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PARTII
ITEM8Financial Statements and Supplementary Data
NOTE9 Self-Insured Liabilities
Sysco maintains a self-insurance program covering portions of workers’ compensation, general and vehicle liability and property insurance costs. The amounts
in excess of the self-insured levels are fully insured by third party insurers. The company also maintains a fully self-insured group medical program. A summary of
the activity in self-insured liabilities appears below:
(Inthousands)
2013 2012 2011
Balance at beginning of period $ 129,749 $ 129,671 $ 128,997
Charged to costs and expenses 352,374 318,828 325,540
Payments (334,525) (318,750) (324,866)
BALANCE AT END OF PERIOD $ 147,598 $ 129,749 $ 129,671
NOTE10 Debt and Other Financing Arrangements
Sysco’s debt consists of the following:
(Inthousands)
June29,2013 June30,2012
Multicurrency revolving credit facility borrowings, interest averaging 1.0%, as of June29,2013 $ 41,632 $ -
Commercial paper, interest averaging 0.1%, as of June29,2013 95,500 -
Senior notes, interest at 4.2%, maturing in scal 2013 - 249,964
Senior notes, interest at 4.6%, maturing in scal 2014 202,190 206,673
Senior notes, interest at 0.55%, maturing in scal 2015 298,669 297,983
Senior notes, interest at 5.25%, maturing in scal 2018 498,414 498,069
Senior notes, interest at 5.375%, maturing in scal 2019 249,031 248,862
Senior notes, interest at 2.6%, maturing in scal 2022 444,844 444,271
Debentures, interest at 7.16%, maturing in scal 2027 50,000 50,000
Debentures, interest at 6.5%, maturing in scal 2029 224,641 224,617
Senior notes, interest at 5.375%, maturing in scal 2036 499,669 499,654
Senior notes, interest at 6.625%, maturing in scal 2039 245,845 245,685
Capital leases and other debt, interest averaging 7.4% and maturing at various dates to scal 2029 as of
June29,2013 and 5.9% and maturing at various dates to scal 2026 as of June30,2012 38,484 52,560
Total debt 2,888,919 3,018,338
Less current maturities of long-term debt (207,301) (254,650)
Less notes payable (41,632) -
NET LONG-TERM DEBT $ 2,639,986 $ 2,763,688
The principal payments required to be made during the next ve scal years on debt outstanding as of June29,2013 are shown below:
(Inthousands)
Amount
2014 $ 207,301
2015 303,847
2016 3,286
2017 2,494
2018 500,179
Short-term Borrowings
As of June29,2013 and June30,2012, Sysco had uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up
to $95.0million. There were no borrowings outstanding under these lines of credit as of June29,2013 or June30,2012, respectively.
In September2012, the company’s Irish subsidiary, Pallas Foods, entered into a €75.0million (Euro) multicurrency revolving credit facility, which will be
utilized for capital needs for the company’s European subsidiaries. This facility provides for unsecured borrowings and expires September25,2013, but
is subject to extension. Outstanding borrowings under this facility were €32.0million (Euro) as of June29,2013, located within Notes payable on the
consolidated balance sheet.
As of June30,2012, the company’s Irish subsidiary, Pallas Foods Limited, had a €10.0million (Euro) committed facility for unsecured borrowings for
working capital. There were no borrowings outstanding under this facility as of June30,2012. During scal 2013, this facility was replaced with the facility
described above.