Derivative Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of outstanding hedging instruments as of September 30, 2017 are below:



Maturity Date of the Hedging Instrument	Currency / Unit of Measure	Notional Value (in millions)

Hedging of interest rate risk
February 2018	U.S. Dollar	500
April 2019	U.S. Dollar	500
October 2020	U.S. Dollar	750
July 2021	U.S. Dollar	500

Hedging of foreign currency risk ⁽¹⁾
July 2021	British Pound Sterling	234
August 2021	Euro	534
June 2023	Euro	500

Hedging of fuel risk
Various (October 2017 to August 2018)	Gallons	49

⁽¹⁾ Sysco’s European operations use foreign currency forward contracts to hedge against foreign exchange exposures related to inventory purchases. These are not material to Sysco’s overall hedging portfolio.

Derivatives balance sheet location table

The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of September 30, 2017, July 1, 2017 and October 1, 2016 are as follows:



		Derivative Fair Value
	Balance Sheet location	Sep. 30, 2017		Jul. 1, 2017		Oct. 1, 2016
		(In thousands)
Fair Value Hedges:
Interest rate swaps	Other current assets	$	223	$	707	$	—
Interest rate swaps	Other assets	—		—		18,935
Interest rate swaps	Other long-term liabilities	22,653		21,390		—

Cash Flow Hedges:
Fuel swaps	Other current assets	$	4,743	$	717	$	—
Foreign currency forwards	Other current assets	461		—		873
Fuel swaps	Other current liabilities	—		6,320		618
Foreign currency forwards	Other current liabilities	118		154		—
Cross currency swaps	Other long-term liabilities	15,115		5,816		3,184

Net Investment Hedges:
Foreign currency swaps	Other assets	$	5,912	$	—	$	3,979
Foreign currency swaps	Other long-term liabilities	34,114		12,308		10,695

Schedule of location and effect of derivative instruments and related hedged items

The location and effect of derivative instruments and related hedged items on the consolidated results of operations for the 13-week periods ended September 30, 2017 and October 1, 2016, presented on a pretax basis, are as follows:



	Location of (Gain) or Loss Recognized	Amount of (Gain) or Loss Recognized
		13-Week Period Ended
		Sep. 30, 2017			Oct. 1, 2016
		(In thousands)
Fair Value Hedge Relationships:
Interest rate swaps	Interest expense	$	(600	)	$	(3,400	)
Cash Flow Hedge Relationships:
Forward starting interest rate swaps ⁽¹⁾	Interest expense	$	(2,873	)	$	(2,873	)
Fuel swaps	Other comprehensive income	(10,859		)	—
Foreign currency forwards	Other comprehensive income	(185		)	—
Cross currency swaps	Other comprehensive income	7,638			—
Net Investment Hedge Relationships:
Foreign currency swaps	Other comprehensive income	$	23,376		$	—


⁽¹⁾	Represents amortization of losses on forward starting interest rate swap agreements that were previously settled.