Business Segment Information

9 Months Ended

Mar. 31, 2012

Business Segment Information [Abstract]

Business Segment Information

13. 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 both traditional and chain restaurant customers and also provide custom-cut meat operations. 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, a company that distributes specialty imported products 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 and imported specialty 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.

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

	13-Week Period Ended						39-Week Period Ended
	Mar. 31, 2012			Apr. 2, 2011			Mar. 31, 2012			Apr. 2, 2011
	(In thousands)
Sales:
Broadline	$	8,513,483		$	7,910,994		$	25,493,000		$	23,453,164
SYGMA		1,445,214			1,315,439			4,233,238			3,947,705
Other		586,440			586,050			1,734,123			1,627,588
Intersegment sales		(40,391	)		(50,823	)		(124,804	)		(130,671	)
Total	$	10,504,746		$	9,761,660		$	31,335,557		$	28,897,786
	13-Week Period Ended						39-Week Period Ended
	Mar. 31, 2012			Apr. 2, 2011			Mar. 31, 2012			Apr. 2, 2011
	(In thousands)
Operating income:
Broadline	$	564,603		$	533,273		$	1,753,599		$	1,666,214
SYGMA		17,063			17,382			46,050			46,725
Other		19,999			29,622			64,737			70,545
Total segments		601,665			580,277			1,864,386			1,783,484
Corporate expenses		(162,835	)		(152,790	)		(489,218	)		(412,732	)
Total operating income		438,830			427,487			1,375,168			1,370,752
Interest expense		28,290			28,972			86,088			88,133
Other expense (income), net		(2,248	)		(6,957	)		(5,470	)		(9,941	)
Earnings before income taxes	$	412,788		$	405,472		$	1,294,550		$	1,292,560

	Mar. 31, 2012		Jul. 2, 2011		Apr. 2, 2011
	(In thousands)
Assets:
Broadline	$	8,119,798	$	7,220,046	$	7,134,189
SYGMA		483,348		456,204		424,087
Other		871,122		814,174		831,368
Total segments		9,474,268		8,490,424		8,389,644
Corporate		2,417,845		2,895,131		2,560,290
Total	$	11,892,113	$	11,385,555	$	10,949,934