Business Segment Information

6 Months Ended

Dec. 26, 2015

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

The company has aggregated certain of its operating companies into two reporting segments, Broadline and SYGMA in accordance with the accounting literature related to disclosures about segments of an enterprise.  The Broadline reportable segment is an aggregation of the company’s broadline segments located in the Bahamas, Canada, Costa Rica, Ireland and the United States.  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 Broadline leadership. As a result, these operations are no longer included in our Broadline segment and are 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 generally include all expenses of the corporate office and Sysco’s shared service center.  These also include all share-based compensation costs. 

The following tables set forth certain financial information for Sysco’s business segments:

	13-Week Period Ended						26-Week Period Ended
	Dec. 26, 2015			Dec. 27, 2014			Dec. 26, 2015			Dec. 27, 2014
Sales:	(In thousands)						(In thousands)
Broadline	$	9,605,710		$	9,548,847		$	19,633,806		$	19,520,222
SYGMA	1,506,836			1,559,863			2,952,741			3,101,475
Other	1,447,740			1,305,179			2,814,566			2,557,265
Intersegment sales	(406,661		)	(326,815		)	(684,875		)	(646,807		)
Total	$	12,153,626		$	12,087,074		$	24,716,237		$	24,532,155
	13-Week Period Ended						26-Week Period Ended
	Dec. 26, 2015			Dec. 27, 2014			Dec. 26, 2015			Dec. 27, 2014
Operating income:	(In thousands)						(In thousands)
Broadline	$	633,167		$	582,598		$	1,360,162		$	1,268,973
SYGMA	5,952			7,803			11,177			12,953
Other	36,865			33,695			63,372			71,422
Total segments	675,984			624,096			1,434,711			1,353,348
Corporate expenses	(243,401		)	(308,650		)	(508,654		)	(572,289		)
Total operating income	432,583			315,446			926,057			781,059
Interest expense	47,235			77,042			174,142			107,976
Other expense (income), net	(7,764		)	2,207			(23,004		)	19
Earnings before income taxes	$	393,112		$	236,197		$	774,919		$	673,064

	Dec. 26, 2015		Jun. 27, 2015		Dec. 27, 2014
Assets:	(In thousands)
Broadline	$	7,739,428	$	7,730,239	$	7,906,762
SYGMA	556,480		512,044		520,862
Other	1,523,493		1,415,038		1,401,847
Total segments	9,819,401		9,657,321		9,829,471
Corporate	3,270,067		8,331,960		8,100,338
Total	$	13,089,468	$	17,989,281	$	17,929,809