XML 61 R43.htm IDEA: XBRL DOCUMENT

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jul. 03, 2021

Defined benefit plans funded status table

The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. As Sysco’s fiscal 2021 year end is July 3, 2021, the company utilized a practical expedient permitting Sysco to measure its defined benefit plan assets and obligations as of the month end closest to the fiscal year end, and has used June 30, 2021 as the measurement date of the plan assets and obligations disclosed herein.


	U.S. Pension Benefits				International Pension Benefits
	Jul. 3, 2021		Jun. 27, 2020		Jul. 3, 2021		Jun. 27, 2020
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	5,039,718	$	4,537,648	$	414,106	$	406,697
Service cost	16,472		15,532		3,288		2,800
Interest cost	145,299		164,756		6,810		8,681
Amendments	—		(2,077)		—		661
Curtailments	—		—		(1,333)		(4,012)

Plan Combinations	—		—		—		—
Actuarial (gain) loss, net	(47,197)		464,475		(19,495)		21,157
Total disbursements	(153,294)		(140,616)		(15,480)		(11,155)
Exchange rate changes	—		—		46,555		(10,723)
Benefit obligation at end of year	5,000,998		5,039,718		434,451		414,106
Change in plan assets:
Fair value of plan assets at beginning of year	4,408,739		3,984,154		288,191		264,746
Actual return on plan assets	365,251		533,676		4,250		35,594
Employer contribution	34,067		31,525		7,892		7,141
Total disbursements	(153,294)		(140,616)		(15,480)		(11,155)
Exchange rate changes	—		—		34,763		(8,135)
Fair value of plan assets at end of year	4,654,763		4,408,739		319,616		288,191
Funded status at end of year	$	(346,235)	$	(630,979)	$	(114,835)	$	(125,915)

Defined benefit plans amounts recognized in balance sheet table

The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows:


	U.S. Pension Benefits				International Pension Benefits
	Jul. 3, 2021		Jun. 27, 2020		Jul. 3, 2021		Jun. 27, 2020
	(In thousands)
Noncurrent assets (Other assets)	$	124,453	$	—	$	—	$	—
Current accrued benefit liability (Accrued expenses)	(31,733)		(31,121)		(1,479)		(1,359)
Noncurrent accrued benefit liability (Other long-term liabilities)	(438,955)		(599,858)		(113,356)		(124,556)
Net amount recognized	$	(346,235)	$	(630,979)	$	(114,835)	$	(125,915)

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

Accumulated other comprehensive loss (income) as of July 3, 2021 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Prior service cost	$	447	$	1,130	$	1,577
Actuarial losses (gains)	1,438,775		16,026		1,454,801
Total	$	1,439,222	$	17,156	$	1,456,378

Accumulated other comprehensive loss (income) as of June 27, 2020 consists of the following amounts that had not, as of that date, been recognized in net benefit cost:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Prior service cost	$	1,176	$	781	$	1,957
Actuarial losses (gains)	1,687,105		29,733		1,716,838
Total	$	1,688,281	$	30,514	$	1,718,795

Defined benefit plans with accumulated/aggregate benefit obligation in excess of fair value of plan assets table

Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows:


	U.S. Pension Benefits (1)				International Pension Benefits
	Jul. 3, 2021		Jun. 27, 2020		Jul. 3, 2021		Jun. 27, 2020
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	470,511	$	5,025,168	$	427,028	$	407,181
Fair value of plan assets at end of year	—		4,408,739		319,616		288,191

(1)Information under Pension Benefits as of July 3, 2021 and June 27, 2020 includes both the U.S. Retirement Plan and the SERP.

Defined benefit plans components of net benefit cost table

The components of net company-sponsored pension costs for each fiscal year are as follows:


	2021				2020				2019
	U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits
	(In thousands)
Service cost	$	16,472	$	3,288	$	15,531	$	2,800	$	13,977	$	2,790
Interest cost	145,299		6,810		164,756		8,681		172,213		10,637
Expected return on plan assets	(206,406)		(7,426)		(196,249)		(10,819)		(180,624)		(11,072)
Amortization of prior service cost (credit)	729		(61)		7,537		597		8,380		(202)
Amortization of actuarial loss (gain)	42,288		250		39,483		157		35,537		(98)
Curtailment loss (gain)	—		(1,230)		—		(4,166)		—		—
Settlement loss (gain) recognized	—		—		—		—		—		109
Net pension (benefits) costs	$	(1,618)	$	1,631	$	31,058	$	(2,750)	$	49,483	$	2,164

Defined benefit plans other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income table

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows:


	2021				2020				2019
	U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits		U.S. Pension Benefits		International Pension Benefits
	(In thousands)
Amortization of prior service cost (credit)	$	729	$	(131)	$	7,537	$	422	$	8,380	$	(202)
Amortization of actuarial loss (gain)	42,288		250		39,483		157		35,537		11
Prior service cost (credit) arising in current year	—		—		2,077		(661)		—		(3,050)
Effect of exchange rates on amounts in AOCI	—		(3,254)		—		784		—		1,163
Actuarial gain (loss) arising in current year	192,041		16,493		(127,048)		3,640		(163,588)		(8,090)
Net pension cost (income)	$	235,058	$	13,358	$	(77,951)	$	4,342	$	(119,671)	$	(10,168)

Defined benefit plans amounts included accumulated other comprehensive loss (income) that are expected to be recognized in net company-sponsored benefit cost in next fiscal year table

Amounts included in accumulated other comprehensive loss (income) as of July 3, 2021 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2022 are:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Amortization of prior service cost (credit)	$	393	$	(57)	$	336
Amortization of actuarial losses (gains)	34,962		216		35,178
Total	$	35,355	$	159	$	35,514

Defined benefit plans estimated future benefit payments table

Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows:


	U.S. Pension Benefits		International Pension Benefits
	(In thousands)
2022	$	171,506	$	15,578
2023	181,064		15,799
2024	190,670		16,946
2025	200,203		18,130
2026	209,991		18,003
Subsequent five years	1,169,735		96,479

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

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


	Jul. 3, 2021		Jun. 27, 2020
Discount rate — U.S. Retirement Plan	3.12	%	2.94	%
Discount rate — SERP	2.91		2.91
Discount rate — U.K. Retirement Plan	1.90		1.60
Rate of compensation increase — U.S. Retirement Plan	2.56		2.56

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


	2021		2020		2019
Discount rate — U.S. Retirement Plan	2.94	%	3.70	%	4.28	%
Discount rate — SERP	2.91		3.62		4.41
Discount rate — U.K. Retirement Plan	1.60		2.30		2.85

Expected rate of return — U.S. Retirement Plan	4.75		5.00		5.00
Expected rate of return — U.K. Retirement Plan	2.55		4.55		4.55
Rate of compensation increase — U.S. Retirement Plan	2.56		2.56		2.62

Defined benefit plans target and actual asset allocation table

The U.S. Retirement Plan’s target and actual investment allocation as of July 3, 2021 is as follows:


	U.S. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Growth assets	30	%	29	%




Liability hedging assets	70		71
			100	%

The U.K. Retirement Plan’s target investment allocation and actual investment allocation for fiscal 2021 is as follows:


	U.K. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Common contractual fund	60	%	50	%
Liability hedging assets	40		50
			100	%

Defined benefit plans fair value of plans assets by major category table

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of July 3, 2021:


	Assets Measured at Fair Value as of Jul. 3, 2021
	Level 1		Level 2		Level 3		Measured at NAV (6)		Total
	(In thousands)
Cash and cash equivalents	$	48,581	$	76,854	$	—	$	—	$	125,435
Growth assets:
U.S. equity (1)	—		95,300		—		414,081		509,381
International equity (1)	—		—		—		393,768		393,768
Hedge fund of funds (2)	—		—		—		278,400		278,400
Real estate funds (3)	—		—		—		90,738		90,738
Private equity funds (4)	—		—		—		99,320		99,320
Liability hedging assets:

Corporate bonds	—		2,245,713		—		102,318		2,348,031
U.S. government and agency securities	—		305,111		—		475,394		780,505
Other (5)	—		29,185		—		—		29,185


Total investments at fair value	$	48,581	$	2,752,163	$	—	$	1,854,019	$	4,654,763

(1)Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of July 3, 2021. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.

(2)There were no unfunded commitments as of July 3, 2021, and there were no redemption restrictions as of July 3, 2021. The investment may be redeemed once per quarter.

(3)For investments in the funds listed in this category, total unfunded commitment as of July 3, 2021 was $2.0 million. Approximately 3% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies

from 2021 to 2026. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits.

(4)Total unfunded commitments in the funds listed in this category as of July 3, 2021 were $16.1 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2021 to 2031.

(5)Include foreign government and state and municipal debt securities.

(6)Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of July 3, 2021:


	Assets Measured at Fair Value as of Jul. 3, 2021
	Level 1		Level 2		Level 3		Measured at NAV (3)		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	20,390	$	9,269	$	—	$	—	$	29,659
U.K. government securities	—		129,521		—		—		129,521
Derivatives, net (1)	—		252		—		—		252

Investment funds:
Common contractual fund (2)	—		—		—		160,184		160,184
Total investments at fair value	$	20,390	$	139,042	$	—	$	160,184	$	319,616

(1)Include interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $5.7 million; the fair value of liability positions totaled $5.4 million.

(2)There were $12.9 million of unfunded commitments as of July 3, 2021, and there were no redemption restrictions as of July 3, 2021. The investment may be redeemed twice per month.

(3)Include certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of June 27, 2020:


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

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



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

(1)Include direct investments in equity securities and within investment funds for which fair value is measured at NAV. There are no unfunded commitments as of June 27, 2020. The remaining investments may be redeemed once per day with advanced written notice and subject to applicable limits.

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

(3)For investments in the funds listed in this category, total unfunded commitment as of June 27, 2020 was $2.0 million. Approximately 5% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2020 to 2021. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits.

(4)Total unfunded commitment as of June 27, 2020 was $16.2 million. The investments cannot be redeemed, but the fund will make distributions through liquidation. The estimate of the liquidation period varies for each fund from 2020 to 2031.

(5)Include foreign government and state and municipal debt securities.

The following table presents the fair value of the U.K. Retirement Plan’s assets by major asset category as of June 27, 2020:


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

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

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

(2)There were $14.9 million of unfunded commitments as of June 27, 2020, and there were no redemption restrictions as of June 27, 2020. The investment may be redeemed once per week.