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SYSCO CORPORATION-Form10-K 61
PARTII
ITEM8Financial Statements and Supplementary Data
NOTE11 Leases
Sysco has obligations under capital and operating leases for certain distribution facilities, vehicles and computers. Total rental expense under operating
leases was $84.4million, $83.0million, and $79.3million in  scal 2013,2012and 2011, respectively. Contingent rentals, subleases and assets and
obligations under capital leases are not signi cant.
Aggregate minimum lease payments by  scal year under existing non-capitalized long-term leases are as follows:
(Inthousands)
Amount
2014 $ 41,371
2015 34,427
2016 24,720
2017 18,041
2018 11,085
Thereafter 32,749
NOTE12 Other Long-Term Liabilities
The following table presents details of the company’s other long-term liabilities:
(Inthousands)
June29,2013 June30,2012
Quali ed pension plan $ 136,808 $ 456,969
Supplemental executive retirement plan 409,024 450,326
Other 270,815 242,439
TOTAL $ 816,647 $ 1,149,734
NOTE13 Company-Sponsored Employee Benefi t Plans
Sysco has company-sponsored de ned bene t and de ned contribution retirement plans for its employees. Also, the company provides certain health
care bene ts to eligible retirees and their dependents.
Defi ned Contribution Plan
In December2012, the company amended its de ned contribution 401(k) Plan to be a Safe Harbor plan, a plan that treats all employees’ bene ts equally
within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose
unions adopted the Safe Harbor Plan provisions. Effective January1,2013, the new Safe Harbor plan provides that the Company will make a non-elective
contribution each pay period equal to 3% of a participant’s compensation. Additionally, the Company will make matching contributions of 50% of a participant’s
pre-tax contribution on the  rst 5% of the participant’s compensation. Certain employees are also eligible for a transition contribution, and the Company
may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan
provides that under certain circumstances the company may make matching contributions of up to 50% of the  rst 6% of a participant’s compensation.
Prior to the adoption of the Safe Harbor Plan in January2013, the company’s de ned contribution 401(k) plan provided that under certain circumstances
the company may make matching contributions of up to 50% of the  rst 6% of a participant’s compensation.
Sysco’s expense related to its de ned contribution 401(k) plan was $65.3million in  scal 2013, $17.2million in  scal 2012, and $19.8million in  scal 2011.
Defi ned Benefi t Plans
Sysco maintains a quali ed pension plan (Retirement Plan) that pays bene ts to employees at retirement, using formulas based on a participant’s
years of service and compensation. At the end of  scal 2012, Sysco approved a plan to freeze future bene t accruals under the Retirement Plan as of
December31,2012 for all UnitedStates-based salaried and non-union hourly employees. Effective January1,2013, these employees were eligible for
additional contributions under the company’s de ned contribution 401(k) plan.
In addition to receiving bene ts upon retirement under the company’s Retirement Plan, key management personnel who are participants in the Management
Incentive Plan will receive bene ts under a Supplemental Executive Retirement Plan (SERP). This plan is a nonquali ed, unfunded supplementary retirement
plan. In November2012, Sysco approved a plan to restructure its executive nonquali ed retirement program including the SERP. Future bene t accruals
have been frozen under this plan as of June29,2013 for all participants.
Also, the company provides certain health care bene ts to eligible retirees and their dependents.