Sysco 2010 Annual Report Download - page 48
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Please find page 48 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.During fiscal 2009, in the aggregate the company paid cash of $218.1 million for operations acquired during fiscal 2009 and for contingent
consideration related to operations acquired in previous fiscal years. During fiscal 2009, we acquired for cash broadline foodservice operations in
Ireland, Los Angeles, California and Boston, Massachusetts, as well as a produce distributor in Toronto, Ontario, Canada.
During fiscal 2008, in the aggregate, the company paid cash of $55.3 million for operations acquired during fiscal 2008 and for contingent
consideration related to operations acquired in previous fiscal years. During fiscal 2008, we acquired for cash produce distributors in Jacksonville,
Florida, and Miami, Florida, a specialty meat company in Vancouver, British Columbia, Canada and a lodging industry supply company in Hong Kong.
Financing Activities
Equity
We traditionally have engaged in Board-approved share repurchase programs. The number of shares acquired and their cost during the past
three fiscal years were 6,000,000 shares for $179.2 million in fiscal 2010,16,951,200 shares for $438.8 million in fiscal 2009 and 16,769,900 shares
for $529.2 million in fiscal 2008. An additional 1,230,427 shares were repurchased at a cost of $37.1 million through August 18, 2010, resulting in a
remaining authorization by our Board of Directors to repurchase up to 2,156,173 shares, based on the trades made through that date. On August 27,
2010, the Board of Directors approved a new share repurchase program covering an additional 20,000,000 shares. Our current share repurchase
strategy is to purchase enough shares to keep our diluted average shares outstanding relatively constant. Based on forecasted share exercises
pursuant to our option plans, we expect to repurchase more shares in fiscal 2011 than in fiscal 2010.
Dividends paid were $579.8 million, or $0.98 per share, in fiscal 2010, $548.2 million, or $0.92 per share, in fiscal 2009 and $497.5 million, or
$0.82 per share, in fiscal 2008. In May 2010, we declared our regular quarterly dividend for the first quarter of fiscal 2011 of $0.25 per share, which
was paid in July 2010.
In November 2000, we filed with the SEC a shelf registration statement covering 30,000,000 shares of common stock to be offered from time
to time in connection with acquisitions. As of August 18, 2010, 29,477,835 shares remained available for issuance under this registration statement.
Short-term Borrowings
We have uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up to $88.0 million, of which none
was outstanding as of July 3, 2010 or August 18, 2010.
Our Irish subsidiary, Pallas Foods Limited, has a ยค10.0 million (Euro) committed facility for unsecured borrowings for working capital. There
were no borrowings outstanding under this facility as of July 3, 2010 or August 18, 2010.
Commercial Paper and Revolving Credit Facility
We have a Board-approved commercial paper program allowing us to issue short-term unsecured notes in an aggregate amount not to exceed
$1.3 billion.
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 $1.0 billion, expires on November 4, 2012, but is subject to extension.
During fiscal 2010, 2009 and 2008, aggregate outstanding commercial paper issuances and short-term bank borrowings ranged from
approximately zero to $1.8 million, zero to $165.0 million, zero to $1,113.2 million, respectively. There were no commercial paper issuances
outstanding as of July 3, 2010 or August 18, 2010.
Fixed Rate Debt
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 $1.0 billion in debt securities with the SEC.
In February 2008, we issued 4.20% senior notes totaling $250.0 million due February 12, 2013 (the 2013 notes) and 5.25% senior notes
totaling $500.0 million 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 note holders 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, Sysco deregistered the securities remaining unsold under its 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 $250.0 million due March 17, 2019 (the 2019 notes) and 6.625% senior notes
totaling $250.0 million due March 17, 2039 (the 2039 notes) under its 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
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