DEBT AND OTHER FINANCING ARRANGEMENTS

12 Months Ended

Jul. 01, 2023

Debt Disclosure [Abstract]

DEBT AND OTHER FINANCING ARRANGEMENTS

DEBT AND OTHER FINANCING ARRANGEMENTS

	Jul. 1, 2023		Jul. 2, 2022
	(In thousands)
Senior notes, interest at 1.25%, maturing in fiscal 2023 (1)(2)	$	—	$	517,790
Senior notes, interest at 3.65%, maturing in fiscal 2025 (1)	377,107		385,768
Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2)	749,025		748,595
Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2)	996,840		995,864
Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3)	43,174		43,174
Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2)	746,431		745,617
Debentures, interest at 6.50%, maturing in fiscal 2029 (2)	155,032		154,957
Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2)	496,650		496,184
Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2)	993,434		992,617
Senior notes, interest at 2.45%, maturing in fiscal 2032 (1)(2)	445,769		445,316
Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2)	382,572		382,446
Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2)	199,472		199,280
Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2)	349,957		349,757
Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2)	496,491		496,334
Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2)	494,740		494,602
Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2)	493,126		492,966
Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2)	494,811		494,681
Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2)	1,176,902		1,176,653
Senior notes, interest at 3.15%, maturing in fiscal 2052 (1)(2)	787,367		787,081
Plant and equipment financing programs, finance leases, notes payable, and other debt, interest averaging 4.49% and maturing at various dates to fiscal 2052 as of July 1, 2023, and 3.52% and maturing at various dates to fiscal 2052 as of July 2, 2022	531,647		247,860
Total debt	10,410,547		10,647,542
Less current maturities of long-term debt	(62,550)		(580,611)
Net long-term debt	$	10,347,997	$	10,066,931

(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 1, 2023, 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)
2024	$	—	$	441,841
2025	377,815		441,841
2026	750,000		414,011
2027	1,043,176		383,449
2028	750,000		351,670

(1) Includes payments on floating rate debt based on rates as of July 1, 2023, assuming amount remains unchanged until maturity, and payments on fixed rate debt based on maturity dates.

Sysco has a long-term revolving credit facility that includes aggregate commitments of the lenders thereunder of $3.0 billion, with an option to increase such commitments to $4.0 billion. The 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 facility expires on April 29, 2027. As of July 1, 2023, 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 $3.0 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 1, 2023, there were no commercial paper issuances outstanding under this program.

In June 2023, Sysco repaid 1.25% senior notes totaling $549.3 million at maturity using cash flow from operations.

As of July 1, 2023 and July 2, 2022, letters of credit outstanding were $268.4 million and $202.9 million, respectively.