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DEBT AND OTHER FINANCING ARRANGEMENTS
 12 Months Ended
Jul. 03, 2021
Debt Disclosure [Abstract]  
DEBT AND OTHER FINANCING ARRANGEMENTS DEBT AND OTHER FINANCING ARRANGEMENTS
Sysco’s debt consists of the following:
 Jul. 3, 2021Jun. 27, 2020
 (In thousands)
U.K. Commercial paper, interest at 0.454%, maturing in fiscal 2021 $— $740,226 
Senior notes, interest at 2.60%, maturing in fiscal 2021 (1)(2)
— 751,312 
Senior notes, interest at 2.50%, maturing in fiscal 2022 (1)(2)
— 504,352 
Senior notes, interest at 2.60%, maturing in fiscal 2022 (1)(2)
449,180 448,336 
Senior notes, interest at 1.25%, maturing in fiscal 2023 (1)(2)
598,253 568,011 
Senior notes, interest at 3.55%, maturing in fiscal 2025 (1)(2)
533,681 551,756 
Senior notes, interest at 3.65%, maturing in fiscal 2025 (1)
402,589 362,785 
Senior notes, interest at 5.65%, maturing in fiscal 2025 (1)(2)
746,186 745,241 
Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2)
748,165 747,727 
Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2)
994,916 993,978 
Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3)
43,173 44,273 
Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2)
744,827 744,046 
Debentures, interest at 6.50%, maturing in fiscal 2029 (2)
154,882 162,416 
Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2)
495,728 495,273 
Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2)
991,833 1,239,439 
Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2)
382,319 382,190 
Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2)
199,088 199,390 
Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2)
349,564 740,188 
Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2)
496,177 496,017 
Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2)
494,469 494,338 
Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2)
492,813 492,662 
Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2)
1,176,415 1,233,666 
Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2)
494,554 494,428 
Long-term revolving credit facility, at variable interest, maturing in fiscal 2024 (2)
— 694,951 
Notes payable, capital leases, and other debt, interest averaging 4.40% and maturing at various dates to fiscal 2050 as of July 3, 2021 and 4.53% and maturing at various dates to fiscal 2046 as of June 27, 202094,295 119,878 
Total debt11,083,107 14,446,879 
Less current maturities of long-term debt(486,141)(1,542,128)
Less notes payable(8,782)(2,266)
Net long-term debt$10,588,184 $12,902,485 

(1)Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption.
(2)Represents senior notes, debentures and borrowings under the company’s long-term revolving credit facility that are guaranteed by certain wholly owned U.S. Broadline subsidiaries of Sysco Corporation as discussed in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”
(3)This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity.
As of July 3, 2021, the principal and interest payments required to be made during the next five fiscal years on Sysco’s senior notes and debentures are shown below:
 Principal
Interest (1)
(In thousands)
2022$450,000 $484,793 
2023593,303 474,331 
2024— 465,614 
20251,654,138 465,583 
2026750,000 377,786 
(1)    Includes payments on floating rate debt based on rates as of July 3, 2021, assuming amount remains unchanged until maturity, and payments on fixed rate debt based on maturity dates. The impact of our outstanding fixed-to-floating interest rate swap on the fixed rate debt interest payments is included as well based on the floating rates in effect as of July 3, 2021.

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 under this facility; therefore, as of July 3, 2021, there were no borrowings outstanding under this facility. During the fourth quarter of fiscal 2020 due to worsening business conditions, Sysco entered into an amendment to the credit agreement providing for the long-term revolving credit facility, and further amended the credit agreement in the fourth quarter of fiscal 2021 due to improving business conditions to (1) adjust the covenant restricting increases to Sysco’s regular quarterly dividend to enable future increases; (2) remove access to the 364-day credit facility that the company believes it no longer needs; and (3) adjust the covenant requiring Sysco to maintain a certain ratio of consolidated earnings before interest, tax, depreciation and amortization to consolidated interest expense.

Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $2.0 billion. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. As of July 3, 2021, there were no commercial paper issuances outstanding under this U.S. program.

Sysco’s United Kingdom-based subsidiary, Brake Bros Limited, had 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. During the third and fourth quarters of fiscal 2021 the company repaid the £600.0 million prior to maturity on May 7, 2021.

Effective May 20, 2020, Sysco established a 364-day credit facility in the amount of $750.0 million. This facility expired on May 19, 2021.

During fiscal 2021, aggregate outstanding commercial paper issuances, borrowings under our long-term revolving credit facility and short-term bank borrowings ranged from no borrowings to approximately $1.5 billion.

Purchases and redemptions of senior notes and debentures

In the fourth quarter of fiscal 2021, Sysco purchased, pursuant to a tender offer, $712.4 million in combined aggregate principal amount of the following securities: its 7.160% debentures due 2027, its 6.500% debentures due 2028, its 5.950% senior notes due 2030, its 6.625% senior notes due 2039, its 6.600% senior notes due 2040 and its 6.600% senior notes due 2050. Holders of securities received an early tender payment of $50 per $1,000 principal amount of securities. Holders of such securities also received accrued and unpaid interest from, and including, the last interest payment date for their tendered securities, to but not including, the early settlement date of June 7, 2021. The tender offer transaction was considered to be a debt extinguishment. As such, Sysco recognized a loss on extinguishment of $293.9 million, which was recorded as a component of interest expense in the accompanying consolidated results of operations. Of this loss, $287.6 million was attributable to the purchase premium paid to the lenders, $4.9 million was attributable to the write-off of unamortized debt issuance costs associated with the redeemed debentures and notes, and $1.4 million was attributable to an accelerated charge on the debt discount related to these debentures and notes.

Details of the debentures and senior notes purchased are as follows:
Maturity DatePar ValueCoupon RatePrincipal amount tenderedRemaining Par Value after tender offerCash amount paid (including interest)
(Dollars in thousands)
April 15, 2027$44,276 7.160 %$1,100 $43,176 $1,429 
August 1, 2028163,054 6.500 7,639 155,415 9,957 
April 1, 20301,250,000 5.950 249,987 1,000,013 323,720 
March 17, 2039203,007 6.625 507 202,500 745 
April 1, 2040750,000 6.600 395,026 354,974 582,197 
April 1, 20501,250,000 6.600 58,123 1,191,877 90,350 

In September 2020, Sysco redeemed all $750 million of its outstanding 2.60% senior notes prior to the October 2020 maturity. In June 2021, Sysco also redeemed $500 million of its outstanding 2.50% senior notes due July 15, 2021.

As of July 3, 2021 and June 27, 2020, letters of credit outstanding were $246.5 million and $233.2 million, respectively.