Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
The principal market for Sysco’s common stock (SYY) is the New York Stock Exchange. The number of record owners of Sysco’s common stock as of August 7, 2020 was 8,356.
We currently expect that comparable quarterly cash dividends will continue to be paid in the future; however, future declarations of dividends and the establishment of future record and payment dates are subject to the final determination of our Board of Directors.
We purchased 11.1 million shares during fiscal 2020, resulting in a remaining authorization under our program of approximately $2.1 billion as of June 27, 2020. There were 14,963,189 shares repurchased under our then outstanding plans in fiscal 2019. During March 2020, we discontinued share repurchases under the program, and, due to certain restrictions imposed by the amendment to our credit agreement providing for Sysco’s $2 billion long-term revolving credit facility, we will not make any further repurchases during fiscal 2021. See the discussion in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Debt Activity and Borrowing Availability” for additional information regarding the credit agreement amendment.
Stock Performance Graph
The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that Sysco specifically incorporates such information by reference into such filing.
The following stock performance graph compares the performance of Sysco’s Common Stock to the S&P 500 Index and to the S&P 500 Food/Staple Retail Index for Sysco’s last five fiscal years.
The graph assumes that the value of the investment in our Common Stock, the S&P 500 Index, and the S&P 500 Food/Staple Retail Index was $100 on the last trading day of fiscal 2015, and that all dividends were reinvested. Performance data for Sysco, the S&P 500 Index and the S&P 500 Food/Staple Retail Index is provided as of the last trading day of each of our last five fiscal years.
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6/27/2015 7/2/2016 7/1/2017 6/30/2018 6/29/2019 6/27/2020
Sysco Corporation $100 $137 $139 $193 $204 $155
S&P 500 100 102 120 138 152 159
S&P 500 Food/Staple Retail Index 100 101 99 107 126 134
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Item 6. Selected Financial Data
Fiscal Year
2020 (1)
2019 (1)
2018 (1)
2017 (1)
2016 (1)(2)
(In thousands except for per share data)
Sales $ 52,893,310 $ 60,113,922 $ 58,727,324 $ 55,371,139 $ 50,366,919
Operating income (3)
749,505 2,330,150 2,314,056 2,054,616 1,841,875
Earnings before income taxes 293,384 2,005,836 1,956,224 1,766,230 1,433,007
Income taxes 77,909 331,565 525,458 623,727 483,385
Net earnings $ 215,475 $ 1,674,271 $ 1,430,766 $ 1,142,503 $ 949,622
Net earnings:
Basic earnings per share $ 0.42 $ 3.24 $ 2.74 $ 2.10 $ 1.66
Diluted earnings per share 0.42 3.20 2.70 2.08 1.64
Dividends declared per share $ 1.74 $ 1.53 $ 1.41 $ 1.30 $ 1.23
Total assets $ 22,628,266 $ 17,966,522 $ 18,070,404 $ 17,756,655 $ 16,721,804
Capital expenditures 720,423 692,391 687,815 686,378 527,346
Current maturities of long-term debt $ 1,542,128 $ 37,322 $ 782,329 $ 530,075 $ 8,909
Long-term debt 12,902,485 8,122,058 7,540,765 7,660,877 7,336,930
Total long-term debt 14,444,613 8,159,380 8,323,094 8,190,952 7,345,839
Shareholders’ equity 1,158,613 2,502,603 2,506,957 2,381,516 3,479,608
Total capitalization $ 15,603,226 $ 10,661,983 $ 10,830,051 $ 10,572,468 $ 10,825,447
Ratio of long-term debt to
capitalization 92.6 % 76.5 % 76.9 % 77.5 % 67.9 %
(1) Our results of operations are impacted by Certain Items that have resulted in reduced earnings on a generally accepted accounting principles (GAAP) basis. See “Non-GAAP Reconciliations,” within Management’s Discussion and Analysis of Financial Condition and Results of Operations, for a description of these items and our results on an adjusted basis that exclude Certain Items.
(2) Sysco’s fiscal year ends on the Saturday nearest to June 30 th . This resulted in a 53-week year ended July 2, 2016 for fiscal 2016.
(3) In fiscal 2019, Sysco adopted Accounting Standards Update 2017-07, which requires that an employer report all of the components, except the service cost component, of pension and postretirement benefits outside of operating income. This was applied retroactively, and as a result, the company has restated prior year amounts to include net periodic income (expense) in other income (expense) that were previously included in operating expense.