UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017March 26, 2022
Commission File Number 0-00981Number: 000-00981
 image0a18.jpgck0000081061-20220326_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, Florida
33811
(Address of principal executive offices)(Zip code)Code)
(863) 688-1188
(Registrant’s telephone number, including area code: (863) 688-1188code)
Securities registered pursuant to Section 12(b) of the Act: None
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  
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes          No    X  
The number of shares of the Registrant’s common stock outstanding as of OctoberApril 13, 20172022 was 738,568,000.

683,255,000.







PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts are in thousands, except par value)
(Unaudited)
March 26, 2022December 25, 2021
ASSETS
Current assets:
Cash and cash equivalents$679,816 1,131,901 
Short-term investments905,060 883,066 
Trade receivables842,069 903,570 
Inventories2,007,275 2,054,394 
Prepaid expenses80,777 131,655 
Total current assets4,514,997 5,104,586 
Long-term investments12,534,245 12,768,411 
Other noncurrent assets507,210 445,120 
Operating lease right-of-use assets2,897,144 2,950,460 
Property, plant and equipment17,662,221 17,305,064 
Accumulated depreciation(7,204,449)(7,049,294)
Net property, plant and equipment10,457,772 10,255,770 
$30,911,368 31,524,347 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$2,566,290 2,594,976 
Accrued expenses:
Contributions to retirement plans316,817 661,046 
Self-insurance reserves197,403 191,477 
Salaries and wages250,761 215,617 
Other691,034 764,365 
Current portion of long-term debt43,898 39,168 
Current portion of operating lease liabilities355,025 355,066 
Income taxes251,680 — 
Total current liabilities4,672,908 4,821,715 
Deferred income taxes748,763 1,030,677 
Self-insurance reserves251,905 248,913 
Long-term debt82,746 98,185 
Operating lease liabilities2,516,022 2,570,421 
Finance lease liabilities450,874 411,620 
Other noncurrent liabilities170,823 304,951 
Total liabilities8,894,041 9,486,482 
Common stock related to Employee Stock Ownership Plan (ESOP)4,426,439 3,825,128 
Stockholders’ equity:
Common stock of $1 par value. Authorized 1,000,000 shares;
issued 687,577 shares in 2022 and 683,680 shares in 2021
687,577 683,680 
Additional paid-in capital4,561,214 4,291,484 
Retained earnings17,390,611 17,025,406 
Treasury stock at cost, 4,118 shares in 2022(283,338)— 
Accumulated other comprehensive losses(380,552)(5,421)
Common stock related to ESOP(4,426,439)(3,825,128)
Total stockholders’ equity17,549,073 18,170,021 
Noncontrolling interests41,815 42,716 
Total equity22,017,327 22,037,865 
$30,911,368 31,524,347 
See accompanying notes to condensed consolidated financial statements.
1
 September 30, 2017 December 31, 2016
  (Unaudited) 
ASSETS 
Current assets:       
Cash and cash equivalents $670,695
   438,319
 
Short-term investments 1,256,724
   1,591,740
 
Trade receivables 647,332
   715,292
 
Merchandise inventories 1,706,304
   1,722,392
 
Prepaid expenses 48,915
   50,434
 
Total current assets 4,329,970
   4,518,177
 
Long-term investments 5,243,817
   5,146,878
 
Other noncurrent assets 562,896
   434,280
 
Property, plant and equipment 12,825,095
   11,981,632
 
Accumulated depreciation (4,992,734)   (4,694,509) 
Net property, plant and equipment 7,832,361
   7,287,123
 
  $17,969,044
   17,386,458
 
LIABILITIES AND EQUITY 
Current liabilities:       
Accounts payable $1,778,927
   1,609,652
 
Accrued expenses:       
Contributions to retirement plans 444,509
   525,668
 
Self-insurance reserves 142,825
   139,554
 
Salaries and wages 253,615
   127,856
 
Other 398,274
   414,197
 
Current portion of long-term debt 65,417
   113,999
 
Federal and state income taxes 162,361
   12,787
 
Total current liabilities 3,245,928
   2,943,713
 
Deferred tax liabilities 462,537
   396,484
 
Self-insurance reserves 214,546
   216,125
 
Accrued postretirement benefit cost 102,884
   102,540
 
Long-term debt 153,186
   136,585
 
Other noncurrent liabilities 87,428
   93,574
 
Total liabilities 4,266,509
   3,889,021
 
Common stock related to Employee Stock Ownership Plan (ESOP) 3,122,163
   3,068,097
 
Stockholders’ equity:       
Common stock of $1 par value. Authorized 1,000,000 shares;
issued 770,415 shares in 2017 and 763,198 shares in 2016
 770,415
   763,198
 
Additional paid-in capital 3,139,647
   2,849,947
 
Retained earnings 10,842,179
   9,836,696
 
Treasury stock at cost; 30,247 shares in 2017 (1,158,839)   —
 
Accumulated other comprehensive earnings 70,657
   23,427
 
Common stock related to ESOP (3,122,163)   (3,068,097) 
Total stockholders’ equity 10,541,896
   10,405,171
 
Noncontrolling interests 38,476
   24,169
 
Total equity 13,702,535
   13,497,437
 
  $17,969,044
   17,386,458
 



PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts are in thousands, except per share amounts)

(Unaudited)

 Three Months Ended 
September 30, 2017 September 24, 2016 Three Months Ended
 (Unaudited)  March 26, 2022March 27, 2021
Revenues:     Revenues:
Sales $8,520,569
 8,026,548
 Sales$13,240,630 11,665,299 
Other operating income 65,511
 64,101
 Other operating income94,917 94,936 
Total revenues 8,586,080
 8,090,649
 Total revenues13,335,547 11,760,235 
Costs and expenses:     Costs and expenses:
Cost of merchandise sold 6,219,735
 5,902,079
 Cost of merchandise sold9,566,429 8,383,222 
Operating and administrative expenses 1,731,551
 1,652,933
 Operating and administrative expenses2,487,211 2,325,409 
Total costs and expenses 7,951,286
 7,555,012
 Total costs and expenses12,053,640 10,708,631 
Operating profit 634,794
 535,637
 Operating profit1,281,907 1,051,604 
Investment income 38,430
 29,000
 
Investment (loss) incomeInvestment (loss) income(522,976)841,009 
Other nonoperating income, net 17,218
 13,721
 Other nonoperating income, net25,964 14,637 
Earnings before income tax expense 690,442
 578,358
 Earnings before income tax expense784,895 1,907,250 
Income tax expense 215,515
 157,223
 Income tax expense166,869 412,157 
Net earnings $474,927
 421,135
 Net earnings$618,026 1,495,093 
Weighted average shares outstanding 748,347
 768,941
 Weighted average shares outstanding683,165 691,235 
Basic and diluted earnings per share $0.63
 0.55
 
Dividends paid per share $0.23
 0.2225
 
Earnings per shareEarnings per share$0.90 2.16 




CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in thousands)

(Unaudited)
 Three Months Ended
 March 26, 2022March 27, 2021
Net earnings$618,026 1,495,093 
Other comprehensive earnings:
Unrealized loss on debt securities net of income taxes of $(127,659) and $(35,287) in 2022 and 2021, respectively.(374,643)(103,548)
Reclassification adjustment for net realized gain on debt securities net of income taxes of $(282) and $(1,904) in 2022 and 2021, respectively.(826)(5,583)
Adjustment to postretirement benefit obligation net of income taxes of $115 and $470 in 2022 and 2021, respectively.338 1,379 
Comprehensive earnings$242,895 1,387,341 

See accompanying notes to condensed consolidated financial statements.
2
  Three Months Ended 
 September 30, 2017 September 24, 2016
  (Unaudited) 
Net earnings $474,927
   421,135
 
Other comprehensive earnings:       
Unrealized gain on available-for-sale (AFS) securities net of income taxes of $30,884 and $13,390 in 2017 and 2016, respectively 49,043
   21,263
 
Reclassification adjustment for net realized gain on AFS securities net of income taxes of $(3,989) and $(2,346) in 2017 and 2016, respectively (6,334)   (3,725) 
Comprehensive earnings $517,636
   438,673
 








PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts are in thousands, except per share amounts)


  Nine Months Ended 
 September 30, 2017 September 24, 2016
  (Unaudited) 
Revenues:       
Sales $25,620,710
   24,873,954
 
Other operating income 201,143
   197,793
 
Total revenues 25,821,853
   25,071,747
 
Costs and expenses:       
Cost of merchandise sold 18,592,991
   18,054,675
 
Operating and administrative expenses 5,240,753
   4,995,297
 
Total costs and expenses 23,833,744
   23,049,972
 
Operating profit 1,988,109
   2,021,775
 
Investment income 192,906
   82,222
 
Other nonoperating income, net 49,745
   39,737
 
Earnings before income tax expense 2,230,760
   2,143,734
 
Income tax expense 705,490
   662,523
 
Net earnings $1,525,270
   1,481,211
 
Weighted average shares outstanding 759,284
   770,695
 
Basic and diluted earnings per share $2.01
   1.92
 
Dividends paid per share $0.6825
   0.645
 


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in thousands)

  Nine Months Ended 
 September 30, 2017 September 24, 2016
  (Unaudited) 
Net earnings $1,525,270
   1,481,211
 
Other comprehensive earnings:       
Unrealized gain on AFS securities net of income taxes of $70,268 and $34,017 in 2017 and 2016, respectively 111,585
   54,019
 
Reclassification adjustment for net realized gain on AFS securities net of income taxes of $(40,526) and $(5,007) in 2017 and 2016, respectively (64,355)   (7,951) 
Comprehensive earnings $1,572,500
   1,527,279
 


PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts are in thousands)

(Unaudited)

 Three Months Ended
 March 26, 2022March 27, 2021
Cash flows from operating activities:
Cash received from customers$13,329,586 11,770,839 
Cash paid to employees and suppliers(11,800,135)(10,315,725)
Income taxes paid(6,097)(23,464)
Self-insured claims paid(112,215)(100,347)
Dividends and interest received73,830 69,002 
Other operating cash receipts94,173 94,083 
Other operating cash payments(5,889)(6,091)
Net cash provided by operating activities1,573,253 1,488,297 
Cash flows from investing activities:
Payment for capital expenditures(401,982)(345,933)
Proceeds from sale of property, plant and equipment18,126 1,403 
Payment for investments(1,138,916)(627,866)
Proceeds from sale and maturity of investments202,846 265,360 
Net cash used in investing activities(1,319,926)(707,036)
Cash flows from financing activities:
Payment for acquisition of common stock(537,681)(340,092)
Proceeds from sale of common stock100,843 90,882 
Dividends paid(252,821)(220,975)
Repayment of long-term debt(14,978)(3,986)
Other, net(775)(1,514)
Net cash used in financing activities(705,412)(475,685)
Net (decrease) increase in cash and cash equivalents(452,085)305,576 
Cash and cash equivalents at beginning of period1,131,901 673,483 
Cash and cash equivalents at end of period$679,816 979,059 

See accompanying notes to condensed consolidated financial statements.     (Continued)
3
  Nine Months Ended 
 September 30, 2017 September 24, 2016
  (Unaudited) 
Cash flows from operating activities:       
Cash received from customers $25,786,802
   25,024,422
 
Cash paid to employees and suppliers (22,593,366)   (21,995,448) 
Income taxes paid (478,456)   (505,330) 
Self-insured claims paid (270,036)   (242,803) 
Dividends and interest received 185,542
   175,698
 
Other operating cash receipts 197,277
   193,482
 
Other operating cash payments (14,748)   (31,258) 
Net cash provided by operating activities 2,813,015
   2,618,763
 
Cash flows from investing activities:       
Payment for capital expenditures (1,063,152)   (1,110,516) 
Proceeds from sale of property, plant and equipment 4,460
   4,300
 
Payment for investments (2,353,947)   (1,891,611) 
Proceeds from sale and maturity of investments 2,593,592
   1,352,848
 
Net cash used in investing activities (819,047)   (1,644,979) 
Cash flows from financing activities:       
Payment for acquisition of common stock (1,438,628)   (722,641) 
Proceeds from sale of common stock 215,424
   252,803
 
Dividends paid (519,787)   (497,318) 
Repayment of long-term debt (46,019)   (40,831) 
Other, net 27,418
   (13,412) 
Net cash used in financing activities (1,761,592)   (1,021,399) 
Net increase (decrease) in cash and cash equivalents 232,376
   (47,615) 
Cash and cash equivalents at beginning of period 438,319
   352,176
 
Cash and cash equivalents at end of period $670,695
   304,561
 



PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts are in thousands)
(Unaudited)
 Three Months Ended
 March 26, 2022March 27, 2021
Reconciliation of net earnings to net cash provided by
operating activities:
Net earnings$618,026 1,495,093 
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation and amortization202,294 192,241 
Increase in last-in, first-out (LIFO) reserve32,207 11,291 
Retirement contributions paid or payable in common stock112,796 106,140 
Deferred income taxes(154,088)163,276 
(Gain) loss on disposal and impairment of long-lived assets(962)11,485 
Loss (gain) on investments579,730 (792,339)
Net amortization of investments21,212 19,373 
Changes in operating assets and liabilities providing
(requiring) cash:
Trade receivables61,494 86,223 
Inventories14,912 (29,842)
Other assets(1,940)5,169 
Accounts payable and accrued expenses(221,989)(5,754)
Income taxes310,956 220,740 
Other liabilities(1,395)5,201 
Total adjustments955,227 (6,796)
Net cash provided by operating activities$1,573,253 1,488,297 


See accompanying notes to condensed consolidated financial statements.
4
  Nine Months Ended 
 September 30, 2017 September 24, 2016
  (Unaudited) 
Reconciliation of net earnings to net cash
provided by operating activities:
       
Net earnings $1,525,270
   1,481,211
 
Adjustments to reconcile net earnings to net cash
provided by operating activities:
       
Depreciation and amortization 484,307
   458,694
 
Increase in LIFO reserve 20,720
   7,020
 
Retirement contributions paid or payable
in common stock
 280,571
   278,335
 
Deferred income taxes 36,311
   (10,889) 
Loss on disposal and impairment of property,
plant and equipment
 1,991
   2,756
 
Gain on AFS securities (104,881)   (12,958) 
Net amortization of investments 87,982
   105,968
 
Changes in operating assets and liabilities
providing (requiring) cash:
       
Trade receivables 67,952
   90,128
 
Merchandise inventories (4,632)   70,809
 
Prepaid expenses and other noncurrent assets (5,410)   (18,999) 
Accounts payable and accrued expenses 264,196
   42,951
 
Self-insurance reserves 1,692
   930
 
Federal and state income taxes 162,748
   129,501
 
Other noncurrent liabilities (5,802)   (6,694) 
Total adjustments 1,287,745
   1,137,552
 
Net cash provided by operating activities $2,813,015
   2,618,763
 


PUBLIX SUPER MARKETS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts are in thousands, except per share amounts)
(Unaudited)

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
2022
Balances at December 25, 2021$683,680 4,291,484 17,025,406 — (5,421)(3,825,128)18,170,021 
Comprehensive earnings— — 618,026 — (375,131)— 242,895 
Dividends, $0.37 per share— — (252,821)— — — (252,821)
Contribution of 6,208 shares to
retirement plan
3,897 269,764 — 153,466 — — 427,127 
Acquisition of 7,901 shares from
stockholders
— — — (537,681)— — (537,681)
Sale of 1,472 shares to stockholders— (34)— 100,877 — — 100,843 
Change for ESOP related shares— — — — — (601,311)(601,311)
Balances at March 26, 2022$687,577 4,561,214 17,390,611 (283,338)(380,552)(4,426,439)17,549,073 


2021
Balances at December 26, 2020$690,982 4,005,969 14,343,865 — 200,951 (3,484,549)15,757,218 
Comprehensive earnings— — 1,495,093 — (107,752)— 1,387,341 
Dividends, $0.32 per share— — (220,975)— — — (220,975)
Contribution of 6,786 shares to
retirement plan
4,743 285,438 — 118,388 — — 408,569 
Acquisition of 5,731 shares from
stockholders
— — — (340,092)— — (340,092)
Sale of 1,515 shares to stockholders— 5 — 90,877 — — 90,882 
Change for ESOP related shares— — — — — (560,684)(560,684)
Balances at March 27, 2021$695,725 4,291,412 15,617,983 (130,827)93,199 (4,045,233)16,522,259 



See accompanying notes to condensed consolidated financial statements.
5

PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





(1)Basis of Presentation
(1)Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Publix Super Markets, Inc. and subsidiaries (the Company)(Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, the accompanying statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments that are of a normal and recurring nature necessary to present fairly the Company’s financial position and results of operations. Due to the seasonal nature of the Company’s business, the results of operations for the three and nine months ended September 30, 2017March 26, 2022 are not necessarily indicative of the results for the entire 20172022 fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.25, 2021.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(2)Recently Issued Accounting Standards
In June 2016, the(2)Fair Value of 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 with early adoption permitted only for reporting periods beginning after December 15, 2018.  The Company does not expect the adoption of the ASU to have a material effect on the Company’s financial condition or results of operations. The adoption of the ASU will have no effect on the Company’s cash flows.Instruments
In February 2016, the FASB issued an ASU on lease accounting. The ASU requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. While the Company is still evaluating the ASU, the Company expects the adoption of the ASU to have a material effect on the Company’s financial condition due to the recognition of the lease rights and obligations as assets and liabilities on the consolidated balance sheets. The Company does not expect the adoption of the ASU to have a material effect on the Company’s results of operations. The adoption of the ASU will have no effect on the Company’s cash flows.
In January 2016, the FASB issued an ASU requiring companies to measure equity securities at fair value with changes in fair value recognized in net earnings as opposed to other comprehensive earnings. The ASU is effective for reporting periods beginning after December 15, 2017. The adoption of the ASU will have an effect on the Company’s results of operations. The extent of the effect on results of operations will vary with the changes in the fair value of equity securities. The adoption of the ASU will have no effect on the Company’s financial condition or cash flows.
In November 2015, the FASB issued an ASU requiring companies to classify deferred tax assets and liabilities in the noncurrent section of the balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016. The Company retrospectively adopted the ASU during the quarter ended April 1, 2017, and therefore reclassified $77,496,000 from current deferred tax assets to noncurrent deferred tax liabilities as of December 31, 2016 on the condensed consolidated balance sheet.
In May 2014, the FASB issued an ASU on the recognition of revenue from contracts with customers. The ASU requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The ASU is effective for reporting periods beginning after December 15, 2017. The Company does not expect the adoption of the ASU to have a material effect on the Company’s financial condition, results of operations or cash flows.



6

PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



(3)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 available-for-sale (AFS) securitiesinvestments 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. AFS securities that areInvestments included in this category are primarily mutual funds, exchangeequity securities (exchange traded funds and equity securities.funds).
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, government-sponsored agency, state and municipal bonds by using pricing of similar bonds based on coupons, ratings and maturities. AFS securities that areInvestments 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 AFS securitiesinvestments are currently included in this category.
Following is a summary of fair value measurements for AFS securitiesinvestments as of September 30, 2017March 26, 2022 and December 31, 2016:25, 2021:
Fair ValueLevel 1Level 2Level 3
(Amounts are in thousands)
March 26, 2022$13,439,305 2,525,527 10,913,778 —
December 25, 202113,651,477 2,159,365 11,492,112 —

6
  
Fair
Value
 Level 1 Level 2 Level 3
  (Amounts are in thousands)
September 30, 2017 $6,500,541
 2,266,877
 4,233,664
 —
December 31, 2016 6,738,618
 1,286,625
 5,451,993
 —

(4)Investments
Debt and equity securities are classified as AFS and are carried at fair value. The Company evaluates whether AFS securities are other-than-temporarily impaired (OTTI) based on criteria that include the extent to which cost exceeds market value, the duration of the market 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 value of AFS 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 amortized cost and the current fair value. A debt security is also determined to be OTTI if the Company does not expect to recover the amortized cost of the 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 impairment recognized in earnings equals the estimated credit loss as measured by the difference between the present value of expected cash flows and the amortized cost of the debt security. Expected cash flows are discounted using the debt security’s effective interest rate. An equity security is determined to be OTTI if the Company does not expect to recover the cost of the equity security. Declines in the value of AFS securities determined to be temporary are reported net of income taxes as other comprehensive losses and included as a component of stockholders’ equity.
Interest and dividend income, amortization of premiums, accretion of discounts and realized gains and losses on AFS securities are included in investment income. Interest income is accrued as earned. Dividend income is recognized as income on the ex-dividend date of the security. The cost of AFS securities sold is based on the first-in, first-out method.


7


PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





(3)Investments
(a)Debt Securities
Following is a summary of AFSdebt securities as of September 30, 2017March 26, 2022 and December 31, 2016:25, 2021:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
 (Amounts are in thousands)
March 26, 2022
Tax exempt bonds$229,832 151 142 229,841 
Taxable bonds10,153,631 14,721 510,023 9,658,329 
Restricted investments165,194 2,662 1,367 166,489 
$10,548,657 17,534 511,532 10,054,659 
December 25, 2021
Tax exempt bonds$268,899 2,351 — 271,250 
Taxable bonds9,644,692 108,697 108,906 9,644,483 
Restricted investments170,769 7,629 359 178,039 
$10,084,360 118,677 109,265 10,093,772 
  
Amortized
Cost
 
Gross
Unrealized
Gains
Gross
Unrealized
Losses
 
Fair
Value
  (Amounts are in thousands)
September 30, 2017           
Tax exempt bonds $2,054,341
  5,308
  2,841
  2,056,808
Taxable bonds 2,185,377
  3,639
  14,000
  2,175,016
Restricted investments 164,548
  463
  —
  165,011
Equity securities 1,971,825
  134,123
  2,242
  2,103,706
  $6,376,091
  143,533
  19,083
  6,500,541
December 31, 2016           
Tax exempt bonds $3,036,060
  2,211
  24,649
  3,013,622
Taxable bonds 2,469,192
  1,359
  33,903
  2,436,648
Restricted investments 164,548
  —
  463
  164,085
Equity securities 1,021,340
  110,879
  7,956
  1,124,263
  $6,691,140
  114,449
  66,971
  6,738,618

Realized gains on sales of AFS securities totaled $11,179,000 and $109,815,000The Company maintains restricted investments primarily for the threebenefit of the Company’s insurance carrier related to self-insurance reserves. These investments are held as collateral and nine months ended September 30, 2017, respectively. Realized losses on sales of AFS securities totaled $856,000 and $4,934,000not used for the three and nine months ended September 30, 2017, respectively.claim payments.
Realized gains on sales of AFS securities totaled $7,012,000 and $18,896,000 for the three and nine months ended September24, 2016, respectively. Realized losses on sales of AFS securities totaled $941,000 and $5,938,000 for the three and nine months ended September 24, 2016, respectively.
The amortized cost and fair value of AFSdebt securities by expected maturity as of September 30, 2017March 26, 2022 and December 31, 201625, 2021 are as follows:
 March 26, 2022December 25, 2021
 Cost
Fair
Value
Cost
Fair
Value
 (Amounts are in thousands)
Due in one year or less$902,854 905,060 875,740 883,066 
Due after one year through five years6,986,259 6,707,998 6,353,221 6,403,573 
Due after five years through ten years2,656,820 2,438,840 2,852,531 2,804,131 
Due after ten years2,724 2,761 2,868 3,002 
$10,548,657 10,054,659 10,084,360 10,093,772 

  September 30, 2017 December 31, 2016
  
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
  (Amounts are in thousands)
Due in one year or less $1,256,912
 1,256,724
 1,592,144
 1,591,740
Due after one year through five years 2,583,254
 2,577,163
 3,218,371
 3,187,739
Due after five years through ten years 389,425
 387,386
 680,641
 656,162
Due after ten years 10,127
 10,551
 14,096
 14,629
  4,239,718
 4,231,824
 5,505,252
 5,450,270
Restricted investments 164,548
 165,011
 164,548
 164,085
Equity securities 1,971,825
 2,103,706
 1,021,340
 1,124,263
  $6,376,091
 6,500,541
 6,691,140
 6,738,618
7


8


PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





The Company had no debt securities with credit losses as of March 26, 2022 and December 25, 2021.
Following is a summary of temporarily impaired AFSdebt securities with other unrealized losses by the time period impaired as of September 30, 2017March 26, 2022 and December 31, 2016:25, 2021:
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
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 (Amounts are in thousands)
 (Amounts are in thousands) 
September 30, 2017             
Tax exempt bonds $510,790
 1,699
 232,906
 1,142
 743,696
 2,841
 
Taxable bonds 964,755
 5,332
 643,454
 8,668
 1,608,209
 14,000
 
Equity securities 62,700
 1,239
 3,526
 1,003
 66,226
 2,242
 
 $1,538,245
 8,270
 879,886
 10,813
 2,418,131
 19,083
 
December 31, 2016             
March 26, 2022March 26, 2022
Tax exempt bonds $2,360,143
 24,416
 6,099
 233
 2,366,242
 24,649
 Tax exempt bonds$89,564 142 — — 89,564 142 
Taxable bonds 1,921,367
 33,354
 51,769
 549
 1,973,136
 33,903
 Taxable bonds5,959,756 331,921 1,867,847 178,102 7,827,603 510,023 
Restricted investments 164,085
 463
 —
 —
 164,085
 463
 Restricted investments7,037 575 8,988 792 16,025 1,367 
Equity securities 61,625
 3,924
 38,141
 4,032
 99,766
 7,956
 
 $4,507,220
 62,157
 96,009
 4,814
 4,603,229
 66,971
 $6,056,357 332,638 1,876,835 178,894 7,933,192 511,532 
December 25, 2021December 25, 2021
Taxable bondsTaxable bonds$4,225,323 72,862 1,131,942 36,044 5,357,265 108,906 
Restricted investmentsRestricted investments17,115 359 — — 17,115 359 
$4,242,438 73,221 1,131,942 36,044 5,374,380 109,265 
There are 282 AFS370 debt securities contributing to the total unrealized losslosses of $19,083,000$511,532,000 as of September 30, 2017.March 26, 2022. Unrealized losses related to debt securities are primarily due to increases in interest rate volatility impactingrates that occurred since the market value of certain bonds.debt securities were purchased. The Company continues to receive scheduled principal and interest payments on these debt securities. Unrealized
(b)Equity Securities
Equity securities are measured at fair value with net unrealized gains and losses related tofrom changes in the fair value recognized in earnings (fair value adjustment). The fair value of equity securities are primarily due to temporarywas $3,384,646,000 and $3,557,705,000 as of March 26, 2022 and December 25, 2021, respectively.
(c)Investment Income (Loss)
Net realized gain on investments represents the difference between the cost and the proceeds from the sale of debt and equity market fluctuations that are expected to recover.securities. The net realized gain on 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 (loss) income for the three months ended March 26, 2022 and March 27, 2021:

 Three Months Ended
March 26, 2022March 27, 2021
 (Amounts are in thousands)
Interest and dividend income$56,754 48,670 
Net realized gain on investments1,108 7,489 
57,862 56,159 
Fair value adjustment, due to net unrealized (loss) gain, on equity securities held at end of period(580,838)784,850 
$(522,976)841,009 
(5)Consolidation of Joint Ventures and Long-Term Debt

8

PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(4)Consolidation of Joint Ventures and Long-Term Debt
From time to time, the Company enters into Joint Venturesa joint venture (JV), in the legal form of a limited liability companies,company, with certain real estate developers to partner in the development of a shopping centerscenter 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.
As of September 30, 2017,March 26, 2022, the carrying amounts of the assets and liabilities of the consolidated JVs were $143,312,000$183,056,000 and $66,018,000,$75,362,000, respectively. As of December 31, 2016,25, 2021, the carrying amounts of the assets and liabilities of the consolidated JVs were $102,254,000$194,493,000 and $53,278,000,$76,027,000, 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 20172022 and 20162021 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.


9

PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



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. No loans were assumed during the ninethree months ended September 30, 2017. The Company assumed loans totaling $63,971,000 during the nine months ended September 24, 2016.March 26, 2022 or March 27, 2021. Maturities of JV loans range from June 2020January 2023 through April 2027 and have variable interest rates based on a LIBORLondon Interbank Offered Rate (LIBOR) index or Secured Overnight Financing Rate (SOFR) index plus 175205 to 250 basis points. Maturities of assumed shopping center loans range from October 2017November 2022 through January 2027 and have fixed interest rates ranging from 3.7% to 7.5%.
(5)Retirement Plan
(6)Retirement Plan
The Company has a trusteed, noncontributory Employee Stock Ownership Plan (ESOP) for the benefit of eligible employees. 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 $348,486,000$894,207,000 and $425,514,000$608,089,000 as of September 30, 2017March 26, 2022 and December 31, 2016,25, 2021, respectively. The cost of the shares held by the ESOP totaled $2,773,677,000$3,532,232,000 and $2,642,583,000$3,217,039,000 as of September 30, 2017March 26, 2022 and December 31, 2016,25, 2021, 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 condensed consolidated balance sheets and totaled $3,122,163,000$4,426,439,000 and $3,068,097,000$3,825,128,000 as of September 30, 2017March 26, 2022 and December 31, 2016,25, 2021, respectively. The fair value of the shares held by the ESOP totaled $7,173,372,000$11,172,710,000 and $8,356,659,000$10,855,152,000 as of September 30, 2017March 26, 2022 and December 31, 2016,25, 2021, respectively.

(7)Accumulated Other Comprehensive Earnings
A reconciliation of the changes in accumulated other comprehensive earnings net of income taxes for the three months ended September 30, 2017 and September 24, 2016 is as follows:

  
AFS Securities
 
Postretirement Benefits
 
Accumulated Other Comprehensive Earnings
   (Amounts are in thousands) 
2017            
Balances at July 1, 2017  $33,639
   (5,691)   27,948
 
Unrealized gain on AFS securities  49,043
   —
   49,043
 
Net realized gain on AFS securities reclassified to investment income  (6,334)   —
   (6,334) 
Net other comprehensive earnings  42,709
   —
   42,709
 
Balances at September 30, 2017  $76,348
   (5,691)   70,657
 
             
2016    
Balances at June 25, 2016  $59,825
   (5,027)   54,798
 
Unrealized gain on AFS securities  21,263
   —
   21,263
 
Net realized gain on AFS securities reclassified to investment income  (3,725)   —
   (3,725) 
Net other comprehensive earnings  17,538
   —
   17,538
 
Balances at September 24, 2016  $77,363
   (5,027)   72,336
 
             
9



10


PUBLIX SUPER MARKETS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





(6)Accumulated Other Comprehensive Earnings (Losses)
A reconciliation of the changes in accumulated other comprehensive earnings (losses) net of income taxes for the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016March 27, 2021 is as follows:
Investments
Postretirement Benefit
Accumulated Other Comprehensive Earnings (Losses)
(Amounts are in thousands)
2022
Balances at December 25, 2021$7,054 (12,475)(5,421)
Unrealized loss on debt securities(374,643)— (374,643)
Net realized gain on debt securities reclassified to investment income(826)— (826)
Adjustment to postretirement benefit obligation— 338 338 
Net other comprehensive (losses) earnings(375,469)338 (375,131)
Balances at March 26, 2022$(368,415)(12,137)(380,552)
2021
Balances at December 26, 2020$223,904 (22,953)200,951 
Unrealized loss on debt securities(103,548)— (103,548)
Net realized gain on debt securities reclassified to investment income(5,583)— (5,583)
Adjustment to postretirement benefit obligation— 1,379 1,379 
Net other comprehensive (losses) earnings(109,131)1,379 (107,752)
Balances at March 27, 2021$114,773 (21,574)93,199 

(7)Subsequent Event
  
AFS Securities
 
Postretirement Benefits
 
Accumulated Other Comprehensive Earnings
   (Amounts are in thousands) 
2017            
Balances at December 31, 2016  $29,118
   (5,691)   23,427
 
Unrealized gain on AFS securities  111,585
   —
   111,585
 
Net realized gain on AFS securities reclassified to investment income  (64,355)   —
   (64,355) 
Net other comprehensive earnings  47,230
   —
   47,230
 
Balances at September 30, 2017  $76,348
   (5,691)   70,657
 
             
2016    
Balances at December 26, 2015  $31,295
   (5,027)   26,268
 
Unrealized gain on AFS securities  54,019
   —
   54,019
 
Net realized gain on AFS securities reclassified to investment income  (7,951)   —
   (7,951) 
Net other comprehensive earnings  46,068
   —
   46,068
 
Balances at September 24, 2016  $77,363
   (5,027)   72,336
 
             
(8)Subsequent Event
On October 2, 2017,April 1, 2022, the Company filed Articles of Amendment to its Restated Articles of Incorporation in order to effect a 5-for-1 stock split of the Company’s common stock, par value $1.00 per share (Common Stock), and an increase in the number of authorized shares of Common Stock from 1,000,000,000 to 4,000,000,000 shares, effective as of the close of business April 14, 2022. In accordance with Section 607.10025 of the Florida Business Corporation Act, the Articles of Amendment were approved by the Company’s Board of Directors on April 1, 2022 without the need for stockholder approval.
On April 1, 2022, the Company declared a post-splitquarterly dividend on its common stock of $0.23$0.09 per share or $169,900,000,$307,400,000, payable November 1, 2017May 2, 2022 to stockholders of record as of the close of business October 13, 2017.April 15, 2022. The post-split quarterly dividend of $0.09 per share is equivalent to a pre-split quarterly dividend of $0.45 per share.






1110



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The objective of this section is to provide a summary of material information relevant to enhancing the stockholders’ understanding of the financial condition and results of operations of the Company. Following is an analysis of the financial condition and results of operations of the Company for the three months ended March 26, 2022 as compared with the three months ended March 27, 2021. This information should be read in conjunction with the Company’s condensed consolidated financial statements and accompanying notes and the Company’s Annual Report on Form 10-K for the year ended December 25, 2021.
Overview
The Company is engaged in the retail food industry and as of September 30, 2017March 26, 2022 operated 1,1541,296 supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. The Company plans to expand its retail operations into Kentucky in 2023. The Company has no other significant lines of business or industry segments. For the ninethree months ended September 30, 2017, 27March 26, 2022, five supermarkets were opened (including fourtwo replacement supermarkets) and 10012 supermarkets were remodeled. NineTwo supermarkets were closed during the period. The four replacement supermarkets that opened during the ninethree months ended September 30, 2017March 26, 2022 replaced two supermarkets thatone supermarket closed duringin the same period and two supermarkets thatone supermarket closed in 2016. The seven remaining supermarketsa previous period. One supermarket closed in 20172022 will be replaced on site in a subsequent periods.period. 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.
Hurricane Impact
In September 2017, the Company was impacted by Hurricane Irma. Temporary supermarket closings occurred primarily in Florida due to weather conditions and evacuations of certain areas. Almost all affected supermarkets were reopened within two days following the passing of Hurricane Irma, operating on generator power if normal power had not been restored. All supermarkets were reopened within six days except one supermarket in Key West, Florida, which reopened the following week.
The Company estimates that its sales increased $250 million due to the impact of Hurricane Irma. The Company incurred additional costs for inventory losses due to power outages, fuel for generators and facility repairs and clean-up totaling an estimated $25 million. The Company is self-insured for these losses. The Company estimates the profit on the incremental sales resulting from customers stocking up and replenishing, as well as sales of hurricane supplies, more than offset the losses incurred.
Results of Operations
Sales
Sales for the three months ended September 30, 2017March 26, 2022 were $8.5$13.2 billion as compared with $8.0$11.7 billion for the three months ended September 24, 2016,March 27, 2021, an increase of $494.0$1,575.3 million or 6.2%13.5%. The increase in sales for the three months ended September 30, 2017March 26, 2022 as compared with the three months ended September 24, 2016March 27, 2021 was primarily due to new supermarket sales and the impact of Hurricane Irma. The Company estimates that its sales increased $250million or 3.1% due to the hurricane. Comparablean 11.7% increase in comparable store sales (supermarkets open for the same weeks in both periods, including replacement supermarkets). Comparable store sales for the three months ended March 26, 2022 increased 4.3% primarily due to the hurricane.increased product costs. 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 the nine months ended September 30, 2017 were $25.6 billion as compared with $24.9 billion for the nine months ended September 24, 2016, an increase of $746.8 million or 3.0%. The increase in sales for the nine months ended September 30, 2017 as compared with the nine months ended September 24, 2016 was primarily due to new supermarket sales and the impact of Hurricane Irma. The Company estimates that its sales increased $250million or 1.0% due to the hurricane. Comparable store sales increased 1.2% primarily due to the hurricane.
Gross profit
Gross profit (sales less cost of merchandise sold) as a percentage of sales was 27.0%27.7% and 26.5%28.1% for the three months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The increasedecrease in gross profit as a percentage of sales for the three months ended September 30, 2017March 26, 2022 as compared with the three months ended September 24, 2016March 27, 2021 was primarily due to volume driven efficiencies relatedproduct cost increases which were not passed on to Hurricane Irma. Gross profit as a percentage of sales was 27.4% forcustomers and increases in the nine months ended September 30, 2017LIFO reserve and September 24, 2016.distribution costs.
Operating and administrative expenses
Operating and administrative expenses as a percentage of sales were 20.3%18.8% and 20.6%19.9% for the three months ended September30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The decrease in operating and administrative expenses as a percentage of sales for the three months ended September 30, 2017March 26, 2022 as compared with the three months ended September 24, 2016March 27, 2021 was primarily due to volume driven efficiencies related to Hurricane Irma. Operating and administrative expensesdecreases in payroll costs as a percentage of sales were 20.5% and 20.1%facility costs as a percentage of sales.
Operating profit
Operating profit as a percentage of sales was 9.7% and 9.0% for the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The increase in operating profit as a percentage of sales for the three months ended March 26, 2022 as compared with the three months ended March 27, 2021 was primarily due to the decrease in operating and administrative expenses as a percentage of sales, forpartially offset by the nine months ended September 30, 2017 as compared with the nine months ended September 24, 2016 was primarily due to increasesdecrease in payroll and facility costsgross profit as a percentage of sales.


12


Investment income
Investment income was $38.4 million and $29.0 million(loss)
Investment loss for the three months ended September 30, 2017 and September 24, 2016, respectively. The increase inMarch 26, 2022 was $523.0 million as compared with investment income for the three months ended September 30, 2017 as compared withMarch 27, 2021 of $841.0 million. Excluding the impact of net unrealized losses on equity securities in 2022 and net unrealized gains on equity securities in 2021, investment income would have been $57.9 million and $56.2 million for the three months ended September 24, 2016 was primarily due to increases in dividend incomeMarch 26, 2022 and realized gains on the sale of equity securities. Investment income was $192.9 million and $82.2 million for the nine months ended September 30, 2017 and September 24, 2016,March 27, 2021, respectively. The increase in investment income for the nine months ended September 30, 2017 as compared with the nine months ended September 24, 2016 was primarily due to an increase in realized gains on the sale of equity securities.


11

Income tax expense
The effective income tax rate was 31.2%21.3% and 27.2%21.6% for the three months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The increasedecrease in the effective income tax rate for the three months ended September 30, 2017March 26, 2022 as compared with the three months ended September 24, 2016March 27, 2021 was primarily due to a decrease in investment related tax credits and the decreasedincreased impact of the permanent deductions dueand credits relative to the increase in earnings before income tax expense. The effectiveexpense, partially offset by an increase in state income tax rate was 31.6% and 30.9% for the nine months ended September 30, 2017 and September 24, 2016, respectively. The increase in the effective income tax rate for the nine months ended September 30, 2017 as compared with the nine months ended September 24, 2016 was primarily due to a decrease in investment related tax credits.rates.
Net earnings
Net earnings were $474.9$618.0 million or $0.63$0.90 per share and $421.1$1,495.1 million or $0.55$2.16 per share for the three months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. Net earnings as a percentage of sales were 5.6%4.7% and 5.2%12.8% for the three months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. TheExcluding the impact of net unrealized losses on equity securities in 2022 and net unrealized gains on equity securities in 2021, net earnings would have been $1,051.2 million or $1.54 per share and 7.9% as a percentage of sales for the three months ended March 26, 2022 and $909.8 million or $1.32 per share and 7.8% as a percentage of sales for the three months ended March 27, 2021. Excluding the impact of net unrealized losses on equity securities in 2022 and net unrealized gains on equity securities in 2021, the increase in net earnings as a percentage of sales for the three months ended September 30, 2017March 26, 2022 as compared with the three months ended September 24, 2016March 27, 2021 was primarily due to the increase in grossoperating profit as a percentage of salessales.
Non-GAAP Financial Measures
In addition to reporting financial results for the three months ended March 26, 2022 and March 27, 2021 in accordance with GAAP, the decrease in operatingCompany presents net earnings and administrative expenses as a percentage of sales.
Net earnings were $1,525.3 million or $2.01 per share excluding the impact of equity securities being measured at fair value with net unrealized gains and $1,481.2 millionlosses from changes in the fair value recognized in earnings (fair value adjustment). These measures are not in accordance with, or $1.92 per sharean 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 the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016, respectively. Net earnings as a percentage of sales was 6.0% forMarch 27, 2021:
Three Months Ended
March 26, 2022March 27, 2021
(Amounts are in millions, except per share amounts)
Net earnings$618.0 1,495.1 
Fair value adjustment, due to net unrealized loss (gain), on equity securities held at end of period580.8 (784.9)
Income tax (benefit) expense (1)
(147.6)199.6 
Net earnings excluding impact of fair value adjustment$1,051.2 909.8 
Weighted average shares outstanding683.2 691.2 
Earnings per share excluding impact of fair value adjustment$1.54 1.32 
(1)Income tax (benefit) expense is based on the nine months ended September 30, 2017Company’s combined federal and September 24, 2016.state statutory income tax rates.

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Liquidity and Capital Resources
Cash and cash equivalents, short-term investments and long-term investments totaled $7,171.2$14,119.1 million as of September 30, 2017,March 26, 2022, as compared with $7,176.9$14,783.4 million as ofDecember 31, 201625, 2021 and $7,355.1$13,265.7 million as of September 24, 2016.March 27, 2021. The decreaseincrease from the thirdfirst quarter of 20162021 to the thirdfirst quarter of 20172022 was primarily due to the increase in common stock repurchases, partially offset by the increase in cash generated by operations, including the extension of the September 15, 2017 federal income tax payment until January 31, 2018 due to Hurricane Irma.sales.
Net cash provided by operating activities
Net cash provided by operating activities was $2,813.0$1,573.3 million and $2,618.8$1,488.3 million for the ninethree months ended September30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The increase in net cash provided by operating activities for the ninethree months ended September 30, 2017March 26, 2022 as compared with the ninethree months ended September 24, 2016March 27, 2021 was primarily due to the net effectincrease in sales, partially offset by the payment in 2022 of timing differences related to operating assets and liabilities, including the extension of the federal incomepayroll taxes that were deferred under various coronavirus tax payment due to Hurricane Irma.relief provisions in 2020.
Net cash used in investing activities
Net cash used in investing activities was $819.0$1,319.9 million and $1,645.0$707.0 million for the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The primary use of net cash in investing activities for the ninethree months ended September30, 2017March 26, 2022 was funding capital expenditures partially offset byand net investment activities.increases in investments. Capital expenditures for the ninethree months ended September 30, 2017March 26, 2022 totaled $1,063.2$402.0 million. These expenditures were incurred in connection with the opening of 27 newfive supermarkets (including fourtwo replacement supermarkets) and the remodeling 100of 12 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress, construction or expansion of warehouses and new or enhanced information technology hardware and applications and the acquisition of shopping centers with the Company as the anchor tenant.software. For the ninethree months ended September 30, 2017,March 26, 2022, the payment for investments, net of the proceeds from the sale and maturity of investments, net of the payment for such investments, was $239.6$936.1 million.


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Net cash used in financing activities
Net cash used in financing activities was $1,761.6$705.4 million and $1,021.4$475.7 million for the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The primary use of net cash in financing activities was funding net common stock repurchases and dividend payments. Net common stock repurchases totaled $1,223.2$436.8 million and $469.8$249.2 million for the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively. The Company currently repurchases common stock at the stockholders’ request in accordance with the terms of the Company’s Employee Stock Purchase Plan (ESPP), Non-Employee Directors Stock Purchase Plan (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 $0.6825$252.8 million or $0.37 per share and $221.0 million or $519.8 million and $0.645$0.32 per share or $497.3 million during the ninethree months ended September 30, 2017March 26, 2022 and September 24, 2016,March 27, 2021, respectively.
Capital expenditures projection
Capital expenditures for the remainder of 20172022 are expected to be approximately $400$1,600 million, primarily consisting ofrelated to new supermarkets, remodeling existing supermarkets, construction or expansion of warehouses, new or enhanced information technology hardware and applicationssoftware 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 2017, the2022, 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.



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Forward-Looking Statements
From time to time, certainCertain information provided by the Company including written or oral statements made by its representatives,in this Quarterly Report on Form 10-Q (Quarterly Report) may containbe forward-looking information as defined in Section 21E of the Securities Exchange Act of 1934.1934 (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. When used, the words “plan,” “estimate,” “project,” “intend,” “expect,” “believe”“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 an economic downturn associated with the coronavirus pandemic or international conflict; changes in consumer spending; changes in population, employment and job growth in the Company’s principal markets; impacts of a public health crisis, geopolitical conditions 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.
Item 3. 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. There have been no material changes in the market risk factors from those disclosed in the Company’s Form 10-K for the year ended December 31, 2016.25, 2021.
Item 4. Controls and Procedures
As of the end of the period covered by this Quarterly Report, on Form 10-Q, 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. 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 September 30, 2017March 26, 2022 that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.




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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
As reported in the Company’s Form 10-K for the year ended December 31, 2016,25, 2021, 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 1A. Risk Factors
There have been no material changes in the risk factors from those disclosed in the Company’s Form 10-K for the year ended December 31, 2016.25, 2021.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
Shares of common stock repurchased by the Company during the three months ended September 30, 2017March 26, 2022 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)
December 26, 2021
through
January 29, 2022
1,554 $66.40 N/AN/A
January 30, 2022
through
February 26, 2022
922 66.40 N/AN/A
February 27, 2022
through
March 26, 2022
5,425 68.80 N/AN/A
 
Total
7,901 $68.05 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)
July 2, 2017
through
August 5, 2017
  12,975
   $38.53
  N/A N/A
August 6, 2017
through
September 2, 2017
  7,114
   36.05
  N/A N/A
September 3, 2017
through
September 30, 2017
  2,440
   36.05
  N/A N/A
 
 
Total
  22,529
   $37.48
  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 September 30, 2017March 26, 2022 required to be disclosed in the last two columns of the table.
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Mine Safety Disclosures
Not Applicable


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Item 5. Other Information
Not Applicable

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Item 6. Exhibits
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.
101
The following financial information from the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 is formatted in Extensible Business Reporting Language: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Earnings, (iii) Condensed Consolidated Statements of Comprehensive Earnings, (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements.


101    The following financial information from this Quarterly Report is formatted in Extensible Business Reporting Language: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Earnings, (iii) Condensed Consolidated Statements of Comprehensive Earnings, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Stockholders’ Equity and (vi) Notes to Condensed Consolidated Financial Statements.
104         Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrantRegistrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PUBLIX SUPER MARKETS, INC.
Date:November 1, 2017May 2, 2022/s/  John A. Attaway, Jr.Merriann M. Metz
John A. Attaway, Jr.,Merriann M. Metz, Secretary
Date:November 1, 2017May 2, 2022/s/  David P. Phillips
David P. Phillips, Executive Vice President, and Chief Financial Officer and Treasurer (Principal Financial and
Accounting Officer)





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