Sysco 2007 Annual Report Download - page 27

PART I
ITEM 1. Business
Unless this Form 10-K indicates otherwise or the context otherwise requires, the terms “we,”, “our,” “us,” “SYSCO,” or
“the company” as used in this Form 10-K refer to Sysco Corporation together with its consolidated subsidiaries and divisions.
OVERVIEW
Sysco Corporation, acting through its subsidiaries and divisions, is the largest North American distributor of food and
related products primarily to the foodservice or “food-prepared-away-from-home” industry. Founded in 1969, we provide
products and related services to approximately 391,000 customers, including restaurants, healthcare and educational
facilities, lodging establishments and other foodservice customers.
SYSCO, which was formed when the stockholders of nine companies exchanged their stock for SYSCO common stock,
commenced operations in March 1970. Since our formation, we have grown from $115 million to over $35 billion in annual
sales, both through internal expansion of existing operations and through acquisitions. Through the end of fiscal 2007,
we have acquired 141 companies or divisions of companies.
During fiscal 2007, we completed the acquisition of Bunn Capitol, a foodservice distributor located in Springfield, Illinois.
SYSCO Corporation is organized under the laws of Delaware. The address and telephone number of our executive offices
are 1390 Enclave Parkway, Houston, Texas 77077-2099, [phone]. This annual report on Form 10-K, as well as
all other reports filed or furnished by SYSCO pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
are available free of charge on SYSCO’s website at www.sysco.com as soon as reasonably practicable after they are
electronically filed with or furnished to the Securities and Exchange Commission.
OPERATING SEGMENTS
SYSCO provides food and related products to the foodservice or “food-prepared-away-from-home” industry. Under the
provisions of SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information” (SFAS 131), we have
aggregated our operating companies into a number of segments, of which only Broadline and SYGMA are reportable
segments as defined in SFAS 131. Broadline operating companies distribute a full line of food products and a wide variety
of non-food products to both our traditional and chain restaurant customers. SYGMA operating companies distribute a full
line of food products and a wide variety of non-food products to chain restaurant customer locations. “Other” financial
information is attributable to our other segments, including our specialty produce, custom-cut meat and lodging industry
products segments and a company that distributes to internationally located chain restaurants. Specialty produce
companies distribute fresh produce and, on a limited basis, other foodservice products. Specialty meat companies
distribute custom-cut fresh steaks, other meat, seafood and poultry. Our lodging industry products company distributes
personal care guest amenities, equipment, housekeeping supplies, room accessories and textiles to the lodging industry.
Selected financial data for each of our reportable segments as well as financial information concerning geographic areas
can be found in Note 17, Business Segment Information, in the Notes to Consolidated Financial Statements in Item 8.
CUSTOMERS AND PRODUCTS
The foodservice industry consists of two major customer types — “traditional” and “chain restaurant.” Traditional
foodservice customers include restaurants, hospitals, schools, hotels and industrial caterers. Our chain restaurant
customers include regional and national hamburger, sandwich, pizza, chicken, steak and other chain operations.
Services to our traditional foodservice and chain restaurant customers are supported by similar physical facilities,
vehicles, material handling equipment and techniques, and administrative and operating staffs.
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