Company: SYY
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0000096021-25-000010
Chunk: 48

Company: SYSCO CORP
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 1
Chunk 48
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 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 a cross-currency swap that hedges the foreign currency exposure of our net investment in certain foreign operations. This cross-currency swap is designated as a net investment hedge with gains and losses recognized within accumulated other comprehensive income (loss). 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.

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None of our hedging instruments contain credit-risk-related contingent features. Details of outstanding hedging instruments as of December 28, 2024 are presented below:Maturity Date of the Hedging InstrumentCurrency / Unit of MeasureNotional Value(In millions)Hedging of interest rate riskJanuary 2034U.S. Dollar500Hedging of foreign currency riskVarious (December 2024 to April 2025)Swedish Krona378Various (December 2024 to May 2025)British Pound Sterling20April 2025Canadian Dollar180June 2025Canadian Dollar137January 2029Euro470Hedging of fuel riskVarious (December 2024 to September 2026)Gallons77The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheets as of December 28, 2024 and June 29, 2024 are as follows: Derivative Fair Value Balance Sheet locationDec. 28, 2024Jun. 29, 2024(In millions)Fair Value Hedges:Interest rate swapsOther assets$— $6 Interest rate swapsOther current liabilities— 1 Interest rate swapsOther long-term liabilities2 — Cross currency swapsOther current assets— 2 Cross currency swapsOther current liabilities10 3 Foreign currency forwardsOther current assets2 — Cash Flow Hedges:Fuel swapsOther current assets$— $1 Foreign currency forwardsOther current liabilities1 — Fuel swapsOther current liabilities11 2 Fuel swapsOther assets— 1