Business Segment Information

12 Months Ended

Jul. 02, 2016

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, Mexico 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:

	Fiscal Year
	2016			2015			2014
Sales:	(In thousands)
Broadline	$	39,892,893		$	38,652,211		$	36,808,051
SYGMA	6,102,328			6,076,215			6,177,804
Other	5,919,611			5,270,518			4,678,954
Intersegment sales	(1,547,913		)	(1,318,192		)	(1,148,097		)
Total	$	50,366,919		$	48,680,752		$	46,516,712
Operating income:
Broadline	$	2,831,742		$	2,567,954		$	2,426,908
SYGMA	27,656			20,521			38,048
Other	157,511			135,885			142,419
Total segments	3,016,909			2,724,360			2,607,375
Corporate expenses	(1,166,409		)	(1,494,998		)	(1,020,253		)
Total operating income	1,850,500			1,229,362			1,587,122
Interest expense	306,146			254,807			123,741
Other expense (income), net	111,347			(33,592		)	(12,243		)
Earnings before income taxes	$	1,433,007		$	1,008,147		$	1,475,624
Depreciation and amortization
Broadline	$	265,849		$	278,553		$	296,267
SYGMA	31,792			29,753			28,164
Other	56,602			54,086			41,704
Total segments	354,243			362,392			366,135
Corporate	308,467			190,629			189,927
Total	$	662,710		$	553,021		$	556,062
Capital Expenditures
Broadline	$	142,607		$	199,831		$	276,314
SYGMA	31,811			36,948			34,671
Other	85,131			69,193			101,128
Total segments	259,549			305,972			412,113
Corporate	267,797			236,858			111,093
Total	$	527,346		$	542,830		$	523,206

Assets:
Broadline	$	7,778,300	$	7,730,239	$	8,611,776
SYGMA	541,796		512,044		513,587
Other	1,577,023		1,415,038		1,379,910
Total segments	9,897,119		9,657,321		10,505,273
Corporate	6,824,685		8,331,960		2,635,840
Total	$	16,721,804	$	17,989,281	$	13,141,113

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

	Fiscal Year
	2016		2015		2014
	(In thousands)
Fresh and frozen meats	$	10,273,247	$	10,080,290	$	8,809,148
Canned and dry products	8,402,230		7,999,250		8,383,007
Frozen fruits, vegetables, bakery and other	6,719,648		6,339,537		6,196,362
Poultry	5,392,933		5,189,496		4,814,949
Dairy products	5,276,991		5,199,036		4,956,895
Fresh produce	4,156,978		3,828,298		3,725,108
Paper and disposables	3,557,514		3,507,007		3,438,074
Seafood	2,541,239		2,490,523		2,401,021
Beverage products	1,849,780		1,754,944		1,671,000
Janitorial products	1,251,821		1,102,855		1,050,187
Equipment and smallwares	593,595		661,254		678,454
Medical supplies	350,943		528,262		392,507
Total	$	50,366,919	$	48,680,752	$	46,516,712

Information concerning geographic areas is as follows:

	Fiscal Year
	2016		2015		2014
	(In thousands)
Sales:
U.S.	$	44,922,937	$	43,146,591	$	40,612,963
Canada	4,486,282		4,727,742		4,923,672
Other	957,700		806,419		980,077
Total	$	50,366,919	$	48,680,752	$	46,516,712
Long-lived assets:
U.S.	$	3,461,505	$	3,519,610	$	3,520,449
Canada	309,027		317,231		347,440
Other	109,910		145,302		117,729
Total	$	3,880,442	$	3,982,143	$	3,985,618