UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
(mark one)
☑
For the annual period ended December 31, 2020
OR
☐
For the transition period from ____________ to ____________
Commission File Number: 001-38695
A.
Full title of the plan and the address of the plan, if different from that of the
issuer named below:
CAL-MAINE FOODS, INC. KSOP
B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
CAL-MAINE FOODS, INC.
1052 HIGHLAND COLONY PKWY, SUITE 200
RIDGELAND, MS 39157
CAL-MAINE FOODS, INC. KSOP
TABLE OF CONTENTS
Page
REPORT OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
2
FINANCIAL STATEMENTS:
Statement of Net Assets Available for Benefits
4
Statement of Changes in Net Assets Available for Benefits
5
Notes to the Financial Statements
6 – 11
SUPPLEMENTAL SCHEDULE:
Form 5500, Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of
December 31 2020
12 – 13
SIGNATURE
14
2
Report of the Independent Registered Public Accounting Firm
To Participants and the Audit Committee of the
Cal-Maine Foods, Inc. KSOP
Jackson, Mississippi
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the Cal -Maine Foods, Inc.
KSOP (the “Plan”) as of December 31, 2020 and 2019, the related statement of changes in net assets available for
benefits for the years then ended, and the related notes (collectively, the “financial statements”). In our opinion,
the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of
December 31, 2020 and 2019, and the changes in net assets available for benefits for the years then ended, in
conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an
opinion on the Plan’s 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 Plan 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 financial statements are free of material
misstatement, whether due to error or fraud. The Plan 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 purposes of expressing an opinion on the effectiveness of the
Plan’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 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 financial statements. Our audits
also included evaluating the accounting principles used and significant estimates made by the Plan’s management,
as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
3
Supplemental Information
The supplemental information in the accompanying schedule of assets (held at end of year) as of December 31,
2020 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial
statements. The supplemental information is presented for the purpose of additional analysis and is not a required
part of the financial statements but included supplemental information required by the Department of Labor’s Rules
and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental information is the responsibility of the Plan’s management. Our audit procedures included
determining whether the supplemental information reconciles to the financial statements or the underlying
accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of
the information presented in the supplemental information. In forming our opinion on the supplemental
information, we evaluated whether the supplemental information, including its form and content, is presented in
conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated,
in all material respects, in relation to the financial statements as a whole.
/s/ Frost, PLLC
We have served as the Plan’s auditor since 2007.
Little Rock, Arkansas
June 25, 2021
CAL-MAINE FOODS, INC. KSOP
Statement of Net Assets Available for Benefits
December 31, 2020 and 2019
4
2020
2019
Assets
Investments, at fair value
$
142,480,157
$
144,088,776
Notes receivable from participants
2,949,841
3,112,662
Net assets available for benefits
$
145,429,998
$
147,201,438
See accompanying notes to the financial statements
CAL-MAINE FOODS, INC. KSOP
Statement of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2020 and 2019
5
2020
2019
Additions
Investment income
Interest and dividend income
Interest
$
16,917
$
43,304
Dividends
1,847,606
2,753,425
Total interest and dividend income
1,864,523
2,796,729
Net change in fair value of investments
(5,053,377)
8,773,199
Total investment income (loss)
(3,188,854)
11,569,928
Interest income on notes receivable from participants
158,806
164,692
Contributions
Employer contributions
3,696,021
3,490,908
Participant contributions
4,430,654
3,799,078
Rollover
166,369
58,596
Total contributions
8,293,044
7,348,582
Total additions
5,262,996
19,083,202
Deductions
Benefits paid to participants
6,885,687
12,773,649
Administrative expenses
148,749
131,103
Total deductions
7,034,436
12,904,752
Net increase (decrease) in net assets available for benefits
(1,771,440)
6,178,450
Net assets available for benefits - beginning of year
147,201,438
141,022,988
Net assets available for benefits - end of year
$
145,429,998
$
147,201,438
See accompanying notes to the final statements
CAL-MAINE FOODS, INC. KSOP
Notes to Financial Statements
December 31, 2020 and 2019
6
Note 1 – Summary of Significant Plan Provisions
The following description of the Cal-Maine Foods, Inc. KSOP (the “Plan”) provides only general information.
Participants should refer to the Plan documents for a more complete description of the Plan’s provisions.
General
The Plan covers substantially all employees of Cal-Maine Foods, Inc. and its subsidiaries (collectively, the “Company”).
It is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
Eligibility
Each employee, except leased employees, collective bargaining employees, contract employees, and employees of
independent contractors shall become eligible to participate in the Plan on the entry date next following or coinciding
with the employee attaining 21 years of age and one year of service during which the employee accrues 1,000 hours or
more of service. Entry dates are January 1, April 1, July 1 and October 1. The Plan includes an auto-enrollment
provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect
not to participate in the Plan. Automatically enrolled participants have their deferral rate set at 3 percent of eligible
compensation and their contributions invested in a designated balanced fund until changed by the participant.
Contributions
Participants may contribute a portion of pretax annual compensation, as defined by the Plan Document. Participants
who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants may
contribute amounts representing distributions from other qualified defined benefit or defined contribution plans
(rollovers). The Company made safe harbor nonelective contributions equal to 3% of compensation during the years
ended December 31, 2020 and 2019. These contributions are initially invested in Cal-Maine Foods, Inc. common stock.
The Company can also make additional discretionary nonelective contributions. The Company did not make an
additional contribution for the years ended December 31, 2020 or 2019. Contributions are subject to certain Internal
Revenue Service (“IRS”) limitations.
Participant accounts
Each participant’s account is credited with the participant contributions and an allocation of (a) the Company’s
contributions, (b) Plan earnings/losses, and is charged with applicable withdrawals and an allocation of administrative
expenses. Allocations are based on the participant’s compensation, contributions or account balances, as defined. The
benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.
A participant, alternate payee of a participant, or beneficiary of a deceased participant has the immediate right to elect
to diversify any publicly traded employer securities held in their Company stock account attributable to participating
Company contributions and any publicly traded securities held in their safe harbor nonelective contribution Company
stock account and reinvest the proceeds in any other investments available under the Plan.
CAL-MAINE FOODS, INC. KSOP
Notes to Financial Statements
December 31, 2020 and 2019
7
Vesting
Participants are vested immediately in their contributions and Company safe harbor contributions plus actual earnings
thereon.
Investment options
Participants may direct the investment of their interest in the Plan into the investment options offered under the Plan.
Participants may change their investment selections at any time via internet or direct phone access to the SunTrust
Benefits Service Center.
Notes receivable from participants
Participants may borrow from their accounts a minimum of $1,000 up to a maximum of the lesser of $50,000 or 50%
of the vested interest in their account balance. Note terms range from one to five years or up to 15 years if for the
purchase of a primary residence. The notes are secured by the balance in the participant’s account and bear interest at
a rate determined by the Plan Administrative Committee equivalent to that charged by major financial institutions in
the community. Principal and interest is paid ratably through weekly or biweekly payroll deductions.
Payment of benefits
Benefits are generally payable on termination, retirement, death or disability. If the participant’s vested balance is
$1,000 or less, it will be automatically distributed. In-service withdrawals are allowed from all participant accounts if
the participant has attained age 59½, at any time from a participant’s rollover account, or once a year from a participant’s
non-safe harbor Company stock account and non-elective deferral Company Stock Account for participants with five
or more years of participation.
Distributions from a participant’s Company stock account are made either in cash or Company stock, as elected by the
participant. Non-company stock accounts are distributed in lump sum or installments.
Voting rights of stock
Each participant shall have the right to direct the committee or trustee as to the manner in which whole and partial
shares of the Company’s stock allocated to their accounts as of the record date are to be voted in each matter brought
before an annual or special shareholders’ meeting.
Termination of the Plan
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject to the provisions of ERISA.
CAL-MAINE FOODS, INC. KSOP
Notes to Financial Statements
December 31, 2020 and 2019
8
Note 2 – Summary of Significant Accounting Policies
Basis of accounting
The accompanying financial statements are prepared under the accrual method of accounting in accordance with
accounting principles generally accepted in the United States of America.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts of assets and
liabilities and changes therein, and disclosure of contingent assets and liabilities. Accordingly, actual results may differ
from those estimates.
Investment valuation and income recognition
Investments are reported at fair value. See Note 3 for a discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date basis. Interest is recorded on the accrual basis. Dividends
are recorded on the ex-dividend date. Net change in fair value includes the Plan’s gains and losses on investments
bought and sold, as well as held during the year.
Notes receivable from participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued, but unpaid, interest.
Delinquent notes receivable from participants are recorded as a distribution based upon the terms of the Plan documents.
Payment of benefits
Benefits are recorded when paid.
Administrative expenses
Certain administrative and recordkeeping fees are paid by the Plan, unless otherwise paid by the Company. Expenses
that are paid by the Company are excluded from these financial statements. Fees related to distributions are charged
directly to the participants' accounts.
Note 3 – Fair Value Measurements
The Plan is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value
hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between
unrelated, knowledgeable, and willing parties able to engage in the transaction. A liability’s fair value is defined as the
CAL-MAINE FOODS, INC. KSOP
Notes to Financial Statements
December 31, 2020 and 2019
9
amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount
that would be paid to settle the liability with the creditor.
•
Level 1
•
Level 2
either directly or indirectly, including:
◦
Quoted prices for similar assets or liabilities in active markets
◦
Quoted prices for identical or similar assets in non-active markets
◦
Inputs other than quoted prices that are observable for the asset or liability
◦
Inputs derived principally from or corroborated by other observable market data
•
Level 3
that are significant to the fair value of the assets or liabilities
The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of
any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of
observable inputs and minimize the use of unobservable inputs.
The following is a description of the valuation methodologies used for assets measured at fair value. There have
been no changes in the methodologies used at December 31, 2020 or 2019:
Interest-bearing cash
: This investment is valued at historical cost, which approximates fair value.
Common stock and mutual funds
: These investments are valued based on quoted market prices at the end
of the Plan year.
Common collective trust funds
: These investments are valued based on the net asset value (“NAV”) of
units held by the Plan at year end, as calculated by the issuer, as a practical expedient to estimate fair value.
NAV is calculated based on the fair value of the underlying assets owned by the fund, minus its liabilities,
divided by the number of units outstanding.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable
value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are
appropriate and consistent with other market participants, the use of different methodologies or assumptions to
determine the fair value of certain financial instruments could result in a different fair value measurement at the
reporting date.
CAL-MAINE FOODS, INC. KSOP
Notes to Financial Statements
December 31, 2020 and 2019
10
The following table sets forth the Plan’s assets at fair value.
December 31, 2020
Level 1
Level 2
Level 3
Total
Assets
Cal-Maine Foods, Inc. common stock
$
76,727,758
$
—
$
—
$
76,727,758
Interest-bearing cash
5,548,940
—
—
5,548,940
Mutual funds
59,012,550
—
—
59,012,550
Total assets measured at fair value
$
141,289,248
$
—
$
—
$
141,289,248
Investments measured at net asset value*
1,190,909
Investment at fair value
$
142,480,157
December 31, 2019
Level 1
Level 2
Level 3
Total
Assets
Cal-Maine Foods, Inc. common stock
$
88,894,015
$
—
$
—
$
88,894,015
Interest-bearing cash
4,795,649
—
—
4,795,649
Mutual funds
49,023,778
—
—
49,023,778
Total assets measured at fair value
$
142,713,442
$
—
$
—
$
142,713,442
Investments measured at net asset value*
1,375,334
Investment at fair value
$
144,088,776
* The investment measured at fair value using the net asset value per share (or its equivalent) practical expedient has not been classified in the fair value
hierarchy. The fair value amount included above is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of
net assets available for benefits.
The following table summarizes investments for which fair value is measured using the NAV per share as a practical
expedient.
Unfunded
Redemption
Redemption
Fair Value
Commitments
Frequency
Notice Period
December 31, 2020
Common collective trust fund
$
1,190,909
N/A
Daily
None
December 31, 2019
Common collective trust fund
$
1,375,334
N/A
Daily
None
Note 4 – Risks and Uncertainties
CAL-MAINE FOODS, INC. KSOP
Notes to Financial Statements
December 31, 2020 and 2019
11
There is a high concentration of the Company's stock owned by the Plan. As of December 31, 2020 and 2019,
approximately 53% and 60% of the Plan's assets were invested in the Company's common stock, respectively.
The Plan invests in various investment securities that are exposed to various risks such as interest rate, market and
credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible
that changes in the values of investment securities will occur in the near term and that such changes could materially
affect the participants' account balances and the amounts reported in the financial statements.
Since early 2020, the coronavirus (“COVID-19”) outbreak, characterized as a pandemic by the World Health
Organization on March 11, 2020, has caused significant disruptions in international and U.S. economies and
markets. As a result of the spread of COVID-19 coronavirus, economic uncertainties have arisen which have
resulted in significant volatility in the investment markets. The duration of these uncertainties and the ultimate
financial effects cannot be reasonably estimated at this time.
Note 5 – Tax Status
The IRS has determined and informed the Company by a letter dated July 12, 2012 that the amended and restated
Plan document is designed in accordance with applicable sections of the IRC. Therefore, no provision for income
taxes has been included in the Plan’s financial statements.
Accounting principles generally accepted in the United States of America require Plan management to evaluate tax
positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that,
more likely than not, would not be sustained upon examination by the IRS. The Plan administrator has analyzed
the tax positions taken by the Plan, and has concluded that, as of December 31, 2020, there are no uncertain positions
taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial
statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for
any tax periods in progress.
Note 6 – Parties-in-Interest Transactions
Party-in-interest transactions include those with fiduciaries or employees of the Plan, any person who provides
services to the Plan, an employer whose employees are covered by the Plan, a person who owns 50 percent or more
of such an employer, or relatives of such persons. The Plan incurs expenses related to general administrative and
record keeping. The Company pays certain administrative expenses and accounting and auditing fees relating to the
Plan and provides certain administrative services at no cost to the plan
The Plan invests in an interest-bearing cash account with the trustee, SunTrust Bank. During the years ended
December 31, 2020 and 2019, the Plan paid SunTrust Bank for its services. These expenses are included in the
Statement of Changes in Net Assets Available for Benefits.
As of December 31, 2020 and 2019, the Plan held 2,043,893 and 2,079,392 shares of common stock of Cal-Maine
Foods, Inc. respectively. In addition, notes receivables from participants also reflect party-in-interest transactions.
CAL-MAINE FOODS, INC. KSOP
PLAN NUMBER 001
EMPLOYER IDENTIFICATION NUMBER 64-0500378
Form 5500, Schedule H, Line 4i
Schedule of Assets (Held at End of Year)
12
Description of investment including
Identity of issue, borrower,
maturity date, rate of interest,
Current
(a)
(b)
lessor or similar party
(c)
collateral, par or maturity value
(e) value
Interest-bearing cash
*
SunTrust Bank
FDIC Insured Account
$
5,548,940
Common collective trust funds
Federated Investors
Capital Preservation Fund R6P
1,190,909
Mutual funds
BlackRock
Inflation Prted Bd BlackRock K
1,538,731
BlackRock
Mid-Cap Growth Equity K
286,044
Vanguard
Small Cap Index Fund - Admiral
895,240
Vanguard
Mid Cap Index Adm
806,293
Vanguard
500 Index Fund - Admiral
9,927,920
Vanguard
Developed Markets Index Admiral
2,997,665
Janus
Triton N
3,492,798
MFS Family of Funds
Massachusetts Investors Gr Stk R6
2,958,551
MFS Family of Funds
Total Return Bond R6
2,901,052
MFS Family of Funds
Total Return R6
2,411,227
Wells Fargo
Spec Md Cp Val R6
2,300,243
T. Rowe Price
Retirement I 2010 Fund I Class
2,062,170
T. Rowe Price
Retirement I 2020 Fund I Class
5,373,214
T. Rowe Price
Retirement I 2030 Fund I Class
7,933,425
T. Rowe Price
Retirement I 2040 Fund I Class
5,263,165
T. Rowe Price
Retirement I 2050 Fund I Class
3,734,716
T. Rowe Price
Retirement I 2060 Fund I Class
298,636
Invesco
Growth and Income R6
3,831,460
Total mutual funds
59,012,550
* Party-in-interest
Column (d) not applicable for participant directed investments.
See Report of the Independent Registered Public Accounting Firm
CAL-MAINE FOODS, INC. KSOP
PLAN NUMBER 001
EMPLOYER IDENTIFICATION NUMBER 64-0500378
Form 5500, Schedule H, Line 4i
Schedule of Assets (Held at End of Year)
13
Description of investment including
Identity of issue, borrower,
maturity date, rate of interest,
Current
(a)
(b)
lessor or similar party
(c)
collateral, par or maturity value
(e) value
Common stock
*
Cal-Maine Foods, Inc.
2,043,893 shares of common stock,
$.01 par value
$
76,727,758
*
Participant loans
Interest rates from 4.25% to 6.50% with
maturity dates from January 2021
through November 2033
2,949,841
Total
$
145,429,998
* Party-in-interest
Column (d) not applicable for participant directed investments.
See Report of the Independent Registered Public Accounting Firm
14
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer
the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
CAL-MAINE FOODS, INC. KSOP
Date:
June 25, 2021
/s/ Jim Golden
Jim Golden
Director of Human Resources