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SYSCO CORPORATION-Form10-K 57
PARTII
ITEM8Financial Statements and Supplementary Data
NOTE6 Plant and Equipment
A summary of plant and equipment, including the related accumulated depreciation, appears below:
(Inthousands)
June29,2013 June30,2012 Estimated
Useful Lives
Plant and equipment, at cost:
Land $ 435,447 $ 352,812
Buildings and improvements 3,632,568 3,510,627 10-30 years
Fleet and equipment 2,633,228 2,449,018 3-10 years
Computer hardware and software 1,054,754 1,028,594 3-7 years
7,755,997 7,341,051
Accumulated depreciation (3,777,926) (3,457,301)
NET PLANT AND EQUIPMENT $ 3,978,071 $ 3,883,750
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 $417.7million and $469.4million, net of accumulated amortization, as of June29,2013 and
June30,2012, respectively. The majority of this internal use software related to the Business Transformation Project was placed into service and began
amortization in Augustof  scal 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.
NOTE7 Goodwill and Other Intangibles
The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows:
(Inthousands)
Broadline SYGMA Other Total
Carrying amount as of July2,2011 $ 1,201,265 $ 32,609 $ 399,415 $ 1,633,289
Goodwill acquired during year 48,911 - 13,677 62,588
Currency translation/other (30,064) - (202) (30,266)
Carrying amount as of June30,2012 1,220,112 32,609 412,890 1,665,611
Goodwill acquired during year 203,393 - 24,005 227,398
Currency translation/other (8,663) - (111) (8,774)
CARRYING AMOUNT AS OF JUNE29,2013 $ 1,414,842 $ 32,609 $ 436,784 $ 1,884,235
Amortized intangible assets acquired during  scal 2013 were $124.1million with a weighted-average amortization period of eight years. By intangible asset
category, the amortized intangible assets acquired during  scal 2013 were customer relationships of $85.7million with a weighted-average amortization period
of nine years, non-compete agreements of $21.0million with a weighted-average amortization period of  ve years, amortized trademarks of $7.8million
with a weighted-average amortization period of eight years and other intangibles of $9.6million with a weighted-average amortization period of  ve years.
The following table presents details of the company’s amortized intangible assets:
(Inthousands)
June29,2013 June30,2012
Gross Carrying
Amount Accumulated
Amortization Net Gross Carrying
Amount Accumulated
Amortization Net
Customer relationships $ 274,410 $ (125,250) $ 149,160 $ 200,801 $ (110,080) $ 90,721
Non-compete agreements 29,460 (4,655) 24,805 8,453 (2,024) 6,429
Trademarks 11,618 (1,580) 10,038 3,759 (518) 3,241
Other 9,556 (159) 9,397 - - -
TOTAL AMORTIZED
INTANGIBLE ASSETS $ 325,044 $ (131,644) $ 193,400 $ 213,013 $ (112,622) $ 100,391
Intangible assets that have been fully amortized have been removed in the schedule above in the period full amortization is reached.
The following table presents details of the company’s inde nite-lived intangible assets:
(Inthousands)
June29,2013 June30,2012
Trademarks $ 11,353 $ 12,214
Licenses 966 966
TOTAL INDEFINITE-LIVED INTANGIBLE ASSETS $ 12,319 $ 13,180