INCOME TAXES (Tables)

12 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

Earnings before income taxes by jurisdiction table

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

	2021		2020		2019
	(In thousands)
U.S.	$	858,179	$	742,332	$	1,910,549
Foreign	(273,451)		(448,948)		95,287
Total	$	584,728	$	293,384	$	2,005,836

Income tax provision by jurisdiction table

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

	2021		2020		2019
	(In thousands)
U.S. federal income taxes	$	158,762	$	128,576	$	262,940
State and local income taxes	17,808		8,529		73,835
Foreign income taxes	(116,051)		(59,196)		(5,210)
Total	$	60,519	$	77,909	$	331,565

Income tax provision by component table

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

	2021		2020		2019
	(In thousands)
Current	$	218,383	$	269,226	$	458,284
Deferred	(157,864)		(191,317)		(126,719)
Total	$	60,519	$	77,909	$	331,565

Components of deferred tax assets and liabilities table

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

	Jul. 3, 2021		Jun. 27, 2020
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	613,325	$	379,620
Pension	111,084		184,616
Receivables	53,688		99,540
Deferred compensation	28,978		31,603
Share-based compensation	26,498		21,296
Inventory	17,983		17,069
Self-insured liabilities	7,521		3,409
Other	107,907		41,820
Deferred tax assets before valuation allowances	966,984		778,973
Valuation allowances	(226,626)		(137,862)
Total deferred tax assets	740,358		641,111
Deferred tax liabilities:
Goodwill and intangible assets	351,758		329,940
Excess tax depreciation and basis differences of assets	148,418		169,920
Other	34,725		33,737
Total deferred tax liabilities	534,901		533,597
Total net deferred tax assets	$	205,457	$	107,514

Tax rate reconciliation table

Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows:

	2021		2020		2019
U.S. statutory federal income tax rate	21.00	%	21.00	%	21.00	%
State and local income taxes, net of any applicable federal income tax benefit	2.67		5.69		3.35
Foreign income taxes	(9.99)		(2.46)		(1.42)
Uncertain tax positions	(0.38)		(1.44)		(0.31)
Tax benefit of equity-based compensation	(1.07)		(9.77)		(2.07)
Nondeductible impairment charges	—		17.65		—
Impact of U.S. Tax Reform	—		—		(4.64)
Other	(1.88)		(4.12)		0.62
Effective income tax rate	10.35	%	26.55	%	16.53	%

Reconciliation of unrecognized tax benefits table

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows:

	2021		2020
	(In thousands)
Unrecognized tax benefits at beginning of year	$	23,135	$	26,109
Reductions for tax positions related to prior years	(2,735)		(2,974)
Unrecognized tax benefits at end of year	$	20,400	$	23,135