Sysco 2014 Annual Report Download - page 79

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SYSCO CORPORATION-Form10-K 67
PARTII
ITEM8Financial Statements and Supplementary Data
NOTE12 Leases
Sysco has obligations under capital and operating leases for certain distribution facilities, vehicles and computers. Total rental expense under operating
leases was $92.3 million, $84.4 million, and $83.0 million in  scal 2014, 2013 and 2012, respectively. Contingent rentals, subleases and assets and
obligations under capital leases are not signi cant.
Aggregate minimum lease payments by  scal year under existing long-term operating leases are as follows:
(Inthousands)
Amount
2015 $ 43,065
2016 32,890
2017 24,070
2018 15,055
2019 10,674
Thereafter 36,084
NOTE13 Other Long-Term Liabilities
The following table presents details of the company’s other long-term liabilities:
(Inthousands)
June 28, 2014 June 29, 2013
Quali ed pension plan $ 270,189 $ 136,808
Supplemental executive retirement plan 438,288 409,024
Other 319,401 357,473
TOTAL $ 1,027,878 $ 903,305
NOTE14 Company-Sponsored Employee Bene 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.
De ned Contribution Plans
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 contributed by the participant. 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.
The company also has a nonquali ed, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the
Management Incentive Plan. Participants may defer up to 50% of their annual salary and up to 100% of their annual bonus. 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 eligible compensation that is deferred. Certain employees are also eligible for
a transition contribution, and the company may also make discretionary contributions. All company contributions to the MSP are limited by the amounts
contributed by the company to the participant’s 401(k) account.
Sysco’s expense related to its de ned contribution plans was $118.6 million in  scal 2014, $65.3 million in  scal 2013, and $17.2 million in  scal 2012.