||||||||||
Ending balance, shareholders' equity at Jun. 27, 2020 | $ 1,158,613 | $ 765,175 | $ 1,506,901 | $ 10,563,008 | $ (1,710,881) | $ (9,965,590) | |||||||
Ending balance, shareholders' equity (in shares) at Jun. 27, 2020 | 765,174,900,000 | 256,915,825,000 | |||||||||||
[1] | Deferred taxes stranded in accumulated other comprehensive income (AOCI) as a result of the Tax Cuts and Jobs Act of 2017 (the Tax Act) were reclassified to retained earnings as a result of early adopting Accounting Standards Update (ASU) 2018-02. |
CHANGES IN CONSOLIDATED SHARE_2
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends declared (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.36 | $ 1.74 | $ 1.53 | $ 1.41 |
CONSOLIDATED CASH FLOWS
CONSOLIDATED CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | |||
Net earnings | $ 215,475 | $ 1,674,271 | $ 1,430,766 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Share-based compensation expense | 42,234 | 104,904 | 93,841 |
Depreciation and amortization | 805,765 | 763,935 | 765,498 |
Operating lease asset amortization | 108,376 | ||
Amortization of debt issuance and other debt-related costs | 22,663 | 21,382 | 28,474 |
Goodwill impairment | 203,206 | 0 | 0 |
Impairment of assets held for sale | 55,942 | 0 | 0 |
Gain on sale of business | 0 | (66,309) | 0 |
Loss on extinguishment of debt | 0 | 0 | 53,104 |
Deferred income taxes | (191,317) | (126,719) | 187,908 |
Provision for losses on receivables | 404,158 | 62,946 | 21,448 |
Other non-cash items | (525) | (3,172) | 3,986 |
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | |||
Decrease (increase) in receivables | 915,717 | (203,458) | (37,457) |
Decrease (Increase) in inventories | 114,563 | (114,667) | (89,737) |
Decrease (increase) in prepaid expenses and other current assets | 9,835 | (18,535) | (19,643) |
(Decrease) increase in accounts payable | (834,118) | 246,420 | 76,897 |
(Decrease) increase in accrued expenses | (139,891) | 137,517 | 47,105 |
(Decrease) in operating lease liabilities | (124,040) | ||
(Decrease) increase in accrued income taxes | (102,678) | 4,929 | (10,652) |
Decrease (increase) in other assets | 20,666 | (21,346) | (81,104) |
Increase (decrease) in other long-term liabilities | 92,649 | (50,891) | (315,054) |
Net cash provided by operating activities | 1,618,680 | 2,411,207 | 2,155,380 |
Cash flows from investing activities: | |||
Additions to plant and equipment | (720,423) | (692,391) | (687,815) |
Proceeds from sales of plant and equipment | 28,717 | 20,941 | 22,255 |
Acquisition of businesses, net of cash acquired | (142,780) | (106,616) | (248,105) |
Proceeds from sale of business | 0 | 149,879 | 0 |
Purchase of marketable securities | (11,424) | (116,440) | 0 |
Proceeds from sales of marketable securities | 20,532 | 0 | 0 |
Other investing activities | 69,071 | 1,772 | 3,252 |
Net cash used for investing activities | (756,307) | (742,855) | (910,413) |
Cash flows from financing activities: | |||
Bank and commercial paper borrowings, net | 616,657 | 132,100 | (119,700) |
Other debt borrowings | 6,783,562 | 388,180 | 1,000,599 |
Other debt repayments | (1,119,232) | (790,250) | (552,036) |
Tender and redemption premiums for senior notes | 0 | 0 | (281,762) |
Proceeds from stock option exercises | 227,602 | 253,135 | 268,751 |
Treasury stock purchases | (844,699) | (1,022,033) | (978,901) |
Dividends paid | (856,312) | (775,430) | (722,158) |
Other financing activities | (87,778) | (22,976) | (25,262) |
Net cash provided by (used for) financing activities | 4,719,800 | (1,837,274) | (1,410,469) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (18,848) | (14,677) | 11,844 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,563,325 | (183,599) | (153,658) |
Cash, cash equivalents and restricted cash at beginning of period | 532,245 | 715,844 | 869,502 |
Cash, cash equivalents and restricted cash at end of period | 6,095,570 | 532,245 | 715,844 |
Supplemental disclosures of cash flow information: | |||
Interest | 325,308 | 346,670 | 301,672 |
Income taxes | $ 376,609 | $ 531,103 | $ 268,384 |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES | 12 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF ACCOUNTING POLICIES | SUMMARY OF ACCOUNTING POLICIES Business and Consolidation Sysco Corporation, acting through its subsidiaries and divisions (Sysco or the company), is engaged in the marketing and distribution of a wide range of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for over 625,000 customers from 326 distribution facilities located throughout North America and Europe. Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52-week year ended June 27, 2020 for fiscal 2020, June 29, 2019 for fiscal 2019 and June 30, 2018 for fiscal 2018. The accompanying financial statements include the accounts of Sysco and its consolidated subsidiaries. All significant intercompany transactions and account balances have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses. Actual results could differ from the estimates used. Cash and Cash Equivalents Cash includes cash equivalents such as 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, which are recorded at fair value. Accounts Receivable, Less Allowances Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts based on a combination of factors. The company utilizes specific criteria to determine uncollectible receivables to be written off including whether a customer has filed for or been placed in bankruptcy, has had accounts referred to outside parties for collection or has had accounts past due over specified periods. In these instances, a specific allowance for doubtful accounts is recorded to reduce the receivable to the net amount reasonably expected to be collected. Allowances are recorded for all other receivables based on an analysis of historical trends of write-offs and recoveries. The company utilizes arrangements to sell portions of its trade accounts receivable to third-party financial institutions on a non-recourse basis. The arrangements meet the requirements for the receivables transferred to be accounted for as sales. Proceeds from the sales are reported net of negotiated discount and are recorded as a reduction to accounts receivable outstanding in the company’s consolidated balance sheets and as cash flows from operating activities in the company’s consolidated statements of cash flows. The discounts and fees associated with these arrangements were not material for the fiscal year ended June 27, 2020. For the fiscal year ended June 27, 2020, Sysco sold, without recourse, $3.6 billion of accounts receivable under these arrangements. In certain instances, Sysco has continuing involvement subsequent to the transfer, limited to providing certain servicing and collection actions on behalf of the purchasers of the designated trade receivables. As of June 27, 2020, the outstanding aggregate principal amount of receivables that has been derecognized was $205.8 million. Sysco continues to service the receivables post-transfer on a non-recourse basis with no participating interest. Transfers under these arrangements are treated as a sale and are accounted for as a reduction in trade receivables because the agreements transfer effective control of the receivables to the buyer. Inventories Inventories consisting primarily of finished goods include food and related products and lodging products held for resale and are valued at the lower of cost (first-in, first-out method) and net realizable value. Elements of costs include the purchase price of the product and freight charges to deliver the product to the company’s warehouses and are net of certain cash received from vendors (see “Vendor Consideration”). Plant and Equipment Capital additions, improvements and major replacements are classified as plant and equipment and are carried at cost. Depreciation is recorded using the straight-line method, which reduces the book value of each asset in equal amounts over its estimated useful life, and is included within operating expenses in the consolidated results of operations. Maintenance, repairs and minor replacements are charged to earnings when they are incurred. Upon the disposition of an asset, its accumulated depreciation is deducted from the original cost, and any gain or loss is reflected in current earnings. Long-Lived Assets Management reviews long-lived assets, including finite-lived intangible assets, for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life based on updated projections on an undiscounted basis. For assets held for use, Sysco groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Goodwill and Indefinite-Lived Intangibles Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. This annual testing may be performed utilizing either a qualitative or quantitative assessment; however, if a qualitative assessment is performed and it is determined that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative test is performed. For fiscal 2020, the company utilized a qualitative assessment for certain reporting units. For the remaining reporting units, Sysco performed a quantitative test using a combination of the income and market approaches. The evaluation of fair value requires the use of projections, estimates and assumptions as to the future performance of the operations in performing a discounted cash flow analysis, as well as assumptions regarding sales and earnings multiples that would be applied in comparable acquisitions. The company does not believe the estimates used in the analysis are reasonably likely to change materially in the future; however, the impact of the COVID-19 pandemic on estimated future cash flows is uncertain and will largely depend on the outcome of future events, which could result in further goodwill impairments going forward. In the third quarter of fiscal 2020, the company recorded impairments to goodwill for the Pacific Star and Cake reporting units of $34.9 million and $34.2 million, respectively, which represented the full balance of goodwill for those reporting units. During the fourth quarter of fiscal 2020, the company recorded partial impairments to goodwill for the France Group and Fresh Direct reporting units of $108.7 million and $25.4 million respectively, for total fiscal 2020 impairment charges of $203.2 million, which are included within operating expenses in the consolidated results of operations. In the fourth quarter fiscal 2020 annual assessment, impairment charges would have been applicable for two reporting units if our estimates of fair value were decreased by ranges of 17% to 29%, with goodwill of $369.5 million in the aggregate as of June 27, 2020, recorded for these reporting units. Derivative Financial Instruments All derivatives are recognized as assets or liabilities within the consolidated balance sheets at fair value at their gross values. Gains or losses on derivative financial instruments designated as fair value hedges are recognized immediately in the consolidated results of operations, along with the offsetting gain or loss related to the underlying hedged item. Gains or losses on derivative financial instruments designated as cash flow hedges are recorded as a separate component of shareholders’ equity from inception of the hedges and are reclassified to the consolidated results of operations in conjunction with the recognition of the underlying hedged item. For net investment hedges, the remeasurement gain or loss is recorded in accumulated other comprehensive income and will be subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. Investments in Corporate-Owned Life Insurance Investments in Corporate-Owned Life Insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses. Sysco has the ability and intent to hold certain of its COLI policies to maturity; therefore, the company does not record deferred tax balances related to cash surrender value gains or losses for these policies. The company invests in COLI policies relating to its executive deferred compensation plan and Supplemental Executive Retirement Plan (SERP). The total amounts related to the company’s investments in COLI policies included in other assets in the consolidated balance sheets were $162.9 million and $168.4 million at June 27, 2020 and June 29, 2019, respectively. Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. Foreign Currency Translation The assets and liabilities of all foreign subsidiaries are translated at current exchange rates. Related translation adjustments are recorded as a component of AOCI (loss). Revenue Recognition On July 1, 2018, Sysco adopted Accounting Standards Codification (ASC) Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under ASC Topic 605, Revenue Recognition. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for fiscal 2020 or fiscal 2019 as a result of applying ASC Topic 606. The accounting policies and other disclosures are below, as well as the disclosure of disaggregated revenues in Note 4, “Revenue.” The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and, therefore, not assessed as performance obligations. Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses. Product Sales Revenues Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment. Contract Balances After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in accounts receivable, less allowances in the consolidated balance sheet, were $2.7 billion and $3.9 billion as of June 27, 2020 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 June 27, 2020, Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. Vendor Consideration Sysco recognizes consideration received from vendors as a reduction to cost of sales when the services performed in connection with the monies received are completed and when the related product has been sold by Sysco. In many instances, the vendor consideration is in the form of a specified amount per case or per pound. In these instances, Sysco will recognize the vendor consideration as a reduction of cost of sales when the product is sold. Shipping and Handling Costs Shipping and handling costs include costs associated with the selection of products and delivery to customers. Included in operating expenses are shipping and handling costs of approximately $3.0 billion, $3.5 billion and $3.6 billion in fiscal 2020, 2019 and 2018, respectively. Insurance Program Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. Sysco has a wholly owned captive insurance subsidiary (the Captive) with the primary purpose to enhance Sysco’s risk financing strategies by providing Sysco the opportunity to negotiate insurance premiums in the non-retail insurance market. The Captive must maintain a sufficient level of cash to fund future reserve payments and secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. The Captive holds restricted assets in order to meet solvency requirements, including a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale, and cash and restricted cash equivalents held in a cash deposit account. Further, Sysco has letters of credit available to collateralize the remaining liabilities not covered by restricted cash, restricted cash equivalents and marketable securities. The company also maintains a fully self-insured group medical program. Liabilities associated with these risks are estimated in part by considering historical claims experience, medical cost trends, demographic factors, severity factors and other actuarial assumptions. Share-Based Compensation Sysco recognizes expense for its share-based compensation based on the fair value of the awards that are granted. The fair value of performance share unit awards is determined based on the target number of shares of common stock and the company’s stock price on the date of grant and subsequently adjusted based on actual and forecasted performance compared to planned targets. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company’s stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. The method for estimating the fair value of stock options has not changed in the past three years. During the vesting period, Sysco reduces share-based compensation expense for estimated forfeitures, which is based on analysis of historical trends reviewed on an annual basis. Sysco’s estimate of forfeitures is applied at the grant level. The estimate of forfeitures is trued up to actual forfeitures at the end of each vesting period. Income Taxes Sysco recognizes deferred tax assets and liabilities based on the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. The additional United States (U.S.) federal tax burden as a result of the global intangible low taxed income regime is accounted for as a periodic cost. 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 primarily reflects a combination of income earned and taxed in the various U.S. federal and state, as well as various foreign jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities is preliminarily allocated to the net assets acquired and liabilities assumed based on the estimated fair value at the dates of acquisition, with any excess of cost over the fair value of net assets acquired, including intangibles, recognized as goodwill. Subsequent changes to preliminary amounts are made prospectively. Basis of Presentation 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 and cash flows for all periods presented have been made. Sysco has interests in various jointly owned foodservice operations in Mexico, Panama and Sweden for which it consolidates the results of the operations; therefore, the financial position, results of operations and cash flows for these companies have been included in Sysco’s consolidated financial statements. The value of the noncontrolling interest in each entity is considered redeemable due to certain features of the investment agreement and has, therefore, been presented as mezzanine equity, which is outside of permanent equity, in the consolidated balance sheets. The income attributable to the noncontrolling interest is located within Other expense (income), net, in the consolidated results of operations, as this amount is not material. The non-cash add back for the change in the value of the noncontrolling interest is located within Other non-cash items on the consolidated cash flows. Reclassifications Prior year amounts have been reclassified to conform with the current year presentation. Supplemental Cash Flow Information Within the Consolidated Statement of Cash Flows, certain items have been grouped as other financing activities. These primarily includes cash paid for shares withheld to cover taxes from share-based compensation and debt issuance costs. The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Balance Sheets: Jun. 27, 2020 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Cash and cash equivalents $ 6,059,427 $ 513,460 $ 552,325 Restricted cash (1) 36,143 18,785 163,519 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 6,095,570 $ 532,245 $ 715,844 (1) Restricted cash primarily represents cash and cash equivalents of the Captive, 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 | 12 Months Ended |
Jun. 27, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
CHANGES IN ACCOUNTING | CHANGES IN ACCOUNTING Guarantor Reporting In March 2020, the SEC issued a final rule, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities , that simplifies the disclosure requirements related to registered securities under Rule 3-10 of Regulation S-X. The rule replaces the requirement to provide condensed consolidating financial information with a requirement to present summarized financial information of the issuers and guarantors. It also requires qualitative disclosures with respect to information about guarantors, the terms and conditions of guarantees and the factors that may affect payment. These disclosures may be provided outside the footnotes to the company’s consolidated financial statements. Sysco early adopted the reporting requirements of the rule in the fourth quarter of fiscal 2020 and elected to provide these disclosures in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Leases In February 2016, the Financial Accounting Standards Board (FASB) 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. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 12 Months Ended |
Jun. 27, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years-and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company has substantially completed its assessment of the accounting required under Topic 326. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 using the modified retrospective method. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company has substantially completed its assessment of the accounting required under ASU 2018-15. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 on a prospective basis. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 27, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregation of Sales The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented: 52-Week Period Ended Jun. 27, 2020 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 7,276,675 $ 1,339,340 $ 1,509,375 $ — $ 10,125,390 Canned and dry products 6,603,902 1,940,506 121,646 — 8,666,054 Frozen fruits, vegetables, bakery and other 5,019,696 1,831,950 979,480 — 7,831,126 Dairy products 3,885,771 1,021,195 545,985 — 5,452,951 Poultry 3,749,786 718,753 774,629 — 5,243,168 Fresh produce 3,425,558 834,056 236,408 — 4,496,022 Paper and disposables 2,616,184 336,199 646,920 57,159 3,656,462 Seafood 2,186,208 407,179 102,082 — 2,695,469 Beverage products 940,534 413,315 540,545 68,393 1,962,787 Other (1) 1,069,832 829,697 98,856 765,496 2,763,881 Total Sales $ 36,774,146 $ 9,672,190 $ 5,555,926 $ 891,048 $ 52,893,310 (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. 52-Week Period Ended Jun. 29, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,422,126 $ 1,627,392 $ 1,520,907 $ — $ 11,570,425 Canned and dry products 7,344,015 2,326,584 270,651 — 9,941,250 Frozen fruits, vegetables, bakery and other 5,708,030 2,074,991 1,194,944 — 8,977,965 Dairy products 4,265,320 1,243,773 604,624 — 6,113,717 Poultry 4,121,367 833,844 892,316 — 5,847,527 Fresh produce 3,801,828 1,022,503 241,602 — 5,065,933 Paper and disposables 2,797,521 369,329 731,511 61,908 3,960,269 Seafood 2,550,524 717,703 113,746 — 3,381,973 Beverage products 1,127,701 531,247 563,401 86,845 2,309,194 Other (1) 1,149,756 745,674 110,626 939,613 2,945,669 Total Sales $ 41,288,188 $ 11,493,040 $ 6,244,328 $ 1,088,366 $ 60,113,922 (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. 52-Week Period Ended Jun. 30, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,123,565 $ 1,666,247 $ 1,523,029 $ — $ 11,312,841 Canned and dry products 7,093,691 2,367,921 327,785 — 9,789,397 Frozen fruits, vegetables, bakery and other 5,327,020 2,538,265 1,160,369 — 9,025,654 Dairy products 4,136,973 1,260,354 640,482 — 6,037,809 Poultry 4,020,340 833,917 1,125,085 — 5,979,342 Fresh produce 3,642,247 1,031,796 255,192 — 4,929,235 Paper and disposables 2,639,280 400,345 739,074 59,166 3,837,865 Seafood 2,449,741 726,010 104,459 — 3,280,210 Beverage products 1,107,574 196,379 576,359 84,868 1,965,180 Other (1) 1,101,832 497,331 105,199 865,429 2,569,791 Total Sales $ 39,642,263 $ 11,518,565 $ 6,557,033 $ 1,009,463 $ 58,727,324 (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. Credit Risk |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 27, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONSDuring fiscal 2020, the company paid cash of $142.8 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 June 27, 2020, aggregate contingent consideration outstanding was $26.0 million, of which $23.0 million was recorded as earnout liabilities. Earnout liabilities are measured using unobservable inputs that are considered a Level 3 measurement. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 27, 2020 | |
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 United States 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 rely on quoted prices in markets that are not actively traded or observable inputs over the full term of the asset. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 7, “Marketable Securities.” The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 11, “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of June 27, 2020 and June 29, 2019: Assets and Liabilities Measured at Fair Value as of Jun. 27, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 5,245,487 $ 300,200 $ — $ 5,545,687 Other assets (1) 36,143 — — 36,143 Total assets at fair value $ 5,281,630 $ 300,200 $ — $ 5,581,830 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities 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 $16.3 billion and $8.6 billion as of June 27, 2020 and June 29, 2019, respectively. The carrying value of total debt was $14.4 billion and $8.2 billion as of June 27, 2020 and June 29, 2019, respectively. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Jun. 27, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIESSysco invests a portion of the assets held by our 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 June 27, 2020 and June 29, 2019: Jun. 27, 2020 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 $ 78,651 $ 4,064 $ — $ 82,715 $ 18,233 $ 64,482 Government bonds 28,633 4,919 — 33,552 — 33,552 Total marketable securities $ 107,284 $ 8,983 $ — $ 116,267 $ 18,233 $ 98,034 Jun. 29, 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 $ 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 June 27, 2020 had effective maturities ranging from less than one year to approximately ten years. There were no significant realized gains or losses in marketable securities during fiscal 2020. |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Jun. 27, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS Sysco determines the past due status of trade receivables based on contractual terms with each customer, evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts or the uncollectible receivables to be written off. Many of Sysco’s customers, including those in the restaurant, hospitality and education segments, are closed or operating at a substantially reduced volume due to governmental requirements for closures or other social-distancing measures. Some of these customers have ceased paying their outstanding receivables, creating uncertainty as to their collectability. In fiscal 2020, Sysco recorded a provision for losses on receivables totaling $404.2 million, a large portion of which was associated with the COVID-19 pandemic impact to its customers. To calculate the ending reserve needed as of June 27, 2020, the company estimated uncollectible amounts by applying write-off percentages based on historical loss experience, including loss experience during times of local and regional disasters and the company’s current collection experience. The COVID-19 pandemic is more widespread and longer in duration than historical disasters impacting our business, and it is possible actual uncollectible amounts will differ. A summary of the activity in the allowance for doubtful accounts appears below: 2020 2019 2018 (In thousands) Balance at beginning of period $ 28,176 $ 25,768 $ 31,059 Charged to costs and expenses 404,158 62,946 21,448 Customer accounts written off, net of recoveries (83,915) (64,219) (27,120) Other adjustments (13,609) 3,681 381 Balance at end of period $ 334,810 $ 28,176 $ 25,768 |
PLANT AND EQUIPMENT
PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |
PLANT AND EQUIPMENT | PLANT AND EQUIPMENT A summary of plant and equipment, including the related accumulated depreciation, appears below: Jun. 27, 2020 Jun. 29, 2019 Estimated Useful Lives (In thousands) Plant and equipment at cost: Land $ 493,694 $ 498,180 Buildings and improvements 4,854,307 4,545,099 10-30 years Fleet and equipment 3,561,500 3,697,008 3-10 years Computer hardware and software 1,258,980 1,213,942 3-7 years Total plant and equipment at cost 10,168,481 9,954,229 Accumulated depreciation (5,709,914) (5,452,524) Total plant and equipment, net $ 4,458,567 $ 4,501,705 Depreciation expense, including amortization of capital leases, was $705.2 million in 2020, $656.6 million in 2019 and $614.8 million in 2018. As of June 27, 2020, Sysco had eight properties (land and facilities) located in Texas, Indiana, Florida, Louisiana and Illinois that qualified to be classified as held for sale. The carrying amount of these properties was determined to be higher than fair value and was written down to fair value less cost to sell, which resulted in an impairment loss of $55.9 million reported within Other expense (income), net in fiscal 2020. As of June 27, 2020, the aggregate net book value of assets held for sale was $30.9 million. In fiscal 2020, Sysco recognized $74.4 million in accelerated depreciation, including facilities and equipment, due to restructuring in Europe and certain enterprise resource planning (ERP) systems and software platforms. In fiscal 2019, Sysco recognized $39.3 million in accelerated depreciation, including facilities and equipment, due to restructuring in Europe and certain ERP systems and software platforms. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES The changes in the carrying amount of goodwill by reportable segment for the years presented are as follows: U.S. Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Carrying amount as of June 30, 2018 $ 1,260,900 $ 2,440,821 $ 32,607 $ 221,157 $ 3,955,485 Goodwill acquired during year 10,428 9,127 — — 19,555 Currency translation/other (5,843) (74,016) — 1,045 (78,814) Carrying amount as of June 29, 2019 $ 1,265,485 $ 2,375,932 $ 32,607 $ 222,202 $ 3,896,226 Goodwill acquired during year 90,477 — — — 90,477 Impairment — (169,007) — (34,199) (203,206) Currency translation/other 2,162 (53,164) — (26) (51,028) Carrying amount as of June 27, 2020 $ 1,358,124 $ 2,153,761 $ 32,607 $ 187,977 $ 3,732,469 Amortizable intangible assets acquired during fiscal 2020 were $39.9 million, with a weighted-average amortization period of 6.0 years. Amortizable intangible assets acquired during fiscal 2020 by category were customer relationships and non-compete of $26.6 million and $13.3 million respectively, with a weighted-average amortization period of 7.0 years and 5.0 years respectively. Fully amortized intangible assets have been removed in the period fully amortized in the table below, which presents the company’s amortizable intangible assets in total by category as follows: Jun. 27, 2020 Jun. 29, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Customer relationships $ 1,048,702 $ (434,262) $ 614,440 $ 1,052,608 $ (358,592) $ 694,016 Non-compete agreements 23,252 (10,182) 13,070 11,827 (8,556) 3,271 Trademarks 13,691 (5,816) 7,875 14,785 (5,736) 9,049 Other — — — 185 (148) 37 Total amortizable intangible $ 1,085,645 $ (450,260) $ 635,385 $ 1,079,405 $ (373,032) $ 706,373 The table below presents the company’s indefinite-lived intangible assets by category as follows: Jun. 27, 2020 Jun. 29, 2019 (In thousands) Trademarks $ 143,820 $ 149,962 Licenses 966 966 Total indefinite-lived intangible assets $ 144,786 $ 150,928 Amortization expense for 2020, 2019 and 2018 was $95.3 million, $92.3 million and $114.7 million, respectively. The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 27, 2020 is shown below: Amount (In thousands) 2021 $ 96,877 2022 95,042 2023 91,867 2024 88,022 2025 79,739 Goodwill impairment The Company had approximately $3.7 billion of goodwill at June 27, 2020. The Company tests goodwill for impairment annually in our fiscal fourth quarter, or more frequently if events or circumstances indicate that they could be impaired. Potential impairment indicators include (but are not limited to) macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, specific events affecting the reporting unit or sustained decrease in share price. During the second half of fiscal 2020, the company experienced significant deterioration of macroeconomic conditions and declines in equity valuations, as well as regulatory restrictions implemented in response to the COVID-19 pandemic. In the third quarter of fiscal 2020, the company determined that certain reporting units were more sensitive than others to these declines and the company performed interim quantitative goodwill impairment tests for these reporting units using a combination of discounted cash flow and earnings or revenue multiple models. As part of the annual test in the fiscal fourth quarter, the company performed further quantitative goodwill impairment tests, updating the estimates and assumptions of long-term impact resulting from the pandemic that had been applied in the fiscal third quarter tests, where necessary. As a result, in the third quarter of fiscal 2020 the company recorded impairments to goodwill for the Pacific Star and Cake reporting units of $34.9 million and $34.2 million, respectively, which represented the full balance of goodwill for those reporting units. During the fiscal fourth quarter, the company recorded partial impairments to goodwill for the France Group and Fresh Direct reporting units of $108.7 million and $25.4 million respectively, for total fiscal 2020 impairment charges of $203.2 million, which are included within operating expenses in the consolidated results of operations. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 27, 2020 | |
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 uses euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. In the third quarter of fiscal 2020, Sysco settled some of its previously held cross-currency swap contracts used in net investment hedges, which resulted in a gain of $56.7 million recorded in other comprehensive income (loss). Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, United States 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 June 27, 2020 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 (June 29, 2020 to August 2020) Swedish Krona 133 Various (July 2020 to February 2021) British Pound Sterling 14 July 2021 British Pound Sterling 234 June 2023 Euro 500 Hedging of fuel risk Various (June 30, 2020 to December 2021) Gallons 54 The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of June 27, 2020 and June 29, 2019 are as follows: Derivative Fair Value Balance Sheet location Jun. 27, 2020 Jun. 29, 2019 (In thousands) Fair Value Hedges: Interest rate swaps Other current assets $ 1,388 $ — Interest rate swaps Other assets 69,782 37,396 Interest rate swaps Other long-term liabilities — 9,285 Cash Flow Hedges: Fuel swaps Other current assets $ 233 $ 154 Foreign currency forwards Other current assets 1,063 624 Fuel swaps Other assets 1,173 136 Cross currency swaps Other assets 19,614 8,592 Fuel swaps Other current liabilities 28,242 6,537 Foreign currency forwards Other current liabilities 222 162 Fuel swaps Other long-term liabilities — 239 Net Investment Hedges: Foreign currency swaps Other assets $ — $ 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: Jun. 27, 2020 Jun. 29, 2019 Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded $ 408,220 $ 360,423 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (101,255) $ (143,711) Derivatives designated as hedging instruments 44,489 68,689 The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented: Jun. 27, 2020 Jun. 29, 2019 Interest expense $ (58,244) $ (62,443) Increase in fair value of debt 43,011 81,268 Hedged items $ (101,255) $ (143,711) The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended June 27, 2020 and June 29, 2019, presented on a pretax basis, are as follows: 2020 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (16,586) Operating expense $ (22,058) Foreign currency contracts 6,755 Cost of sales / Other income 3,626 Total $ (9,831) $ (18,432) Derivatives in net investment hedging relationships: Foreign currency contracts $ 51,354 N/A $ — Foreign denominated debt 7,402 N/A — Total $ 58,756 $ — 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 $ (22,100) Operating expense $ 8,180 Foreign currency contracts 16,706 Cost of goods sold / Other income 509 Total $ (5,394) $ 8,689 Derivatives in net investment hedging relationships: Foreign currency contracts $ 42,488 N/A $ — Foreign denominated debt 15,650 N/A — Total $ 58,138 $ — The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 27, 2020 are as follows: Jun. 27, 2020 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (749,924) $ (1,388) Long-term debt (1,563,636) (70,239) 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) |
SELF-INSURED LIABILITIES
SELF-INSURED LIABILITIES | 12 Months Ended |
Jun. 27, 2020 | |
Loss Contingency [Abstract] | |
SELF-INSURED LIABILITIES | SELF-INSURED LIABILITIES Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. A summary of the activity in self-insured liabilities appears below: 2020 2019 2018 (In thousands) Balance at beginning of period $ 297,817 $ 270,986 $ 245,811 Charged to costs and expenses 502,315 492,411 461,867 Payments (470,484) (465,580) (436,692) Balance at end of period $ 329,648 $ 297,817 $ 270,986 The long-term portion of the self-insured liability balance was $205.6 million and $183.6 million as of June 27, 2020, and June 29, 2019, respectively. |
DEBT AND OTHER FINANCING ARRANG
DEBT AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER FINANCING ARRANGEMENTS | DEBT AND OTHER FINANCING ARRANGEMENTS Sysco’s debt consists of the following: Jun. 27, 2020 Jun. 29, 2019 (In thousands) U.S. Commercial paper, interest at 2.56% as of June 29, 2019 $ — $ 132,081 U.K. Commercial paper, interest at 0.454%, maturing in fiscal 2021 740,226 — Senior notes, interest at 2.60%, maturing in fiscal 2021 (1)(2) 751,312 744,034 Senior notes, interest at 2.50%, maturing in fiscal 2022 (1)(2) 504,352 494,814 Senior notes, interest at 2.60%, maturing in fiscal 2022 (1)(2) 448,336 447,509 Senior notes, interest at 1.25%, maturing in fiscal 2023 (1)(2) 568,011 576,771 Senior notes, interest at 3.55%, maturing in fiscal 2025 (1)(2) 551,756 521,490 Senior notes, interest at 3.65%, maturing in fiscal 2025 (1) 362,785 379,658 Senior notes, interest at 5.65%, maturing in fiscal 2025 (1)(2) 745,241 — Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2) 747,727 747,330 Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2) 993,978 993,084 Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3) 44,273 44,272 Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2) 744,046 743,304 Debentures, interest at 6.50%, maturing in fiscal 2029 (2)(3) 162,416 162,150 Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2) 495,273 — Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2) 1,239,439 — Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2) 382,190 382,250 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2) 199,390 199,198 Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2) 740,188 — Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2) 496,017 495,860 Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2) 494,338 494,215 Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2) 492,662 492,579 Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2) 1,233,666 — Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2) 494,428 — Long-term revolving credit facility, interest at 2.125%, maturing in fiscal 2024 (2) 694,951 — Notes payable, capital leases, and other debt, interest averaging 4.53% and maturing at various dates to fiscal 2046 as of June 27, 2020 and 4.99% and maturing at various dates to fiscal 2031 as of June 29, 2019 119,878 112,738 Total debt 14,446,879 8,163,337 Less current maturities of long-term debt (1,542,128) (37,322) Less notes payable (2,266) (3,957) Net long-term debt $ 12,902,485 $ 8,122,058 (1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption. (2) Represents senior notes, debentures and borrowings under the company’s long-term revolving credit facility that are guaranteed by certain wholly owned U.S. Broadline subsidiaries of Sysco Corporation as discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” (3) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. As of June 27, 2020, the principal payments required to be made during the next five fiscal years on total debt, excluding notes payable, are shown below: Amount (In thousands) 2021 $ 1,490,284 2022 950,000 2023 561,098 2024 700,000 2025 1,614,538 The company has a $2.0 billion long-term revolving credit facility that expires on June 28, 2024, subject to extension. As of June 27, 2020, there were $700.0 million in borrowings outstanding under this facility. On May 20, 2020, Sysco entered into an amendment to the credit agreement providing for the long-term revolving credit facility. The amendment revises the existing credit agreement to (1) adjust the covenant requiring Sysco to maintain a certain ratio of consolidated earnings before interest, tax, depreciation and amortization (EBITDA) to consolidated interest expense; (2) include a covenant requiring Sysco to maintain a certain level of liquidity until the earlier of September 2022 or the date on which Sysco has achieved a certain ratio of consolidated EBITDA to consolidated interest expense; (3) include additional pricing levels and a 0.75% interest rate floor; and (4) include a new covenant that restricts (a) increases to Sysco’s regular quarterly dividend and (b) repurchases of equity interests of Sysco, in each case, until the earlier of September 2022 or the date on which Sysco has achieved a certain ratio of consolidated EBITDA to consolidated interest expense. 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 June 27, 2020, there were no commercial paper issuances outstanding under this U.S. program. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. Effective May 4, 2020, Sysco’s United Kingdom-based subsidiary, Brake Bros Limited, established a separate commercial paper program for the purpose of issuing short-term, unsecured Sterling-denominated notes that are eligible for purchase under the Joint HM Treasury and Bank of England Covid Corporate Financing Facility in an aggregate amount not to exceed £600.0 million. As of June 27, 2020, there were £600.0 million in aggregate principal amount of notes outstanding under this commercial paper program. The notes bear interest at a rate of 0.454% and will mature on May 7, 2021. Effective May 20, 2020, Sysco established a 364-day credit facility in the amount of $750.0 million scheduled to expire on May 19, 2021. As of June 27, 2020, there were no borrowings under this credit facility. During fiscal 2020, aggregate outstanding commercial paper issuances, borrowings under our long-term revolving credit facility and short-term bank borrowings ranged from approximately $18.4 million to approximately $1.9 billion. Senior notes offering On April 2, 2020, Sysco issued senior notes (Senior Notes) totaling $4.0 billion in aggregate principal amount in order to enhance the company’s liquidity position in response to the COVID-19 pandemic. Details of the senior notes are as follows: Maturity Date Par Value Coupon Rate Pricing April 1, 2025 (the 5.650% Senior Notes due 2025) $ 750 5.65 % 99.931 % April 1, 2030 (the 5.950% Senior Notes due 2030) 1,250 5.95 99.792 April 1, 2040 (the 6.600% Senior Notes due 2040) 750 6.60 99.802 April 1, 2050 (the 6.600% Senior Notes due 2050) 1,250 6.60 99.767 Sysco used a portion of the net proceeds from the offering to pay off its commercial paper borrowings and for other general corporate purposes. The company anticipates using an additional portion of the net proceeds from the offering to redeem its $750 million aggregate principal amount of Senior Notes due October 2020. The Senior Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes. Interest on the Senior Notes will be paid semi-annually in arrears on April 1 and October 1, beginning October 1, 2020. At Sysco’s option, any or all of the Senior Notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (1) the Senior Notes maturing in 2025 before the date that is one month prior to the maturity date, (2) the Senior Notes maturing in 2030 before the date that is three months prior to the maturity date, (3) the Senior Notes maturing in 2040 before the date that is six months prior to the maturity date or (4) the Senior Notes maturing in 2050 before the date that is six months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Senior Notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes to be redeemed that would be due if such Senior Notes matured on the applicable date described above. If Sysco elects to redeem a series of Senior Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Senior Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Senior Notes redeemed to the redemption date. The interest rate payable on each series of Senior Notes will be subject to adjustment from time to time if either Moody’s Investors Service, Inc., Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or Fitch Ratings (or, in either case, a substitute rating agency), downgrades (or subsequently upgrades) its rating assigned to the Senior Notes, as set forth in the supplemental indentures under which the Senior Notes were issued. On February 13, 2020, Sysco issued senior notes (the Notes) totaling $1.0 billion. Details of the Notes are as follows: Maturity Date Par Value Coupon Rate Pricing February 15, 2030 (the 2030 Notes) (1) $ 500 2.40 % 99.647 % February 15, 2050 (the 2050 Notes) 500 3.30 99.811 (1) The net proceeds from this issuance have been and will be used to fund, in whole or in part, “Eligible Projects.” “Eligible Projects” are investments and expenditures made by Sysco in new projects and projects that have received funding in the three years prior to the issuance of the 2030 notes, which meet one or more of the following categories of eligible criteria: (1) renewable energy; (2) energy efficiency; (3) clean transportation; (4) waste reduction; (5) sustainable water and wastewater management; (6) environmentally sustainable management of living natural resources and land use/food security; (7) aquatic biodiversity conservation/food security; and (8) socioeconomic advancement and empowerment. The Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes issued under the indenture governing the Notes or any of Sysco’s other indebtedness. Interest on the Notes will be paid semi-annually on February 15 and August 15, beginning August 15, 2020. At Sysco’s option, any or all of the Notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (1) the 2030 Notes before the date that is three months prior to the maturity date or (2) the 2050 Notes before the date that is six months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed. If Sysco elects to redeem a series of Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Notes redeemed to the redemption date. As of June 27, 2020 and June 29, 2019 , letters of credit outsta nding were $233.2 million and $226.0 million, respectively. |
LEASES
LEASES | 12 Months Ended |
Jun. 27, 2020 | |
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 right-of-use (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 June 27, 2020: Consolidated Balance Sheet Location Jun. 27, 2020 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 99,918 Current finance lease liabilities Current maturities of long-term debt 33,670 Long-term finance lease liabilities Long-term debt 68,942 The following table presents lease costs for each of the presented periods ended June 27, 2020: Consolidated Results of Operations Location 2020 (In thousands) Operating lease cost Operating expenses $ 123,269 Financing lease cost: Amortization of right-of-use assets Operating expenses 38,285 Interest on lease obligations Interest expense 4,667 Variable lease cost Operating expenses 7,606 Short-term lease cost Operating expenses 13,602 Net lease cost $ 187,429 Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of June 27, 2020 are as follows: Operating Leases Finance Leases (In thousands) 2021 $ 120,815 $ 37,218 2022 91,755 26,889 2023 75,845 19,916 2024 52,480 12,786 2025 46,746 7,828 Thereafter 343,056 7,102 Total undiscounted lease obligations 730,697 111,739 Less imputed interest (100,034) (9,127) Present value of lease obligations $ 630,663 $ 102,612 Other information related to lease agreements was as follows: 2020 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 124,040 Operating cash flows for financing leases 4,666 Financing cash flows for financing leases 34,145 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 64,968 Assets obtained in exchange for finance lease obligations 17,019 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.54 years Financing leases 4.03 years Weighted-average discount rate: Operating leases 2.37 % Financing leases 4.24 % |
COMPANY-SPONSORED EMPLOYEE BENE
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 27, 2020 | |
Retirement Benefits [Abstract] | |
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS | COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. Defined Contribution Plans The company operates a defined contribution 401(k) Plan as a Safe Harbor Plan, which is a plan that treats all employees’ benefits equally within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose unions adopted the Safe Harbor Plan provisions. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pretax contribution on the first 6% of the participant’s compensation contributed by the participant. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan provides that under certain circumstances the company may make matching contributions of up to 50% of the first 6% of a participant’s compensation. The company also has a non-qualified, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the Management Incentive Plan (MIP). Participants may defer up to 50% of their annual salary and up to 90% of their annual bonus. The company will make a non-elective contribution each pay period equal to 3% of a participant’s compensation. Additionally, the company will make matching contributions of 50% of a participant’s pretax contribution on the first 6% of the participant’s eligible compensation that is deferred. Certain employees are also eligible for a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts contributed by the company to the participant’s 401(k) account. Sysco’s expense related to its defined contribution plans was $151.4 million in fiscal 2020, $150.4 million in fiscal 2019, and $151.0 million in fiscal 2018. Defined Benefit Plans Sysco maintains various qualified pension plans that pay benefits to participating employees at retirement, using formulas based on a participant’s years of service and compensation. The U.S. pension plan (U.S. Retirement Plan) is frozen for all U.S.-based salaried and non-union hourly employees, as these employees are eligible for benefits under the company’s defined contribution 401(k) plan. Various defined benefit pension plans cover certain employees, primarily in the U.K., France and Sweden; however, the U.K. pension plan (U.K. Retirement Plan) is frozen to new plan participants and future accrual of benefits. The funding policy for each plan complies with the requirements of relevant governmental laws and regulations. In addition to receiving benefits upon retirement under the company’s U.S. Retirement Plan, certain key management personnel who were participants in the MIP are entitled to receive benefits under the Supplemental Executive Retirement Plan (SERP). This plan is a nonqualified, unfunded supplementary retirement plan. This plan is frozen to all participants, and current MIP participants are eligible to participate in the MSP. The company also provides certain health care benefits to eligible retirees and their dependents. These health care benefits represent Sysco’s unfunded other post-retirement medical plans. The plan had benefit obligations of $10.9 million as of June 27, 2020 and $10.8 million as of June 29, 2019. Funded Status Accumulated pension assets measured against the obligation for pension benefits represents the funded status of a given plan. The funded status of Sysco’s company-sponsored defined benefit plans is presented in the table below. The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. As Sysco’s fiscal 2020 year end is June 27, 2020, the company utilized a practical expedient permitting Sysco to measure its defined benefit plan assets and obligations as of the month end closest to the fiscal year end, and has used June 30, 2020 as the measurement date of the plan assets and obligations disclosed herein. U.S. Pension Benefits International Pension Benefits Jun. 27, 2020 Jun. 29, 2019 Jun. 27, 2020 Jun. 29, 2019 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 4,537,648 $ 4,043,011 $ 406,697 $ 399,000 Service cost 15,532 13,977 2,800 2,790 Interest cost 164,756 172,213 8,681 10,637 Amendments (2,077) — 661 3,050 Curtailments — — (4,012) — Plan Combinations — — — 173 Actuarial (gain) loss, net 464,475 439,082 21,157 20,783 Total disbursements (140,616) (130,635) (11,155) (14,398) Exchange rate changes — — (10,723) (15,338) Benefit obligation at end of year 5,039,718 4,537,648 414,106 406,697 Change in plan assets: Fair value of plan assets at beginning of year 3,984,154 3,666,408 264,746 258,028 Actual return on plan assets 533,676 418,789 35,594 23,765 Employer contribution 31,525 29,592 7,141 7,612 Total disbursements (140,616) (130,635) (11,155) (14,398) Exchange rate changes — — (8,135) (10,261) Fair value of plan assets at end of year 4,408,739 3,984,154 288,191 264,746 Funded status at end of year $ (630,979) $ (553,494) $ (125,915) $ (141,951) As of June 27, 2020 and June 29, 2019, the SERP had benefit obligations of $474.9 million and $468.0 million, respectively. In order to meet a portion of its obligations under the SERP, Sysco has a rabbi trust that invests in Corporate-Owned Life Insurance policies on the lives of participants and interests in corporate-owned real estate assets. These assets are not included as plan assets or in the funded status amounts in the tables above and below. The life insurance policies on the lives of the participants had carrying values of $94.0 million as of June 27, 2020 and $97.7 million as of June 29, 2019. Sysco is the sole owner and beneficiary of such policies. The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: U.S. Pension Benefits International Pension Benefits Jun. 27, 2020 Jun. 29, 2019 Jun. 27, 2020 Jun. 29, 2019 (In thousands) Noncurrent assets (Other assets) $ — $ — $ — $ — Current accrued benefit liability (Accrued expenses) (31,121) (31,652) (1,359) (1,285) Noncurrent accrued benefit liability (Other long-term liabilities) (599,858) (521,842) (124,556) (140,666) Net amount recognized $ (630,979) $ (553,494) $ (125,915) $ (141,951) Accumulated other comprehensive loss (income) as of June 27, 2020 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 1,176 $ 781 $ 1,957 Actuarial losses (gains) 1,687,105 29,733 1,716,838 Total $ 1,688,281 $ 30,514 $ 1,718,795 Accumulated other comprehensive loss (income) as of June 29, 2019 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 10,790 $ 588 $ 11,378 Actuarial losses (gains) 1,599,539 33,008 1,632,547 Total $ 1,610,329 $ 33,596 $ 1,643,925 The accumulated benefit obligation, which does not consider any salary increases for the remaining active union employees in the U.S. Retirement Plan was $5.4 billion and $4.9 billion as of June 27, 2020 and June 29, 2019, respectively. Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: U.S. Pension Benefits (1) International Pension Benefits Jun. 27, 2020 Jun. 29, 2019 Jun. 27, 2020 Jun. 29, 2019 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 5,025,168 $ 4,524,513 $ 407,181 $ 399,966 Fair value of plan assets at end of year 4,408,739 3,984,154 288,191 264,746 (1) Information under Pension Benefits as of June 27, 2020 and June 29, 2019 includes both the U.S. Retirement Plan and the SERP. Components of Net Benefit Costs and Other Comprehensive Income The components of net company-sponsored pension costs for each fiscal year are as follows: 2020 2019 2018 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Service cost $ 15,531 $ 2,800 $ 13,977 $ 2,790 $ 14,514 $ 3,219 Interest cost 164,756 8,681 172,213 10,637 173,827 10,667 Expected return on plan assets (196,249) (10,819) (180,624) (11,072) (233,987) (11,653) Amortization of prior service cost (credit) 7,537 597 8,380 (202) 9,460 (2,003) Amortization of actuarial loss 39,483 157 35,537 (98) 35,696 (67) Curtailment loss (gain) — (4,166) — — — — Settlement loss (gain) recognized — — 109 — 16 Net pension (benefits) costs $ 31,058 $ (2,750) $ 49,483 $ 2,164 $ (490) $ 179 The components of net company-sponsored pension costs other than the service cost component are reported in Other expense (income), net within the consolidated results of operations. Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: 2020 2019 2018 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Amortization of prior service cost (credit) $ 7,537 $ 422 $ 8,380 $ (202) $ 9,460 $ (2003) Amortization of actuarial loss (gain) 39,483 157 35,537 11 35,696 (51) Prior service cost (credit) arising in current year 2,077 (661) — (3,050) — 4,624 Effect of exchange rates on amounts in AOCI — 784 — 1,163 — (583) Actuarial gain (loss) arising in current year (127,048) 3,640 (163,588) (8,090) 51,318 10,406 Net pension cost (income) $ (77,951) $ 4,342 $ (119,671) $ (10,168) $ 96,474 $ 12,393 Amounts included in accumulated other comprehensive loss (income) as of June 27, 2020 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2021 are: U.S. Pension Benefits International Pension Benefits Total (In thousands) Amortization of prior service cost (credit) $ 729 $ (67) $ 662 Amortization of actuarial losses (gains) 42,288 237 42,525 Total $ 43,017 $ 170 $ 43,187 Employer Contributions The company made cash contributions to its company-sponsored pension plans of $38.7 million and $37.2 million in fiscal years 2020 and 2019, respectively. There were no contributions made to the U.S. Retirement Plan in fiscal 2020, as there were no required contributions to meet ERISA minimum funding requirements in fiscal 2020. There are no required contributions to the U.S. Retirement Plan to meet ERISA minimum funding requirements in fiscal 2021. The company’s contributions to the SERP plan are made in the amounts needed to fund current year benefit payments. The estimated aggregate fiscal 2021 contribution to fund benefit payments for the SERP plan is $31.1 million. The estimated fiscal 2021 contributions to fund benefit payments for the international retirement plans are $7 million. Estimated Future Benefit Payments Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: U.S. Pension Benefits International Pension Benefits (In thousands) 2021 $ 157,780 $ 11,831 2022 167,694 12,127 2023 178,050 12,483 2024 188,214 13,312 2025 197,783 14,237 Subsequent five years 1,120,130 74,274 Assumptions Weighted-average assumptions used to determine benefit obligations as of year-end were: Jun. 27, 2020 Jun. 29, 2019 Discount rate — U.S. Retirement Plan 2.94 % 3.70 % Discount rate — SERP 2.91 3.62 Discount rate — U.K. Retirement Plan 1.60 2.30 Rate of compensation increase — U.S. Retirement Plan 2.56 2.56 As benefit accruals under the SERP and U.K. Retirement Plan are frozen, future pay is not projected in the determination of the benefit obligation as of June 27, 2020 or June 29, 2019. Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were: 2020 2019 2018 Discount rate — U.S. Retirement Plan 3.70 % 4.28 % 4.19 % Discount rate — SERP 3.62 4.41 4.08 Discount rate — U.K. Retirement Plan 2.30 2.85 2.60 Expected rate of return — U.S. Retirement Plan 5.00 5.00 7.00 Expected rate of return — U.K. Retirement Plan 4.55 4.55 4.55 Rate of compensation increase — U.S. Retirement Plan 2.56 2.62 2.62 For guidance in determining the discount rate for U.S. defined benefit plans, Sysco calculates the implied rate of return on a hypothetical portfolio of high-quality fixed-income investments for which the timing and amount of cash outflows approximates the estimated payouts of the company-sponsored pension plans. Sysco uses an annualized corporate bond yield curve to estimate the rate at which pension benefits could effectively be settled to estimate a discount rate for the U.K. Retirement Plan. The discount rate assumption is updated annually and revised as deemed appropriate. The discount rates to be used for the calculation of fiscal 2021 net company-sponsored benefit costs for the U.S. Retirement Plan and U.K. Retirement Plan are 2.94% and 1.60%, respectively. The discount rate to be used for the calculation of fiscal 2021 net company-sponsored benefit costs for the SERP is 2.91%. The expected long-term rate of return on plan assets assumption for the retirement plans are net return on assets assumption, representing gross return on assets less asset management expenses. Specific to the U.S. Retirement Plan, administrative expenses are also excluded from the gross return on assets. The expected return for the U.S. Retirement Plan is derived from a mathematical asset model that incorporates assumptions as to the various asset class returns, reflecting a combination of rigorous historical performance analysis and the forward-looking views of the financial markets regarding the yield on bonds, the historical returns of the major stock markets and returns on alternative investments. The expected return for the U.K. Retirement Plan is derived from a long-term swap yield time horizon adjusted for the expected return based on the plan’s current asset allocation and historical results. The rate of return assumption is reviewed annually and revised as deemed appropriate. The expected long-term rate of return to be used in the calculation of fiscal 2021 net company-sponsored benefit costs for the U.S. Retirement Plan and U.K. Retirement Plan are 4.75% and 2.55%, respectively. Plan Assets Investment Strategy The company’s overall strategic investment objectives for the U.S. Retirement Plan are to preserve capital for future benefit payments and to balance risk and return commensurate with ongoing changes in the valuation of plan liabilities using an investment strategy that closely aligns the duration of the U.S. Retirement Plan’s assets with the duration of its liabilities. In order to accomplish these objectives, the company oversees the U.S. Retirement Plan’s investment objectives and policy design, decides proper plan asset class strategies and structures, monitors the performance of plan investment managers and investment funds and determines the proper investment allocation of pension plan contributions. The strategy results in an asset portfolio that more closely matches the behavior of the liability, thereby reducing the volatility of the U.S. Retirement Plan’s funded status. This structure ensures the U.S. Retirement Plan’s investments are diversified within each asset class, in addition to being diversified across asset classes with the intent to build asset class portfolios that are structured without strategic bias for or against any subcategories within each asset class. The company has also created a set of investment guidelines for the U.S. Retirement Plan’s investment managers to specify prohibited transactions, including borrowing of money except for real estate, private equity or hedge fund portfolios where leverage is a key component of the investment strategy and permitted in the investments’ governing documents, the purchase of securities on margin unless fully collateralized by cash or cash equivalents or short sales, pledging, mortgaging or hypothecating of any securities, except for loans of securities that are fully collateralized, market timing transactions and the direct purchase of the securities of Sysco or the investment manager. The purchase or sale of derivatives for speculation or leverage is also prohibited; however, investment managers are allowed to use derivative securities so long as they do not increase the risk profile or leverage of the manager’s portfolio. The U.S. Retirement Plan’s target and actual investment allocation as of June 27, 2020 is as follows: U.S. Retirement Plan Target Asset Allocation Actual Asset Allocation Growth assets 30 % 28 % Liability hedging assets 70 72 100 % Sysco’s U.S. Retirement Plan investment strategy is implemented through a combination of balanced and specialized investment managers, passive investment funds and actively managed investment funds. Growth assets include, but are not limited to, equities, alternatives, real estate, and growth fixed income intended to generate returns in excess of the liability growth rate. The Liability Hedging assets will be comprised primarily of fixed income investments, including interest rate and credit derivatives, intended to reduce funded status volatility due to changes in interest rates and credit spreads, while generating returns consistent with the projected liability growth rate. The U.S. Retirement Plan’s portfolio includes investment funds which are selected based on each fund’s stated investment strategy to align with Sysco’s overall target mix of investments. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. The day-to-day management of the assets of the U.K. Retirement Plan has been delegated by the plan trustee to a solvency manager who decides the composition of the asset portfolio in line with the objectives of the plan’s trustee and within specific investment guidelines agreed upon with the trustee. The primary objective for the U.K. Retirement Plan is to provide sufficient assets to pay benefits as they fall due. In fiscal 2020, the U.K. Retirement Plan had a return objective that was aimed to achieve a return on plan assets of 2.3% in excess of the return on the liability benchmark over rolling five-year periods. In fiscal 2021, this return objective aims to achieve a return on plan assets of 2.1% in excess of the return on the liability benchmark over rolling five-year periods. The liability benchmark is the portfolio of gilts, which are bonds issued by the British government, that best matches the liability profile of the U.K. Retirement Plan. The investment objective includes a risk statement that targets a level of investment tracking error versus the liability benchmark to be below 10% per year. The actual tracking error targeted may fluctuate over time as the composition of the portfolio changes and the levels of risk in markets change. The U.K. Retirement Plan’s Trustee and Solvency Manager seeks to achieve the Plan’s investment objectives by investing in a suitably diversified mix of assets. The U.K. Retirement Plan uses derivatives such as forwards, futures, swaps and options for risk management and for the efficient implementation of the investment strategy. The U.K. Retirement Plan’s target and actual investment allocation as of June 27, 2020 is as follows: U.K. Retirement Plan Target Asset Allocation Actual Asset Allocation Common contractual fund 60 % 52 % Liability hedging assets 40 48 100 % The U.K. Retirement Plan’s investment strategy is implemented primarily through a common contractual investment fund and liability hedging assets both managed by the solvency manager. The pooled investment fund consists of investment types including (1) equity investments covering a range of geographies and including investment managers that hold long and short positions and private equity investments, (2) credit investments including global investment grade and high yield bonds, loans and other debt and derivative securities, (3) property investments including global direct or indirect real estate holdings, (4) macro-oriented funds that seek to generate return by going long and short in a variety of markets and operate strategies which focus on markets rather than individual stocks and often use derivatives rather than physical assets, and (5) multi-strategy funds which combine a range of different credit, equity and macro-orientated ideas and dynamically allocate funds across asset classes. Actual asset allocation is regularly reviewed and periodically rebalanced to the target allocation when considered appropriate. As discussed above, the retirement plans’ investments in equities, debt instruments and alternative investments provide a range of returns and also expose the plan to investment risk. However, the investment policies put in place by the trustee and solvency manager ensure diversification of plan assets across issuers, industries and countries. Fair Value of Plan Assets 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). See Note 6, “Fair Value Measurements,” for a description of the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The following is a description of the valuation methodologies used for assets and liabilities held by Sysco’s retirement plans measured at fair value. Cash and cash equivalents: Valued at amortized cost, which approximates fair value due to the short-term maturities of these investments. Cash and cash equivalents is included as a Level 1 and Level 2 measurement in the table below. Equity securities: Valued at the closing price reported on the exchange market. If a stock is not listed on a public exchange, such as an American Depository Receipt or some preferred stocks, the stock is valued using an evaluated bid price based on a compilation of observable market information. Inputs used include yields, the underlying security “best price,” adjustments for corporate actions and exchange prices of underlying and common stock of the same issuer. Equity securities valued at the closing price reported on the exchange market are classified as a Level 1 measurement in the table below. Fixed income securities: 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. All fixed income securities are included as a Level 2 measurement in the table below. Investment funds: Represents collective trust and funds holding debt, equity, hedge funds, private equity funds, exchange-traded real estate securities, and common contractual funds which are valued at the net asset value (NAV) provided by the manager of each fund. The NAV for funds within the U.S. and U.K Retirement Plans is calculated as the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV is based on the fair value of the underlying securities within the fund. Non-exchange traded real estate funds are valued based on the proportionate interest held by the U.S. Retirement Plan, which is based on the valuations of the underlying real estate investments held by each fund. Each real estate investment is valued on the basis of a discounted cash flow approach. Inputs used include future rental receipts, expenses and residual values from a market participant view of the highest and best use of the real estate as rental property. The private equity funds are valued based on the proportionate interest held by the U.S. Retirement Plan, which is based on the valuations of the underlying private equity investments held by each fund. The hedge funds are valued based on the hedge funds’ proportionate share of the net assets of the underlying private investment fund as determined by the underlying private investment fund’s general partner. Indirectly held investments are valued utilizing the latest financial reports supplied by the fund’s portfolio investments. Directly held investments are valued initially based on transaction price and are adjusted utilizing available market data and investment-specific factors, such as estimates of liquidation value, prices of recent transactions in the same or similar issuer, current operating performance and future expectations of the particular investment, changes in market outlook and the financing environment. Derivatives: Valuation method varies by type of derivative security. • Credit default and interest rate swaps: Valued using evaluated bid prices based on a compilation of observable market information. Inputs used for credit default swaps include spread curves and trade data about the credit quality of the counterparty. Inputs used for interest rate swaps include benchmark yields, swap curves, cash flow analysis, and interdealer broker rates. Credit default and interest rate swaps are included as a Level 2 measurement in the table below. • Foreign currency contracts: Valued using a standardized interpolation model that utilizes the quoted prices for standard-length forward foreign currency contracts and adjusts to the remaining term outstanding on the contract being valued. Foreign currency contracts are included as a Level 2 measurement in the table below. • Futures and option contracts: Valued at the closing price reported on the exchange market for exchange-traded futures and options. Over-the-counter options are valued using pricing models that are based on observable market information. Exchange-traded futures and options are included as a Level 1 measurement in the table below; over-the-counter options are included as a Level 2 measurement. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 27, 2020: Assets Measured at Fair Value as of Jun. 27, 2020 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 34,475 $ 67,468 $ — $ — $ 101,943 Growth assets: U.S. equity (1) — — — 575,035 575,035 International equity (1) — — — 252,687 252,687 Hedge fund of funds (2) — — — 233,792 233,792 Real estate funds (3) — — — 87,730 87,730 Private equity funds (4) — — — 74,631 74,631 Liability hedging assets: Corporate bonds — 2,220,702 — — 2,220,702 U.S. government and agency securities (1) — 293,643 — 540,751 834,394 Other (5) — 27,825 — — 27,825 Total investments at fair value $ 34,475 $ 2,609,638 $ — $ 1,764,626 $ 4,408,739 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 27, 2020. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 27, 2020, and there were no redemption restrictions as of June 27, 2020. The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 27, 2020 was $2.0 million. Approximately 5% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitments in the funds listed in this category as of June 27, 2020 were $16.2 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2020 to 2031. (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 27, 2020: Assets Measured at Fair Value as of Jun. 27, 2020 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 2,510 $ — $ — $ — $ 2,510 U.K. government securities — 135,318 — — 135,318 Derivatives, net (1) — 123 — — 123 Investment funds: Common contractual fund (2) — — — 150,240 150,240 Total investments at fair value $ 2,510 $ 135,441 $ — $ 150,240 $ 288,191 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $6.8 million; the fair value of liability positions totaled $6.6 million. (2) There were $14.9 million of unfunded commitments as of June 27, 2020, and there were no redemption restrictions as of June 27, 2020. The investment may be redeemed twice per month. (3) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 29, 2019: Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 39,981 $ 41,266 $ — $ — $ 81,247 Growth assets: U.S. equity (1) — — — 468,923 468,923 International equity (1) 95,296 — — 107,197 202,493 Hedge fund of funds (2) — — — 226,409 226,409 Real estate funds (3) — — — 93,592 93,592 Private equity funds (4) — — — 84,266 84,266 Liability hedging assets: Corporate bonds — 1,987,964 — — 1,987,964 U.S. government and agency securities (1) — 298,629 — 522,489 821,118 Other (5) — 18,142 — — 18,142 Total investments at fair value $ 135,277 $ 2,346,001 $ — $ 1,502,876 $ 3,984,154 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 29, 2019. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 29, 2019, and there were no redemption restrictions as of June 29, 2019. The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 29, 2019 was $10.3 million. Approximately 15% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2019 to 2021. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitment as of June 29, 2019 was $17.6 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2019 to 2031. (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 29, 2019: Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 13,372 $ — $ — $ — $ 13,372 U.K. government securities — 63 |
MULTIEMPLOYER EMPLOYEE BENEFIT
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 27, 2020 | |
Multiple-Employer Plan Accounted for as Multiemployer Plan [Abstract] | |
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS | MULTIEMPLOYER EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans Sysco participates in several multiemployer defined benefit pension plans in the United States (U.S.) based on obligations arising under collective bargaining agreements covering union-represented employees. Expense is recognized at the time the contribution is made. Sysco does not directly manage these multiemployer plans, which are generally managed by boards of trustees, half of whom are appointed by the unions and the other half appointed by employers contributing to the plan. Approximately 11% of Sysco’s current employees in the U.S. are participants in such multiemployer plans as of June 27, 2020. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If Sysco chooses to stop participating in some of its multiemployer plans in the U.S, Sysco may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Based upon the information available from plan administrators, management believes that several of these multiemployer plans are underfunded. In addition, pension-related legislation in the U.S. requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, Sysco expects its contributions to these plans to increase in the future. In addition, if a U.S. multiemployer defined benefit plan fails to satisfy certain minimum funding requirements, the Internal Revenue Service may impose a nondeductible excise tax of 5% on the amount of the accumulated funding deficiency for those employers contributing to the fund. However, under current law, this excise tax is unlikely to apply since multiemployer pension plans experiencing accumulated funding deficiencies are considered “critical” or “critical and declining,” and the excise tax does not apply to pension plans in critical or critical and declining status. Under current law regarding multiemployer defined benefit plans, a plan’s termination, Sysco’s voluntary withdrawal, or the mass withdrawal of all contributing employers from any underfunded multiemployer defined benefit plan would require Sysco to make payments to the plan for Sysco’s proportionate share of the multiemployer plan’s unfunded vested liabilities. Plan Contributions Sysco’s contributions to multiemployer defined benefit pension plans were as follows for each fiscal year: 2020 2019 2018 (In thousands) Individually significant plans $ 31,683 $ 31,669 $ 30,460 All other plans 15,762 16,876 15,915 Total contributions $ 47,445 $ 48,545 $ 46,375 Individually Significant Plans The following information relates to multiemployer defined benefit pension plans that Sysco has determined to be individually significant to the company. As noted below, the company has determined only one plan – the Western Conference of Teamsters Pension Plan – as currently being individually significant to the company. To determine individually significant plans, the company evaluated several factors, including Sysco’s significance to the plan in terms of employees and contributions, the funded status of the plan and the size of the company’s potential withdrawal liability if it were to voluntarily withdraw from the plan. The following table provides information about the funded status of individually significant plans: • The “EIN-PN” column provides the Employer Identification Number (EIN) and the three-digit plan number (PN). • The “Pension Protection Act Zone Status” columns provide the two most recent Pension Protection Act zone statuses available from each plan. The zone status is based on information that the company received from the plan’s administrators and is certified by each plan’s actuary, together with information included in the annual return/reports filed by each plan with the U.S. Department of Labor. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The Multiemployer Protection Act of 2014 created a new zone called “critical and declining.” Plans are generally considered “critical and declining” if they are projected to become insolvent within 15 years. • The “FIP/RP Status” column indicates whether a financial improvement plan (FIP) for yellow/orange zone plans or a rehabilitation plan (RP) for red zone plans is pending or implemented in the current year or was put in place in a prior year. A status of “Pending” indicates a FIP/RP has been approved but actual period covered by the FIP/RP has not begun. A status of “Implemented” means the period covered by the FIP/RP began in the current year or is ongoing. • The “Surcharge Imposed” column indicates whether a surcharge was paid during the most recent annual period presented for the company’s contributions to each plan in the red zone. If the company’s current collective bargaining agreement (CBA) with a plan satisfies the requirements of a pending but not yet implemented RP, then the payment of surcharges is not required and “No” will be reflected in this column. If the company’s current CBA with a plan does not yet satisfy the requirements of a pending but not yet implemented RP, then the payment of surcharges is required and “Yes” will be reflected in this column. Pension Protection Act Pension Fund EIN-PN As of 12/31/20 As of 12/31/19 FIP/RP Surcharge Expiration Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green N/A N/A 9/26/20 to 2/15/2026 (1) (1) Sysco is party to 23 CBAs that require contributions to the Western Conference of Teamsters Pension Trust. Each agreement covers anywhere from less than 1% to 17% of the total contributions Sysco is required to pay the fund. The following table provides information about the company’s contributions to individually significant plans: • The “Sysco Contributions” columns provide contribution amounts based on Sysco’s fiscal years, which may not coincide with the plans’ fiscal years. • The “Sysco 5% of Total Plan Contributions” columns indicate whether Sysco was listed on Schedule R of the plan’s most recently filed Form 5500s as providing more than five percent of the total contributions to the plan, and the plan year-end is noted. Sysco Contributions Sysco 5% of Pension Fund 2020 2019 2018 2019 2018 (In thousands) Western Conference of Teamsters Pension Plan $ 31,683 $ 31,669 $ 30,460 No No For the plan noted in the table above, minimum contributions outside of the agreed upon contractual rate are not required. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 27, 2020 | |
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: 2020 2019 2018 (In thousands, except for share and per share data) Numerator: Net earnings $ 215,475 $ 1,674,271 $ 1,430,766 Denominator: Weighted-average basic shares outstanding 510,121,071 516,890,581 522,926,914 Dilutive effect of share-based awards 3,904,903 6,490,543 6,162,940 Weighted-average diluted shares outstanding 514,025,974 523,381,124 529,089,854 Basic earnings per share $ 0.42 $ 3.24 $ 2.74 Diluted earnings per share $ 0.42 $ 3.20 $ 2.70 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 4,833,000, 2,338,000 and 2,303,000 for fiscal 2020, 2019 and 2018, respectively. Dividends declared were $884.1 million, $793.2 million and $735.3 million in fiscal 2020, 2019 and 2018, respectively. Included in dividends declared for each year were dividends declared but not yet paid at year-end of approximately $228.7 million, $200.0 million and $187.4 million in fiscal 2020, 2019 and 2018, respectively. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Jun. 27, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $104.3 million, $1.5 billion and $1.5 billion for fiscal 2020, 2019 and 2018, respectively. A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows: 2020 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ (125,214) $ (32,471) $ (92,743) Reclassification adjustments: Amortization of prior service cost Other expense, net 7,620 1,908 5,712 Amortization of actuarial loss, net Other expense, net 49,284 10,350 38,934 Total reclassification adjustments 56,904 12,258 44,646 Foreign currency translation: Foreign currency translation adjustment N/A (112,215) — (112,215) Marketable securities: Change in marketable securities (1) N/A 5,403 1,135 4,268 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (9,831) (2,574) (7,257) Change in net investment hedges (3) N/A 58,756 15,227 43,529 Total other comprehensive income before reclassification adjustments 48,925 12,653 36,272 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,496 2,876 8,620 Total other comprehensive loss $ (114,701) $ (3,549) $ (111,152) (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 fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges, as described in Note 11, “Derivative Financial Instruments.” 2019 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ (200,144) $ (45,070) $ (155,074) Reclassification adjustments: Amortization of prior service cost Other expense, net 8,532 2,132 6,400 Amortization of actuarial loss, net Other expense, net 34,824 8,708 26,116 Total reclassification adjustments 43,356 10,840 32,516 Foreign currency translation: Foreign currency translation adjustment N/A (119,126) — (119,126) Marketable Securities: Change in marketable securities N/A 3,579 752 2,827 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (5,394) (1,332) (4,062) Change in net investment hedges N/A 58,138 14,299 43,839 Total other comprehensive income (loss) before reclassification adjustments 52,744 12,967 39,777 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,492 2,872 8,620 Total other comprehensive loss $ (208,099) $ (17,639) $ (190,460) (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 2018 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ 69,476 $ 16,965 $ 52,511 Reclassification adjustments: Amortization of prior service cost Other expense, net 9,636 2,731 6,905 Amortization of actuarial loss, net Other expense, net 35,044 9,934 25,110 Total reclassification adjustments 44,680 12,665 32,015 Foreign currency translation: Foreign currency translation adjustment N/A (22,987) — (22,987) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 23,872 9,529 14,343 Change in net investment hedges N/A (2,443) (8,234) 5,791 Total other comprehensive income before reclassification adjustments 21,429 1,295 20,134 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,499 3,259 8,240 Total other comprehensive income $ 124,097 $ 34,184 $ 89,913 (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 (AOCI) for the periods presented: Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, net of tax Marketable Securities Total (In thousands) Balance as of Jul. 1, 2017 $ (974,232) $ (148,056) $ (140,449) $ — $ (1,262,737) Other comprehensive income before 52,511 (22,987) 20,134 — 49,658 Amounts reclassified from accumulated 32,015 — 8,240 — 40,255 Amounts reclassified to retained earnings (1) (205,353) — (31,092) — (236,445) Balance as of Jun. 30, 2018 (1,095,059) (171,043) (143,167) — (1,409,269) Other comprehensive income before (155,074) (119,126) 39,777 — (234,423) Amounts reclassified from accumulated 32,516 — 8,620 — 41,136 Amounts reclassified to retained earnings (1) — — — 2,827 2,827 Balance as of Jun. 29, 2019 (1,217,617) (290,169) (94,770) 2,827 (1,599,729) Other comprehensive income before (92,743) (112,215) 36,272 — (168,686) Amounts reclassified from accumulated 44,646 — 8,620 — 53,266 Change in marketable securities — — — 4,268 4,268 Balance as of Jun. 27, 2020 $ (1,265,714) $ (402,384) $ (49,878) $ 7,095 $ (1,710,881) (1) Deferred taxes stranded in AOCI as a result of the Tax Act were reclassified to retained earnings as a result of early adopting Accounting Standards Update 2018-02. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jun. 27, 2020 | |
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 November 2018, Sysco’s Omnibus Incentive Plan (2018 Plan) was adopted and reserved up to 51,500,000 shares of Sysco common stock for share-based awards to employees, non-employee directors and key advisors. Of the 51,500,000 authorized shares, the full 51,500,000 shares may be issued as options or stock appreciation rights and up to 17,500,000 shares may be issued as restricted stock, restricted stock units or other types of stock-based awards. To date, Sysco has issued options, restricted stock units and performance share units under the 2018 Plan. Vesting requirements for awards under the 2018 Plan vary by individual grant and may include either time-based vesting or time-based vesting subject to acceleration based on performance criteria for fiscal periods of at least one year. The contractual life of all options granted under the 2018 Plan are and will be no greater than ten years. As of June 27, 2020, there were 46,728,773 remaining shares authorized and available for grant in total under the 2018 Plan, of which the full 46,728,773 shares may be issued as options or stock appreciation rights, or as a combination of up to 15,640,344 shares that may be issued as restricted stock, restricted stock units or other types of stock-based awards, with the remainder available for issuance as options or stock appreciation rights. Sysco has also granted employee options under several previous employee stock option plans for which previously granted options remain outstanding as of June 27, 2020. No new options will be issued under any of the prior plans, as future grants to employees will be made through the 2018 Plan or subsequently adopted plans. Awards under these plans are subject to time-based vesting with vesting periods that vary by individual grant. The contractual life of all options granted under these plans is ten years. Sysco’s policy is to utilize treasury stock for issuing shares upon share option exercise or share unit conversion. Performance Share Units During fiscal 2020 and 2019, 680,230 and 581,174 performance share units (PSUs), respectively, were granted to employees. Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For PSUs granted without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per performance share unit granted during fiscal 2020 and 2019 was $73.37 and $74.86, respectively. The PSUs granted will vest and convert into shares of Sysco common stock at the end of the performance periods, which conclude at the end of fiscal 2022 and fiscal 2021, respectively, based on financial performance targets consisting of Sysco’s compound annual growth rate on earnings per share and the average of adjusted return on invested capital. Stock Options Sysco’s option awards are subject to graded vesting over a requisite service period with compensation cost recognized on a straight-line basis over the requisite service period over the duration of the award. In addition, certain of Sysco’s options provide that the options continue to vest as if the optionee continued as an employee or director if the optionee meets certain age and years of service thresholds upon retirement. In these cases, Sysco will recognize compensation cost for such awards over the period from the grant date to the date the employee or director first becomes eligible to retire with the options continuing to vest after retirement. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. Expected dividend yield is estimated based on the historical pattern of dividends and the average stock price for the year preceding the option grant. Expected volatility is based on historical volatility of Sysco’s stock, implied volatilities from traded options on Sysco’s stock and other factors. The risk-free rate for the expected term of the option is based on the United States Treasury yield curve in effect at the time of grant. Sysco utilizes historical data to estimate option exercise and employee termination behavior within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately in determining the expected life of awards for valuation purposes. The weighted average assumptions discussed above are noted in the table below for relevant periods as follows: 2020 2019 2018 Dividend yield 2.4 % 2.5 % 2.6 % Expected volatility 18.3 % 16.9 % 17.5 % Risk-free interest rate 1.5 % 2.8 % 2.0 % Expected Life 7.0 years 7.0 years 7.0 years The following summary presents information regarding outstanding options as of June 27, 2020 and changes during the fiscal year then ended with regard to options under all stock incentive plans: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of June 29, 2019 14,989,277 $ 50.36 Granted 3,286,943 73.15 Exercised 4,518,342 44.19 Forfeited 1,809,674 62.52 Expired — — Outstanding as of June 27, 2020 11,948,204 $ 57.12 6.98 $ 45,574 Vested or expected to vest as of June 27, 2020 5,762,300 $ 65.83 8.22 $ 9,400 Exercisable as of June 27, 2020 6,083,923 $ 48.67 5.77 $ 36,012 The total number of employee options granted was 3,286,943, 2,609,755 and 4,042,415 in fiscal years 2020, 2019 and 2018, respectively. During fiscal 2020, 1,554,566 and 1,732,377 options were granted to 12 executive officers and approximately 174 other key employees, respectively. During fiscal 2019, 657,341 and 1,952,414 options were granted to 9 executive officers and approximately 179 other key employees, respectively. During fiscal 2018, 955,344 and 3,087,071 options were granted to 10 executive officers and 181 other key employees, respectively. The weighted average grant date fair value of options granted in fiscal 2020, 2019 and 2018 was $10.57, $11.70 and $7.08, respectively. The total intrinsic value of options exercised during fiscal 2020, 2019 and 2018 was $11.6 million, $14.0 million and $17.7 million, respectively. Restricted Stock Units During fiscal 2020, 2019 and 2018, 704,732, 617,685 and 660,923 restricted stock units, respectively, were granted to employees, the majority of which will vest ratably over a three-year period. Some of these restricted stock units were granted with dividend equivalents. The fair value of each restricted stock unit award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For restricted stock unit awards granted without dividend equivalents, the fair value was reduced by the present value of expected dividends as of the date of grant date during the vesting period. The weighted average grant date fair value per share of restricted stock units granted during fiscal 2020, 2019 and 2018 was $71.01, $63.91 and $55.81, respectively. The total fair value of restricted stock units vested during fiscal 2020, 2019 and 2018 was $30.4 million, $35.3 million and $40.4 million, respectively. The total intrinsic value of options exercised during fiscal 2020, 2019 and 2018 was $35.7 million, $49.8 million and $56.4 million, respectively. Non-Employee Director Awards During fiscal 2020, 2019 and 2018, 27,431, 30,870 and 35,672 restricted equity awards, respectively, were granted to non-employee directors (NEDs), which will vest over a one-year period. NEDs may elect to receive these awards in restricted stock shares that will vest at the end of the award stated vesting period or as deferred units that convert into shares of Sysco common stock on a date subsequent to the award stated vesting date selected by the NED. The fair value of the restricted awards is based on the company’s stock price as of the date of grant. The weighted average grant date fair value of the shares granted during fiscal 2020, 2019 and 2018 was $74.17, $66.22 and $54.10, respectively. The total fair value of restricted stock shares vested and deferred units distributed during fiscal 2020, 2019 and 2018 was $2.0 million, $2.0 million and $2.9 million, respectively. Restricted stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date. NEDs may elect to receive up to 100% of their annual directors’ fees in Sysco common stock on either an annual or deferred basis. As a result of such elections, a total of 4,187, 10,672 and 21,478 shares with a weighted-average grant date fair value of $75.46, $67.45 and $54.69 per share were issued in fiscal 2020, 2019 and 2018, respectively, in the form of fully vested common stock or deferred units. The total fair value of common stock issued as a result of election shares and deferred units distributed during fiscal 2020, 2019 and 2018 was $0.2 million, $0.7 million and $1.2 million, respectively. Common stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date. As of June 27, 2020, there were 81,066 fully vested deferred units outstanding that will convert into shares of Sysco common stock upon dates selected by the respective NED. Summary of Equity Instruments Other Than Stock Options The following summary presents information regarding outstanding non-vested awards as of June 27, 2020 and changes during the fiscal year then ended with regard to these awards under the stock incentive plans. Award types represented include restricted stock units granted to employees, restricted awards granted to non-employee directors and PSUs. Shares Weighted Average Grant Date Fair Value Per Share Non-vested as of June 29, 2019 3,287,741 $ 58.40 Granted 1,505,605 72.28 Vested (1,367,165) 54.44 Forfeited (583,552) 64.97 Non-vested as of June 27, 2020 2,842,629 $ 66.31 2015 Employee Stock Purchase Plan The Sysco ESPP permits employees to invest in Sysco common stock by means of periodic payroll deductions at a discount of 15% from the closing price on the last business day of each calendar quarter. The total number of shares that may be sold pursuant to the ESPP may not exceed 79,000,000 shares, of which 5,149,259 remained available as of June 27, 2020. In order to enhance the company’s liquidity position in response to the COVID-19 pandemic, Sysco will temporarily reduce the discount applied to the common stock to 5% commencing fiscal 2021. During fiscal 2020, 1,089,296 shares of Sysco common stock were purchased by the participants, as compared to 986,631 shares purchased in fiscal 2019 and 1,078,597 shares purchased in fiscal 2018. The weighted average fair value of employee stock purchase rights issued pursuant to the ESPP was $10.03, $10.17 and $8.38 per share during fiscal 2020, 2019 and 2018, respectively. The fair value of the stock purchase rights was calculated as the difference between the stock price at date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost included in operating expenses in the consolidated results of operations was $42.2 million, $104.9 million and $93.8 million for fiscal 2020, 2019 and 2018, respectively. The company’s expense related to its PSUs decreased, as the performance metrics either resulted in a below target payment for fiscal 2020 or are trending below target for awards not yet paid. The total income tax benefit for share-based compensation arrangements was $7.0 million, $21.7 million and $19.4 million for fiscal 2020, 2019 and 2018, respectively. As of June 27, 2020, there was $79.3 million of total unrecognized share-based compensation cost, which is expected to be recognized over a weighted-average period of 1.91 years. Cash received from option exercises and ESPP participation was $227.6 million, $253.1 million and $268.8 million during fiscal 2020, 2019 and 2018, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $25.4 million, $32.4 million and $38.4 million during fiscal 2020, 2019 and 2018, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Provisions For financial reporting purposes, earnings (loss) before income taxes consists of the following: 2020 2019 2018 (In thousands) U.S. $ 742,332 $ 1,910,549 $ 1,765,793 Foreign (448,948) 95,287 190,431 Total $ 293,384 $ 2,005,836 $ 1,956,224 The income tax provision for each fiscal year consists of the following: 2020 2019 2018 (In thousands) U.S. federal income taxes $ 128,576 $ 262,940 $ 399,254 State and local income taxes 8,529 73,835 62,670 Foreign income taxes (59,196) (5,210) 63,534 Total $ 77,909 $ 331,565 $ 525,458 The current and deferred components of the income tax provisions for each fiscal year are as follows: 2020 2019 2018 (In thousands) Current $ 269,226 $ 458,284 $ 337,550 Deferred (191,317) (126,719) 187,908 Total $ 77,909 $ 331,565 $ 525,458 The deferred tax provisions result from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred Tax Assets and Liabilities Significant components of Sysco’s deferred tax assets and liabilities are as follows: Jun. 27, 2020 Jun. 29, 2019 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 379,620 $ 274,231 Pension 184,616 157,670 Receivables 99,540 17,383 Deferred compensation 31,603 29,694 Share-based compensation 21,296 39,218 Inventory 17,069 12,139 Self-insured liabilities 3,409 16,496 Other 41,820 34,366 Deferred tax assets before valuation allowances 778,973 581,197 Valuation allowances (137,862) (127,807) Total deferred tax assets 641,111 453,390 Deferred tax liabilities: Goodwill and intangible assets 329,940 358,847 Excess tax depreciation and basis differences of assets 169,920 163,123 Other 33,737 22,892 Total deferred tax liabilities 533,597 544,862 Total net deferred tax assets (liabilities) $ 107,514 $ (91,472) The company’s deferred tax asset for net operating loss carryforwards as of June 27, 2020 and June 29, 2019 consisted of state and foreign net operating tax loss carryforwards. The state net operating loss carryforwards outstanding as of June 27, 2020 expire in fiscal years 2021 through 2039. The foreign net operating loss carryforward periods vary by jurisdiction, from 17 years to unlimited. The company assesses the recoverability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. The company considers all available evidence (both positive and negative) in determining whether a valuation allowance is required. As a result of the company’s analysis, it was concluded that, as of June 27, 2020, a valuation allowance of $137.9 million should be established against the portion of the deferred tax asset attributable to certain foreign and United States (U.S.) state losses. The company will continue to monitor facts and circumstances in the reassessment of the likelihood that net operating loss carryforwards will be realized. Effective Tax Rates Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows: 2020 2019 2018 U.S. statutory federal income tax rate 21.00 % 21.00 % 28.00 % State and local income taxes, net of any applicable federal income tax benefit 5.69 3.35 2.48 Foreign income taxes (2.46) (1.42) 0.07 Uncertain tax position (1.44) (0.31) (0.22) Tax benefit of equity-based compensation (9.77) (2.07) (2.66) Nondeductible impairment charges 17.65 — — Impact of U.S. Tax Reform — (4.64) 0.13 Other (4.12) 0.62 (0.95) Effective income tax rate 26.55 % 16.53 % 26.85 % The effective tax rate of 26.55% for fiscal 2020 was impacted by the tax benefits attributable to equity compensation exercises. Our foreign operations are subject to their earnings being taxed at rates different than our domestic tax rate, as well as credits, local permanent differences and other minimum taxes which resulted in a net decrease in the effective tax rate. Nondeductible asset impairment charges have an unfavorable impact. Included within “Other” is the effect of certain non-deductible expenses in the U.S. jurisdiction as well as the impact of U.S. tax credits, return to accrual adjustments and U.S. taxes on foreign earnings. The effective tax rate of 16.53% for fiscal 2019 was favorably impacted by the reduction of the statutory rate in the U.S. and certain foreign jurisdictions, the excess tax benefits attributable to equity compensation exercises and the favorable impact of $95.1 million of foreign tax credits included within Impacts of U.S. Tax Reform. These credits fully offset our transition tax liability, as well as a reduction of the statutory tax rate in the U.S. and certain foreign jurisdictions. Foreign earnings taxed at rates different than our domestic tax rate had the impact of decreasing the effective tax rate. The effective tax rate of 26.85% for fiscal 2018 was favorably impacted by the adoption of Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) , as well as a reduction of the statutory tax rate in the U.S. and certain foreign jurisdictions. Foreign earnings taxed at rates different than our domestic tax rate had the impact of increasing the effective tax rate. Uncertain Tax Positions A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2020 2019 (In thousands) Unrecognized tax benefits at beginning of year $ 26,109 $ 12,195 Additions for tax positions related to prior years — 20,508 Reductions for tax positions related to prior years (2,974) (6,086) Reductions due to settlements with taxing authorities — (508) Unrecognized tax benefits at end of year $ 23,135 $ 26,109 As of June 27, 2020, the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $4.1 million. As of June 29, 2019, the gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $4.6 million. The expense recorded for interest and penalties related to unrecognized tax benefits was not material in any year presented. 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. If Sysco were to recognize all unrecognized tax benefits recorded as of June 27, 2020, approximately $22.4 million of the $23.1 million reserve would reduce the effective tax rate. If Sysco were to recognize all unrecognized tax benefits recorded as of June 29, 2019, approximately $24.8 million of the $26.1 million reserve would reduce the effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months either because Sysco’s positions are sustained on audit or because the company agrees to their disallowance. Items that may cause changes to unrecognized tax benefits primarily include the consideration of various filing requirements in various jurisdictions and the allocation of income and expense between tax jurisdictions. In addition, the amount of unrecognized tax benefits recognized within the next twelve months may decrease due to the expiration of the statute of limitations for certain years in various jurisdictions; however, it is possible that a jurisdiction may open an audit on one of these years prior to the statute of limitations expiring. Sysco anticipates an immaterial decrease to the reserve within twelve months as a result of lapse of statutes. Sysco’s federal tax returns for 2018 and subsequent tax years have statutes of limitations that remain open for audit. As of June 27, 2020, Sysco’s tax returns in the majority of the state and local and material foreign jurisdictions are no longer subject to audit for the years before 2012. Other Sysco intends to indefinitely reinvest income of its foreign operations, and, as a result, no accruals have been made with respect to the tax effects of unremitted earnings, including impacts of outside basis differences, withholding taxes any distributions may be subject to or residual U.S. income taxes, if any. As a result of the U.S. Tax Cuts and Jobs Act, unremitted earnings prior to the effective date of the act have been subject to U.S. income tax. Any residual tax effects are immaterial to the financial statements. The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects income earned and taxed in the various U.S. federal and state, as well as foreign jurisdictions. Tax law changes, increases or decreases in permanent book versus tax basis differences, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 27, 2020 | |
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. Other Commitments Sysco has committed to aggregate product purchases for resale in order to benefit from a centralized approach to purchasing. A majority of these agreements expire within one year; however, certain agreements have terms through fiscal 2024. These agreements commit the company to a minimum volume at various pricing terms, including fixed pricing, variable pricing or a combination thereof. Minimum amounts committed to as of June 27, 2020 totaled approximately $6.1 billion. Minimum amounts committed to by year are as follows: Amount (In thousands) 2021 $ 3,927,035 2022 1,402,700 2023 533,739 2024 253,533 2025 — Sysco has contracts with various third-party service providers to receive information technology services. The services have been committed for periods up to fiscal 2026 and may be extended. As of June 27, 2020, the total remaining cost of the services over that period is expected to be approximately $321.7 million. A portion of this committed amount may be reduced by Sysco utilizing less than estimated resources and can be increased by Sysco utilizing more than estimated resources. Certain agreements allow adjustments for inflation. Sysco may also cancel a portion or all of the services provided subject to |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The company has aggregated certain of its operating segments into three reportable segments. “Other” financial information is attributable to the company’s other operating segments that do not meet the quantitative disclosure thresholds. • U.S. Foodservice Operations - primarily includes U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products; • International Foodservice Operations - includes operations in the Americas and Europe, which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as the company’s operations that distribute to international customers. The company’s European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden; • SYGMA - the company’s U.S. customized distribution subsidiary; and • Other - primarily its hotel supply operations. 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 also include all share-based compensation costs. During the fourth quarter of fiscal 2020, Sysco revised the way performance is assessed for the U.S. Foodservice Operations segment. As a result of this change, charges incurred by the company’s corporate and shared services center, to provide direct support functions to the U.S. Foodservice Operations reportable segment, have been reclassified from Corporate expenses into the U.S. Foodservice reportable segment. The segment information disclosed for fiscal 2020 reflects this change in reporting structure, and the fiscal 2019 and fiscal 2018 results reflect $201.0 million and $197.0 million of corporate expense reclassifications, respectively, to conform with the current year presentation. The following tables set forth certain financial information for Sysco’s business segments. Fiscal Year 2020 2019 2018 Sales: (In thousands) U.S. Foodservice Operations $ 36,774,146 $ 41,288,188 $ 39,642,263 International Foodservice Operations 9,672,190 11,493,040 11,518,565 SYGMA 5,555,926 6,244,328 6,557,033 Other 891,048 1,088,366 1,009,463 Total $ 52,893,310 $ 60,113,922 $ 58,727,324 Fiscal Year 2020 2019 2018 Operating income (loss): (In thousands) U.S. Foodservice Operations $ 2,003,159 $ 2,991,794 $ 2,859,812 International Foodservice Operations (371,407) 125,443 193,864 SYGMA 36,880 27,780 24,318 Other (21,361) 35,848 39,485 Total segments 1,647,271 3,180,865 3,117,479 Corporate (897,766) (850,715) (803,423) Total operating income 749,505 2,330,150 2,314,056 Interest expense 408,220 360,423 395,483 Other expense (income), net 47,901 (36,109) (37,651) Earnings before income taxes $ 293,384 $ 2,005,836 $ 1,956,224 Fiscal Year 2020 2019 2018 Depreciation and amortization: (In thousands) U.S. Foodservice Operations $ 373,889 $ 342,277 $ 348,041 International Foodservice Operations 279,475 248,914 258,156 SYGMA 34,785 35,473 36,367 Other 12,072 10,868 9,599 Total segments 700,221 637,532 652,163 Corporate 105,544 126,403 113,335 Total $ 805,765 $ 763,935 $ 765,498 Fiscal Year 2020 2019 2018 Capital Expenditures: (In thousands) U.S. Foodservice Operations $ 263,943 $ 327,005 $ 262,887 International Foodservice Operations 217,694 249,527 157,139 SYGMA 23,657 36,396 45,132 Other 21,000 25,003 11,406 Total segments 526,294 637,931 476,564 Corporate 194,129 54,460 211,251 Total $ 720,423 $ 692,391 $ 687,815 Fiscal Year 2020 2019 2018 Assets: (In thousands) U.S. Foodservice Operations $ 6,647,288 $ 7,238,309 $ 7,039,354 International Foodservice Operations 6,258,382 5,888,275 6,112,666 SYGMA 685,184 624,720 662,290 Other 458,316 477,038 452,426 Total segments 14,049,170 14,228,342 14,266,736 Corporate 8,579,096 3,738,180 3,803,668 Total $ 22,628,266 $ 17,966,522 $ 18,070,404 Information concerning geographic areas is as follows: Fiscal Year 2020 2019 2018 (In thousands) Sales: United States $ 42,803,700 $ 48,257,385 $ 46,812,297 Canada 4,105,236 4,660,030 4,661,615 United Kingdom 2,481,712 3,133,793 3,176,069 France 1,222,742 1,581,663 1,625,407 Other 2,279,920 2,481,051 2,451,936 Total $ 52,893,310 $ 60,113,922 $ 58,727,324 Long-lived assets: United States $ 3,340,920 $ 3,361,629 $ 3,448,164 Canada 331,196 334,177 318,410 France 308,983 329,923 240,507 United Kingdom 255,153 270,613 319,664 Other 222,315 205,363 194,915 Total $ 4,458,567 $ 4,501,705 $ 4,521,660 The sales mix for the principal product categories by segment is disclosed in Note 4, “Revenue.” |
QUARTERLY RESULTS (UNAUDITED)
QUARTERLY RESULTS (UNAUDITED) | 12 Months Ended |
Jun. 27, 2020 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) Sysco’s fiscal year includes four quarterly periods that are comprised of thirteen weeks each. Financial information for each 13-week period in the fiscal years ended June 27, 2020 and June 29, 2019 is set forth below: Fiscal 2020 Quarter Ended September 28 December 28 March 28 June 27 Fiscal Year (In thousands except for per share data) Sales $ 15,303,005 $ 15,025,042 $ 13,698,699 $ 8,866,564 $ 52,893,310 Cost of sales 12,359,635 12,196,643 11,134,459 7,300,909 42,991,646 Gross profit 2,943,370 2,828,399 2,564,240 1,565,655 9,901,664 Operating expenses (1) 2,275,052 2,275,906 2,503,966 2,097,235 9,152,159 Operating income (loss) 668,318 552,493 60,274 (531,580) 749,505 Interest expense 83,335 76,762 83,854 164,269 408,220 Other expense (income), net (2) 3,112 (807) 5,200 40,396 47,901 Earnings before income taxes 581,871 476,538 (28,780) (736,245) 293,384 Income taxes 128,090 93,128 (25,483) (117,826) 77,909 Net earnings (loss) $ 453,781 $ 383,410 $ (3,297) $ (618,419) $ 215,475 Per share: Basic net earnings (loss) (3) $ 0.88 $ 0.75 $ (0.01) $ (1.22) $ 0.42 Diluted net earnings (loss) (3) 0.87 0.74 (0.01) (1.22) 0.42 Dividends declared 0.39 0.45 0.45 0.45 1.74 (1) Sysco’s results in the third and fourth quarters of fiscal 2020 included charges associated with the COVID-19 pandemic, such as $323.4 million of excess bad debt expense and $203.2 million of goodwill impairment. (2) Sysco’s fourth quarter of fiscal 2020 results included a $55.9 million impairment on assets held for sale. (3) Quarterly basic and diluted earnings (loss) per share amounts may not add up to the full fiscal year total presented due to rounding. Basic and diluted earnings (loss) per share is calculated by dividing net earnings (loss) by basic and diluted shares outstanding, respectively. Fiscal 2019 Quarter Ended September 29 December 29 March 30 June 29 Fiscal Year (In thousands except for per share data) Sales $ 15,215,279 $ 14,765,707 $ 14,658,074 $ 15,474,862 $ 60,113,922 Cost of sales 12,311,494 11,993,995 11,903,776 12,495,670 48,704,935 Gross profit 2,903,785 2,771,712 2,754,298 2,979,192 11,408,987 Operating expenses 2,275,645 2,319,817 2,224,713 2,258,662 9,078,837 Operating income 628,140 451,895 529,585 720,530 2,330,150 Interest expense 89,016 87,113 94,514 89,780 360,423 Other expense (income), net (1) 1,132 10,197 4,120 (51,558) (36,109) Earnings before income taxes 537,992 354,585 430,951 682,308 2,005,836 Income taxes (2) 106,950 87,205 (9,132) 146,542 331,565 Net earnings $ 431,042 $ 267,380 $ 440,083 $ 535,766 $ 1,674,271 Per share: Basic net earnings (3) $ 0.83 $ 0.52 $ 0.86 $ 1.04 $ 3.24 Diluted net earnings (3) 0.81 0.51 0.85 1.03 3.20 Dividends declared 0.36 0.39 0.39 0.39 1.53 (1) Sysco’s fourth quarter of fiscal 2019 results included a $66.3 million gain on the sale of Iowa Premium, LLC. (2) Sysco’s third quarter of fiscal 2019 results included the recognition of $95.1 million of foreign tax credits generated as a result of distributions to Sysco from its foreign operations at the end of fiscal 2018. See Note 20, “Income Taxes.” (3) Quarterly basic and diluted earnings (loss) per share amounts may not add up to the full fiscal year total presented due to rounding. Basic and diluted earnings (loss) per share is calculated by dividing net earnings (loss) by basic and diluted shares outstanding, respectively. |
SUMMARY OF ACCOUNTING POLICIES
SUMMARY OF ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Business and Consolidation | Business and Consolidation Sysco Corporation, acting through its subsidiaries and divisions (Sysco or the company), is engaged in the marketing and distribution of a wide range of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for over 625,000 customers from 326 distribution facilities located throughout North America and Europe. Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 52-week year ended June 27, 2020 for fiscal 2020, June 29, 2019 for fiscal 2019 and June 30, 2018 for fiscal 2018. The accompanying financial statements include the accounts of Sysco and its consolidated subsidiaries. All significant intercompany transactions and account balances have been eliminated. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the reported amounts of assets, liabilities, sales and expenses. Actual results could differ from the estimates used. |
Fiscal period | Sysco’s fiscal year ends on the Saturday nearest to June 30 th |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash equivalents such as 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, which are recorded at fair value. |
Accounts Receivable, Less Allowances | Accounts Receivable, Less Allowances Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates the collectability of accounts receivable and determines the appropriate reserve for doubtful accounts based on a combination of factors. The company utilizes specific criteria to determine uncollectible receivables to be written off including whether a customer has filed for or been placed in bankruptcy, has had accounts referred to outside parties for collection or has had accounts past due over specified periods. In these instances, a specific allowance for doubtful accounts is recorded to reduce the receivable to the net amount reasonably expected to be collected. Allowances are recorded for all other receivables based on an analysis of historical trends of write-offs and recoveries. |
Inventories | Inventories Inventories consisting primarily of finished goods include food and related products and lodging products held for resale and are valued at the lower of cost (first-in, first-out method) and net realizable value. Elements of costs include the purchase price of the product and freight charges to deliver the product to the company’s warehouses and are net of certain cash received from vendors (see “Vendor Consideration”). |
Plant and Equipment | Plant and Equipment Capital additions, improvements and major replacements are classified as plant and equipment and are carried at cost. Depreciation is recorded using the straight-line method, which reduces the book value of each asset in equal amounts over its estimated useful life, and is included within operating expenses in the consolidated results of operations. Maintenance, repairs and minor replacements are charged to earnings when they are incurred. Upon the disposition of an asset, its accumulated depreciation is deducted from the original cost, and any gain or loss is reflected in current earnings. |
Long-Lived Assets | Long-Lived Assets Management reviews long-lived assets, including finite-lived intangible assets, for indicators of impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Cash flows expected to be generated by the related assets are estimated over the asset’s useful life based on updated projections on an undiscounted basis. For assets held for use, Sysco groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If the evaluation indicates that the carrying value of the asset may not be recoverable, the potential impairment is measured using fair value. Impairment losses for assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Goodwill and Indefinite-Lived Intangibles | Goodwill and Indefinite-Lived Intangibles Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill and intangibles with indefinite lives are not amortized. Goodwill is assigned to the reporting units that are expected to benefit from the synergies of a business combination. The recoverability of goodwill and indefinite-lived intangibles is assessed annually, or more frequently as needed when events or changes have occurred that would suggest an impairment of carrying value, by determining whether the fair values of the applicable reporting units exceed their carrying values. This annual testing may be performed utilizing either a qualitative or quantitative assessment; however, if a qualitative assessment is performed and it is determined that the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) to be less than its carrying amount, a quantitative test is performed. For fiscal 2020, the company utilized a qualitative assessment for certain reporting units. For the remaining reporting units, Sysco performed a quantitative test using a combination of the income and market approaches. The evaluation of fair value requires the use of projections, estimates and assumptions as to the future performance of the operations in performing a discounted cash flow analysis, as well as assumptions regarding sales and earnings multiples that would be applied in comparable acquisitions. The company does not believe the estimates used in the analysis are reasonably likely to change materially in the future; however, the impact of the COVID-19 pandemic on estimated future cash flows is uncertain and will largely depend on the outcome of future events, which could result in further goodwill impairments going forward. In the third quarter of fiscal 2020, the company recorded impairments to goodwill for the Pacific Star and Cake reporting units of $34.9 million and $34.2 million, respectively, which represented the full balance of goodwill for those reporting units. During the fourth quarter of fiscal 2020, the company recorded partial impairments to goodwill for the France Group and Fresh Direct reporting units of $108.7 million and $25.4 million respectively, for total fiscal 2020 impairment charges of $203.2 million, which are included within operating expenses in the consolidated results of operations. In the fourth quarter fiscal 2020 annual assessment, impairment charges would have been applicable for two reporting units if our estimates of fair value were decreased by ranges of 17% to 29%, with goodwill of $369.5 million in the aggregate as of June 27, 2020, recorded for these reporting units. |
Derivative Financial Instruments | Derivative Financial Instruments All derivatives are recognized as assets or liabilities within the consolidated balance sheets at fair value at their gross values. Gains or losses on derivative financial instruments designated as fair value hedges are recognized immediately in the consolidated results of operations, along with the offsetting gain or loss related to the underlying hedged item. Gains or losses on derivative financial instruments designated as cash flow hedges are recorded as a separate component of shareholders’ equity from inception of the hedges and are reclassified to the consolidated results of operations in conjunction with the recognition of the underlying hedged item. For net investment hedges, the remeasurement gain or loss is recorded in accumulated other comprehensive income and will be subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated. |
Investments in Corporate-Owned Life Insurance | Investments in Corporate-Owned Life InsuranceInvestments in Corporate-Owned Life Insurance (COLI) policies are recorded at their cash surrender values as of each balance sheet date. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses. Sysco has the ability and intent to hold certain of its COLI policies to maturity; therefore, the company does not record deferred tax balances related to cash surrender value gains or losses for these policies. |
Treasury Stock | Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of all foreign subsidiaries are translated at current exchange rates. Related translation adjustments are recorded as a component of AOCI (loss). |
Revenue Recognition/Shipping and Handling Costs | Revenue Recognition On July 1, 2018, Sysco adopted Accounting Standards Codification (ASC) Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under ASC Topic 605, Revenue Recognition. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for fiscal 2020 or fiscal 2019 as a result of applying ASC Topic 606. The accounting policies and other disclosures are below, as well as the disclosure of disaggregated revenues in Note 4, “Revenue.” The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and, therefore, not assessed as performance obligations. Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses. Product Sales Revenues Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment. Contract Balances After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in accounts receivable, less allowances in the consolidated balance sheet, were $2.7 billion and $3.9 billion as of June 27, 2020 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 June 27, 2020, Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. |
Vendor Consideration | Vendor ConsiderationSysco recognizes consideration received from vendors as a reduction to cost of sales when the services performed in connection with the monies received are completed and when the related product has been sold by Sysco. In many instances, the vendor consideration is in the form of a specified amount per case or per pound. In these instances, Sysco will recognize the vendor consideration as a reduction of cost of sales when the product is sold. |
Insurance Program | Insurance Program Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts in excess of the self-insured levels are fully insured by third party insurers. Sysco has a wholly owned captive insurance subsidiary (the Captive) with the primary purpose to enhance Sysco’s risk financing strategies by providing Sysco the opportunity to negotiate insurance premiums in the non-retail insurance market. The Captive must maintain a sufficient level of cash to fund future reserve payments and secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. The Captive holds restricted assets in order to meet solvency requirements, including a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale, and cash and restricted cash equivalents held in a cash deposit account. Further, Sysco has letters of credit available to collateralize the remaining liabilities not covered by restricted cash, restricted cash equivalents and marketable securities. The company also maintains a fully self-insured group medical program. Liabilities associated with these risks are estimated in part by considering historical claims experience, medical cost trends, demographic factors, severity factors and other actuarial assumptions. |
Share-Based Compensation | Share-Based Compensation Sysco recognizes expense for its share-based compensation based on the fair value of the awards that are granted. The fair value of performance share unit awards is determined based on the target number of shares of common stock and the company’s stock price on the date of grant and subsequently adjusted based on actual and forecasted performance compared to planned targets. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model. Option pricing methods require the input of highly subjective assumptions, including the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company’s stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. The method for estimating the fair value of stock options has not changed in the past three years. During the vesting period, Sysco reduces share-based compensation expense for estimated forfeitures, which is based on analysis of historical trends reviewed on an annual basis. Sysco’s estimate of forfeitures is applied at the grant level. The estimate of forfeitures is trued up to actual forfeitures at the end of each vesting period. |
Income Taxes | Income Taxes Sysco recognizes deferred tax assets and liabilities based on the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The impact on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount more likely than not to be realized. The additional United States (U.S.) federal tax burden as a result of the global intangible low taxed income regime is accounted for as a periodic cost. 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 primarily reflects a combination of income earned and taxed in the various U.S. federal and state, as well as various foreign jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. |
Acquisitions | Acquisitions Acquisitions of businesses are accounted for using the acquisition method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. |
Basis of Presentation | Basis of Presentation 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 and cash flows for all periods presented have been made. Sysco has interests in various jointly owned foodservice operations in Mexico, Panama and Sweden for which it consolidates the results of the operations; therefore, the financial position, results of operations and cash flows for these companies have been included in Sysco’s consolidated financial statements. The value of the noncontrolling interest in each entity is considered redeemable due to certain features of the investment agreement and has, therefore, been presented as mezzanine equity, which is outside of permanent equity, in the consolidated balance sheets. The income attributable to the noncontrolling interest is located within Other expense (income), net, in the consolidated results of operations, as this amount is not material. The non-cash add back for the change in the value of the noncontrolling interest is located within Other non-cash items on the consolidated cash flows. |
Reclassifications | Reclassifications Prior year amounts have been reclassified to conform with the current year presentation. |
New Accounting Pronouncements | Guarantor Reporting In March 2020, the SEC issued a final rule, Financial Disclosures About Guarantors and Issuers of Guaranteed Securities and Affiliates Whose Securities Collateralize a Registrant’s Securities , that simplifies the disclosure requirements related to registered securities under Rule 3-10 of Regulation S-X. The rule replaces the requirement to provide condensed consolidating financial information with a requirement to present summarized financial information of the issuers and guarantors. It also requires qualitative disclosures with respect to information about guarantors, the terms and conditions of guarantees and the factors that may affect payment. These disclosures may be provided outside the footnotes to the company’s consolidated financial statements. Sysco early adopted the reporting requirements of the rule in the fourth quarter of fiscal 2020 and elected to provide these disclosures in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Leases In February 2016, the Financial Accounting Standards Board (FASB) 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 14, “Leases.” Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years-and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company has substantially completed its assessment of the accounting required under Topic 326. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 using the modified retrospective method. Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company has substantially completed its assessment of the accounting required under ASU 2018-15. Sysco does not expect that the implementation of the new standard will have a material effect on the company’s financial statements. The company will adopt the standard in the first quarter of fiscal 2021 on a prospective basis. |
SUMMARY OF ACCOUNTING POLICIE_2
SUMMARY OF ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Balance Sheets: Jun. 27, 2020 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Cash and cash equivalents $ 6,059,427 $ 513,460 $ 552,325 Restricted cash (1) 36,143 18,785 163,519 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 6,095,570 $ 532,245 $ 715,844 (1) Restricted cash primarily represents cash and cash equivalents of the Captive, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within Other assets in each consolidated balance sheet. |
Schedule of Restrictions on Cash and Cash Equivalents | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows that sum to the total of the same such amounts shown in the Consolidated Balance Sheets: Jun. 27, 2020 Jun. 29, 2019 Jun. 30, 2018 (In thousands) Cash and cash equivalents $ 6,059,427 $ 513,460 $ 552,325 Restricted cash (1) 36,143 18,785 163,519 Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows $ 6,095,570 $ 532,245 $ 715,844 (1) Restricted cash primarily represents cash and cash equivalents of the Captive, 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) | 12 Months Ended |
Jun. 27, 2020 | |
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: 52-Week Period Ended Jun. 27, 2020 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 7,276,675 $ 1,339,340 $ 1,509,375 $ — $ 10,125,390 Canned and dry products 6,603,902 1,940,506 121,646 — 8,666,054 Frozen fruits, vegetables, bakery and other 5,019,696 1,831,950 979,480 — 7,831,126 Dairy products 3,885,771 1,021,195 545,985 — 5,452,951 Poultry 3,749,786 718,753 774,629 — 5,243,168 Fresh produce 3,425,558 834,056 236,408 — 4,496,022 Paper and disposables 2,616,184 336,199 646,920 57,159 3,656,462 Seafood 2,186,208 407,179 102,082 — 2,695,469 Beverage products 940,534 413,315 540,545 68,393 1,962,787 Other (1) 1,069,832 829,697 98,856 765,496 2,763,881 Total Sales $ 36,774,146 $ 9,672,190 $ 5,555,926 $ 891,048 $ 52,893,310 (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. 52-Week Period Ended Jun. 29, 2019 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,422,126 $ 1,627,392 $ 1,520,907 $ — $ 11,570,425 Canned and dry products 7,344,015 2,326,584 270,651 — 9,941,250 Frozen fruits, vegetables, bakery and other 5,708,030 2,074,991 1,194,944 — 8,977,965 Dairy products 4,265,320 1,243,773 604,624 — 6,113,717 Poultry 4,121,367 833,844 892,316 — 5,847,527 Fresh produce 3,801,828 1,022,503 241,602 — 5,065,933 Paper and disposables 2,797,521 369,329 731,511 61,908 3,960,269 Seafood 2,550,524 717,703 113,746 — 3,381,973 Beverage products 1,127,701 531,247 563,401 86,845 2,309,194 Other (1) 1,149,756 745,674 110,626 939,613 2,945,669 Total Sales $ 41,288,188 $ 11,493,040 $ 6,244,328 $ 1,088,366 $ 60,113,922 (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. 52-Week Period Ended Jun. 30, 2018 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Principal Product Categories Fresh and frozen meats $ 8,123,565 $ 1,666,247 $ 1,523,029 $ — $ 11,312,841 Canned and dry products 7,093,691 2,367,921 327,785 — 9,789,397 Frozen fruits, vegetables, bakery and other 5,327,020 2,538,265 1,160,369 — 9,025,654 Dairy products 4,136,973 1,260,354 640,482 — 6,037,809 Poultry 4,020,340 833,917 1,125,085 — 5,979,342 Fresh produce 3,642,247 1,031,796 255,192 — 4,929,235 Paper and disposables 2,639,280 400,345 739,074 59,166 3,837,865 Seafood 2,449,741 726,010 104,459 — 3,280,210 Beverage products 1,107,574 196,379 576,359 84,868 1,965,180 Other (1) 1,101,832 497,331 105,199 865,429 2,569,791 Total Sales $ 39,642,263 $ 11,518,565 $ 6,557,033 $ 1,009,463 $ 58,727,324 (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) | 12 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 and June 29, 2019: Assets and Liabilities Measured at Fair Value as of Jun. 27, 2020 Level 1 Level 2 Level 3 Total (In thousands) Assets: Cash equivalents Cash and cash equivalents $ 5,245,487 $ 300,200 $ — $ 5,545,687 Other assets (1) 36,143 — — 36,143 Total assets at fair value $ 5,281,630 $ 300,200 $ — $ 5,581,830 (1) Represents restricted cash balance recorded within other assets in the consolidated balance sheet. Assets and Liabilities 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) | 12 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 and June 29, 2019: Jun. 27, 2020 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 $ 78,651 $ 4,064 $ — $ 82,715 $ 18,233 $ 64,482 Government bonds 28,633 4,919 — 33,552 — 33,552 Total marketable securities $ 107,284 $ 8,983 $ — $ 116,267 $ 18,233 $ 98,034 Jun. 29, 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 $ 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 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of valuation and qualifying accounts disclosure table | A summary of the activity in the allowance for doubtful accounts appears below: 2020 2019 2018 (In thousands) Balance at beginning of period $ 28,176 $ 25,768 $ 31,059 Charged to costs and expenses 404,158 62,946 21,448 Customer accounts written off, net of recoveries (83,915) (64,219) (27,120) Other adjustments (13,609) 3,681 381 Balance at end of period $ 334,810 $ 28,176 $ 25,768 |
PLANT AND EQUIPMENT (Tables)
PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of plant and equipment, including the related accumulated depreciation table | A summary of plant and equipment, including the related accumulated depreciation, appears below: Jun. 27, 2020 Jun. 29, 2019 Estimated Useful Lives (In thousands) Plant and equipment at cost: Land $ 493,694 $ 498,180 Buildings and improvements 4,854,307 4,545,099 10-30 years Fleet and equipment 3,561,500 3,697,008 3-10 years Computer hardware and software 1,258,980 1,213,942 3-7 years Total plant and equipment at cost 10,168,481 9,954,229 Accumulated depreciation (5,709,914) (5,452,524) Total plant and equipment, net $ 4,458,567 $ 4,501,705 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill rollforward table by reporting segments | The changes in the carrying amount of goodwill by reportable segment for the years presented are as follows: U.S. Foodservice Operations International Foodservice Operations SYGMA Other Total (In thousands) Carrying amount as of June 30, 2018 $ 1,260,900 $ 2,440,821 $ 32,607 $ 221,157 $ 3,955,485 Goodwill acquired during year 10,428 9,127 — — 19,555 Currency translation/other (5,843) (74,016) — 1,045 (78,814) Carrying amount as of June 29, 2019 $ 1,265,485 $ 2,375,932 $ 32,607 $ 222,202 $ 3,896,226 Goodwill acquired during year 90,477 — — — 90,477 Impairment — (169,007) — (34,199) (203,206) Currency translation/other 2,162 (53,164) — (26) (51,028) Carrying amount as of June 27, 2020 $ 1,358,124 $ 2,153,761 $ 32,607 $ 187,977 $ 3,732,469 |
Amortized intangible assets table | Fully amortized intangible assets have been removed in the period fully amortized in the table below, which presents the company’s amortizable intangible assets in total by category as follows: Jun. 27, 2020 Jun. 29, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Customer relationships $ 1,048,702 $ (434,262) $ 614,440 $ 1,052,608 $ (358,592) $ 694,016 Non-compete agreements 23,252 (10,182) 13,070 11,827 (8,556) 3,271 Trademarks 13,691 (5,816) 7,875 14,785 (5,736) 9,049 Other — — — 185 (148) 37 Total amortizable intangible $ 1,085,645 $ (450,260) $ 635,385 $ 1,079,405 $ (373,032) $ 706,373 |
Indefinite-lived intangible assets table | The table below presents the company’s indefinite-lived intangible assets by category as follows: Jun. 27, 2020 Jun. 29, 2019 (In thousands) Trademarks $ 143,820 $ 149,962 Licenses 966 966 Total indefinite-lived intangible assets $ 144,786 $ 150,928 |
Intangibles estimated amortization expense for the next five years table | The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 27, 2020 is shown below: Amount (In thousands) 2021 $ 96,877 2022 95,042 2023 91,867 2024 88,022 2025 79,739 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of outstanding swap agreements | 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 (June 29, 2020 to August 2020) Swedish Krona 133 Various (July 2020 to February 2021) British Pound Sterling 14 July 2021 British Pound Sterling 234 June 2023 Euro 500 Hedging of fuel risk Various (June 30, 2020 to December 2021) Gallons 54 |
Derivatives balance sheet location table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of June 27, 2020 and June 29, 2019 are as follows: Derivative Fair Value Balance Sheet location Jun. 27, 2020 Jun. 29, 2019 (In thousands) Fair Value Hedges: Interest rate swaps Other current assets $ 1,388 $ — Interest rate swaps Other assets 69,782 37,396 Interest rate swaps Other long-term liabilities — 9,285 Cash Flow Hedges: Fuel swaps Other current assets $ 233 $ 154 Foreign currency forwards Other current assets 1,063 624 Fuel swaps Other assets 1,173 136 Cross currency swaps Other assets 19,614 8,592 Fuel swaps Other current liabilities 28,242 6,537 Foreign currency forwards Other current liabilities 222 162 Fuel swaps Other long-term liabilities — 239 Net Investment Hedges: Foreign currency swaps Other assets $ — $ 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 June 27, 2020 are as follows: Jun. 27, 2020 Carrying Amount of Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) (In thousands) Balance sheet location: Current maturities of long-term debt $ (749,924) $ (1,388) Long-term debt (1,563,636) (70,239) 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) |
Derivatives financial statement performance table | 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: Jun. 27, 2020 Jun. 29, 2019 Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded $ 408,220 $ 360,423 Gain or (loss) on fair value hedging relationships: Interest rate swaps: Hedged items $ (101,255) $ (143,711) Derivatives designated as hedging instruments 44,489 68,689 The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented: Jun. 27, 2020 Jun. 29, 2019 Interest expense $ (58,244) $ (62,443) Increase in fair value of debt 43,011 81,268 Hedged items $ (101,255) $ (143,711) The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended June 27, 2020 and June 29, 2019, presented on a pretax basis, are as follows: 2020 Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (In thousands) (In thousands) Derivatives in cash flow hedging relationships: Fuel swaps $ (16,586) Operating expense $ (22,058) Foreign currency contracts 6,755 Cost of sales / Other income 3,626 Total $ (9,831) $ (18,432) Derivatives in net investment hedging relationships: Foreign currency contracts $ 51,354 N/A $ — Foreign denominated debt 7,402 N/A — Total $ 58,756 $ — 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 $ (22,100) Operating expense $ 8,180 Foreign currency contracts 16,706 Cost of goods sold / Other income 509 Total $ (5,394) $ 8,689 Derivatives in net investment hedging relationships: Foreign currency contracts $ 42,488 N/A $ — Foreign denominated debt 15,650 N/A — Total $ 58,138 $ — |
SELF-INSURED LIABILITIES (Table
SELF-INSURED LIABILITIES (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Loss Contingency [Abstract] | |
Summary of the activity in the self-insured liabilities | A summary of the activity in self-insured liabilities appears below: 2020 2019 2018 (In thousands) Balance at beginning of period $ 297,817 $ 270,986 $ 245,811 Charged to costs and expenses 502,315 492,411 461,867 Payments (470,484) (465,580) (436,692) Balance at end of period $ 329,648 $ 297,817 $ 270,986 |
DEBT AND OTHER FINANCING ARRA_2
DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Sysco’s debt consists of the following: Jun. 27, 2020 Jun. 29, 2019 (In thousands) U.S. Commercial paper, interest at 2.56% as of June 29, 2019 $ — $ 132,081 U.K. Commercial paper, interest at 0.454%, maturing in fiscal 2021 740,226 — Senior notes, interest at 2.60%, maturing in fiscal 2021 (1)(2) 751,312 744,034 Senior notes, interest at 2.50%, maturing in fiscal 2022 (1)(2) 504,352 494,814 Senior notes, interest at 2.60%, maturing in fiscal 2022 (1)(2) 448,336 447,509 Senior notes, interest at 1.25%, maturing in fiscal 2023 (1)(2) 568,011 576,771 Senior notes, interest at 3.55%, maturing in fiscal 2025 (1)(2) 551,756 521,490 Senior notes, interest at 3.65%, maturing in fiscal 2025 (1) 362,785 379,658 Senior notes, interest at 5.65%, maturing in fiscal 2025 (1)(2) 745,241 — Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2) 747,727 747,330 Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2) 993,978 993,084 Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3) 44,273 44,272 Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2) 744,046 743,304 Debentures, interest at 6.50%, maturing in fiscal 2029 (2)(3) 162,416 162,150 Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2) 495,273 — Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2) 1,239,439 — Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2) 382,190 382,250 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2) 199,390 199,198 Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2) 740,188 — Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2) 496,017 495,860 Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2) 494,338 494,215 Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2) 492,662 492,579 Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2) 1,233,666 — Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2) 494,428 — Long-term revolving credit facility, interest at 2.125%, maturing in fiscal 2024 (2) 694,951 — Notes payable, capital leases, and other debt, interest averaging 4.53% and maturing at various dates to fiscal 2046 as of June 27, 2020 and 4.99% and maturing at various dates to fiscal 2031 as of June 29, 2019 119,878 112,738 Total debt 14,446,879 8,163,337 Less current maturities of long-term debt (1,542,128) (37,322) Less notes payable (2,266) (3,957) Net long-term debt $ 12,902,485 $ 8,122,058 (1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption. (2) Represents senior notes, debentures and borrowings under the company’s long-term revolving credit facility that are guaranteed by certain wholly owned U.S. Broadline subsidiaries of Sysco Corporation as discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” (3) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity. |
Long-term debt principal payments for the next five years table | As of June 27, 2020, the principal payments required to be made during the next five fiscal years on total debt, excluding notes payable, are shown below: Amount (In thousands) 2021 $ 1,490,284 2022 950,000 2023 561,098 2024 700,000 2025 1,614,538 |
Schedule of Senior Notes Details | Details of the senior notes are as follows: Maturity Date Par Value Coupon Rate Pricing April 1, 2025 (the 5.650% Senior Notes due 2025) $ 750 5.65 % 99.931 % April 1, 2030 (the 5.950% Senior Notes due 2030) 1,250 5.95 99.792 April 1, 2040 (the 6.600% Senior Notes due 2040) 750 6.60 99.802 April 1, 2050 (the 6.600% Senior Notes due 2050) 1,250 6.60 99.767 Maturity Date Par Value Coupon Rate Pricing February 15, 2030 (the 2030 Notes) (1) $ 500 2.40 % 99.647 % February 15, 2050 (the 2050 Notes) 500 3.30 99.811 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Schedule Of Lease, 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 June 27, 2020: Consolidated Balance Sheet Location Jun. 27, 2020 (In thousands) Finance lease right-of-use assets Plant and equipment at cost, less accumulated depreciation $ 99,918 Current finance lease liabilities Current maturities of long-term debt 33,670 Long-term finance lease liabilities Long-term debt 68,942 |
Schedule of Lease Costs | The following table presents lease costs for each of the presented periods ended June 27, 2020: Consolidated Results of Operations Location 2020 (In thousands) Operating lease cost Operating expenses $ 123,269 Financing lease cost: Amortization of right-of-use assets Operating expenses 38,285 Interest on lease obligations Interest expense 4,667 Variable lease cost Operating expenses 7,606 Short-term lease cost Operating expenses 13,602 Net lease cost $ 187,429 Other information related to lease agreements was as follows: 2020 Cash Paid For Amounts Included In Measurement of Liabilities: (Dollars in thousands) Operating cash flows for operating leases $ 124,040 Operating cash flows for financing leases 4,666 Financing cash flows for financing leases 34,145 Supplemental Non-cash Information on Lease Liabilities: Assets obtained in exchange for operating lease obligations $ 64,968 Assets obtained in exchange for finance lease obligations 17,019 Lease Term and Discount Rate: Weighted-average remaining lease term (years): Operating leases 11.54 years Financing leases 4.03 years Weighted-average discount rate: Operating leases 2.37 % Financing leases 4.24 % |
Schedule of Minimum Operating Lease Obligations | Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of June 27, 2020 are as follows: Operating Leases Finance Leases (In thousands) 2021 $ 120,815 $ 37,218 2022 91,755 26,889 2023 75,845 19,916 2024 52,480 12,786 2025 46,746 7,828 Thereafter 343,056 7,102 Total undiscounted lease obligations 730,697 111,739 Less imputed interest (100,034) (9,127) Present value of lease obligations $ 630,663 $ 102,612 |
Schedule of Minimum Finance Lease Obligations | Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of June 27, 2020 are as follows: Operating Leases Finance Leases (In thousands) 2021 $ 120,815 $ 37,218 2022 91,755 26,889 2023 75,845 19,916 2024 52,480 12,786 2025 46,746 7,828 Thereafter 343,056 7,102 Total undiscounted lease obligations 730,697 111,739 Less imputed interest (100,034) (9,127) Present value of lease obligations $ 630,663 $ 102,612 |
COMPANY-SPONSORED EMPLOYEE BE_2
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Retirement Benefits [Abstract] | |
Defined benefit plans funded status table | The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. As Sysco’s fiscal 2020 year end is June 27, 2020, the company utilized a practical expedient permitting Sysco to measure its defined benefit plan assets and obligations as of the month end closest to the fiscal year end, and has used June 30, 2020 as the measurement date of the plan assets and obligations disclosed herein. U.S. Pension Benefits International Pension Benefits Jun. 27, 2020 Jun. 29, 2019 Jun. 27, 2020 Jun. 29, 2019 (In thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 4,537,648 $ 4,043,011 $ 406,697 $ 399,000 Service cost 15,532 13,977 2,800 2,790 Interest cost 164,756 172,213 8,681 10,637 Amendments (2,077) — 661 3,050 Curtailments — — (4,012) — Plan Combinations — — — 173 Actuarial (gain) loss, net 464,475 439,082 21,157 20,783 Total disbursements (140,616) (130,635) (11,155) (14,398) Exchange rate changes — — (10,723) (15,338) Benefit obligation at end of year 5,039,718 4,537,648 414,106 406,697 Change in plan assets: Fair value of plan assets at beginning of year 3,984,154 3,666,408 264,746 258,028 Actual return on plan assets 533,676 418,789 35,594 23,765 Employer contribution 31,525 29,592 7,141 7,612 Total disbursements (140,616) (130,635) (11,155) (14,398) Exchange rate changes — — (8,135) (10,261) Fair value of plan assets at end of year 4,408,739 3,984,154 288,191 264,746 Funded status at end of year $ (630,979) $ (553,494) $ (125,915) $ (141,951) |
Defined benefit plans amounts recognized in balance sheet table | The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows: U.S. Pension Benefits International Pension Benefits Jun. 27, 2020 Jun. 29, 2019 Jun. 27, 2020 Jun. 29, 2019 (In thousands) Noncurrent assets (Other assets) $ — $ — $ — $ — Current accrued benefit liability (Accrued expenses) (31,121) (31,652) (1,359) (1,285) Noncurrent accrued benefit liability (Other long-term liabilities) (599,858) (521,842) (124,556) (140,666) Net amount recognized $ (630,979) $ (553,494) $ (125,915) $ (141,951) |
Defined benefit plans amounts recognized in accumulated other comprehensive loss (income) table | Accumulated other comprehensive loss (income) as of June 27, 2020 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 1,176 $ 781 $ 1,957 Actuarial losses (gains) 1,687,105 29,733 1,716,838 Total $ 1,688,281 $ 30,514 $ 1,718,795 Accumulated other comprehensive loss (income) as of June 29, 2019 consists of the following amounts that had not, as of that date, been recognized in net benefit cost: U.S. Pension Benefits International Pension Benefits Total (In thousands) Prior service cost $ 10,790 $ 588 $ 11,378 Actuarial losses (gains) 1,599,539 33,008 1,632,547 Total $ 1,610,329 $ 33,596 $ 1,643,925 |
Defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets table | Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows: U.S. Pension Benefits (1) International Pension Benefits Jun. 27, 2020 Jun. 29, 2019 Jun. 27, 2020 Jun. 29, 2019 (In thousands) Accumulated benefit obligation/aggregate benefit obligation $ 5,025,168 $ 4,524,513 $ 407,181 $ 399,966 Fair value of plan assets at end of year 4,408,739 3,984,154 288,191 264,746 (1) Information under Pension Benefits as of June 27, 2020 and June 29, 2019 includes both the U.S. Retirement Plan and the SERP. |
Defined benefit plans components of net benefit cost table | The components of net company-sponsored pension costs for each fiscal year are as follows: 2020 2019 2018 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Service cost $ 15,531 $ 2,800 $ 13,977 $ 2,790 $ 14,514 $ 3,219 Interest cost 164,756 8,681 172,213 10,637 173,827 10,667 Expected return on plan assets (196,249) (10,819) (180,624) (11,072) (233,987) (11,653) Amortization of prior service cost (credit) 7,537 597 8,380 (202) 9,460 (2,003) Amortization of actuarial loss 39,483 157 35,537 (98) 35,696 (67) Curtailment loss (gain) — (4,166) — — — — Settlement loss (gain) recognized — — 109 — 16 Net pension (benefits) costs $ 31,058 $ (2,750) $ 49,483 $ 2,164 $ (490) $ 179 |
Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: 2020 2019 2018 U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits U.S. Pension Benefits International Pension Benefits (In thousands) Amortization of prior service cost (credit) $ 7,537 $ 422 $ 8,380 $ (202) $ 9,460 $ (2003) Amortization of actuarial loss (gain) 39,483 157 35,537 11 35,696 (51) Prior service cost (credit) arising in current year 2,077 (661) — (3,050) — 4,624 Effect of exchange rates on amounts in AOCI — 784 — 1,163 — (583) Actuarial gain (loss) arising in current year (127,048) 3,640 (163,588) (8,090) 51,318 10,406 Net pension cost (income) $ (77,951) $ 4,342 $ (119,671) $ (10,168) $ 96,474 $ 12,393 |
Defined benefit plans amounts included accumulated other comprehensive loss (income) that are expected to be recognized in net company-sponsored benefit cost in next fiscal year table | Amounts included in accumulated other comprehensive loss (income) as of June 27, 2020 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2021 are: U.S. Pension Benefits International Pension Benefits Total (In thousands) Amortization of prior service cost (credit) $ 729 $ (67) $ 662 Amortization of actuarial losses (gains) 42,288 237 42,525 Total $ 43,017 $ 170 $ 43,187 |
Defined benefit plans estimated future benefit payments table | Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows: U.S. Pension Benefits International Pension Benefits (In thousands) 2021 $ 157,780 $ 11,831 2022 167,694 12,127 2023 178,050 12,483 2024 188,214 13,312 2025 197,783 14,237 Subsequent five years 1,120,130 74,274 |
Defined benefit plans weighted average assumptions used in calculating net periodic benefit costs table | Weighted-average assumptions used to determine benefit obligations as of year-end were: Jun. 27, 2020 Jun. 29, 2019 Discount rate — U.S. Retirement Plan 2.94 % 3.70 % Discount rate — SERP 2.91 3.62 Discount rate — U.K. Retirement Plan 1.60 2.30 Rate of compensation increase — U.S. Retirement Plan 2.56 2.56 Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were: 2020 2019 2018 Discount rate — U.S. Retirement Plan 3.70 % 4.28 % 4.19 % Discount rate — SERP 3.62 4.41 4.08 Discount rate — U.K. Retirement Plan 2.30 2.85 2.60 Expected rate of return — U.S. Retirement Plan 5.00 5.00 7.00 Expected rate of return — U.K. Retirement Plan 4.55 4.55 4.55 Rate of compensation increase — U.S. Retirement Plan 2.56 2.62 2.62 |
Defined benefit plans target and actual asset allocation table | The U.S. Retirement Plan’s target and actual investment allocation as of June 27, 2020 is as follows: U.S. Retirement Plan Target Asset Allocation Actual Asset Allocation Growth assets 30 % 28 % Liability hedging assets 70 72 100 % The U.K. Retirement Plan’s target and actual investment allocation as of June 27, 2020 is as follows: U.K. Retirement Plan Target Asset Allocation Actual Asset Allocation Common contractual fund 60 % 52 % Liability hedging assets 40 48 100 % |
Defined benefit plans fair value of plans assets by major category table | The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 27, 2020: Assets Measured at Fair Value as of Jun. 27, 2020 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 34,475 $ 67,468 $ — $ — $ 101,943 Growth assets: U.S. equity (1) — — — 575,035 575,035 International equity (1) — — — 252,687 252,687 Hedge fund of funds (2) — — — 233,792 233,792 Real estate funds (3) — — — 87,730 87,730 Private equity funds (4) — — — 74,631 74,631 Liability hedging assets: Corporate bonds — 2,220,702 — — 2,220,702 U.S. government and agency securities (1) — 293,643 — 540,751 834,394 Other (5) — 27,825 — — 27,825 Total investments at fair value $ 34,475 $ 2,609,638 $ — $ 1,764,626 $ 4,408,739 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 27, 2020. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 27, 2020, and there were no redemption restrictions as of June 27, 2020. The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 27, 2020 was $2.0 million. Approximately 5% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitments in the funds listed in this category as of June 27, 2020 were $16.2 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2020 to 2031. (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 27, 2020: Assets Measured at Fair Value as of Jun. 27, 2020 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 2,510 $ — $ — $ — $ 2,510 U.K. government securities — 135,318 — — 135,318 Derivatives, net (1) — 123 — — 123 Investment funds: Common contractual fund (2) — — — 150,240 150,240 Total investments at fair value $ 2,510 $ 135,441 $ — $ 150,240 $ 288,191 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $6.8 million; the fair value of liability positions totaled $6.6 million. (2) There were $14.9 million of unfunded commitments as of June 27, 2020, and there were no redemption restrictions as of June 27, 2020. The investment may be redeemed twice per month. (3) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 29, 2019: Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (6) Total (In thousands) Cash and cash equivalents $ 39,981 $ 41,266 $ — $ — $ 81,247 Growth assets: U.S. equity (1) — — — 468,923 468,923 International equity (1) 95,296 — — 107,197 202,493 Hedge fund of funds (2) — — — 226,409 226,409 Real estate funds (3) — — — 93,592 93,592 Private equity funds (4) — — — 84,266 84,266 Liability hedging assets: Corporate bonds — 1,987,964 — — 1,987,964 U.S. government and agency securities (1) — 298,629 — 522,489 821,118 Other (5) — 18,142 — — 18,142 Total investments at fair value $ 135,277 $ 2,346,001 $ — $ 1,502,876 $ 3,984,154 (1) Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 29, 2019. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits. (2) There were no unfunded commitments as of June 29, 2019, and there were no redemption restrictions as of June 29, 2019. The investment may be redeemed once per quarter. (3) For investments in the funds listed in this category, total unfunded commitment as of June 29, 2019 was $10.3 million. Approximately 15% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2019 to 2021. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits. (4) Total unfunded commitment as of June 29, 2019 was $17.6 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2019 to 2031. (5) Include foreign government and state and municipal debt securities. (6) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 29, 2019: Assets Measured at Fair Value as of Jun. 29, 2019 Level 1 Level 2 Level 3 Measured at NAV (3) Total (In thousands) Liability hedging assets: Cash and cash equivalents $ 13,372 $ — $ — $ — $ 13,372 U.K. government securities — 63,363 — — 63,363 Derivatives, net (1) — 575 — — 575 Investment funds: Common contractual fund (2) — — — 187,436 187,436 Total investments at fair value $ 13,372 $ 63,938 $ — $ 187,436 $ 264,746 (1) Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $9.3 million; the fair value of liability positions totaled $8.7 million. (2) There were $13.9 million of unfunded commitments as of June 29, 2019, and there were no redemption restrictions as of June 29, 2019. The investment may be redeemed once per week. (3) Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
MULTIEMPLOYER EMPLOYEE BENEFI_2
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Multiple-Employer Plan Accounted for as Multiemployer Plan [Abstract] | |
Multiemployer defined benefit pension plan contributions table | Sysco’s contributions to multiemployer defined benefit pension plans were as follows for each fiscal year: 2020 2019 2018 (In thousands) Individually significant plans $ 31,683 $ 31,669 $ 30,460 All other plans 15,762 16,876 15,915 Total contributions $ 47,445 $ 48,545 $ 46,375 |
Multiemployer individually significant plans statistics table | The following table provides information about the funded status of individually significant plans: • The “EIN-PN” column provides the Employer Identification Number (EIN) and the three-digit plan number (PN). • The “Pension Protection Act Zone Status” columns provide the two most recent Pension Protection Act zone statuses available from each plan. The zone status is based on information that the company received from the plan’s administrators and is certified by each plan’s actuary, together with information included in the annual return/reports filed by each plan with the U.S. Department of Labor. Among other factors, plans in the red zone are generally less than 65% funded, plans in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The Multiemployer Protection Act of 2014 created a new zone called “critical and declining.” Plans are generally considered “critical and declining” if they are projected to become insolvent within 15 years. • The “FIP/RP Status” column indicates whether a financial improvement plan (FIP) for yellow/orange zone plans or a rehabilitation plan (RP) for red zone plans is pending or implemented in the current year or was put in place in a prior year. A status of “Pending” indicates a FIP/RP has been approved but actual period covered by the FIP/RP has not begun. A status of “Implemented” means the period covered by the FIP/RP began in the current year or is ongoing. • The “Surcharge Imposed” column indicates whether a surcharge was paid during the most recent annual period presented for the company’s contributions to each plan in the red zone. If the company’s current collective bargaining agreement (CBA) with a plan satisfies the requirements of a pending but not yet implemented RP, then the payment of surcharges is not required and “No” will be reflected in this column. If the company’s current CBA with a plan does not yet satisfy the requirements of a pending but not yet implemented RP, then the payment of surcharges is required and “Yes” will be reflected in this column. Pension Protection Act Pension Fund EIN-PN As of 12/31/20 As of 12/31/19 FIP/RP Surcharge Expiration Western Conference of Teamsters Pension Plan 91-6145047-001 Green Green N/A N/A 9/26/20 to 2/15/2026 (1) (1) Sysco is party to 23 CBAs that require contributions to the Western Conference of Teamsters Pension Trust. Each agreement covers anywhere from less than 1% to 17% of the total contributions Sysco is required to pay the fund. |
Multiemployer individually significant plans contributions table | The following table provides information about the company’s contributions to individually significant plans: • The “Sysco Contributions” columns provide contribution amounts based on Sysco’s fiscal years, which may not coincide with the plans’ fiscal years. • The “Sysco 5% of Total Plan Contributions” columns indicate whether Sysco was listed on Schedule R of the plan’s most recently filed Form 5500s as providing more than five percent of the total contributions to the plan, and the plan year-end is noted. Sysco Contributions Sysco 5% of Pension Fund 2020 2019 2018 2019 2018 (In thousands) Western Conference of Teamsters Pension Plan $ 31,683 $ 31,669 $ 30,460 No No |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
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: 2020 2019 2018 (In thousands, except for share and per share data) Numerator: Net earnings $ 215,475 $ 1,674,271 $ 1,430,766 Denominator: Weighted-average basic shares outstanding 510,121,071 516,890,581 522,926,914 Dilutive effect of share-based awards 3,904,903 6,490,543 6,162,940 Weighted-average diluted shares outstanding 514,025,974 523,381,124 529,089,854 Basic earnings per share $ 0.42 $ 3.24 $ 2.74 Diluted earnings per share $ 0.42 $ 3.20 $ 2.70 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
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: 2020 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ (125,214) $ (32,471) $ (92,743) Reclassification adjustments: Amortization of prior service cost Other expense, net 7,620 1,908 5,712 Amortization of actuarial loss, net Other expense, net 49,284 10,350 38,934 Total reclassification adjustments 56,904 12,258 44,646 Foreign currency translation: Foreign currency translation adjustment N/A (112,215) — (112,215) Marketable securities: Change in marketable securities (1) N/A 5,403 1,135 4,268 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (2) (9,831) (2,574) (7,257) Change in net investment hedges (3) N/A 58,756 15,227 43,529 Total other comprehensive income before reclassification adjustments 48,925 12,653 36,272 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,496 2,876 8,620 Total other comprehensive loss $ (114,701) $ (3,549) $ (111,152) (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 fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges, as described in Note 11, “Derivative Financial Instruments.” 2019 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ (200,144) $ (45,070) $ (155,074) Reclassification adjustments: Amortization of prior service cost Other expense, net 8,532 2,132 6,400 Amortization of actuarial loss, net Other expense, net 34,824 8,708 26,116 Total reclassification adjustments 43,356 10,840 32,516 Foreign currency translation: Foreign currency translation adjustment N/A (119,126) — (119,126) Marketable Securities: Change in marketable securities N/A 3,579 752 2,827 Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) (5,394) (1,332) (4,062) Change in net investment hedges N/A 58,138 14,299 43,839 Total other comprehensive income (loss) before reclassification adjustments 52,744 12,967 39,777 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,492 2,872 8,620 Total other comprehensive loss $ (208,099) $ (17,639) $ (190,460) (1) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. 2018 Location of Expense Before Tax Tax Net of Tax (In thousands) Pension and other postretirement benefit plans: Other comprehensive income before reclassification adjustments: Net actuarial gain (loss), arising in the current year $ 69,476 $ 16,965 $ 52,511 Reclassification adjustments: Amortization of prior service cost Other expense, net 9,636 2,731 6,905 Amortization of actuarial loss, net Other expense, net 35,044 9,934 25,110 Total reclassification adjustments 44,680 12,665 32,015 Foreign currency translation: Foreign currency translation adjustment N/A (22,987) — (22,987) Hedging instruments: Other comprehensive income (loss) before reclassification adjustments: Change in cash flow hedges Operating expenses (1) 23,872 9,529 14,343 Change in net investment hedges N/A (2,443) (8,234) 5,791 Total other comprehensive income before reclassification adjustments 21,429 1,295 20,134 Reclassification adjustments: Amortization of cash flow hedges Interest expense 11,499 3,259 8,240 Total other comprehensive income $ 124,097 $ 34,184 $ 89,913 (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 (AOCI) for the periods presented: Pension and Other Postretirement Benefit Plans, Foreign Currency Translation Hedging, net of tax Marketable Securities Total (In thousands) Balance as of Jul. 1, 2017 $ (974,232) $ (148,056) $ (140,449) $ — $ (1,262,737) Other comprehensive income before 52,511 (22,987) 20,134 — 49,658 Amounts reclassified from accumulated 32,015 — 8,240 — 40,255 Amounts reclassified to retained earnings (1) (205,353) — (31,092) — (236,445) Balance as of Jun. 30, 2018 (1,095,059) (171,043) (143,167) — (1,409,269) Other comprehensive income before (155,074) (119,126) 39,777 — (234,423) Amounts reclassified from accumulated 32,516 — 8,620 — 41,136 Amounts reclassified to retained earnings (1) — — — 2,827 2,827 Balance as of Jun. 29, 2019 (1,217,617) (290,169) (94,770) 2,827 (1,599,729) Other comprehensive income before (92,743) (112,215) 36,272 — (168,686) Amounts reclassified from accumulated 44,646 — 8,620 — 53,266 Change in marketable securities — — — 4,268 4,268 Balance as of Jun. 27, 2020 $ (1,265,714) $ (402,384) $ (49,878) $ 7,095 $ (1,710,881) (1) Deferred taxes stranded in AOCI as a result of the Tax Act were reclassified to retained earnings as a result of early adopting Accounting Standards Update 2018-02. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Black-Scholes option model assumption table | The weighted average assumptions discussed above are noted in the table below for relevant periods as follows: 2020 2019 2018 Dividend yield 2.4 % 2.5 % 2.6 % Expected volatility 18.3 % 16.9 % 17.5 % Risk-free interest rate 1.5 % 2.8 % 2.0 % Expected Life 7.0 years 7.0 years 7.0 years |
Option rollforward and other disclosures table | The following summary presents information regarding outstanding options as of June 27, 2020 and changes during the fiscal year then ended with regard to options under all stock incentive plans: Shares Under Option Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of June 29, 2019 14,989,277 $ 50.36 Granted 3,286,943 73.15 Exercised 4,518,342 44.19 Forfeited 1,809,674 62.52 Expired — — Outstanding as of June 27, 2020 11,948,204 $ 57.12 6.98 $ 45,574 Vested or expected to vest as of June 27, 2020 5,762,300 $ 65.83 8.22 $ 9,400 Exercisable as of June 27, 2020 6,083,923 $ 48.67 5.77 $ 36,012 |
Non-vested awards rollforward table | The following summary presents information regarding outstanding non-vested awards as of June 27, 2020 and changes during the fiscal year then ended with regard to these awards under the stock incentive plans. Award types represented include restricted stock units granted to employees, restricted awards granted to non-employee directors and PSUs. Shares Weighted Average Grant Date Fair Value Per Share Non-vested as of June 29, 2019 3,287,741 $ 58.40 Granted 1,505,605 72.28 Vested (1,367,165) 54.44 Forfeited (583,552) 64.97 Non-vested as of June 27, 2020 2,842,629 $ 66.31 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Earnings before income taxes by jurisdiction table | For financial reporting purposes, earnings (loss) before income taxes consists of the following: 2020 2019 2018 (In thousands) U.S. $ 742,332 $ 1,910,549 $ 1,765,793 Foreign (448,948) 95,287 190,431 Total $ 293,384 $ 2,005,836 $ 1,956,224 |
Income tax provision by jurisdiction table | The income tax provision for each fiscal year consists of the following: 2020 2019 2018 (In thousands) U.S. federal income taxes $ 128,576 $ 262,940 $ 399,254 State and local income taxes 8,529 73,835 62,670 Foreign income taxes (59,196) (5,210) 63,534 Total $ 77,909 $ 331,565 $ 525,458 |
Income tax provision by component table | The current and deferred components of the income tax provisions for each fiscal year are as follows: 2020 2019 2018 (In thousands) Current $ 269,226 $ 458,284 $ 337,550 Deferred (191,317) (126,719) 187,908 Total $ 77,909 $ 331,565 $ 525,458 |
Components of deferred tax assets and liabilities table | Significant components of Sysco’s deferred tax assets and liabilities are as follows: Jun. 27, 2020 Jun. 29, 2019 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 379,620 $ 274,231 Pension 184,616 157,670 Receivables 99,540 17,383 Deferred compensation 31,603 29,694 Share-based compensation 21,296 39,218 Inventory 17,069 12,139 Self-insured liabilities 3,409 16,496 Other 41,820 34,366 Deferred tax assets before valuation allowances 778,973 581,197 Valuation allowances (137,862) (127,807) Total deferred tax assets 641,111 453,390 Deferred tax liabilities: Goodwill and intangible assets 329,940 358,847 Excess tax depreciation and basis differences of assets 169,920 163,123 Other 33,737 22,892 Total deferred tax liabilities 533,597 544,862 Total net deferred tax assets (liabilities) $ 107,514 $ (91,472) |
Tax rate reconciliation table | Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows: 2020 2019 2018 U.S. statutory federal income tax rate 21.00 % 21.00 % 28.00 % State and local income taxes, net of any applicable federal income tax benefit 5.69 3.35 2.48 Foreign income taxes (2.46) (1.42) 0.07 Uncertain tax position (1.44) (0.31) (0.22) Tax benefit of equity-based compensation (9.77) (2.07) (2.66) Nondeductible impairment charges 17.65 — — Impact of U.S. Tax Reform — (4.64) 0.13 Other (4.12) 0.62 (0.95) Effective income tax rate 26.55 % 16.53 % 26.85 % |
Reconciliation of unrecognized tax benefits table | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2020 2019 (In thousands) Unrecognized tax benefits at beginning of year $ 26,109 $ 12,195 Additions for tax positions related to prior years — 20,508 Reductions for tax positions related to prior years (2,974) (6,086) Reductions due to settlements with taxing authorities — (508) Unrecognized tax benefits at end of year $ 23,135 $ 26,109 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded unconditional purchase obligations table | Minimum amounts committed to by year are as follows: Amount (In thousands) 2021 $ 3,927,035 2022 1,402,700 2023 533,739 2024 253,533 2025 — |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Business segment table | The following tables set forth certain financial information for Sysco’s business segments. Fiscal Year 2020 2019 2018 Sales: (In thousands) U.S. Foodservice Operations $ 36,774,146 $ 41,288,188 $ 39,642,263 International Foodservice Operations 9,672,190 11,493,040 11,518,565 SYGMA 5,555,926 6,244,328 6,557,033 Other 891,048 1,088,366 1,009,463 Total $ 52,893,310 $ 60,113,922 $ 58,727,324 Fiscal Year 2020 2019 2018 Operating income (loss): (In thousands) U.S. Foodservice Operations $ 2,003,159 $ 2,991,794 $ 2,859,812 International Foodservice Operations (371,407) 125,443 193,864 SYGMA 36,880 27,780 24,318 Other (21,361) 35,848 39,485 Total segments 1,647,271 3,180,865 3,117,479 Corporate (897,766) (850,715) (803,423) Total operating income 749,505 2,330,150 2,314,056 Interest expense 408,220 360,423 395,483 Other expense (income), net 47,901 (36,109) (37,651) Earnings before income taxes $ 293,384 $ 2,005,836 $ 1,956,224 Fiscal Year 2020 2019 2018 Depreciation and amortization: (In thousands) U.S. Foodservice Operations $ 373,889 $ 342,277 $ 348,041 International Foodservice Operations 279,475 248,914 258,156 SYGMA 34,785 35,473 36,367 Other 12,072 10,868 9,599 Total segments 700,221 637,532 652,163 Corporate 105,544 126,403 113,335 Total $ 805,765 $ 763,935 $ 765,498 Fiscal Year 2020 2019 2018 Capital Expenditures: (In thousands) U.S. Foodservice Operations $ 263,943 $ 327,005 $ 262,887 International Foodservice Operations 217,694 249,527 157,139 SYGMA 23,657 36,396 45,132 Other 21,000 25,003 11,406 Total segments 526,294 637,931 476,564 Corporate 194,129 54,460 211,251 Total $ 720,423 $ 692,391 $ 687,815 Fiscal Year 2020 2019 2018 Assets: (In thousands) U.S. Foodservice Operations $ 6,647,288 $ 7,238,309 $ 7,039,354 International Foodservice Operations 6,258,382 5,888,275 6,112,666 SYGMA 685,184 624,720 662,290 Other 458,316 477,038 452,426 Total segments 14,049,170 14,228,342 14,266,736 Corporate 8,579,096 3,738,180 3,803,668 Total $ 22,628,266 $ 17,966,522 $ 18,070,404 |
Geographic area revenue and long-lived assets table | Information concerning geographic areas is as follows: Fiscal Year 2020 2019 2018 (In thousands) Sales: United States $ 42,803,700 $ 48,257,385 $ 46,812,297 Canada 4,105,236 4,660,030 4,661,615 United Kingdom 2,481,712 3,133,793 3,176,069 France 1,222,742 1,581,663 1,625,407 Other 2,279,920 2,481,051 2,451,936 Total $ 52,893,310 $ 60,113,922 $ 58,727,324 Long-lived assets: United States $ 3,340,920 $ 3,361,629 $ 3,448,164 Canada 331,196 334,177 318,410 France 308,983 329,923 240,507 United Kingdom 255,153 270,613 319,664 Other 222,315 205,363 194,915 Total $ 4,458,567 $ 4,501,705 $ 4,521,660 The sales mix for the principal product categories by segment is disclosed in Note 4, “Revenue.” |
QUARTERLY RESULTS (UNAUDITED) (
QUARTERLY RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly results (unaudited) table | Financial information for each 13-week period in the fiscal years ended June 27, 2020 and June 29, 2019 is set forth below: Fiscal 2020 Quarter Ended September 28 December 28 March 28 June 27 Fiscal Year (In thousands except for per share data) Sales $ 15,303,005 $ 15,025,042 $ 13,698,699 $ 8,866,564 $ 52,893,310 Cost of sales 12,359,635 12,196,643 11,134,459 7,300,909 42,991,646 Gross profit 2,943,370 2,828,399 2,564,240 1,565,655 9,901,664 Operating expenses (1) 2,275,052 2,275,906 2,503,966 2,097,235 9,152,159 Operating income (loss) 668,318 552,493 60,274 (531,580) 749,505 Interest expense 83,335 76,762 83,854 164,269 408,220 Other expense (income), net (2) 3,112 (807) 5,200 40,396 47,901 Earnings before income taxes 581,871 476,538 (28,780) (736,245) 293,384 Income taxes 128,090 93,128 (25,483) (117,826) 77,909 Net earnings (loss) $ 453,781 $ 383,410 $ (3,297) $ (618,419) $ 215,475 Per share: Basic net earnings (loss) (3) $ 0.88 $ 0.75 $ (0.01) $ (1.22) $ 0.42 Diluted net earnings (loss) (3) 0.87 0.74 (0.01) (1.22) 0.42 Dividends declared 0.39 0.45 0.45 0.45 1.74 (1) Sysco’s results in the third and fourth quarters of fiscal 2020 included charges associated with the COVID-19 pandemic, such as $323.4 million of excess bad debt expense and $203.2 million of goodwill impairment. (2) Sysco’s fourth quarter of fiscal 2020 results included a $55.9 million impairment on assets held for sale. (3) Quarterly basic and diluted earnings (loss) per share amounts may not add up to the full fiscal year total presented due to rounding. Basic and diluted earnings (loss) per share is calculated by dividing net earnings (loss) by basic and diluted shares outstanding, respectively. Fiscal 2019 Quarter Ended September 29 December 29 March 30 June 29 Fiscal Year (In thousands except for per share data) Sales $ 15,215,279 $ 14,765,707 $ 14,658,074 $ 15,474,862 $ 60,113,922 Cost of sales 12,311,494 11,993,995 11,903,776 12,495,670 48,704,935 Gross profit 2,903,785 2,771,712 2,754,298 2,979,192 11,408,987 Operating expenses 2,275,645 2,319,817 2,224,713 2,258,662 9,078,837 Operating income 628,140 451,895 529,585 720,530 2,330,150 Interest expense 89,016 87,113 94,514 89,780 360,423 Other expense (income), net (1) 1,132 10,197 4,120 (51,558) (36,109) Earnings before income taxes 537,992 354,585 430,951 682,308 2,005,836 Income taxes (2) 106,950 87,205 (9,132) 146,542 331,565 Net earnings $ 431,042 $ 267,380 $ 440,083 $ 535,766 $ 1,674,271 Per share: Basic net earnings (3) $ 0.83 $ 0.52 $ 0.86 $ 1.04 $ 3.24 Diluted net earnings (3) 0.81 0.51 0.85 1.03 3.20 Dividends declared 0.36 0.39 0.39 0.39 1.53 (1) Sysco’s fourth quarter of fiscal 2019 results included a $66.3 million gain on the sale of Iowa Premium, LLC. (2) Sysco’s third quarter of fiscal 2019 results included the recognition of $95.1 million of foreign tax credits generated as a result of distributions to Sysco from its foreign operations at the end of fiscal 2018. See Note 20, “Income Taxes.” (3) Quarterly basic and diluted earnings (loss) per share amounts may not add up to the full fiscal year total presented due to rounding. Basic and diluted earnings (loss) per share is calculated by dividing net earnings (loss) by basic and diluted shares outstanding, respectively. |
SUMMARY OF ACCOUNTING POLICIE_3
SUMMARY OF ACCOUNTING POLICIES - NARRATIVE (Details) customer in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Jun. 27, 2020USD ($)customerfacilityreporting_unit | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | |
Summary of Accounting Policies [Line Items] | |||||
Number of customers | customer | 625 | ||||
Number of distribution facilities | facility | 326 | ||||
Accounts receivable sold without recourse | $ 3,600,000 | $ 3,600,000 | |||
Outstanding principal amount of receivables derecognized | 205,800 | 205,800 | |||
Goodwill impairment | 203,200 | $ 203,200 | $ 203,206 | $ 0 | $ 0 |
Number of international reporting units | reporting_unit | 2 | ||||
Aggregate goodwill threshold for requiring additional analysis | 369,500 | $ 369,500 | |||
Cash surrender value of corporate-owned life insurance | 162,900 | 162,900 | 168,400 | ||
Customer receivables, less allowances | 2,700,000 | 2,700,000 | 3,900,000 | ||
Pacific Star | |||||
Summary of Accounting Policies [Line Items] | |||||
Goodwill impairment | 34,900 | ||||
Cake | |||||
Summary of Accounting Policies [Line Items] | |||||
Goodwill impairment | $ 34,200 | ||||
Finance Group | |||||
Summary of Accounting Policies [Line Items] | |||||
Goodwill impairment | 108,700 | ||||
Fresh Direct | |||||
Summary of Accounting Policies [Line Items] | |||||
Goodwill impairment | $ 25,400 | ||||
Shipping and Handling | |||||
Summary of Accounting Policies [Line Items] | |||||
Shipping and handling costs | $ 3,000,000 | $ 3,500,000 | $ 3,600,000 | ||
Minimum | |||||
Summary of Accounting Policies [Line Items] | |||||
Reporting unit impairment, decrease in fair value estimate requiring additional analysis, percent | 17.00% | ||||
Intangible assets useful life (in years) | 2 years | ||||
Maximum | |||||
Summary of Accounting Policies [Line Items] | |||||
Reporting unit impairment, decrease in fair value estimate requiring additional analysis, percent | 29.00% |
SUMMARY OF ACCOUNTING POLICIE_4
SUMMARY OF ACCOUNTING POLICIES - RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 01, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 6,059,427 | $ 513,460 | $ 552,325 | |
Restricted cash | 36,143 | 18,785 | 163,519 | |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows | $ 6,095,570 | $ 532,245 | $ 715,844 | $ 869,502 |
CHANGES IN ACCOUNTING (Details)
CHANGES IN ACCOUNTING (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 30, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Operating lease right-of-use assets, net | $ 603,616 | |
Operating lease liabilities | $ 630,663 | |
ASU 2016-02 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Operating lease right-of-use assets, net | $ 647,200 | |
Operating lease liabilities | $ 657,900 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 8,866,564 | $ 13,698,699 | $ 15,025,042 | $ 15,303,005 | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 52,893,310 | $ 60,113,922 | $ 58,727,324 |
Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 10,125,390 | 11,570,425 | 11,312,841 | ||||||||
Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 8,666,054 | 9,941,250 | 9,789,397 | ||||||||
Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 7,831,126 | 8,977,965 | 9,025,654 | ||||||||
Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,243,168 | 5,847,527 | 5,979,342 | ||||||||
Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,452,951 | 6,113,717 | 6,037,809 | ||||||||
Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 4,496,022 | 5,065,933 | 4,929,235 | ||||||||
Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,656,462 | 3,960,269 | 3,837,865 | ||||||||
Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,695,469 | 3,381,973 | 3,280,210 | ||||||||
Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,962,787 | 2,309,194 | 1,965,180 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,763,881 | 2,945,669 | 2,569,791 | ||||||||
U.S. Foodservice Operations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 36,774,146 | 41,288,188 | 39,642,263 | ||||||||
U.S. Foodservice Operations | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 7,276,675 | 8,422,126 | 8,123,565 | ||||||||
U.S. Foodservice Operations | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 6,603,902 | 7,344,015 | 7,093,691 | ||||||||
U.S. Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,019,696 | 5,708,030 | 5,327,020 | ||||||||
U.S. Foodservice Operations | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,749,786 | 4,121,367 | 4,020,340 | ||||||||
U.S. Foodservice Operations | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,885,771 | 4,265,320 | 4,136,973 | ||||||||
U.S. Foodservice Operations | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 3,425,558 | 3,801,828 | 3,642,247 | ||||||||
U.S. Foodservice Operations | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,616,184 | 2,797,521 | 2,639,280 | ||||||||
U.S. Foodservice Operations | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,186,208 | 2,550,524 | 2,449,741 | ||||||||
U.S. Foodservice Operations | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 940,534 | 1,127,701 | 1,107,574 | ||||||||
U.S. Foodservice Operations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,069,832 | 1,149,756 | 1,101,832 | ||||||||
International Foodservice Operations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 9,672,190 | 11,493,040 | 11,518,565 | ||||||||
International Foodservice Operations | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,339,340 | 1,627,392 | 1,666,247 | ||||||||
International Foodservice Operations | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,940,506 | 2,326,584 | 2,367,921 | ||||||||
International Foodservice Operations | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,831,950 | 2,074,991 | 2,538,265 | ||||||||
International Foodservice Operations | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 718,753 | 833,844 | 833,917 | ||||||||
International Foodservice Operations | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,021,195 | 1,243,773 | 1,260,354 | ||||||||
International Foodservice Operations | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 834,056 | 1,022,503 | 1,031,796 | ||||||||
International Foodservice Operations | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 336,199 | 369,329 | 400,345 | ||||||||
International Foodservice Operations | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 407,179 | 717,703 | 726,010 | ||||||||
International Foodservice Operations | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 413,315 | 531,247 | 196,379 | ||||||||
International Foodservice Operations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 829,697 | 745,674 | 497,331 | ||||||||
SYGMA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 5,555,926 | 6,244,328 | 6,557,033 | ||||||||
SYGMA | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,509,375 | 1,520,907 | 1,523,029 | ||||||||
SYGMA | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 121,646 | 270,651 | 327,785 | ||||||||
SYGMA | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 979,480 | 1,194,944 | 1,160,369 | ||||||||
SYGMA | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 774,629 | 892,316 | 1,125,085 | ||||||||
SYGMA | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 545,985 | 604,624 | 640,482 | ||||||||
SYGMA | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 236,408 | 241,602 | 255,192 | ||||||||
SYGMA | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 646,920 | 731,511 | 739,074 | ||||||||
SYGMA | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 102,082 | 113,746 | 104,459 | ||||||||
SYGMA | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 540,545 | 563,401 | 576,359 | ||||||||
SYGMA | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 98,856 | 110,626 | 105,199 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 891,048 | 1,088,366 | 1,009,463 | ||||||||
Other | Fresh and frozen meats | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Canned and dry products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Frozen fruits, vegetables, bakery and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Poultry | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Dairy products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Fresh produce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Paper and disposables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 57,159 | 61,908 | 59,166 | ||||||||
Other | Seafood | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Other | Beverage products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 68,393 | 86,845 | 84,868 | ||||||||
Other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 765,496 | $ 939,613 | $ 865,429 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Business Combinations [Abstract] | |||
Acquisition of businesses, net of cash acquired | $ 142,780 | $ 106,616 | $ 248,105 |
Contingent consideration maximum number of years | 3 years | ||
Potential cash payout for contingent consideration arrangements | $ 26,000 | ||
Contingent consideration | $ 23,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of total debt | $ 14,446,879 | $ 8,163,337 |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of total debt | 16,300,000 | 8,600,000 |
Carrying value of total debt | 14,400,000 | 8,200,000 |
Recurring Fair Value Measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 5,545,687 | 73,024 |
Other assets | 36,143 | 18,785 |
Total assets at fair value | 5,581,830 | 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 | 5,245,487 | 72,824 |
Other assets | 36,143 | 18,785 |
Total assets at fair value | 5,281,630 | 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 | 300,200 | 200 |
Other assets | 0 | 0 |
Total assets at fair value | 300,200 | 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 ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Marketable Securities [Line Items] | ||
Amortized Cost Basis | $ 107,284 | $ 116,440 |
Gross Unrealized Gains | 8,983 | 3,579 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 116,267 | 120,019 |
Minimum | ||
Marketable Securities [Line Items] | ||
Debt securities maturities | 1 year | |
Maximum | ||
Marketable Securities [Line Items] | ||
Debt securities maturities | 10 years | |
Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | $ 18,233 | 12,006 |
Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 98,034 | 108,013 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 78,651 | 87,540 |
Gross Unrealized Gains | 4,064 | 1,734 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 82,715 | 89,274 |
Corporate bonds | Short-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 18,233 | 12,006 |
Corporate bonds | Long-Term Marketable Securities | ||
Marketable Securities [Line Items] | ||
Fair Value | 64,482 | 77,268 |
Government bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost Basis | 28,633 | 28,900 |
Gross Unrealized Gains | 4,919 | 1,845 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 33,552 | 30,745 |
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 | $ 33,552 | $ 30,745 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Allowance for Doubtful Accounts | |||
Balance at beginning of period | $ 28,176 | $ 25,768 | $ 31,059 |
Charged to costs and expenses | 404,158 | 62,946 | 21,448 |
Customer accounts written off, net of recoveries | (83,915) | (64,219) | (27,120) |
Other adjustments | (13,609) | 3,681 | 381 |
Balance at end of period | $ 334,810 | $ 28,176 | $ 25,768 |
PLANT AND EQUIPMENT (Details)
PLANT AND EQUIPMENT (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 27, 2020USD ($)property | Jun. 27, 2020USD ($)property | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Total plant and equipment at cost | $ 10,168,481 | $ 10,168,481 | ||
Accumulated depreciation | (5,709,914) | (5,709,914) | ||
Plant and equipment at cost, less accumulated depreciation | 4,458,567 | 4,458,567 | ||
Total plant and equipment at cost | $ 9,954,229 | |||
Accumulated depreciation | (5,452,524) | |||
Total plant and equipment, net | $ 4,458,567 | 4,458,567 | 4,501,705 | $ 4,521,660 |
Depreciation expense | $ 705,200 | 656,600 | 614,800 | |
Number of properties | property | 8 | 8 | ||
Impairment of assets held for sale | $ 55,900 | $ 55,942 | 0 | $ 0 |
Aggregate net book value of assets held for sale | 30,900 | 30,900 | ||
Accelerated depreciation | 74,400 | 39,300 | ||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Total plant and equipment at cost | 493,694 | 493,694 | ||
Total plant and equipment at cost | 498,180 | |||
Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total plant and equipment at cost | 4,854,307 | $ 4,854,307 | ||
Total plant and equipment at cost | 4,545,099 | |||
Buildings and improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining life (in years) | 10 years | |||
Buildings and improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining life (in years) | 30 years | |||
Fleet and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total plant and equipment at cost | 3,561,500 | $ 3,561,500 | ||
Total plant and equipment at cost | 3,697,008 | |||
Fleet and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining life (in years) | 3 years | |||
Fleet and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining life (in years) | 10 years | |||
Computer hardware and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Total plant and equipment at cost | $ 1,258,980 | $ 1,258,980 | ||
Total plant and equipment at cost | $ 1,213,942 | |||
Computer hardware and software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining life (in years) | 3 years | |||
Computer hardware and software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining life (in years) | 7 years |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | |
Goodwill [Roll Forward] | |||||||
Goodwill carrying amount, beginning balance | $ 3,896,226 | $ 3,955,485 | |||||
Goodwill acquired during year | 90,477 | 19,555 | |||||
Impairment | $ (203,200) | $ (203,200) | (203,206) | 0 | $ 0 | ||
Currency translation/other | (51,028) | (78,814) | |||||
Goodwill carrying amount, ending balance | 3,732,469 | 3,732,469 | 3,896,226 | 3,955,485 | |||
Amortized intangibles acquired during year | $ 39,900 | ||||||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 6 years | ||||||
Intangibles gross carrying amount | $ 1,085,645 | $ 1,079,405 | |||||
Intangibles accumulated amortization | (450,260) | (373,032) | |||||
Intangibles net amount | 635,385 | 706,373 | |||||
Indefinite-lived intangible assets balance | 144,786 | 150,928 | |||||
Intangibles amortization expense | $ 95,300 | 92,300 | 114,700 | ||||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
2021 | 96,877 | ||||||
2022 | 95,042 | ||||||
2023 | 91,867 | ||||||
2024 | 88,022 | ||||||
2025 | 79,739 | ||||||
Goodwill | 3,732,469 | 3,732,469 | 3,955,485 | 3,955,485 | 3,732,469 | 3,896,226 | |
Impairments to goodwill | 203,200 | 203,200 | 203,206 | 0 | 0 | ||
Pacific Star | |||||||
Goodwill [Roll Forward] | |||||||
Impairment | (34,900) | ||||||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Impairments to goodwill | 34,900 | ||||||
Cake | |||||||
Goodwill [Roll Forward] | |||||||
Impairment | (34,200) | ||||||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Impairments to goodwill | $ 34,200 | ||||||
Finance Group | |||||||
Goodwill [Roll Forward] | |||||||
Impairment | (108,700) | ||||||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Impairments to goodwill | 108,700 | ||||||
Fresh Direct | |||||||
Goodwill [Roll Forward] | |||||||
Impairment | (25,400) | ||||||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Impairments to goodwill | 25,400 | ||||||
Trademarks | |||||||
Goodwill [Roll Forward] | |||||||
Indefinite-lived intangible assets balance | 143,820 | 149,962 | |||||
Licenses | |||||||
Goodwill [Roll Forward] | |||||||
Indefinite-lived intangible assets balance | 966 | 966 | |||||
Customer relationships | |||||||
Goodwill [Roll Forward] | |||||||
Amortized intangibles acquired during year | $ 26,600 | ||||||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 7 years | ||||||
Intangibles gross carrying amount | 1,048,702 | 1,052,608 | |||||
Intangibles accumulated amortization | (434,262) | (358,592) | |||||
Intangibles net amount | 614,440 | 694,016 | |||||
Non-compete agreements | |||||||
Goodwill [Roll Forward] | |||||||
Amortized intangibles acquired during year | $ 13,300 | ||||||
Weighted-average amortization period of amortized intangibles acquired during year (in years) | 5 years | ||||||
Intangibles gross carrying amount | 23,252 | 11,827 | |||||
Intangibles accumulated amortization | (10,182) | (8,556) | |||||
Intangibles net amount | 13,070 | 3,271 | |||||
Trademarks | |||||||
Goodwill [Roll Forward] | |||||||
Intangibles gross carrying amount | 13,691 | 14,785 | |||||
Intangibles accumulated amortization | (5,816) | (5,736) | |||||
Intangibles net amount | 7,875 | 9,049 | |||||
Other | |||||||
Goodwill [Roll Forward] | |||||||
Intangibles gross carrying amount | 0 | 185 | |||||
Intangibles accumulated amortization | 0 | (148) | |||||
Intangibles net amount | 0 | 37 | |||||
U.S. Foodservice Operations | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill carrying amount, beginning balance | $ 1,265,485 | 1,260,900 | |||||
Goodwill acquired during year | 90,477 | 10,428 | |||||
Impairment | 0 | ||||||
Currency translation/other | 2,162 | (5,843) | |||||
Goodwill carrying amount, ending balance | 1,358,124 | 1,358,124 | 1,265,485 | 1,260,900 | |||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Goodwill | 1,358,124 | 1,358,124 | 1,265,485 | 1,260,900 | 1,358,124 | 1,265,485 | |
Impairments to goodwill | 0 | ||||||
International Foodservice Operations | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill carrying amount, beginning balance | 2,375,932 | 2,440,821 | |||||
Goodwill acquired during year | 0 | 9,127 | |||||
Impairment | (169,007) | ||||||
Currency translation/other | (53,164) | (74,016) | |||||
Goodwill carrying amount, ending balance | 2,153,761 | 2,153,761 | 2,375,932 | 2,440,821 | |||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Goodwill | 2,153,761 | 2,153,761 | 2,375,932 | 2,440,821 | 2,153,761 | 2,375,932 | |
Impairments to goodwill | 169,007 | ||||||
SYGMA | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill carrying amount, beginning balance | 32,607 | 32,607 | |||||
Goodwill acquired during year | 0 | 0 | |||||
Impairment | 0 | ||||||
Currency translation/other | 0 | 0 | |||||
Goodwill carrying amount, ending balance | 32,607 | 32,607 | 32,607 | 32,607 | |||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Goodwill | 32,607 | 32,607 | 32,607 | 32,607 | 32,607 | 32,607 | |
Impairments to goodwill | 0 | ||||||
Other | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill carrying amount, beginning balance | 222,202 | 221,157 | |||||
Goodwill acquired during year | 0 | 0 | |||||
Impairment | (34,199) | ||||||
Currency translation/other | (26) | 1,045 | |||||
Goodwill carrying amount, ending balance | 187,977 | 187,977 | 222,202 | 221,157 | |||
Estimated Future Amortization Expense for the Next Five Fiscal Years | |||||||
Goodwill | $ 187,977 | 187,977 | $ 222,202 | $ 221,157 | $ 187,977 | $ 222,202 | |
Impairments to goodwill | $ 34,199 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - ADDITIONAL INFORMATION (Details) € in Millions, $ in Millions | 3 Months Ended | |
Mar. 28, 2020USD ($) | Jun. 27, 2020EUR (€) | |
Derivative [Line Items] | ||
Gain on net investment hedges | $ | $ 56.7 | |
Interest Rate Swap, Due June 2023 | ||
Derivative [Line Items] | ||
Notional amount of derivative | € | € 500 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - SUMMARY OF INTEREST RATE SWAPS (Details) - 12 months ended Jun. 27, 2020 € in Millions, £ in Millions, kr in Millions, gal in Millions, $ in Millions | USD ($)gal | EUR (€) | SEK (kr) | GBP (£) |
Interest Rate Swap - October 1, 2020 | ||||
Derivative [Line Items] | ||||
Notional Value | $ 750 | |||
Interest Rate Swap - July 15, 2021 | ||||
Derivative [Line Items] | ||||
Notional Value | 500 | |||
Interest Rate Swap, Due June 2023 | ||||
Derivative [Line Items] | ||||
Notional Value | € | € 500 | |||
Interest Rate Swap - March 2025 | ||||
Derivative [Line Items] | ||||
Notional Value | $ 500 | |||
Hedging of foreign currency risk - Various | ||||
Derivative [Line Items] | ||||
Notional Value | kr 133 | £ 14 | ||
Hedging of foreign currency risk - July 2021 | ||||
Derivative [Line Items] | ||||
Notional Value | £ | £ 234 | |||
Hedging of foreign currency risk - June 2023 | ||||
Derivative [Line Items] | ||||
Notional Value | € | € 500 | |||
Hedging of fuel risk | ||||
Derivative [Line Items] | ||||
Notional amount (in gallons) | gal | 54 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - BALANCE SHEET LOCATION (Details) - Hedging Instrument - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Interest rate swaps | Fair value hedging | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | $ 1,388 | $ 0 |
Interest rate swaps | Fair value hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 69,782 | 37,396 |
Interest rate swaps | Fair value hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 9,285 |
Fuel swaps | Cash flow hedging | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 233 | 154 |
Fuel swaps | Cash flow hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 1,173 | 136 |
Fuel swaps | Cash flow hedging | Other current liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 28,242 | 6,537 |
Fuel swaps | Cash flow hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 239 |
Foreign currency forwards | Cash flow hedging | Other current assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 1,063 | 624 |
Foreign currency forwards | Cash flow hedging | Other current liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 222 | 162 |
Cross currency swaps | Cash flow hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 19,614 | 8,592 |
Foreign currency swaps | Net investment hedging | Other assets | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | 18,614 |
Foreign currency swaps | Net investment hedging | Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ 0 | $ 9,973 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - LOCATION OF GAIN (LOSS) ON DERIVATIVES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative [Line Items] | |||||||||||
Interest expense | $ 164,269 | $ 83,854 | $ 76,762 | $ 83,335 | $ 89,780 | $ 94,514 | $ 87,113 | $ 89,016 | $ 408,220 | $ 360,423 | $ 395,483 |
Unrealized gain (loss) on hedged item in fair value hedge, interest expense | (58,244) | (62,443) | |||||||||
Unrealized gain (loss) on hedged item in fair value hedge, change in fair value of debt | 43,011 | 81,268 | |||||||||
Hedging Instrument | Fair value hedging | Interest expense | Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Gain or (loss) on fair value hedging relationships, hedged items | (101,255) | (143,711) | |||||||||
Gain or (loss) on fair value hedging relationships, derivatives designated as hedging relationships | $ 44,489 | $ 68,689 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS - CASH FLOW HEDGES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | |
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | $ 56,700 | ||
Current maturities of long-term debt | |||
Derivative [Line Items] | |||
Carrying Amount of Hedged Assets (Liabilities) | $ (749,924) | ||
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | (1,388) | ||
Long-term debt | |||
Derivative [Line Items] | |||
Carrying Amount of Hedged Assets (Liabilities) | (1,563,636) | $ (2,311,636) | |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | (70,239) | (28,616) | |
Hedging Instrument | Cash flow hedging | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (9,831) | (5,394) | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (18,432) | 8,689 | |
Hedging Instrument | Cash flow hedging | Hedging of fuel risk | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | (16,586) | (22,100) | |
Hedging Instrument | Cash flow hedging | Hedging of fuel risk | Operating expense | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (22,058) | 8,180 | |
Hedging Instrument | Cash flow hedging | Foreign currency swaps | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 6,755 | 16,706 | |
Hedging Instrument | Cash flow hedging | Foreign currency swaps | Cost of sales / Other income | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 3,626 | 509 | |
Hedging Instrument | Net investment hedging | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 58,756 | 58,138 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 | |
Hedging Instrument | Net investment hedging | Foreign currency swaps | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 51,354 | 42,488 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 0 | 0 | |
Hedging Instrument | Net investment hedging | Foreign denominated debt | |||
Derivative [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives | 7,402 | 15,650 | |
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 0 | $ 0 |
SELF-INSURED LIABILITIES (Detai
SELF-INSURED LIABILITIES (Details) - Self-insured liabilities - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Self-Insured Liabilities | |||
Balance at beginning of period | $ 297,817 | $ 270,986 | $ 245,811 |
Charged to costs and expenses | 502,315 | 492,411 | 461,867 |
Payments | (470,484) | (465,580) | (436,692) |
Balance at end of period | 329,648 | 297,817 | $ 270,986 |
Long-term portion of self-insured liability balance | $ 205,600 | $ 183,600 |
DEBT AND OTHER FINANCING ARRA_3
DEBT AND OTHER FINANCING ARRANGEMENTS - SUMMARY (Details) £ in Millions | Jun. 27, 2020USD ($) | Jun. 27, 2020GBP (£) | May 04, 2020 | Apr. 02, 2020 | Feb. 13, 2020 | Jun. 29, 2019USD ($) |
Debt [Line Items] | ||||||
Total debt | $ 14,446,879,000 | $ 8,163,337,000 | ||||
Less current maturities of long-term debt | (1,542,128,000) | (37,322,000) | ||||
Less notes payable | (2,266,000) | (3,957,000) | ||||
Long-term debt | 12,902,485,000 | 8,122,058,000 | ||||
Principal payment required during next five years | ||||||
2021 | 1,490,284,000 | |||||
2022 | 950,000,000 | |||||
2023 | 561,098,000 | |||||
2024 | 700,000,000 | |||||
2025 | 1,614,538,000 | |||||
Commercial Paper | ||||||
Debt [Line Items] | ||||||
Total debt | 0 | |||||
Commercial Paper | U.S. Commercial paper, interest at 2.56% as of June 29, 2019 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 0 | 132,081,000 | ||||
Interest rate on debt instrument (as a percent) | 2.56% | 2.56% | ||||
Commercial Paper | U.K. Commercial paper, interest at 0.454%, maturing in fiscal 2021 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 740,226,000 | £ 600 | 0 | |||
Interest rate on debt instrument (as a percent) | 0.454% | 0.454% | 0.454% | |||
Senior Notes | Senior notes, interest at 2.60%, maturing in fiscal 2021 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 751,312,000 | 744,034,000 | ||||
Interest rate on debt instrument (as a percent) | 2.60% | 2.60% | ||||
Senior Notes | Senior notes, interest at 2.50%, maturing in fiscal 2022 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 504,352,000 | 494,814,000 | ||||
Interest rate on debt instrument (as a percent) | 2.50% | 2.50% | ||||
Senior Notes | Senior notes, interest at 2.60%, maturing in fiscal 2022 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 448,336,000 | 447,509,000 | ||||
Interest rate on debt instrument (as a percent) | 2.60% | 2.60% | ||||
Senior Notes | Senior notes, interest at 1.25%, maturing in fiscal 2023 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 568,011,000 | 576,771,000 | ||||
Interest rate on debt instrument (as a percent) | 1.25% | 1.25% | ||||
Senior Notes | Senior notes, interest at 3.55%, maturing in fiscal 2025 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 551,756,000 | 521,490,000 | ||||
Interest rate on debt instrument (as a percent) | 3.55% | 3.55% | ||||
Senior Notes | Senior notes, interest at 3.65%, maturing in fiscal 2025 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 362,785,000 | 379,658,000 | ||||
Interest rate on debt instrument (as a percent) | 3.65% | 3.65% | ||||
Senior Notes | Senior notes, interest at 5.65%, maturing in fiscal 2025 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 745,241,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 5.65% | 5.65% | 5.65% | |||
Senior Notes | Senior notes, interest at 3.75%, maturing in fiscal 2026 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 747,727,000 | 747,330,000 | ||||
Interest rate on debt instrument (as a percent) | 3.75% | 3.75% | ||||
Senior Notes | Senior notes, interest at 3.30%, maturing in fiscal 2027 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 993,978,000 | 993,084,000 | ||||
Interest rate on debt instrument (as a percent) | 3.30% | 3.30% | ||||
Senior Notes | Senior notes, interest at 3.25%, maturing in fiscal 2028 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 744,046,000 | 743,304,000 | ||||
Interest rate on debt instrument (as a percent) | 3.25% | 3.25% | ||||
Senior Notes | Senior notes, interest at 2.40%, maturing in fiscal 2030 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 495,273,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 2.40% | 2.40% | 2.40% | |||
Senior Notes | Senior notes, interest at 5.95%, maturing fiscal 2030 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 1,239,439,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 5.95% | 5.95% | 5.95% | |||
Senior Notes | Senior notes, interest at 5.375%, maturing in fiscal 2036 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 382,190,000 | 382,250,000 | ||||
Interest rate on debt instrument (as a percent) | 5.375% | 5.375% | ||||
Senior Notes | Senior notes, interest at 6.625%, maturing in fiscal 2039 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 199,390,000 | 199,198,000 | ||||
Interest rate on debt instrument (as a percent) | 6.625% | 6.625% | ||||
Senior Notes | Senior notes, interest at 6.60%, maturing in fiscal 2040 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 740,188,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 6.60% | 6.60% | 6.60% | |||
Senior Notes | Senior notes, interest at 4.85%, maturing in fiscal 2046 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 496,017,000 | 495,860,000 | ||||
Interest rate on debt instrument (as a percent) | 4.85% | 4.85% | ||||
Senior Notes | Senior notes, interest at 4.50%, maturing in fiscal 2046 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 494,338,000 | 494,215,000 | ||||
Interest rate on debt instrument (as a percent) | 4.50% | 4.50% | ||||
Senior Notes | Senior notes, interest at 4.45%, maturing in fiscal 2048 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 492,662,000 | 492,579,000 | ||||
Interest rate on debt instrument (as a percent) | 4.45% | 4.45% | ||||
Senior Notes | Senior notes, interest at 6.60%, maturing in fiscal 2050 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 1,233,666,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 6.60% | 6.60% | 6.60% | |||
Senior Notes | Senior notes, interest at 3.30%, maturing in fiscal year 2050 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 494,428,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 3.30% | 3.30% | 3.30% | |||
Debentures | Debentures, interest at 7.16%, maturing in fiscal 2027 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 44,273,000 | 44,272,000 | ||||
Interest rate on debt instrument (as a percent) | 7.16% | 7.16% | ||||
Debentures | Debentures, interest at 6.50%, maturing in fiscal 2029 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 162,416,000 | 162,150,000 | ||||
Interest rate on debt instrument (as a percent) | 6.50% | 6.50% | ||||
Notes payable, capital leases, and other debt, interest averaging 4.53% and maturing at various dates to fiscal 2046 as of June 27, 2020 and 4.99% and maturing at various dates to fiscal 2031 as of June 29, 2019 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 119,878,000 | $ 112,738,000 | ||||
Average interest rate on debt instruments (as a percent) | 4.53% | 4.53% | 4.99% | |||
Long-term revolving credit facility, interest at 2.125%, maturing in fiscal 2024 | ||||||
Debt [Line Items] | ||||||
Total debt | $ 694,951,000 | $ 0 | ||||
Interest rate on debt instrument (as a percent) | 2.125% | 2.125% |
DEBT AND OTHER FINANCING ARRA_4
DEBT AND OTHER FINANCING ARRANGEMENTS - NARRATIVE (Details) | May 20, 2020USD ($) | Apr. 02, 2020USD ($) | Feb. 13, 2020USD ($) | Jun. 27, 2020USD ($) | Jun. 27, 2020GBP (£) | May 04, 2020GBP (£) | Jun. 29, 2019USD ($) |
Debt [Line Items] | |||||||
Maximum commercial paper limit | $ 2,000,000,000 | ||||||
Carrying value of total debt | 14,446,879,000 | $ 8,163,337,000 | |||||
Borrowings under credit facility | 2,266,000 | 3,957,000 | |||||
Short term bank borrowings and commercial paper borrowings, minimum amount during period | 18,400,000 | ||||||
Short term bank borrowings and commercial paper borrowings, maximum amount during period | 1,900,000,000 | ||||||
Letters of credit outstanding, amount | 233,200,000 | 226,000,000 | |||||
Line of Credit | |||||||
Debt [Line Items] | |||||||
Borrowing capacity | $ 750,000,000 | ||||||
Debt instrument term | 364 days | ||||||
Borrowings under credit facility | 0 | ||||||
Line of Credit | |||||||
Debt [Line Items] | |||||||
Carrying value of total debt | $ 694,951,000 | 0 | |||||
Interest rate on debt instrument (as a percent) | 2.125% | 2.125% | |||||
Line of Credit | Revolving Credit Facility | |||||||
Debt [Line Items] | |||||||
Borrowing capacity | $ 2,000,000,000 | ||||||
Outstanding borrowings under facility | 700,000,000 | ||||||
Interest rate floor | 0.75% | ||||||
Commercial Paper | |||||||
Debt [Line Items] | |||||||
Carrying value of total debt | 0 | ||||||
Commercial Paper | U.K. Commercial paper, interest at 0.454%, maturing in fiscal 2021 | |||||||
Debt [Line Items] | |||||||
Borrowing capacity | £ | £ 600,000,000 | ||||||
Carrying value of total debt | $ 740,226,000 | £ 600,000,000 | 0 | ||||
Interest rate on debt instrument (as a percent) | 0.454% | 0.454% | 0.454% | ||||
Senior Notes | |||||||
Debt [Line Items] | |||||||
Debt instrument face amount | $ 4,000,000,000 | $ 1,000,000,000 | |||||
Senior Notes | Senior notes, interest at 6.625%, maturing in fiscal 2039 | |||||||
Debt [Line Items] | |||||||
Carrying value of total debt | $ 199,390,000 | $ 199,198,000 | |||||
Interest rate on debt instrument (as a percent) | 6.625% | 6.625% | |||||
Senior Notes | Senior Notes Due 2025 | |||||||
Debt [Line Items] | |||||||
Period prior to maturity for early redemption | 1 month | ||||||
Senior Notes | Senior Notes Due 2030 | |||||||
Debt [Line Items] | |||||||
Period prior to maturity for early redemption | 3 months | 3 months | |||||
Senior Notes | Senior Notes Due 2040 | |||||||
Debt [Line Items] | |||||||
Period prior to maturity for early redemption | 6 months | ||||||
Senior Notes | Senior Notes Due 2050 | |||||||
Debt [Line Items] | |||||||
Period prior to maturity for early redemption | 6 months | 6 months | |||||
Percent of principal due upon early repayment | 100.00% | 100.00% |
DEBT AND OTHER FINANCING ARRA_5
DEBT AND OTHER FINANCING ARRANGEMENTS - SCHEDULE OF SENIOR NOTES DETAILS (Details) - Senior Notes - USD ($) | Jun. 27, 2020 | Apr. 02, 2020 | Feb. 13, 2020 |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 4,000,000,000 | $ 1,000,000,000 | |
Senior notes, interest at 5.65%, maturing in fiscal 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 750,000,000 | ||
Interest rate on debt instrument (as a percent) | 5.65% | 5.65% | |
Pricing (percentage of par) | 99.931% | ||
Senior notes, interest at 5.95%, maturing fiscal 2030 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 1,250,000,000 | ||
Interest rate on debt instrument (as a percent) | 5.95% | 5.95% | |
Pricing (percentage of par) | 99.792% | ||
Senior notes, interest at 6.60%, maturing in fiscal 2040 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 750,000,000 | ||
Interest rate on debt instrument (as a percent) | 6.60% | 6.60% | |
Pricing (percentage of par) | 99.802% | ||
Senior notes, interest at 6.60%, maturing in fiscal 2050 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 1,250,000,000 | ||
Interest rate on debt instrument (as a percent) | 6.60% | 6.60% | |
Pricing (percentage of par) | 99.767% | ||
Senior notes, interest at 2.40%, maturing in fiscal 2030 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 500,000,000 | ||
Interest rate on debt instrument (as a percent) | 2.40% | 2.40% | |
Pricing (percentage of par) | 99.647% | ||
Senior notes, interest at 3.30%, maturing in fiscal year 2050 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 500,000,000 | ||
Interest rate on debt instrument (as a percent) | 3.30% | 3.30% | |
Pricing (percentage of par) | 99.811% |
LEASES - SUMMARY OF BALANCE SHE
LEASES - SUMMARY OF BALANCE SHEET INFORMATION (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Leases [Abstract] | |
Finance lease right-of-use assets | $ 99,918 |
Current finance lease liabilities | 33,670 |
Long-term finance lease liabilities | $ 68,942 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent |
LEASES - LEASE COSTS (Details)
LEASES - LEASE COSTS (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 123,269 |
Financing lease cost: | |
Amortization of right-of-use assets | 38,285 |
Interest on lease obligations | 4,667 |
Variable lease cost | 7,606 |
Short-term lease cost | 13,602 |
Net lease cost | $ 187,429 |
LEASES - FUTURE PAYMENTS (Detai
LEASES - FUTURE PAYMENTS (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Operating Leases | |
2021 | $ 120,815 |
2022 | 91,755 |
2023 | 75,845 |
2024 | 52,480 |
2025 | 46,746 |
Thereafter | 343,056 |
Total undiscounted lease obligations | 730,697 |
Less imputed interest | (100,034) |
Present value of lease obligations | 630,663 |
Finance Leases | |
2021 | 37,218 |
2022 | 26,889 |
2023 | 19,916 |
2024 | 12,786 |
2025 | 7,828 |
Thereafter | 7,102 |
Total undiscounted lease obligations | 111,739 |
Less imputed interest | (9,127) |
Present value of lease obligations | $ 102,612 |
LEASES - ADDITIONAL INFORMATION
LEASES - ADDITIONAL INFORMATION (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2020USD ($) | |
Cash Paid For Amounts Included In Measurement of Liabilities: | |
Operating cash flows for operating leases | $ 124,040 |
Operating cash flows for financing leases | 4,666 |
Financing cash flows for financing leases | 34,145 |
Supplemental Non-cash Information on Lease Liabilities: | |
Assets obtained in exchange for operating lease obligations | 64,968 |
Assets obtained in exchange for finance lease obligations | $ 17,019 |
Weighted-average remaining lease term (years): | |
Operating leases | 11 years 6 months 14 days |
Financing leases | 4 years 10 days |
Weighted-average discount rate: | |
Operating leases | 2.37% |
Financing leases | 4.24% |
COMPANY-SPONSORED EMPLOYEE BE_3
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plans expense | $ 151.4 | $ 150.4 | $ 151 |
Safe Harbor 401(k) Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-elective employer contribution, percent of participant's compensation | 3.00% | ||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Safe Harbor 401(k) Plan Non Adopting Unions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Management Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-elective employer contribution, percent of participant's compensation | 3.00% | ||
Employer matching contribution percent | 50.00% | ||
Employer matching contribution, percent of participant's compensation | 6.00% | ||
Maximum annual contributions per employee, percent of salary | 50.00% | ||
Maximum annual contributions per employee, percent of bonus | 90.00% |
COMPANY-SPONSORED EMPLOYEE BE_4
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - FUNDED STATUS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Change in plan assets: | |||
Cash surrender value of corporate-owned life insurance | $ 162,900 | $ 168,400 | |
Accumulated other comprehensive loss (income) | |||
Prior service cost | 1,957 | 11,378 | |
Actuarial losses (gains) | 1,716,838 | 1,632,547 | |
Total | 1,718,795 | 1,643,925 | |
Accumulated benefit obligation for all pension benefit plans | 5,400,000 | 4,900,000 | |
Other Postretirement Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 10,800 | ||
Benefit obligation at end of year | 10,900 | 10,800 | |
Change in plan assets: | |||
Cash surrender value of corporate-owned life insurance | 94,000 | 97,700 | |
Pension Benefits and SERP | United States | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 4,537,648 | 4,043,011 | |
Service cost | 15,532 | 13,977 | |
Interest cost | 164,756 | 172,213 | |
Amendments | (2,077) | 0 | |
Curtailments | 0 | 0 | |
Plan Combinations | 0 | 0 | |
Actuarial (gain) loss, net | 464,475 | 439,082 | |
Total disbursements | (140,616) | (130,635) | |
Exchange rate changes | 0 | 0 | |
Benefit obligation at end of year | 5,039,718 | 4,537,648 | $ 4,043,011 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 3,984,154 | 3,666,408 | |
Actual return on plan assets | 533,676 | 418,789 | |
Employer contribution | 31,525 | 29,592 | |
Total disbursements | (140,616) | (130,635) | |
Exchange rate changes | 0 | 0 | |
Fair value of plan assets at end of year | 4,408,739 | 3,984,154 | 3,666,408 |
Funded status at end of year | (630,979) | (553,494) | |
Accumulated benefit obligations/aggregate benefit obligation in excess of fair value of plan assets | |||
Pension Benefits, Accumulated benefit obligation/aggregate benefit obligation | 5,025,168 | 4,524,513 | |
Pension Benefits, Fair value of plan assets at end of year | 4,408,739 | 3,984,154 | |
Pension Benefits | |||
Change in plan assets: | |||
Employer contribution | 38,700 | 37,200 | |
Pension Benefits | United States | |||
Change in benefit obligation: | |||
Service cost | 15,531 | 13,977 | 14,514 |
Interest cost | 164,756 | 172,213 | 173,827 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 3,984,154 | ||
Fair value of plan assets at end of year | 4,408,739 | 3,984,154 | |
Amounts recognized in the balance sheets | |||
Noncurrent assets (Other assets) | 0 | 0 | |
Current accrued benefit liability (Accrued expenses) | (31,121) | (31,652) | |
Noncurrent accrued benefit liability (Other long-term liabilities) | (599,858) | (521,842) | |
Net amount recognized | (630,979) | (553,494) | |
Accumulated other comprehensive loss (income) | |||
Prior service cost | 1,176 | 10,790 | |
Actuarial losses (gains) | 1,687,105 | 1,599,539 | |
Total | 1,688,281 | 1,610,329 | |
Pension Benefits | International Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 406,697 | 399,000 | |
Service cost | 2,800 | 2,790 | 3,219 |
Interest cost | 8,681 | 10,637 | 10,667 |
Amendments | 661 | 3,050 | |
Curtailments | (4,012) | 0 | |
Plan Combinations | 0 | 173 | |
Actuarial (gain) loss, net | 21,157 | 20,783 | |
Total disbursements | (11,155) | (14,398) | |
Exchange rate changes | (10,723) | (15,338) | |
Benefit obligation at end of year | 414,106 | 406,697 | 399,000 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 264,746 | 258,028 | |
Actual return on plan assets | 35,594 | 23,765 | |
Employer contribution | 7,141 | 7,612 | |
Total disbursements | (11,155) | (14,398) | |
Exchange rate changes | (8,135) | (10,261) | |
Fair value of plan assets at end of year | 288,191 | 264,746 | $ 258,028 |
Funded status at end of year | (125,915) | (141,951) | |
Amounts recognized in the balance sheets | |||
Noncurrent assets (Other assets) | 0 | 0 | |
Current accrued benefit liability (Accrued expenses) | (1,359) | (1,285) | |
Noncurrent accrued benefit liability (Other long-term liabilities) | (124,556) | (140,666) | |
Net amount recognized | (125,915) | (141,951) | |
Accumulated other comprehensive loss (income) | |||
Prior service cost | 781 | 588 | |
Actuarial losses (gains) | 29,733 | 33,008 | |
Total | 30,514 | 33,596 | |
Accumulated benefit obligations/aggregate benefit obligation in excess of fair value of plan assets | |||
Pension Benefits, Accumulated benefit obligation/aggregate benefit obligation | 407,181 | 399,966 | |
Pension Benefits, Fair value of plan assets at end of year | 288,191 | 264,746 | |
Supplemental executive retirement plan | |||
Change in plan assets: | |||
Long-term defined benefit pension liabilities | $ 474,900 | $ 468,000 |
COMPANY-SPONSORED EMPLOYEE BE_5
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET BENEFIT COSTS AND OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of actuarial loss (gain) | $ 92,743 | $ 155,074 | $ (52,511) |
Prior service cost (credit) arising in current year | (5,712) | (6,400) | (6,905) |
Actuarial gain (loss) arising in current year | (38,934) | (26,116) | (25,110) |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost (credit) | 662 | ||
Amortization of actuarial losses (gains) | 42,525 | ||
Total | 43,187 | ||
Pension Benefits | United States | |||
Net benefit costs | |||
Service cost | 15,531 | 13,977 | 14,514 |
Interest cost | 164,756 | 172,213 | 173,827 |
Expected return on plan assets | (196,249) | (180,624) | (233,987) |
Amortization of prior service cost (credit) | 7,537 | 8,380 | 9,460 |
Amortization of actuarial loss | 39,483 | 35,537 | 35,696 |
Curtailment loss (gain) | 0 | 0 | 0 |
Settlement loss (gain) recognized | 0 | 0 | 0 |
Net pension (benefits) costs | 31,058 | 49,483 | (490) |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of prior service cost (credit) | 7,537 | 8,380 | 9,460 |
Amortization of actuarial loss (gain) | 39,483 | 35,537 | 35,696 |
Prior service cost (credit) arising in current year | 2,077 | 0 | 0 |
Effect of exchange rates on amounts in AOCI | 0 | 0 | 0 |
Actuarial gain (loss) arising in current year | (127,048) | (163,588) | 51,318 |
Net pension cost (income) | (77,951) | (119,671) | 96,474 |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost (credit) | 729 | ||
Amortization of actuarial losses (gains) | 42,288 | ||
Total | 43,017 | ||
Pension Benefits | International Plan | |||
Net benefit costs | |||
Service cost | 2,800 | 2,790 | 3,219 |
Interest cost | 8,681 | 10,637 | 10,667 |
Expected return on plan assets | (10,819) | (11,072) | (11,653) |
Amortization of prior service cost (credit) | 597 | (202) | (2,003) |
Amortization of actuarial loss | 157 | (98) | (67) |
Curtailment loss (gain) | (4,166) | 0 | 0 |
Settlement loss (gain) recognized | 109 | 16 | |
Net pension (benefits) costs | (2,750) | 2,164 | 179 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) | |||
Amortization of prior service cost (credit) | 422 | (202) | (2,003) |
Amortization of actuarial loss (gain) | 157 | 11 | (51) |
Prior service cost (credit) arising in current year | (661) | (3,050) | 4,624 |
Effect of exchange rates on amounts in AOCI | 784 | 1,163 | (583) |
Actuarial gain (loss) arising in current year | 3,640 | (8,090) | 10,406 |
Net pension cost (income) | 4,342 | $ (10,168) | $ 12,393 |
Accumulated other comprehensive loss (income) expected to be recognized as components of net benefit cost | |||
Amortization of prior service cost (credit) | (67) | ||
Amortization of actuarial losses (gains) | 237 | ||
Total | $ 170 |
COMPANY-SPONSORED EMPLOYEE BE_6
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - EMPLOYER CONTRIBUTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contribution | $ 38,700 | $ 37,200 |
Pension Benefits | International Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contribution | 7,141 | $ 7,612 |
Estimated contributions to defined benefit plans in next fiscal year | 7,000 | |
Supplemental executive retirement plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated contributions to defined benefit plans in next fiscal year | $ 31,100 |
COMPANY-SPONSORED EMPLOYEE BE_7
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - ESTIMATED FUTURE BENEFIT PAYMENTS (Details) - Pension Benefits $ in Thousands | Jun. 27, 2020USD ($) |
United States | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | $ 157,780 |
2022 | 167,694 |
2023 | 178,050 |
2024 | 188,214 |
2025 | 197,783 |
Subsequent five years | 1,120,130 |
International Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | 11,831 |
2022 | 12,127 |
2023 | 12,483 |
2024 | 13,312 |
2025 | 14,237 |
Subsequent five years | $ 74,274 |
COMPANY-SPONSORED EMPLOYEE BE_8
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - ASSUMPTIONS (Details) | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Pension Benefits | United States | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.94% | 3.70% | |
Rate of compensation increase | 2.56% | 2.56% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 3.70% | 4.28% | 4.19% |
Expected rate of return | 5.00% | 5.00% | 7.00% |
Rate of compensation increase | 2.56% | 2.62% | 2.62% |
Discount rate used to calculate next year benefit costs | 2.94% | ||
Expected rate of return on plan assets used in calculating net periodic benefit cost for next fiscal year | 4.75% | ||
Pension Benefits | United Kingdom | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 1.60% | 2.30% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 2.30% | 2.85% | 2.60% |
Expected rate of return | 4.55% | 4.55% | 4.55% |
Discount rate used to calculate next year benefit costs | 1.60% | ||
Expected rate of return on plan assets used in calculating net periodic benefit cost for next fiscal year | 2.55% | ||
Supplemental executive retirement plan | |||
Weighted-average assumptions used to determine benefit obligations | |||
Discount rate | 2.91% | 3.62% | |
Weighted-average assumptions used in calculating net periodic benefit cost | |||
Discount rate | 3.62% | 4.41% | 4.08% |
Discount rate used to calculate next year benefit costs | 2.91% |
COMPANY-SPONSORED EMPLOYEE BE_9
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - INVESTMENTS STRATEGY (Details) - Pension Benefits | 12 Months Ended | ||
Jun. 29, 2019 | Jun. 26, 2021 | Jun. 27, 2020 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual Asset Allocation | 100.00% | ||
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 2.30% | ||
Actual Asset Allocation | 100.00% | ||
Maximum allowable portfolio annual risk | 10.00% | ||
United Kingdom | Forecast | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 2.10% | ||
Growth assets | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 30.00% | ||
Actual Asset Allocation | 28.00% | ||
Liability hedging assets | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 70.00% | ||
Actual Asset Allocation | 72.00% | ||
Liability hedging assets | United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 40.00% | ||
Actual Asset Allocation | 48.00% | ||
Common contractual fund | United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Asset Allocation | 60.00% | ||
Actual Asset Allocation | 52.00% |
COMPANY-SPONSORED EMPLOYEE B_10
COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS - FAIR VALUE MEASUREMENTS (Details) - Pension Benefits - USD ($) | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,408,739,000 | $ 3,984,154,000 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 101,943,000 | 81,247,000 | |
United States | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded commitments related to investments | 0 | 0 | |
United States | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 575,035,000 | 468,923,000 | |
United States | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 252,687,000 | 202,493,000 | |
United States | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 233,792,000 | 226,409,000 | |
Unfunded commitments related to investments | 0 | 0 | |
United States | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87,730,000 | 93,592,000 | |
Unfunded commitments related to investments | $ 2,000,000 | $ 10,300,000 | |
Nonredeemable portion of investment, percent | 5.00% | 15.00% | |
United States | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 74,631,000 | $ 84,266,000 | |
Unfunded commitments related to investments | 16,200,000 | 17,600,000 | |
United States | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,220,702,000 | 1,987,964,000 | |
United States | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 834,394,000 | 821,118,000 | |
United States | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,825,000 | 18,142,000 | |
United States | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34,475,000 | 135,277,000 | |
United States | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 34,475,000 | 39,981,000 | |
United States | Level 1 | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 95,296,000 | |
United States | Level 1 | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,609,638,000 | 2,346,001,000 | |
United States | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67,468,000 | 41,266,000 | |
United States | Level 2 | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,220,702,000 | 1,987,964,000 | |
United States | Level 2 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 293,643,000 | 298,629,000 | |
United States | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27,825,000 | 18,142,000 | |
United States | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fair Value Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,764,626,000 | 1,502,876,000 | |
United States | Fair Value Measured at NAV | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fair Value Measured at NAV | U.S. equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 575,035,000 | 468,923,000 | |
United States | Fair Value Measured at NAV | International equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 252,687,000 | 107,197,000 | |
United States | Fair Value Measured at NAV | Alternative investment funds - Hedge fund of funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 233,792,000 | 226,409,000 | |
United States | Fair Value Measured at NAV | Alternative investment funds - Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87,730,000 | 93,592,000 | |
United States | Fair Value Measured at NAV | Alternative investment funds - Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 74,631,000 | 84,266,000 | |
United States | Fair Value Measured at NAV | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fair Value Measured at NAV | U.S. government and agency securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 540,751,000 | 522,489,000 | |
United States | Fair Value Measured at NAV | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 288,191,000 | 264,746,000 | $ 258,028,000 |
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 288,191,000 | 264,746,000 | |
United Kingdom | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,510,000 | 13,372,000 | |
United Kingdom | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135,318,000 | 63,363,000 | |
United Kingdom | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123,000 | 575,000 | |
Fair value of derivative assets | 6,800,000 | 9,300,000 | |
Fair value of derivative liabilities | 6,600,000 | 8,700,000 | |
United Kingdom | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 150,240,000 | 187,436,000 | |
Unfunded commitments related to investments | 14,900,000 | 13,900,000 | |
United Kingdom | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,510,000 | 13,372,000 | |
United Kingdom | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,510,000 | 13,372,000 | |
United Kingdom | Level 1 | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 1 | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 1 | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135,441,000 | 63,938,000 | |
United Kingdom | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 2 | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135,318,000 | 63,363,000 | |
United Kingdom | Level 2 | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123,000 | 575,000 | |
United Kingdom | Level 2 | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Level 3 | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 150,240,000 | 187,436,000 | |
United Kingdom | Fair Value Measured at NAV | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | U.K. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | Liability hedging assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United Kingdom | Fair Value Measured at NAV | Common contractual fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 150,240,000 | $ 187,436,000 |
MULTIEMPLOYER EMPLOYEE BENEFI_3
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS (Details) | 12 Months Ended |
Jun. 27, 2020 | |
Pension Benefits | |
Multiemployer Plans [Line Items] | |
Percentage of employees participating in multi-employer plans | 11.00% |
MULTIEMPLOYER EMPLOYEE BENEFI_4
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS - PLAN CONTRIBUTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Multiple-Employer Plan Accounted for as Multiemployer Plan [Abstract] | |||
Individually significant plans | $ 31,683 | $ 31,669 | $ 30,460 |
All other plans | 15,762 | 16,876 | 15,915 |
Multiemployer plan contributions | $ 47,445 | $ 48,545 | $ 46,375 |
MULTIEMPLOYER EMPLOYEE BENEFI_5
MULTIEMPLOYER EMPLOYEE BENEFIT PLANS - INDIVIDUALLY SIGNIFICANT PLANS (Details) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020USD ($)agreement | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | |
Multiemployer Plans [Line Items] | |||
Individually significant plans | $ 31,683 | $ 31,669 | $ 30,460 |
Western Conference of Teamsters Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Pension Protection Act Zone Status | Green | Green | |
Multiemployer plan number of collective bargaining agreements | agreement | 23 | ||
Individually significant plans | $ 31,683 | $ 31,669 | $ 30,460 |
Western Conference of Teamsters Pension Plan | Minimum | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 1.00% | ||
Western Conference of Teamsters Pension Plan | Maximum | |||
Multiemployer Plans [Line Items] | |||
Multiemployer plan collective bargaining agreement average percentage of employer's contributions | 17.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Numerator: | |||||||||||
Net earnings | $ (618,419) | $ (3,297) | $ 383,410 | $ 453,781 | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 215,475 | $ 1,674,271 | $ 1,430,766 |
Denominator: | |||||||||||
Weighted-average basic shares outstanding (in shares) | 510,121,071 | 516,890,581 | 522,926,914 | ||||||||
Dilutive effect of share-based awards (in shares) | 3,904,903 | 6,490,543 | 6,162,940 | ||||||||
Weighted-average diluted shares outstanding (in shares) | 514,025,974 | 523,381,124 | 529,089,854 | ||||||||
Basic earnings per share (in dollars per share) | $ (1.22) | $ (0.01) | $ 0.75 | $ 0.88 | $ 1.04 | $ 0.86 | $ 0.52 | $ 0.83 | $ 0.42 | $ 3.24 | $ 2.74 |
Diluted earnings per share (in dollars per share) | $ (1.22) | $ (0.01) | $ 0.74 | $ 0.87 | $ 1.03 | $ 0.85 | $ 0.51 | $ 0.81 | $ 0.42 | $ 3.20 | $ 2.70 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Dividends declared | $ 884,124 | $ 793,220 | $ 735,266 | ||||||||
Dividends declared but not yet paid | $ 228,700 | $ 200,000 | $ 228,700 | $ 200,000 | $ 187,400 | ||||||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive securities excluded (in shares) | 4,833,000 | 2,338,000 | 2,303,000 |
OTHER COMPREHENSIVE INCOME - CO
OTHER COMPREHENSIVE INCOME - COMPONENTS OF OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive income | $ 104,323 | $ 1,483,811 | $ 1,520,679 |
Before Tax Amount | |||
Total other comprehensive income (loss) | (114,701) | (208,099) | 124,097 |
Tax | |||
Total other comprehensive income (loss) | (3,549) | (17,639) | 34,184 |
Net of Tax Amount | |||
Before reclassifications, net of tax | (168,686) | (234,423) | 49,658 |
Reclassifications, net of tax | 53,266 | 41,136 | 40,255 |
Total other comprehensive (loss) income | (111,152) | (190,460) | 89,913 |
Pension and other postretirement benefit plans | |||
Net of Tax Amount | |||
Before reclassifications, net of tax | (92,743) | (155,074) | 52,511 |
Reclassifications, net of tax | 44,646 | 32,516 | 32,015 |
Pension and other postretirement benefit plans | Other expense, net | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 56,904 | 43,356 | |
Tax | |||
Reclassifications tax | 12,258 | 10,840 | |
Net of Tax Amount | |||
Reclassifications, net of tax | 44,646 | 32,516 | |
Pension and other postretirement benefit plans | Operating expenses | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 44,680 | ||
Tax | |||
Reclassifications tax | 12,665 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 32,015 | ||
Amortization of prior service cost | Other expense, net | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 7,620 | 8,532 | |
Tax | |||
Reclassifications tax | 1,908 | 2,132 | |
Net of Tax Amount | |||
Reclassifications, net of tax | 5,712 | 6,400 | |
Amortization of prior service cost | Operating expenses | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 9,636 | ||
Tax | |||
Reclassifications tax | 2,731 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 6,905 | ||
Amortization of actuarial loss, net | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (125,214) | (200,144) | 69,476 |
Tax | |||
Before reclassifications tax | (32,471) | (45,070) | 16,965 |
Net of Tax Amount | |||
Before reclassifications, net of tax | (92,743) | (155,074) | 52,511 |
Amortization of actuarial loss, net | Other expense, net | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 49,284 | 34,824 | |
Tax | |||
Reclassifications tax | 10,350 | 8,708 | |
Net of Tax Amount | |||
Reclassifications, net of tax | 38,934 | 26,116 | |
Amortization of actuarial loss, net | Operating expenses | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 35,044 | ||
Tax | |||
Reclassifications tax | 9,934 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 25,110 | ||
Foreign currency translation | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (112,215) | (119,126) | (22,987) |
Tax | |||
Before reclassifications tax | 0 | 0 | 0 |
Net of Tax Amount | |||
Before reclassifications, net of tax | (112,215) | (119,126) | (22,987) |
Marketable Securities | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 5,403 | 3,579 | |
Tax | |||
Before reclassifications tax | 1,135 | 752 | |
Net of Tax Amount | |||
Before reclassifications, net of tax | 4,268 | 2,827 | |
Hedging, net of tax | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 23,872 | ||
Tax | |||
Before reclassifications tax | 9,529 | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | 14,343 | ||
Hedging, net of tax | Interest expense | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,499 | ||
Tax | |||
Reclassifications tax | 3,259 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 8,240 | ||
Change in net investment hedges | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 58,756 | 58,138 | (2,443) |
Tax | |||
Before reclassifications tax | 15,227 | 14,299 | (8,234) |
Net of Tax Amount | |||
Before reclassifications, net of tax | 43,529 | 43,839 | 5,791 |
Change in cash flow hedges | Operating expenses | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (5,394) | ||
Tax | |||
Before reclassifications tax | (1,332) | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | (4,062) | ||
Change in cash flow hedges | Interest expense | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,492 | ||
Tax | |||
Reclassifications tax | 2,872 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | 8,620 | ||
Total other comprehensive income before reclassification adjustments | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | 48,925 | 52,744 | 21,429 |
Tax | |||
Before reclassifications tax | 12,653 | 12,967 | 1,295 |
Net of Tax Amount | |||
Before reclassifications, net of tax | 36,272 | $ 39,777 | $ 20,134 |
Change in cash flow hedges | Operating expenses | |||
Before Tax Amount | |||
Other comprehensive income before reclassifications, before tax | (9,831) | ||
Tax | |||
Before reclassifications tax | (2,574) | ||
Net of Tax Amount | |||
Before reclassifications, net of tax | (7,257) | ||
Change in cash flow hedges | Interest expense | |||
Before Tax Amount | |||
Reclassification adjustments, before tax | 11,496 | ||
Tax | |||
Reclassifications tax | 2,876 | ||
Net of Tax Amount | |||
Reclassifications, net of tax | $ 8,620 |
OTHER COMPREHENSIVE INCOME - SU
OTHER COMPREHENSIVE INCOME - SUMMARY OF CHANGES IN AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | $ 2,502,603 | $ 2,506,957 | $ 2,381,516 |
Other comprehensive income before reclassification adjustments | (168,686) | (234,423) | 49,658 |
Amounts reclassified from accumulated other comprehensive loss | 53,266 | 41,136 | 40,255 |
Amounts reclassified to retained earnings | 2,827 | (236,445) | |
Change in marketable securities | 4,268 | ||
Ending balance, shareholders' equity | 1,158,613 | 2,502,603 | 2,506,957 |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (1,599,729) | (1,409,269) | (1,262,737) |
Ending balance, shareholders' equity | (1,710,881) | (1,599,729) | (1,409,269) |
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) | (974,232) |
Other comprehensive income before reclassification adjustments | (92,743) | (155,074) | 52,511 |
Amounts reclassified from accumulated other comprehensive loss | 44,646 | 32,516 | 32,015 |
Amounts reclassified to retained earnings | 0 | (205,353) | |
Ending balance, shareholders' equity | (1,265,714) | (1,217,617) | (1,095,059) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (290,169) | (171,043) | (148,056) |
Other comprehensive income before reclassification adjustments | (112,215) | (119,126) | (22,987) |
Ending balance, shareholders' equity | (402,384) | (290,169) | (171,043) |
Hedging, net of tax | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | (94,770) | (143,167) | (140,449) |
Other comprehensive income before reclassification adjustments | 36,272 | 39,777 | 20,134 |
Amounts reclassified from accumulated other comprehensive loss | 8,620 | 8,620 | 8,240 |
Amounts reclassified to retained earnings | 0 | (31,092) | |
Ending balance, shareholders' equity | (49,878) | (94,770) | (143,167) |
Marketable Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, shareholders' equity | 2,827 | 0 | 0 |
Other comprehensive income before reclassification adjustments | 4,268 | 2,827 | |
Amounts reclassified to retained earnings | 2,827 | ||
Change in marketable securities | 4,268 | ||
Ending balance, shareholders' equity | $ 7,095 | $ 2,827 | $ 0 |
SHARE-BASED COMPENSATION - STOC
SHARE-BASED COMPENSATION - STOCK INCENTIVE PLANS (Details) - shares | 1 Months Ended | 12 Months Ended |
Nov. 30, 2018 | Jun. 27, 2020 | |
2018 Omnibus Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares authorized (in shares) | 51,500,000 | |
Performance measurement period (in years) | 10 years | |
Total number of shares available for grant (in shares) | 46,728,773 | |
2018 Omnibus Incentive Plan | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period (in years) | 1 year | |
2018 Omnibus Incentive Plan | Restricted Stock, Restricted Stock Units Or Other Types Of Stock-Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares authorized (in shares) | 17,500,000 | |
Total number of shares available for grant (in shares) | 15,640,344 | |
2018 Omnibus Incentive Plan | Options Or Stock Apppreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total number of shares available for grant (in shares) | 46,728,773 | |
Long-term Incentive Plan prior to 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period (in years) | 10 years |
SHARE-BASED COMPENSATION - PERF
SHARE-BASED COMPENSATION - PERFORMANCE SHARE UNITS (Details) - Performance Share Units (PSUs) - $ / shares | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity instruments other than options granted (in shares) | 680,230 | 581,174 |
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 73.37 | $ 74.86 |
SHARE-BASED COMPENSATION - ST_2
SHARE-BASED COMPENSATION - STOCK OPTIONS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020USD ($)employeeofficer$ / sharesshares | Jun. 29, 2019USD ($)employee$ / sharesshares | Jun. 30, 2018USD ($)employeeofficer$ / sharesshares | |
Fair Value Assumptions and Methodology | |||
Dividend yield | 2.40% | 2.50% | 2.60% |
Expected volatility | 18.30% | 16.90% | 17.50% |
Risk-free interest rate | 1.50% | 2.80% | 2.00% |
Expected life (in years) | 7 years | 7 years | 7 years |
Shares Under Option | |||
Outstanding, beginning balance (in shares) | 14,989,277 | ||
Granted (in shares) | 3,286,943 | 2,609,755 | 4,042,415 |
Exercised (in shares) | 4,518,342 | ||
Forfeited (in shares) | 1,809,674 | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 11,948,204 | 14,989,277 | |
Vested or expected to vest (in shares) | 5,762,300 | ||
Exercisable (in shares) | 6,083,923 | ||
Weighted Average Exercise Price Per Share | |||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 50.36 | ||
Granted (in dollars per share) | $ / shares | 73.15 | ||
Exercised (in dollars per share) | $ / shares | 44.19 | ||
Forfeited (in dollars per share) | $ / shares | 62.52 | ||
Expired (in dollars per share) | $ / shares | 0 | ||
Outstanding, ending balance (in dollars per share) | $ / shares | 57.12 | $ 50.36 | |
Vested or expected to vest (in dollars per share) | $ / shares | 65.83 | ||
Exercisable (in dollars per share) | $ / shares | $ 48.67 | ||
Additional Disclosures | |||
Outstanding, ending balance, weighted average remaining contractual term (in years) | 6 years 11 months 23 days | ||
Vested or expected to vest, weighted average remaining contractual term (in years) | 8 years 2 months 19 days | ||
Exercisable, weighted average remaining contractual term (in years) | 5 years 9 months 7 days | ||
Outstanding, ending balance, aggregate intrinsic value | $ | $ 45,574 | ||
Vested or expected to vest, aggregate intrinsic value | $ | 9,400 | ||
Exercisable, aggregate intrinsic value | $ | $ 36,012 | ||
Weighted average fair value of options granted in period (in USD per share) | $ / shares | $ 10.57 | $ 11.70 | $ 7.08 |
Total intrinsic value of options exercised in period | $ | $ 11,600 | $ 14,000 | $ 17,700 |
Key Employees | |||
Shares Under Option | |||
Granted (in shares) | 1,732,377 | 1,952,414 | 3,087,071 |
Additional Disclosures | |||
Number of employees/officers receiving options in period | employee | 174 | 179 | 181 |
Executive Officer | |||
Shares Under Option | |||
Granted (in shares) | 1,554,566 | 657,341 | 955,344 |
Additional Disclosures | |||
Number of employees/officers receiving options in period | 12 | 9 | 10 |
SHARE-BASED COMPENSATION - REST
SHARE-BASED COMPENSATION - RESTRICTED STOCK UNITS (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options granted (in shares) | 704,732 | 617,685 | 660,923 |
Equity instruments other than options granted, award vesting period (in years) | 3 years | ||
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 71.01 | $ 63.91 | $ 55.81 |
Equity instruments other than options vested, total fair value | $ 30.4 | $ 35.3 | $ 40.4 |
Equity instruments other than options exercised, intrinsic value | $ 35.7 | $ 49.8 | $ 56.4 |
SHARE-BASED COMPENSATION - NON-
SHARE-BASED COMPENSATION - NON-EMPLOYEE DIRECTOR AWARDS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options distributed, total fair value | $ 0.2 | $ 0.7 | $ 1.2 |
Equity instruments other than options vested (in shares) | 4,187 | 10,672 | 21,478 |
Equity instruments other than options vested, weighted average grant date fair value per share (in dollars per share) | $ 75.46 | $ 67.45 | $ 54.69 |
Director Restricted Award And Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options vested but not distributed ending balance (in shares) | 81,066 | ||
Director Restricted Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options granted (in shares) | 27,431 | 30,870 | 35,672 |
Equity instruments other than options granted, award vesting period (in years) | 1 year | ||
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share) | $ 74.17 | $ 66.22 | $ 54.10 |
Equity instruments other than options distributed, total fair value | $ 2 | $ 2 | $ 2.9 |
2009 Non-Employee Directors Stock Plan | Elected Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum percentage of annual director fees that can be received in common stock | 100.00% |
SHARE-BASED COMPENSATION - SUMM
SHARE-BASED COMPENSATION - SUMMARY OF NONVESTED AWARDS (Details) - Nonvested Awards | 12 Months Ended |
Jun. 27, 2020$ / sharesshares | |
Shares | |
Nonvested beginning balance (in shares) | shares | 3,287,741 |
Granted (in shares) | shares | 1,505,605 |
Vested (in shares) | shares | (1,367,165) |
Forfeited (in shares) | shares | (583,552) |
Nonvested ending balance (in shares) | shares | 2,842,629 |
Weighted Average Grant Date Fair Value Per Share | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 58.40 |
Granted (in dollars per share) | $ / shares | 72.28 |
Vested (in dollars per share) | $ / shares | 54.44 |
Forfeited (in dollars per share) | $ / shares | 64.97 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 66.31 |
SHARE-BASED COMPENSATION - EMPL
SHARE-BASED COMPENSATION - EMPLOYEES' STOCK PURCHASE PLAN (Details) - Employees' Stock Purchase Plan - $ / shares | 12 Months Ended | |||
Jun. 26, 2021 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, discount from market price | 15.00% | |||
Total number of shares authorized (in shares) | 79,000,000 | |||
Total number of shares available for grant (in shares) | 5,149,259 | |||
Equity instruments other than options vested (in shares) | 1,089,296 | 986,631 | 1,078,597 | |
Equity instruments other than options vested, weighted average grant date fair value per share (in dollars per share) | $ 10.03 | $ 10.17 | $ 8.38 | |
Forecast | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, discount from market price | 5.00% |
SHARE-BASED COMPENSATION - ALL
SHARE-BASED COMPENSATION - ALL SHARE-BASED PAYMENT ARRANGEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Share-based compensation expense | $ 42,234 | $ 104,904 | $ 93,841 |
Total income tax benefit for share-based compensation arrangements | 7,000 | 21,700 | 19,400 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 79,300 | ||
Weighted average period of time for unrecognized compensation cost to be recognized (in years) | 1 year 10 months 28 days | ||
Cash received from options exercises and purchase of shares under the employees' stock purchase plan | $ 227,600 | 253,100 | 268,800 |
Share-based compensation | $ 25,400 | $ 32,400 | $ 38,400 |
INCOME TAXES - INCOME TAX PROVI
INCOME TAXES - INCOME TAX PROVISIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States pretax income | $ 742,332 | $ 1,910,549 | $ 1,765,793 | ||||||||
Foreign pretax income | (448,948) | 95,287 | 190,431 | ||||||||
Earnings before income taxes | $ (736,245) | $ (28,780) | $ 476,538 | $ 581,871 | $ 682,308 | $ 430,951 | $ 354,585 | $ 537,992 | 293,384 | 2,005,836 | 1,956,224 |
U.S. federal income taxes | 128,576 | 262,940 | 399,254 | ||||||||
State and local income taxes | 8,529 | 73,835 | 62,670 | ||||||||
Foreign income taxes | (59,196) | (5,210) | 63,534 | ||||||||
Current income tax expense | 269,226 | 458,284 | 337,550 | ||||||||
Deferred income tax expense (benefit) | (191,317) | (126,719) | 187,908 | ||||||||
Total income tax expense | $ (117,826) | $ (25,483) | $ 93,128 | $ 128,090 | $ 146,542 | $ (9,132) | $ 87,205 | $ 106,950 | $ 77,909 | $ 331,565 | $ 525,458 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 379,620 | $ 274,231 |
Pension | 184,616 | 157,670 |
Receivables | 99,540 | 17,383 |
Deferred compensation | 31,603 | 29,694 |
Share-based compensation | 21,296 | 39,218 |
Inventory | 17,069 | 12,139 |
Self-insured liabilities | 3,409 | 16,496 |
Other | 41,820 | 34,366 |
Deferred tax assets before valuation allowances | 778,973 | 581,197 |
Valuation allowances | (137,862) | (127,807) |
Total deferred tax assets | 641,111 | 453,390 |
Deferred tax liabilities: | ||
Goodwill and intangible assets | 329,940 | 358,847 |
Excess tax depreciation and basis differences of assets | 169,920 | 163,123 |
Other | 33,737 | 22,892 |
Total deferred tax liabilities | 533,597 | 544,862 |
Total net deferred tax assets (liabilities) | $ 107,514 | |
Total net deferred tax assets (liabilities) | $ (91,472) |
INCOME TAXES - OTHER (Details)
INCOME TAXES - OTHER (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | $ 137,862 | $ 127,807 |
Foreign Tax Authority | Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward period | 17 years |
INCOME TAXES - EFFECTIVE TAX RA
INCOME TAXES - EFFECTIVE TAX RATES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory federal income tax rate | 21.00% | 21.00% | 28.00% |
State and local income taxes, net of any applicable federal income tax benefit | 5.69% | 3.35% | 2.48% |
Foreign income taxes | (2.46%) | (1.42%) | 0.07% |
Uncertain tax position | (1.44%) | (0.31%) | (0.22%) |
Tax benefit of equity-based compensation | (9.77%) | (2.07%) | (2.66%) |
Nondeductible impairment charges | 17.65% | 0.00% | 0.00% |
Impact of U.S. Tax Reform | 0.00% | (4.64%) | 0.13% |
Other | (4.12%) | 0.62% | (0.95%) |
Effective income tax rate | 26.55% | 16.53% | 26.85% |
Foreign tax credit included within Impacts of U.S. Tax Reform | $ 95.1 |
INCOME TAXES - UNCERTAIN TAX PO
INCOME TAXES - UNCERTAIN TAX POSITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Gross Unrecognized Tax Benefits, Excluding Interest and Penalties | ||
Unrecognized tax benefits at beginning of year | $ 26,109 | $ 12,195 |
Additions for tax positions related to prior years | 0 | 20,508 |
Reductions for tax positions related to prior years | (2,974) | (6,086) |
Reductions due to settlements with taxing authorities | 0 | (508) |
Unrecognized tax benefits at end of year | 23,135 | 26,109 |
Liability recorded for interest and penalties related to unrecognized tax benefits | 4,100 | 4,600 |
Amount of unrecognized tax benefits at balance sheet date that, if recognized, would impact effective tax rate | $ 22,400 | $ 24,800 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - FUEL COMMITMENTS (Details) $ in Billions | Jun. 27, 2020USD ($) |
Product Purchases for Resale Commitments | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Unrecorded unconditional purchase obligation as of balance sheet date | $ 6.1 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - OTHER COMMITMENTS (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2020USD ($) | |
Product Purchases for Resale Commitments | |
Product purchases for resale commitments: | |
2021 | $ 3,927,035 |
2022 | 1,402,700 |
2023 | 533,739 |
2024 | 253,533 |
2025 | 0 |
Information Technology Services Commitments | |
Product purchases for resale commitments: | |
Remaining amount of long-term purchase commitment | 321,700 |
Termination fee associated with long-term purchase commitment if terminated in next fiscal year | $ 37,900 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 27, 2020USD ($)segment | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating expenses | $ 2,097,235 | $ 2,503,966 | $ 2,275,906 | $ 2,275,052 | $ 2,258,662 | $ 2,224,713 | $ 2,319,817 | $ 2,275,645 | $ 9,152,159 | $ 9,078,837 | $ 8,771,335 |
Sales | 8,866,564 | 13,698,699 | 15,025,042 | 15,303,005 | 15,474,862 | 14,658,074 | 14,765,707 | 15,215,279 | 52,893,310 | 60,113,922 | 58,727,324 |
Operating income | (531,580) | 60,274 | 552,493 | 668,318 | 720,530 | 529,585 | 451,895 | 628,140 | 749,505 | 2,330,150 | 2,314,056 |
Interest expense | 164,269 | 83,854 | 76,762 | 83,335 | 89,780 | 94,514 | 87,113 | 89,016 | 408,220 | 360,423 | 395,483 |
Other expense (income), net | 40,396 | 5,200 | (807) | 3,112 | (51,558) | 4,120 | 10,197 | 1,132 | 47,901 | (36,109) | (37,651) |
Earnings before income taxes | (736,245) | $ (28,780) | $ 476,538 | $ 581,871 | 682,308 | $ 430,951 | $ 354,585 | $ 537,992 | 293,384 | 2,005,836 | 1,956,224 |
Depreciation and amortization | 805,765 | 763,935 | 765,498 | ||||||||
Capital expenditures | 720,423 | 692,391 | 687,815 | ||||||||
Assets | 22,628,266 | 17,966,522 | 22,628,266 | 17,966,522 | 18,070,404 | ||||||
Reclassification | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating expenses | 201,000 | 197,000 | |||||||||
U.S. Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 36,774,146 | 41,288,188 | 39,642,263 | ||||||||
International Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 9,672,190 | 11,493,040 | 11,518,565 | ||||||||
SYGMA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,555,926 | 6,244,328 | 6,557,033 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 891,048 | 1,088,366 | 1,009,463 | ||||||||
Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 52,893,310 | 60,113,922 | 58,727,324 | ||||||||
Operating income | 1,647,271 | 3,180,865 | 3,117,479 | ||||||||
Depreciation and amortization | 700,221 | 637,532 | 652,163 | ||||||||
Capital expenditures | 526,294 | 637,931 | 476,564 | ||||||||
Assets | 14,049,170 | 14,228,342 | 14,049,170 | 14,228,342 | 14,266,736 | ||||||
Operating | U.S. Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 36,774,146 | 41,288,188 | 39,642,263 | ||||||||
Operating income | 2,003,159 | 2,991,794 | 2,859,812 | ||||||||
Depreciation and amortization | 373,889 | 342,277 | 348,041 | ||||||||
Capital expenditures | 263,943 | 327,005 | 262,887 | ||||||||
Assets | 6,647,288 | 7,238,309 | 6,647,288 | 7,238,309 | 7,039,354 | ||||||
Operating | International Foodservice Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 9,672,190 | 11,493,040 | 11,518,565 | ||||||||
Operating income | (371,407) | 125,443 | 193,864 | ||||||||
Depreciation and amortization | 279,475 | 248,914 | 258,156 | ||||||||
Capital expenditures | 217,694 | 249,527 | 157,139 | ||||||||
Assets | 6,258,382 | 5,888,275 | 6,258,382 | 5,888,275 | 6,112,666 | ||||||
Operating | SYGMA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 5,555,926 | 6,244,328 | 6,557,033 | ||||||||
Operating income | 36,880 | 27,780 | 24,318 | ||||||||
Depreciation and amortization | 34,785 | 35,473 | 36,367 | ||||||||
Capital expenditures | 23,657 | 36,396 | 45,132 | ||||||||
Assets | 685,184 | 624,720 | 685,184 | 624,720 | 662,290 | ||||||
Operating | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 891,048 | 1,088,366 | 1,009,463 | ||||||||
Operating income | (21,361) | 35,848 | 39,485 | ||||||||
Depreciation and amortization | 12,072 | 10,868 | 9,599 | ||||||||
Capital expenditures | 21,000 | 25,003 | 11,406 | ||||||||
Assets | 458,316 | 477,038 | 458,316 | 477,038 | 452,426 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | (897,766) | (850,715) | (803,423) | ||||||||
Depreciation and amortization | 105,544 | 126,403 | 113,335 | ||||||||
Capital expenditures | 194,129 | 54,460 | 211,251 | ||||||||
Assets | $ 8,579,096 | $ 3,738,180 | $ 8,579,096 | $ 3,738,180 | $ 3,803,668 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - GEOGRAPHIC AREA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 8,866,564 | $ 13,698,699 | $ 15,025,042 | $ 15,303,005 | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 52,893,310 | $ 60,113,922 | $ 58,727,324 |
Long-lived assets | 4,458,567 | 4,501,705 | 4,458,567 | 4,501,705 | 4,521,660 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 42,803,700 | 48,257,385 | 46,812,297 | ||||||||
Long-lived assets | 3,340,920 | 3,361,629 | 3,340,920 | 3,361,629 | 3,448,164 | ||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 4,105,236 | 4,660,030 | 4,661,615 | ||||||||
Long-lived assets | 331,196 | 334,177 | 331,196 | 334,177 | 318,410 | ||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,481,712 | 3,133,793 | 3,176,069 | ||||||||
Long-lived assets | 255,153 | 270,613 | 255,153 | 270,613 | 319,664 | ||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 1,222,742 | 1,581,663 | 1,625,407 | ||||||||
Long-lived assets | 308,983 | 329,923 | 308,983 | 329,923 | 240,507 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | 2,279,920 | 2,481,051 | 2,451,936 | ||||||||
Long-lived assets | $ 222,315 | $ 205,363 | $ 222,315 | $ 205,363 | $ 194,915 |
QUARTERLY RESULTS (UNAUDITED)_2
QUARTERLY RESULTS (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Quarterly Financial Data [Abstract] | |||||||||||
Sales | $ 8,866,564 | $ 13,698,699 | $ 15,025,042 | $ 15,303,005 | $ 15,474,862 | $ 14,658,074 | $ 14,765,707 | $ 15,215,279 | $ 52,893,310 | $ 60,113,922 | $ 58,727,324 |
Cost of sales | 7,300,909 | 11,134,459 | 12,196,643 | 12,359,635 | 12,495,670 | 11,903,776 | 11,993,995 | 12,311,494 | 42,991,646 | 48,704,935 | 47,641,933 |
Gross profit | 1,565,655 | 2,564,240 | 2,828,399 | 2,943,370 | 2,979,192 | 2,754,298 | 2,771,712 | 2,903,785 | 9,901,664 | 11,408,987 | 11,085,391 |
Operating expenses | 2,097,235 | 2,503,966 | 2,275,906 | 2,275,052 | 2,258,662 | 2,224,713 | 2,319,817 | 2,275,645 | 9,152,159 | 9,078,837 | 8,771,335 |
Operating income | (531,580) | 60,274 | 552,493 | 668,318 | 720,530 | 529,585 | 451,895 | 628,140 | 749,505 | 2,330,150 | 2,314,056 |
Interest expense | 164,269 | 83,854 | 76,762 | 83,335 | 89,780 | 94,514 | 87,113 | 89,016 | 408,220 | 360,423 | 395,483 |
Other expense (income), net | 40,396 | 5,200 | (807) | 3,112 | (51,558) | 4,120 | 10,197 | 1,132 | 47,901 | (36,109) | (37,651) |
Earnings before income taxes | (736,245) | (28,780) | 476,538 | 581,871 | 682,308 | 430,951 | 354,585 | 537,992 | 293,384 | 2,005,836 | 1,956,224 |
Income taxes | (117,826) | (25,483) | 93,128 | 128,090 | 146,542 | (9,132) | 87,205 | 106,950 | 77,909 | 331,565 | 525,458 |
Net earnings | $ (618,419) | $ (3,297) | $ 383,410 | $ 453,781 | $ 535,766 | $ 440,083 | $ 267,380 | $ 431,042 | $ 215,475 | $ 1,674,271 | $ 1,430,766 |
Per Share: | |||||||||||
Basic net earnings (in dollars per share) | $ (1.22) | $ (0.01) | $ 0.75 | $ 0.88 | $ 1.04 | $ 0.86 | $ 0.52 | $ 0.83 | $ 0.42 | $ 3.24 | $ 2.74 |
Diluted net earnings (in dollars per share) | (1.22) | (0.01) | 0.74 | 0.87 | 1.03 | 0.85 | 0.51 | 0.81 | 0.42 | 3.20 | 2.70 |
Dividends declared (in dollars per share) | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.36 | $ 1.74 | $ 1.53 | $ 1.41 |
Excess bad debt expense | $ 323,400 | $ 323,400 | |||||||||
Goodwill impairment | 203,200 | $ 203,200 | $ 203,206 | $ 0 | $ 0 | ||||||
Impairment of assets held for sale | $ 55,900 | 55,942 | 0 | 0 | |||||||
Gain on sale of business | $ 66,300 | $ 0 | $ 66,309 | $ 0 | |||||||
Foreign tax credits | $ 95,100 |