Policy

21. 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, Caribbean 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, hospitals, schools, hotels, industrial caterers and other venues where foodservice products are served. These companies 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. Management evaluates the performance of each of our operating segments based on its respective operating income results. 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 table sets forth the financial information for Sysco’s business segments:



	Fiscal Year
	2013		2012		2011
	(In thousands)
Sales:
Broadline	$	36,129,463	$	34,420,851	$	31,924,473
SYGMA		5,780,103		5,735,673		5,341,094
Other		2,741,537		2,396,113		2,238,796
Intersegment sales		(239,870)		(171,698)		(180,874)
Total	$	44,411,233	$	42,380,939	$	39,323,489

Operating income:
Broadline	$	2,402,215	$	2,416,225	$	2,327,847
SYGMA		52,016		60,967		62,190
Other		98,564		91,048		100,222
Total segments		2,552,795		2,568,240		2,490,259
Corporate expenses		(894,317)		(677,608)		(558,757)
Total operating income		1,658,478		1,890,632		1,931,502
Interest expense		128,495		113,396		118,267
Other expense (income), net		(17,472)		(6,766)		(14,219)
Earnings before income taxes	$	1,547,455	$	1,784,002	$	1,827,454

Depreciation and amortization:
Broadline	$	313,611	$	298,852	$	291,756
SYGMA		28,059		27,706		24,975
Other		28,194		24,745		25,131
Total segments		369,864		351,303		341,862
Corporate		142,684		65,640		60,726
Total	$	512,548	$	416,943	$	402,588

Capital expenditures:
Broadline	$	284,016	$	525,368	$	353,296
SYGMA		18,078		30,961		38,612
Other		47,744		41,669		20,228
Total segments		349,838		597,998		412,136
Corporate		162,024		186,503		224,306
Total	$	511,862	$	784,501	$	636,442

Assets:
Broadline	$	10,228,722	$	8,067,912	$	7,261,681
SYGMA		485,520		475,877		456,204
Other		944,140		877,207		814,174
Total segments		11,658,382		9,420,996		8,532,059
Corporate		1,005,565		2,716,211		2,895,131
Total	$	12,663,947	$	12,137,207	$	11,427,190

The sales mix for the principal product categories for each fiscal year is as follows:



	Fiscal Year
	2013		2012		2011
	(In thousands)
Canned and dry products	$	8,310,634	$	7,948,187	$	7,308,893
Fresh and frozen meats		8,242,423		7,929,235		7,163,505
Frozen fruits, vegetables, bakery and other		6,023,990		5,757,871		5,337,625
Dairy products		4,669,986		4,456,634		4,145,350
Poultry		4,580,445		4,188,787		3,912,510
Fresh produce		3,540,027		3,332,504		3,345,929
Paper and disposables		3,364,965		3,295,483		3,055,862
Seafood		2,167,588		2,076,848		1,929,417
Beverage products		1,643,034		1,591,540		1,478,456
Janitorial products		1,013,488		952,569		902,636
Equipment and smallwares		637,680		613,590		581,628
Medical supplies		216,973		237,691		161,678
Total	$	44,411,233	$	42,380,939	$	39,323,489

Information concerning geographic areas is as follows:



	Fiscal Year
	2013		2012		2011
	(In thousands)
Sales: ⁽¹⁾
United States	$	38,985,715	$	37,596,862	$	34,992,273
Canada		4,698,814		4,246,611		3,864,420
Other		726,704		537,466		466,796
Total	$	44,411,233	$	42,380,939	$	39,323,489
Long-lived assets:⁽²⁾
United States	$	3,593,346	$	3,564,854	$	3,161,724
Canada		307,605		291,304		321,185
Other		77,120		27,592		29,480
Total	$	3,978,071	$	3,883,750	$	3,512,389

⁽¹⁾Represents sales to external customers from businesses operating in these countries.

⁽²⁾Long-lived assets represents net property, plant and equipment reported in the country in which they are held.

SYSCO CORP | 2013 | FY |

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