Sysco 2007 Annual Report Download - page 41

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results of operations for fiscal 2006 include incremental share-based compensation cost over what would have
been recorded had the company continued to account for share-based compensation under APB 25 of $118,038,000
($105,810,000, net of tax). Our consolidated results of operations for all future periods will include share-based
compensation cost recorded in accordance with SFAS 123(R).
RESULTS OF OPERATIONS
The following table sets forth the components of our consolidated results of operations expressed as a percentage
of sales for the periods indicated:
2007 2006 2005
Sales _________________________________________________________________________________ 100.0% 100.0% 100.0%
Costs and Expenses
Cost of sales _______________________________________________________________________ 80.7 80.7 80.9
Operating expenses _________________________________________________________________ 14.4 14.7 13.9
Interest expense____________________________________________________________________ 0.3 0.3 0.2
Other, net _________________________________________________________________________ 0.0 0.0 0.0
Total costs and expenses ________________________________________________________________ 95.4 95.7 95.0
Earnings before income taxes and cumulative effect of accounting change _____________________ 4.6 4.3 5.0
Income taxes __________________________________________________________________________ 1.7 1.7 1.8
Earnings before cumulative effect of accounting change _____________________________________ 2.9 2.6 3.2
Cumulative effect of accounting change ____________________________________________________ —0.0 —
Net earnings ___________________________________________________________________________ 2.9% 2.6% 3.2%
The following table sets forth the change in the components of our consolidated results of operations expressed as a
percentage increase or decrease over the prior year:
2007 2006
Sales _________________________________________________________________________________ 7.4% 7.8%
Costs and Expenses
Cost of sales ______________________________________________________________________ 7.4 7.5
Operating expenses ________________________________________________________________ 5.3 14.4
Interest expense ___________________________________________________________________ (3.8) 45.5
Other, net _________________________________________________________________________ 96.7 (17.3)
Total costs and expenses________________________________________________________________ 7.0 8.6
Earnings before income taxes and cumulative effect of accounting change _____________________ 16.2 (8.6)
Income taxes __________________________________________________________________________ 13.0 (2.7)
Earnings before cumulative effect of accounting change _____________________________________ 18.3 (12.0)
Cumulative effect of accounting change ___________________________________________________ (100.0) N/A
Net earnings __________________________________________________________________________ 17.0% (11.0)%
Earnings before cumulative effect of accounting change:
Basic earnings per share________________________________________________________________ 19.1% (9.9)%
Diluted earnings per share ______________________________________________________________ 18.5 (8.2)
Net earnings:
Basic earnings per share________________________________________________________________ 17.4 (8.6)
Diluted earnings per share ______________________________________________________________ 17.6 (7.5)
Average shares outstanding _____________________________________________________________ (0.5) (2.3)
Diluted shares outstanding ______________________________________________________________ (0.4) (3.7)
SYSCO Corporation ][ page 15