SYY 10-Q

Sysco Corp (SYY)

10-Q 2024-05-01 For: 2024-03-30

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Added on April 08, 2026

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Delaware						74-1648137
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)


Large Accelerated Filer	☑	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
(Do not check if a smaller reporting company)		Emerging growth company	☐



	PART I – FINANCIAL INFORMATION	Page No.
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	57
Item 4.	Controls and Procedures	58
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3.	Defaults Upon Senior Securities	60
Item 4.	Mine Safety Disclosures	60
Item 5.	Other Information	60
Item 6.	Exhibits	60

Signatures		62


	Mar. 30, 2024		Jul. 1, 2023
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	598,322	$	745,201
Accounts receivable, less allowances of $85,590 and $45,599	5,556,703		5,091,970
Inventories	4,733,966		4,480,812

Prepaid expenses and other current assets	310,069		284,566

Income tax receivable	5,815		5,815
Total current assets	11,204,875		10,608,364
Plant and equipment at cost, less accumulated depreciation	5,290,437		4,915,049
Other long-term assets
Goodwill	5,220,989		4,645,754
Intangibles, less amortization	1,136,869		859,530

Deferred income taxes	442,256		420,450
Operating lease right-of-use assets, net	882,211		731,766
Other assets	534,703		640,232
Total other long-term assets	8,217,028		7,297,732
Total assets	$	24,712,340	$	22,821,145

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities

Accounts payable	$	5,869,479	$	6,025,757
Accrued expenses	2,246,595		2,251,181
Accrued income taxes	33,988		101,894
Current operating lease liabilities	122,984		99,051
Current maturities of long-term debt	93,225		62,550
Total current liabilities	8,366,271		8,540,433
Long-term liabilities
Long-term debt	12,113,205		10,347,997
Deferred income taxes	312,927		302,904
Long-term operating lease liabilities	791,007		656,269
Other long-term liabilities	995,420		931,708
Total long-term liabilities	14,212,559		12,238,878

Noncontrolling interest	32,557		33,212
Shareholders’ equity
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none	—		—
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 765,174,900 shares	765,175		765,175
Paid-in capital	1,846,743		1,814,681
Retained earnings	11,898,772		11,310,664
Accumulated other comprehensive loss	(1,231,221)		(1,252,590)
Treasury stock at cost, 266,250,088 and 260,062,834 shares	(11,178,516)		(10,629,308)
Total shareholders’ equity	2,100,953		2,008,622
Total liabilities and shareholders’ equity	$	24,712,340	$	22,821,145


	13-Week Period Ended				39-Week Period Ended
	Mar. 30, 2024		Apr. 1, 2023		Mar. 30, 2024		Apr. 1, 2023
Sales	$	19,379,500	$	18,875,676	$	58,287,896	$	56,596,459
Cost of sales	15,770,444		15,444,316		47,517,435		46,326,628
Gross profit	3,609,056		3,431,360		10,770,461		10,269,831
Operating expenses	2,887,010		2,735,633		8,544,790		8,196,480
Operating income	722,046		695,727		2,225,671		2,073,351
Interest expense	157,853		134,931		441,867		391,123
Other expense (income), net (1) (2)	10,380		6,759		22,265		354,813
Earnings before income taxes	553,813		554,037		1,761,539		1,327,415
Income taxes	129,125		124,433		418,217		291,027
Net earnings	$	424,688	$	429,604	$	1,343,322	$	1,036,388

Net earnings:
Basic earnings per share	$	0.85	$	0.85	$	2.67	$	2.04
Diluted earnings per share	0.85		0.84		2.66		2.03

Average shares outstanding	499,642,505		507,716,975		503,027,209		507,635,083
Diluted shares outstanding	501,921,446		509,842,400		504,973,406		510,123,782


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


(1)			Gains and losses related to the disposition of fixed assets have been recognized within operating expenses. Prior year amounts have been reclassified to conform to this presentation.
(2)			Sysco’s second quarter of fiscal 2023 included a charge of $315.4 million in other expense related to pension settlement charges. See Note 9, “Company-Sponsored Employee Benefit Plans.”


								Accumulated Other Comprehensive Loss
	Common Stock			Paid-in Capital		Retained Earnings				Treasury Stock
	Shares	Amount								Shares	Amounts		Totals
Balance as of December 30, 2023	765,174,900	$	765,175	$	1,877,201	$	11,724,251	$	(1,189,753)	261,472,819	$	(10,772,840)	$	2,404,034
Net earnings						424,688							424,688












Other comprehensive income								(41,468)					(41,468)
Dividends declared ($0.50 per common share)						(250,167)							(250,167)
Treasury stock purchases				(51,537)						6,026,110	(448,463)		(500,000)

Share-based compensation awards				21,079						(1,248,841)	42,787		63,866
Balance as of March 30, 2024	765,174,900	$	765,175	$	1,846,743	$	11,898,772	$	(1,231,221)	266,250,088	$	(11,178,516)	$	2,100,953

								Accumulated Other Comprehensive Loss
	Common Stock			Paid-in Capital		Retained Earnings				Treasury Stock
	Shares	Amount								Shares	Amounts		Totals
Balance as of December 31, 2022	765,174,900	$	765,175	$	1,774,141	$	10,649,338	$	(1,324,788)	257,846,972	$	(10,427,277)	$	1,436,589
Net earnings						429,604							429,604








Other comprehensive income								43,903					43,903
Dividends declared ($0.49 per common share)						(249,033)							(249,033)

Treasury stock purchases										1,530,029	(116,023)		(116,023)
Share-based compensation awards				10,934						(615,986)	19,328		30,262
Balance as of April 1, 2023	765,174,900	$	765,175	$	1,785,075	$	10,829,909	$	(1,280,885)	258,761,015	$	(10,523,972)	$	1,575,302


	Mar. 30, 2024		Apr. 1, 2023
	(In thousands)
Cash and cash equivalents	$	598,322	$	757,867
Restricted cash (1)	94,309		96,598
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows	$	692,631	$	854,465


(1)			Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in each consolidated balance sheet.


	13-Week Period Ended Mar. 30, 2024
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Canned and dry products	$	2,684,427	$	784,599	$	224,712	$	—	$	3,693,738
Fresh and frozen meats	2,460,731		482,271		509,315		—		3,452,317
Frozen fruits, vegetables, bakery and other	2,007,661		664,670		310,882		—		2,983,213
Dairy products	1,416,484		391,873		136,045		—		1,944,402
Poultry	1,323,166		259,138		249,457		—		1,831,761
Fresh produce	1,361,708		268,089		69,199		—		1,698,996
Paper and disposables	1,010,715		126,117		182,608		13,261		1,332,701
Seafood	544,394		97,227		52,161		—		693,782
Beverage products	351,387		165,421		143,101		20,497		680,406
Equipment and smallwares (1)	282,685		43,420		6,252		120,640		452,997


Other (2)	263,750		210,407		20,190		120,840		615,187
Total Sales	$	13,707,108	$	3,493,232	$	1,903,922	$	275,238	$	19,379,500


(1)			Due to the acquisition of Edward Don & Company (Edward Don), a distributor of foodservice equipment and supplies, “Equipment and smallwares” is now presented as a separate principal product category. See Note 4, “Acquisitions,” for details on this acquisition.
(2)			Other sales relate to certain non-food products, including textiles and amenities for our hotel supply business, other janitorial products, and medical supplies.


	13-Week Period Ended Apr. 1, 2023
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Canned and dry products	$	2,649,632	$	743,056	$	244,695	$	—	$	3,637,383
Fresh and frozen meats	2,378,124		474,824		461,897		—		3,314,845
Frozen fruits, vegetables, bakery and other	1,949,160		548,719		336,495		—		2,834,374
Dairy products	1,513,084		404,943		162,065		—		2,080,092
Poultry	1,266,096		288,185		272,727		—		1,827,008

Fresh produce	1,288,241		255,615		66,458		—		1,610,314
Paper and disposables	988,448		131,784		205,353		14,561		1,340,146


Seafood	587,726		111,779		51,077		—		750,582
Beverage products	328,221		145,013		144,703		21,957		639,894

Equipment and smallwares (1)	77,619		45,624		6,010		130,248		259,501

Other (2)	231,168		194,579		20,578		135,212		581,537
Total Sales	$	13,257,519	$	3,344,121	$	1,972,058	$	301,978	$	18,875,676


	39-Week Period Ended Mar. 30, 2024
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Canned and dry products	$	7,970,414	$	2,417,313	$	686,329	$	—	$	11,074,056
Fresh and frozen meats	7,604,366		1,505,399		1,494,006		—		10,603,771
Frozen fruits, vegetables, bakery and other	6,032,262		2,020,245		931,960		—		8,984,467
Dairy products	4,319,037		1,194,445		418,614		—		5,932,096
Poultry	4,024,956		835,773		784,465		—		5,645,194

Fresh produce	4,031,644		808,224		205,408		—		5,045,276
Paper and disposables	2,976,040		447,637		557,225		43,642		4,024,544
Seafood	1,629,987		332,372		139,733		—		2,102,092
Beverage products	1,049,800		500,343		428,460		65,693		2,044,296
Equipment and smallwares (1)	530,031		143,895		17,919		360,593		1,052,438
Other (2)	756,813		567,254		59,532		396,067		1,779,666

Total Sales	$	40,925,350	$	10,772,900	$	5,723,651	$	865,995	$	58,287,896


	13-Week Period Ended				39-Week Period Ended
	Mar. 30, 2024		Apr. 1, 2023		Mar. 30, 2024		Apr. 1, 2023
Net earnings	$	424,688	$	429,604	$	1,343,322	$	1,036,388
Other comprehensive income (loss):
Foreign currency translation adjustment	(67,825)		62,771		(12,935)		72,403
Items presented net of tax:
Amortization of cash flow hedges	2,170		2,170		6,510		6,495
Change in net investment hedges	6,769		(5,401)		(9,972)		(15,641)
Change in cash flow hedges	12,540		(22,455)		19,463		(48,642)
Changes in excluded components of fair value hedge	234		—		372		—


Amortization of prior service cost	146		74		438		222
Amortization of actuarial loss	5,034		5,605		15,027		18,124

Pension settlement charge	—		—		—		236,591
Net actuarial (loss) gain arising in current year	—		—		503		(67,388)
Change in marketable securities	(536)		1,139		1,963		(995)
Total other comprehensive income (loss)	(41,468)		43,903		21,369		201,169
Comprehensive income	$	383,220	$	473,507	$	1,364,691	$	1,237,557


	39-Week Period Ended
	Mar. 30, 2024		Apr. 1, 2023
Cash flows from operating activities:
Net earnings	$	1,343,322	$	1,036,388
Adjustments to reconcile net earnings to cash provided by operating activities:
Pension settlement charge	—		315,354
Share-based compensation expense	76,688		73,765
Depreciation and amortization	646,848		574,945
Operating lease asset amortization	91,694		83,959
Amortization of debt issuance and other debt-related costs	13,695		15,019

Deferred income taxes	(25,465)		(163,044)
Provision for losses on receivables	43,409		21,899


Other non-cash items	(2,488)		2,787
Additional changes in certain assets and liabilities, net of effect of businesses acquired:
Increase in receivables	(325,108)		(405,372)
Increase in inventories	(125,859)		(172,117)
Decrease (increase) in prepaid expenses and other current assets	23,267		(6,242)
(Decrease) increase in accounts payable	(281,506)		88,995
Increase (decrease) in accrued expenses	29,019		(55,162)
Decrease in operating lease liabilities	(102,969)		(100,847)
(Decrease) increase in accrued income taxes	(67,906)		119,784
Decrease in other assets	25,621		23,843
Increase (decrease) in other long-term liabilities	10,931		(28,172)

Net cash provided by operating activities	1,373,193		1,425,782
Cash flows from investing activities:
Additions to plant and equipment	(530,161)		(474,456)
Proceeds from sales of plant and equipment	20,708		28,313
Acquisition of businesses, net of cash acquired	(1,181,188)		(37,384)
Purchase of marketable securities	(11,422)		(15,078)
Proceeds from sales of marketable securities	—		11,641
Other investing activities	1,414		5,610

Net cash used for investing activities	(1,700,649)		(481,354)
Cash flows from financing activities:
Bank and commercial paper borrowings, net	524,593		—


	Mar. 30, 2024		Apr. 1, 2023
	(In thousands)
Non-cash investing and financing activities:
Plant and equipment acquired through financing programs	$	288,045	$	111,771
Assets obtained in exchange for finance lease obligations	87,729		99,776


	Mar. 30, 2024
	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
	(In thousands)
Fixed income securities:
Corporate bonds	$	102,030	$	315	$	(4,447)	$	97,898	$	23,676	$	74,222
Government bonds	29,553		—		(1,742)		27,811		—		27,811
Total marketable securities	$	131,583	$	315	$	(6,189)	$	125,709	$	23,676	$	102,033

	Jul. 1, 2023
	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
	(In thousands)
Fixed income securities:
Corporate bonds	$	99,501	$	96	$	(6,777)	$	92,820	$	12,767	$	80,053
Government bonds	29,777		—		(1,913)		27,864		—		27,864
Total marketable securities	$	129,278	$	96	$	(8,690)	$	120,684	$	12,767	$	107,917


	39-Week Period Ended Apr. 1, 2023
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Canned and dry products	$	7,729,545	$	2,135,052	$	717,588	$	2,002	$	10,584,187
Fresh and frozen meats	7,234,503		1,373,206		1,377,707		—		9,985,416
Frozen fruits, vegetables, bakery and other	5,643,893		1,724,851		984,070		149		8,352,963
Dairy products	4,536,602		1,130,429		487,466		—		6,154,497
Poultry	4,169,417		866,378		815,461		—		5,851,256

Fresh produce	4,011,326		767,993		197,801		—		4,977,120
Paper and disposables	2,987,583		410,358		625,402		43,102		4,066,445
Seafood	1,773,891		342,270		129,010		—		2,245,171
Beverage products	947,633		415,004		419,541		67,929		1,850,107

Equipment and smallwares (1)	219,670		151,575		17,669		379,813		768,727

Other (2)	682,992		593,151		67,336		417,091		1,760,570
Total Sales	$	39,937,055	$	9,910,267	$	5,839,051	$	910,086	$	56,596,459


	Assets Measured at Fair Value as of Mar. 30, 2024
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	199,955	$	3	$	—	$	199,958

Other assets (1)	94,309		—		—		94,309







Total assets at fair value	$	294,264	$	3	$	—	$	294,267


(1)			Represents restricted cash balance recorded within other assets in the consolidated balance sheet.


	Assets Measured at Fair Value as of Jul. 1, 2023
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Cash equivalents
Cash and cash equivalents	$	308,952	$	10,021	$	—	$	318,973



Other assets (1)	220,831		—		—		220,831

Total assets at fair value	$	529,783	$	10,021	$	—	$	539,804


	Mar. 30, 2024
	(In thousands)
Due in one year or less	$	23,676
Due after one year through five years	63,987
Due after five years	38,046

Total	$	125,709


		Derivative Fair Value
	Balance Sheet location	Mar. 30, 2024		Jul. 1, 2023
		(In thousands)
Fair Value Hedges:


Interest rate swaps	Other assets	$	12,115	$	—
Interest rate swaps	Other current liabilities	543		—

Cross currency swaps	Other current liabilities	1,986		1,262
Cross currency swaps	Other long-term liabilities	2,134		—

Cash Flow Hedges:
Fuel swaps	Other current assets	$	1,914	$	102
Foreign currency forwards	Other current assets	953		624

Fuel swaps	Other assets	870		40

Fuel swaps	Other current liabilities	1,898		17,932
Foreign currency forwards	Other current liabilities	121		404
Fuel swaps	Other long-term liabilities	383		5,637

Net Investment Hedges:
Cross currency swaps	Other current assets	$	5,238	$	—
Cross currency swaps	Other long-term liabilities	18,557		—


	13-Week Period Ended Mar. 30, 2024
	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	$	13,980	Operating expense	$	(423)
Foreign currency contracts	1,192		Cost of sales / Other income	—

Total	$	15,172		$	(423)

Derivatives in net investment hedging relationships:
Cross currency contracts	$	9,042	N/A	$	—




Derivatives in fair value hedging relationships:
Change in excluded component of fair value hedge	$	313	Other expense (income)	$	—

	13-Week Period Ended Apr. 1, 2023
	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	$	(27,031)	Operating expense	$	(969)
Foreign currency contracts	(878)		Cost of sales / Other income	—

Total	$	(27,909)		$	(969)

Derivatives in net investment hedging relationships:

Foreign denominated debt	$	(7,201)	N/A	$	—


	Mar. 30, 2024
	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:

Long-term debt	$	(503,431)	$	(11,788)


Maturity Date	Par Value (in millions)		Coupon Rate		Pricing (percentage of par)
January 17, 2029 (the 2029 Notes)	$	500	5.75	%	99.784	%
January 17, 2034 (the 2034 Notes)	500		6.00		99.037


	13-Week Period			39-Week Period
		Ended (1)			Ended (1)
		Apr. 1, 2023			Apr. 1, 2023
	(In thousands)			(In thousands)
Service cost		$	1,890		$	6,247
Interest cost		35,904			116,508
Expected return on plan assets		(35,425)			(112,402)
Amortization of prior service cost		98			295
Amortization of actuarial loss		7,018			23,627
Settlement loss recognized		—			315,354
Net pension costs		$	9,485		$	349,629



(1)			Net pension costs were not material for the third quarter and first 39 weeks of fiscal 2024.


		13-Week Period Ended Mar. 30, 2024
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In thousands)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	(67,825)	$	—	$	(67,825)
Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense, net	313		79		234
Change in cash flow hedges	Operating expenses (1)	15,172		2,632		12,540
Change in net investment hedges	N/A	9,042		2,273		6,769

Total other comprehensive (loss) before reclassification adjustments		24,527		4,984		19,543
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	2,893		723		2,170
Pension and other postretirement benefit plans:




Reclassification adjustments:
Amortization of prior service cost	Other expense, net	195		49		146
Amortization of actuarial loss, net	Other expense, net	6,705		1,671		5,034
Total reclassification adjustments		6,900		1,720		5,180
Marketable securities:
Change in marketable securities (2)	N/A	(443)		93		(536)
Total other comprehensive income (loss)		$	(33,948)	$	7,520	$	(41,468)


(1)			Amount partially impacts operating expense for fuel swaps accounted for as cash flow hedges.
(2)			Realized gains or losses on marketable securities are presented within other (income) expense, net in the consolidated results of operations; however, there were no significant gains or losses realized in the third quarter of fiscal 2024.


	13-Week Period Ended Mar. 30, 2024
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In thousands)
Balance as of Dec. 30, 2023	$	(319,400)	$	(37,306)	$	(828,753)	$	(4,294)	$	(1,189,753)
Equity adjustment from foreign currency translation	(67,825)		—		—		—		(67,825)
Amortization of cash flow hedges	—		2,170		—		—		2,170
Change in net investment hedges	—		6,769		—		—		6,769
Change in cash flow hedges	—		12,540		—		—		12,540
Change in excluded component of fair value hedge	—		234		—		—		234
Amortization of unrecognized prior service cost	—		—		146		—		146
Amortization of unrecognized net actuarial losses	—		—		5,034		—		5,034





Change in marketable securities	—		—		—		(536)		(536)
Balance as of Mar. 30, 2024	$	(387,225)	$	(15,593)	$	(823,573)	$	(4,830)	$	(1,231,221)


(1)			Other expense (income), net was expense of $10.4 million and $6.8 million in the third quarter of fiscal 2024 and fiscal 2023, respectively.
(2)			Other expense (income), net was expense of $22.3 million and $354.8 million in the first 39 weeks of fiscal 2024 and fiscal 2023, respectively.


	13-Week Period Ended Mar. 30, 2024
	U.S. Foodservice Operations			International Foodservice Operations			SYGMA			Other			Global Support Center			Consolidated Totals
	(In thousands)
Sales	$	13,707,108		$	3,493,232		$	1,903,922		$	275,238		$	—		$	19,379,500
Sales increase (decrease)	3.4		%	4.5		%	(3.5)		%	(8.9)		%				2.7		%
Percentage of total	70.7		%	18.0		%	9.8		%	1.5		%				100.0		%

Operating income (loss)	$	852,444		$	83,898		$	16,805		$	6,371		$	(237,472)		$	722,046
Operating income (loss) increase (decrease)	(0.5)		%	73.9		%	(34.4)		%	(46.2)		%	(3.9)		%	3.8		%
Percentage of total segments	88.8		%	8.7		%	1.8		%	0.7		%				100.0		%
Operating income as a percentage of sales	6.2		%	2.4		%	0.9		%	2.3		%				3.7		%


	13-Week Period Ended Mar. 30, 2024		13-Week Period Ended Apr. 1, 2023		Change in Dollars		% Change
	(Dollars in thousands)
Sales	$	13,707,108	$	13,257,519	$	449,589	3.4	%
Gross profit	2,652,847		2,545,859		106,988		4.2
Operating expenses	1,800,403		1,688,836		111,567		6.6
Operating income	$	852,444	$	857,023	$	(4,579)	(0.5)	%

Gross profit	$	2,652,847	$	2,545,859	$	106,988	4.2	%
Adjusted operating expenses (Non-GAAP)	1,778,055		1,677,133		100,922		6.0
Adjusted operating income (Non-GAAP)	$	874,792	$	868,726	$	6,066	0.7	%

	39-Week Period Ended Mar. 30, 2024		39-Week Period Ended Apr. 1, 2023		Change in Dollars		% Change
	(Dollars in thousands)
Sales	$	40,925,350	$	39,937,055	$	988,295	2.5	%
Gross profit	7,915,316		7,651,291		264,025		3.5
Operating expenses	5,282,865		5,107,587		175,278		3.4
Operating income	$	2,632,451	$	2,543,704	$	88,747	3.5	%

Gross profit	$	7,915,316	$	7,651,291	$	264,025	3.5	%
Adjusted operating expenses (Non-GAAP)	5,235,824		5,075,991		159,833		3.1
Adjusted operating income (Non-GAAP)	$	2,679,492	$	2,575,300	$	104,192	4.0	%


	Increase (Decrease)				Increase (Decrease)
	13-Week Period				39-Week Period
	(Dollars in millions)				(Dollars in millions)
Cause of change	Percentage		Dollars		Percentage		Dollars
Case volume (1)	2.6	%	$	337.4	2.7	%	$	1,045.4
Inflation	1.3		171.8		0.1		33.5

Other (2)	(0.5)		(59.6)		(0.3)		(90.6)
Total change in sales	3.4	%	$	449.6	2.5	%	$	988.3




(1)			Case volumes increased 2.9% and 3.0% compared to the third quarter and first 39 weeks of fiscal 2023, respectively. This volume increase resulted in a 2.6% and 2.7% increase in the dollar value of sales compared to the third quarter and first 39 weeks of fiscal 2023, respectively. Our volume reporting includes case volumes attributable to Edward Don.
(2)			Case volume reflects our broadline and specialty businesses, with the exception of our specialty meats business, which measures its volume in pounds. Any impact in volumes from these operations are included within “Other.”


(1)			The impact of volumes as a component of sales growth from international operations are included within “Other.”