Sysco 2010 Annual Report Download - page 71
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Please find page 71 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.4. ALLOWANCE FOR DOUBTFUL ACCOUNTS
A summary of the activity in the allowance for doubtful accounts appears below:
2010 2009 2008
(In thousands)
Balance at beginning of period ............................................ $ 36,078 $ 31,730 $ 31,841
Charged to costs and expenses ........................................... 34,931 74,638 32,184
Allowance accounts resulting from acquisitions and other adjustments ................ (139) 1,587 72
Customer accounts written off, net of recoveries ............................... (34,297) (71,877) (32,367)
Balance at end of period................................................. $ 36,573 $ 36,078 $ 31,730
5. PLANT AND EQUIPMENT
A summary of plant and equipment, including the related accumulated depreciation, appears below:
July 3, 2010 June 27, 2009
Estimated Useful
Lives
(In thousands)
Plant and equipment, at cost:
Land........................................................ $ 322,626 $ 307,328
Buildings and improvements ....................................... 2,982,524 2,818,300 10-30 years
Fleet and equipment ............................................ 2,153,531 2,072,116 3-10 years
Computer hardware and software . . . .................................. 701,305 569,669 3-6 years
6,159,986 5,767,413
Accumulated depreciation .......................................... (2,956,163) (2,788,213)
Net plant and equipment ........................................... $ 3,203,823 $ 2,979,200
The capitalized direct costs related to our Business Transformation Project are included within “computer hardware and software” in the table
above.
Depreciation expense, including capital leases, for the past three years was $361.7 million in 2010, $361.1 million in 2009 and $352.6 million in
2008.
6. GOODWILL AND OTHER INTANGIBLES
The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows:
Broadline SYGMA Other Total
(In thousands)
Carrying amount as of June 28, 2008 . ............................... $ 764,360 $ 32,609 $ 616,255 1,413,224
Goodwill acquired during year ...................................... 109,406 — 22,107 131,513
Currency translation/Other ........................................ (33,954) — 12 (33,942)
Carrying amount as of June 27, 2009 . ............................... 839,812 32,609 638,374 1,510,795
Goodwill acquired during year ...................................... 16,808 — 8,371 25,179
Currency translation/Other ........................................ 15,651 — (1,810) 13,841
Carrying amount as of July 3, 2010 . . . ............................... $ 872,271 $ 32,609 $ 644,935 $ 1,549,815
Amortized intangible assets acquired during fiscal 2010 were customer relationships of $5.0 million with a weighted-average amortization
period of eight years. The following table presents details of the company’s amortized intangible assets:
Gross Carrying
Amount
Accumulated
Amortization Net
Gross Carrying
Amount
Accumulated
Amortization Net
July 3, 2010 June 27, 2009
(In thousands)
Amortized intangible assets:
Customer relationships ................... $ 169,913 $ 77,394 $ 92,519 $ 162,652 $ 56,192 $ 106,460
Non-compete agreements ................. 2,320 1,306 1,014 3,733 1,981 1,752
Trademarks............................ 1,038 136 902 1,547 471 1,076
Total amortized intangible assets .............. $ 173,271 $ 78,836 $ 94,435 $ 167,932 $ 58,644 $ 109,288
Intangible assets that have been fully amortized have been removed in the schedule above in the period full amortization is reached. Indefinite-
lived intangible assets consisted of trademarks of $12.0 million and $11.8 million as of July 3, 2010 and June 27, 2009, respectively.
Amortization expense for the past three years was $20.9 million in 2010, $15.7 million in 2009 and $13.9 million in 2008.The estimated future
amortization expense for the next five fiscal years on intangible assets outstanding as of July 3, 2010 is shown below:
Amount
(In thousands)
2011 . . ............................................................................... $ 20,512
2012 . . ............................................................................... 19,811
2013 . . ............................................................................... 17,913
2014 . . ............................................................................... 16,560
2015 . . ............................................................................... 12,024
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