| Document and Entity Information | ||
| 3 Months Ended
Mar. 27, 2010 | Apr. 23, 2010
| |
| Document Type | 10-Q | |
| Amendment Flag | false | |
| Document Period End Date | 2010-03-27 | |
| Document Fiscal Year Focus | 2,010 | |
| Document Fiscal Period Focus | Q1 | |
| Entity Registrant Name | PUBLIX SUPER MARKETS INC | |
| Entity Central Index Key | 0000081061 | |
| Current Fiscal Year End Date | --12-25 | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 791,571,000 |
| CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | ||
| In Thousands | Mar. 27, 2010
| Dec. 26, 2009
|
| Current assets: | ||
| Cash and cash equivalents | $825,249 | $370,516 |
| Short-term investments | 125,719 | 110,499 |
| Trade receivables | 467,053 | 506,500 |
| Merchandise inventories | 1,345,484 | 1,385,273 |
| Deferred tax assets | 58,954 | 54,087 |
| Prepaid expenses | 29,050 | 22,477 |
| Total current assets | 2,851,509 | 2,449,352 |
| Long-term investments | 2,434,331 | 2,086,532 |
| Other noncurrent assets | 159,765 | 206,824 |
| Property, plant and equipment | 8,106,973 | 7,921,946 |
| Accumulated depreciation | (3,734,813) | (3,660,362) |
| Net property, plant and equipment | 4,372,160 | 4,261,584 |
| Assets, Total | 9,817,765 | 9,004,292 |
| Current liabilities: | ||
| Accounts payable | 1,148,970 | 1,125,073 |
| Accrued expenses: | ||
| Contribution to retirement plans | 179,630 | 349,650 |
| Self-insurance reserves | 116,409 | 119,375 |
| Salaries and wages | 140,364 | 99,548 |
| Dividends payable | 364,084 | |
| Other | 333,662 | 228,720 |
| Current portion of long-term debt | 58,018 | 29,151 |
| Federal and state income taxes | 243,175 | 28,575 |
| Total current liabilities | 2,584,312 | 1,980,092 |
| Deferred tax liabilities | 162,998 | 203,069 |
| Self-insurance reserves | 229,086 | 229,589 |
| Accrued postretirement benefit cost | 84,060 | 83,368 |
| Long-term debt | 97,942 | 70,175 |
| Other noncurrent liabilities | 128,385 | 134,461 |
| Stockholders' equity: | ||
| Common stock of $1 par value. Authorized 1,000,000 shares; issued 793,566 shares in 2010 and 780,566 shares in 2009 | 793,566 | 780,566 |
| Additional paid-in capital | 1,053,001 | 837,969 |
| Retained earnings | 4,638,199 | 4,637,884 |
| Treasury stock at cost, 1,956 shares in 2010 | (33,941) | |
| Accumulated other comprehensive earnings | 35,302 | 43,205 |
| Total stockholders' equity | 6,486,127 | 6,299,624 |
| Noncontrolling interests | 44,855 | 3,914 |
| Total equity | 6,530,982 | 6,303,538 |
| Liabilities and Stockholders' Equity, Total | $9,817,765 | $9,004,292 |
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
| Share data in Thousands, except Per Share data | Mar. 27, 2010
| Dec. 26, 2009
|
| Common stock, par value | $1 | $1 |
| Common stock, Authorized | 1,000,000 | 1,000,000 |
| Common stock, issued | 793,566 | 780,566 |
| Treasury stock at cost, shares | 1,956 | 0 |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | ||
| In Thousands, except Per Share data | 3 Months Ended
Mar. 27, 2010 | 3 Months Ended
Mar. 28, 2009 |
| Revenues: | ||
| Sales | $6,501,357 | $6,368,318 |
| Other operating income | 47,308 | 48,329 |
| Total revenues | 6,548,665 | 6,416,647 |
| Costs and expenses: | ||
| Cost of merchandise sold | 4,686,033 | 4,602,784 |
| Operating and administrative expenses | 1,338,926 | 1,325,389 |
| Total costs and expenses | 6,024,959 | 5,928,173 |
| Operating profit | 523,706 | 488,474 |
| Investment income | 23,628 | 17,851 |
| Other-than-temporary impairment losses | (17,440) | |
| Investment income, net | 23,628 | 411 |
| Other income, net | 6,263 | 5,162 |
| Earnings before income tax expense | 553,597 | 494,047 |
| Income tax expense | 189,198 | 172,539 |
| Net earnings | $364,399 | $321,508 |
| Weighted average shares outstanding | 782,823 | 791,104 |
| Basic and diluted earnings per share | 0.47 | 0.41 |
| Cash dividends declared per common share | 0.46 | 0.41 |
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 27, 2010 | 3 Months Ended
Mar. 28, 2009 |
| Net earnings | $364,399 | $321,508 |
| Other comprehensive earnings: | ||
| Unrealized (loss) gain on investment securities - available-for-sale (AFS), net of tax effect of ($1,796) and $3,040 in 2010 and 2009, respectively | (2,851) | 4,827 |
| Reclassification adjustment for net realized (gain) loss on investment securities - AFS, net of tax effect of ($3,191) and $8,244 in 2010 and 2009, respectively | (5,067) | 13,091 |
| Adjustment to postretirement benefit plan obligation, net of tax effect of $9 in 2010 | 15 | |
| Comprehensive earnings | $356,496 | $339,426 |
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 27, 2010 | 3 Months Ended
Mar. 28, 2009 |
| Unrealized (loss) gain on investment securities -available-for-sale (AFS), tax effect | ($1,796) | $3,040 |
| Reclassification adjustment for net realized (gain) loss on investment securities -AFS, tax effect | (3,191) | 8,244 |
| Adjustment to postretirement benefit plan obligation, tax effect | $9 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
| In Thousands | 3 Months Ended
Mar. 27, 2010 | 3 Months Ended
Mar. 28, 2009 |
| Cash flows from operating activities: | ||
| Cash received from customers | $6,551,694 | $6,342,091 |
| Cash paid to employees and suppliers | (5,559,612) | (5,506,452) |
| Income taxes paid | (14,879) | (17,032) |
| Payment for self-insured claims | (62,988) | (62,193) |
| Dividends and interest received | 24,984 | 19,152 |
| Other operating cash receipts | 44,956 | 45,914 |
| Other operating cash payments | (1,236) | (1,418) |
| Net cash provided by operating activities | 982,919 | 820,062 |
| Cash flows from investing activities: | ||
| Payment for property, plant and equipment | (101,880) | (212,075) |
| Proceeds from sale of property, plant and equipment | 611 | 672 |
| Payment for investments | (563,791) | (242,327) |
| Proceeds from sale and maturity of investments | 187,231 | 156,128 |
| Net cash used in investing activities | (477,829) | (297,602) |
| Cash flows from financing activities: | ||
| Payment for acquisition of common stock | (99,485) | (284,185) |
| Proceeds from sale of common stock | 44,381 | 36,791 |
| Other, net | 4,747 | 2,052 |
| Net cash used in financing activities | (50,357) | (245,342) |
| Net increase in cash and cash equivalents | 454,733 | 277,118 |
| Cash and cash equivalents at beginning of period | 370,516 | 201,813 |
| Cash and cash equivalents at end of period | 825,249 | 478,931 |
| Reconciliation of net earnings to net cash provided by operating activities: | ||
| Net earnings | 364,399 | 321,508 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation and amortization | 125,254 | 121,161 |
| Retirement contributions paid or payable in common stock | 79,175 | 68,952 |
| Deferred income taxes | (39,960) | (15,092) |
| Loss on disposal and impairment of property, plant and equipment and goodwill | 7,574 | 13,738 |
| (Gain) loss on sale and impairment of investments | (8,258) | 21,335 |
| Net amortization of investments | 8,894 | 278 |
| Changes in operating assets and liabilities providing (requiring) cash: | ||
| Trade receivables | 41,423 | (36,751) |
| Merchandise inventories | 39,789 | 89,800 |
| Prepaid expenses and other noncurrent assets | (8,353) | (9,016) |
| Accounts payable and accrued expenses | 167,211 | 71,551 |
| Self-insurance reserves | (3,469) | 1,185 |
| Federal and state income taxes | 214,600 | 170,895 |
| Other noncurrent liabilities | (5,360) | 518 |
| Total adjustments | 618,520 | 498,554 |
| Net cash provided by operating activities | $982,919 | $820,062 |
| Basis of Presentation | |
| 3 Months Ended
Mar. 27, 2010 | |
| Basis of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Publix Super Markets, Inc. and subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, the accompanying statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments that are of a normal and recurring nature necessary to present fairly the Companys financial position, results of operations and cash flows. Due to the seasonal nature of the Companys business, the results of operations for the three months ended March27, 2010 are not necessarily indicative of the results for the entire 2010 fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Companys Annual Report on Form 10-K for the year ended December26, 2009. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain 2009 amounts have been reclassified to conform with the 2010 presentation in the condensed consolidated balance sheets primarily due to the adoption of an amendment to the standard of accounting for Variable Interest Entities (VIE). |
| New Accounting Standards | |
| 3 Months Ended
Mar. 27, 2010 | |
| New Accounting Standards | (2) New Accounting Standards Recently Adopted Standards In January 2010, the Financial Accounting Standards Board (FASB) issued an amendment to the standards of accounting for fair value measurements and disclosures. This amendment requires expanded disclosures about the different classes of assets and liabilities measured at fair value, the transfers between Level 1 and Level 2 fair value measurement categories and the valuation techniques and inputs used to determine the fair value of assets and liabilities classified in Level 2 and Level 3 measurement categories. The adoption of this amendment during the quarter ended March27, 2010 did not have an effect on the Companys financial condition, results of operations or cash flows. In June 2009, the FASB issued a new standard that changes the definition of a VIE, contains new criteria for determining the primary beneficiary of a VIE, requires enhanced disclosures to provide more information about a companys involvement in a VIE and increases the frequency of required reassessments to determine whether a company is the primary beneficiary of a VIE. The adoption of this standard resulted in the consolidation of certain joint ventures (JV) in which the Company has a controlling financial interest. The Company is considered to have a controlling financial interest in a JV when it has (1)the power to direct the activities of the JV that most significantly impact the JVs economic performance and (2)the obligation to absorb losses or the right to receive benefits from the JV that could potentially be significant to such JV. The adoption of this standard during the quarter ended March27, 2010 did not have a material effect on the Companys financial condition, results of operations or cash flows (see Note 5). |
| Fair Value of Financial Instruments | |
| 3 Months Ended
Mar. 27, 2010 | |
| Fair Value of Financial Instruments | (3) Fair Value of Financial Instruments The fair value of certain of the Companys financial instruments, including cash and cash equivalents, trade receivables and accounts payable, approximate their respective carrying amounts due to their short-term maturity. The fair value of available-for-sale (AFS) securities are based on market prices using the following measurement categories: Level 1 Fair value is determined by using quoted prices in active markets for identical investments. AFS securities that are included in this category are primarily equity securities. Level 2 Fair value is determined by using other than quoted prices. By using observable inputs (for example benchmark yields, interest rates, reported trades, broker dealer quotes), the fair value is determined through processes such as benchmark curves, benchmarking of like securities and matrix pricing of corporate and municipal bonds by using pricing of similar bonds based on coupons, ratings and maturities. In addition, the value of collateralized mortgage obligation securities are determined by use of models to develop prepayment and interest rate scenarios for these securities which have prepayment features. AFS securities that are included in this category are primarily tax exempt and taxable bonds. Level 3 Fair value is determined by using other than observable inputs. Fair value is determined by using the best information available in the circumstances and requires significant management judgment or estimation. No AFS securities are currently included in this category. Following is a summary of fair value measurements for AFS securities as of March27, 2010 and December26, 2009: Fair Value Level1 Level2 Level3 (Amounts are in thousands) March27, 2010 $ 2,560,050 196,252 2,363,798 December26, 2009 2,197,031 189,053 2,007,978 |
| Investments | |
| 3 Months Ended
Mar. 27, 2010 | |
| Investments | (4) Investments All of the Companys debt and equity investments are classified as AFS and are carried at fair value. The Company evaluates whether AFS securities are other-than-temporarily impaired (OTTI) based on criteria that include the extent to which cost exceeds market value, the duration of the market decline, the credit rating of the issuer or security, the failure of the issuer to make scheduled principal or interest payments and the financial health and prospects of the issuer or security. Declines in the value of AFS securities determined to be OTTI are recognized in earnings and reported as other-than-temporary impairment losses. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the debt security or if the Company will be required to sell the debt security prior to any anticipated recovery. If the Company determines that a debt security is OTTI under these circumstances, the impairment recognized in earnings is measured as the difference between the amortized cost and the current fair value. A debt security is also determined to be OTTI if the Company does not expect to recover the amortized cost of the security. However, in this circumstance, if the Company does not intend to sell the debt security and will not be required to sell the debt security, the impairment recognized in earnings equals the estimated credit loss as measured by the difference between the present value of expected cash flows and the amortized cost of the debt security. Expected cash flows are discounted using the debt securitys effective interest rate. An equity security is determined to be OTTI if the Company does not expect to recover the cost of the security. Declines in the value of AFS securities determined to be temporary are reported, net of tax, as other comprehensive losses and included as a component of stockholders equity. Interest and dividend income, amortization of premiums, accretion of discounts and realized gains and losses on AFS securities are included in investment income. Interest income is accrued as earned. Dividend income is recognized as income on the ex-dividend date of the stock. The cost of securities sold is based on the specific identification method. Following is a summary of investments as of March27, 2010 and December26, 2009: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Amounts are in thousands) March27, 2010 Available-for-sale: Tax exempt bonds $ 1,378,043 16,548 2,779 1,391,812 Taxable bonds 955,744 8,493 4,153 960,084 Equity securities 159,605 51,250 2,701 208,154 $ 2,493,392 76,291 9,633 2,560,050 December26, 2009 Available-for-sale: Tax exempt bonds $ 1,193,775 20,210 598 1,213,387 Taxable bonds 772,399 10,383 3,304 779,478 Equity securities 151,294 55,080 2,208 204,166 $ 2,117,468 85,673 6,110 2,197,031 Realized gains on sales of AFS securi |
| Consolidation of Joint Ventures | |
| 3 Months Ended
Mar. 27, 2010 | |
| Consolidation of Joint Ventures | (5) Consolidation of Joint Ventures From time to time, the Company enters into JVs, in the legal form of limited liability companies, with certain real estate developers to partner in the development of shopping centers with the Company as the anchor tenant. The JVs are financed with capital contributions from the members, loans guaranteed by the members and/or with the cash flows generated by the shopping centers once in operation. Generally, all major decision making in the Companys JVs is shared between all members. In particular, the use and sale of JV assets, business plans and budgets are generally required to be approved by all members. Management and other fees paid by the JV to a member are nominal and believed to be at market. The Company evaluates these JVs using specific criteria to determine whether the Company has a controlling financial interest and is the primary beneficiary of the JV. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of the other JV members, voting rights, involvement in day to day capital and operating decisions and each members influence over the shopping centers economic performance. The consolidation of certain JVs during the quarter ended March27, 2010 did not have an effect on beginning retained earnings since the earnings and losses of these JVs were previously accounted for under the equity method. The noncash balance sheet effect from the consolidation of these JVs as of the beginning of the quarter ended March27, 2010 was as follows: Increase(decrease) in Asset,LiabilityorEquity (Amountsareinthousands) Trade receivables $ 1,976 Prepaid expenses 316 Other noncurrent assets (39,331 ) Property, plant and equipment 132,311 Accounts payable 1,957 Accrued expenses - other 487 Long-term debt 55,837 Noncontrolling interests 36,991 As of March27, 2010, the carrying amounts of the assets and liabilities of the consolidated JVs, including previously consolidated JVs, were $232,300,000 and $129,400,000, respectively. The Companys debt results primarily from the consolidation of certain JVs. The assets are owned by, and the liabilities are obligations of, the JVs, not the Company, except for a portion of the long-term debt guaranteed by the Company. The long-term debt maturities range from June 2011 through January 2015 and have (1)fixed interest rates ranging from 4.25% to 5.28% or (2)variable interest rates based on a LIBOR index plus basis points ranging from 80 basis points to 200 basis points. Total earnings attributable to noncontrolling interests for the quarters ended March27, 2010 and March28, 2009 were immaterial. The Companys involvement with these JVs does not have a significant effect on the Companys financial condition, results of operations or cash flows. |
