Sysco 2007 Annual Report Download - page 81

earnings by the weighted average number of shares of common stock outstanding during those respective years adjusted
for the dilutive effect of stock options outstanding using the treasury stock method.
A reconciliation of the numerators and the denominators of the basic and diluted per share computations for the periods
presented follows:
2007 2006 2005
Numerator:
Earnings before cumulative effect of accounting change ________________ $1,001,076,000 $846,040,000 $961,457,000
Cumulative effect of accounting change ______________________________ —9,285,000 —
Net earnings _____________________________________________________ $1,001,076,000 $855,325,000 $961,457,000
Denominator:
Weighted-average basic shares outstanding ______________________ 618,332,752 621,382,766 636,068,266
Dilutive effect of share-based awards ____________________________ 8,034,046 7,417,881 17,088,851
Weighted-average diluted shares outstanding _____________________ 626,366,798 628,800,647 653,157,117
Basic earnings per share:
Earnings before cumulative effect of accounting change ________________ $ 1.62 $ 1.36 $ 1.51
Cumulative effect of accounting change ______________________________ —0.02 —
Net earnings _____________________________________________________ $ 1.62 $ 1.38 $ 1.51
Diluted earnings per share:
Earnings before cumulative effect of accounting change ________________ $ 1.60 $ 1.35 $ 1.47
Cumulative effect of accounting change ______________________________ —0.01 —
Net earnings _____________________________________________________ $ 1.60 $ 1.36 $ 1.47
The number of options that were not included in the diluted earnings per share calculation because the effect would have
been anti-dilutive was approximately 21,900,000, 28,500,000 and 68,000 for fiscal 2007, 2006 and 2005, respectively.
Dividends declared were $456,438,000, $408,264,000 and $368,792,000 in fiscal 2007, 2006 and 2005, respectively. Included
in dividends declared for each year were dividends declared but not yet paid year-end of approximately $116,000,000,
$105,000,000 and $95,000,000 in fiscal 2007, 2006 and 2005, respectively.
In May 1986, the Board of Directors adopted a Warrant Dividend Plan designed to protect against those unsolicited
attempts to acquire control of SYSCO that the Board believes are not in the best interests of the shareholders. This plan
was amended and replaced by the Amended and Restated Rights Agreement (the Plan) in May 1996. The Board adopted
further amendments in May 1999. By its terms, the Plan expired on May 31, 2006.
12. COMPREHENSIVE INCOME
Comprehensive income is net earnings plus certain other items that are recorded directly to shareholders’ equity.
Comprehensive income was $1,030,025,000, $953,620,000 and $930,140,000 in fiscal 2007, 2006 and 2005, respectively.
A summary of the components of other comprehensive income (loss) and the related tax effects for each of the years
presented is as follows:
Before-Tax
Amount Income Tax
After-Tax
Amount
2007
Minimum pension liability adjustment ____________________________________ $ 5,633,000 $2,164,000 $ 3,469,000
Foreign currency translation adjustment __________________________________ 25,052,000 — 25,052,000
Amortization of cash flow hedge _________________________________________ 694,000 266,000 428,000
Other comprehensive income ____________________________________________ $31,379,000 $2,430,000 $28,949,000
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