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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
Commission File Number: 000-00981
 publixlogorev2a12.jpg
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.)
3300 Publix Corporate Parkway
Lakeland, Florida
 33811
(Address of principal executive offices) (Zip Code)
(863) 688-1188
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.
Yes    X          No         
Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months.
Yes    X          No         
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer            Accelerated filer           Non-accelerated filer    X    
Smaller reporting company            Emerging growth company           
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.        
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes                 No    X  
The number of shares of the Registrant’s common stock outstanding as of October 13, 2023 was 3,307,000,000.



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts are in millions, except par value)
(Unaudited)
September 30, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$1,089 1,336 
Short-term investments
1,771 566 
Trade receivables
1,074 1,106 
Inventories
2,424 2,341 
Prepaid expenses
86 74 
Total current assets
6,444 5,423 
Long-term investments11,459 10,992 
Other noncurrent assets623 561 
Operating lease right-of-use assets3,093 2,979 
Property, plant and equipment19,876 18,688 
Accumulated depreciation(8,141)(7,596)
Net property, plant and equipment
11,735 11,092 
$33,354 31,047 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$2,763 2,812 
Accrued expenses:
Contributions to retirement plans
592 687 
Self-insurance reserves
225 210 
Salaries and wages
438 205 
Other
663 637 
Current portion of long-term debt
18 36 
Current portion of operating lease liabilities
360 359 
Income taxes292 226 
Total current liabilities
5,351 5,172 
Deferred income taxes629 575 
Self-insurance reserves289 268 
Long-term debt42 43 
Operating lease liabilities2,613 2,573 
Finance lease liabilities482 423 
Other noncurrent liabilities127 141 
Total liabilities
9,533 9,195 
Common stock related to Employee Stock Ownership Plan (ESOP)4,288 4,029 
Stockholders’ equity:
Common stock of $1 par value. Authorized 4,000 shares;
issued 3,347 shares in 2023 and 3,324 shares in 2022
3,347 3,324 
Additional paid-in capital
2,005 1,687 
Retained earnings
19,619 17,413 
Treasury stock at cost, 39 shares in 2023
(574)— 
Accumulated other comprehensive losses(613)(609)
Common stock related to ESOP
(4,288)(4,029)
Total stockholders’ equity
19,496 17,786 
Noncontrolling interests37 37 
Total equity23,821 21,852 
$33,354 31,047 
See accompanying notes to condensed consolidated financial statements.
1

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

 Three Months Ended
 September 30, 2023September 24, 2022
Revenues:
Sales$13,952 13,011 
Other operating income110 96 
Total revenues14,062 13,107 
Costs and expenses:
Cost of merchandise sold10,282 9,637 
Operating and administrative expenses2,724 2,535 
Total costs and expenses13,006 12,172 
Operating profit1,056 935 
Investment loss(43)(498)
Other nonoperating income, net24 21 
Earnings before income tax expense1,037 458 
Income tax expense204 64 
Net earnings$833 394 
Weighted average shares outstanding3,320 3,366 
Earnings per share$0.25 0.12 


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in millions)
(Unaudited)
 Three Months Ended
 September 30, 2023September 24, 2022
Net earnings$833 394 
Other comprehensive (losses) earnings:
Unrealized loss on debt securities net of income taxes of $(12.5) and $(40.6) in 2023 and 2022, respectively.
(37)(119)
Reclassification adjustment for net realized loss on debt securities net of income taxes of $0.6 in 2022.
— 2 
Comprehensive earnings$796 277 

See accompanying notes to condensed consolidated financial statements.
2

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

 Nine Months Ended
 September 30, 2023September 24, 2022
Revenues:
Sales$42,370 39,189 
Other operating income319 289 
Total revenues42,689 39,478 
Costs and expenses:
Cost of merchandise sold31,190 28,681 
Operating and administrative expenses8,158 7,507 
Total costs and expenses39,348 36,188 
Operating profit3,341 3,290 
Investment income (loss)584 (1,324)
Other nonoperating income, net82 69 
Earnings before income tax expense4,007 2,035 
Income tax expense836 395 
Net earnings$3,171 1,640 
Weighted average shares outstanding3,327 3,394 
Earnings per share$0.95 0.48 


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(Amounts are in millions)
(Unaudited)
 Nine Months Ended
 September 30, 2023September 24, 2022
Net earnings$3,171 1,640 
Other comprehensive (losses) earnings:
Unrealized loss on debt securities net of income taxes of $(1.2) and $(227.9) in 2023 and 2022, respectively.
(4)(669)
Reclassification adjustment for net realized loss on debt securities net of income taxes of $0.3 in 2022.
— 1 
Adjustment to postretirement benefit obligation net of income taxes of $0.2 in 2022.
— 1 
Comprehensive earnings$3,167 973 

See accompanying notes to condensed consolidated financial statements.
3

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

 Nine Months Ended
 September 30, 2023September 24, 2022
Cash flows from operating activities:
Cash received from customers$42,598 39,280 
Cash paid to employees and suppliers(37,909)(34,824)
Income taxes paid(622)(496)
Self-insured claims paid(395)(366)
Dividends and interest received291 233 
Other operating cash receipts317 287 
Other operating cash payments(23)(27)
Net cash provided by operating activities4,257 4,087 
Cash flows from investing activities:
Payment for capital expenditures(1,325)(1,286)
Proceeds from sale of property, plant and equipment13 20 
Payment for investments(2,372)(1,294)
Proceeds from sale and maturity of investments861 1,164 
Net cash used in investing activities(2,823)(1,396)
Cash flows from financing activities:
Payment for acquisition of common stock(895)(1,646)
Proceeds from sale of common stock212 315 
Dividends paid(965)(864)
Repayment of long-term debt(34)(28)
Other, net1 (1)
Net cash used in financing activities(1,681)(2,224)
Net (decrease) increase in cash and cash equivalents(247)467 
Cash and cash equivalents at beginning of period1,336 1,132 
Cash and cash equivalents at end of period$1,089 1,599 

See accompanying notes to condensed consolidated financial statements.     (Continued)
4

PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts are in millions)
(Unaudited)
 
 Nine Months Ended
 September 30, 2023September 24, 2022
Reconciliation of net earnings to net cash provided by
operating activities:
Net earnings$3,171 1,640 
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation and amortization676 619 
Increase in last-in, first-out (LIFO) reserve85 132 
Retirement contributions paid or payable in common stock362 342 
Deferred income taxes55 (279)
(Gain) loss on disposal and impairment of long-lived assets(5)5 
(Gain) loss on investments(311)1,497 
Net amortization of investments39 61 
Changes in operating assets and liabilities providing
(requiring) cash:
Trade receivables32 (63)
Inventories(168)(257)
Other assets78 45 
Accounts payable and accrued expenses162 218 
Income taxes66 122 
Other liabilities15 5 
Total adjustments1,086 2,447 
Net cash provided by operating activities$4,257 4,087 

See accompanying notes to condensed consolidated financial statements.
5

PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts are in millions, except per share amounts)
(Unaudited)

Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Common
Stock (Acquired
from) Sold
to Stock-
holders
Accumu-
lated Other Compre-
hensive
Earnings
(Losses)
Common
Stock
Related to
ESOP
Total
Stock-
holders’
Equity
2023
Balances at December 31, 2022$3,324 1,687 17,413 — (609)(4,029)17,786 
Comprehensive earnings— — 1,241 — 98 — 1,339 
Dividends, $0.09 per share
— — (299)— — — (299)
Contribution of 31 shares to
retirement plan
22 309 — 119 — — 450 
Acquisition of 23 shares from
stockholders
— — — (317)— — (317)
Sale of 8 shares to stockholders
1 8 — 99 — — 108 
Change for ESOP related shares— — — — — (635)(635)
Balances at April 1, 20233,347 2,004 18,355 (99)(511)(4,664)18,432 
Comprehensive earnings— — 1,097 — (65)— 1,032 
Dividends, $0.10 per share
— — (334)— — — (334)
Acquisition of 17 shares from
stockholders
— — — (258)— — (258)
Sale of 2 shares to stockholders
— — — 38 — — 38 
Change for ESOP related shares— — — — — 273 273 
Balances at July 1, 20233,347 2,004 19,118 (319)(576)(4,391)19,183 
Comprehensive earnings— — 833 — (37)— 796 
Dividends, $0.10 per share
— — (332)— — — (332)
Acquisition of 22 shares from
stockholders
— — — (320)— — (320)
Sale of 5 shares to stockholders
— 1 — 65 — — 66 
Change for ESOP related shares— — — — — 103 103 
Balances at September 30, 2023$3,347 2,005 19,619 (574)(613)(4,288)19,496 

See accompanying notes to condensed consolidated financial statements.
6

PUBLIX SUPER MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Amounts are in millions, except per share amounts)
(Unaudited)

Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Common
Stock (Acquired
from) Sold
to Stock-
holders
Accumu-
lated Other Compre-
hensive
Earnings
(Losses)
Common
Stock
Related to
ESOP
Total
Stock-
holders’
Equity
2022
Balances at December 25, 2021$3,418 1,426 17,156 — (5)(3,825)18,170 
Comprehensive earnings— — 618 — (376)— 242 
Dividends, $0.074 per share
— — (253)— — — (253)
Contribution of 31 shares to
retirement plan
20 254 — 153 — — 427 
Acquisition of 40 shares from
stockholders
— — — (538)— — (538)
Sale of 8 shares to stockholders
— — — 101 — — 101 
Change for ESOP related shares— — — — — (600)(600)
Balances at March 26, 20223,438 1,680 17,521 (284)(381)(4,425)17,549 
Comprehensive earnings— — 628 — (174)— 454 
Dividends, $0.09 per share
— — (307)— — — (307)
Acquisition of 49 shares from
stockholders
— — — (733)— — (733)
Sale of 7 shares to stockholders
— — — 107 — — 107 
Change for ESOP related shares— — — — — 173 173 
Balances at June 25, 20223,438 1,680 17,842 (910)(555)(4,252)17,243 
Comprehensive earnings— — 394 — (117)— 277 
Dividends, $0.09 per share
— — (304)— — — (304)
Acquisition of 27 shares from
stockholders
— — — (375)— — (375)
Sale of 8 shares to stockholders
— — — 107 — — 107 
Change for ESOP related shares— — — — — 117 117 
Balances at September 24, 2022$3,438 1,680 17,932 (1,178)(672)(4,135)17,065 

See accompanying notes to condensed consolidated financial statements.
7

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


(1)Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Publix Super Markets, Inc. and subsidiaries (Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and the rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Accordingly, the accompanying statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments that are of a normal and recurring nature necessary to present fairly the Company’s financial position and results of operations. Due to the seasonal nature of the Company’s business, the results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the entire 2023 fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (Annual Report).
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
(2)Fair Value of Financial Instruments
The fair value of certain of the Company’s financial instruments, including cash and cash equivalents, trade receivables and accounts payable, approximates their respective carrying amounts due to their short-term maturity.
The fair value of investments is based on market prices using the following measurement categories:
Level 1 – Fair value is determined by using quoted prices in active markets for identical investments. Investments included in this category are equity securities (primarily exchange traded funds).
Level 2 – Fair value is determined by using other than quoted prices. By using observable inputs (for example, benchmark yields, interest rates, reported trades and broker dealer quotes), the fair value is determined through processes such as benchmark curves, benchmarking of similar securities and matrix pricing of corporate, government-sponsored agency, state and municipal bonds by using pricing of similar bonds based on coupons, ratings and maturities. Investments included in this category are primarily debt securities (taxable and tax exempt bonds), including restricted investments in taxable bonds held as collateral.
Level 3 – Fair value is determined by using other than observable inputs. Fair value is determined by using the best information available in the circumstances and requires significant management judgment or estimation. No investments are currently included in this category.
Following is a summary of fair value measurements for investments as of September 30, 2023 and December 31, 2022:
Fair ValueLevel 1Level 2Level 3
(Amounts are in millions)
September 30, 2023$13,230 2,483 10,747 — 
December 31, 202211,558 2,137 9,421 — 

8

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


(3)Investments
(a)Debt Securities
Following is a summary of debt securities as of September 30, 2023 and December 31, 2022:
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
 (Amounts are in millions)
September 30, 2023
Taxable bonds$11,373 1 829 10,545 
Tax exempt bonds20 — — 20 
Restricted investments187 — 5 182 
$11,580 1 834 10,747 
December 31, 2022
Taxable bonds$9,705 6 830 8,881 
Tax exempt bonds37 — — 37 
Restricted investments170 — 4 166 
$9,912 6 834 9,084 
The Company maintains restricted investments primarily for the benefit of the Company’s insurance carrier related to self-insurance reserves. These investments are held as collateral and not used for claim payments.
Following is a summary of the cost and fair value of debt securities by expected maturity as of September 30, 2023 and December 31, 2022:
 September 30, 2023December 31, 2022
 Cost
Fair
Value
Cost
Fair
Value
 (Amounts are in millions)
Due in one year or less$1,783 1,771 570 566 
Due after one year through five years9,239 8,466 8,355 7,661 
Due after five years through ten years542 495 985 855 
Due after ten years16 15 2 2 
$11,580 10,747 9,912 9,084 

9

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


The Company had no debt securities with credit losses as of September 30, 2023 and December 31, 2022.
Following is a summary of debt securities with other unrealized losses by the time period impaired as of September 30, 2023 and December 31, 2022:
 
Less Than
12 Months
12 Months
or Longer
Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
 (Amounts are in millions)
September 30, 2023
Taxable bonds$2,442 29 7,648 800 10,090 829 
Restricted investments62 2 120 3 182 5 
$2,504 31 7,768 803 10,272 834 
December 31, 2022
Taxable bonds$3,705 199 4,627 631 8,332 830 
Restricted investments151 2 15 2 166 4 
$3,856 201 4,642 633 8,498 834 
There are 546 debt securities contributing to the total unrealized losses of $834 million as of September 30, 2023. Unrealized losses related to debt securities are primarily due to increases in interest rates that occurred since the debt securities were purchased. The Company continues to receive scheduled principal and interest payments on these debt securities.
(b)Equity Securities
Equity securities are measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). The fair value of equity securities was $2.5 billion as of September 30, 2023 and December 31, 2022.
(c)Investment Income (Loss)
Net realized gain or loss on investments represents the difference between the cost and the proceeds from the sale of debt and equity securities. The net realized gain or loss on investments excludes the net gain or loss on the sale of equity securities previously recognized through the fair value adjustment, which is presented separately in the following table.
Following is a summary of investment income (loss) for the three and nine months ended September 30, 2023 and September 24, 2022:
 Three Months EndedNine Months Ended
September 30, 2023September 24, 2022September 30, 2023September 24, 2022
 (Amounts are in millions)
Interest and dividend income$101 61 273 173 
Net realized (loss) gain on investments— (3)134 (2)
101 58 407 171 
Fair value adjustment, due to net unrealized (loss) gain, on equity securities held at end of period(144)(556)225 (1,495)
Net gain on sale of equity securities previously recognized through fair value adjustment— — (48)— 
$(43)(498)584 (1,324)

10

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


(4)Consolidation of Joint Ventures and Long-Term Debt
From time to time, the Company enters into a joint venture (JV), in the legal form of a limited liability company, with real estate developers to partner in the development of a shopping center with the Company as the anchor tenant. The Company consolidates certain of these JVs in which it has a controlling financial interest. As of September 30, 2023, the carrying amounts of the assets and liabilities of the consolidated JVs were $146 million and $40 million, respectively. As of December 31, 2022, the carrying amounts of the assets and liabilities of the consolidated JVs were $136 million and $40 million, respectively. The assets are owned by and the liabilities are obligations of the JVs, not the Company, except for a portion of the long-term debt of certain JVs guaranteed by the Company. The JVs are financed with capital contributions from the members, loans and/or the cash flows generated by the JV owned shopping centers once in operation. Total earnings attributable to noncontrolling interests for 2023 and 2022 were immaterial. The Company’s involvement with these JVs does not have a significant effect on the Company’s financial condition, results of operations or cash flows.
The Company’s long-term debt results primarily from the consolidation of loans of certain JVs and loans assumed in connection with the acquisition of certain shopping centers with the Company as the anchor tenant. No loans were assumed during the nine months ended September 30, 2023 or September 24, 2022. Maturities of JV loans range from June 2026 through April 2027 and have variable interest rates based on a Secured Overnight Financing Rate (SOFR) index plus 200 to 210 basis points. Maturities of assumed shopping center loans range from April 2024 through January 2027 and have fixed interest rates ranging from 4.5% to 7.5%.
(5)Retirement Plan
The Company has a trusteed, noncontributory Employee Stock Ownership Plan (ESOP) for the benefit of eligible employees. Since the Company’s common stock is not traded on an established securities market, the ESOP includes a put option for shares of the Company’s common stock distributed from the ESOP. Shares are distributed from the ESOP primarily to separated vested participants and certain eligible participants who elect to diversify their account balances. Under the Company’s administration of the ESOP’s put option, if the owners of distributed shares desire to sell their shares, the Company is required to purchase the shares at fair value for a specified time period after distribution of the shares from the ESOP. The fair value of distributed shares subject to the put option totaled $637 million and $629 million as of September 30, 2023 and December 31, 2022, respectively. The cost of the shares held by the ESOP totaled $3.7 billion and $3.4 billion as of September 30, 2023 and December 31, 2022, respectively. Due to the Company’s obligation under the put option, the distributed shares subject to the put option and the shares held by the ESOP are classified as temporary equity in the mezzanine section of the condensed consolidated balance sheets and totaled $4.3 billion and $4.0 billion as of September 30, 2023 and December 31, 2022, respectively. The fair value of the shares held by the ESOP totaled $11.1 billion and $10.2 billion as of September 30, 2023 and December 31, 2022, respectively.

11

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


(6)Accumulated Other Comprehensive Earnings (Losses)
Following is a reconciliation of the changes in accumulated other comprehensive earnings (losses) net of income taxes for the three months ended September 30, 2023 and September 24, 2022:
Investments
Postretirement
Benefit
Accumulated
Other
Comprehensive
Earnings (Losses)
(Amounts are in millions)
2023
Balances at July 1, 2023$(585)9 (576)
Unrealized loss on debt securities(37)— (37)
Net other comprehensive losses(37)— (37)
Balances at September 30, 2023$(622)9 (613)
2022
Balances at June 25, 2022$(544)(11)(555)
Unrealized loss on debt securities(119)— (119)
Net realized loss on debt securities reclassified to investment income2 — 2 
Net other comprehensive losses(117)— (117)
Balances at September 24, 2022$(661)(11)(672)


12

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


Following is a reconciliation of the changes in accumulated other comprehensive earnings (losses) net of income taxes for the nine months ended September 30, 2023 and September 24, 2022:
Investments
Postretirement
Benefits
Accumulated
Other
Comprehensive
Earnings (Losses)
(Amounts are in millions)
2023
Balances at December 31, 2022$(618)9 (609)
Unrealized loss on debt securities(4)— (4)
Net other comprehensive losses (4)— (4)
Balances at September 30, 2023$(622)9 (613)
2022
Balances at December 25, 2021$7 (12)(5)
Unrealized loss on debt securities(669)— (669)
Net realized loss on debt securities reclassified to investment income1 — 1 
Adjustment to postretirement benefit obligation— 1 1 
Net other comprehensive (losses) earnings(668)1 (667)
Balances at September 24, 2022$(661)(11)(672)

(7)Subsequent Event
On October 2, 2023, the Company declared a quarterly dividend on its common stock of $0.10 per share or $331 million, payable November 1, 2023 to stockholders of record as of the close of business October 13, 2023.


13


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The objective of this section is to provide a summary of material information relevant to enhancing the stockholders’ understanding of the financial condition and results of operations of the Company. Following is an analysis of the financial condition and results of operations of the Company for the three and nine months ended September 30, 2023 as compared with the three and nine months ended September 24, 2022. This information should be read in conjunction with the Company’s condensed consolidated financial statements and accompanying notes and the Annual Report.
Overview
The Company is engaged in the retail food industry and as of September 30, 2023 operated 1,351 supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, North Carolina and Virginia. The Company plans to expand its retail operations into Kentucky in early 2024. The Company has no other significant lines of business or industry segments. For the nine months ended September 30, 2023, 33 supermarkets were opened (including nine replacement supermarkets) and 79 supermarkets were remodeled. Four supermarkets were closed during the period. The replacement supermarkets that opened during the nine months ended September 30, 2023 replaced nine supermarkets closed in a previous period. The four supermarkets closed in 2023 will be replaced on site in a subsequent period. In the normal course of operations, the Company replaces supermarkets and closes supermarkets that are not meeting performance expectations. The impact of future supermarket closings is not expected to be material.
Results of Operations
Sales
Sales for the three months ended September 30, 2023 were $14.0 billion as compared with $13.0 billion for the three months ended September 24, 2022, an increase of $0.9 billion or 7.2%. The increase in sales for the three months ended September 30, 2023 as compared with the three months ended September 24, 2022 was primarily due to new supermarket sales and a 4.3% increase in comparable store sales (supermarkets open for the same weeks in both periods, including replacement supermarkets). Comparable store sales for the three months ended September 30, 2023 increased primarily due to the impact of inflation on product costs. Sales for supermarkets that are replaced on site are classified as new supermarket sales since the replacement period for the supermarket is generally 12 to 15 months.
Sales for the nine months ended September 30, 2023 were $42.4 billion as compared with $39.2 billion for the nine months ended September 24, 2022, an increase of $3.2 billion or 8.1%. The increase in sales for the nine months ended September 30, 2023 as compared with the nine months ended September 24, 2022 was primarily due to new supermarket sales and a 5.6% increase in comparable store sales. Comparable store sales for the nine months ended September 30, 2023 increased primarily due to the impact of inflation on product costs.
Gross profit
Gross profit (sales less cost of merchandise sold) as a percentage of sales was 26.3% and 25.9% for the three months ended September 30, 2023 and September 24, 2022, respectively. The increase in gross profit as a percentage of sales for the three months ended September 30, 2023 as compared with the three months ended September 24, 2022 was primarily due to the decrease in distribution costs. Gross profit as a percentage of sales was 26.4% and 26.8% for the nine months ended September 30, 2023 and September 24, 2022, respectively. The decrease in gross profit as a percentage of sales for the nine months ended September 30, 2023 as compared with the nine months ended September 24, 2022 was primarily due to the impact of inflation on product costs which was not passed on to customers and increased shrink, partially offset by the decrease in distribution costs.
Operating and administrative expenses
Operating and administrative expenses as a percentage of sales were 19.5% for the three months ended September 30, 2023 and September 24, 2022. Operating and administrative expenses as a percentage of sales were 19.3% and 19.2% for the nine months ended September 30, 2023 and September 24, 2022, respectively. Operating and administrative expenses as a percentage of sales for the three and nine months ended September 30, 2023 as compared with the three and nine months ended September 24, 2022 remained relatively unchanged.


14

Operating profit
Operating profit as a percentage of sales was 7.6% and 7.2% for the three months ended September 30, 2023 and September 24, 2022, respectively. The increase in operating profit as a percentage of sales for the three months ended September 30, 2023 as compared with the three months ended September 24, 2022 was primarily due to the increase in gross profit as a percentage of sales. Operating profit as a percentage of sales was 7.9% and 8.4% for the nine months ended September 30, 2023 and September 24, 2022, respectively. The decrease in operating profit as a percentage of sales for the nine months ended September 30, 2023 as compared with the nine months ended September 24, 2022 was primarily due to the decrease in gross profit as a percentage of sales.
Investment income (loss)
Investment loss for the three months ended September 30, 2023 and September 24, 2022 was $43 million and $498 million, respectively. Excluding the impact of net unrealized losses on equity securities in 2023 and 2022, investment income would have been $101 million and $58 million for the three months ended September 30, 2023 and September 24, 2022, respectively. Excluding the impact of net unrealized losses on equity securities in 2023 and 2022, the increase in investment income for the three months ended September 30, 2023 as compared with the three months ended September 24, 2022 was primarily due to the increase in interest and dividend income.
Investment income for the nine months ended September 30, 2023 was $584 million as compared with an investment loss for the nine months ended September 24, 2022 of $1.3 billion. Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, investment income would have been $407 million and $171 million for the nine months ended September 30, 2023 and September 24, 2022, respectively. Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, the increase in investment income for the nine months ended September 30, 2023 as compared with the nine months ended September 24, 2022 was due to increases in net realized gains on investments and interest and dividend income.
Income tax expense
The effective income tax rate was 19.7% and 13.9% for the three months ended September 30, 2023 and September 24, 2022, respectively. The effective income tax rate was 20.9% and 19.4% for the nine months ended September 30, 2023 and September 24, 2022, respectively. The increase in the effective income tax rate for the three and nine months ended September 30, 2023 as compared with the three and nine months ended September 24, 2022 was primarily due to the decreased impact of permanent deductions and credits relative to earnings before income tax expense.
Net earnings
Net earnings were $833 million or $0.25 per share and $394 million or $0.12 per share for the three months ended September 30, 2023 and September 24, 2022, respectively. Net earnings as a percentage of sales were 6.0% and 3.0% for the three months ended September 30, 2023 and September 24, 2022, respectively. Excluding the impact of net unrealized losses on equity securities in 2023 and 2022, net earnings would have been $940 million or $0.28 per share and 6.7% as a percentage of sales for the three months ended September 30, 2023 and $809 million or $0.24 per share and 6.2% as a percentage of sales for the three months ended September 24, 2022. Excluding the impact of net unrealized losses on equity securities in 2023 and 2022, the increase in net earnings as a percentage of sales for the three months ended September 30, 2023 as compared with the three months ended September 24, 2022 was primarily due to increases in operating profit as a percentage of sales and interest and dividend income.
Net earnings were $3.2 billion or $0.95 per share and $1.6 billion or $0.48 per share for the nine months ended September 30, 2023 and September 24, 2022, respectively. Net earnings as a percentage of sales were 7.5% and 4.2% for the nine months ended September 30, 2023 and September 24, 2022, respectively. Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, net earnings would have been $3.0 billion or $0.91 per share and 7.2% as a percentage of sales for the nine months ended September 30, 2023 and $2.8 billion or $0.81 per share and 7.0% as a percentage of sales for the nine months ended September 24, 2022. Excluding the impact of net unrealized gains on equity securities in 2023 and net unrealized losses on equity securities in 2022, the increase in net earnings as a percentage of sales for the nine months ended September 30, 2023 as compared with the nine months ended September 24, 2022 was primarily due to increases in net realized gains on investments and interest and dividend income, partially offset by the decrease in operating profit as a percentage of sales.


15

Non-GAAP Financial Measures
In addition to reporting financial results for the three and nine months ended September 30, 2023 and September 24, 2022 in accordance with GAAP, the Company presents net earnings and earnings per share excluding the impact of equity securities being measured at fair value with net unrealized gains and losses from changes in the fair value recognized in earnings (fair value adjustment). These measures are not in accordance with, or an alternative to, GAAP. The Company excludes the impact of the fair value adjustment since it is primarily due to temporary equity market fluctuations that do not reflect the Company’s operations. The Company believes this information is useful in providing period-to-period comparisons of the results of operations. Following is a reconciliation of net earnings to net earnings excluding the impact of the fair value adjustment for the three and nine months ended September 30, 2023 and September 24, 2022:
Three Months EndedNine Months Ended
September 30, 2023September 24, 2022September 30, 2023September 24, 2022
(Amounts are in millions, except per share amounts)
Net earnings$833 394 3,171 1,640 
Fair value adjustment, due to net unrealized loss (gain), on equity securities held at end of period144 556 (225)1,495 
Net gain on sale of equity securities previously recognized through fair value adjustment— — 48 — 
Income tax (benefit) expense (1)
(37)(141)45 (379)
Net earnings excluding impact of fair value adjustment$940 809 3,039 2,756 
Weighted average shares outstanding3,320 3,366 3,327 3,394 
Earnings per share excluding impact of fair value adjustment$0.28 0.24 0.91 0.81 
(1)Income tax (benefit) expense is based on the Company’s combined federal and state statutory income tax rates.

16

Liquidity and Capital Resources
Cash and cash equivalents, short-term investments and long-term investments totaled $14.3 billion as of September 30, 2023, as compared with $12.9 billion as of December 31, 2022 and $12.8 billion as of September 24, 2022. The increase from the third quarter of 2022 to the third quarter of 2023 was primarily due to the increase in the fair value of investments.
Net cash provided by operating activities
Net cash provided by operating activities was $4.3 billion and $4.1 billion for the nine months ended September 30, 2023 and September 24, 2022, respectively. The increase in net cash provided by operating activities for the nine months ended September 30, 2023 as compared with the nine months ended September 24, 2022 was primarily due to the timing of collections for receivables and the increase in dividends and interest received, partially offset by the increase in income taxes paid. Income tax payments for 2022 were deferred to 2023 due to Hurricane Ian. Income tax payments for 2023 were deferred to 2024 due to Hurricane Idalia.
Net cash used in investing activities
Net cash used in investing activities was $2.8 billion and $1.4 billion for the nine months ended September 30, 2023 and September 24, 2022, respectively. The primary use of net cash in investing activities for the nine months ended September 30, 2023 was funding capital expenditures and net increases in investments. Capital expenditures for the nine months ended September 30, 2023 totaled $1.3 billion. These expenditures were incurred in connection with the opening of 33 supermarkets (including nine replacement supermarkets) and the remodeling of 79 supermarkets. Expenditures were also incurred for new supermarkets and remodels in progress, construction or expansion of warehouses, new or enhanced information technology hardware and software and the acquisition or development of shopping centers in which the Company operates. For the nine months ended September 30, 2023, the payment for investments, net of the proceeds from the sale and maturity of investments, was $1.5 billion.
Net cash used in financing activities
Net cash used in financing activities was $1.7 billion and $2.2 billion for the nine months ended September 30, 2023 and September 24, 2022, respectively. The primary use of net cash in financing activities was funding net common stock repurchases and dividend payments. Net common stock repurchases totaled $683 million and $1.3 billion for the nine months ended September 30, 2023 and September 24, 2022, respectively. The Company currently repurchases common stock at the stockholders’ request in accordance with the terms of the Company’s Employee Stock Purchase Plan (ESPP), Non-Employee Directors Stock Purchase Plan (Directors Plan), 401(k) Plan and ESOP. The amount of common stock offered to the Company for repurchase is not within the control of the Company, but is at the discretion of the stockholders. The Company expects to continue to repurchase its common stock, as offered by its stockholders from time to time, at its then current value. However, with the exception of certain shares distributed from the ESOP, such purchases are not required and the Company retains the right to discontinue them at any time.
Dividends
The Company paid quarterly dividends on its common stock totaling $965 million or $0.29 per share and $864 million or $0.254 per share during the nine months ended September 30, 2023 and September 24, 2022, respectively.
Capital expenditures projection
Capital expenditures for the remainder of 2023 are expected to be approximately $800 million, primarily related to new supermarkets, remodeling existing supermarkets, construction or expansion of warehouses, new or enhanced information technology hardware and software and the acquisition or development of shopping centers in which the Company operates. The shopping center acquisitions are financed with internally generated funds and assumed debt, if prepayment penalties for the debt are determined to be significant. This capital program is subject to continuing change and review.
Cash requirements
In 2023, cash requirements for operations, capital expenditures, common stock repurchases and dividend payments are expected to be financed by internally generated funds or liquid assets. Based on the Company’s financial position, it is expected that short-term and long-term borrowings would be available to support the Company’s liquidity requirements, if needed.

17

Forward-Looking Statements
Certain information provided by the Company in this Quarterly Report on Form 10-Q (Quarterly Report) may be forward-looking information as defined in Section 21E of the Securities Exchange Act of 1934 (Exchange Act). Forward-looking information includes statements about the future performance of the Company and is based on management’s assumptions and beliefs in light of the information currently available to them. When used, the words “plan,” “estimate,” “project,” “intend,” “expect,” “believe,” “will” and other similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from those statements including, but not limited to, competitive practices and pricing in the food and drug industries generally and particularly in the Company’s principal markets; results of programs to increase sales, including private label sales; results of programs to control or reduce costs; changes in buying, pricing and promotional practices; changes in shrink management; supply chain disruptions; changes in the general economy, including an economic downturn associated with inflation, the coronavirus pandemic, international conflicts, acts of terrorism or other disruptions; changes in consumer spending; changes in population, employment and job growth in the Company’s principal markets; impacts of a public health crisis, geopolitical conditions or other significant catastrophic events; impacts of an intrusion into, compromise of or disruption in the Company’s information technology systems; and other factors affecting the Company’s business within or beyond the Company’s control. These factors include changes in the rate of inflation; changes in federal, state and local laws and regulations; adverse determinations with respect to litigation or other claims; ability to recruit and retain employees; ability to construct new supermarkets or complete remodels as rapidly as planned; increases in product costs; and increases in operating costs including, but not limited to, labor, fuel and energy costs, debit and credit card fees and pharmacy fees. Other factors and assumptions not identified above could also cause the actual results to differ materially from those set forth in the forward-looking statements. Except as may be required by applicable law, the Company assumes no obligation to publicly update these forward-looking statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company does not utilize financial instruments for trading or other speculative purposes, nor does it utilize leveraged financial instruments. There have been no material changes in the market risk factors from those disclosed in the Annual Report.
Item 4. Controls and Procedures
As of the end of the period covered by this Quarterly Report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer each concluded that the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that such information has been accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, in a manner that allows timely decisions regarding required disclosure. There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation that occurred during the quarter ended September 30, 2023 that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting.

18

PART II. OTHER INFORMATION
Item 1. Legal Proceedings
As reported in the Annual Report, the Company is subject from time to time to various lawsuits, claims and charges arising in the normal course of business. The Company believes its recorded reserves are adequate in light of the probable and estimable liabilities. The estimated amount of reasonably possible losses for lawsuits, claims and charges, individually and in the aggregate, is considered to be immaterial. In the opinion of management, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.
Item 1A. Risk Factors
There have been no material changes in the risk factors from those disclosed in the Annual Report.
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities
Issuer Purchases of Equity Securities
Following are the shares of common stock repurchased by the Company during the three months ended September 30, 2023 (amounts are in millions, except per share amounts):
 
Period
Total
Number of
Shares
Purchased
Average
Price Paid
per Share
Total
Number of
Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs (1)
Approximate
Dollar Value
of Shares
That May Yet Be
Purchased Under
the Plans or
Programs (1)
July 2, 2023
through
August 5, 2023
6 $14.83 N/AN/A
August 6, 2023
through
September 2, 2023
6 14.75 N/AN/A
September 3, 2023
through
September 30, 2023
10 14.75 N/AN/A
 
Total
22 $14.77 N/AN/A
(1)Common stock is made available for sale by the Company only to its current employees and members of its Board of Directors through the ESPP and Directors Plan and to participants of the 401(k) Plan. In addition, common stock is provided to employees through the ESOP. The Company currently repurchases common stock subject to certain terms and conditions. The ESPP, Directors Plan, 401(k) Plan and ESOP each contain provisions prohibiting any transfer for value without the owner first offering the common stock to the Company.
The Company’s common stock is not traded on an established securities market. The amount of common stock offered to the Company for repurchase is not within the control of the Company, but is at the discretion of the stockholders. The Company does not believe that these repurchases of its common stock are within the scope of a publicly announced plan or program (although the terms of the plans discussed above have been communicated to the participants). Thus, the Company does not believe that it has made any repurchases during the three months ended September 30, 2023 required to be disclosed in the last two columns of the table.
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Mine Safety Disclosures
Not Applicable
Item 5. Other Information
Not Applicable

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Item 6. Exhibits
31.1    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2    Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101    The following financial information from this Quarterly Report is formatted in Extensible Business Reporting Language: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Earnings, (iii) Condensed Consolidated Statements of Comprehensive Earnings, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Stockholders’ Equity and (vi) Notes to Condensed Consolidated Financial Statements.
104     Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 PUBLIX SUPER MARKETS, INC.
Date:November 1, 2023 /s/  Merriann M. Metz
 Merriann M. Metz, Secretary
Date:November 1, 2023 /s/  David P. Phillips
David P. Phillips, Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)


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