Sysco 2008 Annual Report Download - page 67

4. ALLOWANCE FOR DOUBTFUL ACCOUNTS
A summary of the activity in the allowance for doubtful accounts appears below:
2008 2007 2006
Balance at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,841,000 $ 29,100,000 $ 29,604,000
Charged to costs and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,185,000 28,156,000 19,895,000
Allowance accounts resulting from acquisitions and other adjustments . . 71,000 595,000 729,000
Customer accounts written off, net of recoveries . . . . . . . . . . . . . . . . . (32,367,000) (26,010,000) (21,128,000)
Balance at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,730,000 $ 31,841,000 $ 29,100,000
5. PLANT AND EQUIPMENT
A summary of plant and equipment, including the related accumulated depreciation, appears below:
June 28, 2008 June 30, 2007
Estimated Useful
Lives
Plant and equipment, at cost:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 270,157,000 $ 239,206,000
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,652,091,000 2,428,184,000 10-40 years
Fleet, equipment and software . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,542,235,000 2,416,948,000 3-20 years
5,464,483,000 5,084,338,000
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,574,693,000) (2,363,105,000)
Net plant and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,889,790,000 $ 2,721,233,000
Depreciation expense, including capital leases, for the past three years was $352,569,000 in 2008, $341,714,000 in 2007 and
$320,669,000 in 2006.
6. GOODWILL AND OTHER INTANGIBLES
The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows:
Broadline SYGMA Other Total
Carrying amount as of July 1, 2006 . . . . . . . . . . . . . . . . . $ 709,414,000 $ 32,610,000 $ 560,567,000 $ 1,302,591,000
Goodwill acquired during year . . . . . . . . . . . . . . . . . . . . . 13,017,000 — 29,168,000 42,185,000
Currency translation/Other . . . . . . . . . . . . . . . . . . . . . . . 10,253,000 (1,000) 285,000 10,537,000
Carrying amount as of June 30 2007 . . . . . . . . . . . . . . . . 732,684,000 32,609,000 590,020,000 1,355,313,000
Goodwill acquired during year . . . . . . . . . . . . . . . . . . . . . 11,537,000 — 33,861,000 45,398,000
Currency translation/Other . . . . . . . . . . . . . . . . . . . . . . . 12,199,000 — 314,000 12,513,000
Carrying amount as of June 28, 2008 . . . . . . . . . . . . . . . $ 756,420,000 $ 32,609,000 $ 624,195,000 $ 1,413,224,000
The following table presents details of the company’s other intangible assets:
Gross Carrying
Amount
Accumulated
Amortization Net
Gross Carrying
Amount
Accumulated
Amortization Net
June 28, 2008 June 30, 2007
Amortized intangible assets:
Customer relationships . . . . . . . . . . . $ 123,605,000 $ 43,756,000 $79,849,000 $114,844,000 $31,721,000 $83,123,000
Non-compete agreements . . . . . . . . . 4,163,000 2,443,000 1,720,000 5,027,000 2,841,000 2,186,000
Trademarks . . . . . . . . . . . . . . . . . . . . 500,000 220,000 280,000 700,000 175,000 525,000
Total amortized intangible assets. . . . . 128,268,000 46,419,000 81,849,000 120,571,000 34,737,000 85,834,000
Unamortized intangible assets:
Trademarks . . . . . . . . . . . . . . . . . . . . 5,679,000 — 5,679,000 5,532,000 — 5,532,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . $ 133,947,000 $ 46,419,000 $87,528,000 $126,103,000 $34,737,000 $91,366,000
Amortization expense for the past three years was $13,865,000 in 2008, $12,711,000 in 2007 and $10,773,000 in 2006. Amortization
expense for each year includes expense related to assets that have been fully amortized and whose balances have been removed in the
schedule above in the period full amortization is reached. The estimated future amortization expense for the next five fiscal years on
intangible assets outstanding as of June 28, 2008 is shown below:
Amount
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,138,000
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,726,000
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,227,000
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,942,000
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,410,000
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