SYY · 10-K · 2026A · Full report

U.S. Tax Law Changes

SYSCO CORP · 2026-08-21 · Importance 47 · Surprise 60

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. Its provisions include permanent extension of certain expiring Tax Cuts and Jobs Act of 2017 provisions, modifications to the international tax framework, and restored favorable tax treatment for certain business provisions. Sysco said the provisions decreased cash taxes paid in fiscal 2026 and may change the timing of cash tax payments in future periods; no dollar amount was disclosed.

Key facts

• The OBBBA was signed into law on July 4, 2025; its provisions decreased Sysco's cash taxes paid in fiscal 2026 and may change the timing of cash tax payments in future periods. source
• Sysco's tax lawsuit challenges regulations concerning the one-time transition tax on unrepatriated foreign earnings enacted under the 2017 Tax Cuts and Jobs Act; Sysco previously recorded a $131 million benefit and may have to reverse all or part of it if unsuccessful. source
• Sysco received an IRS Statutory Notice of Deficiency in fiscal 2023, mainly concerning foreign tax credits generated in fiscal 2018 from repatriated earnings, primarily from Canadian operations. source
• Sysco filed suit in U.S. Tax Court on April 18, 2023, challenging the validity of certain regulations related to the one-time transition tax on unrepatriated foreign earnings enacted as part of the 2017 Tax Cuts and Jobs Act. source
• Sysco's net cash taxes paid in fiscal 2026 decreased due to OBBBA tax provisions, which may change the timing of cash tax payments in future periods. source
• Failure to comply with applicable laws or government regulations, including environmental, data privacy, tax, and accounting requirements, could affect Sysco. source