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Fair Value Measurements | 6 Months Ended
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Dec. 26, 2015
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows:
• | Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets;
• | Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and
• | Level 3 – Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk.
Sysco’s policy is to invest in only high-quality investments. Cash equivalents primarily include time deposits, certificates of deposit, commercial paper, high-quality money market funds and all highly liquid instruments with original maturities of three months or less. Restricted cash consists of investments in high-quality money market funds. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value:
• | Time deposits and commercial paper included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 2 measurement in the tables below.
• | Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents and restricted cash as Level 1 measurements in the tables below.
• | The interest rate swap agreements, discussed further in Note 6, "Derivative Financial Instruments" are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. These are included within other assets and other long-term liabilities as Level 2 measurements in the tables below.
The following tables present the company’s assets and liabilities measured at fair value on a recurring basis as of December 26, 2015, June 27, 2015 and December 27, 2014:
| Assets and Liabilities Measured at Fair Value as of Dec. 26, 2015
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In thousands)
Assets: |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |
Cash equivalents | $ | 234,161 |  |  | $ | 61,473 |  |  | $ | — |  |  | $ | 295,634 |
Other assets |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreement | — |  |  | 3,936 |  |  | — |  |  | 3,936 |
Total assets at fair value | $ | 234,161 |  |  | $ | 65,409 |  |  | $ | — |  |  | $ | 299,570 |
Liabilities: |  |  |  |  |  |  |
Long-term debt | $ | — |  |  | $ | 1,241,786 |  |  | $ | — |  |  | $ | 1,241,786 |
Other long-term liabilities: |  |  |  |  |  |  |
Interest rate swap agreement | — |  |  | 6,575 |  |  | — |  |  | 6,575 |
Total liabilities at fair value | $ | — |  |  | $ | 1,248,361 |  |  | $ | — |  |  | $ | 1,248,361 |
| Assets and Liabilities Measured at Fair Value as of Jun. 27, 2015
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In thousands)
Assets: |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |
Cash equivalents | $ | 4,677,735 |  |  | $ | 63,689 |  |  | $ | — |  |  | $ | 4,741,424 |
Restricted cash | 168,274 |  |  | — |  |  | — |  |  | 168,274 |
Other assets |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreement | — |  |  | 12,597 |  |  | — |  |  | 12,597 |
Total assets at fair value | $ | 4,846,009 |  |  | $ | 76,286 |  |  | $ | — |  |  | $ | 4,922,295 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Accrued expenses |  |  |  |  |  |  |  |  |  |  |
Current portion of long-term debt | $ | — |  |  | $ | 1,257,127 |  |  | $ | — |  |  | $ | 1,257,127 |
Long-term debt | — |  |  | 503,379 |  |  | — |  |  | 503,379 |
Total liabilities at fair value | $ | — |  |  | $ | 1,760,506 |  |  | $ | — |  |  | $ | 1,760,506 |
| Assets and Liabilities Measured at Fair Value as of Dec. 27, 2014
| Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In thousands)
Assets: |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 4,655,434 |  |  | $ | 21,841 |  |  | $ | — |  |  | $ | 4,677,275 |
Restricted cash | 165,465 |  |  | — |  |  | — |  |  | 165,465 |
Other assets |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreement | — |  |  | 4,802 |  |  | — |  |  | 4,802 |
Total assets at fair value | $ | 4,820,899 |  |  | $ | 26,643 |  |  | $ | — |  |  | $ | 4,847,542 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Long-term debt | $ | — |  |  | $ | 1,752,118 |  |  | $ | — |  |  | $ | 1,752,118 |
Other long-term liabilities |  |  |  |  |  |  |
Interest rate swap agreement | — |  |  | 152 |  |  | — |  |  | 152 |
Total liabilities at fair value | $ | — |  |  | $ | 1,752,270 |  |  | $ | — |  |  | $ | 1,752,270 |
The carrying values of accounts receivable and accounts payable approximated their respective fair values due to their short-term maturities. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issue or on the current rates offered to the company for debt of the same remaining maturities and is considered a Level 2 measurement. The table above reflects the fair value for any long-term debt that has been hedged and is recorded at fair value. Non-hedged debt is recorded at book value. The fair value of total non-hedged debt approximated $3.3 billion, $5.6 billion and $7.6 billion as of December 26, 2015, June 27, 2015 and December 27, 2014, respectively. The carrying value of total non-hedged debt was $3.1 billion, $5.4 billion and $7.1 billion as of December 26, 2015, June 27, 2015 and December 27, 2014, respectively.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
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