INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Earnings before income taxes by jurisdiction table

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

	2018		2017		2016
	(In thousands)
U.S.	$	1,765,793	$	1,569,073	$	1,225,142
Foreign	190,431		197,157		207,865
Total	$	1,956,224	$	1,766,230	$	1,433,007

Income tax provision by jurisdiction table

The income tax provision for each fiscal year consists of the following:

	2018		2017		2016
	(In thousands)
U.S. federal income taxes	$	399,254	$	534,266	$	429,658
State and local income taxes	62,670		69,913		34,032
Foreign income taxes	63,534		19,548		19,695
Total	$	525,458	$	623,727	$	483,385

Income tax provision by component table

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

	2018		2017			2016
	(In thousands)
Current	$	337,550	$	675,573		$	389,514
Deferred	187,908		(51,846		)	93,871
Total	$	525,458	$	623,727		$	483,385

Components of deferred tax assets and liabilities table

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

	Jun. 30, 2018			Jul. 1, 2017
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	226,274		$	194,287
Pension	115,361			360,864
Share-based compensation	34,486			48,077
Deferred compensation	29,512			39,830
Self-insured liabilities	—			84,401
Receivables	13,001			30,842
Inventory	14,728			21,332
Foreign currency remeasurement losses and currency hedge	15,796			13,221
Other	33,386			54,619
Deferred tax assets before valuation allowances	482,544			847,473
Valuation allowances	(123,237		)	(114,151		)
Total deferred tax assets	359,307			733,322
Deferred tax liabilities:
Excess tax depreciation and basis differences of assets	180,950			247,510
Goodwill and intangible assets	373,041			455,340
Other	40,774			49,654
Total deferred tax liabilities	594,765			752,504
Total net deferred tax assets / (liabilities)	$	(235,458	)	$	(19,182	)

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:

	2018		2017		2016
U.S. statutory federal income tax rate	28.00	%	35.00	%	35.00	%
State and local income taxes, net of any applicable federal income tax benefit	2.48		2.61		1.79
Foreign income taxes	0.07		(2.81	)	(2.40	)
Uncertain tax position	(0.22	)	0.01		(1.96	)
Tax benefit of equity-based compensation	(2.66	)	—		—
Impact of US Tax Reform	0.13		—		—
Other	(0.95	)	0.50		1.30
Effective income tax rate	26.85	%	35.31	%	33.73	%

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:

	2018			2017
	(In thousands)
Unrecognized tax benefits at beginning of year	$	16,278		$	24,614
Additions for tax positions related to prior years	652			648
Reductions for tax positions related to prior years	(4,033		)	(2,147		)
Reductions due to settlements with taxing authorities	(702		)	(6,837		)
Unrecognized tax benefits at end of year	$	12,195		$	16,278