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SYSCO CORPORATION-Form10-K 63
PARTII
ITEM8Financial Statements and Supplementary Data
NOTE8 Goodwill and Other Intangibles
The changes in the carrying amount of goodwill and the amount allocated by reportable segment for the years presented are as follows:
(Inthousands)
Broadline SYGMA Other Total
Carrying amount as of June 30, 2012 $ 1,220,112 $ 32,609 $ 412,890 $ 1,665,611
Goodwill acquired during year 203,393 - 24,005 227,398
Currency translation/other (8,663) - (111) (8,774)
Carrying amount as of June 29, 2013 1,414,842 32,609 436,784 1,884,235
Goodwill acquired during year 49,608 - 13,225 62,833
Currency translation/other 3,649 - (45) 3,604
CARRYING AMOUNT AS OF JUNE 28, 2014 $ 1,468,099 $ 32,609 $ 449,964 $ 1,950,672
Amortizable intangible assets acquired during  scal 2014 were $12.7 million with a weighted-average amortization period of six years. By intangible asset
category, the amortizable intangible assets acquired during  scal 2014 were customer relationships of $5.3 million with a weighted-average amortization
period of seven years, non-compete agreements of $3.5 million with a weighted-average amortization period of  ve years and other intangibles of $3.9million
with a weighted-average amortization period of  ve years.
The following table presents details of the company’s amortizable intangible assets:
(Inthousands)
June 28, 2014 June 29, 2013
Gross Carrying
Amount
Accumulated
Amortization Net
Gross Carrying
Amount
Accumulated
Amortization Net
Customer relationships $ 246,019 $ (124,223) $ 121,796 $ 274,410 $ (125,250) $ 149,160
Non-compete agreements 33,164 (10,629) 22,535 29,460 (4,655) 24,805
Trademarks 12,063 (3,200) 8,863 11,618 (1,580) 10,038
Other 13,498 (2,070) 11,428 9,556 (159) 9,397
TOTAL AMORTIZABLE
INTANGIBLE ASSETS $ 304,744 $ (140,122) $ 164,622 $ 325,044 $ (131,644) $ 193,400
Intangible assets that have been fully amortized have been removed in the schedule above in the period full amortization is reached.
The following table presents details of the company’s inde nite-lived intangible assets:
(Inthousands)
June 28, 2014 June 29, 2013
Trademarks $ 11,639 $ 11,353
Licenses 966 966
TOTAL INDEFINITE-LIVED INTANGIBLE ASSETS $ 12,605 $ 12,319
Amortization expense for the past three years was $42.2 million in 2014, $32.1 million in 2013 and $24.9 million in 2012. The estimated future amortization
expense for the next  ve  scal years on intangible assets outstanding as of June 28, 2014 is shown below:
(Inthousands)
Amount
2015 $ 39,724
2016 31,729
2017 27,105
2018 23,914
2019 14,114
NOTE9 Derivative Financial Instruments
Sysco manages its debt portfolio to achieve an overall desired position of  xed and  oating rates and may employ interest rate swaps from time to time to
achieve this position. The company does not use derivative  nancial instruments for trading or speculative purposes.
In  scal 2010, the company entered into an interest rate swap agreement that effectively converted $200.0 million of  xed rate debt maturing in  scal 2014
to  oating rate debt; this swap was settled upon maturity of the senior notes in March 2014. In addition, in August 2013, the company entered into an
interest rate swap agreement that effectively converted $500.0 million of  xed rate debt maturing in  scal 2018 to  oating rate debt. These transactions
were entered into with the goal of reducing overall borrowing cost and increasing  oating interest rate exposure. These transactions were designated as
fair value hedges against the changes in fair value of  xed rate debt resulting from changes in interest rates.