Company: SYY
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000096021-25-000157
Chunk: 61

Company: SYSCO CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 61
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$1 0.1 %Other expense (income), net 28 6 22 NMDepreciation and amortization, as adjusted (Non-GAAP) (4)(200)(202)2 1.0 Operating income adjusted for Certain Items (Non-GAAP) $898 $873 $25 2.9 %

(1)Fiscal 2026 and fiscal 2025 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. (2)Fiscal 2026 and fiscal 2025 include acquisition and due diligence costs.(3)In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $6 million and $7 million or non-cash stock compensation expense of $31 million and $30 million in fiscal 2026 and fiscal 2025, respectively.(4)Fiscal 2026 includes $233 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal 2025 includes $235 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.NMRepresents that the percentage change is not meaningful.

Liquidity and Capital Resources

Highlights 

We produced negative free cash flow of $50 million in the first 13 weeks of fiscal 2026, as compared to positive free cash flow of $8 million in the first 13 weeks of fiscal 2025. The decrease in free cash flow is attributable to a decrease in proceeds from sales of plant and equipment and an increase in capital expenditures, partially offset by an increase in cash provided by operating activities. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities and comparisons of the significant cash flows from the first 13 weeks of fiscal 2026 to the first 13 weeks of fiscal 2025 are provided. 

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 13-Week Period Ended Sep. 27, 202513-Week Period Ended Sep. 28, 2024Source of cash (use of cash)(In millions)Net cash provided by operating activities (GAAP)$86 $53 Additions to plant and equipment(160)(122)Proceeds from sales of plant and equipment24 77 Free Cash