Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 30, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PFGC | |
Entity Registrant Name | Performance Food Group Company | |
Entity Central Index Key | 0001618673 | |
Current Fiscal Year End Date | --06-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 105,184,922 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash | $ 7.7 | $ 7.5 |
Accounts receivable, less allowances of $25.2 and $19.3 | 1,128.5 | 1,065.6 |
Inventories, net | 1,128.3 | 1,051.9 |
Prepaid expenses and other current assets | 60.7 | 78.5 |
Total current assets | 2,325.2 | 2,203.5 |
Goodwill | 747.5 | 740.5 |
Other intangible assets, net | 199.7 | 193.8 |
Property, plant and equipment, net | 895.9 | 795.5 |
Restricted cash | 10.7 | 10.3 |
Other assets | 43.8 | 57.3 |
Total assets | 4,222.8 | 4,000.9 |
Current liabilities: | ||
Outstanding checks in excess of deposits | 276 | 260.8 |
Trade accounts payable | 1,045 | 973 |
Accrued expenses and other current liabilities | 260.9 | 227.8 |
Capital lease obligations—current installments | 16.9 | 8.4 |
Total current liabilities | 1,598.8 | 1,470 |
Long-term debt | 1,042.1 | 1,123 |
Deferred income tax liability, net | 107.1 | 106.3 |
Capital lease obligations, excluding current installments | 125.9 | 52.8 |
Other long-term liabilities | 114.7 | 113.5 |
Total liabilities | 2,988.6 | 2,865.6 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common Stock: $0.01 par value per share, 1.0 billion shares authorized, 103.8 million shares issued and outstanding as of March 30, 2019; 1.0 billion shares authorized, 103.2 million shares issued and outstanding as of June 30, 2018 | 1 | 1 |
Additional paid-in capital | 862.4 | 861.2 |
Accumulated other comprehensive income, net of tax expense of $1.2 and $2.9 | 3.3 | 8.3 |
Retained earnings | 367.5 | 264.8 |
Total shareholders’ equity | 1,234.2 | 1,135.3 |
Total liabilities and shareholders’ equity | $ 4,222.8 | $ 4,000.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 25.2 | $ 19.3 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 103,800,000 | 103,200,000 |
Common stock, shares outstanding | 103,800,000 | 103,200,000 |
Accumulated other comprehensive income, tax expense | $ 1.2 | $ 2.9 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 4,689 | $ 4,349.2 | $ 13,844.4 | $ 13,025.2 |
Cost of goods sold | 4,084.3 | 3,790.5 | 12,031.5 | 11,344.2 |
Gross profit | 604.7 | 558.7 | 1,812.9 | 1,681 |
Operating expenses | 545.5 | 498.6 | 1,630.1 | 1,521.3 |
Operating profit | 59.2 | 60.1 | 182.8 | 159.7 |
Other expense, net: | ||||
Interest expense | 16.5 | 15.2 | 48.1 | 44.9 |
Other, net | (1) | 0.1 | (0.5) | (0.3) |
Other expense, net | 15.5 | 15.3 | 47.6 | 44.6 |
Income before taxes | 43.7 | 44.8 | 135.2 | 115.1 |
Income tax expense (benefit) | 11.4 | 11.1 | 31.6 | (19.2) |
Net income | $ 32.3 | $ 33.7 | $ 103.6 | $ 134.3 |
Weighted-average common shares outstanding: | ||||
Basic | 103.8 | 102.7 | 103.8 | 101.7 |
Diluted | 105.1 | 104.5 | 105.1 | 104.5 |
Earnings per common share: | ||||
Basic | $ 0.31 | $ 0.33 | $ 1 | $ 1.32 |
Diluted | $ 0.31 | $ 0.32 | $ 0.99 | $ 1.29 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 32.3 | $ 33.7 | $ 103.6 | $ 134.3 |
Interest rate swaps: | ||||
Change in fair value, net of tax | (1.5) | 2.8 | (3.7) | 4.6 |
Reclassification adjustment, net of tax | (0.9) | (0.2) | (2.2) | |
Other comprehensive (loss) income | (2.4) | 2.6 | (5.9) | 4.6 |
Total comprehensive income | $ 29.9 | $ 36.3 | $ 97.7 | $ 138.9 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | |
Balance Beginning at Jul. 01, 2017 | $ 925.5 | $ 1 | $ 855.5 | $ 2.4 | $ 66.6 | |
Balance Beginning, shares at Jul. 01, 2017 | 100.8 | |||||
Issuance of common stock under stock-based compensation plans | (21) | (21) | ||||
Issuance of common stock under stock-based compensation plans, shares | 2 | |||||
Net income | 134.3 | 134.3 | ||||
Interest rate swaps | 4.6 | 4.6 | ||||
Stock-based compensation expense | 18 | 18 | ||||
Balance Ending at Mar. 31, 2018 | 1,061.4 | $ 1 | 852.5 | 7 | 200.9 | |
Balance Ending, shares at Mar. 31, 2018 | 102.8 | |||||
Balance Beginning at Dec. 30, 2017 | 1,015.5 | $ 1 | 842.9 | 4.4 | 167.2 | |
Balance Beginning, shares at Dec. 30, 2017 | 102.3 | |||||
Issuance of common stock under stock-based compensation plans | 6.1 | 6.1 | ||||
Issuance of common stock under stock-based compensation plans, shares | 0.5 | |||||
Net income | 33.7 | 33.7 | ||||
Interest rate swaps | 2.6 | 2.6 | ||||
Stock-based compensation expense | 3.5 | 3.5 | ||||
Balance Ending at Mar. 31, 2018 | 1,061.4 | $ 1 | 852.5 | 7 | 200.9 | |
Balance Ending, shares at Mar. 31, 2018 | 102.8 | |||||
Balance Beginning at Jun. 30, 2018 | $ 1,135.3 | $ 1 | 861.2 | 8.3 | 264.8 | |
Balance Beginning, shares at Jun. 30, 2018 | 103.2 | 103.2 | ||||
Issuance of common stock under stock-based compensation plans | $ (1.3) | (1.3) | ||||
Issuance of common stock under stock-based compensation plans, shares | 0.9 | |||||
Net income | 103.6 | 103.6 | ||||
Interest rate swaps | (5.9) | (5.9) | ||||
Stock-based compensation expense | 11.8 | 11.8 | ||||
Common stock repurchased | (9.3) | $ (9.3) | (9.3) | |||
Common stock repurchased, shares | (0.3) | |||||
Change in accounting principle | [1] | 0.9 | (0.9) | |||
Balance Ending at Mar. 30, 2019 | $ 1,234.2 | $ 1 | 862.4 | 3.3 | 367.5 | |
Balance Ending, shares at Mar. 30, 2019 | 103.8 | 103.8 | ||||
Balance Beginning at Dec. 29, 2018 | $ 1,205.1 | $ 1 | 863.2 | 5.7 | 335.2 | |
Balance Beginning, shares at Dec. 29, 2018 | 103.8 | |||||
Issuance of common stock under stock-based compensation plans | (0.5) | (0.5) | ||||
Issuance of common stock under stock-based compensation plans, shares | 0.1 | |||||
Net income | 32.3 | 32.3 | ||||
Interest rate swaps | (2.4) | (2.4) | ||||
Stock-based compensation expense | 3.8 | 3.8 | ||||
Common stock repurchased | (4.1) | $ (4.1) | (4.1) | |||
Common stock repurchased, shares | (0.1) | |||||
Balance Ending at Mar. 30, 2019 | $ 1,234.2 | $ 1 | $ 862.4 | $ 3.3 | $ 367.5 | |
Balance Ending, shares at Mar. 30, 2019 | 103.8 | 103.8 | ||||
[1] | As of the beginning of fiscal 2019, the Company elected to early adopt the provisions of ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Refer to Note 3 for further discussion. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 103.6 | $ 134.3 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 83.7 | 73.7 |
Amortization of intangible assets | 28.6 | 22.1 |
Amortization of deferred financing costs and other | 3.4 | 3.6 |
Provision for losses on accounts receivables | 12.4 | 12 |
Stock compensation expense | 11.8 | 18 |
Deferred income tax expense (benefit) | 2.5 | (38.4) |
Change in fair value of derivative assets and liabilities | 0.1 | (0.1) |
Other | (0.2) | 8.2 |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (63.6) | (38.7) |
Inventories | (61.3) | (24.2) |
Prepaid expenses and other assets | 24.9 | (9.8) |
Trade accounts payable | 67.4 | 106.5 |
Outstanding checks in excess of deposits | 15.2 | (24.9) |
Accrued expenses and other liabilities | 32 | (12.7) |
Net cash provided by operating activities | 260.5 | 229.6 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (93.1) | (73.2) |
Net cash paid for acquisitions | (57.7) | (70.9) |
Proceeds from sale of property, plant and equipment | 1 | 0.6 |
Net cash used in investing activities | (149.8) | (143.5) |
Cash flows from financing activities: | ||
Net payments under ABL Facility | (81.7) | (43.5) |
Payment of Promissory Note | (6) | |
Payments on financed property, plant and equipment | (5) | (1.5) |
Cash paid for acquisitions | (3.5) | (8.4) |
Payments under capital lease obligations | (9.3) | (5.1) |
Proceeds from exercise of stock options | 6.2 | 7.1 |
Cash paid for shares withheld to cover taxes | (7.5) | (28) |
Repurchases of common stock | (9.3) | |
Other | (1.2) | |
Net cash used in financing activities | (110.1) | (86.6) |
Net increase (decrease) in cash and restricted cash | 0.6 | (0.5) |
Cash and restricted cash, beginning of period | 17.8 | 21 |
Cash and restricted cash, end of period | 18.4 | 20.5 |
Debt assumed through capital lease obligations | 90.9 | 10 |
Purchases of property, plant and equipment, financed | 3 | 3.9 |
Interest | 43.6 | 37.3 |
Income taxes, net of refunds | $ 3.2 | $ 25.6 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Reconciliation) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 | |
Statement Of Cash Flows [Abstract] | |||
Cash | $ 7.7 | $ 7.5 | |
Restricted cash | [1] | 10.7 | 10.3 |
Total cash and restricted cash | $ 18.4 | $ 17.8 | |
[1] | Restricted cash represents the amounts required by insurers to collateralize a part of the deductibles for the Company’s workers’ compensation and liability claims. |
Summary of Business Activities
Summary of Business Activities | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Business Activities | 1. Summary of Business Activities Business Overview Performance Food Group Company, through its subsidiaries, markets and distributes national and company-branded food and food-related products to customer locations across the United States. The Company serves both of the major customer types in the restaurant industry: (i) independent customers, and (ii) multi-unit, or “Chain” customers, which include regional and national family and casual dining restaurant chains, fast casual chains, and quick-service restaurants. The Company also serves schools, healthcare facilities, business and industry locations, and other institutional customers. Share Repurchase Program On November 13, 2018, the Board of Directors of the Company (the “Board of Directors”) authorized a share repurchase program for up to $250 million of the Company’s outstanding common stock. The repurchases are executed in accordance with applicable securities laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions or otherwise, including pursuant to Rule 10b5-1 trading plans. The share repurchase program does not have an expiration date and may be amended, suspended, or discontinued at any time. Repurchases under this program depend upon market place conditions and other factors, including compliance with the covenants under the ABL Facility, as defined in Note 6. Debt, and the indenture governing the Notes, as define in Note 6. Debt. The share repurchase program remains subject to the discretion of the Board of Directors. During the three months and nine months ended March 30, 2019, the Company repurchased and subsequently retired 0.1 million and 0.3 million shares of common stock, respectively, for a total of $4.1 million and $9.3 million for the respective periods. As of March 30, 2019, approximately $240.7 million remained available for additional share repurchases. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements have been prepared by the Company, without audit, with the exception of the June 30, 2018 consolidated balance sheet, which was derived from the audited consolidated financial statements included in the Form 10-K. The financial statements include consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income, consolidated statements of shareholders’ equity, and consolidated statements of cash flows. In the opinion of management, all adjustments, which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position, results of operations, comprehensive income, shareholders’ equity, and cash flows for all periods presented have been made. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates used by management are related to the accounting for the allowance for doubtful accounts, reserve for inventories, impairment testing of goodwill and other intangible assets, acquisition accounting, reserves for claims and recoveries under insurance programs, vendor rebates and other promotional incentives, bonus accruals, depreciation, amortization, determination of useful lives of tangible and intangible assets, and income taxes. Actual results could differ from these estimates. The results of operations are not necessarily indicative of the results to be expected for the full fiscal year. Therefore, these financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form 10-K. Certain footnote disclosures included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations for interim financial statements. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 3. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . , Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition The Company markets and distributes national and company-branded food and food-related products to customer locations across the United States. The Foodservice segment supplies a “broad line” of products to its customers, including the Company’s performance brands and custom-cut meats and seafood, as well as products that are specific to each customer’s menu requirements. Vistar distributes candy, snacks and beverages to various customer channels. The Company disaggregates revenue by product offerings and determined that disaggregating revenue at the segment level achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 13. Segment Information for external revenue by reportable segment. The Company assesses the products and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a product or service (or a bundle of products or services) that is distinct. The Company determined that fulfilling and delivering customer orders constitutes a single performance obligation. Revenue is recognized at the point in time when the Company has satisfied its performance obligation and the customer has obtained control of the products. The Company determined that the customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the time the products are delivered to the customer’s requested destination. The Company considers control to have transferred upon delivery because the Company has a present right to payment at this time, the customer has legal title to the products, the Company has transferred physical possession of the assets, and the customer has significant risks and rewards of ownership of the products. The transaction price recognized is the invoiced price, adjusted for any incentives, such as rebates and discounts granted to the customer. The Company estimates expected returns based on an analysis of historical experience. We adjust our estimate of revenue at the earlier of when the amount of consideration we expect to receive changes or when the consideration becomes fixed. The Company has made a policy election to exclude sales tax from the transaction price. The Company does not have any material significant payment terms as payment is received shortly after the point of sale. The Company has customer contracts in which incentives are paid upfront to certain customers. These payments have become industry practice and are not related to financing the customer’s business, nor are they associated with any distinct good or service to be received from the customer. These incentive payments are capitalized and amortized over the life of the contract or the expected life of the customer relationship on a straight-line basis. The Company’s contract asset for these incentives totaled $9.9 million and $6.9 million as of March 30, 2019 and June 30, 2018, respectively. The Company recognizes substantially all of its revenue on a gross basis as a principal. When assessing whether the Company is acting as a principal or an agent, the Company considered the indicators that an entity controls the specified good or service before it is transferred to the customer detailed in ASC 606-10-55-39. The Company believes it earns substantially all revenue as a principal from the sale of products because the Company is responsible for the fulfillment and acceptability of products purchased. Additionally, the Company holds the general inventory risk for the products, as it takes title to the products before the products are ordered by customers and maintains products in inventory. |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 5 . Business Combinations During the first nine months of fiscal 2019, the Company paid cash of $58.1 million for three acquisitions and during the first nine months of fiscal 2018, the Company paid cash of $72.6 million for two acquisitions. These acquisitions did not materially affect the Company’s results of operations. The following table summarizes the preliminary purchase price allocation for each major class of assets acquired and liabilities assumed for the fiscal 2019 acquisitions. (In millions) Fiscal 2019 Net working capital $ 11.9 Goodwill 7.2 Other intangible assets 37.1 Property, plant and equipment 1.9 Total purchase price $ 58.1 Subsequent to March 30, 2019, the Company paid $150.6 million for an acquisition. This acquisition includes contingent consideration related to future earnings of the acquired company. The acquisition will be reported within the Company’s Vistar segment. The Company is in the process of determining the fair values of the assets acquired and liabilities assumed. |
Debt
Debt | 9 Months Ended |
Mar. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 6 . Debt The Company is a holding company and conducts its operations through its subsidiaries, which have incurred or guaranteed indebtedness as described below. Debt consisted of the following: (In millions) As of March 30, 2019 As of June 30, 2018 ABL Facility $ 698.4 $ 780.1 5.500% Notes due 2024 350.0 350.0 Less: Original issue discount and deferred financing costs (6.3 ) (7.1 ) Long-term debt 1,042.1 1,123.0 Capital and finance lease obligations 142.8 61.2 Total debt 1,184.9 1,184.2 Less: current installments (16.9 ) (8.4 ) Total debt, excluding current installments $ 1,168.0 $ 1,175.8 ABL Facility PFGC, Inc. (“PFGC”), a wholly-owned subsidiary of the Company, is a party to the Second Amended and Restated Credit Agreement dated February 1, 2016, as amended by the First Amendment to Second Amended and Restated Credit Agreement dated August 3, 2017 (the “ABL Facility”). The ABL Facility has an aggregate principal amount of $1.95 billion and matures February 2021. The ABL Facility is secured by the majority of the tangible assets of PFGC and its subsidiaries. Performance Food Group, Inc., a wholly-owned subsidiary of PFGC, is the lead borrower under the ABL Facility, which is jointly and severally guaranteed by PFGC and all material domestic direct and indirect wholly-owned subsidiaries of PFGC (other than captive insurance subsidiaries and other excluded subsidiaries). Borrowings under the ABL Facility bear interest, at Performance Food Group, Inc.’s option, at (a) the Base Rate (defined as the greater of (i) the Federal Funds Rate in effect on such date plus 0.5%, (ii) the Prime Rate on such day, or (iii) one month LIBOR plus 1.0%) plus a spread or (b) LIBOR plus a spread. The ABL Facility also provides for an unused commitment fee ranging from 0.25% to 0.375%. The following table summarizes outstanding borrowings, availability, and the end of period average interest rate under the ABL Facility: (Dollars in millions) As of March 30, 2019 As of June 30, 2018 Aggregate borrowings $ 698.4 $ 780.1 Letters of credit under ABL Facility 83.5 121.3 Excess availability, net of lenders’ reserves of $12.7 and $12.1 1,031.5 854.2 Average interest rate 4.06 % 3.52 % Senior Notes On May 17, 2016, Performance Food Group, Inc. issued and sold $350.0 million aggregate principal amount of its 5.500% Senior Notes due 2024 (the “Notes”). The Notes are jointly and severally guaranteed on a senior unsecured basis by PFGC and all domestic direct and indirect wholly-owned subsidiaries of PFGC (other than captive insurance subsidiaries and other excluded subsidiaries). The Notes are not guaranteed by Performance Food Group Company. Letters of Credit Facility On August 9, 2018, Performance Food Group, Inc. and PFGC entered into a Continuing Agreement for Letters of Credit (the “Letters of Credit Facility”). The Letters of Credit Facility is an uncommitted facility that provides for the issuance of letters of credit in an aggregate amount not to exceed $40.0 million. Each letter of credit shall have a term not to exceed one year; however, a letter of credit may renew automatically in accordance with its terms. A fee equal to 2.5% per annum on the average daily amount available to be drawn on each day under each outstanding letter of credit is payable quarterly. As of March 30, 2019, the Company had $30.7 million letters of credit outstanding under the Letters of Credit Facility. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 7 . Derivatives and Hedging Activities Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates and diesel fuel costs. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and payments related to the Company’s borrowings and diesel fuel purchases. The effective portion of changes in the fair value of derivatives that are both designated and qualify as cash flow hedges is recorded in other comprehensive income and subsequently reclassified into earnings in the period that the hedged transaction occurs. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. Since the Company has a substantial portion of its debt in variable-rate instruments, it accomplishes this objective with interest rate swaps. These swaps are designated as cash flow hedges and involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. All of the Company’s interest rate swaps are designated and qualify as cash flow hedges. As of March 30, 2019, Performance Food Group, Inc. had eight interest rate swaps with a combined $550.0 million notional amount. The following table summarizes the outstanding interest rate swap agreement as of March 30, 2019 (in millions): Effective Date Maturity Date Notional Amount Fixed Rate Swapped June 30, 2017 June 30, 2019 50.0 1.13 % June 30, 2017 June 30, 2020 50.0 1.23 % June 30, 2017 June 30, 2020 50.0 1.25 % June 30, 2017 June 30, 2020 50.0 1.26 % August 9, 2018 August 9, 2021 75.0 1.21 % August 9, 2018 August 9, 2021 75.0 1.20 % June 30, 2020 December 31, 2021 100.0 2.16 % August 9, 2021 April 9, 2023 100.0 2.93 % Hedges of Forecasted Diesel Fuel Purchases From time to time, Performance Food Group, Inc. enters into costless collar arrangements to manage its exposure to variability in cash flows expected to be paid for its forecasted purchases of diesel fuel. As of March 30, 2019, Performance Food Group, Inc. was a party to five such arrangements, with an aggregate 7.5 million gallon original notional amount, of which an aggregate 5.3 million gallon notional was remaining. The remaining 5.3 million gallon forecasted purchases of diesel fuel are expected to be made between April 1, 2019 and December 31, 2019. The fuel collar instruments do not qualify for hedge accounting. Accordingly, the derivative instruments are recorded as an asset or liability on the balance sheet at fair value and any changes in fair value are recorded in the period of change as unrealized gains or losses on fuel hedging instruments and included in Other, net, in the accompanying consolidated statements of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Mar. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 8 . Fair Value of Financial Instruments The carrying values of cash, accounts receivable, outstanding checks in excess of deposits, trade accounts payable, and accrued expenses approximate their fair values because of the relatively short maturities of those instruments. The derivative assets and liabilities are recorded at fair value on the balance sheet. The fair value of long-term debt, which has a carrying value of $1,042.1 million and $1,123.0 million, is $1,051.9 million and $1,126.7 million at March 30, 2019 and June 30, 2018, respectively, and is determined by reviewing current market pricing related to comparable debt issued at the time of the balance sheet date, and is considered a Level 2 measurement. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9 . Income Taxes The determination of the Company’s overall effective tax rate requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. The effective tax rate reflects the income earned and taxed in various United States federal and state jurisdictions. Tax law changes, increases and decreases in temporary and permanent differences between book and tax items, tax credits, and the Company’s change in income in each jurisdiction all affect the overall effective tax rate. It is the Company’s practice to recognize interest and penalties related to uncertain tax positions in income tax expense. On December 22, 2017, H.R.1, known as the “Tax Cuts and Jobs Act,” (the “Act”), was signed into law. The Act makes broad and complex changes to the U.S. Internal Revenue Code including, but not limited to: reducing the U.S. federal corporate tax rate from 35% to 21%; creating a new limitation on deductible interest expense; repealing the domestic production activity deduction; providing for bonus depreciation that will allow for full expensing of certain qualified property; and limiting other deductions. The Company’s effective tax rate was 26.1% for the three months ended March 30, 2019 and 24.8% for the three months ended March 31, 2018. The Company’s effective tax rate was 23.4% for the nine months ended March 30, 2019 and -16.7% for the nine months ended March 31, 2018. As a result of the reduction in the federal corporate income tax rate to 21% from 35% under the Act, the Company has a statutory rate of 21% for the three and nine months ended March 30, 2019. For the three and nine months ended March 31, 2018, the blended statutory rate was 28%. Nine months ended March 30, 2019 Nine months ended March 31, 2018 (Dollars in millions) Income Tax Expense Effective Tax Rate Income Tax (Benefit) Expense Effective Tax Rate Income tax expense (benefit), reported $ 31.6 23.4 % $ (19.2 ) -16.7 % Reverse effects of: Revaluation of net deferred income tax liability — — (38.5 ) -33.4 % Stock-based compensation - performance vesting — — (15.4 ) -13.4 % Income tax expense, excluding benefits $ 31.6 23.4 % $ 34.7 30.1 % As of March 30, 2019 and June 30, 2018, the Company had net deferred tax assets of $29.2 million and $29.2 million, respectively, and deferred tax liabilities of $136.3 million and $135.5 million, respectively. As of June 30, 2018, the Company had established a valuation allowance of $0.4 million, net of federal benefit, against deferred tax assets related to certain net operating losses which are not likely to be realized due to limitations on utilization. There was no change in the valuation allowance as of March 30, 2019. The Company believes that it is more likely than not that the remaining deferred tax assets will be realized. The Company records a liability for Uncertain Tax Positions in accordance with FASB ASC 740-10-25, Income Taxes – General – Recognition |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10 . Commitments and Contingencies Purchase Obligations The Company had outstanding contracts and purchase orders for capital projects and services totaling $27.1 million at March 30, 2019. Amounts due under these contracts were not included on the Company’s consolidated balance sheet as of March 30, 2019. Guarantees Subsidiaries of the Company have entered into numerous operating leases, including leases of buildings, equipment, tractors, and trailers. Certain of the leases for tractors, trailers, and other vehicles and equipment provide for residual value guarantees to the lessors. Circumstances that would require the subsidiary to perform under the guarantees include either (1) default on the leases with the leased assets being sold for less than the specified residual values in the lease agreements, or (2) decisions not to purchase the assets at the end of the lease terms combined with the sale of the assets, with sales proceeds less than the residual value of the leased assets specified in the lease agreements. Residual value guarantees under these operating lease agreements typically range between 7% and 20% of the value of the leased assets at inception of the lease. These leases have original terms ranging from 5 to 8 years and expiration dates ranging from 2019 to 2025. As of March 30, 2019, the undiscounted maximum amount of potential future payments for lease residual value guarantees totaled approximately $25.5 million, which would be mitigated by the fair value of the leased assets at lease expiration. The Company participates in a purchasing alliance that was formed to obtain better pricing, to expand product options, to reduce internal costs, and to achieve greater inventory turnover. The Company has entered into agreements to guarantee a portion of the trade payables for such purchasing alliance to their various suppliers as an inducement for these suppliers to extend additional trade credit to the purchasing alliance. In the event of default by the purchasing alliance of its trade payables obligations, these suppliers may proceed directly against the Company to collect their trade payables. The terms of these guarantees have expiration dates throughout 2019. As of March 30, 2019, the undiscounted maximum amount of potential payments covered by these guarantees totaled $8.9 million. The Company believes that the likelihood of payment under these guarantees is remote and that any fair value attributable to these guarantees is immaterial; therefore, no liability has been recorded for these obligations in the Company’s consolidated balance sheets. The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to: (i) certain real estate leases under which subsidiaries of the Company may be required to indemnify property owners for environmental and other liabilities and other claims arising from their use of the applicable premises; (ii) certain agreements with the Company’s officers, directors, and employees under which the Company Litigation The Company is engaged in various legal proceedings that have arisen but have not been fully adjudicated. The likelihood of loss arising from these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When losses are probable and reasonably estimable, they have been accrued. Based on estimates of the range of potential losses associated with these matters, management does not believe that the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the Company. However, the final results of legal proceedings cannot be predicted with certainty and, if the Company failed to prevail in one or more of these legal matters, and the associated realized losses were to exceed the Company’s current estimates of the range of potential losses, the Company’s consolidated financial position or results of operations could be materially adversely affected in future periods. U.S. Equal Employment Opportunity Commission Lawsuit . In March 2009, the Baltimore Equal Employment Opportunity Commission (“EEOC”) Field Office served us with company-wide (excluding, however, our Vistar and Roma Foodservice operations) subpoenas relating to alleged violations of the Equal Pay Act and Title VII of the Civil Rights Act (“Title VII”), seeking certain information from January 1, 2004 to a specified date in the first fiscal quarter of 2009. In August 2009, the EEOC moved to enforce the subpoenas in federal court in Maryland, and we opposed the motion. In February 2010, the court ruled that the subpoena related to the Equal Pay Act investigation was enforceable company-wide but on a narrower scope of data than the original subpoena sought (the court ruled that the subpoena was applicable to the transportation, logistics, and warehouse functions of our broadline distribution centers only). We cooperated with the EEOC on the production of information. In September 2011, the EEOC notified us that the EEOC was terminating the investigation into alleged violations of the Equal Pay Act. In determinations issued in September 2012 by the EEOC with respect to the charges on which the EEOC had based its company-wide investigation, the EEOC concluded that we engaged in a pattern of denying hiring and promotion to a class of female applicants and employees into certain positions within the transportation, logistics, and warehouse functions within our broadline division in violation of Title VII. In June 2013, the EEOC filed suit in federal court in Baltimore against us. The litigation concerns two issues: (1) whether we unlawfully engaged in an ongoing pattern and practice of failing to hire female applicants into operations positions; and (2) whether we unlawfully failed to promote one of the three individuals who filed charges with the EEOC because of her gender. The EEOC seeks the following relief in the lawsuit: (1) to permanently enjoin us from denying employment to female applicants because of their sex and denying promotions to female employees because of their sex; (2) a court order mandating that we institute and carry out policies, procedures, practices and programs which provide equal employment opportunities for females; (3) back pay with prejudgment interest and compensatory damages for a former female employee and an alleged class of aggrieved female applicants; (4) punitive damages; and (5) costs. The court bifurcated the litigation into two phases. In the first phase, the jury will decide whether we engaged in a gender-based pattern and practice of discrimination and the individual claims of one former employee. If the EEOC prevails on all counts in the first phase, no monetary relief would be awarded, except possibly for the single individual’s claims, which would be immaterial. The remaining individual claims would then be tried in the second phase. At this stage in the proceedings, the Company cannot estimate either the number of individual trials that could occur in the second phase of the litigation or the value of those claims. For these reasons, we are unable to estimate any potential loss or range of loss in the event of an adverse finding in the first and second phases of the litigation. In May 2018, the EEOC filed motions for sanctions against us alleging that we failed to preserve certain paper employment applications and e-mails during 2004 – 2009. In the sanctions motions, the EEOC seeks a range of remedies, including but not limited to, a default judgment against us, or alternatively, an order barring us from filing for summary judgment on the EEOC’s pattern and practice claims. We opposed the motions and will continue to vigorously defend ourselves. Tax Liabilities The Company is subject to customary audits by authorities in the jurisdictions where it conducts business in the United States, which may result in assessments of additional taxes. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Mar. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 1 1 . Related-Party Transactions The Company participates in and has an equity method investment in a purchasing alliance that was formed to obtain better pricing, to expand product options, to reduce internal costs, and to achieve greater inventory turnover. The Company’s investment in the purchasing alliance was $4.4 million as of March 30, 2019 and $4.3 million as of June 30, 2018. For the three-month periods ended March 30, 2019 and March 31, 2018, the Company recorded purchases of $224.8 million and $202.7 million, respectively, through the purchasing alliance. During the nine-month periods ended March 30, 2019 and March 31, 2018, the Company recorded purchases of $657.9 million and $593.0 million, respectively, through the purchasing alliance. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 2 . Earnings Per Share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is calculated using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. In computing diluted EPS, the average closing stock price for the period is used in determining the number of shares assumed to be purchased with the proceeds from the exercise of stock options under the treasury stock method. Potential common shares of 0.2 million and 0.5 million for the three and nine months ended March 30, 2019, respectively, and 0.7 million and 0.7 million for the three and nine months ended March 31, 2018, respectively, were not included in computing diluted earnings per share because the effect would have been antidilutive. A reconciliation of the numerators and denominators for the basic and diluted EPS computations is as follows: (In millions, except per share amounts) Three months ended March 30, 2019 Three months ended March 31, 2018 Nine months ended March 30, 2019 Nine months ended March 31, 2018 Numerator: Net Income $ 32.3 $ 33.7 $ 103.6 $ 134.3 Denominator: Weighted-average common shares outstanding 103.8 102.7 103.8 101.7 Dilutive effect of share-based awards 1.3 1.8 1.3 2.8 Weighted-average dilutive shares outstanding 105.1 104.5 105.1 104.5 Basic earnings per share $ 0.31 $ 0.33 $ 1.00 $ 1.32 Diluted earnings per share $ 0.31 $ 0.32 $ 0.99 $ 1.29 |
Segment Information
Segment Information | 9 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information In the first quarter of fiscal 2019, the Company changed its operating segments to reflect the manner in which the chief operating decision maker (“CODM”) manages the business. Based on changes to the Company’s organization structure and how the Company’s CODM reviews operating results and makes decisions about resource allocation, the Company now has two reportable segments: Foodservice and Vistar. Additionally, consistent with how the Company’s CODM assesses performance of the segments, certain administrative costs and corporate allocations, previously reported at the segment level, are now included within Corporate & All Other, as opposed to the Foodservice segment. The Foodservice segment markets and distributes food and food-related products to independent restaurants, chain restaurants, and other institutional “food-away-from-home” locations. Foodservice offers a “broad line” of products, including custom-cut meat and seafood, as well as products that are specific to our customer’s menu requirements. The Vistar segment distributes candy, snack, beverage, and other products to customers in the vending, office coffee services, theater, retail and other channels. Intersegment sales represent sales between the segments, which are eliminated in consolidation. Management evaluates the performance of each operating segment based on various operating and financial metrics, including total sales and EBITDA. Corporate & All Other is comprised of corporate overhead and certain operations that are not considered separate reportable segments based on their size. This includes the operations of the Company’s internal logistics unit responsible for managing and allocating inbound logistics revenue and expense. The presentation and amounts for the three and nine months ended March 31, 2018 and as of June 30, 2018 have been adjusted to reflect the segment changes described above. (In millions) Foodservice Vistar Corporate & All Other Eliminations Consolidated For the three months ended March 30, 2019 Net external sales $ 3,792.8 $ 891.5 $ 4.7 $ — $ 4,689.0 Inter-segment sales 2.4 0.6 66.9 (69.9 ) — Total sales 3,795.2 892.1 71.6 (69.9 ) 4,689.0 Depreciation and amortization 24.2 9.5 6.0 — 39.7 Capital expenditures 24.5 2.8 5.7 — 33.0 For the three months ended March 31, 2018 Net external sales $ 3,526.8 $ 819.5 $ 2.9 $ — $ 4,349.2 Inter-segment sales 2.6 0.7 59.6 (62.9 ) — Total sales 3,529.4 820.2 62.5 (62.9 ) 4,349.2 Depreciation and amortization 19.7 6.6 5.8 — 32.1 Capital expenditures 25.1 5.9 3.7 — 34.7 (In millions) Foodservice Vistar Corporate & All Other Eliminations Consolidated For the nine months ended March 30, 2019 Net external sales $ 11,105.4 $ 2,724.6 $ 14.4 $ — $ 13,844.4 Inter-segment sales 7.7 2.0 196.3 (206.0 ) — Total sales 11,113.1 2,726.6 210.7 (206.0 ) 13,844.4 Depreciation and amortization 66.8 27.7 17.8 — 112.3 Capital expenditures 67.2 9.5 16.4 — 93.1 For the nine months ended March 31, 2018 Net external sales $ 10,558.8 $ 2,454.0 $ 12.4 $ — $ 13,025.2 Inter-segment sales 6.9 1.9 173.9 (182.7 ) — Total sales 10,565.7 2,455.9 186.3 (182.7 ) 13,025.2 Depreciation and amortization 58.0 19.8 18.0 — 95.8 Capital expenditures 50.7 11.5 11.0 — 73.2 EBITDA for each reportable segment and Corporate & All Other is presented below along with a reconciliation to consolidated income before taxes. Three Months Ended Nine Months Ended March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Foodservice EBITDA $ 99.4 $ 93.4 $ 295.7 $ 292.7 Vistar EBITDA 37.0 32.5 114.0 92.3 Corporate & All Other EBITDA (36.5 ) (33.8 ) (114.1 ) (129.2 ) Depreciation and amortization (39.7 ) (32.1 ) (112.3 ) (95.8 ) Interest expense (16.5 ) (15.2 ) (48.1 ) (44.9 ) Income before taxes $ 43.7 $ 44.8 $ 135.2 $ 115.1 Total assets by reportable segment, excluding intercompany receivables between segments, are as follows: (In millions) As of March 30, 2019 As of June 30, 2018 Foodservice $ 3,166.5 $ 2,996.3 Vistar 831.3 739.0 Corporate & All Other 225.0 265.6 Total assets $ 4,222.8 $ 4,000.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates (Policies) | 9 Months Ended |
Mar. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Leases (Topic 842): Targeted Improvements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . , Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. |
Revenue Recognition | 4. Revenue Recognition The Company markets and distributes national and company-branded food and food-related products to customer locations across the United States. The Foodservice segment supplies a “broad line” of products to its customers, including the Company’s performance brands and custom-cut meats and seafood, as well as products that are specific to each customer’s menu requirements. Vistar distributes candy, snacks and beverages to various customer channels. The Company disaggregates revenue by product offerings and determined that disaggregating revenue at the segment level achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 13. Segment Information for external revenue by reportable segment. The Company assesses the products and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a product or service (or a bundle of products or services) that is distinct. The Company determined that fulfilling and delivering customer orders constitutes a single performance obligation. Revenue is recognized at the point in time when the Company has satisfied its performance obligation and the customer has obtained control of the products. The Company determined that the customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the time the products are delivered to the customer’s requested destination. The Company considers control to have transferred upon delivery because the Company has a present right to payment at this time, the customer has legal title to the products, the Company has transferred physical possession of the assets, and the customer has significant risks and rewards of ownership of the products. The transaction price recognized is the invoiced price, adjusted for any incentives, such as rebates and discounts granted to the customer. The Company estimates expected returns based on an analysis of historical experience. We adjust our estimate of revenue at the earlier of when the amount of consideration we expect to receive changes or when the consideration becomes fixed. The Company has made a policy election to exclude sales tax from the transaction price. The Company does not have any material significant payment terms as payment is received shortly after the point of sale. The Company has customer contracts in which incentives are paid upfront to certain customers. These payments have become industry practice and are not related to financing the customer’s business, nor are they associated with any distinct good or service to be received from the customer. These incentive payments are capitalized and amortized over the life of the contract or the expected life of the customer relationship on a straight-line basis. The Company’s contract asset for these incentives totaled $9.9 million and $6.9 million as of March 30, 2019 and June 30, 2018, respectively. The Company recognizes substantially all of its revenue on a gross basis as a principal. When assessing whether the Company is acting as a principal or an agent, the Company considered the indicators that an entity controls the specified good or service before it is transferred to the customer detailed in ASC 606-10-55-39. The Company believes it earns substantially all revenue as a principal from the sale of products because the Company is responsible for the fulfillment and acceptability of products purchased. Additionally, the Company holds the general inventory risk for the products, as it takes title to the products before the products are ordered by customers and maintains products in inventory. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Preliminary Purchase Price Allocation of Major Class of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary purchase price allocation for each major class of assets acquired and liabilities assumed for the fiscal 2019 acquisitions. (In millions) Fiscal 2019 Net working capital $ 11.9 Goodwill 7.2 Other intangible assets 37.1 Property, plant and equipment 1.9 Total purchase price $ 58.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Schedule of Debt | Debt consisted of the following: (In millions) As of March 30, 2019 As of June 30, 2018 ABL Facility $ 698.4 $ 780.1 5.500% Notes due 2024 350.0 350.0 Less: Original issue discount and deferred financing costs (6.3 ) (7.1 ) Long-term debt 1,042.1 1,123.0 Capital and finance lease obligations 142.8 61.2 Total debt 1,184.9 1,184.2 Less: current installments (16.9 ) (8.4 ) Total debt, excluding current installments $ 1,168.0 $ 1,175.8 |
ABL Facility [Member] | |
Summary of Outstanding Borrowings, Availability, and Average Interest Rate | The following table summarizes outstanding borrowings, availability, and the end of period average interest rate under the ABL Facility: (Dollars in millions) As of March 30, 2019 As of June 30, 2018 Aggregate borrowings $ 698.4 $ 780.1 Letters of credit under ABL Facility 83.5 121.3 Excess availability, net of lenders’ reserves of $12.7 and $12.1 1,031.5 854.2 Average interest rate 4.06 % 3.52 % |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Interest Rate Swap Agreement | The following table summarizes the outstanding interest rate swap agreement as of March 30, 2019 (in millions): Effective Date Maturity Date Notional Amount Fixed Rate Swapped June 30, 2017 June 30, 2019 50.0 1.13 % June 30, 2017 June 30, 2020 50.0 1.23 % June 30, 2017 June 30, 2020 50.0 1.25 % June 30, 2017 June 30, 2020 50.0 1.26 % August 9, 2018 August 9, 2021 75.0 1.21 % August 9, 2018 August 9, 2021 75.0 1.20 % June 30, 2020 December 31, 2021 100.0 2.16 % August 9, 2021 April 9, 2023 100.0 2.93 % |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The impact to the provision for performance-based stock-based compensation and the impact of the reduction in tax rate under the Act are summarized as follows Nine months ended March 30, 2019 Nine months ended March 31, 2018 (Dollars in millions) Income Tax Expense Effective Tax Rate Income Tax (Benefit) Expense Effective Tax Rate Income tax expense (benefit), reported $ 31.6 23.4 % $ (19.2 ) -16.7 % Reverse effects of: Revaluation of net deferred income tax liability — — (38.5 ) -33.4 % Stock-based compensation - performance vesting — — (15.4 ) -13.4 % Income tax expense, excluding benefits $ 31.6 23.4 % $ 34.7 30.1 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerators and Denominators for Basic and Diluted Earnings Per Share Computations | A reconciliation of the numerators and denominators for the basic and diluted EPS computations is as follows: (In millions, except per share amounts) Three months ended March 30, 2019 Three months ended March 31, 2018 Nine months ended March 30, 2019 Nine months ended March 31, 2018 Numerator: Net Income $ 32.3 $ 33.7 $ 103.6 $ 134.3 Denominator: Weighted-average common shares outstanding 103.8 102.7 103.8 101.7 Dilutive effect of share-based awards 1.3 1.8 1.3 2.8 Weighted-average dilutive shares outstanding 105.1 104.5 105.1 104.5 Basic earnings per share $ 0.31 $ 0.33 $ 1.00 $ 1.32 Diluted earnings per share $ 0.31 $ 0.32 $ 0.99 $ 1.29 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The presentation and amounts for the three and nine months ended March 31, 2018 and as of June 30, 2018 have been adjusted to reflect the segment changes described above. (In millions) Foodservice Vistar Corporate & All Other Eliminations Consolidated For the three months ended March 30, 2019 Net external sales $ 3,792.8 $ 891.5 $ 4.7 $ — $ 4,689.0 Inter-segment sales 2.4 0.6 66.9 (69.9 ) — Total sales 3,795.2 892.1 71.6 (69.9 ) 4,689.0 Depreciation and amortization 24.2 9.5 6.0 — 39.7 Capital expenditures 24.5 2.8 5.7 — 33.0 For the three months ended March 31, 2018 Net external sales $ 3,526.8 $ 819.5 $ 2.9 $ — $ 4,349.2 Inter-segment sales 2.6 0.7 59.6 (62.9 ) — Total sales 3,529.4 820.2 62.5 (62.9 ) 4,349.2 Depreciation and amortization 19.7 6.6 5.8 — 32.1 Capital expenditures 25.1 5.9 3.7 — 34.7 (In millions) Foodservice Vistar Corporate & All Other Eliminations Consolidated For the nine months ended March 30, 2019 Net external sales $ 11,105.4 $ 2,724.6 $ 14.4 $ — $ 13,844.4 Inter-segment sales 7.7 2.0 196.3 (206.0 ) — Total sales 11,113.1 2,726.6 210.7 (206.0 ) 13,844.4 Depreciation and amortization 66.8 27.7 17.8 — 112.3 Capital expenditures 67.2 9.5 16.4 — 93.1 For the nine months ended March 31, 2018 Net external sales $ 10,558.8 $ 2,454.0 $ 12.4 $ — $ 13,025.2 Inter-segment sales 6.9 1.9 173.9 (182.7 ) — Total sales 10,565.7 2,455.9 186.3 (182.7 ) 13,025.2 Depreciation and amortization 58.0 19.8 18.0 — 95.8 Capital expenditures 50.7 11.5 11.0 — 73.2 |
Schedule of EBDITA and Reconciliation to Consolidated Income Before Taxes | EBITDA for each reportable segment and Corporate & All Other is presented below along with a reconciliation to consolidated income before taxes. Three Months Ended Nine Months Ended March 30, 2019 March 31, 2018 March 30, 2019 March 31, 2018 Foodservice EBITDA $ 99.4 $ 93.4 $ 295.7 $ 292.7 Vistar EBITDA 37.0 32.5 114.0 92.3 Corporate & All Other EBITDA (36.5 ) (33.8 ) (114.1 ) (129.2 ) Depreciation and amortization (39.7 ) (32.1 ) (112.3 ) (95.8 ) Interest expense (16.5 ) (15.2 ) (48.1 ) (44.9 ) Income before taxes $ 43.7 $ 44.8 $ 135.2 $ 115.1 Total assets by reportable segment, excluding intercompany receivables between segments, are as follows: (In millions) As of March 30, 2019 As of June 30, 2018 Foodservice $ 3,166.5 $ 2,996.3 Vistar 831.3 739.0 Corporate & All Other 225.0 265.6 Total assets $ 4,222.8 $ 4,000.9 |
Summary of Business Activities
Summary of Business Activities - Additional Information (Detail) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 30, 2019 | Mar. 30, 2019 | Nov. 13, 2018 | |
Business Description [Line Items] | |||
Repurchased and retired shares, value | $ 4,100,000 | $ 9,300,000 | |
Common Stock [Member] | |||
Business Description [Line Items] | |||
Number of shares repurchased and retired | 0.1 | 0.3 | |
Repurchased and retired shares, value | $ 4,100,000 | $ 9,300,000 | |
Share repurchase plan, remaining available amount | $ 240,700,000 | $ 240,700,000 | |
Common Stock [Member] | Maximum [Member] | |||
Business Description [Line Items] | |||
Share repurchase program, authorized amount | $ 250,000,000 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 9.9 | $ 6.9 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | May 08, 2019USD ($)Business-Combination | Mar. 30, 2019USD ($)Business-Combination | Mar. 31, 2018USD ($)Business-Combination |
Business Acquisition [Line Items] | |||
Payment for acquisition | $ 57.7 | $ 70.9 | |
Number of acquisitions | Business-Combination | 3 | 2 | |
Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Number of acquisitions | Business-Combination | 1 | ||
Business Acquisition Cost [Member] | |||
Business Acquisition [Line Items] | |||
Payment for acquisition | $ 58.1 | $ 72.6 | |
Business Acquisition Cost [Member] | Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Payment for acquisition | $ 150.6 |
Business Combinations - Summary
Business Combinations - Summary of Preliminary Purchase Price Allocation of Major Class of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 747.5 | $ 740.5 |
2019 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Net working capital | 11.9 | |
Goodwill | 7.2 | |
Other intangible assets | 37.1 | |
Property, plant and equipment | 1.9 | |
Total purchase price | $ 58.1 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Less: Original issue discount and deferred financing costs | $ (6.3) | $ (7.1) |
Long-term debt | 1,042.1 | 1,123 |
Capital and finance lease obligations | 142.8 | 61.2 |
Total debt | 1,184.9 | 1,184.2 |
Less: current installments | (16.9) | (8.4) |
Total debt, excluding current installments | 1,168 | 1,175.8 |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 698.4 | 780.1 |
5.500% Senior Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 350 | $ 350 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Aug. 09, 2018 | May 17, 2016 | Mar. 30, 2019 | Jun. 30, 2018 |
Letters of Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of credit, maximum borrowing capacity | $ 40 | |||
Percentage fee on average daily amount available to be drawn on each day under each outstanding letter of credit | 2.50% | |||
Letter of credits, outstanding amount | $ 30.7 | |||
Maximum [Member] | Letters of Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 1 year | |||
ABL Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instruments face amount | $ 1,950 | |||
Credit facility, maturity period | 2021-02 | |||
Debt instrument description of variable rate | (a) the Base Rate (defined as the greater of (i) the Federal Funds Rate in effect on such date plus 0.5%, (ii) the Prime Rate on such day, or (iii) one month LIBOR plus 1.0%) plus a spread or (b) LIBOR plus a spread. | |||
Letter of credits, outstanding amount | $ 83.5 | $ 121.3 | ||
ABL Facility [Member] | Federal Funds Effective Swap Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
ABL Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
ABL Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, commitment fee percentage | 0.25% | |||
ABL Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, commitment fee percentage | 0.375% | |||
5.500% Senior Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instruments face amount | $ 350 | |||
Debt instruments amount, interest rate | 5.50% | |||
Debt instruments maturity year | 2024 |
Debt - Summary of Outstanding B
Debt - Summary of Outstanding Borrowings, Availability, and Average Interest Rate under ABL Facility (Detail) - ABL Facility [Member] - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Aggregate borrowings | $ 698.4 | $ 780.1 |
Letters of credit under ABL Facility | 83.5 | 121.3 |
Excess availability, net of lenders’ reserves of $12.7 and $12.1 | $ 1,031.5 | $ 854.2 |
Average interest rate | 4.06% | 3.52% |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Borrowings, Availability, and Average Interest Rate under ABL Facility (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Debt amount reserve by lender | $ 12.7 | $ 12.1 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Additional Information (Detail) | 9 Months Ended | |
Dec. 31, 2019gal | Mar. 30, 2019USD ($)Interest_Rates_SwapsAgreementgal | |
Derivative [Line Items] | ||
Number of arrangements | Agreement | 5 | |
Non-monetary notional amount volume | 7,500,000 | |
Scenario Forecast [Member] | ||
Derivative [Line Items] | ||
Non-monetary notional amount volume | 5,300,000 | |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Number of interest rate swaps | Interest_Rates_Swaps | 8 | |
Notional Amount | $ | $ 550,000,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Outstanding Interest Rate Swap Agreement (Detail) | 9 Months Ended |
Mar. 30, 2019USD ($) | |
Interest Rate Swap Agreement One [Member] | |
Derivative [Line Items] | |
Effective Date | Jun. 30, 2017 |
Maturity Date | Jun. 30, 2019 |
Notional Amount | $ 50,000,000 |
Fixed Rate Swapped | 1.13% |
Interest Rate Swap Agreement Two [Member] | |
Derivative [Line Items] | |
Effective Date | Jun. 30, 2017 |
Maturity Date | Jun. 30, 2020 |
Notional Amount | $ 50,000,000 |
Fixed Rate Swapped | 1.23% |
Interest Rate Swap Agreement Three [Member] | |
Derivative [Line Items] | |
Effective Date | Jun. 30, 2017 |
Maturity Date | Jun. 30, 2020 |
Notional Amount | $ 50,000,000 |
Fixed Rate Swapped | 1.25% |
Interest Rate Swap Agreement Four [Member] | |
Derivative [Line Items] | |
Effective Date | Jun. 30, 2017 |
Maturity Date | Jun. 30, 2020 |
Notional Amount | $ 50,000,000 |
Fixed Rate Swapped | 1.26% |
Interest Rate Swap Agreement Five [Member] | |
Derivative [Line Items] | |
Effective Date | Aug. 9, 2018 |
Maturity Date | Aug. 9, 2021 |
Notional Amount | $ 75,000,000 |
Fixed Rate Swapped | 1.21% |
Interest Rate Swap Agreement Six [Member] | |
Derivative [Line Items] | |
Effective Date | Aug. 9, 2018 |
Maturity Date | Aug. 9, 2021 |
Notional Amount | $ 75,000,000 |
Fixed Rate Swapped | 1.20% |
Interest Rate Swap Agreement Seven [Member] | |
Derivative [Line Items] | |
Effective Date | Jun. 30, 2020 |
Maturity Date | Dec. 31, 2021 |
Notional Amount | $ 100,000,000 |
Fixed Rate Swapped | 2.16% |
Interest Rate Swap Agreement Eight [Member] | |
Derivative [Line Items] | |
Effective Date | Aug. 9, 2021 |
Maturity Date | Apr. 9, 2023 |
Notional Amount | $ 100,000,000 |
Fixed Rate Swapped | 2.93% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Long-term debt | $ 1,042.1 | $ 1,123 |
Reported Value Measurement [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Long-term debt | 1,042.1 | 1,123 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value of long term debt | $ 1,051.9 | $ 1,126.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | Dec. 30, 2017 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
U.S. federal corporate income tax rate | 21.00% | 28.00% | 21.00% | 28.00% | 35.00% | |
Effective income tax rate | 26.10% | 24.80% | 23.40% | (16.70%) | ||
Net deferred tax assets | $ 29.2 | $ 29.2 | $ 29.2 | |||
Net deferred tax liabilities | 136.3 | 136.3 | 135.5 | |||
Deferred Tax Assets, Valuation Allowance | 0.4 | 0.4 | 0.4 | |||
Unrecognized tax benefits | $ 1.1 | 1.1 | $ 1.2 | |||
Decrease in unrecognized tax benefits | $ 0.6 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit), reported | $ 11.4 | $ 11.1 | $ 31.6 | $ (19.2) |
Revaluation of net deferred income tax liability | (38.5) | |||
Stock-based compensation - performance vesting | (15.4) | |||
Income tax expense, excluding benefits | $ 31.6 | $ 34.7 | ||
Income tax expense (benefit), reported | 26.10% | 24.80% | 23.40% | (16.70%) |
Revaluation of net deferred income tax liability | (33.40%) | |||
Stock-based compensation - performance vesting | (13.40%) | |||
Income tax expense, excluding benefits | 23.40% | 30.10% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Mar. 30, 2019USD ($) | |
Commitments And Contingencies [Line Items] | |
Outstanding contracts and purchase orders for capital projects and services | $ 27,100,000 |
Undiscounted maximum amount for guarantees | $ 25,500,000 |
Guarantees [Member] | |
Commitments And Contingencies [Line Items] | |
Operating lease expiration dates | 2019 |
Undiscounted maximum amount for guarantees | $ 8,900,000 |
Minimum [Member] | |
Commitments And Contingencies [Line Items] | |
Operating lease agreements range | 7.00% |
Operating lease expiration term | 5 years |
Operating lease expiration dates | 2019 |
Maximum [Member] | |
Commitments And Contingencies [Line Items] | |
Operating lease agreements range | 20.00% |
Operating lease expiration term | 8 years |
Operating lease expiration dates | 2025 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - Purchasing Alliance [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||||
Equity method investments | $ 4.4 | $ 4.4 | $ 4.3 | ||
Purchases from related party | $ 224.8 | $ 202.7 | $ 657.9 | $ 593 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Potential common shares not included in computing diluted earnings per share due to antidilutive effect | 0.2 | 0.7 | 0.5 | 0.7 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Numerators and Denominators for Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Numerator: | ||||
Net income | $ 32.3 | $ 33.7 | $ 103.6 | $ 134.3 |
Denominator: | ||||
Weighted-average common shares outstanding | 103.8 | 102.7 | 103.8 | 101.7 |
Dilutive effect of share-based awards | 1.3 | 1.8 | 1.3 | 2.8 |
Weighted-average dilutive shares outstanding | 105.1 | 104.5 | 105.1 | 104.5 |
Basic earnings per share | $ 0.31 | $ 0.33 | $ 1 | $ 1.32 |
Diluted earnings per share | $ 0.31 | $ 0.32 | $ 0.99 | $ 1.29 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Mar. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,689 | $ 4,349.2 | $ 13,844.4 | $ 13,025.2 |
Depreciation and amortization | 39.7 | 32.1 | 112.3 | 95.8 |
Capital expenditures | 33 | 34.7 | 93.1 | 73.2 |
Foodservice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,792.8 | 3,526.8 | 11,105.4 | 10,558.8 |
Depreciation and amortization | 24.2 | 19.7 | 66.8 | 58 |
Capital expenditures | 24.5 | 25.1 | 67.2 | 50.7 |
Vistar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 891.5 | 819.5 | 2,724.6 | 2,454 |
Depreciation and amortization | 9.5 | 6.6 | 27.7 | 19.8 |
Capital expenditures | 2.8 | 5.9 | 9.5 | 11.5 |
Corporate & All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4.7 | 2.9 | 14.4 | 12.4 |
Depreciation and amortization | 6 | 5.8 | 17.8 | 18 |
Capital expenditures | 5.7 | 3.7 | 16.4 | 11 |
Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (69.9) | (62.9) | (206) | (182.7) |
Eliminations [Member] | Foodservice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2.4 | 2.6 | 7.7 | 6.9 |
Eliminations [Member] | Vistar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0.6 | 0.7 | 2 | 1.9 |
Eliminations [Member] | Corporate & All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 66.9 | 59.6 | 196.3 | 173.9 |
Operating Segments [Member] | Foodservice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,795.2 | 3,529.4 | 11,113.1 | 10,565.7 |
Operating Segments [Member] | Vistar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 892.1 | 820.2 | 2,726.6 | 2,455.9 |
Operating Segments [Member] | Corporate & All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 71.6 | $ 62.5 | $ 210.7 | $ 186.3 |
Segment Information - Schedul_2
Segment Information - Schedule of EBDITA and Reconciliation to Consolidated Income Before Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | $ (39.7) | $ (32.1) | $ (112.3) | $ (95.8) |
Interest expense | (16.5) | (15.2) | (48.1) | (44.9) |
Income before taxes | 43.7 | 44.8 | 135.2 | 115.1 |
Foodservice [Member] | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | 99.4 | 93.4 | 295.7 | 292.7 |
Depreciation and amortization | (24.2) | (19.7) | (66.8) | (58) |
Vistar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | 37 | 32.5 | 114 | 92.3 |
Depreciation and amortization | (9.5) | (6.6) | (27.7) | (19.8) |
Corporate & All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
EBITDA | (36.5) | (33.8) | (114.1) | (129.2) |
Depreciation and amortization | $ (6) | $ (5.8) | $ (17.8) | $ (18) |
Segment Information - Summary A
Segment Information - Summary Assets by Reportable Segment, Excluding Intercompany Receivables (Detail) - USD ($) $ in Millions | Mar. 30, 2019 | Jun. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 4,222.8 | $ 4,000.9 |
Foodservice [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,166.5 | 2,996.3 |
Vistar [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 831.3 | 739 |
Corporate & All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 225 | $ 265.6 |