Business Segment Information

9 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

The Acquisition, combined with a change in how the chief operating decision maker assesses performance and allocates resources, resulted in a change in Sysco's segment reporting in the first quarter of fiscal 2017. Sysco has aggregated certain of its operating companies into three reportable segments. "Other" financial information is attributable to the company's other operating segments that do not meet the quantitative disclosure thresholds.

• U.S. Foodservice Operations - primarily includes U.S. broadline operations, custom-cut meat companies, FreshPoint (our specialty produce companies) and European Imports (a specialty import company);

• International Foodservice Operations - primarily includes broadline operations in Canada and Europe (including the Brakes Group, which was acquired in fiscal 2017), Bahamas, Mexico, Costa Rica and Panama, as well as a company that distributes to international customers;

• SYGMA - our customized distribution subsidiary; and

• Other - primarily our hotel supply operations and our Sysco Ventures platform, which includes our suite of technology solutions that help support the business needs of our customers.

Broadline operating companies distribute a full line of food products and a wide variety of non-food products to both traditional and chain restaurant customers, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. SYGMA operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations. 

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements.  Management evaluates the performance of each of our operating segments based on its respective operating income results. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These also include all share-based compensation costs. While a segment’s operating income may be impacted in the short-term by increases or decreases in gross profits, expenses, or a combination thereof, over the long-term each business segment is expected to increase its operating income at a greater rate than sales growth. This is consistent with our long-term goal of leveraging earnings growth at a greater rate than sales growth. 

The following tables set forth certain financial information for Sysco’s business segments. Prior year amounts have been reclassified to conform to the current year presentation and include the impact of a change in allocation between corporate and these segments that is not material but is consistent with management's assessment of segment performance in fiscal 2017.

	13-Week Period Ended						39-Week Period Ended
	Apr. 1, 2017			Mar. 26, 2016			Apr. 1, 2017			Mar. 26, 2016
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	9,233,048		$	9,037,417		$	27,799,728		$	27,580,667
International Foodservice Operations	2,528,485			1,251,815			7,882,796			3,922,848
SYGMA	1,535,550			1,497,365			4,560,424			4,450,106
Other	227,089			216,194			707,146			765,407
Total	$	13,524,172		$	12,002,791		$	40,950,094		$	36,719,028
	13-Week Period Ended						39-Week Period Ended
	Apr. 1, 2017			Mar. 26, 2016			Apr. 1, 2017			Mar. 26, 2016
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	689,210		$	643,326		$	2,115,762		$	1,955,211
International Foodservice Operations	16,076			33,021			180,324			127,153
SYGMA	7,344			9,344			15,407			20,126
Other	6,078			6,616			17,873			23,766
Total segments	718,708			692,307			2,329,366			2,126,256
Corporate expenses	(282,746		)	(314,689		)	(834,154		)	(822,581		)
Total operating income	435,962			377,618			1,495,212			1,303,675
Interest expense	81,004			57,699			226,858			231,841
Other expense (income), net	(4,815		)	(6,952		)	(14,351		)	(29,956		)
Earnings before income taxes	$	359,773		$	326,871		$	1,282,705		$	1,101,790

	Apr. 1, 2017		July 2, 2016		Mar. 26, 2016
Assets:	(In thousands)
U.S. Foodservice Operations	$	7,001,351	$	6,870,159	$	7,017,455
International Foodservice Operations	6,003,449		2,030,917		1,904,436
SYGMA	600,823		541,796		558,612
Other	443,813		469,830		448,115
Total segments	14,049,436		9,912,702		9,928,618
Corporate	3,871,464		6,809,102		3,422,476
Total	$	17,920,900	$	16,721,804	$	13,351,094