Business Segment Information

3 Months Ended

Sep. 29, 2018

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 reportable business segments. Sysco reclassified prior year amounts to conform to the current year presentation of net periodic pension and postretirement benefit costs in accordance with ASU 2017-07.



	13-Week Period Ended
	Sep. 29, 2018			Sep. 30, 2017
Sales:	(In thousands)
U.S. Foodservice Operations	$	10,399,411		$	9,848,942
International Foodservice Operations	2,920,950			2,903,255
SYGMA	1,621,457			1,640,671
Other	273,461			257,556
Total	$	15,215,279		$	14,650,424

	13-Week Period Ended
	Sep. 29, 2018			Sep. 30, 2017
Operating income:	(In thousands)
U.S. Foodservice Operations	$	815,758		$	782,076
International Foodservice Operations	66,772			76,804
SYGMA	2,431			4,845
Other	10,335			6,932
Total segments	895,296			870,657
Corporate	(267,156		)	(251,292		)
Total operating income	628,140			619,365
Interest expense	89,016			80,884
Other expense (income), net	1,132			(7,975		)
Earnings before income taxes	$	537,992		$	546,456