Company: SYY
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000096021-25-000037
Chunk: 50

Company: SYSCO CORP
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 50
---
 has 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 earnings impact of the excluded components. Unrealized gains or losses on components excluded from hedge effectiveness are recorded as a component of accumulated other comprehensive income (loss) and recognized into earnings over the life of the hedged instrument. Except for the excluded components, changes in the fair value of the hedge are offset against changes in the fair value of the hedged assets or liabilities through earnings.Sysco also 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). In the third quarter of fiscal 2025, we entered into cross-currency swaps to hedge the foreign currency exposure of the net investment in our Canadian operations. Hedging of fuel price riskSysco uses fuel commodity swap contracts to hedge against the risk of the change in the price of diesel fuel on anticipated future purchases. These swaps have been designated as cash flow hedges.

12

None of our hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of March 29, 2025 are presented below:Maturity Date of the Hedging InstrumentCurrency / Unit of MeasureNotional Value(In millions)Hedging of interest rate riskJanuary 2034U.S. Dollar500March 2035U.S. Dollar550Hedging of foreign currency riskVarious (March 2025 to August 2025)Swedish Krona329Various (May 2025 to October 2025)British Pound Sterling27April 2025Canadian Dollar180June 2025Canadian Dollar137January 2029Euro470September 2030Euro670September 2030Canadian Dollar998Hedging of fuel riskVarious (March 2025 to October 2026)Gallons75The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheets as of March 29, 2025 and June 29, 2024 are as follows: Derivative Fair Value Balance Sheet locationMar. 29, 2025Jun. 29, 2024(In millions)Fair Value Hedges:Interest rate swapsOther assets$22 $6 Interest rate swapsAccrued expenses— 1