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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of outstanding swap agreements | Details of outstanding hedging instruments as of June 30, 2018 are below:
Maturity Date of the Hedging Instrument |  | Currency / Unit of Measure |  | Notional Value
|  |  |  | (In millions)
Hedging of interest rate risk |  |  |  |
April 2019 |  | U.S. Dollar |  | 500
October 2020 |  | U.S. Dollar |  | 750
July 2021 |  | U.S. Dollar |  | 500
March 2025 |  | U.S. Dollar |  | 500
Hedging of foreign currency risk (1) |  |  |  |
June 2019 |  | U.S. Dollar |  | 384
June 2021 |  | U.S. Dollar |  | 44
June 2021 |  | Canadian Dollar |  | 300
July 2021 |  | Canadian Dollar |  | 30
July 2021 |  | British Pound Sterling |  | 234
August 2021 |  | British Pound Sterling |  | 466
June 2023 |  | Euro |  | 500
Hedging of fuel risk |  |  |  |
Various (July 2018 to June 2019) |  | Gallons |  | 46
(1) | Foreign currency forward contracts used to hedge against foreign exchange exposures related to inventory purchases are not material to Sysco’s overall hedging portfolio.
Derivatives balance sheet location table | The location and carrying amount of hedged liabilities in the consolidated balance sheet as of June 30, 2018 are as follows:
| Jun. 30, 2018
| Carrying Amount of Hedged Assets (Liabilities) |  | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
| (In thousands)
Balance sheet location: |  |  |
Current maturities of long-term debt | $ | (499,610 | ) |  | $ | 5,097 |
Long-term debt | (1,743,732 | ) |  | 47,555 |
The location and the fair value of derivative instruments designated as hedges in the consolidated balance sheet as of June 30, 2018, July 1, 2017 and July 2, 2016 are as follows:
|  |  | Derivative Fair Value
| Balance Sheet Location |  | Jun. 30, 2018 |  | Jul. 1, 2017
|  |  | (In thousands)
Fair Value Hedges: |  |  |  |  |
Interest rate swaps | Other current assets |  | $ | — |  |  | $ | 707 |
Interest rate swaps | Other current liabilities |  | 6,820 |  |  | — |
Interest rate swaps | Other long-term liabilities |  | 49,734 |  |  | 21,390 |
Cash Flow Hedges: |  |  |  |  |
Fuel Swaps | Other current assets |  | $ | 15,316 |  |  | $ | 717 |
Foreign currency forwards | Other current assets |  | 693 |  |  | — |
Cross currency swaps | Other current assets |  | 4,284 |  |  | — |
Cross currency swaps | Other assets |  | 3,454 |  |  | — |
Fuel Swaps | Other current liabilities |  | — |  |  | 6,160 |
Foreign currency forwards | Other current liabilities |  | 71 |  |  | 154 |
Fuel swaps | Other long-term liabilities |  | — |  |  | 160 |
Cross currency swaps | Other long-term liabilities |  | 14,201 |  |  | 5,816 |
Net Investment Hedges: |  |  |  |  |
Foreign currency swaps | Other assets |  | $ | 10,709 |  |  | $ | — |
Foreign currency swaps | Other long-term liabilities |  | 39,690 |  |  | 12,308 |
Foreign denominated debt | Long-term debt |  | 584,150 |  |  | 571,450 |
Derivatives financial statement performance table | The location and amount of gains or losses recognized in the consolidated results of operations for fair value and cash flow hedging relationships for each of the periods, presented on a pretax basis, are as follows:
|  | 2018
|  | Cost of Goods Sold |  | Operating Expense |  | Interest Expense
|  | (In thousands)
Total amounts of income and expense line items presented in the consolidated results of operations in which the effects of fair value or cash flow hedges are recorded |  | $ | 47,641,933 |  |  | $ | 8,756,417 |  |  | $ | 395,483 |
Gain or (loss) on fair value hedging relationships: |  |  |  |  |  |
Interest contracts: |  |  |  |  |  |
Hedged items (1) |  | $ | — |  |  | $ | — |  |  | $ | (30,418 | )
Derivatives designated as hedging instruments |  | — |  |  | — |  |  | (39,540 | )
Gain or (loss) on cash flow hedging relationships: |  |  |  |  |  |
Fuel swaps: |  |  |  |  |  |
Gain or (loss) reclassified from AOCI into income |  | $ | — |  |  | $ | 13,983 |  |  | $ | — |
Foreign currency contracts: |  |  |  |  |  |
Gain or (loss) reclassified from AOCI into income |  | $ | 1,776 |  |  | $ | — |  |  | $ | — |
Interest contracts: |  |  |  |  |  |
Gain or (loss) reclassified from AOCI into income (2) |  | $ | — |  |  | $ | — |  |  | $ | (11,499 | )
(1) | The hedged total includes interest expense of $63.5 million and change in fair value of debt of $33.1 million.
(2) | Losses reclassified from AOCI into income represent amortization of losses on forward starting interest rate swap agreements that were previously settled.
Schedule of location and effect of fair value and cash flow hedge accounting | The location and effect of cash flow and net investment hedge accounting on the consolidated statements of comprehensive income for the fiscal period ended June 30, 2018, presented on a pretax basis, are as follows:
| 2018
| Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives |  | Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income |  | Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
| (In thousands) |  |  |  | (In thousands)
Derivatives in cash flow hedging relationships: |  |  |  |  |
Fuel swaps | $ | 21,878 |  |  | Operating expense |  | $ | 13,983 |
Foreign currency contracts | 1,118 |  |  | Cost of goods sold |  | 1,776 |
Total | $ | 22,996 |  |  |  |  | $ | 15,759 |
Derivatives in net investment hedging relationships: |  |  |  |  |
Foreign currency contracts | $ | (20,584 | ) |  | N/A |  | $ | — |
Foreign denominated debt | (12,700 | ) |  | N/A |  | — |
Total | $ | (33,284 | ) |  |  |  | $ | — |

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