SYSCO CORP | 2013 | FY | 3


 

22.  SUPPLEMENTAL GUARANTOR INFORMATION – SUBSIDIARY GUARANTEES

 

On January 19, 2011, the wholly-owned United States Broadline (U.S. Broadline) subsidiaries of Sysco Corporation entered into full and unconditional guarantees of all outstanding senior notes and debentures of Sysco Corporation.  Borrowings under the company’s revolving credit facility supporting the company’s U.S. and Canadian commercial paper programs are also covered by these guarantees.  As of June 29, 2013, Sysco had a total of approximately $2,820.5 million in senior notes, debentures and commercial paper outstanding that was covered by these guarantees.  All subsidiary guarantors are 100%-owned by the parent company, all guarantees are full and unconditional and all guarantees are joint and several, except that the guarantee of any subsidiary guarantor with respect to a series of senior notes or debentures may be released under certain customary circumstances.  If we exercise our defeasance option with respect to the senior notes or debentures of any series, then any subsidiary guarantor effectively will be released with respect to that series.  Further, each subsidiary guarantee will remain in full force and effect until the earliest to occur of the date, if any, on which (1) the applicable subsidiary guarantor shall consolidate with or merge into Sysco Corporation or any successor of Sysco Corporation and (2) Sysco Corporation or any successor of Sysco Corporation consolidates with or merges into the applicable subsidiary guarantor. 

 

The following condensed consolidating financial statements present separately the financial position, comprehensive income and cash flows of the parent issuer (Sysco Corporation), the guarantors (the majority of Sysco’s U.S. Broadline subsidiaries) and all other non-guarantor subsidiaries of Sysco (Other Non-Guarantor Subsidiaries) on a combined basis with eliminating entries. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Balance Sheet

 

June 29, 2013

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated Totals

 

(In thousands)

Current assets

$

276,713 

 

$

3,746,192 

 

$

2,184,522 

 

$

 -

 

$

6,207,427 

Investment in subsidiaries

 

8,429,887 

 

 

 -

 

 

 -

 

 

(8,429,887)

 

 

 -

Plant and equipment,  net

 

540,860 

 

 

1,885,908 

 

 

1,551,303 

 

 

 -

 

 

3,978,071 

Other assets

 

325,045 

 

 

534,713 

 

 

1,618,691 

 

 

 -

 

 

2,478,449 

Total assets

$

9,572,505 

 

$

6,166,813 

 

$

5,354,516 

 

$

(8,429,887)

 

$

12,663,947 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$

664,366 

 

$

928,824 

 

$

2,156,092 

 

$

 -

 

$

3,749,282 

Intercompany payables (receivables)

 

594,928 

 

 

(1,003,219)

 

 

408,291 

 

 

 -

 

 

 -

Long-term debt

 

2,606,612 

 

 

10,422 

 

 

22,952 

 

 

 -

 

 

2,639,986 

Other liabilities

 

514,789 

 

 

414,623 

 

 

153,457 

 

 

 -

 

 

1,082,869 

Shareholders’ equity  

 

5,191,810 

 

 

5,816,163 

 

 

2,613,724 

 

 

(8,429,887)

 

 

5,191,810 

Total liabilities and  shareholders’ equity

$

9,572,505 

 

$

6,166,813 

 

$

5,354,516 

 

$

(8,429,887)

 

$

12,663,947 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Balance Sheet

 

June 30, 2012

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated Totals

 

(In thousands)

Current assets

$

538,451 

 

$

3,675,676 

 

$

1,870,681 

 

$

 -

 

$

6,084,808 

Investment in subsidiaries

 

10,334,147 

 

 

 -

 

 

 -

 

 

(10,334,147)

 

 

 -

Plant and equipment,  net

 

703,658 

 

 

1,923,925 

 

 

1,256,167 

 

 

 -

 

 

3,883,750 

Other assets

 

324,839 

 

 

532,922 

 

 

1,310,888 

 

 

 -

 

 

2,168,649 

Total assets

$

11,901,095 

 

$

6,132,523 

 

$

4,437,736 

 

$

(10,334,147)

 

$

12,137,207 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$

678,527 

 

$

900,416 

 

$

1,844,636 

 

$

 -

 

$

3,423,579 

Intercompany payables (receivables)

 

3,068,001 

 

 

(3,334,860)

 

 

266,859 

 

 

 -

 

 

 -

Long-term debt

 

2,714,415 

 

 

25,459 

 

 

23,814 

 

 

 -

 

 

2,763,688 

Other liabilities

 

755,112 

 

 

396,659 

 

 

113,129 

 

 

 -

 

 

1,264,900 

Shareholders’ equity  

 

4,685,040 

 

 

8,144,849 

 

 

2,189,298 

 

 

(10,334,147)

 

 

4,685,040 

Total liabilities and  shareholders’ equity

$

11,901,095 

 

$

6,132,523 

 

$

4,437,736 

 

$

(10,334,147)

 

$

12,137,207 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

Year Ended June 29, 2013

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated Totals

 

(In thousands)

Sales

$

 -

 

$

30,162,329 

 

$

15,335,180 

 

$

(1,086,276)

 

$

44,411,233 

Cost of sales

 

 -

 

 

24,385,677 

 

 

13,127,398 

 

 

(969,433)

 

 

36,543,642 

Gross profit

 

 -

 

 

5,776,652 

 

 

2,207,782 

 

 

(116,843)

 

 

7,867,591 

Operating expenses

 

694,323 

 

 

3,610,907 

 

 

2,020,726 

 

 

(116,843)

 

 

6,209,113 

Operating income (loss)

 

(694,323)

 

 

2,165,745 

 

 

187,056 

 

 

 -

 

 

1,658,478 

Interest expense (income)

 

298,474 

 

 

(177,421)

 

 

7,442 

 

 

 -

 

 

128,495 

Other expense (income), net

 

(12,864)

 

 

(4,554)

 

 

(54)

 

 

 -

 

 

(17,472)

Earnings (losses) before income taxes

 

(979,933)

 

 

2,347,720 

 

 

179,668 

 

 

 -

 

 

1,547,455 

Income tax (benefit) provision

 

(351,474)

 

 

842,062 

 

 

64,440 

 

 

 -

 

 

555,028 

Equity in earnings of subsidiaries

 

1,620,886 

 

 

 -

 

 

 -

 

 

(1,620,886)

 

 

 -

Net earnings

 

992,427 

 

 

1,505,658 

 

 

115,228 

 

 

(1,620,886)

 

 

992,427 

Other comprehensive income (loss)

 

215,929 

 

 

 -

 

 

(33,191)

 

 

33,191 

 

 

215,929 

Comprehensive income

$

1,208,356 

 

$

1,505,658 

 

$

82,037 

 

$

(1,587,695)

 

$

1,208,356 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

Year Ended June 30, 2012

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated Totals

 

(In thousands)

Sales

$

 -

 

$

29,100,106 

 

$

14,131,162 

 

$

(850,329)

 

$

42,380,939 

Cost of sales

 

 -

 

 

23,374,199 

 

 

12,089,441 

 

 

(759,278)

 

 

34,704,362 

Gross profit

 

 -

 

 

5,725,907 

 

 

2,041,721 

 

 

(91,051)

 

 

7,676,577 

Operating expenses

 

527,888 

 

 

3,534,382 

 

 

1,814,726 

 

 

(91,051)

 

 

5,785,945 

Operating income (loss)

 

(527,888)

 

 

2,191,525 

 

 

226,995 

 

 

 -

 

 

1,890,632 

Interest expense (income)

 

396,374 

 

 

(281,193)

 

 

(1,785)

 

 

 -

 

 

113,396 

Other expense (income), net

 

(6,993)

 

 

(1,244)

 

 

1,471 

 

 

 -

 

 

(6,766)

Earnings (losses) before income taxes

 

(917,269)

 

 

2,473,962 

 

 

227,309 

 

 

 -

 

 

1,784,002 

Income tax (benefit) provision

 

(340,592)

 

 

918,607 

 

 

84,402 

 

 

 -

 

 

662,417 

Equity in earnings of subsidiaries

 

1,698,262 

 

 

 -

 

 

 -

 

 

(1,698,262)

 

 

 -

Net earnings

 

1,121,585 

 

 

1,555,355 

 

 

142,907 

 

 

(1,698,262)

 

 

1,121,585 

Other comprehensive income (loss)

 

(402,908)

 

 

 -

 

 

(81,003)

 

 

81,003 

 

 

(402,908)

Comprehensive income

$

718,677 

 

$

1,555,355 

 

$

61,904 

 

$

(1,617,259)

 

$

718,677 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

Year Ended July 2, 2011

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated Totals

 

(In thousands)

Sales

$

 -

 

$

27,138,172 

 

$

12,861,426 

 

$

(676,109)

 

$

39,323,489 

Cost of sales

 

 -

 

 

21,591,829 

 

 

10,923,446 

 

 

(586,498)

 

 

31,928,777 

Gross profit

 

 -

 

 

5,546,343 

 

 

1,937,980 

 

 

(89,611)

 

 

7,394,712 

Operating expenses

 

535,224 

 

 

3,455,148 

 

 

1,562,449 

 

 

(89,611)

 

 

5,463,210 

Operating income (loss)

 

(535,224)

 

 

2,091,195 

 

 

375,531 

 

 

 -

 

 

1,931,502 

Interest expense (income)

 

453,593 

 

 

(332,561)

 

 

(2,765)

 

 

 -

 

 

118,267 

Other expense (income), net

 

(5,581)

 

 

(4,636)

 

 

(4,002)

 

 

 -

 

 

(14,219)

Earnings (losses) before income taxes

 

(983,236)

 

 

2,428,392 

 

 

382,298 

 

 

 -

 

 

1,827,454 

Income tax (benefit) provision

 

(363,403)

 

 

897,529 

 

 

141,298 

 

 

 -

 

 

675,424 

Equity in earnings of subsidiaries

 

1,771,863 

 

 

 -

 

 

 -

 

 

(1,771,863)

 

 

 -

Net earnings

 

1,152,030 

 

 

1,530,863 

 

 

241,000 

 

 

(1,771,863)

 

 

1,152,030 

Other comprehensive income (loss)

 

220,293 

 

 

 -

 

 

122,217 

 

 

(122,217)

 

 

220,293 

Comprehensive income

$

1,372,323 

 

$

1,530,863 

 

$

363,217 

 

$

(1,894,080)

 

$

1,372,323 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

Year Ended June 29, 2013

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated Totals

 

(In thousands)

Net cash provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$

(449,417)

 

$

1,705,950 

 

$

255,061 

 

$

1,511,594 

Investing activities

 

(105,314)

 

 

(140,217)

 

 

(666,351)

 

 

(911,882)

Financing activities

 

(887,707)

 

 

(15,666)

 

 

29,165 

 

 

(874,208)

Effect of exchange rate on cash

 

 -

 

 

 -

 

 

(2,086)

 

 

(2,086)

Intercompany activity

 

1,178,922 

 

 

(1,560,250)

 

 

381,328 

 

 

 -

Net increase (decrease) in cash and cash equivalents

 

(263,516)

 

 

(10,183)

 

 

(2,883)

 

 

(276,582)

Cash and cash equivalents at beginning of the period

 

471,107 

 

 

34,478 

 

 

183,282 

 

 

688,867 

Cash and cash equivalents at end of the period

$

207,591 

 

$

24,295 

 

$

180,399 

 

$

412,285 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

Year Ended June 30, 2012

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated Totals

 

(In thousands)

Net cash provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$

(413,535)

 

$

1,674,817 

 

$

142,898 

 

$

1,404,180 

Investing activities

 

(222,483)

 

 

(367,909)

 

 

(313,237)

 

 

(903,629)

Financing activities

 

(58,168)

 

 

(2,038)

 

 

(382,443)

 

 

(442,649)

Effect of exchange rate on cash

 

 -

 

 

 -

 

 

(8,800)

 

 

(8,800)

Intercompany activity

 

859,780 

 

 

(1,302,546)

 

 

442,766 

 

 

 -

Net increase (decrease) in cash and cash equivalents

 

165,594 

 

 

2,324 

 

 

(118,816)

 

 

49,102 

Cash and cash equivalents at beginning of the period

 

305,513 

 

 

32,154 

 

 

302,098 

 

 

639,765 

Cash and cash equivalents at end of the period

$

471,107 

 

$

34,478 

 

$

183,282 

 

$

688,867 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

Year Ended July 2, 2011

 

Sysco

 

U.S.
Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated Totals

 

(In thousands)

Net cash provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$

(491,211)

 

$

1,243,884 

 

$

338,845 

 

$

1,091,518 

Investing activities

 

(203,090)

 

 

(318,382)

 

 

(158,084)

 

 

(679,556)

Financing activities

 

(555,282)

 

 

1,263 

 

 

176,112 

 

 

(377,907)

Effect of exchange rate on cash

 

 -

 

 

 -

 

 

20,267 

 

 

20,267 

Intercompany activity

 

1,181,573 

 

 

(926,546)

 

 

(255,027)

 

 

 -

Net increase (decrease) in cash and cash equivalents

 

(68,010)

 

 

219 

 

 

122,113 

 

 

54,322 

Cash and cash equivalents at beginning of the period

 

373,523 

 

 

31,935 

 

 

179,985 

 

 

585,443 

Cash and cash equivalents at end of the period

$

305,513 

 

$

32,154 

 

$

302,098 

 

$

639,765 

 


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