BUSINESS SEGMENT INFORMATION

The company has aggregated certain of its operating segments 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, which distribute a full line of food products, including custom-cut meat, seafood, specialty produce, specialty imports and a wide variety of non-food products;

•

International Foodservice Operations - includes operations in the Americas and Europe, which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Mexico, Costa Rica and Panama, as well as our operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden;


•	SYGMA - our U.S. 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 provide support for some of our business technology needs.

The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Corporate expenses generally include all expenses of the corporate office and Sysco’s shared services center. These also include all share-based compensation costs.

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



	Fiscal Year
	2018			2017			2016
Sales:	(In thousands)
U.S. Foodservice Operations	$	39,642,263		$	37,604,698		$	37,776,443
International Foodservice Operations	11,518,565			10,613,059			5,436,209
SYGMA	6,557,033			6,178,909			6,102,328
Other	1,009,463			974,473			1,051,939
Total	$	58,727,324		$	55,371,139		$	50,366,919

	Fiscal Year
	2018			2017			2016
Operating income:	(In thousands)
U.S. Foodservice Operations	$	3,051,991		$	2,891,612		$	2,771,932
International Foodservice Operations	193,240			243,116			177,159
SYGMA	24,318			23,299			27,469
Other	39,485			30,218			32,586
Total segments	3,309,034			3,188,245			3,009,146
Corporate	(980,060		)	(1,135,074		)	(1,158,646		)
Total operating income	2,328,974			2,053,171			1,850,500
Interest expense	395,483			302,878			306,146
Other expense (income), net	(22,733		)	(15,937		)	111,347
Earnings before income taxes	$	1,956,224		$	1,766,230		$	1,433,007

	Fiscal Year
	2018			2017			2016
Depreciation and amortization:	(In thousands)
U.S. Foodservice Operations	$	348,041		$	266,024		$	252,392
International Foodservice Operations	258,156			243,628			70,184
SYGMA	36,367			34,890			31,792
Other	9,599			10,678			12,450
Total segments	652,163			555,220			366,818
Corporate	113,335			346,772			295,892
Total	$	765,498		$	901,992		$	662,710

	Fiscal Year
	2018			2017			2016
Capital Expenditures:	(In thousands)
U.S. Foodservice Operations	$	262,887		$	194,714		$	153,528
International Foodservice Operations	157,139			228,564			56,689
SYGMA	45,132			50,722			31,811
Other	11,406			13,237			20,702
Total segments	476,564			487,237			262,730
Corporate	211,251			199,141			264,616
Total	$	687,815		$	686,378		$	527,346



	Fiscal Year
	2018		2017		2016
Assets:	(In thousands)
U.S. Foodservice Operations	$	7,039,354	$	6,675,543	$	6,753,056
International Foodservice Operations	6,112,666		6,433,815		2,019,406
SYGMA	662,290		625,653		539,639
Other	452,426		448,885		459,785
Total segments	14,266,736		14,183,896		9,771,886
Corporate	3,803,668		3,572,759		6,949,918
Total	$	18,070,404	$	17,756,655	$	16,721,804

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



	Fiscal Year
	2018		2017		2016
	(In thousands)
Fresh and frozen meats	$	11,312,969	$	10,605,678	$	10,273,247
Canned and dry products	9,768,206		8,695,829		8,402,230
Frozen fruits, vegetables, bakery and other	9,025,762		8,444,260		6,719,648
Dairy products	6,037,409		5,610,101		5,276,991
Poultry	5,979,399		5,873,944		5,392,933
Fresh produce	4,929,366		4,701,440		4,156,978
Paper and disposables	3,837,943		3,596,470		3,557,514
Seafood	3,280,308		3,089,350		2,541,239
Beverage products	1,965,251		2,059,453		1,849,780
Janitorial products	1,395,100		1,331,019		1,251,821
Equipment and smallwares	795,406		794,087		593,595
Medical supplies	400,205		569,508		350,943
Total	$	58,727,324	$	55,371,139	$	50,366,919

Information concerning geographic areas is as follows:



	Fiscal Year
	2018		2017		2016
	(In thousands)
Sales:
United States	$	46,812,297	$	44,395,765	$	44,922,937
Canada	4,661,615		4,346,894		4,486,282
United Kingdom	3,176,069		2,974,133		—
France	1,625,407		1,426,973		—
Other	2,451,936		2,227,374		957,700
Total	$	58,727,324	$	55,371,139	$	50,366,919
Long-lived assets:
United States	$	3,448,164	$	3,252,980	$	3,461,505
United Kingdom	319,664		303,178		—
Canada	318,410		329,090		309,027
France	240,507		284,611		—
Other	194,915		207,443		109,910
Total	$	4,521,660	$	4,377,302	$	3,880,442