Delaware
|
74-1648137
|
(State or other jurisdiction of
|
(IRS employer
|
incorporation or organization)
|
identification number)
|
1390 Enclave Parkway
|
77077-2099
|
Houston, Texas
|
(Zip Code)
|
(Address of principal executive offices)
|
|
Large Accelerated Filer ☑
|
Accelerated Filer ☐
|
Non-accelerated Filer ☐ (Do not check if a smaller reporting company)
|
Smaller Reporting Company ☐
|
|
|
Page No.
|
|
PART I – FINANCIAL INFORMATION
|
|
|
|
|
|
PART II – OTHER INFORMATION
|
|
|
|
|
|
|
Dec. 26, 2015
|
|
Jun. 27, 2015
|
|
Dec. 27, 2014
|
||||||
|
(unaudited)
|
|
|
|
|
(unaudited)
|
|||||
ASSETS
|
|||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents
|
$
|
595,602
|
|
|
$
|
5,130,044
|
|
|
$
|
4,907,677
|
|
Accounts and notes receivable, less allowances of
$57,631, $41,720, and $68,427 |
3,353,453
|
|
|
3,353,381
|
|
|
3,529,997
|
|
|||
Inventories
|
2,736,382
|
|
|
2,691,823
|
|
|
2,791,813
|
|
|||
Deferred income taxes
|
—
|
|
|
135,254
|
|
|
140,456
|
|
|||
Prepaid expenses and other current assets
|
83,263
|
|
|
93,039
|
|
|
76,682
|
|
|||
Prepaid income taxes
|
10,326
|
|
|
90,763
|
|
|
10,279
|
|
|||
Total current assets
|
6,779,026
|
|
|
11,494,304
|
|
|
11,456,904
|
|
|||
Plant and equipment at cost, less depreciation
|
3,936,612
|
|
|
3,982,143
|
|
|
4,002,932
|
|
|||
Long-term assets
|
|
|
|
|
|
|
|
|
|||
Goodwill
|
1,977,921
|
|
|
1,959,817
|
|
|
1,966,547
|
|
|||
Intangibles, less amortization
|
163,089
|
|
|
154,809
|
|
|
168,446
|
|
|||
Restricted cash
|
—
|
|
|
168,274
|
|
|
165,465
|
|
|||
Other assets
|
232,820
|
|
|
229,934
|
|
|
169,515
|
|
|||
Total other assets
|
2,373,830
|
|
|
2,512,834
|
|
|
2,469,973
|
|
|||
Total assets
|
$
|
13,089,468
|
|
|
$
|
17,989,281
|
|
|
$
|
17,929,809
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|||
Notes payable
|
$
|
83,037
|
|
|
$
|
70,751
|
|
|
$
|
76,876
|
|
Accounts payable
|
2,710,469
|
|
|
2,881,953
|
|
|
2,797,947
|
|
|||
Accrued expenses
|
1,071,632
|
|
|
1,467,610
|
|
|
1,100,239
|
|
|||
Current maturities of long-term debt
|
7,076
|
|
|
4,979,301
|
|
|
310,891
|
|
|||
Total current liabilities
|
3,872,214
|
|
|
9,399,615
|
|
|
4,285,953
|
|
|||
Long-term liabilities
|
|
|
|
|
|
|
|
|
|||
Long-term debt
|
4,265,857
|
|
|
2,271,825
|
|
|
7,208,252
|
|
|||
Deferred income taxes
|
111,822
|
|
|
81,591
|
|
|
117,353
|
|
|||
Other long-term liabilities
|
852,655
|
|
|
934,722
|
|
|
940,349
|
|
|||
Total other liabilities
|
5,230,334
|
|
|
3,288,138
|
|
|
8,265,954
|
|
|||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|||
Noncontrolling interest
|
45,493
|
|
|
41,304
|
|
|
34,942
|
|
|||
Shareholders' equity
|
|
|
|
|
|
|
|
|
|||
Preferred stock, par value $1 per share
Authorized 1,500,000 shares, issued none |
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock, par value $1 per share
Authorized 2,000,000,000 shares, issued 765,174,900 shares |
765,175
|
|
|
765,175
|
|
|
765,175
|
|
|||
Paid-in capital
|
1,022,816
|
|
|
1,213,999
|
|
|
1,181,918
|
|
|||
Retained earnings
|
8,922,498
|
|
|
8,751,985
|
|
|
8,858,831
|
|
|||
Accumulated other comprehensive loss
|
(1,045,177
|
)
|
|
(923,197
|
)
|
|
(828,656
|
)
|
|||
Treasury stock at cost, 198,552,842,
170,857,231 and 174,109,675 shares |
(5,723,885
|
)
|
|
(4,547,738
|
)
|
|
(4,634,308
|
)
|
|||
Total shareholders' equity
|
3,941,427
|
|
|
5,260,224
|
|
|
5,342,960
|
|
|||
Total liabilities and shareholders' equity
|
$
|
13,089,468
|
|
|
$
|
17,989,281
|
|
|
$
|
17,929,809
|
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
Sales
|
$
|
12,153,626
|
|
|
$
|
12,087,074
|
|
|
$
|
24,716,237
|
|
|
$
|
24,532,155
|
|
Cost of sales
|
9,996,812
|
|
|
10,001,937
|
|
|
20,321,428
|
|
|
20,258,301
|
|
||||
Gross profit
|
2,156,814
|
|
|
2,085,137
|
|
|
4,394,809
|
|
|
4,273,854
|
|
||||
Operating expenses
|
1,724,231
|
|
|
1,769,691
|
|
|
3,468,752
|
|
|
3,492,795
|
|
||||
Operating income
|
432,583
|
|
|
315,446
|
|
|
926,057
|
|
|
781,059
|
|
||||
Interest expense
|
47,235
|
|
|
77,042
|
|
|
174,142
|
|
|
107,976
|
|
||||
Other expense (income), net
|
(7,764
|
)
|
|
2,207
|
|
|
(23,004
|
)
|
|
19
|
|
||||
Earnings before income taxes
|
393,112
|
|
|
236,197
|
|
|
774,919
|
|
|
673,064
|
|
||||
Income taxes
|
120,713
|
|
|
78,218
|
|
|
258,100
|
|
|
236,272
|
|
||||
Net earnings
|
$
|
272,399
|
|
|
$
|
157,979
|
|
|
$
|
516,819
|
|
|
$
|
436,792
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings:
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
0.48
|
|
|
$
|
0.27
|
|
|
$
|
0.89
|
|
|
$
|
0.74
|
|
Diluted earnings per share
|
0.48
|
|
|
0.27
|
|
|
0.88
|
|
|
0.73
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding
|
566,881,538
|
|
|
590,723,351
|
|
|
581,790,230
|
|
|
589,499,802
|
|
||||
Diluted shares outstanding
|
571,452,124
|
|
|
595,911,680
|
|
|
586,121,013
|
|
|
594,610,315
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
$
|
0.31
|
|
|
$
|
0.30
|
|
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
Net earnings
|
$
|
272,399
|
|
|
$
|
157,979
|
|
|
$
|
516,819
|
|
|
$
|
436,792
|
|
Other comprehensive (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment
|
(44,453
|
)
|
|
(91,853
|
)
|
|
(131,682
|
)
|
|
(163,107
|
)
|
||||
Items presented net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of cash flow hedges
|
1,825
|
|
|
1,639
|
|
|
3,501
|
|
|
1,765
|
|
||||
Change in fair value of cash flow hedges
|
—
|
|
|
—
|
|
|
(3,779
|
)
|
|
(34,111
|
)
|
||||
Amortization of prior service cost
|
1,715
|
|
|
1,737
|
|
|
3,430
|
|
|
3,474
|
|
||||
Amortization of actuarial loss, net
|
3,275
|
|
|
2,993
|
|
|
6,550
|
|
|
5,986
|
|
||||
Total other comprehensive (loss)
|
(37,638
|
)
|
|
(85,484
|
)
|
|
(121,980
|
)
|
|
(185,993
|
)
|
||||
Comprehensive income
|
$
|
234,761
|
|
|
$
|
72,495
|
|
|
$
|
394,839
|
|
|
$
|
250,799
|
|
|
26-Week Period Ended
|
||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net earnings
|
$
|
516,819
|
|
|
$
|
436,792
|
|
Adjustments to reconcile net earnings to cash provided by operating activities:
|
|
|
|
|
|
||
Share-based compensation expense
|
44,045
|
|
|
44,460
|
|
||
Depreciation and amortization
|
281,400
|
|
|
274,655
|
|
||
Amortization of debt issuance and other debt-related costs
|
13,637
|
|
|
20,144
|
|
||
Loss on extinguishment of debt
|
86,460
|
|
|
—
|
|
||
Deferred income taxes
|
153,423
|
|
|
6,804
|
|
||
Provision for losses on receivables
|
10,093
|
|
|
9,414
|
|
||
Other non-cash items
|
(15,468
|
)
|
|
(2,359
|
)
|
||
Additional changes in certain assets and liabilities, net of effect of businesses acquired:
|
|
|
|
|
|
||
(Increase) in receivables
|
(50,853
|
)
|
|
(181,877
|
)
|
||
(Increase) in inventories
|
(69,370
|
)
|
|
(214,111
|
)
|
||
Decrease in prepaid expenses and other current assets
|
9,812
|
|
|
6,537
|
|
||
(Decrease) in accounts payable
|
(140,499
|
)
|
|
(7,450
|
)
|
||
(Decrease) increase in accrued expenses
|
(388,667
|
)
|
|
78,438
|
|
||
Increase in accrued income taxes
|
92,638
|
|
|
40,220
|
|
||
(Increase) decrease in other assets
|
(9,556
|
)
|
|
16,072
|
|
||
(Decrease) in other long-term liabilities
|
(52,942
|
)
|
|
(67,438
|
)
|
||
Excess tax benefits from share-based compensation arrangements
|
(12,091
|
)
|
|
(7,863
|
)
|
||
Net cash provided by operating activities
|
468,881
|
|
|
452,438
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Additions to plant and equipment
|
(248,233
|
)
|
|
(298,068
|
)
|
||
Proceeds from sales of plant and equipment
|
10,827
|
|
|
2,130
|
|
||
Acquisition of businesses, net of cash acquired
|
(98,154
|
)
|
|
(29,177
|
)
|
||
Decrease (increase) in restricted cash
|
168,274
|
|
|
(20,053
|
)
|
||
Net cash used for investing activities
|
(167,286
|
)
|
|
(345,168
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Bank and commercial paper borrowings (repayments), net
|
—
|
|
|
(129,999
|
)
|
||
Other debt borrowings
|
2,012,353
|
|
|
5,008,502
|
|
||
Other debt repayments
|
(19,155
|
)
|
|
(21,618
|
)
|
||
Redemption of senior notes
|
(5,050,000
|
)
|
|
—
|
|
||
Debt issuance costs
|
(20,881
|
)
|
|
(30,980
|
)
|
||
Cash paid for settlement of cash flow hedge
|
(6,134
|
)
|
|
(188,840
|
)
|
||
Cash received from termination of interest rate swap agreements
|
14,496
|
|
|
—
|
|
||
Proceeds from stock option exercises
|
131,969
|
|
|
122,492
|
|
||
Accelerated share and treasury stock purchases
|
(1,521,638
|
)
|
|
—
|
|
||
Dividends paid
|
(348,436
|
)
|
|
(340,654
|
)
|
||
Excess tax benefits from share-based compensation arrangements
|
12,091
|
|
|
7,863
|
|
||
Net cash (used for) provided by financing activities
|
(4,795,335
|
)
|
|
4,426,766
|
|
||
Effect of exchange rates on cash and cash equivalents
|
(40,702
|
)
|
|
(39,405
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(4,534,442
|
)
|
|
4,494,631
|
|
||
Cash and cash equivalents at beginning of period
|
5,130,044
|
|
|
413,046
|
|
||
Cash and cash equivalents at end of period
|
$
|
595,602
|
|
|
$
|
4,907,677
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||
Cash paid during the period for:
|
|
|
|
|
|
||
Interest
|
$
|
106,600
|
|
|
$
|
73,756
|
|
Income taxes
|
33,156
|
|
|
189,538
|
|
•
|
Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;
|
•
|
Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and
|
•
|
Level 3 – Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk.
|
•
|
Time deposits and commercial paper included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 2 measurement in the tables below.
|
•
|
Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents and restricted cash as Level 1 measurements in the tables below.
|
•
|
The interest rate swap agreements, discussed further in
Note 6
,
"Derivative Financial Instruments"
are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. These are included within other assets and other long-term liabilities as Level 2 measurements in the tables below.
|
|
Assets and Liabilities Measured at Fair Value as of Dec. 26, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
234,161
|
|
|
$
|
61,473
|
|
|
$
|
—
|
|
|
$
|
295,634
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap agreement
|
—
|
|
|
3,936
|
|
|
—
|
|
|
3,936
|
|
||||
Total assets at fair value
|
$
|
234,161
|
|
|
$
|
65,409
|
|
|
$
|
—
|
|
|
$
|
299,570
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Long-term debt
|
$
|
—
|
|
|
$
|
1,241,786
|
|
|
$
|
—
|
|
|
$
|
1,241,786
|
|
Other long-term liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreement
|
—
|
|
|
6,575
|
|
|
—
|
|
|
6,575
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
1,248,361
|
|
|
$
|
—
|
|
|
$
|
1,248,361
|
|
|
Assets and Liabilities Measured at Fair Value as of Jun. 27, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
4,677,735
|
|
|
$
|
63,689
|
|
|
$
|
—
|
|
|
$
|
4,741,424
|
|
Restricted cash
|
168,274
|
|
|
—
|
|
|
—
|
|
|
168,274
|
|
||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap agreement
|
—
|
|
|
12,597
|
|
|
—
|
|
|
12,597
|
|
||||
Total assets at fair value
|
$
|
4,846,009
|
|
|
$
|
76,286
|
|
|
$
|
—
|
|
|
$
|
4,922,295
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
1,257,127
|
|
|
$
|
—
|
|
|
$
|
1,257,127
|
|
Long-term debt
|
—
|
|
|
503,379
|
|
|
—
|
|
|
503,379
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
1,760,506
|
|
|
$
|
—
|
|
|
$
|
1,760,506
|
|
|
Assets and Liabilities Measured at Fair Value as of Dec. 27, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
4,655,434
|
|
|
$
|
21,841
|
|
|
$
|
—
|
|
|
$
|
4,677,275
|
|
Restricted cash
|
165,465
|
|
|
—
|
|
|
—
|
|
|
165,465
|
|
||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap agreement
|
—
|
|
|
4,802
|
|
|
—
|
|
|
4,802
|
|
||||
Total assets at fair value
|
$
|
4,820,899
|
|
|
$
|
26,643
|
|
|
$
|
—
|
|
|
$
|
4,847,542
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Long-term debt
|
$
|
—
|
|
|
$
|
1,752,118
|
|
|
$
|
—
|
|
|
$
|
1,752,118
|
|
Other long-term liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreement
|
—
|
|
|
152
|
|
|
—
|
|
|
152
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
1,752,270
|
|
|
$
|
—
|
|
|
$
|
1,752,270
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
|
(In thousands)
|
||||||||||
Interest rate swap agreements:
|
|
|
|
|
|
|
|
||||
Dec. 26, 2015
|
Other assets
|
|
$
|
3,936
|
|
|
Other liabilities
|
|
$
|
6,575
|
|
Jun. 27, 2015
|
Other assets
|
|
12,597
|
|
|
|
|
|
|
||
Dec. 27, 2014
|
Other assets
|
|
4,802
|
|
|
Other long-term liabilities
|
|
152
|
|
|
Location of (Gain)
or Loss Recognized
|
|
Amount of (Gain)
or Loss Recognized
|
||||||
|
|
|
13-Week Period Ended
|
||||||
|
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||
|
|
|
(In thousands)
|
||||||
Fair Value Hedge Relationships:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Interest expense
|
|
$
|
—
|
|
|
$
|
(6,401
|
)
|
Cash Flow Hedge Relationships:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Other comprehensive income
|
|
—
|
|
|
—
|
|
||
Interest rate contracts
|
Interest expense
|
|
2,962
|
|
|
(2,660
|
)
|
|
Location of (Gain)
or Loss Recognized
|
|
Amount of (Gain)
or Loss Recognized
|
||||||
|
|
|
26-Week Period Ended
|
||||||
|
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||
|
|
|
(In thousands)
|
||||||
Fair Value Hedge Relationships:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Interest expense
|
|
$
|
—
|
|
|
$
|
(9,670
|
)
|
Cash Flow Hedge Relationships:
|
|
|
|
|
|
||||
Interest rate swap agreements
|
Other comprehensive income
|
|
5,682
|
|
|
55,374
|
|
||
Interest rate contracts
|
Interest expense
|
|
6,134
|
|
|
(2,865
|
)
|
|
|
|
|
26-Week Period Ended Dec. 26, 2015
|
|||
|
|
|
|
|
(In thousands)
|
||
Redemption Premium Payment
|
|
|
|
|
$
|
50,000
|
|
Debt issuance cost write-off
|
|
|
|
|
28,642
|
|
|
Bond discount write-off
|
|
|
|
|
17,869
|
|
|
Gain on swap termination
|
|
|
|
|
(10,051
|
)
|
|
Loss on extinguishment of debt
|
|
|
|
|
86,460
|
|
|
Interest expense on senior notes
|
|
|
|
|
8,375
|
|
|
Total
|
|
|
|
|
$
|
94,835
|
|
Maturity Date
|
|
Par Value
(in millions)
|
|
Coupon Rate
|
|
Pricing
(percentage of par)
|
||||
October 1, 2020
|
|
$
|
750
|
|
|
2.60
|
%
|
|
99.809
|
%
|
October 1, 2025
|
|
750
|
|
|
3.75
|
%
|
|
100.00
|
%
|
|
October 1, 2045
|
|
500
|
|
|
4.85
|
%
|
|
99.921
|
%
|
|
Pension Benefits
|
|
Other Postretirement Plans
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
2,902
|
|
|
$
|
2,815
|
|
|
$
|
134
|
|
|
$
|
134
|
|
Interest cost
|
42,833
|
|
|
42,779
|
|
|
153
|
|
|
148
|
|
||||
Expected return on plan assets
|
(53,202
|
)
|
|
(57,156
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of prior service cost
|
2,743
|
|
|
2,777
|
|
|
41
|
|
|
42
|
|
||||
Amortization of actuarial loss (gain)
|
5,435
|
|
|
4,968
|
|
|
(118
|
)
|
|
(109
|
)
|
||||
Net periodic costs (benefits)
|
$
|
711
|
|
|
$
|
(3,817
|
)
|
|
$
|
210
|
|
|
$
|
215
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Pension Benefits
|
|
Other Postretirement Plans
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
5,803
|
|
|
$
|
5,630
|
|
|
$
|
268
|
|
|
$
|
268
|
|
Interest cost
|
85,665
|
|
|
85,558
|
|
|
305
|
|
|
296
|
|
||||
Expected return on plan assets
|
(106,404
|
)
|
|
(114,312
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of actuarial loss (gain)
|
5,486
|
|
|
5,554
|
|
|
83
|
|
|
84
|
|
||||
Amortization of actuarial loss (gain)
|
10,870
|
|
|
9,936
|
|
|
(236
|
)
|
|
(218
|
)
|
||||
Net periodic costs (benefits)
|
$
|
1,420
|
|
|
$
|
(7,634
|
)
|
|
$
|
420
|
|
|
$
|
430
|
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
|
(In thousands, except for share
and per share data)
|
|
(In thousands, except for share
and per share data) |
||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
$
|
272,399
|
|
|
$
|
157,979
|
|
|
$
|
516,819
|
|
|
$
|
436,792
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average basic shares outstanding
|
566,881,538
|
|
|
590,723,351
|
|
|
581,790,230
|
|
|
589,499,802
|
|
||||
Dilutive effect of share-based awards
|
4,570,586
|
|
|
5,188,329
|
|
|
4,330,783
|
|
|
5,110,513
|
|
||||
Weighted-average diluted shares outstanding
|
571,452,124
|
|
|
595,911,680
|
|
|
586,121,013
|
|
|
594,610,315
|
|
||||
Basic earnings per share
|
$
|
0.48
|
|
|
$
|
0.27
|
|
|
$
|
0.89
|
|
|
$
|
0.74
|
|
Diluted earnings per share
|
$
|
0.48
|
|
|
$
|
0.27
|
|
|
$
|
0.88
|
|
|
$
|
0.73
|
|
|
|
|
13-Week Period Ended Dec. 26, 2015
|
||||||||||
|
Location of Expense
(Income) Recognized
in Net Earnings
|
|
Before Tax
Amount
|
|
Tax
|
|
Net of Tax
Amount
|
||||||
|
|
|
(In thousands)
|
||||||||||
Pension and other postretirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|||
Reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of prior service cost
|
Operating expenses
|
|
$
|
2,784
|
|
|
$
|
1,069
|
|
|
$
|
1,715
|
|
Amortization of actuarial loss (gain), net
|
Operating expenses
|
|
5,317
|
|
|
2,042
|
|
|
3,275
|
|
|||
Total reclassification adjustments
|
|
|
8,101
|
|
|
3,111
|
|
|
4,990
|
|
|||
Foreign currency translation:
|
|
|
|
|
|
|
|
||||||
Other comprehensive income before
reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
N/A
|
|
(44,453
|
)
|
|
—
|
|
|
(44,453
|
)
|
|||
Interest rate swaps:
|
|
|
|
|
|
|
|
||||||
Reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Amortization of cash flow hedges
|
Interest expense
|
|
2,962
|
|
|
1,137
|
|
|
1,825
|
|
|||
Total other comprehensive (loss) income
|
|
|
$
|
(33,390
|
)
|
|
$
|
4,248
|
|
|
$
|
(37,638
|
)
|
|
|
|
13-Week Period Ended Dec. 27, 2014
|
||||||||||
|
Location of Expense
(Income) Recognized
in Net Earnings
|
|
Before Tax
Amount
|
|
Tax
|
|
Net of Tax
Amount
|
||||||
|
|
|
(In thousands)
|
||||||||||
Pension and other postretirement benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|||
Reclassification adjustments:
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of prior service cost
|
Operating expenses
|
|
$
|
2,819
|
|
|
$
|
1,082
|
|
|
$
|
1,737
|
|
Amortization of actuarial loss (gain), net
|
Operating expenses
|
|
4,859
|
|
|
1,866
|
|
|
2,993
|
|
|||
Total reclassification adjustments
|
|
|
7,678
|
|
|
2,948
|
|
|
4,730
|
|
|||
Foreign currency translation:
|
|
|
|
|
|
|
|
||||||
Other comprehensive income before
reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
N/A
|
|
(91,853
|
)
|
|
—
|
|
|
(91,853
|
)
|
|||
Interest rate swaps:
|
|
|
|
|
|
|
|
||||||
Reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Amortization of cash flow hedges
|
Interest expense
|
|
2,660
|
|
|
1,021
|
|
|
1,639
|
|
|||
Total other comprehensive (loss) income
|
|
|
$
|
(81,515
|
)
|
|
$
|
3,969
|
|
|
$
|
(85,484
|
)
|
|
|
|
26-Week Period Ended Dec. 26, 2015
|
||||||||||
|
Location of Expense
(Income) Recognized
in Net Earnings
|
|
Before Tax
Amount
|
|
Tax
|
|
Net of Tax
Amount
|
||||||
|
|
|
(In thousands)
|
||||||||||
Pension and other postretirement benefit plans:
|
|
|
|
|
|
|
|
||||||
Reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Amortization of prior service cost
|
Operating expenses
|
|
$
|
5,568
|
|
|
$
|
2,138
|
|
|
$
|
3,430
|
|
Amortization of actuarial loss (gain), net
|
Operating expenses
|
|
10,634
|
|
|
4,084
|
|
|
6,550
|
|
|||
Total reclassification adjustments
|
|
|
16,202
|
|
|
6,222
|
|
|
9,980
|
|
|||
Foreign currency translation:
|
|
|
|
|
|
|
|
||||||
Other comprehensive income before
reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
N/A
|
|
(131,682
|
)
|
|
—
|
|
|
(131,682
|
)
|
|||
Interest rate swaps:
|
|
|
|
|
|
|
|
||||||
Reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Amortization of cash flow hedges
|
Interest expense
|
|
5,682
|
|
|
2,181
|
|
|
3,501
|
|
|||
Change in fair value of cash flow hedge
|
N/A
|
|
(6,134
|
)
|
|
(2,355
|
)
|
|
(3,779
|
)
|
|||
Total other comprehensive (loss) income
|
|
|
$
|
(115,932
|
)
|
|
$
|
6,048
|
|
|
$
|
(121,980
|
)
|
|
|
|
26-Week Period Ended Dec. 27, 2014
|
||||||||||
|
Location of Expense
(Income) Recognized
in Net Earnings
|
|
Before Tax
Amount
|
|
Tax
|
|
Net of Tax
Amount
|
||||||
|
|
|
(In thousands)
|
||||||||||
Pension and other postretirement benefit plans:
|
|
|
|
|
|
|
|
||||||
Reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Amortization of prior service cost
|
Operating expenses
|
|
$
|
5,638
|
|
|
$
|
2,164
|
|
|
$
|
3,474
|
|
Amortization of actuarial loss (gain), net
|
Operating expenses
|
|
9,718
|
|
|
3,732
|
|
|
$
|
5,986
|
|
||
Total reclassification adjustments
|
|
|
15,356
|
|
|
5,896
|
|
|
9,460
|
|
|||
Foreign currency translation:
|
|
|
|
|
|
|
|
||||||
Other comprehensive income before
reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
N/A
|
|
(163,107
|
)
|
|
—
|
|
|
(163,107
|
)
|
|||
Interest rate swaps:
|
|
|
|
|
|
|
|
||||||
Reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Amortization of cash flow hedges
|
Interest expense
|
|
2,865
|
|
|
1,100
|
|
|
1,765
|
|
|||
Other comprehensive income before
reclassification adjustments:
|
|
|
|
|
|
|
|
||||||
Change in fair value of cash flow hedges
|
N/A
|
|
(55,374
|
)
|
|
(21,263
|
)
|
|
(34,111
|
)
|
|||
Total other comprehensive (loss) income
|
|
|
$
|
(200,260
|
)
|
|
$
|
(14,267
|
)
|
|
$
|
(185,993
|
)
|
|
26-Week Period Ended Dec. 26, 2015
|
||||||||||||||
|
Pension and Other Postretirement Benefit Plans,
net of tax
|
|
Foreign Currency Translation
|
|
Interest Rate Swaps,
net of tax
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance as of Jun. 27, 2015
|
$
|
(705,311
|
)
|
|
$
|
(97,733
|
)
|
|
$
|
(120,153
|
)
|
|
$
|
(923,197
|
)
|
Other comprehensive income before
reclassification adjustments
|
—
|
|
|
(131,682
|
)
|
|
—
|
|
|
(131,682
|
)
|
||||
Amortization of cash flow hedges
|
—
|
|
|
—
|
|
|
3,501
|
|
|
3,501
|
|
||||
Change in fair value of cash flow hedges
|
—
|
|
|
—
|
|
|
(3,779
|
)
|
|
(3,779
|
)
|
||||
Amortization of unrecognized prior service cost
|
3,430
|
|
|
—
|
|
|
—
|
|
|
3,430
|
|
||||
Amortization of unrecognized net actuarial losses
|
6,550
|
|
|
—
|
|
|
—
|
|
|
6,550
|
|
||||
Balance as of Dec. 26, 2015
|
$
|
(695,331
|
)
|
|
$
|
(229,415
|
)
|
|
$
|
(120,431
|
)
|
|
$
|
(1,045,177
|
)
|
|
26-Week Period Ended Dec. 27, 2014
|
||||||||||||||
|
Pension and Other Postretirement Benefit Plans,
net of tax
|
|
Foreign Currency Translation
|
|
Interest Rate Swaps,
net of tax
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Balance as of Jun. 28, 2014
|
$
|
(685,957
|
)
|
|
$
|
134,452
|
|
|
$
|
(91,158
|
)
|
|
$
|
(642,663
|
)
|
Other comprehensive income before
reclassification adjustments
|
—
|
|
|
(163,107
|
)
|
|
—
|
|
|
(163,107
|
)
|
||||
Amortization of cash flow hedges
|
—
|
|
|
—
|
|
|
1,765
|
|
|
1,765
|
|
||||
Change in fair value of cash flow hedges
|
—
|
|
|
—
|
|
|
(34,111
|
)
|
|
(34,111
|
)
|
||||
Amortization of unrecognized prior service cost
|
3,474
|
|
|
—
|
|
|
—
|
|
|
3,474
|
|
||||
Amortization of unrecognized net actuarial losses
|
5,986
|
|
|
—
|
|
|
—
|
|
|
5,986
|
|
||||
Balance as of Dec. 27, 2014
|
$
|
(676,497
|
)
|
|
$
|
(28,655
|
)
|
|
$
|
(123,504
|
)
|
|
$
|
(828,656
|
)
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
Sales:
|
(In thousands)
|
|
(In thousands)
|
||||||||||||
Broadline
|
$
|
9,605,710
|
|
|
$
|
9,548,847
|
|
|
$
|
19,633,806
|
|
|
$
|
19,520,222
|
|
SYGMA
|
1,506,836
|
|
|
1,559,863
|
|
|
2,952,741
|
|
|
3,101,475
|
|
||||
Other
|
1,447,740
|
|
|
1,305,179
|
|
|
2,814,566
|
|
|
2,557,265
|
|
||||
Intersegment sales
|
(406,661
|
)
|
|
(326,815
|
)
|
|
(684,875
|
)
|
|
(646,807
|
)
|
||||
Total
|
$
|
12,153,626
|
|
|
$
|
12,087,074
|
|
|
$
|
24,716,237
|
|
|
$
|
24,532,155
|
|
|
|
|
|
|
|
|
|
||||||||
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
Operating income:
|
(In thousands)
|
|
(In thousands)
|
||||||||||||
Broadline
|
$
|
633,167
|
|
|
$
|
582,598
|
|
|
$
|
1,360,162
|
|
|
$
|
1,268,973
|
|
SYGMA
|
5,952
|
|
|
7,803
|
|
|
11,177
|
|
|
12,953
|
|
||||
Other
|
36,865
|
|
|
33,695
|
|
|
63,372
|
|
|
71,422
|
|
||||
Total segments
|
675,984
|
|
|
624,096
|
|
|
1,434,711
|
|
|
1,353,348
|
|
||||
Corporate expenses
|
(243,401
|
)
|
|
(308,650
|
)
|
|
(508,654
|
)
|
|
(572,289
|
)
|
||||
Total operating income
|
432,583
|
|
|
315,446
|
|
|
926,057
|
|
|
781,059
|
|
||||
Interest expense
|
47,235
|
|
|
77,042
|
|
|
174,142
|
|
|
107,976
|
|
||||
Other expense (income), net
|
(7,764
|
)
|
|
2,207
|
|
|
(23,004
|
)
|
|
19
|
|
||||
Earnings before income taxes
|
$
|
393,112
|
|
|
$
|
236,197
|
|
|
$
|
774,919
|
|
|
$
|
673,064
|
|
|
Dec. 26, 2015
|
|
Jun. 27, 2015
|
|
Dec. 27, 2014
|
||||||
Assets:
|
(In thousands)
|
||||||||||
Broadline
|
$
|
7,739,428
|
|
|
$
|
7,730,239
|
|
|
$
|
7,906,762
|
|
SYGMA
|
556,480
|
|
|
512,044
|
|
|
520,862
|
|
|||
Other
|
1,523,493
|
|
|
1,415,038
|
|
|
1,401,847
|
|
|||
Total segments
|
9,819,401
|
|
|
9,657,321
|
|
|
9,829,471
|
|
|||
Corporate
|
3,270,067
|
|
|
8,331,960
|
|
|
8,100,338
|
|
|||
Total
|
$
|
13,089,468
|
|
|
$
|
17,989,281
|
|
|
$
|
17,929,809
|
|
|
Condensed Consolidating Balance Sheet
|
||||||||||||||||||
|
Dec. 26, 2015
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Current assets
|
$
|
279,596
|
|
|
$
|
3,944,472
|
|
|
$
|
2,554,958
|
|
|
$
|
—
|
|
|
$
|
6,779,026
|
|
Investment in subsidiaries
|
9,787,777
|
|
|
241,561
|
|
|
(355,335
|
)
|
|
(9,674,003
|
)
|
|
—
|
|
|||||
Plant and equipment, net
|
501,514
|
|
|
1,632,601
|
|
|
1,802,497
|
|
|
—
|
|
|
3,936,612
|
|
|||||
Other assets
|
258,216
|
|
|
273,324
|
|
|
1,842,290
|
|
|
—
|
|
|
2,373,830
|
|
|||||
Total assets
|
$
|
10,827,103
|
|
|
$
|
6,091,958
|
|
|
$
|
5,844,410
|
|
|
$
|
(9,674,003
|
)
|
|
$
|
13,089,468
|
|
Current liabilities
|
$
|
602,058
|
|
|
$
|
731,474
|
|
|
$
|
2,538,682
|
|
|
$
|
—
|
|
|
$
|
3,872,214
|
|
Intercompany payables (receivables)
|
1,576,888
|
|
|
(2,274,556
|
)
|
|
697,668
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
4,079,396
|
|
|
9,350
|
|
|
177,111
|
|
|
—
|
|
|
4,265,857
|
|
|||||
Other liabilities
|
672,888
|
|
|
278,590
|
|
|
12,999
|
|
|
—
|
|
|
964,477
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
45,493
|
|
|
—
|
|
|
45,493
|
|
|||||
Shareholders’ equity
|
3,895,873
|
|
|
7,347,100
|
|
|
2,372,457
|
|
|
(9,674,003
|
)
|
|
3,941,427
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
10,827,103
|
|
|
$
|
6,091,958
|
|
|
$
|
5,844,410
|
|
|
$
|
(9,674,003
|
)
|
|
$
|
13,089,468
|
|
|
Condensed Consolidating Balance Sheet
|
||||||||||||||||||
|
Jun. 27, 2015
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Current assets
|
$
|
4,894,387
|
|
|
$
|
4,012,924
|
|
|
$
|
2,586,993
|
|
|
$
|
—
|
|
|
$
|
11,494,304
|
|
Investment in subsidiaries
|
9,088,455
|
|
|
—
|
|
|
—
|
|
|
(9,088,455
|
)
|
|
—
|
|
|||||
Plant and equipment, net
|
510,285
|
|
|
1,694,659
|
|
|
1,777,199
|
|
|
—
|
|
|
3,982,143
|
|
|||||
Other assets
|
371,802
|
|
|
522,566
|
|
|
1,618,466
|
|
|
—
|
|
|
2,512,834
|
|
|||||
Total assets
|
$
|
14,864,929
|
|
|
$
|
6,230,149
|
|
|
$
|
5,982,658
|
|
|
$
|
(9,088,455
|
)
|
|
$
|
17,989,281
|
|
Current liabilities
|
$
|
5,851,364
|
|
|
$
|
1,658,558
|
|
|
$
|
1,889,693
|
|
|
$
|
—
|
|
|
$
|
9,399,615
|
|
Intercompany payables (receivables)
|
973,497
|
|
|
(1,996,915
|
)
|
|
1,023,418
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
2,154,923
|
|
|
10,121
|
|
|
106,781
|
|
|
—
|
|
|
2,271,825
|
|
|||||
Other liabilities
|
624,795
|
|
|
278,458
|
|
|
113,060
|
|
|
—
|
|
|
1,016,313
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
41,304
|
|
|
—
|
|
|
41,304
|
|
|||||
Shareholders’ equity
|
5,260,350
|
|
|
6,279,927
|
|
|
2,808,402
|
|
|
(9,088,455
|
)
|
|
5,260,224
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
14,864,929
|
|
|
$
|
6,230,149
|
|
|
$
|
5,982,658
|
|
|
$
|
(9,088,455
|
)
|
|
$
|
17,989,281
|
|
|
Condensed Consolidating Balance Sheet
|
||||||||||||||||||
|
Dec. 27, 2014
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Current assets
|
$
|
4,779,586
|
|
|
$
|
4,057,608
|
|
|
$
|
2,619,710
|
|
|
$
|
—
|
|
|
$
|
11,456,904
|
|
Investment in subsidiaries
|
8,613,500
|
|
|
—
|
|
|
—
|
|
|
(8,613,500
|
)
|
|
—
|
|
|||||
Plant and equipment, net
|
491,972
|
|
|
1,736,843
|
|
|
1,774,117
|
|
|
—
|
|
|
4,002,932
|
|
|||||
Other assets
|
324,771
|
|
|
520,178
|
|
|
1,625,024
|
|
|
—
|
|
|
2,469,973
|
|
|||||
Total assets
|
$
|
14,209,829
|
|
|
$
|
6,314,629
|
|
|
$
|
6,018,851
|
|
|
$
|
(8,613,500
|
)
|
|
$
|
17,929,809
|
|
Current liabilities
|
$
|
848,885
|
|
|
$
|
910,487
|
|
|
$
|
2,526,581
|
|
|
$
|
—
|
|
|
$
|
4,285,953
|
|
Intercompany payables (receivables)
|
258,923
|
|
|
(759,128
|
)
|
|
500,205
|
|
|
—
|
|
|
—
|
|
|||||
Long-term debt
|
7,127,186
|
|
|
17,550
|
|
|
63,516
|
|
|
—
|
|
|
7,208,252
|
|
|||||
Other liabilities
|
631,875
|
|
|
321,406
|
|
|
104,421
|
|
|
—
|
|
|
1,057,702
|
|
|||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
34,942
|
|
|
—
|
|
|
34,942
|
|
|||||
Shareholders’ equity
|
5,342,960
|
|
|
5,824,314
|
|
|
2,789,186
|
|
|
(8,613,500
|
)
|
|
5,342,960
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
14,209,829
|
|
|
$
|
6,314,629
|
|
|
$
|
6,018,851
|
|
|
$
|
(8,613,500
|
)
|
|
$
|
17,929,809
|
|
|
Condensed Consolidating Statement of Comprehensive Income
|
||||||||||||||||||
|
For the 13-Week Period Ended Dec. 26, 2015
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Sales
|
$
|
—
|
|
|
$
|
8,199,071
|
|
|
$
|
4,392,744
|
|
|
$
|
(438,189
|
)
|
|
$
|
12,153,626
|
|
Cost of sales
|
—
|
|
|
6,670,025
|
|
|
3,764,976
|
|
|
(438,189
|
)
|
|
9,996,812
|
|
|||||
Gross profit
|
—
|
|
|
1,529,046
|
|
|
627,768
|
|
|
—
|
|
|
2,156,814
|
|
|||||
Operating expenses
|
206,476
|
|
|
939,213
|
|
|
578,542
|
|
|
—
|
|
|
1,724,231
|
|
|||||
Operating income (loss)
|
(206,476
|
)
|
|
589,833
|
|
|
49,226
|
|
|
—
|
|
|
432,583
|
|
|||||
Interest expense (income)
|
70,318
|
|
|
(40,019
|
)
|
|
16,936
|
|
|
—
|
|
|
47,235
|
|
|||||
Other expense (income), net
|
(4,836
|
)
|
|
(352
|
)
|
|
(2,576
|
)
|
|
—
|
|
|
(7,764
|
)
|
|||||
Earnings (losses) before income taxes
|
(271,958
|
)
|
|
630,204
|
|
|
34,866
|
|
|
—
|
|
|
393,112
|
|
|||||
Income tax (benefit) provision
|
(81,472
|
)
|
|
191,274
|
|
|
10,911
|
|
|
—
|
|
|
120,713
|
|
|||||
Equity in earnings of subsidiaries
|
462,885
|
|
|
—
|
|
|
—
|
|
|
(462,885
|
)
|
|
—
|
|
|||||
Net earnings
|
272,399
|
|
|
438,930
|
|
|
23,955
|
|
|
(462,885
|
)
|
|
272,399
|
|
|||||
Other comprehensive income (loss)
|
(37,638
|
)
|
|
—
|
|
|
(44,664
|
)
|
|
44,664
|
|
|
(37,638
|
)
|
|||||
Comprehensive income
|
$
|
234,761
|
|
|
$
|
438,930
|
|
|
$
|
(20,709
|
)
|
|
$
|
(418,221
|
)
|
|
$
|
234,761
|
|
|
Condensed Consolidating Statement of Comprehensive Income
|
||||||||||||||||||
|
For the 13-Week Period Ended Dec. 27, 2014
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Sales
|
$
|
—
|
|
|
$
|
8,027,990
|
|
|
$
|
4,407,159
|
|
|
$
|
(348,075
|
)
|
|
$
|
12,087,074
|
|
Cost of sales
|
—
|
|
|
6,574,759
|
|
|
3,775,253
|
|
|
(348,075
|
)
|
|
10,001,937
|
|
|||||
Gross profit
|
—
|
|
|
1,453,231
|
|
|
631,906
|
|
|
—
|
|
|
2,085,137
|
|
|||||
Operating expenses
|
256,612
|
|
|
913,137
|
|
|
599,942
|
|
|
—
|
|
|
1,769,691
|
|
|||||
Operating income (loss)
|
(256,612
|
)
|
|
540,094
|
|
|
31,964
|
|
|
—
|
|
|
315,446
|
|
|||||
Interest expense (income)
|
94,229
|
|
|
(24,501
|
)
|
|
7,314
|
|
|
—
|
|
|
77,042
|
|
|||||
Other expense (income), net
|
1,922
|
|
|
(365
|
)
|
|
650
|
|
|
—
|
|
|
2,207
|
|
|||||
Earnings (losses) before income taxes
|
(352,763
|
)
|
|
564,960
|
|
|
24,000
|
|
|
—
|
|
|
236,197
|
|
|||||
Income tax (benefit) provision
|
(121,267
|
)
|
|
191,470
|
|
|
8,015
|
|
|
—
|
|
|
78,218
|
|
|||||
Equity in earnings of subsidiaries
|
389,475
|
|
|
—
|
|
|
—
|
|
|
(389,475
|
)
|
|
—
|
|
|||||
Net earnings
|
157,979
|
|
|
373,490
|
|
|
15,985
|
|
|
(389,475
|
)
|
|
157,979
|
|
|||||
Other comprehensive income (loss)
|
(85,484
|
)
|
|
—
|
|
|
(91,853
|
)
|
|
91,853
|
|
|
(85,484
|
)
|
|||||
Comprehensive income
|
$
|
72,495
|
|
|
$
|
373,490
|
|
|
$
|
(75,868
|
)
|
|
$
|
(297,622
|
)
|
|
$
|
72,495
|
|
|
Condensed Consolidating Statement of Comprehensive Income
|
||||||||||||||||||
|
For the 26-Week Period Ended Dec. 26, 2015
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Sales
|
$
|
—
|
|
|
$
|
16,723,622
|
|
|
$
|
8,819,741
|
|
|
$
|
(827,126
|
)
|
|
$
|
24,716,237
|
|
Cost of sales
|
—
|
|
|
13,582,194
|
|
|
7,566,360
|
|
|
(827,126
|
)
|
|
20,321,428
|
|
|||||
Gross profit
|
—
|
|
|
3,141,428
|
|
|
1,253,381
|
|
|
—
|
|
|
4,394,809
|
|
|||||
Operating expenses
|
405,851
|
|
|
1,896,128
|
|
|
1,166,773
|
|
|
—
|
|
|
3,468,752
|
|
|||||
Operating income (loss)
|
(405,851
|
)
|
|
1,245,300
|
|
|
86,608
|
|
|
—
|
|
|
926,057
|
|
|||||
Interest expense (income)
|
216,415
|
|
|
(80,002
|
)
|
|
37,729
|
|
|
—
|
|
|
174,142
|
|
|||||
Other expense (income), net
|
(9,913
|
)
|
|
(829
|
)
|
|
(12,262
|
)
|
|
—
|
|
|
(23,004
|
)
|
|||||
Earnings (losses) before income taxes
|
(612,353
|
)
|
|
1,326,131
|
|
|
61,141
|
|
|
—
|
|
|
774,919
|
|
|||||
Income tax (benefit) provision
|
(203,956
|
)
|
|
441,691
|
|
|
20,365
|
|
|
—
|
|
|
258,100
|
|
|||||
Equity in earnings of subsidiaries
|
925,216
|
|
|
—
|
|
|
—
|
|
|
(925,216
|
)
|
|
—
|
|
|||||
Net earnings
|
516,819
|
|
|
884,440
|
|
|
40,776
|
|
|
(925,216
|
)
|
|
516,819
|
|
|||||
Other comprehensive income (loss)
|
(121,980
|
)
|
|
—
|
|
|
(227,849
|
)
|
|
227,849
|
|
|
(121,980
|
)
|
|||||
Comprehensive income
|
$
|
394,839
|
|
|
$
|
884,440
|
|
|
$
|
(187,073
|
)
|
|
$
|
(697,367
|
)
|
|
$
|
394,839
|
|
|
Condensed Consolidating Statement of Comprehensive Income
|
||||||||||||||||||
|
For the 26-Week Period Ended Dec. 27, 2014
|
||||||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
Totals
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Sales
|
$
|
—
|
|
|
$
|
16,350,298
|
|
|
$
|
8,871,628
|
|
|
$
|
(689,771
|
)
|
|
$
|
24,532,155
|
|
Cost of sales
|
—
|
|
|
13,349,267
|
|
|
7,598,805
|
|
|
(689,771
|
)
|
|
20,258,301
|
|
|||||
Gross profit
|
—
|
|
|
3,001,031
|
|
|
1,272,823
|
|
|
—
|
|
|
4,273,854
|
|
|||||
Operating expenses
|
447,509
|
|
|
1,845,332
|
|
|
1,199,954
|
|
|
—
|
|
|
3,492,795
|
|
|||||
Operating income (loss)
|
(447,509
|
)
|
|
1,155,699
|
|
|
72,869
|
|
|
—
|
|
|
781,059
|
|
|||||
Interest expense (income)
|
144,395
|
|
|
(45,975
|
)
|
|
9,556
|
|
|
—
|
|
|
107,976
|
|
|||||
Other expense (income), net
|
(480
|
)
|
|
(764
|
)
|
|
1,263
|
|
|
—
|
|
|
19
|
|
|||||
Earnings (losses) before income taxes
|
(591,424
|
)
|
|
1,202,438
|
|
|
62,050
|
|
|
—
|
|
|
673,064
|
|
|||||
Income tax (benefit) provision
|
(207,611
|
)
|
|
422,101
|
|
|
21,782
|
|
|
—
|
|
|
236,272
|
|
|||||
Equity in earnings of subsidiaries
|
820,605
|
|
|
—
|
|
|
—
|
|
|
(820,605
|
)
|
|
—
|
|
|||||
Net earnings
|
436,792
|
|
|
780,337
|
|
|
40,268
|
|
|
(820,605
|
)
|
|
436,792
|
|
|||||
Other comprehensive income (loss)
|
(185,993
|
)
|
|
—
|
|
|
(163,107
|
)
|
|
163,107
|
|
|
(185,993
|
)
|
|||||
Comprehensive income
|
$
|
250,799
|
|
|
$
|
780,337
|
|
|
$
|
(122,839
|
)
|
|
$
|
(657,498
|
)
|
|
$
|
250,799
|
|
|
Condensed Consolidating Cash Flows
|
||||||||||||||
|
For the 26-Week Period Ended Dec. 26, 2015
|
||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Consolidated
Totals
|
||||||||
|
(In thousands)
|
||||||||||||||
Cash flows provided by (used for):
|
|
|
|
|
|
|
|
||||||||
Operating activities
|
$
|
(576,817
|
)
|
|
$
|
427,995
|
|
|
$
|
617,703
|
|
|
$
|
468,881
|
|
Investing activities
|
123,371
|
|
|
(43,744
|
)
|
|
(246,913
|
)
|
|
(167,286
|
)
|
||||
Financing activities
|
(4,871,105
|
)
|
|
(1,003
|
)
|
|
76,773
|
|
|
(4,795,335
|
)
|
||||
Effect of exchange rates on cash
|
—
|
|
|
—
|
|
|
(40,702
|
)
|
|
(40,702
|
)
|
||||
Intercompany activity
|
679,954
|
|
|
(343,252
|
)
|
|
(336,702
|
)
|
|
—
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
(4,644,597
|
)
|
|
39,996
|
|
|
70,159
|
|
|
(4,534,442
|
)
|
||||
Cash and cash equivalents at the beginning of period
|
4,851,067
|
|
|
26,380
|
|
|
252,597
|
|
|
5,130,044
|
|
||||
Cash and cash equivalents at the end of period
|
$
|
206,470
|
|
|
$
|
66,376
|
|
|
$
|
322,756
|
|
|
$
|
595,602
|
|
|
Condensed Consolidating Cash Flows
|
||||||||||||||
|
For the 26-Week Period Ended Dec. 27, 2014
|
||||||||||||||
|
Sysco
|
|
Certain U.S.
Broadline
Subsidiaries
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Consolidated
Totals
|
||||||||
|
(In thousands)
|
||||||||||||||
Cash flows provided by (used for):
|
|
|
|
|
|
|
|
||||||||
Operating activities
|
$
|
(111,482
|
)
|
|
$
|
654,460
|
|
|
$
|
(90,540
|
)
|
|
$
|
452,438
|
|
Investing activities
|
(59,843
|
)
|
|
(62,747
|
)
|
|
(222,578
|
)
|
|
(345,168
|
)
|
||||
Financing activities
|
4,391,966
|
|
|
2,161
|
|
|
32,639
|
|
|
4,426,766
|
|
||||
Effect of exchange rates on cash
|
—
|
|
|
—
|
|
|
(39,405
|
)
|
|
(39,405
|
)
|
||||
Intercompany activity
|
324,639
|
|
|
(600,204
|
)
|
|
275,565
|
|
|
—
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
4,545,280
|
|
|
(6,330
|
)
|
|
(44,319
|
)
|
|
4,494,631
|
|
||||
Cash and cash equivalents at the beginning of period
|
158,957
|
|
|
27,772
|
|
|
226,317
|
|
|
413,046
|
|
||||
Cash and cash equivalents at the end of period
|
$
|
4,704,237
|
|
|
$
|
21,442
|
|
|
$
|
181,998
|
|
|
$
|
4,907,677
|
|
•
|
Partnership - Profoundly enrich the experience of doing business with Sysco;
|
•
|
Productivity - Continuously improve productivity in all areas of our business;
|
•
|
Products - Enhance offerings through a customer-centric innovation program;
|
•
|
People - Implement enterprise-wide talent management process; and
|
•
|
Expansion - Explore, assess and pursue new businesses and markets.
|
•
|
Local cases grew 2.8% in our Broadline business;
|
•
|
We grew gross profit by
$121.0 million
, expanded gross margin by
36
basis points, and gross profit grew modestly faster than total operating expenses; and
|
•
|
Operating income grew by
18.6%
and adjusted operating income grew by
4.2%
.
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||
Sales
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of sales
|
82.3
|
|
|
82.7
|
|
|
82.2
|
|
|
82.5
|
|
Gross profit
|
17.7
|
|
|
17.3
|
|
|
17.8
|
|
|
17.5
|
|
Operating expenses
|
14.2
|
|
|
14.6
|
|
|
14.0
|
|
|
14.4
|
|
Operating income
|
3.6
|
|
|
2.7
|
|
|
3.7
|
|
|
3.1
|
|
Interest expense
|
0.4
|
|
|
0.6
|
|
|
0.7
|
|
|
0.4
|
|
Other expense (income), net
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
Earnings before income taxes
|
3.2
|
|
|
2.1
|
|
|
3.1
|
|
|
2.7
|
|
Income taxes
|
1.0
|
|
|
0.7
|
|
|
1.0
|
|
|
1.0
|
|
Net earnings
|
2.2
|
%
|
|
1.4
|
%
|
|
2.1
|
%
|
|
1.7
|
%
|
|
13-Week Period Ended
|
|
26-Week Period Ended
|
|
||
Sales
|
0.6
|
|
%
|
0.8
|
|
%
|
Cost of sales
|
(0.1
|
)
|
|
0.3
|
|
|
Gross profit
|
3.4
|
|
|
2.8
|
|
|
Operating expenses
|
(2.6
|
)
|
|
(0.7
|
)
|
|
Operating income
|
37.1
|
|
|
18.6
|
|
|
Interest expense
|
(38.7
|
)
|
|
61.3
|
|
|
Other expense (income), net
|
(451.8
|
)
|
(1)
|
(121,173.7
|
)
|
(2)
|
Earnings before income taxes
|
66.4
|
|
|
15.1
|
|
|
Income taxes
|
54.3
|
|
|
9.2
|
|
|
Net earnings
|
72.4
|
|
%
|
18.3
|
|
%
|
Basic earnings per share
|
77.8
|
|
%
|
20.3
|
|
%
|
Diluted earnings per share
|
77.8
|
|
|
20.5
|
|
|
Average shares outstanding
|
(4.0
|
)
|
|
(1.3
|
)
|
|
Diluted shares outstanding
|
(4.1
|
)
|
|
(1.4
|
)
|
|
|
13-Week Period Ended Dec. 26, 2015
|
|
13-Week Period Ended Dec. 27, 2014
|
|
13-Week Period Ended Change in Dollars
|
|
13-Week Period
% Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Gross profit
|
$
|
2,156,814
|
|
|
$
|
2,085,137
|
|
|
$
|
71,677
|
|
|
3.4
|
%
|
Operating expenses
|
1,724,231
|
|
|
1,769,691
|
|
|
(45,460
|
)
|
|
(2.6
|
)
|
|||
Operating income
|
$
|
432,583
|
|
|
$
|
315,446
|
|
|
$
|
117,137
|
|
|
37.1
|
%
|
|
|
|
|
|
|
|
|
|||||||
Gross profit
|
$
|
2,156,814
|
|
|
$
|
2,085,137
|
|
|
$
|
71,677
|
|
|
3.4
|
%
|
Adjusted operating expenses (Non-GAAP)
|
1,719,950
|
|
|
1,688,882
|
|
|
31,068
|
|
|
1.8
|
|
|||
Adjusted operating income (Non-GAAP)
|
$
|
436,864
|
|
|
$
|
396,255
|
|
|
$
|
40,609
|
|
|
10.2
|
%
|
|
26-Week Period Ended Dec. 26, 2015
|
|
26-Week Period Ended Dec. 27, 2014
|
|
26-Week Period Ended Change in Dollars
|
|
26-Week Period
% Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Gross profit
|
$
|
4,394,809
|
|
|
$
|
4,273,854
|
|
|
$
|
120,955
|
|
|
2.8
|
%
|
Operating expenses
|
3,468,752
|
|
|
3,492,795
|
|
|
(24,043
|
)
|
|
(0.7
|
)
|
|||
Operating income
|
$
|
926,057
|
|
|
$
|
781,059
|
|
|
$
|
144,998
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|||||||
Gross profit
|
$
|
4,394,809
|
|
|
$
|
4,273,854
|
|
|
$
|
120,955
|
|
|
2.8
|
%
|
Adjusted operating expenses (Non-GAAP)
|
3,451,466
|
|
|
3,368,551
|
|
|
82,915
|
|
|
2.5
|
|
|||
Adjusted operating income (Non-GAAP)
|
$
|
943,343
|
|
|
$
|
905,303
|
|
|
$
|
38,040
|
|
|
4.2
|
%
|
|
13-Week Period Ended Dec. 26, 2015
|
|
13-Week Period Ended Dec. 27, 2014
|
|
13-Week Period Change in Dollars
|
|
13-Week Period
% Change
(3)
|
|||||||
|
(In thousands, except for share and per share data)
|
|||||||||||||
Operating expenses (GAAP)
|
$
|
1,724,231
|
|
|
$
|
1,769,691
|
|
|
$
|
(45,460
|
)
|
|
(2.6
|
)%
|
Impact of restructuring cost
|
(4,281
|
)
|
|
(2,790
|
)
|
|
(1,491
|
)
|
|
53.4
|
%
|
|||
Impact of US Foods merger and integration planning costs
|
—
|
|
|
(78,019
|
)
|
|
78,019
|
|
|
NM
|
|
|||
Adjusted operating expenses (Non-GAAP)
|
$
|
1,719,950
|
|
|
$
|
1,688,882
|
|
|
$
|
31,068
|
|
|
1.8
|
%
|
Operating income (GAAP)
|
$
|
432,583
|
|
|
$
|
315,446
|
|
|
$
|
117,137
|
|
|
37.1
|
%
|
Impact of restructuring cost
|
4,281
|
|
|
2,790
|
|
|
1,491
|
|
|
53.4
|
%
|
|||
Impact of US Foods merger and integration planning costs
|
—
|
|
|
78,019
|
|
|
(78,019
|
)
|
|
NM
|
|
|||
Adjusted operating income (Non-GAAP)
|
$
|
436,864
|
|
|
$
|
396,255
|
|
|
$
|
40,609
|
|
|
10.2
|
%
|
Interest expense (GAAP)
|
$
|
47,235
|
|
|
$
|
77,042
|
|
|
$
|
(29,807
|
)
|
|
(38.7
|
)%
|
Impact of US Foods financing costs
|
—
|
|
|
(52,057
|
)
|
|
52,057
|
|
|
NM
|
|
|||
Adjusted interest expense (Non-GAAP)
|
$
|
47,235
|
|
|
$
|
24,985
|
|
|
$
|
22,250
|
|
|
89.1
|
%
|
Net earnings (GAAP)
(1)
|
$
|
272,399
|
|
|
$
|
157,979
|
|
|
$
|
114,420
|
|
|
72.4
|
%
|
Impact of restructuring cost (net of tax)
|
2,966
|
|
|
1,819
|
|
|
1,147
|
|
|
63.1
|
%
|
|||
Impact of US Foods merger and integration planning costs (net of tax)
|
—
|
|
|
50,876
|
|
|
(50,876
|
)
|
|
NM
|
|
|||
Impact of US Foods Financing Costs (net of tax)
|
—
|
|
|
33,946
|
|
|
(33,946
|
)
|
|
NM
|
|
|||
Adjusted net earnings (Non-GAAP)
(1)
|
$
|
275,365
|
|
|
$
|
244,620
|
|
|
$
|
30,745
|
|
|
12.6
|
%
|
Diluted earnings per share (GAAP)
(1)
|
$
|
0.48
|
|
|
$
|
0.27
|
|
|
$
|
0.21
|
|
|
77.8
|
%
|
Impact of restructuring cost
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
NM
|
|
|||
Impact of US Foods merger and integration planning costs
|
—
|
|
|
0.09
|
|
|
(0.09
|
)
|
|
NM
|
|
|||
Impact of US Foods Financing Costs
|
—
|
|
|
0.06
|
|
|
(0.06
|
)
|
|
NM
|
|
|||
Adjusted diluted earnings per share (Non-GAAP)
(1), (2)
|
$
|
0.48
|
|
|
$
|
0.41
|
|
|
$
|
0.07
|
|
|
17.1
|
%
|
Diluted shares outstanding
|
571,452,124
|
|
|
595,911,680
|
|
|
|
|
|
|
|
|
26-Week Period Ended Dec. 26, 2015
|
|
26-Week Period Ended Dec. 27, 2014
|
|
26-Week Period Change in Dollars
|
|
26-Week Period
% Change
(3)
|
|||||||
|
(In thousands, except for share and per share data)
|
|||||||||||||
Operating expenses (GAAP)
|
$
|
3,468,752
|
|
|
$
|
3,492,795
|
|
|
$
|
(24,043
|
)
|
|
(0.7
|
)%
|
Impact of restructuring cost
|
(7,470
|
)
|
|
(5,745
|
)
|
|
(1,725
|
)
|
|
30.0
|
%
|
|||
Impact of US Foods merger and integration planning costs
|
(9,816
|
)
|
|
(118,499
|
)
|
|
108,683
|
|
|
(91.7
|
)%
|
|||
Adjusted operating expenses (Non-GAAP)
|
$
|
3,451,466
|
|
|
$
|
3,368,551
|
|
|
$
|
82,915
|
|
|
2.5
|
%
|
Operating income (GAAP)
|
$
|
926,057
|
|
|
$
|
781,059
|
|
|
$
|
144,998
|
|
|
18.6
|
%
|
Impact of restructuring cost
|
7,470
|
|
|
5,745
|
|
|
1,725
|
|
|
30.0
|
%
|
|||
Impact of US Foods merger and integration planning costs
|
9,816
|
|
|
118,499
|
|
|
(108,683
|
)
|
|
(91.7
|
)%
|
|||
Adjusted operating income (Non-GAAP)
|
$
|
943,343
|
|
|
$
|
905,303
|
|
|
$
|
38,040
|
|
|
4.2
|
%
|
Interest expense (GAAP)
|
$
|
174,142
|
|
|
$
|
107,976
|
|
|
$
|
66,166
|
|
|
61.3
|
%
|
Impact of US Foods financing costs
|
(94,835
|
)
|
|
(55,761
|
)
|
|
(39,074
|
)
|
|
70.1
|
%
|
|||
Adjusted interest expense (Non-GAAP)
|
$
|
79,307
|
|
|
$
|
52,215
|
|
|
$
|
27,092
|
|
|
51.9
|
%
|
Net earnings (GAAP)
(1)
|
$
|
516,819
|
|
|
$
|
436,792
|
|
|
$
|
80,027
|
|
|
18.3
|
%
|
Impact of restructuring cost (net of tax)
|
4,683
|
|
|
3,729
|
|
|
954
|
|
|
25.6
|
%
|
|||
Impact of US Foods merger and integration planning costs (net of tax)
|
6,154
|
|
|
76,901
|
|
|
(70,747
|
)
|
|
(92.0
|
)%
|
|||
Impact of US Foods Financing Costs (net of tax)
|
59,452
|
|
|
36,187
|
|
|
23,265
|
|
|
64.3
|
%
|
|||
Adjusted net earnings (Non-GAAP)
(1)
|
$
|
587,108
|
|
|
$
|
553,609
|
|
|
$
|
33,499
|
|
|
6.1
|
%
|
Diluted earnings per share (GAAP)
(1)
|
$
|
0.88
|
|
|
$
|
0.73
|
|
|
$
|
0.15
|
|
|
20.5
|
%
|
Impact of restructuring cost
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
NM
|
|
|||
Impact of US Foods merger and integration planning costs
|
0.01
|
|
|
0.13
|
|
|
(0.12
|
)
|
|
(92.3
|
)%
|
|||
Impact of US Foods Financing Costs
|
0.10
|
|
|
0.06
|
|
|
0.04
|
|
|
66.7
|
%
|
|||
Adjusted diluted earnings per share (Non-GAAP)
(1), (2)
|
$
|
1.00
|
|
|
$
|
0.93
|
|
|
$
|
0.07
|
|
|
7.5
|
%
|
Diluted shares outstanding
|
586,121,013
|
|
|
594,610,315
|
|
|
|
|
|
|
Operating Income as a
Percentage of Sales
|
|
Operating Income as a
Percentage of Sales
|
||||||||
|
13-Week Period Ended
|
|
26-Week Period Ended
|
||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||
Broadline
|
6.6
|
%
|
|
6.1
|
%
|
|
6.9
|
%
|
|
6.5
|
%
|
SYGMA
|
0.4
|
|
|
0.5
|
|
|
0.4
|
|
|
0.4
|
|
Other
|
2.5
|
|
|
2.6
|
|
|
2.3
|
|
|
2.8
|
|
|
Increase (Decrease)
|
|
Increase (Decrease)
|
||||||||
|
13-Week Period
|
|
26-Week Period
|
||||||||
|
Sales
|
|
Operating
Income
|
|
Sales
|
|
Operating
Income
|
||||
Broadline
|
0.6
|
%
|
|
8.7
|
%
|
|
0.6
|
%
|
|
7.2
|
%
|
SYGMA
|
(3.4
|
)
|
|
(23.7
|
)
|
|
(4.8
|
)
|
|
(13.7
|
)
|
Other
|
10.9
|
|
|
9.4
|
|
|
10.1
|
|
|
(11.3
|
)
|
|
Components of Segment Results
|
||||||||||
|
13-Week Period Ended
|
||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
|
Sales
|
|
Segment Operating
Income
|
|
Sales
|
|
Segment Operating
Income
|
||||
Broadline
|
79
|
%
|
|
93.7
|
%
|
|
79
|
%
|
|
93.4
|
%
|
SYGMA
|
12.4
|
|
|
0.9
|
|
|
12.9
|
|
|
1.3
|
|
Other
|
11.9
|
|
|
5.5
|
|
|
10.8
|
|
|
5.4
|
|
|
(3.3
|
)
|
|
—
|
|
|
(2.7
|
)
|
|
—
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Components of Segment Results
|
||||||||||
|
26-Week Period Ended
|
||||||||||
|
Dec. 26, 2015
|
|
Dec. 27, 2014
|
||||||||
|
Sales
|
|
Segment Operating
Income
|
|
Sales
|
|
Segment Operating
Income
|
||||
Broadline
|
79.4
|
%
|
|
94.8
|
%
|
|
79.6
|
%
|
|
93.8
|
%
|
SYGMA
|
11.9
|
|
|
0.8
|
|
|
12.6
|
|
|
1.0
|
|
Other
|
11.4
|
|
|
4.4
|
|
|
10.4
|
|
|
5.3
|
|
|
(2.8
|
)
|
|
—
|
|
|
(2.6
|
)
|
|
—
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
•
|
Cash flows from operations were $
468.9 million
in 2016 compared to $
452.4 million
in 2015;
.
|
•
|
Capital expenditures totaled $
248.2 million
in 2016 compared to $
298.1 million
in 2015;
|
•
|
Free cash flow was $
231.5 million
in 2016 compared to $
156.5 million
in 2015 (see "Non-GAAP reconciliation" below under the heading “Free Cash Flow”);
|
•
|
Cash used for acquisition of businesses was $
98.2 million
in 2016 compared to $
29.2 million
in 2015;
|
•
|
There were
no
net bank borrowings in 2016 compared to net bank borrowings of $
130.0 million
in 2015;
|
•
|
Dividends paid were $
348.4 million
in 2016 compared to $
340.7 million
in 2015; and
|
•
|
An accelerated share repurchase program of $1.5 billion was commenced during the first 26 weeks of fiscal 2015, and we began repurchasing shares from our other share repurchase program, which is intended to offset dilution from stock issuances.
|
•
|
working capital requirements;
|
•
|
investments in facilities, systems, fleet, other equipment and technology;
|
•
|
return of capital to shareholders, including cash dividends and share repurchases;
|
•
|
acquisitions compatible with our overall growth strategy;
|
•
|
contributions to our various retirement plans; and
|
•
|
debt repayments.
|
•
|
our cash flows from operations;
|
•
|
the availability of additional capital under our existing commercial paper programs, supported by our revolving credit facility and bank line of credit;
|
•
|
our ability to access capital from financial markets, including issuances of debt securities, either privately or under our shelf registration statement filed with the Securities and Exchange Commission (SEC); and
|
|
26-Week Period Ended Dec. 26, 2015
|
|
26-Week Period Ended Dec. 27, 2014
|
|
26-Week Period Change in Dollars
|
|
26-Week Period
% Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Net cash provided by operating activities (GAAP)
|
$
|
468,881
|
|
|
$
|
452,438
|
|
|
$
|
16,443
|
|
|
3.6
|
%
|
Additions to plant and equipment
|
(248,233
|
)
|
|
(298,068
|
)
|
|
49,835
|
|
|
(16.7
|
)
|
|||
Proceeds from sales of plant and equipment
|
10,827
|
|
|
2,130
|
|
|
8,697
|
|
|
408.3
|
|
|||
Free Cash Flow (Non-GAAP)
|
$
|
231,475
|
|
|
$
|
156,500
|
|
|
$
|
74,975
|
|
|
(47.9
|
)%
|
•
|
$36.0 million
outstanding from our commercial paper program
|
•
|
No amounts outstanding from the credit facility supporting the company’s U.S. and Canadian commercial paper programs.
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
< 1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Recorded Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt
|
$
|
4,310,428
|
|
|
$
|
29,238
|
|
|
$
|
1,255,420
|
|
|
$
|
765,105
|
|
|
$
|
2,260,665
|
|
Unrecorded Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest payments related to long-term debt
|
$
|
2,778,551
|
|
|
$
|
179,195
|
|
|
$
|
358,390
|
|
|
$
|
291,090
|
|
|
$
|
1,949,876
|
|
Total contractual cash obligations
|
$
|
7,088,979
|
|
|
$
|
208,433
|
|
|
$
|
1,613,810
|
|
|
$
|
1,056,195
|
|
|
$
|
4,210,541
|
|
•
|
Sysco’s ability to increase its sales and market share and grow earnings, and our plan to continue to explore appropriate opportunities to profitably grow market share and create shareholder value;
|
•
|
Sysco’s belief regarding accounting treatment for certain transactions;
|
•
|
expectations regarding interest expense;
|
•
|
the impact of ongoing legal proceedings and estimates of potential liability;
|
•
|
the impact of general economic conditions on our business and our industry;
|
•
|
statements regarding inflation and other economic trends;
|
•
|
expectations regarding deflation and foreign currency translation and the related impact on our results;
|
•
|
expectations regarding earnings per share;
|
•
|
expectations regarding our efforts to manage expenses;
|
•
|
beliefs regarding factors that impact our operating margins;
|
•
|
our plans related to locally managed sales and ongoing gross margin pressures;
|
•
|
expectations related to the strategies that we have identified to help us achieve our mission and vision;
|
•
|
our plans and expectations regarding our three-year strategic plan, including goals related to operating income and return on invested capital;
|
•
|
expectations regarding restructuring costs;
|
•
|
expectations related to cost per case for our U.S. Broadline companies;
|
•
|
our goal of leveraging earnings growth at a greater rate than sales growth;
|
•
|
expectations regarding operating income and sales for our business segments over the long-term;
|
•
|
expectations regarding the allocation of cash generated from operations;
|
•
|
the impact of acquisitions and sales of assets and businesses on our liquidity, borrowing capacity, leverage ratios and capital availability;
|
•
|
Sysco’s expectations regarding cash held by international subsidiaries;
|
•
|
the sufficiency of our mechanisms for managing working capital and competitive pressures, and our beliefs regarding the impact of these mechanisms;
|
•
|
Sysco’s ability to meet future cash requirements, including the ability to access debt markets effectively, and remain profitable;
|
•
|
Sysco’s ability to effectively access the commercial paper market and long-term capital markets;
|
•
|
Sysco’s expectations regarding cash flows from operations over the long-term, and the factors impacting such cash flows;
|
•
|
our expectations regarding free cash flow;
|
•
|
expectations regarding capital expenditures;
|
•
|
expectations regarding tax expense and benefits;
|
•
|
expectations regarding tax rates;
|
•
|
expectations regarding the return of letters of credit in certain tax jurisdictions;
|
•
|
expectations regarding acquisitions and related accounting treatment;
|
•
|
our strategy and expectations regarding share repurchases and shares outstanding; and
|
•
|
expectations related to our forward diesel fuel commitments.
|
•
|
periods of significant or prolonged inflation or deflation and their impact on our product costs and profitability;
|
•
|
risks related to unfavorable conditions in the U.S. economy and local markets and the impact on our results of operations and financial condition;
|
•
|
the risk that competition in our industry may adversely impact our margins and our ability to retain customers and make it difficult for us to maintain our market share, growth rate and profitability;
|
•
|
the risk that we may not be able to fully compensate for increases in fuel costs, and forward purchase commitments intended to contain fuel costs could result in above market fuel costs;
|
•
|
the risk of interruption of supplies and increase in product costs as a result of conditions beyond our control;
|
•
|
the potential impact on our reputation and earnings of adverse publicity or lack of confidence in our products;
|
•
|
risks related to unfavorable changes to the mix of locally managed customers versus corporate-managed customers;
|
•
|
the risk that we may not realize anticipated benefits from our operating cost reduction efforts;
|
•
|
difficulties in successfully expanding into international markets and complimentary lines of business;
|
•
|
the potential impact of product liability claims;
|
•
|
the risk that we fail to comply with requirements imposed by applicable law or government regulations;
|
•
|
risks related to our ability to effectively finance and integrate acquired businesses;
|
•
|
our access to borrowed funds in order to grow and any default by us under our indebtedness that could have a material adverse impact on cash flow and liquidity;
|
•
|
our level of indebtedness and the terms of our indebtedness could adversely affect our business and liquidity position;
|
•
|
the impact on our liquidity by payments required to appeal tax assessments with certain tax jurisdictions;
|
•
|
due to our reliance on technology, any technology disruption or delay in implementing new technology could have a material negative impact on our business;
|
•
|
the risk that a cybersecurity incident and other technology disruptions could negatively impact our business and our relationships with customers;
|
•
|
the potential requirement to pay material amounts under our multiemployer defined benefit pension plans;
|
•
|
our funding requirements for our company-sponsored qualified pension plan may increase should financial markets experience future declines;
|
•
|
labor issues, including the renegotiation of union contracts and shortage of qualified labor; and
|
•
|
the risk that the anti-takeover benefits provided by our preferred stock may not be viewed as beneficial to stockholders.
|
Maturity Date of Swap
|
|
Notional Value
(in millions)
|
|
Fixed Coupon Rate on Hedged Debt
|
|
Floating Interest Rate on Swap
|
|
Floating Rate Reset Terms
|
|
Location of Fair Value on Balance Sheet
|
|
Fair Value
of Asset (Liability)
(in thousands)
|
|||||
February 12, 2018
|
|
$
|
500
|
|
|
5.25
|
%
|
|
Six-month LIBOR
|
|
Every six months in advance
|
|
Other assets
|
|
$
|
3,936
|
|
October 1, 2020
|
|
$
|
750
|
|
|
2.60
|
%
|
|
Six-month LIBOR
|
|
Every six months in advance
|
|
Other long-term liabilities
|
|
$
|
(6,575
|
)
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
|||||||||
Period
|
(a) Total Number of Shares Purchased
(1)
|
(b) Average Price Paid per Share
|
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
|
|||||
Month #1
|
|
|
|
|
|||||
September 27 – October 24
|
32,329,218
|
|
$
|
39.45
|
|
32,319,392
|
|
20,000,000
|
|
Month #2
|
|
|
|
|
|
||||
October 25 – November 21
|
11,539
|
|
40.87
|
|
—
|
|
20,000,000
|
|
|
Month #3
|
|
|
|
|
|
||||
November 22 – December 26
|
536,292
|
|
41.09
|
|
526,500
|
|
19,473,500
|
|
|
|
|
|
|
|
|||||
Total
|
32,877,049
|
|
$
|
41.08
|
|
32,845,892
|
|
19,473,500
|
|
|
Sysco Corporation
|
|
(Registrant)
|
|
By
|
/s/ WILLIAM J. DELANEY
|
|
|
William J. DeLaney
|
|
|
Chief Executive Officer
|
|
|
|
Date: February 1, 2016
|
|
|
|
By
|
/s/ JOEL T. GRADE
|
|
|
Joel T. Grade
|
|
|
Executive Vice President and
|
|
|
Chief Financial Officer
|
|
|
|
Date: February 1, 2016
|
|
|
3.1
|
|
—
|
Restated Certificate of Incorporation, incorporated by reference to Exhibit 3(a) to Form 10-K for the year ended June 28, 1997 (File No. 1-6544).
|
|
|
|
|
3.2
|
|
—
|
Certificate of Amendment to Restated Certificate of Incorporation increasing authorized shares, incorporated by reference to Exhibit 3(e) to Form 10-Q for the quarter ended December 27, 2003 (File No. 1-6544).
|
|
|
|
|
3.3
|
|
—
|
Form of Amended Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock, incorporated by reference to Exhibit 3(c) to Form 10-K for the year ended June 29, 1996 (File No. 1-6544).
|
|
|
|
|
3.4
|
|
—
|
Amended and Restated Bylaws of Sysco Corporation dated November 17, 2015, incorporated by reference to Exhibit 3.2 to Form 8-K filed on November 18, 2015 (File No. 1-6544).
|
|
|
|
|
4.1
|
|
—
|
Twenty-Second Supplemental Indenture dated as of September 28, 2015 among Sysco, the Guarantors and the Trustee relating to the addition of new guarantors under the Indenture, incorporated by reference to Exhibit 4.1 to Form 8-K filed on September 28, 2015 (File No. 1-6544).
|
|
|
|
|
4.2
|
|
—
|
Twenty-Third Supplemental Indenture, including form of Note, dated as of September 28, 2015 among Sysco, the Guarantors and the Trustee relating to the 2020 Notes, incorporated by reference to Exhibit 4.2 to Form 8-K filed on September 28, 2015 (File No. 1-6544).
|
|
|
|
|
4.3
|
|
—
|
Twenty-Fourth Supplemental Indenture, including form of Note, dated as of September 28, 2015 among Sysco, the Guarantors and the Trustee relating to the 2025 Notes, incorporated by reference to Exhibit 4.4 to Form 8-K filed on September 28, 2015 (File No. 1-6544).
|
|
|
|
|
4.4
|
|
—
|
Twenty-Fifth Supplemental Indenture, including form of Note, dated as of September 28, 2015 among Sysco, the Guarantors and the Trustee relating to the 2045 Notes, incorporated by reference to Exhibit 4.6 to Form 8-K filed on September 28, 2015 (File No. 1-6544).
|
|
|
|
|
10.1#†
|
|
Form of Restricted Stock Unit Award Agreement (Fiscal Year 2016) for executive officers under the Sysco Corporation 2013 Long-Term Incentive Plan.
|
|
|
|
|
|
10.2#†
|
|
Form of Stock Option Grant Agreement (Fiscal Year 2016) for executive officers under the Sysco Corporation 2013 Long-Term Incentive Plan.
|
|
|
|
|
|
12.1#
|
—
|
Statement regarding Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
|
|
15.1#
|
—
|
Review Report from Ernst & Young LLP dated February 1, 2016, re: unaudited financial statements.
|
|
|
|
|
|
15.2#
|
—
|
Acknowledgement letter from Ernst & Young LLP.
|
|
|
|
|
|
31.1#
|
—
|
CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
31.2#
|
—
|
CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
32.1*
|
—
|
CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
32.2*
|
—
|
CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
101.1#
|
—
|
The following financial information from Sysco Corporation’s Quarterly Report on Form 10-Q for the quarter ended December 26, 2015 filed with the SEC on February 1, 2016, formatted in XBRL includes: (i) Consolidated Balance Sheets as of December 26, 2015, June 27, 2015 and December 27, 2014, (ii) Consolidated Results of Operations for the thirteen and twenty six week periods ended December 26, 2015 and December 27, 2014, (iii) Consolidated Statements of Comprehensive Income for the thirteen and twenty six week periods ended December 26, 2015 and December 27, 2014, (iv) Consolidated Cash Flows for the twenty six week period ended December 26, 2015 and December 27, 2014, and (v) the Notes to Consolidated Financial Statements.
|
(a)
|
Notwithstanding any other term of the Agreement or any prior agreement to the contrary, in order to be eligible to vest in any portion of the Award, Grantee must have entered into an agreement containing restrictive covenants concerning limitations of Grantee’s behavior following termination of employment that is satisfactory to the Company or one of its Subsidiaries. Grantee further agrees that to the extent permitted by applicable law, that upon demand by the Company or one of its Subsidiaries to forfeit, return or repay the “Benefits and Proceeds” (as
|
(b)
|
For purposes of this Agreement, “Benefits and Proceeds” means:
|
(i)
|
to the extent Grantee has received any shares of Stock in satisfaction of the Restricted Stock Units and Grantee continues to hold those shares of Stock, the shares of Stock so acquired;
|
(ii)
|
to the extent Grantee has received any shares of Stock in satisfaction of the Restricted Stock Units and no longer owns the shares of Stock so acquired, cash in an amount equal to the Fair Market Value of such shares of Stock on the date such payment is demanded by the Company (which, unless otherwise determined by the Committee, shall be equal to the closing sale price during regular trading hours of the shares of Stock as reported by the New York Stock Exchange on such date);
|
(iii)
|
to the extent Grantee has not received any shares of Stock in satisfaction of the Restricted Stock Units, all of Grantee’s remaining rights, title or interest in the Restricted Stock Units; and
|
(iv)
|
cash in amount equal to any Dividend Equivalents paid in connection with the Restricted Stock Units.
|
1.
|
Please carefully review all of the provisions of the Sysco Corporation 2013 Long-Term Incentive Plan, as amended (the “Plan”). In addition to the conditions set forth in the Plan, the Option is contingent upon satisfying the terms and conditions set forth in this document. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Plan.
|
2.
|
The shares subject to the Option will vest in five equal tranches over a period of five years (
i.e.
one-fifth on each of the first, second, third, fourth, and fifth anniversaries of the Grant Date), subject to any acceleration provisions contained in the Plan or otherwise set forth in this Agreement and Optionee’s continued employment or service with the Company or any of its Subsidiaries from the Grant Date through the applicable vesting date (each date on which portion of the Option vest pursuant to this Agreement, a “Vesting Date”).
|
3.
|
This Option will expire at the close of business on the tenth anniversary of the date of grant.
|
4.
|
The vested portion of the Option may be exercised at any time after its applicable Vesting Date, provided that at the time of the exercise all of the conditions set forth in the Plan and in this document have been met. No portion of the Option may be exercised prior to the first anniversary of the Grant Date.
|
5.
|
The Option awarded pursuant to this Agreement will vest according to the schedule set forth in Section 2 of this Agreement, subject to Optionee’s continued service with the Company or one of its Subsidiaries through each applicable Vesting Date. Notwithstanding the foregoing, provided that Optionee has been in continuous service with the Company or one of its Subsidiaries since the Grant Date through the date of termination of his or her employment, (a) all Options subject to this Award shall remain in effect and continue to vest according to the vesting schedule set forth on the first page of this Agreement, irrespective of the continuous service limitations set forth in the first sentence of this Section 5, upon the occurrence of (i) Optionee’s termination of employment by reason of Retirement in Good Standing or (ii) Optionee’s Disability, and (b) the Option shall immediately vest, irrespective of the continuous service limitations set forth in the first sentence of this Section 5, upon the occurrence of (i) a “Change in Control Termination” (as defined below) or (ii) Optionee’s termination of employment by reason of death.
|
6.
|
For purposes of this Agreement:
|
a.
|
“Retirement in Good Standing” means termination of employment after the date Optionee reaches (i) age 55 and Optionee has 10 or more years of service with Sysco, or (ii) age 65, regardless of years of Sysco service.
|
b.
|
“Disability” means that Optionee has been determined by the Social Security Administration to be totally disabled.
|
c.
|
“Change in Control Termination” means the occurrence of both: (A) a Change in Control and (B) during the period commencing 12 months prior to the first occurrence of the Change in Control and ending 24 months after such Change in Control, the Company or one of its Subsidiaries involuntarily terminates Optionee’s employment without Cause or Optionee terminates employment for Good Reason.
|
d.
|
“Good Reason” means:
|
i.
|
a material diminution of Optionee’s authority, duties or responsibilities;
|
ii.
|
a material change in the geographic location at which Optionee must perform services for the Company or its Subsidiaries;
|
iii.
|
a material diminution in the authority, duties or responsibilities of the supervisor to whom Optionee is required to report; or
|
iv.
|
a material diminution in Optionee’s base compensation.
|
7.
|
The Option will normally terminate on the earlier of (i) the date of the expiration of the Option or (ii) the 90th day after severance of Optionee’s employment relationship with the Company or any Subsidiary, as defined in the Plan, for any reason, for or without cause. Whether an authorized leave of absence, or an absence for military or government service, constitutes severance of Optionee’s employment relationship with the Company or a Subsidiary will be determined by the Committee administering the Plan at the time of the event. However, if before the expiration of the Option, Optionee’s employment relationship with the Company or a Subsidiary terminates as a result of Retirement in Good Standing, Change in Control Termination, or Disability, the Option will remain exercisable in accordance with its terms as if Optionee remained an employee of the Company or a Subsidiary, and in the event of Optionee’s death while employed by the Company or any Subsidiary,
|
8.
|
No right or interest of Optionee in the Option may be pledged, encumbered, or hypothecated or be made subject to any lien, obligation or liability of Optionee other than as provided in Section 8. The Option may not be sold, assigned, transferred or otherwise disposed of by Optionee other than by will or the laws of descent and distribution.
|
9.
|
By accepting this Award, Optionee acknowledges and agrees that nothing in this Agreement (a) shall be deemed an offer of employment to Optionee; (b) shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate Optionee’s employment at any time, or (c) shall confer upon Optionee any right to continue in employment of the Company or any Subsidiary.
|
10.
|
At the time or times when Optionee wishes to exercise the Option, Optionee shall be required to follow the procedures established for doing so, which the Committee may revise from time to time.. Notice of exercise of the Option must be accompanied by a payment equal to the applicable Option exercise price plus all withholding taxes due, if any, such amount to be paid in cash or by tendering, either by actual delivery of shares or by attestation, shares of common stock that are acceptable to the Committee, such shares to be valued at Fair Market Value, as defined in the Plan, as of the day the shares are tendered, or paid in any combination of cash and shares, as determined by the Committee. To the extent permitted by applicable law and the policies adopted from time to time by the Committee, Optionee may elect to pay the exercise price through the contemporaneous sale by a third party broker of shares of common stock acquired upon exercise yielding net sales proceeds equal to the exercise price and any withholding tax due and the remission of those sale proceeds to the Company.
|
11.
|
Optionee consents and agrees to electronic delivery of any Plan documents, proxy materials, annual reports or other related documents, and to the electronic review, confirmation and acceptance procedures governing this grant of Options. Optionee consents and agrees that any such electronic procedures may be effected by a third party engaged by the Company to provide administrative services related to the Plan, including any program adopted under the Plan. Optionee further agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature. Optionee acknowledges and agrees that the Company may provide personal information regarding Optionee and any award of Options under the Plan, included but not limited to this Award, to any third party engaged by the Company to provide administrative or brokerage services related to the Plan.
|
12.
|
The Option shall be subject to and governed by the laws of the State of Texas.
This Agreement, together with this document and the Plan, contains the entire agreement of you and the Company with respect to the Option, and no representation, inducement, promise, or agreement or other similar understanding between you and the Company not embodied herein shall be of any force or effect, and the Company will not be liable or bound in any manner for any warranty, representation, or covenant except as specifically set forth herein or in the Plan.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Sysco Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Sysco Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
The company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 26, 2015 (“Quarterly Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
2.
|
All of the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the company.
|
1.
|
The company’s Quarterly Report on Form 10-Q for the fiscal quarter ended December 26, 2015 (“Quarterly Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and
|
2.
|
All of the information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the company.
|