Company: SYY
Filing Date: 2025-08-22
Form Type: 10-K
Source: 0000096021-25-000099
Chunk: 0

Company: SYSCO CORP
Filing Date: 2025-08-22
Form: 10-K
Item: Item 7A
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Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

Our market risks consist of interest rate risk, foreign currency exchange rate risk, fuel price risk and investment risk.

Interest Rate Risk

We do not utilize financial instruments for trading purposes. Our use of debt directly exposes us to interest rate risk. Floating rate debt, where the interest rate fluctuates periodically, exposes us to short-term changes in market interest rates. Fixed rate debt, where the interest rate is fixed over the life of the instrument, exposes us to changes in market interest rates reflected in the fair value of the debt and to the risk that we may need to refinance maturing debt with new debt at higher rates.

We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and may employ interest rate swaps as a tool to achieve that position. The major risks from interest rate derivatives include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties in such transactions.

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At June 28, 2025, there were $205 million in commercial paper issuances outstanding under our European commercial paper program and no commercial paper issuances outstanding under our U.S. commercial paper program. Total debt as of June 28, 2025 was $13.3 billion, of which approximately 90% was at fixed rates of interest.

At June 29, 2024, there were $200 million in commercial paper issuances outstanding under our U.S. commercial paper program and no commercial paper issuances outstanding under our European commercial paper program. Total debt as of June 29, 2024 was $12.0 billion, of which approximately 98% was at fixed rates of interest.

Details of our outstanding swap agreements as of June 28, 2025 are below:

Maturity Date of SwapNotional Value(in millions)Fixed Coupon Rate on Hedged DebtFloating Interest Rate on SwapFloating Rate Reset TermsLocation of Fair Value on Balance SheetFair Valueof Asset (Liability)(in millions)January 17, 2034$500 6.00 %USD-SOFR CompoundUSD-SOFR-OIS CompoundEvery six months on the last day of each calculation periodOther assets$15 Accrued expenses(1)March 23, 2035550 5.40 USD-SOFR-OIS CompoundEvery six months on the last day of each calculation periodOther