Sysco 2007 Annual Report Download - page 82

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Before-Tax
Amount Income Tax
After-Tax
Amount
2006
Minimum pension liability adjustment____________________________________ $ 70,097,000 $26,917,000 $43,180,000
Foreign currency translation adjustment _________________________________ 47,718,000 — 47,718,000
Change in fair value of interest rate swap ________________________________ 11,388,000 4,324,000 7,064,000
Amortization of cash flow hedge ________________________________________ 540,000 207,000 333,000
Other comprehensive income ___________________________________________ $129,743,000 $31,448,000 $98,295,000
Before-Tax
Amount Income Tax
After-Tax
Amount
2005
Minimum pension liability adjustment ___________________________________ $(54,414,000) $(20,861,000) $(33,553,000)
Foreign currency translation adjustment ________________________________ 22,357,000 — 22,357,000
Change in fair value of interest rate swap _______________________________ (32,584,000) (12,463,000) (20,121,000)
Other comprehensive loss _____________________________________________ $(64,641,000) $(33,324,000) $(31,317,000)
The following table provides a summary of the changes in accumulated other comprehensive income (loss) for the
years presented:
Pension and Other
Postretirement
Benefit Plans
Foreign Currency
Translation
Interest
Rate Swap Total
Balance as of July 3, 2004 ______________________ $ (20,733,000) $ 38,373,000 $ — $ 17,640,000
Minimum pension liability adjustment ____________ (33,553,000) — — (33,553,000)
Foreign currency translation adjustment __________ — 22,357,000 — 22,357,000
Change in fair value of interest rate swap _________ — — (20,121,000) (20,121,000)
Balance as of July 2, 2005 ______________________ (54,286,000) 60,730,000 (20,121,000) (13,677,000)
Minimum pension liability adjustment ____________ 43,180,000 — — 43,180,000
Foreign currency translation adjustment __________ — 47,718,000 — 47,718,000
Change in fair value of interest rate swap _________ — — 7,064,000 7,064,000
Amortization of cash flow hedge _________________ — — 333,000 333,000
Balance as of July 1, 2006 _____________________ (11,106,000) 108,448,000 (12,724,000) 84,618,000
Minimum pension liability adjustment ___________ 3,469,000 — — 3,469,000
Foreign currency translation adjustment _________ — 25,052,000 — 25,052,000
Amortization of cash flow hedge ________________ — — 428,000 428,000
Impact of adoption of SFAS 158 _________________ (117,628,000) — — (117,628,000)
Balance as of June 30, 2007 ___________________ $(125,265,000) $133,500,000 $(12,296,000) $ (4,061,000)
13. SHARE-BASED COMPENSATION
Prior to July 3, 2005, SYSCO accounted for its stock option plans and its Employees’ Stock Purchase Plan using the
intrinsic value method of accounting provided under APB Opinion No. 25, “Accounting for Stock Issued to Employees,”
(APB 25) and related interpretations, as permitted by FASB Statement No. 123, “Accounting for Stock-Based
Compensation,” (SFAS 123) under which no compensation expense was recognized for stock option grants and issuances
of stock pursuant to the Employees’ Stock Purchase Plan. However, share-based compensation expense was recognized
in periods prior to fiscal 2006 (and continues to be recognized) for stock issuances pursuant to the Management Incentive
Plan and stock grants to non-employee directors. Share-based compensation was a pro forma disclosure in the financial
statement footnotes and continues to be provided for periods prior to fiscal 2006.
page 56 ][ SYSCO Corporation