Business Segment Information

6 Months Ended

Dec. 28, 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 - primarily includes operations that the company has grouped into Canada, Latin America and Europe, which distribute a full line of food products and a wide variety of non-food products. Latin America primarily consists of operations in 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, 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.



	13-Week Period Ended						26-Week Period Ended
	Dec. 28, 2019			Dec. 29, 2018			Dec. 28, 2019			Dec. 29, 2018
Sales:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	10,413,575		$	10,087,105		$	21,072,208		$	20,486,516
International Foodservice Operations	2,890,053			2,890,598			5,802,441			5,811,548
SYGMA	1,455,893			1,536,607			2,902,887			3,158,064
Other	265,521			251,397			550,511			524,858
Total	$	15,025,042		$	14,765,707		$	30,328,047		$	29,980,986

	13-Week Period Ended						26-Week Period Ended
	Dec. 28, 2019			Dec. 29, 2018			Dec. 28, 2019			Dec. 29, 2018
Operating income:	(In thousands)						(In thousands)
U.S. Foodservice Operations	$	768,777		$	737,477		$	1,630,183		$	1,553,235
International Foodservice Operations	34,881			(14,917		)	89,681			51,855
SYGMA	9,861			3,114			17,431			5,545
Other	9,403			5,718			19,540			16,053
Total segments	822,922			731,392			1,756,835			1,626,688
Corporate	(270,429		)	(279,497		)	(536,024		)	(546,653		)
Total operating income	552,493			451,895			1,220,811			1,080,035
Interest expense	76,762			87,113			160,097			176,129
Other expense (income), net	(807		)	10,197			2,305			11,329
Earnings before income taxes	$	476,538		$	354,585		$	1,058,409		$	892,577