10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

Form 10-Q

(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 29, 2018

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-6544

________________

Sysco Corporation

(Exact name of registrant as specified in its charter)

Delaware	74-1648137
(State or other jurisdiction of incorporation or organization)	(IRS employer identification number)
1390 Enclave Parkway
Houston, Texas	77077-2099
(Address of principal executive offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code:

(281) 584-1390

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  ☑    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer  þ	Accelerated Filer ¨
Non-accelerated Filer ¨	Smaller Reporting Company ¨
(Do not check if a smaller reporting company)	Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   

Yes ☐     No ☑

513,462,661 shares of common stock were outstanding as of January 18, 2019.

TABLE OF CONTENTS

	PART I – FINANCIAL INFORMATION	Page No.
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	55
Item 4.	Controls and Procedures	55
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	56
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 3.	Defaults Upon Senior Securities	57
Item 4.	Mine Safety Disclosures	57
Item 5.	Other Information	57
Item 6.	Exhibits	57
Signatures		58

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Sysco Corporation and its Consolidated Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share data)

	Dec. 29, 2018			Jun. 30, 2018			Dec. 30, 2017
	(unaudited)						(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	744,808		$	552,325		$	961,067
Accounts and notes receivable, less allowances of $44,418, $25,768 and $52,588	4,147,367			4,073,723			3,953,643
Inventories, net	3,310,312			3,125,413			3,174,012
Prepaid expenses and other current assets	212,289			187,880			183,446
Income tax receivable	23,007			64,112			—
Total current assets	8,437,783			8,003,453			8,272,168
Plant and equipment at cost, less depreciation	4,375,550			4,521,660			4,366,292
Other long-term assets
Goodwill	3,875,973			3,955,485			4,001,020
Intangibles, less amortization	899,939			979,812			1,056,335
Deferred income taxes	77,191			83,666			92,950
Other assets	527,740			526,328			430,605
Total other long-term assets	5,380,843			5,545,291			5,580,910
Total assets	$	18,194,176		$	18,070,404		$	18,219,370
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Notes payable	$	6,101		$	4,176		$	6,629
Accounts payable	4,230,215			4,136,482			3,745,817
Accrued expenses	1,723,246			1,608,966			1,567,362
Accrued income taxes	4,571			56,793			128,446
Current maturities of long-term debt	786,037			782,329			534,716
Total current liabilities	6,750,170			6,588,746			5,982,970
Long-term liabilities
Long-term debt	8,019,846			7,540,765			8,312,489
Deferred income taxes	233,601			319,124			143,794
Other long-term liabilities	987,566			1,077,163			1,477,991
Total long-term liabilities	9,241,013			8,937,052			9,934,274
Commitments and contingencies
Noncontrolling interest	35,357			37,649			33,524
Shareholders’ equity
Preferred stock, par value $1 per share      Authorized 1,500,000 shares, issued none	—			—			—
Common stock, par value $1 per share      Authorized 2,000,000,000 shares, issued 765,174,900 shares	765,175			765,175			765,175
Paid-in capital	1,465,461			1,383,619			1,361,471
Retained earnings	10,654,711			10,348,628			9,708,261
Accumulated other comprehensive loss	(1,524,407		)	(1,409,269		)	(1,116,028		)
Treasury stock at cost, 251,658,719, 244,533,248 and 243,764,879 shares	(9,193,304		)	(8,581,196		)	(8,450,277		)
Total shareholders’ equity	2,167,636			2,506,957			2,268,602
Total liabilities and shareholders' equity	$	18,194,176		$	18,070,404		$	18,219,370

Note: The June 30, 2018 balance sheet has been derived from the audited financial statements at that date.

See Notes to Consolidated Financial Statements

1

Sysco Corporation and its Consolidated Subsidiaries

CONSOLIDATED RESULTS OF OPERATIONS (Unaudited)

(In thousands, except for share and per share data)

	13-Week Period Ended					26-Week Period Ended
	Dec. 29, 2018		Dec. 30, 2017			Dec. 29, 2018		Dec. 30, 2017
Sales	$	14,765,707	$	14,411,490		$	29,980,986	$	29,061,914
Cost of sales	11,993,995		11,712,104			24,305,489		23,568,860
Gross profit	2,771,712		2,699,386			5,675,497		5,493,054
Operating expenses	2,319,817		2,170,834			4,595,462		4,345,137
Operating income	451,895		528,552			1,080,035		1,147,917
Interest expense	87,113		85,986			176,129		166,870
Other expense (income), net	10,197		(9,162		)	11,329		(17,137		)
Earnings before income taxes	354,585		451,728			892,577		998,184
Income taxes	87,205		167,615			194,155		346,431
Net earnings	$	267,380	$	284,113		$	698,422	$	651,753
Net earnings:
Basic earnings per share	$	0.52	$	0.55		$	1.34	$	1.24
Diluted earnings per share	0.51		0.54			1.33		1.23
Average shares outstanding	517,871,328		521,284,182			519,363,973		524,286,931
Diluted shares outstanding	524,600,510		527,249,587			526,817,501		530,156,510

See Notes to Consolidated Financial Statements

2

Sysco Corporation and its Consolidated Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(In thousands)

	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Net earnings	$	267,380		$	284,113		$	698,422		$	651,753
Other comprehensive income (loss):
Foreign currency translation adjustment	(101,533		)	19,254			(126,460		)	140,584
Items presented net of tax:
Amortization of cash flow hedges	2,155			2,155			4,310			3,925
Change in net investment hedges	26,469			(4,153		)	35,057			(16,177		)
Change in cash flow hedges	(8,784		)	917			(11,792		)	3,118
Amortization of prior service cost	1,600			1,807			3,200			3,291
Amortization of actuarial loss, net	6,529			6,571			13,058			11,968
Actuarial loss, net	—			—			(32,511		)	—
Total other comprehensive (loss) income	(73,564		)	26,551			(115,138		)	146,709
Comprehensive income	$	193,816		$	310,664		$	583,284		$	798,462

See Notes to Consolidated Financial Statements

3

Sysco Corporation and its Consolidated Subsidiaries

CONSOLIDATED CASH FLOWS (Unaudited)

(In thousands)

	26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017
Cash flows from operating activities:
Net earnings	$	698,422		$	651,753
Adjustments to reconcile net earnings to cash provided by operating activities:
Share-based compensation expense	54,199			51,612
Depreciation and amortization	392,413			370,316
Amortization of debt issuance and other debt-related costs	10,814			14,395
Deferred income taxes	(89,098		)	37,005
Provision for losses on receivables	27,647			20,151
Other non-cash items	411			12,986
Additional changes in certain assets and liabilities, net of effect of businesses acquired:
(Increase) decrease in receivables	(137,314		)	99,713
(Increase) in inventories	(204,437		)	(133,374		)
(Increase) in prepaid expenses and other current assets	(31,465		)	(33,484		)
Increase (decrease) in accounts payable	131,715			(286,899		)
Increase (decrease) in accrued expenses	92,100			(21,802		)
(Decrease) increase in accrued income taxes	(11,117		)	120,397
(Increase) in other assets	(21,138		)	(29,508		)
Increase in other long-term liabilities	4,638			59,943
Net cash provided by operating activities	917,790			933,204
Cash flows from investing activities:
Additions to plant and equipment	(223,825		)	(258,577		)
Proceeds from sales of plant and equipment	6,901			3,878
Acquisition of businesses, net of cash acquired	(88		)	(147,644		)
Net cash (used for) investing activities	(217,012		)	(402,343		)
Cash flows from financing activities:
Bank and commercial paper borrowings, net	109,900			630,265
Other debt borrowings	383,163			5,465
Other debt repayments	(16,617		)	(10,368		)
Proceeds from stock option exercises	137,896			172,298
Treasury stock purchases	(739,205		)	(750,532		)
Dividends paid	(379,216		)	(346,920		)
Other financing activities	(6,653		)	(10,136		)
Net cash (used for) financing activities	(510,732		)	(309,928		)
Effect of exchange rates on cash, cash equivalents and restricted cash	(8,904		)	23,510
Net increase in cash, cash equivalents and restricted cash	181,142			244,443
Cash, cash equivalents and restricted cash at beginning of period	715,844			869,502
Cash, cash equivalents and restricted cash at end of period	$	896,986		$	1,113,945
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	158,574		$	136,279
Income taxes	328,574			75,841

See Notes to Consolidated Financial Statements

4

Sysco Corporation and its Consolidated Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Unless this Form 10-Q indicates otherwise or the context otherwise requires, the terms “we,” “our,” “us,” “Sysco,” or “the company” as used in this Form 10-Q refer to Sysco Corporation together with its consolidated subsidiaries and divisions.

1.BASIS OF PRESENTATION

The consolidated financial statements have been prepared by the company, without audit, with the exception of the June 30, 2018 consolidated balance sheet, which was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (our 2018 Form 10-K). The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income and consolidated cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position, results of operations, comprehensive income and cash flows for all periods presented have been made.

These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2018 Form 10-K. Certain footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements.

These financial statements and related notes have been presented in compliance with the Securities and Exchange Commission’s (SEC) Final Rule Release No. 33-10532, Disclosure Update and Simplification, effective for all filings made on or after November 5, 2018. Sysco has complied with all relevant disclosure requirements, with the exception of adding the changes in stockholders’ equity disclosures for interim periods, which for Sysco, is allowed to be first included in its Form 10-Q for the quarter ending March 30, 2019.

Supplemental Cash Flow Information

The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows:

	Dec. 29, 2018		Dec. 30, 2017
	(In thousands)
Cash and cash equivalents	$	744,808	$	961,067
Restricted cash (1)	152,178		152,878
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows	$	896,986	$	1,113,945

⁽¹⁾  Restricted cash as of December 29, 2018 primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in the consolidated balance sheet as of December 29, 2018.

2.CHANGES IN ACCOUNTING

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the period ended December 29, 2018.

5

Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Businesses Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for the period ended December 29, 2018.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $8.9 million in the second quarter of fiscal 2019 and net cost of $17.8 million for the first 26 weeks of fiscal 2019 being reported in other expense (income), net that would have previously been included in operating expense. The ASU was applied retrospectively, resulting in net benefit of $3.7 million in the second quarter of fiscal 2019 and net benefit of $7.5 million for the first 26 weeks of fiscal 2018 being reported in other expense (income), net.

3.NEW ACCOUNTING STANDARDS

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco, with early adoption permitted.

To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company is in the process of gathering lease data, reviewing its lease portfolio, and completing an impact assessment with respect to the adoption of the provisions of the new standard. To facilitate this ongoing process, the company is currently implementing a third-party lease accounting software. The company will finalize its assessment in fiscal 2019 and adopt this standard on June 30, 2019, the first day of fiscal 2020.

Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard.

6

4.REVENUE

Adoption of ASC Topic 606, “Revenues from Contracts with Customers”

On July 1, 2018, Sysco adopted ASC Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under Topic 605. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for the quarter and 26 weeks ended December 29, 2018 as a result of applying ASC Topic 606.

Revenue Recognition

The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and therefore, not assessed as performance obligations.

Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses.

Product Sales Revenues

Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment.

Contract Balances

After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $3.9 billion and $3.8 billion as of December 29, 2018 and June 30, 2018, respectively.

Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other Assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of December 29, 2018, Sysco’s contract assets were immaterial. Sysco has no material commissions paid that are directly attributable to obtaining a particular contract.

7

Disaggregation of Sales

The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented:

	13-Week Period Ended Dec. 29, 2018
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	2,084,648	$	409,086	$	374,069	$	—	$	2,867,803
Canned and dry products	1,799,535		611,609		66,719		—		2,477,863
Frozen fruits, vegetables, bakery and other	1,417,063		354,178		315,129		—		2,086,370
Dairy products	1,041,436		306,364		148,103		—		1,495,903
Poultry	1,001,579		209,542		208,674		—		1,419,795
Fresh produce	927,997		322,020		57,048		—		1,307,065
Paper and disposables	681,890		87,376		181,896		14,175		965,337
Seafood	581,655		196,413		23,451		—		801,519
Beverage products	271,182		161,317		136,244		20,422		589,165
Other (1)	280,120		232,693		25,274		216,800		754,887
Total Sales	$	10,087,105	$	2,890,598	$	1,536,607	$	251,397	$	14,765,707

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	13-Week Period Ended Dec. 30, 2017
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	1,975,717	$	411,726	$	375,602	$	—	$	2,763,045
Canned and dry products	1,742,913		579,881		89,274		—		2,412,068
Frozen fruits, vegetables, bakery and other	1,316,229		645,354		289,133		—		2,250,716
Dairy products	1,019,134		308,362		162,372		—		1,489,868
Poultry	997,225		212,552		277,820		—		1,487,597
Fresh produce	902,943		256,746		63,947		—		1,223,636
Paper and disposables	637,520		98,258		183,205		13,445		932,428
Seafood	555,996		182,393		21,109		—		759,498
Beverage products	266,102		48,819		140,190		19,441		474,552
Other (1)	267,446		124,952		30,493		195,191		618,082
Total Sales	$	9,681,225	$	2,869,043	$	1,633,145	$	228,077	$	14,411,490

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

8

	26-Week Period Ended Dec. 29, 2018
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	4,206,167	$	829,542	$	746,401	$	—	$	5,782,110
Canned and dry products	3,651,702		1,223,079		144,341		—		5,019,122
Frozen fruits, vegetables, bakery and other	2,840,449		982,735		606,995		—		4,430,179
Dairy products	2,127,840		624,711		302,909		—		3,055,460
Poultry	2,028,515		425,124		480,735		—		2,934,374
Fresh produce	1,865,577		579,564		121,897		—		2,567,038
Paper and disposables	1,392,649		191,915		370,512		30,584		1,985,660
Seafood	1,243,342		384,850		48,835		—		1,677,027
Beverage products	561,752		213,388		283,538		43,601		1,102,279
Other (1)	568,523		356,640		51,901		450,673		1,427,737
Total Sales	$	20,486,516	$	5,811,548	$	3,158,064	$	524,858	$	29,980,986

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	26-Week Period Ended Dec. 30, 2017
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	4,006,857	$	846,365	$	761,851	$	—	$	5,615,073
Canned and dry products	3,481,591		1,173,234		166,759		—		4,821,584
Frozen fruits, vegetables, bakery and other	2,582,958		1,271,422		561,725		—		4,416,105
Poultry	2,043,911		420,017		574,719		—		3,038,647
Dairy products	2,036,796		624,016		329,059		—		2,989,871
Fresh produce	1,826,735		522,329		129,493		—		2,478,557
Paper and disposables	1,293,829		202,368		365,034		28,835		1,890,066
Seafood	1,176,317		365,664		44,884		—		1,586,865
Beverage products	541,232		99,878		285,264		42,452		968,826
Other (1)	539,941		247,005		55,028		414,346		1,256,320
Total Sales	$	19,530,167	$	5,772,298	$	3,273,816	$	485,633	$	29,061,914

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

5.ACQUISITIONS

There were no new acquisitions in the first 26 weeks of fiscal 2019. Certain acquisitions involve contingent consideration that may include earnout agreements that are typically payable over periods of up to three years in the event that certain operating results are achieved. As of December 29, 2018, aggregate contingent consideration outstanding was $14.1 million, of which $9.4 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 measurement.

9

6.FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:

• Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;

• Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and

• Level 3 – Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk.

Sysco’s policy is to invest in only high-quality investments. Cash equivalents primarily include cash deposits, time deposits, certificates of deposit, commercial paper, high-quality money market funds and all highly liquid instruments with original maturities of three months or less.

The following is a description of the valuation methodologies used for assets and liabilities measured at fair value:

• Cash deposits included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 1 measurement in the tables below.

• Time deposits and commercial paper included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 2 measurement in the tables below.

• Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents as Level 1 measurements in the tables below.

• The interest rate swap agreements are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates.

• The foreign currency swap agreements, including cross-currency swaps, are valued using a swap valuation model that utilizes an income approach applying observable market inputs including interest rates, LIBOR swap rates for U.S. dollars, Canadian dollars, pound sterling and euro currencies, and credit default swap rates.

• Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments.

• Fuel swap contracts are valued based on observable market transactions of forward commodity prices.

The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 7, “Derivative Financial Instruments.”

10

The following tables present the company’s assets measured at fair value on a recurring basis as of December 29, 2018, June 30, 2018 and December 30, 2017:

	Assets and Liabilities Measured at Fair Value as of Dec. 29, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	298,461	$	200	$	—	$	298,661
Other assets (1)	152,178		—		—		152,178
Total assets at fair value	$	450,639	$	200	$	—	$	450,839

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

	Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	169,214	$	30,190	$	—	$	199,404
Other assets (1)	163,519		—		—		163,519
Total assets at fair value	$	332,733	$	30,190	$	—	$	362,923

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

	Assets and Liabilities Measured at Fair Value as of Dec. 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	241,071	$	43,191	$	—	$	284,262
Other assets (1)	145,734		7,143		—		152,877
Total assets at fair value	$	386,805	$	50,334	$	—	$	437,139

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

The carrying values of accounts receivable and accounts payable approximated their respective fair values due to their short-term maturities. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the company for new debt with the same maturities as existing debt, and is considered a Level 2 measurement. The fair value of total debt was approximately$8.8 billion, $8.4 billion and $9.2 billion as of December 29, 2018, June 30, 2018 and December 30, 2017, respectively. The carrying value of total debt was $8.8 billion, $8.3 billion and $8.9 billion as of December 29, 2018, June 30, 2018 and December 30, 2017, respectively.

7.DERIVATIVE FINANCIAL INSTRUMENTS

Sysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk.

11

Hedging of interest rate risk

Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In December 2018, the company entered into an interest rate swap agreement that effectively converted €500.0 million of fixed rate debt maturing in 2023 to floating rate debt.

Hedging of foreign currency risk

Sysco enters into cross-currency swap contracts to hedge the foreign currency transaction risk of certain intercompany loans. There are no credit-risk related contingent features associated with these swaps, which have been designated as cash flow hedges. The company also uses cross-currency swap contracts and euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, U.S. dollar, Polish zloty and Danish krone. These inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. The company enters into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases.

Hedging of fuel price risk

Sysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel on anticipated future purchases. These swaps have been designated as cash flow hedges.

None of the Company’s hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of December 29, 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
June 2023	Euro	500
March 2025	U.S. Dollar	500
Hedging of foreign currency risk
Various (January 2019 to April 2019)	Swedish Krona	261
Various (January 2019 to October 2019)	British Pound Sterling	20
Various (January 2019 to December 2019)	U.S. Dollar	1
June 2021	Canadian Dollar	300
July 2021	British Pound Sterling	234
August 2021	British Pound Sterling	466
June 2023	Euro	500
Hedging of fuel risk
Various (December 31, 2018 to December 2019)	Gallons	52

12

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 29, 2018, June 30, 2018 and December 30, 2017 are as follows:

		Derivative Fair Value
	Balance Sheet location	Dec. 29, 2018		Jun. 30, 2018		Dec. 30, 2017
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	—	$	—	$	118
Interest rate swaps	Other assets	5,207		—		—
Interest rate swaps	Other current liabilities	2,180		6,820		—
Interest rate swaps	Other long-term liabilities	31,488		49,734		33,003
Cash Flow Hedges:
Fuel Swaps	Other current assets	$	—	$	15,316	$	13,678
Foreign currency forwards	Other current assets	246		693		555
Cross currency swaps	Other current assets	—		4,284		—
Cross currency swaps	Other assets	13,773		3,454		—
Fuel Swaps	Other current liabilities	19,548		—		—
Foreign currency forwards	Other current liabilities	226		71		351
Fuel swaps	Other long-term liabilities	742		—		—
Cross currency swaps	Other long-term liabilities	—		14,201		21,310
Net Investment Hedges:
Foreign currency swaps	Other assets	$	23,349	$	10,709	$	7,822
Foreign currency swaps	Other long-term liabilities	20,361		39,690		48,087

13

Gains or losses recognized in the consolidated results of operations for cash flow hedging relationships are not significant for each of the periods presented. The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows:

	13-Week Period Ended Dec. 29, 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	$	11,993,995	$	2,319,817	$	87,113
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(46,919	)
Derivatives designated as hedging instruments	—		—		31,550

⁽¹⁾  The hedged total includes interest expense of $15.7 million and change in fair value of debt of $31.3 million.

	13-Week Period Ended Dec. 30, 2017
	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	$	11,712,104	$	2,170,834	$	85,986
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(7,515	)
Derivatives designated as hedging instruments	—		—		(9,942		)

⁽¹⁾  The hedged total includes interest expense of $17.1 million and change in fair value of debt of $9.6 million.

	26-Week Period Ended Dec. 29, 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	$	24,305,489	$	4,595,462	$	176,129
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(55,506	)
Derivatives designated as hedging instruments	—		—		20,691

⁽¹⁾  The hedged total includes interest expense of $30.8 million and change in fair value of debt of $24.7 million.

14

	26-Week Period Ended Dec. 30, 2017
	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	$	23,568,860	$	4,345,137	$	166,870
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(22,745	)
Derivatives designated as hedging instruments	—		—		(10,989		)

⁽¹⁾  The hedged total includes interest expense of $34.2 million and change in fair value of debt of $11.4 million.

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended December 29, 2018 and December 30, 2017, presented on a pretax basis, are as follows:

	13-Week Period Ended Dec. 29, 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	$	(36,843	)	Operating expense	$	5,040
Foreign currency contracts	25,463			Cost of goods sold	8
Total	$	(11,380	)		$	5,048
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	27,143		N/A	$	—
Foreign denominated debt	8,150			N/A	—
Total	$	35,293			$	—
	13-Week Period Ended Dec. 30, 2017
	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	$	8,505		Operating expense	$	1,814
Foreign currency contracts	6,331			Cost of goods sold	525
Total	$	14,836			$	2,339
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(12,063	)	N/A	$	—
Foreign denominated debt	(9,450		)	N/A	—
Total	$	(21,513	)		$	—

15

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 26-week periods ended December 29, 2018 and December 30, 2017, presented on a pretax basis, are as follows:

	26-Week Period Ended Dec. 29, 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	$	(35,817	)	Operating expense	$	9,393
Foreign currency contracts	20,660			Cost of goods sold	491
Total	$	(15,157	)		$	9,884
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	34,371		N/A	$	—
Foreign denominated debt	12,100			N/A	—
Total	$	46,471			$	—
	26-Week Period Ended Dec. 30, 2017
	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	$	19,706		Operating expense	$	1,658
Foreign currency contracts	(15,462		)	Cost of goods sold	834
Total	$	4,244			$	2,492
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(27,957	)	N/A	$	—
Foreign denominated debt	(28,600		)	N/A	—
Total	$	(56,557	)		$	—

16

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 29, 2018 are as follows:

	Dec. 29, 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	$	(499,867	)	$	2,152
Long-term debt	(2,310,689		)	25,776

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 carrying amount of hedged liabilities in the consolidated balance sheet as of December 30, 2017, are as follows:

	Dec. 30, 2017
	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	$	(499,960	)	$	—
Long-term debt	(1,747,194		)	18,282

8.DEBT

Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion. As of December 29, 2018, there was $109.9 million in commercial paper issuances outstanding. Any outstanding amounts are classified within long-term debt, as the program is supported by a long-term revolving credit facility. During the first 26 weeks of fiscal 2019, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from zero to approximately $669.0 million.

17

Senior notes offering

On September 25, 2018, Sysco issued senior notes totaling CDN $500.0 million. The senior notes were issued in Canada with a coupon rate of 3.65% and pricing, as a percentage of par, of 99.962%. Net proceeds from the offering were used to repay internal debt that was created in fiscal 2018 when the company repatriated earnings from its Canadian operations back to Sysco Corporation, and to repay outstanding borrowings under Sysco’s commercial paper program, along with other general corporate purposes. Interest on the senior notes will be paid semi-annually on April 25 and October 25, beginning April 25, 2019. At Sysco’s option, any or all of the senior notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem the senior notes before the date that is two months prior to the maturity date, Sysco will pay an amount equal to the greater of (1) 100% of the principal amount of the senior notes to be redeemed; or (2) the applicable yield price, plus in either case, any accrued and unpaid interest on the senior notes to be redeemed to the date of redemption. If Sysco elects to redeem a series of senior notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the senior notes to be redeemed plus accrued and unpaid interest on the senior notes redeemed to the redemption date.

9.EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:

	13-Week Period Ended				26-Week Period Ended
	Dec. 29, 2018		Dec. 30, 2017		Dec. 29, 2018		Dec. 30, 2017
	(In thousands, except for share and per share data)				(In thousands, except for share and per share data)
Numerator:
Net earnings	$	267,380	$	284,113	$	698,422	$	651,753
Denominator:
Weighted-average basic shares outstanding	517,871,328		521,284,182		519,363,973		524,286,931
Dilutive effect of share-based awards	6,729,182		5,965,405		7,453,528		5,869,579
Weighted-average diluted shares outstanding	524,600,510		527,249,587		526,817,501		530,156,510
Basic earnings per share	$	0.52	$	0.55	$	1.34	$	1.24
Diluted earnings per share	$	0.51	$	0.54	$	1.33	$	1.23
Dividends declared per common share	$	0.39	$	0.36	$	0.75	$	0.69

The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,565,000 and 2,749,000 for the second quarter of fiscal 2019 and fiscal 2018, respectively. The number of options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 3,630,000 and 4,594,000 for the first 26 weeks of fiscal 2019 and fiscal 2018, respectively.

10.OTHER COMPREHENSIVE INCOME

Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, amounts related to cash flow hedging arrangements and certain amounts related to pension and other postretirement plans. Comprehensive income was $193.8 million and $310.7 million for the second quarter of fiscal 2019 and fiscal 2018, respectively. Comprehensive income was $583.3 million and $798.5 million for the first 26 weeks of fiscal 2019 and fiscal 2018, respectively.

18

A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows:

		13-Week Period Ended Dec. 29, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,133		$	533		$	1,600
Amortization of actuarial loss (gain), net	Other expense, net	8,706			2,177			6,529
Total reclassification adjustments		10,839			2,710			8,129
Foreign currency translation:
Foreign currency translation adjustment	N/A	(101,533		)	—			(101,533		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(11,380		)	(2,596		)	(8,784		)
Change in net investment hedges	N/A	35,293			8,824			26,469
Total other comprehensive income (loss) before reclassification adjustments		23,913			6,228			17,685
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	(63,908	)	$	9,656		$	(73,564	)

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

19

		13-Week Period Ended Dec. 30, 2017
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,409		$	602		$	1,807
Amortization of actuarial loss (gain), net	Other expense, net	8,761			2,190			6,571
Total reclassification adjustments		11,170			2,792			8,378
Foreign currency translation:
Foreign currency translation adjustment	N/A	19,254			—			19,254
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	2,944			2,027			917
Change in net investment hedges	N/A	(6,543		)	(2,390		)	(4,153		)
Total other comprehensive income (loss) before reclassification adjustments		(3,599		)	(363		)	(3,236		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	29,698		$	3,147		$	26,551

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

20

		26-Week Period Ended Dec. 29, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial loss		$	(36,891	)	$	(4,380	)	$	(32,511	)
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	4,266			1,066			3,200
Amortization of actuarial loss (gain), net	Other expense, net	17,412			4,354			13,058
Total reclassification adjustments		21,678			5,420			16,258
Foreign currency translation:
Other comprehensive income (loss) before reclassification adjustments:
Foreign currency translation adjustment	N/A	(126,460		)	—			(126,460		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(15,157		)	(3,365		)	(11,792		)
Change in net investment hedges	N/A	46,471			11,414			35,057
Total other comprehensive income (loss) before reclassification adjustments		31,314			8,049			23,265
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,746			1,436			4,310
Total other comprehensive income (loss)		$	(104,613	)	$	10,525		$	(115,138	)

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

21

		26-Week Period Ended Dec. 30, 2017
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	4,818		$	1,527		$	3,291
Amortization of actuarial loss (gain), net	Other expense, net	17,522			5,554			11,968
Total reclassification adjustments		22,340			7,081			15,259
Foreign currency translation:
Foreign currency translation adjustment	N/A	140,584			—			140,584
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	6,350			3,232			3,118
Change in net investment hedges	N/A	(29,918		)	(13,741		)	(16,177		)
Total other comprehensive income (loss) before reclassification adjustments		(23,568		)	(10,509		)	(13,059		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,746			1,821			3,925
Total other comprehensive income (loss)		$	145,102		$	(1,607	)	$	146,709

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:

	26-Week Period Ended Dec. 29, 2018
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jun. 30, 2018	$	(1,095,059	)	$	(171,043	)	$	(143,167	)	$	(1,409,269	)
Equity adjustment from foreign currency translation	—			(126,460		)	—			(126,460		)
Amortization of cash flow hedges	—			—			4,310			4,310
Change in net investment hedges	—			—			35,057			35,057
Change in cash flow hedge	—			—			(11,792		)	(11,792		)
Net actuarial loss	(32,511		)	—			—			(32,511		)
Amortization of unrecognized prior service cost	3,200			—			—			3,200
Amortization of unrecognized net actuarial losses	13,058			—			—			13,058
Balance as of Dec. 29, 2018	$	(1,111,312	)	$	(297,503	)	$	(115,592	)	$	(1,524,407	)

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	26-Week Period Ended Dec. 30, 2017
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jul. 1, 2017	$	(974,232	)	$	(148,056	)	$	(140,449	)	$	(1,262,737	)
Equity adjustment from foreign currency translation	—			140,584			—			140,584
Amortization of cash flow hedges	—			—			3,925			3,925
Change in net investment hedges	—			—			(16,177		)	(16,177		)
Change in cash flow hedges	—			—			3,118			3,118
Amortization of unrecognized prior service cost	3,291			—			—			3,291
Amortization of unrecognized net actuarial losses	11,968			—			—			11,968
Balance as of Dec. 30, 2017	$	(958,973	)	$	(7,472	)	$	(149,583	)	$	(1,116,028	)

11.SHARE-BASED COMPENSATION

Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP).

Stock Incentive Plans

In the first 26 weeks of fiscal 2019, options to purchase 2,609,755 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant-date fair value per option granted during the first 26 weeks of fiscal 2019 was $11.70.

In the first 26 weeks of fiscal 2019, 574,768 performance share units (PSUs) were granted to employees. Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For PSUs granted without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per performance share unit granted during the first 26 weeks of fiscal 2019 was $74.86. The PSUs will convert into shares of Sysco common stock at the end of the performance period based on financial performance targets consisting of Sysco’s earnings per share compound annual growth rate and adjusted return on invested capital.

Employee Stock Purchase Plan

Plan participants purchased 486,452 shares of common stock under the Sysco ESPP during the first 26 weeks of fiscal 2019.

The weighted average fair value per right of employee stock purchase rights issued pursuant to the ESPP was $10.64 during the first 26 weeks of fiscal 2019. The fair value of the stock purchase rights is estimated as the difference between the stock price and the employee purchase price.

All Share-Based Payment Arrangements

The total share-based compensation cost that has been recognized in results of operations was $54.2 million and $51.6 million for the first 26 weeks of fiscal 2019 and fiscal 2018, respectively.

As of December 29, 2018, there was $129.9 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 1.91 years.

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12.INCOME TAXES

Effective Tax Rate

The effective tax rates for the second quarter and first 26 weeks of fiscal 2019 were 24.59% and 21.75%, respectively. The lower effective tax rate for the second quarter of fiscal 2019 is primarily due to lower tax rates enacted from the Tax Cuts and Job Act (Tax Act), the favorable impact of excess tax benefits of equity-based compensation that totaled $7.6 million, the unfavorable impact of $11.9 million attributable to finalizing accounting with regard to certain provisions of the Tax Act, and the additional U.S. federal tax burden as a result of the global intangible low taxed income (GILTI) regime, which the company is accounting for as a periodic cost. In the second quarter of fiscal 2018, lower U.S. tax rates from the Tax Act were not yet fully applicable. The effective tax rate for the second quarter of fiscal 2018 reflects the favorable impact of the excess tax benefits of equity-based compensation that totaled $14.8 million, as well as the impact of changes in tax law in various foreign jurisdictions of $8.1 million. The effective tax rate for the second quarter of fiscal 2018 of 37.11% and the first 26 weeks of fiscal 2018 of 34.71% were negatively impacted by the transition tax resulting from the Tax Act.

In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Job Act, the company recognized the provisional impacts related to re-measurement of deferred tax assets and liabilities and the one-time transition tax in its results for the annual period ended June 30, 2018. As of the second quarter of fiscal 2019, the company has completed its accounting for all aspects of the Tax Act, with a corresponding adjustment of $15.1 million to income tax expense related to Transition Tax, and a benefit of $3.2 million attributable to realizability of certain deferred tax assets.

Uncertain Tax Positions

As of December 29, 2018, the gross amount of unrecognized tax benefit and related accrued interest was $6.6 million and $4.4 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months. At this time, an estimate of the range of the reasonably possible change cannot be made.

Other

The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects a combination of income earned and taxed in the various U.S. federal and state, as well as foreign, jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate.

13.COMMITMENTS AND CONTINGENCIES

Legal Proceedings

Sysco is engaged in various legal proceedings that have arisen but have not been fully adjudicated. The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When probable and reasonably estimable, the losses have been accrued. Although the final results of legal proceedings cannot be predicted with certainty, based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company.

14.BUSINESS SEGMENT INFORMATION

The company has aggregated certain of its operating segments into three reportable segments. “Other” financial information is attributable to the company’s other operating segments that do not meet the quantitative disclosure thresholds.

• U.S. Foodservice Operations - primarily includes U.S. Broadline operations, which distribute a full line of food products including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products;

• International Foodservice Operations - includes operations in the Americas and Europe, which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas,

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Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden;

• SYGMA - our U.S. customized distribution subsidiary; and

• Other - primarily our hotel supply operations and Sysco Labs, which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs.

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These also include all share-based compensation costs.

The following tables set forth certain financial information for Sysco’s reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07.

	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	10,087,105		$	9,681,225		$	20,486,516		$	19,530,167
International Foodservice Operations	2,890,598			2,869,043			5,811,548			5,772,298
SYGMA	1,536,607			1,633,145			3,158,064			3,273,816
Other	251,397			228,077			524,858			485,633
Total	$	14,765,707		$	14,411,490		$	29,980,986		$	29,061,914
	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	737,477		$	707,581		$	1,553,235		$	1,489,656
International Foodservice Operations	(14,917		)	52,594			51,855			129,398
SYGMA	3,114			3,353			5,545			8,198
Other	5,718			6,181			16,053			13,113
Total segments	731,392			769,709			1,626,688			1,640,365
Corporate	(279,497		)	(241,157		)	(546,653		)	(492,448		)
Total operating income	451,895			528,552			1,080,035			1,147,917
Interest expense	87,113			85,986			176,129			166,870
Other expense (income), net	10,197			(9,162		)	11,329			(17,137		)
Earnings before income taxes	$	354,585		$	451,728		$	892,577		$	998,184

15.SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES

On January 19, 2011, the wholly owned U.S. Broadline subsidiaries of Sysco Corporation at that time entered into full and unconditional guarantees of all outstanding senior notes and debentures of Sysco Corporation. All subsequent issuances of senior notes and debentures in the U.S. have also been guaranteed by these subsidiaries. As of December 29, 2018, Sysco had a total of $8.4 billion in senior notes and debentures that was covered by these guarantees.

All subsidiary guarantors are 100% owned by the parent company, all guarantees are full and unconditional and all guarantees are joint and several, except that the guarantee of any subsidiary guarantor with respect to a series of senior notes or debentures may be released under certain customary circumstances. If we exercise our defeasance option with respect to the senior notes or debentures of any series, then any subsidiary guarantor effectively will be released with respect to that series. Further, each subsidiary guarantee will remain in full force and effect until the earliest to occur of the date, if any, on which (1) the applicable subsidiary guarantor shall consolidate with or merge into Sysco Corporation or any successor of Sysco Corporation or (2) Sysco Corporation or any successor of Sysco Corporation consolidates with or merges into the applicable subsidiary guarantor.

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The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (certain of the company’s U.S. Broadline subsidiaries), and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries.

	Condensed Consolidated Balance Sheet
	Dec. 29, 2018
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	138,324	$	4,087,103	$	4,212,356	$	—		$	8,437,783
Intercompany receivables	7,062,518		110,889		2,433,329		(9,606,736		)	—
Investment in subsidiaries	5,864,415		—		1,210,579		(7,074,994		)	—
Plant and equipment, net	254,187		2,122,911		1,998,452		—			4,375,550
Other assets	745,923		684,276		4,465,022		(514,378		)	5,380,843
Total assets	$	14,065,367	$	7,005,179	$	14,319,738	$	(17,196,108	)	$	18,194,176
Current liabilities	$	1,211,568	$	928,505	$	4,610,097	$	—		$	6,750,170
Intercompany payables	2,514,212		2,535,827		4,556,697		(9,606,736		)	—
Long-term debt	7,593,478		9,605		416,763		—			8,019,846
Other liabilities	578,475		536,378		620,692		(514,378		)	1,221,167
Noncontrolling interest	—		—		35,357		—			35,357
Shareholders’ equity	2,167,634		2,994,864		4,080,132		(7,074,994		)	2,167,636
Total liabilities and shareholders’ equity	$	14,065,367	$	7,005,179	$	14,319,738	$	(17,196,108	)	$	18,194,176

	Condensed Consolidated Balance Sheet
	Jun. 30, 2018
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	157,994	$	4,018,444	$	3,827,015	$	—		$	8,003,453
Intercompany receivables	6,621,438		270,748		5,793,352		(12,685,538		)	—
Investment in subsidiaries	4,896,004		—		983,625		(5,879,629		)	—
Plant and equipment, net	278,855		2,181,576		2,061,229		—			4,521,660
Other assets	788,473		611,004		4,593,537		(447,723		)	5,545,291
Total assets	$	12,742,764	$	7,081,772	$	17,258,758	$	(19,012,890	)	$	18,070,404
Current liabilities	$	1,233,541	$	886,305	$	4,468,900	$	—		$	6,588,746
Intercompany payables	882,487		3,798,134		8,004,917		(12,685,538		)	—
Long-term debt	7,470,334		8,285		62,146		—			7,540,765
Other liabilities	649,445		508,387		686,178		(447,723		)	1,396,287
Noncontrolling interest	—		—		37,649		—			37,649
Shareholders’ equity	2,506,957		1,880,661		3,998,968		(5,879,629		)	2,506,957
Total liabilities and shareholders’ equity	$	12,742,764	$	7,081,772	$	17,258,758	$	(19,012,890	)	$	18,070,404

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	Condensed Consolidated Balance Sheet
	Dec. 30, 2017
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	189,553	$	3,803,349	$	4,279,266	$	—		$	8,272,168
Intercompany receivables	2,945,188		1,276,341		—		(4,221,529		)	—
Investment in subsidiaries	7,623,839		—		—		(7,623,839		)	—
Plant and equipment, net	262,790		2,018,365		2,085,137		—			4,366,292
Other assets	965,800		55,820		4,559,290		—			5,580,910
Total assets	$	11,987,170	$	7,153,875	$	10,923,693	$	(11,845,368	)	$	18,219,370
Current liabilities	$	540,008	$	3,781,141	$	1,661,821	$	—		$	5,982,970
Intercompany payables	—		—		4,221,529		(4,221,529		)	—
Long-term debt	8,239,844		6,995		65,650		—			8,312,489
Other liabilities	938,716		87,230		595,839		—			1,621,785
Noncontrolling interest	—		—		33,524		—			33,524
Shareholders’ equity	2,268,602		3,278,509		4,345,330		(7,623,839		)	2,268,602
Total liabilities and shareholders’ equity	$	11,987,170	$	7,153,875	$	10,923,693	$	(11,845,368	)	$	18,219,370

	Condensed Consolidated Statement of Comprehensive Income
	For the 13-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	9,101,114		$	6,329,665		$	(665,072	)	$	14,765,707
Cost of sales	—			7,381,785			5,277,282			(665,072		)	11,993,995
Gross profit	—			1,719,329			1,052,383			—			2,771,712
Operating expenses	232,621			1,035,676			1,051,520			—			2,319,817
Operating income (loss)	(232,621		)	683,653			863			—			451,895
Interest expense (income) (1)	63,491			(8,920		)	32,542			—			87,113
Other expense (income), net	3,772			(86		)	6,511			—			10,197
Earnings (losses) before income taxes	(299,884		)	692,659			(38,190		)	—			354,585
Income tax (benefit) provision	(73,057		)	170,960			(10,698		)	—			87,205
Equity in earnings of subsidiaries	494,207			—			128,030			(622,237		)	—
Net earnings	267,380			521,699			100,538			(622,237		)	267,380
Other comprehensive income (loss)	(73,564		)	—			(101,533		)	101,533			(73,564		)
Comprehensive income	$	193,816		$	521,699		$	(995	)	$	(520,704	)	$	193,816

⁽¹⁾  Interest expense (income) includes $8.9 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the second quarter ended December 29, 2018. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

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	Condensed Consolidated Statement of Comprehensive Income
	For the 13-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	8,754,169		$	6,169,239	$	(511,918	)	$	14,411,490
Cost of sales	—			7,102,287			5,121,735		(511,918		)	11,712,104
Gross profit	—			1,651,882			1,047,504		—			2,699,386
Operating expenses	203,892			993,440			973,502		—			2,170,834
Operating income (loss)	(203,892		)	658,442			74,002		—			528,552
Interest expense (income) (1)	108,768			(27,955		)	5,173		—			85,986
Other expense (income), net	(10,122		)	69			891		—			(9,162		)
Earnings (losses) before income taxes	(302,538		)	686,328			67,938		—			451,728
Income tax (benefit) provision	(120,315		)	262,822			25,108		—			167,615
Equity in earnings of subsidiaries	466,336			—			—		(466,336		)	—
Net earnings	284,113			423,506			42,830		(466,336		)	284,113
Other comprehensive income (loss)	26,551			—			19,254		(19,254		)	26,551
Comprehensive income	$	310,664		$	423,506		$	62,084	$	(485,590	)	$	310,664

⁽¹⁾  Interest expense (income) includes $28.0 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the second quarter ended December 30, 2017. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 26-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	18,580,920		$	12,563,823		$	(1,163,757	)	$	29,980,986
Cost of sales	—			15,041,886			10,427,360			(1,163,757		)	24,305,489
Gross profit	—			3,539,034			2,136,463			—			5,675,497
Operating expenses	452,902			2,088,027			2,054,533			—			4,595,462
Operating income (loss)	(452,902		)	1,451,007			81,930			—			1,080,035
Interest expense (income) (1)	104,905			(30,459		)	101,683			—			176,129
Other expense (income), net	10,372			(140		)	1,097			—			11,329
Earnings (losses) before income taxes	(568,179		)	1,481,606			(20,850		)	—			892,577
Income tax (benefit) provision	(166,645		)	367,404			(6,604		)	—			194,155
Equity in earnings of subsidiaries	1,099,956			—			222,371			(1,322,327		)	—
Net earnings	698,422			1,114,202			208,125			(1,322,327		)	698,422
Other comprehensive income (loss)	(115,138		)	—			(126,460		)	126,460			(115,138		)
Comprehensive income	$	583,284		$	1,114,202		$	81,665		$	(1,195,867	)	$	583,284

⁽¹⁾  Interest expense (income) includes $30.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

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	Condensed Consolidated Statement of Comprehensive Income
	For the 26-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	17,775,826		$	12,289,551	$	(1,003,463	)	$	29,061,914
Cost of sales	—			14,377,711			10,194,612		(1,003,463		)	23,568,860
Gross profit	—			3,398,115			2,094,939		—			5,493,054
Operating expenses	406,848			1,999,593			1,938,696		—			4,345,137
Operating income (loss)	(406,848		)	1,398,522			156,243		—			1,147,917
Interest expense (income) (1)	207,764			(51,306		)	10,412		—			166,870
Other expense (income), net	(18,829		)	854			838		—			(17,137		)
Earnings (losses) before income taxes	(595,783		)	1,448,974			144,993		—			998,184
Income tax (benefit) provision	(216,273		)	512,383			50,321		—			346,431
Equity in earnings of subsidiaries	1,031,263			—			—		(1,031,263		)	—
Net earnings	651,753			936,591			94,672		(1,031,263		)	651,753
Other comprehensive income (loss)	146,709			—			140,583		(140,583		)	146,709
Comprehensive income	$	798,462		$	936,591		$	235,255	$	(1,171,846	)	$	798,462

⁽¹⁾  Interest expense (income) includes $51.3 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Cash Flows
	For the 26-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination (1)			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	485,875		$	100,079		$	331,836		$	—		$	917,790
Investing activities	432,730			(85,254		)	(66,591		)	(497,897		)	(217,012		)
Financing activities	(912,101		)	(2,819		)	(93,709		)	497,897			(510,732		)
Effect of exchange rates on cash	—			—			(8,904		)	—			(8,904		)
Net increase in cash, cash equivalents and restricted cash	6,504			12,006			162,632			—			181,142
Cash, cash equivalents and restricted cash at the beginning of period	29,144			111,843			574,857			—			715,844
Cash, cash equivalents and restricted cash at the end of period	$	35,648		$	123,849		$	737,489		$	—		$	896,986

⁽¹⁾  Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation.

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	Condensed Consolidated Cash Flows
	For the 26-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination (1)			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	252,770		$	195,650		$	484,784		$	—		$	933,204
Investing activities	(104,914		)	(112,513		)	(332,538		)	147,622			(402,343		)
Financing activities	(159,309		)	(3,890		)	893			(147,622		)	(309,928		)
Effect of exchange rates on cash	—			—			23,510			—			23,510
Net increase (decrease) in cash and cash equivalents	(11,453		)	79,247			176,649			—			244,443
Cash and cash equivalents at the beginning of period	111,576			18,788			739,138			—			869,502
Cash and cash equivalents at the end of period	$	100,123		$	98,035		$	915,787		$	—		$	1,113,945

⁽¹⁾  Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion should be read in conjunction with our consolidated financial statements as of June 30, 2018, and for the fiscal year then ended, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, both contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (our 2018 Form 10-K), as well as the consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) contained in this report.

Sysco’s results of operations for fiscal 2019 and 2018 are impacted by restructuring and transformational project costs consisting of: (1) expenses associated with our various transformation initiatives; (2) severance and facility closure charges; and (3) restructuring charges. Our results of operations for fiscal 2019 and 2018 are also impacted by the following acquisition-related items: (1) intangible amortization expense and (2) integration costs. These fiscal 2019 and fiscal 2018 items are collectively referred to as “Certain Items.” All acquisition-related costs in fiscal 2019 and 2018 that have been designated as Certain Items relate to the fiscal 2017 acquisition of Cucina Lux Investments Limited (the Brakes Acquisition). Our discussion below of our results includes certain non-GAAP financial measures that we believe provide important perspective with respect to underlying business trends. Other than free cash flow, any non-GAAP financial measures will be denoted as adjusted measures and exclude the impact from Certain Items.

More information on the rationale for the use of non-GAAP financial measures and reconciliations to the most directly comparable generally accepted accounting principles (GAAP) numbers can be found under “Non-GAAP Reconciliations.”

Highlights and Trends

Highlights

Our second quarter performance reflects solid sales growth as compared to the second quarter of fiscal 2018, and we continue to execute on our strategic priorities designed to improve our overall performance. Our focus for the quarter was led by our efforts to enrich the customer experience. We also made investments in our business, particularly in our international segment. As a result, our operating income declined in the second quarter as compared to the second quarter of fiscal 2018. On an adjusted basis, our operating income improved. Our net earnings, both including and excluding Certain Items, decreased for the second quarter of fiscal 2019, as compared to the corresponding period in fiscal 2018, primarily due to the change in the U.S. tax rate, which was retroactively effective in our second quarter of fiscal 2018 resulting from the adoption of reduced tax rates in the U.S.

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Comparisons of results from the second quarter of fiscal 2019 to the second quarter of fiscal 2018:

• Sales:

◦ increased2.5%, or $354.2 million, to $14.8 billion;

• Operating income:

◦ decreased14.5%, or $76.7 million, to $451.9 million;

◦ adjusted operating income increased4.8%, or $27.6 million, to $603.3 million;

• Net earnings:

◦ decreased5.9%, or $16.7 million, to $267.4 million;

◦ adjusted net earnings decreased4.5%, or $18.4 million, to $393.5 million;

• Basic earnings per share:

◦ decreased5.5%, or $0.03, to $0.52 per share;

• Diluted earnings per share:

◦ decreased5.6%, or $0.03, to $0.51 per share; and

◦ adjusted diluted earnings per share decreased4.0%, or $0.03, to $0.75 per share.

Comparisons of results from the first 26 weeks of fiscal 2019 to the first 26 weeks of fiscal 2018:

• Sales:

◦ increased3.2%, or $919.1 million, to $30.0 billion;

• Operating income:

◦ decreased5.9%, or $67.9 million, to $1.1 billion;

◦ adjusted operating income increased5.0%, or $61.1 million, to $1.3 billion;

• Net earnings:

◦ increased7.2%, or $46.7 million, to $698.4 million;

◦ adjusted net earnings increased8.2%, or $66.3 million, to $872.7 million;

• Basic earnings per share:

◦ increased8.1%, or $0.10, to $1.34 per share;

• Diluted earnings per share:

◦ increased8.1%, or $0.10, to $1.33 per share; and

◦ adjusted diluted earnings per share increased9.0%, or $0.14, to $1.66 per share.

See “Non-GAAP Reconciliations” for an explanation of the non-GAAP financial measures listed above and a reconciliation to the most directly comparable GAAP financial measures.

Trends

The macroeconomic environment in the U.S. is experiencing some volatility; however, key drivers in the foodservice market and in the segments that we operate remain positive. Consumer confidence remains fairly strong. Additionally, U.S. labor markets remain strong, with unemployment remaining low at 3.9% as of December 2018, which is also normally a good indicator of higher consumer confidence. In the restaurant industry, we continue to see sales growth, particularly in same store sales, although traffic continues to be mixed. The economic outlook in our international geographies, however, remains somewhat mixed. In the United Kingdom (U.K.), the consumer is experiencing uncertainty over the outcome of Brexit. However, this is balanced with some positive outlook in other geographies, with favorable consumer spending and trends in the international markets where we operate.

Our sales and gross profit growth during the second quarter and first 26 weeks of fiscal 2019 was driven by solid case growth within our U.S. Broadline operations, with local customer growth exceeding national customer growth. Additionally, we experienced growth in Sysco branded products among our local customers. Our sales growth has been stronger in our U.S. Broadline operations, with slower growth experienced in our International businesses, with the exception of our Canadian operations. Brexit uncertainty has negatively affected sales in the U.K. and yellow vest protests also negatively impacted sales in France during the critical holiday time frame. A strengthening U.S. dollar has negatively impacted our sales growth 0.7% for the second quarter of fiscal 2019 and 0.6% for the first 26 weeks of fiscal 2019, as we translate our foreign sales, due to foreign currency exchange rate impacts.

Our operating expenses increased during the second quarter and first 26 weeks of fiscal 2019, due to investments we made in our business, particularly in our International segment and from increased supply chain costs in both transportation and warehouse, primarily in our U.S. operations and, to a lesser extent, in our U.K. operations. Our integration of Brake France and Davigel into Sysco France is on track and resulted in restructuring charges of $56.2 million during the first 26 weeks of fiscal

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2019. While the strength in the labor markets is a positive factor contributing to sales growth, it is also impacting our operating expenses due to the tightening labor market in the U.S. and Canada, including increased overtime expense and higher costs associated with hiring. We are addressing these challenges by continuing to drive productivity, putting tighter controls in place on how we manage costs and focusing on retention initiatives for specialized recruiting, training and onboarding efforts to better retain talent in our supply chain operations.

We have multiple transformation initiatives underway, some of which include:

• A Finance Transformation Roadmap that modernizes our global financial platform, starting mostly within our U.S. operations. We are centralizing activities, automating work and working with offshore partners where transactional work can be accomplished more efficiently and cost effectively. This project is underway and is expected to produce benefits in the second half of this fiscal year;

• A Smart Spending initiative, which is focused on reducing our indirect spend in certain categories to drive productivity and savings, with benefits anticipated to begin in the second half of this fiscal year;

• A Canadian Regionalization project, which is focused on optimizing the leadership and overall structure of our Canadian operations that have historically been highly decentralized. Benefits are anticipated to begin in the second half of this fiscal year; and

• An Administrative Expenses initiative, which is focused on the reprioritization of our administrative work, where we are looking for new and innovative ways to drive costs out of the business, which will align with our transformational efforts, to drive growth. As an example, in February 2019, we implemented executive leadership and organizational changes resulting in the reduction of 10% of our corporate support salaried positions. This streamlined organizational and business unit structure will allow us to reduce costs and accelerate decision-making within our operating model by getting closer to our customers and aligning our resources to address their evolving needs.

We expect improved operating income performance in the second half of fiscal 2019, partially from increased benefits from the initiatives noted above, and continue to believe that we will achieve the financial objectives associated with our three-year plan.

In January 2019, we acquired Waugh Foods, Inc., a leading Illinois broadline distributor with approximately $40 million in annual sales. This business will be a part of our U.S. Foodservice Operations. We also made public our intent to acquire Classic Drinks, an established specialist wine and spirits distributor in Ireland. This business will be part of our International Foodservice Operations.

Strategy

Our objective to improve the overall customer experience is a core element of our success over the past few years and will continue to be a key focus as we move forward. We have identified four key strategic priorities that we believe will accelerate our current growth and guide us into the future. These priorities are to:

• enrich the customer experience;

• deliver operational excellence;

• optimize our business; and

• activate the power of our people.

Fiscal 2019 is the second year in our current three-year plan that was established in fiscal 2018 and includes our financial objectives through fiscal 2020, which will enable us to continue transforming our business, while improving the customer experience of doing business with Sysco. We believe our four key strategic priorities will help us achieve our new target financial objectives, including:

• reaching $650 million to $700 million of adjusted operating income growth as compared to fiscal 2017;

• growing earnings per share faster than operating income; and

• achieving 16% in adjusted return on invested capital for existing businesses.

In accomplishing these goals, we believe that, by fiscal 2020, we could achieve, as compared to fiscal 2017, (1) sales growth of 4% to 4.5%; (2) adjusted operating income growth of 9%; and (3) adjusted diluted earnings per share results in the range of $3.85 to $3.95 in fiscal 2020, representing an increase of approximately 16%. We do not expect our improvements to occur evenly on a quarterly basis. The key levers to achieve these targets include an emphasis on accelerating locally managed customer case growth and driving leverage between gross profit growth and adjusted expense growth.

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At the half way point in our current three-year plan, we have increased our operating income by $192 million and adjusted operating income by $241 million. Our operating income goal was established on an adjusted basis given Certain Item charges that were applicable in fiscal 2018, which primarily were due to restructuring and Brakes-related acquisition costs. The transformation initiatives we have in place will allow us to continue to grow our business and capitalize on our strong fundamentals. We are placing further emphasis on assessing our work in order to effectively centralize and standardize our business, including leveraging technology and strengthening Sysco overall. We will continue to focus on strong implementation and execution, while accelerating some of this work, all of which position us to achieve our financial objectives.

See “Non-GAAP Reconciliations” for an explanation of these non-GAAP financial measures.

Resultsof Operations

The following table sets forth the components of our consolidated results of operations expressed as a percentage of sales for the periods indicated:

	13-Week Period Ended				26-Week Period Ended
	Dec. 29, 2018		Dec. 30, 2017		Dec. 29, 2018		Dec. 30, 2017
Sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of sales	81.2		81.3		81.1		81.1
Gross profit	18.8		18.7		18.9		18.9
Operating expenses	15.7		15.1		15.3		15.0
Operating income	3.1		3.6		3.6		3.9
Interest expense	0.6		0.6		0.6		0.6
Other expense (income), net	0.1		(0.1	)	—		(0.1	)
Earnings before income taxes	2.4		3.1		3.0		3.4
Income taxes	0.6		1.1		0.7		1.2
Net earnings	1.8	%	2.0	%	2.3	%	2.2	%

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The following table sets forth the change in the components of our consolidated results of operations expressed as a percentage increase or decrease over the comparable period in the prior year:

	13-Week Period Ended		26-Week Period Ended
	Dec. 29, 2018		Dec. 29, 2018
Sales	2.5	%	3.2	%
Cost of sales	2.4		3.1
Gross profit	2.7		3.3
Operating expenses	6.9		5.8
Operating income	(14.5	)	(5.9	)
Interest expense	1.3		5.5
Other expense (income), net (1)	(211.3	)	(166.1	)
Earnings before income taxes	(21.5	)	(10.6	)
Income taxes	(48.0	)	(44.0	)
Net earnings	(5.9	)%	7.2	%
Basic earnings per share	(5.5	)%	8.1	%
Diluted earnings per share	(5.6	)	8.1
Average shares outstanding	(0.7	)	(0.9	)
Diluted shares outstanding	(0.5	)	(0.6	)

⁽¹⁾  Other expense (income), net was expense of $10.2 million in the second quarter of fiscal 2019 and income of $9.2 million in the second quarter of fiscal 2018.

⁽²⁾  Other expense (income), net was expense of $11.3 million in the first 26 weeks of fiscal 2019 and income of $17.1 million in the first 26 weeks of fiscal 2018.

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The following represents our results by reportable segments:

	13-Week Period Ended Dec. 29, 2018
	U.S. Foodservice Operations			International Foodservice Operations			SYGMA			Other			Corporate			Consolidated Totals
	(In thousands)
Sales	$	10,087,105		$	2,890,598		$	1,536,607		$	251,397		$	—		$	14,765,707
Sales increase (decrease)	4.2		%	0.8		%	(5.9		)%	10.2		%				2.5		%
Percentage of total	68.3		%	19.6		%	10.4		%	1.7		%				100.0		%
Operating income	$	737,477		$	(14,917	)	$	3,114		$	5,718		$	(279,497	)	$	451,895
Operating income increase (decrease)	4.2		%	(128.4		)%	(7.1		)%	(7.5		)%				(14.5		)%
Percentage of total segments	100.8		%	(2.0		)%	0.4		%	0.8		%				100.0		%
Operating income as a percentage of sales	7.3		%	(0.5		)%	0.2		%	2.3		%				3.1		%

	13-Week Period Ended Dec. 30, 2017
	U.S. Foodservice Operations			International Foodservice Operations			SYGMA			Other			Corporate			Consolidated Totals
	(In thousands)
Sales	$	9,681,225		$	2,869,043		$	1,633,145		$	228,077		$	—		$	14,411,490
Percentage of total	67.2		%	19.9		%	11.3		%	1.6		%				100.0		%
Operating income	$	707,581		$	52,594		$	3,353		$	6,181		$	(241,157	)	$	528,552
Percentage of total segments	91.9		%	6.8		%	0.4		%	0.9		%				100.0		%
Operating income as a percentage of sales	7.3		%	1.8		%	0.2		%	2.7		%				3.6		%

	26-Week Period Ended Dec. 29, 2018
	U.S. Foodservice Operations			International Foodservice Operations			SYGMA			Other			Corporate			Consolidated Totals
	(In thousands)
Sales	$	20,486,516		$	5,811,548		$	3,158,064		$	524,858		$	—		$	29,980,986
Sales increase (decrease)	4.9		%	0.7		%	(3.5		)%	8.1		%				3.2		%
Percentage of total	68.3		%	19.4		%	10.5		%	1.8		%				100.0		%
Operating income	$	1,553,235		$	51,855		$	5,545		$	16,053		$	(546,653	)	$	1,080,035
Operating income increase (decrease)	4.3		%	(59.9		)%	(32.4		)%	22.4		%				(5.9		)%
Percentage of total segments	95.5		%	3.2		%	0.3		%	1.0		%				100.0		%
Operating income as a percentage of sales	7.6		%	0.9		%	0.2		%	3.1		%				3.6		%

	26-Week Period Ended Dec. 30, 2017
	U.S. Foodservice Operations			International Foodservice Operations			SYGMA			Other			Corporate			Consolidated Totals
	(In thousands)
Sales	$	19,530,167		$	5,772,298		$	3,273,816		$	485,633		$	—		$	29,061,914
Percentage of total	67.2		%	19.9		%	11.3		%	1.6		%				100.0		%
Operating income	$	1,489,656		$	129,398		$	8,198		$	13,113		$	(492,448	)	$	1,147,917
Percentage of total segments	90.8		%	7.9		%	0.5		%	0.8		%				100.0		%
Operating income as a percentage of sales	7.6		%	2.2		%	0.3		%	2.7		%				3.9		%

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Based on information in Note 14, “Business Segment Information,” in the second quarter and first 26 weeks of fiscal 2019, U.S. Foodservice Operations and International Foodservice Operations, collectively, represented approximately 87.9% and 87.1% of Sysco’s overall sales, respectively. In the second quarter and first 26 weeks of fiscal 2019, U.S. Foodservice Operations and International Foodservice Operations collectively represented approximately 98.8% and 98.7% of the total segment operating income, respectively. This illustrates that these segments represent the majority of our total segment results when compared to the other reportable segment.

Results of U.S. Foodservice Operations

The following table sets forth a summary of the components of operating income expressed as a percentage increase or decrease over the comparable period in the prior year:

	13-Week Period Ended Dec. 29, 2018		13-Week Period Ended Dec. 30, 2017		Change in Dollars		% Change
	(In thousands)
Sales	$	10,087,105	$	9,681,225	$	405,880	4.2	%
Gross profit	2,001,819		1,915,466		86,353		4.5
Operating expenses	1,264,342		1,207,885		56,457		4.7
Operating income	$	737,477	$	707,581	$	29,896	4.2	%
	26-Week Period Ended Dec. 29, 2018		26-Week Period Ended Dec. 30, 2017		Change in Dollars		% Change
	(In thousands)
Sales	$	20,486,516	$	19,530,167	$	956,349	4.9	%
Gross profit	4,092,046		3,901,749		190,297		4.9
Operating expenses	2,538,811		2,412,093		126,718		5.3
Operating income	$	1,553,235	$	1,489,656	$	63,579	4.3	%

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Sales

The following table sets forth the percentage and dollar value increase or decrease in the major factors impacting sales as compared to the corresponding prior year period in order to demonstrate the cause and magnitude of change.

	Increase (Decrease)
	13-Week Period
	(In millions)
Cause of change	Percentage		Dollars
Case volume	1.7	%	$	165.2
Inflation	1.4		136.7
Acquisitions	0.8		78.8
Other (1)	0.3		25.2
Total sales increase	4.2	%	$	405.9
	Increase (Decrease)
	26-Week Period
	(Dollars in millions)
Cause of change	Percentage		Dollars
Case volume	2.8	%	$	543.9
Inflation	0.7		137.3
Acquisitions	1.1		214.2
Other (1)	0.3		60.9
Total sales increase	4.9	%	$	956.3

⁽¹⁾  Case volume excludes the volume impact from our custom-cut meat companies that do not measure volume in cases. Any impact in volumes from these operations is included within “Other.”

Sales for the second quarter of fiscal 2019 were 4.2% higher than the second quarter of fiscal 2018. The primary driver of the increase was case volume growth and inflation in our U.S. Broadline operations. Case volumes from our U.S. Broadline operations, including acquisitions within the last 12 months, increased 2.9% in the second quarter of fiscal 2019 compared to the second quarter of fiscal 2018 and included a 3.3% improvement in locally managed customer case growth, along with an increase of 2.4% in national customer case volume, including chain restaurants and multi-locational restaurants. Sales from acquisitions within the last 12 months favorably impacted locally managed customer sales by 0.9% for the second quarter of fiscal 2019; therefore, organic local case volume, which excludes acquisitions, grew 2.4%. Sales for the first 26 weeks of fiscal 2019 were 4.9% higher than the first 26 weeks of fiscal 2018. The primary driver of the increase was a mix of both local and national customer case volume growth in our U.S. Broadline operations, as well as inflation. Case volumes from our U.S. Broadline operations, including acquisitions within the last 12 months, increased 4.3% in the first 26 weeks of fiscal 2019 compared to the first 26 weeks of fiscal 2018 and included a 4.2% improvement in locally managed customer case growth, along with an increase of 4.4% in national customer case volume, including chain restaurants and multi-locational restaurants. Sales from acquisitions within the last 12 months favorably impacted locally managed customer sales by 1.2% for the first 26 weeks of fiscal 2019; therefore, organic local case volume, which excludes acquisitions, grew 3.0%.

Operating income increased 4.2% and 4.3% for the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018.

Gross profit dollars increased 4.5% and 4.9% in the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018, driven primarily by an increase in case growth, growth in Sysco brand, a reduction in spot market usage for inbound freight and our ongoing category management initiatives. Our Sysco brand sales to local customers increased by approximately 59 and 63 basis points for the second quarter and first 26 weeks of fiscal 2019, respectively. The estimated change in product costs, an internal measure of inflation or deflation, for the second quarter and first 26 weeks of fiscal 2019 for our U.S. Broadline operations was inflation of 1.4% and 0.8%, respectively. For the second quarter of fiscal 2019, this change in product costs was primarily driven by inflation in the frozen foods (primarily due to frozen potatoes), meat, paper and produce categories. For the first 26 weeks of fiscal 2019, this change in product costs was primarily driven by inflation in the frozen foods (primarily due to frozen potatoes), paper and dry categories, and partially offset by deflation in the

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poultry category. Gross margin, which is gross profit as a percentage of sales, was 19.85% and 19.97% in the second quarter and first 26 weeks of fiscal 2019, respectively, which was an increase of 6 basis points from the gross margin of 19.79% in the second quarter of fiscal 2018, primarily from an increase in the rate of inflation, and flat compared to the first 26 weeks of fiscal 2018.

Operating expenses for the second quarter of fiscal 2019 increased 4.7%, or $56.5 million, compared to the second quarter of fiscal 2018. Operating expenses for the first 26 weeks of fiscal 2019 increased 5.3%, or $126.7 million, compared to the first 26 weeks of fiscal 2018. Our operating expense growth is primarily driven by continued increases in supply chain costs in both transportation and warehouse, including significant overtime expense, due to the tight labor market. Additionally, higher fuel costs and increased bad debt expense contributed to higher costs. The growth in operating expenses for the period included a $29.9 million and $78.3 million increase in pay-related expenses in the second quarter and first 26 weeks of 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018.

Results of International Foodservice Operations

The following table sets forth a summary of the components of operating income and adjusted operating income expressed as a percentage increase or decrease over the comparable period in the prior year:

	13-Week Period Ended Dec. 29, 2018			13-Week Period Ended Dec. 30, 2017		Change in Dollars			% Change
	(In thousands)
Sales	$	2,890,598		$	2,869,043	$	21,555		0.8	%
Gross profit	589,922			599,647		(9,725		)	(1.6	)
Operating expenses	604,839			547,053		57,786			10.6
Operating income	$	(14,917	)	$	52,594	$	(67,511	)	(128.4	)%
Gross profit	$	589,922		$	599,647	$	(9,725	)	(1.6	)%
Adjusted operating expenses (Non-GAAP)	506,872			520,642		(13,770		)	(2.6	)
Adjusted operating income (Non-GAAP)	$	83,050		$	79,005	$	4,045		5.1	%
	26-Week Period Ended Dec. 29, 2018			26-Week Period Ended Dec. 30, 2017		Change in Dollars			% Change
	(In thousands)
Sales	$	5,811,548		$	5,772,298	$	39,250		0.7	%
Gross profit	1,205,427			1,214,750		(9,323		)	(0.8	)
Operating expenses	1,153,572			1,085,352		68,220			6.3
Operating income	$	51,855		$	129,398	$	(77,543	)	(59.9	)%
Gross profit	$	1,205,427		$	1,214,750	$	(9,323	)	(0.8	)%
Adjusted operating expenses (Non-GAAP)	1,026,980			1,040,529		(13,549		)	(1.3	)
Adjusted operating income (Non-GAAP)	$	178,447		$	174,221	$	4,226		2.4	%

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Sales

The following table sets forth the percentage and dollar value increase or decrease in the major components impacting sales as compared to the corresponding prior year period in order to demonstrate the cause and magnitude of change.

	Increase (Decrease)
	13-Week Period
	(In millions)
Cause of change	Percentage		Dollars
Inflation	3.1	%	$	87.7
Acquisitions	1.0		29.6
Foreign currency	(3.4	)	(96.5		)
Other (1)	0.1		0.8
Total sales increase	0.8	%	$	21.6
	Increase (Decrease)
	26-Week Period
	(In millions)
Cause of change	Percentage		Dollars
Inflation	2.7	%	$	153.4
Acquisitions	1.0		60.0
Foreign currency	(2.7	)	(158.0		)
Other (1)	(0.3	)	(16.2		)
Total sales increase	0.7	%	$	39.2

⁽¹⁾  The impact of volumes as a component of sales growth from international operations are included within “Other.” Volume in our foreign operations includes volume metrics that differ from country to country and cannot be aggregated on a consistent, comparable basis.

Sales for the second quarter and first 26 weeks of fiscal 2019 were 0.8% and 0.7% higher, respectively, than the second quarter and first 26 weeks of fiscal 2018, primarily due to product cost inflation in Europe and Canada, partially offset by changes in foreign exchange rates used to translate our foreign sales into U.S. dollars. Sales performance improved in Canada in the second quarter and first 26 weeks of fiscal 2019 compared to the second quarter and first 26 weeks of fiscal 2018. Sales grew in the U.K., but were impacted by continued uncertainty surrounding Brexit. Our business in France was impacted by the yellow vest protests during the critical holiday time frame. We had moderate increases in sales within our Latin America operations, with solid performance in our Costa Rica, Bahamas and Panama operations, partially offset by ongoing challenges in Mexico.

Operating income decreased by $67.5 million and $77.5 million, or 128.4% and 59.9%, for the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018. Our operating expenses increased during the second quarter and first 26 weeks of fiscal 2019, due to investments we made in our business and from increased supply chain costs in both transportation and warehouse in our Canadian and U.K. operations. Supply chain costs in the U.K. also increased as we onboarded several new customers to the business. The investments that we are making in our business include the integration of Brake France and Davigel into Sysco France, Ireland integration and regionalization activities in Canada. These activities resulted in restructuring charges that were combined with our Brakes Acquisition-related costs that are included within Certain Items. Operating income, on an adjusted basis, increased by $4.0 million and $4.2 million, or 5.1% and 2.4%, for the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018. We have accelerated the investments we are making related to our long-term strategic growth plans in Europe, which are designed to enrich the customer experience and position us well in these markets.

Gross profit dollars decreased by 1.6% and 0.8% in the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018, primarily attributable to changes in foreign exchange rates and challenges in local customer margins in Canada.

Operating expenses for the second quarter and first 26 weeks of fiscal 2019 increased 10.6% and 6.3%, or $57.8 million and $68.2 million, respectively, compared to the second quarter and first 26 weeks of fiscal 2018, due to investments we made in

40

our business and increased supply chain costs in both transportation and warehouse in our Canadian and U.K. operations. Supply chain costs in the U.K. also increased as we onboarded several new customers to the business. The investments that we are making in our business include the integration of Brake France and Davigel into Sysco France, Ireland integration and regionalization activities in Canada. These activities resulted in restructuring charges that were combined with our Brakes Acquisition-related costs that are included within Certain Items. We incurred restructuring charges of $54.9 million and $56.2 million relating to our France integration during the second quarter and first 26 weeks of fiscal 2019, respectively. Operating expenses, on an adjusted basis, for the second quarter and first 26 weeks of fiscal 2019 decreased 2.6% and 1.3%, or $13.8 million and $13.5 million, respectively, compared to the second quarter and first 26 weeks of fiscal 2018. Changes in foreign exchange rates used to translate our foreign operating expenses into U.S. dollars contributed to these decreases.

Results of SYGMA and Other Segment

For SYGMA, sales were 5.9% and 3.5% lower in the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018, primarily from a modest decline in case volume from some larger customers, along with the exit of certain customers during the quarter, as we continue to take a disciplined approach toward increased profitability. Operating income decreased by $0.2 million and $2.7 million in the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of fiscal 2018, due to increased expenses, including transportation costs in supply chain driven by costs related to labor, driver staffing and accelerated fleet purchases. We continue to optimize our business in the segment and remain focused on improving our operational performance.

For the operations that are grouped within Other, operating income decreased 7.5%, or $0.5 million, in the second quarter of fiscal 2019, as compared to the second quarter of fiscal 2018. Operating income increased 22.4%, $2.9 million, in the first 26 weeks of fiscal 2019, as compared to the first 26 weeks of fiscal 2018. Guest Supply gross profit grew 5.2% and 6.7% respectively, in the second quarter and first 26 weeks of fiscal 2019; however, the business continued to experience cost challenges, due to the impact of tariffs, product availability and increased cost of shipping products to our customers.

Corporate Expenses

Corporate expenses in the second quarter of fiscal 2019 increased $33.5 million, or 13.9%, as compared to the second quarter of fiscal 2018, due primarily to an increase in expenses related to our business technology initiatives, including depreciation on certain enterprise resource planning (ERP) systems and software platforms, along with higher pay-related expenses. Corporate expenses in the first 26 weeks of fiscal 2019 increased $47.7 million, or 9.7%, as compared to the first 26 weeks of fiscal 2018, due primarily to an increase in expenses related to our business technology initiatives, including depreciation on certain ERP systems and software platforms that we are no longer using, along with higher pay-related expenses, partly driven by higher severance and relocation charges. Corporate expenses, on an adjusted basis, increased $0.7 million, or 0.3%, and $0.4 million, or 0.1%, as compared to the second quarter and first 26 weeks of fiscal 2018, respectively.

Included in corporate expenses are Certain Items that totaled $53.5 million and $88.4 million in the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to $20.8 million and $41.2 million in the second quarter and first 26 weeks of fiscal 2018. Certain Items impacting the second quarter of fiscal 2019 were primarily expenses associated with our business transformation initiatives. Certain Items impacting the first 26 weeks of fiscal 2019 were primarily expenses associated with our business transformation initiatives along with severance charges. Certain Items in the second quarter and first 26 weeks of fiscal 2018 were primarily expenses associated with our business technology transformation initiatives, Brakes integration costs, professional fees on three-year financial objectives and severance charges.

Interest Expense

Interest expense increased $1.1 million and $9.3 million for the second quarter and first 26 weeks of fiscal 2019, as compared to the second quarter and first 26 weeks of fiscal 2018, respectively, primarily due to higher floating interest rates and a higher average balance of fixed rate debt.

Net Earnings

Net earnings decreased5.9% and increased 7.2% in the second quarter and first 26 weeks of fiscal 2019, respectively, as compared to the second quarter and first 26 weeks of the prior year, due primarily to the items noted above for operating income and interest expense, as well as items impacting our income taxes that are discussed in Note 12, “Income Taxes.” These included lower tax rates enacted from the Tax Cuts and Job Act (Tax Act), the favorable impact of excess tax benefits of equity-based compensation, partially offset by the unfavorable impact attributable to certain provisions of the Tax Act. In the second quarter of fiscal 2018, lower U.S. tax rates from the Tax Act were not yet fully applicable; however, we recorded a retroactive benefit back

41

to the beginning of fiscal 2018. While U.S. tax rates are lower in fiscal 2019 as compared to fiscal 2018, the retroactive benefit resulted in a larger benefit in the second quarter of fiscal 2018 as compared to the second quarter of fiscal 2019.

Adjusted net earnings, excluding Certain Items, decreased4.5% in the second quarter of fiscal 2019, primarily due to an unfavorable tax expense comparison to the prior year. Adjusted net earnings, excluding Certain Items, increased 8.2% in the first 26 weeks of fiscal 2019, primarily from gross profit growth and favorable expense growth, as well as tax benefits.

Earnings Per Share

Basic earnings per share in the second quarter of fiscal 2019 were $0.52, a 5.5% decrease from the comparable prior year period amount of $0.55 per share. Diluted earnings per share in the second quarter of fiscal 2019 were $0.51, a 5.6% decrease from the comparable prior year period amount of $0.54 per share. Adjusted diluted earnings per share, excluding Certain Items, in the second quarter of fiscal 2019 were $0.75, a 4.0% decrease from the comparable prior year period amount of $0.78 per share. These results were primarily attributable to the factors discussed above related to net earnings in the second quarter of fiscal 2019, including the retroactive benefit we recorded in the second quarter of fiscal 2018, which resulted in a larger benefit as compared to the second quarter of fiscal 2019.

Basic earnings per share in the first 26 weeks of fiscal 2019 were $1.34, an 8.1% increase from the comparable prior year period amount of $1.24 per share. Diluted earnings per share in the first 26 weeks of fiscal 2019 were $1.33, an 8.1% increase from the comparable prior year period amount of $1.23 per share. Adjusted diluted earnings per share, excluding Certain Items, in the first 26 weeks of fiscal 2019 were $1.66, a 9.0% increase from the comparable prior year period amount of $1.52 per share. These results were primarily attributable to the factors discussed above related to net earnings in the first 26 weeks of fiscal 2019, including the retroactive benefit we recorded in the first 26 weeks of fiscal 2018, which resulted in a larger benefit as compared to the first 26 weeks of fiscal 2019.

Non-GAAP Reconciliations

Sysco’s results of operations for fiscal 2019 and 2018 are impacted by restructuring and transformational project costs consisting of: (1) expenses associated with our various transformation initiatives; (2) severance and facility closure charges; and (3) restructuring charges. Our results of operations for fiscal 2019 and 2018 are also impacted by the following acquisition-related items: (1) intangible amortization expense and (2) integration costs. All acquisition-related costs in fiscal 2019 and 2018 that have been excluded relate to the fiscal 2017 Brakes Acquisition.

The fiscal 2019 and fiscal 2018 items described above and excluded from our non-GAAP measures are collectively referred to as “Certain Items.” Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove these Certain Items, provides an important perspective with respect to our underlying business trends and results and provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations, facilitating comparisons on a year-over-year basis and (2) removes those items that are difficult to predict and are often unanticipated and that, as a result, are difficult to include in analysts’ financial models and our investors’ expectations with any degree of specificity.

Although Sysco has a history of growth through acquisitions, the Brakes Group was significantly larger than the companies historically acquired by Sysco, with a proportionately greater impact on Sysco’s consolidated financial statements. Accordingly, Sysco is excluding from its non-GAAP financial measures for the relevant period solely those acquisition costs specific to the Brakes Acquisition. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2019 and fiscal 2018.

Set forth below is a reconciliation of sales, operating expenses, operating income, interest expense, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not add to the total presented due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.

42

	13-Week Period Ended Dec. 29, 2018			13-Week Period Ended Dec. 30, 2017			Change in Dollars			% Change
	(In thousands, except for share and per share data)
Operating expenses (GAAP)	$	2,319,817		$	2,170,834		$	148,983		6.9	%
Impact of restructuring and transformational project costs (1)	(134,436		)	(21,377		)	(113,059		)	NM
Impact of acquisition-related costs (2)	(17,008		)	(25,799		)	8,791			(34.1	)
Operating expenses adjusted for Certain Items (Non-GAAP)	$	2,168,373		$	2,123,658		$	44,715		2.1	%
Operating income (GAAP)	$	451,895		$	528,552		$	(76,657	)	(14.5	)%
Impact of restructuring and transformational project costs (1)	134,436			21,377			113,059			NM
Impact of acquisition-related costs (2)	17,008			25,799			(8,791		)	(34.1	)
Operating income adjusted for Certain Items (Non-GAAP)	$	603,339		$	575,728		$	27,611		4.8	%
Net earnings (GAAP)	$	267,380		$	284,113		$	(16,733	)	(5.9	)%
Impact of restructuring and transformational project costs (1)	134,436			21,377			113,059			NM
Impact of acquisition-related costs (2)	17,008			25,799			(8,791		)	(34.1	)
Tax impact of restructuring and transformational project costs (3)	(34,886		)	(5,691		)	(29,195		)	NM
Tax impact of acquisition-related costs (3)	(5,611		)	(6,110		)	499			(8.2	)
Impact of U.S. transition tax	15,154			115,000			(99,846		)	(86.8	)
Impact of U.S. balance sheet remeasurement from tax law change	—			(14,477		)	14,477			NM
Impact of France and U.K. tax law changes	—			(8,137		)	8,137			NM
Net earnings adjusted for Certain Items (Non-GAAP)	$	393,481		$	411,874		$	(18,393	)	(4.5	)%
Diluted earnings per share (GAAP)	$	0.51		$	0.54		$	(0.03	)	(5.6	)%
Impact of restructuring and transformational project costs (1)	0.26			0.04			0.22			NM
Impact of acquisition-related costs (2)	0.03			0.05			(0.02		)	(40.0	)
Tax impact of restructuring and transformational project costs (3)	(0.07		)	(0.01		)	(0.06		)	NM
Tax impact of acquisition-related costs (3)	(0.01		)	(0.01		)	—			—
Impact of U.S. transition tax	0.03			0.22			(0.19		)	(86.4	)
Impact of U.S. balance sheet remeasurement from tax law change	—			(0.03		)	0.03			NM
Impact of France and U.K. tax law changes	—			(0.02		)	0.02			NM
Diluted EPS adjusted for Certain Items (Non-GAAP) (4)	$	0.75		$	0.78		$	(0.03	)	(4.0	)%

⁽¹⁾  Fiscal 2019 includes $53 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy, of which $17 million relates to accelerated depreciation related to software that is being replaced, and $81 million related to severance, restructuring and facility closure charges in Europe and Canada, of which $55 million relates to our France restructuring as part of our integration of Brake France and Davigel into Sysco France. Fiscal 2018 includes $16 million related to business technology costs and professional fees on three-year financial objectives and $6 million related to restructuring charges.

⁽²⁾  Fiscal 2019 and fiscal 2018 include $18 million and $19 million, respectively, related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes. Fiscal 2018 includes $5 million in integration costs.

⁽³⁾  The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.

⁽⁴⁾  Individual components of diluted earnings per share may not add to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.

NM represents that the percentage change is not meaningful.

43

	26-Week Period Ended Dec. 29, 2018			26-Week Period Ended Dec. 30, 2017			Change in Dollars			% Change
	(In thousands, except for share and per share data)
Operating expenses (GAAP)	$	4,595,462		$	4,345,137		$	250,325		5.8	%
Impact of restructuring and transformational project costs (1)	(175,339		)	(40,430		)	(134,909		)	NM
Impact of acquisition-related costs (2)	(39,645		)	(45,545		)	5,900			(13.0	)
Operating expenses adjusted for Certain Items (Non-GAAP)	$	4,380,478		$	4,259,162		$	121,316		2.8	%
Operating income (GAAP)	$	1,080,035		$	1,147,917		$	(67,882	)	(5.9	)%
Impact of restructuring and transformational project costs (1)	175,339			40,430			134,909			NM
Impact of acquisition-related costs (2)	39,645			45,545			(5,900		)	(13.0	)
Operating income adjusted for Certain Items (Non-GAAP)	$	1,295,019		$	1,233,892		$	61,127		5.0	%
Net earnings (GAAP)	$	698,422		$	651,753		$	46,669		7.2	%
Impact of restructuring and transformational project costs (1)	175,339			40,430			134,909			NM
Impact of acquisition-related costs (2)	39,645			45,545			(5,900		)	(13.0	)
Tax impact of restructuring and transformational project costs (3)	(45,560		)	(12,634		)	(32,926		)	NM
Tax impact of acquisition-related costs (3)	(10,302		)	(11,108		)	806			(7.3	)
Impact of U.S. transition tax	15,154			115,000			(99,846		)	(86.8	)
Impact of U.S. balance sheet remeasurement from tax law change	—			(14,477		)	14,477			NM
Impact of France and U.K. tax law changes	—			(8,137		)	8,137			NM
Net earnings adjusted for Certain Items (Non-GAAP)	$	872,698		$	806,372		$	66,326		8.2	%
Diluted earnings per share (GAAP)	$	1.33		$	1.23		$	0.10		8.1	%
Impact of restructuring and transformational project costs (1)	0.33			0.08			0.25			NM
Impact of acquisition-related costs (2)	0.08			0.09			(0.01		)	(11.1	)
Tax impact of restructuring and transformational project costs (3)	(0.09		)	(0.02		)	(0.07		)	NM
Tax impact of acquisition-related costs (3)	(0.02		)	(0.02		)	—			—
Impact of U.S. transition tax	0.03			0.22			(0.19		)	(86.4	)
Impact of U.S. balance sheet remeasurement from tax law change	—			(0.03		)	0.03			NM
Impact of France and U.K. tax law changes	—			(0.02		)	0.02			NM
Diluted EPS adjusted for Certain Items (Non-GAAP) (4)	$	1.66		$	1.52		$	0.14		9.0	%

⁽¹⁾  Fiscal 2019 includes $79 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy, of which $17 million relates to accelerated depreciation related to software that is being replaced, and $96 million related to severance, restructuring and facility closure charges in Europe and Canada, of which $56 million relates to our France restructuring as part of our integration of Brake France and Davigel into Sysco France. Fiscal 2018 includes $29 million related to business technology costs and professional fees on three-year financial objectives and $11 million related to restructuring charges.

⁽²⁾  Fiscal 2019 and fiscal 2018 include $39 million and $31 million, respectively, related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes, and $1 million and $10 million, respectively, related to integration costs.

⁽³⁾  The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.

⁽⁴⁾  Individual components of diluted earnings per share may not add to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.

NM represents that the percentage change is not meaningful.

44

Set forth below is a reconciliation by segment of actual operating expenses and operating income to adjusted results for these measures for applicable segments and corporate for the periods presented:

	13-Week Period Ended Dec. 29, 2018			13-Week Period Ended Dec. 30, 2017			Change in Dollars			% Change
	(In thousands)
INTERNATIONAL FOODSERVICE OPERATIONS
Operating expenses (GAAP)	$	604,839		$	547,053		$	57,786		10.6	%
Impact of restructuring and transformational project costs (1)	(81,020		)	(5,602		)	(75,418		)	NM
Impact of acquisition-related costs (2)	(16,947		)	(20,809		)	3,862			(18.6	)
Operating expenses adjusted for Certain Items (Non-GAAP)	$	506,872		$	520,642		$	(13,770	)	(2.6	)%
Operating income (GAAP)	$	(14,917	)	$	52,594		$	(67,511	)	NM
Impact of restructuring and transformational project costs (1)	81,020			5,602			75,418			NM
Impact of acquisition related costs (2)	16,947			20,809			(3,862		)	(18.6	)
Operating income adjusted for Certain Items (Non-GAAP)	$	83,050		$	79,005		$	4,045		5.1	%
CORPORATE
Operating expenses (GAAP)	$	274,430		$	240,972		$	33,458		13.9	%
Impact of restructuring and transformational project costs (3)	(53,417		)	(15,775		)	(37,642		)	NM
Impact of acquisition-related costs (4)	(61		)	(4,990		)	4,929			(98.8	)
Operating expenses adjusted for Certain Items (Non-GAAP)	$	220,952		$	220,207		$	745		0.3	%
Operating income (GAAP)	$	(279,497	)	$	(241,157	)	$	(38,340	)	15.9	%
Impact of restructuring and transformational project costs (3)	53,417			15,775			37,642			NM
Impact of acquisition-related costs (4)	61			4,990			(4,929		)	(98.8	)
Operating income adjusted for Certain Items (Non-GAAP)	$	(226,019	)	$	(220,392	)	$	(5,627	)	2.6	%

⁽¹⁾  Includes $55 million of restructuring charges in France and other restructuring, severance and facility closure costs in Europe and Canada.

⁽²⁾  Fiscal 2019 and fiscal 2018 include $18 million and $19 million, respectively, related to intangible amortization expense from the Brakes Acquisition.

⁽³⁾  Fiscal 2019 and fiscal 2018 include various transformation initiative costs, primarily consisting of changes to our business technology strategy, including $17 million of accelerated depreciation on software that is being replaced, and severance charges related to restructuring.

⁽⁴⁾  Fiscal 2018 included $5 million in integration costs from the Brakes Acquisition.

NM represents that the percentage change is not meaningful.

45

	26-Week Period Ended Dec. 29, 2018			26-Week Period Ended Dec. 30, 2017			Change in Dollars			% Change
	(In thousands)
INTERNATIONAL FOODSERVICE OPERATIONS
Operating expenses (GAAP)	$	1,153,572		$	1,085,352		$	68,220		6.3	%
Impact of restructuring and transformational project costs (1)	(87,746		)	(9,500		)	(78,246		)	NM
Impact of acquisition-related costs (2)	(38,846		)	(35,323		)	(3,523		)	10.0
Operating expenses adjusted for Certain Items (Non-GAAP)	$	1,026,980		$	1,040,529		$	(13,549	)	(1.3	)%
Operating income (GAAP)	$	51,855		$	129,398		$	(77,543	)	(59.9	)%
Impact of restructuring and transformational project costs (1)	87,746			9,500			78,246			NM
Impact of acquisition related costs (2)	38,846			35,323			3,523			10.0
Operating income adjusted for Certain Items (Non-GAAP)	$	178,447		$	174,221		$	4,226		2.4	%
CORPORATE
Operating expenses (GAAP)	$	538,778		$	491,111		$	47,667		9.7	%
Impact of restructuring and transformational project costs (3)	(87,593		)	(30,930		)	(56,663		)	NM
Impact of acquisition-related costs (4)	(799		)	(10,222		)	9,423			(92.2	)
Operating expenses adjusted for Certain Items (Non-GAAP)	$	450,386		$	449,959		$	427		0.1	%
Operating income (GAAP)	$	(546,653	)	$	(492,448	)	$	(54,205	)	11.0	%
Impact of restructuring and transformational project costs (3)	87,593			30,930			56,663			NM
Impact of acquisition-related costs (4)	799			10,222			(9,423		)	(92.2	)
Operating income adjusted for Certain Items (Non-GAAP)	$	(458,261	)	$	(451,296	)	$	(6,965	)	1.5	%

⁽¹⁾  Includes $56 million of restructuring charges in France and other restructuring, severance and facility closure costs in Europe and Canada.

⁽²⁾  Fiscal 2019 and fiscal 2018 include $39 million and $31 million, respectively, related to intangible amortization expense from the Brakes Acquisition.

⁽³⁾  Fiscal 2019 and fiscal 2018 include various transformation initiative costs, primarily consisting of changes to our business technology strategy, including $17 million of accelerated depreciation on software that is being replaced, and severance charges related to restructuring.

⁽⁴⁾  Fiscal 2019 and fiscal 2018 include $1 million and $10 million, respectively, related to integration costs from the Brakes Acquisition.

NM represents that the percentage change is not meaningful.

46

Three-Year Financial Targets

Sysco management considers adjusted return on invested capital (ROIC) to be a measure that provides useful information to management and investors in evaluating the efficiency and effectiveness of the company’s long-term capital investments. In addition, we have targets and expectations that are based on adjusted results, including an adjusted ROIC target of 16% under our three-year plan. We cannot predict with certainty whether or when we will achieve these results or whether the calculation of our ROIC in such future periods will be on an adjusted basis due to the effect of Certain Items, which would be excluded from such calculation. Due to these uncertainties, to the extent our future calculation of ROIC is on an adjusted basis excluding Certain Items, we cannot provide a quantitative reconciliation of this non-GAAP measure to the most directly comparable GAAP measure without unreasonable effort. However, we would expect to calculate adjusted ROIC, if applicable, in the same manner as we have calculated this historically. All components of our adjusted ROIC calculation would be impacted by Certain Items. We calculate adjusted ROIC as adjusted net earnings divided by (i) stockholders’ equity, computed as the average of adjusted stockholders’ equity at the beginning of the year and at the end of each fiscal quarter during the year; and (ii) long-term debt, computed as the average of the long-term debt at the beginning of the year and at the end of each fiscal quarter during the year.

Form of calculation:

Net earnings (GAAP)

Impact of Certain Items on net earnings

Adjusted net earnings (Non-GAAP)

Invested Capital (GAAP)

Adjustments to invested capital

Adjusted Invested capital (Non-GAAP)

Return on invested capital (GAAP)

Return on invested capital (Non-GAAP)

Additional targets and expectations include our adjusted operating income target that we expect to achieve by the end of fiscal 2020 under our three-year plan. Our three-year plan further includes target amounts for adjusted net earnings and adjusted diluted earnings per share. Due to uncertainties in projecting Certain Items, we cannot provide a quantitative reconciliation of these non-GAAP measures to the most directly comparable GAAP measures without unreasonable effort. However, we would expect to calculate these adjusted results, if applicable, in the same manner as the reconciliations provided for historical periods presented herein. The impact of future Certain Items could cause projected non-GAAP amounts to differ significantly from our GAAP results.

47

We are halfway into the three-year period under our strategic plan and are measuring our operating income performance against our targets on an adjusted basis. The following reconciles operating income cumulative growth from an adjusted to a GAAP basis.

	Year Ended									26-Week Period Ended
	June 30, 2018			July 1, 2017			Cumulative 4-Quarter Growth			December 29, 2018			December 30, 2017			Cumulative 2-Quarter Growth			Cumulative 6-Quarter Growth
Sales	$	58,727,324		$	55,371,139		$	3,356,185		$	29,980,986		$	29,061,914		$	919,072
Gross profit	$	11,085,391		$	10,557,507		$	527,884		$	5,675,497		$	5,493,054		$	182,443
Gross margin	18.88		%	19.07		%	(0.19		)%	18.93		%	18.90		%	0.03		%
Operating expenses (GAAP)	$	8,771,335		$	8,502,891		$	268,444		$	4,595,462		$	4,345,137		$	250,325
MEPP Charge	(1,700		)	(35,600		)	33,900			—			—			—
Impact of restructuring and transformational project costs (1)	(109,524		)	(161,011		)	51,487			(175,339		)	(40,430		)	(134,909		)
Impact of acquisition-related costs (2)	(108,136		)	(102,049		)	(6,087		)	(39,645		)	(45,545		)	5,900
Operating expenses adjusted for Certain Items (Non-GAAP)	$	8,551,975		$	8,204,231		$	347,744		$	4,380,478		$	4,259,162		$	121,316
Operating income (GAAP)	$	2,314,056		$	2,054,616		$	259,440		$	1,080,035		$	1,147,917		$	(67,882	)	$	191,558
MEPP Charge	1,700			35,600			(33,900		)	—			—			—			(33,900		)
Impact of restructuring and transformational project costs (1)	109,524			161,011			(51,487		)	175,339			40,430			134,909			83,422
Impact of acquisition-related costs (2)	108,136			102,049			6,087			39,645			45,545			(5,900		)	187
Operating income adjusted for Certain Items (Non-GAAP)	$	2,533,416		$	2,353,276		$	180,140		$	1,295,019		$	1,233,892		$	61,127		$	241,267

⁽¹⁾  Fiscal 2019 includes $79 million related to various transformation initiative costs, of which $17 million pertains to accelerated depreciation related to software that is being replaced, and $96 million related to severance, restructuring and facility closure charges, of which $56 million relates to our France restructuring. Fiscal 2018 includes $29 million related to business technology costs and professional fees on three-year financial objectives and $11 million related to restructuring charges.

⁽²⁾  Fiscal 2019 and fiscal 2018 include $39 million and $31 million, respectively, related to intangible amortization expense from the Brakes Acquisition, which is included in the results of Brakes, and $1 million and $10 million, respectively, in integration costs.

Liquidity and Capital Resources

Highlights

Comparisons of the cash flows from the first 26 weeks of fiscal 2019 to the first 26 weeks of fiscal 2018:

• Cash flows from operations were $917.8 million in fiscal 2019, compared to $933.2 million in fiscal 2018;

• Net capital expenditures totaled $216.9 million in fiscal 2019, compared to $254.7 million in fiscal 2018;

• Free cash flow was $700.9 million in fiscal 2019, compared to free cash flow of $678.5 million in fiscal 2018 (see below under the heading “Free Cash Flow” for an explanation of this non-GAAP financial measure);

• There were $109.9 million of commercial paper issuances or net bank borrowings in fiscal 2019, compared to $630.3 million of commercial paper issuances and net bank borrowings in fiscal 2018;

• Dividends paid were $379.2 million in fiscal 2019, compared to $346.9 million in fiscal 2018; and

• Cash paid for treasury stock repurchases was $739.2 million in fiscal 2019, compared to $750.5 million in fiscal 2018.

In addition, with regard to our senior notes:

• We issued CDN $500.0 million in new senior notes in the first 26 weeks of fiscal 2019 within a Canadian subsidiary.

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Sources and Uses of Cash

Sysco’s strategic objectives include continuous investment in our business; these investments are funded by a combination of cash from operations and access to capital from financial markets. Our operations historically have produced significant cash flow. Cash generated from operations is generally allocated to:

• working capital requirements;

• investments in facilities, systems, fleet, other equipment and technology;

• cash dividends;

• acquisitions compatible with our overall growth strategy;

• contributions to our various retirement plans; and

• debt repayments and share repurchases.

Any remaining cash generated from operations may be invested in high-quality, short-term instruments. As a part of our ongoing strategic analysis, we regularly evaluate business opportunities, including potential acquisitions and sales of assets and businesses, and our overall capital structure. Any transactions resulting from these evaluations may materially impact our liquidity, borrowing capacity, leverage ratios and capital availability.

We continue to generate substantial cash flows from operations and remain in a strong financial position; however, our liquidity and capital resources can be influenced by economic trends and conditions that impact our results of operations. We believe our mechanisms to manage working capital, such as credit monitoring, optimizing inventory levels and maximizing payment terms with vendors, and our mechanisms to manage the items impacting our gross profits have been sufficient to limit a significant unfavorable impact on our cash flows from operations. We believe these mechanisms will continue to prevent a significant unfavorable impact on our cash flows from operations. Seasonal trends also impact our cash flows from operations and free cash flow, as we use more cash earlier in the fiscal year and then see larger, sequential quarterly increases throughout the remainder of the year.

As of December 29, 2018, we had $744.8 million in cash and cash equivalents, approximately 39% of which was held by our international subsidiaries generated from our earnings of international operations. If these earnings were transferred among countries or repatriated to the U.S., such amounts may be subject to withholding and additional foreign tax obligations. Additionally, Sysco Corporation has provided intercompany loans to certain of its international subsidiaries, and when interest and principal payments are made, some of this cash will move to the U.S.

Our wholly owned captive insurance subsidiary (the Captive), must maintain a sufficient level of cash to fund future reserve payments. As of December 29, 2018, we had $152.2 million of restricted cash and restricted cash equivalents primarily held by the Captive in a cash deposit account in order to meet solvency requirements.

We believe the following sources will be sufficient to meet our anticipated cash requirements for the next twelve months, while maintaining sufficient liquidity for normal operating purposes:

• our cash flows from operations;

• the availability of additional capital under our existing commercial paper programs, supported by our revolving credit facility and bank line of credit; and

• our ability to access capital from financial markets, including issuances of debt securities, either privately or under our shelf registration statement filed with the Securities and Exchange Commission (SEC).

Due to our strong financial position, we believe that we will continue to be able to effectively access the commercial paper market and long-term capital markets, if necessary.

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Cash Flows

Operating Activities

We generated $917.8 million in cash flows from operations in the first 26 weeks of fiscal 2019, compared to cash flows of $933.2 million in the first 26 weeks of fiscal 2018. These amounts include year-over-year unfavorable comparisons on income taxes, partially offset by favorable comparisons on accrued expenses, as well as increased working capital.

Total tax payments have increased by $252.7 million in the first 26 weeks of fiscal 2019, as compared to the first 26 weeks of fiscal 2018. The first 26 weeks of fiscal 2018 included a deferral of tax payments due to relief provided in connection with Hurricane Harvey.

The positive comparison on accrued expenses was primarily due to a $66.4 million increase in accrued severance primarily related to restructuring in our European operations, and a $30.3 million increase in accrued taxes and licenses.

Changes in working capital, primarily accounts payable, had a positive impact of $110.5 million on cash flow from operations period-over-period. There was a favorable comparison on accounts payable, which was partially offset by unfavorable comparisons on receivables and inventory. The net increase in working capital is attributable to working capital initiatives enabling slower payments to suppliers and quicker cash collections from customers year-over-year.

Investing Activities

Our capital expenditures in the first 26 weeks of fiscal 2019 primarily consisted of facility replacements and expansions, technology equipment, fleet and warehouse equipment. Our capital expenditures in the first 26 weeks of fiscal 2019 were lowerby $34.8 million, as compared to the first 26 weeks of fiscal 2018.

During the first 26 weeks of fiscal 2018, we paid $147.6 million for acquisitions made during fiscal 2018, net of cash acquired primarily for the acquisitions, including HFM and the remaining 50% interest in our joint venture in Costa Rica. There were no such acquisitions made in the first 26 weeks of fiscal 2019.

Free Cash Flow

Free cash flow represents net cash provided from operating activities, less purchases of plant and equipment, plus proceeds from sales of plant and equipment. Sysco considers free cash flow to be a non-GAAP liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases and sales of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash, including dividend payments, share repurchases and acquisitions. However, free cash flow may not be available for discretionary expenditures, as it may be necessary that we use it to make mandatory debt service or other payments. Our free cash flow for the first 26 weeks of fiscal 2019 increased by $22.4 million, to $700.9 million, as compared to the first 26 weeks of fiscal 2018, principally as a result of a year-over-year reduction in capital expenditures, partially offset by a decrease in cash flows from operations, which includes the impact deferring tax payments in the first 26 weeks of fiscal 2018 due to relief provided in connection with Hurricane Harvey.

Free cash flow should not be used as a substitute for the most comparable GAAP measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities.

	26-Week Period Ended Dec. 29, 2018			26-Week Period Ended Dec. 30, 2017
	(In thousands)
Net cash provided by operating activities (GAAP)	$	917,790		$	933,204
Additions to plant and equipment	(223,825		)	(258,577		)
Proceeds from sales of plant and equipment	6,901			3,878
Free Cash Flow (Non-GAAP)	$	700,866		$	678,505

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Seasonal trends also impact our free cash flow, as we typically use more cash earlier in the fiscal year and then see larger, sequential quarterly increases throughout the remainder of the year.

Financing Activities

Equity Transactions

Proceeds from exercises of share-based compensation awards were $137.9 million in the first 26 weeks of fiscal 2019, as compared to $172.3 million in the first 26 weeks of fiscal 2018. The level of option exercises, and thus proceeds, will vary from period to period and is largely dependent on movements in our stock price and the time remaining before option grants expire.

We routinely engage in share repurchase programs to allow Sysco to continue offsetting dilution resulting from shares issued under the company’s benefit plans and to make opportunistic repurchases. In November 2017, our Board of Directors approved a repurchase program to authorize the repurchase of the company’s common stock not to exceed $1.5 billion through the end of fiscal 2020. The number of shares acquired and their cost during the first 26 weeks of fiscal 2019 were 10.8 million shares for $739.2 million, compared to 14.2 million shares repurchased in the first 26 weeks of fiscal 2018 for $750.5 million. Given that our share repurchases are based on a set dollar amount program and with the increase in our share price, fewer shares are being repurchased than during the same period last year. The aggregate dollar amount of share repurchases in the first 26 weeks of fiscal 2019 is less than the first 26 weeks of fiscal 2018 due to timing. We repurchased approximately 646,000 additional shares for $40.1 million through January 18, 2019, resulting in a remaining authorization of approximately $730.3 million. The number of shares we repurchase during the remainder of fiscal 2019 will be dependent on many factors, including the level of future stock option exercises, as well as competing uses for available cash.

Dividends paid in the first 26 weeks of fiscal 2019 were $379.2 million, or $0.72 per share, as compared to $346.9 million, or $0.66 per share, in the first 26 weeks of fiscal 2018. In November 2018, we declared our regular quarterly dividend for the second quarter of fiscal 2019 of $0.39 per share, which was paid in January 2019.

Debt Activity and Borrowing Availability

Our debt activity, including issuances and repayments, and our borrowing availability is described in Note 8, “Debt.” Our outstanding borrowings at December 29, 2018, and repayment activity since the close of the second quarter of fiscal 2019, are disclosed within that note. Updated amounts through January 18, 2019, include:

• $271.5 million outstanding from our commercial paper program; and

• No amounts outstanding from the credit facility supporting the company’s U.S. commercial paper program.

During the first 26 weeks of fiscal 2019 and 2018, our aggregate commercial paper issuances and short-term bank borrowings had weighted average interest rates of 2.23% and 1.44%, respectively.

Included in current maturities of long-term debt as of December 29, 2018 are senior notes totaling $250 million, which mature in March 2019 and senior notes totaling $500 million, which mature in April 2019. Repayment of these notes at maturity could be funded through cash on hand, cash flow from operations, issuances of commercial paper, issuances of senior notes or a combination thereof.

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Contractual Obligations

Our 2018 Form 10-K contains a table that summarizes our obligations and commitments to make specified contractual future cash payments as of June 30, 2018. Since June 30, 2018, the only material change to our specified contractual obligations relates to the one-time transition tax liability. The company elected to pay the net tax liability in eight installments. Due to certain Internal Revenue Service procedures, an overpayment reflected on the tax return for fiscal 2018 is applied to the first six installments. As a result, the next installment payment is due September 2025. The following table sets forth, as of December 29, 2018, certain information regarding our transition tax liability, updating the contractual obligations and commitments to make contractual future payments disclosed in our 2018 Form 10-K:

	Payments Due by Period
									More Than
	Total		< 1 Year		1-3 Years		3-5 Years		5 Years
	(In thousands)
Recorded Contractual Obligations:
One-time transition tax liability	$	37,842	$	—	$	—	$	—	$	37,842

Critical Accounting Policies and Estimates

Critical accounting policies and estimates are those that are most important to the portrayal of our financial position and results of operations. These policies require our most subjective or complex judgments, often employing the use of estimates about the effect of matters that are inherently uncertain. We have reviewed with the Audit Committee of the Board of Directors the development and selection of the critical accounting policies and estimates and this related disclosure. Our most critical accounting policies and estimates pertain to goodwill and intangible assets, the company-sponsored pension plans, income taxes and share-based compensation, which are described in Item 7 of our 2018 Form 10-K.

Forward-Looking Statements

Certain statements made herein that look forward in time or express management’s expectations or beliefs with respect to the occurrence of future events are forward-looking statements under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” “projected,” “continues,” “continuously,” variations of such terms, and similar terms and phrases denoting anticipated or expected occurrences or results. Examples of forward-looking statements include, but are not limited to, statements about:

• our ability to increase profitability for SYGMA;

• our expectations regarding improved operating income performance in the second half of fiscal 2019;

• our expectations regarding multiple transformation initiatives, including (i) the Finance Transformation Roadmap and our expectation that we will receive financial benefits from this initiative, (ii) Smart Spending and our expectation that this initiative will provide unprecedented visibility, ownership and performance management in all areas of our business, (iii) Canadian Regionalization and our expectation that this initiative will contribute to increased cost savings and (iv) Administrative Expenses and our expectation that this initiative will drive costs out of the business to drive growth, and our expectation that we will receive financial benefits from these initiatives in the second half of fiscal 2019;

• our expectations regarding our ability to effectively centralize and standardize our business, including leveraging technology and strengthening Sysco overall;

• our expectations that our four strategic priorities, which include the customer experience, delivering operational excellence, optimizing the business and activating the power of our people, will accelerate our current growth and guide us into the future;

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• projections of future performance under our three-year strategic financial plan, including, but not limited to, our expectation that we will reach $650 to $700 million of adjusted operating income growth as compared to fiscal 2017, our goal of growing earnings per share faster than operating income, achieving 16% in adjusted return on invested capital improvement for existing businesses, and our goals of sales growth of 4% to 4.5%, adjusted operating growth of 9% and adjusted diluted earnings per share results in the range of $3.85 to $3.95 in fiscal 2020;

• our expectation regarding the acceleration of locally managed customer case growth and driving leverage between gross profit and adjusted expense growth;

• our expectations regarding the accelerated investments we are making related to our long-term strategic growth plans in Europe, and our expectations that such investments will enrich the customer experience and position us well in the European market;

• the impact of seasonal trends on our free cash flow;

• our expectations regarding the use of remaining cash generated from operations;

• our expectations regarding the impact of potential acquisitions and sales of assets on our liquidity, borrowing capacity, leverage ratios and capital availability;

• our expectations regarding the calculation of adjusted return on invested capital, adjusted operating income, adjusted net earnings and adjusted diluted earnings per share;

• our expectations regarding the impact of future Certain Items on our projected future non-GAAP and GAAP results;

• the sufficiency of our mechanisms for managing working capital and competitive pressures, and our beliefs regarding the impact of these mechanisms;

• our ability to meet future cash requirements, including the ability to access financial markets effectively, including issuances of debt securities, and maintain sufficient liquidity;

• our ability to effectively access the commercial paper market and long-term capital markets;

• our intention to repay our long-term debt with cash on hand, cash flow from operations, issuances of commercial paper, issuances of senior notes, or a combination thereof; and

• our expectations regarding share repurchases.

These statements are based on management’s current expectations and estimates; actual results may differ materially due in part to the risk factors set forth below, those within Part II, Item 1A of this document and those discussed in Item 1A of our 2018 Form 10-K:

• the risk that if sales from our locally managed customers do not grow at the same rate as sales from regional and national customers, or if we are unable to continue to accelerate local case growth, our gross margins may decline;

• the risk that we are unlikely to be able to predict inflation over the long term, and lower inflation is likely to produce lower gross profit;

• periods of significant or prolonged inflation or deflation and their impact on our product costs and profitability generally;

• the risk that our efforts to modify truck routing, including our small truck initiative, in order to reduce outbound transportation costs may be unsuccessful;

• the risk that we may not be able to accelerate and/or identify additional administrative cost savings in order to compensate for any gross profit or supply chain cost leverage challenges;

• risks related to unfavorable conditions in North America and Europe and the impact on our results of operations and financial condition;

53

• the risks related to our efforts to meet our long-term strategic objectives, including the risk that these efforts may not provide the expected benefits in our anticipated time frame, if at all, and may prove costlier than expected; the risk that the actual costs of any initiatives may be greater or less than currently expected; and the risk of adverse effects to us if past and future undertakings and the associated changes to our business do not prove to be cost effective or do not result in the level of cost savings and other benefits that we anticipated;

• the impact of unexpected future changes to our business initiatives based on management’s subjective evaluation of our overall business needs;

• the risk that the actual costs of any business initiatives may be greater or less than currently expected;

• the risk that competition in our industry and the impact of GPOs may adversely impact our margins and our ability to retain customers and make it difficult for us to maintain our market share, growth rate and profitability;

• the risk that our relationships with long-term customers may be materially diminished or terminated;

• the risk that changes in consumer eating habits could materially and adversely affect our business, financial condition, or results of operations;

• the risk that changes in applicable tax laws or regulations and the resolution of tax disputes could negatively affect our financial results;

• the risk that we may not be able to fully compensate for increases in fuel costs, and forward purchase commitments intended to contain fuel costs could result in above market fuel costs;

• the risk of interruption of supplies and increase in product costs as a result of conditions beyond our control;

• the potential impact on our reputation and earnings of adverse publicity or lack of confidence in our products;

• risks related to unfavorable changes to the mix of locally managed customers versus corporate-managed customers;

• the risk that we may not realize anticipated benefits from our operating cost reduction efforts;

• difficulties in successfully expanding into international markets and complimentary lines of business;

• the potential impact of product liability claims;

• the risk that we fail to comply with requirements imposed by applicable law or government regulations;

• risks related to our ability to effectively finance and integrate acquired businesses;

• risks related to our access to borrowed funds in order to grow and any default by us under our indebtedness that could have a material adverse impact on cash flow and liquidity;

• our level of indebtedness and the terms of our indebtedness could adversely affect our business and liquidity position;

• the risk that the implementation of various initiatives, the timing and successful completion of acquisitions, construction schedules and the possibility that other cash requirements could result in delays or cancellations of capital spending;

• the risk that the U.K.’s anticipated exit from the European Union, commonly referred to as Brexit, may adversely impact our operations in the U.K., including those of the Brakes Group;

• the risk that future labor disruptions or disputes could disrupt the integration of Brake France and Davigel into Sysco France and our operations in France and the European Union generally;

• the risk that factors beyond management’s control, including fluctuations in the stock market, as well as management’s future subjective evaluation of the company’s needs, would impact the timing of share repurchases;

• due to our reliance on technology, any technology disruption or delay in implementing new technology could have a material negative impact on our business;

• the risk that a cybersecurity incident and other technology disruptions could negatively impact our business and our relationships with customers;

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• the potential requirement to pay material amounts under our multiemployer defined benefit pension plans;

• our funding requirements for our company-sponsored qualified pension plan may increase should financial markets experience future declines;

• labor issues, including the renegotiation of union contracts and shortage of qualified labor;

• capital expenditures may vary based on changes in business plans and other factors, including risks related to the implementation of various initiatives, the timing and successful completion of acquisitions, construction schedules and the possibility that other cash requirements could result in delays or cancellations of capital spending; and

• the risk that the anti-takeover benefits provided by our preferred stock may not be viewed as beneficial to stockholders.

For a more detailed discussion of factors that could cause actual results to differ from those contained in the forward-looking statements, see the risk factors discussion contained in Item 1A of our 2018 Form 10-K and the risk factor discussion contained in Part II, Item 1A of this document.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Our market risks consist of interest rate risk, foreign currency exchange rate risk, fuel price risk and investment risk. For a discussion on our exposure to market risk, see Part II, Item 7A, “Quantitative and Qualitative Disclosures about Market Risks” in our 2018 Form 10-K. There have been no significant changes to our market risks since June 30, 2018, except as noted below.

Interest Rate Risk

At December 29, 2018, there was $109.9 million in aggregate commercial paper issuances outstanding. Total debt as of December 29, 2018 was $8.8 billion, of which approximately 67% was at fixed rates of interest, including the impact of our interest rate swap agreements.

Fuel Price Risk

Due to the nature of our distribution business, we are exposed to potential volatility in fuel prices. The price and availability of diesel fuel fluctuates due to changes in production, seasonality and other market factors generally outside of our control. Increased fuel costs may have a negative impact on our results of operations in three areas. First, the high cost of fuel can negatively impact consumer confidence and discretionary spending and thus reduce the frequency and amount spent by consumers for food-away-from-home purchases. Second, the high cost of fuel can increase the price we pay for product purchases and we may not be able to pass these costs fully to our customers. Third, increased fuel costs impact the costs we incur to deliver product to our customers. Fuel costs related to outbound deliveries represented approximately 0.5% of sales during the first 26 weeks of fiscal 2019 and fiscal 2018.

Our activities to mitigate fuel costs include routing optimization with the goal of reducing miles driven, improving fleet utilization by adjusting idling time and maximum speeds and using fuel surcharges that primarily track with the change in market prices of fuel. We use diesel fuel swap contracts to fix the price of a portion of our projected monthly diesel fuel requirements. As of December 29, 2018, we had diesel fuel swaps with a total notional amount of approximately 52 million gallons through December 2019. These swaps will lock in the price of approximately 60% of our projected fuel purchase needs for fiscal 2019. Additional swaps have been entered into for hedging activity in fiscal 2020. As of December 29, 2018, we had diesel fuel swaps with a total notional amount of approximately 28 million gallons specific to fiscal 2020. Our remaining fuel purchase needs will occur at market rates unless contracted for a fixed price or hedged at a later date.

Item 4.  Controls and Procedures

Sysco’s management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of December 29, 2018. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding the required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Sysco’s disclosure controls and procedures have been designed to provide reasonable assurance of achieving their objectives. Based on the evaluation of our disclosure controls and procedures as of December 29, 2018, our chief executive officer and chief financial officer concluded that, as of such date, Sysco’s disclosure controls and procedures were effective at the reasonable assurance level.

Sysco is currently deploying a financial system to support its business processes across the organization. Through the second quarter of fiscal 2019, this system has been implemented at our corporate office and within our shared business services center. The activities at these locations are significant enough to Sysco’s total financial results that the implementation of the new system required us to materially modify our internal controls over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). There were no other changes in our internal control over financial reporting that occurred during the fiscal quarter ended December 29, 2018, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1.  Legal Proceedings

None

Item 1A.  Risk Factors

The information set forth in this report should be read in conjunction with the risk factors discussed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 and as set forth below.

Economic and political instability and potential unfavorable changes in laws and regulations in international markets could adversely affect our results of operations and financial condition.

Our international operations subject us to certain risks, including economic and political instability and potential unfavorable changes in laws and regulations in international markets in which we operate. For example, the U.K.’s anticipated exit from the EU (commonly referred to as “Brexit”) and the resulting significant change to the U.K.’s relationship with the EU and with countries outside the EU (and the laws, regulations and trade deals impacting business conducted between them) could disrupt the overall economic growth or stability of the U.K. and the EU and otherwise negatively impact our European operations. The U.K. is currently negotiating the terms of Brexit, with the U.K. due to exit the EU on March 29, 2019. In November 2018, the U.K. and the EU agreed upon a draft Withdrawal Agreement that set out the terms governing the U.K.’s departure, including, among other things, a transition period to allow for a future trade deal to be agreed upon. As the draft Withdrawal Agreement was rejected by the U.K. Parliament on January 15, 2019, there is significant uncertainty about the terms and timing under which the U.K. will leave the EU. It is possible that Brexit will result in our U.K. and EU operations becoming subject to materially different, and potentially conflicting, laws, regulations or tariffs which could require costly new compliance initiatives or changes to legal entity structures or operating practices. Furthermore, in the event the U.K. leaves the EU with no agreement (a “hard Brexit”), there may be additional adverse impacts on immigration and trade between the U.K. and the EU or countries outside the EU. Such impacts may directly increase our costs or could decrease demand for our goods and services by adversely impacting the business of restaurants or other customers in the foodservice distribution industry.

The completion of Brexit could also adversely affect the value of our euro- and pound-denominated assets and obligations. Exchange rates related to the British pound sterling have been more volatile since the U.K. announced it would exit the EU and such volatility may continue in the future. Future fluctuations in the exchange rate between the British pound sterling and the local currencies of our suppliers may have the effect of increasing our cost of goods sold in the U.K., which increases we may not be able to pass on to our customers. In addition, Brexit could cause financial and capital markets within and outside the U.K. or the EU to constrict, thereby negatively impacting our ability to finance our business, and could cause a substantial dip in consumer confidence and spending that could negatively impact the foodservice distribution industry. Any one of these impacts could have an adverse effect on our results of operations and financial condition.

Additionally, the “yellow vest” protests in France against a fuel tax increase and the French government negatively impacted our sales in France over the 2018 year-end holiday period. Similarly, future labor disruptions or disputes could disrupt the integration of Brake France and Davigel into Sysco France and our operations in France and the EU generally. In addition, if changes occur in laws and regulations impacting the flow of goods, services and workers in either the U.K or France or in other parts of the EU, with respect to Brexit or otherwise, our European operations could also be negatively impacted.

Item 2.  Unregistered Sales of Equity Securities and Use ofProceeds

Recent Sales of Unregistered Securities

None

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Issuer Purchases of Equity Securities

We made the following share repurchases during the second quarter of fiscal 2019:

ISSUER PURCHASES OF EQUITY SECURITIES
Period	(a) Total Number of Shares Purchased(1)	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
Month #1
September 30 – October 27	1,569,826	$	71.35	1,568,432	—
Month #2
October 28 – November 24	2,359,138	67.48		2,357,634	—
Month #3
November 25 – December 29	4,074,114	64.84		4,064,574	—
Totals	8,003,078	$	66.90	7,990,640	—

⁽¹⁾  The total number of shares purchased includes 1,394, 1,504 and 9,540 shares tendered by individuals in connection with stock option exercises in Month #1, Month #2 and Month #3, respectively.

We routinely engage in share repurchase programs. In February 2017, our Board of Directors approved a repurchase program authorizing the repurchase of shares of the company’s common stock not to exceed $1.0 billion through the end of fiscal 2019. We executed all $1.0 billion under this authorization through August 2018. In November 2017, our Board of Directors approved a repurchase program to authorize the repurchase of the company’s common stock not to exceed $1.5 billion through the end of fiscal 2020. This repurchase program is intended to allow Sysco to continue offsetting dilution resulting from shares issued under the company’s benefit plans and to make opportunistic repurchases. The share repurchase program was approved using a dollar value limit and, therefore, is not included in the table above for “Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs.”

We repurchased 10.8 million shares during the first 26 weeks of fiscal 2019, resulting in a remaining authorization under our program of approximately $770.3 million. We purchased 14.2 million shares in the first 26 weeks of fiscal 2018. We purchased approximately 646,000 additional shares under our authorization through January 18, 2019. The number of shares we repurchase during the remainder of fiscal 2019 will be dependent on many factors, including the level of future stock option exercises, as well as competing uses for available cash.

Item 3.  Defaults Upon Senior Securities

None

Item 4.  Mine Safety Disclosures

Not applicable

Item 5.  Other Information

None

Item 6.  Exhibits

The exhibits listed on the Exhibit Index immediately preceding such exhibits, which is incorporated herein by reference, are filed as a part of this Quarterly Report on Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Sysco Corporation
		(Registrant)
Date: February 4, 2019	By:	/s/ THOMAS L. BENÉ
		Thomas L. Bené
		Chairman of the Board, President and Chief Executive Officer
Date: February 4, 2019	By:	/s/ JOEL T. GRADE
		Joel T. Grade
		Executive Vice President and
		Chief Financial Officer
Date: February 4, 2019	By:	/s/ ANITA A. ZIELINSKI
		Anita A. Zielinski
		Senior Vice President and
		Chief Accounting Officer

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EXHIBIT INDEX

3.1	—	Restated Certificate of Incorporation, incorporated by reference to Exhibit 3(a) to Form 10-K for the year ended June 28, 1997 (File No. 1-6544).
3.2	—	Certificate of Amendment to Restated Certificate of Incorporation increasing authorized shares, incorporated by reference to Exhibit 3(e) to Form 10-Q for the quarter ended December 27, 2003 (File No. 1-6544).
3.3	—	Form of Amended Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock, incorporated by reference to Exhibit 3(c) to Form 10-K for the year ended June 29, 1996 (File No. 1-6544).
3.4	—	Amended and Restated Bylaws of Sysco Corporation dated August 26, 2016, incorporated by reference to Exhibit 3.2 to Form 8-K filed on August 31, 2016 (File No. 1-6544).
10.1†	—	Sysco Corporation 2018 Omnibus Incentive Plan, incorporated by reference to Appendix II to the Sysco Corporation Proxy Statement filed October 5, 2018 (File No. 1-6544).
10.2#†	—	Form of Restricted Stock Award Agreement for Directors pursuant to the Sysco Corporation 2018 Omnibus Incentive Plan.
10.3#†	—	Form of Restricted Stock Award Agreement for Directors pursuant to the Sysco Corporation 2018 Omnibus Incentive Plan (for directors who elect to defer receipt of shares under the 2009 Board of Directors Stock Deferral Plan).
31.1#	—	CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2#	—	CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1#	—	CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2#	—	CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.1#	—	The following financial information from Sysco Corporation’s Quarterly Report on Form 10-Q for the quarter ended December 29, 2018 filed with the SEC on February 4, 2019, formatted in XBRL includes: (i) Consolidated Balance Sheets as of December 29, 2018, June 30, 2018 and December 30, 2017, (ii) Consolidated Results of Operations for the thirteen and twenty six week periods ended December 29, 2018 and December 30, 2017, (iii) Consolidated Statements of Comprehensive Income for the thirteen and twenty six week periods ended December 29, 2018 and December 30, 2017, (iv) Consolidated Cash Flows for the twenty six week periods ended December 29, 2018 and December 30, 2017, and (v) the Notes to Consolidated Financial Statements.

___________

† Executive Compensation Arrangement pursuant to Item 601(b)(10)(iii)(A) of Regulation S-K

# Filed herewith

59

EX-10.2

EXHIBIT 10.2

SYSCO CORPORATION

2018 OMNIBUS INCENTIVE PLAN

2018 RESTRICTED STOCK AWARD AGREEMENT

This Restricted Stock Award Agreement (“Agreement”) was made and entered into as of November 16, 2018 (“Date of Grant”), by and between Sysco Corporation, a Delaware corporation (hereinafter “Sysco”), and ____________, a director of Sysco (hereinafter “Director”).

W I T N E S S E T H:

WHEREAS, the Board of Directors of Sysco has adopted, and Sysco’s stockholders have approved, the Sysco Corporation 2018 Omnibus Incentive Plan (the “Plan”), the purpose of which is to promote the interests of Sysco and its stockholders by enhancing Sysco’s ability to attract and retain the services of experienced and knowledgeable directors and by encouraging such directors to acquire an increased proprietary interest in Sysco through the ownership of common stock, $1.00 par value, of Sysco (“Common Stock”); and

WHEREAS, the Plan provides that non-employee directors may receive awards of restricted shares of Sysco Common Stock; and

WHEREAS, Director desires to continue to serve on the Board of Directors of Sysco and to accept an award of restricted stock in accordance with the terms and provisions of the Plan and this Agreement;

NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows:

1. GRANT OF RESTRICTED SHARES; VESTING

(a)    Grant of Restricted Shares. Sysco, as authorized by the Board of Directors, hereby grants to Director __________[full amount of grant] shares of restricted Common Stock pursuant to the provisions of the Plan.

(b)    Vesting. The Restricted Stock Award shall be subject to vesting as set forth in the Plan and summarized below:

(i) One-hundred percent (100%) of the Restricted Stock Award shall vest on the first anniversary of the Date of Grant.

(ii) Any unvested portion of a Restricted Stock Award shall vest upon the occurrence of a Change in Control. For purposes of this Agreement, “Change in Control” means that a person or persons who are acting together for the purpose of acquiring an equity interest in Sysco acquire beneficial ownership (as defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 20% or more of the outstanding Common Stock.

2. RESTRICTION ON TRANSFER.

The restricted Common Stock granted as a Restricted Stock Award under this Agreement shall not be sold, pledged, assigned, transferred, or encumbered prior to the time the Restricted Stock Award vests as described herein.

3. FORM; REMOVAL OF RESTRICTIONS.

Each share of restricted Common Stock granted as a Restricted Stock Award hereunder shall be issued in uncertificated form and credited to a restricted account at a brokerage firm selected by the Company, registered in the

name of the Director. The transfer restrictions applicable to the account shall be removed upon vesting of the Restricted Stock Award.

4. CERTAIN RIGHTS OF DIRECTOR.

Except as otherwise set forth herein, Director, as owner of shares of restricted Common Stock granted as a Restricted Stock Award hereunder shall have all the rights of a stockholder with respect to such shares of restricted Common Stock, including, but not limited to, the right to vote such shares and the right to receive all dividends paid with respect to such shares; provided, that all such rights shall be forfeited in respect to any portion of the Restricted Stock Award as of the date all or any portion of such award is forfeited.

5. CESSATION OF SERVICE.

Except as set forth below and unless otherwise determined by the Board, if Director ceases to be a Non-Employee Director (as defined in the Plan) prior to the vesting of any portion of the Restricted Stock Award then Director shall forfeit the portion of the Restricted Stock Award which is not vested on the date he ceases to be a Non-Employee Director; provided, however, that unless otherwise determined by the Board, if (a) Director serves out his or her term but does not stand for re-election at the end thereof, or (b) Director shall retire from service on the Board (for reasons other than death) prior to the expiration of his or her term and on or after the date he or she attains age 71, Director’s Restricted Stock Award shall remain in effect and vest, as if Director had remained a Non-Employee Director of Sysco. Upon the death of Director, any unvested portion of the Restricted Stock Award shall vest.

6. ADJUSTMENT TO AWARD IN CERTAIN EVENTS.

In the event of a change in the capitalization of Sysco due to a stock split, stock dividend, recapitalization, merger, consolidation, combination, or similar event, the aggregate shares of restricted Common Stock subject to this Agreement shall be adjusted to reflect such change.

7. WITHHOLDING.

All distributions under the Plan are subject to withholding of all applicable taxes, and Sysco may condition the delivery of any shares or other Plan benefits on satisfaction of the applicable withholding obligations. Sysco, in its discretion, may either: (a) require you to pay to Sysco an amount sufficient to satisfy any local, state, Federal and foreign income tax, employment tax and insurance withholding requirements prior to the delivery of any payment or stock owing to you pursuant to the Restricted Stock Award; or, in its discretion, (b) permit you to surrender shares of Common Stock which you already own, or reduce the number of shares to be delivered to you by that number of shares of the Restricted Stock Award, in each case in an amount sufficient to satisfy all or a portion of such tax or other withholding requirements, but only to the extent of the minimum amount required to be withheld under applicable law. Any such shares of Common Stock surrendered or otherwise tendered shall be valued at the Fair Market Value thereof, as defined in the Plan.

8. NO COMPROMISE WITH REGULATORY AUTHORITY.

Notwithstanding any other provision of this Agreement to the contrary, Director agrees that Sysco shall not be obligated to deliver any shares of Common Stock, if counsel to Sysco determines such delivery would violate any law or regulation of any governmental authority or agreement between Sysco and any national securities exchange upon which the Common Stock is listed.

9. PLAN CONTROLS.

In the event of a conflict between the terms of this Agreement and the Plan, the Plan shall be the controlling document.

10. END OF RESTRICTIONS.

If all terms and conditions of this Agreement are complied with in full, all restrictions on the restricted Common Stock referred to herein shall lapse and such restrictions shall be removed from the Director’s restricted brokerage account.

11. DATA PRIVACY.

To the extent that consent is required, Director hereby consents to the collection, use and transfer, in electronic or other form, of Director’s personal data as described in this Agreement and any other materials by and among the Company and for the purpose of implementing, administering and managing the Director’s participation in the Plan.

The Director understands that the Company and any Affiliated Companies may hold certain personal information about the Director, including but not limited to his or her name, home address, email address, telephone number, date of birth, social security number, passport number or other identification number, salary, nationality, any shares of Stock or directorships held in the Company and details of all Awards or any other entitlements to shares of Stock awarded, cancelled, vested, unvested, or outstanding in the Director’s favor (“Data”), for the purpose of implementing, administering or managing the Plan. Certain Data may also constitute “sensitive personal data” within the meaning of applicable local law. Such Data includes, but is not limited to, the information provided above and any changes thereto and other appropriate personal and financial data about the Director. The Director hereby provides explicit consent to the Company, the Employer and any Affiliated Companies to process any such Data to the extent it is necessary for the purposes of implementing, administering and managing the Director’s participation in the Plan.

The Director understands that Data will be transferred, for the purposes of implementing, administering and managing the Director’s participation in the Plan, to such equity plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. The Director understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have data privacy laws and protections which provide standards of protection that are different to, or lower than, the standards provided by the data privacy laws in the Director’s country. The Director understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting the stock plan administrator of the Company. The Director authorizes the Company, the Company’s equity service plan provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. The Director understands that Data will be held only as long as is necessary to implement, administer and manage the Director’s participation in the Plan. Further, the Director understands that he or she is providing the consents herein on a purely voluntary basis. If the Director does not consent, or if the Director later seeks to revoke his or her consent, his or her status with the Company will not be affected; the only consequence of refusing or withdrawing the Director’s consent is that the Company would not be able to grant the Director Awards or other equity awards or administer or maintain such awards. Therefore, the Director understands that refusing or withdrawing his or her consent may affect the Director’s ability to participate in the Plan.

Finally, the Director understands that the Company may rely on a different legal basis for the processing and/or transfer of Data in the future and/or request the Director to provide an executed acknowledgment or data privacy consent form (or any other acknowledgments, agreements or consents) to the Company that the Company may deem necessary to obtain under the data privacy laws in the Director’s country, either now or in the future. The Director understands that he or she will not be able to participate in the Plan if he or she fails to execute any such acknowledgment, agreement or consent requested by the Company.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

Sysco Corporation

________________________________________________

By:     Thomas L. Bené

Chairman, President and Chief Executive Officer

DIRECTOR:

_____________________________________________

Name:

EX-10.3

EXHIBIT 10.3

SYSCO CORPORATION

2018 OMNIBUS INCENTIVE PLAN

2018 RESTRICTED STOCK AWARD AGREEMENT

This Restricted Stock Award Agreement (“Agreement”) was made and entered into as of November 16, 2018 (“Date of Grant”), by and between Sysco Corporation, a Delaware corporation (hereinafter “Sysco”), and ____________, a director of Sysco (hereinafter “Director”).

W I T N E S S E T H:

WHEREAS, the Board of Directors of Sysco has adopted, and Sysco’s stockholders have approved, the Sysco Corporation 2018 Omnibus Incentive Plan (the “Plan”), the purpose of which, among other things, is to promote the interests of Sysco and its stockholders by enhancing Sysco’s ability to attract and retain the services of experienced and knowledgeable directors and by encouraging such directors to acquire an increased proprietary interest in Sysco through the ownership of common stock, $1.00 par value, of Sysco (“Common Stock”); and

WHEREAS, the Board of Directors of Sysco has adopted the Sysco Corporation 2009 Board of Directors Stock Deferral Plan (the “Stock Deferral Plan”), the purpose of which is to provide its non-employee directors the opportunity to defer receipt of stock that would otherwise be transferred to them during their service on the Board of Directors of Sysco Corporation under the Plan in order to allow them to participate in the long-term success of Sysco and to promote a greater alignment of interests between the non-employee directors and the shareholders;

WHEREAS, the Plan provides that non-employee directors may receive awards of restricted shares of Sysco Common Stock and may defer the receipt of such shares under the Stock Deferral Plan; and

WHEREAS, Director desires to continue to serve on the Board of Directors of Sysco and to accept an award of restricted stock in accordance with the terms and provisions of the Plan and this Agreement;

NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows:

1. GRANT OF RESTRICTED SHARES; CONVERSION TO SHARE UNITS; VESTING

(a)    Grant of Restricted Shares. Sysco, as authorized by the Board of Directors, hereby grants to Director __________[full amount of grant] shares of restricted Common Stock pursuant to the provisions of the Plan.

(b)    Exchange for Share Units. Pursuant to Director’s Restricted Share Deferral Election (as defined in the Stock Deferral Plan), Director elected to defer receipt of 100% of the shares of restricted Common Stock granted during calendar year 2018. As a result, ______ shares of restricted Common Stock (the “Exchanged Shares”) granted to Director pursuant to paragraph 1(a) of this Agreement are hereby exchanged for Share Units (as defined in the Stock Deferral Plan) under the Stock Deferral Plan and the Director shall have no rights to receive the Exchanged Shares. The Director’s rights with respect to the Share Units received in exchange for the Exchanged Shares, as well as the terms and conditions of the Share Units, are those as described in the Stock Deferral Plan; provided, however, vesting of the Share Units and the rights to the Share Units upon Director’s Cessation of Service on the Board shall be determined under Section 1(c) and Section 2 of this Agreement, as applicable.

(c)    Vesting. The Share Units received in exchange for the Exchanged Shares shall be subject to vesting as follows:

(i) One-hundred percent (100%) of the Share Units received in exchange for the Exchanged Shares shall vest on the first anniversary of the Date of Grant.

(ii) Any unvested portion of the Share Units received in exchange for the Exchanged Shares shall vest upon the occurrence of a Change in Control. For purposes of this Agreement, “Change in Control” means that a person or persons who are acting together for the purpose of acquiring an equity interest in Sysco acquire beneficial ownership (as defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 20% or more of the outstanding Common Stock.

2. CESSATION OF SERVICE.

Except as set forth below and unless otherwise determined by the Board, if Director ceases to be a Non-Employee Director (as defined in the Plan) prior to the vesting of any portion of the Share Units received in exchange for the Exchanged Shares then Director shall forfeit the portion of the Share Units received in exchange for the Exchanged Shares which is not vested on the date he ceases to be a Non-Employee Director; provided, however, that unless otherwise determined by the Board, if (a) Director serves out his or her term but does not stand for re-election at the end thereof, or (b) Director shall retire from service on the Board (for reasons other than death) prior to the expiration of his or her term and on or after the date he or she attains age 71, Director’s Share Units received in exchange for the Exchanged Shares shall remain in effect and vest, as if Director had remained a Non-Employee Director of Sysco. Upon the death of Director, any unvested portion of the Share Units received in exchange for the Exchanged Shares shall vest.

3. DATA PRIVACY.

To the extent that consent is required, Director hereby consents to the collection, use and transfer, in electronic or other form, of Director’s personal data as described in this Agreement and any other materials by and among the Company and for the purpose of implementing, administering and managing the Director’s participation in the Plan.

The Director understands that the Company and any Affiliated Companies may hold certain personal information about the Director, including but not limited to his or her name, home address, email address, telephone number, date of birth, social security number, passport number or other identification number, salary, nationality, any shares of Stock or directorships held in the Company and details of all Awards or any other entitlements to shares of Stock awarded, cancelled, vested, unvested, or outstanding in the Director’s favor (“Data”), for the purpose of implementing, administering or managing the Plan. Certain Data may also constitute “sensitive personal data” within

the meaning of applicable local law. Such Data includes, but is not limited to, the information provided above and any changes thereto and other appropriate personal and financial data about the Director. The Director hereby provides explicit consent to the Company, the Employer and any Affiliated Companies to process any such Data to the extent it is necessary for the purposes of implementing, administering and managing the Director’s participation in the Plan.

The Director understands that Data will be transferred, for the purposes of implementing, administering and managing the Director’s participation in the Plan, to such equity plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. The Director understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have data privacy laws and protections which provide standards of protection that are different to, or lower than, the standards provided by the data privacy laws in the Director’s country. The Director understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting the stock plan administrator of the Company. The Director authorizes the Company, the Company’s equity service plan provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan. The Director understands that Data will be held only as long as is necessary to implement, administer and manage the Director’s participation in the Plan. Further, the Director understands that he or she is providing the consents herein on a purely voluntary basis. If the Director does not consent, or if the Director later seeks to revoke his or her consent, his or her status with the Company will not be affected; the only consequence of refusing or withdrawing the Director’s consent is that the Company would not be able to grant the Director Awards or other equity awards or administer or maintain such awards. Therefore, the Director understands that refusing or withdrawing his or her consent may affect the Director’s ability to participate in the Plan.

Finally, the Director understands that the Company may rely on a different legal basis for the processing and/or transfer of Data in the future and/or request the Director to provide an executed acknowledgment or data privacy consent form (or any other acknowledgments, agreements or consents) to the Company that the Company may deem necessary to obtain under the data privacy laws in the Director’s country, either now or in the future. The Director understands that he or she will not be able to participate in the Plan if he or she fails to execute any such acknowledgment, agreement or consent requested by the Company.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

Sysco Corporation

________________________________________________

By:     Thomas L. Bené

Chairman, President and Chief Executive Officer

DIRECTOR:

_____________________________________________

Name:

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Thomas L. Bené, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sysco Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 4, 2019

/s/ THOMAS L. BENÉ

Thomas L. Bené

Chairman of the Board, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Joel T. Grade, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sysco Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 4, 2019

/s/ JOEL T. GRADE

Joel T. Grade

Executive Vice President andChief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

I, Thomas L. Bené, Chairman of the Board, President and Chief Executive Officer, of Sysco Corporation (the “company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. The company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 29, 2018 (“Quarterly Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. All of the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the company.

Date: February 4, 2019

/s/ THOMAS L. BENÉ

Thomas L. Bené

Chairman of the Board, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

I, Joel T. Grade, Executive Vice President andChief Financial Officer, of Sysco Corporation (the “company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. The company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 29, 2018 (“Quarterly Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

2. All of the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the company.

Date: February 4, 2019

/s/ JOEL T. GRADE

Joel T. Grade

Executive Vice President andChief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 29, 2018	Jan. 18, 2019
Document Entity Information [Abstract]
Entity Registrant Name	SYSCO CORP
Entity Central Index Key	0000096021
Current Fiscal Year End Date	--06-29
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 29, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		513,462,661
Entity Emerging Growth Company	false
Entity Small Business	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017
Current assets
Cash and cash equivalents	$ 744,808	$ 552,325	$ 961,067
Accounts and notes receivable, less allowances of $44,418, $25,768 and $52,588	4,147,367	4,073,723	3,953,643
Inventories, net	3,310,312	3,125,413	3,174,012
Prepaid expenses and other current assets	212,289	187,880	183,446
Income tax receivable	23,007	64,112	0
Total current assets	8,437,783	8,003,453	8,272,168
Plant and equipment at cost, less depreciation	4,375,550	4,521,660	4,366,292
Other long-term assets
Goodwill	3,875,973	3,955,485	4,001,020
Intangibles, less amortization	899,939	979,812	1,056,335
Deferred income taxes	77,191	83,666	92,950
Other assets	527,740	526,328	430,605
Total other long-term assets	5,380,843	5,545,291	5,580,910
Total assets	18,194,176	18,070,404	18,219,370
Current liabilities
Notes payable	6,101	4,176	6,629
Accounts payable	4,230,215	4,136,482	3,745,817
Accrued expenses	1,723,246	1,608,966	1,567,362
Accrued income taxes	4,571	56,793	128,446
Current maturities of long-term debt	786,037	782,329	534,716
Total current liabilities	6,750,170	6,588,746	5,982,970
Long-term liabilities
Long-term debt	8,019,846	7,540,765	8,312,489
Deferred income taxes	233,601	319,124	143,794
Other long-term liabilities	987,566	1,077,163	1,477,991
Total long-term liabilities	9,241,013	8,937,052	9,934,274
Commitments and contingencies
Noncontrolling interest	35,357	37,649	33,524
Shareholders’ equity
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none	0	0	0
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares	765,175	765,175	765,175
Paid-in capital	1,465,461	1,383,619	1,361,471
Retained earnings	10,654,711	10,348,628	9,708,261
Accumulated other comprehensive loss	(1,524,407)	(1,409,269)	(1,116,028)
Treasury stock at cost, 251,658,719, 244,533,248 and 243,764,879 shares	(9,193,304)	(8,581,196)	(8,450,277)
Total shareholders’ equity	2,167,636	2,506,957	2,268,602
Total liabilities and shareholders' equity	$ 18,194,176	$ 18,070,404	$ 18,219,370

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 44,418	$ 25,768	$ 52,588
Preferred stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Preferred stock, authorized (in shares)	1,500,000	1,500,000	1,500,000
Preferred stock, issued (in shares)	0	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1	$ 1
Common stock, authorized (in shares)	2,000,000,000	2,000,000,000	2,000,000,000
Common stock, issued (in shares)	765,174,900	765,174,900	765,174,900
Treasury stock (in shares)	251,658,719	244,533,248	243,764,879

XML

Consolidated Results of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Income Statement [Abstract]
Sales	$ 14,765,707	$ 14,411,490	$ 29,980,986	$ 29,061,914
Cost of sales	11,993,995	11,712,104	24,305,489	23,568,860
Gross profit	2,771,712	2,699,386	5,675,497	5,493,054
Operating expenses	2,319,817	2,170,834	4,595,462	4,345,137
Operating income	451,895	528,552	1,080,035	1,147,917
Interest expense	87,113	85,986	176,129	166,870
Other expense (income), net	10,197	(9,162)	11,329	(17,137)
Earnings before income taxes	354,585	451,728	892,577	998,184
Income taxes	87,205	167,615	194,155	346,431
Net earnings	$ 267,380	$ 284,113	$ 698,422	$ 651,753
Net earnings:
Basic earnings per share (in dollars per share)	$ 0.52	$ 0.55	$ 1.34	$ 1.24
Diluted earnings per share (in dollars per share)	$ 0.51	$ 0.54	$ 1.33	$ 1.23
Average shares outstanding (in shares)	517,871,328	521,284,182	519,363,973	524,286,931
Diluted shares outstanding (in shares)	524,600,510	527,249,587	526,817,501	530,156,510

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Net earnings	$ 267,380	$ 284,113	$ 698,422	$ 651,753
Other comprehensive income (loss):
Foreign currency translation adjustment	(101,533)	19,254	(126,460)	140,584
Items presented net of tax:
Amortization of cash flow hedges	(2,155)		(4,310)
Change in net investment hedges	26,469		35,057
Change in cash flow hedges	(8,784)		(11,792)
Amortization of prior service cost	1,600	1,807	3,200	3,291
Amortization of actuarial loss, net	6,529	6,571	13,058	11,968
Actuarial loss, net	0	0	(32,511)	0
Total other comprehensive (loss) income	(73,564)	26,551	(115,138)	146,709
Comprehensive income	$ 193,816	310,664	$ 583,284	798,462
Cash Flow Hedging
Items presented net of tax:
Amortization of cash flow hedges		2,155		3,925
Changes in derivatives		917		3,118
Net Investment Hedging
Items presented net of tax:
Changes in derivatives		$ (4,153)		$ (16,177)

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Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Cash flows from operating activities:
Net earnings	$ 698,422	$ 651,753
Adjustments to reconcile net earnings to cash provided by operating activities:
Share-based compensation expense	54,199	51,612
Depreciation and amortization	392,413	370,316
Amortization of debt issuance and other debt-related costs	10,814	14,395
Deferred income taxes	(89,098)	37,005
Provision for losses on receivables	27,647	20,151
Other non-cash items	411	12,986
Additional changes in certain assets and liabilities, net of effect of businesses acquired:
(Increase) decrease in receivables	(137,314)	99,713
(Increase) in inventories	(204,437)	(133,374)
(Increase) in prepaid expenses and other current assets	(31,465)	(33,484)
Increase (decrease) in accounts payable	131,715	(286,899)
Increase (decrease) in accrued expenses	92,100	(21,802)
(Decrease) increase in accrued income taxes	(11,117)	120,397
(Increase) in other assets	(21,138)	(29,508)
Increase in other long-term liabilities	4,638	59,943
Net cash provided by operating activities	917,790	933,204
Cash flows from investing activities:
Additions to plant and equipment	(223,825)	(258,577)
Proceeds from sales of plant and equipment	6,901	3,878
Acquisition of businesses, net of cash acquired	(88)	(147,644)
Net cash (used for) investing activities	(217,012)	(402,343)
Cash flows from financing activities:
Bank and commercial paper borrowings, net	109,900	630,265
Other debt borrowings	383,163	5,465
Other debt repayments	(16,617)	(10,368)
Proceeds from stock option exercises	137,896	172,298
Treasury stock purchases	(739,205)	(750,532)
Dividends paid	(379,216)	(346,920)
Other financing activities	(6,653)	(10,136)
Net cash (used for) financing activities	(510,732)	(309,928)
Effect of exchange rates on cash, cash equivalents and restricted cash	(8,904)	23,510
Net increase in cash, cash equivalents and restricted cash	181,142	244,443
Cash, cash equivalents and restricted cash at beginning of period	715,844	869,502
Cash, cash equivalents and restricted cash at end of period	896,986	1,113,945
Cash paid during the period for:
Interest	158,574	136,279
Income taxes	$ 328,574	$ 75,841

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Basis of Presentation

6 Months Ended

Dec. 29, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The consolidated financial statements have been prepared by the company, without audit, with the exception of the June 30, 2018 consolidated balance sheet, which was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (our 2018 Form 10-K). The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income and consolidated cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position, results of operations, comprehensive income and cash flows for all periods presented have been made.

These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2018 Form 10-K. Certain footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements.

These financial statements and related notes have been presented in compliance with the Securities and Exchange Commission’s (SEC) Final Rule Release No. 33-10532, Disclosure Update and Simplification, effective for all filings made on or after November 5, 2018. Sysco has complied with all relevant disclosure requirements, with the exception of adding the changes in stockholders’ equity disclosures for interim periods, which for Sysco, is allowed to be first included in its Form 10-Q for the quarter ending March 30, 2019.

Supplemental Cash Flow Information

The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows:

	Dec. 29, 2018		Dec. 30, 2017
	(In thousands)
Cash and cash equivalents	$	744,808	$	961,067
Restricted cash (1)	152,178		152,878
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows	$	896,986	$	1,113,945

⁽¹⁾  Restricted cash as of December 29, 2018 primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in the consolidated balance sheet as of December 29, 2018.

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Changes in Accounting

6 Months Ended

Dec. 29, 2018

Accounting Changes and Error Corrections [Abstract]

Changes in Accounting

CHANGES IN ACCOUNTING

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the period ended December 29, 2018.

Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Businesses Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for the period ended December 29, 2018.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $8.9 million in the second quarter of fiscal 2019 and net cost of $17.8 million for the first 26 weeks of fiscal 2019 being reported in other expense (income), net that would have previously been included in operating expense. The ASU was applied retrospectively, resulting in net benefit of $3.7 million in the second quarter of fiscal 2019 and net benefit of $7.5 million for the first 26 weeks of fiscal 2018 being reported in other expense (income), net.

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New Accounting Standards

6 Months Ended

Dec. 29, 2018

Accounting Policies [Abstract]

New Accounting Standards

NEW ACCOUNTING STANDARDS

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco, with early adoption permitted.

To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company is in the process of gathering lease data, reviewing its lease portfolio, and completing an impact assessment with respect to the adoption of the provisions of the new standard. To facilitate this ongoing process, the company is currently implementing a third-party lease accounting software. The company will finalize its assessment in fiscal 2019 and adopt this standard on June 30, 2019, the first day of fiscal 2020.

Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard.

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Revenue

6 Months Ended

Dec. 29, 2018

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Adoption of ASC Topic 606, “Revenues from Contracts with Customers”

On July 1, 2018, Sysco adopted ASC Topic 606 with no significant impact to its financial position or results of operations, using the modified retrospective method. There were no contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under Topic 606, while prior period amounts have not been restated and continue to be reported in accordance with our historic accounting under Topic 605. Sysco had no adjustment to opening retained earnings as of July 1, 2018 as a result of adopting ASC Topic 606. There was no material impact on revenues for the quarter and 26 weeks ended December 29, 2018 as a result of applying ASC Topic 606.

Revenue Recognition

The company recognizes revenues when the performance obligation is satisfied, which is the point at which control of the promised goods or services are transferred to its customers, in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods or services. For the majority of Sysco’s customer arrangements, control transfers to customers at a point-in-time when goods have been delivered, as that is generally when legal title, physical possession and risks and rewards of goods/services transfers to the customer. The timing of satisfaction of the performance obligation is not subject to significant judgment. While certain additional services may be identified within a contract, we have concluded that those services are individually immaterial in the context of the contract with the customer, and therefore, not assessed as performance obligations.

Sales tax collected from customers is not included in revenue, but rather recorded as a liability due to the respective taxing authorities. Shipping and handling costs include costs associated with the selection of products and delivery to customers and are included within operating expenses.

Product Sales Revenues

Sysco generates revenue primarily from the distribution and sale of food and related products to its customers. Substantially all revenue is recognized at the point in time in which the product is delivered to the customer. The company grants certain customers sales incentives, such as rebates or discounts, which are accounted for as variable consideration. The variable consideration is based on amounts known at the time the performance obligation is satisfied and, therefore, requires minimal judgment.

Contract Balances

After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $3.9 billion and $3.8 billion as of December 29, 2018 and June 30, 2018, respectively.

Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other Assets and amortized over the life of the contract or the expected life of the relationship with the customer on a straight-line basis. As of December 29, 2018, Sysco’s contract assets were immaterial. Sysco has no material commissions paid that are directly attributable to obtaining a particular contract.

Disaggregation of Sales

The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented:

	13-Week Period Ended Dec. 29, 2018
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	2,084,648	$	409,086	$	374,069	$	—	$	2,867,803
Canned and dry products	1,799,535		611,609		66,719		—		2,477,863
Frozen fruits, vegetables, bakery and other	1,417,063		354,178		315,129		—		2,086,370
Dairy products	1,041,436		306,364		148,103		—		1,495,903
Poultry	1,001,579		209,542		208,674		—		1,419,795
Fresh produce	927,997		322,020		57,048		—		1,307,065
Paper and disposables	681,890		87,376		181,896		14,175		965,337
Seafood	581,655		196,413		23,451		—		801,519
Beverage products	271,182		161,317		136,244		20,422		589,165
Other (1)	280,120		232,693		25,274		216,800		754,887
Total Sales	$	10,087,105	$	2,890,598	$	1,536,607	$	251,397	$	14,765,707

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	13-Week Period Ended Dec. 30, 2017
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	1,975,717	$	411,726	$	375,602	$	—	$	2,763,045
Canned and dry products	1,742,913		579,881		89,274		—		2,412,068
Frozen fruits, vegetables, bakery and other	1,316,229		645,354		289,133		—		2,250,716
Dairy products	1,019,134		308,362		162,372		—		1,489,868
Poultry	997,225		212,552		277,820		—		1,487,597
Fresh produce	902,943		256,746		63,947		—		1,223,636
Paper and disposables	637,520		98,258		183,205		13,445		932,428
Seafood	555,996		182,393		21,109		—		759,498
Beverage products	266,102		48,819		140,190		19,441		474,552
Other (1)	267,446		124,952		30,493		195,191		618,082
Total Sales	$	9,681,225	$	2,869,043	$	1,633,145	$	228,077	$	14,411,490

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	26-Week Period Ended Dec. 29, 2018
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	4,206,167	$	829,542	$	746,401	$	—	$	5,782,110
Canned and dry products	3,651,702		1,223,079		144,341		—		5,019,122
Frozen fruits, vegetables, bakery and other	2,840,449		982,735		606,995		—		4,430,179
Dairy products	2,127,840		624,711		302,909		—		3,055,460
Poultry	2,028,515		425,124		480,735		—		2,934,374
Fresh produce	1,865,577		579,564		121,897		—		2,567,038
Paper and disposables	1,392,649		191,915		370,512		30,584		1,985,660
Seafood	1,243,342		384,850		48,835		—		1,677,027
Beverage products	561,752		213,388		283,538		43,601		1,102,279
Other (1)	568,523		356,640		51,901		450,673		1,427,737
Total Sales	$	20,486,516	$	5,811,548	$	3,158,064	$	524,858	$	29,980,986

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	26-Week Period Ended Dec. 30, 2017
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	4,006,857	$	846,365	$	761,851	$	—	$	5,615,073
Canned and dry products	3,481,591		1,173,234		166,759		—		4,821,584
Frozen fruits, vegetables, bakery and other	2,582,958		1,271,422		561,725		—		4,416,105
Poultry	2,043,911		420,017		574,719		—		3,038,647
Dairy products	2,036,796		624,016		329,059		—		2,989,871
Fresh produce	1,826,735		522,329		129,493		—		2,478,557
Paper and disposables	1,293,829		202,368		365,034		28,835		1,890,066
Seafood	1,176,317		365,664		44,884		—		1,586,865
Beverage products	541,232		99,878		285,264		42,452		968,826
Other (1)	539,941		247,005		55,028		414,346		1,256,320
Total Sales	$	19,530,167	$	5,772,298	$	3,273,816	$	485,633	$	29,061,914

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

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Acquisitions

6 Months Ended

Dec. 29, 2018

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

There were no new acquisitions in the first 26 weeks of fiscal 2019. Certain acquisitions involve contingent consideration that may include earnout agreements that are typically payable over periods of up to three years in the event that certain operating results are achieved. As of December 29, 2018, aggregate contingent consideration outstanding was $14.1 million, of which $9.4 million was recorded as earnout liabilities. Earnout liabilities are all measured using unobservable inputs that are considered a Level 3 measurement.

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Fair Value Measurements

6 Months Ended

Dec. 29, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:

• Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;

• Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and

• Level 3 – Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk.

Sysco’s policy is to invest in only high-quality investments. Cash equivalents primarily include cash deposits, time deposits, certificates of deposit, commercial paper, high-quality money market funds and all highly liquid instruments with original maturities of three months or less.

The following is a description of the valuation methodologies used for assets and liabilities measured at fair value:

• Cash deposits included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 1 measurement in the tables below.

• Time deposits and commercial paper included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 2 measurement in the tables below.

• Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents as Level 1 measurements in the tables below.

• The interest rate swap agreements are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates.

• The foreign currency swap agreements, including cross-currency swaps, are valued using a swap valuation model that utilizes an income approach applying observable market inputs including interest rates, LIBOR swap rates for U.S. dollars, Canadian dollars, pound sterling and euro currencies, and credit default swap rates.

• Foreign currency forwards are valued based on exchange rates quoted by domestic and foreign banks for similar instruments.

• Fuel swap contracts are valued based on observable market transactions of forward commodity prices.

The fair value of the company’s derivative instruments are all measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair value of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 7, “Derivative Financial Instruments.”

The following tables present the company’s assets measured at fair value on a recurring basis as of December 29, 2018, June 30, 2018 and December 30, 2017:

	Assets and Liabilities Measured at Fair Value as of Dec. 29, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	298,461	$	200	$	—	$	298,661
Other assets (1)	152,178		—		—		152,178
Total assets at fair value	$	450,639	$	200	$	—	$	450,839

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

	Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	169,214	$	30,190	$	—	$	199,404
Other assets (1)	163,519		—		—		163,519
Total assets at fair value	$	332,733	$	30,190	$	—	$	362,923

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

	Assets and Liabilities Measured at Fair Value as of Dec. 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	241,071	$	43,191	$	—	$	284,262
Other assets (1)	145,734		7,143		—		152,877
Total assets at fair value	$	386,805	$	50,334	$	—	$	437,139

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

The carrying values of accounts receivable and accounts payable approximated their respective fair values due to their short-term maturities. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the company for new debt with the same maturities as existing debt, and is considered a Level 2 measurement. The fair value of total debt was approximately$8.8 billion, $8.4 billion and $9.2 billion as of December 29, 2018, June 30, 2018 and December 30, 2017, respectively. The carrying value of total debt was $8.8 billion, $8.3 billion and $8.9 billion as of December 29, 2018, June 30, 2018 and December 30, 2017, respectively.

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Derivative Financial Instruments

6 Months Ended

Dec. 29, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

Sysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, the company does not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk.

Hedging of interest rate risk

Sysco manages its debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In December 2018, the company entered into an interest rate swap agreement that effectively converted €500.0 million of fixed rate debt maturing in 2023 to floating rate debt.

Hedging of foreign currency risk

Sysco enters into cross-currency swap contracts to hedge the foreign currency transaction risk of certain intercompany loans. There are no credit-risk related contingent features associated with these swaps, which have been designated as cash flow hedges. The company also uses cross-currency swap contracts and euro-bond denominated debt to hedge the foreign currency exposure of our net investment in certain foreign operations. Additionally, Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the euro, U.S. dollar, Polish zloty and Danish krone. These inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. The company enters into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases.

Hedging of fuel price risk

Sysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel on anticipated future purchases. These swaps have been designated as cash flow hedges.

None of the Company’s hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of December 29, 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
June 2023	Euro	500
March 2025	U.S. Dollar	500
Hedging of foreign currency risk
Various (January 2019 to April 2019)	Swedish Krona	261
Various (January 2019 to October 2019)	British Pound Sterling	20
Various (January 2019 to December 2019)	U.S. Dollar	1
June 2021	Canadian Dollar	300
July 2021	British Pound Sterling	234
August 2021	British Pound Sterling	466
June 2023	Euro	500
Hedging of fuel risk
Various (December 31, 2018 to December 2019)	Gallons	52

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 29, 2018, June 30, 2018 and December 30, 2017 are as follows:

		Derivative Fair Value
	Balance Sheet location	Dec. 29, 2018		Jun. 30, 2018		Dec. 30, 2017
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	—	$	—	$	118
Interest rate swaps	Other assets	5,207		—		—
Interest rate swaps	Other current liabilities	2,180		6,820		—
Interest rate swaps	Other long-term liabilities	31,488		49,734		33,003
Cash Flow Hedges:
Fuel Swaps	Other current assets	$	—	$	15,316	$	13,678
Foreign currency forwards	Other current assets	246		693		555
Cross currency swaps	Other current assets	—		4,284		—
Cross currency swaps	Other assets	13,773		3,454		—
Fuel Swaps	Other current liabilities	19,548		—		—
Foreign currency forwards	Other current liabilities	226		71		351
Fuel swaps	Other long-term liabilities	742		—		—
Cross currency swaps	Other long-term liabilities	—		14,201		21,310
Net Investment Hedges:
Foreign currency swaps	Other assets	$	23,349	$	10,709	$	7,822
Foreign currency swaps	Other long-term liabilities	20,361		39,690		48,087

Gains or losses recognized in the consolidated results of operations for cash flow hedging relationships are not significant for each of the periods presented. The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships for each of the periods, presented on a pretax basis, are as follows:

	13-Week Period Ended Dec. 29, 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	$	11,993,995	$	2,319,817	$	87,113
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(46,919	)
Derivatives designated as hedging instruments	—		—		31,550

⁽¹⁾  The hedged total includes interest expense of $15.7 million and change in fair value of debt of $31.3 million.

	13-Week Period Ended Dec. 30, 2017
	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	$	11,712,104	$	2,170,834	$	85,986
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(7,515	)
Derivatives designated as hedging instruments	—		—		(9,942		)

⁽¹⁾  The hedged total includes interest expense of $17.1 million and change in fair value of debt of $9.6 million.

	26-Week Period Ended Dec. 29, 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	$	24,305,489	$	4,595,462	$	176,129
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(55,506	)
Derivatives designated as hedging instruments	—		—		20,691

⁽¹⁾  The hedged total includes interest expense of $30.8 million and change in fair value of debt of $24.7 million.

	26-Week Period Ended Dec. 30, 2017
	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	$	23,568,860	$	4,345,137	$	166,870
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(22,745	)
Derivatives designated as hedging instruments	—		—		(10,989		)

⁽¹⁾  The hedged total includes interest expense of $34.2 million and change in fair value of debt of $11.4 million.

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended December 29, 2018 and December 30, 2017, presented on a pretax basis, are as follows:

	13-Week Period Ended Dec. 29, 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	$	(36,843	)	Operating expense	$	5,040
Foreign currency contracts	25,463			Cost of goods sold	8
Total	$	(11,380	)		$	5,048
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	27,143		N/A	$	—
Foreign denominated debt	8,150			N/A	—
Total	$	35,293			$	—
	13-Week Period Ended Dec. 30, 2017
	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	$	8,505		Operating expense	$	1,814
Foreign currency contracts	6,331			Cost of goods sold	525
Total	$	14,836			$	2,339
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(12,063	)	N/A	$	—
Foreign denominated debt	(9,450		)	N/A	—
Total	$	(21,513	)		$	—

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 26-week periods ended December 29, 2018 and December 30, 2017, presented on a pretax basis, are as follows:

	26-Week Period Ended Dec. 29, 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	$	(35,817	)	Operating expense	$	9,393
Foreign currency contracts	20,660			Cost of goods sold	491
Total	$	(15,157	)		$	9,884
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	34,371		N/A	$	—
Foreign denominated debt	12,100			N/A	—
Total	$	46,471			$	—
	26-Week Period Ended Dec. 30, 2017
	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	$	19,706		Operating expense	$	1,658
Foreign currency contracts	(15,462		)	Cost of goods sold	834
Total	$	4,244			$	2,492
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(27,957	)	N/A	$	—
Foreign denominated debt	(28,600		)	N/A	—
Total	$	(56,557	)		$	—

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 29, 2018 are as follows:

	Dec. 29, 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	$	(499,867	)	$	2,152
Long-term debt	(2,310,689		)	25,776

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 carrying amount of hedged liabilities in the consolidated balance sheet as of December 30, 2017, are as follows:

	Dec. 30, 2017
	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	$	(499,960	)	$	—
Long-term debt	(1,747,194		)	18,282

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Debt

6 Months Ended

Dec. 29, 2018

Debt Disclosure [Abstract]

Debt

DEBT

Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion. As of December 29, 2018, there was $109.9 million in commercial paper issuances outstanding. Any outstanding amounts are classified within long-term debt, as the program is supported by a long-term revolving credit facility. During the first 26 weeks of fiscal 2019, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from zero to approximately $669.0 million.

Senior notes offering

On September 25, 2018, Sysco issued senior notes totaling CDN $500.0 million. The senior notes were issued in Canada with a coupon rate of 3.65% and pricing, as a percentage of par, of 99.962%. Net proceeds from the offering were used to repay internal debt that was created in fiscal 2018 when the company repatriated earnings from its Canadian operations back to Sysco Corporation, and to repay outstanding borrowings under Sysco’s commercial paper program, along with other general corporate purposes. Interest on the senior notes will be paid semi-annually on April 25 and October 25, beginning April 25, 2019. At Sysco’s option, any or all of the senior notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem the senior notes before the date that is two months prior to the maturity date, Sysco will pay an amount equal to the greater of (1) 100% of the principal amount of the senior notes to be redeemed; or (2) the applicable yield price, plus in either case, any accrued and unpaid interest on the senior notes to be redeemed to the date of redemption. If Sysco elects to redeem a series of senior notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the senior notes to be redeemed plus accrued and unpaid interest on the senior notes redeemed to the redemption date.

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Earnings Per Share

6 Months Ended

Dec. 29, 2018

Earnings Per Share, Basic [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:

	13-Week Period Ended				26-Week Period Ended
	Dec. 29, 2018		Dec. 30, 2017		Dec. 29, 2018		Dec. 30, 2017
	(In thousands, except for share and per share data)				(In thousands, except for share and per share data)
Numerator:
Net earnings	$	267,380	$	284,113	$	698,422	$	651,753
Denominator:
Weighted-average basic shares outstanding	517,871,328		521,284,182		519,363,973		524,286,931
Dilutive effect of share-based awards	6,729,182		5,965,405		7,453,528		5,869,579
Weighted-average diluted shares outstanding	524,600,510		527,249,587		526,817,501		530,156,510
Basic earnings per share	$	0.52	$	0.55	$	1.34	$	1.24
Diluted earnings per share	$	0.51	$	0.54	$	1.33	$	1.23
Dividends declared per common share	$	0.39	$	0.36	$	0.75	$	0.69

The number of securities that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 2,565,000 and 2,749,000 for the second quarter of fiscal 2019 and fiscal 2018, respectively. The number of options that were not included in the diluted earnings per share calculation because the effect would have been anti-dilutive was approximately 3,630,000 and 4,594,000 for the first 26 weeks of fiscal 2019 and fiscal 2018, respectively.

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Other Comprehensive Income

6 Months Ended

Dec. 29, 2018

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Other Comprehensive Income

OTHER COMPREHENSIVE INCOME

Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity, such as foreign currency translation adjustment, amounts related to cash flow hedging arrangements and certain amounts related to pension and other postretirement plans. Comprehensive income was $193.8 million and $310.7 million for the second quarter of fiscal 2019 and fiscal 2018, respectively. Comprehensive income was $583.3 million and $798.5 million for the first 26 weeks of fiscal 2019 and fiscal 2018, respectively.

A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows:

		13-Week Period Ended Dec. 29, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,133		$	533		$	1,600
Amortization of actuarial loss (gain), net	Other expense, net	8,706			2,177			6,529
Total reclassification adjustments		10,839			2,710			8,129
Foreign currency translation:
Foreign currency translation adjustment	N/A	(101,533		)	—			(101,533		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(11,380		)	(2,596		)	(8,784		)
Change in net investment hedges	N/A	35,293			8,824			26,469
Total other comprehensive income (loss) before reclassification adjustments		23,913			6,228			17,685
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	(63,908	)	$	9,656		$	(73,564	)

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

		13-Week Period Ended Dec. 30, 2017
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,409		$	602		$	1,807
Amortization of actuarial loss (gain), net	Other expense, net	8,761			2,190			6,571
Total reclassification adjustments		11,170			2,792			8,378
Foreign currency translation:
Foreign currency translation adjustment	N/A	19,254			—			19,254
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	2,944			2,027			917
Change in net investment hedges	N/A	(6,543		)	(2,390		)	(4,153		)
Total other comprehensive income (loss) before reclassification adjustments		(3,599		)	(363		)	(3,236		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	29,698		$	3,147		$	26,551

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

		26-Week Period Ended Dec. 29, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial loss		$	(36,891	)	$	(4,380	)	$	(32,511	)
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	4,266			1,066			3,200
Amortization of actuarial loss (gain), net	Other expense, net	17,412			4,354			13,058
Total reclassification adjustments		21,678			5,420			16,258
Foreign currency translation:
Other comprehensive income (loss) before reclassification adjustments:
Foreign currency translation adjustment	N/A	(126,460		)	—			(126,460		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(15,157		)	(3,365		)	(11,792		)
Change in net investment hedges	N/A	46,471			11,414			35,057
Total other comprehensive income (loss) before reclassification adjustments		31,314			8,049			23,265
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,746			1,436			4,310
Total other comprehensive income (loss)		$	(104,613	)	$	10,525		$	(115,138	)

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

		26-Week Period Ended Dec. 30, 2017
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	4,818		$	1,527		$	3,291
Amortization of actuarial loss (gain), net	Other expense, net	17,522			5,554			11,968
Total reclassification adjustments		22,340			7,081			15,259
Foreign currency translation:
Foreign currency translation adjustment	N/A	140,584			—			140,584
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	6,350			3,232			3,118
Change in net investment hedges	N/A	(29,918		)	(13,741		)	(16,177		)
Total other comprehensive income (loss) before reclassification adjustments		(23,568		)	(10,509		)	(13,059		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,746			1,821			3,925
Total other comprehensive income (loss)		$	145,102		$	(1,607	)	$	146,709

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:

	26-Week Period Ended Dec. 29, 2018
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jun. 30, 2018	$	(1,095,059	)	$	(171,043	)	$	(143,167	)	$	(1,409,269	)
Equity adjustment from foreign currency translation	—			(126,460		)	—			(126,460		)
Amortization of cash flow hedges	—			—			4,310			4,310
Change in net investment hedges	—			—			35,057			35,057
Change in cash flow hedge	—			—			(11,792		)	(11,792		)
Net actuarial loss	(32,511		)	—			—			(32,511		)
Amortization of unrecognized prior service cost	3,200			—			—			3,200
Amortization of unrecognized net actuarial losses	13,058			—			—			13,058
Balance as of Dec. 29, 2018	$	(1,111,312	)	$	(297,503	)	$	(115,592	)	$	(1,524,407	)

	26-Week Period Ended Dec. 30, 2017
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jul. 1, 2017	$	(974,232	)	$	(148,056	)	$	(140,449	)	$	(1,262,737	)
Equity adjustment from foreign currency translation	—			140,584			—			140,584
Amortization of cash flow hedges	—			—			3,925			3,925
Change in net investment hedges	—			—			(16,177		)	(16,177		)
Change in cash flow hedges	—			—			3,118			3,118
Amortization of unrecognized prior service cost	3,291			—			—			3,291
Amortization of unrecognized net actuarial losses	11,968			—			—			11,968
Balance as of Dec. 30, 2017	$	(958,973	)	$	(7,472	)	$	(149,583	)	$	(1,116,028	)

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Share-Based Compensation

6 Months Ended

Dec. 29, 2018

Share-based Compensation [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP).

Stock Incentive Plans

In the first 26 weeks of fiscal 2019, options to purchase 2,609,755 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant-date fair value per option granted during the first 26 weeks of fiscal 2019 was $11.70.

In the first 26 weeks of fiscal 2019, 574,768 performance share units (PSUs) were granted to employees. Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For PSUs granted without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per performance share unit granted during the first 26 weeks of fiscal 2019 was $74.86. The PSUs will convert into shares of Sysco common stock at the end of the performance period based on financial performance targets consisting of Sysco’s earnings per share compound annual growth rate and adjusted return on invested capital.

Employee Stock Purchase Plan

Plan participants purchased 486,452 shares of common stock under the Sysco ESPP during the first 26 weeks of fiscal 2019.

The weighted average fair value per right of employee stock purchase rights issued pursuant to the ESPP was $10.64 during the first 26 weeks of fiscal 2019. The fair value of the stock purchase rights is estimated as the difference between the stock price and the employee purchase price.

All Share-Based Payment Arrangements

The total share-based compensation cost that has been recognized in results of operations was $54.2 million and $51.6 million for the first 26 weeks of fiscal 2019 and fiscal 2018, respectively.

As of December 29, 2018, there was $129.9 million of total unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 1.91 years.

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Income Taxes

6 Months Ended

Dec. 29, 2018

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Effective Tax Rate

The effective tax rates for the second quarter and first 26 weeks of fiscal 2019 were 24.59% and 21.75%, respectively. The lower effective tax rate for the second quarter of fiscal 2019 is primarily due to lower tax rates enacted from the Tax Cuts and Job Act (Tax Act), the favorable impact of excess tax benefits of equity-based compensation that totaled $7.6 million, the unfavorable impact of $11.9 million attributable to finalizing accounting with regard to certain provisions of the Tax Act, and the additional U.S. federal tax burden as a result of the global intangible low taxed income (GILTI) regime, which the company is accounting for as a periodic cost. In the second quarter of fiscal 2018, lower U.S. tax rates from the Tax Act were not yet fully applicable. The effective tax rate for the second quarter of fiscal 2018 reflects the favorable impact of the excess tax benefits of equity-based compensation that totaled $14.8 million, as well as the impact of changes in tax law in various foreign jurisdictions of $8.1 million. The effective tax rate for the second quarter of fiscal 2018 of 37.11% and the first 26 weeks of fiscal 2018 of 34.71% were negatively impacted by the transition tax resulting from the Tax Act.

In accordance with SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Job Act, the company recognized the provisional impacts related to re-measurement of deferred tax assets and liabilities and the one-time transition tax in its results for the annual period ended June 30, 2018. As of the second quarter of fiscal 2019, the company has completed its accounting for all aspects of the Tax Act, with a corresponding adjustment of $15.1 million to income tax expense related to Transition Tax, and a benefit of $3.2 million attributable to realizability of certain deferred tax assets.

Uncertain Tax Positions

As of December 29, 2018, the gross amount of unrecognized tax benefit and related accrued interest was $6.6 million and $4.4 million, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the company’s unrecognized tax positions will increase or decrease in the next twelve months. At this time, an estimate of the range of the reasonably possible change cannot be made.

Other

The determination of the company’s provision for income taxes requires judgment, the use of estimates and the interpretation and application of complex tax laws. The company’s provision for income taxes reflects a combination of income earned and taxed in the various U.S. federal and state, as well as foreign, jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for unrecognized tax benefits or valuation allowances, and the company’s change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate.

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Commitments and Contingencies

6 Months Ended

Dec. 29, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Legal Proceedings

Sysco is engaged in various legal proceedings that have arisen but have not been fully adjudicated. The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When probable and reasonably estimable, the losses have been accrued. Although the final results of legal proceedings cannot be predicted with certainty, based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company.

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Business Segment Information

6 Months Ended

Dec. 29, 2018

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

The company has aggregated certain of its operating segments into three reportable segments. “Other” financial information is attributable to the company’s other operating segments that do not meet the quantitative disclosure thresholds.

• U.S. Foodservice Operations - primarily includes U.S. Broadline operations, which distribute a full line of food products including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products;

• International Foodservice Operations - includes operations in the Americas and Europe, which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden;

• SYGMA - our U.S. customized distribution subsidiary; and

• Other - primarily our hotel supply operations and Sysco Labs, which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs.

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These also include all share-based compensation costs.

The following tables set forth certain financial information for Sysco’s reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07.

	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	10,087,105		$	9,681,225		$	20,486,516		$	19,530,167
International Foodservice Operations	2,890,598			2,869,043			5,811,548			5,772,298
SYGMA	1,536,607			1,633,145			3,158,064			3,273,816
Other	251,397			228,077			524,858			485,633
Total	$	14,765,707		$	14,411,490		$	29,980,986		$	29,061,914
	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	737,477		$	707,581		$	1,553,235		$	1,489,656
International Foodservice Operations	(14,917		)	52,594			51,855			129,398
SYGMA	3,114			3,353			5,545			8,198
Other	5,718			6,181			16,053			13,113
Total segments	731,392			769,709			1,626,688			1,640,365
Corporate	(279,497		)	(241,157		)	(546,653		)	(492,448		)
Total operating income	451,895			528,552			1,080,035			1,147,917
Interest expense	87,113			85,986			176,129			166,870
Other expense (income), net	10,197			(9,162		)	11,329			(17,137		)
Earnings before income taxes	$	354,585		$	451,728		$	892,577		$	998,184

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Supplemental Guarantor Information - Subsidiary Guarantees

6 Months Ended

Dec. 29, 2018

Guarantees [Abstract]

Supplemental Guarantor Information - Subsidiary Guarantees

SUPPLEMENTAL GUARANTOR INFORMATION - SUBSIDIARY GUARANTEES

On January 19, 2011, the wholly owned U.S. Broadline subsidiaries of Sysco Corporation at that time entered into full and unconditional guarantees of all outstanding senior notes and debentures of Sysco Corporation. All subsequent issuances of senior notes and debentures in the U.S. have also been guaranteed by these subsidiaries. As of December 29, 2018, Sysco had a total of $8.4 billion in senior notes and debentures that was covered by these guarantees.

All subsidiary guarantors are 100% owned by the parent company, all guarantees are full and unconditional and all guarantees are joint and several, except that the guarantee of any subsidiary guarantor with respect to a series of senior notes or debentures may be released under certain customary circumstances. If we exercise our defeasance option with respect to the senior notes or debentures of any series, then any subsidiary guarantor effectively will be released with respect to that series. Further, each subsidiary guarantee will remain in full force and effect until the earliest to occur of the date, if any, on which (1) the applicable subsidiary guarantor shall consolidate with or merge into Sysco Corporation or any successor of Sysco Corporation or (2) Sysco Corporation or any successor of Sysco Corporation consolidates with or merges into the applicable subsidiary guarantor.

The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (certain of the company’s U.S. Broadline subsidiaries), and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries.

	Condensed Consolidated Balance Sheet
	Dec. 29, 2018
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	138,324	$	4,087,103	$	4,212,356	$	—		$	8,437,783
Intercompany receivables	7,062,518		110,889		2,433,329		(9,606,736		)	—
Investment in subsidiaries	5,864,415		—		1,210,579		(7,074,994		)	—
Plant and equipment, net	254,187		2,122,911		1,998,452		—			4,375,550
Other assets	745,923		684,276		4,465,022		(514,378		)	5,380,843
Total assets	$	14,065,367	$	7,005,179	$	14,319,738	$	(17,196,108	)	$	18,194,176
Current liabilities	$	1,211,568	$	928,505	$	4,610,097	$	—		$	6,750,170
Intercompany payables	2,514,212		2,535,827		4,556,697		(9,606,736		)	—
Long-term debt	7,593,478		9,605		416,763		—			8,019,846
Other liabilities	578,475		536,378		620,692		(514,378		)	1,221,167
Noncontrolling interest	—		—		35,357		—			35,357
Shareholders’ equity	2,167,634		2,994,864		4,080,132		(7,074,994		)	2,167,636
Total liabilities and shareholders’ equity	$	14,065,367	$	7,005,179	$	14,319,738	$	(17,196,108	)	$	18,194,176

	Condensed Consolidated Balance Sheet
	Jun. 30, 2018
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	157,994	$	4,018,444	$	3,827,015	$	—		$	8,003,453
Intercompany receivables	6,621,438		270,748		5,793,352		(12,685,538		)	—
Investment in subsidiaries	4,896,004		—		983,625		(5,879,629		)	—
Plant and equipment, net	278,855		2,181,576		2,061,229		—			4,521,660
Other assets	788,473		611,004		4,593,537		(447,723		)	5,545,291
Total assets	$	12,742,764	$	7,081,772	$	17,258,758	$	(19,012,890	)	$	18,070,404
Current liabilities	$	1,233,541	$	886,305	$	4,468,900	$	—		$	6,588,746
Intercompany payables	882,487		3,798,134		8,004,917		(12,685,538		)	—
Long-term debt	7,470,334		8,285		62,146		—			7,540,765
Other liabilities	649,445		508,387		686,178		(447,723		)	1,396,287
Noncontrolling interest	—		—		37,649		—			37,649
Shareholders’ equity	2,506,957		1,880,661		3,998,968		(5,879,629		)	2,506,957
Total liabilities and shareholders’ equity	$	12,742,764	$	7,081,772	$	17,258,758	$	(19,012,890	)	$	18,070,404

	Condensed Consolidated Balance Sheet
	Dec. 30, 2017
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	189,553	$	3,803,349	$	4,279,266	$	—		$	8,272,168
Intercompany receivables	2,945,188		1,276,341		—		(4,221,529		)	—
Investment in subsidiaries	7,623,839		—		—		(7,623,839		)	—
Plant and equipment, net	262,790		2,018,365		2,085,137		—			4,366,292
Other assets	965,800		55,820		4,559,290		—			5,580,910
Total assets	$	11,987,170	$	7,153,875	$	10,923,693	$	(11,845,368	)	$	18,219,370
Current liabilities	$	540,008	$	3,781,141	$	1,661,821	$	—		$	5,982,970
Intercompany payables	—		—		4,221,529		(4,221,529		)	—
Long-term debt	8,239,844		6,995		65,650		—			8,312,489
Other liabilities	938,716		87,230		595,839		—			1,621,785
Noncontrolling interest	—		—		33,524		—			33,524
Shareholders’ equity	2,268,602		3,278,509		4,345,330		(7,623,839		)	2,268,602
Total liabilities and shareholders’ equity	$	11,987,170	$	7,153,875	$	10,923,693	$	(11,845,368	)	$	18,219,370

	Condensed Consolidated Statement of Comprehensive Income
	For the 13-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	9,101,114		$	6,329,665		$	(665,072	)	$	14,765,707
Cost of sales	—			7,381,785			5,277,282			(665,072		)	11,993,995
Gross profit	—			1,719,329			1,052,383			—			2,771,712
Operating expenses	232,621			1,035,676			1,051,520			—			2,319,817
Operating income (loss)	(232,621		)	683,653			863			—			451,895
Interest expense (income) (1)	63,491			(8,920		)	32,542			—			87,113
Other expense (income), net	3,772			(86		)	6,511			—			10,197
Earnings (losses) before income taxes	(299,884		)	692,659			(38,190		)	—			354,585
Income tax (benefit) provision	(73,057		)	170,960			(10,698		)	—			87,205
Equity in earnings of subsidiaries	494,207			—			128,030			(622,237		)	—
Net earnings	267,380			521,699			100,538			(622,237		)	267,380
Other comprehensive income (loss)	(73,564		)	—			(101,533		)	101,533			(73,564		)
Comprehensive income	$	193,816		$	521,699		$	(995	)	$	(520,704	)	$	193,816

⁽¹⁾  Interest expense (income) includes $8.9 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the second quarter ended December 29, 2018. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 13-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	8,754,169		$	6,169,239	$	(511,918	)	$	14,411,490
Cost of sales	—			7,102,287			5,121,735		(511,918		)	11,712,104
Gross profit	—			1,651,882			1,047,504		—			2,699,386
Operating expenses	203,892			993,440			973,502		—			2,170,834
Operating income (loss)	(203,892		)	658,442			74,002		—			528,552
Interest expense (income) (1)	108,768			(27,955		)	5,173		—			85,986
Other expense (income), net	(10,122		)	69			891		—			(9,162		)
Earnings (losses) before income taxes	(302,538		)	686,328			67,938		—			451,728
Income tax (benefit) provision	(120,315		)	262,822			25,108		—			167,615
Equity in earnings of subsidiaries	466,336			—			—		(466,336		)	—
Net earnings	284,113			423,506			42,830		(466,336		)	284,113
Other comprehensive income (loss)	26,551			—			19,254		(19,254		)	26,551
Comprehensive income	$	310,664		$	423,506		$	62,084	$	(485,590	)	$	310,664

⁽¹⁾  Interest expense (income) includes $28.0 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the second quarter ended December 30, 2017. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 26-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	18,580,920		$	12,563,823		$	(1,163,757	)	$	29,980,986
Cost of sales	—			15,041,886			10,427,360			(1,163,757		)	24,305,489
Gross profit	—			3,539,034			2,136,463			—			5,675,497
Operating expenses	452,902			2,088,027			2,054,533			—			4,595,462
Operating income (loss)	(452,902		)	1,451,007			81,930			—			1,080,035
Interest expense (income) (1)	104,905			(30,459		)	101,683			—			176,129
Other expense (income), net	10,372			(140		)	1,097			—			11,329
Earnings (losses) before income taxes	(568,179		)	1,481,606			(20,850		)	—			892,577
Income tax (benefit) provision	(166,645		)	367,404			(6,604		)	—			194,155
Equity in earnings of subsidiaries	1,099,956			—			222,371			(1,322,327		)	—
Net earnings	698,422			1,114,202			208,125			(1,322,327		)	698,422
Other comprehensive income (loss)	(115,138		)	—			(126,460		)	126,460			(115,138		)
Comprehensive income	$	583,284		$	1,114,202		$	81,665		$	(1,195,867	)	$	583,284

⁽¹⁾  Interest expense (income) includes $30.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 26-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	17,775,826		$	12,289,551	$	(1,003,463	)	$	29,061,914
Cost of sales	—			14,377,711			10,194,612		(1,003,463		)	23,568,860
Gross profit	—			3,398,115			2,094,939		—			5,493,054
Operating expenses	406,848			1,999,593			1,938,696		—			4,345,137
Operating income (loss)	(406,848		)	1,398,522			156,243		—			1,147,917
Interest expense (income) (1)	207,764			(51,306		)	10,412		—			166,870
Other expense (income), net	(18,829		)	854			838		—			(17,137		)
Earnings (losses) before income taxes	(595,783		)	1,448,974			144,993		—			998,184
Income tax (benefit) provision	(216,273		)	512,383			50,321		—			346,431
Equity in earnings of subsidiaries	1,031,263			—			—		(1,031,263		)	—
Net earnings	651,753			936,591			94,672		(1,031,263		)	651,753
Other comprehensive income (loss)	146,709			—			140,583		(140,583		)	146,709
Comprehensive income	$	798,462		$	936,591		$	235,255	$	(1,171,846	)	$	798,462

⁽¹⁾  Interest expense (income) includes $51.3 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Cash Flows
	For the 26-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination (1)			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	485,875		$	100,079		$	331,836		$	—		$	917,790
Investing activities	432,730			(85,254		)	(66,591		)	(497,897		)	(217,012		)
Financing activities	(912,101		)	(2,819		)	(93,709		)	497,897			(510,732		)
Effect of exchange rates on cash	—			—			(8,904		)	—			(8,904		)
Net increase in cash, cash equivalents and restricted cash	6,504			12,006			162,632			—			181,142
Cash, cash equivalents and restricted cash at the beginning of period	29,144			111,843			574,857			—			715,844
Cash, cash equivalents and restricted cash at the end of period	$	35,648		$	123,849		$	737,489		$	—		$	896,986

⁽¹⁾  Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation.

	Condensed Consolidated Cash Flows
	For the 26-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination (1)			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	252,770		$	195,650		$	484,784		$	—		$	933,204
Investing activities	(104,914		)	(112,513		)	(332,538		)	147,622			(402,343		)
Financing activities	(159,309		)	(3,890		)	893			(147,622		)	(309,928		)
Effect of exchange rates on cash	—			—			23,510			—			23,510
Net increase (decrease) in cash and cash equivalents	(11,453		)	79,247			176,649			—			244,443
Cash and cash equivalents at the beginning of period	111,576			18,788			739,138			—			869,502
Cash and cash equivalents at the end of period	$	100,123		$	98,035		$	915,787		$	—		$	1,113,945

⁽¹⁾  Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation.

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New Accounting Standards (Policies)

6 Months Ended

Dec. 29, 2018

Accounting Policies [Abstract]

New Accounting Standards

Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has issued subsequent amendments to this guidance. This new standard superseded existing revenue recognition standards and eliminated all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The revenue recognition principle in ASU 2014-09 is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Sysco adopted the new standard effective July 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not have a material impact on Sysco’s consolidated balance sheet or consolidated results of operations as of the adoption date or for the period ended December 29, 2018.

Guidance in Presentation of Cash Flows - Classification of Certain Cash Receipts and Cash Payments

In August 2016, the FASB issued Accounting Standards Update (ASU) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The eight specific issues are: (1) Debt Prepayment or Debt Extinguishment Costs; (2) Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; (3) Contingent Consideration Payments Made after a Businesses Combination; (4) Proceeds from the Settlement of Insurance Claims; (5) Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned Life Insurance Policies; (6) Distributions Received from Equity Method Invitees; (7) Beneficial Interests in Securitization Transactions; and (8) Separately Identifiable Cash and Application of the Predominance Principle. The company adopted this ASU retrospectively, effective July 1, 2018. The adoption of ASU 2016-15 did not have a material effect on the company’s consolidated cash flow statement as of the adoption date or for the period ended December 29, 2018.

Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, requiring that an employer report the service cost component of pension and postretirement benefits in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside of a subtotal of income from operations. In addition, only the service cost component will be eligible for capitalization as applicable. The company adopted this ASU effective July 1, 2018, resulting in net cost of $8.9 million in the second quarter of fiscal 2019 and net cost of $17.8 million for the first 26 weeks of fiscal 2019 being reported in other expense (income), net that would have previously been included in operating expense. The ASU was applied retrospectively, resulting in net benefit of $3.7 million in the second quarter of fiscal 2019 and net benefit of $7.5 million for the first 26 weeks of fiscal 2018 being reported in other expense (income), net.

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco, with early adoption permitted.

To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company is in the process of gathering lease data, reviewing its lease portfolio, and completing an impact assessment with respect to the adoption of the provisions of the new standard. To facilitate this ongoing process, the company is currently implementing a third-party lease accounting software. The company will finalize its assessment in fiscal 2019 and adopt this standard on June 30, 2019, the first day of fiscal 2020.

Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard.

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Basis of Presentation (Tables)

6 Months Ended

Dec. 29, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of reconciliation of cash, cash equivalents and restricted cash

The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows:

	Dec. 29, 2018		Dec. 30, 2017
	(In thousands)
Cash and cash equivalents	$	744,808	$	961,067
Restricted cash (1)	152,178		152,878
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows	$	896,986	$	1,113,945

⁽¹⁾  Restricted cash as of December 29, 2018 primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in the consolidated balance sheet as of December 29, 2018.

Restrictions on cash and cash equivalents

The following table sets forth the company’s reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statement of Cash Flows:

	Dec. 29, 2018		Dec. 30, 2017
	(In thousands)
Cash and cash equivalents	$	744,808	$	961,067
Restricted cash (1)	152,178		152,878
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows	$	896,986	$	1,113,945

⁽¹⁾  Restricted cash as of December 29, 2018 primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in the consolidated balance sheet as of December 29, 2018.

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Revenue (Tables)

6 Months Ended

Dec. 29, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented:

	13-Week Period Ended Dec. 29, 2018
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	2,084,648	$	409,086	$	374,069	$	—	$	2,867,803
Canned and dry products	1,799,535		611,609		66,719		—		2,477,863
Frozen fruits, vegetables, bakery and other	1,417,063		354,178		315,129		—		2,086,370
Dairy products	1,041,436		306,364		148,103		—		1,495,903
Poultry	1,001,579		209,542		208,674		—		1,419,795
Fresh produce	927,997		322,020		57,048		—		1,307,065
Paper and disposables	681,890		87,376		181,896		14,175		965,337
Seafood	581,655		196,413		23,451		—		801,519
Beverage products	271,182		161,317		136,244		20,422		589,165
Other (1)	280,120		232,693		25,274		216,800		754,887
Total Sales	$	10,087,105	$	2,890,598	$	1,536,607	$	251,397	$	14,765,707

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	13-Week Period Ended Dec. 30, 2017
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	1,975,717	$	411,726	$	375,602	$	—	$	2,763,045
Canned and dry products	1,742,913		579,881		89,274		—		2,412,068
Frozen fruits, vegetables, bakery and other	1,316,229		645,354		289,133		—		2,250,716
Dairy products	1,019,134		308,362		162,372		—		1,489,868
Poultry	997,225		212,552		277,820		—		1,487,597
Fresh produce	902,943		256,746		63,947		—		1,223,636
Paper and disposables	637,520		98,258		183,205		13,445		932,428
Seafood	555,996		182,393		21,109		—		759,498
Beverage products	266,102		48,819		140,190		19,441		474,552
Other (1)	267,446		124,952		30,493		195,191		618,082
Total Sales	$	9,681,225	$	2,869,043	$	1,633,145	$	228,077	$	14,411,490

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	26-Week Period Ended Dec. 29, 2018
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	4,206,167	$	829,542	$	746,401	$	—	$	5,782,110
Canned and dry products	3,651,702		1,223,079		144,341		—		5,019,122
Frozen fruits, vegetables, bakery and other	2,840,449		982,735		606,995		—		4,430,179
Dairy products	2,127,840		624,711		302,909		—		3,055,460
Poultry	2,028,515		425,124		480,735		—		2,934,374
Fresh produce	1,865,577		579,564		121,897		—		2,567,038
Paper and disposables	1,392,649		191,915		370,512		30,584		1,985,660
Seafood	1,243,342		384,850		48,835		—		1,677,027
Beverage products	561,752		213,388		283,538		43,601		1,102,279
Other (1)	568,523		356,640		51,901		450,673		1,427,737
Total Sales	$	20,486,516	$	5,811,548	$	3,158,064	$	524,858	$	29,980,986

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

	26-Week Period Ended Dec. 30, 2017
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	4,006,857	$	846,365	$	761,851	$	—	$	5,615,073
Canned and dry products	3,481,591		1,173,234		166,759		—		4,821,584
Frozen fruits, vegetables, bakery and other	2,582,958		1,271,422		561,725		—		4,416,105
Poultry	2,043,911		420,017		574,719		—		3,038,647
Dairy products	2,036,796		624,016		329,059		—		2,989,871
Fresh produce	1,826,735		522,329		129,493		—		2,478,557
Paper and disposables	1,293,829		202,368		365,034		28,835		1,890,066
Seafood	1,176,317		365,664		44,884		—		1,586,865
Beverage products	541,232		99,878		285,264		42,452		968,826
Other (1)	539,941		247,005		55,028		414,346		1,256,320
Total Sales	$	19,530,167	$	5,772,298	$	3,273,816	$	485,633	$	29,061,914

⁽¹⁾  Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.

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Fair Value Measurements (Tables)

6 Months Ended

Dec. 29, 2018

Fair Value Disclosures [Abstract]

Assets and liabilities measured at fair value table

The following tables present the company’s assets measured at fair value on a recurring basis as of December 29, 2018, June 30, 2018 and December 30, 2017:

	Assets and Liabilities Measured at Fair Value as of Dec. 29, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	298,461	$	200	$	—	$	298,661
Other assets (1)	152,178		—		—		152,178
Total assets at fair value	$	450,639	$	200	$	—	$	450,839

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

	Assets and Liabilities Measured at Fair Value as of Jun. 30, 2018
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	169,214	$	30,190	$	—	$	199,404
Other assets (1)	163,519		—		—		163,519
Total assets at fair value	$	332,733	$	30,190	$	—	$	362,923

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

	Assets and Liabilities Measured at Fair Value as of Dec. 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	241,071	$	43,191	$	—	$	284,262
Other assets (1)	145,734		7,143		—		152,877
Total assets at fair value	$	386,805	$	50,334	$	—	$	437,139

⁽¹⁾  Represents restricted cash balance recorded within other assets in the consolidated balance sheet.

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Derivative Financial Instruments (Tables)

6 Months Ended

Dec. 29, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of outstanding swap agreements

Details of outstanding hedging instruments as of December 29, 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
June 2023	Euro	500
March 2025	U.S. Dollar	500
Hedging of foreign currency risk
Various (January 2019 to April 2019)	Swedish Krona	261
Various (January 2019 to October 2019)	British Pound Sterling	20
Various (January 2019 to December 2019)	U.S. Dollar	1
June 2021	Canadian Dollar	300
July 2021	British Pound Sterling	234
August 2021	British Pound Sterling	466
June 2023	Euro	500
Hedging of fuel risk
Various (December 31, 2018 to December 2019)	Gallons	52

Derivatives balance sheet location table

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of December 29, 2018 are as follows:

	Dec. 29, 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	$	(499,867	)	$	2,152
Long-term debt	(2,310,689		)	25,776

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 carrying amount of hedged liabilities in the consolidated balance sheet as of December 30, 2017, are as follows:

	Dec. 30, 2017
	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	$	(499,960	)	$	—
Long-term debt	(1,747,194		)	18,282

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of December 29, 2018, June 30, 2018 and December 30, 2017 are as follows:

		Derivative Fair Value
	Balance Sheet location	Dec. 29, 2018		Jun. 30, 2018		Dec. 30, 2017
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	—	$	—	$	118
Interest rate swaps	Other assets	5,207		—		—
Interest rate swaps	Other current liabilities	2,180		6,820		—
Interest rate swaps	Other long-term liabilities	31,488		49,734		33,003
Cash Flow Hedges:
Fuel Swaps	Other current assets	$	—	$	15,316	$	13,678
Foreign currency forwards	Other current assets	246		693		555
Cross currency swaps	Other current assets	—		4,284		—
Cross currency swaps	Other assets	13,773		3,454		—
Fuel Swaps	Other current liabilities	19,548		—		—
Foreign currency forwards	Other current liabilities	226		71		351
Fuel swaps	Other long-term liabilities	742		—		—
Cross currency swaps	Other long-term liabilities	—		14,201		21,310
Net Investment Hedges:
Foreign currency swaps	Other assets	$	23,349	$	10,709	$	7,822
Foreign currency swaps	Other long-term liabilities	20,361		39,690		48,087

Schedule of location and effect of derivative instruments and related hedged items

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

	13-Week Period Ended Dec. 29, 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	$	11,993,995	$	2,319,817	$	87,113
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(46,919	)
Derivatives designated as hedging instruments	—		—		31,550

⁽¹⁾  The hedged total includes interest expense of $15.7 million and change in fair value of debt of $31.3 million.

	13-Week Period Ended Dec. 30, 2017
	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	$	11,712,104	$	2,170,834	$	85,986
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(7,515	)
Derivatives designated as hedging instruments	—		—		(9,942		)

⁽¹⁾  The hedged total includes interest expense of $17.1 million and change in fair value of debt of $9.6 million.

	26-Week Period Ended Dec. 29, 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	$	24,305,489	$	4,595,462	$	176,129
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(55,506	)
Derivatives designated as hedging instruments	—		—		20,691

⁽¹⁾  The hedged total includes interest expense of $30.8 million and change in fair value of debt of $24.7 million.

	26-Week Period Ended Dec. 30, 2017
	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	$	23,568,860	$	4,345,137	$	166,870
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items (1)	$	—	$	—	$	(22,745	)
Derivatives designated as hedging instruments	—		—		(10,989		)

⁽¹⁾  The hedged total includes interest expense of $34.2 million and change in fair value of debt of $11.4 million.

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 13-week periods ended December 29, 2018 and December 30, 2017, presented on a pretax basis, are as follows:

	13-Week Period Ended Dec. 29, 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	$	(36,843	)	Operating expense	$	5,040
Foreign currency contracts	25,463			Cost of goods sold	8
Total	$	(11,380	)		$	5,048
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	27,143		N/A	$	—
Foreign denominated debt	8,150			N/A	—
Total	$	35,293			$	—
	13-Week Period Ended Dec. 30, 2017
	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	$	8,505		Operating expense	$	1,814
Foreign currency contracts	6,331			Cost of goods sold	525
Total	$	14,836			$	2,339
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(12,063	)	N/A	$	—
Foreign denominated debt	(9,450		)	N/A	—
Total	$	(21,513	)		$	—

The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 26-week periods ended December 29, 2018 and December 30, 2017, presented on a pretax basis, are as follows:

	26-Week Period Ended Dec. 29, 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	$	(35,817	)	Operating expense	$	9,393
Foreign currency contracts	20,660			Cost of goods sold	491
Total	$	(15,157	)		$	9,884
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	34,371		N/A	$	—
Foreign denominated debt	12,100			N/A	—
Total	$	46,471			$	—
	26-Week Period Ended Dec. 30, 2017
	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	$	19,706		Operating expense	$	1,658
Foreign currency contracts	(15,462		)	Cost of goods sold	834
Total	$	4,244			$	2,492
Derivatives in net investment hedging relationships:
Foreign currency contracts	$	(27,957	)	N/A	$	—
Foreign denominated debt	(28,600		)	N/A	—
Total	$	(56,557	)		$	—

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Earnings Per Share (Tables)

6 Months Ended

Dec. 29, 2018

Earnings Per Share, Basic [Abstract]

Computation of basic and diluted earnings per share table

The following table sets forth the computation of basic and diluted earnings per share:

	13-Week Period Ended				26-Week Period Ended
	Dec. 29, 2018		Dec. 30, 2017		Dec. 29, 2018		Dec. 30, 2017
	(In thousands, except for share and per share data)				(In thousands, except for share and per share data)
Numerator:
Net earnings	$	267,380	$	284,113	$	698,422	$	651,753
Denominator:
Weighted-average basic shares outstanding	517,871,328		521,284,182		519,363,973		524,286,931
Dilutive effect of share-based awards	6,729,182		5,965,405		7,453,528		5,869,579
Weighted-average diluted shares outstanding	524,600,510		527,249,587		526,817,501		530,156,510
Basic earnings per share	$	0.52	$	0.55	$	1.34	$	1.24
Diluted earnings per share	$	0.51	$	0.54	$	1.33	$	1.23
Dividends declared per common share	$	0.39	$	0.36	$	0.75	$	0.69

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Other Comprehensive Income (Tables)

6 Months Ended

Dec. 29, 2018

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Summary of components of other comprehensive (loss) income and related tax effects

A summary of the components of other comprehensive income (loss) and the related tax effects for each of the periods presented is as follows:

		13-Week Period Ended Dec. 29, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,133		$	533		$	1,600
Amortization of actuarial loss (gain), net	Other expense, net	8,706			2,177			6,529
Total reclassification adjustments		10,839			2,710			8,129
Foreign currency translation:
Foreign currency translation adjustment	N/A	(101,533		)	—			(101,533		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(11,380		)	(2,596		)	(8,784		)
Change in net investment hedges	N/A	35,293			8,824			26,469
Total other comprehensive income (loss) before reclassification adjustments		23,913			6,228			17,685
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	(63,908	)	$	9,656		$	(73,564	)

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

		13-Week Period Ended Dec. 30, 2017
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	2,409		$	602		$	1,807
Amortization of actuarial loss (gain), net	Other expense, net	8,761			2,190			6,571
Total reclassification adjustments		11,170			2,792			8,378
Foreign currency translation:
Foreign currency translation adjustment	N/A	19,254			—			19,254
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	2,944			2,027			917
Change in net investment hedges	N/A	(6,543		)	(2,390		)	(4,153		)
Total other comprehensive income (loss) before reclassification adjustments		(3,599		)	(363		)	(3,236		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,873			718			2,155
Total other comprehensive income (loss)		$	29,698		$	3,147		$	26,551

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

		26-Week Period Ended Dec. 29, 2018
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial loss		$	(36,891	)	$	(4,380	)	$	(32,511	)
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	4,266			1,066			3,200
Amortization of actuarial loss (gain), net	Other expense, net	17,412			4,354			13,058
Total reclassification adjustments		21,678			5,420			16,258
Foreign currency translation:
Other comprehensive income (loss) before reclassification adjustments:
Foreign currency translation adjustment	N/A	(126,460		)	—			(126,460		)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	(15,157		)	(3,365		)	(11,792		)
Change in net investment hedges	N/A	46,471			11,414			35,057
Total other comprehensive income (loss) before reclassification adjustments		31,314			8,049			23,265
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,746			1,436			4,310
Total other comprehensive income (loss)		$	(104,613	)	$	10,525		$	(115,138	)

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

		26-Week Period Ended Dec. 30, 2017
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount			Tax			Net of Tax Amount
		(In thousands)
Pension and other postretirement benefit plans:
Reclassification adjustments:
Amortization of prior service cost	Other expense, net	$	4,818		$	1,527		$	3,291
Amortization of actuarial loss (gain), net	Other expense, net	17,522			5,554			11,968
Total reclassification adjustments		22,340			7,081			15,259
Foreign currency translation:
Foreign currency translation adjustment	N/A	140,584			—			140,584
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in cash flow hedges	Operating expenses (1)	6,350			3,232			3,118
Change in net investment hedges	N/A	(29,918		)	(13,741		)	(16,177		)
Total other comprehensive income (loss) before reclassification adjustments		(23,568		)	(10,509		)	(13,059		)
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	5,746			1,821			3,925
Total other comprehensive income (loss)		$	145,102		$	(1,607	)	$	146,709

⁽¹⁾  Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.

Rollforward of accumulated other comprehensive (loss) income

The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:

	26-Week Period Ended Dec. 29, 2018
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jun. 30, 2018	$	(1,095,059	)	$	(171,043	)	$	(143,167	)	$	(1,409,269	)
Equity adjustment from foreign currency translation	—			(126,460		)	—			(126,460		)
Amortization of cash flow hedges	—			—			4,310			4,310
Change in net investment hedges	—			—			35,057			35,057
Change in cash flow hedge	—			—			(11,792		)	(11,792		)
Net actuarial loss	(32,511		)	—			—			(32,511		)
Amortization of unrecognized prior service cost	3,200			—			—			3,200
Amortization of unrecognized net actuarial losses	13,058			—			—			13,058
Balance as of Dec. 29, 2018	$	(1,111,312	)	$	(297,503	)	$	(115,592	)	$	(1,524,407	)

	26-Week Period Ended Dec. 30, 2017
	Pension and Other Postretirement Benefit Plans, net of tax			Foreign Currency Translation			Hedging, net of tax			Total
	(In thousands)
Balance as of Jul. 1, 2017	$	(974,232	)	$	(148,056	)	$	(140,449	)	$	(1,262,737	)
Equity adjustment from foreign currency translation	—			140,584			—			140,584
Amortization of cash flow hedges	—			—			3,925			3,925
Change in net investment hedges	—			—			(16,177		)	(16,177		)
Change in cash flow hedges	—			—			3,118			3,118
Amortization of unrecognized prior service cost	3,291			—			—			3,291
Amortization of unrecognized net actuarial losses	11,968			—			—			11,968
Balance as of Dec. 30, 2017	$	(958,973	)	$	(7,472	)	$	(149,583	)	$	(1,116,028	)

XML

Business Segment Information (Tables)

6 Months Ended

Dec. 29, 2018

Segment Reporting [Abstract]

Business segment table

The following tables set forth certain financial information for Sysco’s reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07.

	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	10,087,105		$	9,681,225		$	20,486,516		$	19,530,167
International Foodservice Operations	2,890,598			2,869,043			5,811,548			5,772,298
SYGMA	1,536,607			1,633,145			3,158,064			3,273,816
Other	251,397			228,077			524,858			485,633
Total	$	14,765,707		$	14,411,490		$	29,980,986		$	29,061,914
	13-Week Period Ended						26-Week Period Ended
	Dec. 29, 2018			Dec. 30, 2017			Dec. 29, 2018			Dec. 30, 2017
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	737,477		$	707,581		$	1,553,235		$	1,489,656
International Foodservice Operations	(14,917		)	52,594			51,855			129,398
SYGMA	3,114			3,353			5,545			8,198
Other	5,718			6,181			16,053			13,113
Total segments	731,392			769,709			1,626,688			1,640,365
Corporate	(279,497		)	(241,157		)	(546,653		)	(492,448		)
Total operating income	451,895			528,552			1,080,035			1,147,917
Interest expense	87,113			85,986			176,129			166,870
Other expense (income), net	10,197			(9,162		)	11,329			(17,137		)
Earnings before income taxes	$	354,585		$	451,728		$	892,577		$	998,184

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Supplemental Guarantor Information - Subsidiary Guarantees (Tables)

6 Months Ended

Dec. 29, 2018

Guarantees [Abstract]

Condensed consolidating balance sheet table

The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (certain of the company’s U.S. Broadline subsidiaries), and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries.

	Condensed Consolidated Balance Sheet
	Dec. 29, 2018
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	138,324	$	4,087,103	$	4,212,356	$	—		$	8,437,783
Intercompany receivables	7,062,518		110,889		2,433,329		(9,606,736		)	—
Investment in subsidiaries	5,864,415		—		1,210,579		(7,074,994		)	—
Plant and equipment, net	254,187		2,122,911		1,998,452		—			4,375,550
Other assets	745,923		684,276		4,465,022		(514,378		)	5,380,843
Total assets	$	14,065,367	$	7,005,179	$	14,319,738	$	(17,196,108	)	$	18,194,176
Current liabilities	$	1,211,568	$	928,505	$	4,610,097	$	—		$	6,750,170
Intercompany payables	2,514,212		2,535,827		4,556,697		(9,606,736		)	—
Long-term debt	7,593,478		9,605		416,763		—			8,019,846
Other liabilities	578,475		536,378		620,692		(514,378		)	1,221,167
Noncontrolling interest	—		—		35,357		—			35,357
Shareholders’ equity	2,167,634		2,994,864		4,080,132		(7,074,994		)	2,167,636
Total liabilities and shareholders’ equity	$	14,065,367	$	7,005,179	$	14,319,738	$	(17,196,108	)	$	18,194,176

	Condensed Consolidated Balance Sheet
	Jun. 30, 2018
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	157,994	$	4,018,444	$	3,827,015	$	—		$	8,003,453
Intercompany receivables	6,621,438		270,748		5,793,352		(12,685,538		)	—
Investment in subsidiaries	4,896,004		—		983,625		(5,879,629		)	—
Plant and equipment, net	278,855		2,181,576		2,061,229		—			4,521,660
Other assets	788,473		611,004		4,593,537		(447,723		)	5,545,291
Total assets	$	12,742,764	$	7,081,772	$	17,258,758	$	(19,012,890	)	$	18,070,404
Current liabilities	$	1,233,541	$	886,305	$	4,468,900	$	—		$	6,588,746
Intercompany payables	882,487		3,798,134		8,004,917		(12,685,538		)	—
Long-term debt	7,470,334		8,285		62,146		—			7,540,765
Other liabilities	649,445		508,387		686,178		(447,723		)	1,396,287
Noncontrolling interest	—		—		37,649		—			37,649
Shareholders’ equity	2,506,957		1,880,661		3,998,968		(5,879,629		)	2,506,957
Total liabilities and shareholders’ equity	$	12,742,764	$	7,081,772	$	17,258,758	$	(19,012,890	)	$	18,070,404

	Condensed Consolidated Balance Sheet
	Dec. 30, 2017
	Sysco		Certain U.S.  Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	189,553	$	3,803,349	$	4,279,266	$	—		$	8,272,168
Intercompany receivables	2,945,188		1,276,341		—		(4,221,529		)	—
Investment in subsidiaries	7,623,839		—		—		(7,623,839		)	—
Plant and equipment, net	262,790		2,018,365		2,085,137		—			4,366,292
Other assets	965,800		55,820		4,559,290		—			5,580,910
Total assets	$	11,987,170	$	7,153,875	$	10,923,693	$	(11,845,368	)	$	18,219,370
Current liabilities	$	540,008	$	3,781,141	$	1,661,821	$	—		$	5,982,970
Intercompany payables	—		—		4,221,529		(4,221,529		)	—
Long-term debt	8,239,844		6,995		65,650		—			8,312,489
Other liabilities	938,716		87,230		595,839		—			1,621,785
Noncontrolling interest	—		—		33,524		—			33,524
Shareholders’ equity	2,268,602		3,278,509		4,345,330		(7,623,839		)	2,268,602
Total liabilities and shareholders’ equity	$	11,987,170	$	7,153,875	$	10,923,693	$	(11,845,368	)	$	18,219,370

Condensed consolidating statement of comprehensive income table

	Condensed Consolidated Statement of Comprehensive Income
	For the 13-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	9,101,114		$	6,329,665		$	(665,072	)	$	14,765,707
Cost of sales	—			7,381,785			5,277,282			(665,072		)	11,993,995
Gross profit	—			1,719,329			1,052,383			—			2,771,712
Operating expenses	232,621			1,035,676			1,051,520			—			2,319,817
Operating income (loss)	(232,621		)	683,653			863			—			451,895
Interest expense (income) (1)	63,491			(8,920		)	32,542			—			87,113
Other expense (income), net	3,772			(86		)	6,511			—			10,197
Earnings (losses) before income taxes	(299,884		)	692,659			(38,190		)	—			354,585
Income tax (benefit) provision	(73,057		)	170,960			(10,698		)	—			87,205
Equity in earnings of subsidiaries	494,207			—			128,030			(622,237		)	—
Net earnings	267,380			521,699			100,538			(622,237		)	267,380
Other comprehensive income (loss)	(73,564		)	—			(101,533		)	101,533			(73,564		)
Comprehensive income	$	193,816		$	521,699		$	(995	)	$	(520,704	)	$	193,816

⁽¹⁾  Interest expense (income) includes $8.9 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the second quarter ended December 29, 2018. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 13-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	8,754,169		$	6,169,239	$	(511,918	)	$	14,411,490
Cost of sales	—			7,102,287			5,121,735		(511,918		)	11,712,104
Gross profit	—			1,651,882			1,047,504		—			2,699,386
Operating expenses	203,892			993,440			973,502		—			2,170,834
Operating income (loss)	(203,892		)	658,442			74,002		—			528,552
Interest expense (income) (1)	108,768			(27,955		)	5,173		—			85,986
Other expense (income), net	(10,122		)	69			891		—			(9,162		)
Earnings (losses) before income taxes	(302,538		)	686,328			67,938		—			451,728
Income tax (benefit) provision	(120,315		)	262,822			25,108		—			167,615
Equity in earnings of subsidiaries	466,336			—			—		(466,336		)	—
Net earnings	284,113			423,506			42,830		(466,336		)	284,113
Other comprehensive income (loss)	26,551			—			19,254		(19,254		)	26,551
Comprehensive income	$	310,664		$	423,506		$	62,084	$	(485,590	)	$	310,664

⁽¹⁾  Interest expense (income) includes $28.0 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation for the second quarter ended December 30, 2017. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 26-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	18,580,920		$	12,563,823		$	(1,163,757	)	$	29,980,986
Cost of sales	—			15,041,886			10,427,360			(1,163,757		)	24,305,489
Gross profit	—			3,539,034			2,136,463			—			5,675,497
Operating expenses	452,902			2,088,027			2,054,533			—			4,595,462
Operating income (loss)	(452,902		)	1,451,007			81,930			—			1,080,035
Interest expense (income) (1)	104,905			(30,459		)	101,683			—			176,129
Other expense (income), net	10,372			(140		)	1,097			—			11,329
Earnings (losses) before income taxes	(568,179		)	1,481,606			(20,850		)	—			892,577
Income tax (benefit) provision	(166,645		)	367,404			(6,604		)	—			194,155
Equity in earnings of subsidiaries	1,099,956			—			222,371			(1,322,327		)	—
Net earnings	698,422			1,114,202			208,125			(1,322,327		)	698,422
Other comprehensive income (loss)	(115,138		)	—			(126,460		)	126,460			(115,138		)
Comprehensive income	$	583,284		$	1,114,202		$	81,665		$	(1,195,867	)	$	583,284

⁽¹⁾  Interest expense (income) includes $30.5 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

	Condensed Consolidated Statement of Comprehensive Income
	For the 26-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	17,775,826		$	12,289,551	$	(1,003,463	)	$	29,061,914
Cost of sales	—			14,377,711			10,194,612		(1,003,463		)	23,568,860
Gross profit	—			3,398,115			2,094,939		—			5,493,054
Operating expenses	406,848			1,999,593			1,938,696		—			4,345,137
Operating income (loss)	(406,848		)	1,398,522			156,243		—			1,147,917
Interest expense (income) (1)	207,764			(51,306		)	10,412		—			166,870
Other expense (income), net	(18,829		)	854			838		—			(17,137		)
Earnings (losses) before income taxes	(595,783		)	1,448,974			144,993		—			998,184
Income tax (benefit) provision	(216,273		)	512,383			50,321		—			346,431
Equity in earnings of subsidiaries	1,031,263			—			—		(1,031,263		)	—
Net earnings	651,753			936,591			94,672		(1,031,263		)	651,753
Other comprehensive income (loss)	146,709			—			140,583		(140,583		)	146,709
Comprehensive income	$	798,462		$	936,591		$	235,255	$	(1,171,846	)	$	798,462

⁽¹⁾  Interest expense (income) includes $51.3 million of intercompany interest income, net, for certain of the U.S. Broadline subsidiaries, which is intercompany interest expense for Sysco Corporation. There is an immaterial amount of intercompany interest expense related to Sysco Corporation for the Other Non-Guarantor Subsidiaries.

Condensed consolidating cash flows table

	Condensed Consolidated Cash Flows
	For the 26-Week Period Ended Dec. 29, 2018
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination (1)			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	485,875		$	100,079		$	331,836		$	—		$	917,790
Investing activities	432,730			(85,254		)	(66,591		)	(497,897		)	(217,012		)
Financing activities	(912,101		)	(2,819		)	(93,709		)	497,897			(510,732		)
Effect of exchange rates on cash	—			—			(8,904		)	—			(8,904		)
Net increase in cash, cash equivalents and restricted cash	6,504			12,006			162,632			—			181,142
Cash, cash equivalents and restricted cash at the beginning of period	29,144			111,843			574,857			—			715,844
Cash, cash equivalents and restricted cash at the end of period	$	35,648		$	123,849		$	737,489		$	—		$	896,986

⁽¹⁾  Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation.

	Condensed Consolidated Cash Flows
	For the 26-Week Period Ended Dec. 30, 2017
	Sysco			Certain U.S.  Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination (1)			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	252,770		$	195,650		$	484,784		$	—		$	933,204
Investing activities	(104,914		)	(112,513		)	(332,538		)	147,622			(402,343		)
Financing activities	(159,309		)	(3,890		)	893			(147,622		)	(309,928		)
Effect of exchange rates on cash	—			—			23,510			—			23,510
Net increase (decrease) in cash and cash equivalents	(11,453		)	79,247			176,649			—			244,443
Cash and cash equivalents at the beginning of period	111,576			18,788			739,138			—			869,502
Cash and cash equivalents at the end of period	$	100,123		$	98,035		$	915,787		$	—		$	1,113,945

⁽¹⁾  Represents primarily intercompany loans between the subsidiaries and the parent, Sysco Corporation.

XML

Basis of Presentation (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017	Jul. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 744,808	$ 552,325	$ 961,067
Restricted cash	152,178		152,878
Total cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows	$ 896,986	$ 715,844	$ 1,113,945	$ 869,502

XML

Changes in Accounting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other expense (income), net	$ 10,197	$ (9,162)	$ 11,329	$ (17,137)
ASU 2017-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other expense (income), net	$ 8,900	$ 3,700	$ 17,800	$ 7,500

XML

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Customer receivables included in accounts and notes receivable, net	$ 3,900,000		$ 3,900,000		$ 3,800,000
Revenue	14,765,707	$ 14,411,490	29,980,986	$ 29,061,914
Fresh and frozen meats
Disaggregation of Revenue [Line Items]
Revenue	2,867,803	2,763,045	5,782,110	5,615,073
Canned and dry products
Disaggregation of Revenue [Line Items]
Revenue	2,477,863	2,412,068	5,019,122	4,821,584
Frozen fruits, vegetables, bakery and other
Disaggregation of Revenue [Line Items]
Revenue	2,086,370	2,250,716	4,430,179	4,416,105
Dairy products
Disaggregation of Revenue [Line Items]
Revenue	1,495,903	1,489,868	3,055,460	2,989,871
Poultry
Disaggregation of Revenue [Line Items]
Revenue	1,419,795	1,487,597	2,934,374	3,038,647
Fresh produce
Disaggregation of Revenue [Line Items]
Revenue	1,307,065	1,223,636	2,567,038	2,478,557
Paper and disposables
Disaggregation of Revenue [Line Items]
Revenue	965,337	932,428	1,985,660	1,890,066
Seafood
Disaggregation of Revenue [Line Items]
Revenue	801,519	759,498	1,677,027	1,586,865
Beverage products
Disaggregation of Revenue [Line Items]
Revenue	589,165	474,552	1,102,279	968,826
Other
Disaggregation of Revenue [Line Items]
Revenue	754,887	618,082	1,427,737	1,256,320
U.S. Foodservice Operations
Disaggregation of Revenue [Line Items]
Revenue	10,087,105	9,681,225	20,486,516	19,530,167
U.S. Foodservice Operations | Fresh and frozen meats
Disaggregation of Revenue [Line Items]
Revenue	2,084,648	1,975,717	4,206,167	4,006,857
U.S. Foodservice Operations | Canned and dry products
Disaggregation of Revenue [Line Items]
Revenue	1,799,535	1,742,913	3,651,702	3,481,591
U.S. Foodservice Operations | Frozen fruits, vegetables, bakery and other
Disaggregation of Revenue [Line Items]
Revenue	1,417,063	1,316,229	2,840,449	2,582,958
U.S. Foodservice Operations | Dairy products
Disaggregation of Revenue [Line Items]
Revenue	1,041,436	1,019,134	2,127,840	2,036,796
U.S. Foodservice Operations | Poultry
Disaggregation of Revenue [Line Items]
Revenue	1,001,579	997,225	2,028,515	2,043,911
U.S. Foodservice Operations | Fresh produce
Disaggregation of Revenue [Line Items]
Revenue	927,997	902,943	1,865,577	1,826,735
U.S. Foodservice Operations | Paper and disposables
Disaggregation of Revenue [Line Items]
Revenue	681,890	637,520	1,392,649	1,293,829
U.S. Foodservice Operations | Seafood
Disaggregation of Revenue [Line Items]
Revenue	581,655	555,996	1,243,342	1,176,317
U.S. Foodservice Operations | Beverage products
Disaggregation of Revenue [Line Items]
Revenue	271,182	266,102	561,752	541,232
U.S. Foodservice Operations | Other
Disaggregation of Revenue [Line Items]
Revenue	280,120	267,446	568,523	539,941
International Foodservice Operations
Disaggregation of Revenue [Line Items]
Revenue	2,890,598	2,869,043	5,811,548	5,772,298
International Foodservice Operations | Fresh and frozen meats
Disaggregation of Revenue [Line Items]
Revenue	409,086	411,726	829,542	846,365
International Foodservice Operations | Canned and dry products
Disaggregation of Revenue [Line Items]
Revenue	611,609	579,881	1,223,079	1,173,234
International Foodservice Operations | Frozen fruits, vegetables, bakery and other
Disaggregation of Revenue [Line Items]
Revenue	354,178	645,354	982,735	1,271,422
International Foodservice Operations | Dairy products
Disaggregation of Revenue [Line Items]
Revenue	306,364	308,362	624,711	624,016
International Foodservice Operations | Poultry
Disaggregation of Revenue [Line Items]
Revenue	209,542	212,552	425,124	420,017
International Foodservice Operations | Fresh produce
Disaggregation of Revenue [Line Items]
Revenue	322,020	256,746	579,564	522,329
International Foodservice Operations | Paper and disposables
Disaggregation of Revenue [Line Items]
Revenue	87,376	98,258	191,915	202,368
International Foodservice Operations | Seafood
Disaggregation of Revenue [Line Items]
Revenue	196,413	182,393	384,850	365,664
International Foodservice Operations | Beverage products
Disaggregation of Revenue [Line Items]
Revenue	161,317	48,819	213,388	99,878
International Foodservice Operations | Other
Disaggregation of Revenue [Line Items]
Revenue	232,693	124,952	356,640	247,005
SYGMA
Disaggregation of Revenue [Line Items]
Revenue	1,536,607	1,633,145	3,158,064	3,273,816
SYGMA | Fresh and frozen meats
Disaggregation of Revenue [Line Items]
Revenue	374,069	375,602	746,401	761,851
SYGMA | Canned and dry products
Disaggregation of Revenue [Line Items]
Revenue	66,719	89,274	144,341	166,759
SYGMA | Frozen fruits, vegetables, bakery and other
Disaggregation of Revenue [Line Items]
Revenue	315,129	289,133	606,995	561,725
SYGMA | Dairy products
Disaggregation of Revenue [Line Items]
Revenue	148,103	162,372	302,909	329,059
SYGMA | Poultry
Disaggregation of Revenue [Line Items]
Revenue	208,674	277,820	480,735	574,719
SYGMA | Fresh produce
Disaggregation of Revenue [Line Items]
Revenue	57,048	63,947	121,897	129,493
SYGMA | Paper and disposables
Disaggregation of Revenue [Line Items]
Revenue	181,896	183,205	370,512	365,034
SYGMA | Seafood
Disaggregation of Revenue [Line Items]
Revenue	23,451	21,109	48,835	44,884
SYGMA | Beverage products
Disaggregation of Revenue [Line Items]
Revenue	136,244	140,190	283,538	285,264
SYGMA | Other
Disaggregation of Revenue [Line Items]
Revenue	25,274	30,493	51,901	55,028
Other
Disaggregation of Revenue [Line Items]
Revenue	251,397	228,077	524,858	485,633
Other | Fresh and frozen meats
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Canned and dry products
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Frozen fruits, vegetables, bakery and other
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Dairy products
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Poultry
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Fresh produce
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Paper and disposables
Disaggregation of Revenue [Line Items]
Revenue	14,175	13,445	30,584	28,835
Other | Seafood
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Other | Beverage products
Disaggregation of Revenue [Line Items]
Revenue	20,422	19,441	43,601	42,452
Other | Other
Disaggregation of Revenue [Line Items]
Revenue	$ 216,800	$ 195,191	$ 450,673	$ 414,346

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Acquisitions (Details) $ in Millions	6 Months Ended
	Dec. 29, 2018 USD ($)
Business Combinations [Abstract]
Contingent consideration maximum number of years (in years)	3 years
Potential cash payout for contingent consideration arrangements	$ 14.1
Amount of recorded earnout liabilities	$ 9.4

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of total debt	$ 8,400,000
Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of total debt	8,800,000	$ 8,400,000	$ 9,200,000
Carrying value of total debt	8,800,000	8,300,000	8,900,000
Recurring Fair Value Measurements
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	298,661	199,404	284,262
Other assets	152,178	163,519	152,877
Total assets at fair value	450,839	362,923	437,139
Recurring Fair Value Measurements | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	298,461	169,214	241,071
Other assets	152,178	163,519	145,734
Total assets at fair value	450,639	332,733	386,805
Recurring Fair Value Measurements | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	200	30,190	43,191
Other assets	0	0	7,143
Total assets at fair value	200	30,190	50,334
Recurring Fair Value Measurements | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0	0
Other assets	0	0	0
Total assets at fair value	$ 0	$ 0	$ 0

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Derivative Financial Instruments - Hedging of Debt Portfolio (Details) - 6 months ended Dec. 29, 2018 £ in Millions, kr in Millions, gal in Millions, $ in Millions, $ in Millions	GBP (£) gal	EUR (€)	CAD ($)	USD ($)	SEK (kr)
Interest rate swap, April 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value				$ 500
Interest rate swap, October 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value				750
Interest rate swap, July 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value				500
Interest rate swaps, June 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | €		€ 500,000,000
Interest rate swap, March 2025
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value				500
Hedging of foreign currency risk, SEK, January 2019 to April 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | kr					kr 261
Hedging of foreign currency risk, USD, Maturing January 2019 to October 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | £	£ 20
Hedging of foreign currency risk, USD, Maturing January 2019 to December 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value				$ 1
Hedging of foreign currency risk, CAD, June 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value			$ 300
Hedging of foreign currency risk, GBP, July 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | £	234
Hedging of foreign currency risk, GBP, August 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | £	£ 466
Hedging of foreign currency risk, Euro, June 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Value | €		€ 500,000,000
Fuel swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount (in gallons) | gal	52

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Derivative Financial Instruments - Additional Information (Details) - Hedging Instrument - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017
Fair Value Hedging | Interest rate swap agreements | Other current assets
Derivative [Line Items]
Fair value of derivative assets	$ 0	$ 0	$ 118
Fair Value Hedging | Interest rate swap agreements | Other assets
Derivative [Line Items]
Fair value of derivative assets	5,207	0	0
Fair Value Hedging | Interest rate swap agreements | Other current liabilities
Derivative [Line Items]
Fair value of derivative liabilities	2,180	6,820	0
Fair Value Hedging | Interest rate swap agreements | Other long-term liabilities
Derivative [Line Items]
Fair value of derivative liabilities	31,488	49,734	33,003
Cash Flow Hedging | Fuel swaps | Other current assets
Derivative [Line Items]
Fair value of derivative assets	0	15,316	13,678
Cash Flow Hedging | Fuel swaps | Other current liabilities
Derivative [Line Items]
Fair value of derivative liabilities	19,548	0	0
Cash Flow Hedging | Fuel swaps | Other long-term liabilities
Derivative [Line Items]
Fair value of derivative liabilities	742	0	0
Cash Flow Hedging | Foreign currency forwards | Other current assets
Derivative [Line Items]
Fair value of derivative assets	246	693	555
Cash Flow Hedging | Foreign currency forwards | Other current liabilities
Derivative [Line Items]
Fair value of derivative liabilities	226	71	351
Cash Flow Hedging | Cross-currency swaps | Other current assets
Derivative [Line Items]
Fair value of derivative assets	0	4,284	0
Cash Flow Hedging | Cross-currency swaps | Other assets
Derivative [Line Items]
Fair value of derivative assets	13,773	3,454	0
Cash Flow Hedging | Cross-currency swaps | Other long-term liabilities
Derivative [Line Items]
Fair value of derivative liabilities	0	14,201	21,310
Net Investment Hedging | Foreign currency swaps | Other assets
Derivative [Line Items]
Fair value of derivative assets	23,349	10,709	7,822
Net Investment Hedging | Foreign currency swaps | Other long-term liabilities
Derivative [Line Items]
Fair value of derivative liabilities	$ 20,361	$ 39,690	$ 48,087

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Derivative Financial Instruments - Location of Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Derivative [Line Items]
Cost of sales	$ 11,993,995	$ 11,712,104	$ 24,305,489	$ 23,568,860
Operating expenses	2,319,817	2,170,834	4,595,462	4,345,137
Interest expense	87,113	85,986	176,129	166,870
Unrealized gain (loss) on hedged item in fair value hedge, interest expense	15,700	17,100	30,800	34,200
Unrealized gain (loss) on hedged item in fair value hedge, change in fair value of debt	31,300	9,600	24,700	11,400
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Cost of Goods Sold
Derivative [Line Items]
Gain (loss) on fair value hedging relationship, hedged items	0	0	0	0
Gain (loss) on fair value hedging relationship, designated as hedging instruments	0	0	0	0
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Other expense (income)
Derivative [Line Items]
Gain (loss) on fair value hedging relationship, hedged items	0	0	0	0
Gain (loss) on fair value hedging relationship, designated as hedging instruments	0	0	0	0
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Interest expense
Derivative [Line Items]
Gain (loss) on fair value hedging relationship, hedged items	(46,919)	(7,515)	(55,506)	(22,745)
Gain (loss) on fair value hedging relationship, designated as hedging instruments	$ 31,550	$ (9,942)	$ 20,691	$ (10,989)

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Derivative Financial Instruments - Cash Flow Hedges (Details) - Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Cash Flow Hedging
Derivative [Line Items]
Derivatives in cash flow hedging relationships:	$ (11,380)		$ (15,157)
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		$ 14,836		$ 4,244
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	5,048	2,339	9,884	2,492
Cash Flow Hedging | Fuel swaps
Derivative [Line Items]
Derivatives in cash flow hedging relationships:	(36,843)		(35,817)
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		8,505		19,706
Cash Flow Hedging | Fuel swaps | Operating expense
Derivative [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	5,040	1,814	9,393	1,658
Cash Flow Hedging | Foreign currency swaps
Derivative [Line Items]
Derivatives in cash flow hedging relationships:	25,463		20,660
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		6,331		(15,462)
Cash Flow Hedging | Foreign currency swaps | Cost of goods sold
Derivative [Line Items]
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	8	525	491	834
Net Investment Hedging
Derivative [Line Items]
Derivatives in net investment hedging relationships:	35,293		46,471
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		(21,513)		(56,557)
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	0	0	0	0
Net Investment Hedging | Foreign currency swaps
Derivative [Line Items]
Derivatives in net investment hedging relationships:	27,143		34,371
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		(12,063)		(27,957)
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	0	0	0	0
Net Investment Hedging | Foreign denominated debt
Derivative [Line Items]
Derivatives in net investment hedging relationships:	8,150		12,100
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		(9,450)		(28,600)
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	$ 0	$ 0	$ 0	$ 0

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Derivative Financial Instruments - Location of Hedged Liabilities (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017
Current maturities of long-term debt
Derivative [Line Items]
Carrying Amount of Hedged Assets (Liabilities)	$ (499,867)
Carrying Amount of Hedged Assets (Liabilities)		$ (499,610)	$ (499,960)
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)	2,152	5,097
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)			0
Long-term debt
Derivative [Line Items]
Carrying Amount of Hedged Assets (Liabilities)	(2,310,689)
Carrying Amount of Hedged Assets (Liabilities)		(1,743,732)	(1,747,194)
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)	$ 25,776	$ 47,555
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)			$ 18,282

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Debt (Details)	6 Months Ended
	Dec. 29, 2018 USD ($)
Debt [Line Items]
Maximum board-authorized aggregate commercial paper limit	$ 2,000,000,000
Carrying value of total debt	8,400,000,000
Aggregate outstanding commercial paper and short-term debt minimum amount outstanding during period	0
Maximum amount outstanding	669,000,000
Commercial Paper
Debt [Line Items]
Carrying value of total debt	$ 109,900,000

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Debt - Senior Notes Offering (Details) - Senior Notes - Senior Notes, 3.65% in Canada	Sep. 25, 2018 CAD ($)
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000
Coupon Rate	3.65%
Pricing (percentage of par)	99.962%
Period prior to maturity for early redemption	2 months
Percent of principal due upon early repayment	100.00%
Percent of principal due after applicable date	100.00%

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Numerator:
Net earnings	$ 267,380	$ 284,113	$ 698,422	$ 651,753
Denominator:
Weighted-average basic shares outstanding (in shares)	517,871,328	521,284,182	519,363,973	524,286,931
Dilutive effect of share-based awards (in shares)	6,729,182	5,965,405	7,453,528	5,869,579
Weighted-average diluted shares outstanding (in shares)	524,600,510	527,249,587	526,817,501	530,156,510
Basic earnings per share (in dollars per share)	$ 0.52	$ 0.55	$ 1.34	$ 1.24
Diluted earnings per share (in dollars per share)	0.51	0.54	1.33	1.23
Dividends declared per common share (in dollars per share)	$ 0.39	$ 0.36	$ 0.75	$ 0.69
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded (in shares)	2,565,000	2,749,000	3,630,000	4,594,000

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Other Comprehensive Income - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Comprehensive income	$ 193,816	$ 310,664	$ 583,284	$ 798,462
Before Tax Amount
Total other comprehensive income (loss)	(63,908)	29,698	(104,613)	145,102
Tax
Total other comprehensive income (loss)	9,656	3,147	10,525	(1,607)
Net of Tax Amount
Foreign currency translation adjustment			(32,511)
Total other comprehensive (loss) income	(73,564)	26,551	(115,138)	146,709
Pension and other postretirement benefit plans:
Net of Tax Amount
Foreign currency translation adjustment			(32,511)
Pension and other postretirement benefit plans: | Other expense, net
Before Tax Amount
Reclassification adjustments, before tax	10,839	11,170	21,678	22,340
Tax
Amortization of prior service cost	2,710	2,792	5,420	7,081
Net of Tax Amount
Amortization of prior service cost	8,129	8,378	16,258	15,259
Amortization of prior service cost
Net of Tax Amount
Amortization of prior service cost			3,200	3,291
Amortization of prior service cost | Other expense, net
Before Tax Amount
Reclassification adjustments, before tax	2,133	2,409	4,266	4,818
Tax
Amortization of prior service cost	533	602	1,066	1,527
Net of Tax Amount
Amortization of prior service cost	1,600	1,807	3,200	3,291
Amortization of actuarial loss (gain), net
Before Tax Amount
Other comprehensive income before reclassifications, before tax			(36,891)
Tax
Foreign currency translation adjustment			(4,380)
Net of Tax Amount
Foreign currency translation adjustment			(32,511)
Amortization of prior service cost			13,058	11,968
Amortization of actuarial loss (gain), net | Other expense, net
Before Tax Amount
Reclassification adjustments, before tax	8,706	8,761	17,412	17,522
Tax
Amortization of prior service cost	2,177	2,190	4,354	5,554
Net of Tax Amount
Amortization of prior service cost	6,529	6,571	13,058	11,968
Foreign currency translation:
Before Tax Amount
Other comprehensive income before reclassifications, before tax	(101,533)	19,254	(126,460)	140,584
Tax
Foreign currency translation adjustment	0	0	0	0
Net of Tax Amount
Foreign currency translation adjustment	(101,533)	19,254	(126,460)	140,584
Hedging, net of tax
Before Tax Amount
Other comprehensive income before reclassifications, before tax	23,913	(3,599)	31,314	(23,568)
Tax
Foreign currency translation adjustment	6,228	(363)	8,049	(10,509)
Net of Tax Amount
Foreign currency translation adjustment	17,685	(3,236)	23,265	(13,059)
Amortization of cash flow hedges
Net of Tax Amount
Foreign currency translation adjustment			(11,792)
Amortization of prior service cost			4,310
Amortization of cash flow hedges | Operating expenses
Before Tax Amount
Other comprehensive income before reclassifications, before tax	(11,380)		(15,157)
Tax
Foreign currency translation adjustment	(2,596)		(3,365)
Net of Tax Amount
Foreign currency translation adjustment	(8,784)		(11,792)
Amortization of cash flow hedges | Interest expense
Before Tax Amount
Reclassification adjustments, before tax	2,873		5,746
Tax
Amortization of prior service cost	718		1,436
Net of Tax Amount
Amortization of prior service cost	2,155		4,310
Amortization of cash flow hedges
Net of Tax Amount
Foreign currency translation adjustment				3,118
Amortization of prior service cost				3,925
Amortization of cash flow hedges | Operating expenses
Before Tax Amount
Other comprehensive income before reclassifications, before tax		2,944		6,350
Tax
Foreign currency translation adjustment		2,027		3,232
Net of Tax Amount
Foreign currency translation adjustment		917		3,118
Amortization of cash flow hedges | Interest expense
Before Tax Amount
Reclassification adjustments, before tax		2,873		5,746
Tax
Amortization of prior service cost		718		1,821
Net of Tax Amount
Amortization of prior service cost		2,155		3,925
Change in net investment hedge
Before Tax Amount
Other comprehensive income before reclassifications, before tax	35,293	(6,543)	46,471	(29,918)
Tax
Foreign currency translation adjustment	8,824	(2,390)	11,414	(13,741)
Net of Tax Amount
Foreign currency translation adjustment	$ 26,469	$ (4,153)	$ 35,057	$ (16,177)

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Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, shareholders' equity			$ 2,506,957
Change in cash flow hedges			(32,511)
Ending balance, shareholders' equity	$ 2,167,636	$ 2,268,602	2,167,636	$ 2,268,602
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, shareholders' equity			(1,409,269)	(1,262,737)
Ending balance, shareholders' equity	(1,524,407)	(1,116,028)	(1,524,407)	(1,116,028)
Pension and Other Postretirement Benefit Plans, net of tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, shareholders' equity			(1,095,059)	(974,232)
Change in cash flow hedges			(32,511)
Ending balance, shareholders' equity	(1,111,312)	(958,973)	(1,111,312)	(958,973)
Amortization of prior service cost
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification adjustment, net of tax			3,200	3,291
Amortization of unrecognized net actuarial losses
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Change in cash flow hedges			(32,511)
Reclassification adjustment, net of tax			13,058	11,968
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, shareholders' equity			(171,043)	(148,056)
Change in cash flow hedges	(101,533)	19,254	(126,460)	140,584
Ending balance, shareholders' equity	(297,503)	(7,472)	(297,503)	(7,472)
Hedging, net of tax
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, shareholders' equity			(143,167)	(140,449)
Change in cash flow hedges	17,685	(3,236)	23,265	(13,059)
Ending balance, shareholders' equity	(115,592)	(149,583)	(115,592)	(149,583)
Amortization of cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Change in cash flow hedges			(11,792)
Reclassification adjustment, net of tax			4,310
Amortization of cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Change in cash flow hedges				3,118
Reclassification adjustment, net of tax				3,925
Change in net investment hedge
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Change in cash flow hedges	$ 26,469	$ (4,153)	$ 35,057	$ (16,177)

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Share-Based Compensation - Stock Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	2,609,755
Options granted, weighted average grant date fair value (in dollars per share)	$ 11.70
Share-based compensation expense	$ 54,199	$ 51,612
Total unrecognized compensation cost related to share-based compensation arrangements	$ 129,900
Weighted average period of time for unrecognized compensation cost to be recognized (in years)	1 year 10 months 28 days
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options granted (in shares)	574,768
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share)	$ 74.86
Employees' Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other than options granted (in shares)	486,452
Equity instruments other than options granted, weighted average grant date fair value per share (in dollars per share)	$ 10.64

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate	24.59%	37.11%	21.75%	34.71%
Effective income tax expense (benefit) attributable to the pension plan	$ (7.6)
Effective income tax expense (benefit) attributable to provisions of the Tax Act	11.9
Excess tax benefits of equity-based compensation and tax law changes in foreign jurisdictions		$ 14.8
Impact of changes in tax law in foreign jurisdictions		$ 8.1
Tax act, transition taxes	15.1
Tax act, deferred tax assets	3.2
Unrecognized tax benefits	6.6		$ 6.6
Liability recorded for interest and penalties related to unrecognized tax benefits	$ 4.4		$ 4.4

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Business Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 29, 2018 USD ($) segment	Dec. 30, 2017 USD ($)
Segment Reporting [Abstract]
Number of reporting segments | segment			3
Segment Reporting Information [Line Items]
Sales	$ 14,765,707	$ 14,411,490	$ 29,980,986	$ 29,061,914
Operating income:	451,895	528,552	1,080,035	1,147,917
Interest expense	87,113	85,986	176,129	166,870
Other expense (income), net	10,197	(9,162)	11,329	(17,137)
Earnings before income taxes	354,585	451,728	892,577	998,184
U.S. Foodservice Operations
Segment Reporting Information [Line Items]
Sales	10,087,105	9,681,225	20,486,516	19,530,167
International Foodservice Operations
Segment Reporting Information [Line Items]
Sales	2,890,598	2,869,043	5,811,548	5,772,298
SYGMA
Segment Reporting Information [Line Items]
Sales	1,536,607	1,633,145	3,158,064	3,273,816
Other
Segment Reporting Information [Line Items]
Sales	251,397	228,077	524,858	485,633
Operating Segments
Segment Reporting Information [Line Items]
Operating income:	731,392	769,709	1,626,688	1,640,365
Operating Segments | U.S. Foodservice Operations
Segment Reporting Information [Line Items]
Operating income:	737,477	707,581	1,553,235	1,489,656
Operating Segments | International Foodservice Operations
Segment Reporting Information [Line Items]
Operating income:	(14,917)	52,594	51,855	129,398
Operating Segments | SYGMA
Segment Reporting Information [Line Items]
Operating income:	3,114	3,353	5,545	8,198
Operating Segments | Other
Segment Reporting Information [Line Items]
Operating income:	5,718	6,181	16,053	13,113
Corporate
Segment Reporting Information [Line Items]
Operating income:	$ (279,497)	$ (241,157)	$ (546,653)	$ (492,448)

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Supplemental Guarantor Information - Subsidiary Guarantees - Narrative (Details) $ in Billions	6 Months Ended
	Dec. 29, 2018 USD ($)
Guarantees [Abstract]
Carrying value of total debt	$ 8.4
Percentage ownership of subsidiary guarantors by parent	100.00%

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Supplemental Guarantor Information - Subsidiary Guarantees - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 29, 2018	Jun. 30, 2018	Dec. 30, 2017
Supplemental Guarantor Information [Line Items]
Current assets	$ 8,437,783	$ 8,003,453	$ 8,272,168
Intercompany receivables	0	0	0
Investment in subsidiaries	0	0	0
Plant and equipment, net	4,375,550	4,521,660	4,366,292
Other assets	5,380,843	5,545,291	5,580,910
Total assets	18,194,176	18,070,404	18,219,370
Current liabilities	6,750,170	6,588,746	5,982,970
Intercompany payables	0	0	0
Long-term debt	8,019,846	7,540,765	8,312,489
Other liabilities	1,221,167	1,396,287	1,621,785
Noncontrolling interest	35,357	37,649	33,524
Shareholders’ equity	2,167,636	2,506,957	2,268,602
Total liabilities and shareholders' equity	18,194,176	18,070,404	18,219,370
Reportable Legal Entities | Sysco
Supplemental Guarantor Information [Line Items]
Current assets	138,324	157,994	189,553
Intercompany receivables	7,062,518	6,621,438	2,945,188
Investment in subsidiaries	5,864,415	4,896,004	7,623,839
Plant and equipment, net	254,187	278,855	262,790
Other assets	745,923	788,473	965,800
Total assets	14,065,367	12,742,764	11,987,170
Current liabilities	1,211,568	1,233,541	540,008
Intercompany payables	2,514,212	882,487	0
Long-term debt	7,593,478	7,470,334	8,239,844
Other liabilities	578,475	649,445	938,716
Noncontrolling interest	0	0	0
Shareholders’ equity	2,167,634	2,506,957	2,268,602
Total liabilities and shareholders' equity	14,065,367	12,742,764	11,987,170
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries
Supplemental Guarantor Information [Line Items]
Current assets	4,087,103	4,018,444	3,803,349
Intercompany receivables	110,889	270,748	1,276,341
Investment in subsidiaries	0	0	0
Plant and equipment, net	2,122,911	2,181,576	2,018,365
Other assets	684,276	611,004	55,820
Total assets	7,005,179	7,081,772	7,153,875
Current liabilities	928,505	886,305	3,781,141
Intercompany payables	2,535,827	3,798,134	0
Long-term debt	9,605	8,285	6,995
Other liabilities	536,378	508,387	87,230
Noncontrolling interest	0	0	0
Shareholders’ equity	2,994,864	1,880,661	3,278,509
Total liabilities and shareholders' equity	7,005,179	7,081,772	7,153,875
Reportable Legal Entities | Other Non-Guarantor Subsidiaries
Supplemental Guarantor Information [Line Items]
Current assets	4,212,356	3,827,015	4,279,266
Intercompany receivables	2,433,329	5,793,352	0
Investment in subsidiaries	1,210,579	983,625	0
Plant and equipment, net	1,998,452	2,061,229	2,085,137
Other assets	4,465,022	4,593,537	4,559,290
Total assets	14,319,738	17,258,758	10,923,693
Current liabilities	4,610,097	4,468,900	1,661,821
Intercompany payables	4,556,697	8,004,917	4,221,529
Long-term debt	416,763	62,146	65,650
Other liabilities	620,692	686,178	595,839
Noncontrolling interest	35,357	37,649	33,524
Shareholders’ equity	4,080,132	3,998,968	4,345,330
Total liabilities and shareholders' equity	14,319,738	17,258,758	10,923,693
Eliminations
Supplemental Guarantor Information [Line Items]
Current assets	0	0	0
Intercompany receivables	(9,606,736)	(12,685,538)	(4,221,529)
Investment in subsidiaries	(7,074,994)	(5,879,629)	(7,623,839)
Plant and equipment, net	0	0	0
Other assets	(514,378)	(447,723)	0
Total assets	(17,196,108)	(19,012,890)	(11,845,368)
Current liabilities	0	0	0
Intercompany payables	(9,606,736)	(12,685,538)	(4,221,529)
Long-term debt	0	0	0
Other liabilities	(514,378)	(447,723)	0
Noncontrolling interest	0	0	0
Shareholders’ equity	(7,074,994)	(5,879,629)	(7,623,839)
Total liabilities and shareholders' equity	$ (17,196,108)	$ (19,012,890)	$ (11,845,368)

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Supplemental Guarantor Information - Subsidiary Guarantees - Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017	Dec. 29, 2018	Dec. 30, 2017
Supplemental Guarantor Information [Line Items]
Sales	$ 14,765,707	$ 14,411,490	$ 29,980,986	$ 29,061,914
Cost of sales	11,993,995	11,712,104	24,305,489	23,568,860
Gross profit	2,771,712	2,699,386	5,675,497	5,493,054
Operating expenses	2,319,817	2,170,834	4,595,462	4,345,137
Operating income	451,895	528,552	1,080,035	1,147,917
Interest expense (income)	87,113	85,986	176,129	166,870
Other expense (income), net	10,197	(9,162)	11,329	(17,137)
Earnings before income taxes	354,585	451,728	892,577	998,184
Income tax (benefit) provision	87,205	167,615	194,155	346,431
Equity in earnings of subsidiaries	0	0	0	0
Net earnings	267,380	284,113	698,422	651,753
Other comprehensive income (loss)	(73,564)	26,551	(115,138)	146,709
Comprehensive income	193,816	310,664	583,284	798,462
Reportable Legal Entities | Sysco
Supplemental Guarantor Information [Line Items]
Sales	0	0	0	0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Operating expenses	232,621	203,892	452,902	406,848
Operating income	(232,621)	(203,892)	(452,902)	(406,848)
Interest expense (income)	63,491	108,768	104,905	207,764
Other expense (income), net	3,772	(10,122)	10,372	(18,829)
Earnings before income taxes	(299,884)	(302,538)	(568,179)	(595,783)
Income tax (benefit) provision	(73,057)	(120,315)	(166,645)	(216,273)
Equity in earnings of subsidiaries	494,207	466,336	1,099,956	1,031,263
Net earnings	267,380	284,113	698,422	651,753
Other comprehensive income (loss)	(73,564)	26,551	(115,138)	146,709
Comprehensive income	193,816	310,664	583,284	798,462
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries
Supplemental Guarantor Information [Line Items]
Sales	9,101,114	8,754,169	18,580,920	17,775,826
Cost of sales	7,381,785	7,102,287	15,041,886	14,377,711
Gross profit	1,719,329	1,651,882	3,539,034	3,398,115
Operating expenses	1,035,676	993,440	2,088,027	1,999,593
Operating income	683,653	658,442	1,451,007	1,398,522
Interest expense (income)	(8,920)	(27,955)	(30,459)	(51,306)
Other expense (income), net	(86)	69	(140)	854
Earnings before income taxes	692,659	686,328	1,481,606	1,448,974
Income tax (benefit) provision	170,960	262,822	367,404	512,383
Equity in earnings of subsidiaries	0	0	0	0
Net earnings	521,699	423,506	1,114,202	936,591
Other comprehensive income (loss)	0	0	0	0
Comprehensive income	521,699	423,506	1,114,202	936,591
Reportable Legal Entities | Other Non-Guarantor Subsidiaries
Supplemental Guarantor Information [Line Items]
Sales	6,329,665	6,169,239	12,563,823	12,289,551
Cost of sales	5,277,282	5,121,735	10,427,360	10,194,612
Gross profit	1,052,383	1,047,504	2,136,463	2,094,939
Operating expenses	1,051,520	973,502	2,054,533	1,938,696
Operating income	863	74,002	81,930	156,243
Interest expense (income)	32,542	5,173	101,683	10,412
Other expense (income), net	6,511	891	1,097	838
Earnings before income taxes	(38,190)	67,938	(20,850)	144,993
Income tax (benefit) provision	(10,698)	25,108	(6,604)	50,321
Equity in earnings of subsidiaries	128,030	0	222,371	0
Net earnings	100,538	42,830	208,125	94,672
Other comprehensive income (loss)	(101,533)	19,254	(126,460)	140,583
Comprehensive income	(995)	62,084	81,665	235,255
Eliminations
Supplemental Guarantor Information [Line Items]
Sales	(665,072)	(511,918)	(1,163,757)	(1,003,463)
Cost of sales	(665,072)	(511,918)	(1,163,757)	(1,003,463)
Gross profit	0	0	0	0
Operating expenses	0	0	0	0
Operating income	0	0	0	0
Interest expense (income)	0	0	0	0
Other expense (income), net	0	0	0	0
Earnings before income taxes	0	0	0	0
Income tax (benefit) provision	0	0	0	0
Equity in earnings of subsidiaries	(622,237)	(466,336)	(1,322,327)	(1,031,263)
Net earnings	(622,237)	(466,336)	(1,322,327)	(1,031,263)
Other comprehensive income (loss)	101,533	(19,254)	126,460	(140,583)
Comprehensive income	(520,704)	(485,590)	(1,195,867)	(1,171,846)
Eliminations | Other Non-Guarantor Subsidiaries
Supplemental Guarantor Information [Line Items]
Interest expense (income)	$ 0	$ 0	$ 0	$ 0

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Supplemental Guarantor Information - Subsidiary Guarantees - Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 29, 2018	Dec. 30, 2017
Cash flows provided by (used for):
Operating activities	$ 917,790	$ 933,204
Investing activities	(217,012)	(402,343)
Financing activities	(510,732)	(309,928)
Effect of exchange rates on cash, cash equivalents and restricted cash	(8,904)	23,510
Net increase in cash, cash equivalents and restricted cash	181,142	244,443
Cash, cash equivalents and restricted cash at beginning of period	715,844	869,502
Cash, cash equivalents and restricted cash at end of period	896,986	1,113,945
Reportable Legal Entities | Sysco
Cash flows provided by (used for):
Operating activities	485,875	252,770
Investing activities	432,730	(104,914)
Financing activities	(912,101)	(159,309)
Effect of exchange rates on cash, cash equivalents and restricted cash	0	0
Net increase in cash, cash equivalents and restricted cash	6,504	(11,453)
Cash, cash equivalents and restricted cash at beginning of period	29,144	111,576
Cash, cash equivalents and restricted cash at end of period	35,648	100,123
Reportable Legal Entities | Certain U.S. Broadline Subsidiaries
Cash flows provided by (used for):
Operating activities	100,079	195,650
Investing activities	(85,254)	(112,513)
Financing activities	(2,819)	(3,890)
Effect of exchange rates on cash, cash equivalents and restricted cash	0	0
Net increase in cash, cash equivalents and restricted cash	12,006	79,247
Cash, cash equivalents and restricted cash at beginning of period	111,843	18,788
Cash, cash equivalents and restricted cash at end of period	123,849	98,035
Reportable Legal Entities | Other Non-Guarantor Subsidiaries
Cash flows provided by (used for):
Operating activities	331,836	484,784
Investing activities	(66,591)	(332,538)
Financing activities	(93,709)	893
Effect of exchange rates on cash, cash equivalents and restricted cash	(8,904)	23,510
Net increase in cash, cash equivalents and restricted cash	162,632	176,649
Cash, cash equivalents and restricted cash at beginning of period	574,857	739,138
Cash, cash equivalents and restricted cash at end of period	737,489	915,787
Eliminations
Cash flows provided by (used for):
Operating activities	0	0
Investing activities	(497,897)	147,622
Financing activities	497,897	(147,622)
Effect of exchange rates on cash, cash equivalents and restricted cash	0	0
Net increase in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash at beginning of period	0	0
Cash, cash equivalents and restricted cash at end of period	$ 0	$ 0