Sysco 2010 Annual Report Download - page 69
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Please find page 69 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.Business Combinations
In December 2007, the FASB issued SFAS No. 141(R), “Business Combinations”, which was subsequently codified as ASC 805, “Business
Combinations.” This standard 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 standard 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. 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”. This standard
amended the previously issued business combinations guidance 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. Sysco adopted the provisions of these standards on a prospective basis for business combinations
beginning in fiscal 2010.
Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities
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”, which was subsequently codified within ASC 260, “Earnings Per Share.” This standard 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. This standard was 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 to the provisions of this standard. Early application of this standard was not permitted. The adoption of this standard did not have a
material impact on the company’s consolidated financial statements.
Measuring Liabilities at Fair Value
In August 2009, the FASB issued Accounting Standards Update 2009-05, “Measuring Liabilities at Fair Value”. This update provides additional
guidance, including illustrative examples, clarifying the measurement of liabilities at fair value. This update is effective for the first reporting period
beginning after its issuance. The company adopted the provisions of this update in the second quarter of fiscal 2010.The adoption of this update did
not have a material impact on the company’s consolidated financial statements.
Improving Disclosures about Fair Value Measurements
In January 2010, the FASB issued Accounting Standards Update 2010-06, “Improving Disclosures about Fair Value Measurements.” This
update requires some new disclosures and clarifies some existing disclosure requirements about fair value measurements codified within ASC 820,
“Fair Value Measurements and Disclosures.” The majority of the provisions of this update, including those applicable to Sysco, were effective for
interim and annual reporting periods beginning after December 15, 2009. Early application of the provisions of this update was permitted. The
company adopted the applicable provisions of this update in the third quarter of fiscal 2010. The adoption of this update did not have a material
impact on the company’s consolidated financial statement disclosures.
Subsequent Events
In February 2010, the FASB issued Accounting Standard Update 2010-09, “Amendments to Certain Recognition and Disclosure Requirements.”
This update amends ASC 855, “Subsequent Events” to remove the requirement for SEC filers to disclose the date through which subsequent events
have been evaluated. In addition, the update clarifies the reissuance disclosure provision related to subsequent events. The update is effective
immediately for financial statements that are issued or revised.The company adopted the provisions of this update in the third quarter of fiscal 2010.
Because this update affects the disclosure and not the accounting treatment for subsequent events, the adoption of this provision did not have a
material impact on the company’s consolidated financial statements.
Employers’ Disclosures about Postretirement Benefit Plan Assets
In December 2008, the FASB issued FASB Staff Position No. FAS 132(R)-1, “Employers’ Disclosures about Postretirement Benefit Plan Assets”,
which was subsequently codified within ASC 715, “Compensation — Retirement Benefits”. This standard requires additional disclosures about
assets held in an employer’s defined benefit pension or other postretirement plan and became effective for Sysco in fiscal 2010. Sysco has provided
the required disclosures for this standard in Note 12, “Employee Benefit Plans.”
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