COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jul. 01, 2017

Defined benefit plans funded status table

The caption “U.S. Pension Benefits” in the tables below includes both the Retirement Plan and the SERP.



	U.S. Pension Benefits						International Pension Benefits
	Jul. 1, 2017			Jul. 2, 2016			Jul. 1, 2017
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	4,284,776		$	3,679,127		$	400,028
Service cost	14,287			11,815			2,880
Interest cost	171,282			174,602			9,951
Amendments	925			—			(110		)
Curtailments	—			—			(611		)
Actuarial (gain) loss, net	(86,680		)	517,070			26,528
Total disbursements ⁽¹⁾	(160,359		)	(97,838		)	(13,879		)
Exchange rate changes	—			—			(4,052		)
Benefit obligation at end of year	4,224,231			4,284,776			420,735
Change in plan assets:
Fair value of plan assets at beginning of year	3,115,040			3,003,128			271,821
Actual return on plan assets	333,890			52,268			1,938
Employer contribution ⁽¹⁾	53,091			157,482			4,530
Total disbursements ⁽¹⁾	(160,359		)	(97,838		)	(13,879		)
Exchange rate changes	—			—			(5,037		)
Fair value of plan assets at end of year	3,341,662			3,115,040			259,373
Funded status at end of year	$	(882,569	)	$	(1,169,736	)	$	(161,362	)

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
	Jul. 1, 2017			Jul. 2, 2016			Jul. 1, 2017
	(In thousands)
Current accrued benefit liability (Accrued expenses)	$	(30,538	)	$	(29,480	)	$	(1,477	)
Non-current accrued benefit liability (Other long-term liabilities)	(852,031		)	(1,140,256		)	(159,886		)
Net amount recognized	$	(882,569	)	$	(1,169,736	)	$	(161,363	)

Defined benefit plans amounts recognized in accumulated other comprehensive loss (income) table

Accumulated other comprehensive loss (income) as of July 1, 2017 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	$	28,630	$	114		$	28,744
Actuarial losses (gains)	1,521,174		(35,935		)	1,485,239
Total	$	1,549,804	$	(35,821	)	$	1,513,983

Accumulated other comprehensive loss (income) as of July 2, 2016 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:



	U.S. Pension Benefits
	(In thousands)
Prior service cost	$	38,907
Actuarial losses (gains)	1,760,556
Total	$	1,799,463

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
	Jul. 1, 2017		Jul. 2, 2016		Jul. 1, 2017
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	4,213,318	$	4,272,547	$	413,552
Fair value of plan assets at end of year	3,341,662		3,115,040		259,373


⁽¹⁾	Information under Pension Benefits as of July 1, 2017 and July 2, 2016 includes both the 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:



	2017						2016			2015
	U.S. Pension Benefits			International Pension Benefits			U.S. Pension Benefits			U.S. Pension Benefits
	(In thousands)
Service cost	$	14,287		$	2,880		$	11,815		$	11,263
Interest cost	171,282			9,951			174,602			171,120
Expected return on plan assets	(222,699		)	(10,033		)	(216,888		)	(228,624		)
Amortization of prior service cost	11,202			(1		)	11,201			11,111
Amortization of actuarial loss	41,511			(38		)	22,186			19,871
Curtailment loss	—			(611		)	—			—
Net pension (benefits) costs	$	15,583		$	2,148		$	2,916		$	(15,259	)

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:



	2017						2016			2015
	U.S. Pension Benefits			International Pension Benefits			U.S. Pension Benefits			U.S. Pension Benefits
	(In thousands)
Amortization of prior service cost	$	11,202		$	(1	)	$	11,202		$	11,111
Amortization of actuarial loss	41,511			(38		)	22,186			19,871
Prior service cost arising in current year	(925		)	110			—			(914		)
Effect of exchange rates on amounts in AOCI	—			(1,269		)	—			—
Actuarial (loss) gain arising in current year	197,871			(34,623		)	(681,691		)	(62,270		)
Net pension costs	$	249,659		$	(35,821	)	$	(648,303	)	$	(32,202	)

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 July 1, 2017 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2018 are:



	U.S. Pension Benefits		International Pension Benefits			Total
	(In thousands)
Amortization of prior service cost	$	9,460	$	(10	)	$	9,450
Amortization of actuarial losses (gains)	35,696		2			35,698
Total	$	45,156	$	(8	)	$	45,148

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)
2018	$	127,700	$	9,169
2019	137,971		10,374
2020	147,995		11,045
2021	159,056		12,671
2022	170,078		12,965
Subsequent five years	1,005,292		84,500

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:



	Jul. 1, 2017		Jul. 2, 2016
Discount rate — U.S. Retirement Plan	4.19	%	4.07	%
Discount rate — SERP	4.08		3.91
Discount rate — U.K. Retirement Plan	2.60		N/A
Rate of compensation increase — U.S. Retirement Plan	2.62		2.62
Rate of compensation increase — U.K. Retirement Plan	N/A		N/A

Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were:



	2017		2016		2015
Discount rate — U.S. Retirement Plan	4.07	%	4.84	%	4.74	%
Discount rate — SERP	3.91		4.63		4.59
Discount rate — U.K. Retirement Plan	2.80		N/A		N/A
Expected rate of return — U.S. Retirement Plan	7.25		7.25		7.75
Expected rate of return — U.K. Retirement Plan	4.15		N/A		N/A
Rate of compensation increase — U.S. Retirement Plan	2.62		3.89		3.89
Rate of compensation increase — U.K. Retirement Plan	N/A		N/A		N/A

Defined Benefit Plan Disclosure [Line Items]

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 July 1, 2017:



	Assets Measured at Fair Value as of Jul. 1, 2017
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁴⁾		Total
	(In thousands)
Cash and cash equivalents	$	2,989	$	37,346	$	—	$	—	$	40,335
U.S. equity ⁽¹⁾	331,946		—		—		577,626		909,572
International equity ⁽¹⁾	185,502		—		—		537,317		722,819
Long duration fixed income:
Corporate bonds	—		628,033		—		—		628,033
U.S. government and agency securities	—		250,940		—		—		250,940
Other ⁽²⁾	—		6,220		—		—		6,220
High yield and emerging markets fixed income ⁽³⁾	—		—		—		226,358		226,358
Alternative investment funds:
Hedge fund of funds ⁽⁵⁾	—		—		—		336,812		336,812
Real estate funds ⁽⁶⁾	—		—		—		145,208		145,208
Private equity funds ⁽⁷⁾	—		—		—		75,365		75,365
Total investments at fair value	$	520,437	$	922,539	$	—	$	1,898,686	$	3,341,662


⁽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 July 1, 2017, and there were no redemption restrictions as of July 1, 2017. Investments in the funds may be redeemed once per day.


⁽²⁾	Include foreign government and state and municipal debt securities.


⁽³⁾	There was no unfunded commitments as of July 1, 2017, and there were no redemption restrictions as of July 1, 2017. The investment may be redeemed once per day. The daily maximum withdrawal limitation is the greater of $2.0 million or 5% of the asset value.


⁽⁴⁾	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.


⁽⁵⁾	There was no unfunded commitments as of July 1, 2017, and there were no redemption restrictions as of July 1, 2017. The investment may be redeemed once per quarter.


⁽⁶⁾	For investments in the funds listed in this category, total unfunded commitment as of July 1, 2017 was $10.0 million. Approximately 15% of the investments cannot be redeemed but the fund will make distributions through liquidation. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed once per day or once per quarter.


⁽⁷⁾	Total unfunded commitment as of July 1, 2017 was $30.7 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 2017 to 2031.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of July 1, 2017:



	Assets Measured at Fair Value as of Jul. 1, 2017
	Level 1		Level 2		Level 3		Measured at NAV ⁽³⁾		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	26,992	$	—	$	—	$	—	$	26,992
U.K. government securities	—		9,327		—		—		9,327
Derivatives, net ⁽¹⁾	—		20,900		—		—		20,900
Pooled funds	—		10,296		—		—		10,296
Investment funds:
Common contractual fund ⁽²⁾	—		—		—		191,508		191,508
Total investments at fair value	$	26,992	$	40,523	$	—	$	191,508	$	259,023


⁽¹⁾	Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $47.4 million; the fair value of liability positions totaled $26.5 million.


⁽²⁾	There were $9.3 million of unfunded commitments as of July 1, 2017, and there were no redemption restrictions as of July 1, 2017. 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

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of July 2, 2016:



	Assets Measured at Fair Value as of Jul. 2, 2016
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁴⁾		Total
	(In thousands)
Cash and cash equivalents	$	103,974	$	—	$	—	$	—	$	103,974
U.S. equity ⁽¹⁾	451,826		—		—		270,501		722,327
International equity⁽¹⁾	174,936		—		—		547,719		722,655
Long duration fixed income:
Corporate bonds	—		631,927		—		—		631,927
U.S. government and agency securities	—		179,974		—		—		179,974
Other ⁽²⁾	—		4,246		—		—		4,246
High yield and emerging markets fixed income ⁽³⁾	—		—		—		214,735		214,735
Alternative investment funds:
Hedge fund of funds ⁽⁵⁾	—		—		—		309,208		309,208
Real estate funds ⁽⁶⁾	793		—		—		162,108		162,901
Private equity funds ⁽⁷⁾	—		—		—		63,093		63,093
Total investments at fair value	$	731,529	$	816,147	$	—	$	1,567,364	$	3,115,040


⁽¹⁾	Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There were no unfunded commitments as of July 2, 2016, and there were no redemption restrictions as of July 2, 2016.


⁽²⁾	Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $0.3 million; the fair value of liability positions totaled $0.3 million.


⁽³⁾	There was no unfunded commitments as of July 2, 2016, and there were no redemption restrictions as of July 2, 2016. The investment may be redeemed once per day. The daily maximum withdrawal limitation is the greater of $2.0 million or 5% of the asset value.


⁽⁴⁾	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.


⁽⁵⁾	There was no unfunded commitments as of July 2, 2016, and there were no redemption restrictions as of July 2, 2016. The investment may be redeemed once per quarter.


⁽⁶⁾	For investments in the funds listed in this category, total unfunded commitment as of July 2, 2016 was $10 million. Approximately 20% of the investments cannot be redeemed but the fund will make distributions through liquidation. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed once per day or once per quarter.


⁽⁷⁾	Total unfunded commitments as of July 2, 2016 was $39.0 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 2017 to 2031.

US and International Plans

Defined Benefit Plan Disclosure [Line Items]

Defined benefit plans target and actual asset allocation table

The U.S. Retirement Plan’s target and actual investment allocation as of July 1, 2017 is as follows:



	U.S. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
U.S. equity	24	%	27	%
International equity	24		22
Long duration fixed income	27		26
High yield & emerging markets	7		7
Alternative investments	18		18
			100	%

International Plan

Defined Benefit Plan Disclosure [Line Items]

Defined benefit plans target and actual asset allocation table

The company’s target and actual investment allocation as of July 1, 2017 is as follows:



	International Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Common contractual fund	75	%	74	%
Liability hedging assets	25		26
			100	%