INCOME TAXES (Tables)

12 Months Ended

Jun. 27, 2020

Income Tax Disclosure [Abstract]

Earnings before income taxes by jurisdiction table

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

	2020		2019		2018
	(In thousands)
U.S.	$	742,332	$	1,910,549	$	1,765,793
Foreign	(448,948)		95,287		190,431
Total	$	293,384	$	2,005,836	$	1,956,224

Income tax provision by jurisdiction table

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

	2020		2019		2018
	(In thousands)
U.S. federal income taxes	$	128,576	$	262,940	$	399,254
State and local income taxes	8,529		73,835		62,670
Foreign income taxes	(59,196)		(5,210)		63,534
Total	$	77,909	$	331,565	$	525,458

Income tax provision by component table

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

	2020		2019		2018
	(In thousands)
Current	$	269,226	$	458,284	$	337,550
Deferred	(191,317)		(126,719)		187,908
Total	$	77,909	$	331,565	$	525,458

Components of deferred tax assets and liabilities table

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

	Jun. 27, 2020		Jun. 29, 2019
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	379,620	$	274,231
Pension	184,616		157,670
Receivables	99,540		17,383
Deferred compensation	31,603		29,694
Share-based compensation	21,296		39,218
Inventory	17,069		12,139
Self-insured liabilities	3,409		16,496
Other	41,820		34,366
Deferred tax assets before valuation allowances	778,973		581,197
Valuation allowances	(137,862)		(127,807)
Total deferred tax assets	641,111		453,390
Deferred tax liabilities:
Goodwill and intangible assets	329,940		358,847
Excess tax depreciation and basis differences of assets	169,920		163,123
Other	33,737		22,892
Total deferred tax liabilities	533,597		544,862
Total net deferred tax assets (liabilities)	$	107,514	$	(91,472)

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:

	2020		2019		2018
U.S. statutory federal income tax rate	21.00	%	21.00	%	28.00	%
State and local income taxes, net of any applicable federal income tax benefit	5.69		3.35		2.48
Foreign income taxes	(2.46)		(1.42)		0.07
Uncertain tax position	(1.44)		(0.31)		(0.22)
Tax benefit of equity-based compensation	(9.77)		(2.07)		(2.66)
Nondeductible impairment charges	17.65		—		—
Impact of U.S. Tax Reform	—		(4.64)		0.13
Other	(4.12)		0.62		(0.95)
Effective income tax rate	26.55	%	16.53	%	26.85	%

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:

	2020		2019
	(In thousands)
Unrecognized tax benefits at beginning of year	$	26,109	$	12,195
Additions for tax positions related to prior years	—		20,508
Reductions for tax positions related to prior years	(2,974)		(6,086)
Reductions due to settlements with taxing authorities	—		(508)
Unrecognized tax benefits at end of year	$	23,135	$	26,109