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SYSCO CORPORATION-Form10-K 41
PARTII
ITEM7AQuantitative and Qualitative Disclosures AboutMarket Risk
The following tables present our interest rate position as of June29,2013. All amounts are stated in U.S. dollar equivalents.
(Inthousands)
Interest Rate Position as of June29,2013
Principal Amount by Expected Maturity
Average Interest Rate
2014 2015 2016 2017 2018 Thereafter Total Fair Value
U.S. $ Denominated:
Fixed Rate Debt $ 3,251 $ 301,632 $ 1,856 $ 1,149 $ 498,867 $ 1,719,270 $ 2,526,025 $ 2,838,162
Average Interest Rate 4.4% 0.8% 4.4% 4.2% 5.4% 5.2% 4.7%
Floating Rate Debt(1) $ 297,690 $ - $ - $ - $ - $ - $ 297,690 $ 301,364
Average Interest Rate 1.5% - - - - - 1.5%
Canadian $
Denominated:
Fixed Rate Debt $ 1,396 $ 1,520 $ 1,430 $ 1,345 $ 1,312 $ 15,410 $ 22,413 $ 25,183
Average Interest Rate 8.0% 7.7% 8.6% 9.1% 9.7% 9.7% 9.4%
Euro € Denominated:
Fixed Rate Debt $ 464 $ 695 $ - $ - $ - $ - $ 1,159 $ 1,302
Average Interest Rate 3.8% 3.8% - - - - 3.8%
Floating Rate Debt $ 41,632 $ - $ - $ - $ - $ - $ 41,632 $ 41,632
Average Interest Rate 1.0% - - - - - 1.0%
(1) Includes fixed rate debt that has been converted to floating rate debt through an interest rate swap agreement.
(Inthousands)
Interest Rate Position as of June29,2013
Notional Amount by Expected Maturity
Average Interest Swap Rate
2014 2015 2016 2017 2018 Thereafter Total Fair Value
Interest Rate Swaps
Related To Debt:
Pay Variable/Receive Fixed $ 200,000 $ - $ - $ - $ - $ - $ 200,000 $ 2,988
Average Variable Rate Paid:
Rate A Plus 2.1% - - - - - 2.1%
Fixed Rate Received 4.6% - - - - - 4.6%
Rate A– three-month LIBOR
Fiscal 2012
As of June30,2012, we had no commercial paper outstanding. Total debt as of June30,2012 was $3.0billion, of which approximately 84% was at  xed
rates of interest, including the impact of our interest rate swap agreements.
In May2012, we entered into an agreement with a notional amount of $200.0million to lock in a component of the interest rate on our then forecasted
debt offering. We designated this derivative as a cash  ow hedge of the variability in the cash out ows of interest payments on a portion of the June2012
forecasted debt issuance due to changes in the benchmark interest rate. In June2012, in conjunction with the issuance of the $450.0million senior notes
maturing in  scal 2022, we settled the treasury lock, locking in the effective yields on the related debt.
As of June30,2012, the  scal 2013 swap was recognized as an asset within the consolidated balance sheet at fair value within prepaid expenses and other
current assets of $2.5million. The  xed interest rate on the hedged debt is 4.2% and the  oating interest rate on the swap is three-month LIBOR which
resets quarterly. As of June30,2012, the  scal 2014 swap was recognized as an asset within the consolidated balance sheet at fair value within other assets
of $6.2million. The  xed interest rate on the hedged debt is 4.6% and the  oating interest rate on the swap is three-month LIBOR which resets quarterly.