Sysco 2007 Annual Report Download - page 76

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company’s consolidated results of operations for the fiscal year ended June 30, 2007, or for any prior period presented,
and it will not affect the company’s consolidated results of operations in future periods. Prior to the adoption of SFAS 158
on June 30, 2007, the company recognized an additional minimum pension liability pursuant to the provisions of
SFAS 87/106. The effect of recognizing the additional minimum pension liability is included in the table below in the
column labeled “Prior to Adopting SFAS 158.”
Prior to Adopting
SFAS 158
Effect of Adopting
SFAS 158
As Reported at
June 30, 2007
As of June 30, 2007
Prepaid pension cost __________________________________________ $ 436,236,000 $ (83,846,000) $ 352,390,000
Intangible asset (Other assets) _________________________________ 43,854,000 (43,854,000) —
Current accrued benefit liability (Accrued expenses) ______________ — (10,967,000) (10,967,000)
Long-term deferred tax liability ________________________________ (38,196,000) 73,328,000 35,132,000
Non-current accrued benefit liability (Other long-term liabilities) ___ (271,369,000) (52,289,000) (323,658,000)
Accumulated other comprehensive loss _________________________ 7,637,000 117,628,000 125,265,000
SFAS 158 also has a measurement date provision, which is a requirement to measure plan assets and benefit obligations
as of the date of the employer’s fiscal year-end statement of financial position, effective for fiscal years ending after
December 15, 2008. In the first quarter of fiscal 2006, SYSCO changed the measurement date for pension and other
postretirement benefit plans from fiscal year-end to May 31st to allow additional time for management to evaluate and
report the actuarial pension measurements in the year-end financial statements and disclosures within the accelerated
filing deadlines of the Securities and Exchange Commission. The cumulative effect of this change in accounting resulted in
an increase to earnings in the first quarter of fiscal 2006 of $9,285,000, net of tax. With the issuance of SFAS 158, SYSCO
has elected to early adopt the measurement date provision in order to adopt both provisions of this accounting standard at
the same time. As a result, beginning in fiscal 2008, the measurement date will return to correspond with fiscal year-end.
The company has performed measurements as of May 31, 2007 and June 30, 2007 of the plan assets and benefit
obligations. SYSCO will record a charge to beginning retained earnings in the first quarter of fiscal 2008 of approximately
$4,000,000, net of tax, for the impact of the difference in our pension expense between the two measurement dates.
The company will also record a benefit to beginning accumulated other comprehensive loss in the first quarter of fiscal
2008 of approximately $23,000,000, net of tax, for the impact of the difference in our recognition provision between the
two measurement dates.
page 50 ][ SYSCO Corporation