PLANT AND EQUIPMENT

12 Months Ended

Jun. 30, 2018

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. 30, 2018			Jul. 1, 2017			Estimated Useful Lives
	(In thousands)
Plant and equipment at cost:
Land	$	495,909		$	477,577
Buildings and improvements	4,268,687			4,072,339			10-30 years
Fleet and equipment	3,808,133			3,595,095			3-10 years
Computer hardware and software	1,628,121			1,554,122			3-7 years
Total plant and equipment at cost	10,200,850			9,699,133
Accumulated depreciation	(5,679,190		)	(5,321,831		)
Total plant and equipment, net	$	4,521,660		$	4,377,302

Depreciation expense, including amortization of capital leases, was $614.8 million in 2018, $765.4 million in 2017 and $608.7 million in 2016.

In fiscal 2016, Sysco announced its revised business technology strategy focused on improving the customer experience. In refocusing its technology approach, Sysco created plans to modernize and add new capability and functionality to its existing SUS Enterprise Resource Planning (ERP) system. In connection with this strategy, Sysco created plans to remove the SAP ERP platform then used by 12 of its operating companies by the end of fiscal 2017. Sysco concluded that the projects under development would not be completed and expensed the $31.6 million in construction in progress in fiscal 2016 within operating expense in the consolidated results of operations. The company tested the internal use software for the SAP ERP platform for impairment on an undiscounted cash flow basis and concluded that those cash flows would be sufficient to recover the full asset value; however, Sysco shortened the remaining life of the internal use assets to fiscal 2017, concurrent with the expected time frame to fully migrate the 12 operating companies to the SUS ERP system, which was completed as of July 1, 2017. For fiscal years 2017 and 2016, Sysco recognized an additional $111.3 million and $41.9 million, respectively, in accelerated depreciation expense as a result of shortening the useful lives of these assets.