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DEBT AND OTHER FINANCING ARRANGEMENTS
 12 Months Ended
Jul. 02, 2022
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block] DEBT AND OTHER FINANCING ARRANGEMENTS
Sysco’s debt consists of the following:
 Jul. 2, 2022Jul. 3, 2021
 (In thousands)
Senior notes, interest at 2.60%, maturing in fiscal 2022 (1)(2)
$— $449,180 
Senior notes, interest at 1.25%, maturing in fiscal 2023 (1)(2)
517,790 598,253 
Senior notes, interest at 3.55%, maturing in fiscal 2025 (1)(2)
— 533,681 
Senior notes, interest at 3.65%, maturing in fiscal 2025 (1)
385,768 402,589 
Senior notes, interest at 5.65%, maturing in fiscal 2025 (1)(2)
— 746,186 
Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2)
748,595 748,165 
Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2)
995,864 994,916 
Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3)
43,174 43,173 
Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2)
745,617 744,827 
Debentures, interest at 6.50%, maturing in fiscal 2029 (2)
154,957 154,882 
Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2)
496,184 495,728 
Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2)
992,617 991,833 
Senior notes, interest at 2.45%, maturing in fiscal 2032 (1)(2)
445,316 — 
Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2)
382,446 382,319 
Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2)
199,280 199,088 
Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2)
349,757 349,564 
Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2)
496,334 496,177 
Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2)
494,602 494,469 
Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2)
492,966 492,813 
Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2)
494,681 494,554 
Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2)
1,176,653 1,176,415 
Senior notes, interest at 3.15%, maturing in fiscal 2052 (1)(2)
787,081 — 
Notes payable, capital leases, and other debt, interest averaging 3.52% and maturing at various dates to fiscal 2051 as of July 2, 2022, and 4.40% and maturing at various dates to fiscal 2050 as of July 3, 2021
247,860 94,295 
Total debt10,647,542 11,083,107 
Less current maturities of long-term debt(580,611)(494,923)
Net long-term debt$10,066,931 $10,588,184 
(1)
Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption.
(2)
Represents senior notes, debentures and borrowings under the company’s long-term revolving credit facility that are guaranteed by certain wholly owned U.S. Broadline subsidiaries of Sysco Corporation as discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”
(3)
This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity.
As of July 2, 2022, the principal and interest payments required to be made during the next five fiscal years on Sysco’s senior notes and debentures are shown below:
 Principal
Interest (1)
(In thousands)
2023$521,398 $450,364 
2024— 441,714 
2025386,877 441,683 
2026750,000 414,011 
20271,043,176 383,449 
(1)
Includes payments on floating rate debt based on rates as of July 2, 2022, assuming amount remains unchanged until maturity, and payments on fixed rate debt based on maturity dates. The impact of our outstanding fixed-to-floating interest rate swap on the fixed rate debt interest payments is included as well based on the floating rates in effect as of July 2, 2022.

On April 29, 2022, Sysco entered into a long-term revolving credit facility to replace its previous $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. The new revolving credit facility expires on April 29, 2027. As of July 2, 2022, there were no borrowings outstanding under this facility.

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 July 2, 2022, there were no commercial paper issuances outstanding under this program.

Purchases and redemptions of senior notes and debentures

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 decrease 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:

Maturity DatePar Value
(in millions)		Coupon RatePricing
(percentage of par)
December 14, 2031 (the 2031 Notes)$450 2.45 %99.578 %
December 14, 2051 (the 2051 Notes)800 3.15 99.308 

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 is 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.

In June 2022, Sysco repaid 2.60% senior notes totaling $450 million at maturity using cash flow from operations.

As of July 2, 2022 and July 3, 2021, letters of credit outstanding were $202.9 million and $246.5 million, respectively.