US Foods Holding Corp. Condensed Financial Information

12 Months Ended

Dec. 29, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

US Foods Holding Corp. Condensed Financial Information

US FOODS HOLDING CORP. CONDENSED FINANCIAL INFORMATION

These condensed parent company financial statements should be read in conjunction with the Company's consolidated financial statements. Under terms of the agreements governing its indebtedness, the net assets of USF, our wholly owned subsidiary, are restricted from being transferred to US Foods Holding Corp.

in the form of loans, advances or dividends with the exception of income tax payments, share-based compensation settlements and minor administrative costs. As of December 29, 2018, USF had $991 million of restricted payment capacity under these covenants, and approximately $2,238 million of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation. See Note 16, Share-Based Compensation, Common Stock Issuances and Common Stock, for a discussion of the Company’s equity related transactions. In the condensed parent company financial statements below, the investment in the operating subsidiary, USF, is accounted for using the equity method.

Condensed Parent Company Balance Sheets

(In millions, except par value)

	December 29, 2018			December 30, 2017
ASSETS
Investment in subsidiary	$	3,235		$	2,847
TOTAL ASSETS	$	3,235		$	2,847
LIABILITIES AND EQUITY
Deferred tax liabilities	$	1		$	25
Other liabilities	5			71
Total liabilities	6			96
COMMITMENTS AND CONTINGENCIES (Note 22)
SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value—600 shares authorized;      217 and 215 issued and outstanding as of      December 29, 2018 and December 30, 2017, respectively	2			2
Additional paid-in capital	2,780			2,720
Retained earnings	531			124
Accumulated other comprehensive loss	(84		)	(95		)
Total shareholders’ equity	3,229			2,751
TOTAL LIABILITIES AND EQUITY	$	3,235		$	2,847

Condensed Parent Company Statements of Comprehensive Income

	Fiscal Years Ended
	December 29, 2018			December 30, 2017			December 31, 2016
OPERATING EXPENSES	$	—		$	—		$	5
Loss before income taxes	—			—			(5		)
INCOME TAX (BENEFIT) PROVISION	(31		)	(5		)	104
Income (loss) before equity in net earnings of subsidiary	31			5			(109		)
EQUITY IN NET EARNINGS OF SUBSIDIARY	376			439			319
NET INCOME	407			444			210
OTHER COMPREHENSIVE INCOME (LOSS)—Net of tax:
Changes in retirement benefit obligations	6			16			(45		)
Unrecognized gain on interest rate swaps	5			8			—
COMPREHENSIVE INCOME	$	418		$	468		$	165

Condensed Parent Company Statements of Cash Flows

	Fiscal Years Ended
	December 29, 2018			December 30, 2017			December 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	407		$	444		$	210
Adjustments to reconcile net income to net cash (used in)    provided by operating activities:
Equity in net earnings of subsidiary	(376		)	(439		)	(319		)
Deferred income tax (benefit) provision	(23		)	(77		)	106
Changes in operating assets and liabilities:
Decrease (increase) in other assets	—			1			(1		)
Decrease in intercompany payable	—			—			(7		)
(Decrease) increase in accrued expenses and other liabilities	(8		)	71			—
Net cash used in operating activities	—			—			(11		)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in subsidiary	—			—			(1,114		)
Cash distribution from subsidiary	—			280			374
Net cash provided by (used in) investing activities	—			280			(740		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from initial public offering	—			—			1,114
Cash distribution to shareholders	—			—			(666		)
Proceeds from common stock sales	—			—			3
Common stock repurchased	—			(280		)	—
Net cash (used in) provided by financing activities	—			(280		)	451
NET DECREASE IN CASH AND CASH EQUIVALENTS	—			—			(300		)
CASH AND CASH EQUIVALENTS—Beginning of year	—			—			300
CASH AND CASH EQUIVALENTS—End of year	$	—		$	—		$	—