Sysco 2015 Annual Report Download - page 49
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Please find page 49 of the 2015 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.SYSCO CORPORATION-Form10-K 41
PARTII
ITEM 8Financial Statements and Supplementary Data
Our activities to mitigate fuel costs include routing optimization with the goal of reducing miles driven, 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 27, 2015, we had forward diesel fuel commitments totaling approximately $99.3 million through June 2016. These contracts
will lock in the price of approximately 40% to 45% 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 approximately $15 million in our fuel costs on our non-contracted volumes.
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, 2014) would not have a material impact on our
anticipated future contributions for scal 2016; however, this unfavorable change would increase our pension expense for scal 2016 by $31.0 million and
would reduce our shareholders’ equity on our balance sheet as of June 27, 2015 by $300.3 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 .....................................................................................................................................................................42
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting .............................................................43
Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements ............................................................................... 44
Consolidated Balance Sheets .......................................................................................................................................................................................................................................................................................45
Consolidated Results of Operations .....................................................................................................................................................................................................................................................................46
Consolidated Statements of Comprehensive Income....................................................................................................................................................................................................................46
Changes in Consolidated Shareholders’ Equity.....................................................................................................................................................................................................................................47
Consolidated Cash Flows ...................................................................................................................................................................................................................................................................................................48
Notes to Consolidated Financial Statements ............................................................................................................................................................................................................................................ 49
All schedules are omitted because they are not applicable or the information is set forth in the consolidated nancial statements or notes thereto.