Business Segment Information

9 Months Ended

Mar. 30, 2019

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 expenses 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						39-Week Period Ended
	Mar. 30, 2019			Mar. 31, 2018			Mar. 30, 2019			Mar. 31, 2018
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	10,105,283		$	9,704,495		$	30,591,799		$	29,234,662
International Foodservice Operations	2,757,891			2,799,251			8,569,439			8,571,549
SYGMA	1,537,312			1,605,753			4,695,376			4,879,569
Other	257,588			240,005			782,446			725,638
Total	$	14,658,074		$	14,349,504		$	44,639,060		$	43,411,418

	13-Week Period Ended						39-Week Period Ended
	Mar. 30, 2019			Mar. 31, 2018			Mar. 30, 2019			Mar. 31, 2018
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	765,425		$	696,671		$	2,318,660		$	2,186,327
International Foodservice Operations	10,145			19,476			62,000			148,874
SYGMA	11,668			4,477			17,213			12,675
Other	6,376			8,962			22,429			22,072
Total segments	793,614			729,586			2,420,302			2,369,948
Corporate	(264,029		)	(247,383		)	(810,682		)	(739,828		)
Total operating income	529,585			482,203			1,609,620			1,630,120
Interest expense	94,514			136,145			270,643			303,015
Other expense (income), net	4,120			(18,826		)	15,449			(35,963		)
Earnings before income taxes	$	430,951		$	364,884		$	1,323,528		$	1,363,068