Business Segment Information

6 Months Ended

Dec. 31, 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 in the first quarter of fiscal 2017. 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 do not meet the quantitative disclosure thresholds.

• 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 - primarily includes broadline operations in Canada and Europe (including the Brakes Group, which was acquired in fiscal 2017), Bahamas, Mexico, Costa Rica and Panama, as well as a company that distributes to international customers;

• SYGMA - our customized 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						26-Week Period Ended
	Dec. 31, 2016			Dec. 26, 2015			Dec. 31, 2016			Dec. 26, 2015
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	9,085,565		$	9,135,326		$	18,566,681		$	18,543,249
International Foodservice Operations	2,625,949			1,280,775			5,354,310			2,671,034
SYGMA	1,520,182			1,506,836			3,024,874			2,952,741
Other	225,572			230,689			480,057			549,213
Total	$	13,457,268		$	12,153,626		$	27,425,922		$	24,716,237
	13-Week Period Ended						26-Week Period Ended
	Dec. 31, 2016			Dec. 26, 2015			Dec. 31, 2016			Dec. 26, 2015
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	681,321		$	625,216		$	1,426,552		$	1,311,885
International Foodservice Operations	84,814			42,212			164,249			94,132
SYGMA	3,155			5,659			8,062			10,782
Other	3,793			6,380			11,794			17,150
Total segments	773,083			679,467			1,610,657			1,433,949
Corporate expenses	(280,666		)	(246,884		)	(551,407		)	(507,892		)
Total operating income	492,417			432,583			1,059,250			926,057
Interest expense	72,231			47,235			145,854			174,142
Other expense (income), net	(2,320		)	(7,764		)	(9,536		)	(23,004		)
Earnings before income taxes	$	422,506		$	393,112		$	922,932		$	774,919

	Dec. 31, 2016		July 2, 2016		Dec. 26, 2015
Assets:	(In thousands)
U.S. Foodservice Operations	$	6,791,846	$	6,870,159	$	6,988,257
International Foodservice Operations	6,143,372		2,030,917		1,849,886
SYGMA	603,167		541,796		556,480
Other	438,196		469,830		424,778
Total segments	13,976,581		9,912,702		9,819,401
Corporate	3,653,485		6,809,102		3,270,067
Total	$	17,630,066	$	16,721,804	$	13,089,468