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COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jun. 29, 2019

Defined benefit plans funded status table

The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP.



	U.S. Pension Benefits						International Pension Benefits
	Jun. 29, 2019			Jun. 30, 2018			Jun. 29, 2019			Jun. 30, 2018
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	4,043,011		$	4,224,231		$	399,000		$	420,735
Service cost	13,977			14,514			2,790			3,219
Interest cost	172,213			173,827			10,637			10,667
Amendments	—			—			3,050			(4,624		)
Plan Combinations	—			—			173			—
Actuarial (gain) loss, net	439,082			(89,253		)	20,783			(21,162		)
Total disbursements	(130,635		)	(280,308		)	(14,398		)	(13,817		)
Exchange rate changes	—			—			(15,338		)	3,982
Benefit obligation at end of year	4,537,648			4,043,011			406,697			399,000
Change in plan assets:
Fair value of plan assets at beginning of year	3,666,408			3,341,662			258,028			259,372
Actual return on plan assets	418,789			196,051			23,765			897
Employer contribution	29,592			409,003			7,612			7,960
Total disbursements	(130,635		)	(280,308		)	(14,398		)	(13,817		)
Exchange rate changes	—			—			(10,261		)	3,616
Fair value of plan assets at end of year	3,984,154			3,666,408			264,746			258,028
Funded status at end of year	$	(553,494	)	$	(376,603	)	$	(141,951	)	$	(140,972	)

Defined benefit plans amounts recognized in balance sheet table

The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows:



	U.S. Pension Benefits						International Pension Benefits
	Jun. 29, 2019			Jun. 30, 2018			Jun. 29, 2019			Jun. 30, 2018
	(In thousands)
Noncurrent assets (Other assets)	$	—		$	63,945		$	—		$	—
Current accrued benefit liability (Accrued expenses)	(31,652		)	(31,313		)	(1,285		)	(1,280		)
Noncurrent accrued benefit liability (Other long-term liabilities)	(521,842		)	(409,235		)	(140,666		)	(139,692		)
Net amount recognized	$	(553,494	)	$	(376,603	)	$	(141,951	)	$	(140,972	)

Defined benefit plans amounts recognized in accumulated other comprehensive loss (income) table

Accumulated other comprehensive loss (income) as of June 29, 2019 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:



	U.S. Pension Benefits		International Pension Benefits			Total
	(In thousands)
Prior service cost	$	10,790	$	(588	)	$	10,202
Actuarial losses (gains)	1,599,539		(33,008		)	1,566,531
Total	$	1,610,329	$	(33,596	)	$	1,576,733

Accumulated other comprehensive loss (income) as of June 30, 2018 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:



	U.S. Pension Benefits		International Pension Benefits			Total
	(In thousands)
Prior service cost	$	19,170	$	2,679		$	21,849
Actuarial losses (gains)	1,434,160		(26,106		)	1,408,054
Total	$	1,453,330	$	(23,427	)	$	1,429,903

Defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets table

Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows:



	U.S. Pension Benefits ⁽¹⁾				International Pension Benefits
	Jun. 29, 2019		Jun. 30, 2018		Jun. 29, 2019		Jun. 30, 2018
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	4,524,513	$	4,034,383	$	399,966	$	392,457
Fair value of plan assets at end of year	3,984,154		3,666,408		264,746		258,028

⁽¹⁾

Information under Pension Benefits as of June 29, 2019 and June 30, 2018 includes both the U.S. Retirement Plan and the SERP.

Defined benefit plans components of net benefit cost table

The components of net company-sponsored pension costs for each fiscal year are as follows:



	2019						2018						2017
	U.S. Pension Benefits			International Pension Benefits			U.S. Pension Benefits			International Pension Benefits			U.S. Pension Benefits			International Pension Benefits
	(In thousands)
Service cost	$	13,977		$	2,790		$	14,514		$	3,219		$	14,287		$	2,880
Interest cost	172,213			10,637			173,827			10,667			171,282			9,951
Expected return on plan assets	(180,624		)	(11,072		)	(233,987		)	(11,653		)	(222,699		)	(10,033		)
Amortization of prior service cost	8,380			(202		)	9,460			(2,003		)	11,202			(1		)
Amortization of actuarial loss	35,537			(98		)	35,696			(67		)	41,511			(38		)
Curtailment loss	—			—			—			—			—			(611		)
Settlement loss (gain) recognized	—			109			—			16			—			—
Net pension (benefits) costs	$	49,483		$	2,164		$	(490	)	$	179		$	15,583		$	2,148

Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows:



	2019						2018					2017
	U.S. Pension Benefits			International Pension Benefits			U.S. Pension Benefits		International Pension Benefits			U.S. Pension Benefits			International Pension Benefits
	(In thousands)
Amortization of prior service cost	$	8,380		$	(202	)	$	9,460	$	(2,003	)	$	11,202		$	(1	)
Amortization of actuarial loss	35,537			11			35,696		(51		)	41,511			(38		)
Prior service cost arising in current year	—			(3,050		)	—		4,624			(925		)	110
Effect of exchange rates on amounts in AOCI	—			1,163			—		(583		)	—			(1,269		)
Actuarial gain (loss) arising in current year	(163,588		)	(8,090		)	51,318		10,406			197,871			(34,623		)
Net pension costs	$	(119,671	)	$	(10,168	)	$	96,474	$	12,393		$	249,659		$	(35,821	)

Defined benefit plans amounts included accumulated other comprehensive loss (income) that are expected to be recognized in net company-sponsored benefit cost in next fiscal year table

Amounts included in accumulated other comprehensive loss (income) as of June 29, 2019 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2020 are:



	U.S. Pension Benefits		International Pension Benefits			Total
	(In thousands)
Amortization of prior service cost	$	7,537	$	(82	)	$	7,455
Amortization of actuarial losses (gains)	39,483		133			39,616
Total	$	47,020	$	51		$	47,071

Defined benefit plans estimated future benefit payments table

Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows:



	U.S. Pension Benefits		International Pension Benefits
	(In thousands)
2020	$	149,999	$	9,938
2021	160,568		11,240
2022	171,171		11,481
2023	181,811		12,707
2024	191,850		14,280
Subsequent five years	1,097,454		86,099

Defined benefit plans weighted average assumptions used in calculating net periodic benefit costs table

Weighted-average assumptions used to determine net company-sponsored pension costs for each fiscal year were:



	2019		2018		2017
Discount rate — U.S. Retirement Plan	4.28	%	4.19	%	4.07	%
Discount rate — SERP	4.41		4.08		3.91
Discount rate — U.K. Retirement Plan	2.85		2.60		2.80
Expected rate of return — U.S. Retirement Plan	5.00		7.00		7.25
Expected rate of return — U.K. Retirement Plan	4.55		4.55		4.15
Rate of compensation increase — U.S. Retirement Plan	2.62		2.62		2.62

Weighted-average assumptions used to determine benefit obligations as of year-end were:



	Jun. 29, 2019		Jun. 30, 2018
Discount rate — U.S. Retirement Plan	3.70	%	4.28	%
Discount rate — SERP	3.62		4.41
Discount rate — U.K. Retirement Plan	2.30		2.85
Rate of compensation increase — U.S. Retirement Plan	2.56		2.62

Defined benefit plans target and actual asset allocation table

The U.K. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows:



	U.K. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Common contractual fund	75	%	71	%
Liability hedging assets	25		29
			100	%

The U.S. Retirement Plan’s target and actual investment allocation as of June 29, 2019 is as follows:



	U.S. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Growth assets	30	%	27	%
Liability hedging assets	70		73
			100	%

Defined benefit plans fair value of plans assets by major category table

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 29, 2019:



	Assets Measured at Fair Value as of Jun. 29, 2019
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁶⁾		Total
	(In thousands)
Cash and cash equivalents	$	39,981	$	41,266	$	—	$	—	$	81,247
Growth assets:
U.S. equity ⁽¹⁾	—		—		—		468,923		468,923
International equity ⁽¹⁾	95,296		—		—		107,197		202,493
Hedge fund of funds ⁽²⁾	—		—		—		226,409		226,409
Real estate funds ⁽³⁾	—		—		—		93,592		93,592
Private equity funds ⁽⁴⁾	—		—		—		84,266		84,266
Liability hedging assets:
Corporate bonds	—		1,987,964		—		—		1,987,964
U.S. government and agency securities ⁽¹⁾	—		298,629		—		522,489		821,118
Other ⁽⁵⁾	—		18,142		—		—		18,142
Total investments at fair value	$	135,277	$	2,346,001	$	—	$	1,502,876	$	3,984,154


⁽¹⁾	Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 29, 2019. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.


⁽²⁾	There were no unfunded commitments as of June 29, 2019, and there were no redemption restrictions as of June 29, 2019. The investment may be redeemed once per quarter.


⁽³⁾	For investments in the funds listed in this category, total unfunded commitment as of June 29, 2019 was $10.3 million. Approximately 15% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2019 to 2021. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits.


⁽⁴⁾	Total unfunded commitments in the funds listed in this category as of June 29, 2019 were $17.6 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2019 to 2031.


⁽⁵⁾	Include foreign government and state and municipal debt securities.


⁽⁶⁾	Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 29, 2019:



	Assets Measured at Fair Value as of Jun. 29, 2019
	Level 1		Level 2		Level 3		Measured at NAV ⁽³⁾		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	13,372	$	—	$	—	$	—	$	13,372
U.K. government securities	—		63,363		—		—		63,363
Derivatives, net ⁽¹⁾	—		575		—		—		575
Investment funds:
Common contractual fund ⁽²⁾	—		—		—		187,436		187,436
Total investments at fair value	$	13,372	$	63,938	$	—	$	187,436	$	264,746


⁽¹⁾	Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $9.3 million; the fair value of liability positions totaled $8.7 million.


⁽²⁾	There were $13.9 million of unfunded commitments as of June 29, 2019, and there were no redemption restrictions as of June 29, 2019. The investment may be redeemed twice per month.


⁽³⁾	Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 30, 2018:



	Assets Measured at Fair Value as of Jun. 30, 2018
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁷⁾		Total
	(In thousands)
Cash and cash equivalents	$	25,810	$	34,430	$	—	$	—	$	60,240
Growth assets:
U.S. equity ⁽¹⁾	80,719		—		—		143,701		224,420
International equity⁽¹⁾	57,959		—		—		109,186		167,145
Hedge fund of funds ⁽²⁾	—		—		—		388,281		388,281
Real estate funds ⁽³⁾	—		—		—		146,389		146,389
Private equity funds ⁽⁴⁾	—		—		—		84,003		84,003
Liability hedging assets:
Corporate bonds	—		1,775,324		—		—		1,775,324
U.S. government and agency securities ⁽¹⁾	—		277,986		—		469,868		747,854
Other ⁽⁵⁾	—		27,324		—		—		27,324
High yield and emerging markets fixed income ⁽⁶⁾	—		—		—		45,428		45,428
Total investments at fair value	$	164,488	$	2,115,064	$	—	$	1,386,856	$	3,666,408


⁽¹⁾	Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 30, 2018. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.


⁽²⁾	There were no unfunded commitments as of June 30, 2018, and there were no redemption restrictions as of June 30, 2018. The investment may be redeemed once per quarter.


⁽³⁾	The estimate of the liquidation period for these funds varies from 2018 to 2021. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.


⁽⁴⁾	Total unfunded commitment as of June 30, 2018 was $22.6 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2018 to 2031.


⁽⁵⁾	Include foreign government and state and municipal debt securities.


⁽⁶⁾	There were no unfunded commitments as of June 30, 2018, and there were no redemption restrictions as of June 30, 2018. The investment may be redeemed once per day. The daily maximum withdrawal limitation is the greater of $2.0 million or 5% of the asset value.


⁽⁷⁾	Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 30, 2018:



	Assets Measured at Fair Value as of Jun. 30, 2018
	Level 1		Level 2		Level 3		Measured at NAV ⁽³⁾		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	30,987	$	—	$	—	$	—	$	30,987
U.K. government securities	—		9,336		—		—		9,336
Derivatives, net ⁽¹⁾	—		17,658		—		—		17,658
Pooled funds	—		5,387		—		—		5,387
Investment funds:
Common contractual fund ⁽²⁾	—		—		—		194,660		194,660
Total investments at fair value	$	30,987	$	32,381	$	—	$	194,660	$	258,028


⁽¹⁾	Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $45.2 million; the fair value of liability positions totaled $27.5 million.


⁽²⁾	There were $20.8 million of unfunded commitments as of June 30, 2018, and there were no redemption restrictions as of June 30, 2018. The investment may be redeemed once per week.

⁽³⁾

Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet