Sysco 2008 Annual Report Download - page 45

Investing Activities
Fiscal 2008 capital expenditures included:
• construction of fold-out facilities in Knoxville, Tennessee and Longview, Texas;
• replacement or significant expansion of facilities in Atlanta, Georgia; Chicago, Illinois; Peterborough, Ontario and Houston, Texas;
• completion of the Southeast RDC in Alachua, Florida; and
• completion of work on the corporate headquarters expansion.
Fiscal 2007 capital expenditures included:
• construction of a fold-out facility in Raleigh, North Carolina;
• replacement or significant expansion of facilities in Edmonton, Alberta; Los Angeles, California; Miami, Florida; Albuquerque, New
Mexico and Columbia, South Carolina;
• the Southeast RDC in Alachua, Florida; and
• continuing work on the corporate headquarters expansion.
Fiscal 2006 capital expenditures included:
• construction of fold-out facilities in Geneva, Alabama; Springfield, Illinois and Raleigh, North Carolina;
• replacement or significant expansion of facilities in Miami, Florida and Denver, Colorado; and
• continuing work on the corporate headquarters expansion.
The lower amount spent in fiscal 2008 was primarily due to delays on certain projects that will shift significant expenditures to fiscal
2009. As a result, we expect total capital expenditures in fiscal 2009 to be in the range of $675,000,000 to $725,000,000. Fiscal 2009
expenditures will include the continuation of the fold-out program; facility, fleet and other equipment replacements and expansions; the
company’s National Supply Chain initiative; and investments in technology.
Financing Activities
Equity
We routinely engage in Board-approved share repurchase programs.The number of shares acquired and their cost during the past three
fiscal years were 16,769,900 shares for $529,179,000 in fiscal 2008, 16,231,200 shares for $550,865,000 in fiscal 2007 and
16,479,800 shares for $544,131,000 in fiscal 2006. An additional 125,000 shares have been purchased at a cost of $3,933,000 through
August 13, 2008, resulting in a remaining authorization by our Board of Directors to repurchase up to 6,212,800 shares, based on the trades
made through that date.
Dividends paid were $497,467,000, or $0.82 per share, in fiscal 2008, $445,416,000, or $0.72 per share, in fiscal 2007 and
$397,537,000, or $0.64 per share, in fiscal 2006. In May 2008,we declared our regular quarterly dividend for the first quarter of fiscal 2009
of $0.22 per share, which was paid in July 2008.
In November 2000, we filed with the Securities and Exchange Commission a shelf registration statement covering 30,000,000 shares
of common stock to be offered from time to time in connection with acquisitions. As of August 13, 2008, 29,477,835 shares remained
available for issuance under this registration statement.
Short-term Borrowings
We have uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up to $145,000,000, of
which none was outstanding as of June 28, 2008 or August 13, 2008.
Commercial Paper
We have a commercial paper program allowing us to issue short-term unsecured notes in an aggregate amount not to exceed
$1,300,000,000. The current program was entered into in April 2006 and replaced notes that were issued under our previous commercial
paper program as they matured and became due and payable.
SYSCO and one of our subsidiaries, SYSCO International, Co., has a revolving credit facility supporting our U.S. and Canadian
commercial paper programs. The facility, in the amount of $1,000,000,000, terminates on November 4, 2012, subject to extension.
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. In September 2007, the amount of the facility was increased to $1,000,000,000 and the termination date on the facility was
extended to November 4, 2012. 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 2008, 2007 and 2006, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from
approximately zero to $1,133,241,000, $356,804,000 to $755,180,000, $126,846,000 to $774,530,000, respectively. There were no
commercial paper issuances outstanding as of June 28, 2008 or August 13, 2008.
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