We have historically financed our operations and growth primarily with cash flows from operations, borrowings under our credit facilities, the issuance of long-term debt, operating leases, normal trade credit terms and the sale of our common stock. Despite our growth in net sales, we have reduced our working capital needs by financing our investment in inventory principally with accounts payable and outstanding checks in excess of deposits. We typically fund our acquisitions and expect to fund future acquisitions, with our existing cash, additional borrowings under our credit facility and the issuance of debt or equity securities.
Cash and cash equivalents totaled $44.4 million at June 28, 2003, an increase of $10.7 million from December 28, 2002. The increase was the result of cash provided by operating activities of $100.6 million, partially offset by cash used in investing activities of $59.7 million and cash used in financing activities of $30.2 million.
Cash flows from operating activities. Cash provided by operating activities was $100.6 million in the 2003 period. In the 2003 period, the primary sources of cash from operating activities were net earnings and increased levels of trade accounts payable, accrued expenses, income taxes payable and decreased levels of inventories, partially offset by increased levels of accounts receivable. Cash provided by operating activities was $72.6 million in the 2002 period. In the 2002 period, the primary sources of cash from operations were net earnings and increased levels of trade accounts payable, accrued expenses and income taxes payable, partially offset by increased levels of trade accounts receivable and deferred tax assets.
Cash used in investing activities. Cash used in investing activities was $59.7 million in the 2003 period. Capital expenditures, excluding acquisitions of other businesses, were $53.1 million in the 2003 period. Capital expenditures in the 2003 period included the purchase of two distribution centers from our master operating lease facilities in the 2003 quarter totaling $15.3 million, as discussed below in "Off Balance Sheet Financing Activities." Capital expenditures in the 2003 period also include additional fresh-cut processing equipment and an expansion of our Customized facility in Maryland. We anticipate that total capital expenditures, excluding acquisitions, for fiscal 2003 will be between $100 million and $130 million. Net cash paid for acquisitions in the 2003 period included $11.0 million paid to the former shareholders of Fresh International Corp. and its subsidiaries, collectively "Fresh Express," related to certain contractual obligations in the purchase agreement for Fresh Express, which we acquired in 2001. Also in the 2003 period, net cash paid for acquisitions included $1.9 million related to contractual obligations in the purchase agreements for companies acquired in 2001 and 2000. In the 2003 period, net cash paid for acquisitions also included $1.6 million received as a result of the closing net worth adjustment and certain related claims in connection with our 2002 acquisition of Middendorf Meat. In the 2003 period, we also received proceeds of $4.5 million from the sale of our investment in a fresh-cut produce facility and recorded a gain on the sale of $956,000. Cash used in investing activities in the 2002 period was $121.4 million. Capital expenditures, excluding acquisitions of other businesses, for the 2002 period were $28.6 million. Cash used in investing activities in the 2002 period also included $93.1 million net cash paid for acquisitions, consisting of $90.3 million paid for the acquisition of Quality Foods, net of cash acquired, and $2.8 mil lion paid to the former shareholders of Carroll County Foods, Inc. and AFFLINK Incorporated (formerly Affiliated Paper Companies, Inc.), which were acquired in 2000 and 1998, respectively, as a result of certain contractual obligations under the purchase agreements relating to those acquisitions.
Cash used in financing activities. Cash used in financing activities was $30.2 million in the 2003 period, which consisted primarily of net payments of $19.8 million on our revolving credit facility and a decrease in outstanding checks in excess of deposits of $12.9 million. We also paid $732,000 for debt issuance costs related to the revolving credit facility, discussed below in "Financing Activities." In the 2003 period, cash flows from financing activities consisted primarily of $4.7 million of proceeds from the exercise of stock options and purchases under our employee stock purchase plan. Cash provided by financing activities was $10.5 million in the 2002 period, which consisted of net borrowings of $13.0 million on our revolving credit facility and proceeds of $3.7 million from the exercise of stock options and purchases under our employee stock purchase plan. Cash used in financing activities in the 2002 period included a decrease in outstanding checks in excess of d eposits of $5.0 million.
Financing Activities
In October 2001, we entered into a $200.0 million revolving credit facility with several financial institutions. On April 28, 2003, we amended and restated our credit facility, referred to as the Credit Facility, which, among other things, increased the facility to $350.0 million from $200.0 million. The Credit Facility expires in 2006 and bears interest at a floating rate equal to, at our election, the agent bank's prime rate or a spread over LIBOR, which varies based upon our leverage ratio, as defined in the credit agreement. The Credit Facility has an annual commitment fee, ranging from 0.20% to 0.25% of the average daily unused portion of the total facility, based on our leverage ratio, as defined in the credit agreement. The Credit Facility also requires the maintenance of certain financial ratios, as defined in the credit agreement, and contains customary events of default. Under the Credit Facility, our subsidiaries are no longer required to guarantee borrowings, letters of cr edit or any other obligations, as had previously been required. The Credit Facility allows for the issuance of up to $90.0 million of standby letters of credit, which reduce borrowings available under the Credit Facility. At June 28, 2003, we had $78.2 million of borrowings outstanding, $27.5 million of letters of credit outstanding and $244.3 million available under the Credit Facility, subject to compliance with customary borrowing conditions. At June 28, 2003, our borrowings under the Credit Facility bore interest at a rate of 1.98% per annum. Interest is payable monthly. Subsequent to the end of the 2003 quarter, we repaid some of our borrowings under the Credit Facility with proceeds from the sale of the undivided interest in receivables under the Receivables Facility, discussed in Notes 6 and 13.
We believe that our cash flows from operations, borrowings under our credit facilities and the sale of undivided interests in receivables under the Receivables Facility, discussed below, will be sufficient to fund our operations and capital expenditures for the foreseeable future. However, we will likely require additional sources of financing to the extent that we make acquisitions in the future.
Off Balance Sheet Financing Activities
We have a Receivables Facility, which is generally described as off balance sheet financing. The Receivables Facility represents off balance sheet financing because the transaction and the financial institution's ownership interest in certain of our accounts receivable results in assets being removed from our consolidated balance sheet to the extent that the transaction qualifies for sale treatment under generally accepted accounting principles. This treatment requires us to account for the transaction with the financial institution as a sale of the undivided interest in the accounts receivable instead of reflecting the financial institution's net investment of $78.1 million as debt.
In July 2001, we entered into the Receivables Facility, under which PFG Receivables Corporation, a wholly owned, special-purpose subsidiary, sold an undivided interest in certain of our trade receivables. PFG Receivables Corporation was formed for the sole purpose of buying receivables generated by certain of our operating units and selling an undivided interest in those receivables to a financial institution. Under the Receivables Facility, certain of our operating units sell a portion of their accounts receivable to PFG Receivables Corporation, which in turn, subject to certain conditions, may from time to time sell an undivided interest in these receivables to a financial institution. Our operating units continue to service the receivables on behalf of the financial institution at estimated market rates. Accordingly, we have not recognized a servicing asset or liability.
We received $78.0 million of proceeds from the sale of the undivided interest in receivables under the Receivables Facility in 2001, and we continue to securitize our accounts receivable. At June 28, 2003, securitized accounts receivable totaled $134.2 million, which included $78.1 million sold to a financial institution and derecognized from the consolidated balance sheet and included our residual interest in accounts receivable of $56.1 million, which was included in accounts receivable on our consolidated balance sheet. The Residual Interest represents our retained interest in receivables held by PFG Receivables Corporation. We measured the Residual Interest using the estimated discounted cash flows of the underlying accounts receivable, based on estimated collections and a discount rate approximately equivalent to our incremental borrowing rate. The loss on sale of the undivided interest in receivables of $378,000 and $493,000 in the 2003 and 2002 quarters, respectively, and $702,0 00 and $931,000 in the 2003 and 2002 periods, respectively, is included in other expense, net, in the condensed consolidated statement of earnings and represents our cost of securitizing those receivables with the financial institution.
Under the original terms of the Receivables Facility, the amount of the undivided interest in the receivables owned by the financial institution could not exceed $90.0 million at any one time. On June 30, 2003, we extended the term of the Receivables Facility through June 28, 2004, and increased the limit of the amount of the undivided interest in the receivables that can be owned by the financial institution to $165.0 million. On July 24, 2003, we received an additional $32.0 million in proceeds from the sale of the undivided interest in receivables under the Receivables Facility. See "Subsequent Events."
We record the sale of the undivided interest in accounts receivable to the financial institution according to Statement of Financial Accounting Standards, or SFAS, No. 140,Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. Accordingly, at the time the undivided interest in receivables is sold, the receivables are removed from our consolidated balance sheet. We record a loss on the sale of the undivided interest in these receivables, which includes a discount, based upon the receivables' credit quality and a financing cost for the financial institution, based upon a 30-day commercial paper rate. At June 28, 2003, the rate under the Receivables Facility was 1.73% per annum.
In June 2003, we terminated our two master operating lease facilities. In June 2003, the lessor sold two of the three distribution centers included in the first master operating lease facility (the "First Facility") to third parties unaffiliated with us. We concurrently entered into operating leases with those unaffiliated third parties for these distribution centers. The operating leases have an initial term of 22 years, plus five renewal options of five years each. Also in June 2003, we purchased the remaining distribution center in the First Facility from the lessor for $10.4 million. This distribution center is recorded on our consolidated balance sheet at June 28, 2003, in our Customized segment.
Also in June 2003, the lessor sold one of the distribution centers and the office building included in our other master operating lease facility (the "Second Facility") to third parties unaffiliated with us. We also sold land and a building under construction to one of those third parties unaffiliated with us. We concurrently entered into operating leases with those unaffiliated third parties for all of these properties. The operating leases have an initial term of 22 years, plus five renewal options of five years each. Also in June 2003, we purchased the remaining distribution center in the Second Facility from the lessor for $4.9 million. This distribution center is recorded on our consolidated balance sheet at June 28, 2003, in our Broadline segment.
As a result of the termination of the two master operating lease facilities, the four new leases and our purchase of two distribution centers previously included in these facilities, our future net minimum lease payments will increase by $79.5 million: $415,000 in the remainder of 2003; $1.4 million in 2004; $2.9 million in 2005; $3.8 million in each of 2006, 2007 and 2008; and $63.4 million thereafter. The four leases discussed above do not contain residual value guarantees.
