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SYSCO CORPORATION-Form10-K70
PARTII
ITEM8Financial Statements and Supplementary Data
The following table provides a summary of the changes in accumulated other comprehensive (loss) income for the years presented:
(In thousands)
Pension and Other
Postretirement Benefi t
Plans, netoftax
Foreign Currency
Translation
Interest Rate
Swap, net of tax Total
Balance as of June27,2009 $ (346,107) $ 79,562 $ (11,441) $ (277,986)
Foreign currency translation adjustment - 49,973 - 49,973
Amortization of cash fl ow hedge - - 428 428
Amortization of prior service cost 2,707 - - 2,707
Amortization of actuarial loss (gain), net 24,664 - - 24,664
Amortization of transition obligation 93 - - 93
Actuarial (loss) gain, net, arising in current year (280,130) - - (280,130)
Balance as of July3,2010 (598,773) 129,535 (11,013) (480,251)
Foreign currency translation adjustment - 122,217 - 122,217
Amortization of cash fl ow hedge - - 428 428
Amortization of prior service cost 2,553 - - 2,553
Amortization of actuarial loss (gain), net 49,013 - - 49,013
Amortization of transition obligation 93 - - 93
Prior service cost arising in current year (5,692) - - (5,692)
Actuarial (loss) gain, net, arising in current year 51,681 - - 51,681
Balance as of July2,2011 (501,125) 251,752 (10,585) (259,958)
Foreign currency translation adjustment - (81,003) - (81,003)
Amortization of cash fl ow hedges - - 426 426
Settlement of cash fl ow hedge - - 445 445
Amortization of prior service cost 3,093 - - 3,093
Amortization of actuarial loss (gain), net 36,860 - - 36,860
Amortization of transition obligation 93 - - 93
Prior service cost arising in current year (5,363) - - (5,363)
Actuarial (loss) gain, net, arising in current year (357,459) - - (357,459)
BALANCE AS OF JUNE30,2012 $ (823,901) $ 170,749 $ (9,714) $ (662,866)
NOTE17 Share-Based Compensation
Sysco provides compensation benefi ts 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 plans.
Stock Incentive Plans
In November2009, Sysco’s 2007 Stock Incentive Plan was amended and provides for the issuance of up to 55,000,000shares of Sysco common stock
for share-based awards to offi cers and other employees of the company. Of the 55,000,000 authorizedshares, the full 55,000,000shares may be issued
as options or stock appreciation rights and up to 10,000,000shares may be issued as restricted stock, restricted stock units or other types of stock-based
awards. To date, Sysco has issued options, restricted stock and restricted stock units under this plan. Vesting requirements for awards under this plan will
vary by individual grant and may include either time-based vesting or time-based vesting subject to acceleration based on performance criteria for fi scal
periods of at least one year. The contractual life of all options granted under this plan will be no greater than seven years. As of June30,2012, there were
17,224,939 remainingshares authorized and available for grant in total under the amended 2007 Stock Incentive Plan, of which the full 17,224,939shares
may be issued as options or stock appreciation rights, or as a combination of up to 7,189,123shares that may be issued as restricted stock, restricted
stock units or other types of stock-based awards with the remainder available for issuance as options or stock appreciation rights.
Sysco has also granted employee options under several previous employee stock option plans for which previously granted options remain outstanding
as of June30,2012. No new options will be issued under any of the prior plans, as future grants to employees will be made through the amended 2007
Stock Incentive Plan or subsequently adopted plans. Vesting requirements for awards under these plans vary by individual grant and include either time-
based vesting or time-based vesting subject to acceleration based on performance criteria. The contractual life of all options granted under these plans
through July3,2004 is 10years; options granted after July3,2004 have a contractual life of seven years.
In November2009, Sysco’s 2009 Non-Employee Directors Stock Plan was adopted and provides for the issuance of up to 750,000shares of Sysco
common stock for share-based awards to non-employee directors. The authorizedshares may be granted as restricted stock, restricted stock units,
electedshares or additionalshares. In addition, options and unvested commonshares also remained outstanding as of June30,2012 under previous
non-employee director stock plans. No further grants will be made under these previous plans, as all future grants to non-employee directors will be
made through the 2009 Non-Employee Directors Stock Plan or subsequently adopted plans. Vesting requirements for awards under these plans vary