x |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended February 24, 2001 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from
to
|
Delaware |
41-0617000 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
11840 Valley View Road Eden
Prairie, Minnesota (Address of principal executive offices) |
55344 (Zip
Code) |
Title of each class |
Name of each exchange on which registered | |
Common Stock, par value $1.00 per share |
New York Stock Exchange | |
Preferred Share Purchase Rights |
New York Stock Exchange |
|
the impact of changing economic or business conditions; |
|
competitive practices in the retail and food distribution industries; |
|
the nature and extent of the consolidation of the retail food and food distribution industries; |
|
the ability of the Company to attract and retain customers for its food distribution operations, and control food distribution costs;
|
|
the ability of the Company to grow through acquisition and assimilate the acquired entities; |
|
the ability of the Company to continue to recruit, train and retain quality franchise, licensed and corporate retail store operators;
|
|
the availability of favorable credit and trade terms; |
|
the ability of the Company to execute and realize the perceived benefits of restructuring activities resulting from its asset review, such as the
rationalization of its distribution network and retail locations; |
|
the impact of food safety issues that may arise from time to time as a result of the actions of other parties, including but not limited to those affecting the
quality of meat products; |
|
food price changes; and |
|
other risk factors inherent in the retail food and food distribution businesses. |
Retail Format |
Banners |
Location and Number of
Corporate Stores |
Square Footage Owned (Approximate) |
Square Footage Leased (Approximate) | ||||
PriceSuperstore |
Cub Foods1 |
Colorado (10), Illinois (29), Indiana (11), Iowa (2), Minnesota (24), Wisconsin
(10) |
3,161,000 |
2,858,000 | ||||
Shop `n Save |
Illinois (14), Missouri (19), Pennsylvania (22) |
467,000 |
2,372,000 | |||||
ShoppersFood Warehouse |
Maryland (22), Virginia (18) |
-0- |
1,987,000 | |||||
Metro |
Delaware (1), Maryland (18) |
-0- |
1,025,000 | |||||
biggs |
Colorado (1), Indiana (1), Kentucky (1), Ohio (7) |
158,000 |
1,244,000 | |||||
LimitedAssortment |
Save-A-Lot2 |
Arkansas (6), California (17), Connecticut (3), Delaware (5), Florida (55), Georgia
(3), Illinois (3), Louisiana (1), Maryland (2), Massachusetts (8), Mississippi (5), Missouri (8), New
Jersey (6), Ohio (22), Pennsylvania (21), Rhode Island (3), Tennessee (4), Vermont (1), Virginia (5) |
179,000 |
2,419,000 | ||||
Supermarkets |
Farm Fresh |
Virginia (36) |
30,000 |
1,750,000 | ||||
Laneco |
New Jersey (4), Pennsylvania (12) |
144,000 |
853,000 | |||||
Hornbachers |
Minnesota (1), North Dakota (4) |
95,000 |
113,000 | |||||
Scotts Food |
Indiana (18) |
178,000 |
772,000 |
1 |
Excludes 55 Cub Foods stores that are operated by independent retailers. |
2 |
Excludes 727 Save-A-Lot stores that are licensed by independent retailers. |
Region or Division |
Location and Number of Distribution Centers |
Square Footage Owned (Approximate) |
Square Footage Leased (Approximate) | |||
CentralRegion |
Indiana (1), Kentucky (1)*, Ohio (1) Pennsylvania (3), West Virginia (1) |
3,594,000 |
438,000 | |||
MidwestRegion |
Illinois (2), Missouri (1), Wisconsin (2) |
2,833,000 |
1,120,000 | |||
NorthernRegion |
Iowa (1), Minnesota (1), North Dakota (2) |
3,532,000 |
0 | |||
New England Region |
Connecticut (1)*, Maine (1), Massachusetts (1), New Hampshire (1)*, Rhode Island (1) |
1,040,000 |
650,000 | |||
NorthwestRegion |
Colorado (1), Montana (2), Washington (2) |
2,603,000 |
124,000 | |||
Southeast Region |
Alabama (2), Florida (1), Georgia (1)*, Louisiana (1)*, Mississippi (1) |
1,975,000 |
1,290,000 | |||
Eastern Region |
Maryland (1)*, Pennsylvania (1), Virginia (2) |
3,406,000 |
422,000 | |||
Save-A-Lot |
California (1), Florida (1), Georgia (1), Kentucky (1), Maryland (1), Michigan (1), Missouri (2), New York (1), Ohio (1), Tennessee (1), Texas
(1) |
1,303,000 |
1,338,000 |
* |
The Company recently announced plans to close these distribution centers and its Great Falls, Montana facility in fiscal 2002. |
Name |
Age |
Present Position |
Year Elected to Present Position |
Other Positions Recently Held
With the Company | ||||
Michael W. Wright |
62 |
Director, Chairman of the Board and Chief Executive Officer(1) |
1982 |
President, 1982-2000 | ||||
Jeffrey Noddle |
54 |
President and Chief Operating Officer(1) |
2000 |
Executive Vice President; and President and Chief Operating OfficerWholesale Food Companies 1995- 2000 | ||||
David L. Boehnen |
54 |
Executive Vice President |
1997 |
Senior Vice President, Law and External Relations, 1991-1997 | ||||
Michael L. Jackson |
47 |
Executive Vice President; President and COO, Distribution |
2001 |
Senior Vice President, Retail Food Companies, 1999-2001; President, Northwest Region, 1995-1999 | ||||
Pamela K. Knous |
47 |
Executive Vice President, Chief Financial Officer |
1997 |
|||||
Robert W. Borlik |
52 |
Senior Vice President, Chief Information Officer |
1999 |
|||||
Kim M. Erickson |
47 |
Senior Vice President and Treasurer |
1998 |
Senior Vice President, Finance and Treasurer, 1997-1998; Vice President and Treasurer, 1995-1997 | ||||
Gregory C. Heying |
52 |
Senior Vice President, Distribution |
1994 |
|||||
J. Andrew Herring |
42 |
Senior Vice President, Corporate Development and External Relations |
1999 |
Vice President, Corporate Development and External Relations, 1998-1999 | ||||
John H. Hooley |
49 |
Senior Vice President; President & CEO, Cub Foods |
2000 |
Vice President; President and Chief Executive Officer, Cub Foods, 1992-1999 | ||||
W. ONeill McDonald |
57 |
Senior Vice President, Distribution Food Companies |
1998 |
President, Midwest Region, 1995-1998 | ||||
Ronald C. Tortelli |
54 |
Senior Vice President, Human Resources |
1988 |
Name |
Age |
Present Position |
Year Elected to Present Position |
Other Positions Recently Held
With the Company | ||||
Leland J. Dake |
44 |
Vice President, Merchandising, Distribution Food Companies |
1998 |
Vice President, Corporate Category Management, 1995-1998 | ||||
Stephen P. Kilgriff |
59 |
Vice President, Legal Services |
2000 |
Associate General Counsel, 1996-2000 | ||||
Sherry M. Smith |
39 |
Vice President, Controller, Corporate |
1998 |
Assistant Corporate Controller, 1996-1998; Director, Finance and Accounting/Advantage, 1995-1996 |
(1) |
Mr. Wright plans to retire as Chief Executive Officer of the Company effective June 27, 2001, the date of the Companys Annual Meeting of Stockholders, and
continue as a director and Chairman of the Board after that date. On April 11, 2001, Mr. Noddle was elected to succeed Mr. Wright as President and Chief Executive Officer of the Company, effective June 27, 2001. |
ITEM 7. |
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Caption |
Nature of Charge |
Charge (In millions) |
||||
Restructure and other charges |
Consolidation of distribution centers |
$ |
67.2 |
| ||
Exit of
non-core retail markets |
|
68.0 |
| |||
Disposal of
non-core assets and other administrative reductions |
|
46.4 |
| |||
Reversal of
prior year charge |
|
(10.3 |
) | |||
|
|
| ||||
Total restructure and other charges |
|
171.3 |
| |||
Cost of sales |
Inventory
markdowns for restructure activities and store closings |
|
17.1 |
| ||
Selling and administrative expenses |
Store closing reserves, write-off of uncollectible expenses receivables and other items |
|
51.7 |
| ||
Total charges |
$ |
240.1 |
| |||
|
|
|
Restated February 24, 2001 (52 weeks) |
Restated February 26, 2000 (52 weeks) |
February 27, 1999 (52
weeks) |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||||
Net sales |
$ |
23,194.3 |
|
100.0 |
% |
$ |
20,339.1 |
|
100.0 |
% |
$ |
17,420.5 |
|
100.0 |
% | ||||||
Cost of sales |
|
20,650.3 |
|
89.1 |
|
|
18,113.4 |
|
89.0 |
|
|
15,620.1 |
|
89.7 |
| ||||||
Selling and administrative expenses |
|
2,042.3 |
|
8.8 |
|
|
1,705.0 |
|
8.4 |
|
|
1,382.2 |
|
7.9 |
| ||||||
Gain on sale |
|
|
|
|
|
|
(163.7 |
) |
(0.8 |
) |
|
|
|
|
| ||||||
Restructure and other charges |
|
171.3 |
|
0.7 |
|
|
103.6 |
|
0.5 |
|
|
|
|
|
| ||||||
Interest expense |
|
212.9 |
|
0.9 |
|
|
154.5 |
|
0.8 |
|
|
124.1 |
|
0.7 |
| ||||||
Interest income |
|
(22.1 |
) |
(0.1 |
) |
|
(19.1 |
) |
(0.1 |
) |
|
(22.2 |
) |
(0.1 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Earnings before income taxes |
|
139.6 |
|
0.6 |
|
|
445.4 |
|
2.2 |
|
|
316.2 |
|
1.8 |
| ||||||
Income tax expense |
|
66.7 |
|
0.3 |
|
|
203.7 |
|
1.0 |
|
|
124.9 |
|
0.7 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net earnings |
$ |
72.9 |
|
0.3 |
% |
$ |
241.7 |
|
1.2 |
% |
$ |
191.3 |
|
1.1 |
% | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock Price
Range |
Dividends Per Share | |||||||||||||||||
Fiscal Quarter |
2001 |
2000 |
2001 |
2000 | ||||||||||||||
High |
Low |
High |
Low |
|||||||||||||||
First |
$ |
22.88 |
$ |
14.00 |
$ |
25.75 |
$ |
19.00 |
$ |
.1350 |
$ |
.1325 | ||||||
Second |
|
20.25 |
|
14.69 |
|
26.31 |
|
21.13 |
|
.1375 |
|
.1350 | ||||||
Third |
|
18.19 |
|
14.00 |
|
22.38 |
|
18.06 |
|
.1375 |
|
.1350 | ||||||
Fourth |
|
17.81 |
|
11.75 |
|
20.19 |
|
15.75 |
|
.1375 |
|
.1350 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Year |
$ |
22.88 |
$ |
11.75 |
$ |
26.31 |
$ |
15.75 |
$ |
.5475 |
$ |
.5375 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Financial Instruments |
||||||||||||||||||||||||||||||||
February 26, 2000 |
February 24, 2001 |
Aggregate maturities of principal by fiscal year |
||||||||||||||||||||||||||||||
Fair Value |
2002 |
2003 |
2004 |
2005 |
2006 |
Thereafter |
||||||||||||||||||||||||||
(In millions, except rates) |
||||||||||||||||||||||||||||||||
Notes receivable with fixed interest rates |
||||||||||||||||||||||||||||||||
Principal receivable |
$ |
107.3 |
|
$ |
118.5 |
|
$ |
33.0 |
|
$ |
16.4 |
|
$ |
14.0 |
|
$ |
13.7 |
|
$ |
9.3 |
|
$ |
32.1 |
| ||||||||
Average rate receivable |
|
7.9 |
% |
|
8.7 |
% |
|
8.6 |
% |
|
8.9 |
% |
|
8.8 |
% |
|
9.0 |
% |
|
9.4 |
% |
|
8.6 |
% | ||||||||
Debt with variable interest rates |
||||||||||||||||||||||||||||||||
Principal payable |
|
741.6 |
|
|
650.4 |
|
|
578.9 |
|
|
|
|
|
9.0 |
|
|
|
|
|
4.9 |
|
|
57.6 |
| ||||||||
Average variable rate payable |
|
5.7 |
% |
|
6.7 |
% |
|
Variable |
|
|||||||||||||||||||||||
Debt with fixed interest rates |
||||||||||||||||||||||||||||||||
Principal payable |
|
1,397.6 |
|
|
1,394.2 |
|
|
21.4 |
|
|
324.5 |
|
|
21.9 |
|
|
438.2 |
|
|
58.2 |
|
|
530.0 |
| ||||||||
Average fixed rate payable |
|
7.8 |
% |
|
8.6 |
% |
|
8.3 |
% |
|
7.8 |
% |
|
8.3 |
% |
|
8.5 |
% |
|
7.1 |
% |
|
8.1 |
% | ||||||||
Variable-to-Fixed rate swap |
||||||||||||||||||||||||||||||||
Amount receivable (payable) |
|
1.5 |
|
|
(13.5 |
) |
|
|
|
|
|
|
|
57.9 |
|
|
|
|
|
|
|
|
100.0 |
(not payable) | ||||||||
Average fixed rate payable |
|
6.8 |
% |
|
6.8 |
% |
|
6.8 |
% |
|
6.8 |
% |
|
7.3 |
% |
|
7.4 |
% |
|
7.4 |
% |
|
7.4 |
% | ||||||||
Average variable rate receivable |
|
6.1 |
% |
|
5.4 |
% |
||||||||||||||||||||||||||
Fixed-to-Variable rate swap |
||||||||||||||||||||||||||||||||
Amount receivable |
|
8.7 |
|
|
10.4 |
|
|
|
|
|
100.0 |
|
|
(not payable |
) |
|||||||||||||||||
Average variable rate payable |
|
6.1 |
% |
|
5.4 |
% |
||||||||||||||||||||||||||
Average fixed rate receivable |
|
8.9 |
% |
|
8.9 |
% |
|
8.9 |
% |
|
8.9 |
% |
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
(a) |
1. Financial Statements: |
2. Financial Statement Schedules: |
3. Restated Exhibits filed with this amended 10-K/A: |
12.1. |
Ratio of Earnings to Fixed Charges. |
(b) |
Reports on Form 8-K: |
i. |
Report dated January 30, 2001 regarding strategy to improve returns. |
ii. |
Report dated January 19, 2001 regarding termination of Kmart contract. |
SUPERVALU INC. | ||||
(Registrant) | ||||
DATE: July 30, 2002 |
By: |
/s/ PAMELA K. KNOUS | ||
Pamela K. Knous Executive Vice
President and Chief Financial Officer (Authorized officer of Registrant) |
Page | ||
Selected Financial Data: |
||
Five Year Financial and Operating Summary |
F-2 | |
Financial Statements: |
||
Independent Auditors Report of KPMG LLP |
F-3 | |
Consolidated composition of net sales and operating earnings for each of the three years ended February 24, 2001,
February 26, 2000 and February 27, 1999 |
F-4 | |
Consolidated statements of earnings for each of the three years ended February 24, 2001, February 26, 2000 and February
27, 1999 |
F-5 | |
Consolidated balance sheets as of February 24, 2001 and February 26, 2000 |
F-6 | |
Consolidated statements of stockholders equity for each of the three years ended February 24, 2001, February 26,
2000 and February 27, 1999 |
F-7 | |
Consolidated statements of cash flows for each of the three years ended February 24, 2001, February 26, 2000 and
February 27, 1999 |
F-8 | |
Notes to consolidated financial statements |
F-9F-21 | |
Unaudited quarterly financial information |
F-22 | |
Independent Auditors Report |
F-23 | |
Financial Schedules: |
||
Schedule II: Valuation and qualifying accounts |
F-24 | |
All other schedules are omitted because they are not applicable or not required. |
Restated 2001 (b)(h) |
Restated 2000 (c)(h) |
1999 |
1998 (g) |
1997 |
||||||||||||||||
Statement of Earnings Data (a)(f) |
||||||||||||||||||||
Net sales |
$ |
23,194,279 |
|
$ |
20,339,079 |
|
$ |
17,420,507 |
|
$ |
17,201,378 |
|
$ |
16,551,902 |
| |||||
Cost of sales |
|
20,650,331 |
|
|
18,113,357 |
|
|
15,620,127 |
|
|
15,430,642 |
|
|
14,885,249 |
| |||||
Selling and administrative expenses |
|
2,042,259 |
|
|
1,705,003 |
|
|
1,382,212 |
|
|
1,365,327 |
|
|
1,286,121 |
| |||||
Gain on sale of Hazelwood Farms Bakeries |
|
|
|
|
(163,662 |
) |
|
|
|
|
|
|
|
|
| |||||
Restructure and other charges |
|
171,264 |
|
|
103,596 |
|
|
|
|
|
|
|
|
|
| |||||
Interest, net |
|
190,835 |
|
|
135,392 |
|
|
101,907 |
|
|
113,993 |
|
|
120,695 |
| |||||
Equity in earnings and gain on sale of ShopKo |
|
|
|
|
|
|
|
|
|
|
(93,364 |
) |
|
(20,675 |
) | |||||
Earnings before taxes |
|
139,590 |
|
|
445,393 |
|
|
316,261 |
|
|
384,780 |
|
|
280,512 |
| |||||
Provision for income taxes |
|
66,720 |
|
|
203,703 |
|
|
124,923 |
|
|
154,023 |
|
|
105,468 |
| |||||
Net earnings |
|
72,870 |
|
|
241,690 |
|
|
191,338 |
|
|
230,757 |
|
|
175,044 |
| |||||
Net earnings per common share diluted |
|
0.55 |
|
|
1.86 |
|
|
1.57 |
|
|
1.82 |
|
|
1.30 |
| |||||
Cash earnings per common share diluted |
|
0.91 |
|
|
2.11 |
|
|
1.73 |
|
|
1.97 |
|
|
1.43 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Balance Sheet Data (a) |
||||||||||||||||||||
Inventories (FIFO) |
$ |
1,477,180 |
|
$ |
1,622,151 |
|
$ |
1,195,217 |
|
$ |
1,247,429 |
|
$ |
1,221,344 |
| |||||
Working capital (d) |
|
(119,216 |
) |
|
(197,599 |
) |
|
188,000 |
|
|
286,800 |
|
|
361,260 |
| |||||
Net property, plant and equipment |
|
2,232,794 |
|
|
2,168,210 |
|
|
1,699,024 |
|
|
1,589,601 |
|
|
1,648,524 |
| |||||
Total assets |
|
6,390,344 |
|
|
6,493,292 |
|
|
4,265,949 |
|
|
4,093,010 |
|
|
4,283,326 |
| |||||
Long-term debt (e) |
|
2,008,474 |
|
|
1,953,741 |
|
|
1,246,269 |
|
|
1,260,728 |
|
|
1,420,591 |
| |||||
Stockholders equity |
|
1,783,149 |
|
|
1,820,228 |
|
|
1,305,639 |
|
|
1,201,905 |
|
|
1,307,423 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Other Statistics (a) (f) |
||||||||||||||||||||
Earnings as a percent of net sales |
|
98 |
% |
|
1.13 |
% |
|
1.10 |
% |
|
1.01 |
% |
|
1.06 |
% | |||||
Return on average stockholders equity |
|
12.12 |
% |
|
14.18 |
% |
|
15.24 |
% |
|
14.19 |
% |
|
13.89 |
% | |||||
Book value per common share |
$ |
13.47 |
|
$ |
13.52 |
|
$ |
10.82 |
|
$ |
9.94 |
|
$ |
9.73 |
| |||||
Current ratio (d) |
|
95:1 |
|
|
92:1 |
|
|
1.12:1 |
|
|
1.20:1 |
|
|
1.26:1 |
| |||||
Debt to capital ratio |
|
59.7 |
% |
|
60.0 |
% |
|
54.6 |
% |
|
56.9 |
% |
|
55.8 |
% | |||||
Dividends declared per common share |
$ |
.54 3/4 |
|
$ |
.53 3/4 |
|
$ |
.52 3/4 |
|
$ |
.51 1/2 |
|
$ |
.49 3/4 |
| |||||
Weighted average common shares outstandingdiluted |
|
132,829 |
|
|
130,090 |
|
|
121,961 |
|
|
126,550 |
|
|
134,954 |
| |||||
Depreciation and amortization |
$ |
343,779 |
|
$ |
277,062 |
|
$ |
233,523 |
|
$ |
230,082 |
|
$ |
232,071 |
| |||||
EBITDA |
$ |
906,796 |
|
$ |
797,781 |
|
$ |
651,691 |
|
$ |
638,821 |
|
$ |
633,278 |
| |||||
EBITDA as a percent of sales |
|
3.91 |
% |
|
3.92 |
% |
|
3.74 |
% |
|
3.71 |
% |
|
3.83 |
% | |||||
Capital expenditures |
$ |
511,673 |
|
$ |
539,264 |
|
$ |
346,390 |
|
$ |
279,768 |
|
$ |
285,939 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Fiscal 1998 contains 53 weeks; all other years include 52 weeks. Dollars in thousands except per share and percentage data. |
(b) |
Net earnings include restructure and other items of $153.9 or $1.16 per diluted share. This includes total pretax adjustments of $240.1 million, including
$171.3 million of restructure and other charges related primarily to consolidation of distribution facilities, exit of certain non core retail markets, and write-off of other items. The pretax adjustments also includes $17.1 million in cost of sales
for inventory markdowns related to restructure exit activities and $51.7 million in selling and administrative expenses primarily for store closing reserves and the write-off of certain uncollectible receivables. Earnings as a percent of net sales,
return on average stockholders equity, and EBITDA have been adjusted to exclude these transactions. |
(c) |
Net earnings include a net benefit of $10.9 million or $.08 per diluted share from the gain on sale of Hazelwood Farms Bakeries and restructure and other
charges. This reflects total pretax net adjustments of $60.1 million, which includes $163.7 million for the sale of Hazelwood Farms Bakeries and $103.6 million of restructure and other charges related primarily to facility consolidation, non core
store disposal, and rationalization of redundant and certain decentralized administrative functions. Earnings as a percent of net sales, return on average stockholders equity, and EBITDA have been adjusted to exclude these transactions.
|
(d) |
Working capital and current ratio are calculated after adding back the LIFO reserve. |
(e) |
Total long-term debt includes long-term debt and long-term obligations under capital lease. |
(f) |
Information adjusted to include stock split in fiscal 1999. |
(g) |
Net earnings includes a net gain on the sale of ShopKo of $53.7 million or $.42 per diluted share. Earnings as a percent of net sales, return on average
stockholders equity, and EBITDA have been adjusted to exclude this transaction. |
(h) |
The consolidated financial statements as of February 24, 2001 and February 26, 2000 and for each of the fiscal years then ended have been restated. See
Note to Consolidated Financial StatementsRestatement included in Part II, Item 8. |
Restated February 24, 2001 (52
weeks) |
Restated February 26, 2000 (52
weeks) |
February 27, 1999 (52
weeks) |
||||||||||
Net sales |
||||||||||||
Retail food |
$ |
9,353,992 |
|
$ |
8,069,767 |
|
$ |
6,312,882 |
| |||
|
40.3 |
% |
|
39.7 |
% |
|
36.2 |
% | ||||
Food distribution |
|
13,840,287 |
|
|
12,269,312 |
|
|
11,107,625 |
| |||
|
59.7 |
% |
|
60.3 |
% |
|
63.8 |
% | ||||
|
|
|
|
|
|
|
|
| ||||
Total net sales |
$ |
23,194,279 |
|
$ |
20,339,079 |
|
$ |
17,420,507 |
| |||
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% | ||||
|
|
|
|
|
|
|
|
| ||||
Operating earnings |
||||||||||||
Retail food |
$ |
286,520 |
|
$ |
338,646 |
|
$ |
262,426 |
| |||
Food distribution |
|
251,009 |
|
|
223,429 |
|
|
186,291 |
| |||
General corporate expenses |
|
(35,840 |
) |
|
(41,356 |
) |
|
(30,549 |
) | |||
Gain on sale |
|
|
|
|
163,662 |
|
|
|
| |||
Restructure and other charges |
|
(171,264 |
) |
|
(103,596 |
) |
|
|
| |||
|
|
|
|
|
|
|
|
| ||||
Total operating earnings |
|
330,425 |
|
|
580,785 |
|
|
418,168 |
| |||
Interest expense, net |
|
(190,835 |
) |
|
(135,392 |
) |
|
(101,907 |
) | |||
|
|
|
|
|
|
|
|
| ||||
Earnings before income taxes |
$ |
139,590 |
|
$ |
445,393 |
|
$ |
316,261 |
| |||
|
|
|
|
|
|
|
|
| ||||
Identifiable assets |
||||||||||||
Retail food |
$ |
3,101,018 |
|
$ |
3,075,073 |
|
$ |
1,658,858 |
| |||
Food distribution |
|
3,275,435 |
|
|
3,408,866 |
|
|
2,597,216 |
| |||
Corporate |
|
13,891 |
|
|
9,353 |
|
|
9,875 |
| |||
|
|
|
|
|
|
|
|
| ||||
Total |
$ |
6,390,344 |
|
$ |
6,493,292 |
|
$ |
4,265,949 |
| |||
|
|
|
|
|
|
|
|
| ||||
Depreciation and amortization |
||||||||||||
Retail food |
$ |
173,418 |
|
$ |
149,574 |
|
$ |
108,770 |
| |||
Food distribution |
|
167,253 |
|
|
124,161 |
|
|
122,822 |
| |||
Corporate |
|
3,108 |
|
|
3,327 |
|
|
1,931 |
| |||
|
|
|
|
|
|
|
|
| ||||
Total |
$ |
343,779 |
|
$ |
277,062 |
|
$ |
233,523 |
| |||
|
|
|
|
|
|
|
|
| ||||
Capital expenditures |
||||||||||||
Retail food |
$ |
347,540 |
|
$ |
352,428 |
|
$ |
198,299 |
| |||
Food distribution |
|
158,591 |
|
|
180,968 |
|
|
143,337 |
| |||
Corporate |
|
5,542 |
|
|
5,868 |
|
|
4,754 |
| |||
|
|
|
|
|
|
|
|
| ||||
Total |
$ |
511,673 |
|
$ |
539,264 |
|
$ |
346,390 |
| |||
|
|
|
|
|
|
|
|
|
Restated February 24, 2001 (52
weeks) |
Restated February 26, 2000 (52
weeks) |
February 27, 1999 (52
weeks) | |||||||||
Net sales |
$ |
23,194,279 |
|
$ |
20,339,079 |
|
$ |
17,420,507 | |||
Costs and expenses |
|||||||||||
Cost of sales |
|
20,650,331 |
|
|
18,113,357 |
|
|
15,620,127 | |||
Selling and administrative expenses |
|
2,042,259 |
|
|
1,705,003 |
|
|
1,382,212 | |||
Gain on sale |
|
|
|
|
(163,662 |
) |
|
| |||
Restructure and other charges |
|
171,264 |
|
|
103,596 |
|
|
| |||
Interest |
|||||||||||
Interest expense |
|
212,898 |
|
|
154,482 |
|
|
124,111 | |||
Interest income |
|
22,063 |
|
|
19,090 |
|
|
22,204 | |||
|
|
|
|
|
|
|
| ||||
Interest expense, net |
|
190,835 |
|
|
135,392 |
|
|
101,907 | |||
|
|
|
|
|
|
|
| ||||
Total costs and expenses |
|
23,054,689 |
|
|
19,893,686 |
|
|
17,104,246 | |||
|
|
|
|
|
|
|
| ||||
Earnings before income taxes |
|
139,590 |
|
|
445,393 |
|
|
316,261 | |||
Provision for income taxes |
|||||||||||
Current |
|
76,609 |
|
|
224,744 |
|
|
108,403 | |||
Deferred |
|
(9,889 |
) |
|
(21,041 |
) |
|
16,520 | |||
|
|
|
|
|
|
|
| ||||
Income tax expense |
|
66,720 |
|
|
203,703 |
|
|
124,923 | |||
|
|
|
|
|
|
|
| ||||
Net earnings |
$ |
72,870 |
|
$ |
241,690 |
|
$ |
191,338 | |||
|
|
|
|
|
|
|
| ||||
Weighted average number of common shares outstanding |
|||||||||||
Diluted |
|
132,829 |
|
|
130,090 |
|
|
121,961 | |||
Basic |
|
132,251 |
|
|
129,162 |
|
|
120,376 | |||
Net earnings per common share-diluted |
$ |
0.55 |
|
$ |
1.86 |
|
$ |
1.57 | |||
Net earnings per common share-basic |
$ |
0.55 |
|
$ |
1.87 |
|
$ |
1.59 |
Restated February 24, 2001 |
Restated February 26, 2000 |
|||||||
Assets |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ |
10,396 |
|
$ |
10,920 |
| ||
Receivables, less allowance for losses of $30,904 in 2001 and $30,399 in 2000 |
|
579,600 |
|
|
564,323 |
| ||
Inventories |
|
1,336,556 |
|
|
1,486,518 |
| ||
Other current assets |
|
148,296 |
|
|
113,817 |
| ||
|
|
|
|
|
| |||
Total current assets |
|
2,074,848 |
|
|
2,175,578 |
| ||
|
|
|
|
|
| |||
Long-term notes receivable, less allowance for losses of $10,300 in 2001 and $7,500 in 2000 |
|
87,350 |
|
|
86,914 |
| ||
Long-term investment in direct financing leases |
|
74,038 |
|
|
92,310 |
| ||
Property, plant and equipment |
||||||||
Land |
|
166,505 |
|
|
155,501 |
| ||
Buildings |
|
1,051,027 |
|
|
1,037,398 |
| ||
Property under construction |
|
57,631 |
|
|
50,381 |
| ||
Leasehold improvements |
|
286,316 |
|
|
239,400 |
| ||
Equipment |
|
1,645,641 |
|
|
1,486,850 |
| ||
Assets under capital lease |
|
556,902 |
|
|
508,119 |
| ||
|
|
|
|
|
| |||
|
3,764,022 |
|
|
3,477,649 |
| |||
Less accumulated depreciation and amortization |
||||||||
Owned property, plant and equipment |
|
1,416,538 |
|
|
1,227,218 |
| ||
Assets under capital leases |
|
114,690 |
|
|
82,221 |
| ||
|
|
|
|
|
| |||
Net property, plant and equipment |
|
2,232,794 |
|
|
2,168,210 |
| ||
|
|
|
|
|
| |||
Goodwill |
|
1,576,780 |
|
|
1,608,580 |
| ||
Other assets |
|
344,534 |
|
|
361,700 |
| ||
|
|
|
|
|
| |||
Total assets |
$ |
6,390,344 |
|
$ |
6,493,292 |
| ||
|
|
|
|
|
| |||
Liabilities and Stockholders Equity |
||||||||
Current Liabilities |
||||||||
Notes payable |
$ |
579,039 |
|
$ |
576,513 |
| ||
Accounts payable |
|
1,396,011 |
|
|
1,430,312 |
| ||
Accrued vacation, compensation and benefits |
|
119,960 |
|
|
128,875 |
| ||
Current maturities of long-term debt |
|
23,171 |
|
|
170,381 |
| ||
Current obligations under capital leases |
|
31,497 |
|
|
29,901 |
| ||
Other current liabilities |
|
185,010 |
|
|
172,828 |
| ||
|
|
|
|
|
| |||
Total current liabilities |
|
2,334,688 |
|
|
2,508,810 |
| ||
|
|
|
|
|
| |||
Long-term debt |
|
1,444,376 |
|
|
1,408,858 |
| ||
Long-term obligations under capital leases |
|
564,098 |
|
|
544,883 |
| ||
Deferred income taxes |
|
29,656 |
|
|
3,306 |
| ||
Other liabilities |
|
234,377 |
|
|
207,207 |
| ||
Commitments and contingencies |
|
|
|
|
|
| ||
Stockholders equity |
||||||||
Common stock, $1.00 par value: Authorized 400,000 shares |
||||||||
Shares issued, 150,670 in 2001 and 2000 |
|
150,670 |
|
|
150,670 |
| ||
Capital in excess of par value |
|
128,492 |
|
|
132,226 |
| ||
Retained earnings |
|
1,846,087 |
|
|
1,846,120 |
| ||
Treasury stock, at cost, 18,296 shares in 2001 and 16,008 shares in 2000 |
|
(342,100 |
) |
|
(308,788 |
) | ||
|
|
|
|
|
| |||
Total stockholders equity |
|
1,783,149 |
|
|
1,820,228 |
| ||
|
|
|
|
|
| |||
Total liabilities and stockholders equity |
$ |
6,390,344 |
|
$ |
6,493,292 |
| ||
|
|
|
|
|
|
Preferred Stock |
Common Stock |
Capital in Excess of Par Value |
Treasury Stock |
Restated Retained Earnings |
Total |
||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
||||||||||||||||||||||||||
BALANCES AT FEBRUARY 28, 1998 |
6 |
|
$ |
5,908 |
|
150,670 |
$ |
150,670 |
$ |
2,927 |
|
(30,562 |
) |
$ |
(507,296 |
) |
$ |
1,549,696 |
|
$ |
1,201,905 |
| |||||||||
Net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
191,338 |
|
|
191,338 |
| |||||||||
Sales of common stock under option plans |
|
|
|
|
|
|
|
|
|
(5,902 |
) |
1,703 |
|
|
35,497 |
|
|
(3,667 |
) |
|
25,928 |
| |||||||||
Cash dividends declare on common stock $.5275 per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(63,985 |
) |
|
(63,985 |
) | |||||||||
Compensation under employee incentive Plans |
|
|
|
|
|
|
|
|
|
1,057 |
|
786 |
|
|
10,914 |
|
|
|
|
|
11,971 |
| |||||||||
Treasury shares exchanged for acquisitions |
|
|
|
|
|
|
|
|
|
1,918 |
|
160 |
|
|
2,167 |
|
|
|
|
|
4,085 |
| |||||||||
Purchase of shares for treasury |
|
|
|
|
|
|
|
|
|
|
|
(2,648 |
) |
|
(65,603 |
) |
|
|
|
|
(65,603 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
BALANCES AT FEBRUARY 27, 1999 |
6 |
|
|
5,908 |
|
150,670 |
|
150,670 |
|
|
|
(30,561 |
) |
|
(524,321 |
) |
|
1,673,382 |
|
|
1,305,639 |
| |||||||||
Restated net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
241,690 |
|
|
241,690 |
| |||||||||
Sales of common stock under option plans |
|
|
|
|
|
|
|
|
|
(5,181 |
) |
377 |
|
|
10,738 |
|
|
|
|
|
5,557 |
| |||||||||
Cash dividends declared on common stock $.5375 per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(68,952 |
) |
|
(68,952 |
) | |||||||||
Compensation under employee incentive Plans |
|
|
|
|
|
|
|
|
|
(1,802 |
) |
395 |
|
|
9,408 |
|
|
|
|
|
7,606 |
| |||||||||
Treasury shares exchanged for Acquisitions |
|
|
|
|
|
|
|
|
|
139,209 |
|
20,449 |
|
|
318,293 |
|
|
|
|
|
457,502 |
| |||||||||
Redemption of preferred stock |
(6 |
) |
|
(5,908 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,908 |
) | |||||||||
Purchase of shares for treasury |
|
|
|
|
|
|
|
|
|
|
|
(6,668 |
) |
|
(122,906 |
) |
|
|
|
|
(122,906 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
RESTATED BALANCES AT FEBRUARY 26, 2000 |
|
|
|
|
|
150,670 |
|
150,670 |
|
132,226 |
|
(16,008 |
) |
|
(308,788 |
) |
|
1,846,120 |
|
|
1,820,228 |
| |||||||||
Restated net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72,870 |
|
|
72,870 |
| |||||||||
Sales of common stock under option plans |
|
|
|
|
|
|
|
|
|
(3,538 |
) |
279 |
|
|
7,095 |
|
|
|
|
|
3,557 |
| |||||||||
Cash dividends declared on common stock $.5475 per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(72,903 |
) |
|
(72,903 |
) | |||||||||
Compensation under employee incentive plans |
|
|
|
|
|
|
|
|
|
(196 |
) |
366 |
|
|
8,271 |
|
|
|
|
|
8,075 |
| |||||||||
Purchase of shares for treasury |
|
|
|
|
|
|
|
|
|
|
|
(2,933 |
) |
|
(48,678 |
) |
|
|
|
|
(48,678 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
RESTATED BALANCES AT FEBRUARY 24, 2001 |
|
|
$ |
|
|
150,670 |
$ |
150,670 |
$ |
128,492 |
|
(18,296 |
) |
$ |
(342,100 |
) |
$ |
1,846,087 |
|
$ |
1,783,149 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated February 24, 2001 (52 weeks) |
Restated February 26, 2000 (52
weeks) |
February 27, 1999 (52
weeks) |
||||||||||
Cash flows from operating activities |
||||||||||||
Net earnings |
$ |
72,870 |
|
$ |
241,690 |
|
$ |
191,338 |
| |||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization |
|
343,779 |
|
|
277,062 |
|
|
233,523 |
| |||
LIFO expense (income) |
|
4,991 |
|
|
8,253 |
|
|
(3,889 |
) | |||
Provision for losses on receivables |
|
23,107 |
|
|
9,895 |
|
|
10,150 |
| |||
Gain on sale of assets |
|
|
|
|
(163,662 |
) |
|
|
| |||
Restructure and other charges |
|
171,264 |
|
|
103,596 |
|
|
|
| |||
Deferred income taxes |
|
(9,889 |
) |
|
(21,041 |
) |
|
16,520 |
| |||
Other adjustments, net |
|
829 |
|
|
2,032 |
|
|
64 |
| |||
Changes in assets and liabilities, excluding effect from acquisitions: |
||||||||||||
Receivables |
|
(38,384 |
) |
|
(60,762 |
) |
|
(20,558 |
) | |||
Inventories |
|
144,971 |
|
|
(191,256 |
) |
|
80,466 |
| |||
Accounts payable |
|
(66,824 |
) |
|
61,997 |
|
|
14,623 |
| |||
Other assets and liabilities |
|
4,511 |
|
|
73,368 |
|
|
37,703 |
| |||
|
|
|
|
|
|
|
|
| ||||
Net cash provided by operating activities |
|
651,225 |
|
|
341,172 |
|
|
559,940 |
| |||
|
|
|
|
|
|
|
|
| ||||
Cash flows from operating activities |
||||||||||||
Additions to long-term notes receivable |
|
(69,875 |
) |
|
(55,162 |
) |
|
(51,455 |
) | |||
Proceeds received on long-term notes receivable |
|
69,439 |
|
|
52,101 |
|
|
95,172 |
| |||
Proceeds from sale of assets |
|
48,179 |
|
|
374,714 |
|
|
64,658 |
| |||
Purchase of property, plant and equipment |
|
(397,715 |
) |
|
(407,947 |
) |
|
(240,363 |
) | |||
Business acquisitions, net of cash acquired |
|
|
|
|
(480,502 |
) |
|
(165,797 |
) | |||
Other investing activities |
|
(30,389 |
) |
|
(17,704 |
) |
|
(23,578 |
) | |||
|
|
|
|
|
|
|
|
| ||||
Net cash (used in) investing activities |
|
(380,361 |
) |
|
(534,500 |
) |
|
(321,363 |
) | |||
|
|
|
|
|
|
|
|
| ||||
Cash flows from financing activities |
||||||||||||
Net (decrease) increase in checks outstanding, net of deposits |
|
(13,537 |
) |
|
23,529 |
|
|
15,958 |
| |||
Net issuance (reduction) of short-term notes payable |
|
2,526 |
|
|
472,670 |
|
|
(61,439 |
) | |||
Proceeds from issuance of long term debt |
|
60,000 |
|
|
594,485 |
|
|
207,155 |
| |||
Repayment of long-term debt |
|
(171,692 |
) |
|
(672,303 |
) |
|
(260,928 |
) | |||
Reduction of obligations under capital leases |
|
(28,220 |
) |
|
(28,376 |
) |
|
(24,945 |
) | |||
Proceeds from the sale of common stock under options plans |
|
457 |
|
|
2,381 |
|
|
16,747 |
| |||
Redemption of preferred stock |
|
|
|
|
(5,908 |
) |
|
|
| |||
Dividends paid |
|
(72,244 |
) |
|
(66,932 |
) |
|
(64,014 |
) | |||
Payment for purchase of treasury stock |
|
(48,678 |
) |
|
(122,906 |
) |
|
(65,603 |
) | |||
|
|
|
|
|
|
|
|
| ||||
Net cash (used in) provided by financing activities |
|
(271,388 |
) |
|
196,640 |
|
|
(237,069 |
) | |||
Net (decrease) increase in cash |
|
(524 |
) |
|
3,312 |
|
|
1,508 |
| |||
Cash at beginning of year |
|
10,920 |
|
|
7,608 |
|
|
6,100 |
| |||
|
|
|
|
|
|
|
|
| ||||
Cash at end of year |
$ |
10,396 |
|
$ |
10,920 |
|
$ |
7,608 |
| |||
|
|
|
|
|
|
|
|
| ||||
SUPPLEMENTAL CASH FLOW INFORMATION |
||||||||||||
The companys non-cash investing and financing activities were as follows: |
||||||||||||
Leased asset additions and related obligation |
$ |
113,958 |
|
$ |
131,316 |
|
$ |
106,027 |
| |||
|
|
|
|
|
|
|
|
| ||||
Acquisitions: |
||||||||||||
Fair value of assets acquired |
$ |
|
|
$ |
1,951,004 |
|
$ |
196,591 |
| |||
Cash paid |
|
|
|
|
481,861 |
|
|
166,731 |
| |||
Common stock issued |
|
|
|
|
457,502 |
|
|
|
| |||
Liabilities assumed |
|
|
|
|
1,011,641 |
|
|
29,860 |
| |||
Interest paid (net of amount capitalized) |
$ |
214,377 |
|
$ |
141,434 |
|
$ |
127,505 |
| |||
Income taxes paid |
$ |
75,226 |
|
$ |
245,177 |
|
$ |
99,686 |
| |||
|
|
|
|
|
|
|
|
|
Consolidated Statements of Earnings |
As previously reported 2001 |
Restated 2001 |
As previously reported 2000 |
Restated 2000 | ||||||||
(in millions, except per share amounts) | ||||||||||||
Net sales |
$ |
23,194.3 |
$ |
23,194.3 |
$ |
20,339.1 |
$ |
20,339.1 | ||||
Cost of sales |
|
20,635.6 |
|
20,650.3 |
|
18,111.3 |
|
18,113.4 | ||||
Earnings before income taxes |
|
154.4 |
|
139.6 |
|
447.5 |
|
445.4 | ||||
Income tax expense |
|
72.4 |
|
66.7 |
|
204.6 |
|
203.7 | ||||
Net earnings |
|
82.0 |
|
72.9 |
|
242.9 |
|
241.7 | ||||
Net earnings per common sharediluted |
$ |
0.62 |
$ |
0.55 |
$ |
1.87 |
$ |
1.86 | ||||
Net earnings per common sharebasic |
$ |
0.62 |
$ |
0.55 |
$ |
1.88 |
$ |
1.87 | ||||
Consolidated Balance Sheets |
As previously reported 2001 |
Restated 2001 |
As previously reported 2000 |
Restated 2000 | ||||||||
(in millions) | ||||||||||||
Total current assets |
$ |
2,091.7 |
$ |
2,074.8 |
$ |
2,177.6 |
$ |
2,175.6 | ||||
Total assets |
|
6,407.2 |
|
6,390.3 |
|
6,495.4 |
|
6,493.3 | ||||
Total current liabilities |
|
2,341.2 |
|
2,334.7 |
|
2,509.6 |
|
2,508.8 | ||||
Total stockholders equity |
|
1,793.5 |
|
1,783.1 |
|
1,821.5 |
|
1,820.2 | ||||
Total liabilities and stockholders equity |
|
6,407.2 |
|
6,390.3 |
|
6,495.4 |
|
6,493.3 |
Restated 2000
|
1999 |
|||||||
(In thousands, except per
share data) |
||||||||
Net sales |
$ |
22,309,061 |
|
$ |
21,178,846 |
| ||
Net earnings |
$ |
260,155 |
(a) |
$ |
207,887 |
(b) | ||
Net earnings per common sharediluted |
$ |
1.86 |
(a) |
$ |
1.47 |
(b) |
(a) |
Amounts include a net gain of $10.9 million or $.08 per share-diluted from the gain on the sale of Hazelwood Farms Bakeries and from restructure and other
charges. |
(b) |
Amounts include a restructure charge taken by Richfood of $14.5 million or $.10 per share-diluted in their fourth quarter ended May 1998.
|
Caption |
Nature of Charge |
Charge (In thousands) |
||||
Restructure and other charges |
Consolidation of distribution centers |
$ |
67,193 |
| ||
Exit of non-core retail markets |
|
68,024 |
| |||
Disposal of non-core assets and other administrative reductions |
|
46,398 |
| |||
Reversal of prior year charge |
|
(10,351 |
) | |||
|
|
| ||||
Total restructure and other charges |
|
171,264 |
| |||
Cost of sales |
Inventory markdowns for restructure activities and store closings |
|
17,088 |
| ||
Selling and administrative expenses |
Store closing reserves, write-off of uncollectible receivables and other items |
|
51,777 |
| ||
|
|
| ||||
Total charges |
$ |
240,129 |
| |||
|
|
|
Original Pretax Charge |
Fiscal 2001 Activity |
Balance February 24, 2001 | |||||||
(In thousands, except for employees) | |||||||||
Consolidation of distribution centers |
$ |
67,193 |
$ |
25,694 |
$ |
41,499 | |||
Exit of non-core retail markets |
|
68,024 |
|
34,289 |
|
33,735 | |||
Disposal of non-core assets and other administrative reductions |
|
46,398 |
|
29,779 |
|
16,619 | |||
|
|
|
|
|
| ||||
Total restructure and other charges |
$ |
181,615 |
$ |
89,762 |
$ |
91,853 | |||
|
|
|
|
|
| ||||
Employees |
|
4,500 |
|
|
|
4,500 | |||
|
|
|
|
|
|
Balance February 26, 2000 |
Fiscal 2001 Activity |
Fiscal 2001
Adjustment |
Balance February 24, 2001 | ||||||||||
(In thousands, except for employees) | |||||||||||||
Facility consolidation |
$ |
44,550 |
$ |
22,727 |
$ |
(10,351 |
) |
$ |
11,472 | ||||
Non-core store disposal |
|
29,326 |
|
24,922 |
|
|
|
|
4,404 | ||||
Infrastructure realignment |
|
6,791 |
|
4,811 |
|
|
|
|
1,980 | ||||
|
|
|
|
|
|
|
|
| |||||
Total restructure and other charges |
$ |
80,667 |
$ |
52,460 |
$ |
(10,351 |
) |
$ |
17,856 | ||||
|
|
|
|
|
|
|
|
| |||||
Employees |
|
1,513 |
|
644 |
|
(406 |
) |
|
463 | ||||
|
|
|
|
|
|
|
|
|
February 24, 2001 |
February 26, 2000 | |||||
(In thousands, except payment
data) | ||||||
7.625%-8.875% promissory notes semi-annual interest payments of $39.5 million; due fiscal 2003 to 2023
|
$ |
1,000,000 |
$ |
1,000,000 | ||
9.75% senior notes, $168,850 face amount semi-annual interest payments of $8.2 million; due fiscal 2005
|
|
178,111 |
|
181,485 | ||
6.23%-6.69% medium-term notes semi-annual interest payments of $3.4 million; due fiscal 2002 to 2007 |
|
103,500 |
|
161,000 | ||
Variable rate three month LIBOR plus 1% |
|
|
|
88,513 | ||
Variable rate to 7.125% industrial revenue bonds |
|
74,526 |
|
80,712 | ||
8.28%-9.96% promissory notes; due fiscal 2002 to 2010 |
|
37,648 |
|
50,757 | ||
7.78% and 8.02% obligations with quarterly payments of principal and interest; due fiscal 2005 and 2006
|
|
60,000 |
|
| ||
Other debt |
|
13,762 |
|
16,772 | ||
|
|
|
| |||
|
1,467,547 |
|
1,579,239 | |||
Less current maturities |
|
23,171 |
|
170,381 | ||
|
|
|
| |||
Long-term debt |
$ |
1,444,376 |
$ |
1,408,858 | ||
|
|
|
|
(In thousands) | |||
2002 |
$ |
23,171 | |
2003 |
|
324,508 | |
2004 |
|
30,930 | |
2005 |
|
438,216 | |
2006 |
|
63,153 | |
|
|
Lease Obligations | |||
(In thousands) | |||
2002 |
$ |
66,836 | |
2003 |
|
66,376 | |
2004 |
|
65,450 | |
2005 |
|
65,110 | |
2006 |
|
63,778 | |
Later |
|
644,660 | |
|
| ||
Total future minimum obligations |
|
972,210 | |
Less interest |
|
456,072 | |
|
| ||
Present value of net future minimum obligations |
|
516,138 | |
Less current portion |
|
24,370 | |
|
| ||
Long-term obligations |
$ |
491,768 | |
|
|
Lease Obligations | |||
(In thousands) | |||
Fiscal Year |
|||
2002 |
$ |
109,731 | |
2003 |
|
100,313 | |
2004 |
|
85,908 | |
2005 |
|
76,387 | |
2006 |
|
68,119 | |
Later |
|
376,111 | |
|
| ||
Total future minimum obligations |
$ |
816,569 | |
|
|
Owned Property |
Leased Property |
Total | |||||||
(In thousands) | |||||||||
Fiscal Year |
|||||||||
2002 |
$ |
2,703 |
$ |
21,078 |
$ |
23,781 | |||
2003 |
|
2,656 |
|
19,059 |
|
21,715 | |||
2004 |
|
2,328 |
|
16,596 |
|
18,924 | |||
2005 |
|
2,133 |
|
13,154 |
|
15,287 | |||
2006 |
|
1,850 |
|
10,771 |
|
12,621 | |||
Later |
|
6,116 |
|
33,711 |
|
39,827 | |||
|
|
|
|
|
| ||||
Total future minimum receivables |
$ |
17,786 |
$ |
114,369 |
$ |
132,155 | |||
|
|
|
|
|
|
February 24, 2001 |
February 26, 2000 | |||||
(In thousands) | ||||||
Fiscal Year |
||||||
Land, buildings and equipment |
$ |
44,946 |
$ |
37,240 | ||
Less accumulated depreciation |
|
20,911 |
|
19,238 | ||
|
|
|
| |||
Net land, buildings and equipment |
$ |
24,035 |
$ |
18,002 | ||
|
|
|
|
Direct Financing Lease Receivables |
Capital Lease Obligations | |||||
(In thousands) | ||||||
Fiscal Year |
||||||
2002 |
$ |
14,235 |
$ |
13,328 | ||
2003 |
|
13,377 |
|
12,528 | ||
2004 |
|
12,145 |
|
11,423 | ||
2005 |
|
10,983 |
|
10,372 | ||
2006 |
|
10,159 |
|
9,574 | ||
Later |
|
71,571 |
|
67,886 | ||
|
|
|
| |||
Total minimum lease payments |
|
132,470 |
|
125,111 | ||
Less unearned income |
|
51,348 |
|
| ||
Less interest |
|
|
|
45,654 | ||
|
|
|
| |||
Present value of net minimum lease payments |
|
81,122 |
|
79,457 | ||
Less current portion |
|
7,084 |
|
7,127 | ||
|
|
|
| |||
Long-term portion |
$ |
74,038 |
$ |
72,330 | ||
|
|
|
|
Restated 2001 |
Restated 2000 |
1999 |
||||||||||
(In thousands) |
||||||||||||
Current |
||||||||||||
Federal |
$ |
65,728 |
|
$ |
187,114 |
|
$ |
90,166 |
| |||
State |
|
11,481 |
|
|
38,109 |
|
|
18,528 |
| |||
Tax credits |
|
(600 |
) |
|
(479 |
) |
|
(291 |
) | |||
Deferred |
||||||||||||
Restructure and other charges |
|
(45,885 |
) |
|
(31,678 |
) |
|
|
| |||
Other |
|
35,996 |
|
|
10,637 |
|
|
16,520 |
| |||
|
|
|
|
|
|
|
|
| ||||
Total provision |
$ |
66,720 |
|
$ |
203,703 |
|
$ |
124,923 |
| |||
|
|
|
|
|
|
|
|
|
Restated 2001 |
Restated 2000 |
1999 |
||||||||||
(In thousands) |
||||||||||||
Federal taxes based on statutory rate |
$ |
48,856 |
|
$ |
155,888 |
|
$ |
110,691 |
| |||
State income taxes, net of |
||||||||||||
Federal benefit |
|
4,764 |
|
|
19,107 |
|
|
13,568 |
| |||
Nondeductible goodwill |
|
22,354 |
|
|
11,118 |
|
|
6,236 |
| |||
Asset sale basis difference |
|
|
|
|
24,238 |
|
|
|
| |||
Audit settlements |
|
(6,539 |
) |
|
|
|
|
|
| |||
Other |
|
(2,715 |
) |
|
(6,648 |
) |
|
(5,572 |
) | |||
|
|
|
|
|
|
|
|
| ||||
Total provision |
$ |
66,720 |
|
$ |
203,703 |
|
$ |
124,923 |
| |||
|
|
|
|
|
|
|
|
|
2001 |
2000 |
|||||||
(In thousands) |
||||||||
Deferred tax assets: |
||||||||
Deprecation and amortization |
$ |
64,452 |
|
$ |
51,268 |
| ||
Restructure and other charges |
|
87,337 |
|
|
41,452 |
| ||
Net operating loss from acquired Subsidiaries |
|
46,255 |
|
|
56,784 |
| ||
Provision for obligations to be settled in future periods |
|
171,426 |
|
|
169,359 |
| ||
Inventory |
|
20,479 |
|
|
13,073 |
| ||
Other |
|
21,132 |
|
|
14,719 |
| ||
|
|
|
|
|
| |||
Total deferred tax assets |
|
411,081 |
|
|
346,655 |
| ||
|
|
|
|
|
| |||
Deferred tax liabilities: |
||||||||
Depreciation and amortization |
|
(127,212 |
) |
|
(121,458 |
) | ||
Acquired assets adjustment to fair values |
|
(41,077 |
) |
|
(24,430 |
) | ||
Tax deductions for benefits to be paid in future periods |
|
(132,604 |
) |
|
(104,807 |
) | ||
Other |
|
(47,747 |
) |
|
(43,408 |
) | ||
|
|
|
|
|
| |||
Total deferred tax liabilities |
|
(348,640 |
) |
|
(294,103 |
) | ||
|
|
|
|
|
| |||
Net deferred tax asset |
$ |
62,441 |
|
$ |
52,552 |
| ||
|
|
|
|
|
|
Shares (In thousands) |
Weighted Average Price per Share | |||||
Outstanding, February 28, 1998 |
8,378 |
|
$ |
15.67 | ||
Granted |
2,377 |
|
|
23.74 | ||
Exercised |
(2,487 |
) |
|
14.98 | ||
Canceled and forfeited |
(352 |
) |
||||
|
|
|||||
Outstanding, February 27, 1999 |
7,916 |
|
|
18.26 | ||
Richfood acquisition |
1,030 |
|
|
24.30 | ||
Granted |
3,458 |
|
|
28.73 | ||
Exercised |
(562 |
) |
|
14.76 | ||
Canceled and forfeited |
(100 |
) |
||||
|
|
|||||
Outstanding, February 26, 2000 |
11,742 |
|
|
22.01 | ||
Granted |
4,243 |
|
|
15.15 | ||
Exercised |
(509 |
) |
|
15.72 | ||
Canceled and forfeited |
(1,066 |
) |
||||
|
|
|||||
Outstanding, February 24, 2001 |
14,410 |
|
$ |
20.26 | ||
|
|
|
|
Restated 2001 |
Restated 2000 |
1999 | |||||||
(In thousands, except per
share amounts) | |||||||||
Net earnings |
|||||||||
As reported |
$ |
72,870 |
$ |
241,690 |
$ |
191,338 | |||
Pro forma |
|
64,976 |
|
236,130 |
|
185,951 | |||
Earnings per sharediluted |
|||||||||
As reported |
$ |
0.55 |
$ |
1.86 |
$ |
1.57 | |||
Pro forma |
|
0.49 |
|
1.82 |
|
1.52 | |||
|
|
|
|
|
|
2001 |
2000 |
1999 | |||||||
Assumptions |
|||||||||
Dividend yield |
|
2.00% |
|
2.00% |
|
1.99% | |||
Risk free interest rate |
|
4.83% |
|
6.57% |
|
5.27% | |||
Expected life |
|
5 years |
|
5 years |
|
4 years | |||
Expected volatility |
|
30.40% |
|
21.97% |
|
19.33% | |||
Estimated fair value of options granted per share |
$ |
4.37 |
$ |
6.20 |
$ |
4.62 |
Restated 2001 |
Restated 2000 |
1999 | |||||||
(In thousands, except per
share amounts) | |||||||||
Earnings per share-basic |
|||||||||
Income available to common shareholders |
$ |
72,870 |
$ |
241,690 |
$ |
191,338 | |||
Weighted average shares outstanding |
|
132,251 |
|
129,162 |
|
120,376 | |||
Earnings per sharebasic |
$ |
0.55 |
$ |
1.87 |
$ |
1.59 | |||
Earnings per share-diluted |
|||||||||
Income available to common shareholders |
$ |
72,870 |
$ |
241,690 |
$ |
191,338 | |||
Weighted average shares outstanding |
|
132,251 |
|
129,162 |
|
120,376 | |||
Dilutive impact of options outstanding |
|
578 |
|
928 |
|
1,585 | |||
|
|
|
|
|
| ||||
Weighted average shares and potential dilutive shares outstanding |
|
132,829 |
|
130,090 |
|
121,961 | |||
Earnings per share-diluted |
$ |
0.55 |
$ |
1.86 |
$ |
1.57 | |||
|
|
|
|
|
|
Pension Benefits |
Other Benefits |
|||||||||||||||
February 24, 2001 |
February 26, 2000 |
February 24, 2001 |
February 26, 2000 |
|||||||||||||
(In thousands) |
||||||||||||||||
CHANGE IN BENEFIT OBLIGATION |
||||||||||||||||
Benefit obligation at beginning of year |
$ |
379,154 |
|
$ |
321,693 |
|
$ |
72,061 |
|
$ |
74,315 |
| ||||
Acquisitions |
|
|
|
|
56,700 |
|
|
|
|
|
|
| ||||
Service cost |
|
16,217 |
|
|
15,991 |
|
|
2,000 |
|
|
2,040 |
| ||||
Interest cost |
|
28,859 |
|
|
23,657 |
|
|
5,407 |
|
|
4,915 |
| ||||
Plan amendments |
|
319 |
|
|
|
|
|
|
|
|
|
| ||||
Actuarial loss (gain) |
|
11,174 |
|
|
(22,304 |
) |
|
11,736 |
|
|
(5,910 |
) | ||||
Benefits paid |
|
(23,206 |
) |
|
(16,583 |
) |
|
(4,958 |
) |
|
(3,299 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Benefit obligation at end of year |
$ |
412,517 |
|
$ |
379,154 |
|
$ |
86,246 |
|
$ |
72,061 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
CHANGE IN PLAN ASSETS |
||||||||||||||||
Fair value of plan assets at beginning of year |
$ |
392,374 |
|
$ |
284,767 |
|
$ |
|
|
$ |
|
| ||||
Acquisitions |
|
|
|
|
81,300 |
|
|
|
|
|
|
| ||||
Actual return on plan assets |
|
27,897 |
|
|
33,484 |
|
|
|
|
|
|
| ||||
Company contributions |
|
12,620 |
|
|
9,406 |
|
|
2,650 |
|
|
3,299 |
| ||||
Plan participants contributions |
|
|
|
|
|
|
|
4,958 |
|
|
2,319 |
| ||||
Benefits paid |
|
(23,206 |
) |
|
(16,583 |
) |
|
(7,608 |
) |
|
(5,618 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fair value of plan assets at end of year |
$ |
409,685 |
|
$ |
392,374 |
|
$ |
|
|
$ |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
RECONCILIATION OF PREPAID (ACCRUED) COST |
||||||||||||||||
Funded status |
$ |
(2,832 |
) |
$ |
13,220 |
|
$ |
(86,246 |
) |
$ |
(72,061 |
) | ||||
Accrued contribution |
|
3,264 |
|
|
3,230 |
|
|
|
|
|
|
| ||||
Unrecognized net loss |
|
32,145 |
|
|
10,406 |
|
|
21,621 |
|
|
10,052 |
| ||||
Unrecognized prior service cost |
|
(306 |
) |
|
(783 |
) |
|
(1,164 |
) |
|
(1,435 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Prepaid (accrued) pension cost |
$ |
32,271 |
|
$ |
26,073 |
|
$ |
(65,789 |
) |
$ |
(63,444 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits |
Other Benefits |
|||||||||||||||||||||||
2001 |
2000 |
1999 |
2001 |
2000 |
1999 |
|||||||||||||||||||
(In thousands) |
||||||||||||||||||||||||
NET BENEFIT COSTS FOR THE FISCAL YEAR |
||||||||||||||||||||||||
Service cost |
$ |
16,217 |
|
$ |
15,991 |
|
$ |
12,916 |
|
$ |
2,000 |
|
$ |
2,040 |
|
$ |
1,750 |
| ||||||
Interest cost |
|
28,859 |
|
|
23,657 |
|
|
20,638 |
|
|
5,407 |
|
|
4,915 |
|
|
4,895 |
| ||||||
Expected return on plan assets |
|
(38,231 |
) |
|
(31,928 |
) |
|
(25,634 |
) |
|
|
|
|
|
|
|
|
| ||||||
Amortization of: |
||||||||||||||||||||||||
Unrecognized net loss |
|
|
|
|
192 |
|
|
2 |
|
|
167 |
|
|
509 |
|
|
362 |
| ||||||
Unrecognized prior service cost |
|
(159 |
) |
|
(187 |
) |
|
(72 |
) |
|
(271 |
) |
|
(262 |
) |
|
(262 |
) | ||||||
Unrecognized net obligation |
|
(306 |
) |
|
63 |
|
|
152 |
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net benefit costs for the fiscal year |
$ |
6,380 |
|
$ |
7,788 |
|
$ |
8,002 |
|
$ |
7,303 |
|
$ |
7,202 |
|
$ |
6,745 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated Fiscal Year (52
Weeks) Ended February 24, 2001 | ||||||||||||||||
First (16 wks) |
Second (12 wks) |
Third (12 wks) |
Fourth (12 wks) |
Year (52 wks)
| ||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales |
$ |
6,953,393 |
$ |
5,333,823 |
$ |
5,420,238 |
$ |
5,486,825 |
|
$ |
23,194,279 | |||||
Gross profit |
|
744,068 |
|
590,991 |
|
582,305 |
|
626,584 |
|
|
2,543,948 | |||||
Net earnings |
|
67,376 |
|
55,605 |
|
46,136 |
|
(96,247 |
) |
|
72,870 | |||||
Net earnings per common share-diluted |
|
.51 |
|
.42 |
|
.35 |
|
(.73 |
) |
|
.55 | |||||
Dividends declared per common share |
$ |
.1350 |
$ |
.1375 |
$ |
.1375 |
$ |
.1375 |
|
$ |
.5475 | |||||
Weighted average shares-diluted |
|
133,026 |
|
133,096 |
|
132,733 |
|
132,404 |
|
|
132,829 | |||||
|
|
|
|
|
|
|
|
|
|
|
Restated Fiscal Year (52
Weeks) Ended February 26, 2000 | |||||||||||||||
First (16 wks) |
Second (12 wks) |
Third (12 wks) |
Fourth (12 wks) |
Year (52 wks)
| |||||||||||
(In thousands, except per share data) | |||||||||||||||
Net sales |
$ |
5,289,720 |
$ |
4,145,775 |
$ |
5,361,732 |
$ |
5,541,852 |
$ |
20,339,079 | |||||
Gross profit |
|
542,694 |
|
447,504 |
|
581,456 |
|
654,068 |
|
2,225,722 | |||||
Net earnings |
|
66,643 |
|
45,068 |
|
58,502 |
|
71,477 |
|
241,690 | |||||
Net earnings per common share-diluted |
|
.55 |
|
.36 |
|
.42 |
|
.52 |
|
1.86 | |||||
Dividends declared per common share |
$ |
.1325 |
$ |
.1350 |
$ |
.1350 |
$ |
.1350 |
$ |
.5375 | |||||
Weighted average shares-diluted |
|
120,769 |
|
123,682 |
|
140,469 |
|
138,545 |
|
130,090 | |||||
|
|
|
|
|
|
|
|
|
|
Fiscal Year (52 Weeks) Ended February 24, 2001 |
First (16
wks) |
Second (12
wks) |
Third (12
wks) |
Fourth (12
wks) |
Year (52 wks)
|
|||||||||||||||
Increase (Decrease) |
||||||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||||||
Gross profit |
$ |
(4,204 |
) |
$ |
(2,746 |
) |
$ |
(2,233 |
) |
$ |
(5,584 |
) |
$ |
(14,767 |
) | |||||
Net earnings |
|
(2,589 |
) |
|
(1,691 |
) |
|
(1,375 |
) |
|
(3,440 |
) |
|
(9,095 |
) | |||||
Net earnings per common sharediluted |
|
(0.02 |
) |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.03 |
) |
|
(0.07 |
) | |||||
Fiscal Year (52 Weeks) Ended February 26, 2000 |
First (16
wks) |
Second (12 wks) |
Third (12
wks) |
Fourth (12
wks) |
Year (52 wks)
|
|||||||||||||||
Increase (Decrease) |
||||||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||||||
Gross profit |
$ |
(129 |
) |
$ |
(682 |
) |
$ |
(250 |
) |
$ |
(1,000 |
) |
$ |
(2,061 |
) | |||||
Net earnings |
|
(78 |
) |
|
(414 |
) |
|
(152 |
) |
|
(607 |
) |
|
(1,251 |
) | |||||
Net earnings per common sharediluted |
|
No change |
|
|
(0.01 |
) |
|
No change |
|
|
No change |
|
|
(0.01 |
) |
COLUMN A |
COLUMN B |
COLUMN C |
COLUMN D |
COLUMN E | |||||||
Description |
Balance at beginning of
year |
Additions |
Deductions |
Balance at end of
year | |||||||
Allowance for doubtful accounts: |
|||||||||||
Year ended: |
|||||||||||
February 24, 2001 |
30,399,000 |
12,307,000 |
|
11,802,000 |
(B) |
$ |
30,904,000 | ||||
February 26, 2000 |
18,983,000 |
17,380,000 |
(A) |
5,964,000 |
(B) |
|
30,399,000 | ||||
February 27, 1999 |
13,415,000 |
10,150,000 |
|
4,582,000 |
(B) |
|
18,983,000 | ||||
Allowance for notes receivable accounts: |
|||||||||||
Year ended: |
|||||||||||
February 24, 2001 |
7,500,000 |
10,800,000 |
|
8,000,000 |
|
$ |
10,300,000 | ||||
February 26, 2000 |
|
7,500,000 |
|
|
|
|
7,500,000 | ||||
February 27, 1999 |
|
|
|
|
|
|
|
(A) |
Includes $7.5 million for accounts of companies acquired. |
(B) |
Balance consists of accounts determined to be uncollectible and charged against reserves, net of collection on accounts previously charged off.
|
Exhibit Number |
Exhibit | |
12.1. |
Ratio of Earnings to Fixed Charges. |