Sysco 2013 Annual Report Download

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TM
2013 ANNUAL REPORT
Food isn’t the only thing
that comes off the back of
a Sysco truck.
We deliver
ingredients for
success.

Table of contents

  • Page 1
    TM 2013 ANNUAL REPORT Food isn't the only thing that comes off the back of a Sysco truck. We deliver ingredients for success.

  • Page 2
    ...-12 2012-11 Sales Operating income Earnings before income taxes Net earnings Diluted earnings per share Dividends declared per share Shareholders' equity per share Capital expenditures Return on invested capital Diluted average shares outstanding Number of shares repurchased Number of employees...

  • Page 3
    ... billion in annualized sales in the United States, Canada, the Republic of Ireland, Northern Ireland and the Bahamas. We are also rolling out a new brand strategy in New York City aimed at growing our business in this important market. Sysco's vision is to be our customers' most valued and trusted...

  • Page 4
    ... be our customers' most valued and trusted business partner. And, Sysco's five-point strategy provides key ingredients which focus on a balanced blend of Partnerships, Productivity, Products, Expansion and People. Fiscal year 2013 at Sysco produced numerous successes. Our more than 48,000 associates...

  • Page 5
    ... & Chief Executive Officer In one of our busiest years to date, we completed 14 acquisitions - in the U.S., Canada, Republic of Ireland, Northern Ireland and in the Bahamas. They included Broadline, seafood, produce and other specialty companies representing more than $1 billion in annualized sales...

  • Page 6
    ... Senior Vice President, Finance R. Chris Kreidler Executive Vice President and Chief Financial Officer Russell T. Libby Senior Vice President, General Counsel and Corporate Secretary Paul T. Moskowitz Senior Vice President, Human Resources Scott A. Sonnemaker Senior Vice President, Sales Charles...

  • Page 7
    Financials

  • Page 8
    ... ratio 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 Price/earnings ratio at year end - diluted Market price per...

  • Page 9
    ...778,288 38.25% 1-Year Growth Rate 2013 5% 5-Year Compound Growth Rates 2009-2013 3% 10-Year Compound Growth Rates 2004-2013 5% 20-Year Compound Growth Rates 1994-2013 8% (12) (2) 2...10 10 15 9 $ $ $ $ $ 11 9 9 8 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ SYSCO CORPORATION - Form 10-K 7

  • Page 10
    ... of December 29, 2012 (based on the closing sales price on the New York Stock Exchange Composite Tape on December 28, 2012, as reported by The Wall Street Journal (Southwest Edition)). As of August 14, 2013, the registrant had issued and outstanding an aggregate of 588,347,435 shares of its common...

  • Page 11
    ...Risk ...40 Financial Statements and Supplementary Data...43 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ...85 Controls and Procedures...85 Other Information...85 PART III ITEM 10 ITEM 11 ITEM 12 ITEM 13 ITEM 14 86 Directors, Executive Officers and Corporate...

  • Page 12
    ... 2013, June 30, 2012 for fiscal 2012 and, July 2, 2011 for fiscal 2011. Sysco Corporation is organized under the laws of Delaware. The address and telephone number of our executive offices are 1390 Enclave Parkway, Houston, Texas 77077-2099, (281) 584-1390. This annual report on Form 10-K, as well...

  • Page 13
    ... Fresh produce Paper and disposables Seafood Beverage products Janitorial products Equipment and smallwares Medical supplies (1) (1) Sales are less than 1% of total. Our distribution centers, which we refer to as operating companies, distribute nationally-branded merchandise, as well as products...

  • Page 14
    ...on shelf-life, supplier order fulfillment lead times and customer demand. We also make purchases of additional volumes of certain products based on supply or pricing opportunities. We take advantage of suppliers' cash discounts where appropriate and otherwise generally receive payment terms from our...

  • Page 15
    ... related services on a timely and dependable basis and competitive prices. An additional competitive factor for our larger chain restaurant customers is the ability to provide a national distribution network. We consider our primary market to be the foodservice market in the United States and Canada...

  • Page 16
    ... of our sales at prices that are based on the cost of products we sell plus a percentage margin. As a result, our profit levels may be negatively impacted during periods of product cost deflation, even though our gross profit percentage may remain relatively constant. SYSCO CORPORATION - Form 10...

  • Page 17
    ...limiting price increases, or may require increased discounting. Such competition may result in margin erosion and/or make it difficult for us to attract and retain customers. Although our sales historically have grown faster than the market, in recent years we have experienced slowing revenue growth...

  • Page 18
    .... If our sales associates are not able to effectively gain acceptance of the new product assortment from our customers, or we and our suppliers are not able to absorb the significant administrative and process changes required, then we may not be able to successfully execute the category management...

  • Page 19
    ... and public confidence in the safety of the products we distribute is critical to our business, particularly to selling Sysco Brand products. The Sysco brand name, trademarks and logos and our reputation are powerful sales and marketing tools, and we devote significant resources to promoting...

  • Page 20
    ... the costs and difficulties of managing operations outside of our core business, which may require additional skills and competencies, as well as difficulties in identifying and gaining access to suppliers or customers in new markets. If we fail to comply with requirements imposed by applicable law...

  • Page 21
    ...our customer service, decrease the volume of our business and result in increased costs and lower profits. Furthermore, process changes will 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...

  • Page 22
    ... aspects of our business operations. We also use mobile devices, social networking and other online activities to connect with our employees, suppliers, business partners and our customers. Such uses give rise to cybersecurity risks, including security breach, espionage, system disruption, theft and...

  • Page 23
    ... New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Utah Virginia Washington Wisconsin Bahamas Alberta, Canada British Columbia, Canada Manitoba, Canada New Brunswick, Canada Newfoundland, Canada Nova Scotia, Canada Number...

  • Page 24
    ... expiring at various dates from fiscal 2014 to fiscal 2032, exclusive of renewal options. 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, Texas. We are currently...

  • Page 25
    ... high and low sales prices per share for our common stock as reported on the New York Stock Exchange Composite Tape and the cash dividends declared for the periods indicated. Common Stock Prices High Fiscal 2012: First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2013: First Quarter...

  • Page 26
    ... the S&P 500 Food/Staple Retail Index for Sysco's 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 2008, and that all dividends were reinvested. Performance...

  • Page 27
    ... located throughout the United States, Bahamas, Canada, Ireland and Northern Ireland and include broadline companies (which include our custom-cut meat operations), SYGMA (our chain restaurant distribution subsidiary), specialty produce companies, hotel supply operations, a company that distributes...

  • Page 28
    ... the long-term success of our customers and in turn, growth in our earnings. We acquired 14 companies during fiscal 2013, which represents annualized sales in excess of $1 billion. We expect these acquisitions will contribute to our sales growth, enhance our international market presence and product...

  • Page 29
    ... costs per case to improve our earnings performance trends in fiscal 2014 as compared to fiscal 2013. Strategy We are focused on optimizing our core broadline business in the United States, Canada and Ireland, while continuing to explore appropriate opportunities to profitably grow our market share...

  • Page 30
    ... compensation and benefit plans. Efforts from our cost transformation initiatives in fiscal 2013 spanned many areas of operations. We completed the implementation of maintenance management tools in our United States Broadline (U.S. Broadline) companies. A customer relationship management tool...

  • Page 31
    ...2012. Sales for fiscal 2013 increased as a result of product cost inflation and the resulting increase in selling prices, sales from acquisitions that occurred within the last 12 months and case volume growth. Our sales growth in fiscal 2013 was greater with our large regional and national customers...

  • Page 32
    ... include the costs of facilities, product handling, delivery, selling and general and administrative activities. Fuel surcharges are reflected within sales and gross profit; fuel costs are reflected within operating expenses. Fiscal 2013 vs. Fiscal 2012 The following table sets forth the change in...

  • Page 33
    ... pay-related expenses from our sales and information technology areas, partially offset by increased costs from delivery and warehouse pay-related expenses, increased retirement-related expenses and fuel increases. We expect to continue to reduce our Broadline companies cost per case in fiscal 2014...

  • Page 34
    ... activity-based pay which is driven by case volumes. Since these drivers were variable in nature, increased gross profit dollars and cases volumes increased sales and delivery compensation. Also contributing to the increase in pay-related expenses was an increase in severance incurred in fiscal 2012...

  • Page 35
    ...where applicable, each period presented is adjusted to remove costs of the Business Transformation Project, MEPP, severance, executive retirement plan restructuring, a one-time acquisition related charge, facility closure charges, COLI gains and recognized tax benefits. 24 SYSCO CORPORATION - Form...

  • Page 36
    ...these measures for fiscal 2013 and fiscal 2012: (In thousands, except for share and per share data) Operating expenses (GAAP) Impact of BTP costs Impact of MEPP charge Impact of severance charge Impact of restructuring executive retirement plans Impact of one-time acquisition-related charge Impact...

  • Page 37
    ... as those disclosed by Sysco within the Financial Statements and Supplementary Data within Part II Item 8 of this Form 10-K. Intersegment sales represent specialty produce and imported specialty products distributed by the Broadline and SYGMA operating companies. Management evaluates the performance...

  • Page 38
    ... of the company's United States, Canadian, Caribbean and European Broadline segments. Broadline operating companies distribute a full line of food products and a wide variety of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and...

  • Page 39
    ... activity-based pay which is driven by case volumes. Since these drivers are variable in nature, increased gross profit dollars and case volumes will increase sales and delivery compensation. Fuel costs were $26.5 million higher in fiscal 2012 than the prior year. We recorded provisions related...

  • Page 40
    .... We believe SYGMA's sales growth prospects are better in fiscal 2014 as compared to fiscal 2013. Sales were 7.4% greater in fiscal 2012 than in fiscal 2011. The increase in sales was primarily due to product cost inflation and the resulting increase in selling prices. Sales to new customers also...

  • Page 41
    ... operations is generally allocated to: • working capital requirements; • investments in facilities, systems, fleet, other equipment and technology; • return of capital to shareholders, including cash dividends and share repurchases; • acquisitions compatible with our overall growth strategy...

  • Page 42
    ... provisions and payments. These items are more fully described below. Changes in working capital, specifically accounts receivable, inventory and accounts payable, contributed $144.3 million to the increase in cash flow from operations in fiscal 2012 as compared to fiscal 2011. Both periods were...

  • Page 43
    ... to management and investors about the amount of cash generated by the business after the purchases of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash including dividend payments, share repurchases and acquisitions. We...

  • Page 44
    ..., based on the trades made through that date. Our share repurchase strategy is to purchase enough shares to keep our average shares outstanding relatively constant over time. Due to a high level of stock option exercises in fiscal 2013, more shares were repurchased to meet this strategy. The number...

  • Page 45
    ... period of time for general corporate purposes, which may include acquisitions, refinancing of debt, working capital, share repurchases and capital expenditures. In February 2013, we repaid the 4.2% senior notes totaling $250.0 million at maturity utilizing a combination of cash flow from operations...

  • Page 46
    ... plans strive to improve their funding levels. In addition, pension-related legislation in the United States requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. We believe that any unforeseen requirements to pay...

  • Page 47
    ... payouts of the pension plan. The discount rate assumption is reviewed annually and revised as deemed appropriate. The discount rate for determining fiscal 2013 net pension costs for the Retirement Plan, which was determined as of the June 30, 2012 measurement date, decreased 113 basis points...

  • Page 48
    ... assumed rate of return for fiscal 2014 would decrease (increase) Sysco's net company-sponsored pension costs for fiscal 2014 by approximately $24.9 million. Pension accounting standards require the recognition of the funded status of our defined benefit plans in the statement of financial position...

  • Page 49
    ... completed by Sysco in the past, future cash flow estimates of the reporting units, which are dependent on internal forecasts and projected growth rates, and weighted average cost of capital, along with working capital and capital expenditure requirements. When possible, we use observable market...

  • Page 50
    PART II ITEM 7 Management's Discussion and Analysis of Financial Condition and Results of Operations The compensation cost related to these share-based awards is recognized over the requisite service period. The requisite service period is generally the period during which an employee is required ...

  • Page 51
    ... future compensation levels and the expected rate of return on plan assets. The amount of shares repurchased in a given period is subject to a number of factors, including available cash and our general working capital needs at the time. Meeting our dividend target objectives depends on our level of...

  • Page 52
    ... fiscal 2014 swap was recognized as an asset within the consolidated balance sheet at fair value within other assets of $6.2 million. The fixed interest rate on the hedged debt is 4.6% and the floating interest rate on the swap is three-month LIBOR which resets quarterly. SYSCO CORPORATION - Form...

  • Page 53
    ... the price we pay for product purchases and we may not be able to pass these costs fully to our customers. Third, increased fuel costs impact the costs we incur to deliver product to our customers. During fiscal 2013, 2012 and 2011, fuel costs related to outbound deliveries represented approximately...

  • Page 54
    ...rates on high quality bonds in the public markets. To the extent the financial markets experience declines, our anticipated future contributions and funded status will be affected for future years. A 10% unfavorable change in the value of the investments held by our company-sponsored Retirement Plan...

  • Page 55
    ... Statements and Supplementary Data 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...

  • Page 56
    ...), the consolidated balance sheets of the Company as of June 29, 2013 and June 30, 2012, and the related consolidated results of operations, statements of comprehensive income, shareholders' equity, and cash flows for each of the three years in the period ended June 29, 2013 of Sysco Corporation and...

  • Page 57
    ... balance sheets of Sysco Corporation (a Delaware Corporation) and subsidiaries (the ''Company") as of June 29, 2013 and June 30, 2012, and the related consolidated results of operations, statements of comprehensive income, shareholders' equity and cash flows for each of the three years in the period...

  • Page 58
    PART II ITEM 8 Financial Statements and Supplementary Data Consolidated Balance Sheets (In thousands except for share data) June 29, 2013 June 30, 2012 ASSETS Current assets Cash and cash equivalents Accounts and notes receivable, less allowances of $47,345 and $42,919 Inventories Deferred ...

  • Page 59
    PART II ITEM 8 Financial Statements and Supplementary Data Consolidated Results of Operations (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 before income taxes Income ...

  • Page 60
    ... of pension and other postretirement benefit plans amounts to net earnings, net of tax Pension funded status adjustment, net of tax Dividends declared Treasury stock purchases Share-based compensation awards BALANCE AS OF JUNE 29, 2013 765,174,900 See Notes to Consolidated Financial Statements (In...

  • Page 61
    ... long-term liabilities Excess 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 Maturities...

  • Page 62
    ... of food and related products primarily to the foodservice or food-away-from-home industry. These services are performed for approximately 425,000 customers from 193 distribution facilities located throughout the United States, Bahamas, Canada, Ireland and Northern Ireland. Sysco's fiscal year ends...

  • Page 63
    ... consolidated balance sheets were $159.3 million and $160.5 million at June 29, 2013 and June 30, 2012, respectively. Treasury Stock The company records treasury stock purchases at cost. Shares removed from treasury are valued at cost using the average cost method. 52 SYSCO CORPORATION - Form 10...

  • Page 64
    ... the expected stock price volatility. The fair value of restricted stock and restricted stock unit awards are based on the company's stock price on the date of grant. Measured compensation cost is recognized ratably over the vesting period of the related share-based compensation award. Cash flows...

  • Page 65
    ...affect the overall effective tax rate. Acquisitions Acquisitions of businesses are accounted for using the purchase method of accounting, and the financial statements include the results of the acquired operations from the respective dates of acquisition. The purchase price of the acquired entities...

  • Page 66
    ... sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels...

  • Page 67
    ... tables below. • Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents and restricted cash as Level 1 measurements in the tables below. • The interest rate swap agreements, discussed further in...

  • Page 68
    ...of this internal use software related to the Business Transformation Project was placed into service and began amortization in August of fiscal 2013. Depreciation expense, including capital leases, for the past three years was $473.5 million in 2013, $384.9 million in 2012 and $374.0 million in 2011...

  • Page 69
    ... to changes in the benchmark interest rate. Hedge ineffectiveness is recorded directly in earnings within interest expense and was immaterial for fiscal 2013, fiscal 2012 and fiscal 2011. The interest rate swaps do not contain credit-risk-related contingent features. 58 SYSCO CORPORATION - Form 10...

  • Page 70
    ... Foods Limited, had a â,¬10.0 million (Euro) committed facility for unsecured borrowings for working capital. There were no borrowings outstanding under this facility as of June 30, 2012. During fiscal 2013, this facility was replaced with the facility described above. SYSCO CORPORATION - Form...

  • Page 71
    ... of time for general corporate purposes, which may include acquisitions, refinancing of debt, working capital, share repurchases and capital expenditures. In February 2013, Sysco repaid the 4.2% senior notes totaling $250.0 million at maturity utilizing a combination of cash flow from operations and...

  • Page 72
    ... plan (Retirement Plan) that pays benefits to employees at retirement, using formulas based on a participant's years of service and compensation. At the end of fiscal 2012, Sysco approved a plan to freeze future benefit accruals under the Retirement Plan as of December 31, 2012 for all United States...

  • Page 73
    ... these changes on the date of the approved plan was $486.6 million. In order to meet a portion of its obligations under the SERP, Sysco maintains life insurance policies on the lives of the participants with carrying values of $95.0 million as of June 29, 2013 and $97.6 million as of June 30, 2012...

  • Page 74
    ... value of plan assets at end of year (1) Information under Pension Benefits as of June 29, 2013 and June 30, 2012 includes both the Retirement Plan and the SERP. Components of Net Benefit Costs and Other Comprehensive Income The components of net company-sponsored pension costs for each fiscal...

  • Page 75
    ...minimum funding requirements in fiscal 2013. The $140.0 million contribution to the Retirement Plan in fiscal 2012 exceeded the minimum required contribution for the calendar 2011 plan year to meet ERISA minimum funding requirements. There are no required contributions to the Retirement Plan to meet...

  • Page 76
    ... 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 2014 net company-sponsored benefit costs for the Retirement Plan is 5.32%. The discount rate to be used...

  • Page 77
    ...The real estate funds and private equity funds are included as Level 3 measurements. Derivatives: Valuation method varies by type of derivative security. • Credit default and interest rate swaps: Valued using evaluated bid prices based on a compilation of observable market information. Inputs used...

  • Page 78
    ... securities Corporate bonds Mortgage-backed securities Municipal bonds Sovereign debt Other (1) Derivatives, net (3) High yield fixed income (2) Alternative investments: Real estate (2) Private equity (2) Total investments at fair value Other (4) FAIR VALUE OF PLAN ASSETS AT END OF YEAR Level 2 88...

  • Page 79
    ... and/or out of Level 3 Balance, June 30, 2012 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, JUNE 29, 2013 $ $ $ $ 68 SYSCO CORPORATION - Form 10-K

  • Page 80
    ...to several multiemployer defined benefit pension plans in the United States and Canada based on obligations arising under collective bargaining agreements covering union-represented employees. Sysco does not directly manage these multiemployer plans, which are generally managed by boards of trustees...

  • Page 81
    ... and Vicinity New York State Teamsters Conference Pension and Retirement Fund Truck Drivers and Helpers Local Union No. 355 Retirement Pension Fund Minneapolis Food Distributing Industry Pension Plan $ 2013 20,561 $ 2,256 1,399 1,624 2,976 2012 19,829 $ 2,227 1,395 1,490 4,556 2011 19,490...

  • Page 82
    ..., vision, mental health and other benefits to active employees and retirees as determined by the trustees of each plan. Sysco contributed to these plans $30.6 million in fiscal 2013, $25.5 million in fiscal 2012 and $23.9 million in fiscal 2011. There have been no significant changes that affect the...

  • Page 83
    ... obligation Prior service cost arising in current year Actuarial gain (loss), net, arising in current year Balance as of July 2, 2011 Foreign currency translation adjustment Amortization of cash flow hedges Settlement of cash flow hedge Amortization of prior service cost Amortization of actuarial...

  • Page 84
    ... life of seven years. As of June 29, 2013, there were 483,096 remaining shares authorized and available for grant in total under the 2009 Non-Employee Directors Stock Plan. Stock Options Sysco's option awards are subject to graded vesting over a service period. Sysco recognizes compensation cost...

  • Page 85
    ... of the award's stated vesting period or as deferred units which convert into shares of Sysco common stock upon a date selected by the non-employee director that is subsequent to the award's stated vesting date. The fair value of the restricted awards is based on the company's stock price as of the...

  • Page 86
    ...between the stock price at date of issuance and the employee purchase price. All Share-Based Payment Arrangements The total share-based compensation cost that has been recognized in results of operations was $70.1 million, $70.3 million and $59.2 million for fiscal 2013, 2012 and 2011, respectively...

  • Page 87
    ... 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 surrender values Other 76 SYSCO CORPORATION - Form 10-K

  • Page 88
    ... a tax benefit of $14.0 million related to changes in estimates for the prior year domestic tax provision. Second, the company recorded a tax benefit of $8.8 million related to disqualifying dispositions of Sysco stock pursuant to share-based compensation arrangements. The effective tax rate was...

  • Page 89
    .... Down, Northern Ireland; Greenville, Ohio and Houston, Texas. The fiscal 2013 acquisitions were immaterial, individually and in the aggregate, to the consolidated financial statements. Certain acquisitions involve contingent consideration typically payable over periods up to five years only in the...

  • Page 90
    ... international customers. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Intersegment sales represent specialty produce and imported specialty products distributed by the Broadline and SYGMA operating companies. Management...

  • Page 91
    ... 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 supplies TOTAL Information concerning geographic areas is as follows: $ $ 2013...

  • Page 92
    PART II ITEM 8 Financial Statements and Supplementary Data The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (the majority of Sysco's U.S. Broadline ...

  • Page 93
    PART II ITEM 8 Financial Statements and Supplementary Data (In thousands) Sales Cost of sales Gross p rofit Operating expenses Operating income (loss) Interest expense (income) Other expense (income), net Earnings (losses) before income taxes Income tax (benefit) provision Equity in earnings of ...

  • Page 94
    PART II ITEM 8 Financial Statements and Supplementary Data (In thousands) Sysco $ (413,535) (222,483) (58,168) 859,780 165,594 305,513 471,107 Condensed Consolidating Cash Flows Year Ended June 30, 2012 Other NonGuarantor U.S. Broadline Subsidiaries Subsidiaries $ 1,674,817 (367,909) (2,038) (1,...

  • Page 95
    ... Sales Cost of sales Gross rofit p Operating expenses Operating income Interest expense Other (income), net Earnings before income taxes Income taxes NET EARNINGS Per share: BASIC NET EARNINGS DILUTED NET EARNINGS Dividends declared Market price - high/low PERCENTAGE CHANGE - 2013 VS. 2012: Fiscal...

  • Page 96
    ..., 2013, our chief executive officer and chief financial officer concluded that, as of such date, Sysco's disclosure controls and procedures were effective at the reasonable assurance level. Management's report on internal control over financial reporting is included in the financial statement pages...

  • Page 97
    ...Services The information required by this item will be included in our proxy statement for the 2013 Annual Meeting of Stockholders under the following caption, and is incorporated herein by reference thereto: "Fees Paid to Independent Registered Public Accounting Firm." 86 SYSCO CORPORATION - Form...

  • Page 98
    ... Item 8. Financial Statements and Supplementary Data. Exhibits. 3. 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 Form 10-K. SYSCO CORPORATION - Form 10-K 87

  • Page 99
    ...Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized, on this 26th day of August, 2013. 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...

  • Page 100
    ... corporate offices listed above, or by calling 281.584.2615. This information, which is included in this Annual Report, also may be found on our website at www.sysco.com in the Investors section. Mr. Neil A. Russell II Vice President, Investor Relations 281.584.1308 Design: Savage Brands, Houston...

  • Page 101
    TM 1390 Enclave Parkway Houston, Texas 77077-2099 281.584.1390 www.sysco.com View this online annual report at: www.sysco.com/OnlineAnnual2013 Printed on FSC®-certified, 100% post-consumer recycled paper, and paper made from environmentally responsible Eucalyptus pulp. The use of 100% post-...