Sysco 2008 Annual Report Download - page 25

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. We provide products and related services to over 400,000
customers, including restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
Founded in 1969, SYSCO commenced operations as a public company in March 1970 when the stockholders of nine companies
exchanged their stock for SYSCO common stock. Since our formation, we have grown from $115 million to over $37 billion in annual sales,
both through internal expansion of existing operations and through acquisitions. Through the end of fiscal 2008, we have acquired
145 companies or divisions of companies.
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 international customers. 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, house-
keeping 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 19, 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, ethnic 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.
The products we distribute include:
• a full line of frozen foods, such as meats, fully prepared entrees, fruits, vegetables and desserts;
• a full line of canned and dry foods;
• fresh meats;
• dairy products;
• beverage products;
• imported specialties; and
• fresh produce.
We also supply a wide variety of non-food items, including:
• paper products such as disposable napkins, plates and cups;
• tableware such as china and silverware;
• cookware such as pots, pans and utensils;
• restaurant and kitchen equipment and supplies; and
• cleaning supplies.
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