” the following discussion includes a comparison of our results of operations and liquidity and capital resources for fiscal 2019 and fiscal 2018. a discussion of changes in our results of operations from fiscal 2017 to fiscal 2018 has been omitted from this form 10-k , but may be found in “ item 7. management 's discussion and analysis of financial condition and results of operations ” of our form 10-k for the fiscal year ended june 30 , 2018 , filed with the securities and exchange commission on august 24 , 2018. overview sysco distributes food and related products to restaurants , healthcare and educational facilities , lodging establishments and other foodservice customers . our primary operations are located in north america and europe . the company has aggregated certain operating segments into three reportable segments . “ other ” financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds . u.s. foodservice operations - primarily includes u.s. broadline operations , which distribute a full line of food products , including custom-cut meat , seafood , specialty produce , specialty imports and a wide variety of non-food products ; international foodservice operations - includes operations in the americas and europe , which distribute a full line of food products and a wide variety of non-food products . the americas primarily consists of operations in canada , bahamas , mexico , costa rica and panama , as well as our operations that distribute to international customers . our european operations primarily consist of operations in the united kingdom ( u.k. ) , france , ireland and sweden ; sygma - our u.s. customized distribution subsidiary ; and other - primarily our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs . we estimate that we serve about 16 % of an approximately $ 300 billion annual foodservice market in the u.s. based on industry data obtained from technomic , inc. from time to time , technomic may revise the methodology used to calculate the size of the foodservice market and , as a result , our percentage can change not only from our sales results , but also from such revisions . we also serve certain international geographies that vary in size and amount of market share . 21 according to industry sources , the foodservice , or food-away-from-home , market represents approximately 52 % of the total dollars spent on food purchases made at the consumer level in the u.s. as of the end of calendar year 2018 . industry sources estimate the total foodservice market in the u.s. experienced a real sales increase of approximately 1.2 % in calendar year 2018 and 1.4 % in calendar year 2017 . real sales changes do not include the impact of inflation or deflation . highlights and trends our fiscal year 2019 financial performance improved year-over-year . we continue to focus on our customers and furthering the progress of our transformative initiatives that we believe will position us well for long-term growth and create value for our shareholders in fiscal 2020 and beyond . below is a comparison of results from fiscal 2019 to fiscal 2018 : sales : ◦ increased 2.4 % , or $ 1.4 billion , to $ 60.1 billion ; operating income : ◦ increased 0.7 % , or $ 16.1 million , to $ 2.3 billion ; ◦ adjusted operating income increased 7.9 % , or $ 199.9 million , to $ 2.7 billion ; net earnings : ◦ increased 17.0 % , or $ 243.5 million , to $ 1.7 billion ; ◦ adjusted net earnings increased 11.9 % , or $ 197.0 million , to $ 1.9 billion ; basic earnings per share : ◦ increased 18.2 % , or $ 0.50 , to $ 3.24 from the comparable prior year amount of $ 2.74 per share ; diluted earnings per share : ◦ increased 18.3 % , or $ 0.50 , to $ 3.20 from the comparable prior year amount of $ 2.70 per share ; and ◦ adjusted diluted earnings per share were $ 3.55 in fiscal 2019 , a 13.1 % increase from the comparable prior year amount of $ 3.14 per share . the overall macroeconomic trends continue to be positive in the u.s. , and the underlying economic picture remains relatively positive , including growth in gross domestic product of 2.1 % for the second quarter of calendar year 2019 and continued low unemployment , which was 3.7 % in july . consumer confidence has decreased slightly , but remains solid . these factors are important macroeconomic indicators that describe the environment in which our customers are currently operating and speak to the relative health of the food-away-from-home market . restaurant industry trends reflect same store sales that were relatively flat in june , while customer traffic continues to be negative . the economic outlook in the international geographies in which we operate is mostly positive ; however , the u.k. is experiencing low consumer confidence due to the uncertain outcome of brexit . our sales and gross profit performance can be influenced by multiple factors , including price , volume and product mix . the modest level of growth in the foodservice market has created additional competitive pricing pressures , which can adversely affect our profitability . the majority of our sales are to locally managed customers and national customers . our locally managed customers , including independent restaurant customers , represent a greater percentage of our profitability as compared to national customers . case growth with our locally managed broadline business is important to drive gross profit dollar growth . we are maintaining our focus on growing our digital platform to continue the growth with our local customers . story_separator_special_tag operating expenses increased $ 23.6 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to restructuring charges , largely in france , and supply chain transformation costs in the u.k. these activities resulted in restructuring charges that were combined with our brakes acquisition-related costs that are included within certain items . we incurred restructuring charges of $ 61.1 million relating to our france integration during fiscal 2019 . operating expense , on an adjusted basis , decreased 3.7 % , or $ 79.1 million , compared to fiscal 2018 . we have also begun to leverage broader sysco capabilities and processes to deliver improved synergies across europe . additionally , our regionalization efforts in canada continue to deliver benefits and have helped to drive improved cost performance . changes in exchange rates used to translate our foreign operating expenses into u.s. dollars further contributed to a decrease in operating expenses . results of sygma and other segment sygma operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations . sales sales were 4.8 % lower in fiscal 2019 than in fiscal 2018 . the decrease for fiscal 2019 was primarily attributable to a modest decline in case volumes , as we continue to focus on improving overall profitability . 28 operating income operating income increased by 14.2 % in fiscal 2019 , as compared to fiscal 2018 , due to improved gross margins and solid expense management . gross margin increased 30 basis points driven by higher product margins , while operating expenses decreased 1.9 % in fiscal 2019 , as compared to fiscal 2018 . operating expenses decreased in fiscal 2019 largely due to decreases in transportation costs , primarily resulting from our focus on removing unproductive miles and streamlining operations at under-performing locations . “ other ” segment information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds , primarily including our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provides support for some of our business technology needs . operating income decreased 9.2 % , or $ 3.6 million , in fiscal 2019 , as compared to fiscal 2018 . the decrease was primarily attributable to unfavorable results from our hotel supply operations , partially offset by improved results from sysco labs . guest supply gross profit grew 2.3 % , while operating expenses grew 7.1 % during fiscal 2019 . corporate expenses corporate expenses in fiscal 2019 increased $ 67.2 million , or 6.9 % , as compared to fiscal 2018 , due primarily to an increase in expenses related to our business technology initiatives , including accelerated depreciation on certain enterprise resource planning ( erp ) systems and software platforms that we are no longer using , along with higher pay-related expenses , partly driven by higher severance and relocation charges . corporate expenses , on an adjusted basis , decreased $ 12.9 million , or 1.5 % , as compared to fiscal 2018. certain items impacting fiscal 2019 totaled $ 171.1 million and were primarily expenses associated with our business transformation initiatives , as well as severance charges associated with our organizational changes , as compared to $ 91.0 million in fiscal 2018 . interest expense interest expense decreased $ 35.1 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to a favorable comparison to the prior year as a result of the redemption of certain series of senior notes and debentures pursuant to a tender offer in fiscal 2018. interest charges related to the redemption costs noted above are considered certain items . excluding certain items , our interest expense increased $ 18.0 million in fiscal 2019 from fiscal 2018 , due to higher floating interest rates and a higher average balance of fixed rate debt . net earnings net earnings increased 17.0 % in fiscal 2019 , as compared to the prior year , due primarily to the items noted above for operating income and interest expense , as well as items impacting our income taxes that are discussed in note 20 , “ income taxes , ” in the notes to consolidated financial statements in item 8. these included the favorable impact of foreign tax credits generated as a result of distributions to sysco from our foreign operations at the end of fiscal 2018 , lower u.s. tax rates resulting from the enactment of the tax act and the favorable impact of excess tax benefits of equity-based compensation . adjusted net earnings increased 11.9 % in fiscal 2019 , primarily due to gross profit growth and favorable expense growth , including reduced administrative expense , partially offset by increased interest expense , which resulted in earnings growth that exceeded our operating income growth . earnings per share basic earnings per share in fiscal 2019 were $ 3.24 , an 18.2 % increase from the fiscal 2018 amount of $ 2.74 per share . diluted earnings per share in fiscal 2019 were $ 3.20 , an 18.3 % increase from the fiscal 2018 amount of $ 2.70 per share . adjusted diluted earnings per share in fiscal 2019 were $ 3.55 , a 13.1 % increase from the fiscal 2018 amount of $ 3.14 per share . these results were primarily attributable to the factors discussed above related to net earnings and a decrease in outstanding shares that resulted from our share repurchases in fiscal 2019 and fiscal 2018 . non-gaap reconciliations our discussion below and elsewhere herein of our results includes certain non-gaap financial measures that we believe provide important perspective with respect to underlying business trends . other than free cash flow , any non-gaap financial measures will be denoted as adjusted measures and exclude the impact from restructuring and transformational project costs consisting of : ( 1

debt activity and borrowing availability our debt activity , including issuances and repayments , and our borrowing availability is described in note 13 , “ debt and other financing arrangements , ” in the notes to consolidated financial statements in item 8. our outstanding borrowings at june 29 , 2019 , and repayment activity since the end of fiscal 2019 are disclosed within those notes . updated amounts at august 9 , 2019 , include : $ 466.2 million outstanding from our commercial paper program ; and no amounts outstanding from the credit facility supporting the company 's u.s. commercial paper program . our aggregate commercial paper issuances and short-term bank borrowings had weighted average interest rates of 2.47 % for fiscal 2019 and 1.71 % for fiscal 2018 . off-balance sheet arrangements we have no off-balance sheet arrangements . 38 contractual obligations the following table sets forth , as of june 29 , 2019 , certain information concerning our obligations and commitments to make contractual future payments : replace_table_token_18_th ( 1 ) the estimate of the timing of future payments under the executive deferred compensation plan and management savings plan involves the use of certain assumptions , including retirement ages and payout periods . ( 2 ) includes estimated contributions to the unfunded supplemental executive retirement plan ( serp ) and other postretirement benefit plans made in amounts needed to fund benefit payments for vested participants in these plans through fiscal 2029 , based on actuarial assumptions . ( 3 ) unrecognized tax benefits relate to uncertain tax positions recorded under accounting standards related to uncertain tax positions . as of june 29 , 2019 , we had a liability of $ 26.1 million for unrecognized tax benefits for all tax jurisdictions and $ 4.6 million for related interest that could result in cash payment , of which $ 10.9 million could settle in cash . we are not able to reasonably estimate the timing of payments or the amount by which the liability will increase or decrease over time . accordingly , the related balances have not been reflected in the “ payments due by period ” section of the table .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```debt activity and borrowing availability our debt activity , including issuances and repayments , and our borrowing availability is described in note 13 , “ debt and other financing arrangements , ” in the notes to consolidated financial statements in item 8. our outstanding borrowings at june 29 , 2019 , and repayment activity since the end of fiscal 2019 are disclosed within those notes . updated amounts at august 9 , 2019 , include : $ 466.2 million outstanding from our commercial paper program ; and no amounts outstanding from the credit facility supporting the company 's u.s. commercial paper program . our aggregate commercial paper issuances and short-term bank borrowings had weighted average interest rates of 2.47 % for fiscal 2019 and 1.71 % for fiscal 2018 . off-balance sheet arrangements we have no off-balance sheet arrangements . 38 contractual obligations the following table sets forth , as of june 29 , 2019 , certain information concerning our obligations and commitments to make contractual future payments : replace_table_token_18_th ( 1 ) the estimate of the timing of future payments under the executive deferred compensation plan and management savings plan involves the use of certain assumptions , including retirement ages and payout periods . ( 2 ) includes estimated contributions to the unfunded supplemental executive retirement plan ( serp ) and other postretirement benefit plans made in amounts needed to fund benefit payments for vested participants in these plans through fiscal 2029 , based on actuarial assumptions . ( 3 ) unrecognized tax benefits relate to uncertain tax positions recorded under accounting standards related to uncertain tax positions . as of june 29 , 2019 , we had a liability of $ 26.1 million for unrecognized tax benefits for all tax jurisdictions and $ 4.6 million for related interest that could result in cash payment , of which $ 10.9 million could settle in cash . we are not able to reasonably estimate the timing of payments or the amount by which the liability will increase or decrease over time . accordingly , the related balances have not been reflected in the “ payments due by period ” section of the table .
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 Suspicious Activity Report : ” the following discussion includes a comparison of our results of operations and liquidity and capital resources for fiscal 2019 and fiscal 2018. a discussion of changes in our results of operations from fiscal 2017 to fiscal 2018 has been omitted from this form 10-k , but may be found in “ item 7. management 's discussion and analysis of financial condition and results of operations ” of our form 10-k for the fiscal year ended june 30 , 2018 , filed with the securities and exchange commission on august 24 , 2018. overview sysco distributes food and related products to restaurants , healthcare and educational facilities , lodging establishments and other foodservice customers . our primary operations are located in north america and europe . the company has aggregated certain operating segments into three reportable segments . “ other ” financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds . u.s. foodservice operations - primarily includes u.s. broadline operations , which distribute a full line of food products , including custom-cut meat , seafood , specialty produce , specialty imports and a wide variety of non-food products ; international foodservice operations - includes operations in the americas and europe , which distribute a full line of food products and a wide variety of non-food products . the americas primarily consists of operations in canada , bahamas , mexico , costa rica and panama , as well as our operations that distribute to international customers . our european operations primarily consist of operations in the united kingdom ( u.k. ) , france , ireland and sweden ; sygma - our u.s. customized distribution subsidiary ; and other - primarily our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs . we estimate that we serve about 16 % of an approximately $ 300 billion annual foodservice market in the u.s. based on industry data obtained from technomic , inc. from time to time , technomic may revise the methodology used to calculate the size of the foodservice market and , as a result , our percentage can change not only from our sales results , but also from such revisions . we also serve certain international geographies that vary in size and amount of market share . 21 according to industry sources , the foodservice , or food-away-from-home , market represents approximately 52 % of the total dollars spent on food purchases made at the consumer level in the u.s. as of the end of calendar year 2018 . industry sources estimate the total foodservice market in the u.s. experienced a real sales increase of approximately 1.2 % in calendar year 2018 and 1.4 % in calendar year 2017 . real sales changes do not include the impact of inflation or deflation . highlights and trends our fiscal year 2019 financial performance improved year-over-year . we continue to focus on our customers and furthering the progress of our transformative initiatives that we believe will position us well for long-term growth and create value for our shareholders in fiscal 2020 and beyond . below is a comparison of results from fiscal 2019 to fiscal 2018 : sales : ◦ increased 2.4 % , or $ 1.4 billion , to $ 60.1 billion ; operating income : ◦ increased 0.7 % , or $ 16.1 million , to $ 2.3 billion ; ◦ adjusted operating income increased 7.9 % , or $ 199.9 million , to $ 2.7 billion ; net earnings : ◦ increased 17.0 % , or $ 243.5 million , to $ 1.7 billion ; ◦ adjusted net earnings increased 11.9 % , or $ 197.0 million , to $ 1.9 billion ; basic earnings per share : ◦ increased 18.2 % , or $ 0.50 , to $ 3.24 from the comparable prior year amount of $ 2.74 per share ; diluted earnings per share : ◦ increased 18.3 % , or $ 0.50 , to $ 3.20 from the comparable prior year amount of $ 2.70 per share ; and ◦ adjusted diluted earnings per share were $ 3.55 in fiscal 2019 , a 13.1 % increase from the comparable prior year amount of $ 3.14 per share . the overall macroeconomic trends continue to be positive in the u.s. , and the underlying economic picture remains relatively positive , including growth in gross domestic product of 2.1 % for the second quarter of calendar year 2019 and continued low unemployment , which was 3.7 % in july . consumer confidence has decreased slightly , but remains solid . these factors are important macroeconomic indicators that describe the environment in which our customers are currently operating and speak to the relative health of the food-away-from-home market . restaurant industry trends reflect same store sales that were relatively flat in june , while customer traffic continues to be negative . the economic outlook in the international geographies in which we operate is mostly positive ; however , the u.k. is experiencing low consumer confidence due to the uncertain outcome of brexit . our sales and gross profit performance can be influenced by multiple factors , including price , volume and product mix . the modest level of growth in the foodservice market has created additional competitive pricing pressures , which can adversely affect our profitability . the majority of our sales are to locally managed customers and national customers . our locally managed customers , including independent restaurant customers , represent a greater percentage of our profitability as compared to national customers . case growth with our locally managed broadline business is important to drive gross profit dollar growth . we are maintaining our focus on growing our digital platform to continue the growth with our local customers . story_separator_special_tag operating expenses increased $ 23.6 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to restructuring charges , largely in france , and supply chain transformation costs in the u.k. these activities resulted in restructuring charges that were combined with our brakes acquisition-related costs that are included within certain items . we incurred restructuring charges of $ 61.1 million relating to our france integration during fiscal 2019 . operating expense , on an adjusted basis , decreased 3.7 % , or $ 79.1 million , compared to fiscal 2018 . we have also begun to leverage broader sysco capabilities and processes to deliver improved synergies across europe . additionally , our regionalization efforts in canada continue to deliver benefits and have helped to drive improved cost performance . changes in exchange rates used to translate our foreign operating expenses into u.s. dollars further contributed to a decrease in operating expenses . results of sygma and other segment sygma operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations . sales sales were 4.8 % lower in fiscal 2019 than in fiscal 2018 . the decrease for fiscal 2019 was primarily attributable to a modest decline in case volumes , as we continue to focus on improving overall profitability . 28 operating income operating income increased by 14.2 % in fiscal 2019 , as compared to fiscal 2018 , due to improved gross margins and solid expense management . gross margin increased 30 basis points driven by higher product margins , while operating expenses decreased 1.9 % in fiscal 2019 , as compared to fiscal 2018 . operating expenses decreased in fiscal 2019 largely due to decreases in transportation costs , primarily resulting from our focus on removing unproductive miles and streamlining operations at under-performing locations . “ other ” segment information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds , primarily including our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provides support for some of our business technology needs . operating income decreased 9.2 % , or $ 3.6 million , in fiscal 2019 , as compared to fiscal 2018 . the decrease was primarily attributable to unfavorable results from our hotel supply operations , partially offset by improved results from sysco labs . guest supply gross profit grew 2.3 % , while operating expenses grew 7.1 % during fiscal 2019 . corporate expenses corporate expenses in fiscal 2019 increased $ 67.2 million , or 6.9 % , as compared to fiscal 2018 , due primarily to an increase in expenses related to our business technology initiatives , including accelerated depreciation on certain enterprise resource planning ( erp ) systems and software platforms that we are no longer using , along with higher pay-related expenses , partly driven by higher severance and relocation charges . corporate expenses , on an adjusted basis , decreased $ 12.9 million , or 1.5 % , as compared to fiscal 2018. certain items impacting fiscal 2019 totaled $ 171.1 million and were primarily expenses associated with our business transformation initiatives , as well as severance charges associated with our organizational changes , as compared to $ 91.0 million in fiscal 2018 . interest expense interest expense decreased $ 35.1 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to a favorable comparison to the prior year as a result of the redemption of certain series of senior notes and debentures pursuant to a tender offer in fiscal 2018. interest charges related to the redemption costs noted above are considered certain items . excluding certain items , our interest expense increased $ 18.0 million in fiscal 2019 from fiscal 2018 , due to higher floating interest rates and a higher average balance of fixed rate debt . net earnings net earnings increased 17.0 % in fiscal 2019 , as compared to the prior year , due primarily to the items noted above for operating income and interest expense , as well as items impacting our income taxes that are discussed in note 20 , “ income taxes , ” in the notes to consolidated financial statements in item 8. these included the favorable impact of foreign tax credits generated as a result of distributions to sysco from our foreign operations at the end of fiscal 2018 , lower u.s. tax rates resulting from the enactment of the tax act and the favorable impact of excess tax benefits of equity-based compensation . adjusted net earnings increased 11.9 % in fiscal 2019 , primarily due to gross profit growth and favorable expense growth , including reduced administrative expense , partially offset by increased interest expense , which resulted in earnings growth that exceeded our operating income growth . earnings per share basic earnings per share in fiscal 2019 were $ 3.24 , an 18.2 % increase from the fiscal 2018 amount of $ 2.74 per share . diluted earnings per share in fiscal 2019 were $ 3.20 , an 18.3 % increase from the fiscal 2018 amount of $ 2.70 per share . adjusted diluted earnings per share in fiscal 2019 were $ 3.55 , a 13.1 % increase from the fiscal 2018 amount of $ 3.14 per share . these results were primarily attributable to the factors discussed above related to net earnings and a decrease in outstanding shares that resulted from our share repurchases in fiscal 2019 and fiscal 2018 . non-gaap reconciliations our discussion below and elsewhere herein of our results includes certain non-gaap financial measures that we believe provide important perspective with respect to underlying business trends . other than free cash flow , any non-gaap financial measures will be denoted as adjusted measures and exclude the impact from restructuring and transformational project costs consisting of : ( 1

