DEBT AND OTHER FINANCING ARRANGEMENTS

12 Months Ended

Jun. 29, 2024

Debt Disclosure [Abstract]

DEBT AND OTHER FINANCING ARRANGEMENTS

DEBT AND OTHER FINANCING ARRANGEMENTS

	Jun. 29, 2024		Jul. 1, 2023
	(In millions)
U.S. Commercial paper, interest at 5.45%, maturing in fiscal 2025	$	200	$	—
Senior notes, interest at 3.65%, maturing in fiscal 2025 (1)	365		377
Senior notes, interest at 3.75%, maturing in fiscal 2026 (1)(2)	749		749
Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2)	998		997
Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3)	43		43
Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2)	747		746
Debentures, interest at 6.50%, maturing in fiscal 2029 (2)	155		155
Senior notes, interest at 5.75%, maturing in fiscal 2029 (1)(2)	496		—
Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2)	497		497
Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2)	994		993
Senior notes, interest at 2.45%, maturing in fiscal 2032 (1)(2)	446		446
Senior notes, interest at 6.00%, maturing in fiscal 2034 (1)(2)	498		—
Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2)	383		383
Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2)	200		200
Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2)	350		350
Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2)	497		496
Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2)	495		495
Senior notes, interest at 4.45%, maturing in fiscal 2048 (1)(2)	493		493
Senior notes, interest at 3.30%, maturing in fiscal 2050 (1)(2)	495		495
Senior notes, interest at 6.60%, maturing in fiscal 2050 (1)(2)	1,177		1,177
Senior notes, interest at 3.15%, maturing in fiscal 2052 (1)(2)	788		787
Plant and equipment financing programs, finance leases, notes payable, and other debt, interest averaging 5.13% and maturing at various dates to fiscal 2052 as of June 29, 2024, and 4.49% and maturing at various dates to fiscal 2052 as of July 1, 2023	916		532
Total debt	11,982		10,411
Less current maturities of long-term debt	(469)		(63)
Net long-term debt	$	11,513	$	10,348

(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 June 29, 2024, 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 millions)
2025	$	365	$	512
2026	750		473
2027	1,043		442
2028	750		410
2029	655		398

(1) Includes payments on floating rate debt based on rates as of June 29, 2024, assuming amount remains unchanged until maturity, and payments on fixed rate debt based on maturity dates. Fixed rate debt is inclusive of certain debt in which we pay a fixed interest rate on as of June 29, 2024, which will convert to floating rate debt at a later date.

The total carrying value of our debt was $12.0 billion as of June 29, 2024 and $10.4 billion as of July 1, 2023. The increase in the carrying value of our debt from the prior year was due to new issuances of senior notes, new commercial paper issuances and new leases in support of plant and equipment.

Sysco has a long-term revolving credit facility that includes aggregate commitments of the lenders thereunder of $3.0 billion, with an option to increase such commitments to $4.0 billion. The facility includes a covenant requiring Sysco to maintain a ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 over four consecutive fiscal quarters. The facility expires on April 29, 2027. As of June 29, 2024, there were no borrowings outstanding under this facility.

Sysco has a U.S commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $3.0 billion. Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility. As of June 29, 2024, there were $200 million in commercial paper issuances outstanding under this program. On October 17, 2023, we entered into a new commercial paper dealer agreement in Europe for a commercial paper program with borrowings not to exceed €250 million. As of June 29, 2024, there were no commercial paper issuances outstanding under this program.

On November 17, 2023, Sysco issued senior notes (the Notes) totaling $1.0 billion to facilitate our acquisition of Edward Don and our share repurchases. Details of the Notes are as follows:

Maturity Date	Par Value (in millions)		Coupon Rate		Pricing (percentage of par)
January 17, 2029 (the 2029 Notes)	$	500	5.75	%	99.784	%
January 17, 2034 (the 2034 Notes)	500		6.00		99.037

The Notes initially are fully and unconditionally guaranteed by Sysco’s direct and indirect wholly owned subsidiaries that guarantee Sysco’s other senior notes issued under the indenture governing the Notes or any of Sysco’s other indebtedness. Interest on the Notes will be paid semi-annually in arrears on July 17 and January 17, beginning July 17, 2024. At Sysco’s option, any or all of the Notes may be redeemed, in whole or in part, at any time prior to maturity. If Sysco elects to redeem (i) the 2029 Notes before the date that is one month prior to the maturity date, or (ii) the 2034 Notes before the date that is three months prior to the maturity date, Sysco will pay an amount equal to the greater of 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest or the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if such senior notes matured on the applicable date described above. If Sysco elects to redeem a series of Notes on or after the applicable date described in the preceding sentence, Sysco will pay an amount equal to 100% of the principal amount of the Notes to be redeemed. Sysco will pay accrued and unpaid interest on the Notes redeemed to the redemption date.

As of June 29, 2024 and July 1, 2023, letters of credit outstanding were $271 million and $268 million, respectively.