Business Segment Information

3 Months Ended

Sep. 26, 2020

Segment Reporting [Abstract]

Business Segment Information

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 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 our hotel supply operations, Guest Worldwide. Sysco sold its interests in Cake Corporation in the first quarter of fiscal 2021.

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. During the fourth quarter of fiscal 2020, Sysco revised the way performance is

assessed for the U.S. Foodservice Operations segment. As a result of this change, charges incurred by the company’s corporate and shared services center, to provide direct support functions to the U.S. Foodservice Operations reportable segment, have been reclassified from Corporate expenses into the U.S. Foodservice reportable segment. The segment information disclosed for the first quarter of fiscal 2021 reflects this change in reporting structure and the first quarter of fiscal 2020 results reflect $67.8 million of corporate expense reclassifications to conform with the current year presentation.

The following tables set forth certain financial information for Sysco’s reportable business segments.

	13-Week Period Ended
	Sep. 26, 2020		Sep. 28, 2019
Sales:	(In thousands)
U.S. Foodservice Operations	$	7,921,533	$	10,658,633
International Foodservice Operations	2,163,693		2,912,388
SYGMA	1,524,148		1,446,994
Other	168,005		284,990
Total	$	11,777,379	$	15,303,005
	13-Week Period Ended
	Sep. 26, 2020		Sep. 28, 2019
Operating income (loss):	(In thousands)
U.S. Foodservice Operations	$	588,409	$	793,618
International Foodservice Operations	(537)		54,800
SYGMA	11,692		7,570
Other	(5)		10,137
Total segments	599,559		866,125
Corporate	(179,980)		(197,807)
Total operating income	419,579		668,318
Interest expense	146,717		83,335
Other expense (income), net	14,124		3,112
Earnings before income taxes	$	258,738	$	581,871