ALLOWANCE FOR CREDIT LOSSES ON TRADE RECEIVABLES

12 Months Ended

Jul. 01, 2023

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

ALLOWANCE FOR CREDIT LOSSES ON TRADE RECEIVABLES

ALLOWANCE FOR CREDIT LOSSES ON TRADE RECEIVABLESSysco determines the past due status of trade receivables based on contractual terms with each customer and evaluates the collectability of accounts receivable to determine an appropriate allowance for credit losses on trade receivables. To calculate an allowance for credit losses, the company estimates uncollectible amounts based on historical loss experience, including those experienced during times of local and regional disasters, current conditions and collection rates, and expectations regarding future losses.

A summary of the activity in the allowance for credit losses on trade receivables appears below:

	2023		2022		2021
	(In thousands)
Balance at beginning of period	$	70,790	$	117,695	$	334,810
Adjustments to costs and expenses	35,655		(15,494)		(152,740)
Customer accounts written off, net of recoveries	(61,964)		(23,823)		(45,230)
Other adjustments	1,118		(7,588)		(19,145)
Balance at end of period	$	45,599	$	70,790	$	117,695

In fiscal 2020, the company experienced an increase in past due trade receivables and recognized additional bad debt charges because of closures among customers stemming from the onset of the COVID-19 pandemic. In fiscal 2021 and 2022, conditions improved and the company’s results reflect a benefit on the reduction of its allowance for these receivable balances, as the company made progress on obtaining payments from its customers.