Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-37786 | |
Entity Registrant Name | US FOODS HOLDING CORP. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0347906 | |
Entity Address, Address Line One | 9399 W. Higgins Road | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Rosemont | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60018 | |
City Area Code | 847 | |
Local Phone Number | 720-8000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | USFD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Outstanding (in shares) | 219,421,457 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001665918 | |
Current Fiscal Year End Date | --12-28 | |
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 90 | $ 104 |
Accounts receivable, less allowances of $30 and $29 | 1,548 | 1,347 |
Vendor receivables, less allowances of $5 and $3 | 199 | 106 |
Inventories—net | 1,468 | 1,279 |
Prepaid expenses | 101 | 106 |
Assets held for sale | 1 | 7 |
Assets of discontinued operations | 142 | 0 |
Other current assets | 11 | 30 |
Total current assets | 3,560 | 2,979 |
Property and equipment—net | 2,029 | 1,842 |
Goodwill | 4,728 | 3,967 |
Other intangibles—net | 983 | 324 |
Deferred tax assets | 0 | 7 |
Other assets | 226 | 67 |
Total assets | 11,526 | 9,186 |
Current liabilities: | ||
Cash overdraft liability | 227 | 157 |
Accounts payable | 1,645 | 1,359 |
Accrued expenses and other current liabilities | 511 | 454 |
Liabilities of discontinued operations | 27 | 0 |
Current portion of long-term debt | 136 | 106 |
Total current liabilities | 2,546 | 2,076 |
Long-term debt | 4,788 | 3,351 |
Deferred tax liabilities | 294 | 298 |
Other long-term liabilities | 341 | 232 |
Total liabilities | 7,969 | 5,957 |
Commitments and contingencies (Note 19) | ||
Shareholders’ equity: | ||
Common stock, $0.01 par value—600 shares authorized; 219 and 217 issued and outstanding as of September 28, 2019 and December 29, 2018, respectively | 2 | 2 |
Additional paid-in capital | 2,825 | 2,780 |
Retained earnings | 824 | 531 |
Accumulated other comprehensive loss | (94) | (84) |
Total shareholders’ equity | 3,557 | 3,229 |
Total liabilities and shareholders' equity | $ 11,526 | $ 9,186 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 30 | $ 29 |
Allowances for vendor receivables | $ 5 | $ 3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 219,000,000 | 217,000,000 |
Common stock, outstanding (in shares) | 219,000,000 | 217,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 6,531 | $ 6,153 | $ 19,005 | $ 18,134 |
Cost of goods sold | 5,375 | 5,045 | 15,655 | 14,920 |
Gross profit | 1,156 | 1,108 | 3,350 | 3,214 |
Operating expenses: | ||||
Distribution, selling and administrative costs | 968 | 929 | 2,837 | 2,725 |
Restructuring costs | 0 | 0 | 0 | 1 |
Total operating expenses | 968 | 929 | 2,837 | 2,726 |
Operating income | 188 | 179 | 513 | 488 |
Other expense (income)—net | 1 | (3) | (3) | (9) |
Interest expense—net | 43 | 42 | 127 | 133 |
Income before income taxes | 144 | 140 | 389 | 364 |
Income tax provision | 39 | 26 | 97 | 57 |
Income from continuing operations | 105 | 114 | 292 | 307 |
Income from discontinued operations—net of tax | 1 | 0 | 1 | 0 |
Net income | 106 | 114 | 293 | 307 |
Other comprehensive income—net of tax: | ||||
Changes in retirement benefit obligations | 3 | 0 | 5 | 26 |
Unrecognized (loss) gain on interest rate swaps | (1) | 2 | (15) | 14 |
Comprehensive income | $ 108 | $ 116 | $ 283 | $ 347 |
Net income per share—basic: | ||||
Continuing operations | $ 0.48 | $ 0.53 | $ 1.33 | $ 1.42 |
Discontinued operations | 0.01 | 0 | 0.01 | 0 |
Net income per share | 0.49 | 0.53 | 1.34 | 1.42 |
Net income per share—diluted: | ||||
Continuing operations | 0.47 | 0.52 | 1.33 | 1.41 |
Discontinued operations | 0.01 | 0 | 0.01 | 0 |
Net income per share | $ 0.48 | $ 0.52 | $ 1.34 | $ 1.41 |
Weighted-average common shares outstanding | ||||
Basic | 218 | 217 | 218 | 216 |
Diluted | 220 | 218 | 219 | 218 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Shares balance beginning of period (in shares) at Dec. 30, 2017 | 215 | ||||
Balance at beginning of period at Dec. 30, 2017 | $ 2,751 | $ 2 | $ 2,720 | $ 124 | $ (95) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 7 | 7 | |||
Proceeds from employee stock purchase plan | 4 | 4 | |||
Exercise of stock options (in shares) | 1 | ||||
Exercise of stock options | 7 | 7 | |||
Changes in retirement benefit obligations, net of income tax | 1 | 1 | |||
Unrecognized gain (loss) on interest rate swaps, net of income tax | 9 | 9 | |||
Net income | 67 | 67 | |||
Shares balance end of period (in shares) at Mar. 31, 2018 | 216 | ||||
Balance at end of period at Mar. 31, 2018 | 2,846 | $ 2 | 2,738 | 191 | (85) |
Shares balance beginning of period (in shares) at Dec. 30, 2017 | 215 | ||||
Balance at beginning of period at Dec. 30, 2017 | 2,751 | $ 2 | 2,720 | 124 | (95) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Changes in retirement benefit obligations, net of income tax | 26 | ||||
Net income | $ 307 | ||||
Shares balance end of period (in shares) at Sep. 29, 2018 | 217 | ||||
Balance at end of period at Sep. 29, 2018 | $ 3,146 | $ 2 | 2,768 | 431 | (55) |
Shares balance beginning of period (in shares) at Mar. 31, 2018 | 216 | ||||
Balance at beginning of period at Mar. 31, 2018 | 2,846 | $ 2 | 2,738 | 191 | (85) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 10 | 10 | |||
Proceeds from employee stock purchase plan | 6 | 6 | |||
Exercise of stock options (in shares) | 1 | ||||
Exercise of stock options | 9 | 9 | |||
Tax withholding payments for net share-settled equity awards | (5) | (5) | |||
Changes in retirement benefit obligations, net of income tax | 25 | 25 | |||
Unrecognized gain (loss) on interest rate swaps, net of income tax | 3 | 3 | |||
Net income | 126 | 126 | |||
Shares balance end of period (in shares) at Jun. 30, 2018 | 217 | ||||
Balance at end of period at Jun. 30, 2018 | 3,020 | $ 2 | 2,758 | 317 | (57) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 3 | 3 | |||
Proceeds from employee stock purchase plan | $ 5 | 5 | |||
Exercise of stock options (in shares) | 0 | ||||
Exercise of stock options | $ 3 | 3 | |||
Tax withholding payments for net share-settled equity awards | (1) | (1) | |||
Changes in retirement benefit obligations, net of income tax | 0 | ||||
Unrecognized gain (loss) on interest rate swaps, net of income tax | 2 | 2 | |||
Net income | $ 114 | 114 | |||
Shares balance end of period (in shares) at Sep. 29, 2018 | 217 | ||||
Balance at end of period at Sep. 29, 2018 | $ 3,146 | $ 2 | 2,768 | 431 | (55) |
Shares balance beginning of period (in shares) at Dec. 29, 2018 | 217 | ||||
Balance at beginning of period at Dec. 29, 2018 | 3,229 | $ 2 | 2,780 | 531 | (84) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 6 | 6 | |||
Proceeds from employee stock purchase plan | 5 | 5 | |||
Exercise of stock options (in shares) | 1 | ||||
Exercise of stock options | 6 | 6 | |||
Tax withholding payments for net share-settled equity awards | (2) | (2) | |||
Changes in retirement benefit obligations, net of income tax | 1 | 1 | |||
Unrecognized gain (loss) on interest rate swaps, net of income tax | (6) | (6) | |||
Net income | 71 | 71 | |||
Shares balance end of period (in shares) at Mar. 30, 2019 | 218 | ||||
Balance at end of period at Mar. 30, 2019 | 3,310 | $ 2 | 2,795 | 602 | (89) |
Shares balance beginning of period (in shares) at Dec. 29, 2018 | 217 | ||||
Balance at beginning of period at Dec. 29, 2018 | 3,229 | $ 2 | 2,780 | 531 | (84) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Changes in retirement benefit obligations, net of income tax | 5 | ||||
Net income | 293 | ||||
Shares balance end of period (in shares) at Sep. 28, 2019 | 219 | ||||
Balance at end of period at Sep. 28, 2019 | 3,557 | $ 2 | 2,825 | 824 | (94) |
Shares balance beginning of period (in shares) at Mar. 30, 2019 | 218 | ||||
Balance at beginning of period at Mar. 30, 2019 | 3,310 | $ 2 | 2,795 | 602 | (89) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 9 | 9 | |||
Proceeds from employee stock purchase plan | 5 | 5 | |||
Exercise of stock options (in shares) | 1 | ||||
Exercise of stock options | 5 | 5 | |||
Tax withholding payments for net share-settled equity awards | (3) | (3) | |||
Changes in retirement benefit obligations, net of income tax | 1 | 1 | |||
Unrecognized gain (loss) on interest rate swaps, net of income tax | (8) | (8) | |||
Net income | 116 | 116 | |||
Shares balance end of period (in shares) at Jun. 29, 2019 | 219 | ||||
Balance at end of period at Jun. 29, 2019 | 3,435 | $ 2 | 2,811 | 718 | (96) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 7 | 7 | |||
Proceeds from employee stock purchase plan | 5 | 5 | |||
Exercise of stock options (in shares) | 0 | ||||
Exercise of stock options | 2 | 2 | |||
Changes in retirement benefit obligations, net of income tax | 3 | 3 | |||
Unrecognized gain (loss) on interest rate swaps, net of income tax | (1) | (1) | |||
Net income | 106 | 106 | |||
Shares balance end of period (in shares) at Sep. 28, 2019 | 219 | ||||
Balance at end of period at Sep. 28, 2019 | $ 3,557 | $ 2 | $ 2,825 | $ 824 | $ (94) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 293 | $ 307 |
Income from discontinued operations—net of tax | (1) | 0 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 260 | 250 |
Gain on disposal of property and equipment—net | (1) | (1) |
Amortization of deferred financing costs | 3 | 6 |
Deferred tax provision | 7 | 50 |
Share-based compensation expense | 22 | 20 |
Provision for doubtful accounts | 14 | 13 |
Changes in operating assets and liabilities: | ||
Increase in receivables | (162) | (174) |
Increase in inventories—net | (22) | (93) |
Decrease (increase) in prepaid expenses and other assets | 14 | (28) |
Increase in accounts payable and cash overdraft liability | 160 | 264 |
Decrease in accrued expenses and other liabilities | (29) | (170) |
Net cash provided by operating activities of continuing operations | 558 | 444 |
Net cash provided by operating activities of discontinued operations | 1 | 0 |
Net cash provided by operating activities | 559 | 444 |
Cash flows from investing activities: | ||
Acquisition of business—net of cash | (1,829) | 0 |
Proceeds from sales of property and equipment | 9 | 3 |
Purchases of property and equipment | (157) | (168) |
Net cash used in investing activities | (1,977) | (165) |
Cash flows from financing activities: | ||
Proceeds from debt borrowings | 5,084 | 2,987 |
Principal payments on debt and financing leases | (3,654) | (3,321) |
Contingent consideration paid for business acquisitions | 0 | (2) |
Payment for debt financing costs and fees | (42) | (1) |
Proceeds from employee stock purchase plan | 15 | 15 |
Proceeds from exercise of stock options | 13 | 18 |
Tax withholding payments for net share-settled equity awards | (5) | (6) |
Net cash provided by (used in) financing activities | 1,411 | (310) |
Net decrease in cash, cash equivalents and restricted cash | (7) | (31) |
Cash, cash equivalents and restricted cash—beginning of period | 105 | 119 |
Cash, cash equivalents and restricted cash—end of period | 98 | 88 |
Supplemental disclosures of cash flow information: | ||
Interest paid—net of amounts capitalized | 112 | 118 |
Income taxes paid—net | 116 | 65 |
Property and equipment purchases included in accounts payable | 21 | 16 |
Leased assets obtained in exchange for financing lease liabilities | 77 | 82 |
Leased assets obtained in exchange for operating lease liabilities | 11 | 0 |
Cashless exercise of stock options | $ 1 | $ 1 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | OVERVIEW AND BASIS OF PRESENTATION US Foods Holding Corp., a Delaware corporation, and its consolidated subsidiaries are referred to in these consolidated financial statements and notes as “we,” “our,” “us,” the “Company,” or “US Foods.” US Foods Holding Corp. conducts all of its operations through its wholly owned subsidiary US Foods, Inc. (“USF”) and its subsidiaries. All of the Company’s indebtedness, as further described in Note 12, Debt, is a direct obligation of USF and its subsidiaries. Business Description —The Company, through USF, operates in one business segment in which it markets and distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. These customers include independently owned single and multi-unit restaurants, regional concepts, national restaurant chains, hospitals, nursing homes, hotels and motels, country clubs, government and military organizations, colleges and universities, and retail locations. Basis of Presentation —The Company operates on a 52 or 53 week fiscal year, with all periods ending on a Saturday. When a 53 week fiscal year occurs, the Company reports the additional week in the fiscal fourth quarter. Fiscal years 2019 and 2018 are both 52 week fiscal years. Fiscal year 2020 will be a 53 week fiscal year. The consolidated financial statements included in this Quarterly Report have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements and notes prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures included in this Quarterly Report are adequate to make the information presented not misleading. These interim consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes included in the 2018 Annual Report. Prior year amounts may have been rounded to conform with the current year presentation in millions. The consolidated interim financial statements reflect all adjustments (consisting of normal recurring items, unless otherwise disclosed) necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results that might be achieved for the full fiscal year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement, Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income . This new guidance permits an entity to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. The Company adopted this guidance as of the beginning of fiscal year 2019 and elected not to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes Accounting Standards Codification (“ASC”) 840 , Leases, and has issued subsequent amendments to Topic 842. The Company adopted Topic 842 on December 30, 2018, the effective and initial application date, using the modified retrospective approach. The Company elected from the package of practical expedients permitted under the transition guidance within Topic 842, which, among other things, allowed the Company to carry forward the historical lease classification. Adoption of Topic 842 resulted in the recording of additional net lease assets and lease liabilities of approximately $100 million , as of December 30, 2018. The initial adoption of Topic 842 did not materially impact the Company’s Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows. The Company has revised its relevant policies and procedures, as applicable, to meet the new accounting, reporting and disclosure requirements of Topic 842. See Note 14, Leases. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, 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 , which provides new guidance on the accounting for implementation, set-up, and other upfront costs incurred in a hosted cloud computing arrangement. Under the new guidance, entities will apply the same criteria for capitalizing implementation costs as they would for an internal-use software license arrangement. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. This ASU can be adopted prospectively to eligible costs incurred on or after the date of adoption or retrospectively. The Company does not expect the adoption of the guidance under the new standard to materially affect its financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to use a forward looking, expected loss model to estimate credit losses. It also requires additional disclosure related to credit quality of trade and other receivables, including information related to management’s estimate of credit allowances. ASU 2016-13 was further amended in November 2018 by ASU 2018-19, Codification Improvements to Topic 236, Financial Instrument-Credit Losses. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of the provisions of the new standard to materially affect its financial position or results of operations. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | REVENUE RECOGNITION The Company recognizes revenue when the performance obligation is satisfied, which occurs when a customer obtains control of the promised goods or services. The amount of revenue recognized reflects the consideration which the Company expects to be entitled to receive in exchange for these goods or services. The Company generates substantially all of its revenue from the distribution and sale of food and food-related products and recognizes revenue when title and risk of loss passes and the customer accepts the goods, which occurs at delivery. Customer sales incentives such as volume-based rebates or discounts are treated as a reduction of revenue at the time the revenue is recognized. Sales taxes invoiced to customers and remitted to governmental authorities are excluded from net sales. Shipping and handling costs are treated as fulfillment costs and included in distribution, selling and administrative costs. At September 28, 2019 , the Company did not have any material outstanding performance obligations, contract liabilities or capitalized contract acquisition costs. Customer receivables, which are included in accounts receivable, less allowances in the Company’s Consolidated Balance Sheets, were $1.5 billion and $1.3 billion as of September 28, 2019 and December 29, 2018 , respectively. The Company has certain customer contracts under which incentives are paid upfront to its customers. These payments have become industry practice and are not related to financing any customer’s business, nor are they associated with any distinct good or service to be received from any customer. These incentive payments are capitalized in prepaid expenses and other assets and amortized as a reduction of revenue over the life of the contract or as goods or services are transferred to the customer. The Company’s contract assets for these upfront payments were $31 million and $37 million included in prepaid expenses in the Company’s Consolidated Balance Sheets as of September 28, 2019 and December 29, 2018 , respectively, and $38 million and $28 million included in other assets in the Company’s Consolidated Balance Sheets as of September 28, 2019 and December 29, 2018 , respectively. The following table presents the disaggregation of revenue for each of the Company’s principal product categories: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Meats and seafood $ 2,352 $ 2,198 $ 6,849 $ 6,484 Dry grocery products 1,100 1,070 3,254 3,181 Refrigerated and frozen grocery products 1,054 979 3,076 2,896 Dairy 689 646 1,955 1,906 Equipment, disposables and supplies 628 594 1,822 1,722 Beverage products 352 337 1,029 991 Produce 356 329 1,020 954 Net sales $ 6,531 $ 6,153 $ 19,005 $ 18,134 |
Business Acquisitions Business
Business Acquisitions Business Acquisitions | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | BUSINESS ACQUISITIONS On September 13, 2019, USF completed the $1.8 billion all cash acquisition of five foodservice companies (the “Food Group”) from Services Group of America, Inc.: Food Services of America, Inc., Systems Services of America, Inc., Amerifresh, Inc., Ameristar Meats, Inc. and GAMPAC Express, Inc. The acquisition of the Food Group expands the Company’s network in the West and Northwest parts of the United States. USF financed the acquisition with borrowings under a new $1.5 billion incremental senior secured term loan facility, as further described in Note 12, Debt, and with borrowings under its revolving credit facilities. The assets, liabilities and results of operations of the Food Group have been included in the Company’s consolidated financial statements since the date the acquisition was completed. As a condition to receiving regulatory clearance for the acquisition from the Federal Trade Commission, USF divested three Food Group distribution facilities (the "Divested Assets"). The total amount of proceeds received from the October 11, 2019 sale of the Divested Assets at closing was $94 million , which, together with approximately $21 million in holdback funds and expected working capital adjustments, approximates the fair value of the Divested Assets. The assets and liabilities of the Divested Assets are included in assets of discontinued operations and liabilities of discontinued operations, respectively, in the Company's Consolidated Balance Sheets. The operating results of the Divested Assets from the date the acquisition was completed through September 28, 2019 are included in income from discontinued operations—net of tax in the Company's Consolidated Statements of Comprehensive Income. The following table summarizes the preliminary purchase price allocation recognized for the acquisition based on preliminary estimates of the fair value of the assets acquired and the liabilities assumed. The allocation is dependent upon certain valuation and other analyses and studies that have not yet been completed. Accordingly, the preliminary purchase price allocation is subject to further adjustment as additional information becomes available and final valuations are completed. There can be no assurances that these final valuations and additional analyses and studies will not result in significant changes to the preliminary estimates of fair value set forth below. Preliminary Purchase Price Allocation Accounts receivable $ 145 Inventories 166 Assets of discontinued operations 142 Other current assets 7 Property and equipment 200 Goodwill (1) 761 Other intangibles (2) 691 Other assets 47 Accounts payable (200 ) Accrued expenses and other current liabilities (61 ) Liabilities of discontinued operations (27 ) Other long-term liabilities, including financing leases (42 ) Cash paid for acquisition $ 1,829 (1) Goodwill recognized is primarily attributable to expected synergies from the combined company, as well as intangible assets that do not qualify for separate recognition. The acquired goodwill is deductible for U.S. federal income tax purposes. (2) Other intangible assets consist of customer relationships of $652 million with estimated useful lives of 15 years and indefinite-lived brand names and trademarks of $39 million . Net sales and net income for the Food Group (exclusive of the Divested Assets, as the sales and net income of the Divested Assets are reflected in discontinued operations, which have been included in the Company’s Consolidated Statements of Comprehensive Income since the date the acquisition was completed), were $132 million and $1 million , during the 13 weeks and 39 weeks ended September 28, 2019, respectively. Acquisition related costs included in distribution, selling and administrative costs in the Company’s Consolidated Statements of Comprehensive Income were $17 million and $10 million for the 13 weeks ended September 28, 2019 and September 29, 2018 , respectively, and $35 million and $10 million for the 39 weeks ended September 28, 2019 and September 29, 2018 , respectively. The following table presents the Company’s unaudited pro forma consolidated net sales, net income and earnings per share (“EPS”) for the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018, respectively. The unaudited pro forma financial information includes the historical results of operations of the Company and the Food Group, giving effect to the acquisition and related financing as if they had occurred as of December 31, 2017, which was the first day of the Company’s fiscal year 2018. 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Pro forma net sales $ 7,195 $ 6,907 $ 21,086 $ 20,265 Pro forma net income $ 123 $ 120 $ 305 $ 294 Pro forma earnings per share: Basic $ 0.56 $ 0.55 $ 1.40 $ 1.36 Diluted $ 0.56 $ 0.55 $ 1.39 $ 1.35 The unaudited pro forma financial information for all periods presented above excludes the results of operations related to the Divested Assets, as the results of operations related to the Divested Assets are reflected as discontinued operations. Unaudited net sales, net income and EPS related to the Divested Assets for the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018, respectively, are as follows: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Pro forma net sales $ 114 $ 136 $ 372 $ 390 Pro forma net income $ 3 $ 4 $ 6 $ 8 Pro forma earnings per share: Basic $ 0.02 $ 0.02 $ 0.03 $ 0.04 Diluted $ 0.01 $ 0.02 $ 0.03 $ 0.04 The unaudited pro forma financial information above includes adjustments for: (1) incremental depreciation expense related to fair value increases of certain acquired property and equipment, (2) amortization expense related to the fair value of intangible assets acquired, (3) interest expense related to the borrowings under the new incremental senior secured term loan facility and revolving credit facilities used to finance the acquisition, (4) the elimination of acquisition-related costs that were included in the Company’s historical results, and (5) adjustments to the income tax provision based on pro forma results of operations. No effect has been given to potential synergies, operating efficiencies or costs arising from the integration of the Food Group with our previously existing operations. Accordingly, the unaudited pro forma financial information is not necessarily indicative of the operating results that would have been achieved had the pro forma events taken place on the date indicated. Further, the pro forma financial information does not purport to project the Company’s future consolidated results of operations following the acquisition. |
Restricted Cash (Notes)
Restricted Cash (Notes) | 9 Months Ended |
Sep. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | RESTRICTED CASH Restricted cash primarily consists of cash on deposit with financial institutions as collateral for certain letters of credit. Cash, cash equivalents and restricted cash as presented in the Company's Consolidated Statements of Cash Flows as of September 28, 2019 and December 29, 2018 consisted of the following: September 28, 2019 December 29, 2018 Cash and cash equivalents $ 90 $ 104 Restricted cash—included in other assets 8 1 Total cash, cash equivalents and restricted cash $ 98 $ 105 |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The Company’s inventories, consisting mainly of food and food-related products, are primarily considered finished goods. Inventory costs include the purchase price of the product, freight costs to deliver it to the Company’s distribution facilities, and depreciation and labor related to processing facilities and equipment, and are net of certain cash or non-cash consideration received from vendors. The Company assesses the need for valuation allowances for slow-moving, excess and obsolete inventories by estimating the net recoverable value of such goods based upon inventory category, inventory age, specifically identified items, and overall economic conditions. The Company records inventories at the lower of cost or market, using the last-in, first-out (“LIFO”) method. The base year values of beginning and ending inventories are determined using the inventory price index computation method. This links current costs to original costs in the base year when the Company adopted LIFO. As of September 28, 2019 and December 29, 2018 , LIFO reserves in the Company’s Consolidated Balance Sheets were $143 million and $130 million , respectively. As a result of changes in LIFO reserves, cost of goods sold increased $1 million and decreased $9 million for the 13 weeks ended September 28, 2019 and September 29, 2018 , respectively, and increased $13 million and decreased $1 million for the 39 weeks ended September 28, 2019 and September 29, 2018 , respectively. |
Accounts Receivable Financing P
Accounts Receivable Financing Program | 9 Months Ended |
Sep. 28, 2019 | |
Receivables [Abstract] | |
Accounts Receivable Financing Program | ACCOUNTS RECEIVABLE FINANCING PROGRAM Under its accounts receivable financing facility (the “ABS Facility”), USF sells, on a revolving basis, eligible receivables to a wholly owned, special purpose, bankruptcy remote subsidiary (the “Receivables Company”). The Receivables Company, in turn, grants a continuing security interest in all of its right, title and interest in the eligible receivables to the administrative agent, for the benefit of the lenders. The Company consolidates the Receivables Company and, consequently, the transfer of the eligible receivables is a transaction internal to the Company and the eligible receivables have not been derecognized from the Company’s Consolidated Balance Sheets. Included in the Company’s accounts receivable balance as of September 28, 2019 and December 29, 2018 was approximately $1.1 billion and $1.0 billion , respectively, of eligible receivables held as collateral in support of the ABS Facility. See Note 12, Debt, for a further description of the ABS Facility. |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | ASSETS HELD FOR SALE The Company classifies its closed facilities as assets held for sale at the time management commits to a plan to sell the facility, the facility is actively marketed and available for immediate sale, and the sale is expected to be completed within one year. Due to market conditions, certain facilities may be classified as assets held for sale for more than one year while the Company continues to actively market the facilities. The change in assets held for sale for the 39 weeks ended September 28, 2019 was as follows: Balance as of December 29, 2018 $ 7 Assets sold (6 ) Balance as of September 28, 2019 $ 1 During the 39 weeks ended September 28, 2019 , two closed distribution facilities and an excess parcel of land were sold for aggregate proceeds of $6 million |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 40 years . Property and equipment under financing leases and leasehold improvements are amortized on a straight-line basis over the remaining terms of the related leases or the estimated useful lives of the assets, if reasonably assured the Company will purchase the assets at the end of the lease terms. As of September 28, 2019 and December 29, 2018 , property and equipment-net included accumulated depreciation of $2,288 million and $2,117 million , respectively. Depreciation expense was $75 million for both the 13 weeks ended September 28, 2019 and September 29, 2018 , and $228 million and $220 million for the 39 weeks ended September 28, 2019 and September 29, 2018 , respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES Goodwill includes the cost of acquired businesses in excess of the fair value of the tangible and other intangible net assets acquired. Other intangible assets include customer relationships, noncompete agreements, the brand names comprising the Company’s portfolio of exclusive brands, and trademarks. Brand names and trademarks are indefinite-lived intangible assets and, accordingly, are not subject to amortization, but are subject to impairment assessments as described below. Customer relationships and noncompete agreements are intangible assets with definite lives and are carried at the acquired fair value, less accumulated amortization. Customer relationships and noncompete agreements are amortized over the estimated useful lives (which are 2 to 15 years ). Amortization expense was $12 million and $10 million for the 13 weeks ended September 28, 2019 and September 29, 2018 , respectively, and $32 million and $30 million for the 39 weeks ended September 28, 2019 and September 29, 2018 , respectively. Goodwill and other intangibles—net consisted of the following: September 28, 2019 December 29, 2018 Goodwill $ 4,728 $ 3,967 Other intangibles—net Customer relationships—amortizable: Gross carrying amount $ 806 $ 154 Accumulated amortization (116 ) (85 ) Net carrying value 690 69 Noncompete agreements—amortizable: Gross carrying amount 3 3 Accumulated amortization (2 ) (1 ) Net carrying value 1 2 Brand names and trademarks—not amortizing 292 253 Total other intangibles—net $ 983 $ 324 The increase in goodwill and other intangible assets as of September 28, 2019 is attributable to the Food Group acquisition, as described in Note 4, Business Acquisitions. The Company assesses goodwill and other intangible assets with indefinite lives for impairment annually, or more frequently if events occur that indicate an asset may be impaired. For goodwill and indefinite-lived intangible assets, the Company’s policy is to assess for impairment as of the beginning of each fiscal third quarter. For intangible assets with definite lives, the Company assesses impairment only if events occur that indicate that the carrying amount of an asset may not be recoverable. The Company completed its most recent annual impairment assessment for goodwill and indefinite-lived intangible assets as of June 30, 2019, the first day of the third quarter of fiscal year 2019, with no impairments noted. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company follows the accounting standards for fair value, under which fair value is a market-based measurement, not an entity-specific measurement. The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, fair value accounting standards establish a fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: • Level 1—observable inputs, such as quoted prices in active markets • Level 2—observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active or inactive markets that are observable either directly or indirectly, or other inputs that are observable or can be corroborated by observable market data • Level 3—unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions Any transfers of assets or liabilities between Level 1, Level 2, and Level 3 of the fair value hierarchy will be recognized at the end of the reporting period in which the transfer occurs. There were no transfers between fair value levels in any of the periods presented below. The Company’s assets and liabilities measured at fair value on a recurring basis as of September 28, 2019 and December 29, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall, were as follows: September 28, 2019 Level 1 Level 2 Level 3 Total Liabilities Interest rate swaps $ — $ 2 $ — $ 2 December 29, 2018 Level 1 Level 2 Level 3 Total Assets Money market funds $ 1 $ — $ — $ 1 Interest rate swaps — 19 — 19 $ 1 $ 19 $ — $ 20 There were no significant assets or liabilities in the Company's Consolidated Balance Sheets measured at fair value on a nonrecurring basis. Business acquisitions are recorded at fair value as further described in Note 4, Business Acquisitions. Recurring Fair Value Measurements Money Market Funds Money market funds include highly liquid investments with a maturity of three or fewer months. They are valued using quoted market prices in active markets and are classified under Level 1 within the fair value hierarchy. Derivative Financial Instruments The Company uses interest rate swaps, designated as cash flow hedges, to manage its exposure to interest rate movements in connection with its variable-rate Initial Term Loan Facility (as defined in Note 12, Debt). On August 1, 2017, USF entered into four -year interest rate swap agreements with a notional amount of $1.1 billion , reducing to $825 million in the fourth year. These swaps effectively converted approximately half of the principal amount of the Initial Term Loan Facility from a variable to a fixed rate loan. On May 31, 2019, an interest rate swap agreement with a notional amount of $367 million was terminated, and the Company received cash proceeds of $1 million , the fair value of the interest rate swap on the termination date. The proceeds were recorded as cash provided by operating activities in the Company's Consolidated Statement of Cash Flows. The $1 million gain from the termination of the interest rate swap agreement remains in accumulated other comprehensive loss and is being amortized to interest expense through July 31, 2021, the remaining term of the original interest rate swap agreement. After giving effect to the termination of the interest rate swap agreement, the remaining interest rate swap agreements collectively have a notional value of $733 million , reducing to $550 million on July 31, 2020. The Company pays an aggregate effective rate of 3.70% on the notional amount of the Initial Term Loan Facility covered by the interest rate swap agreements, comprised of 1.70% plus a spread of 2.00% (see Note 12, Debt). The Company records its interest rate swaps in its Consolidated Balance Sheets at fair value, based on projections of cash flows and future interest rates. The determination of fair value includes the consideration of any credit valuation adjustments necessary, giving consideration to the creditworthiness of the respective counterparties and the Company. The following table presents the balance sheet location and fair value of the interest rate swaps as of September 28, 2019 and December 29, 2018 : Fair Value Balance Sheet Location September 28, 2019 December 29, 2018 Derivatives designated as hedging instruments Interest rate swaps Other current assets $ — $ 8 Interest rate swaps Other assets — 11 Total assets — 19 Interest rate swaps Other long-term liabilities 2 — Net position $ 2 $ 19 Gains and losses on the interest rate swaps are initially recorded in accumulated o ther comprehensive loss and reclassified to interest expense during the period in which the hedged transaction affects income. The following table presents the effect of the Company’s interest rate swaps in its Consolidated Statements of Comprehensive Income f or the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018 : Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Amounts Reclassified from Accumulated Other Comprehensive Loss Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Income, net of tax For the 13 weeks ended September 28, 2019 Interest rate swaps $ — Interest expense—net $ (1 ) For the 13 weeks ended September 29, 2018 Interest rate swaps $ 2 Interest expense—net $ (1 ) For the 39 weeks ended September 28, 2019 Interest rate swaps $ (11 ) Interest expense—net $ (4 ) For the 39 weeks ended September 29, 2018 Interest rate swaps $ 14 Interest expense—net $ (1 ) During the next twelve months, the Company estimates that a de minimis amount will be reclassified from accumulated other comprehensive loss to income. Other Fair Value Measurements The carrying value of cash, restricted cash, accounts receivable, cash overdraft liability, accounts payable and accrued expenses approximate their fair values due to their short-term maturities. The fair value of the Company’s total debt approximated its carrying value of $4.9 billion and $3.5 billion as of September 28, 2019 and December 29, 2018 , respectively. The fair value of the Company’s 5.88% unsecured Senior Notes due June 15, 2024 (the “Senior Notes”), was $0.6 billion as of both September 28, 2019 and December 29, 2018 |
Debt
Debt | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consisted of the following: Debt Description Maturity Interest Rate as of September 28, 2019 September 28, 2019 December 29, 2018 ABL Facility May 31, 2024 3.48% $ 138 $ 81 (1) ABS Facility September 21, 2022 2.98% 215 275 (2) Initial Term Loan Facility (net of $5 of June 27, 2023 4.11% 2,129 2,145 Incremental Term Loan Facility (net of $36 of September 13, 2026 4.04% 1,464 — Senior Notes (net of $5 of unamortized June 15, 2024 5.88% 595 595 Obligations under financing leases 2019–2026 2.00% - 6.17% 375 352 Other debt 2021–2031 5.75% - 9.00% 8 9 Total debt 4,924 3,457 Current portion of long-term debt (136 ) (106 ) Long-term debt $ 4,788 $ 3,351 (1) Consists of outstanding borrowings under our former asset based senior secured revolving credit facility, which was refinanced with a new facility in May 2019 (as described below). (2) Consists of outstanding borrowings under the ABS Facility prior to its refinancing in September 2019 (as described below). At September 28, 2019 , after considering interest rate swaps that fixed the interest rate on $733 million of principal of the Initial Term Loan Facility described below, approximately 65% of the Company’s total debt was at a floating rate. ABL Facility —On May 31, 2019, USF completed a refinancing of its asset based senior secured revolving credit facility with a new asset based senior secured revolving credit facility (the “ABL Facility”). The ABL Facility provides USF with loan commitments having a maximum aggregate principal amount of $1,700 million , comprised of (1) $1,400 million of commitments effective as of May 31, 2019 and (2) $300 million of commitments that may become effective, at USF's election, at any time on or prior to November 30, 2019. The ABL Facility includes subfacilities for the issuance of up to $800 million of letters of credit and up to $170 million of swing line loans. Extensions of credit under the ABL Facility are subject to availability under a “borrowing base” comprised of various percentages of the value of certain eligible accounts receivable, inventory, transportation equipment and cash and cash equivalents, which also serve as collateral for borrowings under the ABL Facility. Borrowings under the ABL Facility bear interest, at USF's periodic election, at a rate equal to the sum of an alternative base rate (“ABR”), as defined under the ABL Facility, plus a margin ranging from 0% to 0.50% , or the sum of a London Interbank Offered Rate (“LIBOR”) plus a margin ranging from 1.00% to 1.50% , in each case based on USF’s excess availability under the ABL Facility. The margin under the ABL Facility as of September 28, 2019 was 0.25% for ABR loans and 1.25% for LIBOR loans. The ABL Facility also carries a commitment fee of 0.25% per annum on the average unused amount of the commitments under the ABL Facility. The ABL Facility is scheduled to mature on May 31, 2024, subject to a springing maturity date in the event that more than $300 million of aggregate principal amount of indebtedness under the Initial Term Loan Facility, the Incremental Term Loan Facility or the Senior Notes remains outstanding on a date that is 60 days prior to the maturity date for the Initial Term Loan Facility, the Incremental Term Loan Facility or the Senior Notes, respectively. The ABL Facility is secured by certain designated receivables not pledged under the ABS Facility, as well as inventory and certain transportation equipment owned by USF. Additionally, lenders under the ABL Facility have a second priority interest in all of the capital stock of USF and its domestic subsidiaries, as defined under the ABL Facility, and substantially all other non-real estate assets of USF and its subsidiaries not pledged under the ABS Facility. The Company incurred $4 million of lender fees and third-party costs in connection with the ABL Facility refinancing which were capitalized as deferred financing costs. These deferred financing costs, along with $1 million of unamortized deferred financing costs related to the former asset based senior secured revolving credit facility, will be amortized through May 31, 2024, the ABL Facility maturity date. As of September 28, 2019 , USF had $138 million of outstanding borrowings, and had issued letters of credit totaling $300 million , under the ABL Facility. Outstanding letters of credit included: (1) $230 million issued in favor of certain commercial insurers to secure USF’s obligations with respect to its self-insurance program, (2) $69 million issued to secure USF’s obligations with respect to certain real estate leases, and (3) $1 million issued for other obligations. There was available capacity under the ABL Facility of $962 million as of September 28, 2019 . ABS Facility —On September 20, 2019, USF completed a refinancing of the ABS Facility. The maximum borrowing capacity under the ABS Facility is $800 million . As of September 28, 2019 , USF had $215 million of outstanding borrowings under the ABS Facility. The Company, at its option, can request additional borrowings up to the maximum commitment, provided sufficient eligible receivables are available as collateral. There was available capacity under the ABS Facility of $570 million as of September 28, 2019 . The ABS Facility bears interest at LIBOR plus a margin of 0.95% , and carries an unused commitment fee of 0.35% or 0.45% based on USF's utilization of the ABS Facility. The ABS Facility is scheduled to mature on September 21, 2022. The Company incurred $1 million of lender fees and third-party costs in connection with the ABS Facility refinancing, which were capitalized as deferred financing costs and will be amortized through September 21, 2022, the ABS Facility maturity date. Term Loan Facilities The Term Loan Credit Agreement, dated as of May 11, 2011 (as amended, the “Term Loan Credit Agreement’), provides USF with a senior secured term loan (the "Initial Term Loan Facility") and the right to request incremental senior secured term loan commitments. Initial Term Loan Facility The Initial Term Loan Facility had an outstanding balance of $2.1 billion as of September 28, 2019 . The table above reflects the interest rate on the unhedged portion of the Initial Term Loan Facility as of September 28, 2019 . The effective interest rate of the portion of the Initial Term Loan Facility subject to interest rate hedging agreements was 3.70% as of September 28, 2019 . Incremental Term Loan Facility USF entered into a new incremental term loan in an aggregate principal amount of $1.5 billion under the Term Loan Credit Agreement (the “Incremental Term Loan Facility”) to finance a portion of the purchase price for its acquisition of the Food Group. Borrowings under the Incremental Term Loan Facility bear interest at a rate per annum equal to, at USF’s option, either the sum of LIBOR plus a margin of 2.00% , or the sum of a base rate plus a margin of 1.00% . The Incremental Term Loan Facility amortizes in equal quarterly installments at a rate per annum (expressed as a percentage of the original principal amount) of 1.00% , subject to customary adjustments in the event of any prepayment, with the balance due upon maturity. Principal repayments of $3.8 million are payable quarterly, with the balance due at maturity. The Incremental Term Loan Facility is scheduled to mature on September 13, 2026. Borrowings under the Incremental Term Loan Facility may be voluntarily prepaid without penalty or premium, other than customary breakage costs related to prepayments of LIBOR-based borrowings and a 1.00% premium in the case of any “repricing transaction” within six months of the closing date. The Incremental Term Loan Facility may require mandatory repayments if certain assets are sold. USF’s obligations under the Incremental Term Loan Facility are guaranteed by certain of USF’s subsidiaries, and those obligations and guarantees are secured by all the capital stock of USF and its subsidiaries and substantially all the non-real estate assets of USF and certain of its subsidiaries not pledged under the ABS Facility. Restrictive Covenants USF's credit agreements and indentures contain customary covenants. These include, among other things, covenants that restrict USF’s ability to incur certain additional indebtedness, create or permit liens on assets, pay dividends, or engage in mergers or consolidations. As of September 28, 2019 , USF had $1.2 billion of restricted payment capacity under these covenants, and approximately $2.4 billion of its net assets were restricted considering the net deferred tax assets and intercompany balances that eliminate in consolidation |
Restructuring Liabilities
Restructuring Liabilities | 9 Months Ended |
Sep. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Liabilities | RESTRUCTURING LIABILITIES The Company periodically closes or consolidates distribution facilities and implements initiatives in its ongoing efforts to reduce costs and improve operating effectiveness. In connection with these activities, the Company may incur various costs including multiemployer pension withdrawal liabilities, severance and other employee separation costs. Net restructuring costs were de minimis during the 39 weeks ended September 28, 2019 and $1 million during the 39 weeks ended September 29, 2018 . Net r estructuring liabilities were $1 million and $2 million as of September 28, 2019 and December 29, 2018 , respectively. |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Operating leases | LEASES The Company leases certain distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The Company determines if an arrangement is a lease at inception and recognizes a financing or operating lease liability and right-of-use (“ROU”) asset in the Company’s Consolidated Balance Sheets. ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. For the Company’s leases that do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The lease terms may include options to extend, terminate or buy out the lease. When it is reasonably certain that the Company will exercise these options, they are included in ROU assets and the estimated lease liabilities. Leases with an initial term of 12 months or less are not recorded in the Company's Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. For office and warehouse equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. The following table presents the location of the ROU assets and lease liabilities in the Company’s Consolidated Balance Sheet as of September 28, 2019 : Leases Consolidated Balance Sheet Location September 28, 2019 Assets Operating Other assets $ 136 Financing Property and equipment-net (1) 353 Total leased assets $ 489 Liabilities Current: Operating Accrued expenses and other current liabilities $ 37 Financing Current portion of long-term debt 99 Noncurrent: Operating Other long-term liabilities 126 Financing Long-term debt 276 Total lease liabilities $ 538 (1) Financing lease assets are recorded net of accumulated amortization of $257 million as of September 28, 2019 . T he following table presents the location of lease costs in the Company's Consolidated Statement of Comprehensive Income: 13 Weeks Ended 39 Weeks Ended Lease Cost Statement of Comprehensive Income Location September 28, 2019 September 28, 2019 Operating lease cost Distribution, selling and administrative costs $ 7 $ 21 Financing lease cost: Amortization of leased assets Distribution, selling and administrative costs 21 60 Interest on lease liabilities Interest expense-net 3 9 Variable lease cost Distribution, selling and administrative costs 2 5 Net lease cost $ 33 $ 95 Future lease payments under lease agreements as of September 28, 2019 were as follows: Maturity of Lease Liabilities Operating Leases Financing Leases Total Remainder of 2019 $ 11 $ 34 $ 45 2020 47 105 152 2021 39 83 122 2022 34 60 94 2023 29 57 86 2024 7 40 47 After 2024 25 26 51 Total lease payments 192 405 597 Less amount representing interest (29 ) (30 ) (59 ) Present value of lease liabilities $ 163 $ 375 $ 538 Future minimum lease payments in effect as of December 29, 2018 under noncancelable lease arrangements, as determined prior to the adoption of Topic 842, were as follows: Future Minimum Lease Payments (1) Operating Leases Financing Leases Total 2019 $ 34 $ 95 $ 129 2020 34 84 118 2021 30 71 101 2022 27 54 81 2023 23 43 66 After 2023 7 38 45 Total lease payments 155 385 540 Less amount representing interest (4 ) (33 ) (37 ) Present value of minimum lease payments $ 151 $ 352 $ 503 (1) Information in this table has been conformed to the current year presentation under Topic 842. Other information related to lease agreements for the 39 weeks ended September 28, 2019 was as follows: 39 Weeks Ended Cash Paid For Amounts Included In Measurement of Liabilities September 28, 2019 Operating cash flows from operating leases $ 24 Operating cash flows from financing leases 9 Financing cash flows from financing leases 49 Lease Term and Discount Rate September 28, 2019 Weighted-average remaining lease term (years): Operating leases 5.80 Financing leases 5.30 Weighted-average discount rate: Operating leases 4.6 % Financing leases 3.5 % |
Finance leases | LEASES The Company leases certain distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The Company determines if an arrangement is a lease at inception and recognizes a financing or operating lease liability and right-of-use (“ROU”) asset in the Company’s Consolidated Balance Sheets. ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. For the Company’s leases that do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The lease terms may include options to extend, terminate or buy out the lease. When it is reasonably certain that the Company will exercise these options, they are included in ROU assets and the estimated lease liabilities. Leases with an initial term of 12 months or less are not recorded in the Company's Consolidated Balance Sheets. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. For office and warehouse equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. The following table presents the location of the ROU assets and lease liabilities in the Company’s Consolidated Balance Sheet as of September 28, 2019 : Leases Consolidated Balance Sheet Location September 28, 2019 Assets Operating Other assets $ 136 Financing Property and equipment-net (1) 353 Total leased assets $ 489 Liabilities Current: Operating Accrued expenses and other current liabilities $ 37 Financing Current portion of long-term debt 99 Noncurrent: Operating Other long-term liabilities 126 Financing Long-term debt 276 Total lease liabilities $ 538 (1) Financing lease assets are recorded net of accumulated amortization of $257 million as of September 28, 2019 . T he following table presents the location of lease costs in the Company's Consolidated Statement of Comprehensive Income: 13 Weeks Ended 39 Weeks Ended Lease Cost Statement of Comprehensive Income Location September 28, 2019 September 28, 2019 Operating lease cost Distribution, selling and administrative costs $ 7 $ 21 Financing lease cost: Amortization of leased assets Distribution, selling and administrative costs 21 60 Interest on lease liabilities Interest expense-net 3 9 Variable lease cost Distribution, selling and administrative costs 2 5 Net lease cost $ 33 $ 95 Future lease payments under lease agreements as of September 28, 2019 were as follows: Maturity of Lease Liabilities Operating Leases Financing Leases Total Remainder of 2019 $ 11 $ 34 $ 45 2020 47 105 152 2021 39 83 122 2022 34 60 94 2023 29 57 86 2024 7 40 47 After 2024 25 26 51 Total lease payments 192 405 597 Less amount representing interest (29 ) (30 ) (59 ) Present value of lease liabilities $ 163 $ 375 $ 538 Future minimum lease payments in effect as of December 29, 2018 under noncancelable lease arrangements, as determined prior to the adoption of Topic 842, were as follows: Future Minimum Lease Payments (1) Operating Leases Financing Leases Total 2019 $ 34 $ 95 $ 129 2020 34 84 118 2021 30 71 101 2022 27 54 81 2023 23 43 66 After 2023 7 38 45 Total lease payments 155 385 540 Less amount representing interest (4 ) (33 ) (37 ) Present value of minimum lease payments $ 151 $ 352 $ 503 (1) Information in this table has been conformed to the current year presentation under Topic 842. Other information related to lease agreements for the 39 weeks ended September 28, 2019 was as follows: 39 Weeks Ended Cash Paid For Amounts Included In Measurement of Liabilities September 28, 2019 Operating cash flows from operating leases $ 24 Operating cash flows from financing leases 9 Financing cash flows from financing leases 49 Lease Term and Discount Rate September 28, 2019 Weighted-average remaining lease term (years): Operating leases 5.80 Financing leases 5.30 Weighted-average discount rate: Operating leases 4.6 % Financing leases 3.5 % |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS The Company has defined benefit and defined contribution retirement plans for its employees and provides certain postretirement health and welfare benefits to eligible retirees and their dependents. The components of net periodic pension benefit costs (credits) for Company sponsored defined benefit plans were as follows: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Components of net periodic pension benefit costs (credits) Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 10 10 28 28 Expected return on plan assets (13 ) (13 ) (37 ) (39 ) Amortization of net loss 1 — 3 2 Settlements 3 — 3 — Net periodic pension benefit costs (credits) $ 2 $ (2 ) $ (1 ) $ (7 ) Other postretirement net periodic benefit costs were de minimis for both the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018 . The service cost component of net periodic pension benefit credits is included in distribution, selling and administrative costs, while the other components of net periodic pension benefit credits are included in other expense (income)—net, respectively, in the Company's Consolidated Statements of Comprehensive Income. In the third quarter of 2019, the Company amended its defined benefit plan to offer certain terminated plan participants with vested benefits the opportunity to elect to receive an immediate lump sum payment. In addition, the Company intends to spin-off certain active participants with small accrued benefits and retirees into a separate plan and terminate that plan in order to allow those participants the ability to receive an immediate lump sum payout, with any remaining liabilities transferring to an insurance company through the purchase by the Company of an annuity contract. Estimated pension obligation settlement payments related to these transactions of approximately $75 million will be paid from pension plan assets through a combination of lump sum payments and purchased annuities. The Company expects to incur non-cash settlement charges of approximately $19 million in fiscal year 2019, including approximately $16 million in the fourth quarter when the settlements in connection with these transactions are expected to be paid. The $3 million of settlement charges incurred during the third quarter of fiscal year 2019 relate to ordinary course lump sum payment elections as provided under the current plan. Settlement charges are included in other expense (income)—net in the Company's Consolidated Statements of Comprehensive Income. The Company does not expect to make a significant contribution to its Company sponsored defined benefit plans in fiscal year 2019 . Certain employees are eligible to participate in the Company's 401(k) savings plan. The Company made employer matching contributions to the 401(k) plan of $13 million and $11 million for the 13 weeks ended September 28, 2019 and September 29, 2018 , respectively, and $38 million and $36 million for the 39 weeks ended September 28, 2019 and September 29, 2018 , respectively. The Company is also required to contribute to various multiemployer pension plans under certain of its collective bargaining agreements. The Company’s contributions to these plans were $10 million and $9 million for the 13 weeks ended September 28, 2019 and September 29, 2018 , respectively, and $28 million and $27 million for the 39 weeks ended September 28, 2019 and September 29, 2018 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | EARNINGS PER SHARE The Company computes EPS in accordance with ASC 260, Earnings per Share . Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding. Diluted EPS is computed using the weighted average number of shares of common stock, plus the effect of potentially dilutive securities. Stock options, non-vested restricted shares with forfeitable dividend rights, restricted stock units, and employee stock purchase plan deferrals are considered potentially dilutive securities. The following table sets forth the computation of basic and diluted EPS: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Numerator: Income from continuing operations $ 105 $ 114 $ 292 $ 307 Income from discontinued operations 1 — 1 — Net income $ 106 $ 114 $ 293 $ 307 Denominator: Weighted-average common shares outstanding 218 217 218 216 Dilutive effect of share-based awards 2 1 1 2 Weighted-average dilutive shares outstanding 220 218 219 218 Basic earnings per share: Continuing operations $ 0.48 $ 0.53 $ 1.33 $ 1.42 Discontinued operations 0.01 — 0.01 — Net income per share $ 0.49 $ 0.53 $ 1.34 $ 1.42 Diluted earnings per share: Continuing operations $ 0.47 $ 0.52 $ 1.33 $ 1.41 Discontinued operations 0.01 — 0.01 — Net income per share $ 0.48 $ 0.52 $ 1.34 $ 1.41 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents changes in accumulated other comprehensive loss by component for the periods presented: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Accumulated other comprehensive loss components Retirement benefit obligations: Balance as of beginning of period (1) $ (95 ) $ (77 ) $ (97 ) $ (103 ) Reclassification adjustments: Amortization of net loss (2) (3) 1 — 3 2 Settlements (2)(3) 3 — 3 — Pension remeasurement (4) — — — 33 Total before income tax 4 — 6 35 Income tax provision 1 — 1 9 Current period comprehensive income, net of tax 3 — 5 26 Balance as of end of period (1) $ (92 ) $ (77 ) $ (92 ) $ (77 ) Interest rate swaps: Balance as of beginning of period (1) $ (1 ) $ 20 $ 13 $ 8 Change in fair value of interest rate swaps (1 ) 3 (15 ) 20 Amounts reclassified to interest expense—net (1 ) (1 ) (5 ) (1 ) Total before income tax (2 ) 2 (20 ) 19 Income tax (benefit) provision (1 ) — (5 ) 5 Current period comprehensive (loss) income, net of tax (1 ) 2 (15 ) 14 Balance as of end of period (1) $ (2 ) $ 22 $ (2 ) $ 22 Accumulated other comprehensive loss as of end of period (1) $ (94 ) $ (55 ) $ (94 ) $ (55 ) (1) Amounts are presented net of tax. (2) Included in the computation of net periodic benefit costs. See Note 15, Retirement Plans, for additional information. (3) Included in other expense (income)—net in the Consolidated Statements of Comprehensive Income. (4) Resulting from a $35 million incremental contribution to the Company's defined benefit pension plan in fiscal year 2018. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | INCOME TAXES The determination of the Company’s overall effective income tax rate requires the use of estimates. The effective income tax rate reflects the income earned and taxed in various United States federal and state jurisdictions based on enacted tax law, permanent differences between book and tax items, tax credits and the Company’s change in relative income in each jurisdiction. The Company estimated its annual effective income tax rate for the full fiscal year and applied the annual effective income tax rate to the results of the 39 weeks ended September 28, 2019 and September 29, 2018 for purposes of determining its year-to-date tax provision. For the 13 weeks ended September 28, 2019 , the Company's effective income tax rate of 27% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax expense of $2 million primarily related to a change in valuation allowance. For the 13 weeks ended September 29, 2018 , the Company's effective income tax rate of 19% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $4 million primarily related to the adjustments finalizing provisional amounts recorded as of December 30, 2017 in connection with the reduction of the federal corporate income tax rate under the Tax Act and a tax benefit of $4 million primarily related to the reduction of an unrecognized tax benefit due to the receipt of an affirmative written consent from the Internal Revenue Service (the "IRS") to change a method of accounting. For the 39 weeks ended September 28, 2019 , the Company's effective income tax rate of 25% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $3 million primarily related to excess tax benefits associated with share-based compensation. For the 39 weeks ended September 29, 2018 , the Company's effective income tax rate of 16% differed from the 21% federal corporate income tax rate primarily as a result of state income taxes and the recognition of various discrete tax items. These discrete tax items included a tax benefit of $21 million primarily related to the reduction of an unrecognized tax benefit due to the receipt of an affirmative written consent from the IRS to change a method of accounting, a tax benefit of $6 million primarily related to excess tax benefits associated with share-based compensation and a tax benefit of $8 million primarily related to the adjustments finalizing provisional amounts recorded as of December 30, 2017 in connection with the reduction of the federal corporate income tax rate under the Tax Act. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Commitments —The Company enters into purchase orders with vendors and other parties in the ordinary course of business and has a limited number of purchase contracts with certain vendors that require it to buy a predetermined volume of products. As of September 28, 2019 , the Company had $959 million of purchase orders and purchase contract commitments to be purchased in the remainder of fiscal year 2019 and $55 million of information technology commitments through May 2024 that are not recorded in the Company's Consolidated Balance Sheets. To minimize fuel cost risk, the Company enters into forward purchase commitments for a portion of its projected diesel fuel requirements. As of September 28, 2019 , the Company had diesel fuel forward purchase commitments totaling $106 million through February 2021 . Additionally, as of September 28, 2019 , the Company had electricity forward purchase commitments totaling $5 million through December 2021 . The Company does not measure its forward purchase commitments for fuel and electricity at fair value, as the amounts under contract meet the physical delivery criteria in the normal purchase exception. Legal Proceedings —The Company is subject to a number of legal proceedings arising in the normal course of business. These legal proceedings, whether pending, threatened or unasserted, if decided adversely to or settled by the Company, may result in liabilities material to its financial position, results of operations, or cash flows. The Company has recognized provisions with respect to the proceedings, where appropriate, in its Consolidated Balance Sheets. It is possible that the Company could be required to make expenditures, in excess of the established provisions, in amounts that cannot be reasonably estimated. However, the Company believes that the ultimate resolution of these proceedings will not have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
Business Information
Business Information | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Business information | BUSINESS INFORMATION The Company’s consolidated results represent the operating results of its one business segment based on how the Company’s chief operating decision maker, the Chief Executive Officer, views the business for purposes of evaluating performance and making operating decisions. The Company markets and distributes fresh, frozen and dry food and non-food products to foodservice customers throughout the United States. The Company uses a centralized management structure, and its strategies and initiatives are implemented and executed consistently across the organization to maximize value to the organization as a whole. The Company uses shared resources for sales, procurement, and general and administrative activities across each of its distribution facilities and operations. The Company’s distribution facilities form a single network to reach its customers; it is common for a single customer to make purchases from several different distribution facilities. Capital projects, whether for cost savings or generating incremental revenue, are evaluated based on estimated economic returns to the organization as a whole. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement, Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income . This new guidance permits an entity to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) on items within accumulated other comprehensive income to retained earnings. The Company adopted this guidance as of the beginning of fiscal year 2019 and elected not to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which supersedes Accounting Standards Codification (“ASC”) 840 , Leases, and has issued subsequent amendments to Topic 842. The Company adopted Topic 842 on December 30, 2018, the effective and initial application date, using the modified retrospective approach. The Company elected from the package of practical expedients permitted under the transition guidance within Topic 842, which, among other things, allowed the Company to carry forward the historical lease classification. Adoption of Topic 842 resulted in the recording of additional net lease assets and lease liabilities of approximately $100 million , as of December 30, 2018. The initial adoption of Topic 842 did not materially impact the Company’s Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows. The Company has revised its relevant policies and procedures, as applicable, to meet the new accounting, reporting and disclosure requirements of Topic 842. See Note 14, Leases. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, 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 , which provides new guidance on the accounting for implementation, set-up, and other upfront costs incurred in a hosted cloud computing arrangement. Under the new guidance, entities will apply the same criteria for capitalizing implementation costs as they would for an internal-use software license arrangement. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. This ASU can be adopted prospectively to eligible costs incurred on or after the date of adoption or retrospectively. The Company does not expect the adoption of the guidance under the new standard to materially affect its financial position or results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to use a forward looking, expected loss model to estimate credit losses. It also requires additional disclosure related to credit quality of trade and other receivables, including information related to management’s estimate of credit allowances. ASU 2016-13 was further amended in November 2018 by ASU 2018-19, Codification Improvements to Topic 236, Financial Instrument-Credit Losses. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption of the provisions of the new standard to materially affect its financial position or results of operations. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue by principal product categories | The following table presents the disaggregation of revenue for each of the Company’s principal product categories: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Meats and seafood $ 2,352 $ 2,198 $ 6,849 $ 6,484 Dry grocery products 1,100 1,070 3,254 3,181 Refrigerated and frozen grocery products 1,054 979 3,076 2,896 Dairy 689 646 1,955 1,906 Equipment, disposables and supplies 628 594 1,822 1,722 Beverage products 352 337 1,029 991 Produce 356 329 1,020 954 Net sales $ 6,531 $ 6,153 $ 19,005 $ 18,134 |
Business Acquisitions Busines_2
Business Acquisitions Business Acquisitions (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation recognized for the acquisition based on preliminary estimates of the fair value of the assets acquired and the liabilities assumed. The allocation is dependent upon certain valuation and other analyses and studies that have not yet been completed. Accordingly, the preliminary purchase price allocation is subject to further adjustment as additional information becomes available and final valuations are completed. There can be no assurances that these final valuations and additional analyses and studies will not result in significant changes to the preliminary estimates of fair value set forth below. Preliminary Purchase Price Allocation Accounts receivable $ 145 Inventories 166 Assets of discontinued operations 142 Other current assets 7 Property and equipment 200 Goodwill (1) 761 Other intangibles (2) 691 Other assets 47 Accounts payable (200 ) Accrued expenses and other current liabilities (61 ) Liabilities of discontinued operations (27 ) Other long-term liabilities, including financing leases (42 ) Cash paid for acquisition $ 1,829 (1) Goodwill recognized is primarily attributable to expected synergies from the combined company, as well as intangible assets that do not qualify for separate recognition. The acquired goodwill is deductible for U.S. federal income tax purposes. (2) Other intangible assets consist of customer relationships of $652 million with estimated useful lives of 15 years and indefinite-lived brand names and trademarks of $39 million . |
Pro Forma Information | The following table presents the Company’s unaudited pro forma consolidated net sales, net income and earnings per share (“EPS”) for the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018, respectively. The unaudited pro forma financial information includes the historical results of operations of the Company and the Food Group, giving effect to the acquisition and related financing as if they had occurred as of December 31, 2017, which was the first day of the Company’s fiscal year 2018. 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Pro forma net sales $ 7,195 $ 6,907 $ 21,086 $ 20,265 Pro forma net income $ 123 $ 120 $ 305 $ 294 Pro forma earnings per share: Basic $ 0.56 $ 0.55 $ 1.40 $ 1.36 Diluted $ 0.56 $ 0.55 $ 1.39 $ 1.35 |
Divested Entities Pro Forma Information | The unaudited pro forma financial information for all periods presented above excludes the results of operations related to the Divested Assets, as the results of operations related to the Divested Assets are reflected as discontinued operations. Unaudited net sales, net income and EPS related to the Divested Assets for the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018, respectively, are as follows: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Pro forma net sales $ 114 $ 136 $ 372 $ 390 Pro forma net income $ 3 $ 4 $ 6 $ 8 Pro forma earnings per share: Basic $ 0.02 $ 0.02 $ 0.03 $ 0.04 Diluted $ 0.01 $ 0.02 $ 0.03 $ 0.04 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | RESTRICTED CASH Restricted cash primarily consists of cash on deposit with financial institutions as collateral for certain letters of credit. Cash, cash equivalents and restricted cash as presented in the Company's Consolidated Statements of Cash Flows as of September 28, 2019 and December 29, 2018 consisted of the following: September 28, 2019 December 29, 2018 Cash and cash equivalents $ 90 $ 104 Restricted cash—included in other assets 8 1 Total cash, cash equivalents and restricted cash $ 98 $ 105 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets held for sale | The change in assets held for sale for the 39 weeks ended September 28, 2019 was as follows: Balance as of December 29, 2018 $ 7 Assets sold (6 ) Balance as of September 28, 2019 $ 1 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangibles, Net | Goodwill and other intangibles—net consisted of the following: September 28, 2019 December 29, 2018 Goodwill $ 4,728 $ 3,967 Other intangibles—net Customer relationships—amortizable: Gross carrying amount $ 806 $ 154 Accumulated amortization (116 ) (85 ) Net carrying value 690 69 Noncompete agreements—amortizable: Gross carrying amount 3 3 Accumulated amortization (2 ) (1 ) Net carrying value 1 2 Brand names and trademarks—not amortizing 292 253 Total other intangibles—net $ 983 $ 324 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis as of September 28, 2019 and December 29, 2018 , aggregated by the level in the fair value hierarchy within which those measurements fall, were as follows: September 28, 2019 Level 1 Level 2 Level 3 Total Liabilities Interest rate swaps $ — $ 2 $ — $ 2 December 29, 2018 Level 1 Level 2 Level 3 Total Assets Money market funds $ 1 $ — $ — $ 1 Interest rate swaps — 19 — 19 $ 1 $ 19 $ — $ 20 |
Schedule of Balance Sheet Location and Fair Value of Company’s Interest Rate Swaps | The following table presents the balance sheet location and fair value of the interest rate swaps as of September 28, 2019 and December 29, 2018 : Fair Value Balance Sheet Location September 28, 2019 December 29, 2018 Derivatives designated as hedging instruments Interest rate swaps Other current assets $ — $ 8 Interest rate swaps Other assets — 11 Total assets — 19 Interest rate swaps Other long-term liabilities 2 — Net position $ 2 $ 19 |
Schedule of Effect of Company Interest Rate Swaps in Consolidated Statement of Comprehensive Income | The following table presents the effect of the Company’s interest rate swaps in its Consolidated Statements of Comprehensive Income f or the 13 weeks and 39 weeks ended September 28, 2019 and September 29, 2018 : Derivatives in Cash Flow Hedging Relationships Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Amounts Reclassified from Accumulated Other Comprehensive Loss Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Income, net of tax For the 13 weeks ended September 28, 2019 Interest rate swaps $ — Interest expense—net $ (1 ) For the 13 weeks ended September 29, 2018 Interest rate swaps $ 2 Interest expense—net $ (1 ) For the 39 weeks ended September 28, 2019 Interest rate swaps $ (11 ) Interest expense—net $ (4 ) For the 39 weeks ended September 29, 2018 Interest rate swaps $ 14 Interest expense—net $ (1 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Components of total debt | Total debt consisted of the following: Debt Description Maturity Interest Rate as of September 28, 2019 September 28, 2019 December 29, 2018 ABL Facility May 31, 2024 3.48% $ 138 $ 81 (1) ABS Facility September 21, 2022 2.98% 215 275 (2) Initial Term Loan Facility (net of $5 of June 27, 2023 4.11% 2,129 2,145 Incremental Term Loan Facility (net of $36 of September 13, 2026 4.04% 1,464 — Senior Notes (net of $5 of unamortized June 15, 2024 5.88% 595 595 Obligations under financing leases 2019–2026 2.00% - 6.17% 375 352 Other debt 2021–2031 5.75% - 9.00% 8 9 Total debt 4,924 3,457 Current portion of long-term debt (136 ) (106 ) Long-term debt $ 4,788 $ 3,351 (1) Consists of outstanding borrowings under our former asset based senior secured revolving credit facility, which was refinanced with a new facility in May 2019 (as described below). (2) Consists of outstanding borrowings under the ABS Facility prior to its refinancing in September 2019 (as described below). |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Components of leases | The following table presents the location of the ROU assets and lease liabilities in the Company’s Consolidated Balance Sheet as of September 28, 2019 : Leases Consolidated Balance Sheet Location September 28, 2019 Assets Operating Other assets $ 136 Financing Property and equipment-net (1) 353 Total leased assets $ 489 Liabilities Current: Operating Accrued expenses and other current liabilities $ 37 Financing Current portion of long-term debt 99 Noncurrent: Operating Other long-term liabilities 126 Financing Long-term debt 276 Total lease liabilities $ 538 (1) Financing lease assets are recorded net of accumulated amortization of $257 million as of September 28, 2019 . T he following table presents the location of lease costs in the Company's Consolidated Statement of Comprehensive Income: 13 Weeks Ended 39 Weeks Ended Lease Cost Statement of Comprehensive Income Location September 28, 2019 September 28, 2019 Operating lease cost Distribution, selling and administrative costs $ 7 $ 21 Financing lease cost: Amortization of leased assets Distribution, selling and administrative costs 21 60 Interest on lease liabilities Interest expense-net 3 9 Variable lease cost Distribution, selling and administrative costs 2 5 Net lease cost $ 33 $ 95 |
Schedule of Future Operating Lease Payments | Future lease payments under lease agreements as of September 28, 2019 were as follows: Maturity of Lease Liabilities Operating Leases Financing Leases Total Remainder of 2019 $ 11 $ 34 $ 45 2020 47 105 152 2021 39 83 122 2022 34 60 94 2023 29 57 86 2024 7 40 47 After 2024 25 26 51 Total lease payments 192 405 597 Less amount representing interest (29 ) (30 ) (59 ) Present value of lease liabilities $ 163 $ 375 $ 538 |
Schedule of Future Finance Lease Payments | Future lease payments under lease agreements as of September 28, 2019 were as follows: Maturity of Lease Liabilities Operating Leases Financing Leases Total Remainder of 2019 $ 11 $ 34 $ 45 2020 47 105 152 2021 39 83 122 2022 34 60 94 2023 29 57 86 2024 7 40 47 After 2024 25 26 51 Total lease payments 192 405 597 Less amount representing interest (29 ) (30 ) (59 ) Present value of lease liabilities $ 163 $ 375 $ 538 |
Schedule of Future Capital Lease Payments Prior to 842 | Future minimum lease payments in effect as of December 29, 2018 under noncancelable lease arrangements, as determined prior to the adoption of Topic 842, were as follows: Future Minimum Lease Payments (1) Operating Leases Financing Leases Total 2019 $ 34 $ 95 $ 129 2020 34 84 118 2021 30 71 101 2022 27 54 81 2023 23 43 66 After 2023 7 38 45 Total lease payments 155 385 540 Less amount representing interest (4 ) (33 ) (37 ) Present value of minimum lease payments $ 151 $ 352 $ 503 (1) Information in this table has been conformed to the current year presentation under Topic 842. |
Schedule of Future Operating Lease Payments Prior to 842 | Future minimum lease payments in effect as of December 29, 2018 under noncancelable lease arrangements, as determined prior to the adoption of Topic 842, were as follows: Future Minimum Lease Payments (1) Operating Leases Financing Leases Total 2019 $ 34 $ 95 $ 129 2020 34 84 118 2021 30 71 101 2022 27 54 81 2023 23 43 66 After 2023 7 38 45 Total lease payments 155 385 540 Less amount representing interest (4 ) (33 ) (37 ) Present value of minimum lease payments $ 151 $ 352 $ 503 (1) Information in this table has been conformed to the current year presentation under Topic 842. |
Schedule of other information related to lease agreements | Other information related to lease agreements for the 39 weeks ended September 28, 2019 was as follows: 39 Weeks Ended Cash Paid For Amounts Included In Measurement of Liabilities September 28, 2019 Operating cash flows from operating leases $ 24 Operating cash flows from financing leases 9 Financing cash flows from financing leases 49 Lease Term and Discount Rate September 28, 2019 Weighted-average remaining lease term (years): Operating leases 5.80 Financing leases 5.30 Weighted-average discount rate: Operating leases 4.6 % Financing leases 3.5 % |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit (Credit) Costs for Pensions and Other Postretirement Benefits | The components of net periodic pension benefit costs (credits) for Company sponsored defined benefit plans were as follows: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Components of net periodic pension benefit costs (credits) Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 10 10 28 28 Expected return on plan assets (13 ) (13 ) (37 ) (39 ) Amortization of net loss 1 — 3 2 Settlements 3 — 3 — Net periodic pension benefit costs (credits) $ 2 $ (2 ) $ (1 ) $ (7 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted EPS: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Numerator: Income from continuing operations $ 105 $ 114 $ 292 $ 307 Income from discontinued operations 1 — 1 — Net income $ 106 $ 114 $ 293 $ 307 Denominator: Weighted-average common shares outstanding 218 217 218 216 Dilutive effect of share-based awards 2 1 1 2 Weighted-average dilutive shares outstanding 220 218 219 218 Basic earnings per share: Continuing operations $ 0.48 $ 0.53 $ 1.33 $ 1.42 Discontinued operations 0.01 — 0.01 — Net income per share $ 0.49 $ 0.53 $ 1.34 $ 1.42 Diluted earnings per share: Continuing operations $ 0.47 $ 0.52 $ 1.33 $ 1.41 Discontinued operations 0.01 — 0.01 — Net income per share $ 0.48 $ 0.52 $ 1.34 $ 1.41 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table presents changes in accumulated other comprehensive loss by component for the periods presented: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Accumulated other comprehensive loss components Retirement benefit obligations: Balance as of beginning of period (1) $ (95 ) $ (77 ) $ (97 ) $ (103 ) Reclassification adjustments: Amortization of net loss (2) (3) 1 — 3 2 Settlements (2)(3) 3 — 3 — Pension remeasurement (4) — — — 33 Total before income tax 4 — 6 35 Income tax provision 1 — 1 9 Current period comprehensive income, net of tax 3 — 5 26 Balance as of end of period (1) $ (92 ) $ (77 ) $ (92 ) $ (77 ) Interest rate swaps: Balance as of beginning of period (1) $ (1 ) $ 20 $ 13 $ 8 Change in fair value of interest rate swaps (1 ) 3 (15 ) 20 Amounts reclassified to interest expense—net (1 ) (1 ) (5 ) (1 ) Total before income tax (2 ) 2 (20 ) 19 Income tax (benefit) provision (1 ) — (5 ) 5 Current period comprehensive (loss) income, net of tax (1 ) 2 (15 ) 14 Balance as of end of period (1) $ (2 ) $ 22 $ (2 ) $ 22 Accumulated other comprehensive loss as of end of period (1) $ (94 ) $ (55 ) $ (94 ) $ (55 ) (1) Amounts are presented net of tax. (2) Included in the computation of net periodic benefit costs. See Note 15, Retirement Plans, for additional information. (3) Included in other expense (income)—net in the Consolidated Statements of Comprehensive Income. (4) Resulting from a $35 million incremental contribution to the Company's defined benefit pension plan in fiscal year 2018. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Detail) | 9 Months Ended |
Sep. 28, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 1 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 136 | |
Operating lease liabilities | $ 163 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease assets | $ 100 | |
Operating lease liabilities | $ 100 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 6,531 | $ 6,153 | $ 19,005 | $ 18,134 |
Meats and seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,352 | 2,198 | 6,849 | 6,484 |
Dry grocery products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,100 | 1,070 | 3,254 | 3,181 |
Refrigerated and frozen grocery products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,054 | 979 | 3,076 | 2,896 |
Dairy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 689 | 646 | 1,955 | 1,906 |
Equipment, disposables and supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 628 | 594 | 1,822 | 1,722 |
Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 352 | 337 | 1,029 | 991 |
Produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 356 | $ 329 | $ 1,020 | $ 954 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, less allowances | $ 1,548 | $ 1,347 |
Prepaid expenses | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 31 | 37 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 38 | $ 28 |
Business Acquisitions Busines_3
Business Acquisitions Business Acquisitions Other Information (Details) - USD ($) $ in Millions | Sep. 13, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Oct. 11, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 4,728 | $ 4,728 | $ 3,967 | ||||
Liabilities of discontinued operations | 27 | 27 | $ 0 | ||||
Senior secured term loan facility | Term Loan Facility B | |||||||
Business Acquisition [Line Items] | |||||||
Long-term Debt, Gross | 1,500 | 1,500 | |||||
Food Group | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 145 | 145 | |||||
Payments for acquisition | $ 1,800 | ||||||
Net sales of Food Group since acquisition | 132 | ||||||
Net income of Food Group since acquisition | 1 | ||||||
Acquisition related costs | 17 | $ 10 | 35 | $ 10 | |||
Inventories | 166 | 166 | |||||
Assets of discontinued operations | 142 | 142 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 7 | 7 | |||||
Property and equipment | 200 | 200 | |||||
Goodwill | 761 | 761 | |||||
Other intangibles | 691 | 691 | |||||
Other assets | 47 | 47 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 200 | 200 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 61 | 61 | |||||
Liabilities of discontinued operations | 27 | 27 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 42 | 42 | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 1,829 | $ 1,829 | |||||
Subsequent event | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of discontinued operations | $ 94 | ||||||
Proceeds from sale of discontinued operations, adjustment | $ 21 |
Business Acquisitions Schedule
Business Acquisitions Schedule of Business Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 4,728 | $ 3,967 |
Liabilities of discontinued operations | (27) | 0 |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Customer relationships | $ 806 | $ 154 |
Maximum | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of intangible assets (in years) | 15 years | |
Food Group | ||
Business Acquisition [Line Items] | ||
Accounts receivable | $ 145 | |
Inventories | 166 | |
Assets of discontinued operations | 142 | |
Other current assets | 7 | |
Property and equipment | 200 | |
Goodwill | 761 | |
Other intangibles | 691 | |
Other assets | 47 | |
Accounts payable | (200) | |
Accrued expenses and other current liabilities | (61) | |
Liabilities of discontinued operations | (27) | |
Other long-term liabilities, including financing leases | (42) | |
Cash paid for acquisition | 1,829 | |
Indefinite-lived trade names | 39 | |
Food Group | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Customer relationships | $ 652 | |
Food Group | Maximum | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Estimated useful lives of intangible assets (in years) | 15 years |
Business Acquisitions Busines_4
Business Acquisitions Business Acquisitions Pro Forma Information (Details) - Food Group - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Business Acquisition [Line Items] | ||||
Pro forma net sales | $ 7,195 | $ 6,907 | $ 21,086 | $ 20,265 |
Pro forma net income | $ 123 | $ 120 | $ 305 | $ 294 |
Pro forma basic earnings per share (per share) | $ 0.56 | $ 0.55 | $ 1.40 | $ 1.36 |
Pro forma diluted earnings per share (per share) | $ 0.56 | $ 0.55 | $ 1.39 | $ 1.35 |
Business Acquisitions Divested
Business Acquisitions Divested Entities Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Business Acquisition [Line Items] | ||||
Income from discontinued operations—net of tax | $ 1 | $ 0 | $ 1 | $ 0 |
Food Group | ||||
Business Acquisition [Line Items] | ||||
Divested entities pro forma diluted earnings per share (per share) | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.04 |
Divested entities pro forma basic earnings per share (per share) | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.04 |
Income from discontinued operations—net of tax | $ 3 | $ 4 | $ 6 | $ 8 |
Divested entities pro forma net sales | $ 114 | $ 136 | $ 372 | $ 390 |
Restricted Cash Restricted Cash
Restricted Cash Restricted Cash Table (Details) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 90 | $ 104 | ||
Restricted cash—included in other assets | 8 | 1 | ||
Total cash, cash equivalents and restricted cash | $ 98 | $ 105 | $ 88 | $ 119 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Inventory Disclosure [Abstract] | |||||
LIFO balance sheet reserves | $ 143 | $ 143 | $ 130 | ||
Increase (decrease) of cost of goods sold from changes in LIFO reserves | $ 1 | $ (9) | $ 13 | $ (1) |
Accounts Receivable Financing_2
Accounts Receivable Financing Program (Detail) - USD ($) $ in Billions | Sep. 28, 2019 | Dec. 29, 2018 |
ABS Facility | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 1.1 | $ 1 |
Assets Held for Sale Schedule o
Assets Held for Sale Schedule of assets held for sale (Detail) - Assets held for sale $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Movement in Property, Plant and Equipment [Roll Forward] | |
Balance as of December 29, 2018 | $ 7 |
Assets sold | (6) |
Balance as of September 28, 2019 | $ 1 |
Assets Held for Sale Assets Hel
Assets Held for Sale Assets Held for Sale - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Assets held for sale | |
Movement in Property, Plant and Equipment [Roll Forward] | |
Assets sold | $ 6 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, accumulated depreciation | $ 2,288 | $ 2,288 | $ 2,117 | ||
Depreciation expense | $ 75 | $ 75 | $ 228 | $ 220 | |
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives of assets (in years) | 3 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives of assets (in years) | 40 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) | Jul. 01, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 |
Other Intangible Assets [Line Items] | |||||
Amortization expense | $ 12,000,000 | $ 10,000,000 | $ 32,000,000 | $ 30,000,000 | |
Indefinite-lived intangible assets, impairment | $ 0 | ||||
Customer Relationships | Minimum | |||||
Other Intangible Assets [Line Items] | |||||
Estimated useful lives of intangible assets (in years) | 2 years | ||||
Customer Relationships | Maximum | |||||
Other Intangible Assets [Line Items] | |||||
Estimated useful lives of intangible assets (in years) | 15 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Goodwill and Other Intangibles, Net (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 |
Other intangibles—net | ||
Goodwill | $ 4,728 | $ 3,967 |
Total other intangibles—net | 983 | 324 |
Brand Names and Trademarks | ||
Other intangibles—net | ||
Brand names and trademarks—not amortizing | 292 | 253 |
Customer Relationships | ||
Other intangibles—net | ||
Gross carrying amount | 806 | 154 |
Accumulated amortization | (116) | (85) |
Net carrying value | 690 | 69 |
Noncompete Agreements | ||
Other intangibles—net | ||
Gross carrying amount | 3 | 3 |
Accumulated amortization | (2) | (1) |
Net carrying value | $ 1 | $ 2 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 |
Assets | ||
Money market funds | $ 1 | |
Interest rate swaps | 19 | |
Total assets | 20 | |
Interest rate swap liability | $ 2 | |
Level 1 | ||
Assets | ||
Money market funds | 1 | |
Interest rate swaps | 0 | |
Total assets | 1 | |
Interest rate swap liability | 0 | |
Level 2 | ||
Assets | ||
Money market funds | 0 | |
Interest rate swaps | 19 | |
Total assets | 19 | |
Interest rate swap liability | 2 | |
Level 3 | ||
Assets | ||
Money market funds | 0 | |
Interest rate swaps | 0 | |
Total assets | $ 0 | |
Interest rate swap liability | $ 0 | |
Senior Notes due 2024 | Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate (percent) | 5.88% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | May 31, 2019 | Aug. 01, 2017 | Sep. 28, 2019 | Dec. 29, 2018 |
Senior secured term loan facility | Term Loan Facility A | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate (percent) | 4.11% | |||
Senior secured term loan facility | Interest rate swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative term (in years) | 4 years | |||
Senior secured term loan facility | Interest rate swap | Term Loan Facility A | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative notional amount | $ 367 | $ 1,100 | $ 733 | |
Notional amount of debt hedged, fourth year | 550 | $ 825 | ||
Derivative notional amount | 733 | |||
Proceeds from interest rate swap | 1 | |||
Interest rate swap, unrealized gain | $ 1 | |||
Aggregate rate on notional amount (percent) | 3.70% | |||
Variable rate on notional amount (percent) | 1.70% | |||
Basis spread on variable rate on notional amount (percent) | 2.00% | |||
Senior notes | Unsecured Senior Notes [Member] | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes Payable, Fair Value Disclosure | $ 600 | |||
Senior notes | Senior Notes due 2024 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate (percent) | 5.88% | |||
Fair Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Approximated fair value of debt | $ 4,900 | $ 3,500 | ||
Fair Value | Senior notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Approximated fair value of debt | $ 600 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Interest Rate Swaps (Detail) - USD ($) $ in Millions | Sep. 28, 2019 | Dec. 29, 2018 |
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps | $ 19 | |
Interest rate swap liability | $ 2 | |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps | 0 | 19 |
Interest Rate Derivatives, at Fair Value, Net | 2 | 19 |
Derivatives designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps | 0 | 8 |
Derivatives designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swaps | 0 | 11 |
Derivatives designated as hedging instruments | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate swap liability | $ 2 | $ 0 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Interest Rate Swaps in Comprehensive Income (Detail) - Cash Flow Hedging - Interest rate swap - Interest expense—net - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Loss, net of tax | $ 0 | $ 2 | $ (11) | $ 14 |
Amount of Gain Reclassified from Accumulated Other Comprehensive Loss to Income, net of tax | $ (1) | $ (1) | $ (4) | $ (1) |
Debt - Schedule of Components o
Debt - Schedule of Components of Total Debt (Detail) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 4,924,000 | $ 3,457,000 |
Current portion of long-term debt | (136,000) | (106,000) |
Long-term debt | $ 4,788,000 | 3,351,000 |
ABL Facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 3.48% | |
Total debt | $ 138,000 | 81,000 |
ABS Facility | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 2.98% | |
Total debt | $ 215,000 | 275,000 |
Term Loan Facility A | Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 4.11% | |
Total debt | $ 2,129,000 | 2,145,000 |
Unamortized deferred financing costs | $ 5 | 6 |
Term Loan Facility B | Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 4.04% | |
Total debt | $ 1,464,000 | 0 |
Senior Notes due 2024 | Senior notes | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.88% | |
Total debt | $ 595,000 | 595,000 |
Unamortized deferred financing costs | 5 | 5 |
Obligations under financing leases | Lease agreements | ||
Debt Instrument [Line Items] | ||
Total debt | 375,000 | 352,000 |
Other debt | Other debt obligations | ||
Debt Instrument [Line Items] | ||
Total debt | $ 8,000 | $ 9,000 |
Minimum | Obligations under financing leases | Lease agreements | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 2.00% | |
Minimum | Other debt | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.75% | |
Maximum | Obligations under financing leases | Lease agreements | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 6.17% | |
Maximum | Other debt | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 9.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) - Interest rate swap - Senior secured term loan facility - USD ($) $ in Millions | Sep. 28, 2019 | May 31, 2019 | Aug. 01, 2017 |
Debt Instrument [Line Items] | |||
Percentage of principal amount of total debt borrowed at floating rate (percent) | 65.00% | ||
Term Loan Facility A | |||
Debt Instrument [Line Items] | |||
Derivative notional amount | $ 733 | $ 367 | $ 1,100 |
Debt - ABL Facility (Detail)
Debt - ABL Facility (Detail) - USD ($) | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | ||
Current borrowings | $ 4,924,000,000 | $ 3,457,000,000 |
Notes or loans oustanding 60 days prior to the maturity date [Member] | ||
Debt Instrument [Line Items] | ||
Notes and Loans Payable, Current | 300,000,000 | |
Revolving credit facility | ABL Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,700,000,000 | |
Line of credit facility, current borrowing capacity | 1,400,000,000 | |
Line of credit facility, future additional borrowing capacity | $ 300,000,000 | |
Unused capacity, commitment fee (percentage) | 0.25% | |
Debt issuance costs | $ 4,000,000 | |
Current borrowings | 138,000,000 | $ 81,000,000 |
Letters of credit, outstanding amount | 300,000,000 | |
Available capacity | 962,000,000 | |
Revolving credit facility | ABL Facility | Standby letters of credit for self insurance program | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 230,000,000 | |
Revolving credit facility | ABL Facility | Real estate lease obligations | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 69,000,000 | |
Revolving credit facility | ABL Facility | Other obligations | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | $ 1,000,000 | |
Revolving credit facility | ABL Facility | Alternative Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 0.25% | |
Revolving credit facility | ABL Facility | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 1.25% | |
Revolving credit facility | ABL Facility | Minimum | Alternative Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 0.00% | |
Revolving credit facility | ABL Facility | Minimum | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 1.00% | |
Revolving credit facility | ABL Facility | Maximum | Alternative Base Rate [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 0.50% | |
Revolving credit facility | ABL Facility | Maximum | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 1.50% | |
Revolving credit facility | Letter of credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, capacity available for specific purpose other than for trade purchases | $ 800,000,000 | |
Revolving credit facility | Bridge loan | ||
Debt Instrument [Line Items] | ||
Line of credit facility, capacity available for specific purpose other than for trade purchases | 170,000,000 | |
Revolving credit facility | Former ABL senior secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | $ 1,000,000 |
Debt - ABS Facility (Detail)
Debt - ABS Facility (Detail) - USD ($) | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | ||
Current borrowings | $ 4,924,000,000 | $ 3,457,000,000 |
Revolving credit facility | ABS Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 800,000,000 | |
Current borrowings | 215,000,000 | $ 275,000,000 |
Available capacity | 570,000,000 | |
Debt issuance costs | $ 1,000,000 | |
Revolving credit facility | ABS Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee (percentage) | 0.35% | |
Revolving credit facility | ABS Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee (percentage) | 0.45% | |
Revolving credit facility | ABS Facility | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Margin spread on variable rate (percent) | 0.95% |
Debt - Term Loan Agreement (Det
Debt - Term Loan Agreement (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | |
Debt Instrument [Line Items] | |||
Current borrowings | $ 4,924,000,000 | $ 4,924,000,000 | $ 3,457,000,000 |
Senior secured term loan facility | Term Loan Facility A | |||
Debt Instrument [Line Items] | |||
Current borrowings | $ 2,129,000,000 | $ 2,129,000,000 | 2,145,000,000 |
Senior secured term loan facility | Term Loan Facility A | Interest rate swap | |||
Debt Instrument [Line Items] | |||
Aggregate interest rate (percent) | 3.70% | 3.70% | |
Senior secured term loan facility | Term Loan Facility B | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Periodic Payment, Principal | $ 3,800,000 | ||
Current borrowings | 1,464,000,000 | $ 1,464,000,000 | $ 0 |
Long-term Debt, Gross | 1,500,000,000 | $ 1,500,000,000 | |
Repricing Transaction Premium Percent | 1.00% | ||
Senior secured term loan facility | Term Loan Facility B | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Margin spread on variable rate (percent) | 2.00% | ||
Senior secured term loan facility | Term Loan Facility B | Alternative Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Margin spread on variable rate (percent) | 1.00% | ||
Senior secured term loan facility | Term Loan Facility B | Amortizable Rate per Annum [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Periodic Payment, Principal | $ 0.0100 |
Debt - Restrictive Covenants (D
Debt - Restrictive Covenants (Detail) $ in Billions | Sep. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
Restricted payment capacity | $ 1.2 |
Restricted assets | $ 2.4 |
Restructuring Liabilities (Deta
Restructuring Liabilities (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges | $ 0 | $ 1 | |
Restructuring liabilities | $ 1 | $ 2 |
Leases - Balance Sheet Location
Leases - Balance Sheet Location of ROU Assets and Lease Liabilities (Detail) $ in Millions | Sep. 28, 2019USD ($) |
ASSETS | |
Operating | $ 136 |
Financing | 353 |
Total leased assets | 489 |
Current | |
Operating | 37 |
Financing | 99 |
Noncurrent: | |
Operating | 126 |
Financing | 276 |
Total lease liabilities | 538 |
Amortization of leased assets | $ 257 |
Leases - Location of Lease Cost
Leases - Location of Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 7 | $ 21 |
Amortization of leased assets | 21 | 60 |
Interest on lease liabilities | 3 | 9 |
Variable lease cost | 2 | 5 |
Net lease cost | $ 33 | $ 95 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Operating Leases | |
Remainder of 2019 | $ 11 |
2020 | 47 |
2021 | 39 |
2022 | 34 |
2023 | 29 |
2024 | 7 |
After 2024 | 25 |
Total lease payments | 192 |
Less amount representing interest | (29) |
Present value of lease liabilities | 163 |
Finance Leases | |
2019 | 34 |
2020 | 105 |
2021 | 83 |
2022 | 60 |
2023 | 57 |
2024 | 40 |
After 2024 | 26 |
Total lease payments | 405 |
Less amount representing interest | (30) |
Present value of lease liabilities | 375 |
Total | |
2019 | 45 |
2020 | 152 |
2021 | 122 |
2022 | 94 |
2023 | 86 |
2024 | 47 |
After 2024 | 51 |
Total lease payments | 597 |
Less amount representing interest | (59) |
Present value of lease liabilities | 538 |
Operating lease payments | $ 24 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments Prior to 842 (Details) $ in Millions | Dec. 29, 2018USD ($) |
Operating Leases | |
2019 | $ 34 |
2020 | 34 |
2021 | 30 |
2022 | 27 |
2023 | 23 |
After 2023 | 7 |
Total lease payments | 155 |
Less amount representing interest | (4) |
Present value of minimum lease payments | 151 |
Financing Leases | |
2019 | 95 |
2020 | 84 |
2021 | 71 |
2022 | 54 |
2023 | 43 |
After 2023 | 38 |
Total lease payments | 385 |
Less amount representing interest | (33) |
Present value of minimum lease payments | 352 |
Total | |
2019 | 129 |
2020 | 118 |
2021 | 101 |
2022 | 81 |
2023 | 66 |
After 2023 | 45 |
Total lease payments | 540 |
Less amount representing interest | (37) |
Present value of minimum lease payments | $ 503 |
Leases - Other Information Rela
Leases - Other Information Related to Lease Agreements (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Cash Paid For Amounts Included In Measurement of Liabilities | |
Operating cash flows from operating leases | $ 24 |
Operating cash flows from financing leases | 9 |
Financing cash flows from financing leases | $ 49 |
Weighted-average remaining lease term (years): | |
Operating leases | 5 years 9 months 18 days |
Financing leases | 5 years 3 months 18 days |
Weighted-average discount rate: | |
Operating leases | 4.60% |
Financing leases | 3.50% |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | 10 | 10 | 28 | 28 |
Expected return on plan assets | (13) | (13) | (37) | (39) |
Amortization of net loss | 1 | 0 | 3 | 2 |
Settlements | 3 | 0 | 3 | 0 |
Net periodic pension benefit costs (credits) | $ 2 | $ (2) | $ (1) | $ (7) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 28, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 28, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Settlements | $ 3 | $ 0 | $ 3 | $ 0 | ||
Employer matching contribution | 13 | 11 | 38 | 36 | ||
Multiemployer plan contributions | $ 10 | $ 9 | $ 28 | $ 27 | ||
Subsequent event | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Settlement payments | $ 75 | |||||
Settlements | $ 16 | $ 19 |
Schedule of Earnings Per Share
Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Numerator: | ||||||||
Income from continuing operations | $ 105 | $ 114 | $ 292 | $ 307 | ||||
Income from discontinued operations—net of tax | 1 | 0 | 1 | 0 | ||||
Net income | $ 106 | $ 116 | $ 71 | $ 114 | $ 126 | $ 67 | $ 293 | $ 307 |
Denominator: | ||||||||
Weighted-average common shares outstanding | 218 | 217 | 218 | 216 | ||||
Dilutive effect of share-based awards | 2 | 1 | 1 | 2 | ||||
Weighted-average dilutive shares outstanding | 220 | 218 | 219 | 218 | ||||
Continuing operations | $ 0.48 | $ 0.53 | $ 1.33 | $ 1.42 | ||||
Discontinued operations | 0.01 | 0 | 0.01 | 0 | ||||
Net income per share | 0.49 | 0.53 | 1.34 | 1.42 | ||||
Continuing operations | 0.47 | 0.52 | 1.33 | 1.41 | ||||
Discontinued operations | 0.01 | 0 | 0.01 | 0 | ||||
Net income per share | $ 0.48 | $ 0.52 | $ 1.34 | $ 1.41 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Incremental pension plan contribution | $ 35 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | $ 3,435 | $ 3,020 | $ 3,229 | $ 2,751 | 2,751 |
Settlements | (3) | 0 | (3) | 0 | |
Balance at end of period | 3,557 | 3,146 | 3,557 | 3,146 | 3,229 |
Retirement benefit obligations | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (95) | (77) | (97) | (103) | (103) |
Total before income tax | 4 | 0 | 6 | 35 | |
Income tax (benefit) provision | 1 | 0 | 1 | 9 | |
Current period comprehensive (loss) income, net of tax | 3 | 0 | 5 | 26 | |
Balance at end of period | (92) | (77) | (92) | (77) | (97) |
Amortization of net loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (1) | 0 | (3) | (2) | |
Settlemet | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Settlements | 3 | 0 | 3 | 0 | |
Pension remeasurement | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Pension remeasurement | 0 | 0 | 0 | 33 | |
Interest rate swap | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (1) | 20 | 13 | 8 | 8 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1 | 1 | 5 | 1 | |
Change in fair value of interest rate swaps | (1) | 3 | (15) | 20 | |
Total before income tax | (2) | 2 | (20) | 19 | |
Income tax (benefit) provision | (1) | 0 | (5) | 5 | |
Current period comprehensive (loss) income, net of tax | (1) | 2 | (15) | 14 | |
Balance at end of period | (2) | 22 | (2) | 22 | 13 |
Accumulated Other Comprehensive Loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balance at beginning of period | (96) | (57) | (84) | (95) | (95) |
Balance at end of period | $ (94) | $ (55) | $ (94) | $ (55) | $ (84) |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 27.00% | 19.00% | 25.00% | 16.00% |
Federal corporate income tax rate (percent) | 21.00% | 21.00% | 21.00% | 21.00% |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 2 | |||
Tax benefit related to excess tax benefits associated with share-based compensation | $ 3 | $ 6 | ||
Tax benefit related to Tax Cuts and Jobs Act | $ 4 | 8 | ||
Tax benefit related to reduction of unrecognized tax benefit from receipt of written consent from IRS | $ 4 | $ 21 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 28, 2019USD ($) |
Purchase orders and contract commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | $ 959 |
Information technology commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | 55 |
Diesel fuel | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | 106 |
Electricity | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | $ 5 |
Business Information - Addition
Business Information - Additional Information (Detail) | 9 Months Ended |
Sep. 28, 2019segment | |
Segment Reporting [Abstract] | |
Number of business segments | 1 |