UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 29, 201825, 2021
Commission File Number 0-00981Number: 000-00981
ck0000081061-20211225_g1.jpg
PUBLIX SUPER MARKETS, INC.
(Exact name of Registrant as specified in its charter)
Florida59-0324412
(State of incorporation)(I.R.S. Employer Identification No.)
3300 Publix Corporate Parkway, Lakeland, Florida33811
(Address of principal executive offices)(Zip code)Code)
(863) 688-1188
(Registrant’s telephone number, including area code: (863) 688-1188code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock $1.00 Par Value
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.      
Yes         No    X  
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.      
Yes         No    X  
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes    X         No  
Yes    X         No  
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months.
Yes    X         No  
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. (X)
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging“emerging growth company"company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer     Accelerated filer    Non-accelerated filer    X  
Smaller reporting company     Emerging growth company  
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes         No    X  
The aggregate market value of the common stock held by non-affiliates of the Registrant was approximately $16,703,262,000$24,685,978,000 as of June 29, 2018,25, 2021, the last business day of the Registrant’s most recently completed second fiscal quarter.
The number of shares of the Registrant’s common stock outstanding as of February 5, 20191, 2022 was 713,636,000.682,254,000.
Documents Incorporated By Reference
The information required by Part III of this report, to the extent not set forth herein, is incorporated by reference from the Proxy Statement solicited for the 20192022 Annual Meeting of Stockholders to be held on April 16, 2019.

12, 2022.



TABLE OF CONTENTS


Page
Page
PART I
Item 1.
1
Item 1A.
23
Item 1B.
46
Item 2.
46
Item 3.
46
Item 4.
46
PART II
Item 5.
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
56
Item 6.
89
Item 7.
9
Item 7A.
1514
Item 8.
1615
Item 9.
3840
Item 9A.
3840
Item 9B.
3840
Item 9C.
40
PART III
Item 10.
3840
Item 11.
3840
Item 12.
3840
Item 13.
3840
Item 14.
3840
3941
PART IV
Item 15.
4143
Item 16.
4143



PART I
Item 1. Business
Publix Super Markets, Inc. and its wholly owned subsidiaries (the Company)(Company) are in the business of operating retail food supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. The Company plans to expand its retail operations into Kentucky in 2023. The Company was founded in 1930 and later merged into another corporation that was originally incorporated in 1921. The Company has no other significant lines of business or industry segments.
Merchandising and manufacturing
The Company sells a variety of merchandise which includes grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. The percentage of consolidated sales byThis merchandise category for 2018, 2017 and 2016 was as follows:
  2018 2017 2016
Grocery 84% 84% 84%
Other 16% 16% 16%
  100% 100% 100%
The Company’s lines of merchandise include a variety ofincludes nationally advertised and private label brands as well as unbranded products such as produce, meat and seafood. Private label items are produced in the Company’s dairy, bakery and deli manufacturing facilities or are manufactured for the Company by suppliers. The Company receives the food and nonfood products it distributessells from many sources. These products are delivered to the supermarkets through Company distribution centers or directly from the suppliers and are generally available in sufficient quantities to enable the Company to satisfy its customers. The Company believes that its sources of supply offor these products and the raw materials used in manufacturing are adequate for its needs and that it is not dependent upon a single supplier or relatively few suppliers. Approximately 77% ofMerchandise is delivered to the totalsupermarkets through Company distribution centers or directly from suppliers and is generally available in sufficient quantities to enable the Company to satisfy its customers. The cost of products purchased ismerchandise delivered to the supermarkets through the Company’s distribution centers. Private label items are produced incenters is approximately 74% of the total product costs. The coronavirus pandemic has impacted the Company’s dairy, bakerysources of supply, product mix and deli manufacturing facilities or are manufactured forthe availability of certain products. However, the Company by suppliers.has generally been able to secure alternative sources of supply to serve the needs of its customers. The Company has experienced no significant changes in the kinds of products sold or in its methods of distribution since the beginningfuture impact of the fiscal year.coronavirus pandemic on sources of supply, product mix and customer demand is uncertain and difficult to predict.
Store operations
The Company operated 1,2111,293 supermarkets at the end of 2018,2021, compared with 1,1671,264 at the beginning of the year. In 2018, 512021, 45 supermarkets were opened (including eight10 replacement supermarkets) and 146134 supermarkets were remodeled. SevenSixteen supermarkets were closed during the period. The replacement supermarkets that opened in 20182021 replaced one supermarket closed in 2018 and sevensix supermarkets closed in 2017. Three of the remaining2021 and four supermarkets closed in 2018a previous period. Nine supermarkets closed in 2021 will be replaced on site in a subsequent periodsperiod and three supermarketsone supermarket will not be replaced. NewNet new supermarkets added 2.11.3 million square feet in 2018,2021, an increase of 3.9%2.2%. At the end of 2018,2021, the Company had 798830 supermarkets located in Florida, 186194 in Georgia, 7182 in Alabama, 5965 in South Carolina, 4452 in Tennessee, 4151 in North Carolina and 1219 in Virginia. Also, at the end of 2018,2021, the Company had eight24 supermarkets under construction in Florida, foureight in Georgia, six in Alabama, three in South Carolina and three in Virginia, two in Tennessee, two in North Carolina and one in Georgia.Tennessee.
Competition
The Company is engaged in the highly competitive retail food industry. The Company’s competitors include traditional supermarkets, such as national and regional supermarket chains and independent supermarkets, as well as nontraditional competitors, such as supercenters, membership warehouse clubs, mass merchandisers, dollar stores, drug stores, specialty food stores, restaurants, convenience stores and online retailers. The Company’s ability to attract and retain customers is based primarily on quality of goods and service, price, convenience, product mix and store location. 
Working capital
The Company’s working capital at the end of 2018 consisted of $3,814.2 million in current assets and $3,009.6 million in current liabilities. Normal operating fluctuations in these balances can result in changes to cash flows from operating activities presented in the consolidated statements of cash flows that are not necessarily indicative of long-term operating trends. There are no unusual industry practices or requirements relating to working capital items.
Seasonality
The historical influx of winter residents to Florida and increased purchases of products during the traditional Thanksgiving, Christmas and Easter holidays typically result in seasonal sales increases from November to April of each year. However, the impact of the coronavirus pandemic on travel, tourism and consumer spending may affect the Company’s seasonal sales.

Human capital resources

1

EmployeesEmployee Ownership
The Company had 202,000is the largest employee-owned company in the U.S. with 232,000 employees at the end of 2018.2021. The Company is dedicated to the dignity, value and employment security of its employees and recognizes they are its most important asset and primary competitive advantage. The Company considers its employee relations to be good.
Career Development
The Company believes in promoting its employees from within and is committed to providing them with many opportunities for advancing their careers. Almost all of the Company’s employees in leadership positions began their Publix careers in entry level positions. Continuous on-the-job training plays an important role in helping employees develop the skills necessary to advance their careers. The Company also offers tuition reimbursement designed to encourage and assist eligible associates in continuing their education. Additionally, the Company invests in the development of its employees through training and leadership development programs to support their career advancement.

1

Community Involvement
The Company is committed to community involvement, with a primary focus of helping alleviate hunger in the communities it serves. Since 2009, the Company has donated more than $2 billion in food to food banks and other nonprofit organizations. Due to the coronavirus pandemic, there has been an increased need for this effort. As a result, the Company launched an initiative to purchase produce and milk from local farmers and deliver the products to food banks for those in need. The Company extended this commitment by implementing its Feeding More Together program. Through this program, customer donations at the registers enable food banks to purchase nonperishable products they need most. The Company matches the customer donations by purchasing an equivalent dollar value of produce from farmers and donating it to the food banks. The Company is also involved in many other community activities and programs in the areas it serves.
Intellectual property
The Company’s trademarks, trade names, copyrights and similar intellectual property are important to the success of the Company’s business. Numerous trademarks, including “Publix” and “Where Shopping is a Pleasure,” have been registered with the U.S. Patent and Trademark Office. Due to the importance of its intellectual property to its business, the Company actively defends and enforces its rights to such property.
Environmental mattersGovernment regulation
The Company’s operations areCompany is subject to regulation under federal, state and local environmental protection laws and regulations.regulations, including environmental laws and regulations that govern activities that may have adverse environmental effects and impose liabilities for the costs of contamination cleanup and damages arising from sites of past spills, disposals or other releases of hazardous materials. The Company may be held responsible for the remediation of environmental conditions regardless of whether the Company leases, subleases or owns the supermarkets or other facilities and regardless of whether such environmental conditions were created by the Company or a prior owner or tenant. In addition to environmental laws and regulations, the Company is subject to liability under applicable environmentalfederal, state and local laws for cleanupand regulations relating to, among other things, product labeling and safety, zoning, land use, workplace safety, public health, accessibility and restrictions on the sale of contamination atvarious products, including alcoholic beverages, tobacco and drugs. The Company is also subject to laws and regulations governing its facilities.relationship with employees, including minimum wage requirements, overtime, working conditions, disabled access and work permit requirements. Compliance with these laws and regulations had no material effect on capital expenditures, results of operations or the competitive position of the Company.
Company information
The Company’s Annual Reports on Form 10-K, Proxy Statements, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be obtained electronically, free of charge, through the Company’s website at corporate.publix.com/stock.
2

Item 1A. Risk Factors
In addition to the other information contained in this Annual Report on Form 10-K (Annual Report), the following risk factors should be considered carefully in evaluating the Company’s business. The Company’s financial condition and results of operations could be materially and adversely affected by any of these risks.
Industry and Economic Risks
Unfavorable impacts of the coronavirus pandemic or any future public health crisis on operations, customers, employees, suppliers and tenants could adversely affect the Company.
On March 13, 2020, the coronavirus pandemic was declared a national emergency. The coronavirus pandemic resulted in national, state and local authorities mandating or recommending isolation and other preventative measures for large portions of the population, including mandatory business restrictions and closures. While some of these preventative measures, which were necessary to slow the spread of the virus and protect lives, have been eased, the impact of the coronavirus pandemic remains uncertain and difficult to predict.
The Company’s operations may be adversely impacted by the fear of exposure to or actual effects of the coronavirus. These impacts include:
•operating cost increases due to changes in customer demand, changes in supermarket processes or increased government regulation;
•delays in the timing of remodels and opening new supermarkets;
•reduced workforce due to illness, quarantine or government mandates impacting the Company’s supermarket, distribution, manufacturing and support operations;
•temporary supermarket closings or reduced hours of operation due to reduced workforce, enhanced cleaning processes, increased stocking or government mandates;
•supply chain risks from goods produced in areas of significant coronavirus outbreak or disruption from suppliers due to financial or operational difficulties;
•reduction in travel, tourism or consumer spending due to government recommendations or mandates, fear of exposure to the coronavirus or adverse economic conditions;
•changes in customer demand from discretionary or higher priced products to lower priced products; or
•uncertainty as to future operations of tenants in Company owned shopping centers due to adverse economic conditions.
The extent to which the coronavirus pandemic will continue to impact the Company will depend on future developments, which remain uncertain and difficult to predict, including the emergence, severity and duration of variants, vaccination rates among the population, the effectiveness of vaccines and treatment development and delivery, the direct and indirect economic effects of the coronavirus pandemic and potential changes in consumer behavior, among others. The future impact of the coronavirus pandemic could adversely affect the Company’s financial condition and results of operations.
Increased competition could adversely affect the Company.
The Company is engaged in the highly competitive retail food industry. The Company’s competitors include traditional supermarkets, such as national and regional supermarket chains and independent supermarkets, as well as nontraditional competitors, such as supercenters, membership warehouse clubs, mass merchandisers, dollar stores, drug stores, specialty food stores, restaurants, convenience stores and online retailers. There has been a trend for traditional supermarkets to lose market share to nontraditional competitors. The Company’s ability to attract and retain customers is based primarily on quality of goods and service, price, convenience, product mix and store location. The Company believes it will face increased competition in the future from existing and potentially new competitors. The impact of pricing, purchasing, advertising or promotional decisions made by its competitors as well as competitor format innovation, and location additions and changes in service offerings could adversely affect the Company’s financial condition and results of operations.
GeneralAdverse economic and other conditions that impact consumer spending could adversely affect the Company.
The Company’s results of operations are sensitive to changes in general economic conditions that impact consumer spending. Adverse economic conditions, including high unemployment, home foreclosures and weakness in the housing market, declines in the stock market and the instability of the credit markets, could cause a reduction in consumer spending. While there has been a trend toward lower unemployment and fuel prices in recent periods which has contributed to a better economic climate, there is uncertainty about the continued strength of the economy. If the economy weakens, or if fuel prices increase, consumers may reduce consumer spending. Other conditions that could affectreduce consumer spending include increases in tax, interest and inflation rates, increases in fuel and energy costs, increases in health care costs, the impact of natural disasters, public health crises or acts of terrorism, and other factors. Reductions in the level of consumer spending could cause customerschanges in customer demand from discretionary or higher priced products to purchase lower margin itemspriced products or shift spending to lower priced competitors, which could adversely affect the Company’s financial condition and results of operations.
3

Business and Operational Risks
Increased operating costs could adversely affect the Company.
The Company’s operations tend to be more labor intensive than some of its competitors primarily due to the additional customer service offered in its supermarkets. Consequently, uncertain labor markets, government mandated increases in the minimum wage or other benefits, increased wage rates by retailers and other labor market competitors, an increased proportion of full-time employees, increased costs of health care due to health insurance reform or other factors could result in increased labor costs.costs and disproportionately impact the Company in comparison to some of its competitors. The inability to improve or manage operating costs, including labor, facilities or other non-product related costs, could adversely affect the Company’s financial condition and results of operations.


2

Failure to execute the Company’s core strategies could adversely affect the Company.
The Company’s core strategies focus on customer service, product quality, shopping environment, competitive pricing and convenient locations.customer convenience. The Company has implemented several strategic business and technology initiatives as part of the execution of these core strategies. The Company believes these core strategies and related strategic initiatives differentiate it from its competition and present opportunities for sustained market share and financial growth. Failure to execute these core strategies, or failure to execute the core strategies in a cost effective manner, could adversely affect the Company’s financial condition and results of operations.
Failure to identify and obtain or retain suitable supermarket sites could adversely affect the Company.
The Company’s ability to obtain sites for new supermarkets is dependent on identifying and entering into lease or purchase agreements on commercially reasonable terms for properties that are suitable for its needs. If the Company fails to identify suitable sites and enter into lease or purchase agreements on a timely basis for any reason, including competition from other companies seeking similar sites, the Company’s growth could be adversely affected because it may be unable to open new supermarkets as anticipated. Similarly, the Company could be adversely affected if it is unable to retain sites for its existing leased supermarkets on commercially reasonable terms.
Information Security and Technology Risks
Failure to maintain the privacy and security of confidential customer and business information and the resulting unfavorable publicity could adversely affect the Company.
The Company receives, retains and transmits confidential information about its customers, employees and suppliers and entrusts certain of that information to third party service providers. The Company depends upon the secure transmission of confidential information, including customer payments, over external networks. Additionally, the use of individually identifiable data by the Company and its third party service providers is subject to federal, state and local laws and regulations. Although the Company has continuously invested in its information technology systems and implemented policies and procedures to protect its confidential information, there is no assurance that the Company will successfully defend against an intrusion into or compromise of the Company’s information technology systems or those of its third party service providers. An intrusion into or compromise of the Company’s information technology systems, or those of its third party service providers, that results in customer, employee or supplier information being obtained by unauthorized persons could adversely affect the Company’s reputation with existing and potential customers, employees and others. Such an intrusion or compromise could require expending significant resources related to remediation, lead to legal proceedings and regulatory actions, result in a disruption of operations and adversely affect the Company’s financial condition and results of operations.
Disruptions in information technology systems could adversely affect the Company.
The Company is dependent on complex information technology systems to operate its business, enhance customer service, improve the efficiency of its supply chain and increase employee efficiency. Certain of these information technology systems are hosted by third party service providers. The Company’s information technology systems, as well as those of the Company’s third party service providers, are subject to damage or interruption from power outages, computer and telecommunicationstelecommunication failures, computer viruses, malicious service disruptions, catastrophic events and user errors. Significant disruptions in the information technology systems of the Company or its third party service providers could adversely affect the Company’s financial condition and results of operations.
4

Self-insured Claims and Product Liability Risks
Changes in the insurance market or factors affecting insured and self-insured claims could adversely affect the Company.
The Company uses a combination of insurance coverage and self-insuranceClaims related to provide for potential liability forhealth care, employee benefits, workers’ compensation, general liability, property, plant and equipment, fleet liability and directors and officers liability.liability are generally self-insured. The Company is self-insureduses third party insurance in certain instances to partially mitigate the risk related to these potential losses. While the Company estimates its exposure for property, plantthese claims and equipment losses. The Company’s insured claims experience or changesestablishes reserves for the estimated liabilities, the actual liabilities could be in the insurance market could impact the Company’s ability to maintain its insurance coverage or obtain comparable insurance coverage on commercially reasonable terms. The Company’s inability to maintain or obtain insurance coverage,excess of these reserves. In addition, the frequency or severity of claims, litigation trends, benefit level changes, or catastrophic events involving property, plant and equipment losses could adversely affect the Company’s financial condition and results of operations.
Product liability claims, product recalls and the resulting unfavorable publicity could adversely affect the Company.
The distribution and sale of grocery, drug and other products purchased from suppliers or manufactured by the Company entails an inherent risk of product liability claims, product recalls and the resulting adverse publicity. Such products may contain contaminants and may be inadvertently sold by the Company. These contaminants may, in certain cases, result in illness, injury or death if processing at the consumer level, if applicable, does not eliminate the contaminants. Sale of contaminated products, even if inadvertent, may be a violation of law and may lead to a product recall and/or an increased risk of exposure to product liability claims asserted against the Company. If a product liability claim is successful the Company’s insurance coverage may not be adequate to pay all liabilities, and the Company may not be able to maintain such insurance coverage or obtain comparable insurance coverage on commercially reasonable terms. If the Company does not have adequate insurance coverage or contractual indemnification available, product liability claimsthe claim could have an adverse effect on the Company’s financial condition and results of operations. In addition, even if a product liability claim is not successful or is not fully pursued, the adverse publicity surrounding any assertion that the Company’s products caused illness or injury could have an adverse effect on the Company’s reputation with existing and potential customers and on the Company’s financial condition and results of operations.


3

Legal and Regulatory Risks
Unfavorable changes in, failure to comply with or increased costs to complyof complying with environmental laws and regulations could adversely affect the Company.
The Company is subject to federal, state and local laws and regulations that govern activities that may have adverse environmental effects and impose liabilities for the costs of contamination cleanup and damages arising from sites of past spills, disposals or other releases of hazardous materials. Under current environmental laws and regulations, the Company may be held responsible for the remediation of environmental conditions regardless of whether the Company leases, subleases or owns the supermarkets or other facilities and regardless of whether such environmental conditions were created by the Company or a prior owner or tenant. Environmental conditions relating to prior, existing or future sites may result in substantial remediation costs, business interruption or adverse publicity which could adversely affect the Company’s financial condition and results of operations. In addition, the increased focus on climate change, waste management and other environmental issues may result in new environmental laws or regulations that could result in increased compliance costs to the Company, directly or indirectly through its suppliers, which could adversely affect the Company’s financial condition and results of operations.
Unfavorable changes in, failure to comply with or increased costs to complyof complying with laws and regulations could adversely affect the Company.
In addition to environmental laws and regulations, the Company is subject to federal, state and local laws and regulations relating to, among other things, product labeling and safety, zoning, land use, workplace safety, public health, accessibility and restrictions on the sale of various products, including alcoholic beverages, tobacco and drugs. The Company is also subject to laws and regulations governing its relationship with employees, including minimum wage requirements, overtime, working conditions, disabled access and work permit requirements. Increased costs to complyof complying with existing, new or changes in laws and regulations could adversely affect the Company’s financial condition and results of operations.
Unfavorable results of legal proceedings could adversely affect the Company.
The Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business, including employment, personal injury, commercial and other matters. Some lawsuits also contain class action allegations. The Company estimates its exposure to these legal proceedings and establishes reserves for the estimated liabilities. Assessing and predicting the outcome of these matters involves substantial uncertainties. Differences in actual outcomes, or changes in the Company’s assessment and predictions of the outcomes, could adversely affect the Company’s financial condition and results of operations.
5

Item 1B. Unresolved Staff Comments
None
Item 2. Properties
At year end, the Company operated 57.060.9 million square feet of supermarket space. The Company’s supermarkets vary in size. Current supermarket prototypes range from 20,00028,000 to 61,00055,000 square feet. Supermarkets are often located in shopping centers where the Company is the anchor tenant. The majority of the Company’s supermarkets are leased. Initial lease terms of these leases are typically 20 years followed by five year renewal options. Both the building and land are owned at 343369 locations. The building is owned while the land is leased at 7479 other locations.
The Company supplies its supermarkets from nine primary distribution centers located in Lakeland, Miami, Jacksonville, Sarasota, Orlando, Deerfield Beach and Boynton Beach, Florida, Lawrenceville, Georgia and McCalla, Alabama. A new distribution center is currently under construction in Greensboro, North Carolina. The Company operates six manufacturing facilities, including three dairy plants located in Lakeland and Deerfield Beach, Florida and Lawrenceville, Georgia, two bakery plants located in Lakeland, Florida and Atlanta, Georgia and a deli plant located in Lakeland, Florida.
The Company’s corporate offices, primary distribution centers and manufacturing facilities are owned with no outstanding debt. The Company’s properties are well maintained, in good operating condition and suitable for operating its business.
Item 3. Legal Proceedings
The Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business. The Company believes its recorded reserves are adequate in light of the probable and estimable liabilities. The estimated amount of reasonably possible losses for lawsuits, claims and charges, individually and in the aggregate, is considered to be immaterial. In the opinion of management, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
Item 4. Mine Safety Disclosures
Not applicable


4

PART II
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
(a)Market Information
(a)Market Information
The Company’s common stock is not traded on an established securities market. Substantially all transactions of the Company’s common stock have been among the Company, its employees, former employees, their families and the retirement plans established for the Company’s employees. Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the Employee Stock Purchase Plan (ESPP) and Non-Employee Directors Stock Purchase Plan (Directors Plan) and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the Employee Stock Ownership Plan (ESOP). The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company. The Company serves as the registrar and stock transfer agent for its common stock.
Because there is no trading of the Company’s common stock on an established securities market, the market price of the Company’s common stock is determined by its Board of Directors. As part of the process to determine the market price, an independent valuation is obtained. The process includes comparing the Company’s financial results to those of comparable companies that are publicly traded (comparable publicly traded companies). The purpose of the process is to determine a value for the Company’s common stock that is comparable to the stock value of comparable publicly traded companies by considering both the results of the stock market and the relative financial results of comparable publicly traded companies.
6

The market prices for the Company’s common stock for 20182021 and 20172020 were as follows:
20212020
January - February$57.95 47.10 
March - April60.20 48.90 
May - July61.30 50.10 
August - October63.10 54.35 
November - December66.40 57.95 
  2018 2017
January - February $36.85
 40.15
March - April 41.40
 40.90
May - July 41.75
 39.15
August - October 42.55
 36.05
November - December 42.70
 36.85
(b)Approximate Number of Equity Security Holders
(b)Approximate Number of Equity Security Holders
As of February 5, 2019,1, 2022, the approximate number of holders of record of the Company’s common stock was 189,000.214,000.
(c)Dividends
(c)Dividends
The Company paid quarterly dividends per share on its common stock in 20182021 and 20172020 as follows:
Quarter 2018 2017Quarter20212020
First $0.23
 0.2225
First$0.32 0.30 
Second 0.26
 0.2300
Second0.37 0.32 
Third 0.26
 0.2300
Third0.37 0.32 
Fourth 0.26
 0.2300
Fourth0.37 0.32 
 $1.01
 0.9125
$1.43 1.26 
Payment of dividends is within the discretion of the Board of Directors and depends on, among other factors, net earnings, capital requirements and the financial condition of the Company. However, the Company intends to continue to pay comparable dividends to stockholders in the future.

(d)Purchases of Equity Securities by the Issuer

5

(d)Purchases of Equity Securities by the Issuer
Issuer Purchases of Equity Securities
Shares of common stock repurchased by the Company during the three months ended December 29, 201825, 2021 were as follows (amounts are in thousands, except per share amounts):
Period
Total
Number of
Shares
Purchased
Average
Price Paid
per Share
Total
Number of
Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs (1)
Approximate
Dollar Value
of Shares
That May Yet Be
Purchased Under
the Plans or
Programs (1)
September 26 - October 30, 2021860 $63.10 N/AN/A
October 31 - November 27, 20212,642   66.40 N/AN/A
November 28 - December 25, 20211,129   66.40 N/AN/A
 
Total
4,631 $65.79 N/AN/A
Period 
Total Number of Shares Purchased
 
Average Price Paid per Share
 
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
 
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
September 30, 2018
through
November 3, 2018
  1,708
   $42.64
  N/A N/A
November 4, 2018
through
December 1, 2018
  2,160
   42.70
  N/A N/A
December 2, 2018
through
December 29, 2018
  1,142
   42.70
  N/A N/A
 
 
Total
  5,010
   $42.68
  N/A N/A



























____________________________
(1)Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the ESPP and Directors Plan and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the ESOP. The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company.
(1)Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the ESPP and Directors Plan and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the ESOP. The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company.
The Company’s common stock is not traded on an established securities market. The amount of common stock offered to the Company for repurchase is not within the control of the Company, but is at the discretion of the stockholders. The Company does not believe that these repurchases of its common stock are within the scope of a publicly announced plan or program (although the terms of the plans discussed above have been communicated to the participants). Thus, the Company does not believe that it has made any repurchases during the three months ended December 29, 201825, 2021 required to be disclosed in the last two columns of the table.


7
6


(e)Performance Graph
(e)Performance Graph
The following performance graph sets forth the Company’s cumulative total stockholder return during the five years ended December 29, 2018,25, 2021, compared to the cumulative total return on the S&P 500 Index and a custom Peer Group Index including retail food supermarket companies.(1) The Peer Group Index is weighted based on the various companies’ market capitalization. The comparison assumes $100 was invested at the end of 20132016 in the Company’s common stock and in each of the related indices and assumes reinvestment of dividends.
The Company’s common stock is valued as of the end of each fiscal quarter. After the end of a quarter, however, shares continue to be traded at the prior valuation until the new valuation is received. The cumulative total return for the companies represented in the S&P 500 Index and the custom Peer Group Index is based on those companies’ trading price as of the Company’s fiscal year end. The following performance graph is based on the Company’s trading price at fiscal year end based on its market price as of the prior fiscal quarter. For comparative purposes, a performance graph based on the Company’s fiscal year end valuation (market price as of March 1, 2019)2022) is provided in the 20192022 Proxy Statement. Past stock performance shown below is no guarantee of future performance.
Comparison of Five-YearFive Year Cumulative Return Based Upon Fiscal Year End Trading Price
chart-878021c886845bdfbe8.jpgck0000081061-20211225_g2.jpg
201620172018201920202021
ck0000081061-20211225_g3.jpg
Publix$100.00 93.99 111.59 126.29 159.14 186.53 
ck0000081061-20211225_g4.jpg
S&P 500100.00 121.83 115.49 153.58 178.76 231.39 
ck0000081061-20211225_g5.jpg
Peer Group (1)
100.00 92.07 102.22 109.29 119.88 170.62 
  2013 2014 2015 2016 2017 2018 
symbol1a01a09.jpg
Publix$100.00 115.18 145.12 142.28 133.73 158.78 
symbol2a01a09.jpg
S&P 500100.00 115.77 116.66 129.57 157.86 149.65 
symbol3a01a09.jpg
Peer Group (1)
100.00 131.56 171.85 159.81 147.14 163.36 




___________________________
(1)Companies included in the Peer Group are Ahold Delhaize, Kroger and Weis Markets. Ahold and Delhaize Group merged into Ahold Delhaize in 2016. The Peer Group includes Ahold Delhaize for 2016 - 2018 and Ahold and Delhaize Group in prior years. Supervalu is no longer included in the Peer Group due to its acquisition by United Natural Foods in 2018.

(1)Companies included in the Peer Group are Ahold Delhaize, Albertsons, Kroger and Weis Markets. Albertsons is included in the Peer Group for 2021 due to its initial public offering in 2020.

8
7


Item 6. Selected Financial DataReserved

2018 2017
2016 (1)

2015
2014 

(Amounts are in thousands, except per share  amounts and number of supermarkets)

 
Sales:


 















 
Sales$36,093,907  34,558,286 
33,999,921 
32,362,579 
30,559,505  
Percent change4.4%   1.6%



5.1%



5.9%



5.7%   
Comparable store sales percent change2.1%   1.7%



1.9%



4.2%



5.4%

 
Earnings:


 














 
Gross profit (2)
$9,782,516  9,428,569 
9,265,616 
8,902,969 
8,326,855  
Earnings before income tax expense$2,920,968  3,027,506 
2,940,376 
2,869,261 
2,570,121  
Net earnings$2,381,167  
2,291,894 (3)
2,025,688 
1,965,048 
1,735,308  
Net earnings as a percent of sales6.6%   
          6.6% (3)
6.0%



6.1%



5.7%

 
Common stock:


 














 
Weighted average shares outstanding726,407  753,483 
769,267 
774,428 
778,708  
Earnings per share$3.28  
3.04 (3)
2.63 
2.54 
2.23  
Dividends per share$1.01  0.9125 
0.8675 
0.79  0.74  
Financial data:


 














 
Capital expenditures$1,350,089  1,429,059 
1,443,827 
1,235,648 
1,374,124  
Working capital$804,641  942,607 
1,574,464 
1,411,744 
1,035,758  
Current ratio1.27  1.30 
1.53 
1.49 
1.38  
Total assets$18,982,516  18,183,506 
17,386,458 
16,359,278 
15,083,480  
Long-term debt (including current portion)$167,665  193,074 
250,584 
236,446 
217,638  
Common stock related to ESOP$3,134,999  3,053,138 
3,068,097 
2,953,878 
2,680,528  
Total equity$14,994,664  14,108,619 
13,497,437 
12,431,262 
11,345,223  
Supermarkets1,211  1,167 
1,136 
1,114 
1,095  
           
Non-GAAP Financial Measures: (4)
          
Net earnings excluding impact of fair value adjustment$2,517,493  N/A  N/A  N/A  N/A  
Net earnings as a percent of sales excluding impact of fair value adjustment7.0%   N/A  N/A  N/A  N/A  
Earnings per share excluding impact of fair value adjustment$3.47  N/A  N/A  N/A  N/A  






___________________________
(1)Fiscal year 2016 includes 53 weeks. All other years include 52 weeks.
(2)Gross profit represents sales less cost of merchandise sold as reported in the consolidated statements of earnings.
(3)During 2017, the Company recorded the remeasurement of deferred income taxes due to the Tax Cuts and Jobs Act of 2017 (Tax Act). Excluding the impact of the Tax Act, net earnings would have been $2,067,699,000 or $2.74 per share and 6.0% as a percent of sales.
(4)In addition to reporting financial results for 2018 in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents net earnings and earnings per share excluding the impact of the Accounting Standards Update requiring equity securities be measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). For a more detailed description of these measures, refer to Non-GAAP Financial Measures in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.


8

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The objective of this section is to provide a summary of material information relevant to enhancing the stockholders’ understanding of the financial condition and results of operations of the Company. Following is an analysis of the financial condition and results of operations of the Company for 2021 and 2020 as compared with the previous years. This information should be read in conjunction with the Company’s consolidated financial statements and accompanying notes.
Overview
The Company is engaged in the retail food industry, operating supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. The Company plans to expand its retail operations into Kentucky in 2023. The Company has no other significant lines of business or industry segments. As of December 29, 2018,25, 2021, the Company operated 1,2111,293 supermarkets including 798830 located in Florida, 186194 in Georgia, 7182 in Alabama, 5965 in South Carolina, 4452 in Tennessee, 4151 in North Carolina and 1219 in Virginia. In 2018, 512021, 45 supermarkets were opened (including eight10 replacement supermarkets) and 146134 supermarkets were remodeled. During 2018,2021, the Company opened 2429 supermarkets in Florida, 11five in Tennessee, four in Georgia, three in Alabama, two in North Carolina six in Alabama, four in Virginia, three in Tennessee,and two in Georgia and one in South Carolina. SevenSixteen supermarkets were closed during the period. The replacement supermarkets that opened in 20182021 replaced one supermarket closed in 2018 and sevensix supermarkets closed in 2017. Three of the remaining2021 and four supermarkets closed in 2018a previous period. Nine supermarkets closed in 2021 will be replaced on site in a subsequent periodsperiod and three supermarketsone supermarket will not be replaced. In the normal course of operations, the Company replaces supermarkets and closes supermarkets that are not meeting performance expectations. The impact of future supermarket closings is not expected to be material.
The Company sells a variety of merchandise to generate revenues. This merchandise includes grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. Merchandise includes nationally advertised and private label brands as well as unbranded products such as produce, meat and seafood. The Company’s revenues are earned and cash is generated as merchandise is sold to customers. Incomeprivate label brands play an important role in its merchandising strategy.
Profit is earned by selling merchandise at price levels that produce sales in excess of the cost of merchandise sold and operating and administrative expenses. The Company has generally been able to increase revenues and net earnings from year to year. Further, the Company has been able to meet its cash requirements from internally generated funds without the need for debt financing. The Company’s year end cash balances are impacted by its operating results as well as by capital expenditures, investment transactions, common stock repurchases and dividend payments.
The Company sells a variety of merchandise to generate revenues. This merchandise includes grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. Merchandise includes a variety of nationally advertised and private label brands as well as unbranded products such as produce, meat and seafood. The Company’s private label brands play an important role in its merchandising strategy.
Operating Environment
The Company is engaged in the highly competitive retail food industry. The Company’s competitors include traditional supermarkets, such as national and regional supermarket chains and independent supermarkets, as well as nontraditional competitors, such as supercenters, membership warehouse clubs, mass merchandisers, dollar stores, drug stores, specialty food stores, restaurants, convenience stores and online retailers. There has been a trend for traditional supermarkets to lose market share to nontraditional competitors. The Company’s ability to attract and retain customers is based primarily on quality of goods and service, price, convenience, product mix and store location. In addition, the Company competes with other companies for new retail sites. To meet the challenges of this highly competitive environment, the Company continues to focus on its core strategies, including customer service, product quality, shopping environment, competitive pricing and convenient locations.customer convenience. The Company has implemented several strategic business and technology initiatives as part of the execution of these core strategies. The Company believes these core strategies and related strategic initiatives differentiate it from its competition and present opportunities for sustained market share and financial growth.
Hurricane ImpactCoronavirus Pandemic
In September 2017,On March 13, 2020, the Companycoronavirus pandemic was impacted by Hurricane Irma. Temporary supermarket closings occurred primarilydeclared a national emergency. The coronavirus pandemic resulted in Florida duenational, state and local authorities mandating or recommending isolation and other preventative measures for large portions of the population, including mandatory business restrictions and closures. While some of these preventative measures, which were necessary to weather conditionsslow the spread of the virus and evacuations of certain areas. Almost all affected supermarkets were reopened within two days following the passing of Hurricane Irma, operating on generator power if normal power had notprotect lives, have been restored. All supermarkets were reopened within six days except one supermarket in Key West, Florida, which reopened the following week.
The Company estimates that its sales increased $250 million due toeased, the impact of Hurricane Irmathe coronavirus pandemic remains uncertain and difficult to predict. It remains a top priority of the Company to continue to serve its customers in 2017. The Company incurred additional costs for inventory losses due to power outages, fuel for generatorsa way that protects the health and facility repairssafety of its employees and clean-up totaling an estimated $25 million. The Company is self-insured for these losses. The Company estimates the profit on the incremental sales resulting from customers stocking up and replenishing, as well as sales of hurricane supplies, more than offset the losses incurred.customers.




9


Results of Operations
The Company’s fiscal year ends on the last Saturday in December. Fiscal years 20182021, 2020 and 20172019 include 52 weeks and fiscal year 2016 includes 53 weeks.
Sales
Sales for 20182021 were $36.1$48.0 billion as compared with $34.6$44.9 billion in 2017,2020, an increase of $1,535.6$3,133.0 million or 4.4%7.0%. The increase in sales for 20182021 as compared with 20172020 was primarily due to new supermarket sales and a 2.1%5.4% increase in comparable store sales (supermarkets open for the same weeks in both periods, including replacement supermarkets). The Company estimates the increase in sales for 2018 as compared with 2017 was $250 million or 0.8% lower due to the impact of Hurricane Irma in 2017. Excluding the impact of the hurricane, sales for 2018 would have increased 5.2% and comparable store sales would have increased 2.9%. Comparable store sales for 20182021 increased primarily due to increased product costs, partially offset by the impact of the hurricane.costs. Sales for supermarkets that are replaced on site are classified as new supermarket sales since the replacement period for the supermarket is generally 9 to 12 months.
Sales for 20172020 were $34.6$44.9 billion as compared with $34.0$38.1 billion in 2016,2019, an increase of $558.4$6,747.1 million or 1.6%17.7%. Excluding the effect of the additional week in 2016, sales for 2017 as compared with 2016 would have increased 3.5%. After excluding the effect of the additional week in 2016, theThe increase in sales for 20172020 as compared with 20162019 was primarily due to a 1.7% increase in comparable store sales and new supermarket sales.the impact of the coronavirus pandemic. Comparable store sales for 20172020 increased 16.0% primarily due to increased product costs and the impact of Hurricane Irma.the coronavirus pandemic.
Gross profit
Gross profit (sales less cost of merchandise sold) as a percentage of sales was 27.1%27.4%, 27.9% and 27.2% in 20182021, 2020 and 27.3% in 2017 and 2016.2019, respectively. Excluding the last-in, first-out (LIFO) reserve effect of $24.2$109.3 million, $23.0$19.8 million and $(4.6)$39.9 million in 2018, 20172021, 2020 and 2016,2019, respectively, gross profit as a percentage of sales would have been 27.2%27.7%, 27.9% and 27.3% in 2021, 2020 and 27.2% in 2018, 2017 and 2016,2019, respectively. After excluding the LIFO reserve effect, the decrease in gross profit as a percentage of sales for 2018, 20172021 as compared with 2020 was primarily due to increased shrink and 2016 remained relatively unchanged.distribution costs. After excluding the LIFO reserve effect, the increase in gross profit as a percentage of sales for 2020 as compared with 2019 was primarily due to reduced shrink and volume driven efficiencies related to the impact of the coronavirus pandemic.
Operating and administrative expenses
Operating and administrative expenses as a percentage of sales were 20.3%19.6%, 20.2%19.7% and 20.0%20.6% in 2018, 20172021, 2020 and 2016,2019, respectively. Operating and administrative expenses as a percentage of sales for 2021 as compared with 2020 remained relatively unchanged. The increasedecrease in operating and administrative expenses as a percentage of sales for 20182020 as compared with 20172019 was primarily due to an increase in payroll costs as a percentagevolume driven efficiencies related to the impact of sales, partially offset by a decrease in facility costs as a percentage of sales. The increase in operating and administrative expenses as a percentage of sales for 2017 as compared with 2016 was primarily due to an increase in facility costs as a percentage of sales.the coronavirus pandemic.
Operating profit
Operating profit as a percentage of sales was 7.6%8.7%, 7.9%8.9% and 8.1%7.6% in 2018, 20172021, 2020 and 2016,2019, respectively. The decrease in operating profit as a percentage of sales for 20182021 as compared with 20172020 was primarily due to the decrease in gross profit as a percentage of sales, andpartially offset by the increasedecrease in operating and administrative expenses as a percentage of sales. The decreaseincrease in operating profit as a percentage of sales for 20172020 as compared with 20162019 was primarily due to the increase in gross profit as a percentage of sales and the decrease in operating and administrative expenses as a percentage of sales.
Investment income
Investment income was $56.7$1,330.2 million, $226.6$975.0 million and $133.1$814.4 million in 2018, 20172021, 2020 and 2016,2019, respectively. TheExcluding the impact of net unrealized gains on equity securities in 2021, 2020 and 2019, investment income would have been $230.7 million, $596.0 million and $291.7 million for 2021, 2020 and 2019, respectively. Excluding the impact of net unrealized gains on equity securities, the decrease in investment income for 20182021 as compared with 20172020 was primarily due to the adoption of the Accounting Standards Update (ASU) requiring equity securities be measured at fair value withdecrease in net unrealizedrealized gains and losses from changes in the fair value recognized in earnings.on investments. Excluding the impact of net unrealized gains on equity securities, the ASU, investment income would have been $239.5 million for 2018. The increase in investment income for 20172020 as compared with 20162019 was primarily due to anthe increase in net realized gains on the sale of equity securities.investments.
Income tax expense
The effective income tax rate was 18.5%20.6%, 24.3%21.1% and 31.1%20.6% in 2018, 20172021, 2020 and 2016,2019, respectively. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (Tax Act) was signed into law making significant changes to the Internal Revenue Code. Changes included, among others, a decrease in the federal statutory income tax rate from 35% to 21% beginning in 2018. The decrease in the effective income tax rate for 20182021 as compared with 20172020 was primarily due to a $330.9 million decreasereduction in state income tax expenserates and an increase in 2018 due to the reduction of the federal statutory incomeinvestment related tax rate, partially offset by a $224.2 million decrease in income tax expense in 2017 due to the remeasurement of deferred income taxes related to the Tax Act.
credits. The decreaseincrease in the effective income tax rate for 20172020 as compared with 20162019 was primarily due to the decreased impact of permanent deductions and credits due to the remeasurement of deferred income taxesincrease in 2017, partially offset by a decrease in investment related tax credits. Excluding the impact of the remeasurement of deferred income taxes, the effectiveearnings before income tax rate would have been 31.7% in 2017.expense.



10


Net earnings
Net earnings were $2,381.2$4,412.2 million or $3.28$6.40 per share, $2,291.9$3,971.8 million or $3.04$5.67 per share and $2,025.7$3,005.4 million or $2.63$4.21 per share in 2018, 20172021, 2020 and 2016,2019, respectively. Net earnings as a percentage of sales were 6.6%9.2%, 8.9% and 7.9% in 20182021, 2020 and 2017 and 6.0% in 2016.
Net earnings and earnings per share for 2018 were impacted by the decrease in the effective income tax rate and the ASU requiring equity securities be measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings.2019, respectively. Excluding the impact of the ASU,net unrealized gains on equity securities in 2021, 2020 and 2019, net earnings would have been $2,517.5$3,592.2 million or $3.47$5.21 per share and 7.0%7.5% as a percentage of sales for 2018.
The2021, $3,689.2 million or $5.27 per share and 8.2% as a percentage of sales for 2020 and $2,615.6 million or $3.67 per share and 6.9% as a percentage of sales for 2019. Excluding the impact of net unrealized gains on equity securities, the decrease in net earnings as a percentage of sales for 2021 as compared with 2020 was primarily due to the decrease in operating profit as a percentage of sales and net realized gains on investments. Excluding the impact of net unrealized gains on equity securities, the increase in net earnings as a percentage of sales for 20172020 as compared with 20162019 was primarily due to the remeasurement of deferred income taxes in 2017. Excluding the impact of the remeasurement of deferred income taxes, net earnings would have been $2,067.7 million or $2.74 per share and 6.0% as a percentage of sales for 2017.coronavirus pandemic.
Non-GAAP Financial Measures
In addition to reporting financial results for 20182021, 2020 and 2019 in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents net earnings and earnings per share excluding the impact of the ASU requiring equity securities bebeing measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). These measures are not in accordance with, or an alternative to, GAAP. The Company excludes the impact of the fair value adjustment since it is primarily due to temporary equity market fluctuations that do not reflect the Company’s operations. The Company believes this information is useful in providing period-to-period comparisons of the results of operations. Following is a reconciliation of net earnings to net earnings excluding the impact of the fair value adjustment for 2018 (amounts are in millions, except2021, 2020 and 2019:
202120202019
(Amounts are in millions, except per share amounts)
Net earnings$4,412.2 3,971.8 3,005.4 
Fair value adjustment, due to net unrealized gain, on equity securities held at end of year(1,109.0)(554.6)(472.5)
Net gain (loss) on sale of equity securities previously recognized through fair value adjustment9.4 175.6 (50.2)
Income tax expense (1)
279.6 96.4 132.9 
Net earnings excluding impact of fair value adjustment$3,592.2 3,689.2 2,615.6 
Weighted average shares outstanding689.4 700.6 713.5 
Earnings per share excluding impact of fair value adjustment$5.21 5.27 3.67 
(1)Income tax expense is based on the per share amount):Company’s combined federal and state statutory income tax rates.


 2018
Net earnings $2,381.2
 
Fair value adjustment, due to net unrealized loss, on equity securities held at end of year 107.5
 
Net gain on sale of equity securities previously recognized through fair value adjustment 75.3
 
Income tax benefit (1)
 (46.5) 
Net earnings excluding impact of fair value adjustment $2,517.5
 
Weighted average shares outstanding 726.4
 
Earnings per share excluding impact of fair value adjustment $3.47
 
(1)
Income tax benefit is based on the Company’s combined federal and state statutory income tax rates.



11


Liquidity and Capital Resources
Cash and cash equivalents, short-term investments and long-term investments totaled $7,176.7$14,783.4 million as of December 29, 2018,25, 2021, as compared with $7,013.2$11,961.7 million as of December 30, 2017.26, 2020. The increase was primarily due to the increase in the fair value of investments and the increase in sales.
Net cash provided by operating activities
Net cash provided by operating activities was $3,631.9$5,388.8 million, $3,580.3$5,424.2 million and $3,253.0$4,024.4 million in 2018, 20172021, 2020 and 2016,2019, respectively. The decrease in net cash provided by operating activities for 2021 as compared with 2020 was primarily due to the timing of payments for merchandise in 2020 and the deferral in 2020 of payroll tax payments under a coronavirus tax relief provision, partially offset by the increase in sales. The increase in net cash provided by operating activities for 20182020 as compared with 20172019 was primarily due to increased sales as a result of the increase in net earnings andcoronavirus pandemic, the timing of payments for merchandise and the deferral of 2020 payroll tax payments under a coronavirus tax relief provision, partially offset by 2017 federal income tax payments extended to 2018 due to Hurricane Irma. Thethe increase in net cash provided by operating activities for 2017 as compared with 2016 was primarily due to the extension of federal income tax payments due to the hurricane.taxes paid.
Net cash used in investing activities
Net cash used in investing activities was $1,742.8$3,032.0 million, $1,236.1$3,428.5 million and $1,806.1$2,257.0 million in 2018, 20172021, 2020 and 2016,2019, respectively. The primary use of net cash in investing activities for 20182021 was funding capital expenditures and net increases in investment securities.investments. Capital expenditures for 20182021 totaled $1,350.1$1,288.4 million. These expenditures were incurred in connection with the opening of51 new45 supermarkets (including eight10 replacement supermarkets) and the remodeling 146of 134 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress, construction or expansion of warehouses and new or enhanced information technology hardware and applications andsoftware. In 2021, the acquisition of shopping centers with the Company as the anchor tenant. In 2018, the paymentspayment for investments, net of the proceeds from the sale and maturity of investments, were $436.5was $1,758.4 million. The primary use of net cash in investing activities for 20172020 was funding capital expenditures partially offset byand net decreasesincreases in investment securities.investments. Capital expenditures for 20172020 totaled $1,429.1$1,228.4 million. These expenditures were incurred in connection with the opening of 44 new39 supermarkets (including nine replacement supermarkets) and the remodeling 132of 154 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress and new or enhanced information technology hardware and applications andsoftware. In 2020, the acquisitionpayment for investments, net of shopping centers with the Company as the anchor tenant. In 2017, the proceeds from the sale and maturity of investments, net of the payment for such investments, were $186.7was $2,210.4 million.
Net cash used in financing activities
Net cash used in financing activities was $1,869.8$1,898.3 million, $2,202.6$2,085.7 million and $1,360.7$1,603.3 million in 2018, 20172021, 2020 and 2016,2019, respectively. The primary use of net cash in financing activities was funding net common stock repurchases and dividend payments. Net common stock repurchases totaled $1,097.9$874.0 million, $1,468.6$1,190.5 million and $630.2$776.6 million in 2018, 20172021, 2020 and 2016,2019, respectively. The Company currently repurchases common stock at the stockholders’ request in accordance with the terms of the ESPP, Directors Plan, 401(k) Plan and ESOP. The amount of common stock offered to the Company for repurchase is not within the control of the Company, but is at the discretion of the stockholders. The Company expects to continue to repurchase its common stock, as offered by its stockholders from time to time, at its then current value. However, with the exception of certain shares distributed from the ESOP, such purchases are not required and the Company retains the right to discontinue them at any time.
Dividends
The Company paid quarterly dividends on its common stock totaling $734.5$987.0 million or $1.01$1.43 per share, $689.7$884.4 million or $0.9125$1.26 per share and $667.9$828.7 million or $0.8675$1.16 per share in 2018, 20172021, 2020 and 2016,2019, respectively.
Capital expenditures projection
Capital expenditures for 2022 are expected to use cash in 2019 arebe approximately $1,530$2,000 million, primarily consisting ofrelated to new supermarkets, remodeling existing supermarkets, construction or expansion of warehouses, new or enhanced information technology hardware and applicationssoftware and the acquisition or development of shopping centers within which the Company as the anchor tenant.operates. The shopping center acquisitions are financed with internally generated funds and assumed debt, if prepayment penalties for the debt are determined to be significant. This capital program is subject to continuing change and review.
Contractual obligations
The Company’s contractual obligations arising in the normal course of business primarily include operating and finance leases, lease related commitments, purchase obligations, self-insurance reserves and long-term debt. Lease related commitments include real estate taxes, insurance and maintenance related to operating and finance leases and commitments for lease agreements that have not yet commenced. Lease related commitments are typically due over the applicable lease term. Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. Purchase obligations are typically due in one year or less.
12

Cash requirements
In 2019, the2022, cash requirements for operations, capital expenditures, common stock repurchases and dividend payments are expected to be financed by internally generated funds or liquid assets. Based on the Company’s financial position, it is expected that short-term and long-term borrowings would be available to support the Company’s liquidity requirements, if needed.


12

Contractual Obligations
Following is a summary of contractual obligations as of December 29, 2018:


Payments Due by Period


Total
2019
 2020-
2021

 2022-
2023

There-
after


(Amounts are in thousands)
Contractual obligations:









Operating leases (1)

$3,720,520

434,781
 778,885
 620,421
 1,886,433
Purchase obligations (2)(3)(4)

2,143,184

1,192,602

318,113

184,970

447,499
Other long-term liabilities:


 
 
 
 
Self-insurance reserves (5)

367,660

145,241

102,072

43,574

76,773
Accrued postretirement benefit cost
111,012

5,704
 11,948
 12,627
 80,733
Long-term debt (6)

167,665

4,954

76,604

43,789

42,318
Other
36,317

18,671

940

751

15,955
Total
$6,546,358

1,801,953

1,288,562

906,132

2,549,711
Off-Balance Sheet Arrangements
The Company is not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, results of operations or cash flows.















____________________________
(1)For a more detailed description of the operating lease obligations, refer to Note 8(a) Commitments and Contingencies - Operating Leases in the Notes to Consolidated Financial Statements.
(2)Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable within 30 days without penalty.
(3)As of December 29, 2018, the Company had outstanding $5.5 million in trade letters of credit and $13.0 million in standby letters of credit to support certain of these purchase obligations.
(4)Purchase obligations include $936.4 million in real estate taxes, insurance and maintenance commitments related to operating leases. The actual amounts to be paid are variable and have been estimated based on current costs.
(5)
As of December 29, 2018, the Company held a restricted investment in the amount of $160.5 million for the benefit of the Company’s insurance carrier related to self-insurance reserves.
(6)For a more detailed description of the long-term debt obligations, refer to Note 4 Consolidation of Joint Ventures and Long-Term Debt in the Notes to Consolidated Financial Statements.


13

Recently Issued Accounting Standards
In June 2016, the Financial Accounting Standards Board (FASB) issued an ASU requiring companies to change the methodology used to measure credit losses on financial instruments. The ASU is effective for reporting periods beginning after December 15, 2019 with early adoption permitted only for reporting periods beginning after December 15, 2018.  The Company does not expect the adoption of the ASU to have a material effect on the Company’s financial condition or results of operations. The adoption of the ASU will have no effect on the Company’s cash flows.
In February 2016, the FASB issued an ASU requiring the lease rights and obligations arising from lease contracts, including existing and new arrangements, be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2018. During 2018, the ASU was amended to permit the election of transitional provisions including the elimination of the requirement to restate reporting periods prior to the date of adoption. The Company will adopt the ASU with the transitional provisions on a modified retrospective basis as of the effective date. The Company also will elect to not reassess the original conclusions reached regarding lease identification, lease classification and initial direct costs. The adoption of the ASU will have a material effect on the Company’s financial condition due to the recognition of approximately $2.9 billion of lease rights and obligations as assets and liabilities on the consolidated balance sheet. The adoption of the ASU will not have a material effect on the Company’s results of operations and will have no effect on the Company’s cash flows.
In January 2016, the FASB issued an ASU requiring equity securities be measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings. The ASU is effective for reporting periods beginning after December 15, 2017. In 2018, the Company prospectively adopted the ASU and reclassified the cumulative effect of the net unrealized gain on equity securities net of income taxes as of December 31, 2017 of $198.3 million from accumulated other comprehensive earnings to retained earnings. The effect of the ASU on results of operations will vary with changes in the fair value of equity securities.
In May 2014, the FASB issued an ASU requiring additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for reporting periods beginning after December 15, 2017. In 2018, the Company adopted the ASU on a modified retrospective basis. The adoption of the ASU did not have a material effect on the Company’s financial condition, results of operations or cash flows.
Critical Accounting Estimates
The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 1 in the Notes to Consolidated Financial Statements. The Company believes the following involves significant estimates and judgments in the preparation of its consolidated financial statements.
Self-Insurance Reserves
Self-insurance reserves are established for health care, workers’ compensation, general liability and fleet liability claims. These reserves are determined based on actual claims experience and an estimate of claims incurred but not reported including, where necessary, actuarial studies. The Company believes that the use of actuarial studies to determine self-insurance reserves represents a consistent method of measuring these subjective estimates. Actuarial projections of losses for general liability and workers’ compensation claims are discounted and subject to variability. The causes of variability include, but are not limited to, such factors as future interest and inflation rates, future economic conditions, claims experience, litigation trends and benefit level changes. Historically, there have not been significant changes in the factors and assumptions used in the valuation of the self-insurance reserves. However, significant changes in such factors and assumptions could materially impact the valuation of the self-insurance reserves.


14

Forward-Looking Statements
From time to time, certainCertain information provided by the Company including written or oral statements made by its representatives,in this Annual Report may containbe forward-looking information as defined in Section 21E of the Securities Exchange Act of 1934.1934 (Exchange Act). Forward-looking information includes statements about the future performance of the Company whichand is based on management’s assumptions and beliefs in light of the information currently available to them.them, including as it relates to the coronavirus pandemic. When used, the words “plan,” “estimate,” “project,” “intend,” “expect,” “believe”“believe,” “will” and other similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from those statements including, but not limited to, the following: competitive practices and pricing in the food and drug industries generally and particularly in the Company’s principal markets; results of programs to increase sales, including private label sales; results of programs to control or reduce costs; changes in buying, pricing and promotional practices; changes in shrink management; changes in the general economy;economy, including the economic downturn associated with the coronavirus pandemic; changes in consumer spending; changes in population, employment and job growth in the Company’s principal markets; impacts of a public health crisis or other significant catastrophic event, such as the coronavirus pandemic; impacts of an intrusion into, compromise of or disruption in the Company’s information technology systems; and other factors affecting the Company’s business within or beyond the Company’s control. These factors include changes in the rate of inflation, changes in federal, state and local laws and regulations, adverse determinations with respect to litigation or other claims, ability to recruit and retain employees, increases in operating costs including, but not limited to, labor costs, credit card fees and utility costs, particularly electric rates, ability to construct new supermarkets or complete remodels as rapidly as planned and stability of product costs. Other factors and assumptions not identified above could also cause the actual results to differ materially from those set forth in the forward-looking statements. Except as may be required by applicable law, the Company assumes no obligation to publicly update these forward-looking statements.
13

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk
The Company does not utilize financial instruments for trading or other speculative purposes, nor does it utilize leveraged financial instruments.
Cash equivalents and short-term investments are subject to interest rate risk and credit risk. Most of the cash equivalents and short-term investments are held in money market investments and debt securities that mature in less than one year. Due to the quality of the short-term investments held, the Company does not expect the valuation of these investments to be significantly impacted by future market conditions.
Debt securities are subject to interest rate risk and credit risk. Debt securities held by the Company at year end primarily consisted of corporate, government-sponsored agency, state and municipal bonds with high credit ratings; therefore, the Company believes the credit risk is low. The Company believes a 10050 basis point increase in interest rates would result in an immaterial unrealized loss on its debt securities. Since the Company does not intend to sell its debt securities or will likely not be required to sell its debt securities prior to any anticipated recovery, such a hypothetical temporary unrealized loss would impact comprehensive earnings, but not earnings or cash flows.
Equity securities are subject to equity price risk that results from fluctuations in quoted market prices as of the balance sheet date. Market price fluctuations may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions. Due to the ASU requiring equity securities bebeing measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings, fluctuations in quoted market prices for equity securities will impact earnings. A decrease of 10% in the value of the Company’s equity securities would result in an unrealized loss of approximately $270$360 million recognized in earnings, but would not impact cash flows.




14
15


Item 8.  Financial Statements and Supplementary Data
Index to Consolidated Financial Statements and Schedule
Page
1716
KPMG LLP (PCAOB ID: 185)
Consolidated Financial Statements:
Consolidated Balance Sheets – December 29, 201825, 2021 and December 30, 201726, 2020
18
Consolidated Statements of Earnings – Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019
20
Consolidated Statements of Comprehensive Earnings – Years ended December 29, 2018,25, 2021,
December 30, 201726, 2020 and December 31, 201628, 2019
21
Consolidated Statements of Cash Flows – Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019


22
Consolidated Statements of Stockholders’ Equity – Years ended December 29, 2018,25, 2021,
December 30, 201726, 2020 and December 31, 201628, 2019
24
Notes to Consolidated Financial Statements
25
The following consolidated financial statement schedule of the Company for the years ended
December 29, 2018,25, 2021, December 30, 201726, 2020 and December 31, 201628, 2019 is submitted herewith:
Schedule II – Valuation and Qualifying Accounts
3739
All other schedules are omitted as the required information is inapplicable or the information is
presented in the consolidated financial statements or related notes.












15
16


Report of Independent Registered Public Accounting Firm
TheTo the Stockholders and Board of Directors
Publix Super Markets, Inc.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Publix Super Markets, Inc. and subsidiaries (the Company) as of December 29, 201825, 2021 and December 30, 2017,26, 2020, the related consolidated statements of earnings, comprehensive earnings, cash flows and stockholders’ equity for each of the years in the three-year period ended December 29, 2018,25, 2021, and the related notes and the financial statement schedule listed in the accompanying index (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 201825, 2021 and December 30, 2017,26, 2020, and the results of its operations and its cash flows for each of the years in the three-year period ended December 29, 2018,25, 2021, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

16

Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Evaluation of self-insurance reserves
As discussed in Note 1(k) to the consolidated financial statements, the Company estimates its self-insurance reserves for workers’ compensation and general liability exposures by considering historical claims experience and actuarial analyses using actuarial assumptions and generally accepted actuarial methods. The self-insurance reserves balance as of December 25, 2021 of $440 million includes the self-insurance reserves related to workers’ compensation and general liability. The Company engages actuaries to estimate its workers’ compensation and general liability self-insurance reserves at least annually.
We identified the evaluation of the Company’s workers’ compensation and general liability self-insurance reserves as a critical audit matter because of the specialized skills necessary to evaluate the Company’s key assumption, the loss development factors, and the selection of the actuarial projections derived from various actuarial methods.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design of certain internal controls related to the workers’ compensation and general liability self-insurance reserves. This included controls related to the loss development factors used to estimate the actuarial projections and the selection of the actuarial projections derived from various actuarial methods. We involved actuarial professionals with specialized skills and knowledge who assisted in:
•Assessing the actuarial models used by the Company for consistency with generally accepted actuarial standards;
•Evaluating the Company’s ability to estimate self-insurance reserves by comparing its historical estimates with actual incurred losses; and
•Evaluating the key assumption, the loss development factors, and the actuarial projections by developing an independent expectation of the workers’ compensation and general liability self-insurance reserves and comparing them to the amounts recorded by the Company.
/s/ KPMG LLP
We have served as the Company’s auditor since 1961.
Tampa, Florida
March 1, 20192022









17


PUBLIX SUPER MARKETS, INC.
Consolidated Balance Sheets
December 29, 201825, 2021 and
December 30, 201726, 2020
 
20212020
ASSETS(Amounts are in thousands)
Current assets:
Cash and cash equivalents$1,131,901 673,483 
Short-term investments883,066 682,965 
Trade receivables903,570 917,531 
Inventories2,054,394 2,033,792 
Prepaid expenses131,655 110,025 
Total current assets5,104,586 4,417,796 
Long-term investments12,768,411 10,605,234 
Other noncurrent assets445,120 415,103 
Operating lease right-of-use assets2,950,460 2,965,424 
Property, plant and equipment:
Land2,122,224 2,059,274 
Buildings and improvements6,308,697 6,057,400 
Furniture, fixtures and equipment6,113,543 5,796,442 
Leasehold improvements1,825,530 1,764,326 
Finance lease right-of-use assets547,980 322,452 
Construction in progress387,090 257,099 
17,305,064 16,256,993 
Accumulated depreciation(7,049,294)(6,566,473)
Net property, plant and equipment10,255,770 9,690,520 
$31,524,347 28,094,077 

See accompanying notes to consolidated financial statements.
18

  2018 2017 
ASSETS (Amounts are in thousands) 
Current assets:     
Cash and cash equivalents $599,264
 579,925
 
Short-term investments 560,992
 915,579
 
Trade receivables 682,981
 671,414
 
Inventories 1,848,735
 1,876,519
 
Prepaid expenses 122,224
 41,484
 
Total current assets 3,814,196
 4,084,921
 
Long-term investments 6,016,438
 5,517,732
 
Other noncurrent assets 515,265
 583,149
 
Property, plant and equipment:     
Land 1,850,718
 1,621,230
 
Buildings and improvements 5,535,538
 4,723,213
 
Furniture, fixtures and equipment 5,114,698
 4,844,804
 
Leasehold improvements 1,564,243
 1,741,703
 
Construction in progress 109,367
 154,542
 
  14,174,564
 13,085,492
 
Accumulated depreciation (5,537,947) (5,087,788) 
Net property, plant and equipment 8,636,617
 7,997,704
 
  $18,982,516
 18,183,506
 
20212020
LIABILITIES AND EQUITY(Amounts are in thousands,
except par value)
Current liabilities:
Accounts payable$2,594,976 2,414,798 
Accrued expenses:
Contributions to retirement plans661,046 639,581 
Self-insurance reserves191,477 161,223 
Salaries and wages215,617 197,721 
Other764,365 499,970 
Current portion of long-term debt39,168 36,392 
Current portion of operating lease liabilities355,066 345,805 
Income taxes— 71,354 
Total current liabilities4,821,715 4,366,844 
Deferred income taxes1,030,677 772,722 
Self-insurance reserves248,913 235,858 
Long-term debt98,185 123,835 
Operating lease liabilities2,570,421 2,588,258 
Finance lease liabilities411,620 246,411 
Other noncurrent liabilities304,951 474,285 
Total liabilities9,486,482 8,808,213 
Common stock related to Employee Stock Ownership Plan (ESOP)3,825,128 3,484,549 
Stockholders’ equity:
Common stock of $1 par value. Authorized 1,000,000 shares; issued
and outstanding 683,680 shares in 2021 and 690,982 shares in 2020
683,680 690,982 
Additional paid-in capital4,291,484 4,005,969 
Retained earnings17,025,406 14,343,865 
Accumulated other comprehensive (losses) earnings(5,421)200,951 
Common stock related to ESOP(3,825,128)(3,484,549)
Total stockholders’ equity18,170,021 15,757,218 
Noncontrolling interests42,716 44,097 
Total equity22,037,865 19,285,864 
Commitments and contingencies— — 
$31,524,347 28,094,077 




      
  2018 2017 
LIABILITIES AND EQUITY 
(Amounts are in thousands,
except par value)
 
Current liabilities:     
Accounts payable $1,864,604
 1,754,706
 
Accrued expenses:     
Contributions to retirement plans 540,760
 517,493
 
Self-insurance reserves 145,241
 137,100
 
Salaries and wages 132,916
 124,423
 
Other 321,080
 329,420
 
Current portion of long-term debt 4,954
 37,873
 
Federal and state income taxes —
 241,299
 
Total current liabilities 3,009,555
 3,142,314
 
Deferred income taxes 420,757

360,952
 
Self-insurance reserves 222,419
 218,598
 
Accrued postretirement benefit cost 105,308
 113,461
 
Long-term debt 162,711
 155,201
 
Other noncurrent liabilities 67,102
 84,361
 
Total liabilities 3,987,852
 4,074,887
 
Common stock related to Employee Stock Ownership Plan (ESOP) 3,134,999

3,053,138
 
Stockholders’ equity:     
Common stock of $1 par value. Authorized 1,000,000 shares; issued
and outstanding 715,445 shares in 2018 and 733,440 shares in 2017
 715,445
 733,440
 
Additional paid-in capital 3,458,004
 3,139,647
 
Retained earnings 10,840,654
 10,044,564
 
Accumulated other comprehensive (losses) earnings (55,762) 152,636
 
Common stock related to ESOP (3,134,999) (3,053,138) 
Total stockholders’ equity 11,823,342
 11,017,149
 
Noncontrolling interests 36,323
 38,332
 
Total equity 14,994,664
 14,108,619
 
Commitments and contingencies —
 —
 
  $18,982,516
 18,183,506
 




19


PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Earnings
Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019


202120202019
(Amounts are in thousands, except per share amounts)
Revenues:
Sales$47,996,551 44,863,507 38,116,402 
Other operating income397,356 340,452 346,351 
Total revenues48,393,907 45,203,959 38,462,753 
Costs and expenses:
Cost of merchandise sold34,828,309 32,354,606 27,740,469 
Operating and administrative expenses9,412,872 8,837,380 7,833,035 
Total costs and expenses44,241,181 41,191,986 35,573,504 
Operating profit4,152,726 4,011,973 2,889,249 
Investment income1,330,204 975,006 814,372 
Other nonoperating income, net76,849 49,676 82,365 
Earnings before income tax expense5,559,779 5,036,655 3,785,986 
Income tax expense1,147,559 1,064,817 780,591 
Net earnings$4,412,220 3,971,838 3,005,395 
Weighted average shares outstanding689,423 700,587 713,535 
Earnings per share$6.40 5.67 4.21 
See accompanying notes to consolidated financial statements.
20
  2018 2017 2016 
  (Amounts are in thousands, except per share amounts) 
Revenues:       
Sales $36,093,907
 34,558,286
 33,999,921
 
Other operating income 301,811
 278,552
 274,188
 
Total revenues 36,395,718
 34,836,838
 34,274,109
 
Costs and expenses:       
Cost of merchandise sold 26,311,391
 25,129,717
 24,734,305
 
Operating and administrative expenses 7,339,924
 6,974,297
 6,788,153
 
Total costs and expenses 33,651,315
 32,104,014
 31,522,458
 
Operating profit 2,744,403
 2,732,824
 2,751,651
 
Investment income 56,699
 226,626
 133,067
 
Other nonoperating income, net 119,866
 68,056
 55,658
 
Earnings before income tax expense 2,920,968
 3,027,506
 2,940,376
 
Income tax expense 539,801
 735,612
 914,688
 
Net earnings $2,381,167
 2,291,894
 2,025,688
 
Weighted average shares outstanding 726,407
 753,483
 769,267
 
Earnings per share $3.28
 3.04
 2.63
 


PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Comprehensive Earnings
Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019


202120202019
(Amounts are in thousands)
Net earnings$4,412,220 3,971,838 3,005,395 
Other comprehensive earnings:
Unrealized (loss) gain on debt securities net of income taxes of $(68,470), $47,253 and $50,504 in 2021, 2020 and 2019, respectively.(200,964)138,989 148,141 
Reclassification adjustment for net realized gain on debt securities net of income taxes of $(5,392), $(4,616) and $(205) in 2021, 2020 and 2019, respectively.(15,886)(13,591)(602)
Adjustment to postretirement benefit obligation net of income taxes of $3,572, $(1,955) and $(3,576) in 2021, 2020 and 2019, respectively.10,478 (5,736)(10,488)
Comprehensive earnings$4,205,848 4,091,500 3,142,446 

See accompanying notes to consolidated financial statements.
21
  2018 2017 2016 
  (Amounts are in thousands) 
Net earnings $2,381,167
 2,291,894
 2,025,688
 
Other comprehensive earnings:       
Unrealized (loss) on debt securities net of income taxes of $(6,521) in 2018. Unrealized gain on debt and equity securities net of income taxes of $110,818 and $11,093 in 2017 and 2016, respectively. (19,126)
175,978

17,615
 
Reclassification adjustment for net realized loss on debt securities net of income taxes of $118 in 2018. Reclassification adjustment for net realized (gain) on debt and equity securities net of income taxes of $(42,088) and $(12,464) in 2017 and 2016, respectively. 346

(66,836)
(19,792) 
Adjustment to postretirement benefit obligation net
of income taxes of $2,963, $(4,406) and $(418) in 2018,
2017 and 2016, respectively.
 8,692

(6,997)
(664) 
Comprehensive earnings $2,371,079
 2,394,039
 2,022,847
 



PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Cash Flows
Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019


202120202019
(Amounts are in thousands)
Cash flows from operating activities:
Cash received from customers$48,183,237 44,885,680 38,269,943 
Cash paid to employees and suppliers(42,234,436)(38,844,539)(34,017,408)
Income taxes paid(711,591)(789,711)(373,172)
Self-insured claims paid(494,303)(384,044)(394,495)
Dividends and interest received274,938 241,639 217,574 
Other operating cash receipts394,116 336,244 341,929 
Other operating cash payments(23,195)(21,052)(19,940)
Net cash provided by operating activities5,388,766 5,424,217 4,024,431 
Cash flows from investing activities:
Payment for capital expenditures(1,288,371)(1,228,387)(1,141,118)
Proceeds from sale of property, plant and equipment14,764 10,297 8,609 
Payment for investments(3,296,785)(5,356,844)(3,237,807)
Proceeds from sale and maturity of investments1,538,361 3,146,473 2,113,287 
Net cash used in investing activities(3,032,031)(3,428,461)(2,257,029)
Cash flows from financing activities:
Payment for acquisition of common stock(1,137,131)(1,440,312)(1,088,570)
Proceeds from sale of common stock263,083 249,808 311,950 
Dividends paid(986,987)(884,369)(828,733)
Repayment of long-term debt(38,126)(28,374)(11,061)
Other, net844 17,592 13,130 
Net cash used in financing activities(1,898,317)(2,085,655)(1,603,284)
Net increase (decrease) in cash and cash equivalents458,418 (89,899)164,118 
Cash and cash equivalents at beginning of year673,483 763,382 599,264 
Cash and cash equivalents at end of year$1,131,901 673,483 763,382 









See accompanying notes to consolidated financial statements.
22

  2018 2017 2016 
  (Amounts are in thousands) 
Cash flows from operating activities:       
Cash received from customers $36,296,870
 34,729,287
 34,088,337
 
Cash paid to employees and suppliers (32,177,582) (30,821,593) (30,291,186) 
Income taxes paid (563,983) (478,457) (683,464) 
Self-insured claims paid (395,457) (344,905) (338,010) 
Dividends and interest received 192,528
 241,773
 246,202
 
Other operating cash receipts 297,098
 273,435
 268,347
 
Other operating cash payments (17,548) (19,259) (37,271) 
Net cash provided by operating activities 3,631,926
 3,580,281
 3,252,955
 
Cash flows from investing activities:       
Payment for capital expenditures (1,350,089) (1,429,059) (1,443,827) 
Proceeds from sale of property, plant and equipment 43,834
 6,300
 6,268
 
Payment for investments (2,778,691) (3,069,417) (2,526,973) 
Proceeds from sale and maturity of investments 2,342,162
 3,256,077
 2,158,434
 
Net cash used in investing activities (1,742,784) (1,236,099) (1,806,098) 
Cash flows from financing activities:       
Payment for acquisition of common stock (1,405,872) (1,751,864) (960,262) 
Proceeds from sale of common stock 307,933
 283,222
 330,040
 
Dividends paid (734,510) (689,660) (667,902) 
Repayment of long-term debt (43,593) (75,325) (49,828) 
Other, net 6,239
 31,051
 (12,762) 
Net cash used in financing activities (1,869,803) (2,202,576) (1,360,714) 
Net increase in cash and cash equivalents 19,339
 141,606
 86,143
 
Cash and cash equivalents at beginning of year 579,925
 438,319
 352,176
 
Cash and cash equivalents at end of year $599,264
 579,925
 438,319
 
202120202019
(Amounts are in thousands)
Reconciliation of net earnings to net cash provided by operating activities:
Net earnings$4,412,220 3,971,838 3,005,395 
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization794,156 736,531 716,669 
Increase in last-in, first-out (LIFO) reserve109,349 19,752 39,939 
Retirement contributions paid or payable in
common stock
428,466 418,311 409,614 
Deferred income taxes328,245 49,556 215,004 
Loss on disposal and impairment of long-lived
assets
101,058 138,573 11,036 
Gain on investments(1,132,850)(775,571)(627,624)
Net amortization of investments78,979 54,107 42,753 
Change in operating assets and liabilities providing (requiring) cash:
Trade receivables13,968 (180,438)(54,890)
Inventories(129,951)(140,234)(104,514)
Other assets194,143 151,714 136,796 
Accounts payable and accrued expenses267,394 615,521 181,154 
Income taxes(93,288)58,901 40,548 
Other liabilities16,877 305,656 12,551 
Total adjustments976,546 1,452,379 1,019,036 
Net cash provided by operating activities$5,388,766 5,424,217 4,024,431 












        
  2018 2017 2016 
  (Amounts are in thousands) 
Reconciliation of net earnings to net cash provided by operating activities:       
Net earnings $2,381,167
 2,291,894
 2,025,688
 
Adjustments to reconcile net earnings to net cash
provided by operating activities:
       
Depreciation and amortization 677,154
 664,009
 624,203
 
Increase (decrease) in last-in, first out (LIFO) reserve 24,170
 23,028
 (4,643) 
Retirement contributions paid or payable in
common stock
 373,350
 353,659
 365,936
 
Deferred income taxes 63,245
 (99,856) 24,357
 
(Gain) loss on disposal and impairment of property,
plant and equipment
 (13,185) 15,231
 11,035
 
Loss (gain) on investments 73,254

(108,924)
(32,256) 
Net amortization of investments 63,654
 109,240
 141,869
 
Change in operating assets and liabilities providing (requiring) cash:       
Trade receivables (10,790) 43,870
 8,306
 
Inventories 3,614
 (177,155) 22,764
 
Prepaid expenses and other noncurrent assets 199,930
 82,089
 (14,307) 
Accounts payable and accrued expenses 112,383
 151,186
 (74,917) 
Self-insurance reserves 11,962
 19
 5,340
 
Federal and state income taxes (313,989) 241,686
 159,426
 
Other noncurrent liabilities (13,993) (9,695) (9,846) 
Total adjustments 1,250,759
 1,288,387
 1,227,267
 
Net cash provided by operating activities $3,631,926
 3,580,281
 3,252,955
 




23


PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Stockholders’ Equity
Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019

Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Common
Stock
(Acquired
from) Sold to
Stock-
holders
Accumu-
lated Other
Compre-
hensive
Earnings
(Losses)
Common
Stock
Related to
ESOP
Total
Stock-
holders’
Equity
(Amounts are in thousands, except per share amounts)
Balances at December 29, 2018$715,445 3,458,004 10,840,654 — (55,762)(3,134,999)11,823,342 
Comprehensive earnings— — 3,005,395 — 137,051 — 3,142,446 
Dividends, $1.16 per share— — (828,733)— — — (828,733)
Contribution of 8,587 shares to retirement plans5,605 235,017 — 127,329 — — 367,951 
Acquisition of 24,506 shares from stockholders— — — (1,088,570)— — (1,088,570)
Sale of 7,026 shares to stockholders1,497 65,045 — 245,408 — — 311,950 
Retirement of 15,995 shares(15,995)— (699,838)715,833 — — — 
Change for ESOP related shares— — — — — (124,231)(124,231)
Balances at December 28, 2019706,552 3,758,066 12,317,478 — 81,289 (3,259,230)13,604,155 
Comprehensive earnings— — 3,971,838 — 119,662 — 4,091,500 
Dividends, $1.26 per share— — (884,369)— — — (884,369)
Contribution of 7,398 shares to retirement plan4,977 242,724 — 114,054 — — 361,755 
Acquisition of 27,797 shares from stockholders— — — (1,440,312)— — (1,440,312)
Sale of 4,829 shares to stockholders107 5,179 — 244,522 — — 249,808 
Retirement of 20,654 shares(20,654)— (1,061,082)1,081,736 — — — 
Change for ESOP related shares— — — — — (225,319)(225,319)
Balances at December 26, 2020690,982 4,005,969 14,343,865 — 200,951 (3,484,549)15,757,218 
Comprehensive earnings— — 4,412,220 — (206,372)— 4,205,848 
Dividends, $1.43 per share— — (986,987)— — — (986,987)
Contribution of 6,786 shares to retirement plan4,743 285,438 — 118,388 — — 408,569 
Acquisition of 18,314 shares from stockholders— — — (1,137,131)— — (1,137,131)
Sale of 4,226 shares to stockholders— 77 — 263,006 — — 263,083 
Retirement of 12,045 shares(12,045)— (743,692)755,737 — — — 
Change for ESOP related shares— — — — — (340,579)(340,579)
Balances at December 25, 2021$683,680 4,291,484 17,025,406 — (5,421)(3,825,128)18,170,021 
See accompanying notes to consolidated financial statements.
24
  
Common Stock
 
Additional
Paid-in Capital
 
Retained Earnings
 
Common Stock (Acquired from) Sold to Stock-
holders
Accumu-
lated Other Compre-
hensive Earnings (Losses)
Common Stock Related to ESOP
 
Total Stock-
holders’ Equity
  (Amounts are in thousands, except per share amounts)
Balances at December 26, 2015 $770,175
 2,556,391
 9,041,497
  —
  26,268
  (2,953,878) 9,440,453
Comprehensive earnings —
 —
 2,025,688
  —
  (2,841)  —
 2,022,847
Dividends, $0.8675 per share —
 —
 (667,902)  —
  —
  —
 (667,902)
Contribution of 7,837 shares to retirement plans 5,216
 239,436
 —
  109,562
  —
  —
 354,214
Acquisition of 22,500 shares from stockholders —
 —
 —
  (960,262)  —
  —
 (960,262)
Sale of 7,686 shares to stockholders 1,283
 54,120
 —
  274,637
  —
  —
 330,040
Retirement of 13,476 shares (13,476) —
 (562,587)  576,063
  —
  —
 —
Change for ESOP related shares —
 —
 —
  —
  —
  (114,219) (114,219)
Balances at December 31, 2016 763,198
 2,849,947
 9,836,696
  —
  23,427
  (3,068,097) 10,405,171
Comprehensive earnings —
 —
 2,291,894
  —
  102,145
  —
 2,394,039
Dividends, $0.9125 per share —
 —
 (689,660)  —
  —
  —
 (689,660)
Contribution of 8,833 shares to retirement plans 6,540
 262,684
 —
  92,058
  —
  —
 361,282
Acquisition of 45,952 shares from stockholders —
 —
 —
  (1,751,864)  —
  —
 (1,751,864)
Sale of 7,361 shares to stockholders 677
 27,016
 —
  255,529
  —
  —
 283,222
Retirement of 36,975 shares (36,975) —
 (1,367,302)  1,404,277
  —
  —
 —
Change for ESOP related shares —
 —
 —
  —
  —
  14,959
 14,959
Remeasurement of deferred income taxes reclassified to retained earnings —
 —
 (27,064)  —
  27,064
  —
 —
Balances at December 30, 2017 733,440
 3,139,647
 10,044,564
  —
  152,636
  (3,053,138) 11,017,149
Comprehensive earnings —
 —
 2,381,167
  —
  (10,088)  —
 2,371,079
Dividends, $1.01 per share —
 —
 (734,510)  —
  —
  —
 (734,510)
Contribution of 8,440 shares to retirement plans 6,221
 261,423
 —
  81,780
  —
  —
 349,424
Acquisition of 33,770 shares from stockholders —
 —
 —
  (1,405,872)  —
  —
 (1,405,872)
Sale of 7,335 shares to stockholders 1,380
 56,934
 —
  249,619
  —
  —
 307,933
Retirement of 25,596 shares (25,596) —
 (1,048,877)  1,074,473
  —
  —
 —
Change for ESOP related shares —
 —
 —
  —
  —
  (81,861) (81,861)
Cumulative effect of net unrealized gain on equity securities reclassified to retained earnings —
 —
 198,310
  —
  (198,310)  —
 —
Balances at December 29, 2018 $715,445
 3,458,004
 10,840,654
  —
  (55,762)  (3,134,999) 11,823,342


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(1)    Summary of Significant Accounting Policies
(a)Business
(a)Business
Publix Super Markets, Inc. and its wholly owned subsidiaries (the Company)(Company) are in the business of operating retail food supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. The Company plans to expand its retail operations into Kentucky in 2023. The Company was founded in 1930 and later merged into another corporation that was originally incorporated in 1921. The Company has no other significant lines of business or industry segments. See percentage
(b)Principles of consolidated sales by merchandise category on page 1.Consolidation
(b)Principles of Consolidation
The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and certain joint ventures in which the Company has a controlling financial interest. All significant intercompany balances and transactions are eliminated in consolidation.
(c)Fiscal Year
(c)Fiscal Year
The Company’s fiscal year ends on the last Saturday in December. Fiscal years 20182021, 2020 and 20172019 include 52 weeks and fiscal year 2016 includes 53 weeks.
(d)Cash Equivalents
(d)Cash Equivalents
The Company considers all liquid investments with maturities of three months or less to be cash equivalents.
(e)Trade Receivables
(e)Trade Receivables
Trade receivables primarily include amounts due from vendor allowances,rebates, debit and credit card sales and third party insurance pharmacy billings.
(f)Inventories
(f)Inventories
Inventories are valued at the lower of cost or market. The dollar value last-in, first-out (LIFO) method was used to determine the cost for 85%83% and 84% of inventories as of December 29, 201825, 2021 and December 30, 2017.26, 2020, respectively. Under this method, inventory is stated at cost, which is determined by applying a cost-to-retail ratio to each similar merchandise category’s ending retail value. The cost of the remaining inventories was determined using the first-in, first-out (FIFO) method. The FIFO cost of inventory approximates replacement or current cost. The FIFO method is used to value certain manufactured, seasonal, certain perishable and other miscellaneous inventory items because ofdue to fluctuating costs and inconsistent product availability. The Company also reduces inventory for estimated losses related to shrink. If all inventories were valued using the FIFO method, inventories and current assets would have been higher than reported by $489,058,000$658,098,000 and $464,888,000$548,749,000 as of December 29, 201825, 2021 and December 30, 2017,26, 2020, respectively.
(g)Investments
(g)Investments
Debt securities are classified as available-for-sale and measured at fair value. The Company evaluates whether debt securities are other-than-temporarily impaired (OTTI)on an individual security basis to determine if an unrealized loss is due to a credit loss or other factors, including interest rate fluctuations. The collectability of debt securities is evaluated based on criteria that include the extent to which the cost (cost of the debt security adjusted for amortization of premium or accretion of discount) exceeds marketfair value, the duration of the market value decline, the credit rating of the issuer or security, the failure of the issuer to make scheduled principal or interest payments and the financial health and prospects of the issuer or security.
Declines in the fair value ofCredit losses on debt securities determined to be OTTI are recognized in earnings and reported as OTTI losses. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the debt security or if the Company will be required to sell the debt security prior to any anticipated recovery. If the Company determines that a debt security is OTTI under these circumstances, the impairment recognized in earnings is measured as the difference between the cost and the fair value. A debt security is also determined to be OTTI if the Company does not expect to recover the cost of the debt security. However, in this circumstance, if the Company does not intend to sell the debt security and will not be required to sell the debt security, the impairmentprior to any anticipated recovery are recognized in earnings equals the estimated credit lossthrough an allowance. The allowance is measured as measured by the difference between the present value of expected cash flows and the cost of the debt security, limited to the difference between the cost and the fair value of the debt security. Expected cash flows are discounted using the debt security’s effective interest rate. ChangesSubsequent changes to the allowance are recognized in earnings in the period of the change. Credit losses on debt securities the Company intends to sell or will be required to sell prior to any anticipated recovery are recognized in earnings and measured as the difference between the cost and the fair value of the debt security.


25

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

Other unrealized losses on debt securities determinedthe Company does not intend to sell and will not be temporaryrequired to sell prior to any anticipated recovery are reported in other comprehensive earnings net of income taxes and included as a component of stockholders’ equity.
In 2018, Other unrealized losses on debt securities the Company adoptedintends to sell or will be required to sell prior to any anticipated recovery are recognized in earnings and measured as the Accounting Standards Update (ASU) requiring equitydifference between the cost and the fair value of the debt security.
Equity securities beare measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). The fair value adjustment also includes the cumulative effect of the ASU as of December 31, 2017 reclassified from accumulated other comprehensive earnings to retained earnings.


25

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


Prior to adoption of the ASU, changes in the fair value of equity securities were accounted for similar to changes in the fair value of debt securities. Equity securities were classified as available-for-sale and measured at fair value. Declines in the fair value of equity securities determined to be OTTI were recognized in earnings and reported as OTTI losses. An equity security was determined to be OTTI if the Company did not expect to recover the cost of the equity security. Changes in the fair value of equity securities determined to be temporary were reported in other comprehensive earnings net of income taxes and included as a component of stockholders’ equity.
Interest and dividend income, amortization of premiums, accretion of discounts and realized gains and losses on the sale of debt and equity securities are included in investment income. Interest income is accrued as earned. Dividend income is recognized as income on the ex-dividend date. The cost of debt and equity securities sold is based on the FIFOspecific identification method. With
(h)Leases
The Company conducts a major portion of its retail operations from leased locations. The Company determines whether a lease exists at inception. Initial lease terms are typically 20 years followed by five year renewal options and may include rent escalation clauses. The Company recognizes right-of-use assets and lease liabilities based on the adoptionpresent value of future lease payments. Future lease payments include the ASU,initial lease term and any renewal options to the fairextent it is reasonably certain the option will be exercised. The present value adjustmentof future lease payments is determined by using the Company’s incremental borrowing rate at the time of lease commencement. The incremental borrowing rate is estimated based on equity securities held asa composite index of December 29, 2018debt for similarly rated companies with comparable terms.
Operating lease expense primarily represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term. Variable lease expense represents the payment of real estate taxes, insurance, maintenance and, for certain locations, additional rentals based on a percentage of sales in excess of stipulated minimums (excess rent). The payment of variable real estate taxes, insurance and maintenance is also included in investment income.generally based on the Company’s pro-rata share of total shopping center square footage. The Company estimates excess rent, where applicable, based on annual sales projections and uses the straight-line method to amortize the cost. The annual sales projections are reviewed periodically and adjusted if necessary.
(h)Property, Plant and Equipment and Depreciation
(i)Property, Plant and Equipment and Depreciation
Assets are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives or the terms of the related leases, if shorter, as follows: buildings and improvements (10–(10‑40 years); furniture, fixtures and equipment (3–(3‑20 years); leasehold improvements (10‑20 years); and leasehold improvements (10–finance lease right-of-use assets (5‑20 years).
Maintenance and repairs are expensed as incurred. Expenditures for renewals and betterments are capitalized. The gain or loss realized on disposed assets or assets to be disposed of is recorded in earnings.
(i)Long-Lived Assets
(j)Long-Lived Assets
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the net book value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the net book value of an asset to the future net undiscounted cash flows expected to be generated by the asset. An impairment loss is recorded for the excess of the net book value over the fair value of the asset. The fair value is estimated based on expected discounted future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell and are no longer depreciated.depreciated or amortized. Long-lived assets, including operating lease right-of-use assets, buildings and improvements, leasehold improvements, and furniture, fixtures and equipment, leasehold improvements and finance lease right-of-use assets, are evaluated for impairment at the supermarket level.
(j)Self-Insurance
(k)Self-Insurance
The Company is generally self-insured for claims related to health care, claims andemployee benefits, workers’ compensation, general liability, property, plant and equipment, losses.fleet liability and directors and officers liability. The Company hasuses third party insurance coverage for losses in excess of self-insurance limits for workers’ compensation, general liability and fleet liability claims.certain instances to partially mitigate the risk related to these potential losses. Self-insurance reserves are established for health care, workers’ compensation, general liability and fleet liability claims. These reserves are determined based on actual claims experience and an estimate of claims incurred but not reported including, where necessary, actuarial studies. Actuarial projections of losses for general liability and workers’ compensation claims are discounted.
(k)Postretirement Benefit

26

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(l)Postretirement Benefit
The Company provides a postretirement life insurance benefit for certain salaried and hourly full-time employees who meet the eligibility requirements. Effective January 1, 2002, the Company amended the postretirement life insurance benefit under its Group Life Insurance Plan. To receive the postretirement life insurance benefit after the amendment, an employee must have had at least five years of full-time service and the employee’s age plus years of credited service must have equaled 65 or greater as of October 1, 2001. At retirement, such employees also must be at least age 55 with at least 10 years of full-time service to be eligible to receive the postretirement life insurance benefit.
Actuarial projections are used to calculate the year end postretirement benefit obligation, discounted using a yield curve methodology based on high quality bonds with a rating of AA or better. Actuarial losses are amortized from accumulated other comprehensive earnings into net periodic postretirement benefit cost over future years when the accumulation of such losses exceeds 10% of the year end postretirement benefit obligation. The Company included the accrued postretirement benefit obligation of $122,668,000 and $131,356,000 in other noncurrent liabilities on the consolidated balance sheets as of December 25, 2021 and December 26, 2020, respectively.
(l)Comprehensive Earnings
(m)Comprehensive Earnings
Comprehensive earnings include net earnings and other comprehensive earnings. Other comprehensive earnings include revenues, expenses, gains and losses that have been excluded from net earnings and recorded directly to stockholders’ equity. Included in other comprehensive earnings for the Company are certain unrealized gains and losses on debt securities in 2018, unrealized gains and losses on debt and equity securities in 2017 and 2016 and adjustments to the postretirement benefit obligation.obligation net of income taxes.

(n)Revenue Recognition

The Company sells grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. Grocery was 84% of sales for 2021, 85% of sales for 2020 and 84% of sales for 2019. All other products and services were 16% of sales for 2021, 15% of sales for 2020 and 16% of sales for 2019.
26

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


(m)Revenue Recognition
Revenue is recognized at the point of sale for retail sales. Customer returns are immaterial. Vendor coupons that are reimbursed are accounted for as sales. Coupons and other sales incentives offered by the Company that are not reimbursed are recorded as a reduction of sales. The Company records sales net of applicable sales taxes.
(n)Other Operating Income
(o)Other Operating Income
Other operating income is recognized on a net revenue basis as earned. Other operating income includes income generated from other activities, primarily lotteryautomated teller transaction fees, licensee sales commissions, licensee saleslottery commissions, mall gift card commissions, automated teller transaction fees,money order commissions, money transfer fees and vending machine commissions and coupon redemption income.commissions.
(o)Cost of Merchandise Sold
(p)Cost of Merchandise Sold
Cost of merchandise sold includes costs of inventory and costs related to in-store production. Cost of merchandise sold also includes inbound freight charges, purchasing and receiving costs, warehousing costs and other costs of the Company’s distribution network.
Allowances and credits, including cooperative advertising allowances,Rebates received from a vendor in connection with the purchase or promotion of the vendor’s products are recognized as a reduction of cost of merchandise sold as earned. These allowances and creditsvendor rebates are recognized as earned in accordance with the underlying agreement with the vendor and completion of the earnings process. Short-term vendor agreements with advance payment provisions are recorded as a current liability and recognized over the appropriate period as earned according to the underlying agreements. Long-term vendor agreements with advance payment provisions are recorded as a noncurrent liability and recognized over the appropriate period as earned according to the underlying agreements.
(p)Advertising Costs
(q)Advertising Costs
Advertising costs are expensed as incurred and were $249,123,000, $251,933,000$280,199,000, $244,839,000 and $260,367,000$245,403,000 for 2018, 20172021, 2020 and 2016,2019, respectively.
(q)Other Nonoperating Income, net
(r)Other Nonoperating Income, net
Other nonoperating income, net includes rent received from tenants in owned shopping centers, net of related expenses, and other miscellaneous nonoperating income.
(r)Income Taxes


27

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(s)Income Taxes
Deferred income taxes are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in income tax rates expected to be in effect when the temporary differences reverse. The Company recognizes accrued interest and penalties related to income tax liabilities as a component of income tax expense. The Company invests in certain investment related tax credits that promote affordable housing and renewable energy. These investments generate a return primarily through the realization of federal and state tax credits and other tax benefits. The Company accounts for its affordable housing investments using the proportional amortization method. Under this method, the investment is amortized into income tax expense in proportion to the tax credits received and the investment tax credits are recognized as a reduction of income tax expense. The Company accounts for its renewable energy investments using the deferral method. Under this method, the investment tax credits are recognized as a reduction of the renewable energy investments.
(s)Common Stock and Earnings Per Share
(t)Common Stock and Earnings Per Share
Earnings per share is calculated by dividing net earnings by the weighted average shares outstanding. Basic and diluted earnings per share are the same because the Company does not have options or other stock compensation programs that impact the calculation of diluted earnings per share. All shares owned by the Employee Stock Ownership Plan (ESOP) are included in the earnings per share calculations. Dividends paid to the ESOP, as well as dividends on all other common stock shares, are reflected as a reduction of retained earnings. All common stock shares, including ESOP and 401(k) Plan shares, receive one vote per share and have the same dividend rights. The voting rights for ESOP shares allocated to participants’ accounts are passed through to the participants. The Trustee of the Company’s common stock in the 401(k) Plan votes the shares held in that plan.
(t)Use of Estimates
(u)Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(v)Reclassifications

Certain 2020 amounts have been reclassified to conform with the 2021 presentation in the consolidated balance sheets.

27

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


(2)    Fair Value of Financial Instruments
The fair value of certain of the Company’s financial instruments, including cash and cash equivalents, trade receivables and accounts payable, approximates their respective carrying amounts due to their short-term maturity.
The fair value of investments is based on market prices using the following measurement categories:
Level 1 – Fair value is determined by using quoted prices in active markets for identical investments. Investments included in this category are equity securities (exchange traded funds and individual equity securities) and a restricted investment (mutual fund) held as collateral in 2017, collectively referred to as equity securities.funds).
Level 2 – Fair value is determined by using other than quoted prices. By using observable inputs (for example, benchmark yields, interest rates, reported trades and broker dealer quotes), the fair value is determined through processes such as benchmark curves, benchmarking of likesimilar securities and matrix pricing of corporate, government-sponsored agency, state and municipal bonds by using pricing of similar bonds based on coupons, ratings and maturities. Investments included in this category are primarily debt securities (tax exempt and taxable bonds), including a restricted investmentinvestments in taxable bonds held as collateral in 2018.collateral.
Level 3 – Fair value is determined by using other than observable inputs. Fair value is determined by using the best information available in the circumstances and requires significant management judgment or estimation. No investments are currently included in this category.
Following is a summary of fair value measurements for investments as of December 29, 201825, 2021 and December 30, 2017:26, 2020:
Fair ValueLevel 1Level 2Level 3
(Amounts are in thousands)
December 25, 2021$13,651,477 2,159,365 11,492,112 —
December 26, 202011,288,199 1,465,987 9,822,212 —

28
  Fair Value Level 1 Level 2 Level 3
  (Amounts are in thousands)
December 29, 2018 $6,577,430
 2,372,931
 4,204,499
 —
December 30, 2017 6,433,311
 2,545,320
 3,887,991
 —

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(3)    Investments
(a)Debt Securities
(a)Debt Securities
Following is a summary of debt securities as of December 29, 201825, 2021 and December 30, 2017:26, 2020:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value

 Cost 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value(Amounts are in thousands)

 (Amounts are in thousands)
2018        
20212021
Tax exempt bonds $1,256,673
 184
 12,759
 1,244,098
Tax exempt bonds$268,899 2,351 — 271,250 
Taxable bonds 2,527,468
 1,737
 55,085
 2,474,120
Taxable bonds9,644,692 108,697 108,906 9,644,483 
Restricted investment 160,318
 520
 346
 160,492
Restricted investmentsRestricted investments170,769 7,629 359 178,039 

 $3,944,459
 2,441
 68,190
 3,878,710
$10,084,360 118,677 109,265 10,093,772 
2017 

 
 
 
20202020
Tax exempt bonds $1,811,523
 602
 16,420
 1,795,705
Tax exempt bonds$548,438 7,408 88 555,758 
Taxable bonds 2,115,174
 695
 25,443
 2,090,426
Taxable bonds8,182,003 286,745 8,324 8,460,424 
Restricted investmentsRestricted investments167,727 14,383 — 182,110 

 $3,926,697
 1,297
 41,863
 3,886,131
$8,898,168 308,536 8,412 9,198,292 
The Company held amaintains restricted investment as of December 29, 2018investments primarily for the benefit of the Company’s insurance carrier related to self-insurance reserves. This investment isThese investments are held as collateral and not used for self-insured claimsclaim payments.


28

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


The cost and fair value of debt securities by expected maturity as of December 29, 201825, 2021 and December 30, 201726, 2020 are as follows:
20212020
Cost
Fair
Value
Cost
Fair
Value
(Amounts are in thousands)
Due in one year or less$875,740 883,066 677,453 682,965 
Due after one year through five years6,353,221 6,403,573 5,330,696 5,533,074 
Due after five years through ten years2,852,531 2,804,131 2,886,333 2,978,301 
Due after ten years2,868 3,002 3,686 3,952 
$10,084,360 10,093,772 8,898,168 9,198,292 


29

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

  
 2018 2017
  Cost 
Fair
Value
 Cost 
Fair
Value
    (Amounts are in thousands)   
Due in one year or less $563,272

560,992

917,576

915,579
Due after one year through five years 2,831,916

2,768,971

2,794,099

2,757,504
Due after five years through ten years 542,488

541,852

205,792

203,533
Due after ten years 6,783

6,895

9,230

9,515

 $3,944,459

3,878,710

3,926,697

3,886,131
The Company had no debt securities with credit losses as of December 25, 2021 and December 26, 2020.
Following is a summary of temporarily impaired debt securities with other unrealized losses by the time period impaired as of December 29, 201825, 2021 and December 30, 2017:26, 2020:
Less Than
12 Months
12 Months
or Longer
Total
 
Less Than
12 Months
 
12 Months
or Longer
 Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
(Amounts are in thousands)
20212021
 (Amounts are in thousands) 
2018 
 
 
 
 
 
 
Tax exempt bonds $25,150
 95
 1,182,783
 12,664
 1,207,933
 12,759
 
Taxable bonds 645,379
 5,821
 1,464,208
 49,264
 2,109,587
 55,085
 Taxable bonds$4,225,323 72,862 1,131,942 36,044 5,357,265 108,906 
Restricted investment 28,687
 346
 —
 —
 28,687
 346
 
Restricted investmentsRestricted investments17,115 359 — — 17,115 359 

 $699,216
 6,262
 2,646,991
 61,928
 3,346,207
 68,190
 $4,242,438 73,221 1,131,942 36,044 5,374,380 109,265 
2017 
 
 
 
 
 
 
20202020
Tax exempt bonds $1,543,151
 13,827
 136,217
 2,593
 1,679,368
 16,420
 Tax exempt bonds$3,704 88 — — 3,704 88 
Taxable bonds 811,886
 4,908
 1,153,645
 20,535
 1,965,531
 25,443
 Taxable bonds1,157,387 7,946 39,622 378 1,197,009 8,324 

 $2,355,037
 18,735
 1,289,862
 23,128
 3,644,899
 41,863
 
$1,161,091 8,034 39,622 378 1,200,713 8,412 
There are 400219 debt securities contributing to the total unrealized losses of $68,190,000$109,265,000 as of December 29, 2018.25, 2021. Unrealized losses related to debt securities are primarily due to increases in interest rates impactingthat occurred since the market value of certain bonds.debt securities were purchased. The Company continues to receive scheduled principal and interest payments on these debt securities.
(b)Equity Securities
Following is a summary of the(b)Equity Securities
The fair value of equity securities was $3,557,705,000 and $2,089,907,000 as of December 29, 201825, 2021 and December 30, 2017:26, 2020, respectively.
(c)Investment Income
 20182017
 (Amounts are in thousands)
Equity securities $2,698,720
  2,383,095
 
Restricted investment —
  164,085
 
  $2,698,720
  2,547,180
 
The Company held a restricted investment as of December 30, 2017 for the benefit of the Company’s insurance carrier related to self-insurance reserves. This investment was held as collateral and not used for self-insured claims payments.


29

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


(c)Investment Income
In the following table, netNet realized gain on the sale of investments represents the difference between the cost and the proceeds from the sale of debt and equity securities. For 2018, theThe net realized gain on the sale of investments excludes the net gain or loss on the sale of equity securities previously recognized through the fair value adjustment, which is presented separately.separately in the following table.
Following is a summary of investment income for 2018, 20172021, 2020 and 2016:2019:
202120202019
 (Amounts are in thousands)
Interest and dividend income$197,354 199,435 186,748 
Net realized gain on investments33,335 396,584 104,905 
230,689 596,019 291,653 
Fair value adjustment, due to net unrealized gain, on equity securities held at end of year1,108,956 554,547 472,490 
Net (gain) loss on sale of equity securities previously recognized through fair value adjustment(9,441)(175,560)50,229 
$1,330,204 975,006 814,372 

30
 201820172016
 (Amounts are in thousands)
Interest and dividend income $129,953
  117,702
  100,811
 
Net realized gain on sale of investments 109,547
  108,924
  32,256
 
  239,500
  226,626
  133,067
 
Fair value adjustment, due to net unrealized loss, on equity securities held at end of year (107,466)  —
  —
 
Net gain on sale of equity securities previously recognized through fair value adjustment (75,335)  —
  —
 
  $56,699
  226,626
  133,067
 


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(4)    Leases
(a)Lessee
Following is a summary of lease expense for 2021, 2020 and 2019:
202120202019
(Amounts are in thousands)
Operating lease expense$444,979 443,063 434,555 
Finance lease expense:
Amortization of right-of-use assets22,045 9,850 8,128 
Interest on lease liabilities10,626 4,651 3,105 
Variable lease expense166,535 159,236 147,463 
Sublease rental income(2,226)(2,819)(2,874)
$641,959 613,981 590,377 
Supplemental cash flow information related to leases for 2021, 2020 and 2019 was as follows:
202120202019
(Amounts are in thousands)
Operating cash flows from rent paid for operating lease liabilities$444,068 436,988 422,596 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases362,499 364,757 463,727 
Finance leases188,448 174,307 65,539 

31

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

The weighted average remaining lease term and weighted average discount rate as of December 25, 2021 and December 26, 2020 are as follows:
20212020
Weighted average remaining lease term:
Operating leases12 years12 years
Finance leases19 years19 years
Weighted average discount rate:
Operating leases3.3 %3.4 %
Finance leases3.1 %3.3 %
Maturities of lease liabilities as of December 25, 2021 are as follows:
Year
Operating
Leases
Finance
Leases
(Amounts are in thousands)
2022$447,517 30,254 
2023414,328 45,041 
2024368,259 29,357 
2025318,446 29,357 
2026273,853 29,357 
Thereafter1,766,073 400,310 
3,588,476 563,676 
Less: Imputed interest(662,989)(131,269)
$2,925,487 432,407 
As of December 25, 2021, the Company has lease agreements that have not yet commenced with fixed lease payments totaling $594,654,000. These leases will commence in future periods with terms ranging up to 20 years.

32

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(b)    Lessor
The Company leases space in owned shopping centers to tenants under noncancelable operating leases. The Company determines whether a lease exists at inception. Initial lease terms are typically five years followed by five year renewal options and may include rent escalation clauses. Lease income primarily represents fixed lease payments from tenants recognized on a straight-line basis over the applicable lease term. Variable lease income represents tenant payments for real estate taxes, insurance, maintenance and, for certain locations, excess rent.
Following is a summary of total lease income for 2021, 2020 and 2019:
202120202019
(Amounts are in thousands)
Lease income$162,313 133,512 149,313 
Variable lease income    44,046 38,797 41,472 
$206,359 172,309 190,785 
In 2020, the Company offered two months of rent relief to tenants in Company owned shopping centers that were impacted by the coronavirus pandemic. The rent relief was recorded as a reduction to lease income and variable lease income.
Future fixed lease payments for all noncancelable operating leases as of December 25, 2021 are as follows:
Year
(Amounts are in thousands)
2022$155,672 
2023129,035 
2024100,159 
202572,208 
202647,208 
Thereafter167,496 
$671,778 

33

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(5)    Consolidation of Joint Ventures and Long-Term Debt
From time to time, the Company enters into a joint venture (JV), in the legal form of a limited liability company, with certain real estate developers to partner in the development of a shopping center with the Company as the anchor tenant. The Company consolidates certain of these JVs in which it has a controlling financial interest. The Company is considered to have a controlling financial interest in a JV when it has (1) the power to direct the activities of the JV that most significantly impact the JV’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from the JV that could potentially be significant to such JV.
The Company evaluates a JV using specific criteria to determine whether the Company has a controlling financial interest and is the primary beneficiary of the JV. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of the other JV members, voting rights, involvement in routine capital and operating decisions and each member’s influence over the JV owned shopping center’s economic performance.
Generally, most major JV decision making is shared between all members. In particular, the use and sale of JV assets, business plans and budgets are generally required to be approved by all members. However, the Company, through its anchor tenant operating lease agreement, has the power to direct the activities that most significantly influence the economic performance of the JV owned shopping center. Additionally, through its member equity interest in the JV, the Company will receive a significant portion of the JV’s benefits or is obligated to absorb a significant portion of the JV’s losses. Substantially all of the JVs are consolidated as the Company is the primary beneficiary of the JVs.
As of December 29, 2018,25, 2021, the carrying amounts of the assets and liabilities of the consolidated JVs were $144,197,000$194,493,000 and $71,342,000,$76,027,000, respectively. As of December 30, 2017,26, 2020, the carrying amounts of the assets and liabilities of the consolidated JVs were $144,559,000$199,230,000 and $67,631,000,$77,565,000, respectively. The assets are owned by and the liabilities are obligations of the JVs, not the Company, except for a portion of the long-term debt of certain JVs guaranteed by the Company. The JVs are financed with capital contributions from the members, loans and/or the cash flows generated by the JV owned shopping centers once in operation. Total earnings attributable to noncontrolling interests for 2018, 20172021, 2020 and 20162019 were immaterial. The Company’s involvement with these JVs does not have a significant effect on the Company’s financial condition, results of operations or cash flows.
The Company’s long-term debt results primarily from the consolidation of loans of certain JVs and loans assumed in connection with the acquisition of certain shopping centers with the Company as the anchor tenant. The Company assumed loans totaling $9,936,000 during 2018. No loans were assumed during 2017.2021 or 2020. Maturities of JV loans range from June 2020January 2022 through April 2027 and have variable interest rates based on a LIBOR index plus 175200 to 250 basis points. Maturities of assumed shopping center loans range from December 2020January 2022 through January 2027 and have fixed interest rates ranging from 3.7% to 7.5%.


30

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


As of December 29, 2018,25, 2021, the aggregate annual maturities and scheduled payments of long-term debt are as follows:
Year
(Amounts are in thousands)
2022$39,168 
202337,387 
202433,878 
2025400 
20263,488 
Thereafter23,032 
$137,353 


34

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

Year 
(Amounts are in thousands)
2019$4,954
202041,792
202134,812
202225,096
202318,693
Thereafter42,318
 $167,665
  
(5)(6)    Retirement Plans
The Company has a trusteed, noncontributory ESOP for the benefit of eligible employees. The Company recognizes an expense related to the Company’s discretionary contribution to the ESOP that is approved by the Board of Directors each year. ESOP contributions can be made in Company common stock or cash. Compensation expense recorded for contributions to this plan was $337,712,000, $319,470,000$427,128,000, $417,800,000 and $334,422,000$370,778,000 for 2018, 20172021, 2020 and 2016,2019, respectively.
Since the Company’s common stock is not traded on an established securities market, the ESOP includes a put option for shares of the Company’s common stock distributed from the ESOP. Shares are distributed from the ESOP primarily to separated vested participants and certain eligible participants who elect to diversify their account balances. Under the Company’s administration of the ESOP’s put option, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for a specified time period after distribution of the shares from the ESOP. The fair value of distributed shares subject to the put option totaled $288,580,000$608,089,000 and $311,315,000$444,801,000 as of December 29, 201825, 2021 and December 30, 2017,26, 2020, respectively. The cost of the shares held by the ESOP totaled $2,846,419,000$3,217,039,000 and $2,741,823,000$3,039,748,000 as of December 29, 201825, 2021 and December 30, 2017,26, 2020, respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held by the ESOP are classified as temporary equity in the mezzanine section of the consolidated balance sheets and totaled $3,134,999,000$3,825,128,000 and $3,053,138,000$3,484,549,000 as of December 29, 201825, 2021 and December 30, 2017,26, 2020, respectively. The fair value of the shares held by the ESOP totaled $8,061,399,000$10,855,152,000 and $7,252,657,000$9,976,034,000 as ofDecember 29, 201825, 2021 and December 30, 2017,26, 2020, respectively.
The Company has a 401(k) Plan for the benefit of eligible employees. The 401(k) Plan is a voluntary defined contribution plan. Eligible employees may contribute up to 10%30% of their eligible annual compensation, subject to the maximum contribution limits established by federal law. The Company may make a discretionary annual matching contribution to eligible participants of this plan as determined by the Board of Directors. During 2018, 20172021, 2020 and 2016,2019, the Board of Directors approved a match of 50% of eligible annual contributions up to 3% of eligible annual compensation, not to exceed a maximum match of $750 per employee. The match, which is determined as of the last day of the plan year and paid in the subsequent plan year, is in common stock of the Company. Compensation expense recorded for the Company’s match to the 401(k) Plan was $34,980,000, $33,636,000$43,604,000, $39,858,000 and $30,899,000$38,112,000 for 2018, 20172021, 2020 and 2016,2019, respectively.
The Company intends to continue its retirement plans; however, the right to modify, amend, terminate or merge these plans has been reserved. In the event of termination, all amounts contributed under the plans must be paid to the participants or their beneficiaries.



35
31


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(6)(7)    Income Taxes
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (Tax Act) was signed into law making significant changes to the Internal Revenue Code. Changes included, among others, a decrease in the federal statutory income tax rate from 35% to 21% beginning in 2018.
Total income taxes for 2018, 20172021, 2020 and 20162019 were allocated as follows:
  2018 2017 2016
  (Amounts are in thousands)
Earnings $539,801

735,612

914,688
Other comprehensive (losses) earnings (3,440)
64,324

(1,789)
  $536,361
 799,936
 912,899
202120202019
(Amounts are in thousands)
Earnings$1,147,559 1,064,817 780,591 
Other comprehensive (losses) earnings     (70,290)40,682 46,723 
$1,077,269 1,105,499 827,314 
The provision for income taxes consists of the following:
  Current Deferred Total
  (Amounts are in thousands)
2018      
Federal $413,735
 59,377
 473,112
State 62,821
 3,868
 66,689
  $476,556
 63,245
 539,801
2017      
Federal $771,355
 (113,620) 657,735
State 64,113
 13,764
 77,877
  $835,468
 (99,856) 735,612
2016      
Federal $820,989
 20,697
 841,686
State 69,342
 3,660
 73,002
  $890,331
 24,357
 914,688
CurrentDeferredTotal
(Amounts are in thousands)
2021
Federal$   755,008 263,845 1,018,853 
State     64,306 64,400 128,706 
$819,314 328,245 1,147,559 
2020
Federal$  871,187 56,382 927,569 
State144,074 (6,826)137,248 
$1,015,261 49,556 1,064,817 
2019
Federal$  504,047 171,422 675,469 
State      61,540 43,582 105,122 
$  565,587 215,004 780,591 
A reconciliation of the provision for income taxes at the federal statutory income tax rate of 21% for 2018 and 35% for 2017 and 2016 to earnings before income taxes compared to the Company’s actual income tax expense is as follows:
202120202019
(Amounts are in thousands)
Federal tax at statutory income tax rate$1,167,554 1,057,698 795,057 
State income taxes (net of federal tax benefit)     101,677 108,426 83,046 
ESOP dividend     (50,789)(47,449)(45,493)
Other, net     (70,883)(53,858)(52,019)
$1,147,559 1,064,817 780,591 
  2018 2017 2016
  (Amounts are in thousands)
Federal tax at statutory income tax rate $613,403
 1,059,627
 1,029,132
State income taxes (net of federal tax benefit) 52,684
 50,621
 47,451
ESOP dividend (41,175) (65,111) (65,232)
Other, net (85,111) (85,330) (96,663)
Remeasurement of deferred income taxes —
 (224,195) —
  $539,801

735,612

914,688
The impact of the reduction of the federal statutory income tax rate decreased the Company’s income tax expense for 2017 by $224,195,000 due to the remeasurement of deferred income taxes. The Company had no incomplete or provisional amounts in the remeasurement of deferred income taxes.





3236


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



The tax effects of temporary differences that give rise to significant portions of deferred income taxes as of December 29, 201825, 2021 and December 30, 201726, 2020 are as follows:
  2018 2017
  (Amounts are in thousands)
Deferred tax liabilities and (assets):    
Property, plant and equipment $581,290
 487,026
Inventories 25,989
 23,784
Self-insurance reserves (79,467) (77,783)
Retirement plan contributions (41,424) (42,547)
Postretirement benefit cost (28,224) (30,226)
Purchase allowances (11,114) (9,967)
Investments (10,811) 30,090
Lease accounting (4,662) (8,576)
Other (10,820) (10,849)
  $420,757
 360,952
20212020
(Amounts are in thousands)
Deferred tax liabilities and (assets):
Lease assets$816,777 789,369 
Property, plant and equipment763,625 719,212 
Investments519,928 337,147 
Inventories32,580 30,906 
Lease liabilities(853,711)(815,024)
Self-insurance reserves(90,519)(84,509)
Retirement plan contributions(48,390)(48,390)
Payroll tax deferral(37,885)(75,770)
Postretirement benefit cost(32,885)(35,031)
Vendor rebates(18,940)(18,517)
Other(19,903)(26,671)
$1,030,677 772,722 
The Company expects the results of future operations and the reversal of deferred tax liabilities to generate sufficient taxable income to allow utilization of deferred tax assets; therefore, no0 valuation allowance has been recorded as of December 29, 201825, 2021 and December 30, 2017.26, 2020.
The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns as well as all open tax years in these jurisdictions. The periods subject to examination for the Company’s federal income tax returns are the 20152018 through 20172020 tax years. The periods subject to examination for the Company’s state income tax returns are the 20112016 through 20172020 tax years. The Company believes that the outcome of any examinations will not have a material effect on its financial condition, results of operations or cash flows.
The Company had no unrecognized tax benefits in 20182021 and 2017.2020. As a result, there will be no0 effect on the Company’s effective income tax rate in future periods due to the recognition of unrecognized tax benefits.



37
33


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(8)    Accumulated Other Comprehensive Earnings (Losses)
(7)Accumulated Other Comprehensive Earnings (Losses)
A reconciliation of the changes in accumulated other comprehensive earnings (losses) net of income taxes for 2018, 20172021, 2020 and 20162019 is as follows:
Investments
Postretirement
Benefit
Accumulated Other
Comprehensive
Earnings (Losses)
(Amounts are in thousands)
Balances at December 29, 2018$(49,033)(6,729)(55,762)
Unrealized gain on debt securities148,141 — 148,141 
Net realized gain on debt securities reclassified to investment income(602)— (602)
Adjustment to postretirement benefit obligation— (10,488)(10,488)
Net other comprehensive earnings (losses)147,539 (10,488)137,051 
Balances at December 28, 201998,506 (17,217)81,289 
Unrealized gain on debt securities138,989 — 138,989 
Net realized gain on debt securities reclassified to investment income(13,591)— (13,591)
Adjustment to postretirement benefit obligation— (5,736)(5,736)
Net other comprehensive earnings (losses)125,398 (5,736)119,662 
Balances at December 26, 2020223,904 (22,953)200,951 
Unrealized loss on debt securities(200,964)— (200,964)
Net realized gain on debt securities reclassified to investment income(15,886)— (15,886)
Adjustment to postretirement benefit obligation— 10,478 10,478 
Net other comprehensive (losses) earnings(216,850)10,478 (206,372)
Balances at December 25, 2021$7,054 (12,475)(5,421)

  Investments 
Postretirement Benefit
 
Accumulated Other Comprehensive Earnings (Losses)
   (Amounts are in thousands) 
Balances at December 26, 2015  $31,295
   (5,027)   26,268
 
Unrealized gain on debt and equity securities  17,615



—



17,615
 
Net realized gain on debt and equity securities reclassified to investment income  (19,792)   —
   (19,792) 
Adjustment to postretirement benefit obligation  —
   (664)   (664) 
Net other comprehensive losses  (2,177)   (664)   (2,841) 
Balances at December 31, 2016  29,118
   (5,691)   23,427
 
Unrealized gain on debt and equity securities  175,978
   —
   175,978
 
Net realized gain on debt and equity securities reclassified to investment income  (66,836)   —
   (66,836) 
Adjustment to postretirement benefit obligation  —
   (6,997)   (6,997) 
Net other comprehensive earnings (losses)  109,142
   (6,997)   102,145
 
Remeasurement of deferred income taxes reclassified to retained earnings

  29,797
   (2,733)   27,064
 
Balances at December 30, 2017  168,057
   (15,421)   152,636
 
Unrealized loss on debt securities

(19,126)


—



(19,126) 
Net realized loss on debt securities reclassified to investment income  346
   —
   346
 
Adjustment to postretirement benefit obligation  —
   8,692
   8,692
 
Net other comprehensive (losses) earnings  (18,780)   8,692
   (10,088) 
Cumulative effect of net unrealized gain on equity securities reclassified to retained earnings  (198,310)   —
   (198,310) 
Balances at December 29, 2018  $(49,033)   (6,729)   (55,762) 
             
In February 2018, an ASU was issued in response to the Tax Act. The ASU permits companies to reclassify stranded tax effects due to the reduction of the federal statutory income tax rate from accumulated other comprehensive earnings to retained earnings. The Company elected to adopt the ASU early and reclassified $27,064,000 from accumulated other comprehensive earnings to retained earnings in 2017.
In 2018, the Company adopted the ASU requiring equity securities be measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings. Prior to adoption of the ASU, equity securities were classified as available-for-sale and measured at fair value. Changes in fair value determined to be temporary were reported in other comprehensive earnings net of income taxes. Upon adoption of the ASU, the Company reclassified the cumulative effect of the net unrealized gain on equity securities net of income taxes as of December 31, 2017 of $198,310,000 from accumulated other comprehensive earnings to retained earnings.



34

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


(8)(9)    Commitments and Contingencies
(a)Operating Leases
The Company conducts a major portion of its retail operations from leased locations. Initial terms of the leases are typically 20 years followed by five year renewal options and may include rent escalation clauses. Minimum rentals represent fixed lease obligations, including insurance and maintenance to the extent they are fixed in the lease. Contingent rentals represent variable lease obligations, including real estate taxes, insurance, maintenance and, for certain locations, additional rentals based on a percentage of sales in excess of stipulated minimums (excess rent). The payment of variable real estate taxes, insurance and maintenance is generally based on the Company’s pro-rata share of total shopping center square footage. The Company recognizes rent expense for operating leases with rent escalation clauses on a straight-line basis over the applicable lease term. The Company estimates excess rent, where applicable, based on annual sales projections and uses the straight-line method to amortize the cost to rent expense. The annual sales projections are reviewed periodically and adjusted if necessary. Additionally, the Company has operating leases for certain transportation and other equipment.
Total rental expense for 2018, 2017 and 2016 was as follows:
  2018 2017 2016
  (Amounts are in thousands)
Minimum rentals $449,138
 437,403
 419,032
Contingent rentals 133,382
 126,855
 125,406
Sublease rental income (4,339) (4,617) (4,577)
  $578,181
 559,641
 539,861
As of December 29, 2018, future minimum rentals for all noncancelable operating leases and related subleases are as follows:
Year
Minimum Rental Commitments
 
Sublease Rental
Income
 Net
   (Amounts are in thousands)
2019  $434,781
    2,913
  431,868
2020  407,409
    365
  407,044
2021  371,476
    230
  371,246
2022  332,785
    188
  332,597
2023  287,636
    188
  287,448
Thereafter  1,886,433
    690
  1,885,743
   $3,720,520
    4,574
  3,715,946
In 2019, the Company will adopt the ASU requiring the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the consolidated balance sheet. The Company estimates it will recognize approximately $2.9 billion of lease rights and obligations.
The Company also owns shopping centers which are leased to tenants for minimum rentals plus contingent rentals. Minimum rentals represent fixed lease obligations, including insurance and maintenance. Contingent rentals represent variable lease obligations, including real estate taxes, insurance, maintenance and, for certain locations, excess rent. Rental income was $183,963,000, $158,121,000 and $133,656,000 for 2018, 2017 and 2016, respectively.


35

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


As of December 29, 2018, future minimum rentals to be received for all noncancelable operating leases are as follows:
Year 
(Amounts are in thousands)
2019$139,159
2020117,024
202191,137
202267,107
202345,836
Thereafter162,361
 $622,624
  
(b)Letters of Credit
As of December 29, 2018, the Company had outstanding $5,475,000 in trade letters of credit and $12,950,000 in standby letters of credit to support certain purchase obligations.
(c)Litigation
The Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business. The Company believes its recorded reserves are adequate in light of the probable and estimable liabilities. The estimated amount of reasonably possible losses for lawsuits, claims and charges, individually and in the aggregate, is considered to be immaterial. In the opinion of management, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
(9)(10)    Subsequent Event
On January 2, 2019,3, 2022, the Company declared a quarterly dividend on its common stock of $0.26$0.37 per share or $185,800,000,$252,800,000, payable February 1, 20192022 to stockholders of record as of the close of business January 15, 2019.
(10)    Quarterly Information (unaudited)
Following is a summary of the quarterly results of operations for 2018 and 2017. All quarters have 13 weeks.14, 2022.

38


Quarter


First
Second
Third
Fourth 


(Amounts are in thousands, except per share amounts)
2018







 
Revenues
$9,345,807

8,826,003

8,858,101

9,365,807
 
Costs and expenses
8,511,850

8,183,211

8,274,949

8,681,305
 
Net earnings
680,271

616,172

677,744

406,980
 
Earnings per share
0.93

0.84

0.94

0.57
 
2017







 
Revenues
$8,752,946

8,482,827

8,586,080

9,014,985
 
Costs and expenses
8,012,934

7,869,524

7,951,286

8,270,270
 
Net earnings
555,271

495,072

474,927

766,624
 
Earnings per share
0.73

0.65

0.63

1.04
 
Net earnings and earnings per share for the fourth quarter of 2018 were negatively impacted by the ASU requiring equity securities be measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings. Excluding the impact of the ASU, net earnings would have been $660,308,000 or $0.92 per share.
During the fourth quarter of 2017, the Company recorded the remeasurement of deferred income taxes due to the Tax Act. Excluding the impact of the remeasurement, net earnings would have been $542,429,000 or $0.74 per share.


36


Schedule II
PUBLIX SUPER MARKETS, INC.
Valuation and Qualifying Accounts
Years ended December 29, 2018,25, 2021, December 30, 201726, 2020
and December 31, 201628, 2019
Balance at
Beginning of
Year
Additions
Charged to
Income
Deductions
From
Reserves
Balance at
End of
Year
(Amounts are in thousands)
2021
Reserves not deducted from assets:
Self-insurance reserves:
Current$161,223 524,557 494,303 191,477 
Noncurrent235,858 13,055 — 248,913 
$397,081 537,612 494,303 440,390 
2020
Reserves not deducted from assets:
Self-insurance reserves:
Current$149,082 396,185 384,044 161,223 
Noncurrent226,727 9,131 — 235,858 
$375,809 405,316 384,044 397,081 
2019
Reserves not deducted from assets:
Self-insurance reserves:
Current$145,241 398,336 394,495 149,082 
Noncurrent222,419 4,308 — 226,727 
$367,660 402,644 394,495 375,809 

39


Balance at
Beginning of
Year

Additions
Charged to
Income

Deductions
From
Reserves

Balance at
End of
Year

(Amounts are in thousands)
Year Ended December 29, 2018















Reserves not deducted from assets:















Self-insurance reserves:















Current

$137,100



403,598



395,457



145,241

Noncurrent

218,598



3,821



—



222,419




$355,698



407,419



395,457



367,660

Year Ended December 30, 2017















Reserves not deducted from assets:















Self-insurance reserves:















Current

$139,554



342,451



344,905



137,100

Noncurrent

216,125



2,473



—



218,598




$355,679



344,924



344,905



355,698

Year Ended December 31, 2016















Reserves not deducted from assets:















Self-insurance reserves:















Current

$135,865



341,699



338,010



139,554

Noncurrent

214,474



1,651



—



216,125




$350,339



343,350



338,010



355,679



37


Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
As of the end of the period covered by this Annual Report, on Form 10-K, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer each concluded that the Company’s disclosure controls and procedures arewere effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that such information has been accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, in a manner that allows timely decisions regarding required disclosure.
Internal Control over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation that occurred during the quarter ended December 29, 201825, 2021 that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Management oftheCompany is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Securities Exchange Act of 1934)Act). The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 29, 2018.25, 2021. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on this assessment and these criteria, management believes that the Company’s internal control over financial reporting was effective as of December 29, 2018.25, 2021.
Item 9B. Other Information
None
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable
PART III
Item 10. Directors, Executive Officers and Corporate Governance
Certain information concerning the executive officers of the Company is set forth on the following page. All other information regarding this item is incorporated by reference from the Proxy Statement of the Company (2019(2022 Proxy Statement), which the Company intends to file no later than 120 days after its fiscal year end.
The Company has adopted a Code of Ethical Conduct for Financial Managers that applies to the Company’s principal executive officer, principal financial officer, principal accounting officer or controller and all persons performing similar functions. A copy of the Code of Ethical Conduct for Financial Managers was filed as Exhibit 14 to the Annual Report on Form 10-K for the year ended December 28, 2002.
Item 11. Executive Compensation
Information regarding this item is incorporated by reference from the 20192022 Proxy Statement.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Information regarding this item is incorporated by reference from the 20192022 Proxy Statement.
Item 13. Certain Relationships, Related Transactions and Director Independence
Information regarding this item is incorporated by reference from the 20192022 Proxy Statement.
Item 14. Principal Accounting Fees and Services
Information regarding this item is incorporated by reference from the 20192022 Proxy Statement.


40

NameAgeBusiness Experience During Last Five Years
Served as
Officer of
Company
Since
Executive Officers of the Company
David E. Bornmann64Senior Vice President of the Company.1998
Laurie Z. Douglas58Senior Vice President and Chief Information Officer of the Company to January 2019, Senior Vice President, Chief Information Officer and Chief Digital Officer thereafter.2006
John L. Goff, Jr.48Regional Director of Retail Operations of the Company to January 2019, Vice President to January 2022, Senior Vice President thereafter.2019
Randall T. Jones, Sr.59Chief Executive Officer and President of the Company to January 2019, Chief Executive Officer thereafter.2003
Merriann M. Metz46Assistant General Counsel and Assistant Secretary of the Company to June 2019, Vice President, General Counsel and Secretary to January 2022, Senior Vice President, General Counsel and Secretary thereafter.2016
Kevin S. Murphy51Senior Vice President of the Company to January 2019, President thereafter.2014
David P. Phillips62Executive Vice President, Chief Financial Officer and Treasurer of the Company and Trustee of the Committee of Trustees of the ESOP.1990
Michael R. Smith62Senior Vice President of the Company.2005
Officers of the Company
Norman J. Badger43District Manager of Retail Operations of the Company to July 2017, Regional Director of Retail Operations to May 2020, Vice President thereafter.2020
Robert S. Balcerak, Jr.61Director of Real Estate Strategy of the Company to April 2017, Vice President thereafter.2017
Randolph L. Barber59Director of Industrial Maintenance of the Company to January 2018, Vice President thereafter.2018
Robert J. Bechtel58Vice President of the Company.2016
Adrian Bennett52Regional Director of Retail Operations of the Company to July 2021, Vice President thereafter.2021
Marcy P. Benton53Director of Retail Associate Relations of the Company to September 2017, Vice President thereafter.2017
Matthew I. Crawley53Regional Director of Retail Operations of the Company to January 2022, Vice President thereafter.2022
Kyle C. Davis59Director of Warehousing of the Company to January 2022, Vice President thereafter.2022
G. Gino DiGrazia59Vice President of the Company.2002
Christopher P. Haake53Business Development Director of General Merchandise and Health and Beauty Care of the Company to June 2018, Business Development Director of Dry Grocery to February 2019, Business Development Director of Grocery Retail Support to January 2022, Vice President thereafter.2022
Linda S. Hall62Vice President of the Company.2002
Douglas A. Harris, Jr.49General Manager of Manufacturing Operations of the Company to March 2018, Director of Manufacturing Operations to May 2019, Vice President thereafter.2019
Kris Jonczyk52Regional Director of Retail Operations of the Company to January 2020, Vice President thereafter.2020
Linda S. Kane56Vice President and Assistant Secretary of the Company.2000
Erik J. Katenkamp50Vice President of the Company.2013
L. Renee Kelly60Vice President of the Company.2013
Michael E. Lester56Director of Warehousing of the Company to January 2019, Vice President thereafter.2019
Christopher M. Litz58Vice President of the Company.2016


3841


Name Age Business Experience During Last Five Years 
Served as
Officer of
Company
Since
Executive Officers of the Company
John A. Attaway, Jr. 60 Senior Vice President, General Counsel and Secretary of the Company. 2000
Hoyt R. Barnett 75 Vice Chairman of the Company and Trustee of the ESOP to July 2015, Vice Chairman and Trustee on the Committee of Trustees of the ESOP thereafter. 1977
David E. Bornmann 61 Senior Vice President of the Company. 1998
Jeffrey G. Chamberlain 62 Vice President of the Company to January 2017, Senior Vice President thereafter. 2011
Laurie Z. Douglas 55 Senior Vice President and Chief Information Officer of the Company to January 2019, Senior Vice President, Chief Information Officer and Chief Digital Officer thereafter. 2006
Randall T. Jones, Sr. 56 President of the Company to May 2016, Chief Executive Officer and President to January 2019, Chief Executive Officer thereafter. 2003
Kevin S. Murphy 48 Regional Director of Retail Operations of the Company to March 2014, Vice President to May 2016, Senior Vice President to January 2019, President thereafter. 2014
David P. Phillips 59 Chief Financial Officer and Treasurer of the Company to July 2015, Chief Financial Officer, Treasurer and Trustee on the Committee of Trustees of the ESOP to May 2016, Executive Vice President, Chief Financial Officer, Treasurer and Trustee on the Committee of Trustees of the ESOP thereafter. 1990
Michael R. Smith 59 Senior Vice President of the Company. 2005
Officers of the Company
Robert S. Balcerak, Jr. 58 Director of Real Estate Strategy of the Company to April 2017, Vice President thereafter. 2017
Randolph L. Barber 56 Director of Industrial Maintenance of the Company to January 2018, Vice President thereafter. 2018
Robert J. Bechtel 55 Regional Director of Retail Operations of the Company to May 2016, Vice President thereafter. 2016
Marcy P. Benton 50 Director of Retail Associate Relations of the Company to September 2017, Vice President thereafter. 2017
Scott E. Brubaker 60 Vice President of the Company. 2005
Joseph DiBenedetto, Jr. 59 Vice President of the Company. 2011
G. Gino DiGrazia 56 Vice President of the Company. 2002
Sandra J. Estep 59 Vice President of the Company. 2002
John L. Goff, Jr. 45 District Manager of Retail Operations of the Company to May 2014, Regional Director of Retail Operations to January 2019, Vice President thereafter. 2019
Linda S. Hall 59 Vice President of the Company. 2002
Mark R. Irby 63 Vice President of the Company. 1989
Linda S. Kane 53 Vice President and Assistant Secretary of the Company. 2000
Erik J. Katenkamp 47 Vice President of the Company. 2013
L. Renee Kelly 57 Vice President of the Company. 2013
Michael E. Lester 53 Warehouse Operations Manager of the Company to May 2014, Director of Warehousing to January 2019, Vice President thereafter. 2019
Christopher M. Litz 55 Regional Director of Retail Operations of the Company to January 2016, Vice President thereafter.
 2016
Robert J. McGarrity 57 Director of Construction of the Company to January 2017, Vice President thereafter. 2017
NameAgeBusiness Experience During Last Five Years
Served as
Officer of
Company
Since
Officers of the Company (Continued)
Robert J. McGarrity60Vice President of the Company.2017
Christopher J. Mesa52Director of Tax of the Company to February 2018, Director of Tax and Treasury to January 2022, Vice President thereafter.2022
Brad E. Oliver48Business Development Director of Grocery Retail Support of the Company to March 2017, Business Development Director of DSD Products to January 2018, Vice President thereafter.2018
Samuel J. Pero59Vice President of the Company.2016
John F. Provenzano48Executive Director of the National Association of State Treasurers to June 2017, Vice President of the Company thereafter.2017
William W. Rayburn, IV59Director of Real Estate Assets of the Company to September 2017, Vice President thereafter.2017
Malinda G. Renfroe42Manager of Marketing Brand Management of the Company to April 2019, Director of Marketing Operations to March 2022, Vice President thereafter.2022
Charles B. Roskovich, Jr.60Vice President of the Company.2008
Dain Rusk48Group Vice President of Pharmacy Operations of Albertsons Companies to June 2018, Vice President of the Company thereafter.2018
Marc H. Salm61Vice President of the Company.2008
D. Doug Stalbaum42Director of Finance of Rooms To Go to March 2019, Director of Business Analysis and Reporting of the Company to January 2022, Vice President thereafter.2022
Steven B. Wellslager55Vice President of the Company.2013


39

Name Age Business Experience During Last Five Years 
Served as
Officer of
Company
Since
Officers of the Company (Continued)
Merriann M. Metz 43 Assistant General Counsel of the Company to May 2016, Assistant General Counsel and Assistant Secretary thereafter. 2016
Peter M. Mowitt 59 Vice President of the Company. 2013
Brad E. Oliver 45 Business Development Director of Grocery Retail Support of the Company to March 2017, Business Development Director of DSD Products to January 2018, Vice President thereafter. 2018
Samuel J. Pero 56 Regional Director of Retail Operations of the Company to May 2016, Vice President thereafter. 2016
John F. Provenzano 45 Government Affairs Director of Delta Air Lines to September 2014, Executive Director of the National Association of State Treasurers to June 2017, Vice President of the Company thereafter. 2017
William W. Rayburn, IV 56 Director of Real Estate Assets of the Company to September 2017, Vice President thereafter. 2017
Charles B. Roskovich, Jr. 57 Vice President of the Company. 2008
Dain Rusk 45 Vice President and General Manager of Pharmacy of Sears Holdings Corporation to February 2015, Vice President of Pharmacy Business Development of Albertsons Companies to August 2016, Group Vice President of Pharmacy Operations of Albertsons Companies to June 2018, Vice President of the Company thereafter. 2018
Marc H. Salm 58 Vice President of the Company. 2008
Jeffrey D. Stephens 63 Vice President of the Company. 2013
Steven B. Wellslager 52 Vice President of the Company. 2013


The terms of all officers expire in May 20192022 or upon the election of their successors.



42
40


PART IV
Item 15. Exhibits and Financial Statement Schedules
(a)Consolidated Financial Statements and Schedule
The consolidated financial statements and schedule listed in the accompanying Index to Consolidated Financial Statements and Schedule are filed as part of this Annual Report on Form 10-K.Report.
(b)Exhibits
3.1
Composite Restated Articles of Incorporation are incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended April 1, 2006.
3.2
Amended and Restated Bylaws are incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K dated November 14, 2012.
104.1
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 is incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K for the year ended December 28, 2019.
10*
Form of Indemnification Agreement between the Company and its directors and officers is incorporated by reference to Exhibit 10 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2001.
10.210.2*
Incentive Bonus Plan is incorporated by reference to Exhibit 10.2 to the Annual Report on Form 10-K for the year ended December 31, 2011.
10.510.5*
Form of Indemnification Agreement between the Company and one of the Trustees of the Company’s 401(k) Plan and each member of the Company’s 401(k) Plan investment committee is incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K dated December 14, 2011.
10.610.6*
Supplemental Executive Retirement Plan is incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K dated November 14, 2012.
10.710.7*
Form of Indemnification Agreement between the Company and the Trustees onof the Committee of Trustees of the Company’s ESOP is incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K dated July 1, 2015.
14
Code of Ethical Conduct for Financial Managers is incorporated by reference to Exhibit 14 to the Annual Report on Form 10-K for the year ended December 28, 2002.
21
Subsidiaries of the Registrant.
23
Consent of Independent Registered Public Accounting Firm.
31.1
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101The following financial information from thethis Annual Report on Form 10-K for the year ended December 29, 2018 is formatted in Extensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Earnings, (iii) Consolidated Statements of Comprehensive Earnings, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Stockholders’ Equity and (vi) Notes to Consolidated Financial Statements.
* Represents management contract or compensatory plan or arrangement.
Item 16. Form 10-K Summary
None



43
41


SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrantRegistrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PUBLIX SUPER MARKETS, INC.
March 1, 20192022By:/s/ John A. Attaway, Jr.Merriann M. Metz
John A. Attaway, Jr.Merriann M. Metz
Secretary
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrantRegistrant and in the capacities and on the dates indicated.
/s/ Hoyt R. BarnettVice Chairman and DirectorMarch 1, 2019
Hoyt R. Barnett
/s/ Jessica L. BlumeDirectorMarch 1, 20192022
Jessica L. Blume
/s/ William E. CrenshawChairman of the Board and DirectorMarch 1, 20192022
William E. Crenshaw
/s/ Jane B. FinleyJoseph DiBenedetto, Jr.DirectorMarch 1, 20192022
Jane B. FinleyJoseph DiBenedetto, Jr.
/s/ G. Thomas HoughDirectorMarch 1, 2019
G. Thomas Hough
/s/ Charles H. Jenkins, Jr.Chairman Emeritus and DirectorMarch 1, 2019
Charles H. Jenkins, Jr.
/s/ Howard M. JenkinsDirectorMarch 1, 20192022
Howard M. Jenkins
/s/ Jennifer A. JenkinsDirectorMarch 1, 2022
Jennifer A. Jenkins
/s/ Randall T. Jones, Sr.Chief Executive Officer and DirectorMarch 1, 20192022
Randall T. Jones, Sr.(Principal Executive Officer)
/s/ Stephen M. KnopikDirectorMarch 1, 20192022
Stephen M. Knopik
/s/ David P. PhillipsExecutive Vice President, Chief Financial Officer, and DirectorTreasurerMarch 1, 20192022
David P. Phillips(Principaland Director (Principal Financial and Accounting Officer)



4244