REVENUE

9 Months Ended

Mar. 27, 2021

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:

	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	$	1,585,533	$	227,350	$	425,156	$	—	$	2,238,039
Canned and dry products	1,513,681		338,853		46,583		—		1,899,117
Frozen fruits, vegetables, bakery and other	1,141,919		337,477		277,766		—		1,757,162
Poultry	920,979		159,589		228,504		—		1,309,072
Dairy products	812,887		188,212		143,028		—		1,144,127
Paper and disposables	752,996		93,205		189,337		10,122		1,045,660
Fresh produce	715,406		126,965		68,074		—		910,445
Seafood	507,446		55,873		36,553		—		599,872
Beverage products	186,211		56,963		145,704		11,080		399,958
Other (1)	223,183		138,639		19,990		139,325		521,137
Total Sales	$	8,360,241	$	1,723,126	$	1,580,695	$	160,527	$	11,824,589

(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.

	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	$	1,840,655	$	348,748	$	374,531	$	—	$	2,563,934
Canned and dry products	1,747,522		516,841		28,804		—		2,293,167
Frozen fruits, vegetables, bakery and other	1,316,562		479,444		244,151		—		2,040,157
Dairy products	1,020,115		272,854		135,818		—		1,428,787
Poultry	953,741		177,661		179,833		—		1,311,235
Fresh produce	926,527		223,614		57,667		—		1,207,808
Paper and disposables	678,104		84,684		155,487		16,060		934,335
Seafood	569,922		98,212		33,269		—		701,403
Beverage products	253,683		111,105		132,430		18,681		515,899
Other (1)	280,174		195,479		22,121		204,200		701,974
Total Sales	$	9,587,005	$	2,508,642	$	1,364,111	$	238,941	$	13,698,699

(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.

	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	$	4,583,392	$	809,339	$	1,256,208	$	—	$	6,648,939
Canned and dry products	4,325,880		1,113,600		109,023		11		5,548,514
Frozen fruits, vegetables, bakery and other	3,269,395		1,158,748		809,975		—		5,238,118
Poultry	2,600,235		513,184		662,759		—		3,776,178
Dairy products	2,467,961		629,376		433,023		—		3,530,360
Paper and disposables	2,149,596		276,819		550,605		30,435		3,007,455
Fresh produce	2,123,214		443,462		199,584		—		2,766,260
Seafood	1,398,098		213,874		88,036		—		1,700,008
Beverage products	535,130		207,851		436,503		33,018		1,212,502
Other (1)	753,016		488,355		79,528		411,717		1,732,616
Total Sales	$	24,205,917	$	5,854,608	$	4,625,244	$	475,181	$	35,160,950

(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.

	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	$	5,987,431	$	1,167,126	$	1,148,493	$	—	$	8,303,050
Canned and dry products	5,508,168		1,687,732		104,646		—		7,300,546
Frozen fruits, vegetables, bakery and other	4,225,248		1,610,048		765,146		—		6,600,442
Dairy products	3,308,322		886,256		424,706		—		4,619,284
Poultry	3,108,528		605,506		584,583		—		4,298,617
Fresh produce	2,877,445		734,824		177,918		—		3,790,187
Paper and disposables	2,087,588		269,797		490,235		48,723		2,896,343
Seafood	1,857,040		367,486		81,507		—		2,306,033
Beverage products	821,092		366,006		415,215		63,922		1,666,235
Other (1)	878,353		616,300		74,549		676,807		2,246,009
Total Sales	$	30,659,215	$	8,311,081	$	4,266,998	$	789,452	$	44,026,746

(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:

	39-Week Period Ended
	Mar. 27, 2021
	(In thousands)
Balance at beginning of period	$	334,810
Adjustments to costs and expenses	(137,670)
Recoveries, net of customer accounts written off	28,569
Other adjustments	(14,102)
Balance at end of period	$	211,607