Sysco(SYY)2024-10-29 21:43Financial Performance - Net earnings for the 13-week period ended September 28, 2024, were 503 million in the same period last year[57]. - Total sales for Sysco in the 13-week period ended September 28, 2024, were 19,620 million in the same period of the previous year, representing a growth of approximately 4.4%[80]. - Operating income for Sysco's U.S. Foodservice Operations was 941 million year-over-year, reflecting a decline of about 3.5%[81]. - The International Foodservice Operations segment reported operating income of 93 million, indicating a growth of approximately 8.6%[81]. - Sysco's total operating income for the period was 804 million in the previous year[81]. Earnings Per Share - Basic and diluted earnings per share remained stable at 0.99, respectively, for the first quarter of fiscal 2025[57]. - The number of securities excluded from the diluted earnings per share calculation was approximately 3,338,000 for the first quarter of fiscal 2025[57]. Comprehensive Income - Comprehensive income increased to 429 million for the same period in fiscal 2024[58]. Share-Based Compensation - The total share-based compensation cost recognized was 24 million in the prior year[70]. - The weighted average grant-date fair value per option granted was 82.63 during the same period[67]. - The total number of unrecognized compensation costs related to share-based compensation arrangements was 131 million related to foreign tax credits, which may need to be reversed if the company is unsuccessful in its ongoing tax litigation[73]. - The OECD's Pillar Two Model Rules, effective for Sysco at the beginning of fiscal 2025, mandate a minimum corporate income tax rate of 15%[74]. Legal Proceedings - The company is engaged in various legal proceedings, with potential losses ranging from remote to reasonably possible, but management does not expect a material adverse effect on financial results[76]. Market Risks - Sysco's market risks include interest rate risk, foreign currency exchange rate risk, fuel price risk, and investment risk, with no significant changes reported since June 29, 2024[82]. Interest Expense - Interest expense increased to 134 million, representing a rise of about 19.4%[81].