Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Sysco Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021	Jun 27, 2020	Jun 29, 2019
Net earnings	1,955)	1,770)	1,359)	524)	215)	1,674)
Pension settlement charge	—)	315)	—)	—)	—)	—)
Share-based compensation expense	104)	96)	122)	96)	42)	105)
Depreciation and amortization	873)	776)	773)	738)	806)	764)
Operating lease asset amortization	124)	113)	108)	114)	108)	—)
Amortization of debt issuance and other debt-related costs	19)	20)	22)	26)	23)	21)
Deferred income taxes	27)	(16)	(64)	(158)	(191)	(127)
Provision for (gains) losses on receivables	57)	36)	(15)	(153)	404)	63)
Loss on extinguishment of debt	—)	—)	116)	294)	—)	—)
(Gain) loss on sale of business	—)	—)	—)	23)	—)	(66)
Goodwill impairment	—)	—)	—)	—)	203)	—)
Impairment of assets held for sale	—)	—)	—)	—)	56)	—)
Other non-cash items	(12)	(7)	(13)	(17)	(1)	(3)
(Increase) decrease in receivables	(110)	(271)	(971)	(662)	916)	(203)
(Increase) decrease in inventories	(70)	(22)	(709)	(551)	115)	(115)
(Increase) decrease in prepaid expenses and other current assets	(2)	2)	5)	(33)	10)	(19)
Increase (decrease) in accounts payable	104)	196)	810)	1,459)	(834)	246)
Increase (decrease) in accrued expenses	(12)	22)	423)	167)	(140)	138)
Increase (decrease) in operating lease liabilities	(144)	(134)	(126)	(142)	(124)	—)
Increase (decrease) in accrued income taxes	13)	92)	(10)	119)	(103)	5)
(Increase) decrease in other assets	38)	6)	(1)	19)	21)	(21)
Increase (decrease) in other long-term liabilities	25)	(126)	(38)	41)	93)	(51)
Additional changes in certain assets and liabilities, net of effect of businesses acquired	(158)	(235)	(616)	416)	(47)	(20)
Adjustments to reconcile net earnings to cash provided by operating activities	1,034)	1,097)	433)	1,380)	1,403)	737)
Net cash provided by operating activities	2,989)	2,868)	1,791)	1,904)	1,619)	2,411)
Additions to plant and equipment	(832)	(793)	(633)	(471)	(720)	(692)
Proceeds from sales of plant and equipment	79)	42)	24)	59)	29)	21)
Acquisition of businesses, net of cash acquired	(1,210)	(37)	(1,281)	—)	(143)	(107)
Proceeds from sale of business	—)	—)	—)	—)	—)	150)
Purchase of marketable securities	(33)	(16)	(19)	(53)	(11)	(116)
Proceeds from sales of marketable securities	29)	12)	17)	36)	21)	—)
Other investing activities	5)	8)	14)	—)	69)	2)
Net cash used for investing activities	(1,962)	(785)	(1,878)	(429)	(756)	(743)
Bank and commercial paper borrowings, net	200)	—)	—)	(826)	617)	132)
Other debt borrowings including senior notes	1,362)	249)	1,248)	1)	6,784)	388)
Other debt repayments including senior notes	(447)	(830)	(495)	(2,003)	(1,119)	(790)
Redemption premiums and repayments for senior notes	—)	—)	(1,396)	(1,000)	—)	—)
Cash received from termination of interest rate swap agreements	—)	—)	23)	—)	—)	—)
Proceeds from stock option exercises	120)	79)	128)	130)	228)	253)
Stock repurchases	(1,232)	(500)	(500)	—)	(845)	(1,022)
Dividends paid	(1,008)	(996)	(959)	(918)	(856)	(775)
Other financing activities	(33)	(58)	(37)	(13)	(88)	(23)
Net cash provided by (used for) financing activities	(1,038)	(2,056)	(1,987)	(4,628)	4,720)	(1,837)
Effect of exchange rates on cash, cash equivalents and restricted cash	(10)	8)	(32)	95)	(19)	(15)
Net increase (decrease) in cash, cash equivalents and restricted cash	(21)	35)	(2,106)	(3,058)	5,563)	(184)
Cash, cash equivalents and restricted cash at beginning of period	966)	931)	3,037)	6,096)	532)	716)
Cash, cash equivalents and restricted cash at end of period	945)	966)	931)	3,037)	6,096)	532)

Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).

Net Earnings

Net earnings demonstrated significant volatility over the periods. A steep decline occurred in 2020, reflecting challenging conditions, followed by a recovery trend peaking in 2024 at $1,955 million, the highest in the examined years.

Pension Settlement Charge

A notable pension settlement charge of $315 million appeared in 2023, a one-time expense impacting that year's financials.

Share-based Compensation Expense

Share-based compensation expenses fluctuated moderately, generally ranging from $42 million to $122 million without a clear directional trend, suggesting relatively stable shareholder incentivization costs.

Depreciation and Amortization

This expense showed a gradual increase over time, rising from $764 million in 2019 to $873 million in 2024, indicating ongoing capital expenditure and asset base growth.

Operating Lease Asset Amortization

Operating lease amortization, starting to be reported from 2020, remained relatively consistent, reflecting lease term management stability.

Amortization of Debt and Related Costs

This category experienced a slight downward trend, decreasing from $21 million to $19 million, signaling reduced expense in debt issuance and related fees.

Deferred Income Taxes

Deferred income taxes shifted from negative figures to a small positive amount by 2024, indicating evolving tax obligations and timing differences with a decreasing tax-related liability.

Provision for Gains/Losses on Receivables

Provision values showed volatility including a substantial spike to $404 million loss in 2020, a large gain in 2021, and a return to moderate losses, implying fluctuating credit risk and receivables management challenges.

Loss on Extinguishment of Debt

This loss was notably recorded in 2021 and 2022 but was absent in other years, pointing to occasional restructuring or refinancing activities.

Goodwill and Asset Impairments

Goodwill impairment occurred in 2020, alongside impairment on assets held for sale, indicating asset value write-downs potentially due to market or operational shifts.

Working Capital Changes

Receivables: Receivables changes were highly variable with substantial increases and decreases, reflecting inconsistent collection or sales patterns.
Inventories: Inventories decreased notably in 2020 and 2021 before stabilizing, suggesting inventory reduction efforts or sales adjustments.
Accounts Payable and Accrued Expenses: Accounts payable saw large fluctuations positive in 2021 and 2022 but diminished thereafter. Accrued expenses showed a spike in 2022 and then normalized, illustrating changes in supplier and operational expense liabilities.
Operating Lease Liabilities: Operating lease liabilities consistently decreased, indicating repayment or lease conclusion over time.

Cash Flow from Operating Activities

Cash provided by operations remained strong with peaks in 2023 and 2024, indicating robust operational cash generation despite some volatility in earlier years.

Investing Activities

Investment cash flows reflect significant capital expenditures, rising over time, alongside substantial acquisitions in 2022 and 2024, marking increased investment and business expansion activities. Proceeds from asset sales were modest but increased in later years.

Financing Activities

Debt Borrowings and Repayments: Net debt borrowings varied year-to-year with large issuances in 2020 and repayments thereafter, suggesting active debt management including refinancing.
Stock and Dividend Activities: Stock repurchases were consistently executed, markedly increasing in 2024, indicating aggressive capital return to shareholders. Dividend payments steadily increased, reflecting a commitment to shareholder distributions.
Net Financing Cash Flow: Net cash from financing showed considerable fluctuation, shifting from inflows in 2020 to outflows in other years, aligning with debt repayment and share repurchase cycles.
Cash and Cash Equivalents: Cash balances exhibited significant fluctuations, peaking sharply in 2020 due to financing and operational inflows, followed by declines as investments and financing outflows increased, ending near the starting level in 2024.

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Sysco Corp. (NYSE:SYY)

Cash Flow Statement