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SYSCO CORPORATION-Form10-K46
PARTII
ITEM 7AQuantitative and Qualitative Disclosures AboutMarket Risk
The following tables present our interest rate position as of June 28, 2014. All amounts are stated in United States (U.S.) dollar equivalents.
(Dollars in thousands)
Interest Rate Position as of June 28, 2014
Principal Amount by Expected Maturity
Average Interest Rate
2015 2016 2017 2018 2019 Thereafter Total Fair Value
U.S. $ Denominated:
Fixed Rate Debt $ 303,012 $ 2,603 $ 2,076 $ 1,540 $ 251,076 $ 1,473,230 $ 2,033,537 $ 2,293,942
Average Interest Rate 1.8 % 5.2 % 5.1 % 5.7 % 5.5 % 5.1 % 5.5 %
Floating Rate Debt (1) $ 129,999 $ - $ - $ 503,587 $ - $ - $ 633,586 $ 633,586
Average Interest Rate 0.2 % - - 3.7 % - - 2.9 %
Canadian $ Denominated:
Fixed Rate Debt $ 1,716 $ 1,723 $ 1,368 $ 1,351 $ 1,410 $ 13,862 $ 21,430 $ 24,174
Average Interest Rate 7.4 % 7.5 % 9.1 % 9.6 % 9.8 % 9.7 % 9.3 %
Euro € Denominated:
Fixed Rate Debt $ 49 $ 342 $ - $ - $ - $ - $ 391 $ 441
Average Interest Rate 3.8 % 3.8 % - - - - 3.8 %
Floating Rate Debt $ 70,975 $ - $ - $ - $ - $ - $ 70,975 $ 70,975
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.
(Dollars in thousands)
Interest Rate Position as of June 28, 2014
Notional Amount by Expected Maturity
Average Interest Swap Rate
2015 2016 2017 2018 2019 Thereafter Total Fair Value
Interest Rate Swaps
Related To Debt:
Pay Variable/Receive Fixed $ - $ - $ - $ 500,000 $ - $ - $ 500,000 $ 4,828
Average Variable Rate Paid:
Rate A Plus - - - 3.2 % - - 3.2 %
Fixed Rate Received - - - 5.3 % - - 5.3 %
Interest Rate Swaps
Related To Forecasted
Debt Issuance:
Pay Fixed/Receive Variable $ 2,000,000 $ - $ - $ - $ - $ - $ 2,000,000 $ (133,466)
Fixed Rate Paid Rate B - - - - - Rate B
Average Variable Rate Received Rate C - - - - - Rate C
Rate A – six-month LIBOR
Rate B – Fixed rate on $1.0 billion swap on 10-year forecasted debt expected to be issued in  scal 2015 is 3.381%. Fixed rate on $1.0 billion swap on
30-year forecasted debt expected to be issued in  scal 2015 is 3.896%.
Rate C – three-month LIBOR
Fiscal 2013
As of June 29, 2013, we had $95.5 million of commercial paper outstanding. Total debt as of June 29, 2013 was $2.9 billion, of which approximately 88%
was at  xed rates of interest, including the impact of our interest rate swap agreement.
In  scal 2010, we entered into an interest rate swap agreement that effectively converted $200 million of  xed rate debt maturing in  scal 2014 (the  scal
2014 swap) to  oating rate debt. This transaction was entered into with the goal of reducing overall borrowing cost and was designated as a fair value
hedge since the swap hedges against the changes in fair value of  xed rate debt resulting from changes in interest rates. As of June 29, 2013, the  scal
2014 swap was recognized as an asset within the consolidated balance sheet at fair value within prepaid expenses and other current assets of $3.0 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.