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COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jul. 01, 2023

Schedule of Defined Benefit Plans Funded Status

The caption “U.S. Pension Benefits” in the tables below includes both the U.S. Retirement Plan and the SERP. As Sysco’s fiscal 2023 year end is July 1, 2023, 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, 2023 as the measurement date of the plan assets and obligations disclosed herein.


	U.S. Pension Benefits (1)				International Pension Benefits
	Jul. 1, 2023		Jul. 2, 2022		Jul. 1, 2023		Jul. 2, 2022
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	3,920,672	$	5,000,998	$	288,523	$	434,451
Service cost	8,109		13,490		2,182		3,101
Interest cost	170,149		152,401		10,184		7,456
Amendments	2,884		—		—		—
Curtailments	—		—		(841)		(1,291)


Actuarial gain, net	(300,256)		(1,081,865)		(11,512)		(93,717)
Benefit payments	(127,182)		(164,352)		(13,008)		(13,882)
Settlements	(694,998)		—		9,930		(47,595)
Benefit obligation at end of year	2,979,378		3,920,672		285,458		288,523
Change in plan assets:
Fair value of plan assets at beginning of year	3,633,167		4,654,763		241,884		319,616
Actual return on plan assets	(198,874)		(888,805)		(72,671)		(48,710)
Employer contribution	29,155		31,561		21,058		21,220
Benefit payments	(127,182)		(164,352)		(13,008)		(13,882)
Settlements	(694,998)		—		7,695		(36,360)
Fair value of plan assets at end of year	2,641,268		3,633,167		184,958		241,884
Funded status at end of year	$	(338,110)	$	(287,505)	$	(100,500)	$	(46,639)


(1)			The U.S. Retirement Plan had a funded status of $10.1 million and $94.9 million as of July 1, 2023 and July 2, 2022, respectively.

Schedule of Defined Benefit Plans Amounts Recognized in Balance Sheet

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. 1, 2023		Jul. 2, 2022		Jul. 1, 2023		Jul. 2, 2022
	(In thousands)
Noncurrent assets (Other assets)	$	10,143	$	94,934	$	—	$	5,116
Current accrued benefit liability (Accrued expenses)	(32,138)		(31,969)		(1,460)		(1,399)
Noncurrent accrued benefit liability (Other long-term liabilities)	(316,115)		(350,470)		(99,040)		(50,356)
Net amount recognized	$	(338,110)	$	(287,505)	$	(100,500)	$	(46,639)

Schedule of Defined Benefit Plans Amounts Recognized in Accumulated Other Comprehensive Loss (Income)

Accumulated other comprehensive loss (income) as of July 1, 2023 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	$	2,545	$	1,258	$	3,803
Actuarial losses	1,115,019		56,692		1,171,711
Total	$	1,117,564	$	57,950	$	1,175,514

Accumulated other comprehensive loss (income) as of July 2, 2022 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	$	54	$	1,103	$	1,157
Actuarial losses (gains)	1,417,073		(18,768)		1,398,305
Total	$	1,417,127	$	(17,665)	$	1,399,462

Schedule of Defined Benefit Plans with Accumulated/Aggregate Benefit Obligation in Excess of Fair Value of Plan Assets

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 (2)
	Jul. 1, 2023		Jul. 2, 2022		Jul. 1, 2023		Jul. 2, 2022
	(In thousands)
Accumulated benefit obligation/aggregate benefit obligation	$	348,165	$	382,334	$	280,429	$	46,895
Fair value of plan assets at end of year	—		—		184,958		263


(1)			Information under Pension Benefits as of July 1, 2023 and July 2, 2022 includes both the U.S. Retirement Plan and the SERP.
(2)			U.K. Retirement Plan fair value of plan assets exceeded the accumulated benefit obligation/aggregate benefit obligation as of July 2, 2022

Schedule of Defined Benefit Plans Components of Net Benefit Cost

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


	2023				2022				2021
	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	$	8,109	$	2,182	$	13,490	$	3,101	$	16,472	$	3,288
Interest cost	170,149		10,184		152,401		7,456		145,299		6,810
Expected return on plan assets	(147,827)		(10,830)		(206,320)		(9,770)		(206,406)		(7,426)
Amortization of prior service cost (credit)	393		(35)		393		(43)		729		(61)
Amortization of actuarial loss (gain)	33,044		(410)		34,961		92		42,288		250
Curtailment gain	—		(911)		—		(1,003)		—		(1,230)
Settlement loss recognized	315,455		—		—		—		—		—
Net pension costs (benefits)	$	379,323	$	180	$	(5,075)	$	(167)	$	(1,618)	$	1,631

Schedule of Defined Benefit Plans Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income

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:


	2023				2022				2021
	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)	$	393	$	(105)	$	393	$	(129)	$	729	$	(131)
Amortization of actuarial loss (gain)	348,498		(410)		34,961		92		42,288		250
Prior service credit arising in current year	(2,884)		—		—		—		—		—
Effect of exchange rates on amounts in AOCI	—		(3,111)		—		(752)		—		(3,254)
Actuarial gain (loss) arising in current year	(46,444)		(71,989)		(13,259)		35,610		192,041		16,493
Net pension income (cost)	$	299,563	$	(75,615)	$	22,095	$	34,821	$	235,058	$	13,358

Schedule of 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

Amounts included in accumulated other comprehensive loss (income) as of July 1, 2023 that are expected to be recognized as components of net company-sponsored benefit cost during fiscal 2024 are:


	U.S. Pension Benefits		International Pension Benefits		Total
	(In thousands)
Amortization of prior service cost (credit)	$	393	$	(36)	$	357
Amortization of actuarial losses (gains)	27,931		1,241		29,172
Total	$	28,324	$	1,205	$	29,529

Schedule of Defined Benefit Plans Estimated Future Benefit Payments

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


	U.S. Pension Benefits		International Pension Benefits
	(In thousands)
2024	$	133,180	$	13,156
2025	143,809		14,404
2026	154,771		14,553
2027	165,229		15,336
2028	175,161		15,651
Subsequent five years	988,657		83,670

Schedule of Defined Benefit Plans Weighted Average Assumptions Used in Calculating Net Periodic Benefit Costs

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


	Jul. 1, 2023		Jul. 2, 2022
Discount rate — U.S. Retirement Plan	5.62	%	4.91	%
Discount rate — SERP	5.65		4.84
Discount rate — U.K. Retirement Plan	5.20		3.65
Rate of compensation increase — U.S. Retirement Plan	3.00		3.00

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


	2023		2022		2021
Discount rate — U.S. Retirement Plan (1)	6.07	%	3.12	%	2.94	%
Discount rate — SERP	4.84		2.91		2.91
Discount rate — U.K. Retirement Plan	3.65		1.90		1.60

Expected rate of return — U.S. Retirement Plan (2)	6.00		4.50		4.75
Expected rate of return — U.K. Retirement Plan	4.65		3.30		2.55
Rate of compensation increase — U.S. Retirement Plan	3.00		2.56		2.56


(1)			The discount rate of the U.S. Retirement Plan was 4.91% for the period of July 2022 to October 2022. Due to the settlement that occurred, the rate changed to 6.07% from November 2022 to June 2023.
(2)			The expected long-term rate of return on plan assets of the U.S. Retirement Plan was 4.50% for the period of July 2022 to October 2022. Due to the settlement that occurred, the rate changed to 6.00% from November 2022 to June 2023.

Schedule of Defined Benefit Plans Target and Actual Asset Allocation

The U.S. Retirement Plan’s target and actual investment allocation as of July 1, 2023 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 2023 is as follows:


	U.K. Retirement Plan
	Target Asset Allocation		Actual Asset Allocation
Growth portfolio	50	%	49	%
Matching portfolio	50		51
			100	%

Schedule of Defined Benefit Plans Fair Value of Plans Assets by Major Category

The following table presents the fair value of the U.S. Retirement Plan’s assets by major asset category as of July 1, 2023:


	Assets Measured at Fair Value as of Jul. 1, 2023
	Level 1		Level 2		Level 3		Measured at NAV (6)		Total
	(In thousands)
Cash and cash equivalents	$	12,515	$	79,702	$	—	$	—	$	92,217
Growth assets:
U.S. equity (1)	17,496		—		—		213,565		231,061
International equity (1)	60		—		—		164,611		164,671
Hedge fund of funds (2)	—		—		—		191,332		191,332
Real estate funds (3)	—		—		—		105,542		105,542
Private equity funds (4)	—		—		—		66,517		66,517
Liability hedging assets:

Corporate bonds	—		1,340,451		—		45,846		1,386,297
U.S. government and agency securities	—		199,780		—		197,011		396,791
Other (5)	—		6,840		—		—		6,840


Total investments at fair value	$	30,071	$	1,626,773	$	—	$	984,424	$	2,641,268


(1)			Includes 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 1, 2023. 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 1, 2023, and there were no redemption restrictions as of July 1, 2023. The investment may be redeemed once per quarter.
(3)			For investments in the funds listed in this category, total unfunded commitment as of July 1, 2023 was $2.0 million. Less than 1% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2023 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 1, 2023 were $14.6 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 2023 to 2031.
(5)			Includes foreign government and state and municipal debt securities.
(6)			Includes certain investments that are measured at fair value using the NAV practical expedient that 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 1, 2023:


	Assets Measured at Fair Value as of Jul. 1, 2023
	Level 1		Level 2		Level 3		Measured at NAV (2)		Total
	(In thousands)







Investment funds:
Common contractual fund (1)	$	—	$	—	$	—	$	183,944	$	183,944
Total investments at fair value	$	—	$	—	$	—	$	183,944	$	183,944



(1)			There were $5.3 million of unfunded commitments as of July 1, 2023. As of July 1, 2023 there are no monetary redemption restrictions, however timing restrictions ranged from daily to quarterly.
(2)			Includes certain investments that are measured at fair value using the NAV practical expedient that 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 July 2, 2022:


	Assets Measured at Fair Value as of Jul. 2, 2022
	Level 1		Level 2		Level 3		Measured at NAV (6)		Total
	(In thousands)
Cash and cash equivalents	$	88,962	$	30,365	$	—	$	—	$	119,327
Growth assets:
U.S. equity (1)	20,894		25,508		—		257,711		304,113
International equity (1)	166		—		—		241,209		241,375
Hedge fund of funds (2)	—		—		—		276,844		276,844
Real estate funds (3)	—		—		—		116,638		116,638
Private equity funds (4)	—		—		—		87,140		87,140

Liability hedging assets:
Corporate bonds	—		1,792,891		—		71,151		1,864,042
U.S. government and agency securities	—		345,333		—		265,094		610,427
Other (5)	—		13,261		—		—		13,261



Total investments at fair value	$	110,022	$	2,207,358	$	—	$	1,315,787	$	3,633,167


(1)			Includes 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 2, 2022. 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 2, 2022, and there were no redemption restrictions as of July 2, 2022. The investment may be redeemed once per quarter.
(3)			For investments in the funds listed in this category, total unfunded commitment as of July 2, 2022 was $2.0 million. Less than 1% of the investments cannot be redeemed. The estimate of the liquidation period for these funds varies from 2022 to 2026. The remaining investments may be redeemed quarterly with advanced written notice and subject to applicable limits.
(4)			Total unfunded commitment as of July 2, 2022 was $15.9 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 2022 to 2031.
(5)			Includes foreign government and state and municipal debt securities.
(6)			Includes 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 2, 2022:


	Assets Measured at Fair Value as of Jul. 2, 2022
	Level 1		Level 2		Level 3		Measured at NAV (3)		Total
	(In thousands)
Liability hedging assets:
Cash and cash equivalents	$	5,451	$	38,537	$	—	$	—	$	43,988
Corporate bonds	—		25,544		—		—		25,544
U.K. government securities	—		75,125		—		—		75,125
International government securities	—		10,214		—		—		10,214
Derivative assets (liabilities), net (1)	—		(22,947)		—		—		(22,947)
Investment funds:
Common contractual fund (2)	—		—		—		109,831		109,831
Total investments at fair value	$	5,451	$	126,473	$	—	$	109,831	$	241,755


(1)			Includes interest rate swaps and zero coupon swaps. The fair value of asset positions totaled $8.0 million; the fair value of liability positions totaled $30.9 million.
(2)			There were $11.2 million of unfunded commitments as of July 2, 2022, and there were no redemption restrictions as of July 2, 2022. The investment may be redeemed twice per month.
(3)			Includes 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.