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 July 1, 2017, Sysco had a total of $8.2 billion 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 or (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
	Jul. 1, 2017
	Sysco		Certain U.S. Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	177,495	$	2,988,736	$	4,867,207	$	—		$	8,033,438
Intercompany receivables	6,559,966		—		—		(6,559,966		)	—
Investment in subsidiaries	6,451,994		—		—		(6,451,994		)	—
Plant and equipment, net	258,527		1,276,342		2,842,433		—			4,377,302
Other assets	151,744		418,968		4,775,203		—			5,345,915
Total assets	$	13,599,726	$	4,684,046	$	12,484,843	$	(13,011,960	)	$	17,756,655
Current liabilities	$	2,766,831	$	2,605,828	$	723,227	$	—		$	6,095,886
Intercompany payables	—		1,642,663		4,917,303		(6,559,966		)	—
Long-term debt	7,588,041		7,773		65,063		—			7,660,877
Other liabilities	863,338		103,784		568,415		—			1,535,537
Noncontrolling interest	—		—		82,839		—			82,839
Shareholders’ equity	2,381,516		323,998		6,127,996		(6,451,994		)	2,381,516
Total liabilities and shareholders’ equity	$	13,599,726	$	4,684,046	$	12,484,843	$	(13,011,960	)	$	17,756,655



	Condensed Consolidating Balance Sheet
	Jul. 2, 2016
	Sysco		Certain U.S. Broadline Subsidiaries		Other Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In thousands)
Current assets	$	3,440,206	$	3,813,524	$	2,800,169	$	—		$	10,053,899
Intercompany receivables	1,348,425		—		749,083		(2,097,508		)	—
Investment in subsidiaries	6,694,615		—		—		(6,694,615		)	—
Plant and equipment, net	429,890		1,587,702		1,862,850		—			3,880,442
Other assets	213,186		642,525		1,931,752		—			2,787,463
Total assets	$	12,126,322	$	6,043,751	$	7,343,854	$	(8,792,123	)	$	16,721,804
Current liabilities	$	621,925	$	111,728	$	3,700,803	$	—		$	4,434,456
Intercompany payables	—		2,097,508		—		(2,097,508		)	—
Long-term debt	7,145,955		62,387		128,588		—			7,336,930
Other liabilities	878,834		248,493		268,097		—			1,395,424
Noncontrolling interest	—		—		75,386		—			75,386
Shareholders’ equity	3,479,608		3,523,635		3,170,980		(6,694,615		)	3,479,608
Total liabilities and shareholders’ equity	$	12,126,322	$	6,043,751	$	7,343,854	$	(8,792,123	)	$	16,721,804



	Condensed Consolidating Statement of Comprehensive Income
	Jul. 1, 2017
	Sysco			Certain U.S. Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	27,200,744		$	29,987,271		$	(1,816,876	)	$	55,371,139
Cost of sales	—			21,912,558			24,717,950			(1,816,876		)	44,813,632
Gross profit	—			5,288,186			5,269,321			—			10,557,507
Operating expenses	931,498			3,123,076			4,449,762			—			8,504,336
Operating income (loss)	(931,498		)	2,165,110			819,559			—			2,053,171
Interest expense (income)	260,365			(95,687		)	138,200			—			302,878
Other expense (income), net	(23,740		)	(837		)	8,640			—			(15,937		)
Earnings (losses) before income taxes	(1,168,123		)	2,261,634			672,719			—			1,766,230
Income tax (benefit) provision	(412,511		)	800,537			235,701			—			623,727
Equity in earnings of subsidiaries	1,898,115			—			—			(1,898,115		)	—
Net earnings	1,142,503			1,461,097			437,018			(1,898,115		)	1,142,503
Other comprehensive income (loss)	95,381			—			(9,317		)	9,317			95,381
Comprehensive income	$	1,237,884		$	1,461,097		$	427,701		$	(1,888,798	)	$	1,237,884



	Condensed Consolidating Statement of Comprehensive Income
	Jul. 2, 2016
	Sysco			Certain U.S. Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	33,932,334		$	18,112,973		$	(1,678,388	)	$	50,366,919
Cost of sales	—			27,485,111			15,519,724			(1,678,388		)	41,326,447
Gross profit	—			6,447,223			2,593,249			—			9,040,472
Operating expenses	944,457			3,857,415			2,388,100			—			7,189,972
Operating income (loss)	(944,457		)	2,589,808			205,149			—			1,850,500
Interest expense (income)	381,122			(145,852		)	70,876			—			306,146
Other expense (income), net	128,777			(1,876		)	(15,554		)	—			111,347
Earnings (losses) before income taxes	(1,454,356		)	2,737,536			149,827			—			1,433,007
Income tax (benefit) provision	(490,579		)	923,416			50,548			—			483,385
Equity in earnings of subsidiaries	1,913,399			—			—			(1,913,399		)	—
Net earnings	949,622			1,814,120			99,279			(1,913,399		)	949,622
Other comprehensive income (loss)	(434,921		)	—			(52,306		)	52,306			(434,921		)
Comprehensive income	$	514,701		$	1,814,120		$	46,973		$	(1,861,093	)	$	514,701



	Condensed Consolidating Statement of Comprehensive Income
	Jun. 27, 2015
	Sysco			Certain U.S. Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In thousands)
Sales	$	—		$	32,626,221		$	17,477,986		$	(1,423,455	)	$	48,680,752
Cost of sales	—			26,572,257			14,980,434			(1,423,455		)	40,129,236
Gross profit	—			6,053,964			2,497,552			—			8,551,516
Operating expenses	1,232,956			3,709,320			2,379,878			—			7,322,154
Operating income (loss)	(1,232,956		)	2,344,644			117,674			—			1,229,362
Interest expense (income)	323,918			(108,233		)	39,122			—			254,807
Other expense (income), net	(9,496		)	(3,609		)	(20,487		)	—			(33,592		)
Earnings (losses) before income taxes	(1,547,378		)	2,456,486			99,039			—			1,008,147
Income tax (benefit) provision	(493,263		)	783,066			31,571			—			321,374
Equity in earnings of subsidiaries	1,740,888			—			—			(1,740,888		)	—
Net earnings	686,773			1,673,420			67,468			(1,740,888		)	686,773
Other comprehensive income (loss)	(280,534		)				(232,185		)	232,185			(280,534		)
Comprehensive income	$	406,239		$	1,673,420		$	(164,717	)	$	(1,508,703	)	$	406,239



	Condensed Consolidating Cash Flows
	Jul. 1, 2017
	Sysco			Certain U.S. Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination ⁽¹⁾			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	1,472,847		$	2,908,792		$	557,343		$	(2,762,557	)	$	2,176,425
Investing activities	(3,274,566		)	(142,124		)	(294,771		)	127,000			(3,584,461		)
Financing activities	(1,463,168		)	(2,782,134		)	(9,964		)	2,635,557			(1,619,709		)
Effect of exchange rates on cash	—			—			(22,104		)	—			(22,104		)
Net increase (decrease) in cash and cash equivalents	(3,264,887		)	(15,466		)	230,504			—			(3,049,849		)
Cash and cash equivalents at the beginning of period	3,376,463			34,069			508,819			—			3,919,351
Cash and cash equivalents at the end of period	$	111,576		$	18,603		$	739,323		—			$	869,502



	Condensed Consolidating Cash Flows
	Jul. 2, 2016
	Sysco			Certain U.S. Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination ⁽¹⁾			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	990,695		$	4,101,840		$	767,607		$	(3,927,000	)	$	1,933,142
Investing activities	20,094			(212,270		)	(408,652		)	—			(600,828		)
Financing activities	(2,485,444		)	(3,881,879		)	35,592			3,927,000			(2,404,731		)
Effect of exchange rates on cash	—			—			(138,327		)	—			(138,327		)
Net increase (decrease) in cash and cash equivalents	(1,474,655		)	7,691			256,220			—			(1,210,744		)
Cash and cash equivalents at the beginning of period	4,851,075			26,378			252,591			—			5,130,044
Cash and cash equivalents at the end of period	$	3,376,420		$	34,069		$	508,811		—			$	3,919,300



	Condensed Consolidating Cash Flows
	Jun. 27, 2015
	Sysco			Certain U.S. Broadline Subsidiaries			Other Non-Guarantor Subsidiaries			Elimination ⁽¹⁾			Consolidated Totals
	(In thousands)
Cash flows provided by (used for):
Operating activities	$	1,019,873		$	191,181		$	422,884		$	(78,454	)	$	1,555,484
Investing activities	(160,234		)	(108,099		)	(386,013		)	—			(654,346		)
Financing activities	3,832,479			(84,476		)	71,105			78,454			3,897,562
Effect of exchange rates on cash	—			—			(81,702		)	—			(81,702		)
Net increase (decrease) in cash and cash equivalents	4,692,118			(1,394		)	26,274			—			4,716,998
Cash and cash equivalents at the beginning of period	158,957			27,772			226,317			—			413,046
Cash and cash equivalents at the end of period	$	4,851,075		$	26,378		$	252,591		—			$	5,130,044

⁽¹⁾ Represents primarily inter-company dividends paid from the subsidiaries to the parent, Sysco Corporation.