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SYSCO CORPORATION-Form10-K 59
PARTII
ITEM8Financial Statements and Supplementary Data
NOTE9 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:
(Inthousands)
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
NOTE10 Debt and Other Financing Arrangements
Sysco’s debt consists of the following:
(Inthousands)
June29,2013 June30,2012
Multicurrency revolving credit facility borrowings, interest averaging 1.0%, as of June29,2013 $ 41,632 $ -
Commercial paper, interest averaging 0.1%, as of June29,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
June29,2013 and 5.9% and maturing at various dates to  scal 2026 as of June30,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 June29,2013 are shown below:
(Inthousands)
Amount
2014 $ 207,301
2015 303,847
2016 3,286
2017 2,494
2018 500,179
Short-term Borrowings
As of June29,2013 and June30,2012, Sysco had uncommitted bank lines of credit, which provided for unsecured borrowings for working capital of up
to $95.0million. There were no borrowings outstanding under these lines of credit as of June29,2013 or June30,2012, respectively.
In September2012, the company’s Irish subsidiary, Pallas Foods, entered into a €75.0million (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 September25,2013, but
is subject to extension. Outstanding borrowings under this facility were €32.0million (Euro) as of June29,2013, located within Notes payable on the
consolidated balance sheet.
As of June30,2012, the company’s Irish subsidiary, Pallas Foods Limited, had a €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  scal 2013, this facility was replaced with the facility
described above.