INCOME TAXES (Tables)

12 Months Ended

Jul. 02, 2022

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes by jurisdiction

For financial reporting purposes, earnings (loss) before income taxes consists of the following:

	2022		2021		2020
	(In thousands)
U.S.	$	1,642,376	$	858,179	$	742,332
Foreign	104,397		(273,451)		(448,948)
Total	$	1,746,773	$	584,728	$	293,384

Schedule of income tax provision by jurisdiction

The income tax provision for each fiscal year consists of the following:

	2022		2021		2020
	(In thousands)
U.S. federal income taxes	$	353,825	$	158,762	$	128,576
State and local income taxes	45,502		17,808		8,529
Foreign income taxes	(11,322)		(116,051)		(59,196)
Total	$	388,005	$	60,519	$	77,909

Schedule of income tax provision by component

The current and deferred components of the income tax provisions for each fiscal year are as follows:

	2022		2021		2020
	(In thousands)
Current	$	452,459	$	218,383	$	269,226
Deferred	(64,454)		(157,864)		(191,317)
Total	$	388,005	$	60,519	$	77,909

Schedule of tax rate reconciliation

Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows:

	2022		2021		2020
U.S. statutory federal income tax rate	21.00	%	21.00	%	21.00	%
State and local income taxes, net of any applicable federal income tax benefit	2.41		2.67		5.69
Foreign income taxes	(1.88)		(9.99)		(2.46)
Uncertain tax positions	0.83		(0.38)		(1.44)
Tax benefit of equity-based compensation	(0.16)		(1.07)		(9.77)
Nondeductible impairment charges	—		—		17.65
Other	0.01		(1.88)		(4.12)
Effective income tax rate	22.21	%	10.35	%	26.55	%

Schedule of components of deferred tax assets and liabilities

Significant components of Sysco’s deferred tax assets and liabilities are as follows:

	Jul. 2, 2022		Jul. 3, 2021
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	652,807	$	613,325
Pension	71,722		111,084
Receivables	43,108		53,688
Deferred compensation	27,984		28,978
Share-based compensation	30,395		26,498
Inventory	24,394		17,983
Operating lease liabilities	161,684		181,425
Other	89,143		115,428
Deferred tax assets before valuation allowances	1,101,237		1,148,409
Valuation allowances	(232,485)		(226,626)
Total deferred tax assets	868,752		921,783
Deferred tax liabilities:
Goodwill and intangible assets	379,018		351,758
Excess tax depreciation and basis differences of assets	150,578		148,418
Operating lease assets	161,163		181,425
Other	50,560		34,725
Total deferred tax liabilities	741,319		716,326
Total net deferred tax assets	$	127,433	$	205,457

Schedule of reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows:

	2022		2021
	(In thousands)
Unrecognized tax benefits at beginning of year	$	20,400	$	23,135
Additions (reductions) for tax positions related to prior years	12,000		(2,735)
Unrecognized tax benefits at end of year	$	32,400	$	20,400