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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the fiscal year ended December 30, 1995
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 for the transition period from
______________ to ____________
Commission File Number 0-981
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PUBLIX SUPER MARKETS, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Florida 59-0324412
- ------------------------ ------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
1936 George Jenkins Boulevard
Lakeland, Florida 33801
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (941) 688-1188
--------------
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
None
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
Common Stock $1.00 Par Value
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of Registrant's knowledge, in definitive proxy
or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. (X)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
--------------- ----------------
The aggregate market value of the voting stock held by non-affiliates
of the Registrant as of March 15, 1996 was approximately
$2,200,549,106.
The number of shares of Registrant's common stock outstanding as of
March 15, 1996 was 224,576,226.
DOCUMENTS INCORPORATED BY REFERENCE
Pages 2 through 8 of Proxy Statement solicited for the 1996 Annual
Meeting of Stockholders to be held on May 14, 1996 is incorporated by
reference in Items 10, 11 and 13 of Part III hereof.
PART I
Item 1. Business
Publix Super Markets, Inc. (the "Company") is based in Lakeland,
Florida and was incorporated in Florida on December 27, 1921. The
Company is in the business of operating retail food supermarkets in
Florida, Georgia and South Carolina.
The Company's supermarkets sell groceries, dairy, produce, deli,
bakery, meat, seafood, housewares and health and beauty care items.
In addition, some stores have pharmacy, photo and floral departments.
The Company's lines of merchandise include a variety of
nationally advertised and private label brands, as well as unbranded
merchandise such as produce, meat and seafood. Private label items
are produced in the Company's manufacturing facilities or are
manufactured for the Company by outside suppliers.
The Company manufactures dairy, bakery and deli products. The
Company's dairy plants are located in Lakeland and Deerfield Beach,
Florida, and Lawrenceville, Georgia. The bakery and deli plants are
located in Lakeland, Florida. The Company receives the food and non-
food items it distributes from many sources throughout the United
States. These products are generally available in sufficient
quantities to enable the Company to adequately satisfy its customers.
The Company believes that its sources of supply of these products and
raw materials used in manufacturing are adequate for its needs and
that it is not dependent upon a single or relatively few suppliers.
The Company operated 508 supermarkets at the end of 1995,
compared with 470 at the beginning of the year. In 1995, 44 stores
were opened, six stores were closed, and 14 stores were expanded or
remodeled. The net increase in square footage was 2.0 million or 9.8%
since 1994. The Company entered the Georgia market in 1991 and the
South Carolina market in 1993. At the end of 1995, the Company had
441 stores located in Florida, 56 located in Georgia and 11 located in
South Carolina. The Company has announced plans to open stores in
Alabama beginning in 1996.
As of year end, the Company had eight stores under construction
in Florida, 15 in Georgia, two in South Carolina and two in Alabama.
During 1995, the Company completed construction of a new distribution
center and dairy processing plant in Lawrenceville, Georgia.
The Company is engaged in a highly competitive industry.
Competition, based primarily on price, quality of goods and service,
convenience and product mix, is with several national and regional
chains, independent stores and mass merchandisers throughout its
market areas. The Company anticipates continued competitor format
innovation and location additions in 1996.
The influx of winter residents to Florida and increased purchases
of food during the traditional Thanksgiving and Christmas holidays
typically results in seasonal sales increases between November and
April of each year.
The Company has experienced no significant changes in the kinds
of products sold or in its methods of distribution since the beginning
of the fiscal year.
The Company had approximately 95,000 employees at the end of
1995, compared with 90,000 at the beginning of the year. Of this
total, approximately 60,000 at the end of 1995 and 58,000 at the end
of 1994 were not full-time employees.
The Company's research and development expenses are
insignificant.
Compliance by the Company with Federal, state and local
environmental protection laws during 1995 had no material effect upon
capital expenditures, earnings or the competitive position of the
Company.
Item 2. Properties
At year end, the Company operated approximately 22.5 million
square feet of retail space. The Company's stores vary in size.
Current store prototypes range from 27,000 to 65,000 square feet.
Stores are often located in strip shopping centers where the Company
is the anchor tenant.
The majority of the Company's retail stores are leased.
Substantially all of these leases will expire during the next 20
years. However, in the normal course of business, it is expected that
the leases will be renewed or replaced by leases on other properties.
At 43 locations both the building and land are owned and at 26 other
locations the building is owned while the land is leased.
The Company supplies its retail stores from eight distribution
centers located in Lakeland, Miami, Jacksonville, Sarasota, Orlando,
Deerfield Beach and Boynton Beach, Florida, and Lawrenceville,
Georgia.
With the exception of a portion of the Miami distribution
facility, the Company's corporate offices, distribution facilities and
manufacturing plants are owned with no outstanding debt.
All of the Company's properties are well maintained and in good
operating condition, and suitable and adequate for operating its
business.
Item 3. Legal Proceedings
A notice of charge (the "Charge") was issued by the Equal
Employment Opportunity Commission (the "EEOC") on March 22, 1992, In
the Matter of: Kemp v. Publix Super Markets, Inc., Charge No. 150-92-1508,
alleging that the Company had and was engaged in violations of
Title VII of the Federal Civil Rights Act by discriminating against
women with respect to job assignments and promotions because of their
sex. The Charge was subsequently expanded to include allegations of
race discrimination.
A purported class action was filed against the Company on July 19,
1995 in the Federal District Court for the Middle District of
Florida, Tampa Division, Case No. 95-1162-Civ-T, by Melodee
Shores and seven other present or former employees of the Company,
individually and on behalf of all other persons similarly situated
(the "Shores case"). Four additional named plaintiffs have been added
to the suit. In their Complaint, the plaintiffs allege that the
Company has and is currently engaged in a policy and pattern or
practice of gender-based discriminatory treatment of female employees
with respect to job assignments, promotional opportunities, management
positions, equal pay, full-time status, bonuses, and other benefits
and conditions of employment, all in violation of Title VII of the
Federal Civil Rights Act, as well as the Florida Civil Rights Act of
1992. The plaintiffs seek, among other relief, certification of the
suit as a class action, a declaratory judgment that the Company's
practices are unlawful, back pay and other compensatory damages,
exemplary and punitive damages, and injunctive relief against future
improper conduct.
On March 12, 1996, the Court certified a class comprised of all
female employees of the Company who from May 22, 1991 (Florida and
South Carolina operations) or from October 19, 1991 (Georgia
operations) to the date of trial have worked, are working or will work
in the Company's retail operations. Expressly excluded are females
who have worked only in the Company's pharmacy operations.
In January 1996, the Court granted a motion filed by the EEOC to
intervene in the Shores case, but limited the intervention to the
issues raised by the original plaintiffs. Under its Intervenor's
Complaint, the EEOC seeks to correct what it alleges to be the
Company's unlawful employment practices on the basis of sex and
requests that the Court, among other things, grant injunctive relief,
order the Company to provide back pay and compensation for
nonpecuniary losses resulting from the alleged unlawful practices and
order the Company to pay punitive damages.
Intervention by the EEOC in the Shores case does not end the
EEOC's separate investigation under the EEOC Charge, at least with
respect to allegations of race discrimination, allegations of
discrimination against unsuccessful applicants and other matters not
involved in the Shores case. The Charge covers such employment
practices by the Company in the State of Florida as a whole.
The Company denies the allegations contained in the EEOC Charge
and in the complaint in the Shores case, and intends to continue to
vigorously defend these matters. The Company is unable, at this time,
to estimate with any degree of certainty the potential losses that
might result from an adverse decision in these matters. Accordingly,
no provision for any potential liability has been made in the
Company's financial statements.
The Company is also a party in various other legal claims and
actions considered in the normal course of business. Management
believes that the ultimate disposition of these matters will not have
a material effect on the Company's liquidity, results of operations or
financial condition.
Item 4. Submission of Matters to a Vote of Security Holders
None
EXECUTIVE OFFICERS OF THE COMPANY
Served as
Nature of Family Officer of
Relationship Company
Name Age Position Between Officers Since
- ---- --- -------- ---------------- -----
Howard M. Jenkins 44 Chairman of Cousin of 1976
the Board and Charles H.Jenkins,
Chief Executive Jr., uncle of
Officer W. Edwin Crenshaw
and brother-in-law
of Hoyt R. Barnett
Charles H. Jenkins, Jr. 52 Chairman of the Cousin of 1974
Executive Committee Howard M. Jenkins
and cousin of
W. Edwin Crenshaw
W. Edwin Crenshaw 45 President Nephew of 1990
Howard M. Jenkins
and cousin of
Charles H. Jenkins,
Jr.
William H. Vass 46 Executive 1986
Vice President
Hoyt R. Barnett 52 Executive Brother-in-law of 1977
Vice President Howard M. Jenkins
Jesse L. Benton 53 Vice President 1988
S. Keith Billups 63 Secretary 1968
Bennie F. Brown 54 Vice President 1992
R. Scott Charlton 37 Vice President 1992
William R. Curry 55 Vice President 1990
Carolyn C. Day 50 Assistant Secretary 1992
Glenn J. Eschrich 51 Vice President 1995
M. Clayton Hollis, Jr. 39 Vice President 1994
Mark R. Irby 40 Vice President 1989
Tina P. Johnson 36 Vice President 1990
and Treasurer
James J. Lobinsky 56 Vice President 1992
Thomas M. McLaughlin 45 Vice President 1994
Sharon A. Miller 52 Assistant Secretary 1992
Robert H. Moore 53 Vice President 1994
EXECUTIVE OFFICERS OF THE COMPANY
Served as
Nature of Family Officer of
Relationship Company
Name Age Position Between Officers Since
Thomas M. O'Connor 48 Vice President 1992
David P. Phillips 36 Vice President 1990
and Controller
James H. Rhodes II 51 Vice President 1995
Daniel M. Risener 55 Vice President 1985
Edward T. Shivers 56 Vice President 1985
James F. Slappey 53 Vice President 1992
The terms of all officers expire at the annual meeting of the Company
in May 1996.
Name Business Experience During Last Five Years
- ---- ------------------------------------------
Howard M. Jenkins Chairman of the Board and Chief Executive Officer of the
Company.
Charles H. Jenkins, Jr. Chairman of the Executive Committee of the
Company.
W. Edwin Crenshaw Vice President of the Company to January 1994, Executive
Vice President to January 1996, President thereafter.
William H. Vass Vice President and Treasurer of the Company to November
1992, Executive Vice President and Trustee of the
ESOT thereafter.
Hoyt R. Barnett Executive Vice President of the Company to March 1992,
Executive Vice President and Trustee of the Profit Sharing
Plan thereafter.
Jesse L. Benton Vice President of the Company.
S. Keith Billups Secretary of the Company.
Bennie F. Brown Director of Meat Operations - Lakeland Division of the
Company to January 1992, Vice President thereafter.
R. Scott Charlton Director of Manufacturing of the Company to January 1992,
Vice President thereafter.
William R. Curry Vice President of the Company.
Carolyn C. Day Capital Stock Registrar and Transfer Agent of the Company
to July 1992, Capital Stock Registrar and Transfer Agent
and Assistant Secretary thereafter.
Glenn J. Eschrich Assistant Director of Information Systems of the Company
to February 1992, Director of Strategy Support to March
1995, Vice President thereafter.
M. Clayton Hollis, Jr. Director of Government Relations of the Company to June
1994, Vice President thereafter.
Mark R. Irby Vice President of the Company.
Tina P. Johnson Assistant Secretary of the Company to September 1992,
Treasurer to January 1995, Treasurer and Trustee of the
401(k) Plan - Publix Stock Fund to March 1996, Vice
President, Treasurer and Trustee of the 401(k) Plan -
Publix Stock Fund thereafter.
James J. Lobinsky Corporate Director of General Merchandise of the Company
to January 1992, Vice President thereafter.
Thomas M. McLaughlin Assistant Director of Retail Operations - Lakeland
Division of the Company to January 1992, Director of
Retail Operations - Lakeland Division to January 1994,
Regional Director of Retail Operations - Lakeland
Division to June 1994, Vice President thereafter.
Name Business Experience During Last Five Years
- ---- -------------------------------------------
Sharon A. Miller Director of Merchandise Accounting of the Company to May
1991, Director of Administration to July 1992, Director
of Administration and Assistant Secretary thereafter.
Robert H. Moore Director of Retail Operations - Lakeland Division of the
Company to January 1992, Director of Retail Operations -
Atlanta Division to January 1994, Vice President
thereafter.
Thomas M. O'Connor Director of Distribution - Miami Division of the Company
to November 1992, Vice President thereafter.
David P. Phillips Controller of the Company to March 1996, Vice President
and Controller thereafter.
James H. Rhodes II Director of Human Resources of the Company to April 1995,
Vice President thereafter.
Daniel M. Risener Vice President of the Company.
Edward T. Shivers Vice President of the Company.
James F. Slappey Director of Warehousing and Distribution - Lakeland
Division of the Company to November 1992, Vice President
thereafter.
PART II
Item 5. Market for the Company's Common Stock and Related Stockholder Matters
(a) Market Information
Substantially all transactions of the Company's common stock have
been among the Company, its employees, former employees, their
families and various benefit plans established for the Company's
employees. The market price of the Company's common stock is
determined by the Board of Directors based upon appraisals prepared
by an independent appraiser. The market price for 1995 was $13.75
per share until March 1, 1995, when the price increased to $14.25
per share. In the second quarter the price remained unchanged at
$14.25 per share. In the third quarter the price increased to
$15.50 per share and in the fourth quarter the price increased to
$16.25 per share. The market price for 1994 was $11.00 per share
until March 1, 1994, when the price increased to $12.25 per share.
In the second quarter the price increased to $13.00 per share. In
the third quarter the price remained unchanged at $13.00 per share
and in the fourth quarter the price increased to $13.75 per share.
(b) Approximate Number of Equity Security Holders
As of February 28, 1996, the approximate number of holders of record
of the Company`s common stock was 64,000.
(c) Dividends
The Company paid cash dividends of $.11 per share of common stock in
1995 and $.09 per share in 1994. Payment of dividends is within the
discretion of the Company's Board of Directors and depends on, among
other factors, earnings, capital requirements and the operating and
financial condition of the Company. It is expected that comparable
cash dividends will be paid in the future.
Item 6. Five Year Summary of Selected Financial Data
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
Sales:
Sales $9,393,021 8,664,795 7,472,652 6,664,309 6,139,731
Percent increase 8.4% 16.0% 12.1% 8.5% 6.6%
Comparable store sales
percent increase 2.8% 5.2% 6.4% 4.6% 2.3%
Earnings:
Gross profit $2,124,036 1,952,043 1,638,044 1,479,788 1,391,255
Earnings before income
tax expense and
cumulative effect of
changes in accounting
principles $ 381,500 378,300 288,709 253,677 240,063
Net earnings before
cumulative effect of
changes in accounting
principles $ 242,141 238,567 183,811 166,455 158,044
Net earnings $ 242,141 238,567 180,317 166,455 158,044
Net earnings as a
percent of sales 2.58% 2.75% 2.41% 2.50% 2.57%
Common stock:
Weighted average
shares outstanding* 225,852,938 231,514,459 236,249,110 239,248,081 242,872,610
Net earnings per
common share,
based on weighted
average shares
outstanding* $ 1.07 1.03 .76 .70 .65
Dividends per share* $ .11 .09 .08 .08 .07
Financial data:
Capital expenditures $ 256,629 374,190 320,167 202,597 158,983
Working capital $ 232,570 159,971 137,160 241,191 271,376
Current ratio 1.31 1.24 1.23 1.48 1.62
Total assets $2,559,365 2,302,336 2,054,315 1,791,247 1,623,720
Long-term debt $ 1,765 3,031 4,930 6,938 10,679
Stockholders' equity $1,614,717 1,473,154 1,308,009 1,168,091 1,068,463
Other:
Number of stores 508 470 425 400 389
NOTE: Dollars are in thousands, except per share amounts.
Fiscal year 1994 includes 53 weeks. All other years include 52 weeks.
* Restated to give retroactive effect for 5-for-1 stock split in July 1992.
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Business Environment
As of December 30, 1995, the Company operated 508 retail grocery
stores representing approximately 22.5 million square feet of retail
space. Historically, the Company's primary competition has been from
national and regional chains and smaller independents located
throughout its market areas. The Company has continued to experience
increased competition from mass merchandisers. The products offered by
these retailers include many of the same items sold by the Company.
At the end of 1995, the Company had 441 stores located in Florida,
56 located in Georgia and 11 located in South Carolina. The Company
opened its first store in Georgia during the fourth quarter of 1991;
its first store in South Carolina in the fourth quarter of 1993; and
has announced plans to open its first store in Alabama during 1996.
The Company opened 20 stores in Florida, 19 stores in Georgia and five
stores in South Carolina during 1995. The Company intends to continue
to pursue vigorously new locations in Florida and other states.
Liquidity and Capital Resources
Operating activities continue to be the Company's primary source
of liquidity. Net cash provided by operating activities was
approximately $488.3 million in 1995, compared with $428.4 million in
1994 and $379.8 million in 1993. Working capital was approximately
$232.6 million as of December 30, 1995, as compared with $160.0 million
and $137.2 million as of December 31, 1994 and December 25, 1993,
respectively. Cash and cash equivalents aggregated approximately
$276.7 million as of December 30, 1995 as compared with $188.9 million
and $199.0 million as of December 31, 1994 and December 25, 1993,
respectively.
Capital expenditures totaled $256.6 million in 1995. These
expenditures were primarily incurred in connection with the opening of
44 new stores and remodeling or expanding 14 stores which added 2.2
million square feet. Construction was completed on a new distribution
center and dairy processing plant in Lawrenceville, Georgia. In
addition, the Company closed six stores. Capital expenditures totaled
$374.2 million in 1994. These expenditures were primarily incurred in
connection with the opening of 50 new stores and remodeling or
expanding 18 stores which added 2.6 million square feet. Construction
was completed on a new general merchandise warehouse in Lakeland,
Florida, and significant expenditures were incurred in the continued
construction of a new distribution center in Lawrenceville, Georgia.
In addition, the Company closed five stores. Capital expenditures
totaled $320.2 million in 1993. These expenditures were primarily
incurred in connection with the opening of 29 new stores and remodeling
or expanding 13 stores which added 1.6 million square feet.
Significant expenditures were also incurred in expanding the Deerfield
Beach, Florida facility, acquisition of a grocery warehouse in Orlando,
Florida and construction of a new general merchandise warehouse in
Lakeland, Florida and a new distribution center in Lawrenceville,
Georgia. In addition, the Company closed four stores.
The Company hopes to open as many as 40 stores in 1996. Although
real estate development is unpredictable, the Company's 1996 new store
growth represents a reasonable estimate of anticipated future growth.
Capital expenditures for 1996, primarily made up of new store
construction and the remodeling or expanding of several existing
stores, are expected to be approximately $225 million. This capital
program is subject to continuing change and review. The 1996 capital
expenditures are expected to be financed by internally generated funds
and current liquid assets. In the normal course of operations, the
Company replaces stores and closes unprofitable stores. The impact of
future store closings is not expected to be material.
The Company is self-insured, up to certain limits, for health
care, fleet liability, general liability and workers' compensation
claims. Reserves are established to cover estimated liabilities for
existing and anticipated claims based on actual experience including,
where necessary, actuarial studies. The Company has insurance
coverage for losses in excess of varying amounts. The provision for
self-insured reserves was $103.1 million, $89.6 million and $90.1
million in fiscal 1995, 1994 and 1993, respectively. The Company does
not believe its self-insurance program will have a material adverse
impact on its future liquidity, financial condition or results of
operations.
The Company has committed lines of credit totaling $100.0 million
and one uncommitted line of credit for $25.0 million. These lines are
reviewed annually by the banks. The interest rates for these lines
are at or below the prime rate. No amounts were outstanding on the
lines of credit as of December 30, 1995 or December 31, 1994.
Cash generated in excess of the amount needed for current
operations and capital expenditures is invested in short-term and long-
term investments. Short-term investments were approximately $74.3
million in 1995 compared with $77.2 million in 1994. Long-term
investments, primarily comprised of tax exempt bonds and preferred
stocks, were approximately $119.4 million in 1995 compared with $124.5
million in 1994. Management believes the Company's liquidity will
continue to be strong.
The Company currently repurchases common stock at the
stockholders' request in accordance with the terms of the Company's
Employee Stock Purchase Plan. The Company expects to continue to
repurchase its common stock, as offered by its stockholders from time
to time, at its then currently appraised value. However, such
purchases are not required and the Company retains the right to
discontinue them at any time.
Results of Operations
The Company's fiscal year ends on the last Saturday in December.
Fiscal years 1995 and 1993 included 52 weeks and fiscal year 1994
included 53 weeks.
Sales for fiscal 1995 were $9,393.0 million as compared with
$8,664.8 million in fiscal 1994, an 8.4% increase. On a comparative 52
week basis, the Company estimates that sales rose 10.3%. This
reflects an increase of $243.6 million or 2.8% in sales from stores
that were open for all of both years (comparable stores) and sales of
$653.7 million or 7.5% from the net impact of new and closed stores
since the beginning of 1994. Net new stores contributed an increase of
9.8% or approximately 2.0 million square feet in retail space in
fiscal 1995.
Sales for fiscal 1994 were $8,664.8 million as compared with
$7,472.7 million in fiscal 1993, a 16.0% increase. This reflects an
increase of $171.9 million or 2.3% in sales from an additional week
included in the 1994 fiscal year, $388.6 million or 5.2% in sales from
stores that were open for all of both years (comparable stores) and
sales of $631.6 million or 8.5% from the net impact of new and closed
stores since the beginning of 1993. Net new stores contributed an
increase of 13.3% or approximately 2.4 million square feet in retail
space in fiscal 1994.
Cost of merchandise sold including store occupancy, warehousing
and delivery expenses was approximately 77.4% of sales in 1995 as
compared with 77.5% and 78.1% in 1994 and 1993, respectively. In 1995
and 1994, cost of merchandise sold decreased as a percentage of sales
due to buying and merchandising efficiencies.
Operating and administrative expenses, as a percent of sales,
were 19.4%, 19.1% and 19.1% in 1995, 1994 and 1993, respectively. The
significant components of operating and administrative expenses are
payroll costs, employee benefits and depreciation.
In August 1993, the "Omnibus Budget Reconciliation Act of 1993"
became effective. The major provision of the new tax law affecting
the Company was the increase in the maximum corporate income tax rate
from 34% to 35%. This 1% increase in the tax rate was retroactive to
January 1, 1993. Therefore, in accordance with Financial Accounting
Standard No. 109, "Accounting for Income Taxes," the Company
recognized an additional $3.5 million income tax expense during fiscal
year 1993.
In recent years, the impact of inflation on the Company's food
prices has been lower than the overall increase in the Consumer Price
Index.
Accounting Standards
The Company adopted Financial Accounting Standard No. 115,
"Accounting for Certain Investments in Debt and Equity Securities," in
the first quarter of 1994. This Standard required the reporting of
certain securities at fair value except for those securities which the
Company has the positive intent and ability to hold to maturity. The
Company adopted the provisions of this Standard for investments held
as of, or acquired after, the beginning of fiscal 1994. The
cumulative effect of adopting the Standard as of the beginning of
fiscal 1994 was not material. In accordance with the Standard, prior
period financial statements were not restated to reflect the change in
accounting principle.
In March 1995, the Financial Accounting Standards Board issued
Financial Accounting Standard No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,"
effective for fiscal years beginning after December 15, 1995. This
Standard requires that long-lived assets and certain identifiable
intangibles held and used by an entity be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying
amount of the asset may not be recoverable. This Standard also
requires that long-lived assets and certain identifiable intangibles
to be disposed of be reported at the lower of carrying amount or fair
value less costs to sell. The Company has historically reserved for
losses related to the impairment of long-lived assets; therefore, the
adoption of this Standard will not materially affect the Company's
financial statements.
Item 8. Financial Statements and Supplemental Data
The Company's financial statements, together with the independent
auditors' report thereon, are included in the section following Part
IV of this report.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
None
PART III
Item 10. Directors, Executive Officers, Promoters and Control Persons of the
Registrant
Certain information concerning the directors of the Company is
incorporated by reference to pages 2 through 5 of the Proxy Statement
of the Company (1996 Proxy Statement) which the Company intends to
file no later than 120 days after its fiscal year end. Certain
information concerning the executive officers of the Company is set
forth in Part I under the caption "Executive Officers of the Company."
Item 11. Executive Compensation
Information regarding executive compensation is incorporated by
reference to pages 6 through 8 of the 1996 Proxy Statement.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The following table sets forth, as of March 15, 1996, the
information with respect to common stock ownership of all Directors,
including some who are 5% or more beneficial owners, and all Officers
and Directors as a group. Also, listed are others known by the
Company to own beneficially 5% or more of the shares of the Company's
common stock.
Amount and Nature Percent
Name of Beneficial Ownership (1) of Class
- ---- --------------------------- --------
Carol Jenkins Barnett 13,071,244 (2) 5.82
Hoyt R. Barnett 24,694,809 (3) 11.00
W. Edwin Crenshaw 643,571 *
Mark C. Hollis 1,528,288 (4) *
Charles H. Jenkins, Jr. 1,898,822 *
Charles H. Jenkins, Sr. 2,504,144 1.12
Howard M. Jenkins 13,727,461 (5) 6.11
Tina P. Johnson 1,003,436 (6) *
E. V. McClurg 1,991,132 *
William H. Vass 31,374,559 (7) 13.97
All Officers and Directors
as a group (29 individuals) 93,200,160 (8) 41.50
All Other Beneficial Owners:
Publix Super Markets, Inc.
Profit Sharing Plan and Trust 23,278,750 10.37
Publix Super Markets, Inc.
Employee Stock Ownership Plan
and Trust 31,341,749 13.96
Nancy E. Jenkins 14,703,305 6.55
*Shares represent less than 1% of class.
Note references are explained on the following page.
(1) As used in the table on the preceding page, "beneficial
ownership" means the sole or shared voting or investment power
with respect to the Company's common stock. Holdings of officers
include shares allocated to their individual accounts in the
Company's Employee Stock Ownership Plan, over which each officer
exercises sole voting power and shared investment power. In
accordance with the beneficial ownership regulations, the same
shares of common stock may be included as beneficially owned by
more than one individual or entity. The address for all
beneficial owners is 1936 George Jenkins Boulevard, Lakeland,
Florida 33801.
(2) Includes 1,290,323 shares which are also shown as beneficially
owned by Carol Jenkins Barnett's husband, Hoyt R. Barnett, but
excludes all other shares beneficially owned by Hoyt R. Barnett,
as to which Carol Jenkins Barnett disclaims beneficial ownership.
(3) Hoyt R. Barnett is Trustee of the Profit Sharing Plan which is
the record owner of 23,278,750 shares of common stock over which
he exercises sole voting and investment power. Total shares
beneficially owned include 1,290,323 shares also shown as
beneficially owned by his wife, Carol Jenkins Barnett, but
exclude all other shares of common stock beneficially owned by
Carol Jenkins Barnett, as to which Hoyt R. Barnett disclaims
beneficial ownership.
(4) All shares are owned in a family trust over which Mark C. Hollis
is Co-Trustee with his wife. As Co-Trustee, Mark C. Hollis has
shared voting and investment power for these shares. The two
family trusts for which Mark C. Hollis was Co-Trustee with
Peoples Bank of Lakeland were terminated on August 29, 1995 and
shares were distributed to the beneficiaries of the trusts.
Therefore, certain shares which were the subject of the trusts
are no longer reflected as beneficially owned by Mark C. Hollis.
(5) Howard M. Jenkins has sole voting and sole investment power over
6,090,591 shares of common stock which are held directly, sole
voting and sole investment power over 162,103 shares which are
held indirectly and shared voting and shared investment power
over 7,457,073 shares which are held indirectly. The Voting
Trust Agreement for which Howard M. Jenkins was Voting Trustee
was terminated on June 9, 1995; and therefore certain shares
which were the subject of the Voting Trust are no longer
reflected as beneficially owned by Howard M. Jenkins.
(6) Tina P. Johnson is Trustee of the 401(k) Plan - Publix Stock Fund
which is the record owner of 959,225 shares of common stock over
which she has sole voting and shared investment power.
(7) William H. Vass is Trustee of the Employee Stock Ownership Plan
(ESOT) which is the record owner of 31,341,749 shares of common
stock over which he has shared investment power. As Trustee,
William H. Vass exercises sole voting power over 614,024 shares
in the ESOT because such shares have not been allocated to
participants' accounts. William H. Vass will vote ESOT shares as
instructed by participants and all ESOT shares for which no
instruction is received.
(8) Includes 55,579,724 shares of common stock owned by the Profit
Sharing Plan, ESOT and 401(k) Plan.
Item 13. Certain Relationships and Related Transactions
Information regarding certain relationships and related
transactions is incorporated by reference to pages 2 through 5 and 8
of the 1996 Proxy Statement.
PART IV
Item 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K
(a) Financial Statements and Schedule
The financial statements and schedule listed in the accompanying
Index to Financial Statements and Schedule are filed as part of
this Annual Report on Form 10-K.
(b) Reports on Form 8-K
The Company filed a report on Form 8-K dated December 5, 1995,
reporting the EEOC's filing of a Motion To Intervene and an
Intervener's Complaint as described in Part I, Item 3.
(c) Exhibits
3(a). Articles of Incorporation of the Company,
together with all amendments thereto are incorporated by
reference to the exhibits to the Annual Report of the
Company on Form 10-K for the year ended December 25, 1993.
3(b). By-laws of the Company are incorporated by
reference to the exhibits to the Annual Report of the
Company on Form 10-K, as amended, for the year ended
December 26, 1987.
9. Voting Trust Agreement dated September 12,
1986, between Howard M. Jenkins, Julia J. Fancelli, Nancy E.
Jenkins and David F. Jenkins, is incorporated by reference
to the exhibits to the Annual Report of the Company on Form
10-K for the year ended December 31, 1988.
Amendment to Voting Trust Agreement dated
September 12, 1986, between Howard M. Jenkins, Julia J.
Fancelli, Nancy E. Jenkins and David F. Jenkins, effective
March 8, 1990, is incorporated by reference to the exhibits
to the Annual Report of the Company on Form 10-K for the
year ended December 30, 1989.
Amendment to Voting Trust Agreement dated
September 12, 1986, between Howard M. Jenkins, Julia J.
Fancelli, Nancy E. Jenkins and David F. Jenkins, effective
June 14, 1991, is incorporated by reference to the exhibits
to the Annual Report of the Company on Form 10-K for the
year ended December 28, 1991.
Amendment to Voting Trust Agreement dated
September 12, 1986, between Howard M. Jenkins, Julia J.
Fancelli, Nancy E. Jenkins and David F. Jenkins, effective
November 3, 1992, is incorporated by reference to the
exhibits to the Annual Report of the Company on Form 10-K
for the year ended December 26, 1992.
Amendment to Voting Trust Agreement dated
September 12, 1986, between Howard M. Jenkins, Julia J.
Fancelli, Nancy E. Jenkins and David F. Jenkins, effective
February 26, 1993, is incorporated by reference to the
exhibits to the Annual Report of the Company on Form 10-K
for the year ended December 26, 1992.
Amendment to Voting Trust Agreement dated
September 12, 1986, between Howard M. Jenkins, Julia J.
Fancelli, Nancy E. Jenkins and David F. Jenkins, effective
March 1, 1994 is incorporated by reference to the exhibits
to the Annual Report of the Company on Form 10-K for the
year ended December 31, 1994.
Deed of Termination of Voting Trust Agreement
dated September 12, 1986, between Howard M. Jenkins, Julia
J. Fancelli, Nancy E. Jenkins and David F. Jenkins effective
June 9, 1995.
27. Financial Data Schedule for the year ended December 30, 1995.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Company has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
PUBLIX SUPER MARKETS, INC.
March 15, 1996 By: /s/ S. Keith Billups
---------------------------
S. Keith Billups
Secretary
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Company and in the capacities and on the dates
indicated.
Chairman of the Board, Chief
Executive Officer and Director
/s/ Howard M. Jenkins (Principal Executive Officer) March 15, 1996
- ---------------------------
Howard M. Jenkins
Vice Chairman of the
/s/ Mark C. Hollis Board and Director March 15, 1996
- ---------------------------
Mark C. Hollis
Chairman of the Executive
/s/ Charles H. Jenkins, Jr. Committee and Director March 15, 1996
- ---------------------------
Charles H. Jenkins, Jr.
/s/ W. Edwin Crenshaw President and Director March 15, 1996
- ---------------------------
W. Edwin Crenshaw
Executive Vice President
and Director
/s/ William H. Vass (Principal Financial Officer) March 15, 1996
- ---------------------------
William H. Vass
Executive Vice President
/s/ Hoyt R. Barnett and Director March 15, 1996
- ---------------------------
Hoyt R. Barnett
Vice President,
/s/ Tina P. Johnson Treasurer and Director March 15, 1996
- ---------------------------
Tina P. Johnson
Vice President and Controller
/s/ David P. Phillips (Principal Accounting Officer) March 15, 1996
- ---------------------------
David P. Phillips
PUBLIX SUPER MARKETS, INC.
Index to Financial Statements and Schedule
Independent Auditors' Report
Financial Statements:
Balance Sheets - December 30, 1995 and December 31, 1994
Statements of Earnings - Years ended December 30, 1995, December 31, 1994
and December 25, 1993
Statements of Stockholders' Equity - Years ended December 30, 1995,
December 31, 1994 and December 25, 1993
Statements of Cash Flows - Years ended December 30, 1995,
December 31, 1994 and December 25, 1993
Notes to Financial Statements
The following supporting schedule of Publix Super Markets, Inc.
for the years ended December 30, 1995, December 31, 1994 and
December 25, 1993 is submitted herewith:
Schedule:
II - Valuation and Qualifying Accounts
All other schedules are omitted as the required information is inapplicable
or the information is presented in the financial statements or related notes.
INDEPENDENT AUDITORS' REPORT
To the Stockholders of
Publix Super Markets, Inc.:
We have audited the financial statements of Publix Super Markets, Inc.
(the "Company") as listed in the accompanying index. In connection
with our audits of the financial statements, we also have audited the
financial statement schedule as listed in the accompanying index.
These financial statements and financial statement schedule are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial
statement schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Publix
Super Markets, Inc. as of December 30, 1995 and December 31, 1994 and
the results of its operations and its cash flows for each of the years
in the three-year period ended December 30, 1995 in conformity with
generally accepted accounting principles. Also in our opinion, the
related financial statement schedule, when considered in relation to
the basic financial statements taken as a whole, presents fairly, in
all material respects, the information set forth therein.
As discussed in note 1 of the notes to financial statements, the
Company changed its methods of accounting for certain investments in
debt and equity securities during 1994 and postretirement benefits and
income taxes during 1993.
KPMG PEAT MARWICK LLP
Tampa, Florida
February 28, 1996, except as to
Note 8(c), which is as
of March 12, 1996
PUBLIX SUPER MARKETS, INC.
Balance Sheets
December 30, 1995 and
December 31, 1994
Assets 1995 1994
------ ---- ----
(Amounts in thousands)
Current assets:
Cash and cash equivalents $ 276,700 188,885
Short-term investments 74,292 77,217
Trade receivables (principally due from
suppliers) 44,492 40,849
Merchandise inventories 542,886 480,876
Deferred tax assets 36,475 28,320
Prepaid expenses 3,269 1,767
---------- ----------
Total current assets 978,114 817,914
---------- ----------
Long-term investments 119,412 124,494
Investment in joint ventures 4,888 5,036
Other noncurrent assets 4,203 5,149
Property, plant and equipment:
Land 77,741 67,462
Buildings and improvements 547,647 477,203
Furniture, fixtures and equipment 1,599,133 1,420,663
Leasehold improvements 256,517 234,133
Construction in progress 59,167 122,499
---------- ----------
2,540,205 2,321,960
Less accumulated depreciation 1,087,457 972,217
---------- ----------
Net property, plant and equipment 1,452,748 1,349,743
---------- ----------
$2,559,365 2,302,336
========== ==========
See accompanying notes to financial statements.
PUBLIX SUPER MARKETS, INC.
Balance Sheets
December 30, 1995 and
December 31, 1994
Liabilities and Stockholders' Equity 1995 1994
------------------------------------ ---- ----
(Amounts in thousands)
Current liabilities:
Current installments of long-term debt $ 1,265 1,619
Accounts payable 500,399 442,939
Accrued expenses:
Salaries and wages 41,276 33,880
Contribution to retirement plans 67,348 66,768
Self-insurance reserves 58,442 49,295
Other 75,496 60,713
---------- ----------
Total accrued expenses 242,562 210,656
---------- ----------
Federal and state income taxes 1,318 2,729
---------- ----------
Total current liabilities 745,544 657,943
Long-term debt, excluding current installments 1,765 3,031
Deferred tax liabilities, net 103,707 78,168
Self-insurance reserves 60,435 59,710
Accrued postretirement benefit cost 33,197 30,330
---------- ----------
Total liabilities 944,648 829,182
Stockholders' equity:
Common stock of $1 par value. Authorized
300,000,000 shares; issued and outstanding
225,746,454 shares in 1995 and 231,585,497
shares in 1994 225,746 231,585
Additional paid-in capital 85,280 78,421
Reinvested earnings 1,303,287 1,165,128
---------- ----------
1,614,313 1,475,134
Unrealized gain (loss) on investment
securities available-for-sale, net 404 (1,980)
---------- ----------
Total stockholders' equity 1,614,717 1,473,154
Commitments and contingencies
---------- ----------
$2,559,365 2,302,336
========== ==========
See accompanying notes to financial statements.
PUBLIX SUPER MARKETS, INC.
Statements of Earnings
Years ended December 30, 1995, December 31, 1994
and December 25, 1993
1995 1994 1993
---- ---- ----
(Amounts in thousands,
except per share amounts)
Revenues:
Sales $9,393,021 8,664,795 7,472,652
Other income, net 77,685 77,693 81,317
---------- ---------- ----------
Total revenues 9,470,706 8,742,488 7,553,969
---------- ---------- ----------
Costs and expenses:
Cost of merchandise sold including
store occupancy, warehousing
and delivery expenses 7,268,985 6,712,752 5,834,608
Operating and administrative
expenses 1,819,792 1,650,768 1,429,540
Interest expense 429 668 1,112
---------- ---------- ----------
Total costs and expenses 9,089,206 8,364,188 7,265,260
---------- ---------- ----------
Earnings before income tax
expense and cumulative effect
of changes in accounting
principles 381,500 378,300 288,709
Income tax expense 139,359 139,733 104,898
---------- ---------- ----------
Net earnings before cumulative effect
of changes in accounting principles 242,141 238,567 183,811
Cumulative effect on prior years of
changes in accounting principles --- --- (3,494)
---------- ---------- ----------
Net earnings $ 242,141 238,567 180,317
========== ========== ==========
Net earnings per common share before
cumulative effect of changes in
accounting principles $ 1.07 1.03 .78
Cumulative effect on prior years
of changes in accounting
principles --- --- (.02)
---------- ---------- ----------
Net earnings per common share,
based on weighted average
shares outstanding $ 1.07 1.03 .76
========== ========= ==========
See accompanying notes to financial statements.
PUBLIX SUPER MARKETS, INC.
Statements of Stockholders' Equity
Years ended December 30, 1995, December 31, 1994
and December 25, 1993
Common Unrealized
stock gain (loss)
acquired on investment Total
Additional from securities stock-
Common paid-in Reinvested stock- available- holders'
stock capital earnings holders for-sale, net equity
----- ------- -------- ------- ------------- ------
(Amounts in thousands)
Balances at December 26, 1992 $237,864 71,003 859,224 --- --- 1,168,091
Net earnings for the year --- --- 180,317 --- --- 180,317
Cash dividends, $.08 per share --- --- (18,976) --- --- (18,976)
Contribution of 3,297,684 shares to ESOT --- (849) --- 37,772 --- 36,923
6,563,903 shares acquired from stockholders --- --- --- (74,860) --- (74,860)
Sale of 1,145,607 shares to stockholders 293 3,086 --- 13,135 --- 16,514
-------- ------ --------- ------- ------ ---------
Balances at December 25, 1993 238,157 73,240 1,020,565 (23,953) --- 1,308,009
Net earnings for the year --- --- 238,567 --- --- 238,567
Cash dividends, $.09 per share --- --- (20,782) --- --- (20,782)
Contribution of 3,306,417 shares to ESOT --- 5,181 --- 39,302 --- 44,483
9,255,992 shares acquired from stockholders --- --- --- (114,350) --- (114,350)
Sale of 1,498,300 shares to stockholders --- --- --- 19,207 --- 19,207
Change in valuation allowance --- --- --- --- (1,980) (1,980)
Retirement of 6,571,887 shares (6,572) --- (73,222) 79,794 --- ---
-------- ------ --------- ------- ------ ---------
Balances at December 31, 1994 231,585 78,421 1,165,128 --- (1,980) 1,473,154
Net earnings for the year --- --- 242,141 --- --- 242,141
Cash dividends, $.11 per share --- --- (25,250) --- --- (25,250)
Contribution of 3,369,603 shares to ESOT --- 6,859 --- 47,898 --- 54,757
11,196,418 shares acquired from stockholders --- --- --- (162,137) --- (162,137)
Sale of 1,987,772 shares to stockholders --- --- --- 29,668 --- 29,668
Change in valuation allowance --- --- --- --- 2,384 2,384
Retirement of 5,839,043 shares (5,839) --- (78,732) 84,571 --- ---
-------- ------ --------- ------- ------ ---------
Balances at December 30, 1995 $225,746 85,280 1,303,287 --- 404 1,614,717
======== ====== ========= ======= ====== =========
See accompanying notes to financial statements.
PUBLIX SUPER MARKETS, INC.
Statements of Cash Flows
Years ended December 30, 1995, December 31, 1994
and December 25, 1993
1995 1994 1993
---- ---- ----
(Amounts in thousands)
Cash flows from operating activities:
Cash received from customers $9,451,659 8,725,307 7,523,939
Cash paid to employees and suppliers (8,758,575) (8,102,577) (6,993,535)
Dividends and interest received 21,649 17,344 16,323
Interest paid (432) (763) (1,112)
Income taxes paid (124,884) (136,533) (93,583)
Payment for self-insured claims (93,250) (80,044) (68,210)
Other operating cash receipts 548 12,231 309
Other operating cash payments (8,376) (6,610) (4,303)
---------- --------- ---------
Net cash provided by operating
activities 488,339 428,355 379,828
---------- --------- ---------
Cash flows from investing activities:
Payment for property, plant and
equipment (256,629) (374,190) (320,167)
Proceeds from sale of property, plant
and equipment 3,559 1,500 4,750
Payment for investment securities -
available-for-sale (AFS) (241,414) (207,051) ---
Payment for investment securities -
held-to-maturity (HTM) --- (14,735) ---
Payment for investment securities --- --- (291,506)
Proceeds from sale and maturity of
investment securities - AFS 252,009 257,396 ---
Proceeds from sale and maturity of
investment securities - HTM --- 16,527 ---
Proceeds from sale of investment
securities --- --- 214,721
Investment in joint ventures 300 185 (656)
Other, net 990 116 (2,174)
--------- ---------- ----------
Net cash used in investing activities (241,185) (320,252) (395,032)
--------- ---------- ----------
Cash flows from financing activities:
Payment of long-term debt (1,620) (2,290) (1,950)
Proceeds from sale of common stock 29,668 19,207 16,514
Payment for acquisition of common stock (162,137) (114,350) (74,860)
Dividends paid (25,250) (20,782) (18,976)
--------- --------- ----------
Net cash used in financing activities (159,339) (118,215) (79,272)
--------- --------- ----------
Net increase (decrease) in cash and cash
equivalents 87,815 (10,112) (94,476)
Cash and cash equivalents at beginning
of year 188,885 198,997 293,473
---------- ---------- ----------
Cash and cash equivalents at end of year $ 276,700 188,885 198,997
========== ========== ==========
See accompanying notes to financial statements. (Continued)
PUBLIX SUPER MARKETS, INC.
Statements of Cash Flows
(Continued)
1995 1994 1993
---- ---- ----
(Amounts in thousands)
Reconciliation of Net Earnings to Net Cash
Provided by Operating Activities
Net earnings $242,141 238,567 180,317
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Cumulative effect of changes in accounting
principles, net of taxes --- --- 3,494
Depreciation and amortization 144,717 128,993 116,797
Contribution to ESOT 32,500 27,500 22,000
Deferred income taxes 15,886 12,981 1,462
(Gain) loss on sale of property, plant and
equipment 5,891 3,672 (1,225)
(Gain) loss on sale of investments (681) 3,234 (5,682)
Self-insurance reserves in excess of
current payments 9,872 9,553 21,906
Postretirement accruals in excess of
current payments 2,867 3,865 1,858
Decrease in purchase allowances (3,358) (3,358) (3,358)
Other, net 1,236 (1,201) (50)
Changes in current assets and liabilities:
(Increase) decrease in trade receivables (3,643) 3,528 (5,550)
Increase in merchandise inventories (62,010) (76,274) (40,647)
Increase in prepaid expenses (1,502) (36) (860)
Increase in accounts payable and accrued
expenses 105,834 82,855 83,698
Increase (decrease) in federal and state
income taxes payable (1,411) (5,524) 5,668
--------- --------- ---------
Total adjustments 246,198 189,788 199,511
--------- --------- ---------
Net cash provided by operating activities $488,339 428,355 379,828
========= ========= =========
See accompanying notes to financial statements.
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
December 30, 1995, December 31, 1994
and December 25, 1993
(1) Summary of Significant Accounting Policies
(a) Definition of Fiscal Year
The fiscal year ends on the last Saturday in December. Fiscal
years 1995 and 1993 include 52 weeks. Fiscal year 1994
includes 53 weeks.
(b) Cash Equivalents
The Company considers all liquid investments
with maturities of three months or less to be cash
equivalents.
(c) Investments
At the beginning of fiscal year 1994, the
Company adopted Financial Accounting Standard No. 115,
"Accounting for Certain Investments in Debt and Equity
Securities," for investments held as of, or acquired after,
the beginning of fiscal 1994, without restating prior years'
financial statements. The cumulative effect of adopting the
Standard as of the beginning of fiscal 1994 is not material
(note 7).
(d) Investment in Joint Ventures
The Company has invested in joint ventures to
develop shopping centers. The investment in these joint
ventures is accounted for using the equity method.
(e) Inventories
Inventories are valued at cost (principally
the dollar value last-in, first-out method) including store
inventories which are calculated by the retail method.
(f) Property, Plant and Equipment and Depreciation
Maintenance and repairs are charged to
expense as incurred. Expenditures for renewals and
betterments are capitalized. The gain or loss on traded
items is applied to the asset accounts or reflected in income
for disposed items.
Assets are recorded at cost. Assets acquired
subsequent to fiscal year 1991 are depreciated using the
straight-line method. Assets acquired prior to fiscal year
1992 are depreciated using the straight-line or declining
balance method.
(g) Postretirement Benefits
At the beginning of fiscal year 1993, the
Company adopted Financial Accounting Standard No. 106,
"Employers' Accounting for Postretirement Benefits Other Than
Pensions," without restating prior years' financial
statements. This Standard required that an employer's
obligation for postretirement benefits be fully accrued by
the date the employees attain full eligibility to receive
these benefits. The cumulative effect of the change in
method of accounting for postretirement benefits has been
reported in the 1993 statement of earnings (note 3).
(Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
(h) Self-insurance
Self-insurance reserves are established for
health care, fleet liability, general liability and workers'
compensation claims. These reserves are determined based on
actual experience including, where necessary, actuarial studies.
The Company has insurance coverage for losses in excess of
varying amounts.
(i) Income Taxes
At the beginning of fiscal year 1993, the Company
adopted Financial Accounting Standard No. 109, "Accounting for
Income Taxes," without restating prior years' financial
statements. This Standard required a change from the deferred
method of accounting for income taxes of APB Opinion 11 to the
asset and liability method of accounting for income taxes. The
cumulative effect of the change in method of accounting for
income taxes has been reported in the 1993 statement of earnings
(note 5).
(j) New Accounting Standard
In March 1995, the Financial Accounting Standards
Board issued Financial Accounting Standard No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets
to Be Disposed Of," effective for fiscal years beginning after
December 15, 1995. This Standard requires that long-lived assets
and certain identifiable intangibles held and used by an entity
be reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of the asset may
not be recoverable. This Standard also requires that long-lived
assets and certain identifiable intangibles to be disposed of be
reported at the lower of carrying amount or fair value less costs
to sell. The Company has historically reserved for losses
related to the impairment of long-lived assets; therefore, the
adoption of this Standard will not materially affect the
Company's financial statements.
(k) Use of Estimates
The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities as of the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from
those estimates.
(l) Reclassification
Certain 1994 and 1993 amounts have been
reclassified to conform with the 1995 presentation.
(2) Merchandise Inventories
If the first-in, first-out method of valuing inventories had been
used by the Company, inventories and current assets would have been
higher than reported by approximately $96,231,000, $90,276,000 and
$83,741,000 as of December 30, 1995, December 31, 1994 and December 25,
1993, respectively. Also, net earnings would have increased by
approximately $3,106,000 or $.01 per share in 1995 and increased by
$3,408,000 or $.01 per share in 1994 and decreased $1,706,000 or less
than $.01 per share in 1993.
2
(Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
(3) Postretirement Benefits
The Company provides life insurance benefits for salaried and
hourly full-time employees. Such employees retiring from the
Company on or after attaining age 55 and having ten years of
credited service are entitled to postretirement life insurance
benefits. The Company funds the life insurance benefits on a pay-
as-you-go basis. During 1995, 1994 and 1993 the Company made
benefit payments to beneficiaries of retirees of approximately
$1,311,000, $657,000 and $702,000, respectively.
As discussed in Note 1, the Company adopted Standard 106 at the
beginning of fiscal year 1993. The accumulated postretirement
benefit obligation accrued was $24,607,000. The cumulative
effect of this accounting change decreased net earnings by
approximately $15,347,000 in fiscal 1993.
1995 1994 1993
(Amounts in thousands)
Net postretirement benefit cost consists
of the following components:
Service cost attributed to service
during the year $ 1,362 1,440 1,039
Interest cost on postretirement
benefit obligation 2,815 2,405 2,052
Net amortization --- 145 ---
------- ----- -----
Net periodic postretirement benefit cost $ 4,177 3,990 3,091
======= ===== =====
The following summarizes the reconciliation of the amounts
recognized in the Company's balance sheets as of December 30,
1995 and December 31, 1994:
1995 1994
---- ----
(Amounts in thousands)
Accumulated postretirement benefit obligation:
Retirees $13,820 12,105
Fully eligible active plan participants 10,951 9,032
Other active plan participants 17,979 12,041
------- ------
Accumulated postretirement benefit obligation 42,750 33,178
Unrecognized net loss (9,553) (2,848)
------- ------
Accrued postretirement benefit cost $33,197 30,330
======= ======
3 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
The following actuarial assumptions were used in the calculation
of the year end accumulated postretirement benefit obligation:
1995 1994 1993
---- ---- ----
Discount Rate 7.25% 8.25% 7.25%
Salary Increase Rate 4.00% 4.00% 4.00%
The change in the discount rate from 7.25% to 8.25% in 1994
decreased the accumulated postretirement benefit obligation by
$5,366,000. The change in the discount rate from 8.25% to 7.25%
in 1995 increased the accumulated postretirement benefit
obligation by $5,922,000 and is expected to increase annual
postretirement benefit costs by $923,000 beginning in 1996.
(4) Retirement Plans
The Company has a trusteed, noncontributory profit sharing plan
for the benefit of eligible employees. The amount of the
Company's contribution to this plan is determined by the Board of
Directors. The contribution cannot exceed 15% of compensation
paid to participants. Contributions to this plan amounted to
$44,941,000 in 1995, $44,564,000 in 1994 and $33,976,000 in 1993.
The Company has an Employee Stock Ownership Trust (ESOT). Annual
contributions to the ESOT are determined by the Board of
Directors and can be made in Company stock or cash. In 1995,
1994 and 1993, the Company contributed 2,000,000 shares of its
common stock to the ESOT at an appraised value resulting in an
expense to the Company of $32,500,000 in 1995, $27,500,000 in
1994 and $22,000,000 in 1993. During 1995, 1994 and 1993, the
Board of Directors approved additional contributions to the ESOT
of $22,444,000, $22,257,000 and $16,983,000, respectively. The
additional contributions are made to the ESOT during the
subsequent year.
Effective January 1, 1995, the Company adopted a 401(k) plan for
the benefit of eligible employees. The 401(k) plan is a
voluntary defined contribution plan. Eligible employees may
contribute up to 6% of their annual compensation, subject to
certain maximum contribution restrictions. The Company may make
a discretionary annual matching contribution to eligible
participants of this plan as determined by the Board of
Directors. During 1995, the Board of Directors approved a match
of 50% of eligible contributions up to 3% of eligible wages not
to exceed a maximum of $750 per employee. The match, which is
made in the subsequent year, will be in the form of common stock
of the Company.
The Company intends to continue the profit sharing plan, ESOT and
401(k) plan indefinitely; however, the right to modify, amend or
terminate these plans has been reserved. In the event of
termination, all amounts contributed under the plans must be paid
to the participants or their beneficiaries.
4 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
(5) Income Taxes
As discussed in Note 1, the Company adopted Standard 109 at the
beginning of fiscal year 1993. The cumulative effect of this
accounting change resulted in a reduction of deferred Federal and
state income taxes and an increase in net earnings of
approximately $11,853,000 in fiscal 1993.
The provision for income taxes consists of the following:
Current Deferred Total
------- -------- -----
(Amounts in thousands)
1995:
Federal $104,996 13,546 118,542
State 18,477 2,340 20,817
-------- ------- -------
$123,473 15,886 139,359
======== ======= =======
1994:
Federal $107,798 11,090 118,888
State 18,954 1,891 20,845
-------- ------- -------
$126,752 12,981 139,733
======== ======= =======
1993:
Federal $ 89,580 (340) 89,240
State 15,861 (203) 15,658
-------- ------- -------
$105,441 (543) 104,898
======== ======= =======
The actual tax expense for 1995, 1994 and 1993 differs from the
"expected" tax expense for those years (computed by applying the
U.S. Federal corporate tax rate of 35% to earnings before income
taxes) as follows:
1995 1994 1993
---- ---- ----
(Amounts in thousands)
Computed "expected" tax expense $133,525 132,405 101,048
State income taxes (net of
Federal income tax benefit) 13,532 13,550 10,178
Tax exempt interest (5,530) (4,589) (5,065)
Effect of change in tax rate on
deferred tax assets/liabilities --- --- 970
Other, net (2,168) (1,633) (2,233)
-------- ------- -------
$139,359 139,733 104,898
======== ======= =======
5 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
The "Omnibus Budget Reconciliation Act of 1993" included various
rule changes and increased the maximum corporate income tax rate
from 34% to 35%, effective January 1, 1993. The impact of the
new tax law increased the Company's 1993 income tax expense by
$3,484,000. This included $2,514,000 attributable to the new tax
rate on current income and $970,000 resulting from an adjustment
of deferred tax balances.
The tax effects of temporary differences that give rise to
significant portions of deferred tax assets and deferred tax
liabilities as of December 30, 1995 and December 31, 1994 are as
follows:
1995 1994
---- ----
(Amounts in thousands)
Deferred tax assets:
Self-insurance reserves $ 43,529 40,484
Postretirement benefit cost 12,806 11,700
Retirement plan contributions 9,133 ---
Uniform inventory capitalization 5,216 6,348
Other 12,909 12,923
---------- ------
Total deferred tax assets $ 83,593 71,455
========== ======
Deferred tax liabilities:
Difference in basis of property,
plant and equipment, net $ 150,721 120,663
Other 104 640
---------- -------
Total deferred tax liabilities $ 150,825 121,303
========== =======
The Company expects the results of future operations to generate
sufficient taxable income to allow utilization of deferred tax
assets.
(6) Fair Value of Financial Instruments
The following methods and assumptions were used by the Company in
estimating the fair value of its financial instruments:
Cash and cash equivalents: The carrying amount for cash and cash
equivalents approximates fair value.
Investment securities: The fair values for marketable debt and
equity securities are based on quoted market prices.
Long-term debt, including current installments: The carrying
amount for long-term debt approximates fair value based on
current interest rates.
The carrying amount of the Company's financial instruments as of
December 30, 1995 and December 31, 1994 approximated their
respective fair values.
6 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
(7) Investments
Management determines the appropriate classification of debt
securities at the time of purchase and reevaluates such designation
as of each balance sheet date. Debt securities are classified as
held-to-maturity when the Company has the positive intent and ability
to hold the securities to maturity. Held-to-maturity securities are
stated at cost, adjusted for amortization of premiums and accretion
of discounts to maturity. Such amortization is included in other
income, net. The Company had no held-to-maturity securities as of
December 30, 1995 and December 31, 1994.
In the fourth quarter of 1994, the Company transferred $62,254,000 of
securities from the held-to-maturity classification to the available-
for-sale classification. This amount represented the amortized cost
of the securities at the date of transfer. The fair value of these
securities was $61,408,000 resulting in a net unrealized loss of
$846,000. The change in classification was a result of a change in
management's intent with respect to these securities. In order to
have the flexibility to respond to changes in interest rates and to
take advantage of changes in the availability of and the yield on
alternative investments, management determined that the
classification of these securities as available-for-sale was
appropriate.
All of the Company's debt securities and marketable equity securities
are classified as available-for-sale. Available-for-sale securities
are carried at fair value, with the unrealized gains and losses, net
of tax, reported as a separate component of stockholders' equity.
The cost of debt securities in this category is adjusted for
amortization of premiums and accretion of discounts to maturity.
Such amortization is included in other income, net. Realized gains
and losses and declines in value judged to be other-than-temporary on
available-for-sale securities are included in other income, net. The
cost of securities sold is based on the specific identification
method.
Following is a summary of available-for-sale securities as of
December 30, 1995 and December 31, 1994:
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
---- ----- ------ -----
(Amounts in thousands)
1995:
Tax-free bonds $169,366 1,121 304 170,183
Equity securities 23,681 843 1,003 23,521
-------- ----- ----- -------
$193,047 1,964 1,307 193,704
======== ===== ===== =======
1994:
Tax-free bonds $185,042 53 2,101 182,994
Equity securities 19,805 334 1,509 18,630
-------- ----- ----- -------
$204,847 387 3,610 201,624
======== ===== ===== =======
7 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
For the fiscal years ended December 30, 1995 and December 31, 1994,
the realized gains on sales of available-for-sale securities totaled
$887,000 and $1,562,000, respectively, and the realized losses totaled
$663,000 and $4,751,000, respectively. The unrealized gains and losses
on available-for-sale securities, net of applicable income taxes,
included as a separate component of stockholders' equity was an
unrealized gain of $404,000 at the end of 1995 and an unrealized loss
of $1,980,000 at the end of 1994.
The amortized cost and estimated fair value of debt and marketable
equity securities classified as available-for-sale as of December 30,
1995 and December 31, 1994, by expected maturity, are as follows:
1995 1994
---- ----
Amortized Fair Amortized Fair
Cost Value Cost Value
---- ----- ---- -----
(Amounts in thousands)
Due in one year or less $ 74,255 74,292 77,410 77,130
Due after one year through
three years 39,809 40,077 65,873 64,700
Due after three years 55,302 55,814 41,759 41,164
-------- ------- ------- -------
169,366 170,183 185,042 182,994
Equity securities 23,681 23,521 19,805 18,630
-------- ------- ------- -------
$193,047 193,704 204,847 201,624
======== ======= ======= =======
As of December 31, 1994, the Company classified its one investment in
common stock as a trading security. This investment had a cost of
$198,000 and a fair value of $87,000. During 1995, the Company sold
this security. The realized loss on this investment is included in
the statement of earnings as a reduction of other income, net.
(8) Commitments and Contingencies
(a) Operating Leases
The Company conducts a major portion of its retail operations
from leased store and shopping center premises generally under
20 year leases. Contingent rentals paid to lessors of certain
store facilities are determined on the basis of a percentage of
sales in excess of stipulated minimums plus, in certain cases,
reimbursement of taxes and insurance.
Total rental expense, net of sublease rental income, for the
years ended December 30, 1995, December 31, 1994 and December
25, 1993, is as follows:
1995 1994 1993
---- ---- ----
(Amounts in thousands)
Minimum rentals $129,288 101,918 85,967
Contingent rentals 9,525 11,942 10,731
Sublease rental income (2,600) (2,364 (2,253)
-------- ------- ------
$136,213 111,496 94,445
======== ======= ======
8 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
As of December 30, 1995, future minimum lease payments for all
noncancelable operating leases and related subleases are as
follows:
Minimum Sublease
Rental Rental
Year Commitments Income Net
---- ----------- ------ ---
(Amounts in thousands)
1996 $ 128,618 2,080 126,538
1997 127,661 1,820 125,841
1998 125,943 1,370 124,573
1999 124,587 902 123,685
2000 122,529 555 121,974
Thereafter 1,266,734 1,229 1,265,505
---------- ----- ---------
$1,896,072 7,956 1,888,116
========== ===== =========
The Company also owns shopping centers which are leased
to tenants for minimum monthly rentals plus, in certain
instances, contingent rentals. Contingent rentals received
are determined on the basis of a percentage of sales in
excess of stipulated minimums plus, in certain instances,
taxes. Contingent rentals were estimated at December 30,
1995 and are included in trade receivables. Rental income
was approximately $9,443,000 in 1995, $8,624,000 in 1994 and
$7,624,000 in 1993. The approximate amounts of minimum
future rental payments to be received under operating leases
are $6,823,000, $5,532,000, $4,186,000, $2,715,000 and
$1,769,000 for the years 1996 through 2000, respectively, and
$7,766,000 thereafter.
(b) Lines of Credit
The Company has committed lines of credit
totaling $100,000,000 and one uncommitted line of credit for
$25,000,000 available for short-term borrowings, with
interest rates at or below the prime rate. There were no
amounts outstanding as of December 30, 1995 or December 31,
1994. The Company pays no fees related to these lines.
(c) Litigation
A notice of charge (the "Charge") was issued by the Equal
Employment Opportunity Commission (the "EEOC") on March 22,
1992, In the Matter of: Kemp v. Publix Super Markets, Inc.,
Charge No. 150-92-1508, alleging that the Company had and was
engaged in violations of Title VII of the Federal Civil
Rights Act by discriminating against women with respect to
job assignments and promotions because of their sex. The
Charge was subsequently expanded to include allegations of
race discrimination.
9 (Continued)
PUBLIX SUPER MARKETS, INC.
Notes to Financial Statements
A purported class action was filed against the Company on
July 19, 1995 in the Federal District Court for the Middle
District of Florida, Tampa Division, Case No. 95-1162-Civ-T,
by Melodee Shores and seven other present or former employees
of the Company, individually and on behalf of all other
persons similarly situated (the "Shores case"). Four
additional named plaintiffs have been added to the suit. In
their Complaint, the plaintiffs allege that the Company has
and is currently engaged in a policy and pattern or practice
of gender-based discriminatory treatment of female employees
with respect to job assignments, promotional opportunities,
management positions, equal pay, full-time status, bonuses,
and other benefits and conditions of employment, all in
violation of Title VII of the Federal Civil Rights Act, as
well as the Florida Civil Rights Act of 1992. The plaintiffs
seek, among other relief, certification of the suit as a
class action, a declaratory judgment that the Company's
practices are unlawful, back pay and other compensatory
damages, exemplary and punitive damages, and injunctive
relief against future improper conduct.
On March 12, 1996, the Court certified a class comprised of
all female employees of the Company who from May 22, 1991
(Florida and South Carolina operations) or from October 19,
1991 (Georgia operations) to the date of trial have worked,
are working or will work in the Company's retail operations.
Expressly excluded are females who have worked only in the
Company's pharmacy operations.
In January 1996, the Court granted a motion filed by the EEOC
to intervene in the Shores case, but limited the intervention
to the issues raised by the original plaintiffs. Under its
Intervenor's Complaint, the EEOC seeks to correct what it
alleges to be the Company's unlawful employment practices on
the basis of sex and requests that the Court, among other
things, grant injunctive relief, order the Company to provide
back pay and compensation for nonpecuniary losses resulting
from the alleged unlawful practices and order the Company to
pay punitive damages.
Intervention by the EEOC in the Shores case does not end the
EEOC's separate investigation under the EEOC Charge, at least
with respect to allegations of race discrimination,
allegations of discrimination against unsuccessful applicants
and other matters not involved in the Shores case. The
Charge covers such employment practices by the Company in the
State of Florida as a whole.
The Company denies the allegations contained in the EEOC
Charge and in the complaint in the Shores case, and intends
to continue to vigorously defend these matters. The Company
is unable, at this time, to estimate with any degree of
certainty the potential losses that might result from an
adverse decision in these matters. Accordingly, no provision
for any potential liability has been made in the Company's
financial statements.
The Company is also a party in various legal
claims and actions considered in the normal course of
business. Management believes that the ultimate disposition
of these matters will not have a material effect on the
Company's liquidity, results of operations or financial
condition.
10
Schedule II
PUBLIX SUPER MARKETS, INC.
Valuation and Qualifying Accounts
Years ended December 30, 1995, December 31, 1994
and December 25, 1993
(Amounts in thousands)
Balance at Additions Deductions Balance at
beginning charged to from end of
Description of year income reserves year
- ----------- ------- ------ -------- ----
Year ended December 30, 1995
Reserves not deducted from assets:
Self-insurance reserves:
-Current $ 49,295 102,397 93,250 58,442
-Noncurrent 59,710 725 --- 60,435
--------- ------- ------ -------
$ 109,005 103,122 93,250 118,877
========= ======= ====== =======
Year ended December 31, 1994
Reserves not deducted from assets:
Self-insurance reserves:
-Current $ 48,918 80,421 80,044 49,295
-Noncurrent 50,534 9,176 --- 59,710
--------- ------- ------ -------
$ 99,452 89,597 80,044 109,005
========= ======= ====== =======
Year ended December 25, 1993
Reserves not deducted from assets:
Self-insurance reserves:
-Current $ 32,108 85,020 68,210 48,918
-Noncurrent 45,438 5,096 --- 50,534
--------- ------ ------ -------
$ 77,546 90,116 68,210 99,452
========= ====== ====== =======
PUBLIX SUPER MARKETS, INC.
Index to Exhibits
EXHIBIT 9 Deed of Termination of Voting Trust Agreement
EXHIBIT 27 Financial Data Schedule for the year ended December 30, 1995.