Company: SYY
Filing Date: 2025-08-22
Form Type: 10-K
Source: 0000096021-25-000099
Chunk: 68

Company: SYSCO CORP
Filing Date: 2025-08-22
Form: 10-K
Item: Item 8
Chunk 68
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forwards$595 $534 Operating lease liabilities291 237 Interest carryforwards263 228 Pension124 121 Receivables56 52 Inventory32 30 Deferred compensation27 28 Share-based compensation25 27 Other74 67 Deferred tax assets before valuation allowances1,487 1,324 Valuation allowances(328)(278)Total deferred tax assets1,159 1,046 Deferred tax liabilities:  Goodwill and intangible assets384 374 Excess tax depreciation and basis differences of assets286 285 Operating lease assets282 231 Foreign currency remeasurement losses and currency hedge1 20 Other54 36 Total deferred tax liabilities1,007 946 Total net deferred tax assets$152 $100 Our deferred tax asset for net operating loss carryforwards as of June 28, 2025 and June 29, 2024 consisted of state and foreign net operating tax loss carryforwards. The state net operating loss carryforwards outstanding as of June 28, 2025 

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expire in fiscal years 2026 through 2045, with some losses having unlimited carryforward periods. The foreign net operating loss carryforward periods vary by jurisdiction, from 5 years to unlimited.We assess the recoverability of our deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. We consider all available evidence (both positive and negative) in determining whether a valuation allowance is required. As a result of the company’s analysis, it was concluded that, as of June 28, 2025, a valuation allowance of $328 million should be established against the portion of the deferred tax asset attributable to capital losses, certain state interest, and foreign and U.S. state losses. We will continue to monitor facts and circumstances in the reassessment of the likelihood that these items will be realized.Uncertain Tax PositionsOur uncertain tax position balance was $43 million in fiscal 2025 and $32 million in fiscal 2024. The gross amount of liability for accrued interest and penalties related to unrecognized tax benefits was $17 million as of June 28, 2025 and $12 million as of June 29, 2024. The expense recorded for interest and penalties related to unrecognized tax benefits was not material in any year presented. It is reasonably possible that the amount of the unrecognized tax