Supplemental Guarantor Information - Subsidiary Guarantees | 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 March 26, 2016 , Sysco had a total of $4.4 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 Mar. 26, 2016 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 271,185 $ 3,995,180 $ 2,693,668 $ — $ 6,960,033 Investment in subsidiaries 9,989,219 249,270 (429,592 ) (9,808,897 ) — Plant and equipment, net 460,989 1,607,870 1,831,611 — 3,900,470 Other assets 1,638 590,248 1,898,705 — 2,490,591 Total assets $ 10,723,031 $ 6,442,568 $ 5,994,392 $ (9,808,897 ) $ 13,351,094 Current liabilities $ 553,741 $ (209,098 ) $ 3,767,429 $ — $ 4,112,072 Intercompany payables (receivables) 1,530,408 (766,374 ) (764,034 ) — — Long-term debt 4,080,728 69,426 124,730 — 4,274,884 Other liabilities 610,479 265,785 41,514 — 917,778 Noncontrolling interest — — 76,929 — 76,929 Shareholders’ equity 3,947,675 7,082,829 2,747,824 (9,808,897 ) 3,969,431 Total liabilities and shareholders’ equity $ 10,723,031 $ 6,442,568 $ 5,994,392 $ (9,808,897 ) $ 13,351,094 Condensed Consolidating Balance Sheet June 27, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 4,894,387 $ 4,012,924 $ 2,586,993 $ — $ 11,494,304 Investment in subsidiaries 9,088,455 — — (9,088,455 ) — Plant and equipment, net 510,285 1,694,659 1,777,199 — 3,982,143 Other assets 371,802 522,566 1,618,466 — 2,512,834 Total assets $ 14,864,929 $ 6,230,149 $ 5,982,658 $ (9,088,455 ) $ 17,989,281 Current liabilities $ 5,851,364 $ 1,658,558 $ 1,889,693 $ — $ 9,399,615 Intercompany payables (receivables) 973,497 (1,996,915 ) 1,023,418 — — Long-term debt 2,154,923 10,121 106,781 — 2,271,825 Other liabilities 624,795 278,458 113,060 — 1,016,313 Noncontrolling interest — — 41,304 — 41,304 Shareholders’ equity 5,260,350 6,279,927 2,808,402 (9,088,455 ) 5,260,224 Total liabilities and shareholders’ equity $ 14,864,929 $ 6,230,149 $ 5,982,658 $ (9,088,455 ) $ 17,989,281 Condensed Consolidating Balance Sheet Mar. 28, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Current assets $ 4,853,790 $ 4,139,132 $ 2,528,385 $ — $ 11,521,307 Investment in subsidiaries 8,412,290 — — (8,412,290 ) — Plant and equipment, net 499,446 1,712,902 1,757,913 — 3,970,261 Other assets 353,870 520,816 1,577,891 — 2,452,577 Total assets $ 14,119,396 $ 6,372,850 $ 5,864,189 $ (8,412,290 ) $ 17,944,145 Current liabilities $ 866,116 $ 946,754 $ 2,526,986 $ — $ 4,339,856 Intercompany payables (receivables) 193,947 (566,285 ) 372,338 — — Long-term debt 7,135,765 16,630 83,546 — 7,235,941 Other liabilities 610,682 303,901 101,153 — 1,015,736 Noncontrolling interest — — 39,729 — 39,729 Shareholders’ equity 5,312,886 5,671,850 2,740,437 (8,412,290 ) 5,312,883 Total liabilities and shareholders’ equity $ 14,119,396 $ 6,372,850 $ 5,864,189 $ (8,412,290 ) $ 17,944,145 Condensed Consolidating Statement of Comprehensive Income For the 13-Week Period Ended Mar. 26, 2016 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 8,081,741 $ 4,305,318 $ (384,268 ) $ 12,002,791 Cost of sales — 6,556,356 3,687,878 (384,268 ) 9,859,966 Gross profit — 1,525,385 617,440 — 2,142,825 Operating expenses 257,953 942,577 564,677 — 1,765,207 Operating income (loss) (257,953 ) 582,808 52,763 — 377,618 Interest expense (income) 80,266 (39,749 ) 17,182 — 57,699 Other expense (income), net (3,153 ) (588 ) (3,211 ) — (6,952 ) Earnings (losses) before income taxes (335,066 ) 623,145 38,792 — 326,871 Income tax (benefit) provision (112,343 ) 209,079 12,999 — 109,735 Equity in earnings of subsidiaries 439,859 — — (439,859 ) — Net earnings 217,136 414,066 25,793 (439,859 ) 217,136 Other comprehensive income (loss) 57,132 — 48,738 (48,738 ) 57,132 Comprehensive income $ 274,268 $ 414,066 $ 74,531 $ (488,597 ) $ 274,268 Condensed Consolidating Statement of Comprehensive Income For the 13-Week Period Ended Mar. 28, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 7,887,203 $ 4,199,743 $ (340,287 ) $ 11,746,659 Cost of sales — 6,431,528 3,597,920 (340,287 ) 9,689,161 Gross profit — 1,455,675 601,823 — 2,057,498 Operating expenses 226,901 919,183 584,106 — 1,730,190 Operating income (loss) (226,901 ) 536,492 17,717 — 327,308 Interest expense (income) 84,578 (28,121 ) 13,093 — 69,550 Other expense (income), net 1,583 (1,997 ) (8,163 ) — (8,577 ) Earnings (losses) before income taxes (313,062 ) 566,610 12,787 — 266,335 Income tax (benefit) provision (105,941 ) 191,160 4,161 — 89,380 Equity in earnings of subsidiaries 384,076 — — (384,076 ) — Net earnings 176,955 375,450 8,626 (384,076 ) 176,955 Other comprehensive income (loss) (91,484 ) — (97,890 ) 97,890 (91,484 ) Comprehensive income $ 85,471 $ 375,450 $ (89,264 ) $ (286,186 ) $ 85,471 Condensed Consolidating Statement of Comprehensive Income For the 39-Week Period Ended Mar. 26, 2016 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 24,805,364 $ 13,125,059 $ (1,211,395 ) $ 36,719,028 Cost of sales — 20,138,552 11,254,237 (1,211,395 ) 30,181,394 Gross profit — 4,666,812 1,870,822 — 6,537,634 Operating expenses 663,804 2,838,705 1,731,450 — 5,233,959 Operating income (loss) (663,804 ) 1,828,107 139,372 — 1,303,675 Interest expense (income) 296,681 (119,751 ) 54,911 — 231,841 Other expense (income), net (13,066 ) (1,417 ) (15,473 ) — (29,956 ) Earnings (losses) before income taxes (947,419 ) 1,949,275 99,934 — 1,101,790 Income tax (benefit) provision (316,299 ) 650,770 33,364 — 367,835 Equity in earnings of subsidiaries 1,365,075 — — (1,365,075 ) — Net earnings 733,955 1,298,505 66,570 (1,365,075 ) 733,955 Other comprehensive income (loss) (64,904 ) — (179,111 ) 179,111 (64,904 ) Comprehensive income $ 669,051 $ 1,298,505 $ (112,541 ) $ (1,185,964 ) $ 669,051 Condensed Consolidating Statement of Comprehensive Income For the 39-Week Period Ended Mar. 28, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In thousands) Sales $ — $ 24,237,503 $ 13,071,370 $ (1,030,059 ) $ 36,278,814 Cost of sales — 19,780,796 11,196,725 (1,030,059 ) 29,947,462 Gross profit — 4,456,707 1,874,645 — 6,331,352 Operating expenses 674,410 2,764,515 1,784,060 — 5,222,985 Operating income (loss) (674,410 ) 1,692,192 90,585 — 1,108,367 Interest expense (income) 228,973 (74,096 ) 22,649 — 177,526 Other expense (income), net 1,103 (2,761 ) (6,900 ) — (8,558 ) Earnings (losses) before income taxes (904,486 ) 1,769,049 74,836 — 939,399 Income tax (benefit) provision (313,552 ) 613,261 25,943 — 325,652 Equity in earnings of subsidiaries 1,204,681 — — (1,204,681 ) — Net earnings 613,747 1,155,788 48,893 (1,204,681 ) 613,747 Other comprehensive income (loss) (277,477 ) — (260,997 ) 260,997 (277,477 ) Comprehensive income $ 336,270 $ 1,155,788 $ (212,104 ) $ (943,684 ) $ 336,270 Condensed Consolidating Cash Flows For the 39-Week Period Ended Mar. 26, 2016 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (485,524 ) $ (377,988 ) $ 1,852,493 $ 988,981 Investing activities 58,442 (133,141 ) (307,636 ) (382,335 ) Financing activities (5,171,619 ) 52,399 19,477 (5,099,743 ) Effect of exchange rates on cash — — (26,109 ) (26,109 ) Intercompany activity 931,696 471,256 (1,402,952 ) — Net increase (decrease) in cash and cash equivalents (4,667,005 ) 12,526 135,273 (4,519,206 ) Cash and cash equivalents at the beginning of period 4,851,067 26,380 252,597 5,130,044 Cash and cash equivalents at the end of period $ 184,062 $ 38,906 $ 387,870 $ 610,838 Condensed Consolidating Cash Flows For the 39-Week Period Ended Mar. 28, 2015 Sysco Certain U.S. Broadline Subsidiaries Other Non-Guarantor Subsidiaries Consolidated Totals (In thousands) Cash flows provided by (used for): Operating activities $ (293,008 ) $ 975,552 $ 177,955 $ 860,499 Investing activities (93,183 ) (84,810 ) (293,862 ) (471,855 ) Financing activities 4,314,029 795 45,639 4,360,463 Effect of exchange rates on cash — — (77,449 ) (77,449 ) Intercompany activity 699,467 (893,979 ) 194,512 — Net increase (decrease) in cash and cash equivalents 4,627,305 (2,442 ) 46,795 4,671,658 Cash and cash equivalents at the beginning of period 158,953 27,772 226,321 413,046 Cash and cash equivalents at the end of period $ 4,786,258 $ 25,330 $ 273,116 $ 5,084,704 |