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Supplemental Guarantor Information - Subsidiary Guarantees (Subsidiary Guarantee [Member])
 3 Months Ended
Sep. 28, 2013
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 are also covered under these guarantees.  As of September 28, 2013, Sysco had a total of $3,054.0 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

 

Sep. 28, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Current assets

$
243,146 

 

$
4,051,376 

 

$
2,239,740 

 

$

 -

 

$
6,534,262 

Investment in subsidiaries

 
8,867,634 

 

 

 -

 

 

 -

 

 
(8,867,634)

 

 

 -

Plant and equipment,  net

 
526,608 

 

 
1,860,215 

 

 
1,592,528 

 

 

 -

 

 
3,979,351 

Other assets

 
337,236 

 

 
534,804 

 

 
1,639,742 

 

 

 -

 

 
2,511,782 

Total assets

$
9,974,624 

 

$
6,446,395 

 

$
5,472,010 

 

$
(8,867,634)

 

$
13,025,395 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$
553,198 

 

$
1,035,998 

 

$
2,294,498 

 

$

 -

 

$
3,883,694 

Intercompany payables (receivables)

 
773,170 

 

 
(1,145,339)

 

 
372,169 

 

 

 -

 

 

 -

Long-term debt

 
2,844,729 

 

 
10,121 

 

 
23,541 

 

 

 -

 

 
2,878,391 

Other liabilities

 
604,385 

 

 
338,845 

 

 
120,938 

 

 

 -

 

 
1,064,168 

Shareholders’ equity  

 
5,199,142 

 

 
6,206,770 

 

 
2,660,864 

 

 
(8,867,634)

 

 
5,199,142 

Total liabilities and  shareholders’ equity

$
9,974,624 

 

$
6,446,395 

 

$
5,472,010 

 

$
(8,867,634)

 

$
13,025,395 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Sep. 29, 2012

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Current assets

$
411,095 

 

$
3,970,191 

 

$
1,952,364 

 

$

 -

 

$
6,333,650 

Investment in subsidiaries

 
10,816,355 

 

 

 -

 

 

 -

 

 
(10,816,355)

 

 

 -

Plant and equipment,  net

 
626,429 

 

 
2,010,057 

 

 
1,314,182 

 

 

 -

 

 
3,950,668 

Other assets

 
341,778 

 

 
532,388 

 

 
1,371,584 

 

 

 -

 

 
2,245,750 

Total assets

$
12,195,657 

 

$
6,512,636 

 

$
4,638,130 

 

$
(10,816,355)

 

$
12,530,068 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$
640,071 

 

$
978,653 

 

$
1,984,150 

 

$

 -

 

$
3,602,874 

Intercompany payables (receivables)

 
3,106,736 

 

 
(3,280,070)

 

 
173,334 

 

 

 -

 

 

 -

Long-term debt

 
2,714,267 

 

 
25,482 

 

 
25,104 

 

 

 -

 

 
2,764,853 

Other liabilities

 
840,402 

 

 
315,895 

 

 
111,863 

 

 

 -

 

 
1,268,160 

Shareholders’ equity  

 
4,894,181 

 

 
8,472,676 

 

 
2,343,679 

 

 
(10,816,355)

 

 
4,894,181 

Total liabilities and  shareholders’ equity

$
12,195,657 

 

$
6,512,636 

 

$
4,638,130 

 

$
(10,816,355)

 

$
12,530,068 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

For the 13-Week Period Ended Sep. 28, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Sales

$

 -

 

$
7,746,013 

 

$
4,237,699 

 

$
(269,445)

 

$
11,714,267 

Cost of sales

 

 -

 

 
6,268,866 

 

 
3,649,359 

 

 
(269,445)

 

 
9,648,780 

Gross profit

 

 -

 

 
1,477,147 

 

 
588,340 

 

 

 -

 

 
2,065,487 

Operating expenses

 
145,048 

 

 
882,950 

 

 
559,291 

 

 

 -

 

 
1,587,289 

Operating income (loss)

 
(145,048)

 

 
594,197 

 

 
29,049 

 

 

 -

 

 
478,198 

Interest expense (income)

 
57,307 

 

 
(23,437)

 

 
(3,342)

 

 

 -

 

 
30,528 

Other expense (income), net

 
(3,345)

 

 
(857)

 

 
(332)

 

 

 -

 

 
(4,534)

Earnings (losses) before income taxes

 
(199,010)

 

 
618,491 

 

 
32,723 

 

 

 -

 

 
452,204 

Income tax (benefit) provision

 
(73,325)

 

 
227,882 

 

 
12,057 

 

 

 -

 

 
166,614 

Equity in earnings of subsidiaries

 
411,275 

 

 

 -

 

 

 -

 

 
(411,275)

 

 

 -

Net earnings

 
285,590 

 

 
390,609 

 

 
20,666 

 

 
(411,275)

 

 
285,590 

Other comprehensive income (loss)

 
35,136 

 

 

 -

 

 
30,807 

 

 
(30,807)

 

 
35,136 

Comprehensive income

$
320,726 

 

$
390,609 

 

$
51,473 

 

$
(442,082)

 

$
320,726 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Statement of Comprehensive Income

 

For the 13-Week Period Ended Sep. 29, 2012

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Eliminations

 

Consolidated
Totals

 

(In thousands)

Sales

$

 -

 

$
7,636,178 

 

$
3,704,672 

 

$
(253,934)

 

$
11,086,916 

Cost of sales

 

 -

 

 
6,144,858 

 

 
3,166,197 

 

 
(253,934)

 

 
9,057,121 

Gross profit

 

 -

 

 
1,491,320 

 

 
538,475 

 

 

 -

 

 
2,029,795 

Operating expenses

 
153,138 

 

 
914,086 

 

 
483,789 

 

 

 -

 

 
1,551,013 

Operating income (loss)

 
(153,138)

 

 
577,234 

 

 
54,686 

 

 

 -

 

 
478,782 

Interest expense (income)

 
69,612 

 

 
(38,383)

 

 
(361)

 

 

 -

 

 
30,868 

Other expense (income), net

 
(319)

 

 
(704)

 

 
(1,454)

 

 

 -

 

 
(2,477)

Earnings (losses) before income taxes

 
(222,431)

 

 
616,321 

 

 
56,501 

 

 

 -

 

 
450,391 

Income tax (benefit) provision

 
(80,891)

 

 
224,137 

 

 
20,547 

 

 

 -

 

 
163,793 

Equity in earnings of subsidiaries

 
428,138 

 

 

 -

 

 

 -

 

 
(428,138)

 

 

 -

Net earnings

 
286,598 

 

 
392,184 

 

 
35,954 

 

 
(428,138)

 

 
286,598 

Other comprehensive income (loss)

 
48,891 

 

 

 -

 

 
36,160 

 

 
(36,160)

 

 
48,891 

Comprehensive income

$
335,489 

 

$
392,184 

 

$
72,114 

 

$
(464,298)

 

$
335,489 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

For the 13-Week Period Ended Sep. 28, 2013

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated
Totals

 

 

(In thousands)

Cash flows provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$
(109,620)

 

$
169,932 

 

$
108,917 

 

$
169,229 

Investing activities

 
(19,931)

 

 
(29,089)

 

 
(90,006)

 

 
(139,026)

Financing activities

 
(81,357)

 

 
(194)

 

 
(3,932)

 

 
(85,483)

Effect of exchange rates on cash

 

 -

 

 

 -

 

 
2,527 

 

 
2,527 

Intercompany activity

 
181,535 

 

 
(139,626)

 

 
(41,909)

 

 

 -

Net increase (decrease) in cash and cash equivalents

 
(29,373)

 

 
1,023 

 

 
(24,403)

 

 
(52,753)

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

$
178,218 

 

$
25,318 

 

$
155,996 

 

$
359,532 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidating Cash Flows

 

For the 13-Week Period Ended Sep. 29, 2012

 

Sysco

 

Certain U.S.
 Broadline
Subsidiaries

 

Other
Non-Guarantor
Subsidiaries

 

Consolidated
Totals

 

(In thousands)

Cash flows provided by (used for):

 

 

 

 

 

 

 

 

 

 

 

Operating activities

$
(72,479)

 

$
160,949 

 

$
124,731 

 

$
213,201 

Investing activities

 
(38,440)

 

 
(72,725)

 

 
(121,281)

 

 
(232,446)

Financing activities

 
(123,613)

 

 
118 

 

 
(974)

 

 
(124,469)

Effect of exchange rates on cash

 

 -

 

 

 -

 

 
3,262 

 

 
3,262 

Intercompany activity

 
100,332 

 

 
(87,492)

 

 
(12,840)

 

 

 -

Net increase (decrease) in cash and cash equivalents

 
(134,200)

 

 
850 

 

 
(7,102)

 

 
(140,452)

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

$
336,907 

 

$
35,328 

 

$
176,180 

 

$
548,415