Income Taxes (Tables)

12 Months Ended

Jul. 02, 2016

Income Tax Disclosure [Abstract]

Earnings before income taxes by jurisdiction table

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

	2016		2015		2014
	(In thousands)
U.S.	$	1,225,142	$	818,244	$	1,287,371
Foreign	207,865		189,903		188,253
Total	$	1,433,007	$	1,008,147	$	1,475,624

Income tax provision by jurisdiction table

The income tax provision / (benefit) for each fiscal year consists of the following:

	2016		2015			2014
	(In thousands)
U.S. federal income taxes	$	429,658	$	285,807		$	433,795
State and local income taxes	34,032		(2,737		)	55,736
Foreign income taxes	19,695		38,304			54,560
Total	$	483,385	$	321,374		$	544,091

Income tax provision by component table

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

	2016		2015			2014
	(In thousands)
Current	$	385,183	$	327,639		$	574,760
Deferred	98,202		(6,265		)	(30,669		)
Total	$	483,385	$	321,374		$	544,091

Components of deferred tax assets and liabilities table

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

	July 2, 2016		June 27, 2015
	(In thousands)
Deferred tax assets:
Net operating loss state tax carryforwards	$	66,471	$	47,958
Benefit on unrecognized tax benefits	12,842		16,270
Pension	453,394		264,780
Share-based compensation	43,698		42,569
Deferred compensation	38,840		35,573
Self-insured liabilities	67,050		65,617
Receivables	41,574		38,410
Inventory	24,138		68,186
Cash flow hedge	7,421		74,900
Foreign currency remeasurement losses and currency hedge	47,632		—
Other	29,550		29,667
Total deferred tax assets	832,610		683,930
Deferred tax liabilities:
Excess tax depreciation and basis differences of assets	346,900		381,875
Goodwill and intangible assets	254,202		224,943
Other	51,130		23,449
Total deferred tax liabilities	652,232		630,267
Total net deferred tax assets	$	180,378	$	53,663

Tax rate reconciliation table

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

	2016		2015		2014
U.S. statutory federal income tax rate	35.00	%	35.00	%	35.00	%
State and local income taxes, net of any applicable federal income tax benefit	1.79		0.91		2.82
Foreign tax rate differential	(2.40	)	(2.84	)	(1.66	)
Uncertain Tax Position (1)	(1.96	)	—		—
Other	1.30		(1.19	)	0.71
	33.73	%	31.88	%	36.87	%

⁽¹⁾ Uncertain tax positions are included within "Other" for fiscal 2015 and 2014.

Reconciliation of unrecognized tax benefits table

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

	2016			2015
	(In thousands)
Unrecognized tax benefits at beginning of year	$	37,546		$	49,180
Additions for tax positions related to prior years	142			797
Reductions for tax positions related to prior years	(12,932		)	(8,001		)
Reductions due to settlements with taxing authorities	(142		)	(4,430		)
Unrecognized tax benefits at end of year	$	24,614		$	37,546