

NOTE 16		GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

Our Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by J.M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”), which are 100 percent wholly-owned subsidiaries of the Company. A subsidiary guarantor will be released from its obligations under the indentures governing the notes (a) with respect to each series of notes, if we exercise our legal or covenant defeasance option with respect to such series of notes or if our obligations under an indenture are discharged in accordance with the terms of such indenture in respect of such series of notes; (b) with respect to all series of notes issued in March 2015, upon the issuance, sale, exchange, transfer, or other disposition (including through merger, consolidation, amalgamation, or otherwise) of the capital stock of the applicable subsidiary guarantor (including any issuance, sale, exchange, transfer, or other disposition following which the applicable subsidiary guarantor is no longer a subsidiary) if such issuance, sale, exchange, transfer, or other disposition is made in a manner not in violation of the indenture in respect of such series of notes; or (c) with respect to all series of notes, upon the substantially simultaneous release or discharge of the guarantee by such subsidiary guarantor of all of our primary senior indebtedness other than through discharges as a result of payment by such guarantor on such guarantees.

Condensed consolidating financial statements for the Company, the subsidiary guarantors, and the other subsidiaries of the Company that are not guaranteeing the indebtedness under the Senior Notes (the “non-guarantor subsidiaries”) are provided below. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with our

100 percent wholly-owned subsidiary guarantors and non-guarantor subsidiaries. We have accounted for investments in subsidiaries using the equity method.



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME						Year Ended April 30, 2017
	The J. M. Smucker Company (Parent)				Subsidiary Guarantors				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net sales		$	2,968.6			$	1,177.6			$	9,379.9			$	(6,133.8	)		$	7,392.3
Cost of products sold		2,393.1				1,070.0				7,223.7				(6,129.8		)		4,557.0
Gross Profit		575.5				107.6				2,156.2				(4.0		)		2,835.3
Selling, distribution, and administrative expenses and other special project costs		318.8				40.0				1,108.8				—				1,467.6
Amortization		10.5				—				196.8				—				207.3
Impairment charges		—				—				133.2				—				133.2
Other operating expense (income) – net		1.2				1.0				(6.5		)		—				(4.3		)
Operating Income		245.0				66.6				723.9				(4.0		)		1,031.5
Interest (expense) income – net		(164.1		)		1.2				(0.2		)		—				(163.1		)
Other income (expense) – net		11.6				2.8				(4.4		)		—				10.0
Equity in net earnings of subsidiaries		492.2				147.0				69.4				(708.6		)		—
Income Before Income Taxes		584.7				217.6				788.7				(712.6		)		878.4
Income taxes		(7.6		)		0.4				293.3				—				286.1
Net Income		$	592.3			$	217.2			$	495.4			$	(712.6	)		$	592.3
Other comprehensive income (loss), net of tax		5.0				2.1				(31.1		)		29.0				5.0
Comprehensive Income		$	597.3			$	219.3			$	464.3			$	(683.6	)		$	597.3
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME						Year Ended April 30, 2016
	The J. M. Smucker Company (Parent)				Subsidiary Guarantors				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net sales		$	3,155.3			$	1,184.5			$	8,724.9			$	(5,253.5	)		$	7,811.2
Cost of products sold		2,468.0				1,083.3				6,549.6				(5,257.5		)		4,843.4
Gross Profit		687.3				101.2				2,175.3				4.0				2,967.8
Selling, distribution, and administrative expenses and other special project costs		290.9				40.5				1,314.8				—				1,646.2
Amortization		4.2				—				204.2				—				208.4
Other operating (income) expense – net		(25.2		)		1.1				(8.0		)		—				(32.1		)
Operating Income		417.4				59.6				664.3				4.0				1,145.3
Interest (expense) income – net		(172.0		)		1.2				(0.3		)		—				(171.1		)
Other income (expense) – net		9.6				1.2				(70.5		)		63.4				3.7
Equity in net earnings of subsidiaries		513.1				138.3				60.8				(712.2		)		—
Income Before Income Taxes		768.1				200.3				654.3				(644.8		)		977.9
Income taxes		79.4				0.4				209.4				—				289.2
Net Income		$	688.7			$	199.9			$	444.9			$	(644.8	)		$	688.7
Other comprehensive loss, net of tax		(38.6		)		(1.7		)		(20.7		)		22.4				(38.6		)
Comprehensive Income		$	650.1			$	198.2			$	424.2			$	(622.4	)		$	650.1



CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME						Year Ended April 30, 2015
	The J. M. Smucker Company (Parent)				Subsidiary Guarantors				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net sales		$	2,998.0			$	1,184.0			$	6,622.4			$	(5,111.7	)		$	5,692.7
Cost of products sold		2,457.8				1,080.0				5,301.6				(5,115.4		)		3,724.0
Gross Profit		540.2				104.0				1,320.8				3.7				1,968.7
Selling, distribution, and administrative expenses and other special project costs		234.9				53.8				799.2				—				1,087.9
Amortization		4.2				—				105.5				—				109.7
Impairment charges		—				—				1.2				—				1.2
Other operating expense (income) – net		0.3				(2.4		)		—				—				(2.1		)
Operating Income		300.8				52.6				414.9				3.7				772.0
Interest (expense) income – net		(80.7		)		1.2				(0.4		)		—				(79.9		)
Other debt costs		(173.3		)		—				—				—				(173.3		)
Other income – net		0.6				0.1				3.5				—				4.2
Equity in net earnings of subsidiaries		312.6				131.4				52.7				(496.7		)		—
Income Before Income Taxes		360.0				185.3				470.7				(493.0		)		523.0
Income taxes		15.1				0.4				162.6				—				178.1
Net Income		$	344.9			$	184.9			$	308.1			$	(493.0	)		$	344.9
Other comprehensive loss, net of tax		(58.2		)		(18.5		)		(43.3		)		61.8				(58.2		)
Comprehensive Income		$	286.7			$	166.4			$	264.8			$	(431.2	)		$	286.7



CONDENSED CONSOLIDATING BALANCE SHEETS					April 30, 2017
	The J. M. Smucker Company (Parent)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations				Consolidated
ASSETS
Current Assets
Cash and cash equivalents		$	8.5		$	—		$	158.3		$	—			$	166.8
Inventories		—			136.6			773.1			(4.0		)		905.7
Other current assets		490.5			8.1			71.6			(0.9		)		569.3
Total Current Assets		499.0			144.7			1,003.0			(4.9		)		1,641.8
Property, Plant, and Equipment – Net		294.1			574.8			748.6			—				1,617.5
Investments in Subsidiaries		15,573.2			4,464.9			403.1			(20,441.2		)		—
Intercompany Receivable		—			510.4			2,083.2			(2,593.6		)		—
Other Noncurrent Assets
Goodwill		1,494.8			—			4,582.3			—				6,077.1
Other intangible assets – net		417.7			—			5,732.2			—				6,149.9
Other noncurrent assets		59.2			10.6			83.6			—				153.4
Total Other Noncurrent Assets		1,971.7			10.6			10,398.1			—				12,380.4
Total Assets		$	18,338.0		$	5,705.4		$	14,636.0		$	(23,039.7	)		$	15,639.7
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities		$	1,381.7		$	98.8		$	353.0		$	(0.9	)		$	1,832.6
Noncurrent Liabilities
Long-term debt, less current portion		4,445.5			—			—			—				4,445.5
Deferred income taxes		44.7			—			2,122.3			—				2,167.0
Intercompany payable		5,311.9			—			—			(5,311.9		)		—
Other noncurrent liabilities		304.0			15.1			25.3			—				344.4
Total Noncurrent Liabilities		10,106.1			15.1			2,147.6			(5,311.9		)		6,956.9
Total Liabilities		11,487.8			113.9			2,500.6			(5,312.8		)		8,789.5
Total Shareholders’ Equity		6,850.2			5,591.5			12,135.4			(17,726.9		)		6,850.2
Total Liabilities and Shareholders’ Equity		$	18,338.0		$	5,705.4		$	14,636.0		$	(23,039.7	)		$	15,639.7



CONDENSED CONSOLIDATING BALANCE SHEETS					April 30, 2016
	The J. M. Smucker Company (Parent)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations				Consolidated
ASSETS
Current Assets
Cash and cash equivalents		$	7.0		$	—		$	102.8		$	—			$	109.8
Inventories		—			143.2			752.0			4.2				899.4
Other current assets		497.3			5.9			71.9			(10.9		)		564.2
Total Current Assets		504.3			149.1			926.7			(6.7		)		1,573.4
Property, Plant, and Equipment – Net		296.3			587.0			744.4			—				1,627.7
Investments in Subsidiaries		15,092.2			4,317.9			331.6			(19,741.7		)		—
Intercompany Receivable		—			404.7			1,543.9			(1,948.6		)		—
Other Noncurrent Assets
Goodwill		1,494.8			—			4,596.3			—				6,091.1
Other intangible assets – net		428.3			—			6,066.1			—				6,494.4
Other noncurrent assets		57.4			10.4			129.7			—				197.5
Total Other Noncurrent Assets		1,980.5			10.4			10,792.1			—				12,783.0
Total Assets		$	17,873.3		$	5,469.1		$	14,338.7		$	(21,697.0	)		$	15,984.1
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities		$	723.3		$	78.9		$	421.6		$	(10.8	)		$	1,213.0
Noncurrent Liabilities
Long-term debt		5,146.0			—			—			—				5,146.0
Deferred income taxes		60.7			—			2,169.6			—				2,230.3
Intercompany payable		4,644.7			—			—			(4,644.7		)		—
Other noncurrent liabilities		290.1			17.9			78.3			—				386.3
Total Noncurrent Liabilities		10,141.5			17.9			2,247.9			(4,644.7		)		7,762.6
Total Liabilities		10,864.8			96.8			2,669.5			(4,655.5		)		8,975.6
Total Shareholders’ Equity		7,008.5			5,372.3			11,669.2			(17,041.5		)		7,008.5
Total Liabilities and Shareholders’ Equity		$	17,873.3		$	5,469.1		$	14,338.7		$	(21,697.0	)		$	15,984.1



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS						Year Ended April 30, 2017
	The J. M. Smucker Company (Parent)				Subsidiary Guarantors				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net Cash Provided by Operating Activities		$	172.7			$	154.8			$	731.5			$	—			$	1,059.0
Investing Activities
Additions to property, plant, and equipment		(32.1		)		(47.2		)		(113.1		)		—				(192.4		)
Proceeds from sale of investment		—				—				40.6				—				40.6
Proceeds from disposal of property, plant, and equipment		0.1				—				0.4				—				0.5
(Disbursements of) repayments from intercompany loans		—				(105.8		)		(561.3		)		667.1				—
Other – net		(0.2		)		(1.8		)		(36.4		)		—				(38.4		)
Net Cash (Used for) Provided by Investing Activities		(32.2		)		(154.8		)		(669.8		)		667.1				(189.7		)
Financing Activities
Short-term borrowings – net		170.0				—				—				—				170.0
Repayments of long-term debt		(200.0		)		—				—				—				(200.0		)
Quarterly dividends paid		(339.3		)		—				—				—				(339.3		)
Purchase of treasury shares		(437.6		)		—				—				—				(437.6		)
Intercompany payable		667.1				—				—				(667.1		)		—
Other – net		0.8				—				—				—				0.8
Net Cash Used for Financing Activities		(139.0		)		—				—				(667.1		)		(806.1		)
Effect of exchange rate changes on cash		—				—				(6.2		)		—				(6.2		)
Net increase in cash and cash equivalents		1.5				—				55.5				—				57.0
Cash and cash equivalents at beginning of year		7.0				—				102.8				—				109.8
Cash and Cash Equivalents at End of Year		$	8.5			$	—			$	158.3			$	—			$	166.8



( )	Denotes use of cash



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS						Year Ended April 30, 2016
	The J. M. Smucker Company (Parent)				Subsidiary Guarantors				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net Cash (Used for) Provided by Operating Activities		$	(190.1	)		$	151.4			$	1,499.7			$	—			$	1,461.0
Investing Activities
Businesses acquired, net of cash acquired		—				—				7.9				—				7.9
Equity investment in affiliate		—				—				(16.0		)		—				(16.0		)
Additions to property, plant, and equipment		(71.8		)		(53.7		)		(75.9		)		—				(201.4		)
Proceeds from divestiture		193.7				—				—				—				193.7
Proceeds from disposal of property, plant, and equipment		3.7				0.1				0.2				—				4.0
(Disbursements of) repayments from intercompany loans		—				(99.4		)		(1,465.1		)		1,564.5				—
Other – net		(1.2		)		1.6				33.1				—				33.5
Net Cash Provided by (Used for) Investing Activities		124.4				(151.4		)		(1,515.8		)		1,564.5				21.7
Financing Activities
Short-term borrowings – net		58.0				—				—				—				58.0
Repayments of long-term debt		(800.0		)		—				—				—				(800.0		)
Quarterly dividends paid		(316.6		)		—				—				—				(316.6		)
Purchase of treasury shares		(441.1		)		—				—				—				(441.1		)
Intercompany payable		1,564.5				—				—				(1,564.5		)		—
Other – net		0.8				—				—				—				0.8
Net Cash Provided by (Used for) Financing Activities		65.6				—				—				(1,564.5		)		(1,498.9		)
Effect of exchange rate changes on cash		—				—				0.4				—				0.4
Net decrease in cash and cash equivalents		(0.1		)		—				(15.7		)		—				(15.8		)
Cash and cash equivalents at beginning of year		7.1				—				118.5				—				125.6
Cash and Cash Equivalents at End of Year		$	7.0			$	—			$	102.8			$	—			$	109.8



( )	Denotes use of cash



CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS						Year Ended April 30, 2015
	The J. M. Smucker Company (Parent)				Subsidiary Guarantors				Non-Guarantor Subsidiaries				Eliminations				Consolidated
Net Cash Provided by Operating Activities		$	245.1			$	87.8			$	406.2			$	—			$	739.1
Investing Activities
Businesses acquired, net of cash acquired		(1,240.0		)		—				(80.5		)		—				(1,320.5		)
Additions to property, plant, and equipment		(56.3		)		(93.3		)		(98.1		)		—				(247.7		)
Proceeds from disposal of property, plant, and equipment		—				1.1				1.5				—				2.6
Equity investments in subsidiaries		(2,715.3		)		—				—				2,715.3				—
Repayments from (disbursements of) intercompany loans		—				10.2				(297.5		)		287.3				—
Other – net		—				(5.8		)		(24.3		)		—				(30.1		)
Net Cash (Used for) Provided by Investing Activities		(4,011.6		)		(87.8		)		(498.9		)		3,002.6				(1,595.7		)
Financing Activities
Short-term repayments – net		(5.3		)		—				(17.1		)		—				(22.4		)
Proceeds from long-term debt		5,382.5				—				—				—				5,382.5
Repayments of long-term debt, including make-whole payments		(1,580.8		)		—				(2,613.1		)		—				(4,193.9		)
Quarterly dividends paid		(254.0		)		—				—				—				(254.0		)
Purchase of treasury shares		(24.3		)		—				—				—				(24.3		)
Investments in subsidiaries		—				—				2,715.3				(2,715.3		)		—
Intercompany payable		287.3				—				—				(287.3		)		—
Other – net		(38.6		)		—				8.0				—				(30.6		)
Net Cash Provided by (Used for) Financing Activities		3,766.8				—				93.1				(3,002.6		)		857.3
Effect of exchange rate changes on cash		—				—				(28.6		)		—				(28.6		)
Net increase (decrease) in cash and cash equivalents		0.3				—				(28.2		)		—				(27.9		)
Cash and cash equivalents at beginning of year		6.8				—				146.7				—				153.5
Cash and Cash Equivalents at End of Year		$	7.1			$	—			$	118.5			$	—			$	125.6



( )	Denotes use of cash