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.
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Condensed Consolidating Balance Sheet |
|||||||||||||
|
|
June 29, 2013 |
|||||||||||||
|
|
Sysco |
|
U.S. |
|
Other |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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) |
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|
5,191,810 |
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Total liabilities and shareholders’ equity |
$ |
9,572,505 |
|
$ |
6,166,813 |
|
$ |
5,354,516 |
|
$ |
(8,429,887) |
|
$ |
12,663,947 |
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Condensed Consolidating Balance Sheet |
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June 30, 2012 |
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Sysco |
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U.S. |
|
Other |
|
Eliminations |
|
Consolidated Totals |
|||||
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(In thousands) |
|||||||||||||
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Current assets |
$ |
538,451 |
|
$ |
3,675,676 |
|
$ |
1,870,681 |
|
$ |
- |
|
$ |
6,084,808 |
|
Investment in subsidiaries |
|
10,334,147 |
|
|
- |
|
|
- |
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|
(10,334,147) |
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|
- |
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Plant and equipment, net |
|
703,658 |
|
|
1,923,925 |
|
|
1,256,167 |
|
|
- |
|
|
3,883,750 |
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Other assets |
|
324,839 |
|
|
532,922 |
|
|
1,310,888 |
|
|
- |
|
|
2,168,649 |
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Total assets |
$ |
11,901,095 |
|
$ |
6,132,523 |
|
$ |
4,437,736 |
|
$ |
(10,334,147) |
|
$ |
12,137,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
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Total liabilities and shareholders’ equity |
$ |
11,901,095 |
|
$ |
6,132,523 |
|
$ |
4,437,736 |
|
$ |
(10,334,147) |
|
$ |
12,137,207 |
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Condensed Consolidating Statement of Comprehensive Income |
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Year Ended June 29, 2013 |
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Sysco |
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U.S. |
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Other |
|
Eliminations |
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Consolidated Totals |
|||||
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(In thousands) |
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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) |
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|
7,867,591 |
|
Operating expenses |
|
694,323 |
|
|
3,610,907 |
|
|
2,020,726 |
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|
(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) |
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|
- |
|
Net earnings |
|
992,427 |
|
|
1,505,658 |
|
|
115,228 |
|
|
(1,620,886) |
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|
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 |
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|
|
|
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Condensed Consolidating Statement of Comprehensive Income |
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|
|
Year Ended June 30, 2012 |
|||||||||||||
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Sysco |
|
U.S. |
|
Other |
|
Eliminations |
|
Consolidated Totals |
|||||
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|
(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 |
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|
|
Year Ended July 2, 2011 |
|||||||||||||
|
|
Sysco |
|
U.S. |
|
Other |
|
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 |
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|
|
Year Ended June 29, 2013 |
||||||||||
|
|
Sysco |
|
U.S. |
|
Other |
|
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. |
|
Other |
|
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. |
|
Other |
|
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 |