Sysco 2007 Annual Report Download - page 71

SFAS 159
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Liabilities” (SFAS 159).
SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are
not currently required to be measured at fair value. SFAS 159 also establishes presentation and disclosure requirements
designed to facilitate comparisons between entities that choose different measurement attributes for similar types
of assets and liabilities. SFAS 159 is effective as of the beginning of an entity’s first fiscal year that begins after
November 15, 2007. The company is currently evaluating the impact the adoption of SFAS 159 may have on its
consolidated financial statements.
4. PLANT AND EQUIPMENT
A summary of plant and equipment, including the related accumulated depreciation, appears below:
June 30, 2007 July 1, 2006
Estimated
Useful Lives
Plant and equipment, at cost:
Land_______________________________________________________ $ 239,206,000 $ 220,542,000
Buildings and improvements __________________________________ 2,428,184,000 2,140,786,000 10-40 years
Fleet, equipment and software ________________________________ 2,416,948,000 2,277,612,000 3-20 years
5,084,338,000 4,638,940,000
Accumulated depreciation ________________________________________ (2,363,105,000) (2,174,040,000)
Net plant and equipment _________________________________________ $ 2,721,233,000 $ 2,464,900,000
Depreciation expense, including capital leases, for the past three years was $341,714,000 in 2007, $320,669,000 in 2006
and $298,111,000 in 2005.
5. GOODWILL AND OTHER INTANGIBLES
The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented
are as follows:
Broadline SYGMA Other Total
Carrying amount as of July 2, 2005 ____________________ $676,346,000 $33,161,000 $503,096,000 $1,212,603,000
Goodwill acquired during year_________________________ 11,488,000 (551,000) 57,173,000 68,110,000
Currency translation/Other ___________________________ 21,580,000 — 298,000 21,878,000
Carrying amount as of July 1, 2006 ____________________ 709,414,000 32,610,000 560,567,000 1,302,591,000
Goodwill acquired during year_________________________ 13,017,000 — 29,168,000 42,185,000
Currency translation/Other ___________________________ 10,253,000 (1,000) 285,000 10,537,000
Carrying amount as of June 30, 2007 ___________________ $732,684,000 $32,609,000 $590,020,000 $1,355,313,000
The following table presents details of the company’s other intangible assets:
Gross Carrying
Amount
Accumulated
Amortization Net
Gross Carrying
Amount
Accumulated
Amortization Net
June 30, 2007 July 1, 2006
Amortized intangible assets:
Customer relationships________ $114,844,000 $31,721,000 $83,123,000 $109,201,000 $21,056,000 $88,145,000
Non-compete agreements _____ 5,027,000 2,841,000 2,186,000 8,099,000 6,001,000 2,098,000
Trademarks _________________ 700,000 175,000 525,000 ———
Total amortized intangible
assets___________________ 120,571,000 34,737,000 85,834,000 117,300,000 27,057,000 90,243,000
Unamortized intangible assets:
Trademarks _________________ 5,532,000 — 5,532,000 5,408,000 — 5,408,000
Total ___________________________ $126,103,000 $34,737,000 $91,366,000 $122,708,000 $27,057,000 $95,651,000
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