UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 28, 201926, 2020
Commission File Number: 000-00981
ck0000081061-20201226_g1.jpg
PUBLIX SUPER MARKETS, INC.
(Exact name of Registrant as specified in its charter)
Florida59-0324412
(State of incorporation)(I.R.S. Employer Identification No.)
3300 Publix Corporate Parkway, Lakeland, Florida33811
(Address of principal executive offices)(Zip Code)
(863) 688-1188
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock $1.00 Par Value
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.      
Yes         No    X  
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.      
Yes         No    X  
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes    X         No  
Yes    X         No  
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months.
Yes    X         No  
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer     Accelerated filer    Non-accelerated filer    X  
Smaller reporting company     Emerging growth company  
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act by the registered public accounting firm that prepared or issued its audit report.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes         No    X  
The aggregate market value of the common stock held by non-affiliates of the Registrant was approximately $17,909,696,000$19,947,149,000 as of June 28, 2019,26, 2020, the last business day of the Registrant’s most recently completed second fiscal quarter.
The number of shares of the Registrant’s common stock outstanding as of February 4, 20202, 2021 was 705,063,000.689,647,000.
Documents Incorporated By Reference
The information required by Part III of this report, to the extent not set forth herein, is incorporated by reference from the Proxy Statement solicited for the 20202021 Annual Meeting of Stockholders to be held on April 14, 2020.

13, 2021.



TABLE OF CONTENTS


Page
Page
PART I
Item 1.
1
Item 1A.
2
Item 1B.
45
Item 2.
45
Item 3.
45
Item 4.
45
PART II
Item 5.
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
5
Item 6.
8
Item 7.
9
Item 7A.
15
Item 8.
1615
Item 9.
41
Item 9A.
41
Item 9B.
41
PART III
Item 10.
41
Item 11.
41
Item 12.
41
Item 13.
41
Item 14.
41
42
PART IV
Item 15.
44
Item 16.
44



PART I
Item 1. Business
Publix Super Markets, Inc. and its wholly owned subsidiaries (Company) are in the business of operating retail food supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina, Tennessee and Virginia. The Company was founded in 1930 and later merged into another corporation that was originally incorporated in 1921. The Company has no other significant lines of business or industry segments.
Merchandising and manufacturing
The Company sells a variety of merchandise which includes grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. The Company’s lines ofThis merchandise include a variety ofincludes nationally advertised and private label brands as well as unbranded products such as produce, meat and seafood. Private label items are produced in the Company’s dairy, bakery and deli manufacturing facilities or are manufactured for the Company by suppliers. The Company receives the food and nonfood products it distributessells from many sources. These products are delivered to the supermarkets through Company distribution centers or directly from the suppliers and are generally available in sufficient quantities to enable the Company to satisfy its customers. The Company believes that its sources of supply offor these products and the raw materials used in manufacturing are adequate for its needs and that it is not dependent upon a single supplier or relatively few suppliers. Approximately 76% ofMerchandise is delivered to the totalsupermarkets through Company distribution centers or directly from suppliers and is generally available in sufficient quantities to enable the Company to satisfy its customers. The cost of products purchased ismerchandise delivered to the supermarkets through the Company’s distribution centers. Private label items are produced incenters is approximately 76% of the total product costs. The coronavirus pandemic has impacted the Company’s dairy, bakerysources of supply, product mix and deli manufacturing facilities or are manufactured forthe availability of certain products. However, the Company by suppliers.has generally been able to secure alternative sources of supply to serve the needs of its customers. The Company has experienced no significant changes in the kinds of products sold or in its methods of distribution since the beginningfuture impact of the fiscal year.coronavirus pandemic on sources of supply, product mix and customer demand is uncertain and difficult to predict.
Store operations
The Company operated 1,2391,264 supermarkets at the end of 2019,2020, compared with 1,2111,239 at the beginning of the year. In 2019, 352020, 39 supermarkets were opened (including fivenine replacement supermarkets) and 177154 supermarkets were remodeled. SevenFourteen supermarkets were closed during the period. The replacement supermarkets that opened in 20192020 replaced one supermarketfour supermarkets closed in 20192020 and fourfive supermarkets closed in a previous period. Five of the supermarkets closed in 20192020 will be replaced on site in a subsequent periodsperiod and one supermarketfive supermarkets will not be replaced. NewNet new supermarkets added 1.41.2 million square feet in 2019,2020, an increase of 2.3%2.1%. At the end of 2019,2020, the Company had 805816 supermarkets located in Florida, 187191 in Georgia, 7779 in Alabama, 6463 in South Carolina, 46 in Tennessee, 4549 in North Carolina, 47 in Tennessee and 1519 in Virginia. Also, at the end of 2019,2020, the Company had 1520 supermarkets under construction in Florida, four in Georgia, three in Tennessee, two in Alabama two in North Carolina and two in Virginia.South Carolina.
Competition
The Company is engaged in the highly competitive retail food industry. The Company’s competitors include traditional supermarkets, such as national and regional supermarket chains and independent supermarkets, as well as nontraditional competitors, such as supercenters, membership warehouse clubs, mass merchandisers, dollar stores, drug stores, specialty food stores, restaurants, convenience stores and online retailers. The Company’s ability to attract and retain customers is based primarily on quality of goods and service, price, convenience, product mix and store location. 
Working capital
The Company’s working capital at the end of 20192020 consisted of $3,927.6$4,417.8 million in current assets and $3,700.7$4,366.8 million in current liabilities. Normal operating fluctuations in these balances can result in changes to cash flows from operating activities presented in the consolidated statements of cash flows that are not necessarily indicative of long-term operating trends. There are no unusual industry practices or requirements relating to working capital items.
Seasonality
The historical influx of winter residents to Florida and increased purchases of products during the traditional Thanksgiving, Christmas and Easter holidays typically result in seasonal sales increases from November to April of each year. However, the impact of the coronavirus pandemic on travel, tourism and consumer spending may affect the Company’s seasonal sales.
EmployeesHuman Capital Resources
The Company had 207,000is the largest employee-owned company in the U.S. with 227,000 employees at the end of 2019.2020. The Company is dedicated to the dignity, value and employment security of its employees and recognizes they are its most important asset and primary competitive advantage. The Company considers its employee relations to be good.
Intellectual property
The Company’s trademarks, trade names, copyrights and similar intellectual property are important to the success of the Company’s business. Numerous trademarks, including “Publix” and “Where Shopping is a Pleasure,” have been registered with the U.S. Patent and Trademark Office. Due to the importance of its intellectual property to its business, the Company actively defends and enforces its rights to such property.


1


Environmental mattersGovernment regulation
The Company’s operations areCompany is subject to regulation under federal, state and local environmental protection laws and regulations.regulations, including environmental laws and regulations that govern activities that may have adverse environmental effects and impose liabilities for the costs of contamination cleanup and damages arising from sites of past spills, disposals or other releases of hazardous materials. The Company may be held responsible for the remediation of environmental conditions regardless of whether the Company leases, subleases or owns the supermarkets or other facilities and regardless of whether such environmental conditions were created by the Company or a prior owner or tenant. In addition to environmental laws and regulations, the Company is subject to liability under applicable environmentalfederal, state and local laws for cleanupand regulations relating to, among other things, product labeling and safety, zoning, land use, workplace safety, public health, accessibility and restrictions on the sale of contamination atvarious products, including alcoholic beverages, tobacco and drugs. The Company is also subject to laws and regulations governing its facilities.relationship with employees, including minimum wage requirements, overtime, working conditions, disabled access and work permit requirements. Compliance with these laws and regulations had no material effect on capital expenditures, results of operations or the competitive position of the Company.
Company information
The Company’s Annual Reports on Form 10-K, Proxy Statements, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports may be obtained electronically, free of charge, through the Company’s website at corporate.publix.com/stock.
Item 1A. Risk Factors
In addition to the other information contained in this Annual Report on Form 10-K (Annual Report), the following risk factors should be considered carefully in evaluating the Company’s business. The Company’s financial condition and results of operations could be materially and adversely affected by any of these risks.
Industry and Economic Risks
Unfavorable impacts of the coronavirus pandemic or any future public health crisis on operations, customers, employees, suppliers and tenants could adversely affect the Company.
On March 13, 2020, the coronavirus pandemic was declared a national emergency. The coronavirus pandemic resulted in national, state and local authorities mandating or recommending isolation and other preventative measures for large portions of the population, including mandatory business restrictions and closures. These measures, which were necessary to slow the spread of the virus and protect lives, resulted in significant job losses and are expected to continue to have serious adverse impacts on domestic and foreign economies for an unknown length of time. The effects of economic stabilization efforts, including government payments to affected citizens and industries, remains uncertain.
The Company’s operations may be adversely impacted by the fear of exposure to or actual effects of the coronavirus. These impacts include:
•operating cost increases due to changes in customer demand, changes in supermarket processes or increased government regulation;
•delays in the timing of remodels and opening new supermarkets;
•reduced workforce due to illness, quarantine or government mandates impacting the Company’s supermarket, distribution, manufacturing and support operations;
•temporary supermarket closings or reduced hours of operation due to reduced workforce, enhanced cleaning processes, increased stocking or government mandates;
•supply chain risks from goods produced in areas of significant coronavirus outbreak or disruption from suppliers due to financial or operational difficulties;
•reduction in travel, tourism or consumer spending due to government recommendations or mandates, fear of exposure to the coronavirus or adverse economic conditions;
•changes in customer demand from discretionary or higher priced products to lower priced products; or
•uncertainty as to future operations of tenants in Company owned shopping centers due to adverse economic conditions.
The extent to which the coronavirus pandemic will continue to impact the Company will depend on future developments, which remain highly uncertain and difficult to predict, including the scope, severity and duration of the pandemic, the speed and effectiveness of the vaccine and treatment development and delivery, the direct and indirect economic effects of the pandemic and potential changes in consumer behavior, among others. The future impact of the coronavirus pandemic could adversely affect the Company’s financial condition and results of operations.
Increased competition could adversely affect the Company.
The Company is engaged in the highly competitive retail food industry. The Company’s competitors include traditional supermarkets, such as national and regional supermarket chains and independent supermarkets, as well as nontraditional competitors, such as supercenters, membership warehouse clubs, mass merchandisers, dollar stores, drug stores, specialty food
2

stores, restaurants, convenience stores and online retailers. There has been a trend for traditional supermarkets to lose market share to nontraditional competitors. The Company’s ability to attract and retain customers is based primarily on quality of goods and service, price, convenience, product mix and store location. The Company believes it will face increased competition in the future from existing and potentially new competitors. The impact of pricing, purchasing, advertising or promotional decisions made by its competitors as well as competitor format innovation and location additions could adversely affect the Company’s financial condition and results of operations.
GeneralAdverse economic and other conditions that impact consumer spending could adversely affect the Company.
The Company’s results of operations are sensitive to changes in general economic conditions that impact consumer spending. Adverse economic conditions, including high unemployment, home foreclosures and weakness in the housing market, declines in the stock market and the instability of the credit markets, could cause a reduction in consumer spending. While there has been a trend toward lower unemployment and fuel prices in recent periods which has contributed to a better economic climate, there is uncertainty about the continued strength of the economy. If the economy weakens, or if fuel prices increase, consumers may reduce their spending. Other conditions that could reduce consumer spending include increases in tax, interest and inflation rates, increases in fuel and energy costs, increases in health care costs, the impact of natural disasters, public health crises or acts of terrorism, and other factors. Reductions in the level of consumer spending could cause customerschanges in customer demand from discretionary or higher priced products to purchase lower margin itemspriced products or shift spending to lower priced competitors, which could adversely affect the Company’s financial condition and results of operations.
Business and Operational Risks
Increased operating costs could adversely affect the Company.
The Company’s operations tend to be more labor intensive than some of its competitors primarily due to the additional customer service offered in its supermarkets. Consequently, uncertain labor markets, government mandated increases in the minimum wage or other benefits, increased wage rates by retailers and other labor market competitors, an increased proportion of full-time employees, increased costs of health care due to health insurance reform or other factors could result in increased labor costs.costs and disproportionately impact the Company in comparison to some of its competitors. The inability to improve or manage operating costs, including labor, facilities or other non-product related costs, could adversely affect the Company’s financial condition and results of operations.
Failure to execute the Company’s core strategies could adversely affect the Company.
The Company’s core strategies focus on customer service, product quality, shopping environment, competitive pricing and convenient locations. The Company has implemented several strategic business and technology initiatives as part of the execution of these core strategies. The Company believes these core strategies and related strategic initiatives differentiate it from its competition and present opportunities for sustained market share and financial growth. Failure to execute these core strategies, or failure to execute the core strategies in a cost effective manner, could adversely affect the Company’s financial condition and results of operations.


2

Failure to identify and obtain or retain suitable supermarket sites could adversely affect the Company.
The Company’s ability to obtain sites for new supermarkets is dependent on identifying and entering into lease or purchase agreements on commercially reasonable terms for properties that are suitable for its needs. If the Company fails to identify suitable sites and enter into lease or purchase agreements on a timely basis for any reason, including competition from other companies seeking similar sites, the Company’s growth could be adversely affected because it may be unable to open new supermarkets as anticipated. Similarly, the Company could be adversely affected if it is unable to retain sites for its existing leased supermarkets on commercially reasonable terms.
Information Security and Technology Risks
Failure to maintain the privacy and security of confidential customer and business information and the resulting unfavorable publicity could adversely affect the Company.
The Company receives, retains and transmits confidential information about its customers, employees and suppliers and entrusts certain of that information to third party service providers. The Company depends upon the secure transmission of confidential information, including customer payments, over external networks. Additionally, the use of individually identifiable data by the Company and its third party service providers is subject to federal, state and local laws and regulations. Although the Company has continuously invested in its information technology systems and implemented policies and procedures to protect its confidential information, there is no assurance that the Company will successfully defend against an intrusion into or compromise of the Company’s information technology systems or those of its third party service providers. An intrusion into or compromise of the Company’s information technology systems, or those of its third party service providers, that results in customer, employee or supplier information being obtained by unauthorized persons could adversely affect the Company’s reputation with existing and potential customers, employees and others. Such an intrusion or compromise could require expending significant resources related to remediation, lead to legal proceedings and regulatory actions, result in a disruption of operations and adversely affect the Company’s financial condition and results of operations.
3

Disruptions in information technology systems could adversely affect the Company.
The Company is dependent on complex information technology systems to operate its business, enhance customer service, improve the efficiency of its supply chain and increase employee efficiency. Certain of these information technology systems are hosted by third party service providers. The Company’s information technology systems, as well as those of the Company’s third party service providers, are subject to damage or interruption from power outages, computer and telecommunication failures, computer viruses, malicious service disruptions, catastrophic events and user errors. Significant disruptions in the information technology systems of the Company or its third party service providers could adversely affect the Company’s financial condition and results of operations.
Self-insured Claims and Product Liability Risks
Changes in the insurance market or factors affecting insured and self-insured claims could adversely affect the Company.
The Company uses self-insurance and third party insuranceClaims related to mitigate the risk of potential liability related tohealth care, employee benefits, workers’ compensation, general liability, property, losses,plant and equipment, fleet liability and directors and officers liability.liability are generally self-insured. The Company is self-insured for health care claims and certain property, plant and equipment losses. The Company’s insured claims experience or changes in the insurance market could impact the Company’s ability to maintain itsuses third party insurance or obtain comparable insurance on commercially reasonable terms. The Company’s inabilityin certain instances to maintain or obtain insurance,partially mitigate the risk related to these potential losses. While the Company estimates its exposure for these claims and establishes reserves for the estimated liabilities, the actual liabilities could be in excess of these reserves. In addition, the frequency or severity of claims, litigation trends, benefit level changes, or catastrophic events involving property, plant and equipment losses could adversely affect the Company’s financial condition and results of operations.
Product liability claims, product recalls and the resulting unfavorable publicity could adversely affect the Company.
The distribution and sale of grocery, drug and other products purchased from suppliers or manufactured by the Company entails an inherent risk of product liability claims, product recalls and the resulting adverse publicity. Such products may contain contaminants and may be inadvertently sold by the Company. These contaminants may, in certain cases, result in illness, injury or death if processing at the consumer level, if applicable, does not eliminate the contaminants. Sale of contaminated products, even if inadvertent, may be a violation of law and may lead to a product recall and/or an increased risk of exposure to product liability claims asserted against the Company. If a product liability claim is successful the Company’s third party insurance may not be adequate to pay all product liability claims, and the Company may not be able to maintain such insurance or obtain comparable insurance on commercially reasonable terms. If the Company does not have adequate insurance or contractual indemnification available, product liability claimsthe claim could have an adverse effect on the Company’s financial condition and results of operations. In addition, even if a product liability claim is not successful or is not fully pursued, the adverse publicity surrounding any assertion that the Company’s products caused illness or injury could have an adverse effect on the Company’s reputation with existing and potential customers and on the Company’s financial condition and results of operations.


3

Legal and Regulatory Risks
Unfavorable changes in, failure to comply with or increased costs of complying with environmental laws and regulations could adversely affect the Company.
The Company is subject to federal, state and local laws and regulations that govern activities that may have adverse environmental effects and impose liabilities for the costs of contamination cleanup and damages arising from sites of past spills, disposals or other releases of hazardous materials. Under current environmental laws and regulations, the Company may be held responsible for the remediation of environmental conditions regardless of whether the Company leases, subleases or owns the supermarkets or other facilities and regardless of whether such environmental conditions were created by the Company or a prior owner or tenant. Environmental conditions relating to prior, existing or future sites may result in substantial remediation costs, business interruption or adverse publicity which could adversely affect the Company’s financial condition and results of operations. In addition, the increased focus on climate change, waste management and other environmental issues may result in new environmental laws or regulations that could result in increased compliance costs to the Company, directly or indirectly through its suppliers, which could adversely affect the Company’s financial condition and results of operations.
Unfavorable changes in, failure to comply with or increased costs of complying with laws and regulations could adversely affect the Company.
In addition to environmental laws and regulations, the Company is subject to federal, state and local laws and regulations relating to, among other things, product labeling and safety, zoning, land use, workplace safety, public health, accessibility and restrictions on the sale of various products, including alcoholic beverages, tobacco and drugs. The Company is also subject to laws and regulations governing its relationship with employees, including minimum wage requirements, overtime, working conditions, disabled access and work permit requirements. Increased costs of complying with existing, new or changes in laws and regulations could adversely affect the Company’s financial condition and results of operations.
4

Unfavorable results of legal proceedings could adversely affect the Company.
The Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business, including employment, personal injury, commercial and other matters. Some lawsuits also contain class action allegations. The Company estimates its exposure to these legal proceedings and establishes reserves for the estimated liabilities. Assessing and predicting the outcome of these matters involves substantial uncertainties. Differences in actual outcomes, or changes in the Company’s assessment and predictions of the outcomes, could adversely affect the Company’s financial condition and results of operations.
Item 1B. Unresolved Staff Comments
None
Item 2. Properties
At year end, the Company operated 58.459.6 million square feet of supermarket space. The Company’s supermarkets vary in size. Current supermarket prototypes range from 20,00031,000 to 61,00055,000 square feet. Supermarkets are often located in shopping centers where the Company is the anchor tenant. The majority of the Company’s supermarkets are leased. Initial lease terms are typically 20 years followed by five year renewal options. Both the building and land are owned at 351361 locations. The building is owned while the land is leased at 7479 other locations.
The Company supplies its supermarkets from nine primary distribution centers located in Lakeland, Miami, Jacksonville, Sarasota, Orlando, Deerfield Beach and Boynton Beach, Florida, Lawrenceville, Georgia and McCalla, Alabama. A new distribution center is currently under construction in Greensboro, North Carolina. The Company operates six manufacturing facilities, including three dairy plants located in Lakeland and Deerfield Beach, Florida and Lawrenceville, Georgia, two bakery plants located in Lakeland, Florida and Atlanta, Georgia and a deli plant located in Lakeland, Florida.
The Company’s corporate offices, primary distribution centers and manufacturing facilities are owned with no outstanding debt. The Company’s properties are well maintained, in good operating condition and suitable for operating its business.
Item 3. Legal Proceedings
The Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business. The Company believes its recorded reserves are adequate in light of the probable and estimable liabilities. The estimated amount of reasonably possible losses for lawsuits, claims and charges, individually and in the aggregate, is considered to be immaterial. In the opinion of management, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
Item 4. Mine Safety Disclosures
Not applicable


4

PART II
Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
(a)Market Information
(a)Market Information
The Company’s common stock is not traded on an established securities market. Substantially all transactions of the Company’s common stock have been among the Company, its employees, former employees, their families and the retirement plans established for the Company’s employees. Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the Employee Stock Purchase Plan (ESPP) and Non-Employee Directors Stock Purchase Plan (Directors Plan) and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the Employee Stock Ownership Plan (ESOP). The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company. The Company serves as the registrar and stock transfer agent for its common stock.
Because there is no trading of the Company’s common stock on an established securities market, the market price of the Company’s common stock is determined by its Board of Directors. As part of the process to determine the market price, an independent valuation is obtained. The process includes comparing the Company’s financial results to those of comparable companies that are publicly traded (comparable publicly traded companies). The purpose of the process is to determine a value for the Company’s common stock that is comparable to the stock value of comparable publicly traded companies by considering both the results of the stock market and the relative financial results of comparable publicly traded companies.
5

The market prices for the Company’s common stock for 20192020 and 20182019 were as follows:
20202019
January - February$47.10 42.70 
March - April48.90 42.85 
May - July50.10 44.75 
August - October54.35 44.10 
November - December57.95 47.10 
  2019 2018
January - February $42.70
 36.85
March - April 42.85
 41.40
May - July 44.75
 41.75
August - October 44.10
 42.55
November - December 47.10
 42.70
(b)Approximate Number of Equity Security Holders
(b)Approximate Number of Equity Security Holders
As of February 4, 2020,2, 2021, the approximate number of holders of record of the Company’s common stock was 194,000.205,000.
(c)Dividends
(c)Dividends
The Company paid quarterly dividends per share on its common stock in 20192020 and 20182019 as follows:
Quarter 2019 2018Quarter20202019
First $0.26
 0.23
First$0.30 0.26 
Second 0.30
 0.26
Second0.32 0.30 
Third 0.30
 0.26
Third0.32 0.30 
Fourth 0.30
 0.26
Fourth0.32 0.30 
 $1.16
 1.01
$1.26 1.16 
Payment of dividends is within the discretion of the Board of Directors and depends on, among other factors, net earnings, capital requirements and the financial condition of the Company. However, the Company intends to continue to pay comparable dividends to stockholders in the future.

(d)Purchases of Equity Securities by the Issuer

5

(d)Purchases of Equity Securities by the Issuer
Issuer Purchases of Equity Securities
Shares of common stock repurchased by the Company during the three months ended December 28, 201926, 2020 were as follows (amounts are in thousands, except per share amounts):
Period
Total
Number of
Shares
Purchased
Average
Price Paid
per Share
Total
Number of
Shares
Purchased as
Part of Publicly
Announced Plans or Programs (1)
Approximate
Dollar Value
of Shares
That May Yet Be
Purchased Under the Plans or Programs (1)
September 27 - October 31, 2020903 $54.35 N/AN/A
November 1 - November 28, 20203,736   57.95 N/AN/A
November 29 - December 26, 20201,443   57.95 N/AN/A
 
Total
6,082 $57.42 N/AN/A
Period 
Total Number of Shares Purchased
 
Average Price Paid per Share
 
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
 
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
September 29, 2019
through
November 2, 2019
  486
   $44.22
  N/A N/A
November 3, 2019
through
November 30, 2019
  4,166
   47.10
  N/A N/A
December 1, 2019
through
December 28, 2019
  1,201
   47.10
  N/A N/A
 
 
Total
  5,853
   $46.86
  N/A N/A



























____________________________
(1)Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the ESPP and Directors Plan and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the ESOP. The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company.
(1)Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the ESPP and Directors Plan and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the ESOP. The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company.
The Company’s common stock is not traded on an established securities market. The amount of common stock offered to the Company for repurchase is not within the control of the Company, but is at the discretion of the stockholders. The Company does not believe that these repurchases of its common stock are within the scope of a publicly announced plan or program (although the terms of the plans discussed above have been communicated to the participants). Thus, the Company does not believe that it has made any repurchases during the three months ended December 28, 201926, 2020 required to be disclosed in the last two columns of the table.


6


(e)Performance Graph
(e)Performance Graph
The following performance graph sets forth the Company’s cumulative total stockholder return during the five years ended December 28, 2019,26, 2020, compared to the cumulative total return on the S&P 500 Index and a custom Peer Group Index including retail food supermarket companies.(1) The Peer Group Index is weighted based on the various companies’ market capitalization. The comparison assumes $100 was invested at the end of 20142015 in the Company’s common stock and in each of the related indices and assumes reinvestment of dividends.
The Company’s common stock is valued as of the end of each fiscal quarter. After the end of a quarter, however, shares continue to be traded at the prior valuation until the new valuation is received. The cumulative total return for the companies represented in the S&P 500 Index and the custom Peer Group Index is based on those companies’ trading price as of the Company’s fiscal year end. The following performance graph is based on the Company’s trading price at fiscal year end based on its market price as of the prior fiscal quarter. For comparative purposes, a performance graph based on the Company’s fiscal year end valuation (market price as of March 1, 2020)2021) is provided in the 20202021 Proxy Statement. Past stock performance shown below is no guarantee of future performance.
Comparison of Five-YearFive Year Cumulative Return Based Upon Fiscal Year End Trading Price
chart-09dcbcd5aadf5dd7ac5.jpgck0000081061-20201226_g2.jpg
201520162017201820192020
ck0000081061-20201226_g3.jpg
Publix$100.00 98.04 92.15 109.41 123.82 156.02 
ck0000081061-20201226_g4.jpg
S&P 500100.00 111.07 135.32 128.28 170.57 198.54 
ck0000081061-20201226_g5.jpg
Peer Group (1)
100.00 92.99 85.62 95.06 101.63 111.48 
  2014 2015 2016 2017 2018 2019 
symbol1a01a10.jpg
Publix$100.00 125.99 123.53 116.10 137.85 156.00 
symbol2a01a10.jpg
S&P 500100.00 100.77 111.92 136.35 129.26 171.88 
symbol3a01a10.jpg
Peer Group (1)
100.00 130.63 121.47 111.84 124.17 132.76 




___________________________
(1)Companies included in the Peer Group are Ahold Delhaize, Kroger and Weis Markets. Ahold and Delhaize Group merged into Ahold Delhaize in 2016. The Peer Group includes Ahold Delhaize for 2016 - 2019 and Ahold and Delhaize Group in 2015.

(1)Companies included in the Peer Group are Ahold Delhaize, Kroger and Weis Markets.

7


Item 6. Selected Financial Data
2020201920182017
2016 (1)
(Amounts are in thousands, except per share amounts, ratios and number of supermarkets)
Sales:
Sales$44,863,50738,116,402 36,093,907 34,558,286 33,999,921 
Percent change17.7 %5.6 %4.4 %1.6 %5.1 %
Comparable store sales percent change16.0 %3.6 %2.1 %1.7 %1.9 %
Earnings:
Gross profit (2)
$12,508,90110,375,933 9,782,516 9,428,569 9,265,616 
Earnings before income tax expense$5,036,6553,785,986 2,920,968 3,027,506 2,940,376 
Net earnings$3,971,8383,005,395 2,381,167 
2,291,894 (3)
2,025,688 
Net earnings as a percent of sales8.9 %7.9 %6.6 %
          6.6% (3)
6.0 %
Common stock:
Weighted average shares outstanding700,587713,535 726,407 753,483 769,267 
Earnings per share$5.674.21 3.28 
3.04 (3)
2.63 
Dividends per share$1.261.16 1.01 0.9125 0.8675 
Financial data:
Capital expenditures$1,228,3871,141,118 1,350,089 1,429,059 1,443,827 
Working capital$50,952
226,886 (4)
804,641 942,607 1,574,464 
Current ratio1.01
1.06 (4)
1.27 1.30 1.53 
Total assets$28,094,077
24,507,120 (4)
18,982,516 18,183,506 17,386,458 
Long-term obligations (including current portion)$3,365,955
3,244,572 (4)
167,665 193,074 250,584 
Common stock related to ESOP$3,484,5493,259,230 3,134,999 3,053,138 3,068,097 
Total equity$19,285,86416,901,344 14,994,664 14,108,619 13,497,437 
Supermarkets1,2641,239 1,211 1,167 1,136 
Non-GAAP Financial Measures: (5)
Net earnings excluding impact of fair value adjustment$3,689,2042,615,572 2,517,493 N/AN/A
Net earnings as a percent of sales excluding impact of fair value adjustment8.2 %6.9 %7.0 %N/AN/A
Earnings per share excluding impact of fair value adjustment$5.273.67 3.47 N/AN/A

2019 2018
2017
2016 (1)

2015 

(Amounts are in thousands, except per share amounts, ratios and number of supermarkets)

 
Sales:



 















 
Sales$38,116,402  36,093,907 
34,558,286 
33,999,921 
32,362,579  
Percent change5.6%   4.4%



1.6%



5.1%



5.9%   
Comparable store sales percent change3.6%   2.1%



1.7%



1.9%



4.2%

 
Earnings:



 














 
Gross profit (2)
$10,375,933  9,782,516 
9,428,569 
9,265,616 
8,902,969  
Earnings before income tax expense$3,785,986  2,920,968 
3,027,506 
2,940,376 
2,869,261  
Net earnings$3,005,395  2,381,167  
2,291,894 (3)
2,025,688 
1,965,048  
Net earnings as a percent of sales7.9%   6.6%   
          6.6% (3)
6.0%



6.1%

 
Common stock:



 














 
Weighted average shares outstanding713,535  726,407 
753,483 
769,267 
774,428  
Earnings per share$4.21  3.28  
3.04 (3)
2.63 
2.54  
Dividends per share$1.16  1.01 
0.9125 
0.8675  0.79  
Financial data:



 














 
Capital expenditures$1,141,118  1,350,089 
1,429,059 
1,443,827 
1,235,648  
Working capital
$ 226,886 (4)
804,641 
942,607 
1,574,464 
1,411,744  
Current ratio
1.06 (4)
1.27 
1.30 
1.53 
1.49  
Total assets
$24,507,120 (4)
18,982,516 
18,183,506 
17,386,458 
16,359,278  
Long-term obligations (including current portion)
$ 3,244,572 (4)
167,665 
193,074 
250,584 
236,446  
Common stock related to ESOP$3,259,230  3,134,999 
3,053,138 
3,068,097 
2,953,878  
Total equity$16,901,344  14,994,664 
14,108,619 
13,497,437 
12,431,262  
Supermarkets1,239  1,211 
1,167 
1,136 
1,114  
           
Non-GAAP Financial Measures: (5)
          
Net earnings excluding impact of fair value adjustment$2,615,572  2,517,493  N/A  N/A  N/A  
Net earnings as a percent of sales excluding impact of fair value adjustment6.9%   7.0%   N/A  N/A  N/A  
Earnings per share excluding impact of fair value adjustment$3.67  3.47  N/A  N/A  N/A  










___________________________
(1)Fiscal year 2016 includes 53 weeks. All other years include 52 weeks.
(2)Gross profit represents sales less cost of merchandise sold as reported in the consolidated statements of earnings.
(3)During 2017, the Company recorded the remeasurement of deferred income taxes due to the Tax Cuts and Jobs Act of 2017 (Tax Act). Excluding the impact of the Tax Act, net earnings would have been $2,067,699,000 or $2.74 per share and 6.0% as a percent of sales.
(4)In 2019, the Company adopted the Accounting Standards Update requiring the lease rights and obligations arising from existing and new lease agreements be recognized as assets and liabilities on the balance sheet.
(5)In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents net earnings and earnings per share excluding the impact of equity securities being measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). For a more detailed description of these measures, refer to Non-GAAP Financial Measures in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(1)Fiscal year 2016 includes 53 weeks. All other years include 52 weeks.
(2)Gross profit represents sales less cost of merchandise sold as reported in the consolidated statements of earnings.
(3)During 2017, the Company recorded the remeasurement of deferred income taxes due to the Tax Cuts and Jobs Act of 2017 (Tax Act). Excluding the impact of the Tax Act, net earnings would have been $2,067,699,000 or $2.74 per share and 6.0% as a percent of sales.
(4)In 2019, the Company adopted the Accounting Standards Update requiring the lease rights and obligations arising from existing and new lease agreements be recognized as assets and liabilities on the balance sheet.
(5)In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents net earnings and earnings per share excluding the impact of equity securities being measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). For a more detailed description of these measures, refer to Non-GAAP Financial Measures in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations.


8


Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
The Company is engaged in the retail food industry, operating supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina, Tennessee and Virginia. The Company has no other significant lines of business or industry segments. As of December 28, 2019,26, 2020, the Company operated 1,2391,264 supermarkets including 805816 located in Florida, 187191 in Georgia, 7779 in Alabama, 6463 in South Carolina, 46 in Tennessee, 4549 in North Carolina, 47 in Tennessee and 1519 in Virginia. In 2019, 352020, 39 supermarkets were opened (including fivenine replacement supermarkets) and 177154 supermarkets were remodeled. During 2019,2020, the Company opened 1421 supermarkets in Florida, six in Alabama, five in South Carolina,Georgia, four in North Carolina, four in Virginia, three in Virginia, twoAlabama, one in TennesseeSouth Carolina and one in Georgia. SevenTennessee. Fourteen supermarkets were closed during the period. The replacement supermarkets that opened in 20192020 replaced one supermarketfour supermarkets closed in 20192020 and fourfive supermarkets closed in a previous period. Five of the supermarkets closed in 20192020 will be replaced on site in a subsequent periodsperiod and one supermarketfive supermarkets will not be replaced. In the normal course of operations, the Company replaces supermarkets and closes supermarkets that are not meeting performance expectations. The impact of future supermarket closings is not expected to be material.
The Company sells a variety of merchandise to generate revenues. This merchandise includes grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. Merchandise includes nationally advertised and private label brands as well as unbranded products such as produce, meat and seafood. The Company’s revenues are earned as merchandise is sold to customers. Incomeprivate label brands play an important role in its merchandising strategy.
Profit is earned by selling merchandise at price levels that produce sales in excess of the cost of merchandise sold and operating and administrative expenses. The Company has generally been able to increase revenues and net earnings from year to year. Further, the Company has been able to meet its cash requirements from internally generated funds without the need for debt financing. The Company’s year end cash balances are impacted by its operating results as well as by capital expenditures, investment transactions, common stock repurchases and dividend payments.
The Company sells a variety of merchandise to generate revenues. This merchandise includes grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. Merchandise includes a variety of nationally advertised and private label brands as well as unbranded products such as produce, meat and seafood. The Company’s private label brands play an important role in its merchandising strategy.
Operating Environment
The Company is engaged in the highly competitive retail food industry. The Company’s competitors include traditional supermarkets, such as national and regional supermarket chains and independent supermarkets, as well as nontraditional competitors, such as supercenters, membership warehouse clubs, mass merchandisers, dollar stores, drug stores, specialty food stores, restaurants, convenience stores and online retailers. There has been a trend for traditional supermarkets to lose market share to nontraditional competitors. The Company’s ability to attract and retain customers is based primarily on quality of goods and service, price, convenience, product mix and store location. In addition, the Company competes with other companies for new retail sites. To meet the challenges of this highly competitive environment, the Company continues to focus on its core strategies, including customer service, product quality, shopping environment, competitive pricing and convenient locations. The Company has implemented several strategic business and technology initiatives as part of the execution of these core strategies. The Company believes these core strategies and related strategic initiatives differentiate it from its competition and present opportunities for sustained market share and financial growth.
Coronavirus Pandemic Impact
On March 13, 2020, the coronavirus pandemic was declared a national emergency. The coronavirus pandemic resulted in national, state and local authorities mandating or recommending isolation and other preventative measures for large portions of the population, including mandatory business restrictions and closures. These measures, which were necessary to slow the spread of the virus and protect lives, resulted in significant job losses and are expected to continue to have serious adverse impacts on domestic and foreign economies for an unknown length of time. The effects of economic stabilization efforts, including government payments to affected citizens and industries, remain uncertain.
The Company has been classified as an essential business in all locations in which it operates and has remained open to serve the needs of its customers. It remains a top priority of the Company to serve its customers in a way that protects the health and safety of its employees and customers. The Company estimates that its sales for 2020 increased approximately $4.6 billion due to the impact of the coronavirus pandemic. The Company incurred additional payroll related, transportation and other costs to meet the significant sales demand and protect the health and safety of its employees and customers. The profit on the incremental sales resulting from increased customer purchases of food and cleaning supplies more than offset the additional costs incurred. The future impact of the coronavirus pandemic is uncertain and difficult to predict.

9

Results of Operations
The Company’s fiscal year ends on the last Saturday in December. Fiscal years 2020, 2019 2018 and 20172018 include 52 weeks.
Sales
Sales for 2020 were $44.9 billion as compared with $38.1 billion in 2019, an increase of $6,747.1 million or 17.7%. The increase in sales for 2020 as compared with 2019 was primarily due to the impact of the coronavirus pandemic. The Company estimates that its sales for 2020 increased approximately $4.6 billion or 12.1% due to the impact of the coronavirus pandemic. Comparable store sales (supermarkets open for the same weeks in both periods, including replacement supermarkets) for 2020 increased 16.0% primarily due to the impact of the coronavirus pandemic. Sales for supermarkets that are replaced on site are classified as new supermarket sales since the replacement period for the supermarket is generally 9 to 12 months.
Sales for 2019 were $38.1 billion as compared with $36.1 billion in 2018, an increase of $2,022.5 million or 5.6%. The increase in sales for 2019 as compared with 2018 was primarily due to new supermarket sales and a 3.6% increase in comparable store sales (supermarkets open for the same weeks in both periods, including replacement supermarkets). Sales for supermarkets that are replaced on site are classified as new supermarket sales since the replacement period for the supermarket is generally 9 to 12 months.sales. Comparable store sales for 2019 increased primarily due to increased product costs.
Sales for 2018 were $36.1 billion as compared with $34.6 billion in 2017, an increase of $1,535.6 million or 4.4%. The increase in sales for 2018 as compared with 2017 was primarily due to new supermarket sales and a 2.1% increase in comparable store sales. The Company estimates the increase in sales for 2018 as compared with 2017 was $250 million or 0.8% lower due to the impact of Hurricane Irma in 2017. Excluding the impact of the hurricane, sales for 2018 would have increased 5.2% and comparable store sales would have increased 2.9%. Comparable store sales for 2018 increased primarily due to increased product costs, partially offset by the impact of the hurricane.


9

Gross profit
Gross profit (sales less cost of merchandise sold) as a percentage of sales was 27.2%27.9%, 27.2% and 27.1% in 2020, 2019 and 27.3% in 2019, 2018, and 2017, respectively. Excluding the last-in, first-out (LIFO) reserve effect of $19.8 million, $39.9 million and $24.2 million in 2020, 2019 and $23.0 million in 2019, 2018, and 2017, respectively, gross profit as a percentage of sales would have been 27.3%27.9%, 27.3% and 27.2% in 2020, 2019 and 27.3%2018, respectively. After excluding the LIFO reserve effect, the increase in gross profit as a percentage of sales for 2020 as compared with 2019 2018was primarily due to reduced shrink and 2017, respectively.volume driven efficiencies related to the impact of the coronavirus pandemic. After excluding the LIFO reserve effect, gross profit as a percentage of sales for 2019 as compared with 2018 and 2017 remained relatively unchanged.
Operating and administrative expenses
Operating and administrative expenses as a percentage of sales were 20.6%19.7%, 20.6% and 20.3% in 2020, 2019 and 20.2%2018, respectively. The decrease in operating and administrative expenses as a percentage of sales for 2020 as compared with 2019 2018 and 2017, respectively.was primarily due to volume driven efficiencies related to the impact of the coronavirus pandemic. The increase in operating and administrative expenses as a percentage of sales for 2019 as compared with 2018 was primarily due to an increase in payroll costs as a percentage of sales. The increase in operating and administrative expenses as a percentage of sales for 2018 as compared with 2017 was primarily due to an increase in payroll costs as a percentage of sales, partially offset by a decrease in facility costs as a percentage of sales.
Operating profit
Operating profit as a percentage of sales was 8.9% in 2020 and 7.6% in 2019 and 2018 and 7.9% in 2017.2018. The decreaseincrease in operating profit as a percentage of sales for 20182020 as compared with 20172019 was primarily due to the decreaseincrease in gross profit as a percentage of sales and the increasedecrease in operating and administrative expenses as a percentage of sales.
Investment income
Investment income was $975.0 million, $814.4 million and $56.7 million and $226.6 million in 2019, 2018 and 2017, respectively. Investment income for2020, 2019 and 2018, was impacted by equity securities being measured at fair value with net unrealized gains and losses from changes inrespectively. Excluding the fair value recognized in earnings. The increase in investment income for 2019 as compared with 2018 was primarily due toimpact of net unrealized gains on equity securities in 2020 and 2019 compared withand net unrealized losses on equity securities in 2018, investment income would have been $596.0 million, $291.7 million and an$239.5 million for 2020, 2019 and 2018, respectively. Excluding the impact of net unrealized gains on equity securities, the increase in interest and dividend income. The decrease in investment income for 20182020 as compared with 20172019 was primarily due to an increase in net unrealized lossesrealized gains on equity securities.investments. Excluding the impact of net unrealized gains on equity securities in 2019 and net unrealized losses on equity securities in 2018, the increase in investment income would have been $291.7 million and $239.5 million for 2019 as compared with 2018 was primarily due to an increase in interest and 2018, respectively.dividend income.
Income tax expense
The effective income tax rate was 20.6%21.1%, 20.6% and 18.5% in 2020, 2019 and 24.3%2018, respectively. The increase in the effective income tax rate for 2020 as compared with 2019 2018was primarily due to the decreased impact of permanent deductions and 2017, respectively.credits due to the increase in earnings before income tax expense. The increase in the effective income tax rate for 2019 as compared with 2018 was primarily due to the impact of net unrealized gains on equity securities in 2019 compared with net unrealized losses on equity securities in 2018 and a decrease in investment related tax credits.
The Tax Cuts and Jobs Act of 2017 (Tax Act), signed into law on December 22, 2017, made significant changes to the Internal Revenue Code. These changes included, among others, a decrease in the federal statutory income tax rate from 35% to 21% beginning in 2018. The decrease in the effective income tax rate for 2018 as compared with 2017 was primarily due to a $330.9 million decrease in income tax expense in 2018 due to the reduction of the federal statutory income tax rate, partially offset by a $224.2 million decrease in income tax expense in 2017 due to the remeasurement of deferred income taxes related to the Tax Act.
10

Net earnings
Net earnings were $3,971.8 million or $5.67 per share, $3,005.4 million or $4.21 per share and $2,381.2 million or $3.28 per share in 2020, 2019 and $2,291.9 million or $3.04 per share in 2019, 2018, and 2017, respectively. Net earnings as a percentage of sales were 8.9%, 7.9% in 2019 and 6.6% in 2018 and 2017.
The increase in net earnings as a percentage of sales for 2019 as compared with 2018 was primarily due to an increase in investment income. Net earnings and earnings per share for2020, 2019 and 2018, were impacted by net unrealized gains and losses on equity securities.respectively. Excluding the impact of net unrealized gains on equity securities in 2020 and 2019 and net unrealized losses on equity securities in 2018, net earnings would have been $3,689.2 million or $5.27 per share and 8.2% as a percentage of sales for 2020, $2,615.6 million or $3.67 per share and 6.9% as a percentage of sales for 2019 and $2,517.5 million or $3.47 per share and 7.0% as a percentage of sales for 2018.


10

Excluding the impact of net unrealized gains on equity securities, the increase in net earnings as a percentage of sales for 2020 as compared with 2019 was primarily due to the impact of the coronavirus pandemic. Excluding the impact of net unrealized gains on equity securities in 2019 and net unrealized losses on equity securities in 2018, net earnings as a percentage of sales for 2019 as compared with 2018 remained relatively unchanged.
Non-GAAP Financial Measures
In addition to reporting financial results for 2020, 2019 and 2018 in accordance with U.S. generally accepted accounting principles (GAAP), the Company presents net earnings and earnings per share excluding the impact of equity securities being measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). These measures are not in accordance with, or an alternative to, GAAP. The Company excludes the impact of the fair value adjustment since it is primarily due to temporary equity market fluctuations that do not reflect the Company’s operations. The Company believes this information is useful in providing period-to-period comparisons of the results of operations. Following is a reconciliation of net earnings to net earnings excluding the impact of the fair value adjustment for 2020, 2019 and 2018:
202020192018
(Amounts are in millions, except per share amounts)
Net earnings$3,971.8 3,005.4 2,381.2 
Fair value adjustment, due to net unrealized (gain) loss, on equity securities held at end of year(554.6)(472.5)107.5 
Net gain (loss) on sale of equity securities previously recognized through fair value adjustment175.6 (50.2)75.3 
Income tax expense (benefit) (1)
96.4 132.9 (46.5)
Net earnings excluding impact of fair value adjustment$3,689.2 2,615.6 2,517.5 
Weighted average shares outstanding700.6 713.5 726.4 
Earnings per share excluding impact of fair value adjustment$5.27 3.67 3.47 
 20192018
 (amounts are in millions, except per share amounts)
Net earnings $3,005.4
  2,381.2
 
Fair value adjustment, due to net unrealized (gain) loss, on equity securities held at end of year (472.5)  107.5
 
Net (loss) gain on sale of equity securities previously recognized through fair value adjustment (50.2)  75.3
 
Income tax expense (benefit) (1)
 132.9
  (46.5) 
Net earnings excluding impact of fair value adjustment $2,615.6
  2,517.5
 
Weighted average shares outstanding 713.5
  726.4
 
Earnings per share excluding impact of fair value adjustment $3.67
  3.47
 
(1)
Income tax expense (benefit) is based on the Company’s combined federal and state statutory income tax rates.

(1)Income tax expense (benefit) is based on the Company’s combined federal and state statutory income tax rates.



11


Liquidity and Capital Resources
Cash and cash equivalents, short-term investments and long-term investments totaled $11,961.7 million as of December 26, 2020, as compared with $9,189.8 million as of December 28, 2019, as compared with $7,176.7 million as of December 29, 2018.2019. The increase was primarily due to net unrealized gains on investment securities and decreases in income taxes paid, capital expenditures and common stock repurchases.increased sales as a result of the coronavirus pandemic.
Net cash provided by operating activities
Net cash provided by operating activities was $5,424.2 million, $4,024.4 million and $3,631.9 million in 2020, 2019 and $3,580.3 million2018, respectively. The increase in net cash provided by operating activities for 2020 as compared with 2019 2018was primarily due to increased sales as a result of the coronavirus pandemic, the timing of payments for merchandise and 2017, respectively.the deferral of 2020 payroll tax payments under a coronavirus tax relief provision, partially offset by the increase in income taxes paid. The increase in net cash provided by operating activities for 2019 as compared with 2018 was primarily due to 2017 federal income tax payments extended to 2018 due to Hurricane Irma in 2017. The increase in net cash provided by operating activities for 2018 as compared with 2017 was primarily due to the increase in net earnings and the timing of payments for merchandise, partially offset by 2017 federal income tax payments extended to 2018 due to the hurricane.
Net cash used in investing activities
Net cash used in investing activities was $3,428.5 million, $2,257.0 million and $1,742.8 million in 2020, 2019 and $1,236.1 million2018, respectively. The primary use of net cash in 2019, 2018investing activities for 2020 was funding capital expenditures and 2017, respectively.net increases in investments. Capital expenditures for 2020 totaled $1,228.4 million. These expenditures were incurred in connection with the opening of39 supermarkets (including nine replacement supermarkets) and the remodeling of 154 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress and new or enhanced information technology hardware and software. In 2020, the payment for investments, net of the proceeds from the sale and maturity of investments, was $2,210.4 million. The primary use of net cash in investing activities for 2019 was funding capital expenditures and net increases in investment securities.investments. Capital expenditures for 2019 totaled $1,141.1 million. These expenditures were incurred in connection with the opening of35 supermarkets (including five replacement supermarkets) and the remodeling of 177 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress, new or enhanced information technology hardware and software and the acquisition of shopping centers with the Company as the anchor tenant. In 2019, the payment for investments, net of the proceeds from the sale and maturity of investments, was $1,124.5 million. The primary use of net cash in investing activities for 2018 was funding capital expenditures and net increases in investment securities. Capital expenditures for 2018 totaled $1,350.1 million. These expenditures were incurred in connection with the opening of 51 supermarkets (including eight replacement supermarkets) and the remodeling of 146 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress, new or enhanced information technology hardware and software and the acquisition of shopping centers with the Company as the anchor tenant. In 2018, the payment for investments, net of the proceeds from the sale and maturity of investments, was $436.5 million.
Net cash used in financing activities
Net cash used in financing activities was $2,085.7 million, $1,603.3 million and $1,869.8 million in 2020, 2019 and $2,202.6 million in 2019, 2018, and 2017, respectively. The primary use of net cash in financing activities was funding net common stock repurchases and dividend payments. Net common stock repurchases totaled $1,190.5 million, $776.6 million and $1,097.9 million in 2020, 2019 and $1,468.6 million in 2019, 2018, and 2017, respectively. The Company currently repurchases common stock at the stockholders’ request in accordance with the terms of the ESPP, Directors Plan, 401(k) Plan and ESOP. The amount of common stock offered to the Company for repurchase is not within the control of the Company, but is at the discretion of the stockholders. The Company expects to continue to repurchase its common stock, as offered by its stockholders from time to time, at its then current value. However, with the exception of certain shares distributed from the ESOP, such purchases are not required and the Company retains the right to discontinue them at any time.
Dividends
The Company paid quarterly dividends on its common stock totaling $884.4 million or $1.26 per share, $828.7 million or $1.16 per share and $734.5 million or $1.01 per share in 2020, 2019 and $689.7 million or $0.9125 per share in 2019, 2018, and 2017, respectively.
Capital expenditures projection
Capital expenditures for 20202021 are expected to be approximately $1,600 million, primarily related to new supermarkets, remodeling existing supermarkets, construction or expansion of warehouses, new or enhanced information technology hardware and software and the acquisition or development of shopping centers within which the Company as the anchor tenant.operates. The shopping center acquisitions are financed with internally generated funds and assumed debt, if prepayment penalties for the debt are determined to be significant. This capital program is subject to continuing change and review.
Cash requirements
In 2020, the2021, cash requirements for operations, capital expenditures, common stock repurchases and dividend payments are expected to be financed by internally generated funds or liquid assets. Based on the Company’s financial position, it is expected that short-term and long-term borrowings would be available to support the Company’s liquidity requirements, if needed.


12


Contractual Obligations
Following is a summary of contractual obligations as of December 28, 2019:26, 2020:


Payments Due by PeriodPayments Due by Period


Total
2020
 2021-
2022

 2023-
2024

There-
after
Total2021
 2022-
2023
 2024-
2025
There-
after


(Amounts are in thousands)(Amounts are in thousands)
Contractual obligations:









Contractual obligations:
Operating leases (1)

$3,665,752

430,983
 774,530
 607,408
 1,852,831
Operating leases (1)
$3,624,709 438,358 787,096 602,146 1,797,109 
Finance leases (1)
 170,359
 33,068
 16,202
 29,949
 91,140
Finance leases (1)
351,967 32,962 51,042 34,388 233,575 
Purchase obligations (2)(3)(4)

2,535,511

1,305,571

360,831

197,664

671,445
Purchase obligations (2)(3)(4)
2,879,969 1,467,545 432,991 220,457 758,976 
Other long-term liabilities:


 
 
 
 Other long-term liabilities:
Self-insurance reserves (5)

375,809

149,082

107,600

42,340

76,787
Self-insurance reserves (5)
397,081 161,223 113,649 45,502 76,707 
Accrued postretirement benefit cost
126,117

6,102
 12,750
 13,406
 93,859
Accrued postretirement benefit cost137,786 6,430 13,374 13,970 104,012 
Long-term debt (6)

171,689

39,692

60,511

40,986

30,500
Long-term debt (6)
160,227 36,392 63,932 32,565 27,338 
Other
113,851

97,299

831

621

15,100
Other43,454 27,291 757 652 14,754 
Total
$7,159,088

2,061,797

1,333,255

932,374

2,831,662
Total$7,595,193 2,170,201 1,462,841 949,680 3,012,471 
Off-Balance Sheet Arrangements
The Company is not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, results of operations or cash flows.




























____________________________
(1)
(1)For a more detailed description of the operating and finance lease obligations, refer to Note 4 Leases in the Notes to Consolidated Financial Statements.
(2)Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable within 30 days without penalty.
(3)As of December 28, 2019, the Company had outstanding $4.1 million in trade letters of credit and $5.4 million in standby letters of credit to support certain of these purchase obligations.
(4)Purchase obligations include $964.6 million in real estate taxes, insurance and maintenance commitments related to operating and finance leases. The actual amounts to be paid may be variable and have been estimated based on current costs. Purchase obligations also include $282.3 million in lease agreements that have not yet commenced.
(5)
As of December 28, 2019, the Company maintained restricted investments in the amount of $180.1 million primarily for the benefit of the Company’s insurance carrier related to self-insurance reserves.
(6)For a more detailed description of the long-term debt obligations, refer to Note 5 Consolidation of Joint Ventures and Long-Term Debt in the Notes to Consolidated Financial Statements.


13

Recently Issued Accounting Standards
In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) requiring companies to change the methodology used to measure credit losses on financial instruments. The ASU is effective for reporting periods beginning after December 15, 2019.  The Company does not expect the adoption of the ASUoperating and finance lease obligations, refer to have a material effectNote 4 Leases in the Notes to Consolidated Financial Statements.
(2)Purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on the Company’s financial conditionCompany and that specify all significant terms, including fixed or results of operations. The adoptionminimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate timing of the ASU will have no effect on the Company’s cash flows.transaction. Purchase obligations exclude agreements that are cancelable within 30 days without penalty.
In February 2016, the FASB issued an ASU requiring the lease rights and obligations arising from existing and new lease agreements be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2018. In 2019, the Company adopted the ASU on a modified retrospective basis and elected the transitional provisions eliminating the requirement to restate reporting periods prior to the date of adoption. The Company also elected to not reassess the original conclusions reached regarding lease identification, lease classification and initial direct costs for leases entered into prior to the adoption of the ASU. (3)As of December 30, 2018,26, 2020, the Company recognized itshad outstanding $9.1 million in trade letters of credit and $3.7 million in standby letters of credit to support certain of these purchase obligations.
(4)Purchase obligations include $1,019.4 million in real estate taxes, insurance and maintenance commitments related to operating and finance leases. The actual amounts to be paid may be variable and have been estimated based on current costs. Purchase obligations also include $359.5 million in lease right-of-use assets and operating lease liabilities onagreements that have not yet commenced.
(5)As of December 26, 2020, the consolidated balance sheet. The adoptionCompany maintained restricted investments in the amount of $182.1 million primarily for the benefit of the ASU did not haveCompany’s insurance carrier related to self-insurance reserves.
(6)For a material effect onmore detailed description of the Company’s resultslong-term debt obligations, refer to Note 5 Consolidation of operationsJoint Ventures and had no effect onLong-Term Debt in the Company’s cash flows.Notes to Consolidated Financial Statements.
13

Critical Accounting Estimates
The Company’s discussion and analysis of its financial condition and results of operations are based upon the Company’s consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant accounting policies are described in Note 1 in the Notes to Consolidated Financial Statements. The Company believes the following involves significant estimates and judgments in the preparation of its consolidated financial statements.
Self-Insurance Reserves
Self-insurance reserves are established for health care, workers’ compensation, general liability and fleet liability claims. These reserves are determined based on actual claims experience and an estimate of claims incurred but not reported including, where necessary, actuarial studies. The Company believes that the use of actuarial studies to determine self-insurance reserves represents a consistent method of measuring these subjective estimates. Actuarial projections of losses for general liability and workers’ compensation claims are discounted and subject to variability. The causes of variability include, but are not limited to, such factors as future interest and inflation rates, future economic conditions, claims experience, litigation trends and benefit level changes. Historically, there have not been significant changes in the factors and assumptions used in the valuation of the self-insurance reserves. However, significant changes in such factors and assumptions could materially impact the valuation of the self-insurance reserves.


14

Forward-Looking Statements
From time to time, certainCertain information provided by the Company including written or oral statements made by its representatives,in this Annual Report may containbe forward-looking information as defined in Section 21E of the Securities Exchange Act of 1934 (Exchange Act). Forward-looking information includes statements about the future performance of the Company whichand is based on management’s assumptions and beliefs in light of the information currently available to them.them, including as it relates to the coronavirus pandemic. When used, the words “plan,” “estimate,” “project,” “intend,” “expect,” “believe,” “will” and other similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from those statements including, but not limited to, the following: competitive practices and pricing in the food and drug industries generally and particularly in the Company’s principal markets; results of programs to increase sales, including private label sales; results of programs to control or reduce costs; changes in buying, pricing and promotional practices; changes in shrink management; changes in the general economy;economy, including the economic downturn associated with the coronavirus pandemic; changes in consumer spending; changes in population, employment and job growth in the Company’s principal markets; impacts of a public health crisis or other significant catastrophic event, such as the coronavirus pandemic; impacts of an intrusion into, compromise of or disruption in the Company’s information technology systems; and other factors affecting the Company’s business within or beyond the Company’s control. These factors include changes in the rate of inflation, changes in federal, state and local laws and regulations, adverse determinations with respect to litigation or other claims, ability to recruit and retain employees, increases in operating costs including, but not limited to, labor costs, credit card fees and utility costs, particularly electric rates, ability to construct new supermarkets or complete remodels as rapidly as planned and stability of product costs. Other factors and assumptions not identified above could also cause the actual results to differ materially from those set forth in the forward-looking statements. Except as may be required by applicable law, the Company assumes no obligation to publicly update these forward-looking statements.
14

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk
The Company does not utilize financial instruments for trading or other speculative purposes, nor does it utilize leveraged financial instruments.
Cash equivalents and short-term investments are subject to interest rate risk and credit risk. Most of the cash equivalents and short-term investments are held in money market investments and debt securities that mature in less than one year. Due to the quality of the short-term investments held, the Company does not expect the valuation of these investments to be significantly impacted by future market conditions.
Debt securities are subject to interest rate risk and credit risk. Debt securities held by the Company at year end primarily consisted of corporate, state and municipal bonds with high credit ratings; therefore, the Company believes the credit risk is low. The Company believes a 10050 basis point increase in interest rates would result in an immaterial unrealized loss on its debt securities. Since the Company does not intend to sell its debt securities or will likely not be required to sell its debt securities prior to any anticipated recovery, such a hypothetical temporary unrealized loss would impact comprehensive earnings, but not earnings or cash flows.
Equity securities are subject to equity price risk that results from fluctuations in quoted market prices as of the balance sheet date. Market price fluctuations may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions. Due to equity securities being measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings, fluctuations in quoted market prices for equity securities will impact earnings. A decrease of 10% in the value of the Company’s equity securities would result in an unrealized loss of approximately $240$210 million recognized in earnings, but would not impact cash flows.




15

Item 8.  Financial Statements and Supplementary Data
Index to Consolidated Financial Statements and Schedule
Page
1716
Consolidated Financial Statements:
Consolidated Balance Sheets – December 28, 201926, 2020 and December 29, 201828, 2019
18
Consolidated Statements of Earnings – Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017
20
Consolidated Statements of Comprehensive Earnings – Years ended December 26, 2020,
December 28, 2019
and December 29, 2018 and December 30, 2017
21
Consolidated Statements of Cash Flows – Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017


22
Consolidated Statements of Stockholders’ Equity – Years ended December 26, 2020,
December 28, 2019
and December 29, 2018 and December 30, 2017
24
Notes to Consolidated Financial Statements
25
The following consolidated financial statement schedule of the Company for the years ended
December 26, 2020, December 28, 2019 and December 29, 2018 and December 30, 2017 is submitted herewith:
Schedule II – Valuation and Qualifying Accounts
40
All other schedules are omitted as the required information is inapplicable or the information is
presented in the consolidated financial statements or related notes.












15
16


Report of Independent Registered Public Accounting Firm
TheTo the Stockholders and Board of Directors
Publix Super Markets, Inc.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Publix Super Markets, Inc. and subsidiaries (Company)(the Company) as of December 28, 201926, 2020 and December 29, 2018,28, 2019, the related consolidated statements of earnings, comprehensive earnings, cash flows and stockholders’ equity for each of the years in the three-year period ended December 28, 2019,26, 2020, and the related notes and the financial statement schedule listed in the accompanying index (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 28, 201926, 2020 and December 29, 2018,28, 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 28, 2019,26, 2020, in conformity with U.S. generally accepted accounting principles.
Change in Accounting Principle
As discussed in Note 1(h)4(a) to the consolidated financial statements, the Company has changed its method of accounting for leases as of December 30, 2018 due to the adoption of Accounting Standards Codification Topic 842, Leases.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
16

Evaluation of self-insurance reserves
As discussed in Note 1(k) to the consolidated financial statements, the Company estimates its self-insurance reserves for workers’ compensation and general liability exposures by considering historical claims experience and actuarial analyses using actuarial assumptions and generally accepted actuarial methods. The self-insurance reserves balance as of December 26, 2020 of $397 million includes the self-insurance reserves related to workers’ compensation and general liability. The Company engages actuaries to estimate its workers’ compensation and general liability self-insurance reserves at least annually.
We identified the evaluation of the Company’s workers’ compensation and general liability self-insurance reserves as a critical audit matter because of the specialized skills necessary to evaluate the Company’s key assumption, the loss development factors, and the selection of the actuarial projections derived from various actuarial methods.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the design of certain internal controls related to the workers’ compensation and general liability actuarial projections. This included controls related to the loss development factors used to estimate the actuarial projections and the selection of the actuarial projections derived from various actuarial methods. We involved actuarial professionals with specialized skills and knowledge who assisted in:
•Assessing the actuarial models used by the Company for consistency with generally accepted actuarial standards;
•Evaluating the Company’s ability to estimate self-insurance reserves by comparing its historical estimates with actual incurred losses; and
•Evaluating the key assumption, the loss development factors, and actuarial projections by developing an independent expectation of the workers’ compensation and general liability self-insurance reserves and comparing them to the amounts recorded by the Company.
/s/ KPMG LLP
We have served as the Company’s auditor since 1961.
Tampa, Florida
March 2, 20201, 2021










17


PUBLIX SUPER MARKETS, INC.
Consolidated Balance Sheets
December 26, 2020 and
December 28, 2019 and
December 29, 2018
 
20202019
ASSETS(Amounts are in thousands)
Current assets:
Cash and cash equivalents$673,483 763,382 
Short-term investments682,965 438,105 
Trade receivables917,531 737,093 
Inventories2,033,792 1,913,310 
Prepaid expenses110,025 75,710 
Total current assets4,417,796 3,927,600 
Long-term investments10,605,234 7,988,280 
Other noncurrent assets415,103 441,938 
Operating lease right-of-use assets2,965,424 2,964,780 
Property, plant and equipment:
Land2,059,274 1,984,400 
Buildings and improvements6,379,852 5,948,039 
Furniture, fixtures and equipment5,796,442 5,477,534 
Leasehold improvements1,764,326 1,660,164 
Construction in progress257,099 152,272 
16,256,993 15,222,409 
Accumulated depreciation(6,566,473)(6,037,887)
Net property, plant and equipment9,690,520 9,184,522 
$28,094,077 24,507,120 

See accompanying notes to consolidated financial statements.
18

  2019 2018 
ASSETS (Amounts are in thousands) 
Current assets:     
Cash and cash equivalents $763,382
 599,264
 
Short-term investments 438,105
 560,992
 
Trade receivables 737,093
 682,981
 
Inventories 1,913,310
 1,848,735
 
Prepaid expenses 75,710
 122,224
 
Total current assets 3,927,600
 3,814,196
 
Long-term investments 7,988,280
 6,016,438
 
Other noncurrent assets 441,938
 515,265
 
Operating lease right-of-use assets 2,964,780
 —
 
Property, plant and equipment:     
Land 1,984,400
 1,850,718
 
Buildings and improvements 5,948,039
 5,535,538
 
Furniture, fixtures and equipment 5,477,534
 5,114,698
 
Leasehold improvements 1,660,164
 1,564,243
 
Construction in progress 152,272
 109,367
 
  15,222,409
 14,174,564
 
Accumulated depreciation (6,037,887) (5,537,947) 
Net property, plant and equipment 9,184,522
 8,636,617
 
  $24,507,120
 18,982,516
 
20202019
LIABILITIES AND EQUITY(Amounts are in thousands,
except par value)
Current liabilities:
Accounts payable$2,414,798 1,984,761 
Accrued expenses:
Contributions to retirement plans639,581 581,699 
Self-insurance reserves161,223 149,082 
Salaries and wages197,721 148,662 
Other499,970 461,427 
Current portion of long-term debt36,392 39,692 
Current portion of operating lease liabilities345,805 335,391 
Federal and state income taxes71,354 0 
Total current liabilities4,366,844 3,700,714 
Deferred income taxes772,722 682,484 
Self-insurance reserves235,858 226,727 
Accrued postretirement benefit cost131,356 120,015 
Long-term debt123,835 131,997 
Operating lease liabilities2,588,258 2,603,206 
Other noncurrent liabilities589,340 140,633 
Total liabilities8,808,213 7,605,776 
Common stock related to Employee Stock Ownership Plan (ESOP)3,484,549 3,259,230 
Stockholders’ equity:
Common stock of $1 par value. Authorized 1,000,000 shares; issued
and outstanding 690,982 shares in 2020 and 706,552 shares in 2019
690,982 706,552 
Additional paid-in capital4,005,969 3,758,066 
Retained earnings14,343,865 12,317,478 
Accumulated other comprehensive earnings200,951 81,289 
Common stock related to ESOP(3,484,549)(3,259,230)
Total stockholders’ equity15,757,218 13,604,155 
Noncontrolling interests44,097 37,959 
Total equity19,285,864 16,901,344 
Commitments and contingencies0 0 
$28,094,077 24,507,120 




      
  2019 2018 
LIABILITIES AND EQUITY 
(Amounts are in thousands,
except par value)
 
Current liabilities:     
Accounts payable $1,984,761
 1,864,604
 
Accrued expenses:     
Contributions to retirement plans 581,699
 540,760
 
Self-insurance reserves 149,082
 145,241
 
Salaries and wages 148,662
 132,916
 
Other 461,427
 321,080
 
Current portion of long-term debt 39,692
 4,954
 
Current portion of operating lease liabilities 335,391
 —
 
Total current liabilities 3,700,714
 3,009,555
 
Deferred income taxes 682,484

420,757
 
Self-insurance reserves 226,727
 222,419
 
Accrued postretirement benefit cost 120,015
 105,308
 
Long-term debt 131,997
 162,711
 
Operating lease liabilities 2,603,206
 —
 
Other noncurrent liabilities 140,633
 67,102
 
Total liabilities 7,605,776
 3,987,852
 
Common stock related to Employee Stock Ownership Plan (ESOP) 3,259,230

3,134,999
 
Stockholders’ equity:     
Common stock of $1 par value. Authorized 1,000,000 shares; issued
and outstanding 706,552 shares in 2019 and 715,445 shares in 2018
 706,552
 715,445
 
Additional paid-in capital 3,758,066
 3,458,004
 
Retained earnings 12,317,478
 10,840,654
 
Accumulated other comprehensive earnings (losses) 81,289
 (55,762) 
Common stock related to ESOP (3,259,230) (3,134,999) 
Total stockholders’ equity 13,604,155
 11,823,342
 
Noncontrolling interests 37,959
 36,323
 
Total equity 16,901,344
 14,994,664
 
Commitments and contingencies —
 —
 
  $24,507,120
 18,982,516
 




19


PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Earnings
Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017

202020192018
(Amounts are in thousands, except per share amounts)
Revenues:
Sales$44,863,507 38,116,402 36,093,907 
Other operating income340,452 346,351 301,811 
Total revenues45,203,959 38,462,753 36,395,718 
Costs and expenses:
Cost of merchandise sold32,354,606 27,740,469 26,311,391 
Operating and administrative expenses8,837,380 7,833,035 7,339,924 
Total costs and expenses41,191,986 35,573,504 33,651,315 
Operating profit4,011,973 2,889,249 2,744,403 
Investment income975,006 814,372 56,699 
Other nonoperating income, net49,676 82,365 119,866 
Earnings before income tax expense5,036,655 3,785,986 2,920,968 
Income tax expense1,064,817 780,591 539,801 
Net earnings$3,971,838 3,005,395 2,381,167 
Weighted average shares outstanding700,587 713,535 726,407 
Earnings per share$5.67 4.21 3.28 
See accompanying notes to consolidated financial statements.
20
  2019 2018 2017 
  (Amounts are in thousands, except per share amounts) 
Revenues:       
Sales $38,116,402
 36,093,907
 34,558,286
 
Other operating income 346,351
 301,811
 278,552
 
Total revenues 38,462,753
 36,395,718
 34,836,838
 
Costs and expenses:       
Cost of merchandise sold 27,740,469
 26,311,391
 25,129,717
 
Operating and administrative expenses 7,833,035
 7,339,924
 6,974,297
 
Total costs and expenses 35,573,504
 33,651,315
 32,104,014
 
Operating profit 2,889,249
 2,744,403
 2,732,824
 
Investment income 814,372
 56,699
 226,626
 
Other nonoperating income, net 82,365
 119,866
 68,056
 
Earnings before income tax expense 3,785,986
 2,920,968
 3,027,506
 
Income tax expense 780,591
 539,801
 735,612
 
Net earnings $3,005,395
 2,381,167
 2,291,894
 
Weighted average shares outstanding 713,535
 726,407
 753,483
 
Earnings per share $4.21
 3.28
 3.04
 


PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Comprehensive Earnings
Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017

202020192018
(Amounts are in thousands)
Net earnings$3,971,838 3,005,395 2,381,167 
Other comprehensive earnings:
Unrealized gain (loss) on debt securities net of income taxes of $47,253, $50,504 and $(6,521) in 2020, 2019 and 2018, respectively.138,989 148,141 (19,126)
Reclassification adjustment for net realized (gain) loss on debt securities net of income taxes of $(4,616), $(205) and $118 in 2020, 2019 and 2018, respectively.(13,591)(602)346 
Adjustment to postretirement benefit obligation net of income taxes of $(1,955), $(3,576) and $2,963 in 2020, 2019 and 2018, respectively.(5,736)(10,488)8,692 
Comprehensive earnings$4,091,500 3,142,446 2,371,079 

See accompanying notes to consolidated financial statements.
21
  2019 2018 2017 
  (Amounts are in thousands) 
Net earnings $3,005,395
 2,381,167
 2,291,894
 
Other comprehensive earnings:       
Unrealized gain (loss) on debt securities net of income taxes of $50,504 and $(6,521) in 2019 and 2018, respectively. Unrealized gain on debt and equity securities net of income taxes of $110,818 in 2017. 148,141

(19,126)
175,978
 
Reclassification adjustment for net realized (gain) loss on debt securities net of income taxes of $(205) and $118 in 2019 and 2018, respectively. Reclassification adjustment for net realized (gain) on debt and equity securities net of income taxes of $(42,088) in 2017. (602)
346

(66,836) 
Adjustment to postretirement benefit obligation net of income taxes of $(3,576), $2,963 and $(4,406) in 2019, 2018 and 2017, respectively. (10,488)
8,692

(6,997) 
Comprehensive earnings $3,142,446
 2,371,079
 2,394,039
 



PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Cash Flows
Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017

202020192018
(Amounts are in thousands)
Cash flows from operating activities:
Cash received from customers$44,885,680 38,269,943 36,296,870 
Cash paid to employees and suppliers(38,844,539)(34,017,408)(32,177,582)
Income taxes paid(789,711)(373,172)(563,983)
Self-insured claims paid(384,044)(394,495)(395,457)
Dividends and interest received241,639 217,574 192,528 
Other operating cash receipts336,244 341,929 297,098 
Other operating cash payments(21,052)(19,940)(17,548)
Net cash provided by operating activities5,424,217 4,024,431 3,631,926 
Cash flows from investing activities:
Payment for capital expenditures(1,228,387)(1,141,118)(1,350,089)
Proceeds from sale of property, plant and equipment10,297 8,609 43,834 
Payment for investments(5,356,844)(3,237,807)(2,778,691)
Proceeds from sale and maturity of investments3,146,473 2,113,287 2,342,162 
Net cash used in investing activities(3,428,461)(2,257,029)(1,742,784)
Cash flows from financing activities:
Payment for acquisition of common stock(1,440,312)(1,088,570)(1,405,872)
Proceeds from sale of common stock249,808 311,950 307,933 
Dividends paid(884,369)(828,733)(734,510)
Repayment of long-term debt(28,374)(11,061)(43,593)
Other, net17,592 13,130 6,239 
Net cash used in financing activities(2,085,655)(1,603,284)(1,869,803)
Net (decrease) increase in cash and cash equivalents(89,899)164,118 19,339 
Cash and cash equivalents at beginning of year763,382 599,264 579,925 
Cash and cash equivalents at end of year$673,483 763,382 599,264 









See accompanying notes to consolidated financial statements.
22

  2019 2018 2017 
  (Amounts are in thousands) 
Cash flows from operating activities:       
Cash received from customers $38,269,943
 36,296,870
 34,729,287
 
Cash paid to employees and suppliers (34,017,408) (32,177,582) (30,821,593) 
Income taxes paid (373,172) (563,983) (478,457) 
Self-insured claims paid (394,495) (395,457) (344,905) 
Dividends and interest received 217,574
 192,528
 241,773
 
Other operating cash receipts 341,929
 297,098
 273,435
 
Other operating cash payments (19,940) (17,548) (19,259) 
Net cash provided by operating activities 4,024,431
 3,631,926
 3,580,281
 
Cash flows from investing activities:       
Payment for capital expenditures (1,141,118) (1,350,089) (1,429,059) 
Proceeds from sale of property, plant and equipment 8,609
 43,834
 6,300
 
Payment for investments (3,237,807) (2,778,691) (3,069,417) 
Proceeds from sale and maturity of investments 2,113,287
 2,342,162
 3,256,077
 
Net cash used in investing activities (2,257,029) (1,742,784) (1,236,099) 
Cash flows from financing activities:       
Payment for acquisition of common stock (1,088,570) (1,405,872) (1,751,864) 
Proceeds from sale of common stock 311,950
 307,933
 283,222
 
Dividends paid (828,733) (734,510) (689,660) 
Repayment of long-term debt (11,061) (43,593) (75,325) 
Other, net 13,130
 6,239
 31,051
 
Net cash used in financing activities (1,603,284) (1,869,803) (2,202,576) 
Net increase in cash and cash equivalents 164,118
 19,339
 141,606
 
Cash and cash equivalents at beginning of year 599,264
 579,925
 438,319
 
Cash and cash equivalents at end of year $763,382
 599,264
 579,925
 
202020192018
(Amounts are in thousands)
Reconciliation of net earnings to net cash provided by operating activities:
Net earnings$3,971,838 3,005,395 2,381,167 
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization736,531 716,669 677,154 
Increase in last-in, first out (LIFO) reserve19,752 39,939 24,170 
Retirement contributions paid or payable in
common stock
418,311 409,614 373,350 
Deferred income taxes49,556 215,004 63,245 
Loss (gain) on disposal and impairment of long-lived
assets
138,573 11,036 (13,185)
(Gain) loss on investments(775,571)(627,624)73,254 
Net amortization of investments54,107 42,753 63,654 
Change in operating assets and liabilities providing (requiring) cash:
Trade receivables(180,438)(54,890)(10,790)
Inventories(140,234)(104,514)3,614 
Other assets151,714 136,796 199,930 
Accounts payable and accrued expenses615,521 181,154 112,383 
Federal and state income taxes58,901 40,548 (313,989)
Other liabilities305,656 12,551 (2,031)
Total adjustments1,452,379 1,019,036 1,250,759 
Net cash provided by operating activities$5,424,217 4,024,431 3,631,926 












        
  2019 2018 2017 
  (Amounts are in thousands) 
Reconciliation of net earnings to net cash provided by operating activities:       
Net earnings $3,005,395
 2,381,167
 2,291,894
 
Adjustments to reconcile net earnings to net cash
provided by operating activities:
       
Depreciation and amortization 716,669
 677,154
 664,009
 
Increase in last-in, first out (LIFO) reserve 39,939
 24,170
 23,028
 
Retirement contributions paid or payable in
common stock
 409,614
 373,350
 353,659
 
Deferred income taxes 215,004
 63,245
 (99,856) 
Loss (gain) on disposal and impairment of property,
plant and equipment
 11,036
 (13,185) 15,231
 
(Gain) loss on investments (627,624)
73,254

(108,924) 
Net amortization of investments 42,753
 63,654
 109,240
 
Change in operating assets and liabilities providing (requiring) cash:       
Trade receivables (54,890) (10,790) 43,870
 
Inventories (104,514) 3,614
 (177,155) 
Other assets 136,796
 199,930
 82,089
 
Accounts payable and accrued expenses 181,154
 112,383
 151,186
 
Federal and state income taxes 40,548
 (313,989) 241,686
 
Other liabilities 12,551
 (2,031) (9,676) 
Total adjustments 1,019,036
 1,250,759
 1,288,387
 
Net cash provided by operating activities $4,024,431
 3,631,926
 3,580,281
 




23


PUBLIX SUPER MARKETS, INC.
Consolidated Statements of Stockholders’ Equity
Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Common
Stock
(Acquired
from) Sold to
Stock-
holders
Accumu-
lated Other
Compre-
hensive
Earnings
(Losses)
Common
Stock
Related to
ESOP
Total
Stock-
holders’
Equity
(Amounts are in thousands, except per share amounts)
Balances at December 30, 2017$733,440 3,139,647 10,044,564 0 152,636 (3,053,138)11,017,149 
Comprehensive earnings— — 2,381,167 — (10,088)— 2,371,079 
Dividends, $1.01 per share— — (734,510)— — — (734,510)
Contribution of 8,440 shares to retirement plans6,221 261,423 — 81,780 — — 349,424 
Acquisition of 33,770 shares from stockholders— — — (1,405,872)— — (1,405,872)
Sale of 7,335 shares to stockholders1,380 56,934 — 249,619 — — 307,933 
Retirement of 25,596 shares(25,596)— (1,048,877)1,074,473 — — 0 
Change for ESOP related shares— — — — — (81,861)(81,861)
Cumulative effect of net unrealized gain on equity securities reclassified to retained earnings— — 198,310 — (198,310)— 0 
Balances at December 29, 2018715,445 3,458,004 10,840,654 0 (55,762)(3,134,999)11,823,342 
Comprehensive earnings— — 3,005,395 — 137,051 — 3,142,446 
Dividends, $1.16 per share— — (828,733)— — — (828,733)
Contribution of 8,587 shares to retirement plans5,605 235,017 — 127,329 — — 367,951 
Acquisition of 24,506 shares from stockholders— — — (1,088,570)— — (1,088,570)
Sale of 7,026 shares to stockholders1,497 65,045 — 245,408 — — 311,950 
Retirement of 15,995 shares(15,995)— (699,838)715,833 — — 0 
Change for ESOP related shares— — — — — (124,231)(124,231)
Balances at December 28, 2019706,552 3,758,066 12,317,478 0 81,289 (3,259,230)13,604,155 
Comprehensive earnings— — 3,971,838 — 119,662 — 4,091,500 
Dividends, $1.26 per share— — (884,369)— — — (884,369)
Contribution of 7,398 shares to retirement plan4,977 242,724 — 114,054 — — 361,755 
Acquisition of 27,797 shares from stockholders— — — (1,440,312)— — (1,440,312)
Sale of 4,829 shares to stockholders107 5,179 — 244,522 — — 249,808 
Retirement of 20,654 shares(20,654)— (1,061,082)1,081,736 — — 0 
Change for ESOP related shares— — — — — (225,319)(225,319)
Balances at December 26, 2020$690,982 4,005,969 14,343,865 0 200,951 (3,484,549)15,757,218 
See accompanying notes to consolidated financial statements.
24
  
Common Stock
 
Additional
Paid-in Capital
 
Retained Earnings
 
Common Stock (Acquired from) Sold to Stock-
holders
Accumu-
lated Other Compre-
hensive Earnings (Losses)
Common Stock Related to ESOP
 
Total Stock-
holders’ Equity
  (Amounts are in thousands, except per share amounts)
Balances at December 31, 2016 $763,198
 2,849,947
 9,836,696
  —
  23,427
  (3,068,097) 10,405,171
Comprehensive earnings —
 —
 2,291,894
  —
  102,145
  —
 2,394,039
Dividends, $0.9125 per share —
 —
 (689,660)  —
  —
  —
 (689,660)
Contribution of 8,833 shares to retirement plans 6,540
 262,684
 —
  92,058
  —
  —
 361,282
Acquisition of 45,952 shares from stockholders —
 —
 —
  (1,751,864)  —
  —
 (1,751,864)
Sale of 7,361 shares to stockholders 677
 27,016
 —
  255,529
  —
  —
 283,222
Retirement of 36,975 shares (36,975) —
 (1,367,302)  1,404,277
  —
  —
 —
Change for ESOP related shares —
 —
 —
  —
  —
  14,959
 14,959
Remeasurement of deferred income taxes reclassified to retained earnings —
 —
 (27,064)  —
  27,064
  —
 —
Balances at December 30, 2017 733,440
 3,139,647
 10,044,564
  —
  152,636
  (3,053,138) 11,017,149
Comprehensive earnings —
 —
 2,381,167
  —
  (10,088)  —
 2,371,079
Dividends, $1.01 per share —
 —
 (734,510)  —
  —
  —
 (734,510)
Contribution of 8,440 shares to retirement plans 6,221
 261,423
 —
  81,780
  —
  —
 349,424
Acquisition of 33,770 shares from stockholders —
 —
 —
  (1,405,872)  —
  —
 (1,405,872)
Sale of 7,335 shares to stockholders 1,380
 56,934
 —
  249,619
  —
  —
 307,933
Retirement of 25,596 shares (25,596) —
 (1,048,877)  1,074,473
  —
  —
 —
Change for ESOP related shares —
 —
 —
  —
  —
  (81,861) (81,861)
Cumulative effect of net unrealized gain on equity securities reclassified to retained earnings —
 —
 198,310
  —
  (198,310)  —
 —
Balances at December 29, 2018 715,445
 3,458,004
 10,840,654
  —
  (55,762)  (3,134,999) 11,823,342
Comprehensive earnings —
 —
 3,005,395
  —
  137,051
  —
 3,142,446
Dividends, $1.16 per share —
 —
 (828,733)  —
  —
  —
 (828,733)
Contribution of 8,587 shares to retirement plans 5,605
 235,017
 —
  127,329
  —
  —
 367,951
Acquisition of 24,506 shares from stockholders —
 —
 —
  (1,088,570)  —
  —
 (1,088,570)
Sale of 7,026 shares to stockholders 1,497
 65,045
 —
  245,408
  —
  —
 311,950
Retirement of 15,995 shares (15,995) —
 (699,838)  715,833
  —
  —
 —
Change for ESOP related shares —
 —
 —
  —
  —
  (124,231) (124,231)
Balances at December 28, 2019 $706,552
 3,758,066
 12,317,478
  —
  81,289
  (3,259,230) 13,604,155


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(1)    Summary of Significant Accounting Policies
(a)Business
(a)Business
Publix Super Markets, Inc. and its wholly owned subsidiaries (Company) are in the business of operating retail food supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina, Tennessee and Virginia. The Company was founded in 1930 and later merged into another corporation that was originally incorporated in 1921. The Company has no other significant lines of business or industry segments.
(b)Principles of Consolidation
(b)Principles of Consolidation
The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and certain joint ventures in which the Company has a controlling financial interest. All significant intercompany balances and transactions are eliminated in consolidation.
(c)Fiscal Year
(c)Fiscal Year
The Company’s fiscal year ends on the last Saturday in December. Fiscal years 2020, 2019 2018 and 20172018 include 52 weeks.
(d)Cash Equivalents
(d)Cash Equivalents
The Company considers all liquid investments with maturities of three months or less to be cash equivalents.
(e)Trade Receivables
(e)Trade Receivables
Trade receivables primarily include amounts due from vendor allowances,rebates, debit and credit card sales and third party insurance pharmacy billings.
(f)Inventories
(f)Inventories
Inventories are valued at the lower of cost or market. The dollar value last-in, first-out (LIFO) method was used to determine the cost for 84% and 85% of inventories as of December 26, 2020 and December 28, 2019, and December 29, 2018.respectively. Under this method, inventory is stated at cost, which is determined by applying a cost-to-retail ratio to each similar merchandise category’s ending retail value. The cost of the remaining inventories was determined using the first-in, first-out (FIFO) method. The FIFO cost of inventory approximates replacement or current cost. The FIFO method is used to value certain manufactured, seasonal, perishable and other miscellaneous inventory items because ofdue to fluctuating costs and inconsistent product availability. The Company also reduces inventory for estimated losses related to shrink. If all inventories were valued using the FIFO method, inventories and current assets would have been higher than reported by $528,997,000$548,749,000 and $489,058,000$528,997,000 as of December 26, 2020 and December 28, 2019, andrespectively.
(g)Investments
In 2020, the Company adopted the Accounting Standards Update (ASU) requiring companies to recognize credit losses on debt securities in earnings through an allowance that is reevaluated each reporting period. The Company adopted the ASU on a prospective basis as of December 29, 2018, respectively.2019. Prior to the adoption of the ASU, credit losses in which the Company did not expect to recover the cost of the debt security were recognized in earnings as an other-than-temporary impairment. The adoption of the ASU did not have a material effect on the Company’s financial position, results of operations or cash flows.
(g)Investments
Debt securities are classified as available-for-sale and measured at fair value. The Company evaluates whether debt securities are other-than-temporarily impaired (OTTI)on an individual security basis to determine if an unrealized loss is due to a credit loss or other factors, including interest rate fluctuations. The collectability of debt securities is evaluated based on criteria that include the extent to which the cost (cost of the debt security adjusted for amortization of premium or accretion of discount) exceeds marketfair value, the duration of the market value 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 fair value ofCredit losses on debt securities determined to be OTTI are recognized in earnings and reported as OTTI 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 cost and the fair value. A debt security is also determined to be OTTI if the Company does not expect to recover the cost of the debt 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 impairmentprior to any anticipated recovery are recognized in earnings equals the estimated credit lossthrough an allowance. The allowance is measured as measured by the difference between the present value of expected cash flows and the cost of the debt security, limited to the difference between the cost and the fair value of the debt security. Expected cash flows are discounted using the debt security’s effective interest rate. ChangesSubsequent changes to the allowance are recognized in earnings in the period of the change. Credit losses on debt securities the Company intends to sell or will be required to sell prior to any anticipated recovery are recognized in earnings and measured as the difference between the cost and the fair value of the debt security.


25

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

Other unrealized losses on debt securities determinedthe Company does not intend to sell and will not be temporaryrequired to sell prior to any anticipated recovery are reported in other comprehensive earnings net of income taxes and included as a component of stockholders’ equity.
In 2018, Other unrealized losses on debt securities the Company adoptedintends to sell or will be required to sell prior to any anticipated recovery are recognized in earnings and measured as the Accounting Standards Update (ASU) requiring equitydifference between the cost and the fair value of the debt security.
Equity securities beare measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). The fair value adjustment also includes the cumulative effect of the ASU as of December 31, 2017 reclassified from accumulated other comprehensive earnings to retained earnings.


25

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


Prior to the adoption of the ASU, changes in the fair value of equity securities were accounted for similar to changes in the fair value of debt securities. Equity securities were classified as available-for-sale and measured at fair value. Declines in the fair value of equity securities determined to be OTTI were recognized in earnings and reported as OTTI losses. An equity security was determined to be OTTI if the Company did not expect to recover the cost of the equity security. Changes in the fair value of equity securities determined to be temporary were reported in other comprehensive earnings net of income taxes and included as a component of stockholders’ equity.
Interest and dividend income, amortization of premiums, accretion of discounts and realized gains and losses on the sale of debt and equity securities are included in investment income. Interest income is accrued as earned. Dividend income is recognized as income on the ex-dividend date. The cost of debt and equity securities sold is based on the specific identification method. With the adoption of the ASU, the fair value adjustment on equity securities held as of December 28, 2019 and December 29, 2018 is also included in investment income.
(h)Leases
(h)Leases
The Company conducts a major portion of its retail operations from leased locations. In 2019, the Company adopted the ASU requiring the lease rights and obligations arising from existing and new lease agreements be recognized as assets and liabilities on the balance sheet. The Company adopted the ASU on a modified retrospective basis and elected the transitional provisions eliminating the requirement to restate reporting periods prior to the date of adoption. The Company also elected to not reassess the original conclusions reached regarding lease identification, lease classification and initial direct costs for leases entered into prior to the adoption of the ASU. Prior to the adoption of the ASU, the Company was not required to record operating leases on the balance sheet when it was the lessee.
The Company determines whether a lease exists at inception. Initial lease terms are typically 20 years followed by five year renewal options and may include rent escalation clauses. A renewal option is included in theThe Company recognizes right-of-use assetassets and lease liabilityliabilities based on the present value of future lease payments. Future lease payments include the initial lease term and any renewal options to the extent it is reasonably certain the option will be exercised. The present value of future lease payments for each lease is determined by using the Company’s incremental borrowing rate at the time of lease commencement. The incremental borrowing rate is estimated based on a composite index of debt for similarly rated companies with comparable terms.
Operating lease expense primarily represents fixed lease payments for operating leases recognized on a straight-line basis over the applicable lease term. Variable lease expense represents the payment of real estate taxes, insurance, maintenance and, for certain locations, additional rentals based on a percentage of sales in excess of stipulated minimums (excess rent). The payment of variable real estate taxes, insurance and maintenance is generally based on the Company’s pro-rata share of total shopping center square footage. The Company estimates excess rent, where applicable, based on annual sales projections and uses the straight-line method to amortize the cost. The annual sales projections are reviewed periodically and adjusted if necessary.
(i)Property, Plant and Equipment and Depreciation
(i)Property, Plant and Equipment and Depreciation
Assets are recorded at cost and depreciated or amortized using the straight-line method over their estimated useful lives or the terms of the related leases, if shorter, as follows: buildings and improvements (10–40 years); furniture, fixtures and equipment (3–20 years); and leasehold improvements (10–20 years).
Maintenance and repairs are expensed as incurred. Expenditures for renewals and betterments are capitalized. The gain or loss realized on disposed assets or assets to be disposed of is recorded in earnings.
(j)Long-Lived Assets
(j)Long-Lived Assets
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the net book value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the net book value of an asset to the future net undiscounted cash flows expected to be generated by the asset. An impairment loss is recorded for the excess of the net book value over the fair value of the asset. The fair value is estimated based on expected discounted future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell and are no longer depreciated or amortized. Long-lived assets, including operating lease right-of-use assets, buildings and improvements, leasehold improvements, and furniture, fixtures and equipment, are evaluated for impairment at the supermarket level.
(k)Self-Insurance
(k)Self-Insurance
The Company is generally self-insured for claims related to health care, claims and certainemployee benefits, workers’ compensation, general liability, property, plant and equipment, losses.fleet liability and directors and officers liability. The Company hasuses third party insurance for losses in excess of self-insurance limits for workers’ compensation, general liability and fleet liability claims.certain instances to partially mitigate the risk related to these potential losses. Self-insurance reserves are established for health care, workers’ compensation, general liability and fleet


26

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements


liability claims. These reserves are determined based on actual claims experience and an estimate of claims incurred but not reported including, where necessary, actuarial studies. Actuarial projections of losses for general liability and workers’ compensation claims are discounted.
(l)Postretirement Benefit

26

PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements

(l)Postretirement Benefit
The Company provides a postretirement life insurance benefit for certain salaried and hourly full-time employees who meet the eligibility requirements. Effective January 1, 2002, the Company amended the postretirement life insurance benefit under its Group Life Insurance Plan. To receive the postretirement life insurance benefit after the amendment, an employee must have had at least five years of full-time service and the employee’s age plus years of credited service must have equaled 65 or greater as of October 1, 2001. At retirement, such employees also must be at least age 55 with at least 10 years of full-time service to be eligible to receive the postretirement life insurance benefit.
Actuarial projections are used to calculate the year end postretirement benefit obligation, discounted using a yield curve methodology based on high quality bonds with a rating of AA or better. Actuarial losses are amortized from accumulated other comprehensive earnings into net periodic postretirement benefit cost over future years when the accumulation of such losses exceeds 10% of the year end postretirement benefit obligation.
(m)Comprehensive Earnings
(m)Comprehensive Earnings
Comprehensive earnings include net earnings and other comprehensive earnings. Other comprehensive earnings include revenues, expenses, gains and losses that have been excluded from net earnings and recorded directly to stockholders’ equity. Included in other comprehensive earnings for the Company are certain unrealized gains and losses on debt securities in 2019 and 2018, unrealized gains and losses on debt and equity securities in 2017 and adjustments to the postretirement benefit obligation.obligation net of income taxes.
(n)Revenue Recognition
(n)Revenue Recognition
The Company sells grocery (including dairy, produce, floral, deli, bakery, meat and seafood), health and beauty care, general merchandise, pharmacy and other products and services. Grocery was 85% of sales for 2020 and 84% of sales for 2019 2018 and 2017.2018. All other products and services were 15% of sales for 2020 and 16% of sales for 2019 2018 and 2017.2018.
Revenue is recognized at the point of sale for retail sales. Customer returns are immaterial. Vendor coupons that are reimbursed are accounted for as sales. Coupons and other sales incentives offered by the Company that are not reimbursed are recorded as a reduction of sales. The Company records sales net of applicable sales taxes.
(o)Other Operating Income
(o)Other Operating Income
Other operating income is recognized on a net basis as earned. Other operating income includes income generated from other activities, primarily lotteryautomated teller transaction fees, licensee sales commissions, licensee saleslottery commissions, mall gift card commissions, automated teller transaction fees, vending machinemoney order commissions, money transfer fees and money ordervending machine commissions.
(p)Cost of Merchandise Sold
(p)Cost of Merchandise Sold
Cost of merchandise sold includes costs of inventory and costs related to in-store production. Cost of merchandise sold also includes inbound freight charges, purchasing and receiving costs, warehousing costs and other costs of the Company’s distribution network.
Allowances and credits, including cooperative advertising allowances,Rebates received from a vendor in connection with the purchase or promotion of the vendor’s products are recognized as a reduction of cost of merchandise sold as earned. These allowances and creditsvendor rebates are recognized as earned in accordance with the underlying agreement with the vendor and completion of the earnings process. Short-term vendor agreements with advance payment provisions are recorded as a current liability and recognized over the appropriate period as earned according to the underlying agreements. Long-term vendor agreements with advance payment provisions are recorded as a noncurrent liability and recognized over the appropriate period as earned according to the underlying agreements.
(q)Advertising Costs
(q)Advertising Costs
Advertising costs are expensed as incurred and were $244,839,000, $245,403,000 and $249,123,000 for 2020, 2019 and $251,933,000 for 2019, 2018, and 2017, respectively.
(r)Other Nonoperating Income, net
(r)Other Nonoperating Income, net
Other nonoperating income, net includes rent from tenants in owned shopping centers, net of related expenses, and other miscellaneous nonoperating income.




27


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(s)Income Taxes
(s)Income Taxes
Deferred income taxes are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in income tax rates expected to be in effect when the temporary differences reverse. The Company recognizes accrued interest and penalties related to income tax liabilities as a component of income tax expense. The Company invests in certain investment related tax credits that promote affordable housing and renewable energy. These investments generate a return primarily through the realization of federal and state tax credits and other tax benefits. The Company accounts for its affordable housing investments using the proportional amortization method. Under this method, the investment is amortized into income tax expense in proportion to the tax credits received and the investment tax credits are recognized as a reduction of income tax expense. The Company accounts for its renewable energy investments using the deferral method. Under this method, the investment tax credits are recognized as a reduction of the renewable energy investments.
(t)Common Stock and Earnings Per Share
(t)Common Stock and Earnings Per Share
Earnings per share is calculated by dividing net earnings by the weighted average shares outstanding. Basic and diluted earnings per share are the same because the Company does not have options or other stock compensation programs that impact the calculation of diluted earnings per share. All shares owned by the Employee Stock Ownership Plan (ESOP) are included in the earnings per share calculations. Dividends paid to the ESOP, as well as dividends on all other common stock shares, are reflected as a reduction of retained earnings. All common stock shares, including ESOP and 401(k) Plan shares, receive one vote per share and have the same dividend rights. The voting rights for ESOP shares allocated to participants’ accounts are passed through to the participants. The Trustee of the Company’s common stock in the 401(k) Plan votes the shares held in that plan.
(u)Use of Estimates
(u)Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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.
(2)    Fair Value of Financial Instruments
The fair value of certain of the Company’s financial instruments, including cash and cash equivalents, trade receivables and accounts payable, approximates their respective carrying amounts due to their short-term maturity.
The fair value of investments is 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. Investments included in this category are equity securities (exchange traded funds and individual 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 and broker dealer quotes), the fair value is determined through processes such as benchmark curves, benchmarking of likesimilar securities and matrix pricing of corporate, state and municipal bonds by using pricing of similar bonds based on coupons, ratings and maturities. Investments included in this category are primarily debt securities (tax exempt and taxable bonds), including restricted investments in taxable bonds held as collateral.
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 investments are currently included in this category.
Following is a summary of fair value measurements for investments as of December 28, 201926, 2020 and December 29, 2018:28, 2019:
Fair ValueLevel 1Level 2Level 3
(Amounts are in thousands)
December 26, 2020$11,288,199 1,465,987 9,822,212 0 
December 28, 20198,426,385 2,028,547 6,397,838 0 
  Fair Value Level 1 Level 2 Level 3
  (Amounts are in thousands)
December 28, 2019 $8,426,385
 2,028,547
 6,397,838
 —
December 29, 2018 6,577,430
 2,372,931
 4,204,499
 —



28


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(3)    Investments
(a)Debt Securities
(a)Debt Securities
Following is a summary of debt securities as of December 28, 201926, 2020 and December 29, 2018:28, 2019:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value

 Cost 
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value(Amounts are in thousands)
20202020
Tax exempt bondsTax exempt bonds$548,438 7,408 88 555,758 
Taxable bondsTaxable bonds8,182,003 286,745 8,324 8,460,424 
Restricted investmentsRestricted investments167,727 14,383 0 182,110 

 (Amounts are in thousands)$8,898,168 308,536 8,412 9,198,292 
2019        2019
Tax exempt bonds $767,931
 3,429
 130
 771,230
Tax exempt bonds$767,931 3,429 130 771,230 
Taxable bonds 5,002,036
 120,132
 1,443
 5,120,725
Taxable bonds5,002,036 120,132 1,443 5,120,725 
Restricted investments 169,983
 10,101
 —
 180,084
Restricted investments169,983 10,101 0 180,084 

 $5,939,950
 133,662
 1,573
 6,072,039
$5,939,950 133,662 1,573 6,072,039 
2018 

 
 
 
Tax exempt bonds $1,256,673
 184
 12,759
 1,244,098
Taxable bonds 2,527,468
 1,737
 55,085
 2,474,120
Restricted investment 160,318
 520
 346
 160,492

 $3,944,459
 2,441
 68,190
 3,878,710
The Company maintains restricted investments primarily for the benefit of the Company’s insurance carrier related to self-insurance reserves. These investments are held as collateral and not used for claim payments.
The cost and fair value of debt securities by expected maturity as of December 28, 201926, 2020 and December 29, 201828, 2019 are as follows:
  
20202019
Cost
Fair
Value
Cost
Fair
Value
(Amounts are in thousands)
Due in one year or less$677,453 682,965 437,236 438,105 
Due after one year through five years5,330,696 5,533,074 3,836,333 3,900,904 
Due after five years through ten years2,886,333 2,978,301 1,661,143 1,727,594 
Due after ten years3,686 3,952 5,238 5,436 
$8,898,168 9,198,292 5,939,950 6,072,039 
  
 2019 2018
  Cost 
Fair
Value
 Cost 
Fair
Value
    (Amounts are in thousands)   
Due in one year or less $437,236

438,105

563,272

560,992
Due after one year through five years 3,836,333

3,900,904

2,831,916

2,768,971
Due after five years through ten years 1,661,143

1,727,594

542,488

541,852
Due after ten years 5,238

5,436

6,783

6,895

 $5,939,950

6,072,039

3,944,459

3,878,710




29


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



The Company had 0 debt securities with credit losses as of December 26, 2020.
Following is a summary of temporarily impaired debt securities with other unrealized losses by the time period impaired as of December 28, 201926, 2020 and December 29, 2018:28, 2019:
Less Than
12 Months
12 Months
or Longer
Total
 
Less Than
12 Months
 
12 Months
or Longer
 Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(Amounts are in thousands)
20202020
Tax exempt bondsTax exempt bonds$3,704 88 0 0 3,704 88 
Taxable bondsTaxable bonds1,157,387 7,946 39,622 378 1,197,009 8,324 
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 (Amounts are in thousands) $1,161,091 8,034 39,622 378 1,200,713 8,412 
2019 
 
 
 
 
 
 2019
Tax exempt bonds $48,462
 11
 99,976
 119
 148,438
 130
 Tax exempt bonds$48,462 11 99,976 119 148,438 130 
Taxable bonds 573,315
 888
 197,641
 555
 770,956
 1,443
 Taxable bonds573,315 888 197,641 555 770,956 1,443 

 $621,777
 899
 297,617
 674
 919,394
 1,573
 
2018 
 
 
 
 
 
 
Tax exempt bonds $25,150
 95
 1,182,783
 12,664
 1,207,933
 12,759
 
Taxable bonds 645,379
 5,821
 1,464,208
 49,264
 2,109,587
 55,085
 
Restricted investment 28,687
 346
 —
 —
 28,687
 346
 

 $699,216
 6,262
 2,646,991
 61,928
 3,346,207
 68,190
 $621,777 899 297,617 674 919,394 1,573 
There are 8051 debt securities contributing to the total unrealized losses of $1,573,000$8,412,000 as of December 28, 2019.26, 2020. Unrealized losses related to debt securities are primarily due to increases in interest rates that occurred since the debt securities were purchased. The Company continues to receive scheduled principal and interest payments on these debt securities.
(b)Equity Securities
(b)Equity Securities
The fair value of equity securities was $2,354,346,000$2,089,907,000 and $2,698,720,000$2,354,346,000 as of December 26, 2020 and December 28, 2019, and December 29, 2018, respectively.
(c)Investment Income
(c)Investment Income
Net realized gain on the sale of investments represents the difference between the cost and the proceeds from the sale of debt and equity securities. For 2019 and 2018, theThe net realized gain on the sale of investments excludes the net gain or loss on the sale of equity securities previously recognized through the fair value adjustment, which is presented separately in the following table.
Following is a summary of investment income for 2020, 2019 2018 and 2017:2018:
202020192018
 (Amounts are in thousands)
Interest and dividend income$199,435 186,748 129,953 
Net realized gain on investments396,584 104,905 109,547 
596,019 291,653 239,500 
Fair value adjustment, due to net unrealized gain (loss), on equity securities held at end of year554,547 472,490 (107,466)
Net (gain) loss on sale of equity securities previously recognized through fair value adjustment(175,560)50,229 (75,335)
$975,006 814,372 56,699 
 201920182017
 (Amounts are in thousands)
Interest and dividend income $186,748
  129,953
  117,702
 
Net realized gain on sale of investments 104,905
  109,547
  108,924
 
  291,653
  239,500
  226,626
 
Fair value adjustment, due to net unrealized gain (loss), on equity securities held at end of year 472,490
  (107,466)  —
 
Net loss (gain) on sale of equity securities previously recognized through fair value adjustment 50,229
  (75,335)  —
 
  $814,372
  56,699
  226,626
 



30


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(4)    Leases
(a)Lessee
(a)Lessee
In 2019, the Company adopted the ASU requiring the lease rights and obligations arising from existing and new lease agreements be recognized as assets and liabilities on the balance sheet. AsThe Company adopted the ASU on a modified retrospective basis and elected the transitional provisions eliminating the requirement to restate reporting periods prior to the date of December 30, 2018, the Company recognized $2,922,446,000 of operating lease right-of-use assets and operating lease liabilities on the consolidated balance sheet.adoption. The adoption of the ASU did not have a material effect on the Company’s results of operations and had no effect on the Company’s cash flows.
The Company includedFollowing is a summary of finance lease right-of-use assets of $154,217,000included in net property, plant and equipment and finance lease liabilities of $29,480,000 and $104,806,000included in other accrued expenses and other noncurrent liabilities respectively, on the consolidated balance sheet as of December 26, 2020 and December 28, 2019.
20202019
(Amounts are in thousands)
Finance lease right-of-use assets$291,556 154,217 
Finance lease liabilities:
Current25,254 29,480 
Noncurrent246,411 104,806 
Lease expense for 2020 and 2019 was as follows:
201920202019
(Amounts are in thousands)(Amounts are in thousands)
Operating lease expense $434,555
 Operating lease expense$443,063 434,555 
Finance lease expense:   Finance lease expense:
Amortization of right-of-use assets 8,128
 Amortization of right-of-use assets9,850 8,128 
Interest on lease liabilities 3,105
 Interest on lease liabilities4,651 3,105 
Variable lease expense 147,463
 Variable lease expense159,236 147,463 
Sublease rental income (2,874) Sublease rental income(2,819)(2,874)
 $590,377
 $613,981 590,377 
Supplemental cash flow information related to leases for 2020 and 2019 was as follows:
 2019
 (Amounts are in thousands)
Operating cash flows from rent paid for operating lease liabilities $422,596
 
Right-of-use assets obtained in exchange for new lease liabilities:   
Operating leases 463,727
 
Finance leases 65,539
 
The weighted-average remaining lease term and weighted-average discount rate as of December 28, 2019 are as follows:
20202019
(Amounts are in thousands)
Operating cash flows from rent paid for operating lease liabilities$436,988 422,596 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases364,757 463,727 
Finance leases174,307 65,539 
December 28, 2019
Weighted-average remaining lease term:
Operating leases12 years
Finance leases18 years
Weighted-average discount rate:
Operating leases3.5%
Finance leases3.9%



31


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



The weighted average remaining lease term and weighted average discount rate as of December 26, 2020 and December 28, 2019 are as follows:
20202019
Weighted average remaining lease term:
Operating leases12 years12 years
Finance leases19 years18 years
Weighted average discount rate:
Operating leases3.4 %3.5 %
Finance leases3.3 %3.9 %
Maturities of lease liabilities as of December 28, 201926, 2020 are as follows:
   
Year
Operating
Leases
 
Finance
Leases
Year
Operating
Leases
Finance
Leases
(Amounts are in thousands)(Amounts are in thousands)
2020$430,983
 33,068
2021405,096
 8,101
2021$438,358 32,962 
2022369,434
 8,101
2022414,464 18,163 
2023327,091
 22,817
2023372,632 32,879 
2024280,317
 7,132
2024326,523 17,194 
20252025275,623 17,194 
Thereafter1,852,831
 91,140
Thereafter1,797,109 233,575 
3,665,752
 170,359
3,624,709 351,967 
Less: Imputed interest(727,155) (36,073)Less: Imputed interest(690,646)(80,302)
$2,938,597
 134,286
$2,934,063 271,665 
As of December 28, 2019,26, 2020, the Company has lease agreements that have not yet commenced with fixed lease payments totaling $282,322,000.$359,498,000. These leases will commence in future periods with terms ranging up to 20 years.
Prior to the adoption of the ASU, minimum rentals represented fixed lease obligations, including insurance and maintenance to the extent they were fixed in the lease. Contingent rentals represented variable lease obligations, including real estate taxes, insurance, maintenance and, for certain locations, excess rent. The Company recognized rent expense for operating leases with rent escalation clauses on a straight-line basis over the applicable lease term.
Total rental expense for 2018 and 2017 was as follows:
  2018 2017 
  (Amounts are in thousands)
Minimum rentals $449,138
 437,403
 
Contingent rentals 133,382
 126,855
 
Sublease rental income (4,339) (4,617) 
  $578,181
 559,641
 

2018
(Amounts are in thousands)
Minimum rentals$449,138 
Contingent rentals133,382 
Sublease rental income(4,339)
$578,181 


32


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(b)    Lessor
(b)Lessor
The Company leases space in owned shopping centers to tenants under noncancelable operating leases. The Company determines whether a lease exists at inception. Initial lease terms are typically five years followed by five year renewal options and may include rent escalation clauses. Lease income primarily represents fixed lease payments from tenants recognized on a straight-line basis over the applicable lease term. Variable lease income represents tenant payments for real estate taxes, insurance, maintenance and, for certain locations, excess rent.
Total lease income was $172,309,000, $190,785,000 and $183,963,000 for 2020, 2019 and $158,121,000 for 2019, 2018, and 2017, respectively. Total lease income for 2020 and 2019 was as follows:
20202019
(Amounts are in thousands)
Lease income$133,512 149,313 
Variable lease income    38,797 41,472 
$172,309 190,785 
 2019
 (Amounts are in thousands)
Lease income $149,313
 
Variable lease income 41,472
 
  $190,785
 
In 2020, the Company offered two months of rent relief to tenants in Company owned shopping centers that were impacted by the coronavirus pandemic. The rent relief was recorded as a reduction to lease income and variable lease income.
Future fixed lease payments for all noncancelable operating leases as of December 28, 201926, 2020 are as follows:
Year Year
(Amounts are in thousands)(Amounts are in thousands)(Amounts are in thousands)
2020$146,201
2021120,281
2021$149,716 
202294,365
2022122,580 
202370,620
202397,354 
202444,703
202469,995 
2025202544,908 
Thereafter169,422
Thereafter159,256 
$645,592
$643,809 


33


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(5)    Consolidation of Joint Ventures and Long-Term Debt
From time to time, the Company enters into a joint venture (JV), in the legal form of a limited liability company, with certain real estate developers to partner in the development of a shopping center with the Company as the anchor tenant. The Company consolidates certain of these JVs in which it 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 JV’s 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 Company evaluates a JV 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 routine capital and operating decisions and each member’s influence over the JV owned shopping center’s economic performance.
Generally, most major JV decision making 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. However, the Company, through its anchor tenant operating lease agreement, has the power to direct the activities that most significantly influence the economic performance of the JV owned shopping center. Additionally, through its member equity interest in the JV, the Company will receive a significant portion of the JV’s benefits or is obligated to absorb a significant portion of the JV’s losses. Substantially all of the JVs are consolidated as the Company is the primary beneficiary of the JVs.
As of December 26, 2020, the carrying amounts of the assets and liabilities of the consolidated JVs were $199,230,000 and $77,565,000, respectively. As of December 28, 2019, the carrying amounts of the assets and liabilities of the consolidated JVs were $154,659,000 and $78,472,000, respectively. As of December 29, 2018, the carrying amounts of the assets and liabilities of the consolidated JVs were $144,197,000 and $71,342,000, respectively. 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 of certain JVs guaranteed by the Company. The JVs are financed with capital contributions from the members, loans and/or the cash flows generated by the JV owned shopping centers once in operation. Total earnings attributable to noncontrolling interests for 2020, 2019 2018 and 20172018 were immaterial. The Company’s involvement with these JVs does not have a significant effect on the Company’s financial condition, results of operations or cash flows.
The Company’s long-term debt results primarily from the consolidation of loans of certain JVs and loans assumed in connection with the acquisition of certain shopping centers with the Company as the anchor tenant. NoNaN loans were assumed during 2020 or 2019. The Company assumed loans totaling $9,936,000 during 2018. Maturities of JV loans range from June 2020January 2021 through April 2027 and have variable interest rates based on a LIBOR index plus 175 to 250 basis points. Maturities of assumed shopping center loans range from December 2020April 2021 through January 2027 and have fixed interest rates ranging from 3.7% to 7.5%.
As of December 28, 2019,26, 2020, the aggregate annual maturities and scheduled payments of long-term debt are as follows:
Year
(Amounts are in thousands)
2021$36,392 
202225,238 
202338,694 
202432,165 
2025400 
Thereafter27,338 
$160,227 
Year 
(Amounts are in thousands)
2020$39,692
202135,415
202225,096
202318,693
202422,293
Thereafter30,500
 $171,689
  





34


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(6)    Retirement Plans
The Company has a trusteed, noncontributory ESOP for the benefit of eligible employees. The Company recognizes an expense related to the Company’s discretionary contribution to the ESOP that is approved by the Board of Directors each year. ESOP contributions can be made in Company common stock or cash. Compensation expense recorded for contributions to this plan was $417,800,000, $370,778,000 and $337,712,000 for 2020, 2019 and $319,470,000 for 2019, 2018, and 2017, respectively.
Since the Company’s common stock is not traded on an established securities market, the ESOP includes a put option for shares of the Company’s common stock distributed from the ESOP. Shares are distributed from the ESOP primarily to separated vested participants and certain eligible participants who elect to diversify their account balances. Under the Company’s administration of the ESOP’s put option, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for a specified time period after distribution of the shares from the ESOP. The fair value of distributed shares subject to the put option totaled $287,328,000$444,801,000 and $288,580,000$287,328,000 as of December 28, 201926, 2020 and December 29, 2018,28, 2019, respectively. The cost of the shares held by the ESOP totaled $2,971,902,000$3,039,748,000 and $2,846,419,000$2,971,902,000 as of December 28, 201926, 2020 and December 29, 2018,28, 2019, respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held by the ESOP are classified as temporary equity in the mezzanine section of the consolidated balance sheets and totaled $3,259,230,000$3,484,549,000 and $3,134,999,000$3,259,230,000 as of December 28, 201926, 2020 and December 29, 2018,28, 2019, respectively. The fair value of the shares held by the ESOP totaled $8,585,189,000$9,976,034,000 and $8,061,399,000$8,585,189,000 as ofDecember 26, 2020 and December 28, 2019, and December 29, 2018, respectively.
The Company has a 401(k) Plan for the benefit of eligible employees. The 401(k) Plan is a voluntary defined contribution plan. EligibleEffective January 1, 2020, eligible employees may contribute up to 30% of their eligible annual compensation, subject to the maximum contribution limits established by federal law. Previously, eligible employees could contribute up to 10% of their eligible annual compensation, subject to the maximum contribution limits established by federal law. The Company may make a discretionary annual matching contribution to eligible participants of this plan as determined by the Board of Directors. During 2020, 2019 2018 and 2017,2018, the Board of Directors approved a match of 50% of eligible annual contributions up to 3% of eligible annual compensation, not to exceed a maximum match of $750 per employee. The match is determined as of the last day of the plan year and paid in the subsequent plan year. Compensation expense recorded for the Company’s match to the 401(k) Plan was $39,858,000, $38,112,000 and $34,980,000 for 2020, 2019 and $33,636,000 for 2019, 2018, and 2017, respectively.
The Company intends to continue its retirement plans; however, the right to modify, amend, terminate or merge these plans has been reserved. In the event of termination, all amounts contributed under the plans must be paid to the participants or their beneficiaries.



35


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(7)    Income Taxes
The Tax Cuts and Jobs Act of 2017 (Tax Act), signed into law on December 22, 2017, made significant changes to the Internal Revenue Code. These changes included, among others, a decrease in the federal statutory income tax rate from 35% to 21% beginning in 2018.
Total income taxes for 2020, 2019 2018 and 20172018 were allocated as follows:
  2019 2018 2017
  (Amounts are in thousands)
Earnings $780,591

539,801

735,612
Other comprehensive earnings (losses) 46,723

(3,440)
64,324
  $827,314
 536,361
 799,936
202020192018
(Amounts are in thousands)
Earnings$1,064,817 780,591 539,801 
Other comprehensive earnings (losses)       40,682 46,723 (3,440)
$1,105,499 827,314 536,361 
The provision for income taxes consists of the following:
  Current Deferred Total
  (Amounts are in thousands)
2019      
Federal $504,047
 171,422
 675,469
State 61,540
 43,582
 105,122
  $565,587
 215,004
 780,591
2018      
Federal $413,735
 59,377
 473,112
State 62,821
 3,868
 66,689
  $476,556
 63,245
 539,801
2017      
Federal $771,355
 (113,620) 657,735
State 64,113
 13,764
 77,877
  $835,468
 (99,856) 735,612
CurrentDeferredTotal
(Amounts are in thousands)
2020
Federal$   871,187 56,382 927,569 
State     144,074 (6,826)137,248 
$1,015,261 49,556 1,064,817 
2019
Federal$   504,047 171,422 675,469 
State       61,540 43,582 105,122 
$   565,587 215,004 780,591 
2018
Federal$   413,735 59,377 473,112 
State       62,821 3,868 66,689 
$   476,556 63,245 539,801 
A reconciliation of the provision for income taxes at the federal statutory income tax rate of 21% for 2019 and 2018 and 35% for 2017 to earnings before income taxes compared to the Company’s actual income tax expense is as follows:
202020192018
(Amounts are in thousands)
Federal tax at statutory income tax rate$1,057,698 795,057 613,403 
State income taxes (net of federal tax benefit)     108,426 83,046 52,684 
ESOP dividend     (47,449)(45,493)(41,175)
Other, net     (53,858)(52,019)(85,111)
$1,064,817 780,591 539,801 
  2019 2018 2017
  (Amounts are in thousands)
Federal tax at statutory income tax rate $795,057
 613,403
 1,059,627
State income taxes (net of federal tax benefit) 83,046
 52,684
 50,621
ESOP dividend (45,493) (41,175) (65,111)
Other, net (52,019) (85,111) (85,330)
Remeasurement of deferred income taxes —
 —
 (224,195)
  $780,591

539,801

735,612
The impact of the reduction of the federal statutory income tax rate decreased the Company’s income tax expense for 2017 by $224,195,000 due to the remeasurement of deferred income taxes. The Company had no incomplete or provisional amounts in the remeasurement of deferred income taxes.





36


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



The tax effects of temporary differences that give rise to significant portions of deferred income taxes as of December 28, 201926, 2020 and December 29, 201828, 2019 are as follows:
  2019 2018
  (Amounts are in thousands)
Deferred tax liabilities and (assets):    
Lease assets $770,182
 —
Property, plant and equipment 671,864
 581,290
Investments 176,744
 (10,811)
Inventories 30,398
 25,989
Lease liabilities (781,250) (4,662)
Self-insurance reserves (80,655) (79,467)
Retirement plan contributions (46,196) (41,424)
Postretirement benefit cost (32,064) (28,224)
Purchase allowances (15,299) (11,114)
Other (11,240) (10,820)
  $682,484
 420,757
20202019
(Amounts are in thousands)
Deferred tax liabilities and (assets):
Lease assets$789,369 770,182 
Property, plant and equipment719,212 671,864 
Investments337,147 176,744 
Inventories30,906 30,398 
Lease liabilities(815,024)(781,250)
Self-insurance reserves(84,509)(80,655)
Payroll tax deferral(75,770)0 
Retirement plan contributions(48,390)(46,196)
Postretirement benefit cost(35,031)(32,064)
Vendor rebates(18,517)(15,299)
Other(26,671)(11,240)
$772,722 682,484 
The Company expects the results of future operations and the reversal of deferred tax liabilities to generate sufficient taxable income to allow utilization of deferred tax assets; therefore, no0 valuation allowance has been recorded as of December 28, 201926, 2020 and December 29, 2018.28, 2019.
The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns as well as all open tax years in these jurisdictions. The periods subject to examination for the Company’s federal income tax returns are the 20162017 through 20182019 tax years. The periods subject to examination for the Company’s state income tax returns are the 20132015 through 20182019 tax years. The Company believes that the outcome of any examinations will not have a material effect on its financial condition, results of operations or cash flows.
The Company had no unrecognized tax benefits in 20192020 and 2018.2019. As a result, there will be no0 effect on the Company’s effective income tax rate in future periods due to the recognition of unrecognized tax benefits.



37


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(8)    Accumulated Other Comprehensive Earnings (Losses)
A reconciliation of the changes in accumulated other comprehensive earnings (losses) net of income taxes for 2020, 2019 2018 and 20172018 is as follows:
  Investments 
Postretirement Benefit
 
Accumulated Other Comprehensive Earnings (Losses)
   (Amounts are in thousands) 
Balances at December 31, 2016  $29,118
   (5,691)   23,427
 
Unrealized gain on debt and equity securities  175,978



—



175,978
 
Net realized gain on debt and equity securities reclassified to investment income  (66,836)   —
   (66,836) 
Adjustment to postretirement benefit obligation  —
   (6,997)   (6,997) 
Net other comprehensive earnings (losses)  109,142
   (6,997)   102,145
 
Remeasurement of deferred income taxes reclassified to retained earnings

  29,797
   (2,733)   27,064
 
Balances at December 30, 2017  168,057
   (15,421)   152,636
 
Unrealized loss on debt securities  (19,126)   —
   (19,126) 
Net realized loss on debt securities reclassified to investment income  346
   —
   346
 
Adjustment to postretirement benefit obligation  —
   8,692
   8,692
 
Net other comprehensive (losses) earnings  (18,780)   8,692
   (10,088) 
Cumulative effect of net unrealized gain on equity securities reclassified to retained earnings  (198,310)   —
   (198,310) 
Balances at December 29, 2018  (49,033)   (6,729)   (55,762) 
Unrealized gain on debt securities

148,141



—



148,141
 
Net realized gain on debt securities reclassified to investment income  (602)   —
   (602) 
Adjustment to postretirement benefit obligation  —
   (10,488)   (10,488) 
Net other comprehensive earnings (losses)  147,539
   (10,488)   137,051
 
Balances at December 28, 2019  $98,506
   (17,217)   81,289
 
             
In February 2018, an ASU was issued in response to the Tax Act. The ASU permitted companies to reclassify stranded tax effects due to the reduction of the federal statutory income tax rate from accumulated other comprehensive earnings to retained earnings. The Company elected to adopt the ASU early and reclassified $27,064,000 from accumulated other comprehensive earnings to retained earnings in 2017.
Investments
Postretirement
Benefit
Accumulated Other
Comprehensive
Earnings (Losses)
(Amounts are in thousands)
Balances at December 30, 2017$168,057 (15,421)152,636 
Unrealized loss on debt securities(19,126)— (19,126)
Net realized loss on debt securities reclassified to investment income346 — 346 
Adjustment to postretirement benefit obligation— 8,692 8,692 
Net other comprehensive (losses) earnings(18,780)8,692 (10,088)
Cumulative effect of net unrealized gain on equity securities reclassified to retained earnings(198,310)— (198,310)
Balances at December 29, 2018(49,033)(6,729)(55,762)
Unrealized gain on debt securities148,141 — 148,141 
Net realized gain on debt securities reclassified to investment income(602)— (602)
Adjustment to postretirement benefit obligation— (10,488)(10,488)
Net other comprehensive earnings (losses)147,539 (10,488)137,051 
Balances at December 28, 201998,506 (17,217)81,289 
Unrealized gain on debt securities138,989 — 138,989 
Net realized gain on debt securities reclassified to investment income(13,591)— (13,591)
Adjustment to postretirement benefit obligation— (5,736)(5,736)
Net other comprehensive earnings (losses)125,398 (5,736)119,662 
Balances at December 26, 2020$223,904 (22,953)200,951 
In 2018, the Company adopted the ASU requiring equity securities be measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings. Prior to the adoption of the ASU, equity securities were classified as available-for-sale and measured at fair value. Changes in fair value determined to be temporary were reported in other comprehensive earnings net of income taxes. Upon adoption of the ASU, the Company reclassified the cumulative effect of the net unrealized gain on equity securities net of income taxes as of December 31, 2017 of $198,310,000 from accumulated other comprehensive earnings to retained earnings.





38


PUBLIX SUPER MARKETS, INC.
Notes to Consolidated Financial Statements



(9)    Commitments and Contingencies
(a)Letters of Credit
(a)    Letters of Credit
As of December 28, 2019,26, 2020, the Company had outstanding $4,101,000$9,118,000 in trade letters of credit and $5,355,000$3,709,000 in standby letters of credit to support certain purchase obligations.
(b)Litigation
(b)    Litigation
The Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business. The Company believes its recorded reserves are adequate in light of the probable and estimable liabilities. The estimated amount of reasonably possible losses for lawsuits, claims and charges, individually and in the aggregate, is considered to be immaterial. In the opinion of management, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
(10)    Subsequent Event
On January 2, 2020,4, 2021, the Company declared a quarterly dividend on its common stock of $0.30$0.32 per share or $211,800,000,$221,000,000, payable February 3, 20201, 2021 to stockholders of record as of the close of business January 15, 2020.2021.
(11)    Quarterly Information (unaudited)
Following is a summary of the quarterly results of operations for 20192020 and 2018.2019. All quarters have 13 weeks.
FirstSecondThirdFourth


Quarter(Amounts are in thousands, except per share amounts)

First
Second
Third
Fourth 


(Amounts are in thousands, except per share amounts)
20202020
RevenuesRevenues$11,306,951 11,468,563 11,136,409 11,292,036 
Costs and expensesCosts and expenses10,155,340 10,391,518 10,260,086 10,385,042 
Net earningsNet earnings667,335 1,367,055 917,584 1,019,864 
Earnings per shareEarnings per share0.94 1.94 1.31 1.47 
2019







 2019
Revenues
$9,760,110

9,446,916

9,417,933

9,837,794
 Revenues$9,760,110 9,446,916 9,417,933 9,837,794 
Costs and expenses
8,903,535

8,767,478

8,805,903

9,096,588
 Costs and expenses8,903,535 8,767,478 8,805,903 9,096,588 
Net earnings
980,971

661,057

574,026

789,341
 Net earnings980,971 661,057 574,026 789,341 
Earnings per share
1.37

0.92

0.81

1.11
 Earnings per share1.37 0.92 0.81 1.11 
2018







 
Revenues
$9,345,807

8,826,003

8,858,101

9,365,807
 
Costs and expenses
8,511,850

8,183,211

8,274,949

8,681,305
 
Net earnings
680,271

616,172

677,744

406,980
 
Earnings per share
0.93

0.84

0.94

0.57
 
Following is a summary of the quarterly net earnings and earnings per share excluding the impact of net unrealized gains and losses on equity securities for 20192020 and 2018.2019.
FirstSecondThirdFourth
(Amounts are in thousands, except per share amounts)
2020
Net earnings$956,200 978,300 836,200 918,500 
Earnings per share1.35 1.39 1.20 1.32 
2019
Net earnings$741,700 637,000 580,300 656,600 
Earnings per share1.04 0.89 0.81 0.93 
  Quarter
  First Second Third Fourth 
  (Amounts are in thousands, except per share amounts)
2019          
Net earnings  $741,700
 637,000
 580,300
 656,600
 
Earnings per share  1.04
 0.89
 0.81
 0.93
 
2018          
Net earnings  $704,200
 571,000
 582,000
 660,300
 
Earnings per share  0.96
 0.78
 0.80
 0.92
 



39


Schedule II
PUBLIX SUPER MARKETS, INC.
Valuation and Qualifying Accounts
Years ended December 26, 2020, December 28, 2019
and December 29, 2018
and December 30, 2017
Balance at
Beginning of
Year
Additions
Charged to
Income
Deductions
From
Reserves
Balance at
End of
Year
(Amounts are in thousands)
2020
Reserves not deducted from assets:
Self-insurance reserves:
Current$149,082 396,185 384,044 161,223 
Noncurrent226,727 9,131 0 235,858 
$375,809 405,316 384,044 397,081 
2019
Reserves not deducted from assets:
Self-insurance reserves:
Current$145,241 398,336 394,495 149,082 
Noncurrent222,419 4,308 0 226,727 
$367,660 402,644 394,495 375,809 
2018
Reserves not deducted from assets:
Self-insurance reserves:
Current$137,100 403,598 395,457 145,241 
Noncurrent218,598 3,821 0 222,419 
$355,698 407,419 395,457 367,660 


Balance at
Beginning of
Year

Additions
Charged to
Income

Deductions
From
Reserves

Balance at
End of
Year

(Amounts are in thousands)
2019















Reserves not deducted from assets:















Self-insurance reserves:















Current

$145,241



398,336



394,495



149,082

Noncurrent

222,419



4,308



—



226,727




$367,660



402,644



394,495



375,809

2018















Reserves not deducted from assets:















Self-insurance reserves:















Current

$137,100



403,598



395,457



145,241

Noncurrent

218,598



3,821



—



222,419




$355,698



407,419



395,457



367,660

2017















Reserves not deducted from assets:















Self-insurance reserves:















Current

$139,554



342,451



344,905



137,100

Noncurrent

216,125



2,473



—



218,598




$355,679



344,924



344,905



355,698




40


Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
As of the end of the period covered by this Annual Report, on Form 10-K, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer each concluded that the Company’s disclosure controls and procedures arewere effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that such information has been accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, in a manner that allows timely decisions regarding required disclosure.
Internal Control over Financial Reporting
There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation that occurred during the quarter ended December 28, 201926, 2020 that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Management oftheCompany is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act). The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 28, 2019.26, 2020. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on this assessment and these criteria, management believes that the Company’s internal control over financial reporting was effective as of December 28, 2019.26, 2020.
Item 9B. Other Information
None
PART III
Item 10. Directors, Executive Officers and Corporate Governance
Certain information concerning the executive officers of the Company is set forth on the following page. All other information regarding this item is incorporated by reference from the Proxy Statement of the Company (2020(2021 Proxy Statement), which the Company intends to file no later than 120 days after its fiscal year end.
The Company has adopted a Code of Ethical Conduct for Financial Managers that applies to the Company’s principal executive officer, principal financial officer, principal accounting officer or controller and all persons performing similar functions. A copy of the Code of Ethical Conduct for Financial Managers was filed as Exhibit 14 to the Annual Report on Form 10-K for the year ended December 28, 2002.
Item 11. Executive Compensation
Information regarding this item is incorporated by reference from the 20202021 Proxy Statement.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Information regarding this item is incorporated by reference from the 20202021 Proxy Statement.
Item 13. Certain Relationships, Related Transactions and Director Independence
Information regarding this item is incorporated by reference from the 20202021 Proxy Statement.
Item 14. Principal Accounting Fees and Services
Information regarding this item is incorporated by reference from the 20202021 Proxy Statement.



41


NameAgeBusiness Experience During Last Five Years
Served as
Officer of
Company
Since
Executive Officers of the Company
David E. Bornmann63Senior Vice President of the Company.1998
Laurie Z. Douglas57Senior Vice President and Chief Information Officer of the Company to January 2019, Senior Vice President, Chief Information Officer and Chief Digital Officer thereafter.2006
Randall T. Jones, Sr.58President of the Company to May 2016, Chief Executive Officer and President to January 2019, Chief Executive Officer thereafter.2003
Kevin S. Murphy50Vice President of the Company to May 2016, Senior Vice President to January 2019, President thereafter.2014
David P. Phillips61 Chief Financial Officer and Treasurer of the Company and Trustee of the Committee of Trustees of the ESOP to May 2016, Executive Vice President, Chief Financial Officer and Treasurer and Trustee of the Committee of Trustees of the ESOP thereafter.1990
Michael R. Smith61Senior Vice President of the Company.2005
Officers of the Company
Norman J. Badger42District Manager of Retail Operations of the Company to July 2017, Regional Director of Retail Operations to May 2020, Vice President thereafter.2020
Robert S. Balcerak, Jr.60Director of Real Estate Strategy of the Company to April 2017, Vice President thereafter.2017
Randolph L. Barber58Director of Industrial Maintenance of the Company to January 2018, Vice President thereafter.2018
Robert J. Bechtel57Regional Director of Retail Operations of the Company to May 2016, Vice President thereafter.2016
Marcy P. Benton52Director of Retail Associate Relations of the Company to September 2017, Vice President thereafter.2017
Scott E. Brubaker62Vice President of the Company.2005
G. Gino DiGrazia58Vice President of the Company.2002
John L. Goff, Jr.47Regional Director of Retail Operations of the Company to January 2019, Vice President thereafter.2019
Linda S. Hall61Vice President of the Company.2002
Douglas A. Harris, Jr.48General Manager of Manufacturing Operations of the Company to March 2018, Director of Manufacturing Operations to May 2019, Vice President thereafter.2019
Mark R. Irby65Vice President of the Company.1989
Kris Jonczyk51Regional Director of Retail Operations of the Company to January 2020, Vice President thereafter.2020
Linda S. Kane55Vice President and Assistant Secretary of the Company.2000
Erik J. Katenkamp49Vice President of the Company.2013
L. Renee Kelly59Vice President of the Company.2013
Michael E. Lester55Director of Warehousing of the Company to January 2019, Vice President thereafter.2019
Christopher M. Litz57Vice President of the Company.2016
Robert J. McGarrity59Director of Construction of the Company to January 2017, Vice President thereafter.2017
Name Age Business Experience During Last Five Years 
Served as
Officer of
Company
Since
Executive Officers of the Company
David E. Bornmann 62 Senior Vice President of the Company. 1998
Laurie Z. Douglas 56 Senior Vice President and Chief Information Officer of the Company to January 2019, Senior Vice President, Chief Information Officer and Chief Digital Officer thereafter. 2006
Randall T. Jones, Sr. 57 President of the Company to May 2016, Chief Executive Officer and President to January 2019, Chief Executive Officer thereafter. 2003
Kevin S. Murphy 49 Vice President of the Company to May 2016, Senior Vice President to January 2019, President thereafter. 2014
David P. Phillips 60 Chief Financial Officer and Treasurer of the Company to July 2015, Chief Financial Officer, Treasurer and Trustee on the Committee of Trustees of the ESOP to May 2016, Executive Vice President, Chief Financial Officer, Treasurer and Trustee on the Committee of Trustees of the ESOP thereafter. 1990
Michael R. Smith 60 Senior Vice President of the Company. 2005
Officers of the Company
Robert S. Balcerak, Jr. 59 Director of Real Estate Strategy of the Company to April 2017, Vice President thereafter. 2017
Randolph L. Barber 57 Director of Industrial Maintenance of the Company to January 2018, Vice President thereafter. 2018
Robert J. Bechtel 56 Regional Director of Retail Operations of the Company to May 2016, Vice President thereafter. 2016
Marcy P. Benton 51 Director of Retail Associate Relations of the Company to September 2017, Vice President thereafter. 2017
Scott E. Brubaker 61 Vice President of the Company. 2005
G. Gino DiGrazia 57 Vice President of the Company. 2002
Sandra J. Estep 60 Vice President of the Company. 2002
John L. Goff, Jr. 46 Regional Director of Retail Operations of the Company to January 2019, Vice President thereafter. 2019
Linda S. Hall 60 Vice President of the Company. 2002
Douglas A. Harris, Jr. 47 General Manager of Manufacturing Operations of the Company to March 2018, Director of Manufacturing Operations to May 2019, Vice President thereafter. 2019
Mark R. Irby 64 Vice President of the Company. 1989
Kris Jonczyk 50 District Manager of Retail Operations of the Company to January 2016, Regional Director of Retail Operations to January 2020, Vice President thereafter. 2020
Linda S. Kane 54 Vice President and Assistant Secretary of the Company. 2000
Erik J. Katenkamp 48 Vice President of the Company. 2013
L. Renee Kelly 58 Vice President of the Company. 2013
Michael E. Lester 54 Director of Warehousing of the Company to January 2019, Vice President thereafter. 2019
Christopher M. Litz 56 Regional Director of Retail Operations of the Company to January 2016, Vice President thereafter. 2016
Robert J. McGarrity 58 Director of Construction of the Company to January 2017, Vice President thereafter. 2017
Merriann M. Metz 44 Assistant General Counsel of the Company to May 2016, Assistant General Counsel and Assistant Secretary to June 2019,Vice President, General Counsel and Secretary thereafter. 2016



42


Name Age Business Experience During Last Five Years 
Served as
Officer of
Company
Since
NameAgeBusiness Experience During Last Five Years
Served as
Officer of
Company
Since
Officers of the Company (Continued)Officers of the Company (Continued)Officers of the Company (Continued)
Peter M. Mowitt 60 Vice President of the Company. 2013
Merriann M. MetzMerriann M. Metz45Assistant General Counsel of the Company to May 2016, Assistant General Counsel and Assistant Secretary to June 2019,Vice President, General Counsel and Secretary thereafter.2016
Brad E. Oliver 46 Business Development Director of Grocery Retail Support of the Company to March 2017, Business Development Director of DSD Products to January 2018, Vice President thereafter. 2018Brad E. Oliver47Business Development Director of Grocery Retail Support of the Company to March 2017, Business Development Director of DSD Products to January 2018, Vice President thereafter.2018
Samuel J. Pero 57 Regional Director of Retail Operations of the Company to May 2016, Vice President thereafter. 2016Samuel J. Pero58Regional Director of Retail Operations of the Company to May 2016, Vice President thereafter.2016
John F. Provenzano 46 Executive Director of the National Association of State Treasurers to June 2017, Vice President of the Company thereafter. 2017John F. Provenzano47Executive Director of the National Association of State Treasurers to June 2017, Vice President of the Company thereafter.2017
William W. Rayburn, IV 57 Director of Real Estate Assets of the Company to September 2017, Vice President thereafter. 2017William W. Rayburn, IV58Director of Real Estate Assets of the Company to September 2017, Vice President thereafter.2017
Charles B. Roskovich, Jr. 58 Vice President of the Company. 2008Charles B. Roskovich, Jr.59Vice President of the Company.2008
Dain Rusk 46 Vice President and General Manager of Pharmacy of Sears Holdings Corporation to February 2015, Vice President of Pharmacy Business Development of Albertsons Companies to August 2016, Group Vice President of Pharmacy Operations of Albertsons Companies to June 2018, Vice President of the Company thereafter. 2018Dain Rusk47Vice President of Pharmacy Business Development of Albertsons Companies to August 2016, Group Vice President of Pharmacy Operations of Albertsons Companies to June 2018, Vice President of the Company thereafter.2018
Marc H. Salm 59 Vice President of the Company. 2008Marc H. Salm60Vice President of the Company.2008
Steven B. Wellslager 53 Vice President of the Company. 2013Steven B. Wellslager54Vice President of the Company.2013


The terms of all officers expire in May 20202021 or upon the election of their successors.



43


PART IV
Item 15. Exhibits, Financial Statement Schedules
(a)Consolidated Financial Statements and Schedule
The consolidated financial statements and schedule listed in the accompanying Index to Consolidated Financial Statements and Schedule are filed as part of this Annual Report on Form 10-K.Report.
(b)Exhibits
3.1
Composite Restated Articles of Incorporation are incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended April 1, 2006.
3.2
Amended and Restated Bylaws are incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K dated November 14, 2012.
4.1
Description of the Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.1934 is incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K for the year ended December 28, 2019.
10*
Form of Indemnification Agreement between the Company and its directors and officers is incorporated by reference to Exhibit 10 to the Quarterly Report on Form 10-Q for the quarter ended March 31, 2001.
10.2*
Incentive Bonus Plan is incorporated by reference to Exhibit 10.2 to the Annual Report on Form 10-K for the year ended December 31, 2011.
10.5*
Form of Indemnification Agreement between the Company and one of the Trustees of the Company’s 401(k) Plan and each member of the Company’s 401(k) Plan investment committee is incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K dated December 14, 2011.
10.6*
Supplemental Executive Retirement Plan is incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K dated November 14, 2012.
10.7*
Form of Indemnification Agreement between the Company and the Trustees onof the Committee of Trustees of the Company’s ESOP is incorporated by reference to Exhibit 10.7 to the Current Report on Form 8-K dated July 1, 2015.
14
Code of Ethical Conduct for Financial Managers is incorporated by reference to Exhibit 14 to the Annual Report on Form 10-K for the year ended December 28, 2002.
21
Subsidiaries of the Registrant.
23
Consent of Independent Registered Public Accounting Firm.
31.1
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101The following financial information from thethis Annual Report on Form 10-K for the year ended December 28, 2019 is formatted in Extensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Earnings, (iii) Consolidated Statements of Comprehensive Earnings, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Stockholders’ Equity and (vi) Notes to Consolidated Financial Statements.
* Represents management contract or compensatory plan or arrangement.
Item 16. Form 10-K Summary
None



44


SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PUBLIX SUPER MARKETS, INC.
March 2, 20201, 2021By:/s/ Merriann M. Metz
Merriann M. Metz
Secretary
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
/s/ Jessica L. BlumeDirectorMarch 2, 20201, 2021
Jessica L. Blume
/s/ William E. CrenshawChairman of the Board and DirectorMarch 2, 20201, 2021
William E. Crenshaw
/s/ G. Thomas HoughJoseph DiBenedetto, Jr.DirectorMarch 2, 20201, 2021
G. Thomas HoughJoseph DiBenedetto, Jr.
/s/ Howard M. JenkinsDirectorMarch 2, 20201, 2021
Howard M. Jenkins
/s/ Jennifer A. JenkinsDirectorMarch 2, 20201, 2021
Jennifer A. Jenkins
/s/ Randall T. Jones, Sr.Chief Executive Officer and DirectorMarch 2, 20201, 2021
Randall T. Jones, Sr.(Principal Executive Officer)
/s/ Stephen M. KnopikDirectorMarch 2, 20201, 2021
Stephen M. Knopik
/s/ David P. PhillipsExecutive Vice President, Chief Financial Officer, and DirectorTreasurerMarch 2, 20201, 2021
David P. Phillips(Principaland Director (Principal Financial and Accounting Officer)



45