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COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jun. 27, 2020

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. As Sysco’s fiscal 2020 year end is June 27, 2020, the company utilized a practical expedient permitting Sysco to measure its defined benefit plan assets and obligations as of the month end closest to the fiscal year end, and has used June 30, 2020 as the measurement date of the plan assets and obligations disclosed herein.


	U.S. Pension Benefits						International Pension Benefits
	Jun. 27, 2020		Jun. 29, 2019		Jun. 27, 2020		Jun. 29, 2019
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	4,537,648	$	4,043,011	$	406,697	$	399,000
Service cost	15,532		13,977		2,800		2,790
Interest cost	164,756		172,213		8,681		10,637
Amendments	(2,077)		—		661		3,050
Curtailments	—		—		(4,012)		—

Plan Combinations	—		—		—		173
Actuarial (gain) loss, net	464,475		439,082		21,157		20,783
Total disbursements	(140,616)		(130,635)		(11,155)		(14,398)
Exchange rate changes	—		—		(10,723)		(15,338)
Benefit obligation at end of year	5,039,718		4,537,648		414,106		406,697
Change in plan assets:
Fair value of plan assets at beginning of year	3,984,154		3,666,408		264,746		258,028
Actual return on plan assets	533,676		418,789		35,594		23,765
Employer contribution	31,525		29,592		7,141		7,612
Total disbursements	(140,616)		(130,635)		(11,155)		(14,398)
Exchange rate changes	—		—		(8,135)		(10,261)
Fair value of plan assets at end of year	4,408,739		3,984,154		288,191		264,746
Funded status at end of year	$	(630,979)	$	(553,494)	$	(125,915)	$	(141,951)

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. 27, 2020		Jun. 29, 2019		Jun. 27, 2020		Jun. 29, 2019
	(In thousands)
Noncurrent assets (Other assets)	$	—	$	—	$	—	$	—
Current accrued benefit liability (Accrued expenses)	(31,121)		(31,652)		(1,359)		(1,285)
Noncurrent accrued benefit liability (Other long-term liabilities)	(599,858)		(521,842)		(124,556)		(140,666)
Net amount recognized	$	(630,979)	$	(553,494)	$	(125,915)	$	(141,951)

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

Accumulated other comprehensive loss (income) as of June 27, 2020 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	$	1,176	$	781	$	1,957
Actuarial losses (gains)	1,687,105		29,733		1,716,838
Total	$	1,688,281	$	30,514	$	1,718,795

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	$	11,378
Actuarial losses (gains)	1,599,539		33,008		1,632,547
Total	$	1,610,329	$	33,596	$	1,643,925

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. 27, 2020		Jun. 29, 2019		Jun. 27, 2020		Jun. 29, 2019
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	5,025,168	$	4,524,513	$	407,181	$	399,966
Fair value of plan assets at end of year	4,408,739		3,984,154		288,191		264,746

⁽¹⁾Information under Pension Benefits as of June 27, 2020 and June 29, 2019 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:


	2020						2019						2018
	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	$	15,531	$	2,800	$	13,977	$	2,790	$	14,514	$	3,219
Interest cost	164,756		8,681		172,213		10,637		173,827		10,667
Expected return on plan assets	(196,249)		(10,819)		(180,624)		(11,072)		(233,987)		(11,653)
Amortization of prior service cost (credit)	7,537		597		8,380		(202)		9,460		(2,003)
Amortization of actuarial loss	39,483		157		35,537		(98)		35,696		(67)
Curtailment loss (gain)	—		(4,166)		—		—		—		—
Settlement loss (gain) recognized	—				—		109		—		16
Net pension (benefits) costs	$	31,058	$	(2,750)	$	49,483	$	2,164	$	(490)	$	179

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:


	2020						2019						2018
	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 (credit)	$	7,537	$	422	$	8,380	$	(202)	$	9,460	$	(2003)
Amortization of actuarial loss (gain)	39,483		157		35,537		11		35,696		(51)
Prior service cost (credit) arising in current year	2,077		(661)		—		(3,050)		—		4,624
Effect of exchange rates on amounts in AOCI	—		784		—		1,163		—		(583)
Actuarial gain (loss) arising in current year	(127,048)		3,640		(163,588)		(8,090)		51,318		10,406
Net pension cost (income)	$	(77,951)	$	4,342	$	(119,671)	$	(10,168)	$	96,474	$	12,393

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 27, 2020 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2021 are:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Amortization of prior service cost (credit)	$	729	$	(67)	$	662
Amortization of actuarial losses (gains)	42,288		237		42,525
Total	$	43,017	$	170	$	43,187

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)
2021	$	157,780	$	11,831
2022	167,694		12,127
2023	178,050		12,483
2024	188,214		13,312
2025	197,783		14,237
Subsequent five years	1,120,130		74,274

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

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


	Jun. 27, 2020		Jun. 29, 2019
Discount rate — U.S. Retirement Plan	2.94	%	3.70	%
Discount rate — SERP	2.91		3.62
Discount rate — U.K. Retirement Plan	1.60		2.30
Rate of compensation increase — U.S. Retirement Plan	2.56		2.56

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


	2020		2019		2018
Discount rate — U.S. Retirement Plan	3.70	%	4.28	%	4.19	%
Discount rate — SERP	3.62		4.41		4.08
Discount rate — U.K. Retirement Plan	2.30		2.85		2.60
Expected rate of return — U.S. Retirement Plan	5.00		5.00		7.00
Expected rate of return — U.K. Retirement Plan	4.55		4.55		4.55
Rate of compensation increase — U.S. Retirement Plan	2.56		2.62		2.62

Defined benefit plans target and actual asset allocation table

The U.S. Retirement Plan’s target and actual investment allocation as of June 27, 2020 is as follows:


	U.S. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Growth assets	30	%	28	%




Liability hedging assets	70		72
			100	%

The U.K. Retirement Plan’s target and actual investment allocation as of June 27, 2020 is as follows:


	U.K. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Common contractual fund	60	%	52	%
Liability hedging assets	40		48
			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 27, 2020:


	Assets Measured at Fair Value as of Jun. 27, 2020
	Level 1		Level 2		Level 3		Measured at NAV ⁽⁶⁾		Total
	(In thousands)
Cash and cash equivalents	$	34,475	$	67,468	$	—	$	—	$	101,943
Growth assets:
U.S. equity ⁽¹⁾	—		—		—		575,035		575,035
International equity ⁽¹⁾	—		—		—		252,687		252,687
Hedge fund of funds ⁽²⁾	—		—		—		233,792		233,792
Real estate funds ⁽³⁾	—		—		—		87,730		87,730
Private equity funds ⁽⁴⁾	—		—		—		74,631		74,631
Liability hedging assets:

Corporate bonds	—		2,220,702		—		—		2,220,702
U.S. government and agency securities ⁽¹⁾	—		293,643		—		540,751		834,394
Other ⁽⁵⁾	—		27,825		—		—		27,825


Total investments at fair value	$	34,475	$	2,609,638	$	—	$	1,764,626	$	4,408,739

⁽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 27, 2020. 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 27, 2020, and there were no redemption restrictions as of June 27, 2020. The investment may be redeemed once per quarter.

⁽³⁾For investments in the funds listed in this category, total unfunded commitment as of June 27, 2020 was $2.0 million. Approximately 5% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2020 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 27, 2020 were $16.2 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 2020 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 27, 2020:


	Assets Measured at Fair Value as of Jun. 27, 2020
	Level 1		Level 2		Level 3		Measured at NAV ⁽³⁾		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	2,510	$	—	$	—	$	—	$	2,510
U.K. government securities	—		135,318		—		—		135,318
Derivatives, net ⁽¹⁾	—		123		—		—		123

Investment funds:
Common contractual fund ⁽²⁾	—		—		—		150,240		150,240
Total investments at fair value	$	2,510	$	135,441	$	—	$	150,240	$	288,191

⁽¹⁾Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $6.8 million; the fair value of liability positions totaled $6.6 million.

⁽²⁾There were $14.9 million of unfunded commitments as of June 27, 2020, and there were no redemption restrictions as of June 27, 2020. 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 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 commitment as of June 29, 2019 was $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.

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 once per week.