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SYSCO CORPORATION-Form10-K62
PARTII
ITEM8Financial Statements and Supplementary Data
(Inthousands)
Assets Measured at Fair Value as of June29,2013
Level1 Level2 Level3 Total
Assets:
Cash and cash equivalents
Cash equivalents $ 1,160 $ 132,731 $ - $ 133,891
Prepaid expenses and other current assets
Interest rate swap agreement - 2,988 - 2,988
Restricted cash 145,328 - - 145,328
TOTAL ASSETS AT FAIR VALUE $ 146,488 $ 135,719 $ - $ 282,207
The carrying values of accounts receivable and accounts payable approximated their respective fair values due to the short-term maturities of these
instruments. The fair value of Sysco’s total debt is estimated based on the quoted market prices for the same or similar issue or on the current rates offered
to the company for debt of the same remaining maturities and is considered a Level 2 measurement. The fair value of total debt approximated $3,023.1million
and $3,207.6 million as of June 28, 2014 and June 29, 2013, respectively. The carrying value of total debt was $2,759.9 million and $2,888.9 million as of
June 28, 2014 and June 29, 2013, respectively.
NOTE6 Allowance For Doubtful Accounts
A summary of the activity in the allowance for doubtful accounts appears below:
(Inthousands)
2014 2013 2012
Balance at beginning of period $ 47,345 $ 42,919 $ 42,436
Charged to costs and expenses 34,429 35,243 33,359
Customer accounts written off, net of recoveries (31,721) (30,824) (32,318)
Other adjustments (151) 7 (558)
BALANCE AT END OF PERIOD $ 49,902 $ 47,345 $ 42,919
NOTE7 Plant and Equipment
A summary of plant and equipment, including the related accumulated depreciation, appears below:
(Inthousands)
June 28, 2014 June 29, 2013
Estimated
Useful Lives
Plant and equipment, at cost:
Land $ 431,694 $ 411,853
Buildings and improvements 3,816,387 3,656,846 10-30 years
Fleet and equipment 2,726,415 2,633,497 3-10 years
Computer hardware and software 1,109,379 1,054,260 3-7 years
8,083,875 7,756,456
Accumulated depreciation (4,098,257) (3,778,385)
NET PLANT AND EQUIPMENT $ 3,985,618 $ 3,978,071
The capitalized direct costs for the internal use software portion of the company’s Business Transformation Project are included within “computer hardware
and software” in the table above in the amount of $355.2 million and $417.7 million, net of accumulated amortization, as of June 28, 2014 and June 29,
2013, respectively. The majority of this internal use software related to the Business Transformation Project was placed into service and began amortization
in August of  scal 2013.
Depreciation expense, including capital leases, for the past three years was $493.8 million in 2014, $473.5 million in 2013 and $384.9 million in 2012.