Business Segment Information

3 Months Ended

Sep. 28, 2019

BUSINESS SEGMENT INFORMATION

The company has aggregated certain of its operating segments 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, which distribute a full line of food products including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products;

•

International Foodservice Operations - primarily includes operations that the company has grouped into Canada, Latin America and Europe, which distribute a full line of food products and a wide variety of non-food products. Latin America primarily consists of operations in Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom, France, Ireland and Sweden;


•	SYGMA - our U.S. customized distribution subsidiary; and


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

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These expenses also include all share-based compensation costs.

The following tables set forth certain financial information for Sysco’s reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07.



	13-Week Period Ended
	Sep. 28, 2019			Sep. 29, 2018
Sales:	(In thousands)
U.S. Foodservice Operations	$	10,658,633		$	10,399,411
International Foodservice Operations	2,912,388			2,920,950
SYGMA	1,446,994			1,621,457
Other	284,990			273,461
Total	$	15,303,005		$	15,215,279

	13-Week Period Ended
	Sep. 28, 2019			Sep. 29, 2018
Operating income:	(In thousands)
U.S. Foodservice Operations	$	861,406		$	815,758
International Foodservice Operations	54,800			66,772
SYGMA	7,570			2,431
Other	10,137			10,335
Total segments	933,913			895,296
Corporate	(265,595		)	(267,156		)
Total operating income	668,318			628,140
Interest expense	83,335			89,016
Other expense (income), net	3,112			1,132
Earnings before income taxes	$	581,871		$	537,992