Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 28, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 28, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Performance Food Group Company | |
Entity Central Index Key | 0001618673 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --06-27 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 105,491,266 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Trading Symbol | PFGC | |
Entity File Number | 001-37578 | |
Entity Tax Identification Number | 43-1983182 | |
Entity Address, Address Line One | 12500 West Creek Parkway | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23238 | |
City Area Code | 804 | |
Local Phone Number | 484-7700 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Current assets: | ||
Cash | $ 16 | $ 14.7 |
Accounts receivable, less allowances of $27.4 and $22.0 | 1,226.9 | 1,227.3 |
Inventories, net | 1,411.2 | 1,356.9 |
Restricted cash | 1,060.4 | |
Prepaid expenses and other current assets | 55.2 | 71.7 |
Total current assets | 3,769.7 | 2,670.6 |
Goodwill | 765.8 | 765.8 |
Other intangible assets, net | 179.6 | 194.3 |
Property, plant and equipment, net | 966.9 | 950.5 |
Operating lease right-of-use assets | 409.4 | |
Restricted cash | 11 | 10.7 |
Other assets | 60.6 | 61.6 |
Total assets | 6,163 | 4,653.5 |
Current liabilities: | ||
Outstanding checks in excess of deposits | 187.9 | 206.9 |
Trade accounts payable | 1,188.7 | 1,130.8 |
Accrued expenses and other current liabilities | 344.1 | 343.3 |
Finance lease obligations—current installments | 21.5 | 18.3 |
Operating lease obligations—current installments | 80.8 | |
Total current liabilities | 1,823 | 1,699.3 |
Long-term debt | 2,212.1 | 1,202.9 |
Deferred income tax liability, net | 102 | 108 |
Finance lease obligations, excluding current installments | 147.9 | 128.9 |
Operating lease obligations, excluding current installments | 330.1 | |
Other long-term liabilities | 214.8 | 216.2 |
Total liabilities | 4,829.9 | 3,355.3 |
Commitments and contingencies (Note 10) | ||
Shareholders’ equity: | ||
Common Stock: $0.01 par value per share, 1.0 billion shares authorized, 104.2 million shares issued and outstanding as of September 28, 2019; 1.0 billion shares authorized, 103.8 million shares issued and outstanding as of June 29, 2019 | 1 | 1 |
Additional paid-in capital | 866.6 | 866.7 |
Accumulated other comprehensive loss, net of tax benefit of $0.5 and $0.1 | (1.3) | (0.2) |
Retained earnings | 466.8 | 430.7 |
Total shareholders’ equity | 1,333.1 | 1,298.2 |
Total liabilities and shareholders’ equity | $ 6,163 | $ 4,653.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 27.4 | $ 22 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 104,200,000 | 103,800,000 |
Common stock, shares outstanding | 104,200,000 | 103,800,000 |
Accumulated other comprehensive loss, tax benefit | $ 0.5 | $ 0.1 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 6,243 | $ 4,539.7 |
Cost of goods sold | 5,531.6 | 3,946.1 |
Gross profit | 711.4 | 593.6 |
Operating expenses | 647.9 | 543 |
Operating profit | 63.5 | 50.6 |
Other expense, net: | ||
Interest expense | 17.3 | 15.6 |
Other, net | (0.2) | |
Other expense, net | 17.3 | 15.4 |
Income before taxes | 46.2 | 35.2 |
Income tax expense | 10.1 | 7 |
Net income | $ 36.1 | $ 28.2 |
Weighted-average common shares outstanding: | ||
Basic | 104 | 103.5 |
Diluted | 105.6 | 105.1 |
Earnings per common share: | ||
Basic | $ 0.35 | $ 0.27 |
Diluted | $ 0.34 | $ 0.27 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 36.1 | $ 28.2 |
Interest rate swaps: | ||
Change in fair value, net of tax | (0.5) | 0.8 |
Reclassification adjustment, net of tax | (0.6) | (0.5) |
Other comprehensive (loss) income | (1.1) | 0.3 |
Total comprehensive income | $ 35 | $ 28.5 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | |
Balance Beginning at Jun. 30, 2018 | $ 1,135.3 | $ 1 | $ 861.2 | $ 8.3 | $ 264.8 | |
Balance Beginning, shares at Jun. 30, 2018 | 103,200,000 | |||||
Issuance of common stock under stock-based compensation plans | (2.3) | (2.3) | ||||
Issuance of common stock under stock-based compensation plans, shares | 400,000 | |||||
Net income | 28.2 | 28.2 | ||||
Interest rate swaps | 0.3 | 0.3 | ||||
Stock-based compensation expense | 3.8 | 3.8 | ||||
Change in accounting principle | [1] | 0.9 | (0.9) | |||
Balance Ending at Sep. 29, 2018 | 1,165.3 | $ 1 | 862.7 | 9.5 | 292.1 | |
Balance Ending, shares at Sep. 29, 2018 | 103,600,000 | |||||
Balance Beginning at Jun. 29, 2019 | $ 1,298.2 | $ 1 | 866.7 | (0.2) | 430.7 | |
Balance Beginning, shares at Jun. 29, 2019 | 103,800,000 | 103,800,000 | ||||
Issuance of common stock under stock-based compensation plans | $ (4.5) | (4.5) | ||||
Issuance of common stock under stock-based compensation plans, shares | 400,000 | |||||
Net income | 36.1 | 36.1 | ||||
Interest rate swaps | (1.1) | (1.1) | ||||
Stock-based compensation expense | 4.4 | 4.4 | ||||
Balance Ending at Sep. 28, 2019 | $ 1,333.1 | $ 1 | $ 866.6 | $ (1.3) | $ 466.8 | |
Balance Ending, shares at Sep. 28, 2019 | 104,200,000 | 104,200,000 | ||||
[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 . |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 36.1 | $ 28.2 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 33.9 | 26.9 |
Amortization of intangible assets | 8.8 | 8.6 |
Amortization of deferred financing costs and other | 4.5 | 1.2 |
Provision for losses on accounts receivables | 4.1 | 3.5 |
Stock compensation expense | 4.4 | 3.8 |
Deferred income tax benefit | (5.6) | (2.9) |
Other | (0.1) | (0.5) |
Changes in operating assets and liabilities, net | ||
Accounts receivable | (3.7) | 1.7 |
Inventories | (54.3) | (54) |
Prepaid expenses and other assets | 12.9 | 7.5 |
Trade accounts payable | 57.4 | 66.4 |
Outstanding checks in excess of deposits | (19) | (76.4) |
Accrued expenses and other liabilities | 4.8 | 18.3 |
Net cash provided by operating activities | 84.2 | 32.3 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (22.8) | (25) |
Net cash paid for acquisitions | (31.5) | |
Proceeds from sale of property, plant and equipment | 0.3 | 0.2 |
Net cash used in investing activities | (22.5) | (56.3) |
Cash flows from financing activities: | ||
Net (payments) borrowings under ABL Facility | (49) | 36.5 |
Payments on financed property, plant and equipment | (0.4) | (3.4) |
Borrowing on Notes due 2027 | 1,060 | |
Cash paid for acquisitions | (0.5) | (3.1) |
Payments under finance lease obligations | (4.6) | (2.4) |
Proceeds from exercise of stock options | 1.4 | 2.6 |
Cash paid for shares withheld to cover taxes | (5.9) | (4.9) |
Cash paid for debt issuance, extinguishment and modifications | (0.7) | |
Net cash provided by financing activities | 1,000.3 | 25.3 |
Net increase in cash and restricted cash | 1,062 | 1.3 |
Cash and restricted cash, beginning of period | 25.4 | 17.8 |
Cash and restricted cash, end of period | 1,087.4 | 19.1 |
Debt assumed through finance lease obligations | 26.8 | 15 |
Purchases of property, plant and equipment, financed | 0.9 | 2.2 |
Interest | 11.9 | 10.6 |
Income taxes, net of refunds | $ 2.5 | $ 0.2 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Reconciliation) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash | $ 16 | $ 14.7 | |
Restricted cash | [1] | 1,071.4 | 10.7 |
Total cash and restricted cash | $ 1,087.4 | $ 25.4 | |
[1] | Restricted cash is included in current restricted cash and long-term restricted cash on the Consolidated Balance Sheet. The current restricted cash includes the proceeds from the issuance of senior notes that are held in escrow and will be used to fund the Reinhart Transaction, as well as funds that will be used for the interest payments on those senior notes. The long-term 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 | 3 Months Ended |
Sep. 28, 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 primarily 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 some of the most recognizable family and casual dining restaurant chains, as well as schools, business and industry locations, healthcare facilities, and business and industry locations. The Company also specializes in distributing candy, snacks, beverages, cigarettes, other tobacco products and other items nationally to vending distributors, big box retailers, theaters, convenience stores, and hospitality providers. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 28, 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 29, 2019 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, leases, 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 | 3 Months Ended |
Sep. 28, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 3. Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) The Company’s June 30, 2019 adoption of the new standard resulted in the recognition of operating lease liabilities totaling $423.8 million, based upon the present value of the remaining minimum rental payments using discount rates as of the adoption date, with $82.1 million within Operating lease liabilities - current and $341.7 million within Operating lease liabilities, excluding current installments. In addition, we recorded corresponding Operating lease right-of-use assets totaling $423.0 million based upon the operating lease liabilities adjusted for deferred rent of $11.0 million, favorable lease intangible assets of $5.3 million and prepaid rent and other adjustments of $4.9 million. The new standard did not have a material impact on the Consolidated Statements of Operations and Cash Flows. See Note 7. Leases for further discussion of the Company’s leasing arrangements and required ASC 842 disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . In August 2018, the FASB issued 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 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Sep. 28, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition The Company markets and distributes primarily 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, beverages, cigarettes, other tobacco products and other products 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 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 $12.0 million and $10.6 million as of September 28, 2019 and June 29, 2019, respectively. |
Business Combinations
Business Combinations | 3 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 5 . Business Combinations During first quarter of fiscal 2019, the Company paid cash of $31.5 million for an acquisition. This acquisition did not materially affect the Company’s results of operations. The acquisition of Eby-Brown Company LLC (“Eby-Brown”) in the fourth quarter of fiscal 2019 included contingent consideration, including earnout payments in the event certain operating results are achieved during a defined post-closing period. Total contingent consideration outstanding was $86.4 million as of September 28, 2019 and $82.6 million as of June 29, 2019. Earnout liabilities are measured using unobservable inputs that are considered a Level 3 measurement. On July 1, 2019, we entered into a Membership Interest Purchase Agreement to acquire Reinhart Foodservice, L.L.C. (“Reinhart”) from Reyes Holdings, L.L.C. in a transaction valued at $2.0 billion, or approximately $1.7 billion net of an estimated tax benefit to PFG of approximately $265 million. The closing of the contemplated transaction is subject to customary conditions, including the receipt of required regulatory approvals. The $2.0 billion purchase price is expected to be financed with borrowing under the ABL Facility (as defined below) , net proceeds from new senior unsecured notes and net proceeds from an offering of shares of the Company’s common stock, subject to market conditions, of $ 300 million to $ 400 million. On September 27, 2019, PFG Escrow Corporation, a wholly-owned subsidiary of PFGC, Inc. to be merged with and into Performance Food Group, Inc., issued $ 1,060.0 million of Notes due 2027 (as defined below) to finance the transaction. See Note 6 . – Debt for further discussion of the newly issued debt. |
Debt
Debt | 3 Months Ended |
Sep. 28, 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 September 28, 2019 As of June 29, 2019 ABL Facility $ 810.0 $ 859.0 5.500% Notes due 2024 350.0 350.0 5.500% Notes due 2027 1,060.0 - Less: Original issue discount and deferred financing costs (7.9 ) (6.1 ) Long-term debt 2,212.1 1,202.9 Less: current installments - - Total debt, excluding current installments $ 2,212.1 $ 1,202.9 ABL Facility PFGC, Inc. (“PFGC”), a wholly-owned subsidiary of the Company, is a party to the Third Amended and Restated Credit Agreement dated May 17, 2019 (the “ABL Facility”). The ABL Facility has an aggregate principal amount of $2.4 billion and matures May 2024. 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, and secured by the majority of the assets of, 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 of 0.25% The following table summarizes outstanding borrowings, availability, and the average interest rate under the ABL Facility: (Dollars in millions) As of September 28, 2019 As of June 29, 2019 Aggregate borrowings $ 810.0 $ 859.0 Letters of credit under credit agreements 94.7 89.9 Excess availability, net of lenders’ reserves of $39.2 and $38.6 1,248.3 1,182.7 Average interest rate 3.42 % 4.01 % Senior Notes due 2027 On September 27, 2019, PFG Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of PFGC to be merged with and into Performance Food Group, Inc., issued and sold $1,060.0 million aggregate principal amount of its 5.500% Senior Notes due 2027 (the “Notes due 2027”). The proceeds from the Notes due 2027 will be used to finance part of the Reinhart Transaction, pending the receipt of required regulatory approvals, and other transaction costs incurred with the Notes due 2027. Prior to the consummation of the Reinhart Transaction, the Notes due 2027 will be general senior secured obligations of the Escrow Issuer only, secured by a lien on the escrowed funds and the related interest. Following the completion of the Reinhart Transaction, Performance Food Group, Inc. will assume the obligation of the Escrow Issuer (the “Assumption”) and the Notes due 2027 will be 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 due 2027 are not guaranteed by Performance Food Group Company. The Notes due 2027 were issued at 100.0% of their par value. The Notes due 2027 mature on October 15, 2027 and bear interest at a rate of 5.500% per year, payable semi-annually in arrears. Upon the occurrence of a change of control triggering event or upon the sale of certain assets in which Performance Food Group, Inc. does not apply the proceeds as required, the holders of the Notes due 2027 will have the right to require Performance Food Group, Inc. to repurchase each holder’s Notes due 2027 at a price equal to 101% (in the case of a change of control triggering event) or 100% (in the case of an asset sale) of their principal amount, plus accrued and unpaid interest. Performance Food Group, Inc. may redeem all or a part of the Notes due 2027 at any time following the Assumption and prior to October 15, 2022 at a redemption price equal to 100 % of the principal amount of the Notes due 2027 being redeemed plus a make-whole premium and accrued and unpaid interest, if any, to, but not including, the redemption date. In addition, beginning on October 15, 2022, Performance Food Group, Inc. may redeem all or a part of the Notes due 2027 at a redemption price equal to 102.750 % of the principal amount redeemed, plus accrued and unpaid interest. The redemption price decreases to % and 100 % of the principal amount redeemed on October 15, 2023 and October 15, 2024, respectively. In addition, at any time following the Assumption and prior to October 15, 2022, Performance Food Group , Inc. may redeem up to 40 % of the Notes due 2027 from the proceeds of certain equity offerings at a redemption price equal to 105.500 % of the principal amount thereof, plus accrued and unpaid interest. The indenture governing the Notes due 2027 contains covenants limiting, among other things, PFGC and its restricted subsidiaries’ ability to incur or guarantee additional debt or issue disqualified stock or preferred stock; pay dividends and make other distributions on, or redeem or repurchase, capital stock; make certain investments; incur certain liens; enter into transactions with affiliates; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; create certain restrictions on the ability of PFGC’s restricted subsidiaries to make dividends or other payments to PFGC; designate restricted subsidiaries as unrestricted subsidiaries; and transfer or sell certain assets. These covenants are subject to a number of important exceptions and qualifications. The Notes due 2027 also contain customary events of default, the occurrence of which could result in the principal of and accrued interest on the Notes due 2027 to become or be declared due and payable. Senior Notes due 2024 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 due 2024”). The Notes due 2024 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 due 2024 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 September 28, 2019, the Company has $28.3 million letters of credit outstanding under the Letters of Credit Facility. |
Leases
Leases | 3 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | 7 . Leases The Company determines if an arrangement is a lease at inception and recognizes a financing or operating lease liability and right-of-use asset in the Company’s Consolidated Balance Sheet. Right-of-use assets and lease liabilities for both operating and finance leases are recognized based on present value of lease payments over the lease term at commencement date. Since the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. This rate was determined by using the yield curve based on the Company’s credit rating adjusted for the Company’s specific debt profile and secured debt risk. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expenses for these short-term leases are recognized on a straight-line basis over the lease term. The Company has several lease agreements that contain lease and non-lease components, such as maintenance, taxes, and insurance, which are accounted for separately. The difference between the operating lease right-of-use assets and operating lease liabilities primarily relates to adjustments for deferred rent, favorable leases, and prepaid rent. Subsidiaries of the Company have entered into numerous operating and finance leases for various warehouses, office facilities, equipment, tractors, and trailers. 1 year 20 years 10 years 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 12% 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 September 28, 2019, the undiscounted maximum amount of potential future payments for lease residual value guarantees totaled approximately $24.6 million, which would be mitigated by the fair value of the leased assets at lease expiration. The following table presents the location of the right-of-use assets and lease liabilities in the Company’s Consolidated Balance Sheet as of September 28, 2019 (in millions) , as well as the weighted-average lease term and discount rate for the Company’s leases: Leases Consolidated Balance Sheet Location As of September 28, 2019 Assets: Operating Operating lease right-of-use assets $ 409.4 Finance Property, plant and equipment, net 159.7 Total lease assets $ 569.1 Liabilities: Current Operating Operating lease obligations—current installments $ 80.8 Finance Finance lease obligations—current installments 21.5 Non-current Operating Operating lease obligations, excluding current installments 330.1 Finance Finance lease obligations, excluding current installments 147.9 Total lease liabilities $ 580.3 Weighted average remaining lease term Operating leases 7.5 years Finance leases 7.2 years Weighted average discount rate Operating leases 5.4 % Finance leases 6.0 % The following table presents the location of lease costs in the Company Consolidated Statement of Operations for the three months ended September 28, 2019 (in millions): Lease Cost Statement of Operations Location Three months ended September 28, 2019 Finance lease cost: Amortization of finance lease assets Operating expenses $ 4.7 Interest on lease liabilities Interest expense 2.2 Total finance lease cost $ 6.9 Operating lease cost Operating expenses 28.1 Short-term lease cost Operating expenses 5.9 Total lease cost $ 40.9 Supplemental cash flow information related to leases for the period reported is as follows (in millions): (In millions) Three months ended September 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 26.8 Operating cash flows from finance leases 2.2 Financing cash flows from finance leases 4.6 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8.7 Finance leases 26.8 Future minimum lease payments under non-cancelable leases as of September 28, 2019 are as follows (in millions): Fiscal Year Operating Leases Finance Leases Remaining 2020 $ 76.9 $ 23.1 2021 89.9 30.4 2022 74.4 29.9 2023 59.2 28.8 2024 42.2 28.0 Thereafter 175.9 72.3 Total future minimum lease payments $ 518.5 $ 212.5 Less: Interest 107.6 43.1 Present value of future minimum lease payments $ 410.9 $ 169.4 Future minimum lease payments in effect as of June 29, 2019 under non-cancelable leases, as determined prior to the adoption of ASC 842, were as follows (in millions): Fiscal Year Operating Leases Finance Leases 2020 $ 104.7 $ 26.7 2021 89.6 26.3 2022 73.8 25.8 2023 58.2 24.7 2024 40.8 23.9 Thereafter 163.8 58.4 Total future minimum lease payments $ 530.9 $ 185.8 Less: Interest 38.6 Present value of future minimum lease payments $ 147.2 As of September 28, 2019, the Company has additional operating leases that have not yet commenced which total $33.9 million in future minimum lease payments. These leases primarily relate to warehouse leases and will commence in fiscal 2020 with lease terms of 3 to 15 years. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Sep. 28, 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 $2,212.1 million and $1,202.9 million, is $2,274.8 million and $1,216.3 million at September 28, 2019 and June 29, 2019, 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 | 3 Months Ended |
Sep. 28, 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. The Company’s effective tax rate was 21.9% for the three months ended September 28, 2019 and 20.0% for the three months ended September 29, 2018. The effective tax rate varied from the 21% statutory rate primarily due to state taxes, federal credits and other permanent items. The excess tax benefit of exercised and vested stock awards is treated as a discrete item. As of September 28, 2019 and June 29, 2019, the Company had net deferred tax assets of $29.1 million and $29.1 million, respectively, and deferred tax liabilities of $131.1 million and $137.1 million, respectively. As of June 29, 2019, the Company had established a valuation allowance of $0.5 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 September 28, 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 | 3 Months Ended |
Sep. 28, 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 $34.9 million at September 28, 2019. Amounts due under these contracts were not included on the Company’s consolidated balance sheet as of September 28, 2019. Guarantees 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 September 28, 2019, the undiscounted maximum amount of potential payments covered by these guarantees totaled $4.9 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 Reinhart Transaction Commitments The Company has several outstanding commitments that will be due upon the closing of the Reinhart Transaction. These commitments, totaling $61.7 million, include $26.0 million related to the Notes due 2027. The remainder of the commitments relate to the remaining expected future financing of the Reinhart Transaction and include $4.9 million for additional borrowings under the ABL Facility and, if issued, $19.8 million for the offering of shares of the Company’s stock, as well as $11.0 million related to advisory fees for the acquisition. 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 the Company 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 the Company 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 the Company’s broadline distribution centers only and not to the Company’s PFG Customized distribution centers). The Company cooperated with the EEOC on the production of information. In September 2011, the EEOC notified the Company 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 the Company 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 the Company’s broadline division in violation of Title VII. In June 2013, the EEOC filed suit in federal court in Baltimore against the Company . The litigation concerns two issues: (1) whether the Company unlawfully engaged in an ongoing pattern and practice of failing to hire female applicants into operations positions; and (2) whether the Company 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 the Company 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 the Company 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 the Company 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, the Company is 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 the Company alleging that we failed to preserve certain paper employment applications and e-mails during 2004 – 2009. In the sanctions motions, the EEOC sought a range of remedies, including but not limited to, a default judgment against the Company, or alternatively, an order barring the Company from filing for summary judgment on the EEOC’s pattern and practice claims. The court denied the EEOC’s motions in June 2019, but reserved ruling on whether the unavailability of certain documents will prejudice the EEOC’s ability to present expert testimony at the trial. The parties are now in the process of filing cross motions for summary judgment. The summary judgment briefing period is expected to conclude in November 2019. The Company will continue to vigorously defend itself. 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 | 3 Months Ended |
Sep. 28, 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 $5.3 million as of September 28, 2019 and $4.6 million as of June 29, 2019. For the three-month periods ended September 28, 2019 and September 29, 2018, the Company recorded purchases of $254.2 million and $226.9 million, respectively, through the purchasing alliance. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 28, 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 0.4 million for the three months ended September 28, 2019 and 0.5 million for the three months ended September 29, 2018 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 September 28, 2019 Three months ended September 29, 2018 Numerator: Net Income $ 36.1 $ 28.2 Denominator: Weighted-average common shares outstanding 104.0 103.5 Dilutive effect of share-based awards 1.6 1.6 Weighted-average dilutive shares outstanding 105.6 105.1 Basic earnings per share $ 0.35 $ 0.27 Diluted earnings per share $ 0.34 $ 0.27 |
Segment Information
Segment Information | 3 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 1 3 . Segment Information The Company has two reportable segments: Foodservice and Vistar. 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, snacks, beverages, cigarettes, other tobacco products, and other products to customers in the vending, office coffee services, theater, retail, convenience store 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. (In millions) Foodservice Vistar Corporate & All Other Eliminations Consolidated For the three months ended September 28, 2019 Net external sales $ 3,927.0 $ 2,310.5 $ 5.5 $ — $ 6,243.0 Inter-segment sales 3.9 0.6 74.5 (79.0 ) — Total sales 3,930.9 2,311.1 80.0 (79.0 ) 6,243.0 Depreciation and amortization 24.6 11.6 6.5 — 42.7 Capital expenditures 8.2 8.7 5.9 — 22.8 For the three months ended September 29, 2018 Net external sales $ 3,643.3 $ 891.8 $ 4.6 $ — $ 4,539.7 Inter-segment sales 2.7 0.8 65.2 (68.7 ) — Total sales 3,646.0 892.6 69.8 (68.7 ) 4,539.7 Depreciation and amortization 20.9 8.9 5.7 — 35.5 Capital expenditures 16.8 2.7 5.5 — 25.0 EBITDA for each reportable segment and Corporate & All Other is presented below along with a reconciliation to consolidated income before taxes. Three Months Ended September 28, 2019 September 29, 2018 Foodservice EBITDA $ 104.0 $ 92.0 Vistar EBITDA 51.5 31.6 Corporate & All Other EBITDA (49.3 ) (37.3 ) Depreciation and amortization (42.7 ) (35.5 ) Interest expense (17.3 ) (15.6 ) Income before taxes $ 46.2 $ 35.2 Total assets by reportable segment, excluding intercompany receivables between segments, are as follows: (In millions) As of September 28, 2019 As of June 29, 2019 Foodservice $ 3,334.8 $ 3,152.3 Vistar 1,542.8 1,271.0 Corporate & All Other 1,285.4 230.2 Total assets $ 6,163.0 $ 4,653.5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Estimates (Policies) | 3 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | 4. Revenue Recognition The Company markets and distributes primarily 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, beverages, cigarettes, other tobacco products and other products 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 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 $12.0 million and $10.6 million as of September 28, 2019 and June 29, 2019, respectively. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) The Company’s June 30, 2019 adoption of the new standard resulted in the recognition of operating lease liabilities totaling $423.8 million, based upon the present value of the remaining minimum rental payments using discount rates as of the adoption date, with $82.1 million within Operating lease liabilities - current and $341.7 million within Operating lease liabilities, excluding current installments. In addition, we recorded corresponding Operating lease right-of-use assets totaling $423.0 million based upon the operating lease liabilities adjusted for deferred rent of $11.0 million, favorable lease intangible assets of $5.3 million and prepaid rent and other adjustments of $4.9 million. The new standard did not have a material impact on the Consolidated Statements of Operations and Cash Flows. See Note 7. Leases for further discussion of the Company’s leasing arrangements and required ASC 842 disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . In August 2018, the FASB issued 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 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Schedule of Debt | Debt consisted of the following: (In millions) As of September 28, 2019 As of June 29, 2019 ABL Facility $ 810.0 $ 859.0 5.500% Notes due 2024 350.0 350.0 5.500% Notes due 2027 1,060.0 - Less: Original issue discount and deferred financing costs (7.9 ) (6.1 ) Long-term debt 2,212.1 1,202.9 Less: current installments - - Total debt, excluding current installments $ 2,212.1 $ 1,202.9 |
ABL Facility [Member] | |
Summary of Outstanding Borrowings, Availability, and Average Interest Rate under ABL Facility | The following table summarizes outstanding borrowings, availability, and the average interest rate under the ABL Facility: (Dollars in millions) As of September 28, 2019 As of June 29, 2019 Aggregate borrowings $ 810.0 $ 859.0 Letters of credit under credit agreements 94.7 89.9 Excess availability, net of lenders’ reserves of $39.2 and $38.6 1,248.3 1,182.7 Average interest rate 3.42 % 4.01 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Summary of Right-of-Use Assets and Lease Liabilities in Consolidated Balance Sheet | The following table presents the location of the right-of-use assets and lease liabilities in the Company’s Consolidated Balance Sheet as of September 28, 2019 (in millions) , as well as the weighted-average lease term and discount rate for the Company’s leases: Leases Consolidated Balance Sheet Location As of September 28, 2019 Assets: Operating Operating lease right-of-use assets $ 409.4 Finance Property, plant and equipment, net 159.7 Total lease assets $ 569.1 Liabilities: Current Operating Operating lease obligations—current installments $ 80.8 Finance Finance lease obligations—current installments 21.5 Non-current Operating Operating lease obligations, excluding current installments 330.1 Finance Finance lease obligations, excluding current installments 147.9 Total lease liabilities $ 580.3 Weighted average remaining lease term Operating leases 7.5 years Finance leases 7.2 years Weighted average discount rate Operating leases 5.4 % Finance leases 6.0 % |
Summary of Location of Lease Costs in Consolidated Statement of Operations | The following table presents the location of lease costs in the Company Consolidated Statement of Operations for the three months ended September 28, 2019 (in millions): Lease Cost Statement of Operations Location Three months ended September 28, 2019 Finance lease cost: Amortization of finance lease assets Operating expenses $ 4.7 Interest on lease liabilities Interest expense 2.2 Total finance lease cost $ 6.9 Operating lease cost Operating expenses 28.1 Short-term lease cost Operating expenses 5.9 Total lease cost $ 40.9 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the period reported is as follows (in millions): (In millions) Three months ended September 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 26.8 Operating cash flows from finance leases 2.2 Financing cash flows from finance leases 4.6 Right-of-use assets obtained in exchange for lease obligations: Operating leases 8.7 Finance leases 26.8 |
Summary of Future Minimum Lease Payments Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of September 28, 2019 are as follows (in millions): Fiscal Year Operating Leases Finance Leases Remaining 2020 $ 76.9 $ 23.1 2021 89.9 30.4 2022 74.4 29.9 2023 59.2 28.8 2024 42.2 28.0 Thereafter 175.9 72.3 Total future minimum lease payments $ 518.5 $ 212.5 Less: Interest 107.6 43.1 Present value of future minimum lease payments $ 410.9 $ 169.4 |
Schedule of Future Minimum Lease Payments Under Non-Cancelable Leases Prior to Adoption of ASC 842 | Future minimum lease payments in effect as of June 29, 2019 under non-cancelable leases, as determined prior to the adoption of ASC 842, were as follows (in millions): Fiscal Year Operating Leases Finance Leases 2020 $ 104.7 $ 26.7 2021 89.6 26.3 2022 73.8 25.8 2023 58.2 24.7 2024 40.8 23.9 Thereafter 163.8 58.4 Total future minimum lease payments $ 530.9 $ 185.8 Less: Interest 38.6 Present value of future minimum lease payments $ 147.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 28, 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 September 28, 2019 Three months ended September 29, 2018 Numerator: Net Income $ 36.1 $ 28.2 Denominator: Weighted-average common shares outstanding 104.0 103.5 Dilutive effect of share-based awards 1.6 1.6 Weighted-average dilutive shares outstanding 105.6 105.1 Basic earnings per share $ 0.35 $ 0.27 Diluted earnings per share $ 0.34 $ 0.27 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | 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. (In millions) Foodservice Vistar Corporate & All Other Eliminations Consolidated For the three months ended September 28, 2019 Net external sales $ 3,927.0 $ 2,310.5 $ 5.5 $ — $ 6,243.0 Inter-segment sales 3.9 0.6 74.5 (79.0 ) — Total sales 3,930.9 2,311.1 80.0 (79.0 ) 6,243.0 Depreciation and amortization 24.6 11.6 6.5 — 42.7 Capital expenditures 8.2 8.7 5.9 — 22.8 For the three months ended September 29, 2018 Net external sales $ 3,643.3 $ 891.8 $ 4.6 $ — $ 4,539.7 Inter-segment sales 2.7 0.8 65.2 (68.7 ) — Total sales 3,646.0 892.6 69.8 (68.7 ) 4,539.7 Depreciation and amortization 20.9 8.9 5.7 — 35.5 Capital expenditures 16.8 2.7 5.5 — 25.0 |
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 September 28, 2019 September 29, 2018 Foodservice EBITDA $ 104.0 $ 92.0 Vistar EBITDA 51.5 31.6 Corporate & All Other EBITDA (49.3 ) (37.3 ) Depreciation and amortization (42.7 ) (35.5 ) Interest expense (17.3 ) (15.6 ) Income before taxes $ 46.2 $ 35.2 Total assets by reportable segment, excluding intercompany receivables between segments, are as follows: (In millions) As of September 28, 2019 As of June 29, 2019 Foodservice $ 3,334.8 $ 3,152.3 Vistar 1,542.8 1,271.0 Corporate & All Other 1,285.4 230.2 Total assets $ 6,163.0 $ 4,653.5 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 410.9 | |
Operating lease liability, current | 80.8 | |
Operating lease liability, noncurrent | 330.1 | |
Operating lease, right-of-use asset | $ 409.4 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Operating lease liabilities | $ 423.8 | |
Operating lease liability, current | 82.1 | |
Operating lease liability, noncurrent | 341.7 | |
Operating lease, right-of-use asset | 423 | |
Operating lease liability, deferred rent | 11 | |
Operating lease, intangible assets | 5.3 | |
Operating lease, prepaid rent and other adjustments | $ 4.9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 12 | $ 10.6 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Millions | Jul. 01, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 27, 2019 | Jun. 29, 2019 |
Business Acquisition [Line Items] | |||||
Cash payment for acquisition | $ 31.5 | ||||
5.500% Senior Notes due 2027 [Member] | |||||
Business Acquisition [Line Items] | |||||
Long-term debt, gross | $ 1,060 | ||||
Eby-Brown [Member] | |||||
Business Acquisition [Line Items] | |||||
Total contingent consideration, outstanding | $ 86.4 | $ 82.6 | |||
Reinhart [Member] | |||||
Business Acquisition [Line Items] | |||||
Business combination, purchase price | $ 2,000 | ||||
Business combination, purchase price net of tax benefit | 1,700 | ||||
Business combination, estimated tax benefit | 265 | ||||
Reinhart [Member] | Asset-Based Revolving Credit Facility [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated borrowings to finance purchase price | 300 | ||||
Reinhart [Member] | Asset-Based Revolving Credit Facility [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated borrowings to finance purchase price | $ 400 | ||||
Reinhart [Member] | 5.500% Senior Notes due 2027 [Member] | |||||
Business Acquisition [Line Items] | |||||
Long-term debt, gross | $ 1,060 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Debt Instrument [Line Items] | ||
Less: Original issue discount and deferred financing costs | $ (7.9) | $ (6.1) |
Long-term debt | 2,212.1 | 1,202.9 |
Total debt, excluding current installments | 2,212.1 | 1,202.9 |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 810 | 859 |
5.500% Senior Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 350 | $ 350 |
5.500% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,060 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Sep. 27, 2019 | Aug. 09, 2018 | May 17, 2016 | Sep. 28, 2019 | Jun. 29, 2019 |
Letters of Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit, maximum borrowing capacity | $ 40,000,000 | ||||
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 | $ 28,300,000 | ||||
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 | $ 2,400,000,000 | ||||
Credit facility, maturity period | 2024-05 | ||||
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 | $ 94,700,000 | $ 89,900,000 | |||
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% | ||||
5.500% Senior Notes due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments face amount | $ 1,060,000,000 | ||||
Debt instruments amount, interest rate | 5.50% | ||||
Issue price of notes as a percentage of par value | 100.00% | ||||
Debt Instrument maturity date | Oct. 15, 2027 | ||||
Debt instruments frequency of payments | semi-annually | ||||
Debt Instrument, description of redemption | Upon the occurrence of a change of control triggering event or upon the sale of certain assets in which Performance Food Group, Inc. does not apply the proceeds as required, the holders of the Notes due 2027 will have the right to require Performance Food Group, Inc. to repurchase each holder’s Notes due 2027 at a price equal to 101% (in the case of a change of control triggering event) or 100% (in the case of an asset sale) of their principal amount, plus accrued and unpaid interest. | ||||
Percentage price of principal amount at which debt can be redeemed | 100.00% | ||||
5.500% Senior Notes due 2027 [Member] | Change of Control Triggering Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount at which debt can be redeemed | 101.00% | ||||
5.500% Senior Notes due 2027 [Member] | Case of Asset Sale [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount at which debt can be redeemed | 100.00% | ||||
5.500% Senior Notes due 2027 [Member] | Beginning on October 15, 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount at which debt can be redeemed | 102.75% | ||||
5.500% Senior Notes due 2027 [Member] | On October 15, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount at which debt can be redeemed | 101.375% | ||||
5.500% Senior Notes due 2027 [Member] | On October 15, 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount at which debt can be redeemed | 100.00% | ||||
5.500% Senior Notes due 2027 [Member] | Prior to October 15, 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount at which debt can be redeemed | 105.50% | ||||
5.500% Senior Notes due 2027 [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Early debt redemption percentage | 40.00% | ||||
5.500% Senior Notes due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instruments face amount | $ 350,000,000 | ||||
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 | Sep. 28, 2019 | Jun. 29, 2019 |
Debt Instrument [Line Items] | ||
Aggregate borrowings | $ 810 | $ 859 |
Letters of credit under credit agreements | 94.7 | 89.9 |
Excess availability, net of lenders’ reserves of $39.2 and $38.6 | $ 1,248.3 | $ 1,182.7 |
Average interest rate | 3.42% | 4.01% |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Borrowings, Availability, and Average Interest Rate under ABL Facility (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt amount reserve by lender | $ 39.2 | $ 38.6 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Lessee Lease Description [Line Items] | ||
Operating lease renewal term | 10 years | |
Operating lease, Option to extend | true | |
Operating lease, Option to extend description | options to extend the leases for up to 10 years | |
Operating lease, Option to terminate description | options to terminate the leases within 1 year | |
Operating lease, Option to terminate | true | |
Finance lease renewal term | 10 years | |
Finance lease, Option to extend | true | |
Finance lease, Option to extend description | options to extend the leases for up to 10 years | |
Finance lease, Option to terminate description | options to terminate the leases within 1 year | |
Finance lease, Option to terminate | true | |
Undiscounted maximum amount for guarantees | $ 24.6 | |
Future minimum operating lease payments, not yet commenced | $ 33.9 | |
Operating leases commencement year | 2020 | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease remaining term | 1 year | |
Finance lease remaining term | 1 year | |
Percentage of residual value guarantee under operating lease | 7.00% | |
Operating lease expiration term | 5 years | |
Operating lease expiration year | 2019 | |
Operating leases, not yet commenced, lease term | 3 years | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease remaining term | 20 years | |
Finance lease remaining term | 20 years | |
Percentage of residual value guarantee under operating lease | 12.00% | |
Operating lease expiration term | 8 years | |
Operating lease expiration year | 2025 | |
Operating leases, not yet commenced, lease term | 15 years |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Assets and Lease Liabilities in Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
ASSETS | ||
Operating | $ 409.4 | |
Finance | $ 159.7 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Total lease assets | $ 569.1 | |
Current liabilities: | ||
Operating | 80.8 | |
Finance | 21.5 | $ 18.3 |
Non-current | ||
Operating | 330.1 | |
Finance | 147.9 | $ 128.9 |
Total lease liabilities | $ 580.3 | |
Weighted average remaining lease term | ||
Operating leases | 7 years 6 months | |
Finance leases | 7 years 2 months 12 days | |
Weighted average discount rate | ||
Operating leases | 5.40% | |
Finance leases | 6.00% |
Leases - Summary of Location of
Leases - Summary of Location of Lease Costs in Consolidated Statement of Operations (Detail) $ in Millions | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Finance lease cost: | |
Amortization of finance lease assets | $ 4.7 |
Interest on lease liabilities | 2.2 |
Total finance lease cost | 6.9 |
Operating lease cost | 28.1 |
Short-term lease cost | 5.9 |
Total lease cost | $ 40.9 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information related to Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 26.8 | |
Operating cash flows from finance leases | 2.2 | |
Financing cash flows from finance leases | 4.6 | $ 2.4 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 8.7 | |
Finance leases | $ 26.8 |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments Under Non-Cancelable Leases (Detail) $ in Millions | Sep. 28, 2019USD ($) |
Operating Leases | |
Remaining 2020 | $ 76.9 |
2021 | 89.9 |
2022 | 74.4 |
2023 | 59.2 |
2024 | 42.2 |
Thereafter | 175.9 |
Total future minimum lease payments | 518.5 |
Less: Interest | 107.6 |
Present value of future minimum lease payments | 410.9 |
Finance Leases | |
Remaining 2020 | 23.1 |
2021 | 30.4 |
2022 | 29.9 |
2023 | 28.8 |
2024 | 28 |
Thereafter | 72.3 |
Total future minimum lease payments | 212.5 |
Less: Interest | 43.1 |
Present value of future minimum lease payments | $ 169.4 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancelable Leases Prior to Adoption of ASC 842 (Detail) $ in Millions | Sep. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 104.7 |
2021 | 89.6 |
2022 | 73.8 |
2023 | 58.2 |
2024 | 40.8 |
Thereafter | 163.8 |
Total future minimum lease payments | 530.9 |
Finance Leases | |
2020 | 26.7 |
2021 | 26.3 |
2022 | 25.8 |
2023 | 24.7 |
2024 | 23.9 |
Thereafter | 58.4 |
Total future minimum lease payments | 185.8 |
Less: Interest | 38.6 |
Present value of future minimum lease payments | $ 147.2 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Long-term debt | $ 2,212.1 | $ 1,202.9 |
Reported Value Measurement [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Long-term debt | 2,212.1 | 1,202.9 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value of long term debt | $ 2,274.8 | $ 1,216.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 21.90% | 20.00% | |
U.S. federal corporate income tax rate | 21.00% | ||
Net deferred tax assets | $ 29.1 | $ 29.1 | |
Net deferred tax liabilities | 131.1 | 137.1 | |
Valuation allowance | 0.5 | ||
Unrecognized tax benefits | 1.8 | $ 1.9 | |
Decrease in unrecognized tax benefits | $ 0.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Commitments And Contingencies [Line Items] | |
Outstanding contracts and purchase orders for capital projects and services | $ 34.9 |
Undiscounted maximum amount for guarantees | 24.6 |
Reinhart [Member] | |
Commitments And Contingencies [Line Items] | |
Commitments, total | 61.7 |
Reinhart [Member] | Advisory Fees [Member] | |
Commitments And Contingencies [Line Items] | |
Commitments, total | 11 |
Reinhart [Member] | Common Stock [Member] | |
Commitments And Contingencies [Line Items] | |
Commitments, total | 19.8 |
Notes due 2027 [Member] | Reinhart [Member] | |
Commitments And Contingencies [Line Items] | |
Commitments, total | 26 |
ABL Facility [Member] | Reinhart [Member] | |
Commitments And Contingencies [Line Items] | |
Commitments, total | 4.9 |
Guarantees [Member] | |
Commitments And Contingencies [Line Items] | |
Undiscounted maximum amount for guarantees | $ 4.9 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - Purchasing Alliance [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Jun. 29, 2019 | |
Related Party Transaction [Line Items] | |||
Equity method investments | $ 5.3 | $ 4.6 | |
Purchases from related party | $ 254.2 | $ 226.9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings Per Share [Abstract] | ||
Potential common shares not included in computing diluted earnings per share due to antidilutive effect | 0.4 | 0.5 |
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 | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Numerator: | ||
Net income | $ 36.1 | $ 28.2 |
Denominator: | ||
Weighted-average common shares outstanding | 104 | 103.5 |
Dilutive effect of share-based awards | 1.6 | 1.6 |
Weighted-average dilutive shares outstanding | 105.6 | 105.1 |
Basic earnings per share | $ 0.35 | $ 0.27 |
Diluted earnings per share | $ 0.34 | $ 0.27 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Sep. 28, 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 | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 6,243 | $ 4,539.7 |
Depreciation and amortization | 42.7 | 35.5 |
Capital expenditures | 22.8 | 25 |
Foodservice [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,927 | 3,643.3 |
Depreciation and amortization | 24.6 | 20.9 |
Capital expenditures | 8.2 | 16.8 |
Vistar [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,310.5 | 891.8 |
Depreciation and amortization | 11.6 | 8.9 |
Capital expenditures | 8.7 | 2.7 |
Corporate & All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5.5 | 4.6 |
Depreciation and amortization | 6.5 | 5.7 |
Capital expenditures | 5.9 | 5.5 |
Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | (79) | (68.7) |
Eliminations [Member] | Foodservice [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3.9 | 2.7 |
Eliminations [Member] | Vistar [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0.6 | 0.8 |
Eliminations [Member] | Corporate & All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 74.5 | 65.2 |
Operating Segments [Member] | Foodservice [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,930.9 | 3,646 |
Operating Segments [Member] | Vistar [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 2,311.1 | 892.6 |
Operating Segments [Member] | Corporate & All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 80 | $ 69.8 |
Segment Information - Schedul_2
Segment Information - Schedule of EBDITA and Reconciliation to Consolidated Income Before Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ (42.7) | $ (35.5) |
Interest expense | (17.3) | (15.6) |
Income before taxes | 46.2 | 35.2 |
Foodservice [Member] | ||
Segment Reporting Information [Line Items] | ||
EBITDA | 104 | 92 |
Depreciation and amortization | (24.6) | (20.9) |
Vistar [Member] | ||
Segment Reporting Information [Line Items] | ||
EBITDA | 51.5 | 31.6 |
Depreciation and amortization | (11.6) | (8.9) |
Corporate & All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
EBITDA | (49.3) | (37.3) |
Depreciation and amortization | $ (6.5) | $ (5.7) |
Segment Information - Summary A
Segment Information - Summary Assets by Reportable Segment, Excluding Intercompany Receivables (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Jun. 29, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,163 | $ 4,653.5 |
Foodservice [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,334.8 | 3,152.3 |
Vistar [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,542.8 | 1,271 |
Corporate & All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,285.4 | $ 230.2 |