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DERIVATIVE FINANCIAL INSTRUMENTS
 12 Months Ended
Jun. 27, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
Sysco uses derivative financial instruments to enact hedging strategies for risk mitigation purposes; however, we do not use derivative financial instruments for trading or speculative purposes. Hedging strategies are used to manage interest rate risk, foreign currency risk and fuel price risk.

Hedging of interest rate risk

We manage our debt portfolio with interest rate swaps from time to time to achieve an overall desired position of fixed and floating rates. In the third quarter of fiscal 2026, we entered into receive-fixed, pay-floating swap agreements to trade the fixed interest rate on $600 million of 4.40% senior notes and $650 million of 4.95% senior notes with variable rates, respectively. The interest rate swaps are designated as fair value hedges and gains or losses on the hedges impact interest expense within the consolidated statements of income.

In the fourth quarter of fiscal 2026, we entered into forward starting swap agreements related to $1 billion 5-year and $1 billion 10- year fixed rate debt issuances expected to occur in the first quarter of fiscal 2027. The swaps hedge the risk of changes in cash flows attributed to changes in the designated benchmark interest rate, initially expected to be compound SOFR, and are designated as cash flow hedges. The hedges are recognized at fair value on the balance sheet and changes in fair value are recorded in accumulated other comprehensive income (loss), net and reclassified into interest expense in the same period(s) during which the hedged transactions affect earnings. The company will consider economic mismatches between the swaps and hedged transactions on a periodic basis, and if the hedging instrument is not highly effective at achieving offsetting cash flows attributed to changes in interest rate risks, the hedging relationship will be discontinued.

Hedging of foreign currency risk

Sysco’s operations in Europe have inventory purchases denominated in currencies other than their functional currency, such as the Euro, U.S. dollar, Polish zloty and Danish krone. Accounts payable associated with these inventory purchases give rise to foreign currency exposure between the functional currency of each entity and these currencies. We enter into foreign currency forward swap contracts to sell the applicable entity’s functional currency and buy currencies matching the inventory purchase, which operate as cash flow hedges of the company’s foreign currency-denominated inventory purchases.

Sysco routinely manages foreign currency risk with spot and forward-rate cross-currency swaps on foreign-denominated balances. The swaps are designated as fair value hedges and for swaps hedging the change in foreign currency spot rates, we have elected to exclude the changes in fair value of the forward points from the assessments of hedge effectiveness. Gains or losses from fair value hedges impact the same category on the consolidated statements of income as the item being hedged, including the value of the excluded components which is recognized in earnings over the life of the hedging instrument. In the fourth quarter of fiscal 2026, Sysco entered a euro denominated intercompany loan with an affiliate that subsequently matured on July 10, 2026. To hedge our foreign currency risk, we entered into a cross currency swap for €450 million and designated it as a fair value hedge.

Sysco has cross-currency swaps that hedge the foreign currency exposure of our net investment in certain foreign operations. These cross-currency swaps are designated as net investment hedges with gains and losses recognized within accumulated other comprehensive income (loss), net, including changes in fair value attributed to the spot-forward rate differential which are excluded from the assessment of hedge effectiveness. The initial value of the excluded component is recognized in earnings over the life of the hedging instrument. In the third quarter of fiscal 2026, we entered into $814 million Canadian dollar cross-currency swaps which will mature on June 25, 2031 to hedge the foreign currency exposure of the net investment in our Canadian operations.

Hedging of fuel price risk

Sysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel on anticipated future purchases. These swaps have been designated as cash flow hedges.

Derivatives not designated as hedging instruments
In the fourth quarter of fiscal 2026, we executed cash-settled deal contingent rate lock transactions to mitigate interest rate risk on $6.3 billion of future permanent debt that could potentially be issued to finance the purchase of JRD. We have not applied hedge accounting and changes in fair value are recognized in other income and expense within our statement of consolidated results of operations.

None of our derivative instruments contain credit-risk-related contingent features. Details of outstanding derivative instruments as of June 27, 2026 are presented below:

Maturity Date of Derivative InstrumentCurrency / Unit of MeasureNotional Value
(In millions)
Hedging of interest rate risk
January 2034U.S. Dollar500
March 2035U.S. Dollar550
June 2031U.S. Dollar600
March 2036U.S. Dollar650
September 2031U.S. Dollar1,000
September 2036U.S. Dollar1,000
Hedging of foreign currency risk
July 2026Euro450
January 2029Euro470
September 2030Canadian Dollar998
June 2031Canadian Dollar814
Hedging of fuel risk
Various (June 2026 to June 2028)Gallons87
Derivatives not designated as hedges
Deal-contingent interest rate locksU.S. Dollar6,300
The location and the fair value of derivative instruments in the consolidated balance sheet as of June 27, 2026 and June 28, 2025 are as follows:
Derivative Fair Value
Balance Sheet locationJun. 27, 2026Jun. 28, 2025
(In millions)
Fair Value Hedges:
Interest rate swapsPrepaid expenses and other current assets$1 $— 
Interest rate swapsOther assets11 31 
Interest rate swapsAccrued expenses2 1 
Interest rate swapsOther long-term liabilities20 — 
Cross currency swapsPrepaid expenses and other current assets18 — 
Cash Flow Hedges:
Fuel swapsPrepaid expenses and other current assets$32 $— 
Fuel swapsOther assets10 — 
Fuel swapsAccrued expenses1 7 
Fuel swapsOther long-term liabilities1 2 
Interest rate swapsOther long-term liabilities7 — 
Net Investment Hedges:
Cross currency swapsPrepaid expenses and other current assets$17 $11 
Cross currency swapsOther assets74 55 
Cross currency swapsAccrued expenses2 2 
Cross currency swapsOther long-term liabilities97 134 
Derivatives not designated as hedges:
Deal-contingent interest rate locksOther assets$2 $— 
Deal-contingent interest rate locksOther long-term liabilities56 — 
Gains or losses recognized in the consolidated results of operations for cash flow hedging relationships are not significant for each of the periods presented. The location and amount of gains or losses recognized in the consolidated results of operations for fair value hedging relationships and non-designated derivatives for each of the periods, presented on a pretax basis, are as follows:
Jun. 27, 2026Jun. 28, 2025
(In millions)
Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of derivatives are recorded$819 $673 
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items$(39)$(65)
Derivatives designated as hedging instruments(41)24 
Cross currency swaps:
Hedged items$(18)$2 
Derivatives designated as hedging instruments18 (2)
Gain or (loss) on non-designated derivatives:
Deal-contingent interest rate locks$(54)$— 

The gains and losses on the fair value hedging relationships associated with the hedged items as disclosed in the table above are comprised of the following components for each of the periods presented:
Jun. 27, 2026Jun. 28, 2025
(In millions)
Interest expense$(81)$(40)
(Increase) decrease in fair value of debt42 (25)
Foreign currency gain (loss)(18)2 
Hedged items$(57)$(63)
The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal years ended June 27, 2026 and June 28, 2025, presented on a pretax basis, are as follows:
2026
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativesLocation of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss), Net into IncomeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss), Net into Income
(In millions)(In millions)
Derivatives in cash flow hedging relationships:
Fuel swaps$47 Operating expense$(24)
Pre-issuance interest rate swaps(7)Interest expense— 
Total$40 $(24)
Derivatives in net investment hedging relationships:
Cross currency contracts$65 N/A$— 
Derivatives in fair value hedging relationships:
Change in excluded component of fair value hedge$2 Other expense (income)$— 
2025
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativesLocation of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss), Net into IncomeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss), Net into Income
(In millions)(In millions)
Derivatives in cash flow hedging relationships:
Fuel swaps$(7)Operating expense$11 
Derivatives in net investment hedging relationships:
Cross currency contracts$(65)N/A$— 
Derivatives in fair value hedging relationships:
Change in excluded component of fair value hedge$(2)Other expense (income)$— 
The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 27, 2026 are as follows:

Jun. 27, 2026
Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
(In millions)
Balance sheet location:
Long-term debt$(2,267)$11 

The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 28, 2025 are as follows:

Jun. 28, 2025
Carrying Amount of Hedged Assets (Liabilities)Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
(In millions)
Balance sheet location:
Long-term debt$(1,069)$(31)