Company: SYY
Filing Date: 2025-08-22
Form Type: 10-K
Source: 0000096021-25-000099
Chunk: 40

Company: SYSCO CORP
Filing Date: 2025-08-22
Form: 10-K
Item: Item 8
Chunk 40
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 right-of-use assetsOperating expenses70 60 Interest on lease obligationsInterest expense17 14 Variable lease costOperating expenses115 111 Short-term lease costOperating expenses54 68 Net lease cost$442 $407 

86

Future minimum lease obligations under existing noncancelable operating and finance lease agreements by fiscal year as of June 28, 2025 are as follows:Operating LeasesFinance Leases(In millions)2026$187 $84 2027188 77 2028154 62 2029130 48 2030119 39 Thereafter749 289 Total undiscounted lease obligations1,527 599 Less imputed interest(342)(147)Present value of lease obligations$1,185 $452 We have entered into operating lease agreements that have not yet commenced as of June 28, 2025 with legally binding minimum lease payments of $324 million. The leases are expected to commence during the next two fiscal years. Other information related to lease agreements was as follows:Jun. 28, 2025Jun. 29, 2024Cash Paid For Amounts Included In Measurement of Liabilities:(Dollars in millions)Operating cash flows for operating leases$177 $144 Operating cash flows for financing leases17 14 Financing cash flows for financing leases115 51 Supplemental Non-cash Information on Lease Liabilities:Assets obtained in exchange for operating lease obligations$254 $287 Assets obtained in exchange for finance lease obligations202 115 Operating lease asset adjustments, including renewals and remeasurements80 24 Operating lease liability adjustments, including renewals and remeasurements83 24 Lease Term and Discount Rate:Weighted-average remaining lease term (years):Operating leases11.10 years10.63 yearsFinancing leases12.38 years12.50 yearsWeighted-average discount rate:Operating leases4.56 %4.19 %Financing leases4.65 %4.50 %

14.  COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS

Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents.Defined Contribution PlansSysco operates a defined contribution 401(k) Plan as a Safe Harbor Plan, which is a plan that treats all employees’ benefits equally within the plan, under