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COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jul. 02, 2022

Schedule of defined benefit plans funded status

The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. As Sysco’s fiscal 2022 year end is July 2, 2022, the company utilized a practical expedient permitting Sysco to measure its defined benefit plan assets and obligations as of the month end closest to the fiscal year end, and has used June 30, 2022 as the measurement date of the plan assets and obligations disclosed herein.


	U.S. Pension Benefits				International Pension Benefits
	Jul. 2, 2022		Jul. 3, 2021		Jul. 2, 2022		Jul. 3, 2021
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	5,000,998	$	5,039,718	$	434,451	$	414,106
Service cost	13,490		16,472		3,101		3,288
Interest cost	152,401		145,299		7,456		6,810

Curtailments	—		—		(1,291)		(1,333)


Actuarial gain, net	(1,081,865)		(47,197)		(93,717)		(19,495)
Total disbursements	(164,352)		(153,294)		(13,882)		(15,480)
Exchange rate changes	—		—		(47,595)		46,555
Benefit obligation at end of year	3,920,672		5,000,998		288,523		434,451
Change in plan assets:
Fair value of plan assets at beginning of year	4,654,763		4,408,739		319,616		288,191
Actual return on plan assets	(888,805)		365,251		(48,710)		4,250
Employer contribution	31,561		34,067		21,220		7,892
Total disbursements	(164,352)		(153,294)		(13,882)		(15,480)
Exchange rate changes	—		—		(36,360)		34,763
Fair value of plan assets at end of year	3,633,167		4,654,763		241,884		319,616
Funded status at end of year	$	(287,505)	$	(346,235)	$	(46,639)	$	(114,835)

Schedule of defined benefit plans amounts recognized in balance sheet

The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows:


	U.S. Pension Benefits				International Pension Benefits
	Jul. 2, 2022		Jul. 3, 2021		Jul. 2, 2022		Jul. 3, 2021
	(In thousands)
Noncurrent assets (Other assets)	$	94,934	$	124,453	$	5,116	$	—
Current accrued benefit liability (Accrued expenses)	(31,969)		(31,733)		(1,399)		(1,479)
Noncurrent accrued benefit liability (Other long-term liabilities)	(350,470)		(438,955)		(50,356)		(113,356)
Net amount recognized	$	(287,505)	$	(346,235)	$	(46,639)	$	(114,835)

Schedule of defined benefit plans amounts recognized in accumulated other comprehensive loss (income)

Accumulated other comprehensive loss (income) as of July 2, 2022 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Prior service cost	$	54	$	1,103	$	1,157
Actuarial losses (gains)	1,417,073		(18,768)		1,398,305
Total	$	1,417,127	$	(17,665)	$	1,399,462

Accumulated other comprehensive loss (income) as of July 3, 2021 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Prior service cost	$	447	$	1,130	$	1,577
Actuarial losses	1,438,775		16,026		1,454,801
Total	$	1,439,222	$	17,156	$	1,456,378

Schedule of defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets

Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows:


	U.S. Pension Benefits (1)				International Pension Benefits (2)
	Jul. 2, 2022		Jul. 3, 2021		Jul. 2, 2022		Jul. 3, 2021
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	382,334	$	470,511	$	46,895	$	427,028
Fair value of plan assets at end of year	—		—		263		319,616


(1)			Information under Pension Benefits as of July 2, 2022 and July 3, 2021 includes both the U.S. Retirement Plan and the SERP.
(2)			U.K. Retirement Plan fair value of plan assets exceeded the accumulated benefit obligation/aggregate benefit obligation as of July 2, 2022

Schedule of defined benefit plans components of net benefit cost

The components of net company-sponsored pension costs for each fiscal year are as follows:


	2022				2021				2020
	U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits
	(In thousands)
Service cost	$	13,490	$	3,101	$	16,472	$	3,288	$	15,531	$	2,800
Interest cost	152,401		7,456		145,299		6,810		164,756		8,681
Expected return on plan assets	(206,320)		(9,770)		(206,406)		(7,426)		(196,249)		(10,819)
Amortization of prior service cost (credit)	393		(43)		729		(61)		7,537		597
Amortization of actuarial loss	34,961		92		42,288		250		39,483		157
Curtailment gain	—		(1,003)		—		(1,230)		—		(4,166)

Net pension (benefits) costs	$	(5,075)	$	(167)	$	(1,618)	$	1,631	$	31,058	$	(2,750)

Schedule of defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows:


	2022				2021				2020
	U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits
	(In thousands)
Amortization of prior service cost (credit)	$	393	$	(129)	$	729	$	(131)	$	7,537	$	422
Amortization of actuarial loss	34,961		92		42,288		250		39,483		157
Prior service cost (credit) arising in current year	—		—		—		—		2,077		(661)
Effect of exchange rates on amounts in AOCI	—		(752)		—		(3,254)		—		784
Actuarial gain (loss) arising in current year	(13,259)		35,610		192,041		16,493		(127,048)		3,640
Net pension income (cost)	$	22,095	$	34,821	$	235,058	$	13,358	$	(77,951)	$	4,342

Schedule of defined benefit plans amounts included accumulated other comprehensive loss (income) that are expected to be recognized in net company-sponsored benefit cost in next fiscal year

Amounts included in accumulated other comprehensive loss (income) as of July 2, 2022 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2023 are:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Amortization of prior service cost (credit)	$	393	$	(42)	$	351
Amortization of actuarial losses (gains)	38,192		(396)		37,796
Total	$	38,585	$	(438)	$	38,147

Schedule of defined benefit plans estimated future benefit payments

Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows:


	U.S. Pension Benefits		International Pension Benefits
	(In thousands)
2023	$	183,621	$	11,839
2024	193,128		12,224
2025	202,671		13,481
2026	212,549		13,493
2027	221,816		14,238
Subsequent five years	1,213,670		75,605

Schedule of defined benefit plans weighted average assumptions used in calculating net periodic benefit costs

Weighted-average assumptions used to determine benefit obligations as of year-end were:


	Jul. 2, 2022		Jul. 3, 2021
Discount rate — U.S. Retirement Plan	4.91	%	3.12	%
Discount rate — SERP	4.84		2.91
Discount rate — U.K. Retirement Plan	3.65		1.90
Rate of compensation increase — U.S. Retirement Plan	3.00		2.56

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


	2022		2021		2020
Discount rate — U.S. Retirement Plan	3.12	%	2.94	%	3.70	%
Discount rate — SERP	2.91		2.91		3.62
Discount rate — U.K. Retirement Plan	1.90		1.60		2.30

Expected rate of return — U.S. Retirement Plan	4.50		4.75		5.00
Expected rate of return — U.K. Retirement Plan	3.30		2.55		4.55
Rate of compensation increase — U.S. Retirement Plan	2.56		2.56		2.56

Schedule of defined benefit plans target and actual asset allocation

The U.S. Retirement Plan’s target and actual investment allocation as of July 2, 2022 is as follows:


	U.S. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Growth assets	30	%	28	%




Liability hedging assets	70		72
			100	%

The U.K. Retirement Plan’s target investment allocation and actual investment allocation for fiscal 2022 is as follows:


	U.K. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Common contractual fund	40	%	45	%
Liability hedging assets	60		55
			100	%

Schedule of defined benefit plans fair value of plans assets by major category

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of July 2, 2022:


	Assets Measured at Fair Value as of Jul. 2, 2022
	Level 1		Level 2		Level 3		Measured at NAV (6)		Total
	(In thousands)
Cash and cash equivalents	$	88,962	$	30,365	$	—	$	—	$	119,327
Growth assets:
U.S. equity (1)	20,894		25,508		—		257,711		304,113
International equity (1)	166		—		—		241,209		241,375
Hedge fund of funds (2)	—		—		—		276,844		276,844
Real estate funds (3)	—		—		—		116,638		116,638
Private equity funds (4)	—		—		—		87,140		87,140
Liability hedging assets:

Corporate bonds	—		1,792,891		—		71,151		1,864,042
U.S. government and agency securities	—		345,333		—		265,094		610,427
Other (5)	—		13,261		—		—		13,261


Total investments at fair value	$	110,022	$	2,207,358	$	—	$	1,315,787	$	3,633,167


(1)			Includes direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of July 2, 2022. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.
(2)			There were no unfunded commitments as of July 2, 2022, and there were no redemption restrictions as of July 2, 2022. The investment may be redeemed once per quarter.
(3)			For investments in the funds listed in this category, total unfunded commitment as of July 2, 2022 was $2.0 million. Less than 1% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2022 to 2026. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits.
(4)			Total unfunded commitments in the funds listed in this category as of July 2, 2022 were $15.9 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2022 to 2031.
(5)			Includes foreign government and state and municipal debt securities.
(6)			Includes certain investments that are measured at fair value using the NAV practical expedient that have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of July 2, 2022:


	Assets Measured at Fair Value as of Jul. 2, 2022
	Level 1		Level 2		Level 3		Measured at NAV (3)		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	5,451	$	38,537	$	—	$	—	$	43,988
Corporate bonds	—		25,544		—		—		25,544
U.K. government securities	—		75,125		—		—		75,125
International government securities	—		10,214		—		—		10,214
Derivative assets (liabilities), net (1)	—		(22,947)		—		—		(22,947)

Investment funds:
Common contractual fund (2)	—		—		—		109,831		109,831
Total investments at fair value	$	5,451	$	126,473	$	—	$	109,831	$	241,755


(1)			Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $8.0 million; the fair value of liability positions totaled $30.9 million.
(2)			There were $11.2 million of unfunded commitments as of July 2, 2022, and there were no redemption restrictions as of July 2, 2022. The investment may be redeemed twice per month.
(3)			Includes certain investments that are measured at fair value using the NAV practical expedient that have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of July 3, 2021:


	Assets Measured at Fair Value as of Jul. 3, 2021
	Level 1		Level 2		Level 3		Measured at NAV (6)		Total
	(In thousands)
Cash and cash equivalents	$	48,581	$	76,854	$	—	$	—	$	125,435
Growth assets:
U.S. equity (1)	—		95,300		—		414,081		509,381
International equity (1)	—		—		—		393,768		393,768
Hedge fund of funds (2)	—		—		—		278,400		278,400
Real estate funds (3)	—		—		—		90,738		90,738
Private equity funds (4)	—		—		—		99,320		99,320

Liability hedging assets:
Corporate bonds	—		2,245,713		—		102,318		2,348,031
U.S. government and agency securities	—		305,111		—		475,394		780,505
Other (5)	—		29,185		—		—		29,185



Total investments at fair value	$	48,581	$	2,752,163	$	—	$	1,854,019	$	4,654,763


(1)			Includes direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of July 3, 2021. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.
(2)			There were no unfunded commitments as of July 3, 2021, and there were no redemption restrictions as of July 3, 2021. The investment may be redeemed once per quarter.
(3)			For investments in the funds listed in this category, total unfunded commitment as of July 3, 2021 was $2.0 million. Approximately 3% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2021 to 2026. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits.
(4)			Total unfunded commitment as of July 3, 2021 was $16.1 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2021 to 2031.
(5)			Includes foreign government and state and municipal debt securities.
(6)			Includes certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of July 3, 2021:


	Assets Measured at Fair Value as of Jul. 3, 2021
	Level 1		Level 2		Level 3		Measured at NAV (3)		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	20,390	$	9,269	$	—	$	—	$	29,659
U.K. government securities	—		129,521		—		—		129,521
Derivatives, net (1)	—		252		—		—		252

Investment funds:
Common contractual fund (2)	—		—		—		160,184		160,184
Total investments at fair value	$	20,390	$	139,042	$	—	$	160,184	$	319,616


(1)			Includes interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $5.7 million; the fair value of liability positions totaled $5.4 million.
(2)			There were $12.9 million of unfunded commitments as of July 3, 2021, and there were no redemption restrictions as of July 3, 2021. The investment may be redeemed once per week.
(3)			Includes certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.