Note 15: Guarantor and Non-Guarantor Financial Information

Our 3.50 percent Senior Notes due October 15, 2021, are fully and unconditionally guaranteed, on a joint and several basis, by J.M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”), which are 100 percent wholly-owned subsidiaries of the Company. A subsidiary guarantor will be released from its obligations under the indenture governing the notes (a) if we exercise our legal or covenant defeasance option or if our obligations under the indenture are discharged in accordance with the terms of the indenture or (b) upon delivery of an officer’s certificate to the trustee that the subsidiary guarantor does not guarantee our obligations under any of our other primary senior indebtedness and that any other guarantees of such primary senior indebtedness of the subsidiary guarantor have been released other than through discharges as a result of payment by such guarantor on such guarantees.

Condensed consolidating financial statements for the Company, the subsidiary guarantors, and the other subsidiaries of the Company that are not guaranteeing the indebtedness under the 3.50 percent Senior Notes (the “non-guarantor subsidiaries”) are provided below. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with our 100 percent wholly-owned subsidiary guarantors and non-guarantor subsidiaries. We have accounted for investments in subsidiaries using the equity method.


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME	Three Months Ended January 31, 2014
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	791.4	$	311.1	$	1,720.9	$	(1,357.9)	$	1,465.5
Cost of products sold		632.7		282.6		1,372.0		(1,367.0)		920.3

Gross Profit		158.7		28.5		348.9		9.1		545.2
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		47.7		12.5		197.2		—		257.4
Amortization		1.1		—		23.8		—		24.9
Other operating expense (income) – net		0.1		0.3		(1.0)		—		(0.6)

Operating Income		109.8		15.7		128.9		9.1		263.5
Interest (expense) income – net		(18.8)		0.3		0.1		—		(18.4)
Other income – net		1.3		0.1		—		—		1.4
Equity in net earnings of subsidiaries		105.8		37.3		15.7		(158.8)		—

Income Before Income Taxes		198.1		53.4		144.7		(149.7)		246.5
Income taxes		31.4		0.1		48.3		—		79.8

Net Income	$	166.7	$	53.3	$	96.4	$	(149.7)	$	166.7
Other comprehensive (loss) income, net of tax		(11.3)		2.5		(13.5)		11.0		(11.3)

Comprehensive Income	$	155.4	$	55.8	$	82.9	$	(138.7)	$	155.4


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME	Three Months Ended January 31, 2013
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	808.2	$	326.2	$	1,465.8	$	(1,040.6)	$	1,559.6
Cost of products sold		658.2		300.2		1,099.7		(1,034.7)		1,023.4

Gross Profit		150.0		26.0		366.1		(5.9)		536.2
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		41.7		10.4		205.7		—		257.8
Amortization		1.2		—		23.0		—		24.2
Other operating income – net		(2.6)		(0.7)		(0.8)		—		(4.1)

Operating Income		109.7		16.3		138.2		(5.9)		258.3
Interest (expense) income – net		(24.2)		0.3		0.1		—		(23.8)
Other (expense) income – net		(10.1)		0.3		9.3		—		(0.5)
Equity in net earnings of subsidiaries		103.3		42.0		16.8		(162.1)		—

Income Before Income Taxes		178.7		58.9		164.4		(168.0)		234.0
Income taxes		24.5		0.1		55.2		—		79.8

Net Income	$	154.2	$	58.8	$	109.2	$	(168.0)	$	154.2
Other comprehensive income, net of tax		5.3		3.7		3.8		(7.5)		5.3

Comprehensive Income	$	159.5	$	62.5	$	113.0	$	(175.5)	$	159.5


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME	Nine Months Ended January 31, 2014
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	2,380.0	$	992.0	$	5,169.5	$	(4,165.2)	$	4,376.3
Cost of products sold		1,925.7		905.8		4,116.9		(4,162.8)		2,785.6

Gross Profit		454.3		86.2		1,052.6		(2.4)		1,590.7
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		151.7		35.8		603.1		—		790.6
Amortization		3.2		—		70.9		—		74.1
Other operating (income) expense – net		(1.3)		0.4		(0.7)		—		(1.6)

Operating Income		300.7		50.0		379.3		(2.4)		727.6
Interest (expense) income – net		(63.2)		0.9		(0.4)		—		(62.7)
Other income (expense) – net		1.3		(0.1)		(0.1)		—		1.1
Equity in net earnings of subsidiaries		283.9		109.5		49.8		(443.2)		—

Income Before Income Taxes		522.7		160.3		428.6		(445.6)		666.0
Income taxes		76.0		0.3		143.0		—		219.3

Net Income	$	446.7	$	160.0	$	285.6	$	(445.6)	$	446.7
Other comprehensive (loss) income, net of tax		(17.7)		7.6		(22.0)		14.4		(17.7)

Comprehensive Income	$	429.0	$	167.6	$	263.6	$	(431.2)	$	429.0


CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME	Nine Months Ended January 31, 2013
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales	$	2,345.2	$	1,002.6	$	4,312.8	$	(3,102.6)	$	4,558.0
Cost of products sold		1,945.4		921.1		3,238.0		(3,094.4)		3,010.1

Gross Profit		399.8		81.5		1,074.8		(8.2)		1,547.9
Selling, distribution, and administrative expenses, restructuring, merger and integration, and other special project costs		157.7		33.1		591.8		—		782.6
Amortization		7.1		—		65.5		—		72.6
Other operating (income) expense – net		(3.3)		(2.0)		1.6		—		(3.7)

Operating Income		238.3		50.4		415.9		(8.2)		696.4
Interest (expense) income – net		(72.1)		0.9		(0.1)		—		(71.3)
Other (expense) income – net		(0.6)		1.0		—		—		0.4
Equity in net earnings of subsidiaries		302.4		115.4		51.5		(469.3)		—

Income Before Income Taxes		468.0		167.7		467.3		(477.5)		625.5
Income taxes		54.1		0.3		157.2		—		211.6

Net Income	$	413.9	$	167.4	$	310.1	$	(477.5)	$	413.9
Other comprehensive income, net of tax		9.1		5.3		3.4		(8.7)		9.1

Comprehensive Income	$	423.0	$	172.7	$	313.5	$	(486.2)	$	423.0


CONDENSED CONSOLIDATING BALANCE SHEETS	January 31, 2014
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	18.3	$	—	$	150.3	$	—	$	168.6
Inventories		—		193.9		673.3		(2.4)		864.8
Other current assets		365.3		5.0		104.4		—		474.7

Total Current Assets		383.6		198.9		928.0		(2.4)		1,508.1
Property, Plant, and Equipment – Net		230.0		486.4		468.9		—		1,185.3
Investments in Subsidiaries		8,275.1		4,017.0		197.4		(12,489.5)		—
Intercompany		(2,771.3)		301.5		1,124.9		1,344.9		—
Other Noncurrent Assets
Goodwill		1,082.0		—		2,014.6		—		3,096.6
Other intangible assets – net		506.6		—		2,541.9		—		3,048.5
Other noncurrent assets		70.9		13.3		66.3		—		150.5

Total Other Noncurrent Assets		1,659.5		13.3		4,622.8		—		6,295.6

Total Assets	$	7,776.9	$	5,017.1	$	7,342.0	$	(11,147.0)	$	8,989.0

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	$	371.2	$	80.8	$	156.3	$	—	$	608.3
Noncurrent Liabilities
Long-term debt		1,879.4		—		—		—		1,879.4
Deferred income taxes		91.4		—		913.0		—		1,004.4
Other noncurrent liabilities		230.0		18.1		44.0		—		292.1

Total Noncurrent Liabilities		2,200.8		18.1		957.0		—		3,175.9

Total Liabilities		2,572.0		98.9		1,113.3		—		3,784.2

Total Shareholders’ Equity		5,204.9		4,918.2		6,228.7		(11,147.0)		5,204.8

Total Liabilities and Shareholders’ Equity	$	7,776.9	$	5,017.1	$	7,342.0	$	(11,147.0)	$	8,989.0


CONDENSED CONSOLIDATING BALANCE SHEETS	April 30, 2013
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Current Assets
Cash and cash equivalents	$	108.0	$	—	$	148.4	$	—	$	256.4
Inventories		—		225.9		733.2		(13.6)		945.5
Other current assets		320.4		3.3		69.6		—		393.3

Total Current Assets		428.4		229.2		951.2		(13.6)		1,595.2
Property, Plant, and Equipment – Net		230.9		445.1		466.5		—		1,142.5
Investments in Subsidiaries		7,950.9		3,856.6		146.6		(11,954.1)		—
Intercompany		(2,504.5)		324.8		941.3		1,238.4		—
Other Noncurrent Assets
Goodwill		1,082.0		—		1,970.9		—		3,052.9
Other intangible assets – net		509.8		—		2,579.6		—		3,089.4
Other noncurrent assets		72.0		13.7		66.1		—		151.8

Total Other Noncurrent Assets		1,663.8		13.7		4,616.6		—		6,294.1

Total Assets	$	7,769.5	$	4,869.4	$	7,122.2	$	(10,729.3)	$	9,031.8

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities	$	317.8	$	104.9	$	174.1	$	—	$	596.8
Noncurrent Liabilities
Long-term debt		1,967.8		—		—		—		1,967.8
Deferred income taxes		97.5		—		889.7		—		987.2
Other noncurrent liabilities		237.6		18.1		75.5		—		331.2

Total Noncurrent Liabilities		2,302.9		18.1		965.2		—		3,286.2

Total Liabilities		2,620.7		123.0		1,139.3		—		3,883.0

Total Shareholders’ Equity		5,148.8		4,746.4		5,982.9		(10,729.3)		5,148.8

Total Liabilities and Shareholders’ Equity	$	7,769.5	$	4,869.4	$	7,122.2	$	(10,729.3)	$	9,031.8


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS	Nine Months Ended January 31, 2014
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Cash Provided by Operating Activities	$	104.7	$	107.6	$	376.8	$	—	$	589.1

Investing Activities
Businesses acquired, net of cash acquired		—		—		(101.8)		—		(101.8)
Additions to property, plant, and equipment		(20.0)		(83.8)		(45.1)		—		(148.9)
Proceeds from disposal of property, plant, and equipment		—		0.5		1.3		—		1.8
Other – net		(3.4)		(1.0)		(3.9)		—		(8.3)

Net Cash Used for Investing Activities		(23.4)		(84.3)		(149.5)		—		(257.2)

Financing Activities
Quarterly dividends paid		(177.4)		—		—		—		(177.4)
Purchase of treasury shares		(227.0)		—		—		—		(227.0)
Proceeds from stock option exercises		0.4		—		—		—		0.4
Investments in subsidiaries		(40.3)		(46.6)		86.9		—		—
Intercompany		266.7		23.3		(290.0)		—		—
Other – net		6.6		—		(7.8)		—		(1.2)

Net Cash Used for Financing Activities		(171.0)		(23.3)		(210.9)		—		(405.2)
Effect of exchange rate changes on cash		—		—		(14.5)		—		(14.5)

Net (decrease) increase in cash and cash equivalents		(89.7)		—		1.9		—		(87.8)
Cash and cash equivalents at beginning of period		108.0		—		148.4		—		256.4

Cash and Cash Equivalents at End of Period	$	18.3	$	—	$	150.3	$	—	$	168.6


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS	Nine Months Ended January 31, 2013
	The J.M. Smucker Company (Parent)		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Cash Provided by Operating Activities	$	119.0	$	103.4	$	461.2	$	—	$	683.6

Investing Activities
Additions to property, plant, and equipment		(24.9)		(70.7)		(50.9)		—		(146.5)
Proceeds from disposal of property, plant, and equipment		—		0.1		3.0		—		3.1
Other – net		(9.4)		3.9		22.7		—		17.2

Net Cash Used for Investing Activities		(34.3)		(66.7)		(25.2)		—		(126.2)

Financing Activities
Quarterly dividends paid		(166.5)		—		—		—		(166.5)
Purchase of treasury shares		(175.5)		—		—		—		(175.5)
Proceeds from stock option exercises		1.9		—		—		—		1.9
Investments in subsidiaries		(22.2)		(156.9)		179.1		—		—
Intercompany		461.1		120.2		(581.3)		—		—
Other – net		2.9		—		(10.0)		—		(7.1)

Net Cash Provided By (Used for) Financing Activities		101.7		(36.7)		(412.2)		—		(347.2)
Effect of exchange rate changes		—		—		(1.1)		—		(1.1)

Net increase in cash and cash equivalents		186.4		—		22.7		—		209.1
Cash and cash equivalents at beginning of period		108.3		—		121.4		—		229.7

Cash and Cash Equivalents at End of Period	$	294.7	$	—	$	144.1	$	—	$	438.8