Document and Entity Information
Document and Entity Information | 4 Months Ended |
Jun. 17, 2017shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Albertsons Companies, LLC |
Entity Central Index Key | 1,704,956 |
Entity Filer Category | Non-accelerated Filer |
Current Fiscal Year End Date | --02-24 |
Document Fiscal Year Focus | 2,017 |
Document Type | 10-Q |
Document Fiscal Period Focus | Q1 |
Document Period End Date | Jun. 17, 2017 |
Amendment Flag | false |
Common Stock, Shares, Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 17, 2017 | Feb. 25, 2017 |
Current assets | ||
Cash and cash equivalents | $ 1,063.4 | $ 1,219.2 |
Receivables, net | 599 | 631 |
Inventories, net | 4,436.7 | 4,464 |
Other current assets | 328.5 | 479 |
Total current assets | 6,427.6 | 6,793.2 |
Property and equipment, net | 11,340.8 | 11,511.8 |
Intangible assets, net | 3,374.2 | 3,497.8 |
Goodwill | 1,179.4 | 1,167.8 |
Other assets | 861.2 | 784.4 |
TOTAL ASSETS | 23,183.2 | 23,755 |
Current liabilities | ||
Accounts payable | 3,156.6 | 3,034.7 |
Accrued salaries and wages | 925.2 | 1,007.5 |
Current maturities of long-term debt and capitalized lease obligations | 303.9 | 318.5 |
Other current liabilities | 1,338 | 1,380.1 |
Total current liabilities | 5,723.7 | 5,740.8 |
Long-term debt and capitalized lease obligations | 11,754.2 | 12,019.4 |
Deferred income taxes | 1,432.4 | 1,479.8 |
Other long-term liabilities | 3,087 | 3,143.8 |
Commitments and contingencies | ||
Member equity | ||
Member investment | 1,991 | 1,999.3 |
Accumulated other comprehensive income (loss) | 15.1 | (12.8) |
Accumulated deficit | (820.2) | (615.3) |
Total member equity | 1,185.9 | 1,371.2 |
TOTAL LIABILITIES AND MEMBER EQUITY | $ 23,183.2 | $ 23,755 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
Income Statement [Abstract] | ||
Net sales and other revenue | $ 18,460 | $ 18,391.7 |
Cost of sales | 13,401.5 | 13,270.7 |
Gross profit | 5,058.5 | 5,121 |
Selling and administrative expenses | 4,967.9 | 4,921.6 |
Operating income | 90.6 | 199.4 |
Interest expense, net | 270.5 | 313.7 |
Other expense (income) | 24.6 | (4.8) |
Loss before income taxes | (204.5) | (109.5) |
Income tax expense | 0.4 | 24.1 |
Net loss | (204.9) | (133.6) |
Other comprehensive income (loss): | ||
Gain (loss) on interest rate swaps, net of tax | 1.6 | (3.3) |
Recognition of pension gain (loss), net of tax | 2.8 | (13.8) |
Foreign currency translation adjustment, net of tax | 23.1 | (5.2) |
Other, net of tax | 0.4 | 0.5 |
Comprehensive loss | $ (177) | $ (155.4) |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (204.9) | $ (133.6) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Net gain on property dispositions, asset impairment and lease exit costs | (1.9) | (43.5) |
Depreciation and amortization | 578.4 | 531.8 |
LIFO expense | 15.7 | 13.5 |
Deferred income tax | (71.5) | (145.4) |
Pension and post-retirement benefits expense | 7.5 | 84.8 |
Contributions to pension and post-retirement benefit plans | (2.1) | (5.2) |
Loss (gain) on interest rate swaps and commodity hedges, net | 1.1 | (8.7) |
Amortization and write-off of deferred financing costs | 15.7 | 25.8 |
Equity-based compensation expense | 8.8 | 15.8 |
Other | 49.2 | 20.2 |
Changes in operating assets and liabilities, net of effects of acquisition of businesses: | ||
Receivables, net | 32.7 | 27.2 |
Inventories, net | 14.2 | 24.9 |
Accounts payable, accrued salaries and wages and other accrued liabilities | 131.9 | 46.9 |
Other operating assets and liabilities | 79.5 | 115.6 |
Net cash provided by operating activities | 654.3 | 570.1 |
Cash flows from investing activities: | ||
Business acquisitions, net of cash acquired | (34.5) | (146.6) |
Payments for property, equipment and intangibles, including payments for lease buyouts | (422.6) | (397.8) |
Proceeds from sale of assets | 2.6 | 336.2 |
Changes in restricted cash | (19.1) | (90.8) |
Other | (0.9) | 63.5 |
Net cash used in investing activities | (474.5) | (235.5) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 1,300 |
Payments on long-term borrowings | (268) | (648.7) |
Payments of obligations under capital leases | (31.1) | (34.1) |
Payments for debt financing costs | 0 | (15.5) |
Other | (36.5) | (39.8) |
Net cash (used in) provided by financing activities | (335.6) | 561.9 |
Net (decrease) increase in cash and cash equivalents | (155.8) | 896.5 |
Cash and cash equivalents at beginning of period | 1,219.2 | 579.7 |
Cash and cash equivalents at end of period | $ 1,063.4 | $ 1,476.2 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 4 Months Ended |
Jun. 17, 2017 | |
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, LLC and subsidiaries (the "Company"). All significant intercompany balances and transactions were eliminated. The Condensed Consolidated Balance Sheet as of February 25, 2017 is derived from the Company's annual audited Consolidated Financial Statements for the fiscal year ended February 25, 2017 , which should be read in conjunction with these Condensed Consolidated Financial Statements and which are included in the Company's Registration Statement on Form S-4 (File No. 333-218138) filed May 19, 2017, as amended. 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 17, 2017 and June 18, 2016 . The Company is a wholly owned subsidiary of AB Acquisition LLC ("AB Acquisition"), and has no separate assets or liabilities other than its investments in its subsidiaries. The Company's parent, AB Acquisition, is owned by a consortium of investors led by Cerberus Capital Management, L.P. Significant Accounting Policies Restricted cash: Restricted cash is included in Other current assets and Other assets within the Condensed Consolidated Balance Sheets and primarily relates to funds held in escrow. The Company had $29.0 million and $9.9 million of restricted cash as of June 17, 2017 and February 25, 2017 , 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 discrete inventory items at 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 $15.7 million and $13.5 million for the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. Acquisitions: On May 31, 2017, the Company acquired MedCart Specialty Pharmacy ("MedCart") for $34.5 million , including the cost of acquired inventory. The acquisition was accounted for under the acquisition method of accounting and resulted in $11.6 million of goodwill that is expected to be deductible for tax purposes. In connection with the purchase, the Company provided an earn-out opportunity that has the potential to pay the sellers an additional $17.2 million , collectively, if the business achieves certain performance targets during the first three years subsequent to the acquisition. As the earn-out is conditioned on the continued service of the sellers, it will be recorded as future compensation expense based on the probability of achieving the performance targets. Pro forma results are not presented, as the acquisition was not considered material to the Company. Income Taxes: Income tax expense was $0.4 million and $24.1 million for the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. The decrease in Income tax expense is primarily the result of a change in the mix of the Company's income (loss) between companies within its affiliated group. The Company is organized as a limited liability company, wholly owned by its parent, AB Acquisition, and conducts its operations primarily through limited liability companies and Subchapter C corporations. The Company provides for federal and state income taxes on its Subchapter C corporations, which are subject to entity-level tax, and state income taxes on its limited liability companies where applicable. As such, the Company's effective tax rate can fluctuate from period to period depending on the mix of pre-tax income or loss between its limited liability companies and Subchapter C corporations. Segments : The Company and its subsidiaries operate food and drug retail stores that offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services. The Company's retail operating divisions are geographically based, have similar economic characteristics and similar expected long-term financial performance and are reported in one reportable segment. The Company's operating segments and reporting units are its 13 divisions, which have been aggregated into 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 store offers 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. Except for an equity method investment in Casa Ley, S.A. de C.V. ("Casa Ley"), all of the Company's retail operations are domestic. The following table represents sales revenue by type of similar product (dollars in millions): 16 weeks ended June 17, June 18, Amount % of Total Amount % of Total Non-perishables (1) $ 8,193.3 44.4 % $ 8,348.5 45.4 % Perishables (2) 7,563.6 41.0 % 7,407.5 40.3 % Pharmacy 1,534.4 8.3 % 1,566.7 8.5 % Fuel 944.0 5.1 % 812.7 4.4 % Other (3) 224.7 1.2 % 256.3 1.4 % Net sales and other revenue $ 18,460.0 100.0 % $ 18,391.7 100.0 % (1) Consists primarily of general merchandise, grocery and frozen foods. (2) Consists primarily of produce, dairy, meat, deli, floral and seafood. (3) Consists primarily of lottery and various other commissions and other miscellaneous income. Recently adopted accounting standards: In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, " Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. " The new standard simplifies the interim or annual goodwill impairment test. The standard is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has elected to early adopt this guidance beginning the first day of fiscal 2017. Under the new standard, Step 2 of the goodwill impairment test is eliminated. Instead, the Company will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. A resulting impairment charge should be recognized for the amount that the carrying amount exceeds the reporting unit’s fair value. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. Recently issued accounting standards: In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers” (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company plans to adopt this guidance in the first quarter of fiscal 2018. The Company does not expect the adoption of this standard to have a material effect on its Consolidated Financial Statements. The Company's evaluation of the standard is ongoing related to the potential impact on customer loyalty programs and whether it acts as principal or agent in certain third party arrangements. The Company also continues to evaluate the adoption method for implementation. In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842)" . The ASU will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will require both classifications of leases, operating and capital, to be recognized on the balance sheet. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease will depend on its classification. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company plans to adopt this guidance in the first quarter of fiscal 2019. The adoption of this ASU will result in the recognition of significant right-of-use assets and lease liabilities in the Company's Consolidated Balance Sheets. The Company's evaluation is continuing, including the assessment of other potential impacts of this pronouncement on the Consolidated Financial Statements and disclosures. In March 2017, the FASB issued 2017-07, " Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ." This ASU requires an employer to report the service cost component of net pension and post-retirement expense in the same line as other compensation costs from services rendered by employees during the period. Other components of net pension and post-retirement expense are required to be presented in the income statement separately from the service cost component. The ASU will take effect for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The update should be applied retrospectively for the presentation of service cost and other components of net pension and post-retirement expense in the income statement, and prospectively for the capitalization of service cost. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 4 Months Ended |
Jun. 17, 2017 | |
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; 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 17, 2017 (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 $ 452.0 $ 452.0 $ — $ — Short-term investments (1) 22.8 20.2 2.6 — Non-current investments (2) 96.9 44.6 52.3 — Total $ 571.7 $ 516.8 $ 54.9 $ — Liabilities: Derivative contracts (3) $ 96.5 $ — $ 96.5 $ — Contingent consideration (4) 305.6 — — 305.6 Total $ 402.1 $ — $ 96.5 $ 305.6 (1) Primarily relates to Mutual Funds. Included in Other current assets on the Condensed Consolidated Balance Sheets. (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 on the Condensed Consolidated Balance Sheets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities on the Condensed Consolidated Balance Sheets. (4) Primarily relates to Casa Ley contingent value rights ("CVRs"). Included in Other current liabilities on the Condensed Consolidated Balance Sheets. The following table presents assets and liabilities which were measured at fair value on a recurring basis as of February 25, 2017 (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 $ 596.0 $ 596.0 $ — $ — Short-term investments (1) 21.6 19.4 2.2 — Non-current investments (2) 97.5 45.6 51.9 — Total $ 715.1 $ 661.0 $ 54.1 $ — Liabilities: Derivative contracts (3) $ 103.7 $ — $ 103.7 $ — Contingent consideration (4) 281.0 — — 281.0 Total $ 384.7 $ — $ 103.7 $ 281.0 (1) Primarily relates to Mutual Funds. Included in Other current assets on the Condensed Consolidated Balance Sheets. (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 on the Condensed Consolidated Balance Sheets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities on the Condensed Consolidated Balance Sheets. (4) Primarily relates to Casa Ley CVRs. Included in Other current liabilities on the Condensed Consolidated Balance Sheets. A reconciliation of the beginning and ending balances for Level 3 liabilities for the 16 weeks ended June 17, 2017 follows (in millions): Contingent consideration Beginning balance $ 281.0 Change in fair value 29.1 Payments (4.5 ) Ending balance $ 305.6 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 17, 2017 , the fair value of total debt was $11,399.0 million compared to the carrying value of $11,544.1 million , excluding debt discounts and deferred financing costs. As of February 25, 2017 , the fair value of total debt was $11,882.8 million compared to the carrying value of $11,812.1 million , excluding debt discounts and deferred financing costs. Assets Measured at Fair Value on a Non-recurring Basis As of June 17, 2017 and February 25, 2017 , except in relation to assets classified as held for sale, no other material amounts of assets have been adjusted to fair value on a non-recurring basis. The Company's held for sale assets are classified as Level 3 of the fair value hierarchy and are valued primarily based on estimated selling prices less costs of disposal. |
Derivative Financial Instrument
Derivative Financial Instruments | 4 Months Ended |
Jun. 17, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Interest Rate Risk Management The Company is exposed to market risk from fluctuations in interest rates. The Company manages its exposure to interest rate fluctuations through the use of interest rate swaps ("Cash Flow Hedges"). The Company’s risk management objective and strategy with respect to interest rate swaps is to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. The Company is meeting its objective by hedging the risk of changes in its cash flows (interest payments) attributable to changes in the London Inter-Bank Offering Rate ("LIBOR"), the designated benchmark interest rate being hedged (the “hedged risk”), on an amount of the Company’s debt principal equal to the then-outstanding swap notional amount. Cash Flow Interest Rate Swaps For derivative instruments that are designated and qualify as cash flow hedges of forecasted interest payments, the Company reports the effective portion of the gain or loss as a component of Other comprehensive income (loss) until the interest payments being hedged are recorded as Interest expense, net, at which time the amounts in Other comprehensive income (loss) are reclassified as an adjustment to Interest expense, net. Gains or losses on any ineffective portion of derivative instruments in cash flow hedging relationships are recorded in the period in which they occur as a component of Other expense (income) in the Condensed Consolidated Statement of Operations and Comprehensive Loss. The Company has entered into several swaps with maturity dates in 2019 and 2021 to hedge against variability in cash flows relating to interest payments on a portion of the Company's outstanding variable rate term debt. The aggregate notional amounts of all swaps as of both June 17, 2017 and February 25, 2017 , were $3,968.6 million , of which $3,910.6 million are designated as Cash Flow Hedges as defined by GAAP. The undesignated portion of the Company's interest rate swaps is attributable to principal payments expected to be made through the loan’s maturity. As of June 17, 2017 and February 25, 2017 , the fair value of the cash flow interest rate swap liability was $92.2 million and $99.2 million , respectively, and was recorded in Other current liabilities. Contemporaneously with the refinancing of the Albertsons Term Loans in fiscal 2016, the Company amended each of its existing interest rate swaps to reduce the floor on LIBOR from 100 basis points to 75 basis points. As a result, the Company dedesignated its original cash flow hedges and redesignated the amended swaps prospectively. Losses of $23.9 million , net of tax, deferred into other comprehensive income as of the dedesignation date, which are associated with the original cash flow hedges, will be amortized to interest expense over the remaining life of the hedges. Activity related to the Company’s derivative instruments designated as Cash Flow Hedges consisted of the following (in millions): Amount of income (loss) recognized from derivatives Derivatives designated as hedging instruments 16 weeks ended June 17, 2017 16 weeks ended June 18, 2016 Location of income (loss) recognized from derivatives Designated interest rate swaps $ 1.6 $ (3.3 ) Other comprehensive income (loss), net of tax Activity related to the Company’s derivative instruments not designated as hedging instruments consisted of the following (in millions): Amount of loss recognized from derivatives Derivatives not designated as hedging instruments 16 weeks ended June 17, 2017 16 weeks ended June 18, 2016 Location of income (loss) recognized from derivatives Undesignated and ineffective portion of interest rate swaps $ (0.3 ) $ — Other expense (income) |
Long-term Debt and Capitalized
Long-term Debt and Capitalized Lease Obligations | 4 Months Ended |
Jun. 17, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Capitalized Lease Obligations | LONG-TERM DEBT AND CAPITALIZED LEASE OBLIGATIONS The Company’s long-term debt as of June 17, 2017 and February 25, 2017 , net of unamortized debt discounts of $294.9 million and $310.0 million , respectively, and deferred financing costs of $107.5 million and $118.2 million , respectively, consisted of the following (in millions): June 17, February 25, Albertsons Term Loans due 2021 to 2023, interest rate range of 3.8% to 4.2% $ 5,605.1 $ 5,853.0 Albertsons Senior Unsecured Notes due 2024 and 2025, interest rate of 6.625% and 5.750%, respectively 2,474.0 2,473.0 NAI Notes due 2017 to 2031, interest rate range of 6.47% to 8.7% 1,560.9 1,552.2 Safeway Notes due 2017 to 2031, interest rate range of 3.95% to 7.45% 1,367.4 1,368.4 Other Notes Payable, unsecured 112.2 114.9 Mortgage Notes Payable, secured 22.1 22.4 Total debt 11,141.7 11,383.9 Less current maturities (191.9 ) (203.8 ) Long-term portion $ 10,949.8 $ 11,180.1 Term Loans On June 16, 2017, the Company repaid $250.0 million of the existing term loans. In connection with the repayment, the Company wrote off $7.6 million of deferred financing costs and original issue discount. In addition, on June 27, 2017 subsequent to the end of the Company's first quarter of fiscal 2017, the Company entered into a repricing amendment to the term loan agreement which established three new term loan tranches. The new tranches consist of $3,013.6 million of a new Term B-4 Loan, $1,139.3 million of a new Term B-5 Loan and $1,596.0 million of a new Term B-6 Loan. The (i) new Term B-4 Loan will mature on August 25, 2021 , and has an interest rate of LIBOR, subject to a 0.75% floor, plus 2.75% , (ii) new Term B-5 Loan will mature on December 21, 2022 , and has an interest rate of LIBOR, subject to a 0.75% floor, plus 3.00% , and (iii) new Term B-6 Loan will mature on June 22, 2023 , and has an interest rate of LIBOR, subject to a 0.75% floor, plus 3.00% . The repricing amendment to the term loans will be accounted for as a modification during the second quarter of fiscal 2017. Asset-Based Loan Facility As of June 17, 2017 , there were no loans outstanding under the Company's asset-based loan facility ("ABL Facility"), and letters of credit ("LOC") issued under the LOC sub-facility were $621.3 million . There were no loans outstanding under the Company's ABL Facility as of February 25, 2017 , and letters of credit issued under the LOC sub-facility were $622.3 million . Capitalized Lease Obligations The Company's capitalized lease obligations were $916.4 million and $954.0 million as of June 17, 2017 and February 25, 2017 , respectively. Current maturities of capitalized lease obligations were $112.0 million and $114.7 million and long-term maturities were $804.4 million and $839.3 million , as of June 17, 2017 and February 25, 2017 , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 4 Months Ended |
Jun. 17, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension Plans On May 15, 2016, the Company, through an indirect, wholly-owned subsidiary, acquired 100% of the outstanding equity of Collington Services, LLC ("Collington") from C&S Wholesale Grocers, Inc. ("C&S") for nominal cash consideration and the assumption of certain liabilities, primarily related to employee compensation and benefits of the workforce acquired. Prior to the acquisition, C&S, through its wholly-owned subsidiary, Collington, managed and operated the Company's distribution center located in Upper Marlboro, Maryland. By purchasing the equity of Collington, the Company settled a pre-existing reimbursement arrangement under the previous supply agreement relating to the pension plan in which Collington employees participate. Consequently, the Company, through its newly acquired subsidiary, Collington, assumed primary liability for the Collington employees participating in the pension plan. Prior to the acquisition of Collington, the pension plan was a multiple employer plan, with Safeway Inc. ("Safeway"), a wholly-owned subsidiary of the Company, and C&S being the respective employers. The Safeway portion of the plan was accounted for as a multiemployer plan, with the C&S portion being accounted for by the Company through the previous supply agreement. Also, contemporaneously with the acquisition of Collington, the Company negotiated a new supply agreement with C&S and negotiated concessions directly from the unions representing the Collington employees at the distribution center. The acquisition of Collington resulted in a charge of approximately $78.9 million to net pension expense during the first quarter of fiscal 2016 . Upon the assumption of the C&S portion of the pension plan through the equity acquisition, the multiple-employer pension plan was accounted for as a single employer plan. The plan assets were commingled with the assets in Safeway's defined benefit pension plan ("the Safeway Plan") under a master trust arrangement prior to this transaction and on December 30, 2016 this plan and the Safeway Plan were formally merged. The Company also contributes to various multiemployer pension plans based on obligations arising from most of its collective bargaining agreements. These plans provide retirement benefits to participants based on their service to contributing employers. The Company recognizes expense in connection with these plans as contributions are funded. Other Post-Retirement Benefits In connection with the Collington transaction, the Company negotiated with the respective unions a new unfunded post-retirement obligation with a projected benefit obligation of approximately $15.5 million , recorded through Other comprehensive income (loss) as prior service cost during the first quarter of fiscal 2016 . The following tables provide the components of net pension and post-retirement expense (in millions): 16 weeks ended Pension Other post-retirement benefits June 17, June 18, June 17, June 18, Estimated return on plan assets $ (36.8 ) $ (34.8 ) $ — $ — Service cost 15.3 16.2 0.3 — Interest cost 27.1 24.3 0.3 0.2 Amortization of prior service cost 0.1 — 1.1 — Amortization of unrecognized gain/loss 0.1 — — — Collington acquisition — 78.9 — — Net expense $ 5.8 $ 84.6 $ 1.7 $ 0.2 The Company contributed $2.1 million and $5.2 million to its defined benefit pension plans and post-retirement benefit plans during the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. For the remainder of fiscal 2017 , the Company currently anticipates contributing an additional $19.8 million to these plans. Defined Contribution Plans and Supplemental Retirement Plans Many of the Company's employees are eligible to contribute a percentage of their compensation to defined contribution plans ("401(k) Plans"). Participants in the 401(k) Plans may become eligible to receive a profit-sharing allocation in the form of a discretionary Company contribution based on employee compensation. In addition, the Company may also provide matching contributions based on the amount of eligible compensation contributed by the employee. All Company contributions to the 401(k) Plans are made at the discretion of the Company's Board of Managers. Total contributions accrued for these plans were $13.6 million and $12.8 million for the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. |
Related Parties and Other Relat
Related Parties and Other Relationships | 4 Months Ended |
Jun. 17, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties and Other Relationships | RELATED PARTIES AND OTHER RELATIONSHIPS Summary of SuperValu activity Related party activities with SUPERVALU INC. ("SuperValu") that are included in the Condensed Consolidated Statements of Operations and Comprehensive Loss consisted of the following (in millions): 16 weeks ended June 17, June 18, Supply agreements included in Cost of sales $ 508.6 $ 531.6 Selling and administrative expenses 43.0 51.6 Total $ 551.6 $ 583.2 AB Acquisition Certain employees of the Company participate in equity-based incentive plans of the Company's parent, AB Acquisition. Awards under the plans vest over a service period, upon achievement of certain performance and related thresholds, or a combination of both. Equity-based compensation expense recognized by the Company related to these plans was $8.8 million and $15.8 million for the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. The Company recorded a tax benefit of $1.8 million and $3.3 million related to equity-based compensation for the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. As of June 17, 2017 , there was $56.8 million of unrecognized costs related to awards granted by AB Acquisition that the Company expects to recognize over a weighted average period of 1.9 years . On June 30, 2017 , the Company’s parent, AB Acquisition, made a cash distribution of $250.0 million to its members. In connection with the distribution, the AB Acquisition members' agreement was amended such that holders of the Investor incentive units, Series 1 incentive units and Series 2 incentive units would participate in the distribution. As a result of the amendment, the Company will recognize approximately $2.0 million of additional equity-based compensation expense during the second quarter of fiscal 2017. |
Commitments and Contingencies a
Commitments and Contingencies and Off Balance Sheet Arrangements | 4 Months Ended |
Jun. 17, 2017 | |
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, which was then the owner of New Albertson's, Inc., a wholly-owned subsidiary of the Company, that additional security 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 security 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, and a decline in SuperValu’s net worth. On January 21, 2014 , the Company entered into a Collateral Substitution Agreement with the California Self-Insurers' Security Fund to provide an irrevocable LOC. The amount of the LOC is adjusted semi-annually based on 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 $244.6 million as of June 17, 2017 and $237.6 million as of February 25, 2017 . 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. 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 Contingencies Various claims and lawsuits arising in the normal course of business, including suits charging violations of certain wage and hour or civil rights laws, are pending against the Company. Some of these suits purport or have been determined to be class actions and/or seek substantial damages. Any damages that may be awarded in antitrust cases will be automatically trebled. 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. Security Breach: On August 14, 2014 , the Company announced that it had experienced a criminal intrusion by installation of malware on a portion of its computer network that processes payment card transactions for its retail store locations, including the Company's Shaw’s , Star Market , Acme, Jewel - Osco and Albertsons retail banners. On September 29, 2014 , the Company announced that it had experienced a second and separate criminal intrusion. The Company believes these were attempts to collect payment card data. Relying on its IT service provider, SuperValu, the Company took immediate steps to secure the affected part of the network. The Company believes that it has eradicated the malware used in each intrusion. The Company notified federal law enforcement authorities, the major payment card networks and its insurance carriers and is cooperating in their efforts to investigate these intrusions. As required by the payment card brands, the Company retained a firm to conduct a forensic investigation into the intrusions. The forensic firm has issued separate reports for each intrusion (copies of which have been provided to the card networks). Although the Company's network had previously been found to be compliant with the Payment Card Industry (PCI) Data Security Standard issued by the PCI Council, in both reports the forensic firm found that not all of these standards had been met at the time of the intrusions, and some of this non-compliance may have contributed to or caused at least some portion of the compromise that occurred during the intrusions. On August 5, 2016, the Company was notified that MasterCard had asserted its initial assessment for incremental counterfeit fraud losses and non-ordinary course expenses (such as card reissuance costs) as well as a case management assessment. The Company believes it is probable that other payment card networks will make similar claims against the Company. If other payment card networks assert claims against the Company, the Company currently intends to dispute those claims and assert available defenses. At the present time, the Company believes that it is probable that the Company will incur a loss in connection with the claims or potential claims from the payment card networks. On December 5, 2016, the Company was further notified that MasterCard had asserted its final assessment of approximately $6.0 million , which the Company paid on December 9, 2016; however, the Company disputes the MasterCard assessment and on March 10, 2017, filed a lawsuit against MasterCard seeking recovery of the assessment. On May 5, 2017, MasterCard filed a motion to dismiss. The parties are in the process of briefing this motion. The Company has recorded an estimated liability for probable losses that it expects to incur in connection with the claims or potential claims to be made by the payment card networks. The estimated liability is based on information currently available to the Company and may change as new information becomes available or if other payment card networks assert claims against the Company. The Company will continue to evaluate information as it becomes available and will record an estimate of additional losses, if any, when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. Currently, the potential range of any loss above the Company’s currently recorded amount cannot be reasonably estimated given no claims have been asserted to date by the payment card networks other than MasterCard and because significant factual and legal issues remain unresolved. On October 20, 2015 , the Company agreed with one of its third party payment administrators to provide a $15.0 million LOC to cover any claims from the payment card networks and to maintain a minimum level of card processing until the potential claims from the payment card networks are resolved. As a result of the criminal intrusions, two class action complaints were filed against the Company by consumers, Mertz v. SuperValu Inc. et al . filed in federal court in the state of Minnesota and Rocke v. SuperValu Inc. et al. filed in federal court in the state of Idaho, alleging deceptive trade practices, negligence and invasion of privacy. The Plaintiffs seek unspecified damages. The Judicial Panel on Multidistrict Litigation has consolidated the class actions and transferred the cases to the District of Minnesota. On August 10, 2015 , the Company and SuperValu filed a motion to dismiss the class actions, which was granted without prejudice on January 7, 2016. The plaintiffs filed a motion to alter or amend the court's judgment, which was denied on April 20, 2016. The court also denied leave to amend the complaint. On May 18, 2016, the plaintiffs filed a notice of appeal to the Eighth Circuit and defendants filed a cross-appeal. The filing of appellate briefs was completed by both parties on September 29, 2016 and oral argument was held on May 10, 2017. On October 6, 2015 , AB Acquisition received a letter from the Office of Attorney General of the Commonwealth of Pennsylvania stating that the Illinois and Pennsylvania Attorneys General Offices are leading a multi-state group that includes the Attorneys General for 14 other states requesting specified information concerning the two data breach incidents. The multi-state group has not made a monetary demand, and the Company is unable to estimate the possibility of or reasonable range of loss, if any. The Company has cooperated with the investigation. Drug Enforcement Administration: During fiscal 2014, the Company received two subpoenas from the Drug Enforcement Administration ("DEA") requesting information concerning the Company's record keeping, reporting and related practices concerning the theft or significant loss of controlled substances. On June 7, 2016, the Company received a third subpoena requesting information concerning potential diversion by one former employee in the Seattle/Tacoma area (Washington State). On July 18, 2017 , the DEA and Department of Justice announced that they had reached an agreement with Safeway with respect to the matters under investigation. Under the agreement, Safeway will (1) pay a penalty of $3.0 million ; (2) surrender its controlled substance license at one of its Belmont, CA, pharmacies, and have its controlled substances license at its North Bend, WA, pharmacy suspended for 6 months with 2 months deferred, resulting in an actual 4 months suspension; and (3) be subject to a three year Corrective Action Plan. 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 is requesting 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 is cooperating 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. Terraza/Lorenz: Two lawsuits have been brought against 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 recordkeepers. An amended complaint was filed on September 16, 2016 and a second amended complaint was filed on November 21, 2016. In general, both lawsuits allege 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. The Company believes these lawsuits are without merit, and intends to contest each of them vigorously. The Safeway Benefits Plans Defendants have filed motions to dismiss both cases. Defendants have answered the complaints, and the parties are in the initial stages of discovery. The Company is currently unable to estimate the range of loss, if any, that may result from these matters due to the early procedural status of the cases. Civil Investigative Demand: 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 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 is cooperating 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. Rodman: On June 17, 2011 , a customer of Safeway’s home delivery business (safeway.com) filed a class action complaint in the United States District Court for the Northern District of California entitled Rodman v. Safeway Inc. , alleging that Safeway had inaccurately represented on its home delivery website that the prices paid there were the same as the prices in the brick-and-mortar retail store. Rodman asserted claims for breach of contract and unfair business practices under California law. The court certified a class for the breach of contract claim, but denied class treatment for the California business practices claims. On December 10, 2014 , the court ruled that the terms and conditions on Safeway’s website should be construed as creating a contractual promise that prices on the website would be the same as in the stores and that Safeway had breached the contract by charging more on the website. On August 31, 2015 , the court denied Safeway’s affirmative defenses and arguments for limiting liability, and determined that website registrants since 2006 were entitled to approximately $31.0 million in damages (which amount was reduced to $23.2 million to correct an error in the court’s calculation), plus prejudgment interest. The court then set a trial date of December 7, 2015 to determine whether pre-2006 registrants were entitled to any recovery. The parties thereafter stipulated to facts regarding the pre-2006 registration process, whereupon the court vacated the December trial date and extended its prior liability and damages rulings to class members who registered before 2006. Consequently, on November 30, 2015 , the court entered a final judgment in favor of the plaintiff class in the amount of $41.9 million (comprised of $31.0 million in damages and $10.9 million in prejudgment interest). Safeway filed a Notice of Appeal from that judgment to the Ninth Circuit Court of Appeals on December 4, 2015 contesting both liability and damages. On April 6, 2016, Plaintiff moved for discovery sanctions against Safeway in the district court, seeking an additional $2.0 million . A hearing on the sanctions motion was held on August 25, 2016, and the court awarded sanctions against the Company in an amount under $1.0 million . The Ninth Circuit Court of Appeals heard oral arguments on the appeal on June 12, 2017. The Company has established an estimated liability for these claims. Other Commitments In the ordinary course of business, the Company enters into various supply contracts to purchase products for resale and purchase and service contracts for fixed asset and information technology commitments. These contracts typically include volume commitments or fixed expiration dates, termination provisions and other standard contractual considerations. |
Other Comprehensive Income or L
Other Comprehensive Income or Loss | 4 Months Ended |
Jun. 17, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income or Loss | OTHER COMPREHENSIVE INCOME OR LOSS Total comprehensive earnings are defined as all changes in member equity during a period, other than those from investments by or distributions to the member. 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 17, 2017 Total Pension and Post-retirement benefit plans Interest rate swaps Foreign currency translation adjustments Other Beginning AOCI balance $ (12.8 ) $ 79.7 $ (28.1 ) $ (66.1 ) $ 1.7 Other comprehensive income (loss) before reclassifications 29.0 2.2 (11.9 ) 38.3 0.4 Amounts reclassified from accumulated other comprehensive income 14.3 1.1 13.2 — — Tax (expense) benefit (15.4 ) (0.5 ) 0.3 (15.2 ) — Current-period other comprehensive income, net 27.9 2.8 1.6 23.1 0.4 Ending AOCI balance $ 15.1 $ 82.5 $ (26.5 ) $ (43.0 ) $ 2.1 16 weeks ended June 18, 2016 Total Pension and Post-retirement benefit plans Interest rate swaps Foreign currency translation adjustments Other Beginning AOCI balance $ (112.7 ) $ (2.3 ) $ (67.5 ) $ (45.6 ) $ 2.7 Other comprehensive (loss) income before reclassifications (45.5 ) (15.5 ) (21.8 ) (9.0 ) 0.8 Amounts reclassified from accumulated other comprehensive income 15.7 — 15.7 — — Tax benefit (expense) 8.0 1.7 2.8 3.8 (0.3 ) Current-period other comprehensive (loss) income, net (21.8 ) (13.8 ) (3.3 ) (5.2 ) 0.5 Ending AOCI balance $ (134.5 ) $ (16.1 ) $ (70.8 ) $ (50.8 ) $ 3.2 |
Basis of Presentation and Sum13
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 4 Months Ended |
Jun. 17, 2017 | |
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, LLC and subsidiaries (the "Company"). All significant intercompany balances and transactions were eliminated. The Condensed Consolidated Balance Sheet as of February 25, 2017 is derived from the Company's annual audited Consolidated Financial Statements for the fiscal year ended February 25, 2017 , which should be read in conjunction with these Condensed Consolidated Financial Statements and which are included in the Company's Registration Statement on Form S-4 (File No. 333-218138) filed May 19, 2017, as amended. 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 17, 2017 and June 18, 2016 . The Company is a wholly owned subsidiary of AB Acquisition LLC ("AB Acquisition"), and has no separate assets or liabilities other than its investments in its subsidiaries. The Company's parent, AB Acquisition, is owned by a consortium of investors led by Cerberus Capital Management, L.P. |
Restricted cash | Restricted cash: Restricted cash is included in Other current assets and Other assets within the Condensed Consolidated Balance Sheets and primarily relates to funds held in escrow. |
Inventories, net | 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 discrete inventory items at 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. |
Income Taxes | Income Taxes: Income tax expense was $0.4 million and $24.1 million for the 16 weeks ended June 17, 2017 and June 18, 2016 , respectively. The decrease in Income tax expense is primarily the result of a change in the mix of the Company's income (loss) between companies within its affiliated group. The Company is organized as a limited liability company, wholly owned by its parent, AB Acquisition, and conducts its operations primarily through limited liability companies and Subchapter C corporations. The Company provides for federal and state income taxes on its Subchapter C corporations, which are subject to entity-level tax, and state income taxes on its limited liability companies where applicable. As such, the Company's effective tax rate can fluctuate from period to period depending on the mix of pre-tax income or loss between its limited liability companies and Subchapter C corporations. |
Segments | Segments : The Company and its subsidiaries operate food and drug retail stores that offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel and other items and services. The Company's retail operating divisions are geographically based, have similar economic characteristics and similar expected long-term financial performance and are reported in one reportable segment. The Company's operating segments and reporting units are its 13 divisions, which have been aggregated into 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 store offers 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. Except for an equity method investment in Casa Ley, S.A. de C.V. ("Casa Ley"), all of the Company's retail operations are domestic. |
Recently adopted and issued accounting standards | Recently adopted accounting standards: In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, " Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. " The new standard simplifies the interim or annual goodwill impairment test. The standard is effective for public entities for annual periods beginning after December 15, 2019, and interim periods within those annual periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has elected to early adopt this guidance beginning the first day of fiscal 2017. Under the new standard, Step 2 of the goodwill impairment test is eliminated. Instead, the Company will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. A resulting impairment charge should be recognized for the amount that the carrying amount exceeds the reporting unit’s fair value. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. Recently issued accounting standards: In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers” (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company plans to adopt this guidance in the first quarter of fiscal 2018. The Company does not expect the adoption of this standard to have a material effect on its Consolidated Financial Statements. The Company's evaluation of the standard is ongoing related to the potential impact on customer loyalty programs and whether it acts as principal or agent in certain third party arrangements. The Company also continues to evaluate the adoption method for implementation. In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842)" . The ASU will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The new guidance will require both classifications of leases, operating and capital, to be recognized on the balance sheet. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease will depend on its classification. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The Company plans to adopt this guidance in the first quarter of fiscal 2019. The adoption of this ASU will result in the recognition of significant right-of-use assets and lease liabilities in the Company's Consolidated Balance Sheets. The Company's evaluation is continuing, including the assessment of other potential impacts of this pronouncement on the Consolidated Financial Statements and disclosures. In March 2017, the FASB issued 2017-07, " Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ." This ASU requires an employer to report the service cost component of net pension and post-retirement expense in the same line as other compensation costs from services rendered by employees during the period. Other components of net pension and post-retirement expense are required to be presented in the income statement separately from the service cost component. The ASU will take effect for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those annual periods. The update should be applied retrospectively for the presentation of service cost and other components of net pension and post-retirement expense in the income statement, and prospectively for the capitalization of service cost. The adoption of this guidance is not expected to have a material impact on the Company's Consolidated Financial Statements. |
Basis of Presentation and Sum14
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
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 17, June 18, Amount % of Total Amount % of Total Non-perishables (1) $ 8,193.3 44.4 % $ 8,348.5 45.4 % Perishables (2) 7,563.6 41.0 % 7,407.5 40.3 % Pharmacy 1,534.4 8.3 % 1,566.7 8.5 % Fuel 944.0 5.1 % 812.7 4.4 % Other (3) 224.7 1.2 % 256.3 1.4 % Net sales and other revenue $ 18,460.0 100.0 % $ 18,391.7 100.0 % (1) Consists primarily of general merchandise, grocery and frozen foods. (2) Consists primarily of produce, dairy, meat, deli, floral and seafood. (3) Consists primarily of lottery and various other commissions and other miscellaneous income. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
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 17, 2017 (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 $ 452.0 $ 452.0 $ — $ — Short-term investments (1) 22.8 20.2 2.6 — Non-current investments (2) 96.9 44.6 52.3 — Total $ 571.7 $ 516.8 $ 54.9 $ — Liabilities: Derivative contracts (3) $ 96.5 $ — $ 96.5 $ — Contingent consideration (4) 305.6 — — 305.6 Total $ 402.1 $ — $ 96.5 $ 305.6 (1) Primarily relates to Mutual Funds. Included in Other current assets on the Condensed Consolidated Balance Sheets. (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 on the Condensed Consolidated Balance Sheets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities on the Condensed Consolidated Balance Sheets. (4) Primarily relates to Casa Ley contingent value rights ("CVRs"). Included in Other current liabilities on the Condensed Consolidated Balance Sheets. The following table presents assets and liabilities which were measured at fair value on a recurring basis as of February 25, 2017 (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 $ 596.0 $ 596.0 $ — $ — Short-term investments (1) 21.6 19.4 2.2 — Non-current investments (2) 97.5 45.6 51.9 — Total $ 715.1 $ 661.0 $ 54.1 $ — Liabilities: Derivative contracts (3) $ 103.7 $ — $ 103.7 $ — Contingent consideration (4) 281.0 — — 281.0 Total $ 384.7 $ — $ 103.7 $ 281.0 (1) Primarily relates to Mutual Funds. Included in Other current assets on the Condensed Consolidated Balance Sheets. (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 on the Condensed Consolidated Balance Sheets. (3) Primarily relates to interest rate swaps. Included in Other current liabilities on the Condensed Consolidated Balance Sheets. (4) Primarily relates to Casa Ley CVRs. Included in Other current liabilities on the Condensed Consolidated Balance Sheets. |
Reconciliation of Level 3 Liabilities | A reconciliation of the beginning and ending balances for Level 3 liabilities for the 16 weeks ended June 17, 2017 follows (in millions): Contingent consideration Beginning balance $ 281.0 Change in fair value 29.1 Payments (4.5 ) Ending balance $ 305.6 |
Derivative Financial Instrume16
Derivative Financial Instruments (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Designated as Cash Flow Hedges | Activity related to the Company’s derivative instruments designated as Cash Flow Hedges consisted of the following (in millions): Amount of income (loss) recognized from derivatives Derivatives designated as hedging instruments 16 weeks ended June 17, 2017 16 weeks ended June 18, 2016 Location of income (loss) recognized from derivatives Designated interest rate swaps $ 1.6 $ (3.3 ) Other comprehensive income (loss), net of tax |
Schedule of Derivative Instruments Not Designated as Hedging Instruments | Activity related to the Company’s derivative instruments not designated as hedging instruments consisted of the following (in millions): Amount of loss recognized from derivatives Derivatives not designated as hedging instruments 16 weeks ended June 17, 2017 16 weeks ended June 18, 2016 Location of income (loss) recognized from derivatives Undesignated and ineffective portion of interest rate swaps $ (0.3 ) $ — Other expense (income) |
Long-term Debt and Capitalize17
Long-term Debt and Capitalized Lease Obligations (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The Company’s long-term debt as of June 17, 2017 and February 25, 2017 , net of unamortized debt discounts of $294.9 million and $310.0 million , respectively, and deferred financing costs of $107.5 million and $118.2 million , respectively, consisted of the following (in millions): June 17, February 25, Albertsons Term Loans due 2021 to 2023, interest rate range of 3.8% to 4.2% $ 5,605.1 $ 5,853.0 Albertsons Senior Unsecured Notes due 2024 and 2025, interest rate of 6.625% and 5.750%, respectively 2,474.0 2,473.0 NAI Notes due 2017 to 2031, interest rate range of 6.47% to 8.7% 1,560.9 1,552.2 Safeway Notes due 2017 to 2031, interest rate range of 3.95% to 7.45% 1,367.4 1,368.4 Other Notes Payable, unsecured 112.2 114.9 Mortgage Notes Payable, secured 22.1 22.4 Total debt 11,141.7 11,383.9 Less current maturities (191.9 ) (203.8 ) Long-term portion $ 10,949.8 $ 11,180.1 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
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 expense (in millions): 16 weeks ended Pension Other post-retirement benefits June 17, June 18, June 17, June 18, Estimated return on plan assets $ (36.8 ) $ (34.8 ) $ — $ — Service cost 15.3 16.2 0.3 — Interest cost 27.1 24.3 0.3 0.2 Amortization of prior service cost 0.1 — 1.1 — Amortization of unrecognized gain/loss 0.1 — — — Collington acquisition — 78.9 — — Net expense $ 5.8 $ 84.6 $ 1.7 $ 0.2 |
Related Parties and Other Rel19
Related Parties and Other Relationships (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Activities | Related party activities with SUPERVALU INC. ("SuperValu") that are included in the Condensed Consolidated Statements of Operations and Comprehensive Loss consisted of the following (in millions): 16 weeks ended June 17, June 18, Supply agreements included in Cost of sales $ 508.6 $ 531.6 Selling and administrative expenses 43.0 51.6 Total $ 551.6 $ 583.2 |
Other Comprehensive Income or20
Other Comprehensive Income or Loss (Tables) | 4 Months Ended |
Jun. 17, 2017 | |
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 17, 2017 Total Pension and Post-retirement benefit plans Interest rate swaps Foreign currency translation adjustments Other Beginning AOCI balance $ (12.8 ) $ 79.7 $ (28.1 ) $ (66.1 ) $ 1.7 Other comprehensive income (loss) before reclassifications 29.0 2.2 (11.9 ) 38.3 0.4 Amounts reclassified from accumulated other comprehensive income 14.3 1.1 13.2 — — Tax (expense) benefit (15.4 ) (0.5 ) 0.3 (15.2 ) — Current-period other comprehensive income, net 27.9 2.8 1.6 23.1 0.4 Ending AOCI balance $ 15.1 $ 82.5 $ (26.5 ) $ (43.0 ) $ 2.1 16 weeks ended June 18, 2016 Total Pension and Post-retirement benefit plans Interest rate swaps Foreign currency translation adjustments Other Beginning AOCI balance $ (112.7 ) $ (2.3 ) $ (67.5 ) $ (45.6 ) $ 2.7 Other comprehensive (loss) income before reclassifications (45.5 ) (15.5 ) (21.8 ) (9.0 ) 0.8 Amounts reclassified from accumulated other comprehensive income 15.7 — 15.7 — — Tax benefit (expense) 8.0 1.7 2.8 3.8 (0.3 ) Current-period other comprehensive (loss) income, net (21.8 ) (13.8 ) (3.3 ) (5.2 ) 0.5 Ending AOCI balance $ (134.5 ) $ (16.1 ) $ (70.8 ) $ (50.8 ) $ 3.2 |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | May 31, 2017USD ($) | Jun. 17, 2017USD ($)divisionstore_formatsegment | Jun. 18, 2016USD ($) | Feb. 25, 2017USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Restricted cash | $ 29 | $ 9.9 | ||
Inventory expense | 15.7 | $ 13.5 | ||
Business Acquisition [Line Items] | ||||
Net cash paid for acquisitions | 34.5 | 146.6 | ||
Income tax expenses | $ 0.4 | $ 24.1 | ||
Number of reportable segments | segment | 1 | |||
Number of divisions | division | 13 | |||
Number of store format | store_format | 1 | |||
MedCart | ||||
Business Acquisition [Line Items] | ||||
Net cash paid for acquisitions | $ 34.5 | |||
Goodwill expected to be deductible for tax purposes | 11.6 | |||
Earn-out | MedCart | ||||
Business Acquisition [Line Items] | ||||
Potential additional consideration related to earn-out agreement | $ 17.2 |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies - Sales Revenue by Similar Products (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
Concentration Risk [Line Items] | ||
Net sales and other revenue | $ 18,460 | $ 18,391.7 |
Sales Revenue, Product Line | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of total net sales and other revenue | 100.00% | 100.00% |
Net sales and other revenue | $ 18,460 | $ 18,391.7 |
Non-Perishables | Sales Revenue, Product Line | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of total net sales and other revenue | 44.40% | 45.40% |
Net sales and other revenue | $ 8,193.3 | $ 8,348.5 |
Perishables | Sales Revenue, Product Line | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of total net sales and other revenue | 41.00% | 40.30% |
Net sales and other revenue | $ 7,563.6 | $ 7,407.5 |
Pharmacy | Sales Revenue, Product Line | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of total net sales and other revenue | 8.30% | 8.50% |
Net sales and other revenue | $ 1,534.4 | $ 1,566.7 |
Fuel | Sales Revenue, Product Line | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of total net sales and other revenue | 5.10% | 4.40% |
Net sales and other revenue | $ 944 | $ 812.7 |
Other | Sales Revenue, Product Line | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of total net sales and other revenue | 1.20% | 1.40% |
Net sales and other revenue | $ 224.7 | $ 256.3 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Millions | Jun. 17, 2017 | Feb. 25, 2017 |
Assets: | ||
Short-term investments | $ 22.8 | $ 21.6 |
Non-current investments | 96.9 | 97.5 |
Total | 571.7 | 715.1 |
Liabilities: | ||
Derivative contracts | 96.5 | 103.7 |
Contingent consideration | 305.6 | 281 |
Total | 402.1 | 384.7 |
Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Short-term investments | 20.2 | 19.4 |
Non-current investments | 44.6 | 45.6 |
Total | 516.8 | 661 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Significant observable inputs (Level 2) | ||
Assets: | ||
Short-term investments | 2.6 | 2.2 |
Non-current investments | 52.3 | 51.9 |
Total | 54.9 | 54.1 |
Liabilities: | ||
Derivative contracts | 96.5 | 103.7 |
Contingent consideration | 0 | 0 |
Total | 96.5 | 103.7 |
Significant unobservable inputs (Level 3) | ||
Assets: | ||
Short-term investments | 0 | 0 |
Non-current investments | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Contingent consideration | 305.6 | 281 |
Total | 305.6 | 281 |
Money market | ||
Assets: | ||
Money market | 452 | 596 |
Money market | Quoted prices in active markets for identical assets (Level 1) | ||
Assets: | ||
Money market | 452 | 596 |
Money market | Significant observable inputs (Level 2) | ||
Assets: | ||
Money market | 0 | 0 |
Money market | Significant unobservable inputs (Level 3) | ||
Assets: | ||
Money market | $ 0 | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Liabilities (Details) - Contingent consideration $ in Millions | 4 Months Ended |
Jun. 17, 2017USD ($) | |
A reconciliation of the beginning and ending balances of Level 3 liabilities | |
Beginning balance | $ 281 |
Change in fair value | 29.1 |
Payments | (4.5) |
Ending balance | $ 305.6 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Jun. 17, 2017 | Feb. 25, 2017 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt amount | $ 11,399 | $ 11,882.8 |
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt amount | $ 11,544.1 | $ 11,812.1 |
Derivative Financial Instrume26
Derivative Financial Instruments - Narrative (Details) - Interest rate swaps - USD ($) $ in Millions | Jun. 22, 2016 | Jun. 17, 2017 | Feb. 25, 2017 | Jun. 21, 2016 |
Derivative [Line Items] | ||||
Aggregate notional amounts of interest swaps | $ 3,968.6 | $ 3,968.6 | ||
LIBOR | ||||
Derivative [Line Items] | ||||
Basis spread on variable rate | 0.75% | 1.00% | ||
Not designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Losses recognized and deferred in OCI related to redesignation | $ 23.9 | |||
Cash flow hedging | Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Aggregate notional amounts of interest swaps | 3,910.6 | 3,910.6 | ||
Other Current Liabilities | Cash flow hedging | Designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Fair value of interest rate swaps | $ 92.2 | $ 99.2 |
Derivative Financial Instrume27
Derivative Financial Instruments - Schedule of Cash Flow Hedges (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
Interest rate swaps | Designated as hedging instrument | Cash flow hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of income (loss) recognized from derivatives | $ 1.6 | $ (3.3) |
Derivative Financial Instrume28
Derivative Financial Instruments - Schedule of Derivative Instrument Not Designated as Hedging (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
Not designated as hedging instrument | Undesignated and ineffective portion of interest rate swaps | Other expense (income) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized from derivatives | $ (0.3) | $ 0 |
Long-term Debt and Capitalize29
Long-term Debt and Capitalized Lease Obligations - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Jun. 17, 2017 | Feb. 25, 2017 |
Debt Instrument [Line Items] | ||
Unamortized debt discounts | $ 294.9 | $ 310 |
Deferred financing costs | 107.5 | 118.2 |
Total debt | 11,141.7 | 11,383.9 |
Less current maturities | (191.9) | (203.8) |
Long-term portion | 10,949.8 | 11,180.1 |
Secured debt | Albertsons Term Loans due 2021 to 2023, interest rate range of 3.8% to 4.2% | ||
Debt Instrument [Line Items] | ||
Total debt | 5,605.1 | 5,853 |
Senior notes | Albertsons Senior Unsecured Notes due 2024 and 2025, interest rate of 6.625% and 5.750%, respectively | ||
Debt Instrument [Line Items] | ||
Total debt | $ 2,474 | 2,473 |
Senior notes | Albertsons Senior Unsecured Notes due 2024, interest rate of 6.625% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.625% | |
Senior notes | Albertsons Senior Unsecured Notes due 2025, interest rate 5.750% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.75% | |
Notes payable | NAI Notes due 2017 to 2031, interest rate range of 6.47% to 8.7% | ||
Debt Instrument [Line Items] | ||
Total debt | $ 1,560.9 | 1,552.2 |
Notes payable | Safeway Notes due 2017 to 2031, interest rate range of 3.95% to 7.45% | ||
Debt Instrument [Line Items] | ||
Total debt | 1,367.4 | 1,368.4 |
Other notes payable | Other Notes Payable, unsecured | ||
Debt Instrument [Line Items] | ||
Total debt | 112.2 | 114.9 |
Mortgage notes payable | Mortgage Notes Payable, secured | ||
Debt Instrument [Line Items] | ||
Total debt | $ 22.1 | $ 22.4 |
Minimum | Albertsons Term Loans due 2021 to 2023, interest rate range of 3.8% to 4.2% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.80% | |
Minimum | Notes payable | NAI Notes due 2017 to 2031, interest rate range of 6.47% to 8.7% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.47% | |
Minimum | Notes payable | Safeway Notes due 2017 to 2031, interest rate range of 3.95% to 7.45% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.95% | |
Maximum | Albertsons Term Loans due 2021 to 2023, interest rate range of 3.8% to 4.2% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.20% | |
Maximum | Notes payable | NAI Notes due 2017 to 2031, interest rate range of 6.47% to 8.7% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.70% | |
Maximum | Notes payable | Safeway Notes due 2017 to 2031, interest rate range of 3.95% to 7.45% | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.45% |
Long-term Debt and Capitalize30
Long-term Debt and Capitalized Lease Obligations - Narrative (Details) | Jun. 27, 2017USD ($)tranche | Jun. 16, 2017USD ($) | Jun. 17, 2017USD ($) | Feb. 25, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Outstanding balance on letters of credit | $ 244,600,000 | $ 237,600,000 | ||
Capitalized lease obligations | 916,400,000 | 954,000,000 | ||
Current maturities of capitalized lease obligations | 112,000,000 | 114,700,000 | ||
Long-term maturities of capitalized lease obligations | 804,400,000 | 839,300,000 | ||
LOC Sub-facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance on letters of credit | 621,300,000 | 622,300,000 | ||
Line of credit | Asset-Based Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Outstanding balance on line of credit | $ 0 | $ 0 | ||
Secured debt | Term Loans | ||||
Debt Instrument [Line Items] | ||||
Amount of debt extinguished | $ 250,000,000 | |||
Amount of deferred financing costs and original issue discounts write off | $ 7,600,000 | |||
Subsequent event | Secured debt | June 2017 Term Loans | ||||
Debt Instrument [Line Items] | ||||
Number of term loan tranches in debt instrument amendment | tranche | 3 | |||
Subsequent event | Secured debt | New Term B-4 Loan Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 3,013,600,000 | |||
Subsequent event | Secured debt | New Term B-4 Loan Due 2021 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Floor percentage on variable rate | 0.75% | |||
Basis spread on variable rate | 2.75% | |||
Subsequent event | Secured debt | New Term B-5 Loan Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 1,139,300,000 | |||
Subsequent event | Secured debt | New Term B-5 Loan Due 2022 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Floor percentage on variable rate | 0.75% | |||
Basis spread on variable rate | 3.00% | |||
Subsequent event | Secured debt | New Term B-6 Loan Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 1,596,000,000 | |||
Subsequent event | Secured debt | New Term B-6 Loan Due 2023 | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Floor percentage on variable rate | 0.75% | |||
Basis spread on variable rate | 3.00% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 4 Months Ended | ||
Jun. 17, 2017 | Jun. 18, 2016 | May 15, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution made to defined benefit plan | $ 2.1 | $ 5.2 | |
Expected future employer contributions for remainder of the fiscal year | 19.8 | ||
Defined contribution plan costs | $ 13.6 | 12.8 | |
Collington | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of equity interest acquired | 100.00% | ||
Pension expense from acquisition | 78.9 | ||
Other post-retirement benefits | Collington | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service costs recorded relate to Collington transaction | $ 15.5 |
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. 17, 2017 | Jun. 18, 2016 | |
Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Estimated return on plan assets | $ (36.8) | $ (34.8) |
Service cost | 15.3 | 16.2 |
Interest cost | 27.1 | 24.3 |
Amortization of prior service cost | 0.1 | 0 |
Amortization of unrecognized gain/loss | 0.1 | 0 |
Collington acquisition | 0 | 78.9 |
Net expense | 5.8 | 84.6 |
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 | 0.3 | 0 |
Interest cost | 0.3 | 0.2 |
Amortization of prior service cost | 1.1 | 0 |
Amortization of unrecognized gain/loss | 0 | 0 |
Collington acquisition | 0 | 0 |
Net expense | $ 1.7 | $ 0.2 |
Related Parties and Other Rel33
Related Parties and Other Relationships - Schedule of Related Party Activities (Details) - Affiliated entity - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
Related Party Transaction [Line Items] | ||
Supply agreements included in Cost of sales | $ 508.6 | $ 531.6 |
Selling and administrative expenses | 43 | 51.6 |
Total | $ 551.6 | $ 583.2 |
Related Parties and Other Rel34
Related Parties and Other Relationships - Narrative (Details) - Equity-based incentive plans - Affiliated entity - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 09, 2017 | Jun. 17, 2017 | Jun. 18, 2016 |
Related Party Transaction [Line Items] | ||||
Equity-based compensation expense | $ 8.8 | $ 15.8 | ||
Income tax benefit from compensation expense | 1.8 | $ 3.3 | ||
Compensation cost not yet recognized | $ 56.8 | |||
Period for recognition of unrecognized compensation cost | 1 year 335 days | |||
Forecast | ||||
Related Party Transaction [Line Items] | ||||
Equity-based compensation expense | $ 2 | |||
AB Acquisition | Subsequent event | ||||
Related Party Transaction [Line Items] | ||||
Cash distribution | $ 250 |
Commitments and Contingencies35
Commitments and Contingencies and Off Balance Sheet Arrangements - Guarantees (Details) - USD ($) $ in Millions | Jun. 17, 2017 | Feb. 25, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding balance on letters of credit | $ 244.6 | $ 237.6 |
Commitments and Contingencies36
Commitments and Contingencies and Off Balance Sheet Arrangements - Legal Contingencies (Details) $ in Millions | Jul. 18, 2017USD ($)license | Dec. 09, 2016USD ($) | Aug. 25, 2016USD ($) | Jun. 07, 2016employee | Apr. 06, 2016USD ($) | Nov. 30, 2015USD ($) | Aug. 31, 2015USD ($) | Jan. 03, 2015subpoena | Jun. 17, 2017lawsuit | Oct. 20, 2015USD ($) | Oct. 06, 2015incidentstate |
DEA | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of subpoenas received | subpoena | 2 | ||||||||||
Number of former employee with potential diversion of controlled | employee | 1 | ||||||||||
Settled titigation | MasterCard litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement payment | $ 6 | ||||||||||
Pending litigation | Mertz v. SuperValu Inc and Rocke V. SuperValu Inc. | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of class action complaints file against the company | lawsuit | 2 | ||||||||||
Pending litigation | Safeway Inc | Safeway's 401(k) Plan | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of class action complaints file against the company | lawsuit | 2 | ||||||||||
Threatened litigation | AB Acquisition | Security breach | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of states requesting information concerning data breach incidents | state | 14 | ||||||||||
Number of data breach incidents | incident | 2 | ||||||||||
Judicial ruling | Safeway Inc | Rodman V. Safeway Inc. | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Amount damages awarded to plaintiff | $ 1 | $ 41.9 | $ 31 | ||||||||
Amount awarded to plaintiff in damages | 31 | ||||||||||
Amount awarded to plaintiff in prejudgment interest | $ 10.9 | ||||||||||
Corrected amount damages awarded to plaintiff | $ 23.2 | ||||||||||
Damages sought in a lawsuit | $ 2 | ||||||||||
Financial standby letter of credit | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimate of possible loss | $ 15 | ||||||||||
Subsequent event | Settled titigation | DEA | Controlled substance diversion | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement payment | $ 3 | ||||||||||
Corrective Action Plan period | 3 years | ||||||||||
Subsequent event | Belmont, CA | Settled titigation | DEA | Controlled substance diversion | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of controlled substances license surrendered | license | 1 | ||||||||||
Subsequent event | Bend, WA | Settled titigation | DEA | Controlled substance diversion | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Number of controlled substances license suspended | license | 1 | ||||||||||
License suspension period, including deferred period | 6 months | ||||||||||
License suspension deferred period | 2 months | ||||||||||
License suspension period | 4 months |
Other Comprehensive Income or37
Other Comprehensive Income or Loss - Changes in the AOCI Balance (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 17, 2017 | Jun. 18, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning AOCI balance | $ 1,371.2 | |
Other comprehensive income (loss) before reclassifications | 29 | $ (45.5) |
Amounts reclassified from accumulated other comprehensive income | 14.3 | 15.7 |
Tax (expense) benefit | (15.4) | 8 |
Current-period other comprehensive (loss) income, net | 27.9 | (21.8) |
Ending AOCI balance | 1,185.9 | |
Total AOCI | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning AOCI balance | (12.8) | (112.7) |
Ending AOCI balance | 15.1 | (134.5) |
Pension and Post-retirement benefit plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning AOCI balance | 79.7 | (2.3) |
Other comprehensive income (loss) before reclassifications | 2.2 | (15.5) |
Amounts reclassified from accumulated other comprehensive income | 1.1 | 0 |
Tax (expense) benefit | (0.5) | 1.7 |
Current-period other comprehensive (loss) income, net | 2.8 | (13.8) |
Ending AOCI balance | 82.5 | (16.1) |
Interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning AOCI balance | (28.1) | (67.5) |
Other comprehensive income (loss) before reclassifications | (11.9) | (21.8) |
Amounts reclassified from accumulated other comprehensive income | 13.2 | 15.7 |
Tax (expense) benefit | 0.3 | 2.8 |
Current-period other comprehensive (loss) income, net | 1.6 | (3.3) |
Ending AOCI balance | (26.5) | (70.8) |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning AOCI balance | (66.1) | (45.6) |
Other comprehensive income (loss) before reclassifications | 38.3 | (9) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Tax (expense) benefit | (15.2) | 3.8 |
Current-period other comprehensive (loss) income, net | 23.1 | (5.2) |
Ending AOCI balance | (43) | (50.8) |
Other | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning AOCI balance | 1.7 | 2.7 |
Other comprehensive income (loss) before reclassifications | 0.4 | 0.8 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Tax (expense) benefit | 0 | (0.3) |
Current-period other comprehensive (loss) income, net | 0.4 | 0.5 |
Ending AOCI balance | $ 2.1 | $ 3.2 |