Sysco 2009 Annual Report Download - page 73

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,
net of tax
Foreign Currency
Translation
Interest Rate Swap,
net of tax Total
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
Adoption of SFAS 158 recognition ................ (117,628,000) — — (117,628,000)
Balance as of June 30, 2007 . ................... (125,265,000) 133,500,000 (12,296,000) (4,061,000)
Adoption of SFAS 158 measurement date. . . ........ 22,780,000 — — 22,780,000
Foreign currency translation adjustment ............ — 30,514,000 — 30,514,000
Amortization of cash flow hedge ................. — — 427,000 427,000
Amortization of prior service cost . ................ 3,777,000 3,777,000
Amortization of net actuarial loss (gain), net . ........ 2,003,000 2,003,000
Amortization of transition obligation ............... 93,000 — — 93,000
Prior service credit arising in current year . . . ........ 18,510,000 18,510,000
Net actuarial (loss) gain, net arising in current year . .... (142,811,000) (142,811,000)
Balance as of June 28, 2008 . ................... (220,913,000) 164,014,000 (11,869,000) (68,768,000)
Foreign currency translation adjustment ............ — (84,452,000) — (84,452,000)
Amortization of cash flow hedge ................. — — 428,000 428,000
Amortization of prior service cost . ................ 2,418,000 2,418,000
Amortization of net actuarial loss (gain), net . ........ 10,824,000 10,824,000
Amortization of transition obligation ............... 93,000 — — 93,000
Pension liability assumption. . ................... (16,450,000) — — (16,450,000)
Prior service cost arising in current year ............ (354,000) (354,000)
Net actuarial (loss) gain, net arising in current year . .... (121,725,000) — — (121,725,000)
Balance as of June 27, 2009 . ................... $ (346,107,000) $ 79,562,000 $ (11,441,000) $ (277,986,000)
16. SHARE-BASED COMPENSATION
Sysco provides compensation benefits to employees and non-employee directors under several share-based payment arrangements including
various employee stock option plans, the Employees’ Stock Purchase Plan, the Management Incentive Plan and various non-employee director plans.
Stock Incentive Plans
Sysco’s 2007 Stock Incentive Plan was adopted in fiscal 2008 and provides for the issuance of up to 30,000,000 shares of Sysco common
stock for share-based awards to officers and other employees of the company and its subsidiaries at the fair market value (as defined in the plan) of
Sysco common stock at the date of grant. Of the 30,000,000 shares authorized under the 2007 Stock Incentive Plan, up to 25,000,000 shares may
be issued as options or stock appreciation rights and up to 5,000,000 shares may be issued as restricted stock, restricted stock units or other types
of stock-based awards.The plan also allows for the issuance of shares of restricted stock, restricted stock units or other types of stock-based awards
in excess of 5,000,000, provided that for each such share issued in excess of the 5,000,000 share limitation, the aggregate number of shares
available for issuance under the plan is reduced by four shares. To date, Sysco has issued options and restricted stock under this plan. Vesting
requirements for awards under this plan will vary by individual grant and may include either time-based vesting or time-based vesting subject to
acceleration based on performance criteria for fiscal periods of at least one year.The contractual life of all options granted under this plan will be no
greater than seven years. As of June 27, 2009, there were 15,908,961 remaining shares authorized and available for grant in total under the 2007
Stock Incentive Plan, 10,984,783 shares that may be issued as options or stock appreciation rights and, of the 5,000,000 shares authorized for
issuance as restricted stock, restricted stock units or other types of stock-based awards, 4,924,178 such shares remain available. If any restricted
stock, restricted stock units or other types of stock-based awards are issued in excess of the 5,000,000 limit, they will reduce the remaining shares
available by four shares for every share issued.
Sysco has also granted employee options under several previous employee stock option plans for which previously granted options remain
outstanding as of June 27, 2009. No new options will be issued under any of the prior plans, as future grants to employees will be made through the
2007 Stock Incentive Plan or subsequently adopted plans. Vesting requirements for awards under these plans vary by individual grant and include
either time-based vesting or time-based vesting subject to acceleration based on performance criteria. The contractual life of all options granted
under these plans through July 3, 2004 is 10 years; options granted after July 3, 2004 have a contractual life of seven years.
Sysco’s 2005 Non-Employee Directors Stock Plan was adopted in fiscal 2006 and provides for the issuance of up to 550,000 shares of Sysco
common stock for share-based awards to non-employee directors. Of the 550,000 shares authorized under the 2005 Non-Employee Directors
Stock Plan, up to 220,000 shares may be issued as options, up to 320,000 shares may be issued as stock grants or restricted stock units and up to
10,000 shares may be issued as dividend equivalents. In addition, options and unvested common shares also remained outstanding as of June 27,
2009 under previous non-employee director stock plans. No further grants will be made under these previous plans, as all future grants to non-
employee directors will be made through the 2005 Non-Employee Directors Stock Plan or subsequently adopted plans. Vesting requirements for
awards under these plans vary by individual grant and include either time-based vesting or vesting based on performance criteria.The contractual life
of all options granted under these plans through July 3, 2004 is 10 years; options granted after July 3, 2004 have a contractual life of seven years. As
of June 27, 2009, there were 236,794 remaining shares authorized and available for grant in total under the 2005 Non-Employee Directors Stock
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