Guarantor and Non-Guarantor Financial Information

9 Months Ended

Jan. 31, 2012

Guarantor and Non-Guarantor Financial Information [Abstract]

Guarantor and Non-Guarantor Financial Information

Note P – Guarantor and Non-Guarantor Financial Information

On October 13, 2011, the Company filed a registration statement on Form S-3 registering certain securities described therein, including debt securities which are guaranteed by certain of the Company’s subsidiaries. The Company issued $750.0 million of 3.50 percent Notes pursuant to the registration statement that are fully and unconditionally guaranteed, on a joint and several basis, by the following wholly-owned subsidiaries of the Company: J.M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”). The following condensed consolidated financial information for the Company, the subsidiary guarantors, and the non-guarantor subsidiaries is provided. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with the Company’s wholly-owned subsidiary guarantors and non-guarantor subsidiaries. The Company has accounted for investments in subsidiaries using the equity method.

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

Three Months Ended January 31, 2012

	The J.M. Smucker Company (Parent)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	1,159,940		$	396,539		$	1,040,114		$	(1,128,952	)	$	1,467,641
Cost of products sold		1,038,288			357,429			741,938			(1,135,699	)		1,001,956
Gross Profit		121,652			39,110			298,176			6,747			465,685
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		60,727			19,867			163,844			0			244,438
Amortization		1,550			0			20,481			0			22,031
Other operating (income) expense - net		(627	)		(717	)		194			0			(1,150	)
Operating Income		60,002			19,960			113,657			6,747			200,366
Interest (expense) income - net		(23,353	)		721			(503	)		0			(23,135	)
Other (expense) income - net		(11	)		96			(81	)		0			4
Equity in net earnings of subsidiaries		95,637			55,084			20,048			(170,769	)		0
Income Before Income Taxes		132,275			75,861			133,121			(164,022	)		177,235
Income taxes		15,431			245			44,715			0			60,391
Net Income	$	116,844		$	75,616		$	88,406		$	(164,022	)	$	116,844

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

Three Months Ended January 31, 2011

	The J.M. Smucker			Subsidiary		Non-Guarantor
	Company (Parent)			Guarantors		Subsidiaries			Eliminations			Consolidated
Net sales	$	1,039,686		$	724,452	$	1,111,319		$	(1,563,106	)	$	1,312,351
Cost of products sold		854,876			658,021		891,142			(1,566,102	)		837,937
Gross Profit		184,810			66,431		220,177			2,996			474,414
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		53,336			16,315		155,834			0			225,485
Amortization and impairment charges		1,297			16,168		18,205			0			35,670
Other operating expense (income) - net		394			139		(236	)		0			297
Operating Income		129,783			33,809		46,374			2,996			212,962
Interest (expense) income - net		(17,565	)		975		(763	)		0			(17,353	)
Other income (expense) - net		1			201		(32	)		0			170
Equity in net earnings of subsidiaries		56,541			23,556		18,610			(98,707	)		0
Income Before Income Taxes		168,760			58,541		64,189			(95,711	)		195,779
Income taxes		36,765			5,400		21,619			0			63,784
Net Income	$	131,995		$	53,141	$	42,570		$	(95,711	)	$	131,995

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

Nine Months Ended January 31, 2012

	The J.M. Smucker			Subsidiary			Non-Guarantor
	Company (Parent)			Guarantors			Subsidiaries			Eliminations			Consolidated
Net sales	$	3,258,136		$	1,179,939		$	2,915,302		$	(3,182,948	)	$	4,170,429
Cost of products sold		2,853,831			1,074,723			2,028,091			(3,181,654	)		2,774,991
Gross Profit		404,305			105,216			887,211			(1,294	)		1,395,438
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		183,782			46,291			499,328			0			729,401
Amortization		4,228			0			58,597			0			62,825
Loss on sale of business and other operating (income) expense - net		(711	)		(469	)		11,709			0			10,529
Operating Income		217,006			59,394			317,577			(1,294	)		592,683
Interest (expense) income - net		(58,071	)		2,671			(1,979	)		0			(57,379	)
Other income - net		678			330			950			0			1,958
Equity in net earnings of subsidiaries		250,596			164,707			59,715			(475,018	)		0
Income Before Income Taxes		410,209			227,102			376,263			(476,312	)		537,262
Income taxes		54,595			893			126,160			0			181,648
Net Income	$	355,614		$	226,209		$	250,103		$	(476,312	)	$	355,614

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

Nine Months Ended January 31, 2011

	The J.M. Smucker			Subsidiary		Non-Guarantor
	Company (Parent)			Guarantors		Subsidiaries			Eliminations			Consolidated
Net sales	$	2,855,653		$	2,090,882	$	3,105,275		$	(4,413,234	)	$	3,638,576
Cost of products sold		2,326,332			1,890,370		2,440,741			(4,396,386	)		2,261,057
Gross Profit		529,321			200,512		664,534			(16,848	)		1,377,519
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		156,278			62,810		464,357			0			683,445
Amortization and impairment charges		3,890			48,504		20,274			0			72,668
Other operating (income) expense - net		(326	)		1,132		2,435			0			3,241
Operating Income		369,479			88,066		177,468			(16,848	)		618,165
Interest (expense) income - net		(51,762	)		2,424		(2,054	)		0			(51,392	)
Other (expense) income - net		(263	)		585		165			0			487
Equity in net earnings of subsidiaries		161,774			66,070		54,698			(282,542	)		0
Income Before Income Taxes		479,228			157,145		230,277			(299,390	)		567,260
Income taxes		94,626			11,973		76,059			0			182,658
Net Income	$	384,602		$	145,172	$	154,218		$	(299,390	)	$	384,602

CONDENSED CONSOLIDATED BALANCE SHEETS

January 31, 2012

	The J.M. Smucker		Subsidiary		Non-Guarantor
	Company (Parent)		Guarantors		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	263,937	$	0	$	106,491	$	0		$	370,428
Inventories		0		221,194		790,616		(20,995	)		990,815
Other current assets		358,943		3,915		81,892		0			444,750
Total Current Assets		622,880		225,109		978,999		(20,995	)		1,805,993
PROPERTY, PLANT, AND EQUIPMENT, NET		215,436		375,513		473,350		0			1,064,299
INVESTMENTS IN SUBSIDIARIES AND INTERCOMPANY		5,625,918		963,785		736,061		(7,325,764	)		0
OTHER NONCURRENT ASSETS
Goodwill		976,617		0		2,056,914		0			3,033,531
Other intangible assets, net		438,516		0		2,795,444		0			3,233,960
Other noncurrent assets		58,325		15,188		24,578		0			98,091
Total Other Noncurrent Assets		1,473,458		15,188		4,876,936		0			6,365,582
	$	7,937,692	$	1,579,595	$	7,065,346	$	(7,346,759	)	$	9,235,874
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES	$	202,848	$	125,889	$	165,598	$	0		$	494,335
NONCURRENT LIABILITIES
Long-term debt		2,071,202		0		0		0			2,071,202
Deferred income taxes		111,424		0		918,497		0			1,029,921
Other noncurrent liabilities		168,078		16,765		71,433		0			256,276
Total Noncurrent Liabilities		2,350,704		16,765		989,930		0			3,357,399
SHAREHOLDERS’ EQUITY		5,384,140		1,436,941		5,909,818		(7,346,759	)		5,384,140
	$	7,937,692	$	1,579,595	$	7,065,346	$	(7,346,759	)	$	9,235,874

CONDENSED CONSOLIDATED BALANCE SHEETS

April 30, 2011

	The J.M. Smucker		Subsidiary		Non-Guarantor
	Company (Parent)		Guarantors		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	206,845	$	0	$	113,000	$	0		$	319,845
Inventories		0		182,531		700,750		(19,702	)		863,579
Other current assets		364,377		8,190		81,008		0			453,575
Total Current Assets		571,222		190,721		894,758		(19,702	)		1,636,999
PROPERTY, PLANT, AND EQUIPMENT, NET		193,321		305,519		369,042		0			867,882
INVESTMENTS IN SUBSIDIARIES AND INTERCOMPANY		4,872,622		802,936		1,209,603		(6,885,161	)		0
OTHER NONCURRENT ASSETS
Goodwill		981,606		0		1,831,140		0			2,812,746
Other intangible assets, net		440,174		3,116		2,496,720		0			2,940,010
Other noncurrent assets		50,012		15,106		1,830		0			66,948
Total Other Noncurrent Assets		1,471,792		18,222		4,329,690		0			5,819,704
	$	7,108,957	$	1,317,398	$	6,803,093	$	(6,904,863	)	$	8,324,585
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES	$	234,262	$	81,239	$	167,175	$	0		$	482,676
NONCURRENT LIABILITIES
Long-term debt		1,304,039		0		0		0			1,304,039
Deferred income taxes		115,985		0		926,838		0			1,042,823
Other noncurrent liabilities		162,308		16,447		23,929		0			202,684
Total Noncurrent Liabilities		1,582,332		16,447		950,767		0			2,549,546
SHAREHOLDERS’ EQUITY		5,292,363		1,219,712		5,685,151		(6,904,863	)		5,292,363
	$	7,108,957	$	1,317,398	$	6,803,093	$	(6,904,863	)	$	8,324,585

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

Nine Months Ended January 31, 2012

	The J.M. Smucker Company (Parent)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by operating activities	$	79,972		$	94,057		$	295,210		$	0	$	469,239
INVESTING ACTIVITIES
Businesses acquired, net of cash acquired		0			0			(742,355	)		0		(742,355	)
Additions to property, plant, and equipment		(41,483	)		(101,333	)		(54,075	)		0		(196,891	)
Proceeds from sale of business		0			0			9,268			0		9,268
Sale and maturity of marketable securities		18,600			0			0			0		18,600
Proceeds from disposal of property, plant, and equipment		262			320			2,202			0		2,784
Other - net		0			0			(1,021	)		0		(1,021	)
Net cash used for investing activities		(22,621	)		(101,013	)		(785,981	)		0		(909,615	)
FINANCING ACTIVITIES
Proceeds from long-term debt - net		748,560			0			0			0		748,560
Quarterly dividends paid		(159,389	)		0			0			0		(159,389	)
Purchase of treasury shares		(90,522	)		0			0			0		(90,522	)
Proceeds from stock option exercises		1,719			0			0			0		1,719
Intercompany		(497,712	)		6,956			490,756			0		0
Other - net		(2,915	)		0			0			0		(2,915	)
Net cash (used for) provided by financing activities		(259	)		6,956			490,756			0		497,453
Effect of exchange rate changes		0			0			(6,494	)		0		(6,494	)
Net increase (decrease) in cash and cash equivalents		57,092			0			(6,509	)		0		50,583
Cash and cash equivalents at beginning of period		206,845			0			113,000			0		319,845
Cash and cash equivalents at end of period	$	263,937		$	0		$	106,491		$	0	$	370,428

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

Nine Months Ended January 31, 2011

	The J.M. Smucker Company (Parent)			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by operating activities	$	142,080		$	94,310		$	157,990		$	0	$	394,380
INVESTING ACTIVITIES
Additions to property, plant, and equipment		(42,681	)		(30,907	)		(37,545	)		0		(111,133	)
Sale and maturity of marketable securities		37,100			0			0			0		37,100
Purchases of marketable securities		(75,637	)		0			0			0		(75,637	)
Proceeds from disposal of property, plant, and equipment		1,096			299			3,607			0		5,002
Other - net		(43	)		36			(92	)		0		(99	)
Net cash used for investing activities		(80,165	)		(30,572	)		(34,030	)		0		(144,767	)
FINANCING ACTIVITIES
Repayments of long-term debt		(10,000	)		0			0			0		(10,000	)
Proceeds from long-term debt		400,000			0			0			0		400,000
Quarterly dividends paid		(143,065	)		0			0			0		(143,065	)
Purchase of treasury shares		(247,329	)		0			0			0		(247,329	)
Proceeds from stock option exercises		9,969			0			0			0		9,969
Intercompany		152,404			(63,738	)		(88,666	)		0		0
Other - net		4,993			0			0			0		4,993
Net cash provided by (used for) financing activities		166,972			(63,738	)		(88,666	)		0		14,568
Effect of exchange rate changes		0			0			1,832			0		1,832
Net increase in cash and cash equivalents		228,887			0			37,126			0		266,013
Cash and cash equivalents at beginning of period		217,730			0			65,840			0		283,570
Cash and cash equivalents at end of period	$	446,617		$	0		$	102,966		$	0	$	549,583