Sysco 2009 Annual Report Download - page 48

SFAS 158
In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans — an
amendment of FASB Statements No. 87, 88, 106, and 132(R)” (SFAS 158). SFAS 158 has two major provisions: the recognition and disclosure
provision and the measurement date provision. We previously adopted SFAS 158’s recognition and disclosure requirements as of June 30, 2007. The
measurement date provision requires an employer to measure a plan’s assets and obligations as of the end of the employer’s fiscal year. We elected
to early adopt the measurement date provision as of June 30, 2007 in order to adopt both provisions of this accounting standard at the same time.
As a result, beginning in fiscal 2008, the measurement date for all plans returned to correspond with fiscal year-end. We performed measurements
as of May 31, 2007 and June 30, 2007 of the plan assets and benefit obligations. We recorded a charge to beginning retained earnings on July 1,
2007 of $3,572,000, net of tax, for the impact of the difference in our company-sponsored pension expense between the two measurement dates.
We also recorded a benefit to beginning accumulated other comprehensive income (loss) on July 1, 2007 of $22,780,000, net of tax, for the impact
of the difference in the recognition provision between the two measurement dates.
New Accounting Standards
SFAS 141(R)
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations” (SFAS 141(R)), which establishes principles and requirements
for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed and any
noncontrolling interest in a business combination. This statement also establishes recognition and measurement principles for the goodwill
acquired in a business combination and disclosure requirements to enable financial statement users to evaluate the nature and financial effects of
the business combination. We will apply this statement primarily on a prospective basis for business combinations beginning in fiscal 2010. Earlier
application of the standard was prohibited.
FSP 157-2
In February 2008, the FASB issued FASB Staff Position 157-2, “Effective Date of FASB Statement No. 157” (FSP 157-2), which partially deferred
the effective date of SFAS No. 157 for one year for non-financial assets and liabilities that are recognized or disclosed at fair value in the financial
statements on a non-recurring basis. As a result of the deferral, SFAS 157 is effective in fiscal 2010 for non-recurring, non-financial assets and
liabilities that are recognized or disclosed at fair value. Our only non-recurring, non-financial asset fair value measurements are those used in our
annual test of recoverability of goodwill and indefinite-lived intangibles, in which we determine whether estimated fair values of our applicable
reporting units exceed their carrying values. We will apply the provisions of SFAS 157 in fiscal 2010 to this fair value estimation.
FSP EITF 03-06-1
In June 2008, the FASB issued FASB Staff Position No. EITF 03-06-1, “Determining Whether Instruments Granted in Share-Based Payment
Transactions Are Participating Securities” (FSP EITF 03-06-1). FSP EITF 03-06-1 addresses whether instruments granted in share-based payment
transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share
under the two-class method described in FASB Statement No. 128, “Earnings per Share.” This standard will be effective for Sysco beginning in fiscal
2010 and interim periods within that year. All prior-period earnings per share data presented in filings subsequent to adoption must be adjusted
retrospectively to conform with the provisions of this standard. Early application of FSP EITF 03-06-1 was not permitted.We are currently evaluating
the impact the adoption of FSP EITF 03-06-1 will have on our consolidated financial statements.
FSP FAS 132(R)-1
In December 2008, the FASB issued FASB Staff Position No. FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets”
(FSP FAS 132(R)-1). FSP FAS 132(R)-1 amends SFAS No. 132(R), “Employers’ Disclosures about Pensions and Other Postretirement Benefits,” to
require additional disclosures about assets held in an employer’s defined benefit pension or other postretirement plan.This standard will be effective
for Sysco in fiscal 2010, although early application of the standard is permitted. Upon initial application, the information required by FSP FAS 132(R)-1
is not required for earlier periods that are presented for comparative purposes.We will adopt this standard in fiscal 2010 and are currently evaluating
the impact the adoption of FSP FAS 132(R)-1 will have on our annual financial statement disclosures.
FSP FAS 141(R)-1
In April 2009, the FASB issued FASB Staff Position No. FAS 141(R)-1, “Accounting for Assets and Liabilities Assumed in a Business
Combination That Arise From Contingencies” (FSP FAS 141(R)-1). FSP FAS 141(R)-1 amends and clarifies SFAS No. 141(R), “Business Combinations,”
to address application issues raised by preparers, auditors, and members of the legal profession on initial recognition and measurement, subsequent
measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. We will apply this
standard on a prospective basis for business combinations beginning in fiscal 2010.
FSP FAS 107-1 and APB 28-1
In April 2009, the FASB issued FASB Staff Position No. FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments”
(FSP FAS 107-1 and APB 28-1). FSP FAS 107-1 and APB 28-1 amend FASB Statement No. 107, “Disclosures about Fair Value of Financial
28