Sysco 2010 Annual Report Download - page 84
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Please find page 84 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.Summary of Nonvested Awards
The following summary presents information regarding outstanding nonvested awards as of July 3, 2010 and changes during the fiscal year
then ended with regard to these awards under all stock incentive plans. Award types represented include: restricted stock units granted to
employees, restricted stock granted to employees and restricted stock granted to non-employee directors.
Shares
Weighted
Average Grant
Date Fair Value
Per Share
Nonvested as of June 27, 2009 ...................................................... 193,078 $ 26.67
Granted . . .................................................................... 710,610 27.26
Vested . . . .................................................................... (78,620) 27.79
Forfeited . .................................................................... (46,445) 24.27
Nonvested as of July 3, 2010 ....................................................... 778,623 $ 27.23
Employees’ Stock Purchase Plan
Sysco has an Employees’ Stock Purchase Plan that permits employees to invest in Sysco common stock by means of periodic payroll deductions
at 85% of the closing price on the last business day of each calendar quarter.The total number of shares which may be sold pursuant to the plan may
not exceed 74,000,000 shares, of which 3,557,596 remained available as of July 3, 2010.
During fiscal 2010, 1,827,386 shares of Sysco common stock were purchased by the participants as compared to 2,031,695 shares purchased in
fiscal 2009 and 1,769,421 shares purchased in fiscal 2008. In July 2010, 411,629 shares were purchased by participants.
The weighted average fair value of employee stock purchase rights issued pursuant to the Employees’ Stock Purchase Plan was $3.87, $3.85
and $4.81 per share during fiscal 2010, 2009 and 2008, respectively. The fair value of the stock purchase rights was calculated as the difference
between the stock price at date of issuance and the employee purchase price.
Management Incentive Compensation
Sysco’s Management Incentive Plan compensates key management personnel for specific performance achievements.With respect to bonuses
for fiscal 2008 and earlier years, the bonuses earned and expensed under this plan were paid in the following fiscal year in both cash and stock or
deferred for payment in future years at the election of each participant. The stock awards under this plan immediately vested upon issuance;
however, participants are restricted from selling, transferring, giving or otherwise conveying the shares for a period of two years from the date of
issuance of such shares.The fair value of the stock issued under the Management Incentive Plan was based on the stock price less a 12% discount for
post-vesting restrictions. The discount for post-vesting restrictions is estimated based on restricted stock studies and by calculating the cost ofa
hypothetical protective put option over the restriction period. In May 2008, the Management Incentive Plan was amended to remove the stock
component of the bonus structure from all future bonuses granted. Therefore, fiscal 2008 was the last year for the bonus to include a stock
component.
A total of 672,087 shares at a fair value of $28.22 and 588,143 shares at a fair value of $32.99, were issued pursuant to this plan in fiscal 2009
and 2008, respectively, for bonuses earned in the preceding fiscal years.
All Share-Based Payment Arrangements
The total share-based compensation cost that has been recognized in results of operations was $66.4 million, $56.0 million and $80.7 million
for fiscal 2010, 2009 and 2008, respectively, and is included within operating expenses in the consolidated results of operations. The total income
tax benefit recognized in results of operations for share-based compensation arrangements was $13.9 million, $9.9 million and $15.7 million for fiscal
2010, 2009 and 2008, respectively.
As of July 3, 2010, there was $66.2 million of total unrecognized compensation cost related to share-based compensation arrangements. That
cost is expected to be recognized over a weighted-average period of 2.76 years.
Cash received from option exercises and purchases of shares under the Employees’ Stock Purchase Plan was $94.8 million, $111.8 million and
$128.2 million during fiscal 2010, 2009 and 2008, respectively. The actual tax benefit realized for the tax deductions from option exercises totaled
$5.4 million, $7.4 million and $9.4 million during fiscal 2010, 2009 and 2008, respectively.
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