Business Segment Information

12 Months Ended

Jul. 02, 2011

Business Segment Information

Business Segment Information

19. BUSINESS SEGMENT INFORMATION

     The company has aggregated its operating companies into a number of segments, of which only Broadline and SYGMA are reportable segments as defined in the accounting literature related to disclosures about segments of an enterprise. The Broadline reportable segment is an aggregation of the company's United States, Canadian and European Broadline segments. Broadline operating companies distribute a full line of food products and a wide variety of non-food products to its customers. SYGMA operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations. "Other" financial information is attributable to the company's other operating segments, including the company's specialty produce and lodging industry segments and a company that distributes to international customers.

     Beginning in the third quarter of fiscal 2011, the company's custom-cut meat operations were reorganized to function as part of the United States Broadline segment. As a result, the custom-cut meat operations are included in the Broadline reportable segment in the segment reporting presented below. Previously, these operations were an independent segment and were presented with the "Other" financial information relating to non-reportable segments. Segment reporting for the comparable prior year periods has been revised to conform to the new classification of the custom-cut meat operations as part of the Broadline reportable segment.

     The accounting policies for the segments are the same as those disclosed by Sysco. Intersegment sales represent specialty produce products distributed by the Broadline and SYGMA operating companies. The segment results include certain centrally incurred costs for shared services that are charged to our segments. These centrally incurred costs are charged based upon the relative level of service used by each operating company consistent with how Sysco's management views the performance of its operating segments. Management evaluates the performance of each of our operating segments based on its respective operating income results, which include the allocation of certain centrally incurred costs.

     Included in corporate expenses, among other items, are:

• Gains and losses recognized to adjust COLI policies to their cash surrender values;

• Share-based compensation expense;

• Expenses related to the company's Business Transformation Project; and

• Corporate-level depreciation and amortization expense.

     The following table sets forth the financial information for Sysco's business segments:

	Fiscal Year
				2010
	2011			(53 Weeks)			2009
				(In thousands)
Sales:
Broadline	$	31,945,820		$	30,402,605		$	29,986,585
SYGMA		5,341,094			4,891,279			4,839,036
Other		2,196,863			2,090,589			2,134,708
Intersegment sales		(160,288	)		(140,978	)		(106,999	)
Total	$	39,323,489		$	37,243,495		$	36,853,330
Operating income:
Broadline	$	2,116,130		$	2,113,923		$	1,996,398
SYGMA		60,206			47,311			30,193
Other		92,299			84,207			64,920
Total segments		2,268,635			2,245,441			2,091,511
Corporate expenses		(337,133	)		(269,573	)		(219,300	)
Total operating income		1,931,502			1,975,868			1,872,211
Interest expense		118,267			125,477			116,322
Other expense (income), net		(14,219	)		802			(14,945	)
Earnings before income taxes	$	1,827,454		$	1,849,589		$	1,770,834
Depreciation and amortization:
Broadline	$	292,393		$	283,799		$	274,268
SYGMA		24,975			23,822			26,753
Other		24,494			26,229			28,887
Total segments		341,862			333,850			329,908
Corporate		60,726			56,126			52,431
Total	$	402,588		$	389,976		$	382,339
Capital expenditures:
Broadline	$	353,576		$	407,808		$	348,353
SYGMA		38,612			25,436			5,053
Other		19,948			11,275			35,054
Total segments		412,136			444,519			388,460
Corporate		224,306			150,085			76,101
Total	$	636,442		$	594,604		$	464,561
Assets:
Broadline	$	7,240,879		$	6,417,776		$	5,828,384
SYGMA		456,204			392,883			366,539
Other		793,341			738,814			724,378
Total segments		8,490,424			7,549,473			6,919,301
Corporate		2,895,131			2,764,228			3,228,885
Total	$	11,385,555		$	10,313,701		$	10,148,186

     The sales mix for the principal product categories for each fiscal year is as follows:

			2010
	2011		(53 Weeks)		2009
			(In thousands)
Canned and dry products	$	7,308,893	$	7,152,628	$	7,091,420
Fresh and frozen meats		7,163,505		6,405,820		6,394,447
Frozen fruits, vegetables, bakery and other		5,337,625		5,220,307		5,122,415
Dairy products		4,145,350		3,709,410		3,750,684
Poultry		3,912,510		3,862,486		3,709,553
Fresh produce		3,345,929		3,179,947		3,017,018
Paper and disposables		3,055,862		2,906,426		2,911,029
Seafood		1,929,417		1,739,949		1,740,292
Beverage products		1,478,456		1,408,376		1,322,300
Janitorial products		902,636		907,189		940,097
Equipment and smallwares		581,628		599,267		661,309
Medical supplies		161,678		151,690		192,766
Total	$	39,323,489	$	37,243,495	$	36,853,330

     Information concerning geographic areas is as follows:

	Fiscal Year
			2010
	2011		(53 Weeks)		2009
			(In thousands)
Sales: (1)
United States	$	34,992,273	$	33,268,481	$	33,378,485
Canada		3,864,420		3,550,605		3,134,989
Other		466,796		424,409		339,856
Total	$	39,323,489	$	37,243,495	$	36,853,330
Long-lived assets:(2)
United States	$	3,161,724	$	2,884,728	$	2,725,200
Canada		321,185		291,514		223,320
Other		29,480		27,581		30,680
Total	$	3,512,389	$	3,203,823	$	2,979,200

(1)	Represents sales to external customers from businesses operating in these countries.
(2)	Long-lived assets represents net property, plant and equipment reported in the country in which they are held.