INCOME TAXES (Tables)

12 Months Ended

Jul. 01, 2017

Income Tax Disclosure [Abstract]

Earnings before income taxes by jurisdiction table

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

	2017		2016		2015
	(In thousands)
U.S.	$	1,569,073	$	1,225,142	$	818,244
Foreign	197,157		207,865		189,903
Total	$	1,766,230	$	1,433,007	$	1,008,147

Income tax provision by jurisdiction table

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

	2017		2016		2015
	(In thousands)
U.S. federal income taxes	$	534,266	$	429,658	$	285,807
State and local income taxes	69,913		34,032		(2,737		)
Foreign income taxes	19,548		19,695		38,304
Total	$	623,727	$	483,385	$	321,374

Income tax provision by component table

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

	2017			2016		2015
	(In thousands)
Current	$	675,573		$	389,514	$	326,079
Deferred	(51,846		)	93,871		(4,705		)
Total	$	623,727		$	483,385	$	321,374

Components of deferred tax assets and liabilities table

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

	Jul. 1, 2017			Jul. 2, 2016
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	194,287		$	66,471
Benefit on unrecognized tax benefits	9,218			12,842
Pension	360,864			453,394
Share-based compensation	48,077			43,698
Deferred compensation	39,830			38,840
Self-insured liabilities	84,401			67,050
Receivables	30,842			41,574
Inventory	21,332			24,138
Cash flow hedge	8,748			7,421
Foreign currency remeasurement losses and currency hedge	13,221			47,632
Other	36,653			29,550
Deferred tax assets before valuation allowances	847,473			832,610
Valuation allowances	(114,151		)	—
Total deferred tax assets	733,322			832,610
Deferred tax liabilities:
Excess tax depreciation and basis differences of assets	247,510			346,900
Goodwill and intangible assets	455,340			254,202
Other	49,654			51,130
Total deferred tax liabilities	752,504			652,232
Total net deferred tax assets / (liabilities)	$	(19,182	)	$	180,378

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:

	2017		2016		2015
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	2.61		1.79		0.91
Foreign tax rate differential	(2.81	)	(2.40	)	(2.84	)
Uncertain tax position (1)	0.01		(1.96	)	—
Other	0.50		1.30		(1.19	)
Effective income tax rate	35.31	%	33.73	%	31.88	%

⁽¹⁾  Uncertain tax positions are included within “Other” for fiscal 2015

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:

	2017			2016
	(In thousands)
Unrecognized tax benefits at beginning of year	$	24,614		$	37,546
Additions for tax positions related to prior years	648			142
Reductions for tax positions related to prior years	(2,147		)	(12,932		)
Reductions due to settlements with taxing authorities	(6,837		)	(142		)
Unrecognized tax benefits at end of year	$	16,278		$	24,614