SYY · 10-K · 2026A · Full report

Interest Rate and Refinancing Exposure

SYSCO CORP · 2026-08-21 · Importance 34 · Surprise 42

Sysco entered into cash-settled deal-contingent rate locks to mitigate interest-rate risk on $6.3 billion of potential permanent debt for the JRD acquisition. Because the contracts depend on consummation of the transaction, Sysco did not elect hedge accounting and recognizes unrealized gains or losses in Other expense (income), net. The company recorded a $54 million loss on the rate locks in the fourth quarter of fiscal 2026. Fiscal 2026 Other expense (income), net totaled $102 million, compared with $38 million in fiscal 2025.

Key facts

• Sysco executed cash-settled deal-contingent rate-lock transactions to mitigate interest-rate risk on $6.3 billion of potential future permanent debt for the Jetro Restaurant Depot transaction. source
• Sysco incurred approximately $54 million of losses on deal-contingent rate-lock transactions in the fourth quarter of fiscal 2026. source
• Sysco's aggregate commercial paper issuances and short-term bank borrowings had weighted-average interest rates of 4.39% in fiscal 2026 and 4.57% in fiscal 2025. source
• Sysco stated that a significant credit-rating downgrade or adverse capital-market conditions may increase borrowing costs or limit access to capital. source