Business Segment Information

6 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

12. BUSINESS SEGMENT INFORMATION

The company has aggregated its operating companies into a number of segments, of which only Broadline and SYGMA are reportable segments as defined in the accounting literature related to disclosures about segments of an enterprise. The Broadline reportable segment is an aggregation of the company's United States, Canadian and European Broadline segments. Broadline operating companies distribute a full line of food products and a wide variety of non-food products to their customers. SYGMA operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations. "Other" financial information is attributable to the company's other operating segments, including the company's specialty produce and lodging industry segments and a company that distributes to international customers. The accounting policies for the segments are the same as those disclosed by Sysco for its consolidated financial statements. Intersegment sales represent specialty produce products distributed by the Broadline and SYGMA operating companies.

Beginning in the first quarter of fiscal 2012, operating segment results no longer include certain centrally incurred costs for corporate overhead and shared services due to a change in how management evaluates the performance of each of the operating segments. Previously, these centrally incurred costs were charged to the segments based upon the relative level of service used by each operating segment. Management now evaluates the performance of each of our operating segments based on its respective operating income results, which excludes the allocation of certain centrally incurred costs. This results in higher operating income at an operating segment level and higher corporate expenses. Segment reporting for the comparable prior year period has been revised to conform to the new basis of determining segment operating income without the allocation of certain centrally incurred costs. Corporate expenses generally include all expenses of the corporate office and Sysco's shared service center. These also include all share-based compensation costs and expenses related to the company's Business Transformation Project.

In addition, beginning in the third quarter of fiscal 2011, the company's custom-cut meat operations were reorganized to function as part of the United States Broadline segment. As a result, the custom-cut meat operations are included in the Broadline reportable segment in the segment reporting presented below. Previously, these operations were an independent segment and were presented with the "Other" financial information relating to non-reportable segments. Segment reporting for the comparable prior year period has been revised to conform to the new classification of the custom-cut meat operations as part of the Broadline reportable segment.

The following tables set forth certain financial information for Sysco's business segments:

	13-Week Period Ended						26-Week Period Ended
	Dec. 31, 2011			Jan. 1, 2011			Dec. 31, 2011			Jan. 1, 2011
	(In thousands)
Sales:
Broadline	$	8,320,996		$	7,594,497		$	16,979,517		$	15,542,170
SYGMA		1,403,555			1,312,770			2,788,024			2,632,266
Other		559,122			515,671			1,147,683			1,041,538
Intersegment sales		(39,252	)		(38,086	)		(84,413	)		(79,848	)
Total	$	10,244,421		$	9,384,852		$	20,830,811		$	19,136,126

		$8,320,990			$8,320,990			$8,320,990			$8,320,990
	13-Week Period Ended						26-Week Period Ended
	Dec. 31, 2011			Jan. 1, 2011			Dec. 31, 2011			Jan. 1, 2011
	(In thousands)
Operating income:
Broadline	$	564,881		$	540,397		$	1,188,996		$	1,132,941
SYGMA		13,296			14,355			28,987			29,343
Other		20,253			19,935			44,738			40,923
Total segments		598,430			574,687			1,262,721			1,203,207
Corporate expenses		(171,432	)		(137,662	)		(326,383	)		(259,942	)
Total operating income		426,998			437,025			936,338			943,265
Interest expense		28,324			28,060			57,798			59,161
Other expense (income), net		(3,472	)		(1,300	)		(3,222	)		(2,984	)
Earnings before income taxes	$	402,146		$	410,265		$	881,762		$	887,088

	Dec. 31, 2011		Jul. 2, 2011		Jan. 1, 2011
	(In thousands)
Assets:
Broadline	$	7,536,722	$	7,220,046	$	6,648,750
SYGMA		479,962		456,204		417,692
Other		822,659		814,174		777,013
Total segments		8,839,343		8,490,424		7,843,455
Corporate		2,614,684		2,895,131		2,484,828
Total	$	11,454,027	$	11,385,555	$	10,328,283