US Foods Holding Corp. Condensed Financial Information

12 Months Ended

Jan. 02, 2021

Condensed Financial Information Disclosure [Abstract]

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 $2.8 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 January 2, 2021. See Note 18, 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)

	January 2, 2021		December 28, 2019
ASSETS
Investment in subsidiary	$	4,050	$	3,715
Total assets	$	4,050	$	3,715
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Deferred tax liabilities	$	1	$	1
Other liabilities	—		5
Total liabilities	1		6
Commitments and Contingencies (Note 24)
Mezzanine equity:
Series A convertible preferred stock, $0.01 par value—25 shares authorized; 0.5 and 0.0 issued and outstanding as of January 2, 2021 and December 28, 2019	519		—
Shareholders’ Equity
Common stock, $0.01 par value—600 shares authorized;      221 and 220 issued and outstanding as of      January 2, 2021 and December 28, 2019, respectively	2		2
Additional paid-in capital	2,901		2,845
Retained earnings	661		916
Accumulated other comprehensive loss	(34)		(54)
Total shareholders’ equity	3,530		3,709
Total liabilities, mezzanine equity and shareholders’ equity	$	4,050	$	3,715

Condensed Parent Company Statements of Comprehensive Income

	Fiscal Years Ended
	January 2, 2021		December 28, 2019		December 29, 2018
Loss before income taxes	$	—	$	—	$	—
Income tax benefit	(5)		—		(31)
Income before equity in net earnings of subsidiary	5		—		31
Equity in net earnings of subsidiary	(231)		385		376
Net (loss) income	(226)		385		407
Other comprehensive income—net of tax:
Changes in retirement benefit obligations	23		45		6
Unrecognized (loss) gain on interest rate swaps	(3)		(15)		5
Comprehensive (loss) income	$	(206)	$	415	$	418
Net (loss) income	$	(226)	$	385	$	407
Series A convertible preferred stock dividends	28		—		—
Net (loss) income available to common shareholders	$	(254)	$	385	$	407

Condensed Parent Company Statements of Cash Flows

	Fiscal Years Ended
	January 2, 2021		December 28, 2019		December 29, 2018
Cash flows from operating activities:
Net (loss) income	$	(226)	$	385	$	407
Adjustments to reconcile net income to net cash    provided by operating activities:
Equity in net earnings of subsidiary	231		(385)		(376)
Deferred income tax benefit	—		—		(23)
Changes in operating assets and liabilities:
Decrease in accrued expenses and other liabilities	(5)		—		(8)
Net cash used in operating activities	—		—		—
Cash flows from investing activities:
Investment in subsidiary	(491)		—		—
Net cash used in investing activities	(491)		—		—
Cash flows from financing activities:
Net proceeds from issuance of Series A convertible preferred stock	491		—		—
Net cash provided by financing activities	491		—		—
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	$	—	$	—	$	—