(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS employer identification number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☑ | Accelerated Filer | ☐ | |||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | |||||||||
(Do not check if a smaller reporting company) | Emerging growth company |
PART I – FINANCIAL INFORMATION | Page No. | |||||||
PART II – OTHER INFORMATION | ||||||||
Mar. 27, 2021 | Jun. 27, 2020 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowances of $211,607 and $334,810 | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Income tax receivable | |||||||||||
Total current assets | |||||||||||
Plant and equipment at cost, less accumulated depreciation | |||||||||||
Other long-term assets | |||||||||||
Goodwill | |||||||||||
Intangibles, less amortization | |||||||||||
Deferred income taxes | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Other assets | |||||||||||
Total other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Notes payable | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Accrued income taxes | |||||||||||
Current operating lease liabilities | |||||||||||
Current maturities of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total long-term liabilities | |||||||||||
Noncontrolling interest | |||||||||||
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 | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock at cost, 253,817,013 and 256,915,825 shares | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other (income) expense, net | ( | ( | |||||||||||||||||||||
Earnings (loss) before income taxes | ( | ||||||||||||||||||||||
Income taxes | ( | ||||||||||||||||||||||
Net earnings (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Net earnings (loss): | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted earnings (loss) per share | ( | ||||||||||||||||||||||
Average shares outstanding | |||||||||||||||||||||||
Diluted shares outstanding |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||||||||||||
Net earnings (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Items presented net of tax: | |||||||||||||||||||||||
Amortization of cash flow hedges | |||||||||||||||||||||||
Change in net investment hedges | ( | ||||||||||||||||||||||
Change in cash flow hedges | ( | ( | |||||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||
Amortization of actuarial loss | |||||||||||||||||||||||
Change in marketable securities | ( | ( | |||||||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 26, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.45 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 27, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 28, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($0.45 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 28, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 27, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedges, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.35 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 27, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amounts | Totals | |||||||||||||||||||||||||||||||||||||||||||
Balance as of June 29, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net earnings | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of cash flow hedges, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of tax | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Change in net investment hedge, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of pension and other postretirement benefit plans amounts to net earnings, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Change in marketable securities, net of tax | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared ($1.29 per common share) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchases | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation awards | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 28, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
39-Week Period Ended | |||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | $ | |||||||||
Adjustments to reconcile net earnings to cash provided by operating activities: | |||||||||||
Share-based compensation expense | |||||||||||
Depreciation and amortization | |||||||||||
Operating lease asset amortization | |||||||||||
Amortization of debt issuance and other debt-related costs | |||||||||||
Goodwill impairment | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Provision for losses on receivables | ( | ||||||||||
Loss on sale of businesses | |||||||||||
Other non-cash items | ( | ||||||||||
Additional changes in certain assets and liabilities, net of effect of businesses acquired: | |||||||||||
(Increase) decrease in receivables | ( | ||||||||||
Increase in inventories | ( | ( | |||||||||
Increase in prepaid expenses and other current assets | ( | ( | |||||||||
Increase (decrease) in accounts payable | ( | ||||||||||
Increase (decrease) in accrued expenses | ( | ||||||||||
Decrease in operating lease liabilities | ( | ( | |||||||||
Increase (decrease) in accrued income taxes | ( | ||||||||||
Decrease in other assets | |||||||||||
Increase in other long-term liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Additions to plant and equipment | ( | ( | |||||||||
Proceeds from sales of plant and equipment | |||||||||||
Acquisition of businesses, net of cash acquired | ( | ||||||||||
Purchase of marketable securities | ( | ( | |||||||||
Proceeds from sales of marketable securities | |||||||||||
Other investing activities | |||||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Bank and commercial paper (repayments) borrowings, net | ( | ||||||||||
Other debt borrowings | |||||||||||
Other debt repayments | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Stock repurchases | ( | ||||||||||
Dividends paid | ( | ( | |||||||||
Other financing activities | ( | ( | |||||||||
Net cash (used for) provided by financing activities | ( | ||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | ( | ||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refunds |
Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||
(In thousands) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash (1) | |||||||||||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | $ |
13-Week Period Ended Mar. 27, 2021 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
13-Week Period Ended Mar. 28, 2020 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
39-Week Period Ended Mar. 27, 2021 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
39-Week Period Ended Mar. 28, 2020 | ||||||||||||||||||||||||||||||||
US Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Principal Product Categories | ||||||||||||||||||||||||||||||||
Fresh and frozen meats | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Canned and dry products | ||||||||||||||||||||||||||||||||
Frozen fruits, vegetables, bakery and other | ||||||||||||||||||||||||||||||||
Dairy products | ||||||||||||||||||||||||||||||||
Poultry | ||||||||||||||||||||||||||||||||
Fresh produce | ||||||||||||||||||||||||||||||||
Paper and disposables | ||||||||||||||||||||||||||||||||
Seafood | ||||||||||||||||||||||||||||||||
Beverage products | ||||||||||||||||||||||||||||||||
Other (1) | ||||||||||||||||||||||||||||||||
Total Sales | $ | $ | $ | $ | $ |
39-Week Period Ended | |||||
Mar. 27, 2021 | |||||
(In thousands) | |||||
Balance at beginning of period | $ | ||||
Adjustments to costs and expenses | ( | ||||
Recoveries, net of customer accounts written off | |||||
Other adjustments | ( | ||||
Balance at end of period | $ |
Assets Measured at Fair Value as of Mar. 27, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Other assets (1) | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Assets Measured at Fair Value as of Jun. 27, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Other assets (1) | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Government bonds | |||||||||||||||||||||||||||||||||||
Total marketable securities | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||
Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Government bonds | |||||||||||||||||||||||||||||||||||
Total marketable securities | $ | $ | $ | $ | $ | $ |
Mar. 27, 2021 | |||||
(In thousands) | |||||
Due in one year or less | $ | ||||
Due after one year through five years | |||||
Due after five years through ten years | |||||
Total | $ |
Maturity Date of the Hedging Instrument | Currency / Unit of Measure | Notional Value | ||||||||||||
(In millions) | ||||||||||||||
Hedging of interest rate risk | ||||||||||||||
July 2021 | U.S. Dollar | |||||||||||||
June 2023 | Euro | |||||||||||||
March 2025 | U.S. Dollar | |||||||||||||
Hedging of foreign currency risk | ||||||||||||||
Various (March 29, 2021 to April 2021) | Swedish Krona | |||||||||||||
June 2023 | Euro | |||||||||||||
Hedging of fuel risk | ||||||||||||||
Various (March 31, 2021 to March 2022) | Gallons |
Derivative Fair Value | |||||||||||||||||
Balance Sheet location | Mar. 27, 2021 | Jun. 27, 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
Fair Value Hedges: | |||||||||||||||||
Interest rate swaps | Other current assets | $ | $ | ||||||||||||||
Interest rate swaps | Other assets | ||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Fuel swaps | Other current assets | $ | $ | ||||||||||||||
Foreign currency forwards | Other current assets | ||||||||||||||||
Fuel swaps | Other assets | ||||||||||||||||
Cross currency swaps | Other assets | ||||||||||||||||
Fuel swaps | Other current liabilities | ||||||||||||||||
Foreign currency forwards | Other current liabilities | ||||||||||||||||
13-Week Period Ended | 39-Week Period Ended | |||||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded | $ | $ | $ | $ | ||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships: | ||||||||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||||||||
Hedged items | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||
Derivatives designated as hedging instruments | ( | ( | ||||||||||||||||||||||||
13-Week Period Ended | 39-Week Period Ended | |||||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Interest expense | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Increase (decrease) in fair value of debt | ( | ( | ||||||||||||||||||||||||
Hedged items | $ | $ | ( | $ | ( | $ | ( |
13-Week Period Ended Mar. 27, 2021 | |||||||||||||||||
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 | $ | Operating expense | $ | ( | |||||||||||||
Foreign currency contracts | ( | Cost of sales / Other income | |||||||||||||||
Total | $ | $ | ( | ||||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | N/A | ||||||||||||||||
Total | $ | $ | |||||||||||||||
13-Week Period Ended Mar. 28, 2020 | |||||||||||||||||
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 | $ | ( | Operating expense | $ | ( | ||||||||||||
Foreign currency contracts | Cost of sales / Other income | ||||||||||||||||
Total | $ | ( | $ | ( | |||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign currency contracts | $ | N/A | $ | ||||||||||||||
Foreign denominated debt | N/A | ||||||||||||||||
Total | $ | $ |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||
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 | $ | Operating expense | $ | ( | |||||||||||||
Foreign currency contracts | ( | Cost of sales / Other income | ( | ||||||||||||||
Total | $ | $ | ( | ||||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign denominated debt | ( | N/A | |||||||||||||||
Total | $ | ( | $ | ||||||||||||||
39-Week Period Ended Mar. 28, 2020 | |||||||||||||||||
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 | $ | ( | Operating expense | $ | ( | ||||||||||||
Foreign currency contracts | Cost of sales / Other income | ||||||||||||||||
Total | $ | ( | $ | ( | |||||||||||||
Derivatives in net investment hedging relationships: | |||||||||||||||||
Foreign currency contracts | $ | N/A | $ | ||||||||||||||
Foreign denominated debt | N/A | ||||||||||||||||
Total | $ | $ |
Mar. 27, 2021 | |||||||||||
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 | $ | ( | $ | ( | |||||||
Long-term debt | ( | ( |
Jun. 27, 2020 | |||||||||||
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 | $ | ( | $ | ( | |||||||
Long-term debt | ( | ( |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||||||||||||
(In thousands, except for share and per share data) | (In thousands, except for share and per share data) | ||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net earnings (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average basic shares outstanding | |||||||||||||||||||||||
Dilutive effect of share-based awards | |||||||||||||||||||||||
Weighted-average diluted shares outstanding | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted earnings (loss) per share | $ | $ | ( | $ | $ |
13-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||
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 | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ( | ( | ( | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedge | Operating expenses (2) | ||||||||||||||||||||||
Change in net investment hedge | N/A | ||||||||||||||||||||||
Total other comprehensive income before reclassification adjustments | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive income | $ | $ | $ |
13-Week Period Ended Mar. 28, 2020 | |||||||||||||||||||||||
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 | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ( | ( | ||||||||||||||||||||
Marketable Securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ||||||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedges | Operating expenses (2) | ( | ( | ( | |||||||||||||||||||
Change in net investment hedges (3) | N/A | ||||||||||||||||||||||
Total other comprehensive income (loss) before reclassification adjustments | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive (loss) income | $ | ( | $ | $ | ( |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||
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 | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ( | ( | ( | |||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedges (3) | Operating expenses (2) | ||||||||||||||||||||||
Change in net investment hedges | N/A | ( | ( | ( | |||||||||||||||||||
Total other comprehensive income before reclassification adjustments | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive income (loss) | $ | $ | $ |
39-Week Period Ended Mar. 28, 2020 | |||||||||||||||||||||||
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 | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial loss, net | Other expense, net | ||||||||||||||||||||||
Total reclassification adjustments | |||||||||||||||||||||||
Foreign currency translation: | |||||||||||||||||||||||
Foreign currency translation adjustment | N/A | ( | ( | ||||||||||||||||||||
Marketable Securities: | |||||||||||||||||||||||
Change in marketable securities (1) | N/A | ||||||||||||||||||||||
Hedging instruments: | |||||||||||||||||||||||
Other comprehensive income (loss) before reclassification adjustments: | |||||||||||||||||||||||
Change in cash flow hedges | Operating expenses (2) | ( | ( | ( | |||||||||||||||||||
Change in net investment hedges (3) | N/A | ||||||||||||||||||||||
Total other comprehensive income (loss) before reclassification adjustments | |||||||||||||||||||||||
Reclassification adjustments: | |||||||||||||||||||||||
Amortization of cash flow hedges | Interest expense | ||||||||||||||||||||||
Total other comprehensive (loss) income | $ | ( | $ | $ | ( |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities, net of tax | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of Jun. 27, 2020 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Equity adjustment from foreign currency translation | — | — | — | ||||||||||||||||||||||||||
Amortization of cash flow hedges | — | — | — | ||||||||||||||||||||||||||
Change in net investment hedges | — | — | ( | — | ( | ||||||||||||||||||||||||
Change in cash flow hedge | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | — | — | — | ||||||||||||||||||||||||||
Change in marketable securities | — | — | — | ( | ( | ||||||||||||||||||||||||
Balance as of Mar. 27, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
39-Week Period Ended Mar. 28, 2020 | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans, net of tax | Foreign Currency Translation | Hedging, net of tax | Marketable Securities, net of tax | Total | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Balance as of Jun. 29, 2019 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Equity adjustment from foreign currency translation | — | ( | — | — | ( | ||||||||||||||||||||||||
Amortization of cash flow hedges | — | — | — | ||||||||||||||||||||||||||
Change in net investment hedges | — | — | — | ||||||||||||||||||||||||||
Change in cash flow hedge | — | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of unrecognized prior service cost | — | — | — | ||||||||||||||||||||||||||
Amortization of unrecognized net actuarial losses | — | — | — | ||||||||||||||||||||||||||
Change in marketable securities | — | — | — | ||||||||||||||||||||||||||
Balance as of Mar. 28, 2020 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||||||||||||
Sales: | (In thousands) | (In thousands) | |||||||||||||||||||||
U.S. Foodservice Operations | $ | $ | $ | $ | |||||||||||||||||||
International Foodservice Operations | |||||||||||||||||||||||
SYGMA | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||||||||||||
Operating income (loss): | (In thousands) | (In thousands) | |||||||||||||||||||||
U.S. Foodservice Operations | $ | $ | $ | $ | |||||||||||||||||||
International Foodservice Operations | ( | ( | ( | ||||||||||||||||||||
SYGMA | |||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||
Total segments | |||||||||||||||||||||||
Corporate | ( | ( | ( | ( | |||||||||||||||||||
Total operating income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Other (income) expense, net | ( | ( | |||||||||||||||||||||
Earnings (loss) before income taxes | $ | $ | ( | $ | $ |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Mar. 27, 2021 | Mar. 28, 2020 | Mar. 27, 2021 | Mar. 28, 2020 | ||||||||||||||||||||
Sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 82.0 | 81.3 | 81.7 | 81.1 | |||||||||||||||||||
Gross profit | 18.0 | 18.7 | 18.3 | 18.9 | |||||||||||||||||||
Operating expenses | 16.0 | 18.3 | 15.8 | 16.0 | |||||||||||||||||||
Operating income | 2.0 | 0.4 | 2.5 | 2.9 | |||||||||||||||||||
Interest expense | 1.2 | 0.6 | 1.2 | 0.6 | |||||||||||||||||||
Other (income) expense, net | (0.1) | — | — | — | |||||||||||||||||||
Earnings before income taxes | 0.9 | (0.2) | 1.3 | 2.3 | |||||||||||||||||||
Income taxes | 0.1 | (0.2) | 0.2 | 0.4 | |||||||||||||||||||
Net earnings | 0.8 | % | — | % | 1.1 | % | 1.9 | % |
13-Week Period Ended | 39-Week Period Ended | ||||||||||
Mar. 27, 2021 | Mar. 27, 2021 | ||||||||||
Sales | (13.7) | % | (20.1) | % | |||||||
Cost of sales | (12.9) | (19.5) | |||||||||
Gross profit | (17.2) | (22.7) | |||||||||
Operating expenses | (24.6) | (21.0) | |||||||||
Operating income | 291.4 | (32.3) | |||||||||
Interest expense | 73.8 | 79.9 | |||||||||
Other (income) expense, net (1) (2) | (344.4) | (288.4) | |||||||||
Earnings before income taxes | (457.4) | (57.0) | |||||||||
Income taxes | (154.6) | (64.4) | |||||||||
Net earnings | 2,797.2 | % | (55.3) | % | |||||||
Basic earnings per share | 1,800.0 | % | (55.2) | % | |||||||
Diluted earnings per share | 1,800.0 | (54.9) | |||||||||
Average shares outstanding | 0.5 | (0.1) | |||||||||
Diluted shares outstanding | 0.4 | (0.6) |
13-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Corporate | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 8,360,241 | $ | 1,723,126 | $ | 1,580,695 | $ | 160,527 | $ | — | $ | 11,824,589 | |||||||||||||||||||||||
Sales increase (decrease) | (12.8) | % | (31.3) | % | 15.9 | % | (32.8) | % | (13.7) | % | |||||||||||||||||||||||||
Percentage of total | 70.7 | % | 14.6 | % | 13.4 | % | 1.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) | $ | 545,502 | $ | (121,487) | $ | 12,937 | $ | 5,884 | $ | (206,919) | $ | 235,917 | |||||||||||||||||||||||
Operating income (loss) increase (decrease) | 17.5 | % | 45.0 | % | 25.6 | % | NM | NM | |||||||||||||||||||||||||||
Percentage of total segments | 123.2 | % | (27.4) | % | 2.9 | % | 1.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income (loss) as a percentage of sales | 6.5 | % | (7.1) | % | 0.8 | % | 3.7 | % | 2.0 | % |
13-Week Period Ended Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Corporate | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 9,587,005 | $ | 2,508,642 | $ | 1,364,111 | $ | 238,941 | $ | — | $ | 13,698,699 | |||||||||||||||||||||||
Percentage of total | 70.0 | % | 18.3 | % | 10.0 | % | 1.7 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income | $ | 464,173 | $ | (83,786) | $ | 10,301 | $ | (19,051) | $ | (311,363) | $ | 60,274 | |||||||||||||||||||||||
Percentage of total segments | 124.9 | % | (22.5) | % | 2.8 | % | (5.1) | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 4.8 | % | (3.3) | % | 0.8 | % | (8.0) | % | 0.4 | % |
39-Week Period Ended Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Corporate | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 24,205,917 | $ | 5,854,608 | $ | 4,625,244 | $ | 475,181 | $ | — | $ | 35,160,950 | |||||||||||||||||||||||
Sales increase (decrease) | (21.0) | % | (29.6) | % | 8.4 | % | (39.8) | % | (20.1) | % | |||||||||||||||||||||||||
Percentage of total | 68.8 | % | 16.7 | % | 13.2 | % | 1.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income | $ | 1,619,162 | $ | (201,973) | $ | 35,957 | $ | 4,861 | $ | (590,449) | $ | 867,558 | |||||||||||||||||||||||
Operating income increase (decrease) | (17.5) | % | NM | 29.7 | % | NM | (32.3) | % | |||||||||||||||||||||||||||
Percentage of total segments | 111.1 | % | (13.9) | % | 2.5 | % | 0.3 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 6.7 | % | (3.4) | % | 0.8 | % | 1.0 | % | 2.5 | % |
39-Week Period Ended Mar. 28, 2020 | |||||||||||||||||||||||||||||||||||
U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Corporate | Consolidated Totals | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Sales | $ | 30,659,215 | $ | 8,311,081 | $ | 4,266,998 | $ | 789,452 | $ | — | $ | 44,026,746 | |||||||||||||||||||||||
Percentage of total | 69.6 | % | 18.9 | % | 9.7 | % | 1.8 | % | 100.0 | % | |||||||||||||||||||||||||
Operating income | $ | 1,962,595 | $ | 5,895 | $ | 27,732 | $ | 486 | $ | (715,623) | $ | 1,281,085 | |||||||||||||||||||||||
Percentage of total segments | 98.3 | % | 0.3 | % | 1.4 | % | — | % | 100.0 | % | |||||||||||||||||||||||||
Operating income as a percentage of sales | 6.4 | % | 0.1 | % | 0.6 | % | 0.1 | % | 2.9 | % |
13-Week Period Ended Mar. 27, 2021 | 13-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 8,360,241 | $ | 9,587,005 | $ | (1,226,764) | (12.8) | % | |||||||||||||||
Gross profit | 1,634,837 | 1,895,378 | (260,541) | (13.7) | |||||||||||||||||||
Operating expenses | 1,089,335 | 1,431,205 | (341,870) | (23.9) | |||||||||||||||||||
Operating income | $ | 545,502 | $ | 464,173 | $ | 81,329 | 17.5 | % | |||||||||||||||
Gross profit | $ | 1,634,837 | $ | 1,895,378 | $ | (260,541) | (13.7) | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 1,109,719 | 1,322,572 | (212,853) | (16.1) | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 525,118 | $ | 572,806 | $ | (47,688) | (8.3) | % | |||||||||||||||
39-Week Period Ended Mar. 27, 2021 | 39-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 24,205,917 | $ | 30,659,215 | $ | (6,453,298) | (21.0) | % | |||||||||||||||
Gross profit | 4,793,866 | 6,089,171 | (1,295,305) | (21.3) | |||||||||||||||||||
Operating expenses | 3,174,704 | 4,126,576 | (951,872) | (23.1) | |||||||||||||||||||
Operating income | $ | 1,619,162 | $ | 1,962,595 | $ | (343,433) | (17.5) | % | |||||||||||||||
Gross profit | $ | 4,793,866 | $ | 6,089,171 | $ | (1,295,305) | (21.3) | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 3,293,919 | 4,010,138 | (716,219) | (17.9) | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 1,499,947 | $ | 2,079,033 | $ | (579,086) | (27.9) | % |
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||
13-Week Period | 39-Week Period | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
Cause of change | Percentage | Dollars | Percentage | Dollars | |||||||||||||||||||
Case volume | (14.2) | % | $ | (1,364.6) | (21.3) | % | $ | (6,540.5) | |||||||||||||||
Inflation | 3.2 | 302.3 | 1.8 | 563.6 | |||||||||||||||||||
Acquisitions | — | — | 0.2 | 50.5 | |||||||||||||||||||
Other (1) | (1.8) | (164.5) | (1.7) | (526.9) | |||||||||||||||||||
Total change in sales | (12.8) | % | $ | (1,226.8) | (21.0) | % | $ | (6,453.3) | |||||||||||||||
13-Week Period Ended Mar. 27, 2021 | 13-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 1,723,126 | $ | 2,508,642 | $ | (785,516) | (31.3) | % | |||||||||||||||
Gross profit | 325,200 | 500,929 | (175,729) | (35.1) | |||||||||||||||||||
Operating expenses | 446,687 | 584,715 | (138,028) | (23.6) | |||||||||||||||||||
Operating loss | $ | (121,487) | $ | (83,786) | $ | (37,701) | 45.0 | % | |||||||||||||||
Gross profit | $ | 325,200 | $ | 500,929 | $ | (175,729) | (35.1) | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 417,575 | 495,945 | (78,370) | (15.8) | |||||||||||||||||||
Adjusted operating (loss) income (Non-GAAP) | $ | (92,375) | $ | 4,984 | $ | (97,359) | (1,953.4) | % | |||||||||||||||
Sales on a constant currency basis (Non-GAAP) | $ | 1,619,788 | $ | 2,508,642 | $ | (888,854) | (35.4) | % | |||||||||||||||
Gross profit on a constant currency basis (Non-GAAP) | 304,540 | 500,929 | (196,389) | (39.2) | |||||||||||||||||||
Adjusted operating expenses on a constant currency basis (Non-GAAP) | 388,764 | 495,945 | (107,181) | (21.6) | |||||||||||||||||||
Adjusted operating (loss) income on a constant currency basis (Non-GAAP) | $ | (84,224) | $ | 4,984 | $ | (89,208) | (1,789.9) | % | |||||||||||||||
39-Week Period Ended Mar. 27, 2021 | 39-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Sales | $ | 5,854,608 | $ | 8,311,081 | $ | (2,456,473) | (29.6) | % | |||||||||||||||
Gross profit | 1,149,438 | 1,692,153 | (542,715) | (32.1) | |||||||||||||||||||
Operating expenses | 1,351,411 | 1,686,258 | (334,847) | (19.9) | |||||||||||||||||||
Operating (loss) income | $ | (201,973) | $ | 5,895 | $ | (207,868) | (3,526.2) | % | |||||||||||||||
Gross profit | $ | 1,149,438 | $ | 1,692,153 | $ | (542,715) | (32.1) | % | |||||||||||||||
Adjusted operating expenses (Non-GAAP) | 1,278,247 | 1,514,144 | (235,897) | (15.6) | |||||||||||||||||||
Adjusted operating (loss) income (Non-GAAP) | $ | (128,809) | $ | 178,009 | $ | (306,818) | (172.4) | % | |||||||||||||||
Sales on a constant currency basis (Non-GAAP) | $ | 5,657,228 | $ | 8,311,081 | $ | (2,653,853) | (31.9) | % | |||||||||||||||
Gross profit on a constant currency basis (Non-GAAP) | 1,105,807 | 1,692,153 | (586,346) | (34.7) | |||||||||||||||||||
Adjusted operating expenses on a constant currency basis (Non-GAAP) | 1,221,984 | 1,514,144 | (292,160) | (19.3) | |||||||||||||||||||
Adjusted operating (loss) income on a constant currency basis (Non-GAAP) | $ | (116,177) | $ | 178,009 | $ | (294,186) | (165.3) | % |
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||
13-Week Period | 39-Week Period | ||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | ||||||||||||||||||||||
Cause of change | Percentage | Dollars | Percentage | Dollars | |||||||||||||||||||
Inflation | 0.9 | % | $ | 23.4 | 2.3 | % | $ | 188.6 | |||||||||||||||
Foreign currency | 4.1 | 103.3 | 2.4 | 197.4 | |||||||||||||||||||
Other (1) | (36.3) | (912.2) | (34.3) | (2,842.5) | |||||||||||||||||||
Total change in sales | (31.3) | % | $ | (785.5) | (29.6) | % | $ | (2,456.5) | |||||||||||||||
Sysco’s results of operations for fiscal 2021 and fiscal 2020 were impacted by restructuring and transformational project costs consisting of: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; and (3) facility closure and severance charges. Sysco’s results for fiscal 2021 and fiscal 2020 were also impacted by intangible amortization expense related to the fiscal 2017 acquisition of Cucina Lux Investments Limited (the Brakes Acquisition). Additionally, our results for fiscal 2021 were impacted by loss on the sale of businesses. | ||
Fiscal 2021 results of operations were also positively impacted by the reduction of bad debt expense previously recognized in fiscal 2020 due to the unexpected impact of the COVID-19 pandemic on the collectability of our pre-pandemic trade receivable balances. Fiscal 2020 results of operations were also negatively impacted by costs arising from the COVID-19 pandemic, the most significant of which were (1) excess bad debt expense, as we experienced an increase in past due receivables and recognized additional bad debt charges, and (2) goodwill impairment charges. Many of Sysco’s customers, including those in the restaurant, hospitality and education segments, are operating at a substantially reduced volume due to governmental requirements for closures or other social-distancing measures and a portion of Sysco’s customers have been closed. Some of these customers ceased paying their outstanding receivables, creating uncertainty as to their collectability. We experienced an increase in past due receivables and recognized additional bad debt charges in the third and fourth quarters of fiscal 2020; however, collections have improved in fiscal 2021, partially from restaurant reopenings, volumes improvements and Sysco’s improved credit processes. We have estimated uncollectible amounts based on the current collection experience and by applying write-off percentages based on historical loss experience, including loss experience during times of local and regional disasters, current conditions and collection rates, and expectations regarding future losses. The COVID-19 pandemic is more widespread and longer in duration than historical disasters impacting our business, and it is possible that actual uncollectible amounts will differ and additional charges may be required; however, if collections continue to improve, it is also possible that additional reductions in our bad debt reserve could occur. While Sysco traditionally incurs bad debt expense, the magnitude of such expenses and benefits, that we have experienced is not indicative of our normal operations. Our adjusted results have not been normalized in a manner that would exclude the full impact of the COVID-19 pandemic on our business. As such, Sysco has not adjusted its results for lost sales, inventory write-offs or other costs associated with the COVID-19 pandemic not previously stated. | ||
The results of our foreign operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our total Sysco and our International Foodservice Operations results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. The constant currency impact on our adjusted total Sysco and our adjusted International Foodservice Operations results are disclosed when the impact exceeds a defined threshold of greater than 1% on the growth metric. If the amount does not exceed this threshold, a disclosure will be made that the impact of the currency change was not significant. | ||
Management believes that adjusting its operating expenses, operating income, net earnings and diluted earnings per share to remove these Certain Items and presenting its International Foodservice Operations results on a constant currency basis, 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 and (2) facilitates comparisons on a year-over-year basis. | ||
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 the impact of acquisition-related intangible amortization specific to the Brakes Acquisition. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2021 and fiscal 2020. | ||
Set forth below is a reconciliation of sales, operating expenses, operating income, interest expense, other (income) 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 up to the total presented due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. |
13-Week Period Ended Mar. 27, 2021 | 13-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands, except for per share data) | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 1,886,751 | $ | 2,503,966 | $ | (617,215) | (24.6) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | (34,953) | (77,195) | 42,242 | (54.7) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | (18,834) | (17,321) | (1,513) | 8.7 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | 33,473 | (153,499) | 186,972 | (121.8) | |||||||||||||||||||
Impact of goodwill impairment | — | (68,725) | 68,725 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 1,866,437 | 2,187,226 | (320,789) | (14.7) | |||||||||||||||||||
Impact of currency fluctuations (4) | (29,659) | — | (29,659) | (1.3) | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 1,836,778 | $ | 2,187,226 | $ | (350,448) | (16.0) | % | |||||||||||||||
Operating income (GAAP) | $ | 235,917 | $ | 60,274 | $ | 175,643 | 291.4 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 34,953 | 77,195 | (42,242) | (54.7) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | 18,834 | 17,321 | 1,513 | 8.7 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | (33,473) | 153,499 | (186,972) | (121.8) | |||||||||||||||||||
Impact of goodwill impairment | — | 68,725 | (68,725) | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | 256,231 | 377,014 | (120,783) | (32.0) | |||||||||||||||||||
Impact of currency fluctuations (4) | 8,029 | — | 8,029 | (2.1) | |||||||||||||||||||
Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 264,260 | $ | 377,014 | $ | (112,754) | (29.9) | % | |||||||||||||||
Other (income) expense (GAAP) | $ | (12,708) | $ | 5,200 | $ | (17,908) | NM | ||||||||||||||||
Impact of loss on sale of businesses | (10,790) | — | (10,790) | NM | |||||||||||||||||||
Other (income) expense (Non-GAAP) | $ | (23,498) | $ | 5,200 | $ | (28,698) | NM | ||||||||||||||||
Net earnings (loss) (GAAP) | $ | 88,927 | $ | (3,297) | $ | 92,224 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (1) | 34,953 | 77,195 | (42,242) | (54.7) | % | ||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | 18,834 | 17,321 | 1,513 | 8.7 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | (33,473) | 153,499 | (186,972) | (121.8) | |||||||||||||||||||
Impact of goodwill impairment | — | 68,725 | (68,725) | NM | |||||||||||||||||||
Impact of loss on sale of businesses | 10,790 | — | 10,790 | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (5) | (10,300) | (28,461) | 18,161 | (63.8) | |||||||||||||||||||
Tax impact of acquisition-related intangible amortization (5) | (5,573) | (6,777) | 1,204 | (17.8) | |||||||||||||||||||
Tax impact of bad debt reserve adjustments (5) | 10,354 | (46,410) | 56,764 | (122.3) | |||||||||||||||||||
Tax impact of loss on sale of businesses | 301 | — | 301 | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 114,813 | $ | 231,795 | $ | (116,982) | (50.5) | % | |||||||||||||||
Diluted earnings (loss) per share (GAAP) | $ | 0.17 | $ | (0.01) | $ | 0.18 | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (1) | 0.07 | 0.15 | (0.08) | (53.3) | % | ||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | 0.04 | 0.03 | 0.01 | 33.3 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | (0.07) | 0.30 | (0.37) | (123.3) | |||||||||||||||||||
Impact of goodwill impairment | — | 0.13 | (0.13) | NM | |||||||||||||||||||
Impact of loss on sale of businesses | 0.02 | — | 0.02 | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (5) | (0.02) | (0.06) | 0.04 | (66.7) | |||||||||||||||||||
Tax impact of acquisition-related intangible amortization (5) | (0.01) | (0.01) | — | 0.0 | |||||||||||||||||||
Tax impact of bad debt reserve adjustments (5) | 0.02 | (0.09) | 0.11 | (122.2) | |||||||||||||||||||
Diluted EPS adjusted for Certain Items (Non-GAAP) (6) | $ | 0.22 | $ | 0.45 | $ | (0.23) | (51.1) | % | |||||||||||||||
(1) | Fiscal 2021 includes $21 million related to restructuring charges and $14 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2020 includes $48 million related to restructuring, facility closure and severance charges and $30 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(2) | Represents intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice. | ||||
(3) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. | ||||
(4) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(5) | 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. | ||||
(6) | Individual components of diluted earnings per share may not add up 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. |
39-Week Period Ended Mar. 27, 2021 | 39-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
(Dollars in thousands, except for share and per share data) | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 5,573,413 | $ | 7,054,924 | $ | (1,481,511) | (21.0) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | (95,078) | (191,022) | 95,944 | (50.2) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | (54,714) | (51,543) | (3,171) | 6.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | 162,372 | (153,499) | 315,871 | (205.8) | |||||||||||||||||||
Impact of goodwill impairment | — | (68,725) | 68,725 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP)* | $ | 5,585,993 | $ | 6,590,135 | $ | (1,004,142) | (15.2) | % | |||||||||||||||
Operating income (GAAP) | $ | 867,558 | $ | 1,281,085 | $ | (413,527) | (32.3) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 95,078 | 191,022 | (95,944) | (50.2) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | 54,714 | 51,543 | 3,171 | 6.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | (162,372) | 153,499 | (315,871) | (205.8) | |||||||||||||||||||
Impact of goodwill impairment | — | 68,725 | (68,725) | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP)* | $ | 854,978 | $ | 1,745,874 | $ | (890,896) | (51.0) | % | |||||||||||||||
Other (income) expense (GAAP) | $ | (14,140) | $ | 7,505 | $ | (21,645) | (288.4) | % | |||||||||||||||
Impact of loss on sale of businesses | (22,834) | — | (22,834) | NM | |||||||||||||||||||
Other (income) expense (Non-GAAP) | $ | (36,974) | $ | 7,505 | $ | (44,479) | NM | ||||||||||||||||
Net earnings (GAAP) | $ | 373,116 | $ | 833,894 | $ | (460,778) | (55.3) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 95,078 | 191,022 | (95,944) | (50.2) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | 54,714 | 51,543 | 3,171 | 6.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | (162,372) | 153,499 | (315,871) | (205.8) | |||||||||||||||||||
Impact of goodwill impairment | — | 68,725 | (68,725) | NM | |||||||||||||||||||
Impact of loss on sale of businesses | 22,834 | — | 22,834 | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (4) | (26,886) | (57,756) | 30,870 | (53.4) | |||||||||||||||||||
Tax impact of acquisition-related intangible amortization (4) | (15,471) | (15,584) | 113 | (0.7) | |||||||||||||||||||
Tax impact of bad debt reserve adjustments (4) | 45,913 | (46,410) | 92,323 | (198.9) | |||||||||||||||||||
Tax impact of loss on sale of businesses | (7,251) | — | (7,251) | NM | |||||||||||||||||||
Impact of foreign tax rate change | (5,548) | 924 | (6,472) | NM | |||||||||||||||||||
Net earnings adjusted for Certain Items (Non-GAAP) | $ | 374,127 | $ | 1,179,857 | $ | (805,730) | (68.3) | % | |||||||||||||||
Diluted earnings per share (GAAP) | $ | 0.73 | $ | 1.62 | $ | (0.89) | (54.9) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 0.19 | 0.37 | (0.18) | (48.6) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (2) | 0.11 | 0.10 | 0.01 | 10.0 | |||||||||||||||||||
Impact of bad debt reserve adjustments (3) | (0.32) | 0.30 | (0.62) | (206.7) | |||||||||||||||||||
Impact of goodwill impairment | — | 0.13 | (0.13) | NM | |||||||||||||||||||
Impact of loss on sale of businesses | 0.04 | — | 0.04 | NM | |||||||||||||||||||
Tax impact of restructuring and transformational project costs (4) | (0.05) | (0.11) | 0.06 | (54.5) | |||||||||||||||||||
Tax impact of acquisition-related intangible amortization (4) | (0.03) | (0.03) | — | 0.0 | |||||||||||||||||||
Tax impact of bad debt reserve adjustments (4) | 0.09 | (0.09) | 0.18 | (200.0) | |||||||||||||||||||
Tax impact of loss on sale of businesses | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Tax impact of foreign tax rate change | (0.01) | — | (0.01) | NM | |||||||||||||||||||
Diluted EPS adjusted for Certain Items (Non-GAAP) (5) | $ | 0.73 | $ | 2.29 | $ | (1.56) | (68.1) | % | |||||||||||||||
(1) | Fiscal 2021 includes $56 million related to restructuring, severance and facility closure charges, and $39 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. Fiscal 2020 includes $100 million related to restructuring, severance, and facility closure charges and $91 million related to various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
(2) | Represents intangible amortization expense from the Brakes Acquisition, which is included in the results of International Foodservice. | ||||
(3) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. | ||||
(4) | 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. | ||||
(5) | Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. | ||||
* | Foreign exchange rates did not have a meaningful impact during the period; therefore, the constant currency adjustment is not disclosed. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Mar. 27, 2021 | 13-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 1,089,335 | $ | 1,431,205 | $ | (341,870) | (23.9) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | (1,285) | (1,403) | 118 | (8.4) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 21,669 | (107,230) | 128,899 | (120.2) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 1,109,719 | $ | 1,322,572 | $ | (212,853) | (16.1) | % | |||||||||||||||
Operating income (GAAP) | $ | 545,502 | $ | 464,173 | $ | 81,329 | 17.5 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 1,285 | 1,403 | (118) | (8.4) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (21,669) | 107,230 | (128,899) | (120.2) | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 525,118 | $ | 572,806 | $ | (47,688) | (8.3) | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 1,723,126 | $ | 2,508,642 | $ | (785,516) | (31.3) | % | |||||||||||||||
Impact of currency fluctuations (3) | (103,338) | — | (103,338) | 4.1 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 1,619,788 | $ | 2,508,642 | $ | (888,854) | (35.4) | % | |||||||||||||||
Gross Profit (GAAP) | $ | 325,200 | $ | 500,929 | $ | (175,729) | (35.1) | % | |||||||||||||||
Impact of currency fluctuations (3) | (20,660) | — | (20,660) | 4.1 | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 304,540 | $ | 500,929 | $ | (196,389) | (39.2) | % | |||||||||||||||
Gross Margin (GAAP) | 18.87 | % | 19.97 | % | -110 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.07 | — | 7 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 18.80 | % | 19.97 | % | -117 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 446,687 | $ | 584,715 | $ | (138,028) | (23.6) | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (18,635) | (25,180) | 6,545 | (26.0) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (5) | (18,834) | (17,321) | (1,513) | 8.7 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 8,357 | (46,269) | 54,626 | (118.1) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 417,575 | 495,945 | (78,370) | (15.8) | |||||||||||||||||||
Impact of currency fluctuations (3) | (28,811) | — | (28,811) | 5.8 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 388,764 | $ | 495,945 | $ | (107,181) | (21.6) | % | |||||||||||||||
Operating loss (GAAP) | $ | (121,487) | $ | (83,786) | $ | (37,701) | (45.0) | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | 18,635 | 25,180 | (6,545) | (26.0) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (5) | 18,834 | 17,321 | 1,513 | 8.7 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (8,357) | 46,269 | (54,626) | (118.1) | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | (92,375) | 4,984 | (97,359) | NM | |||||||||||||||||||
Impact of currency fluctuations (3) | 8,151 | — | 8,151 | NM | |||||||||||||||||||
Comparable operating (loss) income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | (84,224) | $ | 4,984 | $ | (89,208) | NM | ||||||||||||||||
SYGMA | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 120,541 | $ | 108,590 | $ | 11,951 | 11.0 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | — | (122) | 122 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 120,541 | $ | 108,468 | $ | 12,073 | 11.1 | % | |||||||||||||||
Operating income (GAAP) | $ | 12,937 | $ | 10,301 | $ | 2,636 | 25.6 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | — | 122 | (122) | NM | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 12,937 | $ | 10,423 | $ | 2,514 | 24.1 | % | |||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 32,027 | $ | 75,051 | $ | (43,024) | (57.3) | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | 3,447 | — | 3,447 | NM | |||||||||||||||||||
Impact of goodwill impairment | — | (11,660) | 11,660 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 35,474 | $ | 63,391 | $ | (27,917) | (44.0) | % | |||||||||||||||
Operating (loss) income (GAAP) | $ | 5,884 | $ | (19,051) | $ | 24,935 | 130.9 | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | (3,447) | — | (3,447) | NM | |||||||||||||||||||
Impact of goodwill impairment | — | 11,660 | (11,660) | NM | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | $ | 2,437 | $ | (7,391) | $ | 9,828 | 133.0 | % | |||||||||||||||
CORPORATE | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 198,161 | $ | 304,405 | $ | (106,244) | (34.9) | % | |||||||||||||||
Impact of restructuring and transformational project costs (6) | (15,033) | (50,490) | 35,457 | (70.2) | |||||||||||||||||||
Impact of goodwill impairment | — | (57,065) | 57,065 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 183,128 | $ | 196,850 | $ | (13,722) | (7.0) | % | |||||||||||||||
Operating loss (GAAP) | $ | (206,919) | $ | (311,363) | $ | 104,444 | 33.5 | % | |||||||||||||||
Impact of restructuring and transformational project costs (6) | 15,033 | 50,490 | (35,457) | (70.2) | |||||||||||||||||||
Impact of goodwill impairment | — | 57,065 | (57,065) | NM | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (191,886) | $ | (203,808) | $ | 11,922 | 5.8 | % | |||||||||||||||
(1) | Includes charges related to restructuring and business transformation projects. | ||||
(2) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring, severance and facility closure costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense from the Brakes Acquisition. | ||||
(6) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
NM represents that the percentage change is not meaningful. |
39-Week Period Ended Mar. 27, 2021 | 39-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
U.S. FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 3,174,704 | $ | 4,126,576 | $ | (951,872) | (23.1) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | (4,010) | (9,208) | 5,198 | (56.5) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 123,225 | (107,230) | 230,455 | (214.9) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 3,293,919 | $ | 4,010,138 | $ | (716,219) | (17.9) | % | |||||||||||||||
Operating income (GAAP) | $ | 1,619,162 | $ | 1,962,595 | $ | (343,433) | (17.5) | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 4,010 | 9,208 | (5,198) | (56.5) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (123,225) | 107,230 | (230,455) | (214.9) | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 1,499,947 | $ | 2,079,033 | $ | (579,086) | (27.9) | % | |||||||||||||||
INTERNATIONAL FOODSERVICE OPERATIONS | |||||||||||||||||||||||
Sales (GAAP) | $ | 5,854,608 | $ | 8,311,081 | $ | (2,456,473) | (29.6) | % | |||||||||||||||
Impact of currency fluctuations (3) | (197,380) | — | (197,380) | 2.4 | |||||||||||||||||||
Comparable sales using a constant currency basis (Non-GAAP) | $ | 5,657,228 | $ | 8,311,081 | $ | (2,653,853) | (31.9) | % | |||||||||||||||
Gross Profit (GAAP) | $ | 1,149,438 | $ | 1,692,153 | $ | (542,715) | (32.1) | % | |||||||||||||||
Impact of currency fluctuations (3) | (43,631) | — | (43,631) | 2.6 | |||||||||||||||||||
Comparable gross profit using a constant currency basis (Non-GAAP) | $ | 1,105,807 | $ | 1,692,153 | $ | (586,346) | (34.7) | % | |||||||||||||||
Gross Margin (GAAP) | 19.63 | % | 20.36 | % | -73 bps | ||||||||||||||||||
Impact of currency fluctuations (3) | 0.09 | — | 9 bps | ||||||||||||||||||||
Comparable gross margin using a constant currency basis (Non-GAAP) | 19.55 | % | 20.36 | % | -81 bps | ||||||||||||||||||
Operating expenses (GAAP) | $ | 1,351,411 | $ | 1,686,258 | $ | (334,847) | (19.9) | % | |||||||||||||||
Impact of restructuring and transformational project costs (4) | (52,033) | (74,302) | 22,269 | (30.0) | |||||||||||||||||||
Impact of acquisition-related intangible amortization (5) | (54,714) | (51,543) | (3,171) | 6.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | 33,583 | (46,269) | 79,852 | (172.6) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | 1,278,247 | 1,514,144 | (235,897) | (15.6) | |||||||||||||||||||
Impact of currency fluctuations (3) | (56,263) | — | (56,263) | 3.7 | |||||||||||||||||||
Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | 1,221,984 | $ | 1,514,144 | $ | (292,160) | (19.3) | % | |||||||||||||||
Operating (loss) income (GAAP) | $ | (201,973) | $ | 5,895 | $ | (207,868) | NM | ||||||||||||||||
Impact of restructuring and transformational project costs (4) | 52,033 | 74,302 | (22,269) | (30.0) | % | ||||||||||||||||||
Impact of acquisition-related intangible amortization (5) | 54,714 | 51,543 | 3,171 | 6.2 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (33,583) | 46,269 | (79,852) | (172.6) | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | (128,809) | 178,009 | (306,818) | (172.4) | |||||||||||||||||||
Impact of currency fluctuations (3) | 12,632 | — | 12,632 | (7.1) | |||||||||||||||||||
Comparable operating (loss) income adjusted for Certain Items using a constant currency basis (Non-GAAP) | $ | (116,177) | $ | 178,009 | $ | (294,186) | (165.3) | % | |||||||||||||||
SYGMA | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 358,361 | $ | 341,316 | $ | 17,045 | 5.0 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | (7) | (3,662) | 3,655 | (99.8) | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 358,354 | $ | 337,654 | $ | 20,700 | 6.1 | % | |||||||||||||||
Operating income (GAAP) | $ | 35,957 | $ | 27,732 | $ | 8,225 | 29.7 | % | |||||||||||||||
Impact of restructuring and transformational project costs (1) | 7 | 3,662 | (3,655) | (99.8) | |||||||||||||||||||
Operating income adjusted for Certain Items (Non-GAAP) | $ | 35,964 | $ | 31,394 | $ | 4,570 | 14.6 | % | |||||||||||||||
OTHER | |||||||||||||||||||||||
Operating expenses (GAAP) | $ | 109,247 | $ | 193,762 | $ | (84,515) | (43.6) | % | |||||||||||||||
Impact of bad debt reserve adjustments (2) | 5,564 | — | 5,564 | NM | |||||||||||||||||||
Impact of goodwill impairment | — | (11,660) | 11,660 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 114,811 | $ | 182,102 | $ | (67,291) | (37.0) | % | |||||||||||||||
Operating income (GAAP) | $ | 4,861 | $ | 486 | $ | 4,375 | NM | ||||||||||||||||
Impact of bad debt reserve adjustments (2) | (5,564) | — | (5,564) | NM | |||||||||||||||||||
Impact of goodwill impairment | — | 11,660 | (11,660) | NM | |||||||||||||||||||
Operating (loss) income adjusted for Certain Items (Non-GAAP) | $ | (703) | $ | 12,146 | $ | (12,849) | (105.8) | % | |||||||||||||||
CORPORATE | |||||||||||||||||||||||
Gross Profit | $ | (10,759) | $ | (8,611) | $ | (2,148) | (24.9) | % | |||||||||||||||
Operating expenses (GAAP) | $ | 579,690 | $ | 707,012 | $ | (127,322) | (18.0) | ||||||||||||||||
Impact of restructuring and transformational project costs (6) | (39,028) | (103,850) | 64,822 | (62.4) | |||||||||||||||||||
Impact of goodwill impairment | — | (57,065) | 57,065 | NM | |||||||||||||||||||
Operating expenses adjusted for Certain Items (Non-GAAP) | $ | 540,662 | $ | 546,097 | $ | (5,435) | (1.0) | % | |||||||||||||||
Operating loss (GAAP) | $ | (590,449) | $ | (715,623) | $ | 125,174 | 17.5 | % | |||||||||||||||
Impact of restructuring and transformational project costs (6) | 39,028 | 103,850 | (64,822) | (62.4) | |||||||||||||||||||
Impact of goodwill impairment | — | 57,065 | (57,065) | NM | |||||||||||||||||||
Operating loss adjusted for Certain Items (Non-GAAP) | $ | (551,421) | $ | (554,708) | $ | 3,287 | 0.6 | % | |||||||||||||||
(1) | Includes charges related to restructuring and business transformation projects. | ||||
(2) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. | ||||
(3) | Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. | ||||
(4) | Includes restructuring, severance and facility closure costs primarily in Europe. | ||||
(5) | Represents intangible amortization expense from the Brakes Acquisition. | ||||
(6) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy. | ||||
NM represents that the percentage change is not meaningful. |
13-Week Period Ended Mar. 27, 2021 | 13-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (loss) (GAAP) | $ | 88,927 | $ | (3,297) | $ | 92,224 | NM | ||||||||||||||||
Interest (GAAP) | 145,773 | 83,854 | 61,919 | 73.8 | % | ||||||||||||||||||
Income taxes (GAAP) | 13,925 | (25,483) | 39,408 | (154.6) | |||||||||||||||||||
Depreciation and amortization (GAAP) | 177,139 | 186,172 | (9,033) | (4.9) | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 425,764 | $ | 241,246 | $ | 184,518 | 76.5 | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of restructuring and transformational project costs (1) | 34,301 | 74,656 | (40,355) | (54.1) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (33,473) | 153,499 | (186,972) | (121.8) | |||||||||||||||||||
Impact of goodwill impairment | — | 68,725 | (68,725) | NM | |||||||||||||||||||
Impact of loss on sale of businesses | 10,790 | — | 10,790 | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) | $ | 437,382 | $ | 538,126 | $ | (100,744) | (18.7) | % |
(1) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(2) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. |
39-Week Period Ended Mar. 27, 2021 | 39-Week Period Ended Mar. 28, 2020 | Change in Dollars | % Change | ||||||||||||||||||||
Net earnings (GAAP) | $ | 373,116 | $ | 833,894 | $ | (460,778) | (55.3) | % | |||||||||||||||
Interest (GAAP) | 438,988 | 243,951 | 195,037 | 79.9 | |||||||||||||||||||
Income taxes (GAAP) | 69,594 | 195,735 | (126,141) | (64.4) | |||||||||||||||||||
Depreciation and amortization (GAAP) | 542,471 | 558,588 | (16,117) | (2.9) | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 1,424,169 | $ | 1,832,168 | $ | (407,999) | (22.3) | % | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of restructuring and transformational project costs (1) | 89,253 | 174,066 | (84,813) | (48.7) | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (162,372) | 153,499 | (315,871) | (205.8) | |||||||||||||||||||
Impact of goodwill impairment | — | 68,725 | (68,725) | NM | |||||||||||||||||||
Impact of loss on sale of businesses | 22,834 | — | 22,834 | NM | |||||||||||||||||||
EBITDA adjusted for Certain Items (Non-GAAP) | $ | 1,373,884 | $ | 2,228,458 | $ | (854,574) | (38.3) | % |
(1) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(2) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. |
13-Week Period Ended | 39-Week Period Ended | ||||||||||||||||||||||
Sep. 26, 2020 | Dec. 26, 2020 | Mar. 27, 2021 | Mar. 27, 2021 | ||||||||||||||||||||
Net earnings (GAAP) | $ | 216,900 | $ | 67,289 | $ | 88,927 | $ | 373,116 | |||||||||||||||
Interest (GAAP) | 146,717 | 146,498 | 145,773 | 438,988 | |||||||||||||||||||
Income taxes (GAAP) | 41,838 | 13,831 | 13,925 | 69,594 | |||||||||||||||||||
Depreciation and amortization (GAAP) | 180,521 | 184,811 | 177,139 | 542,471 | |||||||||||||||||||
EBITDA (Non-GAAP) | $ | 585,976 | $ | 412,429 | $ | 425,764 | $ | 1,424,169 | |||||||||||||||
Certain Item adjustments: | |||||||||||||||||||||||
Impact of restructuring and transformational project costs (1) | 25,278 | 29,674 | 34,301 | 89,253 | |||||||||||||||||||
Impact of bad debt reserve adjustments (2) | (98,628) | (30,271) | (33,473) | (162,372) | |||||||||||||||||||
Impact of loss on sale of businesses | 12,044 | — | 10,790 | 22,834 | |||||||||||||||||||
EBITDA adjusted for certain items (Non-GAAP) | $ | 524,670 | $ | 411,832 | $ | 437,382 | $ | 1,373,884 |
(1) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(2) | Fiscal 2021 represents the reduction of bad debt charges previously taken on pre-pandemic trade receivable balances in fiscal 2020. |
13-Week Period Ended | 52-Week Period Ended | ||||||||||||||||||||||||||||
Sep. 28, 2019 | Dec. 28, 2019 | Mar. 28, 2020 | June 27, 2020 | June 27, 2020 | |||||||||||||||||||||||||
Net earnings (loss) (GAAP) | $ | 453,781 | $ | 383,410 | $ | (3,297) | $ | (618,419) | $ | 215,475 | |||||||||||||||||||
Interest (GAAP) | 83,335 | 76,762 | 83,854 | 164,269 | 408,220 | ||||||||||||||||||||||||
Income taxes (GAAP) | 128,090 | 93,128 | (25,483) | (117,826) | 77,909 | ||||||||||||||||||||||||
Depreciation and amortization (GAAP) | 187,405 | 185,011 | 186,172 | 247,177 | 805,765 | ||||||||||||||||||||||||
EBITDA (Non-GAAP) | $ | 852,611 | $ | 738,311 | $ | 241,246 | $ | (324,799) | $ | 1,507,369 | |||||||||||||||||||
Certain Item adjustments : | |||||||||||||||||||||||||||||
Impact of restructuring and transformational project costs (1) | 45,546 | 53,864 | 74,656 | 116,218 | 290,284 | ||||||||||||||||||||||||
Impact of bad debt reserve adjustments (2) | — | — | 153,499 | 169,903 | 323,402 | ||||||||||||||||||||||||
Impact of goodwill impairment | — | — | 68,725 | 134,481 | 203,206 | ||||||||||||||||||||||||
Impact of loss on assets held for sale | — | — | — | 46,968 | 46,968 | ||||||||||||||||||||||||
EBITDA adjusted for certain items (Non-GAAP) | $ | 898,157 | $ | 792,175 | $ | 538,126 | $ | 142,771 | $ | 2,371,229 |
(1) | Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy, excluding charges related to accelerated depreciation. | ||||
(2) | Fiscal 2020 represents excess bad debt charges recognized on the increase in past due receivables arising from the COVID-19 pandemic. |
39-Week Period Ended Mar. 27, 2021 | 39-Week Period Ended Mar. 28, 2020 | ||||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities (GAAP) | $ | 1,479,784 | $ | 1,078,469 | |||||||
Additions to plant and equipment | (251,167) | (603,865) | |||||||||
Proceeds from sales of plant and equipment | 19,308 | 13,245 | |||||||||
Free Cash Flow (Non-GAAP) | $ | 1,247,925 | $ | 487,849 |
Combined Parent and Guarantor Subsidiaries Summarized Balance Sheet | Mar. 27, 2021 | Jun. 27, 2020 | ||||||||||||
(In thousands) | ||||||||||||||
ASSETS | ||||||||||||||
Receivables due from non-obligor subsidiaries | $ | 95,909 | $ | 133,195 | ||||||||||
Current assets | 8,014,301 | 8,644,084 | ||||||||||||
Total current assets | $ | 8,110,210 | $ | 8,777,279 | ||||||||||
Notes receivable from non-obligor subsidiaries | $ | 83,237 | $ | 671,500 | ||||||||||
Other noncurrent assets | 3,829,511 | 4,036,312 | ||||||||||||
Total noncurrent assets | $ | 3,912,748 | $ | 4,707,812 | ||||||||||
LIABILITIES | ||||||||||||||
Payables due to non-obligor subsidiaries | $ | 60,157 | $ | 48,923 | ||||||||||
Other current liabilities | 2,092,572 | 2,200,422 | ||||||||||||
Total current liabilities | $ | 2,152,729 | $ | 2,249,345 | ||||||||||
Notes payable to non-obligor subsidiaries | $ | 174,721 | $ | 233,158 | ||||||||||
Long-term debt | 11,294,864 | 12,478,453 | ||||||||||||
Other noncurrent liabilities | 1,293,973 | 1,356,781 | ||||||||||||
Total noncurrent liabilities | $ | 12,763,558 | $ | 14,068,392 |
Combined Parent and Guarantor Subsidiaries Summarized Results of Operations | 39-Week Period Ended Mar. 27, 2021 | |||||||
(In thousands) | ||||||||
Sales | $ | 22,330,517 | ||||||
Gross profit | 4,235,396 | |||||||
Operating income | 1,138,838 | |||||||
Interest expense from non-obligor subsidiaries | 41,594 | |||||||
Net earnings | 603,804 |
ISSUER PURCHASES OF EQUITY SECURITIES | |||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
Month #1 | |||||||||||||||||||||||
December 27 - January 23 | 1,673 | $ | 72.77 | 121,744 | — | ||||||||||||||||||
Month #2 | |||||||||||||||||||||||
January 24 - February 20 | — | — | — | — | |||||||||||||||||||
Month #3 | |||||||||||||||||||||||
February 21 - March 27 | 2,461 | 81.20 | 199,843 | — | |||||||||||||||||||
Totals | 4,134 | $ | 77.79 | 321,587 | — |
3.1 | — | |||||||
3.2 | — | |||||||
3.3 | — | |||||||
3.4 | — | |||||||
22.1 | — | |||||||
31.1# | — | |||||||
31.2# | — | |||||||
32.1# | — | |||||||
32.2# | — | |||||||
101.SCH# | — | Inline XBRL Taxonomy Extension Schema Document | ||||||
101.CAL# | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.DEF# | — | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB# | — | Inline XBRL Taxonomy Extension Labels Linkbase Document | ||||||
101.PRE# | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Sysco Corporation | ||||||||
(Registrant) | ||||||||
Date: May 4, 2021 | By: | /s/ KEVIN P. HOURICAN | ||||||
Kevin P. Hourican | ||||||||
President and Chief Executive Officer | ||||||||
Date: May 4, 2021 | By: | /s/ AARON E. ALT | ||||||
Aaron E. Alt | ||||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
Date: May 4, 2021 | By: | /s/ ANITA A. ZIELINSKI | ||||||
Anita A. Zielinski | ||||||||
Senior Vice President and | ||||||||
Chief Accounting Officer |
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 27, 2021 |
Jun. 27, 2020 |
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Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 211,607 | $ 334,810 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,500,000 | 1,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 765,174,900 | 765,174,900 |
Treasury stock (in shares) | 253,817,013 | 256,915,825 |
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Income Statement [Abstract] | ||||
Sales | $ 11,824,589 | $ 13,698,699 | $ 35,160,950 | $ 44,026,746 |
Cost of sales | 9,701,921 | 11,134,459 | 28,719,979 | 35,690,737 |
Gross profit | 2,122,668 | 2,564,240 | 6,440,971 | 8,336,009 |
Operating expenses | 1,886,751 | 2,503,966 | 5,573,413 | 7,054,924 |
Operating income | 235,917 | 60,274 | 867,558 | 1,281,085 |
Interest expense | 145,773 | 83,854 | 438,988 | 243,951 |
Other (income) expense, net | (12,708) | 5,200 | (14,140) | 7,505 |
Earnings (loss) before income taxes | 102,852 | (28,780) | 442,710 | 1,029,629 |
Income taxes | 13,925 | (25,483) | 69,594 | 195,735 |
Net earnings (loss) | $ 88,927 | $ (3,297) | $ 373,116 | $ 833,894 |
Net earnings (loss): | ||||
Basic earnings per share (in dollars per share) | $ 0.17 | $ (0.01) | $ 0.73 | $ 1.63 |
Diluted earnings per share (in dollars per share) | $ 0.17 | $ (0.01) | $ 0.73 | $ 1.62 |
Average shares outstanding (in shares) | 511,110,670 | 508,745,253 | 510,081,610 | 510,729,277 |
Diluted shares outstanding (in shares) | 514,585,129 | 512,657,657 | 512,688,895 | 515,632,815 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 88,927 | $ (3,297) | $ 373,116 | $ 833,894 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 9,805 | (151,143) | 345,452 | (122,347) |
Items presented net of tax: | ||||
Amortization of cash flow hedges | 2,191 | 2,155 | 6,501 | 6,465 |
Change in net investment hedges | 9,388 | 57,069 | (22,539) | 45,590 |
Change in cash flow hedges | 9,135 | (16,751) | 8,503 | (22,289) |
Amortization of prior service cost | 137 | 1,428 | 411 | 4,284 |
Amortization of actuarial loss | 7,820 | 8,029 | 23,378 | 21,937 |
Change in marketable securities | (2,753) | 20 | (3,271) | 567 |
Total other comprehensive income (loss) | 35,723 | (99,193) | 358,435 | (65,793) |
Comprehensive income (loss) | $ 124,650 | $ (102,490) | $ 731,551 | $ 768,101 |
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.45 | $ 0.45 | $ 1.35 | $ 1.29 |
BASIS OF PRESENTATION |
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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. The financial statements include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income (loss), changes in consolidated shareholders’ equity 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 (loss), cash flows and changes in shareholders’ equity 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 Annual Report on Form 10-K for the fiscal year ended June 27, 2020. Sysco’s fiscal year ends on the Saturday nearest to June 30th. This results in a 53-week year ending July 3, 2021 for fiscal 2021. 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. 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 amounts shown in the consolidated statement of cash flows:
(1)Restricted cash 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 each consolidated balance sheet.
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CHANGES IN ACCOUNTING |
9 Months Ended |
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Mar. 27, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
CHANGES IN ACCOUNTING | CHANGES IN ACCOUNTING Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. Sysco adopted this ASU as of June 28, 2020, the first day of fiscal 2021, with no significant impact to the company’s financial statements. 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. Sysco adopted this ASU on June 28, 2020 on a prospective basis with no effect on the company’s financial statements.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE The company recognizes revenues when its performance obligations are satisfied in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods and services. 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 receivable, less allowances in the consolidated balance sheet, were $3.0 billion and $2.7 billion as of March 27, 2021 and June 27, 2020, 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. As of March 27, 2021, Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract. The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented:
(1)Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares.
(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.
(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.
(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. Credit Risk Sysco is potentially subject to group concentrations of credit risk with respect to accounts receivable, as large amounts of the company’s trade receivables are concentrated on customers within the food away from home industry. The prolonged disruption of Sysco’s customers’ businesses due to the COVID-19 pandemic has created additional bad debt risk for the company. Many of Sysco’s customers, including those in the restaurant, hospitality and education segments, have been operating at a substantially reduced volume due to governmental requirements for closures or other social-distancing measures, and a portion of Sysco’s customers have been closed. Some of these customers have ceased paying their outstanding receivables, creating uncertainty as to their collectability. Sysco determines the past due status of trade receivables based on contractual terms with each customer, evaluates the collectability of accounts receivable to determine an appropriate allowance for doubtful accounts. To calculate an allowance for doubtful accounts, the company estimates uncollectible amounts based on historical loss experience, including those experienced during times of local and regional disasters, current conditions and collection rates, and expectations regarding future losses. The COVID-19 pandemic is more widespread and longer in duration than historical events impacting Sysco’s business, and it is possible that actual uncollectible amounts will differ from historical results. In the first 39 weeks of fiscal 2021, Sysco recognized a net $137.7 million benefit on its allowance for credit losses on receivables. In the third and fourth quarters of fiscal 2020, the company experienced an increase in past due receivables and recognized additional bad debt charges on its trade receivables that were outstanding at the time the pandemic caused closures among our customers in mid-March 2020. These receivables were all created in fiscal 2020 and are referred to as pre-pandemic receivables. In the first 39 weeks of fiscal 2021, collections of the company’s pre-pandemic receivables have improved, partially from restaurant reopenings, volume improvements and Sysco’s improved credit processes. As a result, the company’s allowance for credit losses has been reduced accordingly, resulting in a $162.4 million benefit. Additional allowances of $24.7 million were recorded in the first 39 weeks of fiscal 2021 for receivables relating to periods beginning after the onset of the COVID-19 pandemic. Below is a summary of the activity in the allowance for credit losses for trade receivables for the first 39 weeks of fiscal 2021:
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FAIR VALUE MEASUREMENTS |
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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. •Fixed income securities are valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. •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 marketable securities are all measured using inputs that are considered a Level 2 measurement, as they rely on quoted prices in markets that are not actively traded or observable inputs over the full term of the asset. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 5, “Marketable Securities.” 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 6, “Derivative Financial Instruments.” The following tables present the company’s assets measured at fair value on a recurring basis as of March 27, 2021 and June 27, 2020:
(1)Represents restricted cash balance recorded within other assets in the consolidated balance sheet.
(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 $14.7 billion and $16.3 billion as of March 27, 2021 and June 27, 2020, respectively. The carrying value of total debt was $12.7 billion and $14.4 billion as of March 27, 2021 and June 27, 2020, respectively.
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MARKETABLE SECURITIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES Sysco invests a portion of the assets held by its wholly owned captive insurance subsidiary in a restricted investment portfolio of marketable fixed income securities, which have been classified and accounted for as available-for-sale. The company includes fixed income securities maturing in less than twelve months within prepaid expenses and other current assets and includes fixed income securities maturing in more than twelve months within other assets in the accompanying consolidated balance sheets. The company records the amounts at fair market value, which is determined using quoted market prices at the end of the reporting period. ASC 326 requires Sysco to estimate lifetime expected credit losses for all available-for-sale debt securities in an unrealized loss position by assessing credit indicators, including credit ratings, for the applicable securities. If the assessment indicates that an expected credit loss exists, the company determines the portion of the unrealized loss attributable to credit deterioration and records an allowance for the expected credit loss through the consolidated results of operations. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in accumulated other comprehensive loss. There were no significant credit losses recognized in the first 39 weeks of fiscal 2021. The following table presents the company’s available-for-sale marketable securities as of March 27, 2021 and June 27, 2020:
As of March 27, 2021, the balance of available-for-sale securities by contractual maturity is shown in the following table. Within the table, maturities of fixed income securities have been allocated based upon timing of estimated cash flows. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
There were no significant realized gains or losses in marketable securities in the third quarter or the first 39 weeks of fiscal 2021.
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DERIVATIVE FINANCIAL INSTRUMENTS |
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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 the first quarter of fiscal 2021, Sysco settled some of its previously held interest rate swap contracts, which had a notional value of $750 million, due to the redemption of Sysco’s 2.60% senior notes. Hedging of foreign currency risk Sysco previously entered into cross-currency swap contracts to hedge the foreign currency transaction risk of certain intercompany loans. There were no credit-risk related contingent features associated with these swaps, which had been designated as cash flow hedges. In the first quarter of 2021, Sysco settled its cross-currency swaps, which had a notional value of £234 million. The company also uses 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 March 27, 2021 are presented below:
The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of March 27, 2021 and June 27, 2020 are as follows:
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:
The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented:
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 March 27, 2021 and March 28, 2020, presented on a pretax basis, are as follows:
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39-week periods ended March 27, 2021 and March 28, 2020, presented on a pretax basis, are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 27, 2021 are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 27, 2020 are as follows:
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DEBT |
9 Months Ended |
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Mar. 27, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The company has a $2.0 billion long-term revolving credit facility that expires on June 28, 2024, subject to extension. In March 2021, Sysco paid $700 million that was outstanding on this facility; therefore, as of March 27, 2021, there were no borrowings outstanding under this facility. Sysco has a U.S. commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion. As of March 27, 2021, there were no commercial paper issuances outstanding under this program. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. Sysco’s United Kingdom-based subsidiary, Brake Bros Limited, has a separate U.K. commercial paper program for the purpose of issuing short-term, unsecured Sterling-denominated notes in an aggregate amount not to exceed £600.0 million. In March 2021, Sysco paid £300.0 million that was outstanding under this program; therefore, as of March 27, 2021, there were £300.0 million in aggregate principal amount of notes outstanding under this commercial paper program. In April 2021, the company repaid £200 million under this program, and the remaining notes under this commercial paper program will mature on May 7, 2021. All outstanding amounts are classified within current maturities of long-term debt. During the first 39 weeks of fiscal 2021, aggregate outstanding commercial paper issuances, borrowings under our long-term revolving credit facility and short-term bank borrowings ranged from approximately $413.7 million to approximately $1.5 billion. In September 2020, Sysco redeemed all $750 million of its outstanding 2.60% senior notes prior to the October 2020 maturity utilizing a combination of cash flow from operations and net proceeds from senior note issuances in fiscal 2020.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share:
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OTHER COMPREHENSIVE INCOME |
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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, changes in marketable securities, amounts related to certain hedging arrangements and amounts related to pension and other postretirement plans. Comprehensive income was $124.7 million and comprehensive loss was $102.5 million for the third quarter of fiscal 2021 and fiscal 2020, respectively. Comprehensive income was $731.6 million and $768.1 million for the first 39 weeks of fiscal 2021 and fiscal 2020, 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:
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2021. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1) Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2021. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in cash flow hedges includes the termination of some cash flow hedges, as described in Note 6, “Derivative Financial Instruments.”
(1)Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2020. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges. The following tables provide a summary of the changes in accumulated other comprehensive (loss) income for the periods presented:
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SHARE-BASED COMPENSATION |
9 Months Ended |
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Mar. 27, 2021 | |
Share-based Payment Arrangement [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 39 weeks of fiscal 2021, options to purchase 1,975,413 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 39 weeks of fiscal 2021 was $13.72. In the first 39 weeks of fiscal 2021, 812,512 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 PSU granted during the first 39 weeks of fiscal 2021 was $59.00. The PSUs will convert into shares of Sysco common stock at the end of the two-year performance period based on actual performance targets achieved, as well as the market-based return of Sysco’s common stock relative to that of each company within the S&P 500 index. In the first 39 weeks of fiscal 2021, 945,723 restricted stock units were granted to employees. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2021 was $66.09. Employee Stock Purchase Plan Plan participants purchased 588,347 shares of common stock under the Sysco ESPP during the first 39 weeks of fiscal 2021. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $3.55 during the first 39 weeks of fiscal 2021. The fair value of each stock purchase right is estimated as the difference between the stock price at the date of issuance 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 $65.7 million and $63.9 million for the first 39 weeks of fiscal 2021 and fiscal 2020, respectively. As of March 27, 2021, there was $138.8 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 1.92 years.
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INCOME TAXES |
9 Months Ended |
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Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Effective Tax Rate The effective tax rates for the third quarter and first 39 weeks of fiscal 2021 were 13.54% and 15.72%, respectively. As compared to the company’s statutory tax rate, the lower effective tax rate for the third quarter and first 39 weeks of fiscal 2021 was impacted by (1) the favorable impact of excess tax benefits of equity-based compensation that totaled $6.0 million and $12.6 million, respectively, (2) the $7.6 million tax benefit attributable to the sale of the stock of Cake Corporation in the first quarter, and (3) the impact of changes in tax law in the U.K. of $5.5 million in the first quarter. The effective tax rates for the third quarter and first 39 weeks of fiscal 2020 were 88.54% and 19.01%, respectively. As compared to the company’s statutory tax rate, the effective tax rates for the third quarter and the first 39 weeks of fiscal 2020 were impacted by (1) the favorable impact of excess tax benefits of equity-based compensation that totaled $6.8 million and $34.3 million, respectively, and (2) the unfavorable tax effect of goodwill impairments of $17.7 million in the third quarter of fiscal 2020. Uncertain Tax Positions As of March 27, 2021, the gross amount of unrecognized tax benefit and related accrued interest was $20.4 million and $2.7 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 income earned and taxed in the various U.S. federal and state, as well as foreign jurisdictions. Tax law changes, increases or decreases in permanent book versus tax basis differences, 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 |
9 Months Ended |
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Mar. 27, 2021 | |
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. The company is pursuing claims against a variety of vendors from which the company purchased products. These matters are at different stages of the litigation process. Amounts, if any, realized from the defendants would represent gain contingencies. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and therefore, we do not recognize income until realized. To mitigate the risk of incurring significant legal fees on these claims without any ultimate gain, in calendar 2019 and 2020, the company entered into separate agreements with a third party whereby the company secured a minimum amount of cash proceeds from the third party in exchange for assigning to the third party the rights to a portion of the future litigation proceeds. In the meantime, the company must continue to pursue the specific vendor litigation, as identified in the agreement with the third party. As part of these arrangements, cash proceeds received from the third party are included in “Other long-term liabilities.” The portion of litigation proceeds in excess of the minimum that may be payable to the third party under each agreement represents a financial instrument that is measured at fair value each reporting period in accordance with the provisions of ASC 820, Fair Value Measurements, with changes recorded in the consolidated results of operations.
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BUSINESS SEGMENT INFORMATION |
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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 the company’s operations that distribute to international customers. The company’s European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden; •SYGMA – the company’s U.S. customized distribution subsidiary; and •Other – primarily our hotel supply operations, Guest Worldwide. Sysco sold its interests in Cake Corporation in the first quarter of fiscal 2021. 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. During the fourth quarter of fiscal 2020, Sysco revised the way performance is assessed for the U.S. Foodservice Operations segment. As a result of this change, charges incurred by the company’s corporate and shared services center, to provide direct support functions to the U.S. Foodservice Operations reportable segment, have been reclassified from Corporate expenses into the U.S. Foodservice reportable segment. The segment information disclosed for the first 39 weeks of fiscal 2021 reflects this change in reporting structure. The third quarter and first 39 weeks of fiscal 2020 results reflect $63.9 million and $195.6 million, respectively, of corporate expense reclassifications to conform with the current year presentation. The following tables set forth certain financial information for Sysco’s reportable business segments.
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CHANGES IN ACCOUNTING (Policies) |
9 Months Ended |
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Mar. 27, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. Sysco adopted this ASU as of June 28, 2020, the first day of fiscal 2021, with no significant impact to the company’s financial statements. 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. Sysco adopted this ASU on June 28, 2020 on a prospective basis with no effect on the company’s financial statements.
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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. •Fixed income securities are valued using evaluated bid prices based on a compilation of observable market information or a broker quote in a non-active market. Inputs used vary by type of security, but include spreads, yields, rate benchmarks, rate of prepayment, cash flows, rating changes and collateral performance and type. •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 marketable securities are all measured using inputs that are considered a Level 2 measurement, as they rely on quoted prices in markets that are not actively traded or observable inputs over the full term of the asset. The location and the fair value of the company’s marketable securities in the consolidated balance sheet are disclosed in Note 5, “Marketable Securities.” 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 6, “Derivative Financial Instruments.”
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BASIS OF PRESENTATION (Tables) |
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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 amounts shown in the consolidated statement of cash flows:
(1)Restricted cash 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 each consolidated balance sheet.
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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 amounts shown in the consolidated statement of cash flows:
(1)Restricted cash 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 each consolidated balance sheet.
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REVENUE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment, and other janitorial products, medical supplies and smallwares.
(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.
(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.
(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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Summary of the Activity in the Allowance for Credit Losses | Below is a summary of the activity in the allowance for credit losses for trade receivables for the first 39 weeks of fiscal 2021:
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 27, 2021 and June 27, 2020:
(1)Represents restricted cash balance recorded within other assets in the consolidated balance sheet.
(1)Represents restricted cash balance recorded within other assets in the consolidated balance sheet.
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MARKETABLE SECURITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale marketable securities | The following table presents the company’s available-for-sale marketable securities as of March 27, 2021 and June 27, 2020:
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Available-for-sale debt securities held to actual maturity | As of March 27, 2021, the balance of available-for-sale securities by contractual maturity is shown in the following table. Within the table, maturities of fixed income securities have been allocated based upon timing of estimated cash flows. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of March 27, 2021 are presented below:
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Derivatives balance sheet location table | The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of March 27, 2021 and June 27, 2020 are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of March 27, 2021 are as follows:
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 27, 2020 are as follows:
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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:
The losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented:
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 March 27, 2021 and March 28, 2020, presented on a pretax basis, are as follows:
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the 39-week periods ended March 27, 2021 and March 28, 2020, presented on a pretax basis, are as follows:
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EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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OTHER COMPREHENSIVE INCOME (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2021. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1)Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2020. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(1) Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2021. (2) Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in cash flow hedges includes the termination of some cash flow hedges, as described in Note 6, “Derivative Financial Instruments.”
(1)Realized gains or losses on marketable securities are presented within Other (income) expense, net in the Consolidated Results of Operations; however, there were no significant gains or losses realized in the first 39 weeks of fiscal 2020. (2)Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges. (3) Change in net investment hedges includes the termination of some net investment hedges.
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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:
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BUSINESS SEGMENT INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business segment table | The following tables set forth certain financial information for Sysco’s reportable business segments.
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BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands |
Mar. 27, 2021 |
Jun. 27, 2020 |
Mar. 28, 2020 |
Jun. 29, 2019 |
---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 4,895,723 | $ 6,059,427 | $ 2,240,807 | |
Restricted cash | 29,309 | 43,740 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 4,925,032 | $ 6,095,570 | $ 2,284,547 | $ 532,245 |
REVENUE - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Jun. 27, 2020 |
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Revenue from Contract with Customer [Abstract] | |||
Customer receivables included in accounts and notes receivable, net | $ 3,000,000 | $ 2,700,000 | |
Provision for losses on receivables | (137,670) | $ 213,769 | |
Benefit on its provision for losses on receivables | 162,400 | ||
Provision and other credit losses | $ 24,700 |
REVENUE - Summary of the Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
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Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 334,810 | |
Adjustments to costs and expenses | (137,670) | $ 213,769 |
Recoveries, net of customer accounts written off | 28,569 | |
Other adjustments | (14,102) | |
Balance at end of period | $ 211,607 |
FAIR VALUE MEASUREMENTS - Fair Value On Recurring Basis (Details) - Recurring Fair Value Measurements - USD ($) $ in Thousands |
Mar. 27, 2021 |
Jun. 27, 2020 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 4,556,733 | $ 5,545,687 |
Other assets | 29,309 | 36,143 |
Total assets at fair value | 4,586,042 | 5,581,830 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,406,267 | 5,245,487 |
Other assets | 29,309 | 36,143 |
Total assets at fair value | 4,435,576 | 5,281,630 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 150,466 | 300,200 |
Other assets | 0 | 0 |
Total assets at fair value | 150,466 | 300,200 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions |
Mar. 27, 2021 |
Jun. 27, 2020 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 14.7 | $ 16.3 |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 12.7 | $ 14.4 |
MARKETABLE SECURITIES - ACTUAL MATURITIES (Details) - USD ($) $ in Thousands |
Mar. 27, 2021 |
Jun. 27, 2020 |
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Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less | $ 14,668 | |
Due after one year through five years | 65,491 | |
Due after five years through ten years | 45,861 | |
Amortized Cost Basis | $ 126,020 | $ 116,267 |
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) £ in Millions |
Sep. 30, 2020 |
Sep. 26, 2020
USD ($)
|
Sep. 26, 2020
GBP (£)
|
---|---|---|---|
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Value | $ | $ 750,000,000 | ||
Cross-currency swaps | |||
Derivative [Line Items] | |||
Notional Value | £ | £ 234 | ||
Senior Notes | 2.60% Senior Notes | |||
Derivative [Line Items] | |||
Interest rate | 2.60% | 2.60% | 2.60% |
DERIVATIVE FINANCIAL INSTRUMENTS - Hedging of Debt Portfolio (Details) - 9 months ended Mar. 27, 2021 € in Millions, kr in Millions, gal in Millions, $ in Millions |
USD ($)
gal
|
EUR (€) |
SEK (kr) |
---|---|---|---|
Interest rate swap, July 2021 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional Value | $ | $ 500 | ||
Interest rate swap, June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional Value | € | € 500 | ||
Interest rate swap, March 2025 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional Value | $ | $ 500 | ||
Foreign Currency Interest Rate, Various Maturity Dates | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional Value | kr | kr 55 | ||
Hedging of foreign currency risk, Euro, June 2023 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional Value | € | € 500 | ||
Fuel swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount (in gallons) | gal | 34 |
DERIVATIVE FINANCIAL INSTRUMENTS - Location of Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Derivative [Line Items] | ||||
Interest expense | $ 145,773 | $ 83,854 | $ 438,988 | $ 243,951 |
Interest expense | (9,737) | (14,562) | (34,306) | (43,679) |
Increase (decrease) in fair value of debt | (11,834) | 38,380 | (22,612) | 39,348 |
Hedging Instrument | Fair Value Hedging | Interest rate swaps | Interest expense | ||||
Derivative [Line Items] | ||||
Hedged items | 2,097 | (52,942) | (11,694) | (83,027) |
Derivatives designated as hedging instruments | $ (6,239) | $ 38,923 | $ (3,078) | $ 38,532 |
DERIVATIVE FINANCIAL INSTRUMENTS - Location of Hedged Liabilities (Details) - USD ($) $ in Thousands |
Mar. 27, 2021 |
Jun. 27, 2020 |
---|---|---|
Current maturities of long-term debt | ||
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | $ (499,878) | $ (749,924) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | (1,292) | (1,388) |
Long-term debt | ||
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets (Liabilities) | (1,065,015) | (1,563,636) |
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities) | $ (47,723) | $ (70,239) |
EARNINGS PER SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Numerator: | ||||
Net earnings (loss) | $ 88,927 | $ (3,297) | $ 373,116 | $ 833,894 |
Denominator: | ||||
Weighted-average basic shares outstanding (in shares) | 511,110,670 | 508,745,253 | 510,081,610 | 510,729,277 |
Dilutive effect of share-based awards (in shares) | 3,474,459 | 3,912,404 | 2,607,285 | 4,903,538 |
Weighted-average diluted shares outstanding (in shares) | 514,585,129 | 512,657,657 | 512,688,895 | 515,632,815 |
Basic earnings (loss) (in dollars per share) | $ 0.17 | $ (0.01) | $ 0.73 | $ 1.63 |
Diluted earnings (loss) (in dollars per share) | $ 0.17 | $ (0.01) | $ 0.73 | $ 1.62 |
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 1,893 | 4,844 | 4,763 | 3,704 |
OTHER COMPREHENSIVE INCOME - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Comprehensive income | $ 124,650,000 | $ (102,490,000) | $ 731,551,000 | $ 768,101,000 |
Realized gain (loss) | $ 0 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 27, 2021 |
Dec. 26, 2020 |
Mar. 28, 2020 |
Mar. 27, 2021 |
Mar. 28, 2020 |
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Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 13.54% | 88.54% | 15.72% | 19.01% | |
Effective income tax expense (benefit) attributable to equity-based compensation | $ 6,000 | $ 6,800 | $ 12,600 | $ 34,300 | |
Tax benefit attributable to the sale of stock | $ 7,600 | ||||
Impact of changes in tax law | 5,500 | 5,500 | |||
Goodwill impairment | 17,700 | 0 | $ 68,725 | ||
Unrecognized tax benefits | 20,400 | 20,400 | |||
Liability recorded for interest and penalties related to unrecognized tax benefits | $ 2,700 | $ 2,700 |
BUSINESS SEGMENT INFORMATION - Narrative (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2021
USD ($)
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Mar. 28, 2020
USD ($)
|
Mar. 27, 2021
USD ($)
segment
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Mar. 28, 2020
USD ($)
|
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Segment Reporting Information [Line Items] | ||||
Number of reporting segments | segment | 3 | |||
Operating expenses | $ 1,886,751 | $ 2,503,966 | $ 5,573,413 | $ 7,054,924 |
Revision of Prior Period, Reclassification, Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Operating expenses | $ 63,900 | $ 195,600 |
Label | Element | Value |
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Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201602Member |