2019 Q2 Form 10-Q Financial Statement

#000009602119000041 Filed on May 07, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2019 Q1 2018 Q1
Revenue $15.47B $14.66B $14.35B
YoY Change 1.04% 2.15%
Cost Of Revenue $12.50B $11.90B $11.67B
YoY Change 0.78% 1.97%
Gross Profit $2.979B $2.754B $2.676B
YoY Change 2.14% 2.94%
Gross Profit Margin 19.25% 18.79% 18.65%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $187.3M $184.2M $193.4M
YoY Change -7.19% -4.76%
% of Gross Profit 6.29% 6.69% 7.23%
Operating Expenses $2.259B $2.225B $2.193B
YoY Change 1.16% 1.43%
Operating Profit $720.5M $529.6M $482.2M
YoY Change 5.35% 9.83%
Interest Expense -$90.00M -$95.00M -$143.0M
YoY Change -2.17% -33.57%
% of Operating Profit -12.49% -17.94% -29.66%
Other Income/Expense, Net $51.56M -$4.120M $18.83M
YoY Change 2954.38% -121.88%
Pretax Income $682.3M $431.0M $364.9M
YoY Change 15.03% 18.11%
Income Tax $146.5M -$9.132M $34.80M
% Of Pretax Income 21.48% -2.12% 9.54%
Net Earnings $536.0M $440.0M $330.0M
YoY Change 19.38% 33.33%
Net Earnings / Revenue 3.46% 3.0% 2.3%
Basic Earnings Per Share $1.04 $0.86 $0.63
Diluted Earnings Per Share $1.03 $0.85 $0.63
COMMON SHARES
Basic Shares Outstanding 514.0M shares 514.2M shares 521.8M shares
Diluted Shares Outstanding 519.8M shares 528.0M shares

Balance Sheet

Concept 2019 Q2 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $513.0M $522.0M $902.0M
YoY Change -7.07% -42.13%
Cash & Equivalents $513.5M $521.6M $901.6M
Short-Term Investments
Other Short-Term Assets $210.0M $211.0M $231.0M
YoY Change 11.7% -8.66%
Inventory $3.216B $3.345B $3.260B
Prepaid Expenses
Receivables $4.182B $4.329B $4.228B
Other Receivables $19.00M $49.00M $95.00M
Total Short-Term Assets $8.142B $8.456B $8.716B
YoY Change 1.72% -2.99%
LONG-TERM ASSETS
Property, Plant & Equipment $4.502B $4.377B $4.392B
YoY Change -0.44% -0.34%
Goodwill $3.896B $3.924B $4.066B
YoY Change -1.5% -3.5%
Intangibles $857.3M $888.5M $1.056B
YoY Change -12.5% -15.87%
Long-Term Investments
YoY Change
Other Assets $489.0M $493.8M $394.6M
YoY Change -7.09% 25.16%
Total Long-Term Assets $9.825B $9.745B $5.521B
YoY Change -2.4% 76.51%
TOTAL ASSETS
Total Short-Term Assets $8.142B $8.456B $8.716B
Total Long-Term Assets $9.825B $9.745B $5.521B
Total Assets $17.97B $18.20B $18.63B
YoY Change -0.57% -2.3%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.315B $4.293B $4.236B
YoY Change 4.31% 1.36%
Accrued Expenses $1.730B $1.664B $1.516B
YoY Change 7.52% 9.77%
Deferred Revenue
YoY Change
Short-Term Debt $3.957M $5.733M $6.606M
YoY Change -5.24% -13.22%
Long-Term Debt Due $37.32M $537.0M $288.0M
YoY Change -95.23% 86.46%
Total Short-Term Liabilities $6.103B $6.500B $6.046B
YoY Change -7.37% 7.51%
LONG-TERM LIABILITIES
Long-Term Debt $8.122B $8.134B $8.219B
YoY Change 16.75% -1.03%
Other Long-Term Liabilities $1.031B $949.6M $1.199B
YoY Change -4.28% -20.83%
Total Long-Term Liabilities $9.325B $9.304B $10.20B
YoY Change 4.34% -8.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.103B $6.500B $6.046B
Total Long-Term Liabilities $9.325B $9.304B $10.20B
Total Liabilities $15.43B $15.80B $16.24B
YoY Change -0.63% -2.7%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $2.223B $2.190B $2.123B
YoY Change 3.43% 3.19%
Preferred Stock
YoY Change
Treasury Stock (at cost) $9.350B $9.239B $8.547B
YoY Change 8.96% 8.1%
Treasury Stock Shares 252.3M shares 251.3M shares 244.4M shares
Shareholders Equity $2.503B $2.362B $2.351B
YoY Change
Total Liabilities & Shareholders Equity $17.97B $18.20B $18.63B
YoY Change -0.57% -2.3%

Cashflow Statement

Concept 2019 Q2 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income $536.0M $440.0M $330.0M
YoY Change 19.38% 33.33%
Depreciation, Depletion And Amortization $187.3M $184.2M $193.4M
YoY Change -7.19% -4.76%
Cash From Operating Activities $1.046B $447.4M $191.0M
YoY Change 1.12% 134.24%
INVESTING ACTIVITIES
Capital Expenditures -$309.5M -$159.1M -$114.0M
YoY Change -1.81% 39.56%
Acquisitions
YoY Change
Other Investing Activities $146.5M -$203.8M -$42.90M
YoY Change -473.72% 375.06%
Cash From Investing Activities -$163.0M -$362.9M -$157.0M
YoY Change -54.01% 131.15%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -897.5M -429.1M -102.1M
YoY Change -10.12% 320.27%
NET CHANGE
Cash From Operating Activities 1.046B 447.4M 191.0M
Cash From Investing Activities -163.0M -362.9M -157.0M
Cash From Financing Activities -897.5M -429.1M -102.1M
Net Change In Cash -14.50M -344.6M -68.10M
YoY Change -95.45% 406.02%
FREE CASH FLOW
Cash From Operating Activities $1.046B $447.4M $191.0M
Capital Expenditures -$309.5M -$159.1M -$114.0M
Free Cash Flow $1.355B $606.5M $305.0M
YoY Change 0.44% 98.85%

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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Accrued Liabilities
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us-gaap Proceeds From Issuance Of Long Term Debt And Capital Securities Net
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<span style="font-family:inherit;font-size:10pt;font-weight:bold;">NEW ACCOUNTING STANDARDS</span><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Leases</span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued ASU 2016-02, </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 842)</span><span style="font-family:inherit;font-size:10pt;">, specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing and uncertainty of cash flows arising from a lease. The amended guidance requires the recognition of lease assets and lease liabilities on the balance sheet for those leases currently classified as operating leases. In addition, Topic 842 expands the disclosure requirements of lease arrangements. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, which is fiscal 2020 for Sysco.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">To assess the impact of the standard, the company has formed a cross-functional steering committee to review the amended guidance and subsequent clarifications in order to understand the potential impact the new standard could have on the company’s consolidated financial statements and disclosures, business processes, and internal controls. The company has substantially completed the process of gathering lease data and reviewing its lease portfolio and is in the process of completing an impact assessment with respect to the adoption of the provisions of the new standard. To facilitate this ongoing process, the company is currently implementing a third-party lease accounting software. The company will finalize its assessment in the fourth quarter of fiscal 2019 and adopt this standard on June 30, 2019, the first day of fiscal 2020.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments - Credit Losses</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued ASU 2016-13, </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments</span><span style="font-family:inherit;font-size:10pt;">, which introduces a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for fiscal years-and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard.</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;">Implementation Costs Incurred in a Cloud Computing Arrangement</span></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div><span style="font-family:inherit;font-size:10pt;">In August 2018, the FASB issued ASU 2018-15, </span><span style="font-family:inherit;font-size:10pt;font-style:italic;">Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract</span>, which aligns the accounting for implementation costs incurred in a cloud computing arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance amends Accounting Standards Codification (ASC) 350 to include in its scope implementation costs of a cloud computing arrangement that is a service contract and clarifies that a customer should apply ASC 350 to determine which implementation costs should be capitalized in such a cloud computing arrangement. This guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which is the first quarter of fiscal 2021 for Sysco, with early adoption permitted. The company is currently reviewing the provisions of the new standard.
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us-gaap Operating Expenses
OperatingExpenses
6538562000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
1630120000 USD
us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-303015000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
35963000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
1363068000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
381230000 USD
syy Equity In Earnings Of Subsidiaries
EquityInEarningsOfSubsidiaries
0 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
981838000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
187253000 USD
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
1169091000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
1365225000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-579859000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-939815000 USD
us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
-11619000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-166068000 USD
CY2018Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
715844000 USD
CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
549776000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
1120935000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-556058000 USD
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
177623000 USD
CY2017Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
869502000 USD
CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1047125000 USD

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