Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 26, 2020 | Oct. 29, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 26, 2020 | |
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 $0.01 per share | |
Trading Symbol | USFD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Outstanding (in shares) | 220,848,627 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001665918 | |
Current Fiscal Year End Date | --01-02 | |
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,019 | $ 90 |
Accounts receivable, less allowances of $88 and $30 | 1,185 | 1,455 |
Vendor receivables, less allowances of $7 and $4 | 155 | 143 |
Inventories—net | 1,314 | 1,432 |
Prepaid expenses | 93 | 109 |
Assets held for sale | 10 | 1 |
Other current assets | 29 | 32 |
Total current assets | 3,805 | 3,262 |
Property and equipment—net | 2,055 | 2,075 |
Goodwill | 5,644 | 4,728 |
Other intangibles—net | 913 | 967 |
Other assets | 379 | 256 |
Total assets | 12,796 | 11,288 |
Current liabilities: | ||
Cash overdraft liability | 159 | 222 |
Accounts payable | 1,543 | 1,460 |
Accrued expenses and other current liabilities | 521 | 538 |
Current portion of long-term debt | 149 | 142 |
Total current liabilities | 2,372 | 2,362 |
Long-term debt | 5,638 | 4,594 |
Deferred tax liabilities | 250 | 308 |
Other long-term liabilities | 525 | 315 |
Total liabilities | 8,785 | 7,579 |
Commitments and contingencies (Note 22) | ||
Series A Convertible Preferred Stock, $0.01 par value—25 shares authorized; 0.5 and 0.0 issued and outstanding as of September 26, 2020 and December 28, 2019 | 496 | 0 |
Shareholders’ equity: | ||
Common stock, $0.01 par value—600 shares authorized; 221 and 220 issued and outstanding as of September 26, 2020 and December 28, 2019, respectively | 2 | 2 |
Additional paid-in capital | 2,886 | 2,845 |
Retained earnings | 684 | 916 |
Accumulated other comprehensive loss | (57) | (54) |
Total shareholders’ equity | 3,515 | 3,709 |
Total liabilities, mezzanine equity and shareholders' equity | $ 12,796 | $ 11,288 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 88 | $ 30 |
Allowances for vendor receivables | $ 7 | $ 4 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0 |
Preferred stock, authorized (in shares) | 25,000,000 | 0 |
Preferred stock, Number of shares issued | 500,000 | 0 |
Preferred stock, outstanding (in shares) | 505,288 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 221,000,000 | 220,000,000 |
Common stock, outstanding (in shares) | 221,000,000 | 220,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 5,848 | $ 6,531 | $ 16,747 | $ 19,005 |
Cost of goods sold | 4,874 | 5,375 | 14,036 | 15,655 |
Gross profit | 974 | 1,156 | 2,711 | 3,350 |
Operating expenses: | ||||
Distribution, selling and administrative costs | 873 | 968 | 2,779 | 2,837 |
Restructuring Costs | 23 | 0 | 39 | 0 |
Total operating expenses | 896 | 968 | 2,818 | 2,837 |
Operating income (loss) | 78 | 188 | (107) | 513 |
Other (income) expense—net | (6) | 1 | (16) | (3) |
Interest expense—net | 63 | 43 | 178 | 127 |
Income (loss) before income taxes | 21 | 144 | (269) | 389 |
Income tax provision (benefit) | 13 | 39 | (53) | 97 |
Income (loss) from continuing operations | 8 | 105 | (216) | 292 |
Income from discontinued operations | 0 | 1 | 0 | 1 |
Net income (loss) | 8 | 106 | (216) | 293 |
Other comprehensive income (loss)—net of tax: | ||||
Changes in retirement benefit obligations | 0 | 3 | 1 | 5 |
Unrecognized gain (loss) on interest rate swaps | 2 | (1) | (4) | (15) |
Comprehensive income (loss) | 10 | 108 | (219) | 283 |
Net (loss) income | 8 | 106 | (216) | 293 |
Series A Convertible Preferred Stock Dividends | 10 | 0 | 15 | 0 |
Net (loss) income available to common shareholders | $ (2) | $ 106 | $ (231) | $ 293 |
Net (loss) income per share—basic | ||||
Continuing operations | $ (0.01) | $ 0.48 | $ (1.05) | $ 1.33 |
Discontinued operations | 0 | 0.01 | 0 | 0.01 |
Net (loss) income per share | (0.01) | 0.49 | (1.05) | 1.34 |
Net (loss) income per share—diluted: | ||||
Continuing operations | (0.01) | 0.47 | (1.05) | 1.33 |
Discontinued operations | 0 | 0.01 | 0 | 0.01 |
Net (loss) income per share | $ (0.01) | $ 0.48 | $ (1.05) | $ 1.34 |
Weighted-average common shares outstanding | ||||
Basic | 220 | 218 | 220 | 218 |
Diluted | 220 | 220 | 220 | 219 |
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. 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 (loss) 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 (loss) 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 (loss) 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 | 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 (loss) 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) |
Shares balance beginning of period (in shares) at Dec. 28, 2019 | 220 | ||||
Balance at beginning of period at Dec. 28, 2019 | 3,709 | $ 2 | 2,845 | 916 | (54) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 7 | 7 | |||
Proceeds from employee stock purchase plan | 6 | 6 | |||
Exercise of stock options (in shares) | 0 | ||||
Exercise of stock options | 1 | 1 | |||
Tax withholding payments for net share-settled equity awards | (2) | (2) | |||
Adoption of ASU 2016-13 (Note 2 and 7) | (1) | (1) | |||
Unrecognized gain (loss) on interest rate swaps, net of income tax | (6) | (6) | |||
Net (loss) income | (132) | (132) | |||
Shares balance end of period (in shares) at Mar. 28, 2020 | 220 | ||||
Balance at end of period at Mar. 28, 2020 | 3,582 | $ 2 | 2,857 | 783 | (60) |
Shares balance beginning of period (in shares) at Dec. 28, 2019 | 220 | ||||
Balance at beginning of period at Dec. 28, 2019 | 3,709 | $ 2 | 2,845 | 916 | (54) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Changes in retirement benefit obligations, net of income tax | 1 | ||||
Net (loss) income | (216) | ||||
Shares balance end of period (in shares) at Sep. 26, 2020 | 221 | ||||
Balance at end of period at Sep. 26, 2020 | 3,515 | $ 2 | 2,886 | 684 | (57) |
Shares balance beginning of period (in shares) at Mar. 28, 2020 | 220 | ||||
Balance at beginning of period at Mar. 28, 2020 | 3,582 | $ 2 | 2,857 | 783 | (60) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 12 | 12 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 1 | ||||
Proceeds from employee stock purchase plan | 5 | 5 | |||
Tax withholding payments for net share-settled equity awards | (3) | (3) | |||
Series A Convertible Preferred Stock Dividends | (5) | (5) | |||
Changes in retirement benefit obligations, net of income tax | 1 | 1 | |||
Net (loss) income | (92) | (92) | |||
Shares balance end of period (in shares) at Jun. 27, 2020 | 221 | ||||
Balance at end of period at Jun. 27, 2020 | 3,500 | $ 2 | 2,871 | 686 | (59) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 10 | 10 | |||
Proceeds from employee stock purchase plan | 4 | 4 | |||
Exercise of stock options (in shares) | 0 | ||||
Exercise of stock options | 1 | 1 | |||
Series A Convertible Preferred Stock Dividends | (10) | (10) | |||
Changes in retirement benefit obligations, net of income tax | 0 | ||||
Unrecognized gain (loss) on interest rate swaps, net of income tax | 2 | 2 | |||
Net (loss) income | 8 | 8 | |||
Shares balance end of period (in shares) at Sep. 26, 2020 | 221 | ||||
Balance at end of period at Sep. 26, 2020 | $ 3,515 | $ 2 | $ 2,886 | $ 684 | $ (57) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (216) | $ 293 |
Income from discontinued operations | 0 | (1) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 316 | 260 |
Gain on disposal of property and equipment—net | (15) | (1) |
Asset impairment charges | 9 | 0 |
Amortization of deferred financing costs | 12 | 3 |
Deferred tax (benefit) provision | (65) | 7 |
Share-based compensation expense | 29 | 22 |
Provision for doubtful accounts | 80 | 14 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in receivables | 182 | (162) |
Decrease (increase) in inventories—net | 161 | (22) |
Decrease in prepaid expenses and other assets | 30 | 14 |
Increase in accounts payable and cash overdraft liability | 19 | 160 |
Decrease in accrued expenses and other liabilities | (9) | (29) |
Net cash provided by operating activities of continuing operations | 533 | 558 |
Net cash provided by operating activities of discontinued operations | 0 | 1 |
Net cash provided by operating activities | 533 | 559 |
Cash flows from investing activities: | ||
Acquisition of businesses—net of cash | (973) | (1,829) |
Proceeds from sales of assets | 7 | 0 |
Proceeds from sales of property and equipment | 33 | 9 |
Purchases of property and equipment | (154) | (157) |
Net cash used in investing activities | (1,087) | (1,977) |
Cash flows from financing activities: | ||
Proceeds from debt borrowings | 3,645 | 5,084 |
Principal payments on debt and financing leases | (2,640) | (3,654) |
Net proceeds from issuance of Series A Convertible Preferred Stock | 491 | 0 |
Debt financing costs and fees | (33) | (42) |
Proceeds from employee stock purchase plan | 15 | 15 |
Proceeds from exercise of stock options | 2 | 13 |
Tax withholding payments for net share-settled equity awards | (5) | (5) |
Net cash provided by financing activities | 1,475 | 1,411 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 921 | (7) |
Cash, cash equivalents and restricted cash—beginning of period | 98 | 105 |
Cash, cash equivalents and restricted cash—end of period | 1,019 | 98 |
Supplemental disclosures of cash flow information: | ||
Interest paid—net of amounts capitalized | 122 | 112 |
Income taxes paid—net | 3 | 116 |
Property and equipment purchases included in accounts payable | 11 | 21 |
Leased assets obtained in exchange for financing lease liabilities | 63 | 77 |
Leased assets obtained in exchange for operating lease liabilities | 21 | 11 |
Cashless exercise of stock options | 0 | 1 |
Paid-in-kind Series A Convertible Preferred Stock Dividends | $ 5 | $ 0 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 26, 2020 | |
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 13, 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 U.S. 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 year 2020 is a 53-week fiscal year. Fiscal year 2019 was a 52-week fiscal year. The consolidated financial statements included in this Quarterly Report have been prepared in accordance with accounting principles generally accepted in the U.S. (“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 2019 Annual Report. 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. 26, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04- Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. This guidance is currently effective prospectively for all entities through December 31, 2022 when the reference rate replacement activity is expected to have completed. The Company adopted the provisions of this standard on a prospective basis at the beginning of the second quarter of fiscal year 2020 with no impact to the Company’s financial position or results of operations. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted the relevant provisions of this standard on a prospective basis at the beginning of the third quarter of fiscal year 2020. The Company's adoption of the relevant provisions of the new standard did not materially affect the Company's financial position or results of operations. 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. The Company adopted the provisions of this standard on a prospective basis at the beginning of fiscal year 2020. The Company's adoption of the provisions of the new standard did not 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 entities to consider additional disclosures 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. The Company adopted the provisions of this standard on a modified retrospective basis at the beginning of fiscal year 2020, which resulted in the recording of a cumulative-effect adjustment to retained earnings of $1 million. The adoption of the provision of the new standard did not materially affect the Company's financial position or results of operations. See Note 7, Allowance For Doubtful Accounts, for further discussion over the Company's allowance for doubtful accounts. Recently Issued Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , which simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, convertible debt will be accounted for as a single liability measured at its amortized cost. Additionally, the new guidance requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. This guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. The Company is currently evaluating the impacts of the provision of the new standard on our financial position, results of operation and cash flows. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 26, 2020 | |
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. The Company did not have any material outstanding performance obligations, contract liabilities or capitalized contract acquisition costs as of September 26, 2020 and December 28, 2019. Customer receivables, which are included in accounts receivable, less allowances in the Company’s Consolidated Balance Sheets, were $1.2 billion and $1.5 billion as of September 26, 2020 and December 28, 2019, 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 these costs 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 $26 million and $35 million included in prepaid expenses in the Company’s Consolidated Balance Sheets as of September 26, 2020 and December 28, 2019, respectively, and $29 million and $39 million included in other assets in the Company’s Consolidated Balance Sheets as of September 26, 2020 and December 28, 2019, 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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Meats and seafood $ 2,069 $ 2,352 $ 5,989 $ 6,849 Dry grocery products 992 1,100 2,866 3,254 Refrigerated and frozen grocery products 891 1,054 2,626 3,076 Dairy 636 689 1,738 1,955 Equipment, disposables and supplies 638 628 1,768 1,822 Beverage products 309 352 876 1,029 Produce 313 356 884 1,020 Net sales $ 5,848 $ 6,531 $ 16,747 $ 19,005 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 26, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | BUSINESS ACQUISITIONS Smart Foodservice Acquisition —On April 24, 2020, USF completed the acquisition of Smart Stores Holding Corp., a Delaware corporation (“Smart Foodservice”), from funds managed by affiliates of Apollo Global Management, Inc. Total consideration paid at the closing of the acquisition (net of cash acquired) was $973 million, and is subject to certain customary post-closing adjustments. Smart Foodservice operates 70 small-format cash and carry stores across California, Idaho, Nevada, Montana, Oregon, Washington and Utah that serve small and mid-sized restaurants and other food business customers. The acquisition of Smart Foodservice expands the Company’s cash and carry business in the West and Northwest parts of the U.S. USF financed the acquisition with a new $700 million incremental senior secured term loan facility under its existing term loan credit agreement, as further described in Note 13, Debt, and with cash on hand. The assets, liabilities and results of operations of Smart Foodservice have been included in the Company’s consolidated financial statements since the date the acquisition was completed. The following table summarizes the preliminary purchase price allocation recognized for the Smart Foodservice acquisition based upon preliminary estimates of the fair value of assets acquired and liabilities assumed. 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. Adjustments to the preliminary purchase price allocation recorded in the 13 weeks ended September 26, 2020 were immaterial to the Company's consolidated financial statements. Preliminary Purchase Price Allocation Accounts receivable $ 5 Inventories 43 Other current assets 20 Property and equipment 85 Goodwill (1) 913 Other intangibles (2) 14 Other assets 129 Accounts payable (39) Accrued expenses and other current liabilities (30) Deferred income taxes (7) Other long-term liabilities, including financing leases (160) Cash paid for acquisition $ 973 (1) Goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition, as well as expected synergies from the combined company. The acquired goodwill is not deductible for U.S. federal income tax purposes. (2) Other intangibles consist of a trade name of $14 million with an estimated useful life of approximately 1 year. Net sales and net income for Smart Foodservice, which have been included in the Company’s Consolidated Statements of Comprehensive Income since the date the acquisition was completed, were $276 million and $8 million, respectively, for the 13 weeks ended September 26, 2020, and $484 million and $19 million, respectively, for the 39 weeks ended September 26, 2020. Smart Foodservice acquisition and integration related costs included in distribution, selling and administrative costs in the Company’s Consolidated Statements of Comprehensive Income were less than $1 million for the 13 weeks ended September 26, 2020 and $20 million for the 39 weeks ended September 26, 2020, respectively. Food Group Acquisition —On September 13, 2019, USF completed the $1.8 billion 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. USF financed the acquisition with a new $1.5 billion incremental senior secured term loan facility under its existing term loan credit agreement, as further described in Note 13, 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") during the fourth quarter of 2019. The following table summarizes the final purchase price allocation for the acquisition of Food Group as of September 13, 2019. Adjustments to the preliminary purchase price allocation were immaterial to the Company's consolidated financial statements. Purchase Price Allocation Accounts receivable $ 145 Inventories 165 Assets of discontinued operations 130 Other current assets 7 Property and equipment 210 Goodwill (1) 764 Other intangibles (2) 695 Other assets 47 Accounts payable (200) Accrued expenses and other current liabilities (69) Liabilities of discontinued operations (19) Other long-term liabilities, including financing leases (43) Cash paid for acquisition $ 1,832 (1) Goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition, as well as expected synergies from the combined company. The acquired goodwill is deductible for U.S. federal income tax purposes. (2) Other intangibles consist of customer relationships of $656 million with estimated useful lives of 15 years and indefinite-lived brand names and trademarks of $39 million. Food Group acquisition and integration related costs included in distribution, selling and administrative costs in the Company’s Consolidated Statements of Comprehensive Income were $4 million and $17 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively, and $23 million and $35 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively. Pro Forma Financial 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 26, 2020 and September 28, 2019. The unaudited pro forma financial information presents the combined results of operations as if the acquisitions and related financings of Smart Foodservice and the Food Group had occurred as of December 30, 2018 and December 31, 2017, respectively, which dates represent the first day of the Company’s fiscal year prior to their respective acquisition dates. 13 Weeks Ended 39 Weeks Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Pro forma net sales $ 5,848 $ 7,498 $ 17,120 $ 21,934 Pro forma net (loss) income available to common shareholders $ (2) $ 130 $ (202) $ 323 Pro forma net (loss) income per share: Basic $ (0.01) $ 0.59 $ (0.92) $ 1.48 Diluted $ (0.01) $ 0.59 $ (0.92) $ 1.47 The unaudited pro forma financial information presented above excludes the results of operations related to the Food Group Divested Assets, as the results of operations related to the Divested Assets were reflected as discontinued operations. Unaudited pro forma net sales, net income and net income per share related to the Divested Assets for the 13 weeks and 39 weeks ended September 28, 2019 were as follows: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 28, 2019 Pro forma net sales $ 114 $ 372 Pro forma net income $ 3 $ 6 Pro forma net income per share: Basic $ 0.02 $ 0.03 Diluted $ 0.01 $ 0.03 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 incremental senior secured term loan facilities and revolving credit facilities used to finance the acquisitions, (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 Smart Foodservice and the Food Group with our previously existing operations or the standalone cost estimates and estimated costs that were incurred by their former respective parent companies. 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 dates indicated. Further, the pro forma financial information does not purport to project the Company’s future consolidated results of operations following the acquisitions. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 and December 28, 2019 consisted of the following: September 26, 2020 December 28, 2019 Cash and cash equivalents $ 1,019 $ 90 Restricted cash—included in other assets — 8 Total cash, cash equivalents and restricted cash $ 1,019 $ 98 |
Inventories
Inventories | 9 Months Ended |
Sep. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The Company’s inventories, consisting mainly of food and other 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 and retail 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 primarily using the last-in, first-out (“LIFO”) method, except for Smart Foodservice, which uses the retail method of inventory accounting. For our LIFO based inventories, 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. LIFO reserves in the Company’s Consolidated Balance Sheets were $161 million and $152 million as of September 26, 2020 and December 28, 2019, respectively. As a result of changes in LIFO reserves, cost of goods sold increased $3 million and $1 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively, and increased $9 million and $13 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively. Additionally, during the 39 weeks ended September 26, 2020, due to the impact that the COVID-19 pandemic (as further described in Note 7) had on our business, the Company incurred charges of $40 million related to inventory adjustments and product donations recorded in cost of goods sold. |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts Disclosures | 9 Months Ended |
Sep. 26, 2020 | |
Receivables [Abstract] | |
Allowance For Doubtful Accounts Disclosures [Text Block] | ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company performs on-going credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by the review of their current credit information. Collections and payments from customers are continuously monitored. The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for doubtful accounts based on a combination of factors. The Company maintains an allowance for doubtful accounts, which is based upon historical experience, future expected losses, as well as specific customer collection issues that have been identified. The Company uses specific criteria to determine uncollectible receivables to be written off, including bankruptcy, accounts referred to outside parties for collection, and accounts past due primarily over specified periods. Recent Events In March 2020, the World Health Organization characterized a novel strain of coronavirus (“COVID-19”) as a pandemic amidst a rising number of confirmed cases and thousands of deaths worldwide. As of December 28, 2019, the COVID-19 pandemic had not had a significant impact on our business. However, since mid-March 2020, our business has been significantly impacted. Beginning in mid-March 2020, many countries, including the United States, took steps to restrict travel, temporarily close or enforce capacity restrictions in businesses, schools and other public gathering spaces. Restrictions on public gatherings and attendance at retail or other establishments, including restaurants, and recreational, sporting and other similar venues, continue to evolve and are expected to continue to remain in effect in some capacity for the near-term. It remains unclear when and to what extent the COVID-19 pandemic will fully abate. Since mid-March 2020, the operations of our restaurant, hospitality and education customers (and our operations that are dependent upon these customers) have been significantly disrupted by the spread of COVID-19 and the corresponding sudden and significant decline in consumer demand for food prepared away from home. Due to the impact that the COVID-19 pandemic had on our customers, particularly our restaurant and hospitality customers, we significantly increased our allowance for doubtful accounts by $170 million during the 13 weeks ended March 28, 2020, of which, $75 million and $30 million was reversed during the 13 weeks ended June 27, 2020 and September 26, 2020, respectively, based on better than anticipated collection of our pre-COVID-19 accounts receivable. A summary of the activity in the allowance for doubtful accounts for the 39 weeks ended September 26, 2020 was as follows: Balance as of December 28, 2019 $ 30 Charged to costs and expenses 80 Adoption of ASU 2016-13 1 Customer accounts written off—net of recoveries (23) Balance as of September 26, 2020 $ 88 This table excludes the vendor receivable related allowance for doubtful accounts of $7 million and $4 million as of September 26, 2020 and December 28, 2019, respectively. |
Accounts Receivable Financing P
Accounts Receivable Financing Program | 9 Months Ended |
Sep. 26, 2020 | |
Receivables [Abstract] | |
Former Accounts Receivable Financing Program | FORMER ACCOUNTS RECEIVABLE FINANCING PROGRAMPursuant to a since-terminated accounts receivable financing facility (the “ABS Facility”), USF sold, on a revolving basis, eligible receivables to a wholly owned, special purpose, bankruptcy remote subsidiary (the “Receivables Company”). While the ABS Facility was in effect, the Company consolidated the Receivables Company and, consequently, the transfer of the eligible receivables was a transaction internal to the Company, and the eligible receivables held by the Receivables Company were previously not derecognized from the Company’s Consolidated Balance Sheet. Included in the Company’s accounts receivable balance as of December 28, 2019 was approximately $1.0 billion of eligible receivables held by the Receivables Company as collateral in support of amounts borrowed under the ABS Facility. On May 1, 2020, USF repaid all outstanding borrowings under the ABS Facility in full and terminated the ABS Facility, as further discussed in Note 13, Debt, and as a result, the Company's eligible receivables are no longer transferred to or held by the Receivables Company. |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 26, 2020 | |
Assets Held For Sale Disclosure [Text Block] [Abstract] | |
Assets held for sale | ASSETS HELD FOR SALE The Company classifies its vacant land and closed facilities as assets held for sale at the time management commits to a plan to sell the asset, the asset is actively marketed and available for immediate sale, and the sale is expected to be completed within one year. Due to market conditions, certain assets may be classified as assets held for sale for more than one year while the Company continues to actively market the assets. The change in assets held for sale for the 39 weeks ended September 26, 2020 was as follows: Balance as of December 28, 2019 $ 1 Transfers in 24 Assets sold (15) Balance as of September 26, 2020 $ 10 Land previously held for future use and two excess warehouse facilities were transferred to assets held for sale during the 39 weeks ended September 26, 2020. The Company sold the land on June 30, 2020 and received cash proceeds from the sale of $32 million, resulting in a gain on sale of $17 million, which was included in distribution, selling and administrative costs in the Company's Consolidated Statement of Comprehensive Income. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 and December 28, 2019, property and equipment-net included accumulated depreciation of $2,505 million and $2,298 million, respectively. Depreciation expense was $88 million and $75 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively and $257 million and $228 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 26, 2020 | |
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, amortizable trade names, 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, amortizable trade names and noncompete agreements are intangible assets with definite lives and are carried at the acquired fair value, less accumulated amortization. Customer relationships, amortizable trade names and noncompete agreements are amortized over the estimated useful lives (which range from approximately 1 to 15 years). Amortization expense was $21 million and $12 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively and $59 million and $32 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively. Goodwill and other intangibles—net consisted of the following: September 26, 2020 December 28, 2019 Goodwill $ 5,644 $ 4,728 Other intangibles—net Customer relationships—amortizable: Gross carrying amount $ 736 $ 789 Accumulated amortization (114) (115) Net carrying value 622 674 Trade names—amortizable: Gross carrying amount 15 — Accumulated amortization (6) — Net carrying value 9 — Noncompete agreements—amortizable: Gross carrying amount 3 3 Accumulated amortization (2) (2) Net carrying value 1 1 Brand names and trademarks—not amortizing 281 292 Total other intangibles—net $ 913 $ 967 The Company assesses for impairment intangible assets with definite lives only if events occur that indicate that the carrying amount of an asset may not be recoverable. 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. The Company completed its most recent annual impairment assessment for goodwill and indefinite-lived intangible assets as of June 28, 2020, the first day of the third quarter of fiscal year 2020. Due to the adverse impacts of the COVID-19 pandemic on forecasted earnings and the discount rate utilized in our valuation models, the Company recognized an impairment charge of $9.4 million related to two trade names acquired as part of the Food Group acquisition, which was included in restructuring and asset impairment charges in the Company's Consolidated Statement of Comprehensive Income. The Company determined the fair value of indefinite-lived intangible assets using the relief-from-royalty method, which requires assumptions such as long-term growth rates of future revenues, the royalty rate for such revenue, and a discount rate. These assumptions require significant judgment by management, and are therefore considered Level 3 inputs in the fair value hierarchy. No other impairments were noted as part of the annual impairment assessment. The increase in goodwill and the amortizable trade name as of September 26, 2020 is attributable to the Smart Foodservice acquisition, as described in Note 4, Business Acquisitions. The net decrease in the gross carrying amount of customer relationships as of September 26, 2020 is attributable to the write-off of fully amortized intangible assets related to certain 2016 business acquisitions. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 and December 28, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall, were as follows: September 26, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds $ 857 $ — $ — $ 857 Liabilities Interest rate swaps $ — $ 7 $ — $ 7 December 28, 2019 Level 1 Level 2 Level 3 Total Liabilities Interest rate swaps $ — $ 1 $ — $ 1 There were no significant assets or liabilities in the Company's Consolidated Balance Sheets measured at fair value on a nonrecurring basis for the periods presented above. Recurring Fair Value Measurements Money Market Funds Money market funds include highly liquid investments with an original maturity of three or fewer months. These funds 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 13, Debt). USF has entered into four-year interest rate swap agreements expiring July 31, 2021, which collectively have a notional value of $550 million, which was reduced from $733 million on July 31, 2020. The Company pays an aggregate effective rate of 3.45% on the notional amount of the Initial Term Loan Facility covered by the interest rate swap agreements, comprised of a rate of 1.70% plus a spread of 1.75% (see Note 13, 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 26, 2020 and December 28, 2019: Fair Value Balance Sheet Location September 26, 2020 December 28, 2019 Derivatives designated as hedging instruments Interest rate swaps Accrued expenses and $ 7 $ — Interest rate swaps Other long-term liabilities — 1 Total liabilities $ 7 $ 1 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 26, 2020 and September 28, 2019: Derivatives in Cash Flow Hedging Relationships Amount of Loss Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Amounts Reclassified from Accumulated Other Comprehensive Loss Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Income, net of tax For the 13 weeks ended September 26, 2020 Interest rate swaps $ — Interest expense—net $ 2 For the 13 weeks ended September 28, 2019 Interest rate swaps $ — Interest expense—net $ (1) For the 39 weeks ended September 26, 2020 Interest rate swaps $ (8) Interest expense—net $ 4 For the 39 weeks ended September 28, 2019 Interest rate swaps $ (11) Interest expense—net $ (4) During the next twelve months, the Company estimates that $7 million will be reclassified from accumulated other comprehensive loss to income. Other Fair Value Measurements The carrying value of 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 $5.7 billion, compared to its carrying value of $5.8 billion as of September 26, 2020. The fair value of the Company’s total debt approximated its carrying value of $4.7 billion as of December 28, 2019. The fair value of the Company’s 6.25% senior secured notes due April 15, 2025 (the “Secured Notes”) was $1.0 billion as of September 26, 2020. The fair value of the Company’s 5.875% unsecured Senior Notes due June 15, 2024 (the “Unsecured Senior Notes”), was $601 million and $619 million as of September 26, 2020 and December 28, 2019, respectively. Fair value of both the Secured Notes and the Unsecured Senior Notes is based upon the closing market prices on the respective dates, and is classified under Level 2 of the fair value hierarchy. The fair value of the balance of the Company’s debt is primarily classified under Level 3 of the fair value hierarchy, with fair value estimated based upon a combination of the cash outflows expected under these debt facilities, interest rates that are currently available to the Company for debt with similar terms, and estimates of the Company’s overall credit risk. |
Debt
Debt | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Total debt consisted of the following: Debt Description Maturity Interest Rate as of September 26, 2020 September 26, 2020 December 28, 2019 ABL Facility May 31, 2024 —% $ — $ — ABS Facility (1) — — — 190 Initial Term Loan Facility (net of $3 and $4 June 27, 2023 1.91% 2,109 2,125 2019 Incremental Term Loan Facility (net of $31 September 13, 2026 3.07% 1,458 1,465 2020 Incremental Term Loan Facility (net of $12 April 24, 2025 4.25% 287 — Senior Secured Notes (net of $14 of unamortized deferred financing costs) April 15, 2025 6.25% 986 — Unsecured Senior Notes (net of $4 of unamortized June 15, 2024 5.875% 596 596 Obligations under financing leases 2020–2030 1.63% - 6.17% 343 352 Other debt 2021–2031 5.75% - 9.00% 8 8 Total debt 5,787 4,736 Current portion of long-term debt (2) (149) (142) Long-term debt $ 5,638 $ 4,594 (1) The ABS Facility was paid in full on May 1, 2020 and subsequently terminated as further discussed below. (2) The current portion of long-term debt as of September 26, 2020 and December 28, 2019 for the Initial Term Loan Facility, the 2019 Incremental Term Loan Facility and the 2020 Incremental Term Loan Facility includes five principal payments due to the Company's 53-week fiscal year 2020. As of September 26, 2020, after considering interest rate swaps that fixed the interest rate on $550 million of principal of the Initial Term Loan Facility described below, approximately 57% of the Company’s total debt bears interest at a floating rate. ABL Facility On May 4, 2020, USF entered into an amendment to its asset based senior secured revolving credit facility (the “ABL Facility”). Pursuant to this amendment, the total aggregate amount of commitments under the ABL Facility was increased from $1,600 million to $1,990 million. Extensions of credit under the ABL Facility are subject to availability under a borrowing base comprised of various percentages of the value of eligible accounts receivable, eligible inventory, eligible transportation equipment and certain unrestricted cash and cash equivalents, which, along with other assets, also serve as collateral for borrowings under the ABL Facility. As discussed below, on May 1, 2020, USF terminated the ABS Facility and transitioned the accounts receivable that secured the ABS Facility to the collateral pool that secures the ABL Facility. This transition increases the size of the borrowing base 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 earlier maturing indebtedness under either USF’s senior secured term loan facility or Unsecured Senior Notes remains outstanding on a date that is sixty (60) days prior to the maturity date for such senior secured term loan facility or Unsecured Senior Notes, respectively. 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 described under the ABL Facility, plus a margin ranging from 0.00% to 0.50%, or the sum of 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 26, 2020 was 0.00% for ABR loans and 1.00% 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. USF incurred $3 million of third-party costs in connection with the ABL Facility amendment which were capitalized as deferred financing costs. These deferred financing costs, along with $5 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. USF had no outstanding borrowings, and had issued letters of credit totaling $274 million, under the ABL Facility as of September 26, 2020. The outstanding letters of credit primarily relate to securing USF's obligations with respect to its self- insurance program and certain real estate leases. There was available capacity of $1,716 million under the ABL Facility as of September 26, 2020. ABS Facility On May 1, 2020, USF repaid in full all $542 million principal amount of borrowings then outstanding under the ABS Facility using cash on hand and subsequently terminated the ABS Facility. The accounts receivable that secured the ABS Facility were transitioned to the collateral pool that secures the ABL Facility. The Company recorded a debt extinguishment loss of $1 million in interest expense, primarily consisting of a write-off of unamortized debt costs associated with the ABS Facility and its termination. Term Loan Facilities Under its term loan credit agreement, USF has entered into an initial senior secured term “B” loan facility in an aggregate principal amount of $2.2 billion (the “Initial Term Loan Facility”), an incremental senior secured term “B” loan facility in an aggregate principal amount of $1.5 billion (the “2019 Incremental Term Loan Facility”), and an incremental senior secured term loan facility in an aggregate principal amount of $700 million (the "2020 Incremental Term Loan Facility"). Borrowings under the 2019 Incremental Term Loan Facility were used to pay a portion of the purchase price for the acquisition of the Food Group and related fees and expenses, and borrowings under the 2020 Incremental Term Loan Facility were used to pay a portion of the purchase price for the acquisition of Smart Foodservice and related fees and expenses (see Note 4). The Initial Term Loan Facility had a carrying value of $2.1 billion, net of $3 million of unamortized deferred financing costs as of September 26, 2020. The table above reflects the interest rate on the unhedged portion of the Initial Term Loan Facility as of September 26, 2020. The effective interest rate of the portion of the Initial Term Loan Facility subject to interest rate hedging agreements was 3.45% as of September 26, 2020. The Initial Term Loan Facility is scheduled to mature on June 27, 2023. The 2019 Incremental Term Loan Facility entered into to finance a portion of the Food Group acquisition, had a carrying value of $1,458 million, net of $31 million of unamortized deferred financing costs as of September 26, 2020. 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 an alternative base rate, determined in accordance with the term loan credit agreement, plus a margin of 1.00%. The 2019 Incremental Term Loan Facility is scheduled to mature on September 13, 2026. On April 24, 2020, USF entered into the 2020 Incremental Term Loan Facility and used the proceeds to fund, in part, the Smart Foodservice acquisition. On April 28, 2020, USF repaid $400 million of the principal amount of the 2020 Incremental Term Loan Facility with a portion of the proceeds from the senior secured notes offering further discussed below. In connection with the 2020 Incremental Term Loan Facility repayment, the Company applied debt extinguishment accounting and recorded a debt extinguishment loss of $2 million in interest expense, consisting of a write-off of debt issuance costs associated with the $400 million in principal amount of the 2020 Incremental Term Loan Facility that was repaid. Lender fees and third-party costs incurred of $13 million associated with the remaining $300 million in principal amount of the 2020 Incremental Term Loan Facility were capitalized as deferred financing costs and will be amortized through April 24, 2025, which is the 2020 Incremental Term Loan Facility maturity date. Borrowings under the 2020 Incremental Term Loan Facility will bear interest at a rate per annum equal to, at USF’s option, either LIBOR plus a margin of 3.25% (subject to a LIBOR “floor” of 1.00%), or an alternative base rate plus a margin of 2.25%. The interest rate margins on the 2020 Incremental Term Loan Facility will increase by 0.50% on each of April 28, 2021, April 28, 2022, April 28, 2023 and April 28, 2024, respectively. USF’s obligations under the Initial Term Loan Facility, the 2019 Incremental Term Loan Facility and the 2020 Incremental Term Loan Facility are guaranteed by certain of USF’s subsidiaries, and those obligations and guarantees are secured by substantially all of the non-real estate assets of USF and the subsidiary guarantors. Senior Secured Notes On April 28, 2020, USF completed a private offering of $1.0 billion aggregate principal amount of its 6.25% Secured Notes due April 15, 2025. USF used the net proceeds of the Secured Notes to repay $400 million in principal amount of the 2020 Incremental Term Loan Facility and the balance of the net proceeds has been and will be used for general corporate purposes. The Secured Notes had a carrying value of $986 million, net of $14 million of unamortized deferred financing costs, as of September 26, 2020. The Secured Notes mature April 15, 2025. On or after April 15, 2022, the Secured Notes are redeemable, at USF’s option, in whole or in part at a price of 103.13% of the remaining principal, plus accrued and unpaid interest, if any, to the redemption date. On or after April 15, 2023 and April 15, 2024, the optional redemption price for the Secured Notes declines to 101.56% and 100.00%, respectively, of the remaining principal amount, plus accrued and unpaid interest, if any, to the redemption date. Debt Covenants The agreements governing our indebtedness contain customary covenants. These include, among other things, covenants that restrict our ability to incur certain additional indebtedness, create or permit liens on assets, pay dividends, or engage in mergers or consolidations. USF had $1.3 billion of restricted payment capacity under these covenants, and approximately $2.7 billion of its net assets were restricted considering the net deferred tax assets and intercompany balances that eliminate in consolidation as of September 26, 2020. |
Restructuring Liabilities (Note
Restructuring Liabilities (Notes) | 9 Months Ended |
Sep. 26, 2020 | |
Restructuring Liabilities [Abstract] | |
Restructuring Liabilities | RESTRUCTURING LIABILITIES From time to time, the Company may implement initiatives or close or consolidate facilities in an effort to reduce costs and improve operating effectiveness. In connection with these activities, the Company may incur various costs including severance and other employee-related separation costs. In order to reduce its operating expenses in line with the decrease in sales volume caused by the COVID-19 pandemic, the Company reduced its work force and closed two excess facilities and incurred a net charge of $14 million and $30 million for severance and related costs during the 13 weeks and 39 weeks ended September 26, 2020, respectively. See Note 11, Goodwill and Other Intangibles, for discussion related to asset impairment charges. The following table summarizes the changes in the restructuring liabilities for the 39 weeks ended September 26, 2020: Severance and Related Costs Facility Closing Costs Total Balance at December 28, 2019 $ 1 $ — $ 1 Current period charges 28 2 30 Payments, net (25) (1) (26) Balance as of September 26, 2020 $ 4 $ 1 $ 5 |
Leases
Leases | 9 Months Ended |
Sep. 26, 2020 | |
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 as of 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 as of 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, the associated payments 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 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 Sheets as of September 26, 2020 and December 28, 2019: Leases Consolidated Balance Sheet Location September 26, 2020 December 28, 2019 Assets Operating Other assets $ 271 $ 145 Financing Property and equipment-net (1) 327 333 Total leased assets $ 598 $ 478 Liabilities Current: Operating Accrued expenses and other current liabilities $ 47 $ 40 Financing Current portion of long-term debt 93 95 Noncurrent: Operating Other long-term liabilities 250 131 Financing Long-term debt 250 257 Total lease liabilities $ 640 $ 523 (1) Financing lease assets are recorded net of accumulated amortization of $243 million and $269 million as of September 26, 2020 and December 28, 2019, respectively. T he following table presents the location of lease costs in the Company's Consolidated Statements of Comprehensive Income: 13 Weeks Ended 26 Weeks Ended Lease Cost Statement of Comprehensive Income Location September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating lease cost Distribution, selling and administrative costs $ 10 $ 7 $ 36 $ 21 Financing lease cost: Amortization of leased assets Distribution, selling and administrative costs 19 21 60 60 Interest on lease liabilities Interest expense-net 3 3 9 9 Variable lease cost Distribution, selling and administrative costs 4 2 10 5 Net lease cost $ 36 $ 33 $ 115 $ 95 Future lease payments under lease agreements as of September 26, 2020 were as follows: Maturity of Lease Liabilities Operating Financing Leases Total Remainder of 2020 $ 11 $ 32 $ 43 2021 62 93 155 2022 56 70 126 2023 54 67 121 2024 35 50 85 2025 34 31 65 After 2025 164 25 189 Total lease payments 416 368 784 Less amount representing interest (119) (25) (144) Present value of lease liabilities $ 297 $ 343 $ 640 Future minimum lease payments in effect as of December 28, 2019 under noncancelable lease arrangements were as follows: Future Minimum Lease Payments Operating Financing Leases Total 2020 $ 48 $ 106 $ 154 2021 38 84 122 2022 33 62 95 2023 30 58 88 2024 12 41 53 After 2024 42 29 71 Total lease payments 203 380 583 Less amount representing interest (32) (28) (60) Present value of minimum lease payments $ 171 $ 352 $ 523 Other information related to lease agreements for the 39 weeks ended September 26, 2020 and September 28, 2019 was as follows: 39 Weeks Ended Cash Paid For Amounts Included In Measurement of Liabilities September 26, 2020 September 28, 2019 Operating cash flows from operating leases $ 37 $ 24 Operating cash flows from financing leases 9 9 Financing cash flows from financing leases 72 49 Lease Term and Discount Rate September 26, 2020 September 28, 2019 Weighted-average remaining lease term (years): Operating leases 8.43 5.80 Financing leases 5.34 5.30 Weighted-average discount rate: Operating leases 6.7 % 4.6 % Financing leases 3.2 % 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 as of 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 as of 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, the associated payments 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 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 Sheets as of September 26, 2020 and December 28, 2019: Leases Consolidated Balance Sheet Location September 26, 2020 December 28, 2019 Assets Operating Other assets $ 271 $ 145 Financing Property and equipment-net (1) 327 333 Total leased assets $ 598 $ 478 Liabilities Current: Operating Accrued expenses and other current liabilities $ 47 $ 40 Financing Current portion of long-term debt 93 95 Noncurrent: Operating Other long-term liabilities 250 131 Financing Long-term debt 250 257 Total lease liabilities $ 640 $ 523 (1) Financing lease assets are recorded net of accumulated amortization of $243 million and $269 million as of September 26, 2020 and December 28, 2019, respectively. T he following table presents the location of lease costs in the Company's Consolidated Statements of Comprehensive Income: 13 Weeks Ended 26 Weeks Ended Lease Cost Statement of Comprehensive Income Location September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating lease cost Distribution, selling and administrative costs $ 10 $ 7 $ 36 $ 21 Financing lease cost: Amortization of leased assets Distribution, selling and administrative costs 19 21 60 60 Interest on lease liabilities Interest expense-net 3 3 9 9 Variable lease cost Distribution, selling and administrative costs 4 2 10 5 Net lease cost $ 36 $ 33 $ 115 $ 95 Future lease payments under lease agreements as of September 26, 2020 were as follows: Maturity of Lease Liabilities Operating Financing Leases Total Remainder of 2020 $ 11 $ 32 $ 43 2021 62 93 155 2022 56 70 126 2023 54 67 121 2024 35 50 85 2025 34 31 65 After 2025 164 25 189 Total lease payments 416 368 784 Less amount representing interest (119) (25) (144) Present value of lease liabilities $ 297 $ 343 $ 640 Future minimum lease payments in effect as of December 28, 2019 under noncancelable lease arrangements were as follows: Future Minimum Lease Payments Operating Financing Leases Total 2020 $ 48 $ 106 $ 154 2021 38 84 122 2022 33 62 95 2023 30 58 88 2024 12 41 53 After 2024 42 29 71 Total lease payments 203 380 583 Less amount representing interest (32) (28) (60) Present value of minimum lease payments $ 171 $ 352 $ 523 Other information related to lease agreements for the 39 weeks ended September 26, 2020 and September 28, 2019 was as follows: 39 Weeks Ended Cash Paid For Amounts Included In Measurement of Liabilities September 26, 2020 September 28, 2019 Operating cash flows from operating leases $ 37 $ 24 Operating cash flows from financing leases 9 9 Financing cash flows from financing leases 72 49 Lease Term and Discount Rate September 26, 2020 September 28, 2019 Weighted-average remaining lease term (years): Operating leases 8.43 5.80 Financing leases 5.34 5.30 Weighted-average discount rate: Operating leases 6.7 % 4.6 % Financing leases 3.2 % 3.5 % |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 26, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS The Company sponsors a defined benefit pension plan and a 401(k) plan for eligible employees, and provides certain postretirement health and welfare benefits to eligible retirees and their dependents. In connection with the Smart Foodservice acquisition, the Company assumed a defined benefit pension plan with net liabilities of approximately $20 million. 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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Components of net periodic pension benefit costs (credits) Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 8 10 23 28 Expected return on plan assets (14) (13) (40) (37) Amortization of net loss — 1 1 3 Settlements — 3 — 3 Net periodic pension benefit costs (credits) $ (5) $ 2 $ (14) $ (1) Other postretirement benefit costs were de minimis for both the 13 weeks and 39 weeks ended September 26, 2020 and September 28, 2019. The service cost component of net periodic benefit credits is included in distribution, selling and administrative costs, while the other components of net periodic benefit credits are included in other income (expense)—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. The Company incurred non-cash settlement charges of $3 million during the third quarter of 2019 related to ordinary course lump sum payment elections as provided under the continuing plan. The voluntary lump sum payment, along with a spin-off of certain participants into a new plan which was subsequently terminated, was completed in the fourth quarter of fiscal year 2019. The 2019 non-cash settlement charges were included in other expense (income)—net in the Company's Consolidated Statements of Comprehensive Income. No non-cash settlement charges were incurred in fiscal year 2020. The Company does not expect to make significant contributions to its defined benefit pension plan in fiscal year 2020. Certain employees are eligible to participate in the Company's 401(k) plan. The Company made employer matching contributions to the 401(k) plan of $11 million and $13 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively, and $34 million and $38 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively. The Company is also required to contribute to various multiemployer pension plans under the terms of collective bargaining agreements that cover certain of its union-represented employees. The Company’s contributions to these plans were $11 million and $10 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively, and $33 million and $28 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 26, 2020 | |
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 (loss) available to common shareholders 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. The Company applies the treasury method to calculate the dilution impact of share-based awards—stock options, non-vested restricted shares with forfeitable dividend rights, restricted stock units, and employee stock purchase plan deferrals. The Company applies the if-converted method to calculate the dilution impact of the Series A Convertible Preferred Stock. For the 13 weeks ended September 26, 2020 and September 28, 2019, share-based awards representing 9 million and 1 million underlying common shares, respectively, were not included in the computation because the effect would have been anti-dilutive. For the 39 weeks ended September 26, 2020 and September 28, 2019, share-based awards representing 9 million and 2 million underlying common shares, respectively, were not included in the computation because the effect would have been anti-dilutive. For the 13 weeks and 39 weeks ended September 26, 2020, convertible preferred stock representing 23 million and 12 million of underlying common shares, respectively, was not included in the computation because the effect would have been anti-dilutive. The following table sets forth the computation of basic and diluted EPS: 13 Weeks Ended 39 Weeks Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Numerator: Income (loss) from continuing operations $ 8 $ 105 $ (216) $ 292 Income from discontinued operations — 1 — 1 Net income (loss) 8 106 (216) 293 Series A Convertible Preferred Stock dividends (1) 10 — 15 — Net (loss) income available to common shareholders $ (2) $ 106 $ (231) $ 293 Denominator: Weighted-average common shares outstanding 220 218 220 218 Effect of dilutive securities — 2 — 1 Effect of dilutive underlying shares of the Series A Convertible Preferred Stock — — — — Weighted-average dilutive shares outstanding 220 220 220 219 Basic earnings per share: Continuing operations $ (0.01) $ 0.48 $ (1.05) $ 1.33 Discontinued operations 0.00 0.01 0.00 0.01 Net (loss) income per share $ (0.01) $ 0.49 $ (1.05) $ 1.34 Diluted earnings per share: Continuing operations $ (0.01) $ 0.47 $ (1.05) $ 1.33 Discontinued operations 0.00 0.01 0.00 0.01 Net (loss) income per share $ (0.01) $ 0.48 $ (1.05) $ 1.34 (1) Preferred stock dividends for the second quarter of 2020 were declared on June 19, 2020 and were paid in kind on June 30, 2020. Preferred stock dividends for the third quarter of 2020 were declared on September 21, 2020 and were paid in kind on September 30, 2020. |
Convertible Preferred Stock (No
Convertible Preferred Stock (Notes) | 9 Months Ended |
Sep. 26, 2020 | |
Convertible Preferred Stock [Abstract] | |
Convertible Preferred Stock | CONVERTIBLE PREFERRED STOCK On May 6, 2020 (the “Issuance Date”), pursuant to the terms of an Investment Agreement (the "Investment Agreement") with KKR Fresh Aggregator L.P., a Delaware limited partnership (“KKR”), the Company issued and sold 500,000 shares of the Company’s Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”) to KKR for an aggregate purchase price of $500 million, or $1,000 per share (the “Issuance”). The Company used the net proceeds from the Issuance for working capital and general corporate purposes. On June 30, 2020 and September 30, 2020, the Company paid a dividend (the “Dividend”) on the shares of the Series A Preferred Stock in the form of 5,288 and 8,842 shares of Series A Preferred Stock, respectively, plus a de minimis amount in cash in lieu of fractional shares in accordance with the terms of the Certificate of Designations for the Series A Preferred Stock (the "Certificate of Designations"). The Series A Preferred Stock ranks senior to the shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), with respect to dividend rights and rights on the distribution of assets on any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company. The Series A Preferred Stock has a liquidation preference of $1,000 per share. Holders of the Series A Preferred Stock are entitled to a cumulative dividend at the rate of 7.0% per annum. If the Company does not declare and pay a dividend on the Series A Preferred Stock, the dividend rate will increase by 3.0% to 10.0% per annum until all accrued but unpaid dividends have been paid in full. Dividends are payable in kind through the issuance of additional shares of Series A Preferred Stock for the first four dividend payments following the Issuance Date, and thereafter, in cash or in kind, or a combination of both, at the option of the Company. The Series A Preferred Stock is convertible at the option of the holders thereof at any time into shares of Common Stock at an initial conversion price of $21.50 per share and an initial conversion rate of 46.5116 shares of Common Stock per share of Series A Preferred Stock, subject to certain anti-dilution adjustments set forth in the Certificate of Designations. At any time after May 6, 2023 (the third anniversary of the Issuance Date), if the volume weighted average price of the Common Stock exceeds $43.00 per share, as may be adjusted pursuant to the Certificate of Designations, for at least 20 trading days in any period of 30 consecutive trading days, at the election of the Company, all of the Series A Preferred Stock will be convertible into the relevant number of shares of Common Stock. At any time after May 6, 2025 (the fifth anniversary of the Issuance Date), the Company may redeem some or all of the Series A Preferred Stock for a per share amount in cash equal to: (i) the sum of (x) 100% of the liquidation preference thereof, plus (y) all accrued and unpaid dividends, multiplied by (ii) (A) 105% if the redemption occurs at any time after the fifth anniversary of the Issuance Date and prior to the sixth anniversary of the Issuance Date, (B) 103% if the redemption occurs at any time after May 6, 2026 (the sixth anniversary of the Issuance Date) and prior to May 6, 2027 (the seventh anniversary of the Issuance Date), and (C) 100% if the redemption occurs at any time after May 6, 2027 (the seventh anniversary of the Issuance Date). Upon certain change of control events involving the Company, the holders of the Series A Preferred Stock must either (i) convert their shares of Series A Preferred Stock into Common Stock at the then-current conversion price or (ii) cause the Company to redeem their shares of Series A Preferred Stock for an amount in cash equal to 100% of the liquidation preference thereof plus all accrued but unpaid dividends. If any such change of control event occurs on or before May 6, 2025 (the fifth anniversary of the Issuance Date), the Company will also be required to pay the holders of the Series A Preferred Stock a “make-whole” premium of 5%. Holders of the Series A Preferred Stock are entitled to vote with the holders of the Common Stock on an as-converted basis. Holders of the Series A Preferred Stock are also entitled to a separate class vote with respect to, among other things, amendments to the Company’s organizational documents that have an adverse effect on the Series A Preferred Stock, authorization or issuances by the Company of securities that are senior to, or equal in priority with, the Series A Preferred Stock, increases or decreases in the number of authorized shares of Series A Preferred Stock, and issuances of shares of Series A Preferred Stock after the Issuance Date, other than shares issued as in-kind dividends with respect to shares of the Series A Preferred Stock issued after the Issuance Date. A summary of the activity for the outstanding Series A Preferred Stock and associated carrying value for the 39 weeks ended September 26, 2020 was as follows: Series A Preferred Stock Shares Amount Balance, December 28, 2019 — $ — Shares issued for cash - Series A Preferred Stock, net of issuance costs 500,000 491 Balance, June 27, 2020 500,000 491 Shares issued as paid in kind dividend - Series A Preferred Stock 5,288 5 Balance September 26, 2020 505,288 $ 496 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Accumulated other comprehensive loss components Retirement benefit obligations: Balance as of beginning of period (1) $ (51) $ (95) $ (52) $ (97) Reclassification adjustments: Amortization of net loss (2) (3) — 1 1 3 Settlements (2)(3) — 3 — 3 Total before income tax — 4 1 6 Income tax provision — 1 — 1 Current period comprehensive income, net of tax — 3 1 5 Balance as of end of period (1) $ (51) $ (92) $ (51) $ (92) Interest rate swaps: Balance as of beginning of period (1) $ (8) $ (1) $ (2) $ 13 Change in fair value of interest rate swaps — (1) (10) (15) Amounts reclassified to interest expense—net 2 (1) 4 (5) Total before income tax 2 (2) (6) (20) Income tax benefit — (1) (2) (5) Current period comprehensive income (loss), net of tax 2 (1) (4) (15) Balance as of end of period (1) $ (6) $ (2) $ (6) $ (2) Accumulated other comprehensive loss as of end of period (1) $ (57) $ (94) $ (57) $ (94) (1) Amounts are presented net of tax. (2) Included in the computation of net periodic benefit costs. See Note 16, Retirement Plans, for additional information. (3) Included in other income (expense)—net in the Company's Consolidated Statements of Comprehensive Income. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 26, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS As described in Note 18, Convertible Preferred Stock, on May 6, 2020, the Company issued and sold 500,000 shares of the Company’s Series A Preferred Stock to KKR for an aggregate purchase price of $500 million, or $1,000 per share. Assuming conversion of all Series A Preferred Stock, KKR would have held approximately 9.6% of the Company’s outstanding common stock as of September 26, 2020. KKR Capital Markets LLC (“KKR Capital Markets”), an affiliate of KKR, received aggregate fees of $6 million for services rendered in connection with the 2020 Incremental Term Loan Facility, the Secured Notes and the ABL Facility amendment financings during the 39 weeks ended September 26, 2020. KKR Capital Markets also received $5 million for services rendered in connection with the May 2019 refinancing of the ABL Facility and the 2019 Incremental Term Loan Facility during the 39 weeks ended September 28, 2019. As reported by the Company’s administrative agent, investment funds managed by an affiliate of KKR held approximately $64 million in principal amount of the Company's term loan facilities as of September 26, 2020. Based solely on information provided in its most recent public filings, FMR LLC and its affiliates held approximately 11% of the Company’s outstanding common stock as of September 26, 2020. As reported by the Company’s administrative agent, investment funds managed by an affiliate of FMR LLC held approximately $60 million in principal amount of the Company's term loan facilities as of September 26, 2020. Certain FMR LLC affiliates provide recordkeeping services for the Company’s 401(k) plan and provide administrative services for other Company sponsored employee benefit plans. Fees earned by FMR LLC affiliates are not material to the Company’s consolidated financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | INCOME TAXESThe 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 U.S. federal and various 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 26, 2020 and September 28, 2019 for purposes of determining its year-to-date tax provision. For the 13 weeks ended September 26, 2020, the Company's effective income tax rate of 58% 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. Because pre-tax income for the 13 weeks ended September 26, 2020 was $21 million, all tax adjustments had a significant impact on a percentage basis on the effective income tax rate. The discrete tax items were not material individually or in the aggregate; however, when compared to the pre-tax income of $21 million for the period on a percentage basis, these tax items had a significant impact on the effective tax rate. 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 26, 2020 | |
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. The Company had $1,119 million of purchase orders and purchase contract commitments to be purchased through the first quarter of fiscal year 2021 as of September 26, 2020 and $63 million of information technology commitments through December 2024 that are not recorded in the Company's Consolidated Balance Sheets. To minimize fuel price risk, the Company enters into forward purchase commitments for a portion of its projected diesel fuel requirements. The Company had diesel fuel forward purchase commitments totaling $71 million through December 2021, as of September 26, 2020. Additionally, the Company had electricity forward purchase commitments totaling $5 million through November 2023, as of September 26, 2020. 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 settle one or more of these proceedings or could be required to make expenditures, in excess of the established provisions, in amounts that cannot be reasonably estimated. However, the Company, at present, believes that the ultimate outcome 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. 26, 2020 | |
Segment Reporting [Abstract] | |
Business information | BUSINESS INFORMATION The Company’s consolidated results represent the 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 U.S. 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Meats and seafood $ 2,069 $ 2,352 $ 5,989 $ 6,849 Dry grocery products 992 1,100 2,866 3,254 Refrigerated and frozen grocery products 891 1,054 2,626 3,076 Dairy 636 689 1,738 1,955 Equipment, disposables and supplies 638 628 1,768 1,822 Beverage products 309 352 876 1,029 Produce 313 356 884 1,020 Net sales $ 5,848 $ 6,531 $ 16,747 $ 19,005 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The following table summarizes the preliminary purchase price allocation recognized for the Smart Foodservice acquisition based upon preliminary estimates of the fair value of assets acquired and liabilities assumed. 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. Adjustments to the preliminary purchase price allocation recorded in the 13 weeks ended September 26, 2020 were immaterial to the Company's consolidated financial statements. Preliminary Purchase Price Allocation Accounts receivable $ 5 Inventories 43 Other current assets 20 Property and equipment 85 Goodwill (1) 913 Other intangibles (2) 14 Other assets 129 Accounts payable (39) Accrued expenses and other current liabilities (30) Deferred income taxes (7) Other long-term liabilities, including financing leases (160) Cash paid for acquisition $ 973 (1) Goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition, as well as expected synergies from the combined company. The acquired goodwill is not deductible for U.S. federal income tax purposes. (2) Other intangibles consist of a trade name of $14 million with an estimated useful life of approximately 1 year. The following table summarizes the final purchase price allocation for the acquisition of Food Group as of September 13, 2019. Adjustments to the preliminary purchase price allocation were immaterial to the Company's consolidated financial statements. Purchase Price Allocation Accounts receivable $ 145 Inventories 165 Assets of discontinued operations 130 Other current assets 7 Property and equipment 210 Goodwill (1) 764 Other intangibles (2) 695 Other assets 47 Accounts payable (200) Accrued expenses and other current liabilities (69) Liabilities of discontinued operations (19) Other long-term liabilities, including financing leases (43) Cash paid for acquisition $ 1,832 (1) Goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition, as well as expected synergies from the combined company. The acquired goodwill is deductible for U.S. federal income tax purposes. |
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 26, 2020 and September 28, 2019. The unaudited pro forma financial information presents the combined results of operations as if the acquisitions and related financings of Smart Foodservice and the Food Group had occurred as of December 30, 2018 and December 31, 2017, respectively, which dates represent the first day of the Company’s fiscal year prior to their respective acquisition dates. 13 Weeks Ended 39 Weeks Ended September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Pro forma net sales $ 5,848 $ 7,498 $ 17,120 $ 21,934 Pro forma net (loss) income available to common shareholders $ (2) $ 130 $ (202) $ 323 Pro forma net (loss) income per share: Basic $ (0.01) $ 0.59 $ (0.92) $ 1.48 Diluted $ (0.01) $ 0.59 $ (0.92) $ 1.47 |
Divested Entities Pro Forma Information | The unaudited pro forma financial information presented above excludes the results of operations related to the Food Group Divested Assets, as the results of operations related to the Divested Assets were reflected as discontinued operations. Unaudited pro forma net sales, net income and net income per share related to the Divested Assets for the 13 weeks and 39 weeks ended September 28, 2019 were as follows: 13 Weeks Ended 39 Weeks Ended September 28, 2019 September 28, 2019 Pro forma net sales $ 114 $ 372 Pro forma net income $ 3 $ 6 Pro forma net income per share: Basic $ 0.02 $ 0.03 Diluted $ 0.01 $ 0.03 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Restriction 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 26, 2020 and December 28, 2019 consisted of the following: September 26, 2020 December 28, 2019 Cash and cash equivalents $ 1,019 $ 90 Restricted cash—included in other assets — 8 Total cash, cash equivalents and restricted cash $ 1,019 $ 98 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Receivables [Abstract] | |
Allowance for doubtful accounts | A summary of the activity in the allowance for doubtful accounts for the 39 weeks ended September 26, 2020 was as follows: Balance as of December 28, 2019 $ 30 Charged to costs and expenses 80 Adoption of ASU 2016-13 1 Customer accounts written off—net of recoveries (23) Balance as of September 26, 2020 $ 88 |
Schedule of Assets Held for Sal
Schedule of Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Assets Held for Sale [Abstract] | |
Assets held for sale | The change in assets held for sale for the 39 weeks ended September 26, 2020 was as follows: Balance as of December 28, 2019 $ 1 Transfers in 24 Assets sold (15) Balance as of September 26, 2020 $ 10 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangibles, Net | Goodwill and other intangibles—net consisted of the following: September 26, 2020 December 28, 2019 Goodwill $ 5,644 $ 4,728 Other intangibles—net Customer relationships—amortizable: Gross carrying amount $ 736 $ 789 Accumulated amortization (114) (115) Net carrying value 622 674 Trade names—amortizable: Gross carrying amount 15 — Accumulated amortization (6) — Net carrying value 9 — Noncompete agreements—amortizable: Gross carrying amount 3 3 Accumulated amortization (2) (2) Net carrying value 1 1 Brand names and trademarks—not amortizing 281 292 Total other intangibles—net $ 913 $ 967 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities | The Company’s assets and liabilities measured at fair value on a recurring basis as of September 26, 2020 and December 28, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall, were as follows: September 26, 2020 Level 1 Level 2 Level 3 Total Assets Money market funds $ 857 $ — $ — $ 857 Liabilities Interest rate swaps $ — $ 7 $ — $ 7 December 28, 2019 Level 1 Level 2 Level 3 Total Liabilities Interest rate swaps $ — $ 1 $ — $ 1 |
Schedule of Derivative Instruments in Statement of Financial Position | The following table presents the balance sheet location and fair value of the interest rate swaps as of September 26, 2020 and December 28, 2019: Fair Value Balance Sheet Location September 26, 2020 December 28, 2019 Derivatives designated as hedging instruments Interest rate swaps Accrued expenses and $ 7 $ — Interest rate swaps Other long-term liabilities — 1 Total liabilities $ 7 $ 1 |
Schedule of Derivative Instruments, effect on OCI [Table Text Block] | 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 26, 2020 and September 28, 2019: Derivatives in Cash Flow Hedging Relationships Amount of Loss Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Amounts Reclassified from Accumulated Other Comprehensive Loss Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Income, net of tax For the 13 weeks ended September 26, 2020 Interest rate swaps $ — Interest expense—net $ 2 For the 13 weeks ended September 28, 2019 Interest rate swaps $ — Interest expense—net $ (1) For the 39 weeks ended September 26, 2020 Interest rate swaps $ (8) Interest expense—net $ 4 For the 39 weeks ended September 28, 2019 Interest rate swaps $ (11) Interest expense—net $ (4) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Components of total debt | Total debt consisted of the following: Debt Description Maturity Interest Rate as of September 26, 2020 September 26, 2020 December 28, 2019 ABL Facility May 31, 2024 —% $ — $ — ABS Facility (1) — — — 190 Initial Term Loan Facility (net of $3 and $4 June 27, 2023 1.91% 2,109 2,125 2019 Incremental Term Loan Facility (net of $31 September 13, 2026 3.07% 1,458 1,465 2020 Incremental Term Loan Facility (net of $12 April 24, 2025 4.25% 287 — Senior Secured Notes (net of $14 of unamortized deferred financing costs) April 15, 2025 6.25% 986 — Unsecured Senior Notes (net of $4 of unamortized June 15, 2024 5.875% 596 596 Obligations under financing leases 2020–2030 1.63% - 6.17% 343 352 Other debt 2021–2031 5.75% - 9.00% 8 8 Total debt 5,787 4,736 Current portion of long-term debt (2) (149) (142) Long-term debt $ 5,638 $ 4,594 (1) The ABS Facility was paid in full on May 1, 2020 and subsequently terminated as further discussed below. (2) The current portion of long-term debt as of September 26, 2020 and December 28, 2019 for the Initial Term Loan Facility, the 2019 Incremental Term Loan Facility and the 2020 Incremental Term Loan Facility includes five principal payments due to the Company's 53-week fiscal year 2020. |
Restructuring Liabilities (Tabl
Restructuring Liabilities (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Restructuring Liabilities [Abstract] | |
Restructuring Liabilities | The following table summarizes the changes in the restructuring liabilities for the 39 weeks ended September 26, 2020: Severance and Related Costs Facility Closing Costs Total Balance at December 28, 2019 $ 1 $ — $ 1 Current period charges 28 2 30 Payments, net (25) (1) (26) Balance as of September 26, 2020 $ 4 $ 1 $ 5 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Components of leases | The following table presents the location of the ROU assets and lease liabilities in the Company’s Consolidated Balance Sheets as of September 26, 2020 and December 28, 2019: Leases Consolidated Balance Sheet Location September 26, 2020 December 28, 2019 Assets Operating Other assets $ 271 $ 145 Financing Property and equipment-net (1) 327 333 Total leased assets $ 598 $ 478 Liabilities Current: Operating Accrued expenses and other current liabilities $ 47 $ 40 Financing Current portion of long-term debt 93 95 Noncurrent: Operating Other long-term liabilities 250 131 Financing Long-term debt 250 257 Total lease liabilities $ 640 $ 523 (1) Financing lease assets are recorded net of accumulated amortization of $243 million and $269 million as of September 26, 2020 and December 28, 2019, respectively. T he following table presents the location of lease costs in the Company's Consolidated Statements of Comprehensive Income: 13 Weeks Ended 26 Weeks Ended Lease Cost Statement of Comprehensive Income Location September 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Operating lease cost Distribution, selling and administrative costs $ 10 $ 7 $ 36 $ 21 Financing lease cost: Amortization of leased assets Distribution, selling and administrative costs 19 21 60 60 Interest on lease liabilities Interest expense-net 3 3 9 9 Variable lease cost Distribution, selling and administrative costs 4 2 10 5 Net lease cost $ 36 $ 33 $ 115 $ 95 |
Schedule of Future Operating Lease Payments | Future lease payments under lease agreements as of September 26, 2020 were as follows: Maturity of Lease Liabilities Operating Financing Leases Total Remainder of 2020 $ 11 $ 32 $ 43 2021 62 93 155 2022 56 70 126 2023 54 67 121 2024 35 50 85 2025 34 31 65 After 2025 164 25 189 Total lease payments 416 368 784 Less amount representing interest (119) (25) (144) Present value of lease liabilities $ 297 $ 343 $ 640 |
Schedule of Future Finance Lease Payments | Future lease payments under lease agreements as of September 26, 2020 were as follows: Maturity of Lease Liabilities Operating Financing Leases Total Remainder of 2020 $ 11 $ 32 $ 43 2021 62 93 155 2022 56 70 126 2023 54 67 121 2024 35 50 85 2025 34 31 65 After 2025 164 25 189 Total lease payments 416 368 784 Less amount representing interest (119) (25) (144) Present value of lease liabilities $ 297 $ 343 $ 640 |
Schedule of Future Capital Lease Payments Prior to 842 | Future minimum lease payments in effect as of December 28, 2019 under noncancelable lease arrangements were as follows: Future Minimum Lease Payments Operating Financing Leases Total 2020 $ 48 $ 106 $ 154 2021 38 84 122 2022 33 62 95 2023 30 58 88 2024 12 41 53 After 2024 42 29 71 Total lease payments 203 380 583 Less amount representing interest (32) (28) (60) Present value of minimum lease payments $ 171 $ 352 $ 523 |
Schedule of Future Operating Lease Payments Prior to 842 | Future minimum lease payments in effect as of December 28, 2019 under noncancelable lease arrangements were as follows: Future Minimum Lease Payments Operating Financing Leases Total 2020 $ 48 $ 106 $ 154 2021 38 84 122 2022 33 62 95 2023 30 58 88 2024 12 41 53 After 2024 42 29 71 Total lease payments 203 380 583 Less amount representing interest (32) (28) (60) Present value of minimum lease payments $ 171 $ 352 $ 523 |
Schedule of other information related to lease agreements | Other information related to lease agreements for the 39 weeks ended September 26, 2020 and September 28, 2019 was as follows: 39 Weeks Ended Cash Paid For Amounts Included In Measurement of Liabilities September 26, 2020 September 28, 2019 Operating cash flows from operating leases $ 37 $ 24 Operating cash flows from financing leases 9 9 Financing cash flows from financing leases 72 49 Lease Term and Discount Rate September 26, 2020 September 28, 2019 Weighted-average remaining lease term (years): Operating leases 8.43 5.80 Financing leases 5.34 5.30 Weighted-average discount rate: Operating leases 6.7 % 4.6 % Financing leases 3.2 % 3.5 % |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit (Credit) Costs | 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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Components of net periodic pension benefit costs (credits) Service cost $ 1 $ 1 $ 2 $ 2 Interest cost 8 10 23 28 Expected return on plan assets (14) (13) (40) (37) Amortization of net loss — 1 1 3 Settlements — 3 — 3 Net periodic pension benefit costs (credits) $ (5) $ 2 $ (14) $ (1) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Numerator: Income (loss) from continuing operations $ 8 $ 105 $ (216) $ 292 Income from discontinued operations — 1 — 1 Net income (loss) 8 106 (216) 293 Series A Convertible Preferred Stock dividends (1) 10 — 15 — Net (loss) income available to common shareholders $ (2) $ 106 $ (231) $ 293 Denominator: Weighted-average common shares outstanding 220 218 220 218 Effect of dilutive securities — 2 — 1 Effect of dilutive underlying shares of the Series A Convertible Preferred Stock — — — — Weighted-average dilutive shares outstanding 220 220 220 219 Basic earnings per share: Continuing operations $ (0.01) $ 0.48 $ (1.05) $ 1.33 Discontinued operations 0.00 0.01 0.00 0.01 Net (loss) income per share $ (0.01) $ 0.49 $ (1.05) $ 1.34 Diluted earnings per share: Continuing operations $ (0.01) $ 0.47 $ (1.05) $ 1.33 Discontinued operations 0.00 0.01 0.00 0.01 Net (loss) income per share $ (0.01) $ 0.48 $ (1.05) $ 1.34 (1) Preferred stock dividends for the second quarter of 2020 were declared on June 19, 2020 and were paid in kind on June 30, 2020. Preferred stock dividends for the third quarter of 2020 were declared on September 21, 2020 and were paid in kind on September 30, 2020. |
Convertible Preferred Stock (Ta
Convertible Preferred Stock (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Convertible Preferred Stock [Abstract] | |
Preferred Stock | A summary of the activity for the outstanding Series A Preferred Stock and associated carrying value for the 39 weeks ended September 26, 2020 was as follows: Series A Preferred Stock Shares Amount Balance, December 28, 2019 — $ — Shares issued for cash - Series A Preferred Stock, net of issuance costs 500,000 491 Balance, June 27, 2020 500,000 491 Shares issued as paid in kind dividend - Series A Preferred Stock 5,288 5 Balance September 26, 2020 505,288 $ 496 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020 September 28, 2019 September 26, 2020 September 28, 2019 Accumulated other comprehensive loss components Retirement benefit obligations: Balance as of beginning of period (1) $ (51) $ (95) $ (52) $ (97) Reclassification adjustments: Amortization of net loss (2) (3) — 1 1 3 Settlements (2)(3) — 3 — 3 Total before income tax — 4 1 6 Income tax provision — 1 — 1 Current period comprehensive income, net of tax — 3 1 5 Balance as of end of period (1) $ (51) $ (92) $ (51) $ (92) Interest rate swaps: Balance as of beginning of period (1) $ (8) $ (1) $ (2) $ 13 Change in fair value of interest rate swaps — (1) (10) (15) Amounts reclassified to interest expense—net 2 (1) 4 (5) Total before income tax 2 (2) (6) (20) Income tax benefit — (1) (2) (5) Current period comprehensive income (loss), net of tax 2 (1) (4) (15) Balance as of end of period (1) $ (6) $ (2) $ (6) $ (2) Accumulated other comprehensive loss as of end of period (1) $ (57) $ (94) $ (57) $ (94) (1) Amounts are presented net of tax. (2) Included in the computation of net periodic benefit costs. See Note 16, Retirement Plans, for additional information. (3) Included in other income (expense)—net in the Company's Consolidated Statements of Comprehensive Income. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Detail) | 9 Months Ended |
Sep. 26, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 1 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) $ in Millions | Dec. 29, 2019USD ($) |
Adoption of ASU 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle | $ 1 |
Schedule of Disaggregation of R
Schedule of Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,848 | $ 6,531 | $ 16,747 | $ 19,005 |
Meats and seafood | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,069 | 2,352 | 5,989 | 6,849 |
Dry grocery products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 992 | 1,100 | 2,866 | 3,254 |
Refrigerated and frozen grocery products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 891 | 1,054 | 2,626 | 3,076 |
Dairy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 636 | 689 | 1,738 | 1,955 |
Equipment, disposables and supplies | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 638 | 628 | 1,768 | 1,822 |
Beverage products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 309 | 352 | 876 | 1,029 |
Produce | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 313 | $ 356 | $ 884 | $ 1,020 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, less allowances | $ 1,185 | $ 1,455 |
Prepaid expenses | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 26 | 35 |
Other assets | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 29 | $ 39 |
Business Acquisitions Smart Foo
Business Acquisitions Smart Foodservice - Additional Information (Details) - USD ($) $ in Millions | Apr. 24, 2020 | Sep. 26, 2020 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 |
Business Acquisition [Line Items] | |||||
Acquisition of businesses—net of cash | $ 973 | $ 1,829 | |||
Total debt | $ 5,787 | 5,787 | $ 4,736 | ||
Smart Foodservice | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses—net of cash | $ 973 | ||||
Revenue since acquisition date | 276 | 484 | |||
Earnings since acquisition date | 8 | 19 | |||
Acquisition related costs | 1 | 20 | |||
Senior secured term loan facility | 2020 Term Loan Facility | |||||
Business Acquisition [Line Items] | |||||
Total debt | $ 700 | $ 287 | $ 287 | $ 0 |
Business Acquisitions Smart F_2
Business Acquisitions Smart Foodservice - Purchase Price Allocation (Details) - USD ($) $ in Millions | Apr. 24, 2020 | Sep. 26, 2020 | Dec. 28, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,644 | $ 4,728 | |
Smart Foodservice | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 5 | ||
Inventories | 43 | ||
Other current assets | 20 | ||
Property and equipment | 85 | ||
Goodwill | 913 | ||
Other intangibles | 14 | ||
Other assets | 129 | ||
Accounts payable | (39) | ||
Accrued expenses and other current liabilities | (30) | ||
Deferred income taxes | (7) | ||
Other long-term liabilities, including financing leases | (160) | ||
Cash paid for acquisition | $ 973 | ||
Trade Names | Smart Foodservice | |||
Business Acquisition [Line Items] | |||
Amortizable trade name | $ 14 | ||
Minimum | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Estimated useful lives of intangible assets (in years) | 1 year |
Business Acquisitions Food Grou
Business Acquisitions Food Group - Additional Information (Details) - USD ($) $ in Millions | Sep. 13, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 |
Business Acquisition [Line Items] | ||||||
Long-term debt | $ 5,787 | $ 5,787 | $ 4,736 | |||
Senior secured term loan facility | 2019 Term Loan Facility | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt | $ 1,500 | 1,458 | 1,458 | $ 1,465 | ||
Food Group | ||||||
Business Acquisition [Line Items] | ||||||
Payments for acquisition | $ 1,800 | |||||
Acquisition related costs | $ 4 | $ 17 | $ 23 | $ 35 |
Business Acquisitions Food Gr_2
Business Acquisitions Food Group - Purchase Price Allocation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Dec. 28, 2019 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 5,644 | $ 4,728 |
Customer Relationships | ||
Business Acquisition [Line Items] | ||
Customer relationships | 736 | $ 789 |
Food Group | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 145 | |
Inventories | 165 | |
Assets of discontinued operations | 130 | |
Other current assets | 7 | |
Property and equipment | 210 | |
Goodwill | 764 | |
Other intangibles | 695 | |
Other assets | 47 | |
Accounts payable | (200) | |
Accrued expenses and other current liabilities | (69) | |
Liabilities of discontinued operations | (19) | |
Other long-term liabilities, including financing leases | (43) | |
Cash paid for acquisition | 1,832 | |
Indefinite-lived trade names | 39 | |
Food Group | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Customer relationships | $ 656 | |
Estimated useful lives of intangible assets (in years) | 15 years |
Business Acquisitions Pro Forma
Business Acquisitions Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Business Acquisitions Pro Forma Information [Abstract] | ||||
Pro forma net sales | $ 5,848 | $ 7,498 | $ 17,120 | $ 21,934 |
Pro forma net (loss) income available to common shareholders | $ (2) | $ 130 | $ (202) | $ 323 |
Pro forma basic earnings per share (per share) | $ (0.01) | $ 0.59 | $ (0.92) | $ 1.48 |
Pro forma diluted earnings per share (per share) | $ (0.01) | $ 0.59 | $ (0.92) | $ 1.47 |
Business Acquisitions Divested
Business Acquisitions Divested Entities Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Business Acquisition [Line Items] | ||||
Income from discontinued operations | $ 0 | $ 1 | $ 0 | $ 1 |
Food Group | ||||
Business Acquisition [Line Items] | ||||
Divested entities pro forma net sales | 114 | 372 | ||
Income from discontinued operations | $ 3 | $ 6 | ||
Divested entities pro forma basic earnings per share (per share) | $ 0.02 | $ 0.03 | ||
Divested entities pro forma diluted earnings per share (per share) | $ 0.01 | $ 0.03 |
Restricted Cash Restricted Cash
Restricted Cash Restricted Cash Table (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,019 | $ 90 | ||
Restricted cash—included in other assets | 0 | 8 | ||
Total cash, cash equivalents and restricted cash | $ 1,019 | $ 98 | $ 98 | $ 105 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |||||
LIFO balance sheet reserves | $ 161 | $ 161 | $ 152 | ||
Increase (decrease) of cost of goods sold from changes in LIFO reserves | $ 3 | $ 1 | 9 | $ 13 | |
Inventory Valuation Reserves | $ 40 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Schedule Of Financial Receivables [Line Items] | ||||||
Provision for doubtful accounts | $ 80 | $ 14 | ||||
Allowances for vendor receivables | $ 7 | 7 | $ 4 | |||
SEC Schedule, 12-09, Allowance, Credit Loss | ||||||
Schedule Of Financial Receivables [Line Items] | ||||||
Allowance for doubtful accounts | $ 30 | 30 | ||||
Provision for doubtful accounts | 80 | |||||
Adoption of ASU 2016-13 | 1 | |||||
Customer accounts written off—net of recoveries | (23) | |||||
Allowance for doubtful accounts | 88 | $ 88 | ||||
COVID-19 | ||||||
Schedule Of Financial Receivables [Line Items] | ||||||
Provision for doubtful accounts | $ (30) | $ (75) | $ 170 |
Accounts Receivable Financing_2
Accounts Receivable Financing Program (Detail) $ in Billions | Dec. 28, 2019USD ($) |
ABS Facility | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Accounts receivable | $ 1 |
Assets Held for Sale Schedule o
Assets Held for Sale Schedule of Assets Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Sep. 26, 2020 |
Movement in Property, Plant and Equipment [Roll Forward] | ||
Proceeds from sale of fixed assets | $ 32 | |
Gain on sale of fixed assets | $ 17 | |
Assets Held for Sale | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Balance beginning of period | $ 1 | |
Transfers in | 24 | |
Assets sold | (15) | |
Balance end of period | $ 10 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, accumulated depreciation | $ 2,505 | $ 2,505 | $ 2,298 | ||
Depreciation expense | $ 88 | $ 75 | $ 257 | $ 228 | |
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life (years) | 3 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, useful life (years) | 40 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Detail) - USD ($) | Jul. 01, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 |
Other Intangible Assets [Line Items] | |||||
Amortization expense | $ 21,000,000 | $ 12,000,000 | $ 59,000,000 | $ 32,000,000 | |
Indefinite-lived intangible assets, impairment | $ 0 | ||||
Trade Names | |||||
Other Intangible Assets [Line Items] | |||||
Indefinite-lived intangible assets, impairment | $ 9,400,000 | ||||
Customer Relationships | Minimum | |||||
Other Intangible Assets [Line Items] | |||||
Estimated useful lives of intangible assets (in years) | 1 year | ||||
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. 26, 2020 | Dec. 28, 2019 |
Other intangibles—net | ||
Goodwill | $ 5,644 | $ 4,728 |
Total other intangibles—net | 913 | 967 |
Brand Names and Trademarks | ||
Other intangibles—net | ||
Brand names and trademarks—not amortizing | 281 | 292 |
Customer Relationships | ||
Other intangibles—net | ||
Gross carrying amount | 736 | 789 |
Accumulated amortization | (114) | (115) |
Net carrying value | 622 | 674 |
Trade Names | ||
Other intangibles—net | ||
Gross carrying amount | 15 | 0 |
Accumulated amortization | (6) | 0 |
Net carrying value | 9 | 0 |
Noncompete Agreements | ||
Other intangibles—net | ||
Gross carrying amount | 3 | 3 |
Accumulated amortization | (2) | (2) |
Net carrying value | $ 1 | $ 1 |
Schedule of Fair Value Assets a
Schedule of Fair Value Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Assets | ||
Money market funds | $ 857 | |
Liabilities | ||
Interest rate swaps | 7 | $ 1 |
Level 1 | ||
Assets | ||
Money market funds | 857 | |
Liabilities | ||
Interest rate swaps | 0 | 0 |
Level 2 | ||
Assets | ||
Money market funds | 0 | |
Liabilities | ||
Interest rate swaps | 7 | 1 |
Level 3 | ||
Assets | ||
Money market funds | 0 | |
Liabilities | ||
Interest rate swaps | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Interest Rate Swaps (Detail) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | $ 7 | $ 1 |
Designated as Hedging Instrument [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | 7 | 1 |
Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | 7 | 0 |
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swaps | $ 0 | $ 1 |
Fair Value Measurements - Sch_2
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. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Loss Recognized in Accumulated Other Comprehensive Loss, net of tax | $ 0 | $ 0 | $ (8) | $ (11) |
Amount of Loss (Gain) Reclassified from Accumulated Other Comprehensive Loss to Income, net of tax | $ 2 | $ (1) | $ 4 | $ (4) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 26, 2020 | Jul. 31, 2020 | Dec. 28, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 7 | ||
Senior secured term loan facility | Initial Term Loan Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate (percent) | 1.91% | ||
Senior secured term loan facility | Interest rate swap | Initial Term Loan Facility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative notional amount | $ 733 | ||
Notional amount of debt hedged, fourth year | $ 550 | ||
Aggregate rate on notional amount (percent) | 3.45% | ||
Variable rate on notional amount (percent) | 1.70% | ||
Basis spread on variable rate on notional amount (percent) | 1.75% | ||
Senior notes | Senior Secured Notes due 2025 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate (percent) | 6.25% | ||
Senior notes | Senior Notes due 2024 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate (percent) | 5.875% | ||
Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Approximated fair value of debt | $ 5,700 | $ 4,700 | |
Fair Value | Senior notes | Senior Secured Notes due 2025 | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Approximated fair value of debt | 1,000 | ||
Fair Value | Senior notes | Senior Notes due 2024 | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Approximated fair value of debt | 601 | $ 619 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Approximated fair value of debt | $ 5,800 |
Debt - Schedule of Components o
Debt - Schedule of Components of Total Debt (Detail) - USD ($) $ in Thousands | Sep. 26, 2020 | Apr. 24, 2020 | Dec. 28, 2019 | Sep. 13, 2019 |
Debt Instrument [Line Items] | ||||
Total debt | $ 5,787,000 | $ 4,736,000 | ||
Current portion of long-term debt | (149,000) | (142,000) | ||
Long-term debt | 5,638,000 | 4,594,000 | ||
Revolving credit facility | ABL Facility | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 5,000 | |||
Interest rate (percent) | 0.00% | |||
Total debt | $ 0 | 0 | ||
Revolving credit facility | ABS Facility | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 0.00% | |||
Total debt | $ 0 | 190,000 | ||
Senior secured term loan facility | Initial Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 3,000 | 4,000 | ||
Interest rate (percent) | 1.91% | |||
Total debt | $ 2,109,000 | 2,125,000 | ||
Senior secured term loan facility | 2019 Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 31,000 | 35,000 | ||
Interest rate (percent) | 3.07% | |||
Total debt | $ 1,458,000 | 1,465,000 | $ 1,500,000 | |
Senior secured term loan facility | 2020 Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 12,000 | 0 | ||
Interest rate (percent) | 4.25% | |||
Total debt | $ 287,000 | $ 700,000 | 0 | |
Senior notes | Senior Secured Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 14,000 | |||
Interest rate (percent) | 6.25% | |||
Total debt | $ 986,000 | 0 | ||
Senior notes | Senior Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 4,000 | 4,000 | ||
Interest rate (percent) | 5.875% | |||
Total debt | $ 596,000 | 596,000 | ||
Lease agreements | Obligations under financing leases | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 343,000 | 352,000 | ||
Lease agreements | Obligations under financing leases | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 1.63% | |||
Lease agreements | Obligations under financing leases | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 6.17% | |||
Other debt obligations | Other debt | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 8,000 | $ 8,000 | ||
Other debt obligations | Other debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 5.75% | |||
Other debt obligations | Other debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate (percent) | 9.00% |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 5,787 | $ 4,736 |
Initial Term Loan Facility | Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Total debt | 2,109 | $ 2,125 |
Initial Term Loan Facility | Interest rate swap | Senior secured term loan facility | ||
Debt Instrument [Line Items] | ||
Total debt | $ 550 | |
Percentage of principal amount of total debt borrowed at floating rate (percent) | 57.00% |
Debt - ABL Facility (Detail)
Debt - ABL Facility (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 26, 2020 | May 04, 2020 | May 03, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 5,787 | $ 4,736 | ||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Amount of debt resulting in spring maturity | $ 300 | |||
Revolving credit facility | ABL Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 1,990 | $ 1,600 | ||
Unused capacity, commitment fee (percentage) | 0.25% | |||
Unamortized deferred financing costs | $ 5 | |||
Total debt | 0 | $ 0 | ||
Letters of credit, outstanding amount | 274 | |||
Available capacity | 1,716 | |||
Revolving credit facility | ABL Facility | Third party costs | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 3 | |||
Revolving credit facility | ABL Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 1.00% | |||
Revolving credit facility | ABL Facility | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 0.00% | |||
Revolving credit facility | ABL Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 1.00% | |||
Revolving credit facility | ABL Facility | Minimum | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 0.00% | |||
Revolving credit facility | ABL Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 1.50% | |||
Revolving credit facility | ABL Facility | Maximum | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 0.50% |
Debt - ABS Facility (Detail)
Debt - ABS Facility (Detail) - ABS Facility - Revolving credit facility $ in Millions | 3 Months Ended |
Sep. 26, 2020USD ($) | |
Debt Instrument [Line Items] | |
Repayments of Debt | $ 542 |
Loss on extinguishment of debt | $ 1 |
Debt - Term Loan Agreement (Det
Debt - Term Loan Agreement (Detail) - USD ($) | 9 Months Ended | |||
Sep. 26, 2020 | Apr. 24, 2020 | Dec. 28, 2019 | Sep. 13, 2019 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 5,787,000,000 | $ 4,736,000,000 | ||
Senior secured term loan facility | Initial Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument original amount | 2,200,000,000 | |||
Total debt | 2,109,000,000 | 2,125,000,000 | ||
Unamortized deferred financing costs | 3,000,000 | 4,000,000 | ||
Senior secured term loan facility | Initial Term Loan Facility | Interest rate swap | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 550,000,000 | |||
Aggregate interest rate (percent) | 3.45% | |||
Senior secured term loan facility | 2019 Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument original amount | $ 1,500,000,000 | |||
Total debt | 1,458,000,000 | 1,465,000,000 | $ 1,500,000,000 | |
Unamortized deferred financing costs | $ 31,000,000 | 35,000,000 | ||
Senior secured term loan facility | 2019 Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 2.00% | |||
Senior secured term loan facility | 2019 Term Loan Facility | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 1.00% | |||
Senior secured term loan facility | 2020 Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument original amount | $ 700,000,000 | |||
Total debt | 287,000,000 | $ 700,000,000 | 0 | |
Unamortized deferred financing costs | 12,000,000 | $ 0 | ||
Repayments of Debt | 400,000,000 | |||
Loss on extinguishment of debt | 2,000,000 | |||
Remaining 2020 Term Loan principal | 300,000,000 | |||
Senior secured term loan facility | 2020 Term Loan Facility | Third party costs | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred financing costs | $ 13,000,000 | |||
Senior secured term loan facility | 2020 Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 3.25% | |||
Senior secured term loan facility | 2020 Term Loan Facility | Alternative Base Rate | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 2.25% | |||
Senior secured term loan facility | 2020 Term Loan Facility | Interest Rate Floor [Member] | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 1.00% | |||
Senior secured term loan facility | 2020 Term Loan Facility | Contractual Interest Rate Increase [Member] | ||||
Debt Instrument [Line Items] | ||||
Margin spread on variable rate (percent) | 0.50% |
Debt Debt - Senior Secured Note
Debt Debt - Senior Secured Notes (Detail) - USD ($) | 9 Months Ended | ||
Sep. 26, 2020 | Apr. 24, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | |||
Total debt | $ 5,787,000,000 | $ 4,736,000,000 | |
Senior notes | Senior Secured Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Debt instrument original amount | $ 1,000,000,000 | ||
Interest rate (percent) | 6.25% | ||
Total debt | $ 986,000,000 | 0 | |
Unamortized deferred financing costs | $ 14,000,000 | ||
Senior notes | Senior Secured Notes due 2025 | Debt redemption, period one | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price (percent) | 103.13% | ||
Senior notes | Senior Secured Notes due 2025 | Debt redemption, period two | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price (percent) | 101.56% | ||
Senior notes | Senior Secured Notes due 2025 | Debt redemption, period three (percent) | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price (percent) | 100.00% | ||
Senior secured term loan facility | 2020 Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument original amount | $ 700,000,000 | ||
Interest rate (percent) | 4.25% | ||
Repayments of Debt | $ 400,000,000 | ||
Total debt | 287,000,000 | $ 700,000,000 | 0 |
Unamortized deferred financing costs | $ 12,000,000 | $ 0 |
Debt - Restrictive Covenants (D
Debt - Restrictive Covenants (Detail) $ in Billions | Sep. 26, 2020USD ($) |
Debt Disclosure [Abstract] | |
Restricted payment capacity | $ 1.3 |
Restricted assets | $ 2.7 |
Restructuring Liabilities (Deta
Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve | $ 1 | |||
Restructuring Costs | $ 23 | $ 0 | 39 | $ 0 |
Payments for Restructuring | (26) | |||
Restructuring Reserve | 5 | 5 | ||
Severance and Related Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve | 1 | |||
Restructuring Costs | 28 | |||
Payments for Restructuring | (25) | |||
Restructuring Reserve | 4 | 4 | ||
Facility Closing Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve | 0 | |||
Restructuring Costs | 2 | |||
Payments for Restructuring | (1) | |||
Restructuring Reserve | 1 | 1 | ||
Severance and Related Costs and Facility Closing Costs [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Costs | $ 14 | $ 30 |
Leases - Balance Sheet Location
Leases - Balance Sheet Location of ROU Assets and Lease Liabilities (Detail) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 28, 2019 |
ASSETS | ||
Operating | $ 271 | $ 145 |
Financing | 327 | 333 |
Total leased assets | 598 | 478 |
Current: | ||
Operating | 47 | 40 |
Financing | 93 | 95 |
Noncurrent: | ||
Operating | 250 | 131 |
Financing | 250 | 257 |
Total lease liabilities | 640 | 523 |
Finance lease assets, net of accumulated amortization | $ 243 | $ 269 |
Leases - Location of Lease Cost
Leases - Location of Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 10 | $ 7 | $ 36 | $ 21 |
Amortization of leased assets | 19 | 21 | 60 | 60 |
Interest on lease liabilities | 3 | 3 | 9 | 9 |
Variable lease cost | 4 | 2 | 10 | 5 |
Net lease cost | $ 36 | $ 33 | $ 115 | $ 95 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Operating Leases | ||
Remainder of 2020 | $ 11 | |
2021 | 62 | |
2022 | 56 | |
2023 | 54 | |
2024 | 35 | |
2025 | 34 | |
After 2025 | 164 | |
Total lease payments | 416 | |
Less amount representing interest | (119) | |
Present value of lease liabilities | 297 | |
Finance Leases | ||
Remainder of 2020 | 32 | |
2021 | 93 | |
2022 | 70 | |
2023 | 67 | |
2024 | 50 | |
2025 | 31 | |
After 2025 | 25 | |
Total lease payments | 368 | |
Less amount representing interest | (25) | |
Present value of lease liabilities | 343 | |
Total | ||
Remainder of 2020 | 43 | |
2021 | 155 | |
2022 | 126 | |
2023 | 121 | |
2024 | 85 | |
2025 | 65 | |
After 2025 | 189 | |
Total lease payments | 784 | |
Less amount representing interest | (144) | |
Present value of lease liabilities | 640 | |
Operating lease payments | $ 37 | $ 24 |
Leases - Future Minimum Lease_2
Leases - Future Minimum Lease Payments Prior Year (Details) $ in Millions | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 48 |
2021 | 38 |
2022 | 33 |
2023 | 30 |
2024 | 12 |
After 2024 | 42 |
Total lease payments | 203 |
Less amount representing interest | (32) |
Present value of minimum lease payments | 171 |
Financing Leases | |
2020 | 106 |
2021 | 84 |
2022 | 62 |
2023 | 58 |
2024 | 41 |
After 2024 | 29 |
Total lease payments | 380 |
Less amount representing interest | (28) |
Present value of minimum lease payments | 352 |
Total | |
2020 | 154 |
2021 | 122 |
2022 | 95 |
2023 | 88 |
2024 | 53 |
After 2024 | 71 |
Total lease payments | 583 |
Less amount representing interest | (60) |
Present value of minimum lease payments | $ 523 |
Leases - Other Information Rela
Leases - Other Information Related to Lease Agreements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Cash Paid For Amounts Included In Measurement of Liabilities | ||
Operating cash flows from operating leases | $ 37 | $ 24 |
Operating cash flows from financing leases | 9 | 9 |
Financing cash flows from financing leases | $ 72 | $ 49 |
Weighted-average remaining lease term (years): | ||
Operating leases | 8 years 5 months 4 days | 5 years 9 months 18 days |
Financing leases | 5 years 4 months 2 days | 5 years 3 months 18 days |
Weighted-average discount rate: | ||
Operating leases | 6.70% | 4.60% |
Financing leases | 3.20% | 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. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | 8 | 10 | 23 | 28 |
Expected return on plan assets | (14) | (13) | (40) | (37) |
Amortization of net loss | 0 | 1 | 1 | 3 |
Settlements | 0 | 3 | 0 | 3 |
Net periodic pension benefit costs (credits) | $ (5) | $ 2 | $ (14) | $ (1) |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | Apr. 24, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlements | $ 0 | $ 3 | $ 0 | $ 3 | |
Employer matching contribution | 11 | 13 | 34 | 38 | |
Multiemployer plan contributions | $ 11 | $ 10 | $ 33 | $ 28 | |
Smart Foodservice | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Smart Foodservice Benefit Obligation | $ 20 |
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. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Numerator: | ||||||||
Income (loss) from continuing operations | $ 8 | $ 105 | $ (216) | $ 292 | ||||
Income from discontinued operations | 0 | 1 | 0 | 1 | ||||
Net income (loss) | 8 | $ (92) | $ (132) | 106 | $ 116 | $ 71 | (216) | 293 |
Series A Convertible Preferred Stock Dividends | 10 | 0 | 15 | 0 | ||||
Net (loss) income available to common shareholders | $ (2) | $ 106 | $ (231) | $ 293 | ||||
Denominator: | ||||||||
Weighted-average common shares outstanding | 220 | 218 | 220 | 218 | ||||
Effect of dilutive securities | 0 | 2 | 0 | 1 | ||||
Effect of dilutive underlying shares of the Series A Convertible Preferred Stock | 0 | 0 | 0 | 0 | ||||
Weighted-average dilutive shares outstanding | 220 | 220 | 220 | 219 | ||||
Continuing operations | $ (0.01) | $ 0.48 | $ (1.05) | $ 1.33 | ||||
Discontinued operations | 0 | 0.01 | 0 | 0.01 | ||||
Net (loss) income per share | (0.01) | 0.49 | (1.05) | 1.34 | ||||
Continuing operations | (0.01) | 0.47 | (1.05) | 1.33 | ||||
Discontinued operations | 0 | 0.01 | 0 | 0.01 | ||||
Net (loss) income per share | $ (0.01) | $ 0.48 | $ (1.05) | $ 1.34 |
Earnings Per Share Other Inform
Earnings Per Share Other Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Common shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9 | 1 | 9 | 2 |
Series A Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 23 | 12 |
Convertible Preferred Stock (De
Convertible Preferred Stock (Details) | Sep. 30, 2020shares | Jun. 30, 2020shares | May 06, 2020USD ($)$ / sharesshares | Sep. 26, 2020USD ($)$ / sharesshares | Jun. 27, 2020USD ($)shares | Dec. 28, 2019$ / shares |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Preferred Stock, Shares Outstanding, Beginning Balance | 500,000 | 0 | ||||
Preferred stock, Number of shares issued | 500,000 | |||||
Preferred Stock Dividends, Shares | 5,288,000 | 5,288 | ||||
Preferred Stock, Shares Outstanding, Ending Balance | 505,288 | 500,000 | ||||
Preferred Stock, Value, Outstanding, Beginning Balance | $ | $ 491,000,000 | $ 0 | ||||
Dividends, Preferred Stock | $ | 5,000,000 | |||||
Preferred Stock, Value, Issued | $ | 491,000,000 | |||||
Preferred Stock, Value, Outstanding, Ending Balance | $ | $ 496,000,000 | $ 491,000,000 | ||||
Preferred stock, Number of shares issued | 500,000 | |||||
Preferred stock par value (dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ | $ 500,000,000 | |||||
Preferred Stock Per Share Proceeds | $ / shares | $ 1,000 | |||||
Preferred Stock Dividends, Shares | 5,288,000 | 5,288 | ||||
Common stock par value (dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Preferred stock liquidation preference per share (dollars per share) | $ | $ 1,000 | |||||
Preferred stock dividend rate (percent) | 7.00% | |||||
Preferred stock, dividend rate percentage increase (percent) | 3.00% | |||||
Preferred stock, dividend rate percentage subsequent years (percent) | 10.00% | |||||
Preferred stock conversion price (dollars per share) | $ / shares | $ 21.50 | |||||
Preferred stock, shares issued upon conversion per share | 46.5116 | |||||
Preferred stock, redemption price (dollars per share) | $ / shares | $ 43 | |||||
Preferred stock liquidation preference per share (percent) | 1 | |||||
Preferred stock, redemption percentage after fifth anniversary (percent) | 1.05 | |||||
Preferred stock, redemption percentage after sixth anniversary (percent) | 1.03 | |||||
Preferred stock, redemption percentage after seventh anniversary (percent) | 1 | |||||
Preferred stock redemption premium (percent) | $ | $ 0.05 | |||||
Subsequent Event | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Preferred Stock Dividends, Shares | 8,842 | |||||
Preferred Stock Dividends, Shares | 8,842 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 3,500 | $ 3,435 | $ 3,709 | $ 3,229 |
Settlements | 0 | (3) | 0 | (3) |
Balance at end of period | 3,515 | 3,557 | 3,515 | 3,557 |
Retirement benefit obligations | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (51) | (95) | (52) | (97) |
Total before income tax | 0 | 4 | 1 | 6 |
Income tax benefit | 0 | 1 | 0 | 1 |
Current period comprehensive income (loss), net of tax | 0 | 3 | 1 | 5 |
Balance at end of period | (51) | (92) | (51) | (92) |
Amortization of net loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 1 | 1 | 3 |
Settlements | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Settlements | 0 | 3 | 0 | 3 |
Interest rate swap | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (8) | (1) | (2) | 13 |
Change in fair value of interest rate swaps | 0 | (1) | (10) | (15) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2 | (1) | 4 | (5) |
Total before income tax | 2 | (2) | (6) | (20) |
Income tax benefit | 0 | (1) | (2) | (5) |
Current period comprehensive income (loss), net of tax | 2 | (1) | (4) | (15) |
Balance at end of period | (6) | (2) | (6) | (2) |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (59) | (96) | (54) | (84) |
Balance at end of period | $ (57) | $ (94) | $ (57) | $ (94) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 06, 2020 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 |
Related Party Transaction [Line Items] | ||||
Preferred stock, Number of shares issued | 500,000 | 500,000 | 0 | |
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 500 | |||
Preferred Stock Per Share Proceeds | $ 1,000 | |||
FMR LLC | Long-term Debt [Member] | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | $ 60 | |||
KKR Capital Markets LLC | ||||
Related Party Transaction [Line Items] | ||||
Preferred stock, Number of shares issued | 500,000 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 500 | |||
Preferred Stock Per Share Proceeds | $ 1,000 | |||
Payments of Debt Restructuring Costs | 6 | $ 5 | ||
KKR Capital Markets LLC | Long-term Debt [Member] | ||||
Related Party Transaction [Line Items] | ||||
Principal amount | $ 64 | |||
U S Foods Holding Corp [Member] | FMR LLC | ||||
Related Party Transaction [Line Items] | ||||
Percentage of company's outstanding common stock | 11.00% | |||
U S Foods Holding Corp [Member] | KKR Capital Markets LLC | ||||
Related Party Transaction [Line Items] | ||||
Percentage of company's outstanding common stock | 9.60% |
Taxes - Additional Information
Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 58.00% | 27.00% | 20.00% | 25.00% |
Federal corporate income tax rate (percent) | 21.00% | 21.00% | 21.00% | 21.00% |
Income (loss) before income taxes | $ 21 | $ 144 | $ (269) | $ 389 |
Deferred tax asset expense | 2 | |||
Tax expense (benefit) related to excess tax benefits associated with share-based compensation | $ 2 | $ 3 | ||
Tax expense related to a change in valuation allowance | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Sep. 26, 2020USD ($) |
Purchase orders and contract commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | $ 1,119 |
Information technology commitments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | 63 |
Diesel fuel | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | 71 |
Electricity [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase commitments | $ 5 |
Business Information - Addition
Business Information - Additional Information (Detail) | 9 Months Ended |
Sep. 26, 2020segment | |
Segment Reporting [Abstract] | |
Number of business segments | 1 |