Sysco 2014 Annual Report Download - page 60

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SYSCO CORPORATION-Form10-K48
PARTII
ITEM 8Financial Statements and Supplementary Data
Our activities to mitigate fuel costs include reducing miles driven by our trucks through our routing optimization project, improving  eet utilization by adjusting
idling time and maximum speeds and using fuel surcharges. We routinely enter into forward purchase commitments for a portion of our projected monthly
diesel fuel requirements. As of June 28, 2014, we had forward diesel fuel commitments totaling approximately $187 million through June 2015. These
contracts will lock in the price of approximately 60% to 65% of our fuel purchase needs for the contracted periods at prices slightly lower than the current
market price for diesel. Our remaining fuel purchase needs will occur at market rates unless contracted for a  xed price at a later date. Using current,
published quarterly market price projections for diesel and estimates of fuel consumption, a 10% unfavorable change in diesel prices from the market price
would result in a potential increase of $20 million to $30 million in our fuel costs.
Investment Risk
Our company-sponsored quali ed pension plan (Retirement Plan) holds investments in public and private equity,  xed income securities and real estate
funds. The amount of our annual contribution to the plan is dependent upon, among other things, the return on the plan’s assets and discount rates used to
calculate the plan’s liability. Fluctuations in asset values can cause the amount of our anticipated future contributions to the plan to increase and can result
in a reduction to shareholders’ equity on our balance sheet as of  scal year-end, which is when this plan’s funded status is measured. Also, the projected
liability of the plan will be impacted by the  uctuations of interest rates on high quality bonds in the public markets. To the extent the  nancial markets
experience declines, our anticipated future contributions and funded status will be affected for future years. A 10% unfavorable change in the value of the
investments held by our company-sponsored Retirement Plan at the plan’s  scal year end (December 31, 2013) would not have a material impact on our
anticipated future contributions for  scal 2015; however, this unfavorable change would increase our pension expense for  scal 2015 by $31.0 million and
would reduce our shareholders’ equity on our balance sheet as of June 28, 2014 by $181.0 million.
ITEM 8. Financial Statements and Supplementary Data
Sysco Corporation and Subsidiaries Index to Consolidated Financial Statements
Consolidated Financial Statements:
Report of Management on Internal Control Over Financial Reporting .....................................................................................................................................................................49
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting .............................................................50
Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements ............................................................................... 51
Consolidated Balance Sheets .......................................................................................................................................................................................................................................................................................52
Consolidated Results of Operations .....................................................................................................................................................................................................................................................................53
Consolidated Statements of Comprehensive Income....................................................................................................................................................................................................................53
Changes in Consolidated Shareholders’ Equity.....................................................................................................................................................................................................................................54
Consolidated Cash Flows ...................................................................................................................................................................................................................................................................................................55
Notes to Consolidated Financial Statements ............................................................................................................................................................................................................................................ 56
All schedules are omitted because they are not applicable or the information is set forth in the consolidated  nancial statements or notes thereto.