Revenue

9 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

The company recognizes revenues when its performance obligations are satisfied in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods and services. After completion of Sysco’s performance obligations, the company has an unconditional right to consideration as outlined in its contracts with customers. Sysco’s customer receivables will generally be collected in less than 30 days in accordance with the underlying payment terms. Customer receivables, which are included in Accounts and notes receivable, less allowances in the consolidated balance sheet, were $3.4 billion and $3.9 billion as of March 28, 2020 and June 29, 2019, respectively.

Sysco has certain customer contracts in which upfront monies are paid to its customers. These payments have become industry practice and are not related to financing of the customer’s business. They are not associated with any distinct good or service to be received from the customer and, therefore, are treated as a reduction of transaction prices. All upfront payments are capitalized in Other assets and amortized over the life of the contract or the expected life of the relationship with the customer. As of March 28, 2020, Sysco’s contract assets were not significant. Sysco has no significant commissions paid that are directly attributable to obtaining a particular contract.

The following tables present our sales disaggregated by reportable segment and sales mix for the company’s principal product categories for the periods presented:


	13-Week Period Ended Mar. 28, 2020
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	1,840,655	$	348,748	$	374,531	$	—	$	2,563,934
Canned and dry products	1,747,522		516,841		28,804		—		2,293,167
Frozen fruits, vegetables, bakery and other	1,316,562		479,444		244,151		—		2,040,157
Dairy products	1,020,115		272,854		135,818		—		1,428,787
Poultry	953,741		177,661		179,833		—		1,311,235
Fresh produce	926,527		223,614		57,667		—		1,207,808
Paper and disposables	678,104		84,684		155,487		16,060		934,335
Seafood	569,922		98,212		33,269		—		701,403
Beverage products	253,683		111,105		132,430		18,681		515,899



Other ⁽¹⁾	280,174		195,479		22,121		204,200		701,974
Total Sales	$	9,587,005	$	2,508,642	$	1,364,111	$	238,941	$	13,698,699

⁽¹⁾Other sales relate to non-food products, including textiles and amenities for our hotel supply business, equipment and subscription sales for our Sysco Labs business, and other janitorial products, medical supplies and smallwares.


	13-Week Period Ended Mar. 30, 2019
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	2,035,201	$	389,126	$	386,074	$	—	$	2,810,401
Canned and dry products	1,812,070		554,653		69,730		—		2,436,453
Frozen fruits, vegetables, bakery and other	1,408,601		500,999		300,725		—		2,210,325
Dairy products	1,030,209		304,315		145,460		—		1,479,984
Poultry	1,013,513		195,816		200,518		—		1,409,847
Fresh produce	936,972		245,436		56,847		—		1,239,255
Paper and disposables	686,732		88,400		178,465		14,287		967,884
Seafood	624,953		166,103		32,959		—		824,015
Beverage products	277,421		129,366		136,876		19,787		563,450



Other ⁽¹⁾	279,611		183,677		29,658		223,514		716,460
Total Sales	$	10,105,283	$	2,757,891	$	1,537,312	$	257,588	$	14,658,074


	39-Week Period Ended Mar. 28, 2020
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	5,987,431	$	1,167,126	$	1,148,493	$	—	$	8,303,050
Canned and dry products	5,508,168		1,687,732		104,646		—		7,300,546
Frozen fruits, vegetables, bakery and other	4,225,248		1,610,048		765,146		—		6,600,442
Poultry	3,108,528		605,506		584,583		—		4,298,617
Dairy products	3,308,322		886,256		424,706		—		4,619,284
Fresh produce	2,877,445		734,824		177,918		—		3,790,187
Paper and disposables	2,087,588		269,797		490,235		48,723		2,896,343
Seafood	1,857,040		367,486		81,507		—		2,306,033
Beverage products	821,092		366,006		415,215		63,922		1,666,235



Other ⁽¹⁾	878,353		616,300		74,549		676,807		2,246,009
Total Sales	$	30,659,215	$	8,311,081	$	4,266,998	$	789,452	$	44,026,746


	39-Week Period Ended Mar. 30, 2019
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In thousands)
Principal Product Categories
Fresh and frozen meats	$	6,241,367	$	1,218,668	$	1,132,476	$	—	$	8,592,511
Canned and dry products	5,463,772		1,777,733		214,070		—		7,455,575
Frozen fruits, vegetables, bakery and other	4,249,051		1,483,735		907,718		—		6,640,504
Dairy products	3,158,050		929,025		448,369		—		4,535,444
Poultry	3,042,028		620,940		681,253		—		4,344,221
Fresh produce	2,802,548		825,000		178,745		—		3,806,293
Paper and disposables	2,079,381		280,315		548,977		44,871		2,953,544
Seafood	1,868,294		550,953		81,795		—		2,501,042
Beverage products	839,173		342,753		420,414		63,389		1,665,729



Other ⁽¹⁾	848,135		540,317		81,559		674,186		2,144,197
Total Sales	$	30,591,799	$	8,569,439	$	4,695,376	$	782,446	$	44,639,060

Credit Risk

Sysco is potentially subject to group concentrations of credit risk with respect to accounts receivable, as large amounts of the company’s trade receivables are concentrated on customers within the food away from home industry across North America and Europe. The prolonged disruption of Sysco’s customers’ businesses due to the COVID-19 pandemic has created additional bad debt risk for the company. See Note 8, "Allowance for Doubtful Accounts," for additional disclosures around the provision for bad debt.