Company: SYY
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0000096021-25-000010
Chunk: 58

Company: SYSCO CORP
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 1
Chunk 58
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ing period. The weighted average grant-date fair value per PSU granted during the first 26 weeks of fiscal 2025 was $82.63. 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 26 weeks of fiscal 2025, employees were granted 353,552 restricted stock units. The weighted average grant-date fair value per restricted stock unit granted during the first 26 weeks of fiscal 2025 was $75.96.Employee Stock Purchase PlanPlan participants purchased 537,998 shares of common stock under the ESPP during the first 26 weeks of fiscal 2025. The weighted average fair value per employee stock purchase right issued pursuant to the ESPP was $11.60 during the first 26 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 $60 million and $53 million for the first 26 weeks of fiscal 2025 and fiscal 2024, respectively.As of December 28, 2024, there was a total of $152 million of unrecognized compensation cost related to share-based compensation arrangements. This cost is expected to be recognized over a weighted-average period of 1.93 years.

11.  INCOME TAXES

Effective Tax RateThe effective tax rate for both the second quarter and first 26 weeks of fiscal 2025 was 23.8%, which is 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 second quarter and first 26 weeks of fiscal 2024 were 23.8% and 23.9%, respectively, which are higher than the company’s 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. Uncertain Tax PositionsAs of December 28, 2024, the gross amount of unrecognized tax benefit and related accrued interest was $35 million and $13 million, respectively. It is reasonably possible the amount of the unrecognized tax