DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of outstanding hedging instruments as of June 30, 2018 are below:



Maturity Date of the Hedging Instrument	Currency / Unit of Measure	Notional Value
		(In millions)
Hedging of interest rate risk
April 2019	U.S. Dollar	500
October 2020	U.S. Dollar	750
July 2021	U.S. Dollar	500
March 2025	U.S. Dollar	500

Hedging of foreign currency risk ⁽¹⁾
June 2019	U.S. Dollar	384
June 2021	U.S. Dollar	44
June 2021	Canadian Dollar	300
July 2021	Canadian Dollar	30
July 2021	British Pound Sterling	234
August 2021	British Pound Sterling	466
June 2023	Euro	500

Hedging of fuel risk
Various (July 2018 to June 2019)	Gallons	46


⁽¹⁾	Foreign currency forward contracts used to hedge against foreign exchange exposures related to inventory purchases are not material to Sysco’s overall hedging portfolio.

Derivatives balance sheet location table

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 30, 2018 are as follows:



	Jun. 30, 2018
	Carrying Amount of Hedged Assets (Liabilities)			Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
	(In thousands)
Balance sheet location:
Current maturities of long-term debt	$	(499,610	)	$	5,097
Long-term debt	(1,743,732		)	47,555

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of June 30, 2018, July 1, 2017 and July 2, 2016 are as follows:



		Derivative Fair Value
	Balance Sheet Location	Jun. 30, 2018		Jul. 1, 2017
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	—	$	707
Interest rate swaps	Other current liabilities	6,820		—
Interest rate swaps	Other long-term liabilities	49,734		21,390

Cash Flow Hedges:
Fuel Swaps	Other current assets	$	15,316	$	717
Foreign currency forwards	Other current assets	693		—
Cross currency swaps	Other current assets	4,284		—
Cross currency swaps	Other assets	3,454		—
Fuel Swaps	Other current liabilities	—		6,160
Foreign currency forwards	Other current liabilities	71		154
Fuel swaps	Other long-term liabilities	—		160
Cross currency swaps	Other long-term liabilities	14,201		5,816

Net Investment Hedges:
Foreign currency swaps	Other assets	$	10,709	$	—
Foreign currency swaps	Other long-term liabilities	39,690		12,308
Foreign denominated debt	Long-term debt	584,150		571,450

Derivatives financial statement performance table

The location and amount of gains or losses recognized in the consolidated results of operations for fair value and cash flow hedging relationships for each of the periods, presented on a pretax basis, are as follows:



	2018
	Cost of Goods Sold		Operating Expense		Interest Expense
	(In thousands)
Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded	$	47,641,933	$	8,756,417	$	395,483
Gain or (loss) on fair value hedging relationships:
Interest contracts:
Hedged items ⁽¹⁾	$	—	$	—	$	(30,418	)
Derivatives designated as hedging instruments	—		—		(39,540		)
Gain or (loss) on cash flow hedging relationships:
Fuel swaps:
Gain or (loss) reclassified from AOCI into income	$	—	$	13,983	$	—
Foreign currency contracts:
Gain or (loss) reclassified from AOCI into income	$	1,776	$	—	$	—
Interest contracts:
Gain or (loss) reclassified from AOCI into income ⁽²⁾	$	—	$	—	$	(11,499	)


⁽¹⁾	The hedged total includes interest expense of $63.5 million and change in fair value of debt of $33.1 million.


⁽²⁾	Losses reclassified from AOCI into income represent amortization of losses on forward starting interest rate swap agreements that were previously settled.

Schedule of location and effect of fair value and cash flow hedge accounting

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal period ended June 30, 2018, presented on a pretax basis, are as follows:



	2018
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives			Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In thousands)				(In thousands)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	21,878		Operating expense	$	13,983
Foreign currency contracts	1,118			Cost of goods sold	1,776
Total	$	22,996			$	15,759

Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(20,584	)	N/A	$	—
Foreign denominated debt	(12,700		)	N/A	—
Total	$	(33,284	)		$	—