Business Segment Information

12 Months Ended

Jun. 27, 2015

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

The company has aggregated its operating companies into two reporting segments, Broadline and SYGMA, 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 U.S. and International Broadline segments located in the Bahamas, Canada, Costa Rica and Ireland.  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.  "Other" financial information is attributable to the company's other operating segments, including the company's specialty produce, custom-cut meat operations, lodging industry segments, a company that distributes specialty imported products, a company that distributes to international customers and the company’s Sysco Ventures platform, which includes a suite of technology solutions that help support the business needs of Sysco’s customers.  In fiscal 2015, our leadership structure was realigned and now our custom-cut meat operations no longer report through our U.S. broadline leadership. As a result, these operations are no longer included in our Broadline segment and now reported in "Other." Prior year amounts have been reclassified to conform to the current year presentation. 

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Intersegment sales primarily represent products the Broadline and SYGMA operating companies procured from the specialty produce, custom-cut meat operations, imported specialty products and a company that distributes to international customers.  Management evaluates the performance of each of the operating segments based on its respective operating income results.   Corporate expenses and adjustments generally include all expenses of the corporate office and Sysco’s shared service center.  These also include all share-based compensation costs.

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

	Fiscal Year
	2015			2014			2013
	(In thousands)
Sales:
Broadline	$	38,652,211		$	36,808,051		$	35,284,529
SYGMA	6,076,215			6,177,804			5,780,103
Other	5,270,518			4,678,954			4,388,261
Intersegment sales	(1,318,192		)	(1,148,097		)	(1,041,660		)
Total	$	48,680,752		$	46,516,712		$	44,411,233
Operating income:
Broadline	$	2,567,954		$	2,426,908		$	2,361,442
SYGMA	20,521			38,048			52,016
Other	135,885			142,419			139,337
Total segments	2,724,360			2,607,375			2,552,795
Corporate expenses and adjustments	(1,494,998		)	(1,020,253		)	(894,317		)
Total operating income	1,229,362			1,587,122			1,658,478
Interest expense	254,807			123,741			128,495
Other expense (income), net	(33,592		)	(12,243		)	(17,472		)
Earnings before income taxes	$	1,008,147		$	1,475,624		$	1,547,455
Depreciation and amortization:
Broadline	$	278,553		$	296,267		$	303,084
SYGMA	29,753			28,164			28,059
Other	54,086			41,704			38,721
Total segments	362,392			366,135			369,864
Corporate	218,572			189,927			142,684
Total	$	580,964		$	556,062		$	512,548
Capital expenditures:
Broadline	$	199,831		$	276,314		$	265,578
SYGMA	36,948			34,671			18,078
Other	69,193			101,128			66,182
Total segments	305,972			412,113			349,838
Corporate	236,858			111,093			162,024
Total	$	542,830		$	523,206		$	511,862
Assets:
Broadline	$	7,730,239		$	8,611,776		$	9,893,743
SYGMA	512,044			513,587			485,520
Other	1,415,038			1,379,910			1,279,119
Total segments	9,657,321			10,505,273			11,658,382
Corporate	8,331,960			2,635,840			1,007,384
Total	$	17,989,281		$	13,141,113		$	12,665,766

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

	Fiscal Year
	2015		2014		2013
	(In thousands)
Fresh and frozen meats	$	10,080,290	$	8,809,148	$	8,242,423
Canned and dry products	7,999,250		8,383,007		8,310,634
Frozen fruits, vegetables, bakery and other	6,339,537		6,196,362		6,023,990
Dairy products	5,199,036		4,956,895		4,669,986
Poultry	5,189,496		4,814,949		4,580,445
Fresh produce	3,828,298		3,725,108		3,540,027
Paper and disposables	3,507,007		3,438,074		3,364,965
Seafood	2,490,523		2,401,021		2,167,588
Beverage products	1,754,944		1,671,000		1,643,034
Janitorial products	1,102,855		1,050,187		1,013,488
Equipment and smallwares	661,254		678,454		637,680
Medical supplies	528,262		392,507		216,973
Total	$	48,680,752	$	46,516,712	$	44,411,233

Information concerning geographic areas is as follows:

	Fiscal Year
	2015		2014		2013
	(In thousands)
Sales: (1)
U.S.	$	43,146,591	$	40,612,963	$	38,985,715
Canada	4,727,742		4,923,672		4,698,814
Other	806,419		980,077		726,704
Total	$	48,680,752	$	46,516,712	$	44,411,233
Long-lived assets: (2)
U.S.	$	3,519,610	$	3,520,449	$	3,593,346
Canada	317,231		347,440		307,605
Other	145,302		117,729		77,120
Total	$	3,982,143	$	3,985,618	$	3,978,071

⁽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.