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PARTII
ITEM8Financial Statements and Supplementary Data
NOTE11 Debt and Other Financing Arrangements
Sysco’s debt consists of the following:
(Inthousands)
June 27, 2015 June 28, 2014
Commercial paper, interest averaging 0.2% as of June 28, 2014 $ - $ 129,999
Senior notes, interest at 0.55%, maturing in scal 2015 - 299,015
Senior notes, interest at 5.25%, maturing in scal 2018(1) 502,608 502,521
Senior notes, interest at 5.375%, maturing in scal 2019(1) 248,824 248,509
Senior notes, interest at 2.6%, maturing in scal 2022(1) 444,212 443,384
Debentures, interest at 7.16%, maturing in scal 2027(2) 50,000 50,000
Debentures, interest at 6.5%, maturing in scal 2029(1) 223,610 223,505
Senior notes, interest at 5.375%, maturing in scal 2036(1) 496,775 495,636
Senior notes, interest at 6.625%, maturing in scal 2039(1) 244,415 244,180
Senior notes, interest at 1.45%, maturing in scal 2018(1), (3) 500,801 -
Senior notes, interest at 2.35% maturing in scal 2020(1), (3) 752,070 -
Senior notes, interest at 3.00% , maturing in scal 2022(1), (3) 745,136 -
Senior notes, interest at 3.50% , maturing in scal 2025(1), (3) 1,239,116 -
Senior notes, interest at 4.35%, maturing in scal 2035(1), (3) 742,664 -
Senior notes, interest at 4.50%, maturing in scal 2045(1), (3) 981,813 -
Notes payable, capital leases, and other debt, interest averaging 2.81% and maturing at various dates to
scal 2026 as of June 27, 2015 and 2.59% and maturing at various dates to scal 2029 as of June 28, 2014 149,833 96,333
Total debt 7,321,877 2,733,082
Less current maturities of long-term debt (4,979,301) (304,777)
Less notes payable (70,751) (70,975)
NET LONG-TERM DEBT $ 2,271,825 $ 2,357,330
(1) Represents senior notes that are unsecured, are not subject to any sinking fund requirement and include a redemption provision that allows Sysco to retire the debentures and notes at any time
prior to maturity at the greater of par plus accrued interest or an amount designed to ensure that the debenture and note holders are not penalized by the early redemption.
(2) This debenture is not subject to any sinking fund requirement and is no longer redeemable prior to maturity.
(3) Represents senior notes that were redeemed in July 2015 under a mandatory redemption feature.
As of June 27, 2015, the principal payments required to be made during the next ve scal years on long-term debt, excluding notes payable and commercial
paper, are shown below:
(Inthousands)
Amount
2016 $ 5,007,943
2017 29,140
2018 506,694
2019 269,532
2020 3,387
Commercial Paper and Revolving Credit Facility
Sysco has a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $1.5 billion.
Sysco and one of its subsidiaries, Sysco International, ULC, have a revolving credit facility supporting the company’s U.S. and Canadian commercial
paper programs. The facility provides for borrowings in both U.S. and Canadian dollars. Borrowings by Sysco International, ULC under the agreement are
guaranteed by Sysco, and borrowings by Sysco and Sysco International, ULC under the credit agreement are guaranteed by the wholly-owned subsidiaries
of Sysco that are guarantors of the company’s senior notes and debentures. The facility, in the amount of $1.5 billion, expires on December 29, 2018,
but is subject to extension. As of June 27, 2015, there were no commercial paper issuances outstanding. In periods where Sysco has commercial paper
borrowings, the amounts are classi ed within long-term debt, as the program is supported by long-term revolving credit facility described above.
During scal 2015, 2014, and 2013, aggregate outstanding commercial paper issuances ranged from approximately zero to $659.4 million, zero to
$770.5million, and zero to $330.0 million, respectively.
Fixed Rate Debt
In February 2013, Sysco repaid 4.2% senior notes totaling $250.0 million at maturity utilizing a combination of cash ow from operations and cash on hand.
In March 2014, Sysco repaid 4.6% senior notes totaling $200.0 million at maturity utilizing a combination of cash ow from operations and commercial
paper issuances.