(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS employer identification number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated Filer | ☐ | |||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
(Do not check if a smaller reporting company) | Emerging growth company |
PART I – FINANCIAL INFORMATION | Page No. | |||||||
PART II – OTHER INFORMATION | ||||||||
Apr. 2, 2022 | Jul. 3, 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowances of $126,580 and $117,695 | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Income tax receivable | |||||||||||
Total current assets | |||||||||||
Plant and equipment at cost, less accumulated depreciation | |||||||||||
Other long-term assets | |||||||||||
Goodwill | |||||||||||
Intangibles, less amortization | |||||||||||
Deferred income taxes | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Other assets | |||||||||||
Total other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Notes payable | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Accrued income taxes | |||||||||||
Current operating lease liabilities | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Noncontrolling interest | |||||||||||
Shareholders’ equity | |||||||||||
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none | |||||||||||
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock at cost, 256,507,982 and 253,342,595 shares | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
Earnings before income taxes | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Net earnings: | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | |||||||||||||||||||||||
Average shares outstanding | |||||||||||||||||||||||
Diluted shares outstanding |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Items presented net of tax: | |||||||||||||||||||||||
Amortization of cash flow hedges | |||||||||||||||||||||||
Change in net investment hedges | ( | ||||||||||||||||||||||
Change in cash flow hedges | |||||||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Amortization of actuarial gain | |||||||||||||||||||||||
Change in marketable securities | ( | ( | ( | ( | |||||||||||||||||||
Total other comprehensive (loss) income | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.47 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 2, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.45 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 27, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of July 3, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.41 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Increase in ownership interest in subsidiaries | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of April 2, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 27, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.35 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 27, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
39-Week Period Ended | |||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to cash provided by operating activities: | |||||||||||
Share-based compensation expense | |||||||||||
Depreciation and amortization | |||||||||||
Operating lease asset amortization | |||||||||||
Amortization of debt issuance and other debt-related costs | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Provision for losses on receivables | ( | ||||||||||
Loss on extinguishment of debt | |||||||||||
Loss on sale of business | |||||||||||
Other non-cash items | ( | ( | |||||||||
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | |||||||||||
Increase in receivables | ( | ( | |||||||||
Increase in inventories | ( | ( | |||||||||
Increase in prepaid expenses and other current assets | ( | ( | |||||||||
Increase in accounts payable | |||||||||||
Increase in accrued expenses | |||||||||||
Decrease in operating lease liabilities | ( | ( | |||||||||
(Decrease) increase in accrued income taxes | ( | ||||||||||
(Increase) decrease in other assets | ( | ||||||||||
(Decrease) increase in other long-term liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Additions to plant and equipment | ( | ( | |||||||||
Proceeds from sales of plant and equipment | |||||||||||
Acquisition of businesses, net of cash acquired | ( | ||||||||||
Purchase of marketable securities | ( | ( | |||||||||
Proceeds from sales of marketable securities | |||||||||||
Other investing activities | |||||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Bank and commercial paper borrowings, net | ( | ||||||||||
Other debt borrowings including senior notes | |||||||||||
Other debt repayments | ( | ( | |||||||||
Redemption premiums and repayments of senior notes | ( | ||||||||||
Debt issuance costs | ( | ||||||||||
Cash received from termination of interest rate swap agreements | |||||||||||
Proceeds from stock option exercises | |||||||||||
Stock repurchases | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Other financing activities | ( | ( | |||||||||
Net cash used for financing activities | ( | ( | |||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | ( | ||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refunds |
Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||
(In thousands) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (1) | |||||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ |
(1) | Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in each consolidated balance sheet. |
13-Week Period Ended Apr. 2, 2022 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
13-Week Period Ended Mar. 27, 2021 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
39-Week Period Ended Apr. 2, 2022 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares. |
39-Week Period Ended Mar. 27, 2021 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
(1) | Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our former Sysco Labs business, and other janitorial products, medical supplies and smallwares. |
Preliminary Purchase Price Allocation | |||||
(In millions) | |||||
Accounts receivable, net | $ | ||||
Inventories | |||||
Plant and equipment | |||||
Other assets | |||||
Goodwill and other intangibles (1) | |||||
Total assets | |||||
Accounts payable | ( | ||||
Accrued expenses | ( | ||||
Deferred tax liabilities | ( | ||||
Other liabilities | ( | ||||
Total consideration | $ |
Assets Measured at Fair Value as of Apr. 2, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Other assets (1) | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Assets Measured at Fair Value as of Jul. 3, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Other assets (1) | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Government bonds | ( | ||||||||||||||||||||||||||||||||||
Total marketable securities | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Jul. 3, 2021 | |||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Government bonds | |||||||||||||||||||||||||||||||||||
Total marketable securities | $ | $ | $ | ( | $ | $ | $ |
Apr. 2, 2022 | |||||
(In thousands) | |||||
Due in one year or less | $ | ||||
Due after one year through five years | |||||
Due after five years through ten years | |||||
Total | $ |
Maturity Date of the Hedging Instrument | Currency / Unit of Measure | Notional Value | ||||||||||||
(In millions) | ||||||||||||||
Hedging of interest rate risk | ||||||||||||||
June 2023 | Euro | |||||||||||||
Hedging of foreign currency risk | ||||||||||||||
Various (April 2022 to August 2022) | Swedish Krona | |||||||||||||
Various (April 2022 to December 2022) | British Pound Sterling | |||||||||||||
June 2023 | Euro | |||||||||||||
Hedging of fuel risk | ||||||||||||||
Various (April 2022 to July 2023) | Gallons |
Derivative Fair Value | |||||||||||||||||
Balance Sheet location | Apr. 2, 2022 | Jul. 3, 2021 | |||||||||||||||
(In thousands) | |||||||||||||||||
Fair Value Hedges: | |||||||||||||||||
Interest rate swaps | Other assets | $ | $ | ||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Fuel swaps | Other current assets | $ | $ | ||||||||||||||
Foreign currency forwards | Other current assets | ||||||||||||||||
Fuel swaps | Other assets | ||||||||||||||||
Fuel swaps | Other current liabilities | ||||||||||||||||
Foreign currency forwards | Other current liabilities | ||||||||||||||||
Fuel swaps | Other long-term liabilities | ||||||||||||||||
13-Week Period Ended | 39-Week Period Ended | |||||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
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 | $ | $ | $ | $ | ||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships: | ||||||||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||||||||
Hedged items | $ | $ | $ | $ | ( | |||||||||||||||||||||
Derivatives designated as hedging instruments | ( | ( | ( | ( | ||||||||||||||||||||||
13-Week Period Ended | 39-Week Period Ended | |||||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Interest expense | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Decrease in fair value of debt | ( | ( | ( | ( | ||||||||||||||||||||||
Hedged items | $ | $ | $ | $ | ( |
13-Week Period Ended Apr. 2, 2022 | |||||||||||||||||
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 | $ | Operating expense | $ | ||||||||||||||
Foreign currency contracts | ( | Cost of sales / Other income | |||||||||||||||
Total | $ | $ | |||||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | $ | N/A | $ | ||||||||||||||
Total | $ | $ | |||||||||||||||
13-Week Period Ended Mar. 27, 2021 | |||||||||||||||||
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 | $ | Operating expense | $ | ( | |||||||||||||
Foreign currency contracts | ( | Cost of sales / Other income | |||||||||||||||
Total | $ | $ | ( | ||||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | $ | N/A | $ | ||||||||||||||
Total | $ | $ |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||
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 | $ | Operating expense | $ | ||||||||||||||
Foreign currency contracts | ( | Cost of sales / Other income | |||||||||||||||
Total | $ | $ | |||||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | $ | N/A | $ | ||||||||||||||
Total | $ | $ | |||||||||||||||
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||
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 | $ | ( | Operating expense | $ | ( | ||||||||||||
Foreign currency contracts | Cost of sales / Other income | ||||||||||||||||
Total | $ | ( | $ | ( | |||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign currency contracts | $ | N/A | $ | ||||||||||||||
Foreign denominated debt | N/A | ||||||||||||||||
Total | $ | $ |
Apr. 2, 2022 | |||||||||||
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 | $ | ( | $ | ( |
Jul. 3, 2021 | |||||||||||
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 | $ | ( | $ | ( |
Maturity Date | Par Value (in millions) | Coupon Rate | Pricing (percentage of par) | ||||||||||||||
December 14, 2031 (the 2031 Notes) | $ | % | % | ||||||||||||||
December 14, 2051 (the 2051 Notes) |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||||||||||||
(In thousands, except for share and per share data) | (In thousands, except for share and per share data) | ||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net earnings | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average basic shares outstanding | |||||||||||||||||||||||
Dilutive effect of share-based awards | |||||||||||||||||||||||
Weighted-average diluted shares outstanding | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ |
13-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of prior service cost | Other expense, net | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ( | ( | ||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ( | ( | ( | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedge | Operating expenses (2) | ||||||||||||||||||||||
Change in net investment hedge | N/A | ||||||||||||||||||||||
Total other comprehensive income before reclassification adjustments | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | $ | ( |
13-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of prior service cost | Other expense, net | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ( | ( | ( | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedge | Operating expenses (2) | ||||||||||||||||||||||
Change in net investment hedges | N/A | ||||||||||||||||||||||
Total other comprehensive income before reclassification adjustments | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive income | $ | $ | $ |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of prior service cost | Other expense, net | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ( | ( | ||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ( | ( | ( | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedges | Operating expenses (2) | ||||||||||||||||||||||
Change in net investment hedges | N/A | ||||||||||||||||||||||
Total other comprehensive income before reclassification adjustments | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | $ | ( |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||
Location of Expense (Income) Recognized in Net Earnings | Before Tax Amount | Tax | Net of Tax Amount | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Pension and other postretirement benefit plans: | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of prior service cost | Other expense, net | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ( | ( | ( | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedge (3) | Operating expenses (2) | ||||||||||||||||||||||
Change in net investment hedges | N/A | ( | ( | ( | |||||||||||||||||||
Total other comprehensive income before reclassification adjustments | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive (loss) income | $ | $ | $ |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities, net of tax | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of Jul. 3, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Equity adjustment from foreign currency translation | — | ( | — | — | ( | ||||||||||||||||||||||||
Amortization of cash flow hedges | — | — | — | ||||||||||||||||||||||||||
Change in net investment hedges | — | — | — | ||||||||||||||||||||||||||
Change in cash flow hedge | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | — | — | — | ||||||||||||||||||||||||||
Change in marketable securities | — | — | — | ( | ( | ||||||||||||||||||||||||
Balance as of Apr. 2, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities, net of tax | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of Jun. 27, 2020 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | ||||||||||||||||||||||||||
Amortization of cash flow hedges | — | — | — | ||||||||||||||||||||||||||
Change in net investment hedges | — | — | ( | — | ( | ||||||||||||||||||||||||
Change in cash flow hedge | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | — | — | — | ||||||||||||||||||||||||||
Change in marketable securities | — | — | — | ( | ( | ||||||||||||||||||||||||
Balance as of Mar. 27, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||||||||||||
Sales: | (In thousands) | (In thousands) | |||||||||||||||||||||
U.S. Foodservice Operations | $ | $ | $ | $ | |||||||||||||||||||
International Foodservice Operations | |||||||||||||||||||||||
SYGMA | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||||||||||||
Operating income (loss): | (In thousands) | (In thousands) | |||||||||||||||||||||
U.S. Foodservice Operations | $ | $ | $ | $ | |||||||||||||||||||
International Foodservice Operations | ( | ( | |||||||||||||||||||||
SYGMA | ( | ||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||
Total segments | |||||||||||||||||||||||
Global Support Center | ( | ( | ( | ( | |||||||||||||||||||
Total operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other (income) expense, net | ( | ( | ( | ( | |||||||||||||||||||
Earnings before income taxes | $ | $ | $ | $ |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Apr. 2, 2022 | Mar. 27, 2021 | Apr. 2, 2022 | Mar. 27, 2021 | ||||||||||||||||||||
Sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 82.2 | 82.0 | 82.1 | 81.7 | |||||||||||||||||||
Gross profit | 17.8 | 18.0 | 17.9 | 18.3 | |||||||||||||||||||
Operating expenses | 14.9 | 16.0 | 14.7 | 15.8 | |||||||||||||||||||
Operating income | 2.9 | 2.0 | 3.2 | 2.5 | |||||||||||||||||||
Interest expense | 0.7 | 1.2 | 1.0 | 1.2 | |||||||||||||||||||
Other (income) expense, net | (0.1) | (0.1) | — | — | |||||||||||||||||||
Earnings before income taxes | 2.3 | 0.9 | 2.2 | 1.3 | |||||||||||||||||||
Income taxes | 0.5 | 0.1 | 0.5 | 0.2 | |||||||||||||||||||
Net earnings | 1.8 | % | 0.8 | % | 1.7 | % | 1.1 | % |
13-Week Period Ended | 39-Week Period Ended | ||||||||||
Apr. 2, 2022 | Apr. 2, 2022 | ||||||||||
Sales | 42.9 | % | 41.3 | % | |||||||
Cost of sales | 43.2 | 42.1 | |||||||||
Gross profit | 42.0 | 37.8 | |||||||||
Operating expenses | 33.4 | 31.0 | |||||||||
Operating income | 110.1 | 81.2 | |||||||||
Interest expense | (14.9) | 12.8 | |||||||||
Other (income) expense, net (1) (2) | 8.4 | 95.9 | |||||||||
Earnings before income taxes | 274.8 | 149.6 | |||||||||
Income taxes | 490.0 | 268.0 | |||||||||
Net earnings | 241.1 | % | 127.5 | % | |||||||
Basic earnings per share | 252.9 | % | 127.4 | % | |||||||
Diluted earnings per share | 247.1 | 126.0 | |||||||||
Average shares outstanding | (0.5) | 0.1 | |||||||||
Diluted shares outstanding | (0.5) | 0.3 |
13-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 12,006,163 | $ | 2,834,089 | $ | 1,794,837 | $ | 267,050 | $ | — | $ | 16,902,139 | |||||||||||||||||||||||
Sales increase (decrease) | 43.6 | % | 64.5 | % | 13.5 | % | 66.4 | % | 42.9 | % | |||||||||||||||||||||||||
Percentage of total | 71.0 | % | 16.8 | % | 10.6 | % | 1.5 | % | 99.9 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 746,467 | $ | 7,760 | $ | 4,362 | $ | (3,972) | $ | (258,888) | $ | 495,729 | |||||||||||||||||||||||
Operating income (loss) increase (decrease) | 36.8 | % | NM | (66.3) | % | NM | 25.1 | % | NM | ||||||||||||||||||||||||||
Percentage of total segments | 98.9 | % | 1.0 | % | 0.6 | % | (0.5) | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) as a percentage of sales | 6.2 | % | 0.3 | % | 0.2 | % | (1.5) | % | 2.9 | % |
13-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 8,360,241 | $ | 1,723,126 | $ | 1,580,695 | $ | 160,527 | $ | — | $ | 11,824,589 | |||||||||||||||||||||||
Percentage of total | 70.7 | % | 14.6 | % | 13.4 | % | 1.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 545,502 | $ | (121,487) | $ | 12,937 | $ | 5,884 | $ | (206,919) | $ | 235,917 | |||||||||||||||||||||||
Percentage of total segments | 123.2 | % | (27.4) | % | 2.9 | % | 1.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 6.5 | % | (7.1) | % | 0.8 | % | 3.7 | % | 2.0 | % |
39-Week Period Ended Apr. 2, 2022 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 35,107,281 | $ | 8,535,608 | $ | 5,270,193 | $ | 765,806 | $ | — | $ | 49,678,888 | |||||||||||||||||||||||
Sales increase (decrease) | 45.0 | % | 45.8 | % | 13.9 | % | 61.2 | % | 41.3 | % | |||||||||||||||||||||||||
Percentage of total | 70.7 | % | 17.2 | % | 10.6 | % | 1.5 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 2,220,812 | $ | 55,181 | $ | (4,814) | $ | 2,667 | $ | (701,526) | $ | 1,572,320 | |||||||||||||||||||||||
Operating income increase (decrease) | 37.2 | % | 127.3 | % | (113.4) | % | (45.1) | % | 81.2 | % | |||||||||||||||||||||||||
Percentage of total segments | 97.7 | % | 2.4 | % | (0.2) | % | 0.1 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 6.3 | % | 0.6 | % | (0.1) | % | 0.3 | % | 3.2 | % |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Global Support Center | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 24,205,917 | $ | 5,854,608 | $ | 4,625,244 | $ | 475,181 | $ | — | $ | 35,160,950 | |||||||||||||||||||||||
Percentage of total | 68.8 | % | 16.7 | % | 13.2 | % | 1.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 1,619,162 | $ | (201,973) | $ | 35,957 | $ | 4,861 | $ | (590,449) | $ | 867,558 | |||||||||||||||||||||||
Percentage of total segments | 111.1 | % | (13.9) | % | 2.5 | % | 0.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 6.7 | % | (3.4) | % | 0.8 | % | 1.0 | % | 2.5 | % |
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 12,006,163 | $ | 8,360,241 | $ | 3,645,922 | 43.6 | % | |||||||||||||||
Gross profit | 2,270,045 | 1,634,837 | 635,208 | 38.9 | |||||||||||||||||||
Operating expenses | 1,523,578 | 1,089,335 | 434,243 | 39.9 | |||||||||||||||||||
Operating income | $ | 746,467 | $ | 545,502 | $ | 200,965 | 36.8 | % | |||||||||||||||
Gross profit | $ | 2,270,045 | $ | 1,634,837 | $ | 635,208 | 38.9 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 1,520,676 | 1,109,719 | 410,957 | 37.0 | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 749,369 | $ | 525,118 | $ | 224,251 | 42.7 | % | |||||||||||||||
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 35,107,281 | $ | 24,205,917 | $ | 10,901,364 | 45.0 | % | |||||||||||||||
Gross profit | 6,594,477 | 4,793,866 | 1,800,611 | 37.6 | |||||||||||||||||||
Operating expenses | 4,373,665 | 3,174,704 | 1,198,961 | 37.8 | |||||||||||||||||||
Operating income | $ | 2,220,812 | $ | 1,619,162 | $ | 601,650 | 37.2 | % | |||||||||||||||
Gross profit | $ | 6,594,477 | $ | 4,793,866 | $ | 1,800,611 | 37.6 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 4,364,629 | 3,293,919 | 1,070,710 | 32.5 | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 2,229,848 | $ | 1,499,947 | $ | 729,901 | 48.7 | % |
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||
13-Week Period | 39-Week Period | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
Cause of change | Percentage | Dollars | Percentage | Dollars | |||||||||||||||||||
Case volume | 20.0 | % | $ | 1,668.1 | 23.0 | % | $ | 5,568.0 | |||||||||||||||
Inflation (1) | 16.7 | 1,392.0 | 15.3 | 3,692.1 | |||||||||||||||||||
Acquisitions (2) | 4.5 | 373.6 | 3.4 | 832.9 | |||||||||||||||||||
Other (3) | 2.4 | 212.2 | 3.3 | 808.4 | |||||||||||||||||||
Total change in sales | 43.6 | % | $ | 3,645.9 | 45.0 | % | $ | 10,901.4 | |||||||||||||||
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 2,834,089 | $ | 1,723,126 | $ | 1,110,963 | 64.5 | % | |||||||||||||||
Gross profit | 570,241 | 325,200 | 245,041 | 75.4 | |||||||||||||||||||
Operating expenses | 562,481 | 446,687 | 115,794 | 25.9 | |||||||||||||||||||
Operating income (loss) | $ | 7,760 | $ | (121,487) | $ | 129,247 | 106.4 | % | |||||||||||||||
Gross profit | $ | 570,241 | $ | 325,200 | $ | 245,041 | 75.4 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 535,617 | 417,575 | 118,042 | 28.3 | |||||||||||||||||||
Adjusted operating income (loss) (Non-GAAP) | $ | 34,624 | $ | (92,375) | $ | 126,999 | 137.5 | % | |||||||||||||||
Sales on a constant currency basis (Non-GAAP) | $ | 2,917,767 | $ | 1,723,126 | $ | 1,194,641 | 69.3 | % | |||||||||||||||
Gross profit on a constant currency basis (Non-GAAP) | 590,595 | 325,200 | 265,395 | 81.6 | |||||||||||||||||||
Adjusted operating expenses on a constant currency basis (Non-GAAP) | 555,721 | 417,575 | 138,146 | 33.1 | |||||||||||||||||||
Adjusted operating income (loss) (Non-GAAP) | $ | 34,874 | $ | (92,375) | $ | 127,249 | 137.8 | % | |||||||||||||||
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 8,535,608 | $ | 5,854,608 | $ | 2,681,000 | 45.8 | % | |||||||||||||||
Gross profit | 1,725,306 | 1,149,438 | 575,868 | 50.1 | |||||||||||||||||||
Operating expenses | 1,670,125 | 1,351,411 | 318,714 | 23.6 | |||||||||||||||||||
Operating (loss) income | $ | 55,181 | $ | (201,973) | $ | 257,154 | 127.3 | % | |||||||||||||||
Gross profit | $ | 1,725,306 | $ | 1,149,438 | $ | 575,868 | 50.1 | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 1,586,914 | 1,278,247 | 308,667 | 24.1 | |||||||||||||||||||
Adjusted operating (loss) income (Non-GAAP) | $ | 138,392 | $ | (128,809) | $ | 267,201 | 207.4 | % | |||||||||||||||
Sales on a constant currency basis (Non-GAAP) | $ | 8,463,829 | $ | 5,854,608 | $ | 2,609,221 | 44.6 | % | |||||||||||||||
Gross profit on a constant currency basis (Non-GAAP) | 1,718,893 | 1,149,438 | 569,455 | 49.5 | |||||||||||||||||||
Adjusted operating expenses on a constant currency basis (Non-GAAP) | 1,582,750 | 1,278,247 | 304,503 | 23.8 | |||||||||||||||||||
Adjusted operating (loss) income on a constant currency basis (Non-GAAP) | $ | 136,143 | $ | (128,809) | $ | 264,952 | 205.7 | % |
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||
13-Week Period | 39-Week Period | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
Cause of change | Percentage | Dollars | Percentage | Dollars | |||||||||||||||||||
Inflation | 7.9 | % | $ | 136.1 | 7.5 | % | $ | 440.0 | |||||||||||||||
Foreign currency | (4.9) | (83.8) | 1.3 | 74.0 | |||||||||||||||||||
Other (1) | 61.5 | 1,058.7 | 37.0 | 2,167.0 | |||||||||||||||||||
Total change in sales | 64.5 | % | $ | 1,111.0 | 45.8 | % | $ | 2,681.0 | |||||||||||||||
Our discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove the impact of restructuring and transformational project costs consisting of: (1) restructuring charges, (2) expenses associated with our various transformation initiatives and (3) facility closure and severance charges; acquisition-related costs consisting of: (1) intangible amortization expense and (2) acquisition costs and due diligence costs related to our acquisitions; and the reduction of bad debt expense previously recognized in fiscal 2020 due to the impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances. Our results for fiscal 2022 were also impacted by: (1) a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory, (2) debt extinguishment costs and (3) the increase in reserves for uncertain tax positions. Our results for the first 39 weeks of fiscal 2021 were also impacted by losses on the sale of businesses. | ||
The results of our foreign operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our total Sysco and our International Foodservice Operations results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. | ||
Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove these Certain Items and presenting its International Foodservice Operations results on a constant currency basis, provides an important perspective with respect to our underlying business trends and results and provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis. | ||
Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2022 and fiscal 2021. | ||
Set forth below is a reconciliation of sales, operating expenses, operating income, other (income) expense, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not add up to the total presented due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. |
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
Sales (GAAP) | $ | 16,902,139 | $ | 11,824,589 | $ | 5,077,550 | 42.9 | % | |||||||||||||||
Impact of currency fluctuations (1) | 83,760 | — | 83,760 | 0.7 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 16,985,899 | $ | 11,824,589 | $ | 5,161,310 | 43.6 | % | |||||||||||||||
Cost of sales (GAAP) | $ | 13,888,745 | $ | 9,701,921 | $ | 4,186,824 | 43.2 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | (29,550) | — | (29,550) | (0.3) | |||||||||||||||||||
Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 13,859,195 | $ | 9,701,921 | $ | 4,157,274 | 42.9 | % | |||||||||||||||
Gross profit (GAAP) | $ | 3,013,394 | $ | 2,122,668 | $ | 890,726 | 42.0 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 29,550 | — | 29,550 | 1.4 | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items (Non-GAAP) | 3,042,944 | 2,122,668 | 920,276 | 43.4 | |||||||||||||||||||
Impact of currency fluctuations (1) | 20,426 | — | 20,426 | 0.9 | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 3,063,370 | $ | 2,122,668 | $ | 940,702 | 44.3 | % | |||||||||||||||
Gross margin (GAAP) | 17.83 | % | 17.95 | % | -12 bps | ||||||||||||||||||
Impact of inventory valuation adjustment (2) | 0.17 | — | 17 bps | ||||||||||||||||||||
Comparable Gross margin adjusted for Certain Items (Non-GAAP) | 18.00 | % | 17.95 | % | 5 bps | ||||||||||||||||||
Impact of currency fluctuations (1) | 0.03 | — | 3 bps | ||||||||||||||||||||
Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 18.03 | % | 17.95 | % | 8 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 2,517,665 | $ | 1,886,751 | $ | 630,914 | 33.4 | % | |||||||||||||||
Impact of restructuring and transformational project costs (3) | (19,171) | (34,953) | 15,782 | 45.2 | |||||||||||||||||||
Impact of acquisition-related costs (4) | (36,699) | (18,834) | (17,865) | (94.9) | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | 5,717 | 33,473 | (27,756) | (82.9) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 2,467,512 | 1,866,437 | 601,075 | 32.2 | |||||||||||||||||||
Impact of currency fluctuations (1) | 21,006 | — | 21,006 | 1.1 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 2,488,518 | $ | 1,866,437 | $ | 622,081 | 33.3 | % | |||||||||||||||
Operating income (GAAP) | $ | 495,729 | $ | 235,917 | $ | 259,812 | 110.1 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 19,171 | 34,953 | (15,782) | (45.2) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 36,699 | 18,834 | 17,865 | 94.9 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (5,717) | (33,473) | 27,756 | 82.9 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | 575,432 | 256,231 | 319,201 | 124.6 | |||||||||||||||||||
Impact of currency fluctuations (1) | (581) | — | (581) | (0.2) | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 574,851 | $ | 256,231 | $ | 318,620 | 124.4 | % | |||||||||||||||
Other income (GAAP) | $ | (13,777) | $ | (12,708) | $ | (1,069) | (8.4) | % | |||||||||||||||
Impact of loss on sale of business | — | (10,790) | 10,790 | NM | |||||||||||||||||||
Other income adjusted for Certain Items (Non-GAAP) | $ | (13,777) | $ | (23,498) | $ | 9,721 | 41.4 | % | |||||||||||||||
Net earnings (GAAP) | $ | 303,325 | $ | 88,927 | $ | 214,398 | 241.1 | % |
Impact of inventory valuation adjustment (2) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 19,171 | 34,953 | (15,782) | (45.2) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 36,699 | 18,834 | 17,865 | 94.9 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (5,717) | (33,473) | 27,756 | 82.9 | |||||||||||||||||||
Impact of loss on sale of business | — | 10,790 | (10,790) | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (6) | (7,449) | — | (7,449) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (6) | (5,579) | (10,300) | 4,721 | 45.8 | |||||||||||||||||||
Tax impact of acquisition-related costs (6) | (8,537) | (5,573) | (2,964) | (53.2) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (6) | 1,445 | 10,354 | (8,909) | (86.0) | |||||||||||||||||||
Tax impact of loss on sale of business (6) | — | 301 | (301) | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 362,908 | $ | 114,813 | $ | 248,095 | 216.1 | % | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 0.59 | $ | 0.17 | $ | 0.42 | 247.1 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 0.06 | — | 0.06 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 0.04 | 0.07 | (0.03) | (42.9) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 0.07 | 0.04 | 0.03 | 75.0 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (0.01) | (0.07) | 0.06 | 85.7 | |||||||||||||||||||
Impact of loss on sale of business | — | 0.02 | (0.02) | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (6) | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (6) | (0.01) | (0.02) | 0.01 | 50.0 | |||||||||||||||||||
Tax impact of acquisition-related costs (6) | (0.02) | (0.01) | (0.01) | (100.0) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (6) | — | 0.02 | (0.02) | NM | |||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (7) | $ | 0.71 | $ | 0.22 | $ | 0.49 | 222.7 | % | |||||||||||||||
(1) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. | ||||
(2) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(3) | Fiscal 2022 includes $7 million related to restructuring, severance, and facility closure charges and $12 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2021 includes $21 million related to restructuring charges and $14 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(4) | Fiscal 2022 includes $27 million of intangible amortization expense and $10 million in acquisition and due diligence costs. Fiscal 2021 represents intangible amortization expense. | ||||
(5) | Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(6) | The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(7) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 30, 2019 | Change in Dollars | % Change | ||||||||||||||||||||
Sales (GAAP) | $ | 16,902,139 | $ | 14,658,074 | $ | 2,244,065 | 15.3 | % | |||||||||||||||
Cost of sales (GAAP) | $ | 13,888,745 | $ | 11,903,776 | $ | 1,984,969 | 16.7 | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | (29,550) | — | (29,550) | (0.3) | |||||||||||||||||||
Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 13,859,195 | $ | 11,903,776 | $ | 1,955,419 | 16.4 | % | |||||||||||||||
Gross profit (GAAP) | $ | 3,013,394 | $ | 2,754,298 | $ | 259,096 | 9.4 | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 29,550 | — | 29,550 | 1.1 | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items (Non-GAAP) | $ | 3,042,944 | $ | 2,754,298 | $ | 288,646 | 10.5 | % | |||||||||||||||
Gross margin (GAAP) | 17.83 | % | 18.79 | % | -96 bps | ||||||||||||||||||
Impact of inventory valuation adjustment (1) | 0.17 | — | 17 bps | ||||||||||||||||||||
Comparable Gross margin adjusted for Certain Items (Non-GAAP) | 18.00 | % | 18.79 | % | -79 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 2,517,665 | $ | 2,224,713 | $ | 292,952 | 13.2 | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | (19,171) | (72,207) | 53,036 | 73.4 | |||||||||||||||||||
Impact of acquisition-related costs (3) | (36,699) | (18,398) | (18,301) | (99.5) | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | 5,717 | — | 5,717 | NM | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items (Non-GAAP) | $ | 2,467,512 | $ | 2,134,108 | $ | 333,404 | 15.6 | % | |||||||||||||||
Operating income (GAAP) | $ | 495,729 | $ | 529,585 | $ | (33,856) | (6.4) | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (2) | 19,171 | 72,207 | (53,036) | (73.4) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 36,699 | 18,398 | 18,301 | 99.5 | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (5,717) | — | (5,717) | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 575,432 | $ | 620,190 | $ | (44,758) | (7.2) | % | |||||||||||||||
Net earnings (GAAP) | $ | 303,325 | $ | 440,083 | $ | (136,758) | (31.1) | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (2) | 19,171 | 72,207 | (53,036) | (73.4) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 36,699 | 18,398 | 18,301 | 99.5 | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (5,717) | — | (5,717) | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (5) | (7,449) | — | (7,449) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (5) | (5,579) | (19,271) | 13,692 | 71.0 | |||||||||||||||||||
Tax impact of acquisition-related costs (5) | (8,537) | (4,899) | (3,638) | (74.3) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (5) | 1,445 | — | 1,445 | NM | |||||||||||||||||||
Impact of foreign tax credit benefit | — | (95,067) | 95,067 | NM | |||||||||||||||||||
Impact of US transition tax | — | (269) | 269 | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 362,908 | $ | 411,182 | $ | (48,274) | (11.7) | % | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 0.59 | $ | 0.85 | $ | (0.26) | (30.6) | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 0.06 | — | 0.06 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (2) | 0.04 | 0.14 | (0.10) | (71.4) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 0.07 | 0.04 | 0.03 | 75.0 | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (5) | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (5) | (0.01) | (0.04) | 0.03 | 75.0 | |||||||||||||||||||
Tax impact of acquisition-related costs (5) | (0.02) | (0.01) | (0.01) | (100.0) | |||||||||||||||||||
Impact of foreign tax credit benefit | — | (0.18) | 0.18 | NM | |||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (6) | $ | 0.71 | $ | 0.79 | $ | (0.08) | (10.1) | % |
(1) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Fiscal 2022 includes $7 million related to restructuring, severance, and facility closure charges and $12 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2019 includes $35 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy and $37 million related to restructuring, facility closure and severance charges. | ||||
(3) | Fiscal 2022 includes $27 million of intangible amortization expense and $10 million in acquisition and due diligence costs. Fiscal 2019 includes intangible amortization expense. | ||||
(4) | Fiscal 2022 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(6) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
Sales (GAAP) | $ | 49,678,888 | $ | 35,160,950 | $ | 14,517,938 | 41.3 | % | |||||||||||||||
Impact of currency fluctuations (1) | (77,043) | — | (77,043) | (0.2) | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 49,601,845 | $ | 35,160,950 | $ | 14,440,895 | 41.1 | % | |||||||||||||||
Cost of sales (GAAP) | $ | 40,802,636 | $ | 28,719,979 | $ | 12,082,657 | 42.1 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | (29,550) | — | (29,550) | (0.1) | |||||||||||||||||||
Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 40,773,086 | $ | 28,719,979 | $ | 12,053,107 | 42.0 | % | |||||||||||||||
Gross profit (GAAP) | $ | 8,876,252 | $ | 6,440,971 | $ | 2,435,281 | 37.8 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 29,550 | — | 29,550 | 0.5 | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items (Non-GAAP) | 8,905,802 | 6,440,971 | 2,464,831 | 38.3 | % | ||||||||||||||||||
Impact of currency fluctuations (1) | (8,125) | — | (8,125) | (0.2) | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 8,897,677 | $ | 6,440,971 | $ | 2,456,706 | 38.1 | % | |||||||||||||||
Gross margin (GAAP) | 17.87 | % | 18.32 | % | -45 bps | ||||||||||||||||||
Impact of inventory valuation adjustment (2) | 0.06 | — | 6 bps | ||||||||||||||||||||
Comparable Gross margin adjusted for Certain Items (Non-GAAP) | 17.93 | % | 18.32 | % | -39 bps | ||||||||||||||||||
Impact of currency fluctuations (1) | 0.01 | — | 1 bps | ||||||||||||||||||||
Comparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) | 17.94 | % | 18.32 | % | -38 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 7,303,932 | $ | 5,573,413 | $ | 1,730,519 | 31.0 | % | |||||||||||||||
Impact of restructuring and transformational project costs (3) | (70,058) | (95,078) | 25,020 | 26.3 | |||||||||||||||||||
Impact of acquisition-related costs (4) | (103,449) | (54,714) | (48,735) | (89.1) | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | 19,216 | 162,372 | (143,156) | (88.2) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 7,149,641 | $ | 5,585,993 | $ | 1,563,648 | 28.0 | % | |||||||||||||||
Impact of currency fluctuations (1) | (4,177) | — | (4,177) | (0.1) | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 7,145,464 | $ | 5,585,993 | $ | 1,559,471 | 27.9 | % | |||||||||||||||
Operating income (GAAP) | $ | 1,572,320 | $ | 867,558 | $ | 704,762 | 81.2 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 70,058 | 95,078 | (25,020) | (26.3) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 103,449 | 54,714 | 48,735 | 89.1 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (19,216) | (162,372) | 143,156 | 88.2 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 1,756,161 | $ | 854,978 | $ | 901,183 | 105.4 | % | |||||||||||||||
Impact of currency fluctuations (1) | (3,947) | — | (3,947) | (0.5) | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 1,752,214 | $ | 854,978 | $ | 897,236 | 104.9 | % | |||||||||||||||
Interest expense (GAAP) | $ | 495,131 | $ | 438,988 | $ | 56,143 | 12.8 | % | |||||||||||||||
Impact of loss on extinguishment of debt | (115,603) | — | (115,603) | NM | |||||||||||||||||||
Interest expense adjusted for Certain Items (Non-GAAP) | $ | 379,528 | $ | 438,988 | $ | (59,460) | (13.5) | % | |||||||||||||||
Other income (GAAP) | $ | (27,705) | $ | (14,140) | $ | (13,565) | (95.9) | % |
Impact of loss on sale of business | — | (22,834) | 22,834 | NM | |||||||||||||||||||
Other income adjusted for Certain Items (Non-GAAP) | $ | (27,705) | $ | (36,974) | $ | 9,269 | 25.1 | % | |||||||||||||||
Net earnings (GAAP) | $ | 848,779 | $ | 373,116 | $ | 475,663 | 127.5 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 70,058 | 95,078 | (25,020) | (26.3) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 103,449 | 54,714 | 48,735 | 89.1 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (19,216) | (162,372) | 143,156 | 88.2 | |||||||||||||||||||
Impact of loss on extinguishment of debt | 115,603 | — | 115,603 | NM | |||||||||||||||||||
Impact of loss on sale of business | — | 22,834 | (22,834) | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (6) | (7,449) | — | (7,449) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (6) | (17,661) | (26,886) | 9,225 | 34.3 | |||||||||||||||||||
Tax impact of acquisition-related costs (6) | (26,079) | (15,471) | (10,608) | (68.6) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (6) | 4,844 | 45,913 | (41,069) | (89.4) | |||||||||||||||||||
Tax impact of loss on extinguishment of debt (6) | (29,143) | — | (29,143) | NM | |||||||||||||||||||
Tax impact of loss on sale of business (6) | — | (7,251) | 7,251 | NM | |||||||||||||||||||
Impact of adjustments to uncertain tax positions | 12,000 | — | 12,000 | NM | |||||||||||||||||||
Impact of foreign tax rate change | — | (5,548) | 5,548 | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 1,084,735 | $ | 374,127 | $ | 710,608 | 189.9 | % | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 1.65 | $ | 0.73 | $ | 0.92 | 126.0 | % | |||||||||||||||
Impact of inventory valuation adjustment (2) | 0.06 | — | 0.06 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (3) | 0.14 | 0.19 | (0.05) | (26.3) | |||||||||||||||||||
Impact of acquisition-related costs (4) | 0.20 | 0.11 | 0.09 | 81.8 | |||||||||||||||||||
Impact of bad debt reserve adjustments (5) | (0.04) | (0.32) | 0.28 | 87.5 | |||||||||||||||||||
Impact of loss on extinguishment of debt | 0.22 | — | 0.22 | NM | |||||||||||||||||||
Impact of loss on sale of business | — | 0.04 | (0.04) | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (6) | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (6) | (0.03) | (0.05) | 0.02 | 40.0 | |||||||||||||||||||
Tax impact of acquisition-related costs (6) | (0.05) | (0.03) | (0.02) | (66.7) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (6) | 0.01 | 0.09 | (0.08) | (88.9) | |||||||||||||||||||
Tax impact of loss on extinguishment of debt (6) | (0.06) | — | (0.06) | NM | |||||||||||||||||||
Tax impact of loss on sale of business (6) | — | (0.01) | 0.01 | NM | |||||||||||||||||||
Impact of adjustments to uncertain tax positions | 0.02 | — | 0.02 | NM | |||||||||||||||||||
Impact of foreign tax rate change | — | (0.01) | 0.01 | NM | |||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (7) | $ | 2.11 | $ | 0.73 | $ | 1.38 | 189.0 | % |
(1) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. | ||||
(2) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(3) | Fiscal 2022 includes $39 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy and $31 million related to restructuring charges, severance and facility closure charges. Fiscal 2021 includes $56 million related to restructuring, severance and facility closure charges, and $39 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(4) | Fiscal 2022 includes $75 million of intangible amortization expense and $28 million in acquisition and due diligence costs. Fiscal 2021 represents intangible amortization expense. | ||||
(5) | Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(6) | The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(7) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 30, 2019 | Change in Dollars | % Change | ||||||||||||||||||||
Sales (GAAP) | $ | 49,678,888 | $ | 44,639,060 | $ | 5,039,828 | 11.3 | % | |||||||||||||||
Cost of sales (GAAP) | $ | 40,802,636 | $ | 36,209,265 | $ | 4,593,371 | 12.7 | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | (29,550) | — | (29,550) | NM | |||||||||||||||||||
Cost of sales adjusted for Certain Items (Non-GAAP) | $ | 40,773,086 | $ | 36,209,265 | $ | 4,563,821 | 12.6 | % | |||||||||||||||
Gross profit (GAAP) | $ | 8,876,252 | $ | 8,429,795 | $ | 446,457 | 5.3 | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Comparable gross profit adjusted for Certain Items (Non-GAAP) | $ | 8,905,802 | $ | 8,429,795 | $ | 476,007 | 5.7 | % | |||||||||||||||
Gross margin (GAAP) | 17.87 | % | 18.88 | % | -101 bps | ||||||||||||||||||
Impact of inventory valuation adjustment (1) | 0.06 | — | 6 bps | ||||||||||||||||||||
Comparable Gross margin adjusted for Certain Items (Non-GAAP) | 17.93 | % | 18.88 | % | -95 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 7,303,932 | $ | 6,820,175 | $ | 483,757 | 7.1 | % | |||||||||||||||
Impact of restructuring and transformational project costs (2) | (70,058) | (247,547) | 177,489 | 71.7 | |||||||||||||||||||
Impact of acquisition-related costs (3) | (103,449) | (58,042) | (45,407) | (78.2) | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | 19,216 | — | 19,216 | NM | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items (Non-GAAP) | $ | 7,149,641 | $ | 6,514,586 | $ | 635,055 | 9.7 | % | |||||||||||||||
Operating income (GAAP) | $ | 1,572,320 | $ | 1,609,620 | $ | (37,300) | (2.3) | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (2) | 70,058 | 247,547 | (177,489) | (71.7) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 103,449 | 58,042 | 45,407 | 78.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (19,216) | — | (19,216) | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 1,756,161 | $ | 1,915,209 | $ | (159,048) | (8.3) | % | |||||||||||||||
Interest expense (GAAP) | $ | 495,131 | $ | 270,643 | $ | 224,488 | 82.9 | % | |||||||||||||||
Impact of loss on extinguishment of debt | (115,603) | — | (115,603) | NM | |||||||||||||||||||
Interest expense adjusted for Certain Items (Non-GAAP) | $ | 379,528 | $ | 270,643 | $ | 108,885 | 40.2 | % | |||||||||||||||
Net earnings (GAAP) | $ | 848,779 | $ | 1,138,505 | $ | (289,726) | (25.4) | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (2) | 70,058 | 247,547 | (177,489) | (71.7) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 103,449 | 58,042 | 45,407 | 78.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (19,216) | — | (19,216) | NM | |||||||||||||||||||
Impact of loss on extinguishment of debt | 115,603 | — | 115,603 | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (5) | (7,449) | — | (7,449) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (5) | (17,661) | (64,831) | 47,170 | 72.8 | |||||||||||||||||||
Tax impact of acquisition-related costs (5) | (26,079) | (15,201) | (10,878) | (71.6) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (5) | 4,844 | — | 4,844 | NM | |||||||||||||||||||
Tax impact of loss on extinguishment of debt (5) | (29,143) | — | (29,143) | NM | |||||||||||||||||||
Impact of foreign tax credit benefit | — | (95,067) | 95,067 | NM |
Impact of adjustments to uncertain tax positions | 12,000 | — | 12,000 | NM | |||||||||||||||||||
Impact of US transition tax | — | 14,885 | (14,885) | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 1,084,735 | $ | 1,283,880 | $ | (199,145) | (15.5) | % | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 1.65 | $ | 2.17 | $ | (0.52) | (24.0) | % | |||||||||||||||
Impact of inventory valuation adjustment (1) | 0.06 | — | 0.06 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (2) | 0.14 | 0.47 | (0.33) | (70.2) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 0.20 | 0.11 | 0.09 | 81.8 | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (0.04) | — | (0.04) | NM | |||||||||||||||||||
Impact of loss on extinguishment of debt | 0.22 | — | 0.22 | NM | |||||||||||||||||||
Tax impact of inventory valuation adjustment (5) | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (5) | (0.03) | (0.12) | 0.09 | 75.0 | |||||||||||||||||||
Tax impact of acquisition-related costs (5) | (0.05) | (0.03) | (0.02) | (66.7) | |||||||||||||||||||
Tax impact of bad debt reserves adjustments (5) | 0.01 | — | 0.01 | NM | |||||||||||||||||||
Tax impact of loss on extinguishment of debt (5) | (0.06) | — | (0.06) | NM | |||||||||||||||||||
Impact of foreign tax credit benefit | — | (0.18) | 0.18 | NM | |||||||||||||||||||
Impact of adjustments to uncertain tax positions | 0.02 | — | 0.02 | NM | |||||||||||||||||||
Impact of US transition tax | — | 0.03 | (0.03) | NM | |||||||||||||||||||
Diluted earnings per share adjusted for Certain Items (Non-GAAP) (6) | $ | 2.11 | $ | 2.45 | $ | (0.34) | (13.9) | % |
(1) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Fiscal 2022 includes $39 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy and $31 million related to restructuring charges, severance and facility closure charges. Fiscal 2019 includes $114 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy, of which $17 million relates to accelerated depreciation related to software that is being replaced, and $133 million related to severance, restructuring and facility closure charges in Europe, Canada and at our Global Support Center, of which $58 million relates to our France restructuring as part of our integration of Brake France and Davigel into Sysco France. | ||||
(3) | Fiscal 2022 includes $75 million of intangible amortization expense and $28 million in acquisition and due diligence costs. Fiscal 2019 includes $57 million of intangible amortization expense and $1 million related to integration costs. | ||||
(4) | Fiscal 2022 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. | ||||
(6) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 27, 2021 | Change in Dollars | %/bps Change | ||||||||||||||||||||
U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 1,523,578 | $ | 1,089,335 | $ | 434,243 | 39.9 | % | |||||||||||||||
Impact of restructuring and transformational project costs | 2,543 | (1,285) | 3,828 | 297.9 | |||||||||||||||||||
Impact of acquisition-related costs (1) | (10,505) | — | (10,505) | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 5,060 | 21,669 | (16,609) | (76.6) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 1,520,676 | $ | 1,109,719 | $ | 410,957 | 37.0 | % | |||||||||||||||
Operating income (GAAP) | $ | 746,467 | $ | 545,502 | $ | 200,965 | 36.8 | % | |||||||||||||||
Impact of restructuring and transformational project costs | (2,543) | 1,285 | (3,828) | (297.9) | |||||||||||||||||||
Impact of acquisition-related costs (1) | 10,505 | — | 10,505 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (5,060) | (21,669) | 16,609 | 76.6 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 749,369 | $ | 525,118 | $ | 224,251 | 42.7 | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 2,834,089 | $ | 1,723,126 | $ | 1,110,963 | 64.5 | % | |||||||||||||||
Impact of currency fluctuations (3) | 83,678 | — | 83,678 | 4.8 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 2,917,767 | $ | 1,723,126 | $ | 1,194,641 | 69.3 | % | |||||||||||||||
Gross profit (GAAP) | $ | 570,241 | $ | 325,200 | $ | 245,041 | 75.4 | % | |||||||||||||||
Impact of currency fluctuations (3) | 20,354 | — | 20,354 | 6.2 | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 590,595 | $ | 325,200 | $ | 265,395 | 81.6 | % | |||||||||||||||
Gross margin (GAAP) | 20.12 | % | 18.87 | % | 125 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.12 | — | 12 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 20.24 | % | 18.87 | % | 137 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 562,481 | $ | 446,687 | $ | 115,794 | 25.9 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (9,379) | (18,635) | 9,256 | 49.7 | |||||||||||||||||||
Impact of acquisition-related costs (5) | (18,142) | (18,834) | 692 | 3.7 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 657 | 8,357 | (7,700) | (92.1) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 535,617 | 417,575 | 118,042 | 28.3 | |||||||||||||||||||
Impact of currency fluctuations (3) | 20,104 | — | 20,104 | 4.8 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 555,721 | $ | 417,575 | $ | 138,146 | 33.1 | % | |||||||||||||||
Operating income (loss) (GAAP) | $ | 7,760 | $ | (121,487) | $ | 129,247 | 106.4 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | 9,379 | 18,635 | (9,256) | (49.7) | |||||||||||||||||||
Impact of acquisition-related costs (5) | 18,142 | 18,834 | (692) | (3.7) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (657) | (8,357) | 7,700 | 92.1 | |||||||||||||||||||
Operating income (loss) adjusted for Certain Items (Non-GAAP) | 34,624 | (92,375) | 126,999 | 137.5 | |||||||||||||||||||
Impact of currency fluctuations (3) | 250 | — | 250 | 0.3 | |||||||||||||||||||
Comparable operating income (loss) adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 34,874 | $ | (92,375) | $ | 127,249 | 137.8 | % | |||||||||||||||
SYGMA | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 142,883 | $ | 120,541 | $ | 22,342 | 18.5 | % | |||||||||||||||
Operating income (GAAP) | 4,362 | 12,937 | (8,575) | (66.3) | |||||||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 59,369 | $ | 32,027 | $ | 27,342 | 85.4 | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | — | 3,447 | (3,447) | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 59,369 | $ | 35,474 | $ | 23,895 | 67.4 | % | |||||||||||||||
Operating (loss) income (GAAP) | $ | (3,972) | $ | 5,884 | $ | (9,856) | (167.5) | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | — | (3,447) | 3,447 | NM | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | $ | (3,972) | $ | 2,437 | $ | (6,409) | (263.0) | % | |||||||||||||||
GLOBAL SUPPORT CENTER | |||||||||||||||||||||||
Gross loss (GAAP) | $ | (29,534) | $ | (8,758) | $ | (20,776) | (237.2) | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | 29,550 | — | 29,550 | 337.4 | |||||||||||||||||||
Comparable gross profit (loss) adjusted for Certain Items (Non-GAAP) | $ | 16 | $ | (8,758) | $ | 8,774 | 100.2 | % | |||||||||||||||
Operating expenses (GAAP) | $ | 229,354 | $ | 198,161 | $ | 31,193 | 15.7 | % | |||||||||||||||
Impact of restructuring and transformational project costs (7) | (12,335) | (15,033) | 2,698 | 17.9 | |||||||||||||||||||
Impact of acquisition-related costs (8) | (8,052) | — | (8,052) | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 208,967 | $ | 183,128 | $ | 25,839 | 14.1 | % | |||||||||||||||
Operating loss (GAAP) | $ | (258,888) | $ | (206,919) | $ | (51,969) | (25.1) | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (7) | 12,335 | 15,033 | (2,698) | (17.9) | |||||||||||||||||||
Impact of acquisition-related costs (8) | 8,052 | — | 8,052 | NM | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (208,951) | $ | (191,886) | $ | (17,065) | (8.9) | % | |||||||||||||||
(1) | Fiscal 2022 includes intangible amortization expense and acquisition costs. | ||||
(2) | Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring and facility closure costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense. | ||||
(6) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(7) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(8) | Represents due diligence costs. | ||||
NM represents that the percentage change is not meaningful. |
U.S. FOODSERVICE OPERATIONS | 39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | |||||||||||||||||||
Operating expenses (GAAP) | $ | 4,373,665 | $ | 3,174,704 | $ | 1,198,961 | 37.8 | % | |||||||||||||||
Impact of restructuring and transformational project costs | (383) | (4,010) | 3,627 | 90.4 | |||||||||||||||||||
Impact of acquisition-related costs (1) | (25,382) | — | (25,382) | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 16,729 | 123,225 | (106,496) | (86.4) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 4,364,629 | $ | 3,293,919 | $ | 1,070,710 | 32.5 | % | |||||||||||||||
Operating income (GAAP) | $ | 2,220,812 | $ | 1,619,162 | $ | 601,650 | 37.2 | % | |||||||||||||||
Impact of restructuring and transformational project costs | 383 | 4,010 | (3,627) | (90.4) | |||||||||||||||||||
Impact of acquisition-related costs (1) | 25,382 | — | 25,382 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (16,729) | (123,225) | 106,496 | 86.4 | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 2,229,848 | $ | 1,499,947 | $ | 729,901 | 48.7 | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 8,535,608 | $ | 5,854,608 | $ | 2,681,000 | 45.8 | % | |||||||||||||||
Impact of currency fluctuations (3) | (71,779) | — | (71,779) | (1.2) | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 8,463,829 | $ | 5,854,608 | $ | 2,609,221 | 44.6 | % | |||||||||||||||
Gross profit (GAAP) | $ | 1,725,306 | $ | 1,149,438 | $ | 575,868 | 50.1 | % | |||||||||||||||
Impact of currency fluctuations (3) | (6,413) | — | (6,413) | (0.6) | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 1,718,893 | $ | 1,149,438 | $ | 569,455 | 49.5 | % | |||||||||||||||
Gross margin (GAAP) | 20.21 | % | 19.63 | % | 58 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.10 | — | 10 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 20.31 | % | 19.63 | % | 68 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 1,670,125 | $ | 1,351,411 | $ | 318,714 | 23.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (30,426) | (52,033) | 21,607 | 41.5 | |||||||||||||||||||
Impact of acquisition-related costs (5) | (55,273) | (54,714) | (559) | (1.0) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 2,488 | 33,583 | (31,095) | (92.6) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 1,586,914 | 1,278,247 | 308,667 | 24.1 | |||||||||||||||||||
Impact of currency fluctuations (3) | (4,164) | — | (4,164) | (0.3) | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 1,582,750 | $ | 1,278,247 | $ | 304,503 | 23.8 | % | |||||||||||||||
Operating income (loss) (GAAP) | $ | 55,181 | $ | (201,973) | $ | 257,154 | 127.3 | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | 30,426 | 52,033 | (21,607) | (41.5) | |||||||||||||||||||
Impact of acquisition-related costs (5) | 55,273 | 54,714 | 559 | 1.0 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (2,488) | (33,583) | 31,095 | 92.6 | |||||||||||||||||||
Operating income (loss) adjusted for Certain Items (Non-GAAP) | 138,392 | (128,809) | 267,201 | 207.4 | |||||||||||||||||||
Impact of currency fluctuations (3) | (2,249) | — | (2,249) | NM | |||||||||||||||||||
Comparable operating income (loss) adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 136,143 | $ | (128,809) | $ | 264,952 | 205.7 | % | |||||||||||||||
SYGMA | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 427,168 | $ | 358,361 | $ | 68,807 | 19.2 | % | |||||||||||||||
Impact of restructuring and transformational project costs | — | (7) | 7 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 427,168 | $ | 358,354 | $ | 68,814 | 19.2 | % | |||||||||||||||
Operating (loss) income (GAAP) | $ | (4,814) | $ | 35,957 | $ | (40,771) | (113.4) | % | |||||||||||||||
Impact of restructuring and transformational project costs | — | 7 | (7) | NM | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | $ | (4,814) | $ | 35,964 | $ | (40,778) | (113.4) | % | |||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 166,560 | $ | 109,247 | $ | 57,313 | 52.5 | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | (1) | 5,564 | (5,565) | (100.0) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 166,559 | $ | 114,811 | $ | 51,748 | 45.1 | % | |||||||||||||||
Operating (loss) income (GAAP) | $ | 2,667 | $ | 4,861 | $ | (2,194) | (45.1) | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | 1 | (5,564) | 5,565 | 100.0 | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | $ | 2,668 | $ | (703) | $ | 3,371 | NM | ||||||||||||||||
GLOBAL SUPPORT CENTER | |||||||||||||||||||||||
Gross loss (GAAP) | $ | (35,112) | $ | (10,759) | $ | (24,353) | (226.4) | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Comparable gross profit (loss) adjusted for Certain Items (Non-GAAP) | $ | (5,562) | $ | (10,759) | $ | 5,197 | 48.3 | % | |||||||||||||||
Operating expenses (GAAP) | $ | 666,414 | $ | 579,690 | $ | 86,724 | 15.0 | % | |||||||||||||||
Impact of restructuring and transformational project costs (7) | (39,249) | (39,028) | (221) | (0.6) | |||||||||||||||||||
Impact of acquisition-related costs (8) | (22,794) | — | (22,794) | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 604,371 | $ | 540,662 | $ | 63,709 | 11.8 | % | |||||||||||||||
Operating loss (GAAP) | $ | (701,526) | $ | (590,449) | $ | (111,077) | (18.8) | % | |||||||||||||||
Impact of inventory valuation adjustment (6) | 29,550 | — | 29,550 | NM | |||||||||||||||||||
Impact of restructuring and transformational project costs (7) | 39,249 | 39,028 | 221 | 0.6 | |||||||||||||||||||
Impact of acquisition-related costs (8) | 22,794 | — | 22,794 | NM | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (609,933) | $ | (551,421) | $ | (58,512) | (10.6) | % |
(1) | Fiscal 2022 includes intangible amortization expense and acquisition costs. | ||||
(2) | Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring, severance and facility closure costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense. | ||||
(6) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(7) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(8) | Represents due diligence costs. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (GAAP) | $ | 303,325 | $ | 88,927 | $ | 214,398 | 241.1 | % | |||||||||||||||
Interest (GAAP) | 124,018 | 145,773 | (21,755) | (14.9) | |||||||||||||||||||
Income taxes (GAAP) | 82,163 | 13,925 | 68,238 | NM | |||||||||||||||||||
Depreciation and amortization (GAAP) | 193,843 | 177,139 | 16,704 | 9.4 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 703,349 | $ | 425,764 | $ | 277,585 | 65.2 | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of inventory valuation adjustment (1) | $ | 29,550 | $ | — | $ | 29,550 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (2) | 18,746 | 34,301 | (15,555) | (45.3) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 9,861 | — | 9,861 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (5,717) | (33,473) | 27,756 | 82.9 | |||||||||||||||||||
Impact of loss on sale of business | — | 10,790 | (10,790) | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (5) | $ | 755,789 | $ | 437,382 | $ | 318,407 | 72.8 | % |
(1) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Fiscal 2022 and fiscal 2021 include charges related to restructuring, severance, and facility closures, as well as various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(3) | Fiscal 2022 includes acquisition and due diligence costs. | ||||
(4) | Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $2 million and $5 million for fiscal 2022 and fiscal 2021, respectively, or non-cash stock compensation expense of $30 million and $19 million in fiscal 2022 and fiscal 2021, respectively. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Apr. 2, 2022 | 13-Week Period Ended Mar. 30, 2019 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (GAAP) | $ | 303,325 | $ | 440,083 | $ | (136,758) | (31.1) | % | |||||||||||||||
Interest (GAAP) | 124,018 | 94,514 | 29,504 | 31.2 | |||||||||||||||||||
Income taxes (GAAP) | 82,163 | (9,132) | 91,295 | NM | |||||||||||||||||||
Depreciation and amortization (GAAP) | 193,843 | 184,183 | 9,660 | 5.2 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 703,349 | $ | 709,648 | $ | (6,299) | (0.9) | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of inventory valuation adjustment (1) | $ | 29,550 | $ | — | $ | 29,550 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (2) | 18,746 | 67,266 | (48,520) | (72.1) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 9,861 | 19 | 9,842 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (5,717) | — | (5,717) | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (5) | $ | 755,789 | $ | 776,933 | $ | (21,144) | (2.7) | % |
(1) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Fiscal 2022 and fiscal 2019 include charges related to restructuring, severance, and facility closures, as well as various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(3) | Fiscal 2022 includes acquisition and due diligence costs. Fiscal 2019 represents acquisition costs. | ||||
(4) | Fiscal 2022 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $2 million and $5 million for fiscal 2022 and fiscal 2019, respectively, or non-cash stock compensation expense of $30 million and $24 million in fiscal 2022 and fiscal 2019, respectively. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 27, 2021 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (GAAP) | $ | 848,779 | $ | 373,116 | $ | 475,663 | 127.5 | % | |||||||||||||||
Interest (GAAP) | 495,131 | 438,988 | 56,143 | 12.8 | |||||||||||||||||||
Income taxes (GAAP) | 256,115 | 69,594 | 186,521 | 268.0 | |||||||||||||||||||
Depreciation and amortization (GAAP) | 571,606 | 542,471 | 29,135 | 5.4 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 2,171,631 | $ | 1,424,169 | $ | 747,462 | 52.5 | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of inventory valuation adjustment (1) | $ | 29,550 | $ | — | $ | 29,550 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (2) | 69,093 | 89,253 | (20,160) | (22.6) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 28,260 | — | 28,260 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (19,216) | (162,372) | 143,156 | 88.2 | |||||||||||||||||||
Impact of loss on sale of business | — | 22,834 | (22,834) | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (5) | $ | 2,279,318 | $ | 1,373,884 | $ | 905,434 | 65.9 | % |
(1) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(3) | Fiscal 2022 includes acquisition and due diligence costs. | ||||
(4) | Fiscal 2022 and fiscal 2021 represent the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $5 million and $12 million or non-cash stock compensation expense of $91 million and $65 million for fiscal 2022 and fiscal 2021, respectively. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 30, 2019 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (GAAP) | $ | 848,779 | $ | 1,138,505 | $ | (289,726) | (25.4) | % | |||||||||||||||
Interest (GAAP) | 495,131 | 270,643 | 224,488 | 82.9 | |||||||||||||||||||
Income taxes (GAAP) | 256,115 | 185,023 | 71,092 | 38.4 | |||||||||||||||||||
Depreciation and amortization (GAAP) | 571,606 | 576,596 | (4,990) | (0.9) | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 2,171,631 | $ | 2,170,767 | $ | 864 | 0.04 | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of inventory valuation adjustment (1) | $ | 29,550 | $ | — | $ | 29,550 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (2) | 69,093 | 215,051 | (145,958) | (67.9) | |||||||||||||||||||
Impact of acquisition-related costs (3) | 28,260 | 824 | 27,436 | NM | |||||||||||||||||||
Impact of bad debt reserve adjustments (4) | (19,216) | — | (19,216) | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) (5) | $ | 2,279,318 | $ | 2,386,642 | $ | (107,324) | (4.5) | % |
(1) | Represents a write-down of COVID-related personal protection equipment inventory due to the reduction in the net realizable value of inventory. | ||||
(2) | Fiscal 2022 and fiscal 2019 include charges related to restructuring, severance, and facility closures, as well as various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(3) | Fiscal 2022 includes acquisition and due diligence costs. Fiscal 2019 represents acquisition costs. | ||||
(4) | Fiscal 2022 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. | ||||
(5) | In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $5 million and $4 million or non-cash stock compensation expense of $91 million and $78 million for fiscal 2022 and fiscal 2019, respectively. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Apr. 2, 2022 | 39-Week Period Ended Mar. 27, 2021 | ||||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities (GAAP) | $ | 745,871 | $ | 1,479,784 | |||||||
Additions to plant and equipment | (327,535) | (251,167) | |||||||||
Proceeds from sales of plant and equipment | 15,946 | 19,308 | |||||||||
Free Cash Flow (Non-GAAP) (1) | $ | 434,282 | $ | 1,247,925 | |||||||
Acquisition of businesses, net of cash acquired | $ | (1,281,835) | $ | — | |||||||
Debt borrowings (repayments), net | 1,213,114 | (1,897,688) | |||||||||
Redemption premiums and repayments of senior notes | (1,395,668) | — | |||||||||
Stock repurchases | (415,824) | — | |||||||||
Dividends paid | (719,865) | (689,251) | |||||||||
(1) | Free cash flow should not be used as a substitute for the most comparable GAAP measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” contained in our fiscal 2021 Form 10-K for discussions around this non-GAAP performance metric. |
Combined Parent and Guarantor Subsidiaries Summarized Balance Sheet | Apr. 2, 2022 | Jul. 3, 2021 | ||||||||||||
(In thousands) | ||||||||||||||
ASSETS | ||||||||||||||
Receivables due from non-obligor subsidiaries | $ | 503,761 | $ | 171,718 | ||||||||||
Current assets | 5,617,406 | 6,661,284 | ||||||||||||
Total current assets | $ | 6,121,167 | $ | 6,833,002 | ||||||||||
Notes receivable from non-obligor subsidiaries | $ | 85,520 | $ | 83,457 | ||||||||||
Other noncurrent assets | 3,936,594 | 3,933,833 | ||||||||||||
Total noncurrent assets | $ | 4,022,114 | $ | 4,017,290 | ||||||||||
LIABILITIES | ||||||||||||||
Payables due to non-obligor subsidiaries | $ | 54,625 | $ | 203,365 | ||||||||||
Other current liabilities | 2,471,341 | 2,299,674 | ||||||||||||
Total current liabilities | $ | 2,525,966 | $ | 2,503,039 | ||||||||||
Notes payable to non-obligor subsidiaries | $ | 166,211 | $ | 269,709 | ||||||||||
Long-term debt | 10,053,274 | 10,139,596 | ||||||||||||
Other noncurrent liabilities | 1,253,153 | 1,209,598 | ||||||||||||
Total noncurrent liabilities | $ | 11,472,638 | $ | 11,618,903 |
Combined Parent and Guarantor Subsidiaries Summarized Results of Operations | 39-Week Period Ended Apr. 2, 2022 | |||||||
(In thousands) | ||||||||
Sales | $ | 31,739,026 | ||||||
Gross profit | 5,677,552 | |||||||
Operating income | 1,588,760 | |||||||
Interest expense from non-obligor subsidiaries | 45,904 | |||||||
Net earnings | 824,163 |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
Month #1 | |||||||||||||||||||||||
January 2 - January 29 | 1,297 | $ | 77.07 | 99,960 | — | ||||||||||||||||||
Month #2 | |||||||||||||||||||||||
January 30 - February 26 | 4,932 | 83.80 | 413,303 | — | |||||||||||||||||||
Month #3 | |||||||||||||||||||||||
February 27 - April 2 | — | — | — | — | |||||||||||||||||||
Totals | 6,229 | $ | 82.40 | 513,263 | — |
3.1 | — | |||||||
3.2 | — | |||||||
3.3 | — | |||||||
3.4 | — | |||||||
22.1# | — | |||||||
31.1# | — | |||||||
31.2# | — | |||||||
32.1# | — | |||||||
32.2# | — | |||||||
101.SCH# | — | Inline XBRL Taxonomy Extension Schema Document | ||||||
101.CAL# | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.DEF# | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB# | — | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||||
101.PRE# | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Sysco Corporation | ||||||||
(Registrant) | ||||||||
Date: May 10, 2022 | By: | /s/ KEVIN P. HOURICAN | ||||||
Kevin P. Hourican | ||||||||
President and Chief Executive Officer | ||||||||
Date: May 10, 2022 | By: | /s/ AARON E. ALT | ||||||
Aaron E. Alt | ||||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
Date: May 10, 2022 | By: | /s/ ANITA A. ZIELINSKI | ||||||
Anita A. Zielinski | ||||||||
Senior Vice President and | ||||||||
Chief Accounting Officer |
Guaranteed Securities | ||
Debentures, interest at 7.16%, maturing on April 15, 2027 | ||
Senior notes, interest at 6.625%, maturing on March 17, 2039 | ||
Senior notes, interest at 1.25%, maturing on June 23, 2023 | ||
Senior notes, interest at 3.3%, maturing on February 15, 2050 | ||
Senior notes, interest at 2.60%, maturing on June 12, 2022 | ||
Debentures, interest at 6.50%, maturing on August 1, 2028 | ||
Senior notes, interest at 5.375%, maturing on September 21, 2035 | ||
Senior notes, interest at 2.4%, maturing on February 15, 2030 | ||
Senior notes, interest at 3.75%, maturing on October 1, 2025 | ||
Senior notes, interest at 3.30%, maturing on July 15, 2026 | ||
Senior notes, interest at 4.85%, maturing on October 1, 2045 | ||
Senior notes, interest at 4.50%, maturing on April 1, 2046 | ||
Senior notes, interest at 3.250%, maturing on July 15, 2027 | ||
Senior notes, interest at 4.45%, maturing on March 15, 2048 | ||
Senior notes, interest at 5.95%, maturing April 1, 2030 | ||
Senior notes, interest at 6.60%, maturing April 1, 2040 | ||
Senior notes, interest at 6.60%, maturing April 1, 2050 | ||
Senior notes, interest at 2.45%, maturing December 14, 2031 | ||
Senior notes, interest at 3.15%, maturing December 14, 2051 |
Subsidiary Name | Issuer | Guarantor | ||||||
Sysco Corporation | X | |||||||
Sysco Albany, LLC | X | |||||||
Sysco Asian Foods, Inc. | X | |||||||
Sysco Atlanta, LLC | X | |||||||
Sysco Baltimore, LLC | X | |||||||
Sysco Baraboo, LLC | X | |||||||
Sysco Boston, LLC | X | |||||||
Sysco Central Alabama, LLC | X | |||||||
Sysco Central California, Inc. | X | |||||||
Sysco Central Florida, Inc. | X | |||||||
Sysco Central Illinois, Inc. | X | |||||||
Sysco Central Pennsylvania, LLC | X | |||||||
Sysco Charlotte, LLC | X | |||||||
Sysco Chicago, Inc. | X | |||||||
Sysco Cincinnati, LLC | X | |||||||
Sysco Cleveland, Inc. | X | |||||||
Sysco Columbia, LLC | X | |||||||
Sysco Connecticut, LLC | X | |||||||
Sysco Detroit, LLC | X | |||||||
Sysco Eastern Maryland, LLC | X | |||||||
Sysco Eastern Wisconsin, LLC | X | |||||||
Sysco Grand Rapids, LLC | X | |||||||
Sysco Gulf Coast, LLC | X | |||||||
Sysco Hampton Roads, Inc. | X | |||||||
Sysco Hawaii, Inc. | X | |||||||
Sysco Indianapolis, LLC | X | |||||||
Sysco Iowa, Inc. | X | |||||||
Sysco Jackson, LLC | X | |||||||
Sysco Jacksonville, Inc. | X | |||||||
Sysco Kansas City, Inc. | X | |||||||
Sysco Knoxville, LLC | X | |||||||
Sysco Lincoln, Inc. | X | |||||||
Sysco Long Island, LLC | X | |||||||
Sysco Los Angeles, Inc. | X | |||||||
Sysco Louisville, Inc. | X | |||||||
Sysco Memphis, LLC | X | |||||||
Sysco Metro New York, LLC | X | |||||||
Sysco Minnesota, Inc. | X | |||||||
Sysco Montana, Inc. | X | |||||||
Sysco Nashville, LLC | X | |||||||
Sysco North Dakota, Inc. | X | |||||||
Sysco Northern New England, Inc. | X | |||||||
Sysco Philadelphia, LLC | X | |||||||
Sysco Pittsburgh, LLC | X | |||||||
Sysco Portland, Inc. | X | |||||||
Sysco Raleigh, LLC | X | |||||||
Sysco Riverside, Inc. | X |
Sysco Sacramento, Inc. | X | |||||||
Sysco San Diego, Inc. | X | |||||||
Sysco San Francisco, Inc. | X | |||||||
Sysco Seattle, Inc. | X | |||||||
Sysco South Florida, Inc. | X | |||||||
Sysco Southeast Florida, LLC | X | |||||||
Sysco Spokane, Inc. | X | |||||||
Sysco St. Louis, LLC | X | |||||||
Sysco Syracuse, LLC | X | |||||||
Sysco USA I, Inc. | X | |||||||
Sysco USA II, LLC | X | |||||||
Sysco USA III, LLC | X | |||||||
Sysco Ventura, Inc. | X | |||||||
Sysco Virginia, LLC | X | |||||||
Sysco West Coast Florida, Inc. | X | |||||||
Sysco Western Minnesota, Inc. | X |
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Jul. 03, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 128,189 | $ 117,695 |
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) | 256,507,982 | 253,342,595 |
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
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Income Statement [Abstract] | ||||
Sales | $ 16,902,139 | $ 11,824,589 | $ 49,678,888 | $ 35,160,950 |
Cost of sales | 13,888,745 | 9,701,921 | 40,802,636 | 28,719,979 |
Gross profit | 3,013,394 | 2,122,668 | 8,876,252 | 6,440,971 |
Operating expenses | 2,517,665 | 1,886,751 | 7,303,932 | 5,573,413 |
Operating income | 495,729 | 235,917 | 1,572,320 | 867,558 |
Interest expense | 124,018 | 145,773 | 495,131 | 438,988 |
Other income, net | (13,777) | (12,708) | (27,705) | (14,140) |
Earnings before income taxes | 385,488 | 102,852 | 1,104,894 | 442,710 |
Income taxes | 82,163 | 13,925 | 256,115 | 69,594 |
Net earnings | $ 303,325 | $ 88,927 | $ 848,779 | $ 373,116 |
Net earnings: | ||||
Basic earnings per share (in dollars per share) | $ 0.60 | $ 0.17 | $ 1.66 | $ 0.73 |
Diluted earnings per share (in dollars per share) | $ 0.59 | $ 0.17 | $ 1.65 | $ 0.73 |
Average shares outstanding (in shares) | 508,368,159 | 511,110,670 | 510,642,876 | 510,081,610 |
Diluted shares outstanding (in shares) | 512,238,523 | 514,585,129 | 514,198,780 | 512,688,895 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 303,325 | $ 88,927 | $ 848,779 | $ 373,116 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (96,582) | 9,805 | (210,646) | 345,452 |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,155 | 2,191 | 6,465 | 6,501 |
Change in net investment hedges | 12,041 | 9,388 | 30,568 | (22,539) |
Change in cash flow hedges | 18,375 | 9,135 | 11,845 | 8,503 |
Amortization of prior service cost | 74 | 137 | 222 | 411 |
Amortization of actuarial gain | 6,514 | 7,820 | 18,369 | 23,378 |
Change in marketable securities | (5,323) | (2,753) | (7,063) | (3,271) |
Total other comprehensive (loss) income | (62,746) | 35,723 | (150,240) | 358,435 |
Comprehensive income | $ 240,579 | $ 124,650 | $ 698,539 | $ 731,551 |
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.47 | $ 0.45 | $ 1.41 | $ 1.35 |
BASIS OF PRESENTATION |
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements have been prepared by the company, without audit. The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income (loss), 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 (loss), cash flows and changes in shareholders’ equity for all periods presented have been made. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 3, 2021. Certain footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements. Supplemental Cash Flow Information The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows:
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NEW ACCOUNTING STANDARDS |
9 Months Ended |
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Apr. 02, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Standards | NEW ACCOUNTING STANDARDS Government Assistance In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-10, “Government Assistance (Topic 832),” which requires business entities to make annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. For transactions in the scope of the new standard, business entities will need to provide information about the nature of the transaction, including significant terms and conditions, as well as the amounts and specific financial statement line items affected by the transaction. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The company is currently reviewing the provisions of the new standard.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE The company recognizes revenues when its performance obligations are satisfied in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods and services. Customer receivables, which are included in accounts receivable, less allowances in the consolidated balance sheet, were $4.5 billion and $3.5 billion as of April 2, 2022 and July 3, 2021, respectively, with the increase reflective of the ongoing industry recovery and increasing customer sales following the COVID-19 pandemic. 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. As of April 2, 2022, Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented:
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ACQUISITIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS During the first 39 weeks of fiscal 2022, the company paid cash of $1.3 billion for several acquisitions. 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 April 2, 2022, aggregate contingent consideration outstanding was $89.5 million, of which $87.0 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 fair value measurement. Greco and Sons On August 12, 2021, Sysco consummated its acquisition of Greco and Sons (Greco), a leading independent Italian specialty distributor in the United States, operating out of 10 distribution centers and servicing 22 geographies nationwide. Greco imports and distributes a full line of food and non-food products and manufactures specialty meat products. The acquisition also includes Bellissimo Foods Company, which distributes a broad selection of Italian and Mediterranean ingredients, including a proprietary branded line of products that are sold exclusively through the Bellissimo Foods Company distribution network, serving independent pizza and Italian restaurants. The purpose of the acquisition is to strengthen Sysco’s business within the Italian foodservice sector. The purchase price was allocated based on the company’s preliminary estimated fair value of the assets acquired and liabilities assumed, as follows:
(1) The excess purchase price of $717.1 million was assigned to goodwill and intangibles, a portion of which is deductible for income tax purposes. Goodwill of $491.6 million has been assigned to the U.S. Foodservice Operations reportable segment. Intangible assets include customer relationships of $116.0 million with a weighted average life of 8 years and trade names of $109.5 million with a weighted average life of 15 years. Amortization expense is being recognized on a straight-line basis and was $14.7 million for the first 39 weeks of fiscal 2022. The assets, liabilities and operating results of Greco are reflected in the company’s consolidated financial statements in accordance with Accounting Standard Codification Topic No. 805, Business Combinations, commencing from the acquisition date. In certain circumstances, the purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision until Sysco receives final information and other analysis during the measurement period. These include items such as finalizing valuation of acquired tangible and intangible assets and related tax attributes. The first 39 weeks of fiscal 2022 includes the results of operations of Greco for the period from August 12, 2021 to April 2, 2022. The results were not material to the consolidated results of the company for the first 39 weeks of fiscal 2022.
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FAIR VALUE MEASUREMENTS |
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FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSSysco’s policy is to invest in only high-quality investments. The fair value of the company’s cash deposits and money market funds included in cash equivalents are valued using inputs that are considered a Level 1 measurement. Other cash equivalents, such as time deposits and highly liquid instruments with original maturities of three months or less, are valued using inputs that are considered a Level 2 measurement. 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 6, “Marketable Securities.” The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 7, “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of April 2, 2022 and July 3, 2021:
(1)Represents restricted cash balance recorded within other assets in the consolidated balance sheet.
(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 $11.9 billion as of April 2, 2022 and $13.3 billion as of July 3, 2021, while the carrying value was $11.1 billion as of both April 2, 2022 and July 3, 2021.
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MARKETABLE SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES Sysco invests a portion of the assets held by its wholly owned captive insurance subsidiary in a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale. The company includes fixed income securities maturing in less than twelve months within prepaid expenses and other current assets and includes fixed income securities maturing in more than twelve months within other assets in the accompanying consolidated balance sheets. The company records the amounts at fair market value, which is determined using quoted market prices at the end of the reporting period. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in accumulated other comprehensive loss. There were no significant credit losses recognized in the first 39 weeks of fiscal 2022. The following table presents the company’s available-for-sale marketable securities as of April 2, 2022 and July 3, 2021:
As of April 2, 2022, the balance of available-for-sale securities by contractual maturity is shown in the following table. Within the table, maturities of fixed income securities have been allocated based upon timing of estimated cash flows. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
There were no significant realized gains or losses in marketable securities in the first 39 weeks of fiscal 2022.
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DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTSSysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk. Hedging of interest rate risk Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In the second quarter of fiscal 2022, Sysco settled some of its previously held interest rate swap contracts for proceeds of $23.1 million, which had a notional value of $500 million, due to the redemption of the entire $500 million aggregate principal amount of Sysco’s outstanding 3.550% Senior Notes due 2025 in December 2021. Hedging of foreign currency risk The company uses euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, U.S. dollar, Polish zloty and Danish krone. These inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. The company enters into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases. Hedging of fuel price risk Sysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel on anticipated future purchases. These swaps have been designated as cash flow hedges. None of the company’s hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of April 2, 2022 are presented below:
The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of April 2, 2022 and July 3, 2021 are as follows:
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:
The gains and losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above consist of the following components for each of the periods presented:
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended April 2, 2022 and March 27, 2021, presented on a pretax basis, are as follows:
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39-week periods ended April 2, 2022 and March 27, 2021, presented on a pretax basis, are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of April 2, 2022 are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 3, 2021 are as follows:
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT As of April 2, 2022, the company had a $2.0 billion long-term revolving credit facility ($2.0 billion facility) that would have expired on June 28, 2024. As of April 2, 2022, there were no borrowings outstanding under this facility. This credit facility was amended in the first quarter of fiscal 2022, to (a) eliminate the covenant that had restricted (i) increases to the company’s regular quarterly dividend and (ii) share repurchases, 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, and (b) adjusted the covenant requiring Sysco to maintain a certain ratio of consolidated EBITDA to consolidated interest expense. On April 29, 2022, Sysco entered into a new long-term revolving credit facility to replace the $2.0 billion facility. The new facility includes aggregate commitments of the lenders thereunder of $3.0 billion, with an option to increase such commitments to $4.0 billion. The new facility includes a covenant requiring Sysco to maintain a ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 over four consecutive fiscal quarters. This ratio is lower than the previous covenant that was included in the $2.0 billion facility. The new revolving credit facility expires on April 29, 2027. Sysco has a U.S. commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. As of April 2, 2022, there were no commercial paper issuances outstanding under this program. During the first 39 weeks of fiscal 2022, there were no borrowing activities under our commercial paper programs, $2.0 billion facility or short-term bank notes. In December 2021, the company accessed favorable credit markets and undertook a refinancing of previously outstanding senior notes to increase its weighted-average maturity profile and lower its average interest rates on the company’s debt portfolio. As part of the refinancing, on December 14, 2021, Sysco issued senior notes (the “Notes”) totaling $1.25 billion. Details of the Notes are as follows:
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 in arrears on June 14 and December 14, beginning June 14, 2022. 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 (i) the 2031 Notes before the date that is three months prior to the maturity date, or (ii) the 2051 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 that would be due if such senior notes matured on the applicable date described above. 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. On December 14, 2021, Sysco redeemed $1.25 billion in combined aggregate principal amount of its 5.650% Senior Notes due 2025 (the “5.650% Notes”) and 3.550% Senior Notes due 2025 (the “3.550% Notes”). Sysco used the net proceeds from the offering of the Notes, together with cash on hand, to fund the redemption of all of Sysco’s outstanding 5.650% Notes and 3.550% Notes. The redemption price for the senior notes of each such series that were redeemed was the principal amount of such senior notes plus a “make-whole” amount determined in accordance with the indenture governing such senior notes and accrued and unpaid interest to the applicable redemption date. The redemption was considered to be a debt extinguishment. As such, Sysco recognized a loss on extinguishment of debt of $115.6 million, which is recorded as a component of interest expense in the accompanying consolidated results of operations. Of this loss, $132.7 million was attributable to the purchase premium paid to the noteholders, and $6.0 million was attributable to the write-off of unamortized debt issuance costs and debt discount associated with the redeemed notes, offset by a gain of $23.1 million attributable to the termination of interest rate swap agreements that were serving as a fair value hedge.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share:
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OTHER COMPREHENSIVE INCOME |
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOMEComprehensive 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 $240.6 million and $124.7 million for the third quarter of fiscal 2022 and fiscal 2021, respectively. Comprehensive income was $698.5 million and $731.6 million for the first 39 weeks of fiscal 2022 and fiscal 2021, 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:
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2022. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2021. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1) Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2022. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2021. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in cash flow hedges includes the termination of some cash flow hedges. The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:
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SHARE-BASED COMPENSATION |
9 Months Ended |
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Apr. 02, 2022 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP). Stock Incentive Plans In the first 39 weeks of fiscal 2022, options to purchase 1,224,150 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant-date fair value per option granted during the first 39 weeks of fiscal 2022 was $17.39. In the first 39 weeks of fiscal 2022, employees were granted 473,355 performance share units (PSUs). Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For PSUs granted without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per PSU granted during the first 39 weeks of fiscal 2022 was $76.75. The PSUs will convert into shares of Sysco common stock at the end of the three-year performance period based on actual performance targets achieved, as well as the market-based return of Sysco’s common stock relative to that of each company within the S&P 500 index. In the first 39 weeks of fiscal 2022, employees were granted 736,709 restricted stock units. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2022 was $80.24. Employee Stock Purchase Plan Plan participants purchased 661,656 shares of common stock under the ESPP during the first 39 weeks of fiscal 2022. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $11.92 during the first 39 weeks of fiscal 2022. The fair value of each stock purchase right is estimated as the difference between the stock price at the date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost that has been recognized in results of operations was $90.7 million and $65.7 million for the first 39 weeks of fiscal 2022 and fiscal 2021, respectively. As of April 2, 2022, there was $144.2 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 1.97 years.
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INCOME TAXES |
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Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Effective Tax Rate The effective tax rates for the third quarter and first 39 weeks of fiscal 2022 were 21.31% and 23.18%, respectively. As compared to the company’s statutory tax rate, the higher effective tax rate for the third quarter and first 39 weeks of fiscal 2022 was favorably impacted by the excess tax benefits of equity-based compensation that totaled $7.9 million and $10.8 million, respectively, and the impact of non-taxable corporate-owned life insurance policies that totaled $0.4 million and $1.4 million, respectively. For the first 39 weeks of fiscal 2022, these were partially offset by the increase in our reserve for uncertain tax positions of $12.0 million recognized in the first quarter of fiscal 2022. The effective tax rates for the third quarter and first 39 weeks of fiscal 2021 were 13.54% and 15.72%, respectively. As compared to the company’s statutory tax rate, the lower effective tax rate for the third quarter and first 39 weeks of fiscal 2021 was impacted by the favorable impact of excess tax benefits of equity-based compensation that totaled $6.0 million and $12.6 million, respectively. The first 39 weeks of fiscal 2021 were also favorably impacted by the $7.6 million tax benefit attributable to the sale of the stock of Cake Corporation and the impact of changes in tax law in the U.K. of $5.5 million, both of which occurred in the first quarter of fiscal 2021. Uncertain Tax Positions As of April 2, 2022, the gross amount of unrecognized tax benefit and related accrued interest was $32.4 million and $5.4 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months. At this time, an estimate of the range of the reasonably possible change cannot be made. Other The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects 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.
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COMMITMENTS AND CONTINGENCIES |
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Apr. 02, 2022 | |
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.
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BUSINESS SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Sysco distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Our primary operations are located in North America and Europe. Under the accounting provisions related to disclosures about segments of an enterprise, we have aggregated certain operating segments into three reportable segments. “Other” financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds. •U.S. Foodservice Operations – includes (a) the company’s U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, produce, specialty Italian, specialty imports and a wide variety of non-food products and (b) our U.S. Specialty operations, which include our FreshPoint fresh production distribution business, our Specialty Meats and Seafood Group specialty protein operations and a number of small specialty businesses that are not material to the operations of Sysco; •International Foodservice Operations – includes operations in the Americas (primarily outside of the U.S. and Europe), which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the U.K., France, Ireland and Sweden; •SYGMA – our U.S. customized distribution operations serving quick-service chain restaurant customer locations; and •Other – primarily our hotel supply operations, Guest Worldwide. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Our Global Support Center generally includes all expenses of the corporate office and Sysco’s shared service operations. These also include all U.S. share-based compensation costs. The following tables set forth certain financial information for Sysco’s reportable business segments:
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NEW ACCOUNTING STANDARDS (Policies) |
9 Months Ended |
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Apr. 02, 2022 | |
Accounting Policies [Abstract] | |
Government Assistance | Government Assistance In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-10, “Government Assistance (Topic 832),” which requires business entities to make annual disclosures about transactions with a government that are accounted for by analogizing to a grant or contribution accounting model. For transactions in the scope of the new standard, business entities will need to provide information about the nature of the transaction, including significant terms and conditions, as well as the amounts and specific financial statement line items affected by the transaction. The new guidance is effective for all entities for annual reporting periods beginning after December 15, 2021; however, early adoption is permitted. The guidance may be applied either prospectively to all in-scope transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after the date of initial application, or retrospectively. The company is currently reviewing the provisions of the new standard.
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Fair Value Measurements | 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 6, “Marketable Securities.” The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 7, “Derivative Financial Instruments.” |
BASIS OF PRESENTATION (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows:
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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 balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows:
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REVENUE (Tables) |
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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:
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ACQUISITIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price was allocated based on the company’s preliminary estimated fair value of the assets acquired and liabilities assumed, as follows:
(1) The excess purchase price of $717.1 million was assigned to goodwill and intangibles, a portion of which is deductible for income tax purposes. Goodwill of $491.6 million has been assigned to the U.S. Foodservice Operations reportable segment. Intangible assets include customer relationships of $116.0 million with a weighted average life of 8 years and trade names of $109.5 million with a weighted average life of 15 years. Amortization expense is being recognized on a straight-line basis and was $14.7 million for the first 39 weeks of fiscal 2022.
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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 April 2, 2022 and July 3, 2021:
(1)Represents restricted cash balance recorded within other assets in the consolidated balance sheet.
(1)Represents restricted cash balance recorded within other assets in the consolidated balance sheet.
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MARKETABLE SECURITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-For-Sale Marketable Securities | The following table presents the company’s available-for-sale marketable securities as of April 2, 2022 and July 3, 2021:
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Schedule of Available-For-Sale Debt Securities Held To Actual Maturity | As of April 2, 2022, the balance of available-for-sale securities by contractual maturity is shown in the following table. Within the table, maturities of fixed income securities have been allocated based upon timing of estimated cash flows. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding Swap Agreements | Details of outstanding hedging instruments as of April 2, 2022 are presented below:
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Schedule of Derivatives Balance Sheet Location Table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of April 2, 2022 and July 3, 2021 are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of April 2, 2022 are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of July 3, 2021 are as follows:
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Schedule of Location and Effect of Derivative Instruments and Related Hedged Items | The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows:
The gains and losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above consist of the following components for each of the periods presented:
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended April 2, 2022 and March 27, 2021, presented on a pretax basis, are as follows:
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DEBT (Tables) |
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | As part of the refinancing, on December 14, 2021, Sysco issued senior notes (the “Notes”) totaling $1.25 billion. Details of the Notes are as follows:
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EARNINGS PER SHARE (Tables) |
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings per Share Table | The following table sets forth the computation of basic and diluted earnings per share:
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OTHER COMPREHENSIVE INCOME (Tables) |
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2022. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2021. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1) Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2022. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2021. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in cash flow hedges includes the termination of some cash flow hedges.
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Schedule of Rollforward of Accumulated Other Comprehensive (Loss) Income | The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:
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BUSINESS SEGMENT INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Segment Table | The following tables set forth certain financial information for Sysco’s reportable business segments:
|
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Jul. 03, 2021 |
Mar. 27, 2021 |
Jun. 27, 2020 |
---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 876,139 | $ 3,007,123 | $ 4,895,723 | |
Restricted cash | 68,954 | 29,309 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 945,093 | $ 3,037,100 | $ 4,925,032 | $ 6,095,570 |
REVENUE - Narrative (Details) - USD ($) $ in Billions |
Apr. 02, 2022 |
Jul. 03, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Customer receivables included in accounts and notes receivable, net | $ 4.5 | $ 3.5 |
ACQUISITIONS - Narrative (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Apr. 02, 2022
USD ($)
|
Mar. 27, 2021
USD ($)
|
Aug. 12, 2021
area
center
|
|
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net of cash acquired | $ 1,281,835 | $ 0 | |
Payable term for contingent consideration | 3 years | ||
Contingent consideration outstanding | $ 89,500 | ||
Greco and Sons | |||
Business Acquisition [Line Items] | |||
Number of distribution centers | center | 10 | ||
Number of geographic areas | area | 22 | ||
Earnout Liabilities | |||
Business Acquisition [Line Items] | |||
Contingent consideration outstanding | $ 87,000 |
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value Table (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands |
Apr. 02, 2022 |
Jul. 03, 2021 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 862,190 | $ 2,805,964 |
Other assets | 68,954 | 29,977 |
Total assets at fair value | 931,144 | 2,835,941 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 862,187 | 2,805,961 |
Other assets | 68,954 | 29,977 |
Total assets at fair value | 931,141 | 2,835,938 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3 | 3 |
Other assets | 0 | 0 |
Total assets at fair value | 3 | 3 |
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 |
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions |
Apr. 02, 2022 |
Jul. 03, 2021 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 11.9 | $ 13.3 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 11.1 | $ 11.1 |
MARKETABLE SECURITIES - Available-For-Sale Debt Securities Held To Actual Maturity (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Jul. 03, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Due in one year or less | $ 3,025,000 | ||
Due after one year through five years | 83,747,000 | ||
Due after five years through ten years | 35,593,000 | ||
Amortized Cost Basis | 122,365,000 | $ 129,690,000 | |
Realized gain (loss) | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) |
Apr. 02, 2022
USD ($)
|
---|---|
Senior Notes, 3.55% Due 2025 | Senior Notes | |
Derivative [Line Items] | |
Interest rate | 3.55% |
Senior Notes, 5.65% Due 2021 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 23,100,000 |
Senior Notes, 3.55% Due 2021 | |
Derivative [Line Items] | |
Derivative, Notional Amount | 500,000,000 |
Senior Notes, 3.55% Due 2025 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 500,000,000 |
DERIVATIVE FINANCIAL INSTRUMENTS - Outstanding Swap Agreements (Details) - 9 months ended Apr. 02, 2022 |
EUR (€)
gal
|
SEK (kr) |
GBP (£) |
---|---|---|---|
Hedging of interest rate risk, June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | € 500,000,000 | ||
Hedging of foreign currency risk Various (January 2022 to April 2022) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | kr 272,000,000 | £ 24,000,000 | |
Hedging of foreign currency risk euro , June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | € 500,000,000 | ||
Fuel swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount (in gallons) | gal | 58,000,000 |
DERIVATIVE FINANCIAL INSTRUMENTS - Location and Effect of Derivative Instruments and Related Hedged Items (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Derivative [Line Items] | ||||
Interest expense | $ 124,018 | $ 145,773 | $ 495,131 | $ 438,988 |
Interest expense | (1,938) | (9,737) | (13,830) | (34,306) |
Decrease in fair value of debt | (3,594) | (11,834) | (42,841) | (22,612) |
Hedging Instrument | Fair Value Hedges | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Hedged items | 1,656 | 2,097 | 29,011 | (11,694) |
Derivatives designated as hedging instruments | $ (4,628) | $ (6,239) | $ (52,491) | $ (3,078) |
DERIVATIVE FINANCIAL INSTRUMENTS - Location of Hedged Liabilities (Details) - Long-term debt - USD ($) $ in Thousands |
Apr. 02, 2022 |
Jul. 03, 2021 |
---|---|---|
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (568,436) | $ (1,065,364) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ (376) | $ (43,217) |
DEBT - Senior Notes (Details) - Senior Notes |
Dec. 14, 2021
USD ($)
|
---|---|
Debt [Line Items] | |
Principal amount of notes | $ 1,250,000,000 |
Senior Notes Due 2031 | |
Debt [Line Items] | |
Principal amount of notes | $ 450,000,000 |
Interest rate | 2.45% |
Debt Instrument Issuance Percentage of Par | 99.578% |
Senior Notes Due 2051 | |
Debt [Line Items] | |
Principal amount of notes | $ 800,000,000 |
Interest rate | 3.15% |
Debt Instrument Issuance Percentage of Par | 99.308% |
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Numerator: | ||||
Net earnings | $ 303,325 | $ 88,927 | $ 848,779 | $ 373,116 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 508,368,159 | 511,110,670 | 510,642,876 | 510,081,610 |
Dilutive effect of share-based awards (in shares) | 3,870,364 | 3,474,459 | 3,555,904 | 2,607,285 |
Weighted-average diluted shares outstanding (in shares) | 512,238,523 | 514,585,129 | 514,198,780 | 512,688,895 |
Basic earnings per share (in dollars per share) | $ 0.60 | $ 0.17 | $ 1.66 | $ 0.73 |
Diluted earnings per share (in dollars per share) | $ 0.59 | $ 0.17 | $ 1.65 | $ 0.73 |
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 1,105 | 1,893 | 1,731 | 4,763 |
OTHER COMPREHENSIVE INCOME - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Comprehensive income | $ 240,579,000 | $ 124,650,000 | $ 698,539,000 | $ 731,551,000 |
Realized gain (loss) | $ 0 | $ 0 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2022 |
Mar. 27, 2021 |
Apr. 02, 2022 |
Mar. 27, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 21.31% | 13.54% | 23.18% | 15.72% |
Impact of excess tax benefits of equity-based compensation | $ 7.9 | $ 6.0 | $ 10.8 | $ 12.6 |
Impact of corporate owned life insurance policies | 0.4 | 1.4 | ||
Increase in reserve for uncertain tax positions | 12.0 | |||
Tax benefit attributable to the sale of stock | 7.6 | |||
Impact of changes in tax law | $ 5.5 | |||
Unrecognized tax benefits | 32.4 | 32.4 | ||
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 5.4 | $ 5.4 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-02 [Member] |
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