Sysco 2010 Annual Report Download - page 47
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Please find page 47 of the 2010 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Cash flow from operations for fiscal 2010 was negatively impacted by changes in deferred tax assets and liabilities of $121.9 million and a
decrease in accrued income taxes of $296.5 million.The main factor affecting both of these items, as well as cash taxes paid, was the IRS settlement
(discussed below in “Other Considerations, BSCC Cooperative Structure”), which resulted in the payment of taxes of $528.0 million in fiscal 2010 for
the settlement agreement as well as higher estimated tax payments for ongoing operations in fiscal 2010. Offsetting the negative impact described
above, the change in deferred tax assets and liabilities was impacted by the contribution of an additional $140.0 million to our company-sponsored
qualified pension plan in fiscal 2010 for contributions that would normally have been made in fiscal 2011. Cash flow from operations for fiscal 2009
was positively impacted by an increase in accrued income taxes of $325.5 million, partially offset by changes in deferred tax assets and liabilities of
$294.2 million. Cash flow from operations for fiscal 2008 was positively impacted by changes in deferred tax assets and liabilities of $643.5 million,
partially offset by a decrease in accrued income taxes of $509.8 million. Total cash taxes paid were $1,142.0 million, $735.8 million and
$530.2 million in fiscal 2010, 2009 and 2008, respectively.
Other long-term liabilities and prepaid pension cost, net, decreased $271.7 million during fiscal 2010, decreased $48.4 million during fiscal
2009 and increased $13.5 million during fiscal 2008.The decrease in fiscal 2010 is primarily attributable to three items. First, pension contributions
to our company-sponsored plans exceeded net company-sponsored pension costs. Second, our liability for deferred incentive compensation
decreased due to accelerated distributions taken by plan participants of all or a portion of their vested balances pursuant to certain transitional relief
under the provisions of Section 409A of the Internal Revenue Code and other regular distributions. Third, our liability for uncertain tax positions
decreased as a result of the settlement with the IRS, as well as a reclass to accrued income taxes for amounts expected to be paid in fiscal 2011. The
decrease in fiscal 2009 is primarily attributable to a decrease in our liability for uncertain tax benefits related to our settlement with the IRS. See
additional discussion of an IRS settlement at “Other Considerations, BSCC Cooperative Structure.” The decrease was partially offset by a
combination of the recording of net company-sponsored pension costs and incentive compensation deferrals. The increase for fiscal 2008 was
primarily attributable to a combination of the recording of net company-sponsored pension costs, incentive compensation deferrals and a net
increase to our liability for uncertain tax positions, partially offset by pension contributions to our company-sponsored plans. We recorded net
company-sponsored pension costs of $126.1 million, $88.7 million and $65.8 million during fiscal 2010, fiscal 2009 and fiscal 2008, respectively.
Our contributions to our company-sponsored defined benefit plans were $297.9 million, $95.8 million and $92.7 million during fiscal 2010, fiscal
2009 and fiscal 2008, respectively.We contributed $140.0 million to our company-sponsored qualified pension plan in fiscal 2010 for contributions
that would normally have been made in fiscal 2011. Additional contributions to our company-sponsored qualified pension plan are not currently
anticipated in fiscal 2011.
Investing Activities
Fiscal 2010 capital expenditures included:
• investments in technology including our Business Transformation Project;
• fleet replacements;
• replacement or significant expansion of facilities in Vancouver, British Columbia, Canada; Winnipeg, Manitoba, Canada; Billings, Montana;
Plainfield, New Jersey; Philadelphia, Pennsylvania and Houston, Texas; and
• the purchase of a facility for our future shared services operations in connection with our Business Transformation Project.
Fiscal 2009 capital expenditures included:
• construction of a fold-out facility in Longview, Texas;
• replacement or significant expansion of facilities in Victoria, British Columbia, Canada; Chicago, Illinois; Pittsburgh, Pennsylvania and
Houston, Texas;
• land purchases for future fold-out facilities; and
• investments in technology for our Business Transformation Project.
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, Canada and Houston, Texas;
• completion of the Southeast RDC in Alachua, Florida; and
• completion of work on the corporate headquarters expansion.
We expect total capital expenditures in fiscal 2011 to be in the range of $700.0 million to $750.0 million. Fiscal 2011 expenditures will include
facility, fleet and other equipment replacements and expansions; new facility construction, including fold-out facilities; and investments in
technology including our Business Transformation Project.
During fiscal 2010, in the aggregate, the company paid cash of $29.3 million for operations acquired during fiscal 2010 and for contingent
consideration related to operations acquired in previous fiscal years. During fiscal 2010, we acquired for cash a broadline foodservice operation in
Syracuse, New York, a produce distributor in Atlanta, Georgia and a seafood distributor in Edmonton, Alberta, Canada.
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