Business Segment Information

3 Months Ended

Oct. 01, 2016

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

The Acquisition, combined with a change in how the chief operating decision maker assesses performance and allocates resources, resulted in a change in Sysco's segment reporting. Sysco has aggregated certain of its operating companies into three reportable segments. "Other" financial information is attributable to the company's other operating segments that have not been aggregated into one of the three reporting segments.

• U.S. Foodservice Operations - primarily includes U.S. broadline operations, custom-cut meat companies, FreshPoint (our specialty produce companies) and European Imports (a specialty import company);

• International Foodservice Operations - includes broadline operations in Canada and Europe, including the Brakes Group, Bahamas, Mexico, Costa Rica and Panama, as well as a company that distributes to international customers;

• SYGMA - our chain restaurant distribution subsidiary; and

• Other - primarily our hotel supply operations and our Sysco Ventures platform, which includes our suite of technology solutions that help support the business needs of our customers.

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. 

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements.  Management evaluates the performance of each of our operating segments based on its respective operating income results. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These also include all share-based compensation costs. While a segment’s operating income may be impacted in the short-term by increases or decreases in gross profits, expenses, or a combination thereof, over the long-term each business segment is expected to increase its operating income at a greater rate than sales growth. This is consistent with our long-term goal of leveraging earnings growth at a greater rate than sales growth. 

The following tables set forth certain financial information for Sysco’s business segments. Prior year amounts have been reclassified to conform to the current year presentation and include the impact of a change in allocation between corporate and these segments that is not material but is consistent with management's assessment of segment performance in fiscal 2017.

	13-Week Period Ended
	Oct. 1, 2016			Sep. 26, 2015
Sales:	(In thousands)
U.S. Foodservice Operations	$	9,481,115		$	9,407,923
International Foodservice Operations	2,728,360			1,390,259
SYGMA	1,504,692			1,445,904
Other	254,487			318,525
Total	$	13,968,654		$	12,562,611
	13-Week Period Ended
	Oct. 1, 2016			Sep. 26, 2015
Operating income:	(In thousands)
U.S. Foodservice Operations	$	745,231		$	686,669
International Foodservice Operations	79,435			51,920
SYGMA	4,908			5,123
Other	8,001			10,770
Total segments	837,575			754,482
Corporate expenses	(270,742		)	(261,008		)
Total operating income	566,833			493,474
Interest expense	73,623			126,907
Other expense (income), net	(7,216		)	(15,240		)
Earnings before income taxes	$	500,426		$	381,807

	Oct. 1, 2016		July 2, 2016		Sep. 26, 2015
Assets:	(In thousands)
U.S. Foodservice Operations	$	6,988,148	$	6,870,159	$	7,263,246
International Foodservice Operations	6,410,354		2,030,917		1,812,094
SYGMA	583,106		541,796		508,403
Other	433,895		469,830		429,226
Total segments	14,415,503		9,912,702		10,012,969
Corporate	3,609,307		6,809,102		3,358,582
Total	$	18,024,810	$	16,721,804	$	13,371,551