Albertsons Companies(ACI) - 2022 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1 - Condensed Consolidated Financial Statements (unaudited) Unaudited condensed consolidated financial statements for Q1 FY2021, detailing financial position, performance, and cash flows Condensed Consolidated Balance Sheets Presents financial position at June 19, 2021, versus February 27, 2021, detailing changes in assets, liabilities, and equity | Metric (in millions) | June 19, 2021 | February 27, 2021 | | :------------------- | :------------ | :---------------- | | ASSETS | | | | Total current assets | $7,377.5 | $6,988.0 | | TOTAL ASSETS | $26,781.9 | $26,598.0 | | LIABILITIES | | | | Total current liabilities | $6,704.2 | $6,832.2 | | Total LIABILITIES AND STOCKHOLDERS' EQUITY | $26,781.9 | $26,598.0 | | STOCKHOLDERS' EQUITY | | | | Total stockholders' equity | $1,698.4 | $1,324.3 | - Total assets increased from $26,598.0 million to $26,781.9 million, while total stockholders' equity increased from $1,324.3 million to $1,698.4 million[6] Condensed Consolidated Statements of Operations and Comprehensive Income Details financial performance for the 16 weeks ended June 19, 2021, showing decreased net sales and net income | Metric (in millions, except per share data) | 16 weeks ended June 19, 2021 | 16 weeks ended June 20, 2020 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Net sales and other revenue | $21,269.4 | $22,751.6 | | Gross profit | $6,191.0 | $6,771.5 | | Operating income | $687.1 | $971.8 | | Net income | $444.8 | $586.2 | | Basic net income per Class A common share | $0.80 | $1.03 | | Diluted net income per Class A common share | $0.78 | $1.00 | - Net sales and other revenue decreased by 6.5% from $22,751.6 million in Q1 FY2020 to $21,269.4 million in Q1 FY2021[10] - Net income decreased by 24.1% from $586.2 million to $444.8 million[10] Condensed Consolidated Statements of Cash Flows Illustrates cash sources and uses for operating, investing, and financing activities, showing a significant decrease in operating cash flow | Metric (in millions) | 16 weeks ended June 19, 2021 | 16 weeks ended June 20, 2020 | | :------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $1,059.0 | $2,091.9 | | Net cash used in investing activities | $(493.0) | $(399.4) | | Net cash used in financing activities | $(109.2) | $(106.9) | | Net increase in cash and cash equivalents and restricted cash | $456.8 | $1,585.6 | | Cash and cash equivalents and restricted cash at end of period | $2,224.4 | $2,064.5 | - Net cash provided by operating activities decreased by 49.4% from $2,091.9 million in Q1 FY2020 to $1,059.0 million in Q1 FY2021[14] Condensed Consolidated Statements of Stockholders' Equity Outlines changes in stockholders' equity, including common stock, paid-in capital, treasury stock, and retained earnings | Metric (in millions) | Balance as of February 27, 2021 | Balance as of June 19, 2021 | | :------------------- | :------------------------------ | :-------------------------- | | Total stockholders' equity | $1,324.3 | $1,698.4 | | Net income | — | $444.8 | | Cash dividends declared on common stock | — | $(46.5) | | Dividends accrued on convertible preferred stock | — | $(36.4) | - Total stockholders' equity increased from $1,324.3 million at February 27, 2021, to $1,698.4 million at June 19, 2021, primarily due to net income, partially offset by dividends[17] Notes to Condensed Consolidated Financial Statements Provides detailed explanations and supporting information for the condensed consolidated financial statements NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Describes the basis for interim financial statement preparation, including consolidation, restricted cash, inventories, equity-based compensation, income taxes, segments, and revenue recognition - The company recorded LIFO expense of $14.5 million for the 16 weeks ended June 19, 2021, an increase from $13.1 million for the same period in 2020[22] | Equity-based compensation expense (in millions) | 16 weeks ended June 19, 2021 | 16 weeks ended June 20, 2020 | | :---------------------------------------------- | :--------------------------- | :--------------------------- | | RSUs | $19.7 | $17.8 | | RSAs | $2.5 | $1.2 | | Total equity-based compensation expense | $22.2 | $19.0 | - The effective income tax rate decreased to 23.0% for the 16 weeks ended June 19, 2021, from 25.6% in the prior year, primarily due to discrete state income tax benefits[27] | Sales revenue by type of similar product (in millions) | June 19, 2021 Amount | June 19, 2021 % of Total | June 20, 2020 Amount | June 20, 2020 % of Total | | :----------------------------------------------------- | :------------------- | :----------------------- | :------------------- | :----------------------- | | Non-perishables | $9,270.3 | 43.6% | $10,783.8 | 47.4% | | Perishables | $8,912.6 | 41.9% | $9,555.6 | 42.0% | | Pharmacy | $1,728.6 | 8.1% | $1,554.9 | 6.8% | | Fuel | $1,049.3 | 4.9% | $589.2 | 2.6% | | Other | $308.6 | 1.5% | $268.1 | 1.2% | | Net sales and other revenue | $21,269.4 | 100.0% | $22,751.6 | 100.0% | NOTE 2 - FAIR VALUE MEASUREMENTS Details fair value measurements for assets and liabilities, categorized by a three-level hierarchy, and the fair value of total debt | Fair Value Measurements (in millions) | Total (June 19, 2021) | Level 1 (June 19, 2021) | Level 2 (June 19, 2021) | Level 3 (June 19, 2021) | | :------------------------------------ | :-------------------- | :---------------------- | :---------------------- | :---------------------- | | Assets: | | | | | | Short-term investments | $11.7 | $4.8 | $6.9 | — | | Non-current investments | $104.9 | $32.3 | $72.6 | — | | Derivative contracts | $9.9 | — | $9.9 | — | | Total Assets | $126.5 | $37.1 | $89.4 | — | | Liabilities: | | | | | | Derivative contracts | $34.