INCOME TAXES (Tables)

12 Months Ended

Jun. 29, 2019

Income Tax Disclosure [Abstract]

Earnings before income taxes by jurisdiction table

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

	2019		2018		2017
	(In thousands)
U.S.	$	1,910,549	$	1,765,793	$	1,569,073
Foreign	95,287		190,431		197,157
Total	$	2,005,836	$	1,956,224	$	1,766,230

Income tax provision by jurisdiction table

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

	2019			2018		2017
	(In thousands)
U.S. federal income taxes	$	262,940		$	399,254	$	534,266
State and local income taxes	73,835			62,670		69,913
Foreign income taxes	(5,210		)	63,534		19,548
Total	$	331,565		$	525,458	$	623,727

Income tax provision by component table

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

	2019			2018		2017
	(In thousands)
Current	$	458,284		$	337,550	$	675,573
Deferred	(126,719		)	187,908		(51,846		)
Total	$	331,565		$	525,458	$	623,727

Components of deferred tax assets and liabilities table

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

	Jun. 29, 2019			Jun. 30, 2018
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	274,231		$	226,274
Pension	157,670			115,361
Share-based compensation	39,218			34,486
Deferred compensation	29,694			29,512
Receivables	17,383			13,001
Self-insured liabilities	16,496			—
Inventory	12,139			14,728
Foreign currency remeasurement losses and currency hedge	1,725			15,796
Other	32,641			33,386
Deferred tax assets before valuation allowances	581,197			482,544
Valuation allowances	(127,807		)	(123,237		)
Total deferred tax assets	453,390			359,307
Deferred tax liabilities:
Excess tax depreciation and basis differences of assets	163,123			180,950
Goodwill and intangible assets	358,847			373,041
Other	22,892			40,774
Total deferred tax liabilities	544,862			594,765
Total net deferred tax assets (liabilities)	$	(91,472	)	$	(235,458	)

Tax rate reconciliation table

Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows:

	2019		2018		2017
U.S. statutory federal income tax rate	21.00	%	28.00	%	35.00	%
State and local income taxes, net of any applicable federal income tax benefit	3.35		2.48		2.61
Foreign income taxes	(1.42	)	0.07		(2.81	)
Uncertain tax position	(0.31	)	(0.22	)	0.01
Tax benefit of equity-based compensation	(2.07	)	(2.66	)	—
Impact of U.S. Tax Reform	(4.64	)	0.13		—
Other	0.62		(0.95	)	0.50
Effective income tax rate	16.53	%	26.85	%	35.31	%

Reconciliation of unrecognized tax benefits table

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows:

	2019			2018
	(In thousands)
Unrecognized tax benefits at beginning of year	$	12,195		$	16,278
Additions for tax positions related to prior years	20,508			652
Reductions for tax positions related to prior years	(6,086		)	(4,033		)
Reductions due to settlements with taxing authorities	(508		)	(702		)
Unrecognized tax benefits at end of year	$	26,109		$	12,195