Company-Sponsored Employee Benefit Plans (Tables)

12 Months Ended

Jul. 02, 2016

Compensation and Retirement Disclosure [Abstract]

Defined benefit plans funded status table

The caption “Pension Benefits” in the tables below includes both the Retirement Plan and the SERP.



	Pension Benefits						Other Postretirement Plans
	July 2, 2016			June 27, 2015			July 2, 2016			June 27, 2015
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	3,679,127		$	3,671,708		$	13,016		$	12,611
Service cost	11,815			11,263			547			536
Interest cost	174,602			171,120			622			590
Amendments	—			914			—			—
Actuarial (gain) loss, net	517,070			(86,129		)	(1,348		)	(1,050		)
Total disbursements ⁽¹⁾	(97,838		)	(89,749		)	608			329
Benefit obligation at end of year	4,284,776			3,679,127			13,445			13,016
Change in plan assets:
Fair value of plan assets at beginning of year	3,003,128			2,937,519			—			—
Actual return on plan assets	52,268			80,225			—			—
Employer contribution ⁽¹⁾	157,482			75,133			(608		)	(329		)
Total disbursements ⁽¹⁾	(97,838		)	(89,749		)	608			329
Fair value of plan assets at end of year	3,115,040			3,003,128			—			—
Funded status at end of year	$	(1,169,736	)	$	(675,999	)	$	(13,445	)	$	(13,016	)

⁽¹⁾ Other Postretirement Plan amounts are the net of participant paid premiums and company paid claims.

Defined benefit plans amounts recognized in balance sheet table

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



	Pension Benefits						Other Postretirement Plans
	July 2, 2016			June 27, 2015			July 2, 2016			June 27, 2015
	(In thousands)
Current accrued benefit liability (Accrued expenses)	$	(29,480	)	$	(27,942	)	$	(300	)	$	(327	)
Non-current accrued benefit liability (Other long-term liabilities)	(1,140,256		)	(648,057		)	(13,145		)	(12,689		)
Net amount recognized	$	(1,169,736	)	$	(675,999	)	$	(13,445	)	$	(13,016	)

Defined benefit plans amounts recognized in accumulated other comprehensive loss (income) table

Accumulated other comprehensive loss (income) as of July 2, 2016 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:



	Pension Benefits		Other Postretirement Plans			Total
	(In thousands)
Prior service cost	$	38,907	$	562		$	39,469
Actuarial losses (gains)	1,760,556		(7,769		)	1,752,787
Total	$	1,799,463	$	(7,207	)	$	1,792,256

Accumulated other comprehensive loss (income) as of June 27, 2015 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:



	Pension Benefits		Other Postretirement Plans			Total
	(In thousands)
Prior service cost	$	50,109	$	730		$	50,839
Actuarial losses (gains)	1,101,051		(6,903		)	1,094,148
Total	$	1,151,160	$	(6,173	)	$	1,144,987

Defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets table

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



	Pension Benefits ⁽¹⁾				Other Postretirement Plans
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	4,272,547	$	3,667,031	$	13,445	$	13,016
Fair value of plan assets at end of year	3,115,040		3,003,128		—		—

⁽¹⁾ Information under Pension Benefits as of July 2, 2016 and June 27, 2015 includes both the Retirement Plan and the SERP.

Defined Benefit Plan Disclosure [Line Items]

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 table

Amounts included in accumulated other comprehensive loss (income) as of July 2, 2016 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2016 are:



	Pension Benefits		Other Postretirement Plans			Total
	(In thousands)
Amortization of prior service cost	$	11,202	$	168		$	11,370
Amortization of actuarial losses (gains)	41,511		(559		)	40,952
Total	$	52,713	$	(391	)	$	52,322

Defined benefit plans estimated future benefit payments table

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



	Pension Benefits		Other Postretirement Plans
	(In thousands)
2017	$	116,129	$	300
2018	125,709		578
2019	135,790		887
2020	146,513		1,105
2021	157,163		1,240
Subsequent five years	942,907		6,437

Defined benefit plans weighted average assumptions used in calculating net periodic benefit costs table

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



	2016		2015		2014
Discount rate — Retirement Plan	4.84	%	4.74	%	5.32	%
Discount rate — SERP	4.63	%	4.59	%	4.94	%
Discount rate — Other Postretirement Plans	4.84	%	4.74	%	5.32	%
Expected rate of return — Retirement Plan	7.25	%	7.75	%	7.75	%
Rate of compensation increase — Retirement Plan	3.89	%	3.89	%	3.89	%

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



	July 2, 2016		June 27, 2015
Discount rate — Retirement Plan	4.07	%	4.84	%
Discount rate — SERP	3.91		4.63
Discount rate — Other Postretirement Plans	4.07		4.84
Rate of compensation increase — Retirement Plan	2.62		3.89

Pension Benefits

Defined Benefit Plan Disclosure [Line Items]

Defined benefit plans components of net benefit cost table

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



	Pension Benefits
	2016			2015			2014
	(In thousands)
Service cost	$	11,815		$	11,263		$	9,657
Interest cost	174,602			171,120			160,436
Expected return on plan assets	(216,888		)	(228,624		)	(192,795		)
Amortization of prior service cost	11,201			11,111			11,145
Amortization of actuarial loss	22,186			19,871			16,327
Net pension (benefits) costs	$	2,916		$	(15,259	)	$	4,770

Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table

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:



	Pension Benefits
	2016			2015			2014
	(In thousands)
Amortization of prior service cost	$	11,202		$	11,111		$	11,145
Amortization of actuarial loss	22,186			19,871			16,327
Prior service cost arising in current year	—			(914		)	347
Actuarial (loss) gain arising in current year	(681,691		)	(62,270		)	(210,978		)
Net pension costs	$	(648,303	)	$	(32,202	)	$	(183,159	)

Other Postretirement Plans

Defined Benefit Plan Disclosure [Line Items]

Defined benefit plans components of net benefit cost table

The components of other postretirement benefit costs for each fiscal year are as follows:



	Other Postretirement Plans
	2016			2015			2014
	(In thousands)
Service cost	$	547		$	536		$	546
Interest cost	622			590			748
Amortization of prior service cost	168			168			168
Amortization of actuarial gain	(481		)	(434		)	(143		)
Net other postretirement benefit costs	$	856		$	860		$	1,319

Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table

Other changes in benefit obligations recognized in other comprehensive (loss) income related to other postretirement plans for each fiscal year are as follows:



	Other Postretirement Plans
	2016			2015			2014
	(In thousands)
Amortization of prior service cost	$	168		$	168		$	168
Amortization of actuarial gain	(481		)	(434		)	(143		)
Actuarial (loss) gain arising in current year	1,348			1,050			3,280
Net pension costs	$	1,035		$	784		$	3,305

Retirement Plan

Defined Benefit Plan Disclosure [Line Items]

Defined benefit plans target and actual asset allocation table

The company’s target and actual investment allocation as of July 2, 2016 is as follows:



	Target Asset Allocation		Actual Asset Allocation
U.S. equity	24	%	25	%
International equity	24		23
Long duration fixed income	27		27
High yield & emerging markets	7		7
Alternative investments	18		18
			100	%

Defined benefit plans fair value of plans assets by major category table

The following table presents the fair value of the Retirement Plan’s assets by major asset category as of July 2, 2016:



	Assets Measured at Fair Value as of July 2, 2016
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁴⁾		Total
	(In thousands)
Cash and cash equivalents	$	103,974	$	—	$	—	$	—	$	103,974
U.S. equity ⁽¹⁾	451,826		—		—		270,501		722,327
International equity ⁽¹⁾	174,936		—		—		547,719		722,655
Long duration fixed income:
Corporate bonds	—		631,927		—		—		631,927
U.S. government and agency securities	—		179,974		—		—		179,974
Other ⁽²⁾	—		4,246		—		—		4,246
High yield and emerging markets fixed income ⁽³⁾	—		—		—		214,735		214,735
Alternative investment funds
Hedge fund of funds ⁽⁵⁾	—		—		—		309,208		309,208
Real estate funds ⁽⁶⁾	793		—		—		162,108		162,901
Private equity funds ⁽⁷⁾	—		—		—		63,093		63,093
Total investments at fair value	$	731,529	$	816,147	$	—	$	1,567,364	$	3,115,040

⁽¹⁾ Include 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, 2016, and there were no redemption restrictions as of July 2, 2016. Investments in the funds may be redeemed once per day.

⁽²⁾ Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $0.3 million; the fair value of liability positions totaled $0.3 million.

⁽³⁾ There was no unfunded commitments as of July 2, 2016, and there were no redemption restrictions as of July 2, 2016. The investment may be redeemed once per day. The daily maximum withdrawal limitation is greater of $2.0 million or 5% of the asset value.

⁽⁴⁾ Include 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.

⁽⁵⁾ There was no unfunded commitments as of July 2, 2016, and there were no redemption restrictions as of July 2, 2016. The investment may be redeemed once per quarter.

⁽⁶⁾ For investments in the funds listed in this category, total unfunded commitment as of July 2, 2016 was $10.0 million. Approximately 20% of the investments cannot be redeemed but the fund will make distributions through liquidation. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed once per day or once per quarter.

⁽⁷⁾ Total unfunded commitment as of July 2, 2016 was $39.0 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 2016 to 2030.

The following table presents the fair value of the Retirement Plan’s assets by major asset category as of June 27, 2015:



	Assets Measured at Fair Value as of June 27, 2015
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁴⁾		Total
	(In thousands)
Cash and cash equivalents	$	24,322	$	—	$	—	$	—	$	24,322
U.S. equity ⁽¹⁾	391,322		333,710		—		—		725,032
International equity⁽¹⁾	315,148		—		—		421,214		736,362
Long duration fixed income:
Corporate bonds	—		572,100		—		—		572,100
U.S. government and agency securities	—		183,893		—		—		183,893
Other	—		4,343		—		—		4,343
Derivatives, net ⁽²⁾	—		1,078		—		—		1,078
High yield and emerging markets fixed income ⁽³⁾	—		—		—		204,175		204,175
Alternative investments:
Hedge fund of funds ⁽⁵⁾	—		—		—		335,265		335,265
Real estate funds⁽⁶⁾	—		—		—		163,668		163,668
Private equity funds ⁽⁷⁾	—		—		—		52,890		52,890
Total investments at fair value	$	730,792	$	1,095,124	$	—	$	1,177,212	$	3,003,128

⁽¹⁾ Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There were no redemption restrictions as of June 27, 2015. Investments in the funds may be redeemed once per day.

⁽²⁾ Include credit default swaps, interest rate swaps and futures. The fair value of asset positions totaled $1.4 million; the fair value of liability positions totaled $0.3 million.

⁽³⁾ There were no redemption restrictions as of June 27, 2015. The investment may be redeemed once per day. The daily maximum withdrawal limitation is greater of $2.0 million or 5% of the asset value.

⁽⁵⁾ There were no redemption restrictions as of June 27, 2015. The investment may be redeemed once per quarter.

⁽⁶⁾Approximately 23% of the investments cannot be redeemed but the fund will make distributions through liquidation. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed once per day or once per quarter.

⁽⁷⁾ The investments cannot be redeemed but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2016 to 2030.