US Foods Holding Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>US Foods Holding Corp. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

US Foods Holding Corp. (USFD) filed a Annual Report (10-K) with the SEC on February 15, 2024. US Foods Holding Corp. reported its fiscal year 2023 results, ending December 30, 2023. The company's principal executive offices are located at 9399 W. Higgins Rd., Suite 100, Rosemont, IL 60018. The filing is a 10-K annual report under the Securities Exchange Act of 1934. US Foods Holding Corp. is classified under SIC code 5140 for Wholesale - Groceries & Related Products. The company was incorporated in Illinois.

Why It Matters

For investors and stakeholders tracking US Foods Holding Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of US Foods' financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors and stakeholders to assess the company's performance and future outlook. Understanding the details within this report allows for a deeper analysis of US Foods' market position, competitive landscape, and management's strategic direction in the wholesale grocery sector.

Risk Assessment

Risk Level: medium — US Foods Holding Corp. shows moderate risk based on this filing. The company operates in the highly competitive wholesale food distribution industry, facing risks from economic downturns, supply chain disruptions, and changing customer preferences, as detailed in its 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand US Foods' operational performance and potential challenges in the coming fiscal year.

Key Numbers

• 2023-12-30 — Fiscal Year End (The end date of the reporting period.)
• 2024-02-15 — Filing Date (The date the 10-K was filed.)
• 0001665918 — Central Index Key (Unique identifier for the filer.)
• 001-37786 — SEC File Number (SEC's file number for the company.)

Key Players & Entities

• US Foods Holding Corp. (company) — Filer of the 10-K report.
• Rosemont, IL (location) — Location of the company's principal executive offices.
• Securities Exchange Act of 1934 (regulation) — The act under which the 10-K is filed.
• 5140 (industry_code) — Standard Industrial Classification code for the company.

FAQ

Risk Factors

• Competition [high — market]: The company faces intense competition in the food distribution industry from national, regional, and local competitors, which could adversely affect its business.
• Supply Chain and Logistics [medium — operational]: Disruptions in the supply chain, including transportation and labor issues, can impact the company's ability to deliver products and meet customer demand.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the cost of borrowing and the company's financial performance, particularly given its existing debt.

Key Dates

• 2023-12-30: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-15: Filing Date — Official date the 10-K was submitted to the SEC.

Key Financial Figures

• $0.01 — h r egistered Common Stock, par value $0.01 per share USFD New York Stock Exchange
• $142 million — or in New York, for a purchase price of $142 million (less the amount of the post-closing wo
• $2 million — g working capital adjustment, which was $2 million). The acquisition allows US Foods to fu
• $56 million — in California, for a purchase price of $56 million. The acquisition allows US Foods to fur

Filing Documents

• usfd-20231230.htm (10-K) — 2433KB
• usfd12302023ex211.htm (EX-21.1) — 21KB
• usfd12302023ex231.htm (EX-23.1) — 2KB
• usfd12302023ex311.htm (EX-31.1) — 8KB
• usfd12302023ex312.htm (EX-31.2) — 8KB
• usfd12302023ex321.htm (EX-32.1) — 4KB
• usfd12302023ex322.htm (EX-32.2) — 4KB
• usfd12302023ex97.htm (EX-97) — 62KB
• usfd-20231230_g1.jpg (GRAPHIC) — 206KB
• usfd-20231230_g2.jpg (GRAPHIC) — 139KB
• 0001665918-24-000014.txt (&nbsp;) — 15685KB
• usfd-20231230.xsd (EX-101.SCH) — 101KB
• usfd-20231230_cal.xml (EX-101.CAL) — 146KB
• usfd-20231230_def.xml (EX-101.DEF) — 589KB
• usfd-20231230_lab.xml (EX-101.LAB) — 1170KB
• usfd-20231230_pre.xml (EX-101.PRE) — 929KB
• usfd-20231230_htm.xml (XML) — 2518KB

Business

Item 1. Business 2

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 19

Cybersecurity

Item 1C. Cybersecurity 20

Properties

Item 2. Properties 21

Legal Proceedings

Item 3. Legal Proceedings 22

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 22 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23

[Reserved]

Item 6. [Reserved] 24

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 34

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 36

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 78

Controls and Procedures

Item 9A. Controls and Procedures 78

Other Information

Item 9B. Other Information 80

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 80 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 81

Executive Compensation

Item 11. Executive Compensation 81

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 81

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 81

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 81 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 82

Form 10-K Summary

Item 16. Form 10-K Summary 86

Signatures

Signatures 87 Basis of Presentation We operate on a 52 or 53-week fiscal year, with all periods ending on a Saturday. When a 53-week fiscal year occurs, we report the additional week in the fiscal fourth quarter. The fiscal years ended December 30, 2023, December 31, 2022 and January 1, 2022 are also referred to herein as fiscal years 2023, 2022 and 2021, respectively. Our fiscal years 2023, 2022 and 2021 were 52-week fiscal years.

Forward-Looking Statements

Forward-Looking Statements Statements in this Annual Report on Form 10-K ("Annual Report") which are not historical in nature are "forward-looking statements" within the meaning of the federal securities laws. These statements often include words such as "believe," "expect," "project," "anticipate," "intend," "plan," "outlook," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecast," "mission," "strive," "more," "goal," or similar expressions (although not all forward-looking statements may contain such words) and are based upon various assumptions and our experience in the industry, as well as historical trends, current conditions, and expected future developments. However, you should understand that these statements are not guarantees of performance or results, and there are a number of risks, uncertainties, and other important factors that could cause our actual results to differ materially from those expressed in the forward-looking statements, including, among others, the risks, uncertainties, and other factors set forth in Item 1A of Part I, "Risk Factors," and Item 7 of Part II, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of this Annual Report. In light of these risks, uncertainties, and other important factors, the forward-looking statements in this Annual Report might not prove to be accurate, and you should not place undue reliance on them. All forward-looking statements attributable to us, or others acting on our behalf, are expressly qualified in their entirety by the cautionary statements above and contained elsewhere in this Annual Report. All of these statements speak only as of the date made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law. Comparisons of results between current and prior periods are not intended to express any future trends, o

Business

Item 1. Business US Foods Holding Corp. and its consolidated subsidiaries are referred to in this Annual Report as "we," "our," "us," the "Company," or "US Foods." US Foods Holding Corp. conducts all of its operations through its wholly owned subsidiary US Foods, Inc. ("USF") and its subsidiaries. Our Company We are among America's great food companies and leading foodservice distributors. Built through organic growth and acquisitions, we trace our roots back over 150 years to a number of heritage companies with rich legacies in food innovation and customer service. We strive to inspire and empower chefs and foodservice operators to bring great food experiences to consumers. This mission is supported by our strategy of GREAT FOOD. MADE EASY. , which is centered on providing customers with the innovative products, business support and technology solutions they need to operate their businesses profitably. We operate as one business with standardized business processes, shared systems infrastructure, and an organizational model that optimizes national scale with local execution, allowing us to manage our business as a single operating segment. We have centralized activities where scale matters and our local field structure focuses on customer facing activities. We supply approximately 250,000 customer locations nationwide. These customer locations include independent restaurants, chain restaurants, healthcare, hospitality, education and other customers. We provide fresh, frozen, and dry food products, as well as non-food items, sourced from thousands of suppliers. Approximately 4,000 sales associates manage customer relationships at local, regional, and national levels. Our sales associates are supported by sophisticated marketing and category management capabilities, as well as a sales support team that includes world-class chefs and restaurant operations consultants, new business development managers and others that help us provide more comprehensive service to