Sysco 2011 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-away-from-home industry. We provide products and related services to approximately 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 $115.0 million to $39.3 billion in annual sales, both through internal
expansion of existing operations and through acquisitions.
Sysco’s fiscal year ends on the Saturday nearest to June 30th. This resulted in a 52-week year ending July 2, 2011 for fiscal 2011, a 53-week year
ending July 3, 2010 for fiscal 2010 and a 52-week year ending June 27, 2009 for 2009.
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-away-from-home industry. Under the accounting provisions related to
disclosures about segments of an enterprise, we have aggregated our operating companies into a number of segments, of which only Broadline
and SYGMA are reportable segments as defined by accounting standards. 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 chain restaurant customer locations. Our other segments include our specialty produce 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. 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 19, “Business Segment Information,” in the Notes to Consolidated Financial
Statements in Item 8.
Customers and Products
Sysco’s customers in the foodservice industry include restaurants, hospitals, schools, hotels, industrial caterers and other similar venues
where foodservice products are served. Services to our 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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