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Supplemental Guarantor Information - Subsidiary Guarantees (Subsidiary Guarantee [Member])
 9 Months Ended
Mar. 29, 2014
Subsidiary Guarantee [Member]
  
Supplemental Guarantor Information - Subsidiary Guarantees

 

15.  SUPPLEMENTAL GUARANTOR INFORMATION – SUBSIDIARY GUARANTEES 

 

On January 19, 2011, the wholly-owned 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 and the company’s US Foods acquisition bridge facility are also covered under these guarantees.  As of March 29, 2014, Sysco had a total of $2,966.1 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 the company’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

 

Mar. 29, 2014

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Current assets

$
219,243 

 

$
4,093,866 

 

$
2,326,366 

 

$

 -

 

$
6,639,475 

Investment in subsidiaries

 
9,129,013 

 

 

 -

 

 

 -

 

 
(9,129,013)

 

 

 -

Plant and equipment,  net

 
509,604 

 

 
1,774,594 

 

 
1,672,011 

 

 

 -

 

 
3,956,209 

Other assets

 
355,197 

 

 
548,376 

 

 
1,639,007 

 

 

 -

 

 
2,542,580 

Total assets

$
10,213,057 

 

$
6,416,836 

 

$
5,637,384 

 

$
(9,129,013)

 

$
13,138,264 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$
412,735 

 

$
1,036,861 

 

$
2,494,420 

 

$

 -

 

$
3,944,016 

Intercompany payables (receivables)

 
1,064,729 

 

 
(1,256,887)

 

 
192,158 

 

 

 -

 

 

 -

Long-term debt

 
2,955,362 

 

 
9,533 

 

 
21,268 

 

 

 -

 

 
2,986,163 

Other liabilities

 
548,856 

 

 
292,135 

 

 
135,719 

 

 

 -

 

 
976,710 

Shareholders’ equity  

 
5,231,375 

 

 
6,335,194 

 

 
2,793,819 

 

 
(9,129,013)

 

 
5,231,375 

Total liabilities and  shareholders’ equity

$
10,213,057 

 

$
6,416,836 

 

$
5,637,384 

 

$
(9,129,013)

 

$
13,138,264 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Balance Sheet

 

Jun. 29, 2013

 

Sysco

 

Certain 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

 

Mar. 30, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Current assets

$
268,550 

 

$
4,031,712 

 

$
2,075,320 

 

$

 -

 

$
6,375,582 

Investment in subsidiaries

 
11,220,359 

 

 

 -

 

 

 -

 

 
(11,220,359)

 

 

 -

Plant and equipment,  net

 
627,156 

 

 
1,917,407 

 

 
1,393,714 

 

 

 -

 

 
3,938,277 

Other assets

 
333,346 

 

 
534,960 

 

 
1,475,045 

 

 

 -

 

 
2,343,351 

Total assets

$
12,449,411 

 

$
6,484,079 

 

$
4,944,079 

 

$
(11,220,359)

 

$
12,657,210 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$
600,803 

 

$
973,510 

 

$
2,082,591 

 

$

 -

 

$
3,656,904 

Intercompany payables (receivables)

 
3,370,039 

 

 
(3,497,093)

 

 
127,054 

 

 

 -

 

 

 -

Long-term debt

 
2,510,621 

 

 
22,849 

 

 
23,844 

 

 

 -

 

 
2,557,314 

Other liabilities

 
815,587 

 

 
347,823 

 

 
127,221 

 

 

 -

 

 
1,290,631 

Shareholders’ equity  

 
5,152,361 

 

 
8,636,990 

 

 
2,583,369 

 

 
(11,220,359)

 

 
5,152,361 

Total liabilities and  shareholders’ equity

$
12,449,411 

 

$
6,484,079 

 

$
4,944,079 

 

$
(11,220,359)

 

$
12,657,210 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

For the 13-Week Period Ended Mar. 29, 2014

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Sales

$

 -

 

$
7,468,264 

 

$
4,106,415 

 

$
(297,195)

 

$
11,277,484 

Cost of sales

 

 -

 

 
6,066,934 

 

 
3,513,004 

 

 
(297,195)

 

 
9,282,743 

Gross profit

 

 -

 

 
1,401,330 

 

 
593,411 

 

 

 -

 

 
1,994,741 

Operating expenses

 
233,495 

 

 
867,488 

 

 
561,133 

 

 

 -

 

 
1,662,116 

Operating income (loss)

 
(233,495)

 

 
533,842 

 

 
32,278 

 

 

 -

 

 
332,625 

Interest expense (income)

 
60,312 

 

 
(28,495)

 

 
407 

 

 

 -

 

 
32,224 

Other expense (income), net

 
(761)

 

 
2,626 

 

 
1,853 

 

 

 -

 

 
3,718 

Earnings (losses) before income taxes

 
(293,046)

 

 
559,711 

 

 
30,018 

 

 

 -

 

 
296,683 

Income tax (benefit) provision

 
(111,880)

 

 
215,944 

 

 
11,682 

 

 

 -

 

 
115,746 

Equity in earnings of subsidiaries

 
362,103 

 

 

 -

 

 

 -

 

 
(362,103)

 

 

 -

Net earnings

 
180,937 

 

 
343,767 

 

 
18,336 

 

 
(362,103)

 

 
180,937 

Other comprehensive income (loss)

 
(70,505)

 

 

 -

 

 
(35,397)

 

 
35,397 

 

 
(70,505)

Comprehensive income

$
110,432 

 

$
343,767 

 

$
(17,061)

 

$
(326,706)

 

$
110,432 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

For the 13-Week Period Ended Mar. 30, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Sales

$

 -

 

$
7,402,853 

 

$
3,791,430 

 

$
(267,912)

 

$
10,926,371 

Cost of sales

 

 -

 

 
6,004,055 

 

 
3,247,746 

 

 
(267,912)

 

 
8,983,889 

Gross profit

 

 -

 

 
1,398,798 

 

 
543,684 

 

 

 -

 

 
1,942,482 

Operating expenses

 
170,552 

 

 
923,539 

 

 
511,189 

 

 

 -

 

 
1,605,280 

Operating income (loss)

 
(170,552)

 

 
475,259 

 

 
32,495 

 

 

 -

 

 
337,202 

Interest expense (income)

 
78,811 

 

 
(46,812)

 

 
2,216 

 

 

 -

 

 
34,215 

Other expense (income), net

 
(1,167)

 

 
(1,562)

 

 
(681)

 

 

 -

 

 
(3,410)

Earnings (losses) before income taxes

 
(248,196)

 

 
523,633 

 

 
30,960 

 

 

 -

 

 
306,397 

Income tax (benefit) provision

 
(86,139)

 

 
180,656 

 

 
10,463 

 

 

 -

 

 
104,980 

Equity in earnings of subsidiaries

 
363,474 

 

 

 -

 

 

 -

 

 
(363,474)

 

 

 -

Net earnings

 
201,417 

 

 
342,977 

 

 
20,497 

 

 
(363,474)

 

 
201,417 

Other comprehensive income (loss)

 
(15,011)

 

 

 -

 

 
(27,886)

 

 
27,886 

 

 
(15,011)

Comprehensive income

$
186,406 

 

$
342,977 

 

$
(7,389)

 

$
(335,588)

 

$
186,406 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

For the 39-Week Period Ended Mar. 29, 2014

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Sales

$

 -

 

$
22,578,687 

 

$
12,525,535 

 

$
(874,502)

 

$
34,229,720 

Cost of sales

 

 -

 

 
18,337,015 

 

 
10,742,028 

 

 
(874,502)

 

 
28,204,541 

Gross profit

 

 -

 

 
4,241,672 

 

 
1,783,507 

 

 

 -

 

 
6,025,179 

Operating expenses

 
572,901 

 

 
2,609,570 

 

 
1,680,108 

 

 

 -

 

 
4,862,579 

Operating income (loss)

 
(572,901)

 

 
1,632,102 

 

 
103,399 

 

 

 -

 

 
1,162,600 

Interest expense (income)

 
175,255 

 

 
(77,913)

 

 
(4,806)

 

 

 -

 

 
92,536 

Other expense (income), net

 
(4,383)

 

 
1,170 

 

 
(1,814)

 

 

 -

 

 
(5,027)

Earnings (losses) before income taxes

 
(743,773)

 

 
1,708,845 

 

 
110,019 

 

 

 -

 

 
1,075,091 

Income tax (benefit) provision

 
(275,159)

 

 
632,226 

 

 
40,662 

 

 

 -

 

 
397,729 

Equity in earnings of subsidiaries

 
1,145,976 

 

 

 -

 

 

 -

 

 
(1,145,976)

 

 

 -

Net earnings

 
677,362 

 

 
1,076,619 

 

 
69,357 

 

 
(1,145,976)

 

 
677,362 

Other comprehensive income (loss)

 
(69,985)

 

 

 -

 

 
(43,537)

 

 
43,537 

 

 
(69,985)

Comprehensive income

$
607,377 

 

$
1,076,619 

 

$
25,820 

 

$
(1,102,439)

 

$
607,377 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

For the 39-Week Period Ended Mar. 30, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Sales

$

 -

 

$
22,400,280 

 

$
11,202,672 

 

$
(792,775)

 

$
32,810,177 

Cost of sales

 

 -

 

 
18,097,750 

 

 
9,580,815 

 

 
(792,775)

 

 
26,885,790 

Gross profit

 

 -

 

 
4,302,530 

 

 
1,621,857 

 

 

 -

 

 
5,924,387 

Operating expenses

 
517,896 

 

 
2,722,088 

 

 
1,485,768 

 

 

 -

 

 
4,725,752 

Operating income (loss)

 
(517,896)

 

 
1,580,442 

 

 
136,089 

 

 

 -

 

 
1,198,635 

Interest expense (income)

 
220,987 

 

 
(127,253)

 

 
3,591 

 

 

 -

 

 
97,325 

Other expense (income), net

 
(3,780)

 

 
(2,803)

 

 
(1,057)

 

 

 -

 

 
(7,640)

Earnings (losses) before income taxes

 
(735,103)

 

 
1,710,498 

 

 
133,555 

 

 

 -

 

 
1,108,950 

Income tax (benefit) provision

 
(264,865)

 

 
616,309 

 

 
48,122 

 

 

 -

 

 
399,566 

Equity in earnings of subsidiaries

 
1,179,622 

 

 

 -

 

 

 -

 

 
(1,179,622)

 

 

 -

Net earnings

 
709,384 

 

 
1,094,189 

 

 
85,433 

 

 
(1,179,622)

 

 
709,384 

Other comprehensive income (loss)

 
42,146 

 

 

 -

 

 
(497)

 

 
497 

 

 
42,146 

Comprehensive income

$
751,530 

 

$
1,094,189 

 

$
84,936 

 

$
(1,179,125)

 

$
751,530 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

For the 39-Week Period Ended Mar. 29, 2014

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated
Totals

 

 

(In thousands)

Cash flows provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$
(395,328)

 

$
884,001 

 

$
359,391 

 

$
848,064 

Investing activities

 
(51,260)

 

 
(95,586)

 

 
(269,914)

 

 
(416,760)

Financing activities

 
(503,105)

 

 
(1,933)

 

 
2,908 

 

 
(502,130)

Effect of exchange rates on cash

 

 -

 

 

 -

 

 
(369)

 

 
(369)

Intercompany activity

 
877,869 

 

 
(781,629)

 

 
(96,240)

 

 

 -

Net increase (decrease) in cash and cash equivalents

 
(71,824)

 

 
4,853 

 

 
(4,224)

 

 
(71,195)

Cash and cash equivalents at the beginning of period

 
207,591 

 

 
24,295 

 

 
180,399 

 

 
412,285 

Cash and cash equivalents at the end of period

$
135,767 

 

$
29,148 

 

$
176,175 

 

$
341,090 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

For the 39-Week Period Ended Mar. 30, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated
Totals

 

(In thousands)

Cash flows provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$
(358,717)

 

$
946,302 

 

$
171,823 

 

$
759,408 

Investing activities

 
(86,088)

 

 
(114,569)

 

 
(388,354)

 

 
(589,011)

Financing activities

 
(550,593)

 

 
(2,830)

 

 
23,163 

 

 
(530,260)

Effect of exchange rates on cash

 

 -

 

 

 -

 

 
2,516 

 

 
2,516 

Intercompany activity

 
669,939 

 

 
(819,825)

 

 
149,886 

 

 

 -

Net increase (decrease) in cash and cash equivalents

 
(325,459)

 

 
9,078 

 

 
(40,966)

 

 
(357,347)

Cash and cash equivalents at the beginning of period

 
471,107 

 

 
34,478 

 

 
183,282 

 

 
688,867 

Cash and cash equivalents at the end of period

$
145,648 

 

$
43,556 

 

$
142,316 

 

$
331,520