Because no usage is specified in the DEFINE statements, PROC REPORT uses the defaults. The character variables (Sector, Manager, and Department) are display variables. Sales is an analysis variable that is used to calculate the sum statistic. FORMAT= specifies the formats to use in the report. 
   define sector / format=$sctrfmt.;
   define manager / format=$mgrfmt.;
   define department / format=$deptfmt.;
   define sales / format=dollar11.2;