Sysco 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 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.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

O V:
To be our customers’
most valued and trusted
business partner.
The 2011 Annual Report
• 56,353 lbs of wood
• 82,291 gallons of water
• 57 million BTUs of energy
• 17,086 lbs of emissions
• 4,996 lbs of solid waste

Table of contents

  • Page 1
    Our Vision: To be our customers' most valued and trusted business partner. The 2011 Annual Report

  • Page 2
    Our vision is to be our customers' most valued and trusted business partner. We are achieving that vision by building on the core strengths we have developed since our founding: quality products, unmatched service, strong relationships, outstanding operations and logistics, and sound financials. ...

  • Page 3
    ...accounting standards. Information regarding these changes is available in our Annual Report on Form 10-K for fiscal 2011, which is included in this Annual Report. Sales in billions of dollars Operating Income in billions of dollars Diluted Earnings Per Share in dollars Return on Invested Capital...

  • Page 4
    ... on improving productivity in all parts of our business and a strategic approach to investing for future growth, are the keys to Sysco's success in carrying out its mission of marketing and delivering great products to our customers with exceptional service. Our sales for fiscal 2011 were $39...

  • Page 5
    ... our business Reduce operating costs Execute fold-in and regional acquisitions Deliver a better value proposition Expand the Core:    International growth Sysco Ventures Adjacencies Enable Growth:   Enhance development of human capital Optimize financial capital structure "That...

  • Page 6
    ...future. Sysco's core business is to serve the food awayfrom-home segment. Our Broadline, SYGMA and specialty meat, produce and lodging industry companies provide a wide range of quality products and services to the market supported by a large and experienced sales force, premier customer service and...

  • Page 7
    ... our sales and marketing execution. In addition, we are revamping our online ordering system. This important part of the business transformation will give customers more product information, as well as enhancing their ability to create more efficient opportunities to do business with Sysco. As...

  • Page 8
    ... design, menu consultation, marketing support, employee training and more. Our success comes from a commitment to partner with our customers to understand and meet their needs. We take the same hands-on approach with the growers, ranchers and processors who supply Sysco brand products to make...

  • Page 9
    ... Meat Guest Supply SYGMA Asian IFG RDC Our range of more than 400,000 products extends from fresh produce and meats to prepared foods and beyond. Customers turn to us for serving and cookware items, restaurant equipment, and connections to aggregated services from marketing to insurance. SUPPLIES...

  • Page 10
    ... efficient kitchen processes to new menu items to employee benefits products. Our business review process not only highlights new menu ideas tailored to each customer, but often focuses on ways to tweak menus to improve the bottom line and still give diners a fair value. We know that we partner best...

  • Page 11
    9

  • Page 12
    ... Quality Sysco product quality starts from the ground up - literally. We work directly with farmers and ranchers to ensure that produce and meat products meet our demanding standards for quality, safety and responsibility. We also work continually to improve the quality of our Sysco brand foods. We...

  • Page 13
    11

  • Page 14
    Sysco Corporation // COR E STR ENGTHS / 2011 Annual Report Inside a Sysco Warehouse Our warehouses are models of efficiency. Warehouse layout, lighting, equipment, technology and processes are designed to help us receive, store and deliver products with minimum waste and maximum safety, accuracy ...

  • Page 15
    ... aggregating foodservice purchasing and distribution across multiple markets would create efficiencies to benefit both the company and its customers. From that beginning, operations and logistics efficiencies have become a core strength for Sysco. We continue to improve upon our processes in large...

  • Page 16
    ...and suppliers. And we believe we have many opportunities to continue to grow our business across all customer segments. As a result, our strong cash flow and commitment to prudent financial management give us the strength to continue to invest in our business and return value to our shareholders. We...

  • Page 17
    ...is Sysco Market, the new online ordering system we are developing. This system not only gives our customers better visual images of what they are ordering, but also provides more complete nutrition information, packaging choices, recipe options and other data earlier in the ordering decision process...

  • Page 18
    ... management strategies and policies in order to anticipate industry trends and respond capably to customers' requirements. The Council is composed of eight company presidents, representing some of Sysco's most effective operations, and meets twice yearly. William B. Day EXECUTIVE VICE PRESIDENT...

  • Page 19
    FINANCIALS

  • Page 20
    ... Working capital Other assets Plant and equipment (net) Total assets Long-term debt Shareholders' equity Other Data Dividends declared Capital expenditures Number of employees Shareholder Data Closing price of common share at year end (1) Price/earnings ratio at year end - diluted (1) Market price...

  • Page 21
    2005 2004 (53 weeks) 2003 2002 2001 5-Year 10-Year 20-Year 1-Year Compound Compound Compound Growth Growth Growth Growth Rate Rates Rates Rates 2011 2007-2011 2002-2011 1992-2011 $ 30,281,914 24,498,200 5,783,714 4,194,184 1,589,530 75,000 (10,906) 1,525,436 563,979 961,457 - $ 29,335,403...

  • Page 22
    ...UNAUDITED) DILUTED EARNINGS PER SHARE Sysco's diluted earnings per share were impacted by a charge from the withdrawal from a multi-employer pension plan and recognized tax benefits. Management believes that adjusting fiscal 2011's and fiscal 2010's diluted earnings per share to remove the impact...

  • Page 23
    ... as of January 1, 2011 (based on the closing sales price on the New York Stock Exchange Composite Tape on December 31, 2010, as reported by The Wall Street Journal (Southwest Edition)). As of August 17, 2011, the registrant had issued and outstanding an aggregate of 592,697,484 shares of its common...

  • Page 24
    ... about Market Risk ...Financial Statements and Supplementary Data ...Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ...Controls and Procedures ...Other Information ...PART III Directors, Executive Officers and Corporate Governance...Executive Compensation...

  • Page 25
    ... food products and a wide variety of non-food products to their customers. SYGMA operating companies distribute a full line of food products and a wide variety of non-food products to chain restaurant customer locations. Our other segments include our specialty produce and lodging industry products...

  • Page 26
    ... distribution, such as providing customers with product usage reports and other data, menu-planning advice, food safety training and assistance in inventory control, as well as access to various third party services designed to add value to our customers' businesses. No single customer accounted...

  • Page 27
    ..., legal, cash management, information technology, employee benefits, engineering, real estate and construction, risk management and insurance, sales and marketing, payroll, human resources, training and development, strategy, and tax compliance services. The corporate office also makes available...

  • Page 28
    ... their expiration dates unless a particular trademark is no longer in use. The company does not have any material patents or licenses. We are not engaged in material research and development activities relating to the development of new products or the improvement of existing products. Our sales do...

  • Page 29
    ...quarter of fiscal 2011, our pilot operating company implemented the project and our shared services center became active in its support role. ERP implementations are complex and time-consuming projects that involve substantial investments in system software and implementation activities over a multi...

  • Page 30
    ..., or public concern regarding the safety of our products, can result in negative publicity about the food service distribution industry and cause our sales and profitability to decrease dramatically. Competition in our Industry may Adversely Impact our Margins and our Ability to Retain Customers The...

  • Page 31
    ... impact our customer service, decrease the volume of our business and result in increased costs. Furthermore, process changes may be required as we continue to use our existing warehousing, delivery, and payroll systems to support operations as we implement the ERP system. While Sysco has invested...

  • Page 32
    ... benefit plan would require us to make payments to the plan for our proportionate share of the multi-employer plan's unfunded vested liabilities. Based on the information currently available from plan administrators, which has valuation dates ranging from January 31, 2009 to December 31, 2009, Sysco...

  • Page 33
    ... of July 2, 2011. Such industrial revenue bond financing arrangements mature at various dates through fiscal 2026. We own our approximately 625,000 square foot headquarters office complex in Houston, Texas. In addition, we own our approximately 669,000 square foot shared services complex in Cypress...

  • Page 34
    ...; Jersey City, New Jersey; Syracuse, New York; Philadelphia, Pennsylvania; Austin, Texas; and San Antonio, Texas. These operating companies, in the aggregate, accounted for approximately 9.3% of fiscal 2011 sales. As of July 2, 2011, our fleet of approximately 8,700 delivery vehicles consisted...

  • Page 35
    ... last five fiscal years. The graph assumes that the value of the investment in our Common Stock, the S&P 500 Index, and the S&P 500 Food/Staple Index was $100 on the last trading day of fiscal 2006, and that all dividends were reinvested. Performance data for Sysco, the S&P 500 Index and the S&P 500...

  • Page 36
    ... 2010 (53 Weeks) 2009 2008 (In thousands except for per share data) 2011 2007 Sales ...Operating income...Earnings before income taxes ...Income taxes...Net earnings ...Net earnings: Basic earnings per share ...Diluted earnings per share ...Dividends declared per share ...Total assets ...Capital...

  • Page 37
    ...are primarily located throughout the United States, Canada and Ireland and include broadline companies, custom-cut meat operations, specialty produce companies, hotel supply operations, SYGMA (our chain restaurant distribution subsidiary) and a company that distributes to international customers. We...

  • Page 38
    ... our operating companies and increase our headcount in our shared services center. Strategy We are focused on optimizing our core broadline business in the U.S. and Canada, while continuing to explore appropriate opportunities to profitably grow our market share and create shareholder value through...

  • Page 39
    ... drive results and grow our business is directly linked to having the best talent in the industry. We are committed to the continued enhancement of our talent management programs in terms of how we recruit, select, train and develop our associates throughout Sysco as well as succession planning. Our...

  • Page 40
    ... extra week in fiscal 2010, increased as a result of product cost inflation and the resulting increase in selling prices along with improving case volumes. Estimated product cost increases, an internal measure of inflation, were approximately 4.6% during fiscal 2011. Sales from acquisitions in the...

  • Page 41
    ... product categories in order to increase sales volumes. These initiatives are being phased in over time and resulted in short-term gross profit declines as a percentage of sales, but we believe will result in long-term gross profit dollar growth due to higher sales volumes and increased market share...

  • Page 42
    ... carrying value of COLI policies to their cash surrender values in both periods. Partially offsetting these operating expense declines were increases in pay-related expenses, net company-sponsored pension costs and approximately $99.8 million of expense associated with the additional week included...

  • Page 43
    ...ongoing basis. The cash surrender values of these policies are largely based on the values of underlying investments, which through fiscal 2011 included publicly traded securities. As a result, the cash surrender values of these policies fluctuated with changes in the market value of such securities...

  • Page 44
    ... accounting policies for the segments are the same as those disclosed by Sysco within the Financial Statements and Supplementary Data within Part II Item 8 of this Form 10-K. Intersegment sales generally represent specialty produce products distributed by the Broadline and SYGMA operating companies...

  • Page 45
    ...as the custom-cut meat operations. Broadline operating companies distribute a full line of food products and a wide variety of non-food products to customers. Broadline operations have significantly higher operating margins than the rest of Sysco's operations. In fiscal 2011, the Broadline operating...

  • Page 46
    ...to multi-employer pension plans of $41.5 million in fiscal 2011, $2.9 million in fiscal 2010 and $9.6 million in fiscal 2009. SYGMA Segment SYGMA operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations. SYGMA...

  • Page 47
    ...in selling prices also impacted fiscal 2010 sales growth. One chain restaurant customer (The Wendy's Company) accounted for approximately 31% of the SYGMA segment sales for the fiscal year ended July 2, 2011. SYGMA maintains multiple regional contracts with varied expiration dates with this customer...

  • Page 48
    ... in accounts payable balances in fiscal 2009 was primarily from inventory decreases resulting from the sales decline. Accounts payable balances are impacted by many factors, including changes in product mix, cash discount terms and changes in payment terms with vendors. Cash flow from operations was...

  • Page 49
    ...; Philadelphia, Pennsylvania and Houston, Texas; • the purchase of a facility for our future shared services operations in connection with our Business Transformation Project; and • the purchase of land for a fold-out facility in Long Island, New York. Fiscal 2009 capital expenditures included...

  • Page 50
    ..., Sysco International, ULC., 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 2011, 2010 and 2009, aggregate outstanding commercial paper...

  • Page 51
    ...the company's long-term debt to total capital ratio below a specified level. Sysco is currently in compliance will all debt covenants. Other As part of normal business activities, we issue letters of credit through major banking institutions as required by certain vendor and insurance agreements. As...

  • Page 52
    ... agreement, we merged active participants from this plan into Sysco's company-sponsored Retirement Plan and assumed $26.7 million in liabilities. The payment to the plan was made in the early part of the second quarter of fiscal 2009. BSCC Cooperative Structure Sysco's affiliate, Baugh Supply Chain...

  • Page 53
    ... plans(2) ...Multi-employer pension plans(3) ...Unrecognized tax benefits and interest(4) ...IRS deferred tax settlement(4) ...Unrecorded Contractual Obligations: Interest payments related to commercial paper and debt(5) . Retirement plan(6) ...Long-term non-capitalized leases ...Purchase...

  • Page 54
    doubtful accounts receivable, self-insurance programs, company-sponsored pension plans, income taxes, vendor consideration, goodwill and intangible assets and share-based compensation. Allowance for Doubtful Accounts We evaluate the collectability of accounts receivable and determine the appropriate...

  • Page 55
    ... deferred against inventory do not require long-term estimation. In the situations where the vendor consideration is not related directly to specific product purchases, we will recognize these as a reduction of cost of sales when the earnings process is complete, the related service is performed...

  • Page 56
    ...' Stock Purchase Plan, the Management Incentive Plan and various non-employee director plans. As of July 2, 2011, there was $61.3 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...

  • Page 57
    ... to be an employee or director. In these cases, for awards granted prior to July 2, 2005 (our adoption date for the fair value recognition provisions in current stock compensation accounting standards), we will recognize the compensation cost for such awards over the remaining service period and...

  • Page 58
    ... Rate Risk We do not utilize financial instruments for trading purposes. Our use of debt directly exposes us to interest rate risk. Floating rate debt, where the interest rate fluctuates periodically, exposes us to short-term changes in market interest rates. Fixed rate debt, where the interest rate...

  • Page 59
    ... through the payment date. A 10% unfavorable change in the fiscal 2011 year-end exchange rate and the resulting increase in the tax liability associated with these notes would not have a material impact on our results of operations. Fuel Price Risk Due to the nature of our distribution business, we...

  • Page 60
    ... the costs we incur to deliver product to our customers. During fiscal 2011, 2010 and 2009, fuel costs related to outbound deliveries represented approximately 0.6%, 0.6% and 0.8% of sales, respectively. Fuel costs, excluding any amounts recovered through fuel surcharges, incurred by Sysco increased...

  • Page 61
    ... Public Accounting Firm on Internal Control Over Financial Reporting. Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements ...Consolidated Balance Sheets ...Consolidated Results of Operations ...Changes in Consolidated Shareholders' Equity ...Consolidated Cash...

  • Page 62
    REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Sysco Corporation ("Sysco") is responsible for establishing and maintaining adequate internal control over financial reporting for the company. Sysco's internal control system is designed to provide reasonable ...

  • Page 63
    ... REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING The Board of Directors and Shareholders Sysco Corporation We have audited Sysco Corporation (a Delaware Corporation) and its subsidiaries' internal control over financial reporting as of July 2, 2011, based on...

  • Page 64
    ..., in accordance with the standards of the Public Company Accounting Oversight Board (United States), Sysco Corporation and its subsidiaries' internal control over financial reporting as of July 2, 2011, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of...

  • Page 65
    SYSCO CONSOLIDATED BALANCE SHEETS July 2, 2011 July 3, 2010 (In thousands except for share data) ASSETS Current assets Cash and cash equivalents...Short-term investments...Accounts and notes receivable, less allowances of $42,436 and $36,573 Inventories ...Prepaid expenses and other current assets ...

  • Page 66
    SYSCO CONSOLIDATED RESULTS OF OPERATIONS Year Ended July 3, 2010 July 2, 2011 (53 Weeks) June 27, 2009 (In thousands except for share and per share data) Sales ...Cost of sales...Gross profit ...Operating expenses ...Operating income ...Interest expense ...Other expense (income), net. . Earnings ...

  • Page 67
    ... declared ...Treasury stock purchases...Share-based compensation awards ...Balance as of July 3, 2010 ...Net earnings ...Foreign currency translation adjustment ...Amortization of cash flow hedge, net of tax ...Reclassification of pension and other postretirement benefit plans amounts to net...

  • Page 68
    ... tax benefits from share-based compensation arrangements ...Net cash provided by operating activities ...Cash flows from investing activities: Additions to plant and equipment ...Proceeds from sales of plant and equipment ...Acquisition of businesses, net of cash acquired ...Purchases of short-term...

  • Page 69
    ... at fair value. Accounts Receivable Accounts receivable consist primarily of trade receivables from customers and receivables from suppliers for marketing or incentive programs. Sysco determines the past due status of trade receivables based on contractual terms with each customer. Sysco evaluates...

  • Page 70
    ...of these agreements meet the definition of a derivative. However, the company elected to use the normal purchase and sale exemption available under derivatives accounting literature; therefore, these agreements are not recorded at fair value. Investments in Corporate-Owned Life Insurance Investments...

  • Page 71
    ... costs include costs associated with the selection of products and delivery to customers. Included in operating expenses are shipping and handling costs of approximately $2,222.1 million in fiscal 2011, $2,103.3 million in fiscal 2010, and $2,136.8 million in fiscal 2009. Insurance Program Sysco...

  • Page 72
    ... 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...

  • Page 73
    ...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." 3. NEW ACCOUNTING STANDARDS Amendments to Achieve Common Fair Value Measurement and...

  • Page 74
    ...11,045 583,491 $ - - $ The carrying values of accounts receivable and accounts payable approximated their respective fair values due to the short-term maturities of these instruments. The fair value of Sysco's total debt is estimated based on the quoted market prices for the same or similar issue...

  • Page 75
    The capitalized direct costs for the internal use software portion of the company's Business Transformation Project are included within "computer hardware and software" in the table above in the amount of $356.2 million and $181.5 million as of July 2, 2011 and July 3, 2010, respectively. ...

  • Page 76
    ...are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. A summary of the activity in self-insured liabilities appears below: 2011 2010 (In thousands) 2009 Balance at beginning of period . . Charged to costs and expenses . Payments ...Balance...

  • Page 77
    ...of its subsidiaries, Sysco International, ULC., have a revolving credit facility supporting the company's U.S. and Canadian commercial paper programs. The facility in the amount of $1,000.0 million expires on November 4, 2012, but is subject to extension. During fiscal 2011, 2010 and 2009, aggregate...

  • Page 78
    ... bargaining agreements and provides certain health care benefits to eligible retirees and their dependents. Sysco maintains a qualified pension plan (Retirement Plan) that pays benefits to employees at retirement, using formulas based on a participant's years of service and compensation. The company...

  • Page 79
    ... in discount rates used to calculate our projected benefit obligation and related pension expense, partially offset by reduced amortization of expense from actuarial gains from higher returns on assets of Sysco's Retirement Plan during fiscal 2010. Net company-sponsored pension costs in fiscal...

  • Page 80
    ...changes in plan assets and benefit obligations recognized in other comprehensive income (loss) related to company-sponsored pension plans for each fiscal year are as follows: 2011 2010 (53 Weeks) (In thousands) 2009 Amortization of prior service cost ...Amortization of net actuarial loss ...Pension...

  • Page 81
    ...of cash outflows approximates the estimated payouts of the company-sponsored pension plans. The discount rate assumption is reviewed annually and revised as deemed appropriate. The discount rate to be used for the calculation of fiscal 2012 net company-sponsored benefit costs for the Retirement Plan...

  • Page 82
    ...securities within the fund. The real estate fund is valued at the NAV of shares held by the Retirement Plan, which is based on the valuations of the underlying real estate investments held by the fund. Each real estate investment is valued on the basis of a discounted cash flow approach. Inputs used...

  • Page 83
    ... using pricing models that are based on observable market information. Exchange-traded futures and options are included as a Level 1 measurement in the table below; over-the-counter options are included as a Level 2 measurement. The following table presents the fair value of the Retirement Plan...

  • Page 84
    .../or out of Level 3 ...Balance, July 3, 2010 ...Actual return on plan assets: Relating to assets still held at the reporting date Relating to assets sold during the period ...Purchases and sales, net ...Transfers in and/or out of Level 3 ...Balance, July 2, 2011 ... ... $ 14,839 (1,545) (15) 3,786...

  • Page 85
    ... presented: Pension and Other Postretirement Benefit Plans, net of tax Foreign Currency Interest Rate Swap, Translation net of tax (In thousands) Total Balance as of June 28, 2008 ...Foreign currency translation adjustment ...Amortization of cash flow hedge ...Amortization of prior service cost...

  • Page 86
    15. SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees and non-employee directors under several share-based payment arrangements including various employee stock option plans, the Employees' Stock Purchase Plan, the Management Incentive Plan and various non-employee director ...

  • Page 87
    ...is based on the company's stock price as of the date of grant. The weighted average grant-date fair value of the shares granted during fiscal 2011, 2010 and 2009 was $28.87, $27.44 and $24.99, respectively. Under the 2009 Non-Employee Directors Stock Plan, non-employee directors may elect to receive...

  • Page 88
    ...85 per share during fiscal 2011, 2010 and 2009, 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...

  • Page 89
    ... Revenue Service Settlement Sysco's affiliate, Baugh Supply Chain Cooperative (BSCC), was a cooperative taxed under subchapter T of the United States Internal Revenue Code, the operation of which has resulted in a deferral of tax payments. The IRS, in connection with its audits of the company's 2003...

  • Page 90
    ...2011 2010 2009 United States statutory federal income tax rate ...State and local income taxes, net of any applicable federal income tax benefit ...Foreign income taxes ...Impact of uncertain tax benefits ...Impact of adjusting carrying value of corporate-owned life insurance policies to their cash...

  • Page 91
    ...ACQUISITIONS During fiscal 2011, in the aggregate, the company paid cash of $101.1 million for operations acquired during fiscal 2011 and for contingent consideration related to operations acquired in previous fiscal years. During fiscal 2011, Sysco acquired for cash broadline foodservice operations...

  • Page 92
    ...Sysco has committed to product purchases for resale in order to leverage the company's purchasing power. A majority of these agreements expire within one year; however, certain agreements have terms through fiscal 2013. These agreements commit the company to a minimum volume at various pricing terms...

  • Page 93
    ... the new classification of the custom-cut meat operations as part of the Broadline reportable segment. The accounting policies for the segments are the same as those disclosed by Sysco. Intersegment sales represent specialty produce products distributed by the Broadline and SYGMA operating companies...

  • Page 94
    ...2011 2010 (53 Weeks) (In thousands) 2009 Canned and dry products ...Fresh and frozen meats ...Frozen fruits, vegetables, bakery and other Dairy products ...Poultry ...Fresh produce ...Paper and disposables ...Seafood ...Beverage products ...Janitorial products ...Equipment and smallwares ...Medical...

  • Page 95
    ...Canada ...Other ...Total ...(1) (2) $ Represents sales to external customers from businesses operating in these countries. Long-lived assets represents net property, plant and equipment reported in the country in which they are held. 20. SUPPLEMENTAL GUARANTOR INFORMATION - PARENT GUARANTEE Sysco...

  • Page 96
    ...Condensed Consolidating Results of Operations Year Ended July 3, 2010 (53 Weeks) Other Sysco Non-Guarantor International Subsidiaries Eliminations (In thousands) Consolidated Totals Sales ...Cost of sales ...Gross profit ...Operating expenses ...Operating income (loss) ...Interest expense (income...

  • Page 97
    ... July 3, 2010 (53 Weeks) Other Sysco Non-Guarantor Consolidated Sysco International Subsidiaries Totals (In thousands) Net cash provided by (used for): Operating activities ...Investing activities ...Financing activities ...Effect of exchange rate on cash ...Intercompany activity ...Net (decrease...

  • Page 98
    ...) $ 1,152,030 Sysco Condensed Consolidating Results of Operations Year Ended July 3, 2010 (53 Weeks) U.S. Other Broadline Non-Guarantor Subsidiaries Subsidiaries Eliminations (In thousands) Consolidated Totals Sales ...Cost of sales ...Gross profit ...Operating expenses ...Operating income (loss...

  • Page 99
    ... July 3, 2010 (53 Weeks) U.S. Other Broadline Non-Guarantor Consolidated Sysco Subsidiaries Subsidiaries Totals (In thousands) Net cash provided by (used for): Operating activities ...Investing activities ...Financing activities ...Effect of exchange rate on cash ...Intercompany activity ...Net...

  • Page 100
    ...Diluted net earnings ...Dividends declared...Market price - high/low ...Percentage change - 2011 vs. 2010: Sales ...Operating income ...Net earnings...Basic net earnings per share ...Diluted net earnings per share ... Financial results are impacted by accounting changes and the adoption of various...

  • Page 101
    ... affect, our internal control over financial reporting. Item 9B. Other Information None. PART III Item 10. Directors, Executive Officers and Corporate Governance The information required by this item will be included in our proxy statement for the 2011 Annual Meeting of Stockholders under...

  • Page 102
    ... financial statements or notes thereto within Item 8. Financial Statements and Supplementary Data. 3. Exhibits. The exhibits listed on the Exhibit Index immediately preceding such exhibits, which is hereby incorporated herein by reference, are filed or furnished as part of this Annual Report on...

  • Page 103
    ..., thereunto duly authorized, on this 30th day of August, 2011. SYSCO CORPORATION By /s/ WILLIAM J. DELANEY William J. DeLaney President and Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on...

  • Page 104
    ... sales volumes and its long-term growth objectives, increase market share, meet future cash requirements and remain profitable could be affected by competitive price pressures, availability of supplies, work stoppages, success or failure of consolidated buying plan initiatives, successful...

  • Page 105
    1390 enclave Parkway houston, Texas 77077-2099 281.584.1390 www.sysco.com Printed on 100% post-consumer recycled paper, and paper made from environmentally responsible Eucalyptus pulp. The use of 100% post-consumer recycled fiber in the printing of this report saved: • 56,353 lbs of wood • 82,...