Guarantor and Non-Guarantor Financial Information | Guarantor and Non-Guarantor Financial Information Our Senior Notes 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 indentures governing the notes (a) with respect to each series of notes, if we exercise our legal or covenant defeasance option with respect to such series of notes or if our obligations under an indenture are discharged in accordance with the terms of such indenture in respect of such series of notes; (b) with respect to all series of notes issued in March 2015, upon the issuance, sale, exchange, transfer, or other disposition (including through merger, consolidation, amalgamation, or otherwise) of the capital stock of the applicable subsidiary guarantor (including any issuance, sale, exchange, transfer, or other disposition following which the applicable subsidiary guarantor is no longer a subsidiary) if such issuance, sale, exchange, transfer, or other disposition is made in a manner not in violation of the indenture in respect of such series of notes; or (c) with respect to all series of notes, upon the substantially simultaneous release or discharge of the guarantee by such subsidiary guarantor of all of our primary senior indebtedness 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 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, 2017 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 694.7 $ 291.5 $ 2,685.4 $ (1,792.8 ) $ 1,878.8 Cost of products sold 539.3 261.8 2,146.0 (1,791.2 ) 1,155.9 Gross Profit 155.4 29.7 539.4 (1.6 ) 722.9 Selling, distribution, and administrative expenses and other special project costs 75.2 10.5 269.5 — 355.2 Amortization 2.5 — 49.2 — 51.7 Impairment charges — — 75.7 — 75.7 Other operating expense (income) – net 0.1 2.7 (0.2 ) — 2.6 Operating Income 77.6 16.5 145.2 (1.6 ) 237.7 Interest (expense) income – net (40.5 ) 0.3 (0.1 ) — (40.3 ) Other income (expense) – net 3.3 0.1 (3.2 ) — 0.2 Equity in net earnings of subsidiaries 104.0 38.4 16.6 (159.0 ) — Income Before Income Taxes 144.4 55.3 158.5 (160.6 ) 197.6 Income taxes 9.8 0.1 53.1 — 63.0 Net Income $ 134.6 $ 55.2 $ 105.4 $ (160.6 ) $ 134.6 Other comprehensive income (loss), net of tax 9.7 0.2 8.8 (9.0 ) 9.7 Comprehensive Income $ 144.3 $ 55.4 $ 114.2 $ (169.6 ) $ 144.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 784.7 $ 289.6 $ 2,190.5 $ (1,290.9 ) $ 1,973.9 Cost of products sold 591.4 264.3 1,651.9 (1,297.5 ) 1,210.1 Gross Profit 193.3 25.3 538.6 6.6 763.8 Selling, distribution, and administrative expenses and other special project costs 72.9 9.6 340.0 — 422.5 Amortization 0.3 — 51.9 — 52.2 Other operating income – net (24.6 ) — (4.6 ) — (29.2 ) Operating Income 144.7 15.7 151.3 6.6 318.3 Interest (expense) income – net (43.8 ) 0.3 (0.1 ) — (43.6 ) Other (expense) income – net (1.7 ) 0.1 2.2 — 0.6 Equity in net earnings of subsidiaries 119.2 36.5 15.8 (171.5 ) — Income Before Income Taxes 218.4 52.6 169.2 (164.9 ) 275.3 Income taxes 33.1 0.1 56.8 — 90.0 Net Income $ 185.3 $ 52.5 $ 112.4 $ (164.9 ) $ 185.3 Other comprehensive (loss) income, net of tax (18.0 ) 0.2 (19.8 ) 19.6 (18.0 ) Comprehensive Income $ 167.3 $ 52.7 $ 92.6 $ (145.3 ) $ 167.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended January 31, 2017 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 2,198.6 $ 930.8 $ 7,999.6 $ (5,520.5 ) $ 5,608.5 Cost of products sold 1,726.7 844.4 6,366.5 (5,517.6 ) 3,420.0 Gross Profit 471.9 86.4 1,633.1 (2.9 ) 2,188.5 Selling, distribution, and administrative expenses and other special project costs 246.6 31.4 845.1 — 1,123.1 Amortization 7.6 — 147.6 — 155.2 Impairment charges — — 75.7 — 75.7 Other operating expense (income) – net 0.4 2.4 (3.1 ) — (0.3 ) Operating Income 217.3 52.6 567.8 (2.9 ) 834.8 Interest (expense) income – net (123.5 ) 0.9 (0.2 ) — (122.8 ) Other income (expense) – net 4.4 2.8 (2.7 ) — 4.5 Equity in net earnings of subsidiaries 410.0 111.2 55.4 (576.6 ) — Income Before Income Taxes 508.2 167.5 620.3 (579.5 ) 716.5 Income taxes 26.3 0.3 208.0 — 234.6 Net Income $ 481.9 $ 167.2 $ 412.3 $ (579.5 ) $ 481.9 Other comprehensive income (loss), net of tax 2.0 0.8 (14.8 ) 14.0 2.0 Comprehensive Income $ 483.9 $ 168.0 $ 397.5 $ (565.5 ) $ 483.9 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 2,372.7 $ 929.5 $ 6,740.6 $ (4,039.2 ) $ 6,003.6 Cost of products sold 1,831.1 850.8 5,088.8 (4,046.9 ) 3,723.8 Gross Profit 541.6 78.7 1,651.8 7.7 2,279.8 Selling, distribution, and administrative expenses and other special project costs 197.8 30.4 1,025.2 — 1,253.4 Amortization 2.4 — 155.8 — 158.2 Other operating (income) expense – net (24.7 ) 0.4 (6.7 ) — (31.0 ) Operating Income 366.1 47.9 477.5 7.7 899.2 Interest (expense) income – net (131.2 ) 0.9 (0.3 ) — (130.6 ) Other income (expense) – net 1.8 0.2 (2.9 ) — (0.9 ) Equity in net earnings of subsidiaries 342.4 101.7 48.1 (492.2 ) — Income Before Income Taxes 579.1 150.7 522.4 (484.5 ) 767.7 Income taxes 81.4 0.3 188.3 — 270.0 Net Income $ 497.7 $ 150.4 $ 334.1 $ (484.5 ) $ 497.7 Other comprehensive (loss) income, net of tax (37.0 ) 0.7 (43.0 ) 42.3 (37.0 ) Comprehensive Income $ 460.7 $ 151.1 $ 291.1 $ (442.2 ) $ 460.7 CONDENSED CONSOLIDATING BALANCE SHEETS January 31, 2017 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 8.8 $ — $ 130.8 $ — $ 139.6 Inventories — 137.9 860.7 (3.0 ) 995.6 Other current assets 505.4 3.9 61.0 (14.6 ) 555.7 Total Current Assets 514.2 141.8 1,052.5 (17.6 ) 1,690.9 Property, Plant, and Equipment – Net 290.9 563.6 719.8 — 1,574.3 Investments in Subsidiaries 15,491.5 4,429.2 387.8 (20,308.5 ) — Intercompany Receivable — 499.0 1,922.9 (2,421.9 ) — Other Noncurrent Assets Goodwill 1,494.8 — 4,589.9 — 6,084.7 Other intangible assets – net 420.6 — 5,841.4 — 6,262.0 Other noncurrent assets 59.4 11.9 128.5 — 199.8 Total Other Noncurrent Assets 1,974.8 11.9 10,559.8 — 12,546.5 Total Assets $ 18,271.4 $ 5,645.5 $ 14,642.8 $ (22,748.0 ) $ 15,811.7 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 550.7 $ 87.3 $ 373.9 $ (14.7 ) $ 997.2 Noncurrent Liabilities Long-term debt 4,945.0 — — — 4,945.0 Deferred income taxes 70.6 — 2,175.7 — 2,246.3 Intercompany payable 5,125.0 — — (5,125.0 ) — Other noncurrent liabilities 338.2 17.9 25.2 — 381.3 Total Noncurrent Liabilities 10,478.8 17.9 2,200.9 (5,125.0 ) 7,572.6 Total Liabilities 11,029.5 105.2 2,574.8 (5,139.7 ) 8,569.8 Total Shareholders’ Equity 7,241.9 5,540.3 12,068.0 (17,608.3 ) 7,241.9 Total Liabilities and Shareholders’ Equity $ 18,271.4 $ 5,645.5 $ 14,642.8 $ (22,748.0 ) $ 15,811.7 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.0 $ — $ 102.8 $ — $ 109.8 Inventories — 143.2 752.0 4.2 899.4 Other current assets 497.3 5.9 71.9 (10.9 ) 564.2 Total Current Assets 504.3 149.1 926.7 (6.7 ) 1,573.4 Property, Plant, and Equipment – Net 296.3 587.0 744.4 — 1,627.7 Investments in Subsidiaries 15,092.2 4,317.9 331.6 (19,741.7 ) — Intercompany Receivable — 404.7 1,543.9 (1,948.6 ) — Other Noncurrent Assets Goodwill 1,494.8 — 4,596.3 — 6,091.1 Other intangible assets – net 428.3 — 6,066.1 — 6,494.4 Other noncurrent assets 57.4 10.4 129.7 — 197.5 Total Other Noncurrent Assets 1,980.5 10.4 10,792.1 — 12,783.0 Total Assets $ 17,873.3 $ 5,469.1 $ 14,338.7 $ (21,697.0 ) $ 15,984.1 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 723.3 $ 78.9 $ 421.6 $ (10.8 ) $ 1,213.0 Noncurrent Liabilities Long-term debt 5,146.0 — — — 5,146.0 Deferred income taxes 60.7 — 2,169.6 — 2,230.3 Intercompany payable 4,644.7 — — (4,644.7 ) — Other noncurrent liabilities 290.1 17.9 78.3 — 386.3 Total Noncurrent Liabilities 10,141.5 17.9 2,247.9 (4,644.7 ) 7,762.6 Total Liabilities 10,864.8 96.8 2,669.5 (4,655.5 ) 8,975.6 Total Shareholders’ Equity 7,008.5 5,372.3 11,669.2 (17,041.5 ) 7,008.5 Total Liabilities and Shareholders’ Equity $ 17,873.3 $ 5,469.1 $ 14,338.7 $ (21,697.0 ) $ 15,984.1 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended January 31, 2017 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 158.0 $ 124.0 $ 512.8 $ — $ 794.8 Investing Activities Additions to property, plant, and equipment (23.8 ) (30.1 ) (82.7 ) — (136.6 ) Proceeds from disposal of property, plant, and equipment — — 0.4 — 0.4 (Disbursements of) repayments from intercompany loans — (94.4 ) (385.8 ) 480.2 — Other – net (0.2 ) 0.5 (12.2 ) — (11.9 ) Net Cash (Used for) Provided by Investing Activities (24.0 ) (124.0 ) (480.3 ) 480.2 (148.1 ) Financing Activities Short-term repayments – net (142.0 ) — — — (142.0 ) Repayments of long-term debt (200.0 ) — — — (200.0 ) Quarterly dividends paid (252.1 ) — — — (252.1 ) Purchase of treasury shares (19.0 ) — — — (19.0 ) Intercompany payable 480.2 — — (480.2 ) — Other – net 0.7 — — — 0.7 Net Cash Used for Financing Activities (132.2 ) — — (480.2 ) (612.4 ) Effect of exchange rate changes on cash — — (4.5 ) — (4.5 ) Net increase in cash and cash equivalents 1.8 — 28.0 — 29.8 Cash and cash equivalents at beginning of period 7.0 — 102.8 — 109.8 Cash and Cash Equivalents at End of Period $ 8.8 $ — $ 130.8 $ — $ 139.6 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 247.8 $ 119.2 $ 757.8 $ — $ 1,124.8 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Equity investment in affiliate — — (16.0 ) — (16.0 ) Additions to property, plant, and equipment (70.8 ) (32.7 ) (57.3 ) — (160.8 ) Proceeds from divestiture 193.7 — — — 193.7 Proceeds from disposal of property, plant, and equipment — 0.1 0.1 — 0.2 (Disbursements of) repayments from intercompany loans — (85.6 ) (672.2 ) 757.8 — Other – net — (1.0 ) 6.7 — 5.7 Net Cash Provided by (Used for) Investing Activities 122.9 (119.2 ) (730.8 ) 757.8 30.7 Financing Activities Short-term repayments – net (88.0 ) — — — (88.0 ) Repayments of long-term debt (800.0 ) — — — (800.0 ) Quarterly dividends paid (236.5 ) — — — (236.5 ) Purchase of treasury shares (7.8 ) — — — (7.8 ) Intercompany payable 757.8 — — (757.8 ) — Other – net 0.6 — — — 0.6 Net Cash Used for Financing Activities (373.9 ) — — (757.8 ) (1,131.7 ) Effect of exchange rate changes on cash — — (8.9 ) — (8.9 ) Net (decrease) increase in cash and cash equivalents (3.2 ) — 18.1 — 14.9 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 3.9 $ — $ 136.6 $ — $ 140.5 |