Sysco 2009 Annual Report Download - page 41

Short-term Borrowings
We have uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up to $88,000,000, of which none
was outstanding as of June 27, 2009 or August 12, 2009.
Our Irish subsidiary, Pallas Foods Limited, has a ¤20,000,000 (Euro) committed facility for unsecured borrowings for working capital, which
expires March 31, 2010. There were no borrowings outstanding under this facility as of June 27, 2009 or August 12, 2009.
Commercial Paper
We have a Board-approved commercial paper program allowing us to issue short-term unsecured notes in an aggregate amount not to exceed
$1,300,000,000.
Sysco and one of our subsidiaries, Sysco International, Co., have a revolving credit facility supporting our U.S. and Canadian commercial paper
programs. The facility, in the amount of $1,000,000,000, expires on November 4, 2012, but is subject to extension.
During fiscal 2009, 2008 and 2007, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from
approximately zero to $164,998,000, zero to $1,133,241,000, $356,804,000 to $755,180,000, respectively. There were no commercial paper
issuances outstanding as of June 27, 2009 or August 12, 2009.
Fixed Rate Debt
In April 2007, we repaid at maturity our 7.25% senior notes totaling $100,000,000 utilizing a combination of cash flow from operations and
commercial paper issuances.
In January 2008, the SEC granted our request to terminate our then existing shelf registration statement that was filed with the SEC in April
2005 for the issuance of debt securities. In February 2008, we filed an automatically effective well-known seasoned issuer shelf registration
statement for the issuance of up to $1,000,000,000 in debt securities with the SEC.
In February 2008, we issued 4.20% senior notes totaling $250,000,000 due February 12, 2013 (the 2013 notes) and 5.25% senior notes
totaling $500,000,000 due February 12, 2018 (the 2018 notes) under our February 2008 shelf registration. The 2013 and 2018 notes, which were
priced at 99.835% and 99.310% of par, respectively, are unsecured, are not subject to any sinking fund requirement and include a redemption
provision which allows us to retire the notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to ensure
that the noteholders are not penalized by the early redemption. Proceeds from the notes were utilized to retire commercial paper issuances
outstanding as of February 2008.
In February 2009, we deregistered the securities remaining unsold under our then existing shelf registration statement that was filed with the
SEC in February 2008 for the issuance of debt securities. In February 2009, Sysco filed with the SEC an automatically effective well-known seasoned
issuer shelf registration statement for the issuance of an indeterminate amount of debt securities that may be issued from time to time.
In March 2009, Sysco issued 5.375% senior notes totaling $250,000,000 due March 17, 2019 (the 2019 notes) and 6.625% senior notes
totaling $250,000,000 due March 17, 2039 (the 2039 notes) under our February 2009 shelf registration. The 2019 and 2039 notes, which were
priced at 99.321% and 98.061% of par, respectively, are unsecured, are not subject to any sinking fund requirement and include a redemption
provision which allows Sysco to retire the notes at any time prior to maturity at the greater of par plus accrued interest or an amount designed to
ensure that the noteholders are not penalized by early redemption. Proceeds from the notes will be utilized over a period of time for general corporate
purposes, which may include acquisitions, refinancing of debt, working capital, share repurchases and capital expenditures.
Total Debt
Total debt as of June 27, 2009 was $2,476,649,000, of which approximately 99% was at fixed rates with a weighted average of 5.6% and the
remainder was at floating rates with a weighted average of 1.3%. Certain loan agreements contain typical debt covenants to protect noteholders,
including provisions to maintain our long-term debt to total capital ratio below a specified level. We were in compliance with all debt covenants as of
June 27, 2009.
Other
As part of normal business activities, we issue letters of credit through major banking institutions as required by certain vendor and insurance
agreements. As of June 27, 2009 and June 28, 2008, letters of credit outstanding were $74,679,000 and $35,785,000, respectively.
Other Considerations
Multi-Employer Pension Plans
As discussed in Note 19, Commitments and Contingencies, to the Consolidated Financial Statements in Item 8, we contribute to several multi-
employer defined benefit pension plans based on obligations arising under collective bargaining agreements covering union-represented employees.
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