Sysco 2007 Annual Report Download - page 73

8. DEBT AND OTHER FINANCING ARRANGEMENTS
SYSCO’s debt consists of the following:
June 30, 2007 July 1, 2006
Short-term borrowings, interest at 5.7% as of June 30, 2007 and 5.4% as of
July 1, 2006_______________________________________________________________ $ 18,900,000 $ 29,300,000
Commercial paper, interest averaging 5.2% as of June 30, 2007 and 5.3% as of
July 1, 2006_______________________________________________________________ 531,826,000 399,568,000
Senior notes, interest at 7.25%, maturing in fiscal 2007_____________________________ —99,295,000
Senior notes, interest at 6.1%, maturing in fiscal 2012______________________________ 200,467,000 200,561,000
Senior notes, interest at 4.6%, maturing in fiscal 2014______________________________ 207,435,000 208,540,000
Debentures, interest at 7.16%, maturing in fiscal 2027______________________________ 50,000,000 50,000,000
Debentures, interest at 6.5%, maturing in fiscal 2029_______________________________ 224,498,000 224,474,000
Senior notes, interest at 5.375%, maturing in fiscal 2036 ________________________ 499,581,000 499,566,000
Industrial Revenue Bonds, mortgages and other debt, interest averaging 7.1%
as of June 30, 2007 and 6.9% as of July 1, 2006, maturing at various dates to
fiscal 2026 ________________________________________________________________ 47,988,000 51,388,000
Total debt ____________________________________________________________________ 1,780,695,000 1,762,692,000
Less current maturities and short-term debt ______________________________________ (22,468,000) (135,565,000)
Net long-term debt ____________________________________________________________ $1,758,227,000 $1,627,127,000
The principal payments required to be made during the next five fiscal years on debt outstanding as of June 30, 2007 are
shown below:
Amount
2008 __________________________________________________________________________________________ $ 22,468,000
2009 __________________________________________________________________________________________ 3,959,000
2010 __________________________________________________________________________________________ 1,454,000
2011 __________________________________________________________________________________________ 1,281,000
2012 __________________________________________________________________________________________ 733,171,000
Short-term Borrowings
SYSCO has uncommitted bank lines of credit, which as of June 30, 2007 provided for unsecured borrowings for working
capital of up to $145,000,000. Borrowings outstanding under these lines of credit were $18,900,000 and $29,300,000,
as of June 30, 2007 and July 1, 2006, respectively.
Commercial Paper
SYSCO has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate not
to exceed $1,300,000,000. The current program was entered into in April 2006 and replaced notes that were issued under
SYSCO’s previous commercial paper program as they matured and became due and payable.
SYSCO and one of its subsidiaries, SYSCO International, Co., has a revolving credit facility supporting the company’s
U.S. and Canadian commercial paper programs. The facility in the amount of $750,000,000 may be increased up to
$1,000,000,000 at the option of the company, and terminates on November 4, 2011, subject to extension. Since this long-
term facility supports the company’s commercial paper programs, the $531,826,000 and $399,568,000 of outstanding
commercial paper issuances as of June 30, 2007 and July 1, 2006, respectively, were classified as long-term debt.
This facility was originally entered into in November 2005 in the amount of $500,000,000 and was increased to
$750,000,000 in March 2006. In September 2006, the termination date on the facility was extended to November 4, 2011,
in accordance with the terms of the agreement. This facility replaced the previous $450,000,000 (U.S. dollar) and
$100,000,000 (Canadian dollar) revolving credit agreements in the U.S. and Canada, respectively, both of which were
terminated in November 2005.
During fiscal 2007, 2006 and 2005, aggregate outstanding commercial paper issuances and short-term bank borrowings
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