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SYSCO CORPORATION-Form10-K16
PARTII
ITEM6Selected Financial Data
ITEM6 Selected Financial Data
(Inthousands except for per share data)
Fiscal Year
2013 2012 2011 2010
(53 Weeks) 2009
Sales $ 44,411,233 $ 42,380,939 $ 39,323,489 $ 37,243,495 $ 36,853,330
Operating income 1,658,478 1,890,632 1,931,502 1,975,868 1,872,211
Earnings before income taxes 1,547,455 1,784,002 1,827,454 1,849,589 1,770,834
Income taxes 555,028 662,417 675,424 669,606 714,886
NET EARNINGS $ 992,427 $ 1,121,585 $ 1,152,030 $ 1,179,983 $ 1,055,948
Net earnings:
BASIC EARNINGS PER SHARE $ 1.68 $ 1.91 $ 1.96 $ 1.99 $ 1.77
DILUTED EARNINGS PER SHARE 1.67 1.90 1.96 1.99 1.77
Dividends declared per share $ 1.11 $ 1.07 $ 1.03 $ 0.99 $ 0.94
Total assets $ 12,663,947 $ 12,137,207 $ 11,427,190 $ 10,336,436 $ 10,160,321
Capital expenditures 511,862 784,501 636,442 594,604 464,561
Current maturities of long-term debt $ 207,301 $ 254,650 $ 207,031 $ 7,970 $ 9,163
Long-term debt 2,639,986 2,763,688 2,279,517 2,472,662 2,467,486
Total long-term debt 2,847,287 3,018,338 2,486,548 2,480,632 2,476,649
Shareholders’ equity 5,191,810 4,685,040 4,705,242 3,827,526 3,449,702
TOTAL CAPITALIZATION $ 8,039,097 $ 7,703,378 $ 7,191,790 $ 6,308,158 $ 5,926,351
Ratio of long-term debt to capitalization 35.4% 39.2% 34.6% 39.3% 41.8%
ITEM7 Management’s Discussion and Analysis
ofFinancial Condition and Results of Operations
Our discussion below of our results includes certain non-GAAP  nancial measures that we believe provide important perspective with respect to underlying
business trends. Any non-GAAP  nancial measure will be denoted as an adjusted measure and our  scal 2013 comparisons to  scal 2012 exclude the
impact from Business Transformation Project costs, multiemployer pension plan charges,severance charges, executive retirement plans restructuring, a
one-time acquisition related charge and facility closure charges. Collectively, these are referred to as Excluded Charges. Our  scal 2012 comparisons to
scal 2011 excludethe impact from Business Transformation Project costs, multiemployer pension plan charges,severance charges, corporate-owned life
insurance (COLI) policies and certain tax bene ts. More information on the rationale for the use of these measures and reconciliations to GAAP numbers
can be found under “Non-GAAP Reconciliations.”
Overview
Sysco distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
Our operations are primarily 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 specialty imported products and a company that distributes to international customers.
We consider our primary market to be the foodservice market in the UnitedStates and Canada and estimate that we serve about 18% of this approximately
$235billion annual market. According to industry sources, the foodservice, or food-away-from-home, market represents approximately 48% of the total
dollars spent on food purchases made at the consumer level in the UnitedStates.
Industry sources estimate the total foodservice market in the UnitedStates experienced a real sales increase of approximately 1.3% in calendar year 2012
and a decline of 0.1% in calendar year 2011. Real sales changes do not include the impact of in ation or de ation.
General economic conditions and consumer con dence can affect the frequency of purchases and amounts spent by consumers for food-away-from-home
and, in turn, can impact our customers and our sales. We believe the current general economic conditions, including pressure on consumer disposable
income, have contributed to a decline in the foodservice market. Historically, we have grown at a faster rate than the overall industry and believe we have
continued to grow our market share in this fragmented industry.