BUSINESS SEGMENT INFORMATION

12 Months Ended

Jun. 29, 2019

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 the company’s operations that distribute to international customers. The company’s European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden;


•	SYGMA - the company’s U.S. customized distribution subsidiary; and


•	Other - primarily the company’s hotel supply operations and Sysco Labs, which includes the company’s suite of technology solutions that help support the business needs of the company’s customers and provide support for some of the company’s 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
	2019			2018			2017
Sales:	(In thousands)
U.S. Foodservice Operations	$	41,288,188		$	39,642,263		$	37,604,698
International Foodservice Operations	11,493,040			11,518,565			10,613,059
SYGMA	6,244,328			6,557,033			6,178,909
Other	1,088,366			1,009,463			974,473
Total	$	60,113,922		$	58,727,324		$	55,371,139

	Fiscal Year
	2019			2018			2017
Operating income:	(In thousands)
U.S. Foodservice Operations	$	3,192,816		$	3,056,817		$	2,896,357
International Foodservice Operations	125,443			193,864			243,790
SYGMA	27,780			24,318			23,299
Other	35,848			39,485			30,217
Total segments	3,381,887			3,314,484			3,193,663
Corporate	(1,051,737		)	(1,000,428		)	(1,139,047		)
Total operating income	2,330,150			2,314,056			2,054,616
Interest expense	360,423			395,483			302,878
Other expense (income), net	(36,109		)	(37,651		)	(14,492		)
Earnings before income taxes	$	2,005,836		$	1,956,224		$	1,766,230

	Fiscal Year
	2019			2018			2017
Depreciation and amortization:	(In thousands)
U.S. Foodservice Operations	$	342,277		$	348,041		$	266,024
International Foodservice Operations	248,914			258,156			243,628
SYGMA	35,473			36,367			34,890
Other	10,868			9,599			10,678
Total segments	637,532			652,163			555,220
Corporate	126,403			113,335			346,772
Total	$	763,935		$	765,498		$	901,992

	Fiscal Year
	2019			2018			2017
Capital Expenditures:	(In thousands)
U.S. Foodservice Operations	$	327,005		$	262,887		$	194,714
International Foodservice Operations	249,527			157,139			228,564
SYGMA	36,396			45,132			50,722
Other	25,003			11,406			13,237
Total segments	637,931			476,564			487,237
Corporate	54,460			211,251			199,141
Total	$	692,391		$	687,815		$	686,378



	Fiscal Year
	2019		2018		2017
Assets:	(In thousands)
U.S. Foodservice Operations	$	7,238,309	$	7,039,354	$	6,675,543
International Foodservice Operations	5,888,275		6,112,666		6,433,815
SYGMA	624,720		662,290		625,653
Other	477,038		452,426		448,885
Total segments	14,228,342		14,266,736		14,183,896
Corporate	3,738,180		3,803,668		3,572,759
Total	$	17,966,522	$	18,070,404	$	17,756,655

Information concerning geographic areas is as follows:



	Fiscal Year
	2019		2018		2017
	(In thousands)
Sales:
United States	$	48,257,385	$	46,812,297	$	44,395,765
Canada	4,660,030		4,661,615		4,346,894
United Kingdom	3,133,793		3,176,069		2,974,133
France	1,581,663		1,625,407		1,426,973
Other	2,481,051		2,451,936		2,227,374
Total	$	60,113,922	$	58,727,324	$	55,371,139
Long-lived assets:
United States	$	3,361,629	$	3,448,164	$	3,252,980
Canada	334,177		318,410		329,090
France	329,923		240,507		284,611
United Kingdom	270,613		319,664		303,178
Other	205,363		194,915		207,443
Total	$	4,501,705	$	4,521,660	$	4,377,302

The sales mix for the principal product categories by segment is disclosed in Note 4, “Revenue.”