BUSINESS SEGMENT INFORMATION

The company 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 and seafood companies, FreshPoint (our specialty produce companies) and European Imports (a specialty import company);


•	International Foodservice Operations - primarily includes broadline operations in Canada, Europe, 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 Sysco Labs, which includes our suite of technology solutions that help support the business needs of our customers and provides support for some of our business technology needs.

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.



	13-Week Period Ended
	Sep. 30, 2017			Oct. 1, 2016
Sales:	(In thousands)
U.S. Foodservice Operations	$	9,848,942		$	9,481,115
International Foodservice Operations	2,903,255			2,728,360
SYGMA	1,640,671			1,504,692
Other	257,556			254,487
Total	$	14,650,424		$	13,968,654

	13-Week Period Ended
	Sep. 30, 2017			Oct. 1, 2016
Operating income:	(In thousands)
U.S. Foodservice Operations	$	780,869		$	745,231
International Foodservice Operations	76,646			79,435
SYGMA	4,845			4,908
Other	6,929			8,001
Total segments	869,289			837,575
Corporate	(246,197		)	(270,742		)
Total operating income	623,092			566,833
Interest expense	80,884			73,623
Other expense (income), net	(4,248		)	(7,216		)
Earnings before income taxes	$	546,456		$	500,426



	Sep. 30, 2017		Jul. 1, 2017		Oct. 1, 2016
Assets:	(In thousands)
U.S. Foodservice Operations	$	7,153,312	$	6,675,543	$	6,988,148
International Foodservice Operations	6,607,325		6,433,815		6,410,354
SYGMA	626,589		625,653		583,106
Other	448,891		448,885		433,895
Total segments	14,836,117		14,183,896		14,415,503
Corporate	3,582,473		3,572,759		3,609,307
Total	$	18,418,590	$	17,756,655	$	18,024,810