Cover Page
Cover Page - shares | 4 Months Ended | |
Jun. 20, 2020 | Aug. 03, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 20, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39350 | |
Entity Registrant Name | Albertsons Companies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4376911 | |
Entity Address, Address Line One | 250 Parkcenter Blvd. | |
Entity Address, City or Town | Boise | |
Entity Address, State or Province | ID | |
Entity Address, Postal Zip Code | 83706 | |
City Area Code | 208 | |
Local Phone Number | 395-6200 | |
Title of 12(b) Security | Class A common stock, $0.01 par value | |
Trading Symbol | ACI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Shares Outstanding | 479,026,753 | |
Entity Central Index Key | 0001646972 | |
Current Fiscal Year End | --02-27 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 20, 2020 | Feb. 29, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2,022.2 | $ 470.7 |
Receivables, net | 530 | 525.3 |
Inventories, net | 4,271.6 | 4,352.5 |
Other current assets | 309 | 382.8 |
Total current assets | 7,132.8 | 5,731.3 |
Property and equipment, net | 9,103.7 | 9,211.9 |
Operating lease right-of-use assets | 5,771.8 | 5,867.4 |
Intangible assets, net | 2,085.5 | 2,087.2 |
Goodwill | 1,183.3 | 1,183.3 |
Other assets | 710.7 | 654 |
TOTAL ASSETS | 25,987.8 | 24,735.1 |
Current liabilities | ||
Accounts payable | 3,399.8 | 2,891.1 |
Accrued salaries and wages | 1,308.2 | 1,126 |
Current maturities of long-term debt and finance lease obligations | 219.1 | 221.4 |
Current maturities of operating lease obligations | 567.7 | 563.1 |
Other current liabilities | 1,255.5 | 1,102.7 |
Total current liabilities | 6,750.3 | 5,904.3 |
Long-term debt and finance lease obligations | 8,484.5 | 8,493.3 |
Long-term operating lease obligations | 5,398.3 | 5,402.8 |
Deferred income taxes | 561.5 | 613.8 |
Other long-term liabilities | 1,999.2 | 2,042.8 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Additional paid-in capital | 1,837.1 | 1,824.3 |
Treasury stock, at cost, 105,283,357 shares held as of June 20, 2020 and 3,671,621 shares held as of February 29, 2020 | (1,705.8) | (25.8) |
Accumulated other comprehensive loss | (116.8) | (118.5) |
Retained earnings | 1,174.6 | 592.3 |
Total stockholders' equity | 1,194.9 | 2,278.1 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 25,987.8 | 24,735.1 |
Series A convertible preferred stock | ||
Current liabilities | ||
Undesignated preferred stock | 310.7 | 0 |
Series A-1 convertible preferred stock | ||
Current liabilities | ||
Undesignated preferred stock | 1,288.4 | 0 |
Undesignated preferred stock | ||
STOCKHOLDERS' EQUITY | ||
Undesignated preferred stock, $0.01 par value; 96,840,000 shares authorized, no shares issued as of June 20, 2020 and 30,000,000 shares authorized, no shares issued and outstanding as of February 29, 2020 | 0 | 0 |
Class A common stock | ||
STOCKHOLDERS' EQUITY | ||
Common stock | 5.8 | 5.8 |
Class A-1 convertible common stock | ||
STOCKHOLDERS' EQUITY | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 20, 2020 | Feb. 29, 2020 |
Common stock shares issued | 582,997,251 | |
Common stock, shares outstanding | 579,325,630 | |
Treasury stock, at cost (in shares) | 105,283,357 | 3,671,621 |
Series A convertible preferred stock | ||
Temporary equity, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Temporary equity, shares authorized | 1,750,000 | 0 |
Temporary equity, shares issued | 340,000 | 0 |
Temporary equity, shares outstanding | 340,000 | 0 |
Series A-1 convertible preferred stock | ||
Temporary equity, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Temporary equity, shares authorized | 1,410,000 | 0 |
Temporary equity, shares issued | 1,410,000 | 0 |
Temporary equity, shares outstanding | 1,410,000 | 0 |
Undesignated preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 96,840,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued | 584,310,110 | 582,997,251 |
Common stock, shares outstanding | 479,026,753 | |
Class A-1 convertible common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 0 |
Common stock shares issued | 0 | 0 |
Common stock, shares outstanding | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Millions, $ in Millions | 4 Months Ended | |
Jun. 20, 2020 | Jun. 15, 2019 | |
Income Statement [Abstract] | ||
Net sales and other revenue | $ 22,751.6 | $ 18,738.4 |
Cost of sales | 15,980.1 | 13,498.8 |
Gross profit | 6,771.5 | 5,239.6 |
Selling and administrative expenses | 5,769.4 | 4,946.6 |
Loss (gain) on property dispositions and impairment losses, net | 30.3 | (28.5) |
Operating income | 971.8 | 321.5 |
Interest expense, net | 180.6 | 225.2 |
Loss on debt extinguishment | 0 | 42.7 |
Other expense (income), net | 3.1 | (11.1) |
Income before income taxes | 788.1 | 64.7 |
Income tax expense | 201.9 | 15.7 |
Net income | 586.2 | 49 |
Other comprehensive income (loss), net of tax | ||
Loss on interest rate swaps | 0 | (27) |
Recognition of pension gain | 0.8 | 23.4 |
Other | 0.9 | 1.7 |
Other comprehensive income (loss) | 1.7 | (1.9) |
Comprehensive income | $ 587.9 | $ 47.1 |
Net income per Class A common share | ||
Basic net income per Class A common share (USD per share) | $ 1.03 | $ 0.08 |
Diluted net income per Class A common share (USD per share) | $ 1 | $ 0.08 |
Weighted average Class A common shares outstanding | ||
Basic (in shares) | 568 | 579.2 |
Diluted (in shares) | 583.7 | 579.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 4 Months Ended | |
Jun. 20, 2020 | Jun. 15, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 586.2 | $ 49 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss (gain) on property dispositions and impairment losses, net | 30.3 | (28.5) |
Depreciation and amortization | 460.1 | 515.9 |
Operating lease right-of-use assets amortization | 176.4 | 162.7 |
LIFO expense | 13.1 | 10.5 |
Deferred income tax | (51.2) | 2.8 |
Contributions to pension and post-retirement benefit plans, net of (income) expense | (63.5) | (8.1) |
Loss on interest rate swaps and commodity hedges, net | 24.5 | 0.3 |
Loss on debt extinguishment | 0 | 42.7 |
Equity-based compensation expense | 19 | 11.1 |
Other | (1.8) | 3.6 |
Changes in operating assets and liabilities: | ||
Receivables, net | (4.7) | 88.7 |
Inventories, net | 67.8 | (63) |
Accounts payable, accrued salaries and wages and other accrued liabilities | 733.1 | 141.4 |
Operating lease liabilities | (98.7) | (151.7) |
Self-insurance assets and liabilities | 24.1 | 12.2 |
Other operating assets and liabilities | 177.2 | 13.1 |
Net cash provided by operating activities | 2,091.9 | 802.7 |
Cash flows from investing activities: | ||
Payments for property, equipment and intangibles, including payments for lease buyouts | (402.3) | (362.1) |
Proceeds from sale of assets | 6.7 | 73.4 |
Other | (3.8) | (5.3) |
Net cash used in investing activities | (399.4) | (294) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 2,000 | 0 |
Payments on long-term borrowings | (2,001.4) | (722.5) |
Payments of obligations under finance leases | (14.1) | (27.7) |
Proceeds from convertible preferred stock | 1,680 | 0 |
Third party issuance costs on convertible preferred stock | (80.9) | 0 |
Treasury stock purchase, at cost | (1,680) | 0 |
Other | (10.5) | (12.5) |
Net cash used in financing activities | (106.9) | (762.7) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 1,585.6 | (254) |
Cash and cash equivalents and restricted cash at beginning of period | 478.9 | 967.7 |
Cash and cash equivalents and restricted cash at end of period | $ 2,064.5 | $ 713.7 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Class A Common Stock | Additional paid in capital | Amount | Accumulated other comprehensive (loss) income | Retained earnings (accumulated deficit) | Adoption of new accounting standards, net of tax | Adoption of new accounting standards, net of taxAccumulated other comprehensive (loss) income | Adoption of new accounting standards, net of taxRetained earnings (accumulated deficit) |
Beginning balance (in shares) at Feb. 23, 2019 | 579,443,146 | 3,671,621 | |||||||
Beginning balance at Feb. 23, 2019 | $ 1,450.7 | $ 5.8 | $ 1,811.2 | $ (25.8) | $ 91.3 | $ (431.8) | $ 574.6 | $ 16.6 | $ 558 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity-based compensation | 11.1 | 11.1 | |||||||
Employee tax withholding on vesting of phantom units | (12.1) | (12.1) | |||||||
Net income | 49 | ||||||||
Other comprehensive income, net of tax | (18.5) | (18.5) | |||||||
Other activity | (0.4) | (0.1) | (0.3) | ||||||
Ending balance (in shares) at Jun. 15, 2019 | 579,443,146 | 3,671,621 | |||||||
Ending balance at Jun. 15, 2019 | 2,054.4 | $ 5.8 | 1,810.1 | $ (25.8) | 89.4 | 174.9 | |||
Beginning balance (in shares) at Feb. 29, 2020 | 582,997,251 | 3,671,621 | |||||||
Beginning balance at Feb. 29, 2020 | 2,278.1 | $ 5.8 | 1,824.3 | $ (25.8) | (118.5) | 592.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock to Company's parents (in shares) | 1,312,859 | ||||||||
Equity-based compensation | 19 | 19 | |||||||
Employee tax withholding on vesting of phantom units | (6.2) | (6.2) | |||||||
Repurchase of common stock (in shares) | 101,611,736 | ||||||||
Repurchase of common stock | (1,680) | $ (1,680) | |||||||
Dividends accrued on convertible preferred stock | (3.9) | (3.9) | |||||||
Net income | 586.2 | 586.2 | |||||||
Other comprehensive income, net of tax | 1.7 | 1.7 | |||||||
Ending balance (in shares) at Jun. 20, 2020 | 584,310,110 | 105,283,357 | |||||||
Ending balance at Jun. 20, 2020 | $ 1,194.9 | $ 5.8 | $ 1,837.1 | $ (1,705.8) | $ (116.8) | $ 1,174.6 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4 Months Ended |
Jun. 20, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying interim Condensed Consolidated Financial Statements include the accounts of Albertsons Companies, Inc. and its subsidiaries (the "Company"). All significant intercompany balances and transactions were eliminated. The Condensed Consolidated Balance Sheet as of February 29, 2020 is derived from the Company's annual audited Consolidated Financial Statements for the fiscal year ended February 29, 2020 , which should be read in conjunction with these Condensed Consolidated Financial Statements and which are included in the Company's Prospectus dated June 25, 2020 filed with the Securities and Exchange Commission ("SEC") pursuant to Rule 424(b) of the Securities Act of 1933, as amended, relating to the Company's Registration Statement on Form S-1 (File No. 333-236956). Certain information in footnote disclosures normally included in annual financial statements was condensed or omitted for the interim periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The interim results of operations and cash flows are not necessarily indicative of those results and cash flows expected for the year. The Company' s results of operations are for the 16 weeks ended June 20, 2020 and June 15, 2019 . Significant Accounting Policies Restricted cash: Restricted cash is included in Other current assets or Other assets depending on the remaining term of the restriction and primarily relates to funds held in escrow. The Company had $42.3 million and $8.2 million of restricted cash as of June 20, 2020 and February 29, 2020 , respectively. Inventories, net: Substantially all of the Company's inventories consist of finished goods valued at the lower of cost or market and net of vendor allowances. The Company uses either item-cost or the retail inventory method to value inventory at the lower of cost or market before application of any last-in, first-out ("LIFO") reserve. Interim LIFO inventory costs are based on management's estimates of expected year-end inventory levels and inflation rates. The Company recorded LIFO expense of $13.1 million and $10.5 million for the 16 weeks ended June 20, 2020 and June 15, 2019 , respectively. Equity-based compensation: The Company maintains the Albertsons Companies, Inc. Restricted Stock Unit Plan (the "Restricted Stock Unit Plan"), which was previously named the "Albertsons Companies, Inc. Phantom Unit Plan" (the "Phantom Unit Plan"). Prior to being amended and restated on June 9, 2020, the Phantom Unit Plan provided for grants of "Phantom Units" to certain employees, directors and consultants. Each Phantom Unit provided a participant with a contractual right to receive, upon vesting, one management incentive unit in each of the Company's parents, Albertsons Investor Holdings LLC ("Albertsons Investor") and KIM ACI, LLC ("KIM ACI"). Upon the amendment and restatement of the Phantom Unit Plan as the Restricted Stock Unit Plan, all outstanding Phantom Units were converted into 11.3 million restricted stock units of the Company ("Restricted Stock Units" or "RSUs"), including 1.9 million performance-based RSUs that are not deemed granted for accounting purposes, under the Restricted Stock Unit Plan, subject to substantially identical terms and conditions as applied prior to the conversion. No changes to vesting conditions or the fair value of the award occurred as a result of the conversion. Upon vesting, an award of Restricted Stock Units will be settled in shares of the Company's common stock. The fair value of the Phantom Units was determined using an option pricing model, adjusted for lack of marketability and using an expected term or time to liquidity based on judgments made by management. For the 16 weeks ended June 20, 2020 and June 15, 2019 , equity-based compensation expense recognized by the Company related to these awards was $17.8 million and $9.9 million , respectively. For the 16 weeks ended June 20, 2020 and June 15, 2019 , the Company recorded an income tax benefit of $4.6 million and $2.6 million , respectively. On May 14, 2020, the Company issued 1.0 million Phantom Units, which were converted into 4.3 million RSUs upon the amendment and restatement of the Phantom Unit Plan, to employees and directors. On a converted basis, this issuance included 3.2 million time-based vesting RSUs that were deemed granted and 0.4 million performance-based vesting RSUs that were deemed granted. The remaining 0.7 million RSUs will only be deemed granted upon the establishment of the annual performance target for fiscal 2021 and fiscal 2022, as applicable. The 3.6 million RSUs deemed granted have an aggregate grant date value of $57.8 million . As of June 20, 2020 , there was $87.9 million of unrecognized costs related to 9.4 million unvested RSUs deemed granted for accounting purposes. That cost is expected to be recognized over a weighted average period of 2.03 years . On April 25, 2019, upon the commencement of employment, the Company's President and Chief Executive Officer was granted direct equity interests in each of the Company's parents, Albertsons Investor and KIM ACI. These equity interests generally vest over five years , with 50% based solely on a service period and 50% upon a service period and achievement of certain performance-based thresholds. Equity-based compensation expense recognized by the Company related to these equity interests was $1.2 million for both the 16 weeks ended June 20, 2020 and June 15, 2019 . As of June 20, 2020 , there was $8.8 million of unrecognized costs related to the equity interests deemed granted. That cost is expected to be recognized over a weighted average period of 3.14 years . On June 30, 2020, upon consummation of the Company's initial public offering ("IPO"), the unvested direct equity interests in each of the Company's parents converted into 1.7 million shares of restricted common stock of the Company, including 0.6 million performance-based restricted common stock awards that are not deemed granted for accounting purposes. No changes to vesting conditions or the fair value of the award occurred as a result of the conversion. Treasury stock: On June 9, 2020, the Company used $1,680.0 million , an amount equal to the proceeds from the sale and issuance of the Company's Series A-1 convertible preferred stock ("Series A-1 preferred stock") and Series A convertible preferred stock ("Series A preferred stock" and together with the Series A-1 preferred stock, the "Convertible Preferred Stock"), to repurchase 101,611,736 shares of common stock from the Company's parents (the "Repurchase"). The shares are classified as treasury stock on the Condensed Consolidated Balance Sheets. The proceeds received by the Company's parents from the Repurchase were distributed to their members, which include the Company's sponsors and current and former members of management. Income taxes: Income tax expense was $201.9 million , representing a 25.6% effective tax rate, for the 16 weeks ended June 20, 2020 . Income tax expense was $15.7 million , representing a 24.3% effective tax rate, for the 16 weeks ended June 15, 2019 . The Company's effective tax rate for the 16 weeks ended June 20, 2020 d iffers from the federal income tax statutory rate of 21% primarily due to state income taxes, partially offset by income tax credits. Segments : The Company and its subsidiaries offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services in its stores or through eCommerce channels. The Company's operating divisions are geographically based, have similar economic characteristics and similar expected long-term financial performance. The Company's operating segments and reporting units are its 13 operating divisions, which are reported in one reportable segment. Each reporting unit constitutes a business for which discrete financial information is available and for which management regularly reviews the operating results. Across all operating segments, the Company operates primarily one store format. Each division offers through its stores and eCommerce channels the same general mix of products with similar pricing to similar categories of customers, has similar distribution methods, operates in similar regulatory environments and purchases merchandise from similar or the same vendors. Revenue Recognition: Revenues from the retail sale of products are recognized at the point of sale or delivery to the customer, net of returns and sales tax. Pharmacy sales are recorded upon the customer receiving the prescription. Third-party receivables from pharmacy sales were $246.1 million and $218.5 million as of June 20, 2020 and February 29, 2020 , respectively, and are recorded in Receivables, net. For eCommerce related sales, which primarily include home delivery and Drive Up & Go curbside pickup, revenues are recognized upon either pickup in store or delivery to the customer and may include revenue for separately charged delivery services. Discounts provided to customers by the Company at the time of sale are recognized as a reduction in sales as the products are sold. Discounts provided to customers by vendors, usually in the form of coupons, are not recognized as a reduction in sales, provided the coupons are redeemable at any retailer that accepts coupons. The Company recognizes revenue and records a corresponding receivable from the vendor for the difference between the sales prices and the cash received from the customer. The Company records a contract liability when rewards are earned by customers in connection with the Company's loyalty programs. As rewards are redeemed or expire, the Company reduces the contract liability and recognizes revenue. The contract liability balance was immaterial as of June 20, 2020 and February 29, 2020 . The Company records a contract liability when it sells its own proprietary gift cards. The Company records a sale when the customer redeems the gift card. The Company's gift cards do not expire. The Company reduces the contract liability and records revenue for the unused portion of gift cards ("breakage") in proportion to its customers' pattern of redemption, which the Company determined to be the historical redemption rate. The Company's contract liability related to gift cards was $62.2 million as of June 20, 2020 and $52.2 million as of February 29, 2020 . Breakage amounts were immaterial for the 16 weeks ended June 20, 2020 and June 15, 2019 , respectively. Disaggregated Revenues The following table represents sales revenue by type of similar product (dollars in millions): 16 weeks ended June 20, June 15, Amount (1) % of Total Amount (1) % of Total Non-perishables (2) $ 10,783.8 47.4 % $ 8,022.2 42.8 % Perishables (3) 9,555.6 42.0 7,811.6 41.7 Pharmacy 1,554.9 6.8 1,573.2 8.4 Fuel 589.2 2.6 1,076.5 5.7 Other (4) 268.1 1.2 254.9 1.4 Net sales and other revenue $ 22,751.6 100.0 % $ 18,738.4 100.0 % (1) eCommerce related sales are included in the categories to which the revenue pertains. (2) Consists primarily of general merchandise, grocery and frozen foods. (3) Consists primarily of produce, dairy, meat, deli, floral and seafood. (4) Consists primarily of wholesale revenue to third parties, commissions and other miscellaneous revenue. Recently issued accounting standards: In December 2019, the Financial Accounting Standards Board issued ASU 2019-12, " Simplifying the Accounting for Income Taxes ." This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. This ASU also simplifies aspects of the accounting for franchise taxes, enacts changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The ASU will take effect for public entities for annual reporting periods beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect of this standard on its Consolidated Financial Statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 4 Months Ended |
Jun. 20, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The accounting guidance for fair value established a framework for measuring fair value and established a three-level valuation hierarchy for disclosure of fair value measurement. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability at the measurement date. The three levels are defined as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 - Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions that market participants would use to value the asset or liability. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following table presents assets and liabilities which were measured at fair value on a recurring basis as of June 20, 2020 (in millions): Fair Value Measurements Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market $ 14.0 $ 14.0 $ — $ — Short-term investments (1) 13.0 3.8 9.2 — Non-current investments (2) 84.3 22.3 62.0 — Total $ 111.3 $ 40.1 $ 71.2 $ — Liabilities: Derivative contracts (3) $ 78.3 $ — $ 78.3 $ — Total $ 78.3 $ — $ 78.3 $ — (1) Primarily relates to Mutual Funds. Included in Other current assets. (2) Primarily relates to investments in publicly traded stock classified as available for sale (Level 1) and U.S. Treasury Notes and Corporate Bonds (Level 2). Included in Other assets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities. The following table presents assets and liabilities which were measured at fair value on a recurring basis as of February 29, 2020 (in millions): Fair Value Measurements Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market $ 2.0 $ 2.0 $ — $ — Short-term investments (1) 13.5 5.0 8.5 — Non-current investments (2) 85.9 26.8 59.1 — Total $ 101.4 $ 33.8 $ 67.6 $ — Liabilities: Derivative contracts (3) $ 66.4 $ — $ 66.4 $ — Total $ 66.4 $ — $ 66.4 $ — (1) Primarily relates to Mutual Funds (Level 1) and Corporate Bonds (Level 2). Included in Other current assets. (2) Primarily relates to investments in publicly traded stock (Level 1) and U.S. Treasury Notes and Corporate Bonds (Level 2). Included in Other assets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities. The estimated fair value of the Company's debt, including current maturities, was based on Level 2 inputs, being market quotes or values for similar instruments, and interest rates currently available to the Company for the issuance of debt with similar terms and remaining maturities as a discount rate for the remaining principal payments. As of June 20, 2020 , the fair value of total debt was $8,521.6 million compared to the carrying value of $8,160.9 million , exclu ding debt discounts and deferred financing costs. As of February 29, 2020 , the fair value of total debt was $8,486.2 million compared to the carrying value of $8,162.2 million , excluding debt discounts and deferred financing costs. Assets Measured at Fair Value on a Non-Recurring Basis |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 4 Months Ended |
Jun. 20, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The aggregate notional amount of the Company's Swaps as of June 20, 2020 and February 29, 2020 were $2,023.0 million , of which none were designated as cash flow hedges as defined by GAAP. Activity related to interest rate swaps consisted of the following (in millions): 16 weeks ended June 20, June 15, Location of loss recognized from derivatives Loss on undesignated portion of interest rate swaps $ (19.0 ) $ — Other expense (income), net Loss on designated portion of interest rate swaps $ — $ (27.0 ) Other comprehensive income (loss), net of tax |
LONG-TERM DEBT AND FINANCE LEAS
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | 4 Months Ended |
Jun. 20, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS The Company's long-term debt and finance lease obligations as of June 20, 2020 and February 29, 2020 , net of unamortized debt discounts of $40.6 million and $41.3 million , respectively, and deferred financing costs of $69.4 million and $72.9 million , respectively, consisted of the following (in millions): June 20, February 29, Senior Unsecured Notes due 2023, 2024, 2025, 2026, 2027, 2028 and 2030, interest rate of 3.50%, 6.625%, 5.750%, 7.5%, 4.625%, 5.875% and 4.875%, respectively $ 6,887.7 $ 6,884.5 Safeway Inc. Notes due 2020 to 2031, interest rate range of 3.95% to 7.45% 641.1 642.1 New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70% 466.9 466.0 Other Notes Payable, unsecured 37.2 37.2 Mortgage Notes Payable, secured 18.0 18.2 Finance lease obligations 652.7 666.7 Total debt 8,703.6 8,714.7 Less current maturities (219.1 ) (221.4 ) Long-term portion $ 8,484.5 $ 8,493.3 ABL Facility On March 12, 2020, the Company provided notice to the lenders to borrow $2.0 billion under the Company's amended and restated senior secured asset-based loan facility (as amended, the "ABL Facility") as a precautionary measure in order to increase its cash position and preserve flexibility in light of the uncertainty in the global markets resulting from the COVID-19 pandemic. The Company repaid the $2.0 billion in full on June 19, 2020 and as of June 20, 2020 , there were no amounts outstanding under the Company's ABL Facility, and letters of credit ("LOC") issued under the LOC sub-facility were $449.7 million . There were no amounts outstanding under the Company's ABL Facility as of February 29, 2020 , and letters of credit issued under the LOC sub-facility were $454.5 million |
STOCKHOLDERS' EQUITY AND CONVER
STOCKHOLDERS' EQUITY AND CONVERTIBLE PREFERRED STOCK | 4 Months Ended |
Jun. 20, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY AND CONVERTIBLE PREFERRED STOCK | STOCKHOLDERS' EQUITY AND CONVERTIBLE PREFERRED STOCK Common Stock On June 8, 2020, the Company amended and restated its certificate of incorporation to authorize 1,150,000,000 shares of common stock, par value $0.01 per share, of which 1,000,000,000 shares have been classified as Class A common stock ("Class A common stock") and 150,000,000 shares have been classified as Class A-1 common stock ("Class A-1 common stock" and together with the Class A common stock, the "Common Stock"). As of June 20, 2020, there were 584,310,110 shares and 479,026,753 shares of Class A common stock issued and outstanding, respectively, and no shares of Class A-1 common stock issued or outstanding. As of February 29, 2020, there were 582,997,251 shares and 579,325,630 shares of Class A common stock issued and outstanding, respectively. For all prior periods presented, use of Class A common stock refers to the Company's common stock pre-reclassification. The terms of the Class A common stock are substantially identical to the terms of the Class A-1 common stock, except that the Class A-1 common stock does not have voting rights. Each holder of Class A common stock is entitled to one vote for each share owned of record on all matters voted upon by stockholders. A majority vote is required for all action to be taken by stockholders, except as otherwise provided for in the Company's amended and restated certificate of incorporation and amended and restated bylaws or as required by law. Subject to preferences that may be applicable to any then outstanding preferred stock, holders of the Company's Common Stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds. In the event of the Company's liquidation, dissolution or winding-up, the holders of Common Stock are entitled to share equally and ratably in the Company's assets, if any, remaining after the payment of all of debts and liabilities and the liquidation preference of any outstanding preferred stock. Shares of Class A-1 common stock would be issued upon the conversion of the Company's outstanding Series A-1 preferred stock. When permitted under the relevant antitrust restrictions, any issued shares of Class A-1 common stock would automatically convert on a one -for-one basis to voting shares of Class A common stock. Stock Split On June 18, 2020, the Company effected a 2.072 -for-1 stock split of its Common Stock, without any change in the total shares authorized or the par value per share. All information related to the Company's Common Stock and per Class A common share amounts for all periods presented in the accompanying Condensed Consolidated Financial Statements have been retroactively adjusted to give effect to the 2.072 -for-1 stock split. Initial Public Offering The Company's Class A common stock began trading on the New York Stock Exchange on June 26, 2020 under the symbol "ACI" and on June 30, 2020 , certain selling stockholders completed the sale of a total of 50,000,000 shares of Class A common stock at an initial price to the public of $16.00 per share. The Company did not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders in the IPO. Convertible Preferred Stock and Investor Exchange Right On June 8, 2020 , the Company amended and restated its certificate of incorporation to authorize 100,000,000 shares of preferred stock, par value $0.01 per share, of which 1,750,000 shares have been designated Series A preferred stock and 1,410,000 shares have been designated Series A-1 preferred stock. On June 9, 2020 (the "Preferred Closing Date"), the Company sold and issued (i) an aggregate of 1,410,000 shares of Series A-1 preferred stock and (ii) an aggregate of 340,000 shares of Series A preferred stock. The Company received aggregate proceeds of $1.68 billion from the sale and issuance of the Convertible Preferred Stock which has an aggregate liquidation preference of $1.75 billion . The terms of the Series A preferred stock are substantially identical to the terms of the Series A-1 preferred stock, except that the Series A preferred stock will vote together with Class A common stock on an as-converted basis, but the Series A-1 preferred stock cannot vote with Class A common stock on an as converted basis. When permitted under the relevant antitrust restrictions, shares of the Company's Series A-1 preferred stock will convert on a one -for-one basis to shares of voting Series A preferred stock. On June 29, 2020, holders of 584,000 shares of Series A-1 preferred stock were relieved from the relevant antitrust restrictions resulting in the automatic conversion into 584,000 shares of voting Series A preferred stock. The Convertible Preferred Stock, with respect to dividend rights and/or distribution rights upon the liquidation, winding-up or dissolution, as applicable, ranks senior to each class of common stock and junior to existing and future indebtedness and other liabilities. The holders of Convertible Preferred Stock are entitled to a quarterly dividend at a rate per annum of 6.75% of the liquidation preference per share of the Convertible Preferred Stock. In the event that the Company does not declare and pay any dividends in cash, the Company may instead, only for two quarters, pay such dividends by increasing the liquidation preference of the Convertible Preferred Stock at a rate equal to the applicable cash dividend rate plus 2.25% on such dividend payment date. In addition, the holders of Convertible Preferred Stock will participate in cash dividends that the Company pays on its Class A common stock to the extent that such cash dividends exceed $206.25 million per fiscal year. The Series A-1 preferred stock is convertible at the option of the holders thereof at any time into shares of Class A-1 common stock (which are identical to the Class A common stock, except that the Class A-1 common stock does not include voting rights) and the Series A preferred stock is convertible at the option of the holders thereof at any time into shares of Class A common stock, each at an initial conversion price of $17.22 per share and an initial conversion rate of 58.064 shares of Common Stock per share of Convertible Preferred Stock, subject to certain anti-dilution adjustments. At any time after June 30, 2023 , if the last reported sale price of the Class A common stock has equaled or exceeded $20.50 per share (or 119% of the initial conversion price), as may be adjusted, for at least 20 trading days in any period of 30 consecutive trading days, the Company will have the right to cause all, or any portion, of the outstanding Series A-1 preferred stock or Series A preferred stock to convert into the relevant number of shares of Class A-1 common stock or Class A common stock, as applicable; provided that the Company will not be permitted to effect a mandatory conversion with respect to more than one-third of the aggregate outstanding shares, as of the date of the first notice date, of Series A-1 preferred stock and Series A preferred stock in any 12 -month period unless the last reported sale price of the Class A common stock has equaled or exceeded $23.42 (or 136% of the initial conversion price), as may be adjusted, for at least 20 trading days in any period of 30 consecutive trading days. At any time following June 9, 2026 , the Company may redeem all, but not less than all, of the Convertible Preferred Stock then outstanding at a redemption price equal to the product of the liquidation preference of the Convertible Preferred Stock then outstanding and 105% , plus accrued and unpaid dividends. In the event that the Company receives a notice of an intention to exchange the shares of Convertible Preferred Stock for equity interests in certain of the Company's subsidiaries pursuant to the real estate agreement (as discussed below), the Company will have the right to redeem all, but not less than all, of its Convertible Preferred Stock then outstanding at a redemption price equal to the product of the aggregate liquidation preference of the Convertible Preferred Stock of such holder then outstanding and 110% , plus accrued and unpaid dividends. The Convertible Preferred Stock is also convertible, at the option of the holder, upon the occurrence of certain fundamental change events, including a change in control or delisting of the Company at the applicable conversion rate plus an additional number of shares determined by reference to the price paid for the Company's Common Stock upon such change in control, plus in certain conditions accrued and unpaid dividends through June 30, 2023 or June 30, 2024 , as applicable. Concurrent with the issuance and sale of the Convertible Preferred Stock, a newly formed consolidated real estate subsidiary of the Company entered into a real estate agreement with an affiliate of the holders ("RE Investor") of the Convertible Preferred Stock. Under the terms of the real estate agreement, prior to the closing of the Convertible Preferred Stock, the Company was to place into its real estate subsidiary fee owned real estate properties with an appraised value of 165% of the liquidation preference of the Convertible Preferred Stock or a combination of real estate properties and cash. This resulted in the Company contributing approximately $36.5 million of cash into a restricted escrow account to make up for the shortfall on the appraised value of owned properties placed into the real estate subsidiary. The real estate agreement provides the RE Investor with the unilateral right, upon the occurrence of specified trigger events, to exercise an investor exchange right to exchange all of the outstanding Convertible Preferred Stock for certain real estate assets or the real estate subsidiary's equity interests in its subsidiary special purpose entities holding such real estate assets, subject to certain provisions as further defined in the real estate agreement (the "Investor Exchange Right"). The Investor Exchange Right may be exercised if any of the following were to occur: (i) the Convertible Preferred Stock remains outstanding as of June 9, 2027, (ii) if a fundamental change occurs after June 30, 2024 and the related fundamental change stock price is less than the conversion price, (iii) a downgrade by one or more gradations or withdrawal of the Company's credit rating by certain rating agencies, as a result of which the Company's credit rating is B- (or its equivalent) or lower, (iv) the failure by the Company to pay a dividend on the Convertible Preferred Stock, which failure continues for 30 days after such dividend's due date, or (v) a bankruptcy filing. The target amount of real estate assets (net of taxes and fees) to be received in exchange for the Convertible Preferred Stock will be the product of the liquidation preference and 110% , plus an amount equal to any accrued and unpaid dividends. The Investor Exchange Right may be exercised unless the Company redeems all of the outstanding Convertible Preferred Stock at a redemption price, if such redemption occurs after the Company receives a notice of intent to exercise the Investor Exchange Right, equal to the product of the aggregate liquidation preference of the Convertible Preferred Stock then outstanding and 110% , plus accrued and unpaid dividends. Upon completion of the Investor Exchange Right, subsidiaries of the Company, as the applicable tenant, will enter into a master lease agreement with the RE Investor or designated affiliate as the landlord, solely with respect to the real estate properties that have been transferred directly or indirectly to the RE Investor, substantially the same as the current master lease agreements between the Company's consolidated real estate subsidiaries and the Company's consolidated operating subsidiaries. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 4 Months Ended |
Jun. 20, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension and Other Post-Retirement Benefits The following tables provide the components of net pension and post-retirement (income) expense (in millions): 16 weeks ended Pension Other post-retirement benefits June 20, June 15, June 20, June 15, Estimated return on plan assets $ (31.5 ) $ (33.9 ) $ — $ — Service cost 4.8 4.5 — 0.2 Interest cost 16.6 24.8 0.1 0.2 Amortization of prior service cost 0.1 0.1 0.6 1.1 Amortization of net actuarial loss (gain) 0.6 0.2 (0.2 ) (0.1 ) (Income) expense, net $ (9.4 ) $ (4.3 ) $ 0.5 $ 1.4 The Company contributed $54.6 million and $5.2 million to its defined benefit pension plans and post-retirement benefit plans during the 16 weeks ended June 20, 2020 and June 15, 2019 , respectively. At the Company's discretion, additional funds may be contributed to the defined benefit pension plans. The Company currently anticipates contributing an additional $7.8 million to these plans for the remainder of fiscal 2020 . Defined Contribution Plans and Supplemental Retirement Plans Total contributions expensed for defined contribution plans (401(k) plans) were $21.8 million and $18.6 million for the 16 weeks ended June 20, 2020 and June 15, 2019 , respectively. Multiemployer Pension Plans The Company is the second largest contributing employer to the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund ("FELRA") which is currently projected by FELRA to become insolvent in the first quarter of 2021, and to the Mid-Atlantic UFCW and Participating Pension Fund ("MAP"). The Company continues to fund all of its required contributions to FELRA and MAP. On March 5, 2020, the Company agreed with the two applicable local unions to new collective bargaining agreements pursuant to which the Company contributes to FELRA and MAP. In connection with these agreements, to address the pending insolvency of FELRA, the Company and the two local unions, along with the largest contributing employer, agreed to combine MAP into FELRA ("Combined Plan"). Upon the formation of the Combined Plan, the Combined Plan will be frozen and the Company will be required to annually pay $23.2 million to the Combined Plan for the next 25 years. After making all 25 years of payments, the Company will receive a release of all withdrawal liability and mass withdrawal liability from FELRA, MAP, the Combined Plan and the Pension Benefit Guaranty Corporation ("PBGC"). This payment will replace the Company's current annual contribution to both MAP and FELRA, which was a combined $26.2 million in fiscal 2019. In addition to the $23.2 million annual payment, the Company will begin to contribute to a new multiemployer pension plan. This new multiemployer plan will be limited to providing benefits to participants in MAP and FELRA in excess of the benefits the PBGC insures under law. Furthermore, upon formation of the Combined Plan, the Company will establish and contribute to a new variable defined benefit plan that will provide benefits to participants for future services. These agreements are subject to approval by the PBGC, and the Company is in discussions with the local unions, the largest contributing employer and the PBGC with respect to these other plans and the Combined Plan. It is possible some provisions of the Company's agreements with local unions may change as a result of negotiations with the PBGC. The Company expects to reach final agreements on formation of the Combined Plan by no later than December 31, 2020. Under the terms of the new collective bargaining agreements, the Company will continue to contribute to FELRA and MAP under the same terms of the previous collective bargaining agreements until approval by the PBGC and formation of the Combined Plan. The Company is currently evaluating the effect of these new agreements on its Consolidated Financial Statements and preliminarily expects to record a material increase to its pension-related liabilities with a corresponding non-cash charge to pension expense upon approval by the PBGC. On July 21, 2020, the Company announced that it had entered into a tentative agreement with the trustees of the United Food and Commercial Workers International Union ("UFCW") Union-Industry Pension Fund ("National Fund"), providing that the Company will permanently cease to have any obligation to contribute to the National Fund, a multiemployer pension plan, and will completely withdraw from the National Fund, effective as of June 30, 2020. The Company and the UFCW local unions have entered into a Memorandum of Understanding (MOU) that will instead establish a Variable Annuity Pension Plan (the "VAPP"), effective as of July 1, 2020, providing for future security and service benefits for the Company's associates. This agreement will need to be ratified by the membership of each of these unions before it can take effect. Upon ratification of the agreement by nine local UFCW unions, the Company will pay an aggregate of approximately $286 million to the National Fund, which will be in full satisfaction of the Company's withdrawal liability amount or mass withdrawal liability amount, by June 30, 2023. The Company will pay this amount in three or four installments over the next three years , any portion of which may be prepaid, in whole or in part. Within 30 days of the establishment of the VAPP, the Company will pre-fund a transition reserve to support certain grandfathered participants by making a payment of approximately $8 to $9 million . The Company expects to incur a pre-tax charge of approximately $286 million (or $213 million on an after-tax basis) to record the withdrawal liability for these benefits earned for prior service. This charge is expected to be recorded upon ratification of the agreement, which the Company expects to be in the third quarter of fiscal 2020. |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS | 4 Months Ended |
Jun. 20, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS | COMMITMENTS AND CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS Guarantees California Department of Industrial Relations: On October 24, 2012, the Office of Self-Insurance Plans, a program within the director's office of the California Department of Industrial Relations (the "DIR"), notified SUPERVALU INC. ("SuperValu"), which was then the owner of New Albertsons L.P., a wholly-owned subsidiary of the Company, that additional collateral was required to be posted in connection with the Company's, and certain other subsidiaries', California self-insured workers' compensation obligations pursuant to applicable regulations. The notice from the DIR stated that the additional collateral was required as a result of an increase in estimated future liabilities, as determined by the DIR pursuant to a review of the self-insured California workers' compensation claims with respect to the applicable businesses. On January 21, 2014, the Company entered into a Collateral Substitution Agreement with the California Self-Insurers' Security Fund to provide collateral. The collateral not covered by the California Self-Insurers' Security Fund is covered by an irrevocable LOC for the benefit of the State of California Office of Self-Insurance Plans. The amount of the LOC is adjusted annually based on semi-annual filings of an actuarial study reflecting liabilities as of December 31 of each year reduced by claim closures and settlements. The related LOC was $90.3 million as of June 20, 2020 and February 29, 2020 , respectively. Lease Guarantees: The Company may have liability under certain operating leases that were assigned to third parties. If any of these third parties fail to perform their obligations under the leases, the Company could be responsible for the lease obligation, including as a result of the economic dislocation caused by the response to the COVID-19 pandemic. Because of the wide dispersion among third parties and the variety of remedies available, the Company believes that if an assignee became insolvent, it would not have a material effect on the Company's financial condition, results of operations or cash flows. The Company also provides guarantees, indemnifications and assurances to others in the ordinary course of its business. Legal Proceedings The Company is subject from time to time to various claims and lawsuits arising in the ordinary course of business, including lawsuits involving trade practices, lawsuits alleging violations of state and/or federal wage and hour laws (including alleged violations of meal and rest period laws and alleged misclassification issues), real estate disputes as well as other matters. Some of these suits purport or may be determined to be class actions and/or seek substantial damages. It is the opinion of the Company's management that although the amount of liability with respect to certain of the matters described herein cannot be ascertained at this time, any resulting liability of these and other matters, including any punitive damages, will not have a material adverse effect on the Company's business or financial condition. The Company continually evaluates its exposure to loss contingencies arising from pending or threatened litigation and believes it has made provisions where the loss contingency can be reasonably estimated and an adverse outcome is probable. Nonetheless, assessing and predicting the outcomes of these matters involves substantial uncertainties. Management currently believes that the aggregate range of reasonably possible loss for the Company's exposure in excess of the amount accrued is expected to be immaterial to the Company. It remains possible that despite management's current belief, material differences in actual outcomes or changes in management's evaluation or predictions could arise that could have a material effect on the Company's financial condition, results of operations or cash flows. Office of Inspector General: In January 2016, the Company received a subpoena from the Office of the Inspector General of the Department of Health and Human Services (the "OIG") pertaining to the pricing of drugs offered under the Company's MyRxCare discount program and the impact on reimbursements to Medicare, Medicaid and TRICARE (the "Government Health Programs"). In particular, the OIG requested information on the relationship between the prices charged for drugs under the MyRxCare program and the "usual and customary" prices reported by the Company in claims for reimbursements to the Government Health Programs or other third-party payors. The Company cooperated with the OIG in the investigation. The Company is currently unable to determine the probability of the outcome of this matter or the range of reasonably possible loss, if any. Civil Investigative Demands: On December 16, 2016, the Company received a civil investigative demand from the United States Attorney for the District of Rhode Island in connection with a False Claims Act ("FCA") investigation relating to the Company's influenza vaccination programs. The investigation concerns whether the Company's provision of store coupons to its customers who received influenza vaccinations in its store pharmacies constituted an improper benefit to those customers under the federal Medicare and Medicaid programs. The Company believes that its provision of the store coupons to its customers is an allowable incentive to encourage vaccinations. The Company cooperated with the U.S. Attorney in the investigation. The Company is currently unable to determine the probability of the outcome of this matter or the range of possible loss, if any. The Company has received a civil investigative demand dated February 28, 2020 from the United States Attorney for the Southern District of New York in connection with an FCA investigation relating to the Company's dispensing practices regarding insulin pen products. The investigation seeks documents regarding the Company's policies, practices and procedures, as well as dispensing data, among other things. The Company will cooperate with the U.S. Attorney in the investigation. The Company is currently unable to determine the probability of the outcome of this matter or the range of possible loss, if any. Terraza/Lorenz: Two lawsuits were brought against Safeway Inc. ("Safeway") and the Safeway Benefits Plan Committee (the "Benefit Plans Committee," and together with Safeway, the "Safeway Benefits Plans Defendants") and other third parties alleging breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974, as amended ("ERISA") with respect to Safeway's 401(k) Plan (the "Safeway 401(k) Plan"). On July 14, 2016, a complaint ("Terraza") was filed in the United States District Court for the Northern District of California by a participant in the Safeway 401(k) Plan individually and on behalf of the Safeway 401(k) Plan. An amended complaint was filed on November 18, 2016. On August 25, 2016, a second complaint ("Lorenz") was filed in the United States District Court for the Northern District of California by another participant in the Safeway 401(k) Plan individually and on behalf of all others similarly situated against the Safeway Benefits Plans Defendants and against the Safeway 401(k) Plan's former record-keepers. An amended complaint was filed on September 16, 2016, and a second amended complaint was filed on November 21, 2016. In general, both lawsuits alleged that the Safeway Benefits Plans Defendants breached their fiduciary duties under ERISA regarding the selection of investments offered under the Safeway 401(k) Plan and the fees and expenses related to those investments. All parties filed summary judgment motions which were heard and taken under submission on August 16, 2018. Plaintiffs' motions were denied, and defendants' motions were granted in part and denied in part. Bench trials for both matters were set for May 6, 2019. A settlement in principle was reached before trial. On September 13, 2019, settlement papers were filed with the court along with a motion for preliminary approval of the settlement. A hearing for preliminary approval was set for November 20, 2019, but the Court vacated the hearing. The Court issued an order on March 30, 2020 requesting some minor changes to the notice procedures, and the matter will be set for a second preliminary approval hearing shortly. The Company has recorded an estimated liability for these matters. False Claims Act : Two qui tam actions alleging violations of the FCA have been filed against the Company and its subsidiaries. Violations of the FCA are subject to treble damages and penalties of up to a specified dollar amount per false claim. In United States ex rel. Proctor v. Safeway , filed in the U.S. District Court for the Central District of Illinois, the relator alleges that Safeway overcharged government healthcare programs by not providing the government, as part of its usual and customary prices, the benefit of discounts given to customers in pharmacy membership discount and price-matching programs. The relator filed his complaint under seal on November 11, 2011, and the complaint was unsealed on August 26, 2015. The relator amended the complaint on March 31, 2016. On June 12, 2020, the Court granted Safeway's motion for summary judgment, holding that the relator could not prove that Safeway acted with the intent required under the FCA, and judgment was issued on June 15, 2020. The relator has 30 days to file a notice of appeal. In United States ex rel. Schutte and Yarberry v. SuperValu, New Albertson's, Inc., et al. , also filed in the Central District of Illinois, the relators allege that defendants (including various subsidiaries of the Company) overcharged government healthcare programs by not providing the government, as a part of usual and customary prices, the benefit of discounts given to customers who requested that defendants match competitor prices. The complaint was originally filed under seal and amended on November 30, 2015. On August 5, 2019, the Court granted relators' motion for partial summary judgment, holding that price-matched prices are the usual and customary prices for those drugs. Additional summary judgment motions by both parties are pending, including a motion by defendants on the same ground of intent as in Proctor . On June 23, 2020, defendants filed a notice of supplemental authority arguing that the Court's opinion in Proctor dictates the same result in Schutte . In both of the above cases, the government previously investigated the relators' allegations and declined to intervene. The relators elected to pursue their respective cases on their own and in each case have alleged FCA damages in excess of $100 million before trebling and excluding penalties. The Company is vigorously defending each of these matters and believes each of these cases is without merit. The Company has recorded an estimated liability for these matters. The Company was also subject to another FCA qui tam action entitled United States ex rel. Zelickowski v. Albertson's LLC. In that case, the relators alleged that Albertson's LLC ("Albertson's") overcharged federal healthcare programs by not providing the government, as a part of its usual and customary prices to the government, the benefit of discounts given to customers who enrolled in the Albertson's discount-club program. The complaint was originally filed under seal and amended on June 20, 2017. On December 17, 2018, the case was dismissed, without prejudice. Alaska Attorney General's Investigation: On May 22, 2018, the Company received a subpoena from the Office of the Attorney General for the State of Alaska (the "Alaska Attorney General") stating that the Alaska Attorney General has reason to believe the Company has engaged in unfair or deceptive trade practices under Alaska's Unfair Trade Practices and Consumer Act and seeking documents regarding the Company's policies, procedures, controls, training, dispensing practices and other matters in connection with the sale and marketing of opioid pain medications. The Company responded to the subpoena on July 30, 2018 and has not received any further communication from the Alaska Attorney General. The Company does not currently have a basis to believe it has violated Alaska's Unfair Trade Practices and Consumer Act; however, at this time, the Company is unable to determine the probability of the outcome of this matter or estimate a range of reasonably possible loss, if any. Opioid Litigation: The Company is one of dozens of companies that have been named in various lawsuits alleging that defendants contributed to the national opioid epidemic. At present, the Company is named in over 70 suits pending in various state courts as well as in the United States District Court for the Northern District of Ohio, where over 2,000 cases have been consolidated as Multi-District Litigation ("MDL") pursuant to 28 U.S.C. §1407. In two matters--MDL No. 2804 filed by The Blackfeet Tribe of the Blackfeet Indian Reservation and State of New Mexico v. Purdue Pharma L.P., et al. --the Company filed motions to dismiss, which were denied, and the Company has now answered the complaints. The MDL cases are stayed pending bellwether trials, and the only active matter is the New Mexico action where a September 2021 trial date has been set. The Company is vigorously defending these matters and believes that these cases are without merit. At this early stage in the proceedings, the Company is unable to determine the probability of the outcome of these matters or the range of reasonably possible loss, if any. California Air Resources Board: Upon the inspection by the California Air Resources Board ("CARB") of several of the Company's stores in California, it was determined that the Company failed certain paperwork and other administrative requirements. As a result of the inspections, the Company proactively undertook a broad evaluation of the record keeping and administrative practices at all of its stores in California. In connection with this evaluation, the Company retained a third party to conduct an audit and correct deficiencies identified across its California store base. The Company is working with CARB to resolve these compliance issues and comply with governing regulations, and that work is ongoing. Although no monetary amount has been assessed by CARB, the Company could be subject to certain fines and penalties. The Company has recorded an estimated liability for this matter. FACTA: On May 31, 2019, a putative class action complaint entitled Martin v. Safeway was filed in the California Superior Court for the County of Alameda, alleging the Company failed to comply with the Fair and Accurate Credit Transactions Act ("FACTA") by printing receipts that failed to adequately mask payment card numbers as required by FACTA. The plaintiff claims the violation was "willful" and exposes the Company to statutory damages provided for in FACTA. The Company has answered the complaint and is vigorously defending the matter. On January 8, 2020, the Company commenced mediation discussions with plaintiff's counsel and reached a settlement in principle on February 24, 2020. The parties will seek court approval of the settlement. The Company has recorded an estimated liability for this matter. Other Commitments |
OTHER COMPREHENSIVE INCOME OR L
OTHER COMPREHENSIVE INCOME OR LOSS | 4 Months Ended |
Jun. 20, 2020 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME OR LOSS | OTHER COMPREHENSIVE INCOME OR LOSS Total comprehensive earnings are defined as all changes in stockholders' equity during a period, other than those from investments by or distributions to the stockholders. Generally, for the Company, total comprehensive income or loss equals net income plus or minus adjustments for pension and other post-retirement liabilities, interest rate swaps and foreign currency translation adjustments. Total comprehensive earnings represent the activity for a period net of tax. While total comprehensive earnings are the activity in a period and are largely driven by net earnings in that period, accumulated other comprehensive income or loss ("AOCI") represents the cumulative balance of other comprehensive income, net of tax, as of the balance sheet date. Changes in the AOCI balance by component are shown below (in millions): 16 weeks ended June 20, 2020 Total Interest rate swaps Pension and Post-retirement benefit plans Other Beginning balance $ (118.5 ) $ — $ (121.7 ) $ 3.2 Other comprehensive income before reclassifications 1.2 — — 1.2 Amounts reclassified from accumulated other comprehensive income 1.1 — 1.1 — Tax expense (0.6 ) — (0.3 ) (0.3 ) Current-period other comprehensive income, net of tax 1.7 — 0.8 0.9 Ending balance $ (116.8 ) $ — $ (120.9 ) $ 4.1 16 weeks ended June 15, 2019 Total Interest rate swaps Pension and Post-retirement benefit plans Other Beginning balance $ 91.3 $ 3.4 $ 88.8 $ (0.9 ) Cumulative effect of accounting change (1) 16.6 1.2 14.9 0.5 Other comprehensive (loss) income before reclassifications (23.9 ) (35.7 ) 10.1 1.7 Amounts reclassified from accumulated other comprehensive income (1.2 ) (2.5 ) 1.3 — Tax benefit (expense) 6.6 10.0 (2.9 ) (0.5 ) Current-period other comprehensive (loss) income, net of tax (1.9 ) (27.0 ) 23.4 1.7 Ending balance $ 89.4 $ (23.6 ) $ 112.2 $ 0.8 (1) Related to the fiscal 2019 adoption of ASU 2018-02 , " Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ". |
NET INCOME PER CLASS A COMMON S
NET INCOME PER CLASS A COMMON SHARE | 4 Months Ended |
Jun. 20, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME PER CLASS A COMMON SHARE | NET INCOME PER CLASS A COMMON SHARE The Company calculates basic and diluted net income per Class A common share using the two-class method. The two-class method is an allocation formula that determines net income per Class A common share for each share of Class A common stock and Convertible Preferred Stock, a participating security, according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to Class A common shares and Convertible Preferred Stock based on their respective rights to receive dividends. The holders of Convertible Preferred Stock participate in cash dividends that the Company pays on its Class A common stock to the extent that such cash dividends exceed $206.25 million per fiscal year. Basic net income per Class A common share is computed by dividing net income allocated to Class A common stockholders by the weighted average number of Class A common shares outstanding for the period, including Class A common shares to be issued with no prior remaining contingencies prior to issuance. Diluted net income per Class A common share is computed based on the weighted average number of shares of Class A common stock outstanding during each period, plus potential Class A common shares considered outstanding during the period, as long as the inclusion of such awards is not antidilutive. Potential Class A common shares consist of unvested restricted stock units and awards and Convertible Preferred Stock, using the more dilutive of either the two-class method or as-converted stock method. Performance-based RSUs are considered dilutive when the related performance criterion has been met. The components of basic and diluted net income per Class A common share were as follows (in millions, except per share data): 16 weeks ended June 20, June 15, Basic net income per Class A common share Net income $ 586.2 $ 49.0 Accrued dividends on Convertible Preferred Stock (3.9 ) — Earnings allocated to Convertible Preferred Stock — — Net income allocated to Class A common stockholders - Basic $ 582.3 $ 49.0 Weighted average Class A common shares outstanding - Basic (1) 568.0 579.2 Basic net income per Class A common share $ 1.03 $ 0.08 Diluted net income per Class A common share Net income allocated to Class A common stockholders - Basic $ 582.3 $ 49.0 Accrued dividends on Convertible Preferred Stock 3.9 — Earnings allocated to Convertible Preferred Stock — — Net income allocated to Class A common stockholders - Diluted $ 586.2 $ 49.0 Weighted average Class A common shares outstanding - Basic (1) 568.0 579.2 Dilutive effect of: Restricted stock units and awards 4.8 0.2 Convertible preferred stock (2) 10.9 — Weighted average Class A common shares outstanding - Diluted (3) 583.7 579.4 Diluted net income per Class A common share $ 1.00 $ 0.08 (1) There were no common shares remaining to be issued for the 16 weeks ended June 20, 2020, compared to 3.4 million common shares remaining to be issued for the 16 weeks ended June 15, 2019. (2) Reflects the number of shares of Convertible Preferred Stock issued on the Preferred Closing Date, if converted into common stock for the period outstanding. (3) There were no potential common shares outstanding that were antidilutive for the 16 weeks ended June 20, 2020 and June 15, 2019. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 4 Months Ended |
Jun. 20, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim Condensed Consolidated Financial Statements include the accounts of Albertsons Companies, Inc. and its subsidiaries (the "Company"). All significant intercompany balances and transactions were eliminated. The Condensed Consolidated Balance Sheet as of February 29, 2020 is derived from the Company's annual audited Consolidated Financial Statements for the fiscal year ended February 29, 2020 , which should be read in conjunction with these Condensed Consolidated Financial Statements and which are included in the Company's Prospectus dated June 25, 2020 filed with the Securities and Exchange Commission ("SEC") pursuant to Rule 424(b) of the Securities Act of 1933, as amended, relating to the Company's Registration Statement on Form S-1 (File No. 333-236956). Certain information in footnote disclosures normally included in annual financial statements was condensed or omitted for the interim periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The interim results of operations and cash flows are not necessarily indicative of those results and cash flows expected for the year. The Company' s results of operations are for the 16 weeks ended June 20, 2020 and June 15, 2019 . |
Restricted cash | Restricted cash: |
Inventories, net | Inventories, net: |
Equity-based compensation | On April 25, 2019, upon the commencement of employment, the Company's President and Chief Executive Officer was granted direct equity interests in each of the Company's parents, Albertsons Investor and KIM ACI. These equity interests generally vest over five years , with 50% based solely on a service period and 50% Equity-based compensation: The Company maintains the Albertsons Companies, Inc. Restricted Stock Unit Plan (the "Restricted Stock Unit Plan"), which was previously named the "Albertsons Companies, Inc. Phantom Unit Plan" (the "Phantom Unit Plan"). Prior to being amended and restated on June 9, 2020, the Phantom Unit Plan provided for grants of "Phantom Units" to certain employees, directors and consultants. Each Phantom Unit provided a participant with a contractual right to receive, upon vesting, one management incentive unit in each of the Company's parents, Albertsons Investor Holdings LLC ("Albertsons Investor") and KIM ACI, LLC ("KIM ACI"). Upon the amendment and restatement of the Phantom Unit Plan as the Restricted Stock Unit Plan, all outstanding Phantom Units were converted into 11.3 million restricted stock units of the Company ("Restricted Stock Units" or "RSUs"), including 1.9 million |
Income taxes | Income taxes:The Company's effective tax rate for the 16 weeks ended June 20, 2020 d iffers from the federal income tax statutory rate |
Segments | Segments : The Company and its subsidiaries offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services in its stores or through eCommerce channels. The Company's operating divisions are geographically based, have similar economic characteristics and similar expected long-term financial performance. The Company's operating segments and reporting units are its 13 operating divisions, which are reported in one reportable segment. Each reporting unit constitutes a business for which discrete financial information is available and for which management regularly reviews the operating results. Across all operating segments, the Company operates primarily one store format. Each division offers through its stores and eCommerce channels the same general mix of products with similar pricing to similar categories of customers, has similar distribution methods, operates in similar regulatory environments and purchases merchandise from similar or the same vendors. |
Revenue Recognition | For eCommerce related sales, which primarily include home delivery and Drive Up & Go curbside pickup, revenues are recognized upon either pickup in store or delivery to the customer and may include revenue for separately charged delivery services. Discounts provided to customers by the Company at the time of sale are recognized as a reduction in sales as the products are sold. Discounts provided to customers by vendors, usually in the form of coupons, are not recognized as a reduction in sales, provided the coupons are redeemable at any retailer that accepts coupons. The Company recognizes revenue and records a corresponding receivable from the vendor for the difference between the sales prices and the cash received from the customer. The Company records a contract liability when rewards are earned by customers in connection with the Company's loyalty programs. As rewards are redeemed or expire, the Company reduces the contract liability and recognizes revenue. The contract liability balance was immaterial as of June 20, 2020 and February 29, 2020 . Revenue Recognition: |
Recently issued accounting standards | Recently issued accounting standards: In December 2019, the Financial Accounting Standards Board issued ASU 2019-12, " Simplifying the Accounting for Income Taxes ." This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. This ASU also simplifies aspects of the accounting for franchise taxes, enacts changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The ASU will take effect for public entities for annual reporting periods beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect of this standard on its Consolidated Financial Statements. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Sales Revenue by Type of Similar Products | The following table represents sales revenue by type of similar product (dollars in millions): 16 weeks ended June 20, June 15, Amount (1) % of Total Amount (1) % of Total Non-perishables (2) $ 10,783.8 47.4 % $ 8,022.2 42.8 % Perishables (3) 9,555.6 42.0 7,811.6 41.7 Pharmacy 1,554.9 6.8 1,573.2 8.4 Fuel 589.2 2.6 1,076.5 5.7 Other (4) 268.1 1.2 254.9 1.4 Net sales and other revenue $ 22,751.6 100.0 % $ 18,738.4 100.0 % (1) eCommerce related sales are included in the categories to which the revenue pertains. (2) Consists primarily of general merchandise, grocery and frozen foods. (3) Consists primarily of produce, dairy, meat, deli, floral and seafood. (4) Consists primarily of wholesale revenue to third parties, commissions and other miscellaneous revenue. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents assets and liabilities which were measured at fair value on a recurring basis as of June 20, 2020 (in millions): Fair Value Measurements Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market $ 14.0 $ 14.0 $ — $ — Short-term investments (1) 13.0 3.8 9.2 — Non-current investments (2) 84.3 22.3 62.0 — Total $ 111.3 $ 40.1 $ 71.2 $ — Liabilities: Derivative contracts (3) $ 78.3 $ — $ 78.3 $ — Total $ 78.3 $ — $ 78.3 $ — (1) Primarily relates to Mutual Funds. Included in Other current assets. (2) Primarily relates to investments in publicly traded stock classified as available for sale (Level 1) and U.S. Treasury Notes and Corporate Bonds (Level 2). Included in Other assets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities. The following table presents assets and liabilities which were measured at fair value on a recurring basis as of February 29, 2020 (in millions): Fair Value Measurements Total Quoted prices in active markets for identical assets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market $ 2.0 $ 2.0 $ — $ — Short-term investments (1) 13.5 5.0 8.5 — Non-current investments (2) 85.9 26.8 59.1 — Total $ 101.4 $ 33.8 $ 67.6 $ — Liabilities: Derivative contracts (3) $ 66.4 $ — $ 66.4 $ — Total $ 66.4 $ — $ 66.4 $ — (1) Primarily relates to Mutual Funds (Level 1) and Corporate Bonds (Level 2). Included in Other current assets. (2) Primarily relates to investments in publicly traded stock (Level 1) and U.S. Treasury Notes and Corporate Bonds (Level 2). Included in Other assets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Designated as Cash Flow Hedges | Activity related to interest rate swaps consisted of the following (in millions): 16 weeks ended June 20, June 15, Location of loss recognized from derivatives Loss on undesignated portion of interest rate swaps $ (19.0 ) $ — Other expense (income), net Loss on designated portion of interest rate swaps $ — $ (27.0 ) Other comprehensive income (loss), net of tax |
LONG-TERM DEBT AND FINANCE LE_2
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The Company's long-term debt and finance lease obligations as of June 20, 2020 and February 29, 2020 , net of unamortized debt discounts of $40.6 million and $41.3 million , respectively, and deferred financing costs of $69.4 million and $72.9 million , respectively, consisted of the following (in millions): June 20, February 29, Senior Unsecured Notes due 2023, 2024, 2025, 2026, 2027, 2028 and 2030, interest rate of 3.50%, 6.625%, 5.750%, 7.5%, 4.625%, 5.875% and 4.875%, respectively $ 6,887.7 $ 6,884.5 Safeway Inc. Notes due 2020 to 2031, interest rate range of 3.95% to 7.45% 641.1 642.1 New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70% 466.9 466.0 Other Notes Payable, unsecured 37.2 37.2 Mortgage Notes Payable, secured 18.0 18.2 Finance lease obligations 652.7 666.7 Total debt 8,703.6 8,714.7 Less current maturities (219.1 ) (221.4 ) Long-term portion $ 8,484.5 $ 8,493.3 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Pension and Post-retirement Expense | The following tables provide the components of net pension and post-retirement (income) expense (in millions): 16 weeks ended Pension Other post-retirement benefits June 20, June 15, June 20, June 15, Estimated return on plan assets $ (31.5 ) $ (33.9 ) $ — $ — Service cost 4.8 4.5 — 0.2 Interest cost 16.6 24.8 0.1 0.2 Amortization of prior service cost 0.1 0.1 0.6 1.1 Amortization of net actuarial loss (gain) 0.6 0.2 (0.2 ) (0.1 ) (Income) expense, net $ (9.4 ) $ (4.3 ) $ 0.5 $ 1.4 |
OTHER COMPREHENSIVE INCOME OR_2
OTHER COMPREHENSIVE INCOME OR LOSS (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Equity [Abstract] | |
Schedule of Changes in the Accumulated Other Comprehensive Income or Loss | Changes in the AOCI balance by component are shown below (in millions): 16 weeks ended June 20, 2020 Total Interest rate swaps Pension and Post-retirement benefit plans Other Beginning balance $ (118.5 ) $ — $ (121.7 ) $ 3.2 Other comprehensive income before reclassifications 1.2 — — 1.2 Amounts reclassified from accumulated other comprehensive income 1.1 — 1.1 — Tax expense (0.6 ) — (0.3 ) (0.3 ) Current-period other comprehensive income, net of tax 1.7 — 0.8 0.9 Ending balance $ (116.8 ) $ — $ (120.9 ) $ 4.1 16 weeks ended June 15, 2019 Total Interest rate swaps Pension and Post-retirement benefit plans Other Beginning balance $ 91.3 $ 3.4 $ 88.8 $ (0.9 ) Cumulative effect of accounting change (1) 16.6 1.2 14.9 0.5 Other comprehensive (loss) income before reclassifications (23.9 ) (35.7 ) 10.1 1.7 Amounts reclassified from accumulated other comprehensive income (1.2 ) (2.5 ) 1.3 — Tax benefit (expense) 6.6 10.0 (2.9 ) (0.5 ) Current-period other comprehensive (loss) income, net of tax (1.9 ) (27.0 ) 23.4 1.7 Ending balance $ 89.4 $ (23.6 ) $ 112.2 $ 0.8 (1) Related to the fiscal 2019 adoption of ASU 2018-02 , " Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ". |
NET INCOME PER CLASS A COMMON_2
NET INCOME PER CLASS A COMMON SHARE (Tables) | 4 Months Ended |
Jun. 20, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted net income per Class A common share were as follows (in millions, except per share data): 16 weeks ended June 20, June 15, Basic net income per Class A common share Net income $ 586.2 $ 49.0 Accrued dividends on Convertible Preferred Stock (3.9 ) — Earnings allocated to Convertible Preferred Stock — — Net income allocated to Class A common stockholders - Basic $ 582.3 $ 49.0 Weighted average Class A common shares outstanding - Basic (1) 568.0 579.2 Basic net income per Class A common share $ 1.03 $ 0.08 Diluted net income per Class A common share Net income allocated to Class A common stockholders - Basic $ 582.3 $ 49.0 Accrued dividends on Convertible Preferred Stock 3.9 — Earnings allocated to Convertible Preferred Stock — — Net income allocated to Class A common stockholders - Diluted $ 586.2 $ 49.0 Weighted average Class A common shares outstanding - Basic (1) 568.0 579.2 Dilutive effect of: Restricted stock units and awards 4.8 0.2 Convertible preferred stock (2) 10.9 — Weighted average Class A common shares outstanding - Diluted (3) 583.7 579.4 Diluted net income per Class A common share $ 1.00 $ 0.08 (1) There were no common shares remaining to be issued for the 16 weeks ended June 20, 2020, compared to 3.4 million common shares remaining to be issued for the 16 weeks ended June 15, 2019. (2) Reflects the number of shares of Convertible Preferred Stock issued on the Preferred Closing Date, if converted into common stock for the period outstanding. (3) There were no potential common shares outstanding that were antidilutive for the 16 weeks ended June 20, 2020 and June 15, 2019. |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | Jun. 25, 2020shares | Jun. 09, 2020USD ($)shares | May 14, 2020USD ($)shares | Apr. 25, 2019 | Jun. 20, 2020USD ($)divisionstore_formatsegmentshares | Jun. 15, 2019USD ($) | Feb. 29, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Restricted cash | $ 42.3 | $ 8.2 | |||||
LIFO expense (benefit) | 13.1 | $ 10.5 | |||||
Equity-based compensation expense | 1.2 | 1.2 | |||||
Compensation cost not yet recognized | $ 8.8 | ||||||
Period for recognition of unrecognized compensation cost | 3 years 1 month 20 days | ||||||
Repurchase of common stock | $ 1,680 | $ 1,680 | 0 | ||||
Income tax expense | $ 201.9 | $ 15.7 | |||||
Effective tax rate | 25.60% | 24.30% | |||||
Number of divisions | division | 13 | ||||||
Number of reportable segments | segment | 1 | ||||||
Number of store format | store_format | 1 | ||||||
Receivables, net | $ 530 | 525.3 | |||||
Contract liability related to gift cards | 62.2 | 52.2 | |||||
Pharmacy | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Receivables, net | 246.1 | $ 218.5 | |||||
Common Stock | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of shares repurchased (in shares) | shares | 101,611,736 | ||||||
Phantom units | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Equity-based compensation expense | 17.8 | $ 9.9 | |||||
Income tax benefit | $ 4.6 | $ 2.6 | |||||
Grants in period (in shares) | shares | 1,000,000 | ||||||
Awards converted (in shares) | shares | 4,300,000 | 11,300,000 | |||||
Compensation cost not yet recognized | $ 87.9 | ||||||
Number of unvested phantom units (in shares) | shares | 9,400,000 | ||||||
Period for recognition of unrecognized compensation cost | 2 years 10 days | ||||||
Phantom units | Investor Incentive Units | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Units received upon vesting (in shares) | shares | 1 | ||||||
Restricted Stock Units (RSU) Deemed Not Granted | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Awards converted (in shares) | shares | 1,900,000 | ||||||
RSU Time Based Vesting | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Grants in period (in shares) | shares | 3,200,000 | ||||||
RSU Performance Based Member | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Grants in period (in shares) | shares | 400,000 | ||||||
RSU Deemed Granted Upon Establishment Of Annual Performance Target | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Grants in period (in shares) | shares | 700,000 | ||||||
Restricted Stock Units (RSUs) | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Grants in period (in shares) | shares | 3,600,000 | ||||||
Grant fate fair value | $ 57.8 | ||||||
President and Chief Executive Officer | Direct Equity Interest | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Award vesting period | 5 years | ||||||
Award Based On Service Period | President and Chief Executive Officer | Direct Equity Interest | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Award Based On Service Period And Achievement Of Certain Performance Based Thresholds | President and Chief Executive Officer | Direct Equity Interest | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Subsequent Event | IPO | RSUs | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Exchanged | shares | 1,700,000 | ||||||
Subsequent Event | IPO | Restricted Stock Units (RSU), Performance Based, Deemed Not Granted | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Exchanged | shares | 600,000 |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales Revenue by Similar Products (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 20, 2020 | Jun. 15, 2019 | |
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 22,751.6 | $ 18,738.4 |
Product line | Product concentration risk | ||
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 22,751.6 | $ 18,738.4 |
Percentage of total net sales and other revenue | 100.00% | 100.00% |
Non-perishables | Product line | Product concentration risk | ||
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 10,783.8 | $ 8,022.2 |
Percentage of total net sales and other revenue | 47.40% | 42.80% |
Perishables | Product line | Product concentration risk | ||
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 9,555.6 | $ 7,811.6 |
Percentage of total net sales and other revenue | 42.00% | 41.70% |
Pharmacy | Product line | Product concentration risk | ||
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 1,554.9 | $ 1,573.2 |
Percentage of total net sales and other revenue | 6.80% | 8.40% |
Fuel | Product line | Product concentration risk | ||
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 589.2 | $ 1,076.5 |
Percentage of total net sales and other revenue | 2.60% | 5.70% |
Other | Product line | Product concentration risk | ||
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 268.1 | $ 254.9 |
Percentage of total net sales and other revenue | 1.20% | 1.40% |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Millions | Jun. 20, 2020 | Feb. 29, 2020 |
Cash equivalents: | ||
Short-term investments | $ 13 | $ 13.5 |
Non-current investments | 84.3 | 85.9 |
Total | 111.3 | 101.4 |
Liabilities: | ||
Derivative contracts | 78.3 | 66.4 |
Total | 78.3 | 66.4 |
Quoted prices in active markets for identical assets (Level 1) | ||
Cash equivalents: | ||
Short-term investments | 3.8 | 5 |
Non-current investments | 22.3 | 26.8 |
Total | 40.1 | 33.8 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Total | 0 | 0 |
Significant observable inputs (Level 2) | ||
Cash equivalents: | ||
Short-term investments | 9.2 | 8.5 |
Non-current investments | 62 | 59.1 |
Total | 71.2 | 67.6 |
Liabilities: | ||
Derivative contracts | 78.3 | 66.4 |
Total | 78.3 | 66.4 |
Significant unobservable inputs (Level 3) | ||
Cash equivalents: | ||
Short-term investments | 0 | 0 |
Non-current investments | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Total | 0 | 0 |
Money market | ||
Cash equivalents: | ||
Money market | 14 | 2 |
Money market | Quoted prices in active markets for identical assets (Level 1) | ||
Cash equivalents: | ||
Money market | 14 | 2 |
Money market | Significant observable inputs (Level 2) | ||
Cash equivalents: | ||
Money market | 0 | 0 |
Money market | Significant unobservable inputs (Level 3) | ||
Cash equivalents: | ||
Money market | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Jun. 20, 2020 | Feb. 29, 2020 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt amount | $ 8,521.6 | $ 8,486.2 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt amount | $ 8,160.9 | $ 8,162.2 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | Jun. 20, 2020 | Feb. 29, 2020 |
Swaps not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 2,023 | $ 2,023 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Cash Flow Hedges (Details) - Designated interest rate swaps - USD ($) $ in Millions | 4 Months Ended | |
Jun. 20, 2020 | Jun. 15, 2019 | |
Loss on undesignated portion of interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized from derivatives | $ (19) | $ 0 |
Loss on designated portion of interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized from derivatives | $ 0 | $ (27) |
LONG-TERM DEBT AND FINANCE LE_3
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS - Narrative (Details) - USD ($) | Mar. 12, 2020 | Jun. 20, 2020 | Feb. 29, 2020 |
Debt Instrument [Line Items] | |||
Unamortized debt discounts | $ 40,600,000 | $ 41,300,000 | |
Deferred financing costs | 69,400,000 | 72,900,000 | |
Outstanding balance on letters of credit | 90,300,000 | 90,300,000 | |
Asset-Based Loan Facility | Line of credit | |||
Debt Instrument [Line Items] | |||
Proceeds from lines of credit | $ 2,000,000,000 | ||
Outstanding balance on line of credit | 0 | 0 | |
LOC Sub-facility | |||
Debt Instrument [Line Items] | |||
Outstanding balance on letters of credit | $ 449,700,000 | $ 454,500,000 |
LONG-TERM DEBT AND FINANCE LE_4
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Jun. 20, 2020 | Feb. 29, 2020 |
Debt Instrument [Line Items] | ||
Finance lease obligations | $ 652.7 | $ 666.7 |
Total debt | 8,703.6 | 8,714.7 |
Less current maturities | (219.1) | (221.4) |
Long-term portion | 8,484.5 | 8,493.3 |
Senior notes | Senior Unsecured Notes due 2023, 2024, 2025, 2026, 2027, 2028 and 2030, interest rate of 3.5%, 6.625%, 5.750%, 7.5%, 4.625%, 5.875% and 4.875%, respectively | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 6,887.7 | 6,884.5 |
Senior notes | Senior Unsecured Notes due 2023, interest rate of 3.5% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.50% | |
Senior notes | Senior Unsecured Notes due 2024, interest rate of 6.625% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 6.625% | |
Senior notes | Senior Unsecured Notes due 2025, interest rate 5.750% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 5.75% | |
Senior notes | Senior Unsecured Notes due 2026, interest rate of 7.5% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 7.50% | |
Senior notes | Senior Unsecured Notes, due 2027, interest rate of 4.625% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 4.625% | |
Senior notes | Senior Unsecured Notes, due 2028, interest rate of 5.875% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 5.875% | |
Senior notes | Senior Unsecured Notes, due 2030, interest rate of 4.875% | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 4.875% | |
Notes payable | Safeway Inc. Notes due 2020 to 2031, interest rate range of 3.95% to 7.45% | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 641.1 | 642.1 |
Notes payable | Safeway Inc. Notes due 2020 to 2031, interest rate range of 3.95% to 7.45% | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 3.95% | |
Notes payable | Safeway Inc. Notes due 2020 to 2031, interest rate range of 3.95% to 7.45% | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 7.45% | |
Notes payable | New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70% | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 466.9 | 466 |
Notes payable | New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70% | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 6.52% | |
Notes payable | New Albertsons L.P. Notes due 2026 to 2031, interest rate range of 6.52% to 8.70% | Maximum | ||
Debt Instrument [Line Items] | ||
Stated interest rate percentage | 8.70% | |
Other notes payable | Other Notes Payable, unsecured | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 37.2 | 37.2 |
Mortgage notes payable | Mortgage Notes Payable, secured | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 18 | $ 18.2 |
STOCKHOLDERS' EQUITY AND CONV_2
STOCKHOLDERS' EQUITY AND CONVERTIBLE PREFERRED STOCK (Details) $ / shares in Units, $ in Thousands | Jun. 30, 2020$ / sharesshares | Jun. 18, 2020 | Jun. 09, 2020USD ($)dayshares | Jun. 08, 2020USD ($)day$ / sharesshares | Jun. 20, 2020USD ($)$ / sharesshares | Jun. 15, 2019USD ($) | Jun. 29, 2020shares | Feb. 29, 2020$ / sharesshares |
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized | 1,150,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||
Common stock shares issued | 582,997,251 | |||||||
Common stock, shares outstanding | 579,325,630 | |||||||
Stock split ration | 2.072 | |||||||
Preferred stock, shares authorized | 100,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||
Proceeds from convertible preferred stock | $ | $ 1,680,000 | $ 1,680,000 | $ 0 | |||||
Liquidation preference, value | $ | $ 1,750,000 | |||||||
Maximum percent of shares effected by mandatory conversion | 33.33% | |||||||
Class A common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Common stock shares issued | 584,310,110 | 582,997,251 | ||||||
Common stock, shares outstanding | 479,026,753 | |||||||
Class A-1 convertible common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | 0 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||
Common stock shares issued | 0 | 0 | ||||||
Common stock, shares outstanding | 0 | |||||||
Preferred Class A | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares authorized | 340,000 | 1,750,000 | ||||||
Series A-1 convertible preferred stock | ||||||||
Class of Stock [Line Items] | ||||||||
Conversion basis per share (in shares) | 1 | |||||||
Preferred stock, shares authorized | 1,410,000 | |||||||
Shares issued upon conversion | 58.064 | |||||||
Dividend rate, percentage | 6.75% | |||||||
Dividend rate, percent, additional dividends for dividends not declared | 2.25% | |||||||
Preferred stock participation in cash dividends over dividends to common stock | $ | $ 206,250 | |||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 17.22 | |||||||
Preferred stock, mandatory conversion, common stock price, minimum | $ / shares | $ 20.50 | |||||||
Common stock price, minimum, percent of initial conversion price | 119.00% | |||||||
Preferred stock, convertible, threshold trading days | day | 20 | |||||||
Preferred stock, convertible, threshold consecutive trading days | day | 30 | |||||||
Preferred stock, conversion period restriction | 12 months | |||||||
Preferred stock, conversion restriction, last reported sale price of stock, minimum | $ / shares | $ 23.42 | |||||||
Preferred stock, conversion restriction, last reported sale price of stock, minimum, percent of initial conversion price | 136.00% | |||||||
Convertible Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, convertible, threshold consecutive trading days | day | 30 | |||||||
Preferred stock, conversion price, multiple | 105.00% | |||||||
Preferred stock, conversion price, multiple, in case of receiving the notice of intention of conversion | 110.00% | |||||||
Preferred stock, agreement appraisal value of the stock liquidation preference, percent | 165.00% | |||||||
Escrow deposit | $ | $ 36,500 | |||||||
Subsequent Event | Series A-1 convertible preferred stock | ||||||||
Class of Stock [Line Items] | ||||||||
Shares issued upon conversion | 584,000 | |||||||
Subsequent Event | IPO | ||||||||
Class of Stock [Line Items] | ||||||||
Number of shares issued | 50,000,000 | |||||||
Price per share | $ / shares | $ 16 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Components of Net Pension and Post-retirement Expense (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 20, 2020 | Jun. 15, 2019 | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated return on plan assets | $ (31.5) | $ (33.9) |
Service cost | 4.8 | 4.5 |
Interest cost | 16.6 | 24.8 |
Amortization of prior service cost | 0.1 | 0.1 |
Amortization of net actuarial loss (gain) | 0.6 | 0.2 |
(Income) expense, net | (9.4) | (4.3) |
Other post-retirement benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated return on plan assets | 0 | 0 |
Service cost | 0 | 0.2 |
Interest cost | 0.1 | 0.2 |
Amortization of prior service cost | 0.6 | 1.1 |
Amortization of net actuarial loss (gain) | (0.2) | (0.1) |
(Income) expense, net | $ 0.5 | $ 1.4 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) $ in Millions | Jul. 01, 2020USD ($)installmentunion | Mar. 05, 2020USD ($) | Jun. 20, 2020USD ($) | Jun. 15, 2019USD ($) | Jul. 21, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||
Contribution made to defined benefit plan | $ 54.6 | $ 5.2 | |||
Expected future employer contributions for remainder of the fiscal year | 7.8 | ||||
Defined contribution plan costs recognized | 21.8 | $ 18.6 | |||
Combined Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Required annual contribution | $ 23.2 | ||||
Defined contribution plan term | 25 years | ||||
MAP And FELRA | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan costs recognized | $ 26.2 | ||||
Subsequent Event | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of local unions ratifying the agreement | union | 9 | ||||
Subsequent Event | Variable Annuity Pension Plan (VAPP) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected future employer contributions | $ 286 | ||||
Period of expected future employer contributions | 3 years | ||||
Plan pre-funding period | 30 days | ||||
Expected future employer contributions, after-tax | $ 213 | ||||
Subsequent Event | Minimum | Variable Annuity Pension Plan (VAPP) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of installments for expected future employer contribution | installment | 3 | ||||
Pre-funded reserve amount | $ 8 | ||||
Subsequent Event | Maximum | Variable Annuity Pension Plan (VAPP) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of installments for expected future employer contribution | installment | 4 | ||||
Pre-funded reserve amount | $ 9 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS - Guarantees (Details) - USD ($) $ in Millions | Jun. 20, 2020 | Feb. 29, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding balance on letters of credit | $ 90.3 | $ 90.3 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS - Legal Contingencies (Details) $ in Millions | 4 Months Ended |
Jun. 20, 2020USD ($)claimlawsuit | |
Safeway's 401(k) Plan | Pending litigation | Safeway Inc | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against the company | lawsuit | 2 |
Qui Tam Lawsuits | Pending litigation | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against the company | lawsuit | 2 |
Qui Tam Lawsuits | Pending litigation | Minimum | |
Loss Contingencies [Line Items] | |
Loss contingency, amount of damages sought (in excess of) | $ | $ 100 |
Various State Courts | Threatened litigation | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against the company | claim | 70 |
Consolidated cases for multidistrict litigation | |
Loss Contingencies [Line Items] | |
Number of lawsuits filed against the company | claim | 2,000 |
OTHER COMPREHENSIVE INCOME OR_3
OTHER COMPREHENSIVE INCOME OR LOSS - Changes in the AOCI Balance (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 20, 2020 | Jun. 15, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,278.1 | $ 1,450.7 |
Other comprehensive (loss) income before reclassifications | 1.2 | (23.9) |
Amounts reclassified from accumulated other comprehensive income | 1.1 | (1.2) |
Tax benefit (expense) | (0.6) | 6.6 |
Other comprehensive income (loss) | 1.7 | (1.9) |
Ending balance | $ 1,194.9 | 2,054.4 |
Accounting standards update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | |
Accumulated other comprehensive income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (118.5) | 91.3 |
Ending balance | (116.8) | 89.4 |
Interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 3.4 |
Other comprehensive (loss) income before reclassifications | 0 | (35.7) |
Amounts reclassified from accumulated other comprehensive income | 0 | (2.5) |
Tax benefit (expense) | 0 | 10 |
Other comprehensive income (loss) | 0 | (27) |
Ending balance | 0 | (23.6) |
Pension and Post-retirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (121.7) | 88.8 |
Other comprehensive (loss) income before reclassifications | 0 | 10.1 |
Amounts reclassified from accumulated other comprehensive income | 1.1 | 1.3 |
Tax benefit (expense) | (0.3) | (2.9) |
Other comprehensive income (loss) | 0.8 | 23.4 |
Ending balance | (120.9) | 112.2 |
Other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 3.2 | (0.9) |
Other comprehensive (loss) income before reclassifications | 1.2 | 1.7 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Tax benefit (expense) | (0.3) | (0.5) |
Other comprehensive income (loss) | 0.9 | 1.7 |
Ending balance | $ 4.1 | 0.8 |
Adoption of new accounting standards, net of tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 574.6 | |
Adoption of new accounting standards, net of tax | Accumulated other comprehensive income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 16.6 | |
Adoption of new accounting standards, net of tax | Interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1.2 | |
Adoption of new accounting standards, net of tax | Pension and Post-retirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 14.9 | |
Adoption of new accounting standards, net of tax | Other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 0.5 |
NET INCOME PER CLASS A COMMON_3
NET INCOME PER CLASS A COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 08, 2020 | Jun. 20, 2020 | Jun. 15, 2019 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income | $ 586,200 | $ 49,000 | |
Accrued dividends on preferred stock | (3,900) | 0 | |
Earnings allocated to Convertible Preferred Stock | 0 | 0 | |
Net income allocated to Class A common shareholders - Basic | $ 582,300 | $ 49,000 | |
Weighted average Class A common shares outstanding - Basic (in shares) | 568,000,000 | 579,200,000 | |
Basic net income per Class A common share (USD per share) | $ 1.03 | $ 0.08 | |
Accrued dividends on Convertible Preferred Stock | $ 3,900 | $ 0 | |
Dilutive effect of: | |||
Restricted stock units and awards (in shares) | 0 | 3,400,000 | |
Convertible preferred stock (shares) | 10,900,000 | 0 | |
Weighted average Class A common shares outstanding - Diluted (in shares) | 583,700,000 | 579,400,000 | |
Diluted net income per Class A common share (USD per share) | $ 1 | $ 0.08 | |
Antidilutive securities excluded from computation of diluted income per Class A common share (in shares) | 0 | 0 | |
RSUs | |||
Dilutive effect of: | |||
Restricted stock units and awards (in shares) | 4,800,000 | 200,000 | |
Series A-1 convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred stock participation in cash dividends over dividends to common stock | $ 206,250 |