Business Segment Information

12 Months Ended

Jul. 02, 2011

Business Segment Information [Abstract]

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 first quarter of fiscal 2012, operating segment results no longer include certain centrally incurred costs for corporate overhead and shared services due to a change in how management evaluates the performance of each of the operating segments. Previously, these centrally incurred costs were charged to the segments based upon the relative level of service used by each operating segment. Management now evaluates the performance of each of our operating segments based on its respective operating income results, which excludes the allocation of certain centrally incurred costs. This results in higher operating income at an operating segment level and higher corporate expenses. Segment reporting for the comparable prior year period has been revised to conform to the new basis of determining segment operating income without the allocation of certain centrally incurred costs. Corporate expenses generally include all expenses of the corporate office and Sysco's shared service center. These also include all share-based compensation costs and expenses related to the company's Business Transformation Project.

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

	Fiscal Year
				2010
	2011			(53 Weeks)			2009
				(In thousands)
Sales:
Broadline	$	31,924,473		$	30,381,283		$	29,972,991
SYGMA		5,341,094			4,891,279			4,839,036
Other		2,238,796			2,129,862			2,160,043
Intersegment sales		(180,874	)		(158,929	)		(118,740	)
Total	$	39,323,489		$	37,243,495		$	36,853,330
Operating income:
Broadline	$	2,327,847		$	2,352,493		$	2,225,065
SYGMA		62,190			49,057			32,435
Other		100,222			87,667			68,729
Total segments		2,490,259			2,489,217			2,326,229
Corporate expenses		(558,757	)		(513,349	)		(454,018	)
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	$	291,756		$	283,167		$	273,844
SYGMA		24,975			23,822			26,753
Other		25,131			26,861			29,311
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	$	353,296		$	407,340		$	346,520
SYGMA		38,612			25,436			5,053
Other		20,228			11,743			36,887
Total segments		412,136			444,519			388,460
Corporate		224,306			150,085			76,101
Total	$	636,442		$	594,604		$	464,561
Assets:
Broadline	$	7,220,046		$	6,402,181		$	5,814,432
SYGMA		456,204			392,883			366,539
Other		814,174			754,409			738,330
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.