Company: SYY
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000096021-25-000037
Chunk: 60

Company: SYSCO CORP
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 60
---
 PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For 

24

PSUs granted without dividend equivalents, the fair value is reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per PSU granted during the first 39 weeks of fiscal 2025 was $82.50. The PSUs will convert into shares of Sysco’s common stock at the end of the three-year performance period based on actual performance targets achieved, as well as the market-based return of Sysco’s common stock relative to that of each company within the S&P 500 index.In the first 39 weeks of fiscal 2025, employees were granted 374,197 restricted stock units. The weighted average grant-date fair value per restricted stock unit granted during the first 39 weeks of fiscal 2025 was $75.85.Employee Stock Purchase PlanPlan participants purchased 812,258 shares of common stock under the ESPP during the first 39 weeks of fiscal 2025. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $11.49 during the first 39 weeks of fiscal 2025. The fair value of each stock purchase right is estimated as the difference between the stock price at the date of issuance and the employee purchase price.All Share-Based Payment ArrangementsThe total share-based compensation cost that has been recognized in results of operations was $74 million and $77 million for the first 39 weeks of fiscal 2025 and fiscal 2024, respectively.As of March 29, 2025, there was a total of $110 million of unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 1.83 years.

11.  INCOME TAXES

Effective Tax RateThe effective tax rates for the third quarter and first 39 weeks of fiscal 2025 were 23.3% and 23.6%, respectively, which are higher than the company’s 21.0% statutory tax rate primarily as a result of state income taxes, partially offset by a foreign income tax benefit and equity-based compensation excess tax benefits. The effective tax rates for the third quarter and first 39 weeks of fiscal 2024 were 23.3% and 23.7%, respectively, which are higher than the company’s statutory tax rate primarily