US Foods Holding Corp. Condensed Financial Information

12 Months Ended

Dec. 28, 2019

Condensed Financial Information 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 are restricted from being transferred to US Foods in the form of loans, advances or dividends with the exception of income tax payments, share-based compensation settlements and minor administrative costs. USF had $1.3 billion of restricted payment capacity under these covenants, and approximately $2.4 billion of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation, as of December 28, 2019. 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 28, 2019			December 29, 2018
ASSETS
Investment in subsidiary	$	3,715		$	3,235
Total assets	$	3,715		$	3,235
LIABILITIES AND SHAREHOLDERS' EQUITY
Deferred tax liabilities	$	1		$	1
Other liabilities	5			5
Total liabilities	6			6
Commitments and Contingencies (Note 22)
Shareholders’ Equity
Common stock, $0.01 par value—600 shares authorized;      220 and 217 issued and outstanding as of      December 28, 2019 and December 29, 2018, respectively	2			2
Additional paid-in capital	2,845			2,780
Retained earnings	916			531
Accumulated other comprehensive loss	(54		)	(84		)
Total shareholders’ equity	3,709			3,229
Total liabilities and equity	$	3,715		$	3,235

Condensed Parent Company Statements of Comprehensive Income

	Fiscal Years Ended
	December 28, 2019			December 29, 2018			December 30, 2017
Loss before income taxes	$	—		$	—		$	—
Income tax benefit	—			(31		)	(5		)
Income before equity in net earnings of subsidiary	—			31			5
Equity in net earnings of subsidiary	385			376			439
Net income	385			407			444
Other comprehensive income—net of tax:
Changes in retirement benefit obligations	45			6			16
Unrecognized gain on interest rate swaps	(15		)	5			8
Comprehensive income	$	415		$	418		$	468

Condensed Parent Company Statements of Cash Flows

	Fiscal Years Ended
	December 28, 2019			December 29, 2018			December 30, 2017
Cash flows from operating activities:
Net income	$	385		$	407		$	444
Adjustments to reconcile net income to net cash    provided by operating activities:
Equity in net earnings of subsidiary	(385		)	(376		)	(439		)
Deferred income tax benefit	—			(23		)	(77		)
Changes in operating assets and liabilities:
Decrease in other assets	—			—			1
(Decrease) increase in accrued expenses and other liabilities	—			(8		)	71
Net cash used in operating activities	—			—			—
Cash flows from investing activities:
Cash distribution from subsidiary	—			—			280
Net cash provided by investing activities	—			—			280
Cash flows from financing activities:
Common stock repurchased	—			—			(280		)
Net cash used in financing activities	—			—			(280		)
Net increase in cash, cash equivalents and restricted cash	—			—			—
Cash, cash equivalents and restricted cash—beginning of year	—			—			—
Cash, cash equivalents and restricted cash—end of year	$	—		$	—		$	—