SYSCO CORPSYY
SYSCO CORP Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLES
The changes in the carrying amount of goodwill by reportable segment for the years presented are as follows:
| U.S. Foodservice Operations | International Foodservice Operations | SYGMA | Other | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Carrying amount as of July 1, 2023 | $ | 2,247 | $ | 2,178 | $ | 33 | $ | 188 | $ | 4,646 | |||||||||||||||||||
| Goodwill acquired during year | 510 | 7 | — | — | 517 | ||||||||||||||||||||||||
| Currency translation/other | (1) | (9) | — | — | (10) | ||||||||||||||||||||||||
| Carrying amount as of June 29, 2024 | $ | 2,756 | $ | 2,176 | $ | 33 | $ | 188 | $ | 5,153 | |||||||||||||||||||
| Goodwill acquired during year | (1) | 10 | — | — | 9 | ||||||||||||||||||||||||
| Impairment | — | — | — | (92) | (92) | ||||||||||||||||||||||||
| Currency translation/other | 161 | — | — | 161 | |||||||||||||||||||||||||
| Carrying amount as of June 28, 2025 | $ | 2,755 | $ | 2,347 | $ | 33 | $ | 96 | $ | 5,231 | |||||||||||||||||||
Amortizable intangible assets acquired during fiscal 2025 were $12 million, with a weighted-average amortization period of 17 years. Amortizable intangible assets acquired during fiscal 2025 by category were customer relationships and trademarks of $6 million and $6 million, respectively, with a weighted-average amortization period of 9 years and 25 years, respectively.
Fully amortized intangible assets have been removed in the period fully amortized in the table below which presents the company’s amortizable intangible assets in total by category as follows:
| Jun. 28, 2025 | Jun. 29, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Customer relationships | $ | 1,595 | $ | (951) | $ | 644 | $ | 1,502 | $ | (754) | $ | 748 | |||||||||||||||||||||||
| Non-compete agreements | 27 | (22) | 5 | 28 | (20) | 8 | |||||||||||||||||||||||||||||
| Trademarks | 156 | (46) | 110 | 151 | (32) | 119 | |||||||||||||||||||||||||||||
| Other | 10 | (3) | 7 | 10 | (1) | 9 | |||||||||||||||||||||||||||||
| Total amortizable intangible assets | $ | 1,788 | $ | (1,022) | $ | 766 | $ | 1,691 | $ | (807) | $ | 884 | |||||||||||||||||||||||
The table below presents our indefinite-lived intangible assets by category as follows:
| Jun. 28, 2025 | Jun. 29, 2024 | ||||||||||
| (In millions) | |||||||||||
| Trademarks | $ | 313 | $ | 303 | |||||||
| Licenses | 1 | 1 | |||||||||
| Total indefinite-lived intangible assets | $ | 314 | $ | 304 | |||||||
Amortization expense for 2025, 2024 and 2023 was $147 million, $142 million and $126 million, respectively. The estimated future amortization expense for the next five fiscal years on intangible assets outstanding as of June 28, 2025 is shown below:
| Amount | |||||
| (In millions) | |||||
| 2026 | $ | 120 | |||
| 2027 | 101 | ||||
| 2028 | 97 | ||||
| 2029 | 96 | ||||
| 2030 | 80 | ||||
Goodwill Impairment
Sysco had approximately $5.2 billion of goodwill at June 28, 2025. We test goodwill for impairment annually at the reporting unit level in our fiscal fourth quarter, or more frequently if events or circumstances indicate that they could be impaired. Potential impairment indicators include (but are not limited to) macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, specific events affecting the reporting unit or sustained decrease in share price.
In our annual fiscal 2025 assessment, we concluded that one reporting unit, Guest Worldwide, had a fair value less than book value due to its recent financial performance and downward revisions in its long-range financial outlook. In the fourth quarter of fiscal 2025 we recorded a noncash goodwill impairment charge of $92 million for a portion of the goodwill attributable to our Guest Worldwide reporting unit. This charge is included within operating expenses in the consolidated results of operations. All other reporting units were concluded to have a fair value that exceeded book value.
We estimate the fair value of our reporting units using a combination of discounted cash flow and earnings or revenue multiple models. For the purposes of the discounted cash flow models, fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. Our fair value conclusions as of June 28, 2025 for the reporting units are sensitive to changes in the assumptions used in the income approach which include forecasted revenues and EBITDA, perpetual growth rates, and long-term discount rates, among others, all of which require significant judgments by management. Fair value of the reporting unit is, therefore, determined using significant unobservable inputs, or level 3 in the fair value hierarchy. We used recent historical performance, current forecasted financial information, and broad-based industry and economic statistics as a basis to estimate the key assumptions utilized in the discounted cash flow model. These key
assumptions are inherently uncertain and require a high degree of estimation and judgment and are subject to change based on actual results, industry and global economic and geo-political conditions, and the timing and success of the implementation of current strategic initiatives.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 22, 2025 | Showing above |
| 2024 | Aug 28, 2024 | |
| 2023 | Aug 25, 2023 | |
| 2022 | Aug 26, 2022 | |
| 2021 | Aug 30, 2021 | |
| 2020 | Aug 26, 2020 | |
| 2019 | Aug 26, 2019 | |
| 2018 | Aug 27, 2018 | |
| 2017 | Aug 30, 2017 | |
| 2016 | Aug 30, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.