Winn-Dixie Stores, Inc. released its 2001 Annual Report which highlighted a fresh approach to improving operations and customer satisfaction. Key points included: 1) Winn-Dixie completed a major restructuring in 2001 that closed underperforming stores and centralized functions to save $400 million annually. 2) Operational improvements like new training programs and store remodels enhanced the customer experience. 3) Acquisitions of Gooding's and Jitney Jungle supermarkets expanded Winn-Dixie's store network and market share.

1. A F RES H APPR O A C H
WINN-DIXIE STORES, INC. 2001 ANNUAL REPORT

2. NEW WINN DIXIE
THE NEW
2001 Financial Highlights 2 Letter to Shareholders 5 A Fresh Approach 9
Directors & Management 17 Financial Review 19

3. 2001
FINANCIAL HIGHLIGHTS PERCENTAGE
F O R T H E F I S C A L Y E A R J U N E 2 7, 2 0 0 1 2000
(EXCLUDING N O N- R E C U R R I N G C H A R G E S ) CHANGE
(Dollars in thousands except per share data)
FINANCIAL INFORMATION
(Excluding non-recurring charges)
- 5.8
Sales 12,903,373 13,697,547
17.0 Per Store 11,600 11,600 No Change
- 7.3
Gross Profit 3,454,027 3,727,050
RETURN ON
AVERAGE EQUITY
– 1.5
Percent To Sales 26.8 % 27.2 %
6.6 (In percentages)
- 11.3
Operating & Administrative Expenses 3,180,297 3,586,351
- 5.7
Percent To Sales 24.7% 26.2 %
2000 2001
+ 94.6
Operating Income 273,730 140,699
+ 110.0
Percent To Sales 2.1 % 1.0 %
+ 15.1
EBITDA 457,289 397,370
457.3
+ 157.6
Return On Average Equity 17.0 % 6.6 %
397.4
- 28.5
Depreciation & Amortization 183,559 256,671
EBITDA
(In millions of dollars)
- 4.1
Dividends Paid On Common Stock 142,853 148,966
AT YEAR END
2000 2001
+ 792.0
Working Capital 449,294 50,369
+ 40.0
Current Ratio 1.4 1.0
- 0.3
Total Shares Outstanding (000’s) 140,466 140,830
1.00
+ 6.9
Stores In Operation 1,153 1,079
0.52 EARNINGS PER SHARE
2000 2001
2 3
WINN-DIXIE 2001 2001 WINN-DIXIE

4. During this past fiscal year, Winn-Dixie has taken a
fresh approach to our business. Today’s Winn-Dixie is
leaner, more efficient, and more agile than a year ago.
Equally important, the company is totally dedicated to
excellent customer service. We have made some dramatic
changes in operations. It is especially satisfying to
report that the restructuring program announced in
April 2000 was substantially implemented, and we are
achieving the desired results. In fact, its impact has
already been reflected in reduced expenses and
improved profitability.
restructuring expenditures of $552.2 million by fiscal
Several restructuring initiatives will have long-term
year-end. Virtually all of the action items in the
impact on the company, improving our retail stores and
restructuring plan have been accomplished as of June
increasing our overall efficiency. We are saving
27, 2001. Highlights include:
approximately $400 million a year, having completed
M E S S A G E T O O U R S H A R E H O L D E R S:
• Sharpened focus on total customer satisfaction;
• Centralized functions such as accounting, real
estate, procurement and marketing for better
control and efficiency;
• Closed 112 stores and certain manufacturing and
distribution centers, all of which had been
underperforming assets;
• Reformatted store layouts and retrofitted more
than half the chain – “right-sizing” key
departments to increase profitability;
• Introduced new methods to better manage
inventory; and
• Revamped performance-based incentive plans.
5
2001 WINN-DIXIE

5. In short, with these steps complete, we have made In addition, as we move ahead with efforts to grow
substantial progress. We have retained assets in our sales, our emphasis will shift to new, targeted
traditional strengths while changing areas of operations marketing and promotional efforts. To this end, we
that needed improvement. Going forward, our business recently retained Cramer-Krasselt, the nation’s fourth
plan is to: largest independent marketing agency, as advertising
• Be the best supermarket operator in the agency of record. A new television advertising campaign
neighborhood; will be unveiled early in fiscal year 2002.
• Provide the right products, excellent service and Of course, financial strength is an important part of
low prices; our picture, ensuring we have the resources to grow
Winn-Dixie to leverage its buying power, with benefits Our sincere appreciation is extended to the many
• Run profitable stores targeted to our customers; through acquisition, capital investments, and aggressive
such as lower cost of goods and reduced inventory. This loyal associates for their efforts to improve customer
and marketing. In early 2001, we issued $300 million of
project involved significant company resources, yet will service during a difficult time for the company. We are
• Maintain strong market share in growing markets. 8.875% Senior Notes Due 2008. The net proceeds of this
help improve margins and increase efficiency long-term. proud of the way they have responded to the greater
offering, together with $400 million of net proceeds
Centralized procurement is one of the new programs demands placed upon them. For example, we are cross-
Winn-Dixie has a tremendous opportunity to grow both under our new $800 million credit facility, refinanced
that also enables division management to focus more training associates in several departments to better
the top- and bottom-line by making the most of our store indebtedness under Winn-Dixie’s existing credit facilities
time and resources on their key jobs — providing serve customers, requiring more flexibility on
network infrastructure. Therefore, a major emphasis for and the balance will be used for general corporate
associates’ part than ever before. Their support in our
purposes.
“be the best supermarket operator commitment to build rapport with customers and
Throughout the year we have continued to strengthen
deliver consistently high service is invaluable.
our management team to prepare for the future. Dennis
in the neighborhood ” In conclusion, we would like to welcome two new
M. Sheehan, a lifelong veteran of the grocery industry,
members of the Board of Directors. Tillie K. Fowler is a
joined as Senior Vice President of Real Estate, a position
former member of the U.S. House of Representatives,
critical to our expansion. Richard C. Judd joined us as
excellent service, growing sales volume, and supporting and currently is a partner in the law firm of Holland &
the past year has been on improving operations and Vice President of Warehousing and Distribution from
store managers. The store manager position is becoming Knight LLP. Also, Ronald Townsend, a member of the
creating efficiencies that will enable us to increase sales Fleming Companies, Inc., to enhance our logistics
increasingly vital at our company. Therefore, it is broadcast industry for more than 35 years, is a
per square foot of existing stores. Our retrofitted and capabilities. Dean Dell Antonia, Vice President,
receiving more organizational support such as communications consultant who was formerly President
redesigned stores better enable us to compete in key Performance & Reward Systems, came to us from Rite Aid
additional training. An important management concept of Gannett Television Group. Both of these new directors
markets, as they are more customer-friendly and cost- Corporation, where he was Managing Director of
in Winn-Dixie’s culture is “Servant Leadership,” the idea bring new experience and perspective to our board.
effective. Compensation and Benefits. Graeme M. Harper, a senior
that all our internal resources support the stores in As a result of the changes made during the past fiscal
As another example of doing business more effectively, consultant with Pricewaterhouse Coopers, was named
better serving our customers. year, our business has been restructured and repositioned.
we lowered our cost structure, providing cash that can Senior Director of Risk Management. A. Brent Kailing,
Acquisitions played a key role in Winn-Dixie’s We have a modern store infrastructure in place and are
be redeployed elsewhere in the business more profitably. previously Vice President of Operations at Smith’s Food
strategy in 2001. They will continue to be an option, investing in the company’s human potential. We have
And we have simplified our division structure to provide and Drugs, joined Winn-Dixie as Division Manager of Fort
given the right opportunities. In the past year, we successfully reduced expenses and improved productivity.
a better foundation for growth, including the benefits of Worth. Robert A. Rowe, Director of Special Projects, was
acquired nine Gooding’s supermarkets in the Orlando Winn-Dixie is better prepared to meet the challenges of
centralized administrative functions. elected Vice President in charge of the Save Rite
area, a core market that offers the potential for sales the future. Our whole organization is now focused on
Without doubt, one of the major achievements in FY division. Most recently, C. John Kistel, a vice president
growth. Even more significantly, we acquired 68 stores delivering profitable growth for our shareholders in the
2001 has been the implementation of centralized of the Penn Traffic group, joined Winn-Dixie as Vice
and 32 fuel centers owned by Mississippi-based Jitney years ahead.
procurement. The new procurement system enables President of General Merchandise.
Jungle. The acquisition was accretive to earnings and
cash flow, and the other synergies were immediate. The
acquired store base, which is served by two of our
existing distribution centers, has been easily integrated
into our existing division structure. Gooding’s and
A. Dano Davis Allen R. Rowland
Jitney Jungle join a family of brands that also include Chairman of the Board President and
Winn-Dixie, Save Rite, Thriftway and City Markets. Chief Executive Officer
6 7
WINN-DIXIE 2001 2001 WINN-DIXIE

6. F R E S H I D E A S. Total Customer Satisfaction
Delivering what the customer wants represents the
future of Winn-Dixie. Customer service, attractive pricing,
and modern store environments play vital roles in
delivering a positive Winn-Dixie shopping experience. As
part of our commitment to customer satisfaction, in the
past fiscal year alone the company has ...
9
2001 WINN-DIXIE

7. • Introduced new training programs in customer
service, food safety and sanitation. The First Class
Service initiative is a major example of an exciting new
program. The main goals of First Class Service are to
make customers our friends and to make Winn-Dixie a
fun, desirable place to work. New programs to measure
F R E S H AT T I T U D E S.
customer satisfaction and to provide reward and
recognition for top-performing employees also have
been put into place.
• Empowered store managers and division management
to act aggressively to meet local customer needs.
• Improved labor productivity so that more associates
are available to interact with customers, and to shorten
waiting lines at peak “rush” hours.
10 WINN-DIXIE 2001

8. Many of the operational improvements this year
strengthen our “speed to shelf” capabilities, providing
the popular brands customers seek. We offer both
national and regional brands, with many of the latter
having cultural or ethnic appeal. A major growth
opportunity for us is the Winn-Dixie line of store-brand
products.
These product lines carry higher margins than
comparable national brands and promote customer
loyalty. Winn-Dixie’s Chek soda, for example, holds
a leading position in several markets, outselling
prominent national brands. We have one of the leading
F R E S H T H I N K I N G. store-brand programs in our industry. In fact, our high-
quality manufacturing facilities are handling contract
manufacturing for other companies.
A long-standing Winn-Dixie strength has been our
integrated supply line: manufacturing, distribution
and retailing. The sweeping changes implemented in
2001 have bolstered this system and financial returns
have shown it to be a highly effective business strategy
for us.
13
2001 WINN-DIXIE

9. The New Look of Winn-Dixie Stores
A pleasant customer shopping experience heavily
depends on clean, well-stocked, customer-friendly retail
stores. Creating a fresh look at Winn-Dixie stores, and
updating this new look to keep it current, is a top
priority for senior management.
• Winn-Dixie’s store base has been revitalized, with
more than 60% of our stores new or remodeled in the
past five years. Approximately 50% of our stores have
been improved in the past year alone.
• We are already achieving increasingly accurate
inventory tracking and greater purchasing leverage
because of our new centralized procurement system.
• As appropriate, new “store within a store” concepts
will be added, such as pet centers, soft drink and snack • Product freshness - at the deli/bakery counter, the
centers, household cleaning sections, or baby-needs meat and seafood departments, produce, the dairy
centers. New growth opportunities for us range from shelves — is enhanced by new store formats and central
A F R E S H L O O K.
pharmacy operations in our stores to fuel centers such as procurement. Variety and quality are the hallmarks of our
those acquired as part of Jitney Jungle. Also, the perishables departments. And our new store layouts
company has seven profitable liquor stores in operation enable us to obtain the same amount of revenue in less
and holds additional liquor licenses for future expansion. space, allowing more for grocery products and non-food
merchandise.
The goal is to ensure that First Class Service is a way of
life at Winn-Dixie, bringing our retail customers back to
us time and time again as their first shopping choice.
14 WINN-DIXIE 2001

10. &
DIRECTORS MANAGEMENT
Man ag e m en t an d yea rs o f s er v ic e:
Vice Presidents/
Corporate Officers
W. R. (Bob) Baxley, 2
Vice President
Deli & Bakery
Vice Presidents/
Division Managers D. Michael Byrum, 28
Vice President
J. Darryl Fitzgerald, 30 Corporate Controller
Charlotte Division Chief Accounting Officer
142 Stores
Pictured from left to right: Carleton T. Rider, Julia B. North and Ronald Townsend
Keith B. Cherry, 2
Michael J. Istre, 32 Vice President
New Orleans Division Design & Construction
158 Stores
Executive Committee G. E. (Mickey) Clerc, Jr., 40
A. Brent Kailing Vice President
Allen R. Rowland, 2 Fort Worth Division Public Relations
President 76 Stores
Chief Executive Officer
Dean Dell Antonia, 1
Chairman of the Executive Raymond C. Lunn, Jr., 32 Vice President
Committee Miami Division Performance and Reward Systems
Board of Directors 148 Stores
Daniel G. Lafever, 34
Judith W. Dixon, 37
Senior Vice President
A. Dano Davis Daniel J. Richardson, 35 Secretary
Sales & Procurement
Chairman Montgomery Division
190 Stores C. W. (Bill) Doolittle, 18
Richard P. McCook, 17
Allen R. Rowland Vice President
Senior Vice President
President Robert A. Rowe, 1 Security
Chief Financial Officer
Chief Executive Officer Save Rite Division
11 Stores Randall L. Hutton, 34
Dennis M. Sheehan, 1
Armando M. Codina Vice President
Senior Vice President
Chairman Mark A. Sellers, 28 Government Relations
Real Estate
Codina Group, Inc. Orlando Division
153 Stores Richard C. (Dick) Judd
John R. Sheehan, 2
T. Wayne Davis Vice President
Senior Vice President
Chairman H. Matt Solana, Jr., 30
Pictured from left to right: T. Wayne Davis, Tillie K. Fowler, Charles P. Stephens and A. Dano Davis Warehousing and Distribution
Operations
Transit Group, Inc. Raleigh Division
127 Stores C. John Kistel, Jr.
August B. Toscano, 2
Tillie K. Fowler Vice President
Senior Vice President
Partner Donald A. Weaver, 29 General Merchandise
Human Resources
Holland & Knight LLP Jacksonville Division
136 Stores Ted M. Moon, 33
E. Ellis Zahra, Jr., 6
Radford D. Lovett Vice President
Senior Vice President
Chairman Produce and Floral
General Counsel
Commodores Point
Terminal Corporation Michael E. Nixon, 30
Vice President
Julia B. North Information Systems
Telecommunications Consultant
Philip H. Payment, Jr., 30
Carleton T. Rider Vice President
Senior Administrator Grocery
Mayo Foundation
Monty H. Powers, 30
Charles P. Stephens Vice President
Vice President Meat & Seafood
Norman W. Paschall Co., Inc.
Kellie D. Ross, 2
Ronald Townsend Vice President
Communications Consultant Strategic Planning
Treasurer
Pictured from left to right: Radford D. Lovett, Armando M. Codina and Allen R. Rowland
Audit Committee
Corporate Governance Committee
Compensation Committee
17
2001 WINN-DIXIE

11. FF INAN C I AAL
I N A NCI L
REVIEW
18 WINN-DIXIE 2001

12. WINN-DIXIE STORES, INC. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS,
SUPPORTING SCHEDULES AND SUPPLEMENTAL DATA
Selected Financial Data 20
Management’s Discussion and Analysis of Financial Condition and Results of Operations 22
Consolidated Financial Statements and Supplemental Data:
Report of Management 26
Independent Auditors’ Report 27
Consolidated Statements of Operations,
Years ended June 27, 2001, June 28, 2000 and June 30, 1999 28
Consolidated Balance Sheets, June 27, 2001 and June 28, 2000 29
Consolidated Statements of Cash Flows,
Years ended June 27, 2001, June 28, 2000 and June 30, 1999 30
Consolidated Statements of Shareholders’ Equity,
Years ended June 27, 2001, June 28, 2000 and June 30, 1999 31
Notes to Consolidated Financial Statements 32
19
2001 WINN-DIXIE

13. SELECTED FINANCIAL DATA
Dollars in millions except per share data
1999*
2001 2000 1998 1997
Sales
Net sales 13,617 13,219
$ 12,903 13,698 14,137
Percent (decrease) increase 3.0 2.0
(5.8 ) (3.1 ) 3.8
Average annual sales per store 11.7 11.3
11.6
$ 11.6 11.9
Earnings Summary
Gross profit 3,729 3,411
3,454
$ 3,727 3,903
Percent of sales 27.4 25.8
26.8 27.2 27.6
LIFO (credit) charge (12) 3
(12 )
$ 15 4
Operating and administrative expenses 3,365 3,070
3,180
$ 3,586 3,577
Percent of sales 24.7 23.2
24.7 26.2 25.3
Restructuring and other non-recurring charges 18 -
147
$ 396 -
Percent of sales 0.1 -
1.1 2.9 -
Company owned life insurance (COLI) tax case (after tax) - -
3
$ 42 -
Percent of sales - -
0.0 0.3 -
Net earnings (loss) (229 ) 199 204
$ 45 182
Basic earnings (loss) per share (1.57) 1.34 1.36
$ 0.32 1.23
Diluted earnings (loss) per share (1.57) 1.33 1.36
$ 0.32 1.23
Percent of net earnings (loss) to sales 1.5 1.5
0.4 (1.7 ) 1.3
Percent of net earnings (loss) to average equity 14.7 15.3
5.5 (20.1) 13.1
Net earnings excluding COLI, restructuring and
other non-recurring charges 210 204
$ 139 75 182
Basic earnings per share 1.41 1.36
$ 1.00 0.52 1.23
Diluted earnings per share 1.41 1.36
$ 0.99 0.52 1.23
Percent of net earnings to sales 1.5 1.5
1.1 0.5 1.3
Percent of net earnings to average equity 15.5 15.3
17.0 6.6 13.1
EBITDA 676.7 632.8
$ 310.0 1.3 618.5
EBITDAR 985.9 911.6
$ 658.1 325.8 961.4
EBITDA excluding restructuring and non-recurring charges 694.8 632.8
$ 457.3 397.4 618.5
EBITDAR excluding restructuring and non-recurring charges 1,004.0 911.6
$ 805.3 721.9 961.4
Dividends
Dividends paid 150.9 144.2
$ 142.9 149.0 151.2
Percent of net earnings (loss) (65.1) 76.0 70.5
315.3 82.9
Per share (present rate $1.02) 1.02 0.96
$ 1.02 1.02 1.02
Common Stock (WIN)
Total shares outstanding (000,000) 148.5 148.9
140.5 140.8 148.6
NYSE – Common stock price range - High 59.25 42.38
$ 33.12 41.94 52.19
- Low 33.69 29.88
$ 13.44 14.25 28.63
* 53 weeks
20 WINN-DIXIE 2001

14. SELECTED FINANCIAL DATA - continued
Dollars in millions except per share data
1999*
2001 2000 1998 1997
Financial Data
Cash flow information:
464.5 413.9
$ 743.3 436.4
Net cash provided by operating activities 244.9
(443.6 ) (325.9) (477.7 )
$ (196.1 ) (335.1)
Net cash used in investing activities
(129.2 ) 45.7
$ (542.3) (100.0)
Net cash provided by (used in) financing activities 290.2
368.6 423.1
$ 213.0 334.3
Capital expenditures, net 313.3
330.4 291.2
$ 256.7 292.4
Depreciation and amortization 183.6
262.6 220.1
$ 50.4 285.0
Working capital 449.3
1.4 1.2
1.0 1.2
Current ratio 1.4
3,069 2,921
$ 2,747 3,149
Total assets 3,042
49 54
$ 32 38
Obligations under capital leases 29
2,389 2,048
$ 2,408 2,575
Present value of future rentals under operating leases 2,550
34 25
$ 220 35
Long-term rental obligations on closed stores 154
- -
$ - -
Long-term debt 697
2,472 2,127
$ 2,660 2,648
Total long-term obligations (Long-term debt + leases) 3,430
1.8 1.6
$ 3.1 1.9
Long-term obligations to equity ratio 4.4
199.4 206.4
$ (232.0) 182.6
Comprehensive income (loss) 43.7
1,369 1,337
$ 868 1,411
Shareholders’ equity 772
9.22 8.98
$ 6.16 9.50
Book value per share 5.52
2.3 2.5
** 2.1
Ratio of earnings to fixed charges 1.2
2.4 2.5
1.5 2.1
Adjusted ratio of earnings to fixed charges 1.8
Taxes
302 285
$ 123 308
Federal, state and local 215
2.03 1.90
$ 0.85 2.07
Per diluted share 1.53
Stores
1,168 1,174
1,079 1,188
In operation at year-end 1,153
84 83
34 79
Opened and acquired during year 94
90 87
32 59
Closed or sold during year 19
- -
111 -
Closed due to restructuring 1
136 79
42 64
Enlarged or remodeled during year 11
912 805
790 908
New/enlarged/remodeled in last five years 706
78.1 68.6
73.2 76.4
Percent to total stores in operation 61.2
49.6 47.8
48.1 52.0
Year-end retail square footage (000,000) 51.1
42.4 40.7
44.6 43.7
Average store size at year-end (000) 44.3
Other Year-end Data
139 136
120 132
Associates (000) 119
52.0 55.2
45.7 48.1
Shareholder accounts (000) 48.8
45 47
42 40
Shareholders per store 42
* 53 weeks
** For fiscal year ended June 28, 2000, earnings were inadequate to cover fixed charges due to non-recurring charges totaling $405 million relating to the restructuring and other
non-recurring charges. The dollar amount of the coverage deficiency for the year ended June 28, 2000 was $302 million.
21
2001 WINN-DIXIE

15. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
operating and administrative expenses were 24.7%, 26.2% and
Results of Operations
25.3% in fiscal 2001, 2000 and 1999, respectively. The decrease
Sales for fiscal 2001, a 52-week year, were $12.9 billion,
in operating and administrative expenses was primarily due to a
compared to fiscal 2000, $13.7 billion, a 52-week year, and fiscal
decrease in retail and administrative operating expenses, such as
1999, $14.1 billion, a 53-week year. This reflects a decrease of
payroll, depreciation, rent and leasehold improvement
5.8% for fiscal 2001, a decrease of 3.1% for fiscal 2000 and an
amortization. The expense reduction was an expected result of
increase of 3.8% in 1999. Average store sales decreased 0.6% for
the restructuring and came primarily from the elimination of high
the current year, decreased 1.2% in fiscal 2000 and increased
labor cost service departments and expense reductions from the
2.1% in fiscal 1999. Identical store sales decreased 4.4%, 2.7%
retrofit activity, certain labor efficiency initiatives adopted by
and 0.9% for 2001, 2000 and 1999, respectively.
the Company and from the closing of the division offices and
Identical sales decreased largely as a result of the elimination
retail stores.
of unprofitable sales departments (deli/cafes, melon bars, salad
Interest expense totaled $52.8 million, $47.1 million and
bars, dry cleaners and selected floral, seafood and pharmacy
$29.6 million in fiscal 2001, 2000 and 1999, respectively.
departments), the elimination of unprofitable sales items in
Interest expense is primarily interest on short-term and long-
remaining departments, a reduction in the number of 24-hour
term debt and interest on capital lease obligations. Interest
stores and construction disruptions from numerous store
expense also reflects accrued interest relating to an unfavorable
modifications (retrofits). The Company has substantially
opinion from the U.S. Tax Court in October 1999 relating to
completed its planned store retrofits and believes that this
Company Owned Life Insurance (“COLI”) (see Note 7 - Income
program has resulted in labor savings and other efficiencies. The
Taxes). Year-to-date, the interest expense on the COLI reserve
Company believes that the store retrofits have enhanced the
totaled $5.5 million as compared to $19.7 million for the
Company’s competitive position and, in turn, will positively
previous year. Excluding interest on the COLI reserve, interest
impact the Company’s sales during fiscal 2002.
expense has increased in the current year as compared to the
For the 52 weeks ended June 27, 2001, the Company opened
previous year due to an increase in the amount of total debt
94 new stores, averaging 38,500 square feet, closed 20 stores,
outstanding and an increase in interest rates in fiscal 2001.
averaging 34,800 square feet and enlarged or remodeled 11 store
The Company capitalized interest totaling $5.9 million for the
locations, for a total of 1,153 locations in operation on June 27,
year, related to construction of new stores and a warehouse
2001, compared to 1,079 as of June 28, 2000. As of June 27,
facility in Baldwin, Florida.
2001, retail space totaled 51.1 million square feet, a 6.2%
Earnings (loss) before income taxes were $73.6 million,
increase over the prior year. The 94 store openings include 68
$(302.4) million and $296.5 million in fiscal 2001, 2000 and
Jitney Jungle stores and nine Gooding’s stores that were
1999, respectively. The increase in pretax earnings for fiscal 2001
purchased during fiscal 2001. The 20 store closings include one
is primarily due to the restructuring charge recorded in fiscal
store that closed in the second quarter of fiscal 2001, as part of
2000, and a decrease in operating and administrative expenses in
management’s plan of restructuring.
fiscal 2001. The effective income tax expense (benefit) rates
As a percent of sales, gross profit margins were 26.8%, 27.2%
were 38.5%, (24.3)% and 38.5% for fiscal 2001, 2000 and 1999,
and 27.6% in fiscal 2001, 2000 and 1999, respectively. Gross
respectively. The effective tax rate for fiscal 2000 reflects the
profit dollars have decreased in the current year partially as a
effects of certain restructuring expenses and COLI adjustments.
result of the closing of 112 stores as part of management’s plan
Net earnings (loss) amounted to $45.3 million, or $0.32 per
of restructuring. In addition, gross profit has been negatively
diluted share for 2001, $(228.9) million, or $(1.57) per diluted
impacted by the elimination of high gross profit, yet
share for 2000 and $182.3 million, or $1.23 per diluted share for
unprofitable, sales departments. Higher cost of goods sold was
1999. The LIFO reserve adjustment increased net earnings by
incurred during the Company’s transition to centralized
$7.4 million, or $0.05 per diluted share in 2001, increased the
merchandise procurement at the beginning of the fiscal year.
net loss by $9.3 million, or $0.06 per diluted share in 2000, and
Since the first quarter, gross profit margins on a FIFO basis have
decreased net earnings by $2.7 million, or $0.02 per diluted
improved. A continued focus on the Company’s shrink reduction
share in 1999.
initiatives is expected to add to the improvements during fiscal
The following tables show the effect of the COLI adjustment,
2002.
restructuring and other non-recurring charges on the quarter and
Approximately 84% of the Company’s inventories are valued
year.
under the LIFO (last-in, first-out) method. The LIFO reserve
adjustment resulted in a pre-tax increase in gross profit of $12.0
million in 2001, a decrease of $15.1 million in 2000 and a
decrease of $4.4 million in 1999.
Operating and administrative expenses decreased $406.1
million in fiscal 2001 and increased $9.1 million and $212.2
million in 2000 and 1999, respectively. As a percent of sales,
22 WINN-DIXIE 2001

16. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued
Quarter ending June 27, 2001
As Reported Non-recurring Excluding
Dollar amounts in thousands except per share data
Charges Non-recurring
$ 2,989,861 - 2,989,861
Net sales
2,157,676 - 2,157,676
Cost of sales
832,185 - 832,185
Gross profit on sales
739,776 - 739,776
Operating and administrative expenses
56,497 56,497 -
Restructuring and other non-recurring charges
35,912 (56,497 ) 92,409
Operating income
14,800 887 13,913
Interest expense
21,112 (57,384 ) 78,496
Earnings before income tax
8,107 (22,049 ) 30,156
Income tax
$ 13,005 (35,335 ) 48,340
Net earnings
$ 0.09 (0.25 ) 0.34
Basic earnings per share
$ 0.09 (0.25 ) 0.34
Diluted earnings per share
Year ending June 27, 2001
As Reported Non-recurring Excluding
Dollar amounts in thousands except per share data
Charges Non-recurring
$ 12,903,373 - 12,903,373
Net sales
9,449,346 - 9,449,346
Cost of sales
3,454,027 - 3,454,027
Gross profit on sales
3,180,297 - 3,180,297
Operating and administrative expenses
147,245 147,245 -
Restructuring and other non-recurring charges
126,485 (147,245 ) 273,730
Operating income
52,843 5,512 47,331
Interest expense
73,642 (152,757 ) 226,399
Earnings before income tax
28,331 (58,768 ) 87,099
Income tax
$ 45,311 (93,989 ) 139,300
Net earnings
$ 0.32 (0.68 ) 1.00
Basic earnings per share
$ 0.32 (0.67 ) 0.99
Diluted earnings per share
Liquidity and Capital Resources $196.1 million and $335.1 million in fiscal 2001, 2000 and 1999,
Cash and cash equivalents amounted to $121.1 million, $29.6 respectively. The increase in the current year was due to an
million and $24.7 million at the end of fiscal years 2001, 2000 increase in capital expenditures and the acquisition of 77 retail
and 1999, respectively. Cash provided by operating activities locations. Net capital expenditures totaled $313.3 million,
amounted to $244.9 million in 2001, $743.3 million in 2000 and $213.0 million and $334.3 million in fiscal 2001, 2000 and 1999,
$436.4 million in 1999. The reduction in net cash provided by respectively. These expenditures were for new store locations,
operations is largely due to the increase in merchandise remodeling and enlarging of store locations and maintenance and
inventories and cash payments related to the restructuring. expansion of support facilities. The Company has no material
Inventories increased due in part to additional inventory construction or purchase commitments outstanding as of June
purchased for the stores acquired in the current year. 27, 2001.
Working capital amounted to $449.3 million, $50.4 million and Net cash provided by (used in) financing activities was $290.2
$285.0 million in fiscal 2001, 2000 and 1999, respectively. The million, $(542.3) million and $(100.0) million in 2001, 2000 and
increase was due in part to the refinancing of the Company’s 1999, respectively. The increase in the current year was due
short-term borrowings into long-term debt. primarily to the net proceeds from the $800 million senior
Net cash used in investing activities totaled $443.6 million, secured credit facilities (the “New Facilities”), the issuance of
23
2001 WINN-DIXIE

17. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued
Liquidity and Capital Resources - continued
Notional Maturity Fixed Rate
Amount
$300 million in Senior Unsecured Notes (the “Notes”) and the (in thousands)
suspension of the stock repurchase program in the current year. March 29, 2002 4.60 %
$ 150,000
See Note 8 - Debt for further discussion on the New Facilities and
March 29, 2003 4.81 %
150,000
Notes.
March 29, 2004 5.03 %
100,000
The Company is a party to various proceedings arising under
federal, state and local regulations protecting the environment. $ 400,000
Management is of the opinion that any liability that might result
equal to the one-month LIBOR (3.75% as of June 27, 2001).
from any such proceedings will not have a material adverse effect
The fair value of the Company’s interest rate swaps is obtained
on the Company’s financial condition or results of operations.
from dealer quotes. These values represent the estimated amount
the Company would receive or pay to terminate the agreement,
Impact of Inflation
taking into consideration the difference between the contract
Winn-Dixie’s primary costs, inventory and labor, increase with
rate of interest and rates currently quoted for agreements of
inflation. Recovery of these costs has to come from improved
similar terms and maturities. At June 27, 2001, the fair value of
operating efficiencies — including improvements in merchandise
the Company’s interest rate swaps resulted in an unrealized loss
procurement — and, to the extent permitted by the competition,
of $2.6 million ($1.6 million after tax). The Company recorded
through improved gross profit margins.
the unrealized loss in accumulated other comprehensive income
in shareholders’ equity. During the next 12 months, the Company
Quantitative and Qualitative Disclosures About Market Risk
will incur interest expense including the effect of interest rate
As part of the New Facilities (see Note 8 - Debt), the Company
swaps at a weighted average rate of 7.54% on the $400 million
obtained a $400 million six-year term loan with a variable
outstanding in variable rate debt.
interest rate based on the one-month LIBOR. The Company
The Company measures effectiveness by the ability of interest
utilizes derivative financial instruments to reduce its exposure to
rate swaps to offset cash flows associated with changes in the
market risks from changes in interest rates. The instruments
one-month LIBOR. To the extent that any of these contracts are
primarily used to mitigate these risks are interest rate swaps. All
not considered effective, any changes in fair value relating to the
derivative instruments held by the Company are designated as
ineffective portion of these contracts are immediately recognized
highly effective cash flow hedges of interest rate risk on variable
in income. However, all of the contracts were effective during the
rate debt and, accordingly, the change in fair value of these
period and no gain or loss was reported in earnings.
instruments is recorded as a component of other comprehensive
The following table presents the future principal cash flows and
income.
weighted-average interest rates expected on the Company’s
The Company is exposed to credit-related losses in the event
existing long-term debt instruments and interest rate swap
of nonperformance by counterparties to these financial
agreements. Fair values have been determined based on quoted
instruments. However, counterparties to these agreements are
market prices as of June 27, 2001.
major financial institutions and the risk of loss due to
nonperformance is considered by management to be minimal. The
Company does not hold or issue interest rate swaps for trading
purposes.
The Company has entered into three interest rate swap
agreements to hedge the interest rate risk associated with the
$400 million outstanding in variable rate debt. The purpose of
these swaps is to fix interest rates on variable rate debt and
reduce certain exposures to interest rate fluctuation. At June 27,
2001, the Company had interest rate swaps with a notional
amount of $400 million. The notional amounts do not represent
a measure of exposure to the Company.
The maturity and interest rate on the interest rate swaps are
shown in the following table. The Company will pay the
counterparty interest at a fixed rate as noted and the
counterparty will pay the Company interest at a variable rate
24 WINN-DIXIE 2001

18. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued
EXPECTED MATURITY DATE
Dollar amounts in thousands
2002 2003 2004 2005 2006 Thereafter Total Fair
Value
Liabilities:
Long-term debt
Fixed rate $ $ $ $ $ $ 300,280 $ 301,705 $ 305,920
291 288 285 282 279
Average interest rate 9.40 % 9.40 % 9.40 % 9.40 % 9.40 % 8.88 % 8.88 %
Variable rate $ $ $ $ $ $ 380,000 $ 400,000 $ 400,000
4,000 4,000 4,000 4,000 4,000
Average interest rate 6.70 % 7.90 % 8.74 % 9.09 % 9.29 % 9.44 % 9.38 %
Interest rate derivatives
Interest rate swaps:
$ (2,580)
Notional amount $ 150,000 $ 150,000 $ 100,000 $ $ $ $ 400,000
- - -
Average pay rate 4.60 % 4.81 % 5.03 % - - - 4.79 %
Average receive rate 3.95 % 5.15 % 5.99 % - - - 4.70 %
Cautionary Statement Regarding Forward-Looking • changes in federal, state or local legislation or regulations
Information and Statements affecting food manufacturing, food distribution, or food
This Annual Report contains certain information that retailing, including environmental compliance;
constitutes “forward-looking statements” within the meaning of • the availability and terms of financing, including in
the Private Securities Litigation Reform Act, which involves risks particular the possible impact of changes in the ratings
and uncertainties. Actual results may differ materially from the assigned to the Company by nationally recognized rating
results described in the forward-looking statements. When used agencies; and
in this document, the words “estimate,” “project,” “intend,” • general business and economic conditions in our operating
“believe” and other similar expressions, as they relate to the regions, including the rate of inflation/deflation and
Company, are intended to identify such forward-looking changes in population, consumer demands and spending,
statements. types of employment and number of jobs.
Such statements reflect the current views of the Company and
are subject to certain risks and uncertainties that include, but are Please refer to discussions of these and other factors in this
not limited to: Annual Report and other Company filings with the Securities and
Exchange Commission. The Company disclaims any intent or
• the Company’s ability to achieve successfully the long-term obligation to update publicly these forward-looking statements,
benefits contemplated from the restructuring of operations whether as a result of new information, future events or
adopted by the Board of Directors on April 19, 2000, and otherwise.
which has been substantially completed;
• heightened competition, including specifically the
intensification of price competition, the entry of new
competitors, or the expansion of existing competitors in one
or more operating regions;
25
2001 WINN-DIXIE