Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Apr. 23, 2015 | Sep. 05, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Feb-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SVU | ||
Entity Registrant Name | SUPERVALU INC | ||
Entity Central Index Key | 95521 | ||
Current Fiscal Year End Date | -26 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 261,788,560 | ||
Entity Public Float | $1,955,019,829 |
CONSOLIDATED_SEGMENT_FINANCIAL
CONSOLIDATED SEGMENT FINANCIAL INFORMATION (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Net sales | |||
Net sales | $17,820 | $17,153 | $17,136 |
Net sales, % | 100.00% | 100.00% | 100.00% |
Operating earnings (loss) | |||
Operating earnings (loss) | 424 | 423 | -150 |
Total operating earnings (loss)% of total net sales | 2.40% | 2.50% | -0.90% |
Interest expense, net | 243 | 407 | 269 |
Equity in earnings of unconsolidated affiliates | -4 | -2 | -3 |
Earnings (loss) from continuing operations before income taxes | 185 | 18 | -416 |
Income tax provision (benefit) | 58 | 5 | -163 |
Net earnings (loss) from continuing operations attributable to SUPERVALU INC. | 127 | 13 | -253 |
Income (loss) from discontinued operations, net of tax | 72 | 176 | -1,203 |
Net earnings (loss) including noncontrolling interests | 199 | 189 | -1,456 |
Less net earnings attributable to noncontrolling interests | -7 | -7 | -10 |
Net earnings (loss) attributable to SUPERVALU INC. | 192 | 182 | -1,466 |
Depreciation and amortization | |||
Depreciation and amortization | 285 | 302 | 365 |
Capital expenditures | |||
Capital expenditures | 240 | 113 | 241 |
Identifiable assets | |||
Identifiable assets | 4,485 | 4,374 | 11,034 |
Independent Business | |||
Net sales | |||
Net sales | 8,134 | 8,036 | 8,166 |
Net sales, % | 45.60% | 46.90% | 47.70% |
Operating earnings (loss) | |||
Operating earnings (loss) | 243 | 235 | 199 |
% of sales | 3.00% | 2.90% | 2.40% |
Depreciation and amortization | |||
Depreciation and amortization | 48 | 51 | 64 |
Capital expenditures | |||
Capital expenditures | 70 | 24 | 33 |
Identifiable assets | |||
Identifiable assets | 2,022 | 2,007 | 1,857 |
Save-A-Lot | |||
Net sales | |||
Net sales | 4,613 | 4,228 | 4,195 |
Net sales, % | 25.90% | 24.60% | 24.50% |
Operating earnings (loss) | |||
Operating earnings (loss) | 153 | 167 | 143 |
% of sales | 3.30% | 3.90% | 3.40% |
Depreciation and amortization | |||
Depreciation and amortization | 65 | 64 | 68 |
Capital expenditures | |||
Capital expenditures | 97 | 42 | 101 |
Identifiable assets | |||
Identifiable assets | 1,029 | 925 | 936 |
Retail Food | |||
Net sales | |||
Net sales | 4,879 | 4,649 | 4,733 |
Net sales, % | 27.40% | 27.10% | 27.60% |
Operating earnings (loss) | |||
Operating earnings (loss) | 122 | 77 | -153 |
% of sales | 2.50% | 1.70% | -3.20% |
Depreciation and amortization | |||
Depreciation and amortization | 172 | 187 | 233 |
Capital expenditures | |||
Capital expenditures | 73 | 47 | 107 |
Identifiable assets | |||
Identifiable assets | 1,406 | 1,415 | 1,695 |
Corporate | |||
Net sales | |||
Net sales | 194 | 240 | 42 |
Net sales, % | 1.10% | 1.40% | 0.20% |
Operating earnings (loss) | |||
Operating earnings (loss) | -94 | -56 | -339 |
Identifiable assets | |||
Identifiable assets | 28 | 27 | 75 |
Discontinued Operations | |||
Identifiable assets | |||
Identifiable assets | $0 | $0 | $6,471 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Income Statement [Abstract] | |||
Net sales | $17,820 | $17,153 | $17,136 |
Cost of sales | 15,242 | 14,623 | 14,803 |
Gross profit | 2,578 | 2,530 | 2,333 |
Selling and administrative expenses | 2,154 | 2,107 | 2,477 |
Goodwill and intangible asset impairment charge | 0 | 0 | 6 |
Operating earnings (loss) | 424 | 423 | -150 |
Interest | |||
Interest expense | 244 | 407 | 272 |
Interest (income) | -1 | 0 | -3 |
Interest expense, net | 243 | 407 | 269 |
Equity in earnings of unconsolidated affiliates | -4 | -2 | -3 |
Earnings (loss) from continuing operations before income taxes | 185 | 18 | -416 |
Income tax provision (benefit) | 58 | 5 | -163 |
Net earnings (loss) from continuing operations | 127 | 13 | -253 |
Income (loss) from discontinued operations, net of tax | 72 | 176 | -1,203 |
Net earnings (loss) including noncontrolling interests | 199 | 189 | -1,456 |
Less net earnings attributable to noncontrolling interests | -7 | -7 | -10 |
Net earnings (loss) attributable to SUPERVALU INC. | $192 | $182 | ($1,466) |
Basic net earnings (loss) per common share: | |||
Basic net earnings (loss) per share from continuing operations (usd per share) | $0.46 | $0.02 | ($1.24) |
Basic net earnings (loss) per share from discontinued operations (usd per share) | $0.28 | $0.69 | ($5.67) |
Basic net earnings (loss) per share (usd per share) | $0.74 | $0.71 | ($6.91) |
Diluted net earnings (loss) per common share: | |||
Diluted net earnings (loss) per share from continuing operations (usd per share) | $0.45 | $0.02 | ($1.24) |
Diluted net earnings (loss) per share from discontinued operations (usd per share) | $0.27 | $0.68 | ($5.67) |
Diluted net earnings (loss) per share (usd per share) | $0.73 | $0.70 | ($6.91) |
Weighted average number of shares outstanding: | |||
Basic (shares) | 260 | 255 | 212 |
Diluted (shares) | 264 | 258 | 212 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net earnings (loss) including noncontrolling interests | $199 | $189 | ($1,456) |
Other comprehensive (loss) income: | |||
Recognition of pension and other postretirement benefits (loss) income, net of tax benefit (expense) of $27, $(123) and $(22), respectively | -116 | 257 | 45 |
Comprehensive income (loss) including noncontrolling interests | 83 | 446 | -1,411 |
Less comprehensive income attributable to noncontrolling interests | -7 | -7 | -10 |
Comprehensive income (loss) attributable to SUPERVALU INC. | $76 | $439 | ($1,421) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2014 | Feb. 23, 2013 | Feb. 25, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income (loss), tax | $27 | ($123) | ($22) |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $114 | $83 |
Receivables, net | 482 | 493 |
Inventories, net | 984 | 861 |
Other current assets | 120 | 106 |
Total current assets | 1,700 | 1,543 |
Property, plant and equipment, net | 1,470 | 1,497 |
Goodwill | 865 | 847 |
Intangible assets, net | 48 | 43 |
Deferred tax assets | 265 | 287 |
Other assets | 137 | 157 |
Total assets | 4,485 | 4,374 |
Current liabilities | ||
Accounts payable | 1,121 | 1,043 |
Accrued vacation, compensation and benefits | 204 | 190 |
Current maturities of long-term debt and capital lease obligations | 35 | 45 |
Other current liabilities | 173 | 213 |
Total current liabilities | 1,533 | 1,491 |
Long-term debt | 2,480 | 2,486 |
Long-term capital lease obligations | 213 | 246 |
Pension and other postretirement benefit obligations | 602 | 536 |
Long-term tax liabilities | 119 | 140 |
Other long-term liabilities | 174 | 205 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Common stock, $0.01 par value: 400 shares authorized; 262 and 260 shares issued, respectively | 3 | 3 |
Capital in excess of par value | 2,810 | 2,862 |
Treasury stock, at cost, 2 and 4 shares, respectively | -33 | -101 |
Accumulated other comprehensive loss | -423 | -307 |
Accumulated deficit | -3,003 | -3,195 |
Total SUPERVALU INC. stockholders’ deficit | -646 | -738 |
Noncontrolling interests | 10 | 8 |
Total stockholders’ deficit | -636 | -730 |
Total liabilities and stockholders’ deficit | $4,485 | $4,374 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 262,000,000 | 260,000,000 |
Treasury stock, shares | 2,000,000 | 4,000,000 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (USD $) | Total | SUPERVALU INC. Stockholders’ Equity (Deficit) | Common Stock | Capital in Excess of Par Value | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling interests |
In Millions, unless otherwise specified | ||||||||
Balances at Feb. 25, 2012 | $31 | $21 | $230 | $2,855 | ($515) | ($657) | ($1,892) | $10 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) earnings | -1,456 | -1,466 | -1,466 | 10 | ||||
Other comprehensive loss, net of tax (benefit) of $22, $123 and ($27) for 2013, 2014 and 2015 respectively | 45 | 45 | 45 | |||||
Cash dividends declared on common stock $0.0875 per share for 2013 | -19 | -19 | -19 | |||||
Stock-based compensation | 14 | 14 | -27 | 41 | ||||
Change in par value of common stock | -228 | 228 | ||||||
Distributions to noncontrolling interests | -10 | -10 | ||||||
Tax impact on stock-based awards and other | -10 | -10 | -10 | 0 | ||||
Balances at Feb. 23, 2013 | -1,405 | -1,415 | 2 | 3,046 | -474 | -612 | -3,377 | 10 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) earnings | 189 | 182 | 182 | 7 | ||||
Other comprehensive loss, net of tax (benefit) of $22, $123 and ($27) for 2013, 2014 and 2015 respectively | 257 | 257 | 257 | |||||
Divestiture of New Albertsons, Inc.’s pension accumulated comprehensive loss, net of tax of $31 | 48 | 48 | 48 | |||||
Common stock issued and sold in connection with New Albertsons, Inc. divesture | 170 | 170 | 1 | 12 | 157 | |||
Sales of common stock under option plans | 7 | 7 | -134 | 141 | ||||
Stock-based compensation | 25 | 25 | -54 | 79 | ||||
Distributions to noncontrolling interests | -9 | -9 | ||||||
Tax impact on stock-based awards and other | -12 | -12 | -8 | -4 | ||||
Balances at Feb. 22, 2014 | -730 | -738 | 3 | 2,862 | -101 | -307 | -3,195 | 8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) earnings | 199 | 192 | 192 | 7 | ||||
Other comprehensive loss, net of tax (benefit) of $22, $123 and ($27) for 2013, 2014 and 2015 respectively | -116 | -116 | -116 | |||||
Sales of common stock under option plans | 7 | 7 | -62 | 69 | ||||
Stock-based compensation | 22 | 22 | 22 | 0 | ||||
Distributions to noncontrolling interests | -8 | -8 | ||||||
Contributions from noncontrolling interests | 3 | 3 | ||||||
Tax impact on stock-based awards and other | -13 | -13 | -12 | -1 | ||||
Balances at Feb. 28, 2015 | ($636) | ($646) | $3 | $2,810 | ($33) | ($423) | ($3,003) | $10 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 22, 2014 | Feb. 23, 2013 | Feb. 28, 2015 |
Other comprehensive income (loss), tax | ($27) | $123 | |
Accumulated Other Comprehensive Loss | |||
Other comprehensive income (loss), tax | 123 | 22 | -27 |
Divestiture of New Albertsons, Inc.'s pension accumulated comprehensive loss | $31 | ||
Accumulated Deficit | |||
Cash dividends declared on common stock | $0.09 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Cash flows from operating activities | |||
Net earnings (loss) including noncontrolling interests | $199 | $189 | ($1,456) |
Income (loss) from discontinued operations, net of tax | 72 | 176 | -1,203 |
Net earnings (loss) from continuing operations | 127 | 13 | -253 |
Adjustments to reconcile Net earnings (loss) from continuing operations to Net cash provided by operating activities - continuing operations: | |||
Goodwill and intangible asset impairment charge | 0 | 0 | 6 |
Asset impairment and other charges | 45 | 194 | 283 |
Net gain on sale of assets and exits of surplus leases | -14 | -17 | -6 |
Depreciation and amortization | 285 | 302 | 365 |
LIFO charge (credit) | 8 | -9 | 4 |
Deferred income taxes | 4 | -39 | -50 |
Stock-based compensation | 23 | 22 | 13 |
Net pension and other postretirement benefits cost | 96 | 79 | 102 |
Contributions to pension and other postretirement benefit plans | -169 | -124 | -98 |
Other adjustments | 30 | 34 | 26 |
Changes in operating assets and liabilities, net of effects from business combinations: | |||
Receivables | 9 | -54 | 30 |
Inventories | -124 | 2 | 51 |
Accounts payable and accrued liabilities | 75 | -127 | -69 |
Income taxes | -15 | -79 | 75 |
Other changes in operating assets and liabilities | -47 | -68 | -52 |
Net cash provided by operating activities—continuing operations | 333 | 129 | 427 |
Net cash provided by (used in) operating activities—discontinued operations | 75 | -101 | 481 |
Net cash provided by operating activities | 408 | 28 | 908 |
Cash flows from investing activities | |||
Proceeds from sale of assets | 7 | 14 | 38 |
Purchases of property, plant and equipment | -239 | -111 | -228 |
Payments for business acquisition | -55 | 0 | 0 |
Other | 2 | 11 | 1 |
Net cash used in investing activities—continuing operations | -285 | -86 | -189 |
Net cash provided by (used in) investing activities—discontinued operations | 0 | 135 | -175 |
Net cash (used in) provided by investing activities | -285 | 49 | -364 |
Cash flows from financing activities | |||
Proceeds from issuance of debt | 350 | 2,098 | 1,713 |
Proceeds from the sale of common stock | 7 | 177 | 0 |
Payments of debt and capital lease obligations | -400 | -2,221 | -2,099 |
Payments for debt financing costs | -42 | -151 | -66 |
Distributions to noncontrolling interests | -8 | -9 | -10 |
Dividends paid | 0 | 0 | -37 |
Other | 1 | -1 | -7 |
Net cash used in financing activities—continuing operations | -92 | -107 | -506 |
Net cash used in financing activities—discontinued operations | 0 | -36 | -46 |
Net cash used in financing activities | -92 | -143 | -552 |
Net increase (decrease) in cash and cash equivalents | 31 | -66 | -8 |
Cash and cash equivalents at beginning of year | 83 | 149 | 157 |
Cash and cash equivalents at end of year | 114 | 83 | 149 |
Less cash and cash equivalents of discontinued operations at end of year | 0 | 0 | -77 |
Cash and cash equivalents of continuing operations at end of year | 114 | 83 | 72 |
The Company’s non-cash activities were as follows: | |||
Capital lease asset additions | 1 | 2 | 13 |
Purchases of property, plant and equipment included in Accounts payable | 21 | 19 | 10 |
Interest and income taxes paid: | |||
Interest paid, net of amounts capitalized | 180 | 227 | 232 |
Income taxes (refunded) paid, net | ($7) | $118 | $31 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Business Description and Principles of Consolidation | |||||||||||
SUPERVALU INC. and its subsidiaries (“SUPERVALU” or the “Company”) operates primarily in the United States grocery channel. SUPERVALU provides supply chain services, primarily wholesale distribution, operates hard discount retail stores and licenses stores to independent operators under the Save-A-Lot banner, and operates five competitive, regionally-based traditional format grocery banners under the Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh and Hornbacher’s banners. The Consolidated Financial Statements include the accounts of the Company and all its wholly and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||
During fiscal 2013, the Company entered into a stock purchase agreement (the “Stock Purchase Agreement”) to sell the Company’s New Albertson’s, Inc. subsidiary (“New Albertsons” or “NAI”), including the Acme, Albertsons, Jewel-Osco, Shaw’s and Star Market retail banners and the associated Osco and Sav-on in-store pharmacies (the “NAI Banner Sale”) to AB Acquisition LLC (“AB Acquisition”). The NAI Banner Sale was completed effective March 21, 2013, during the Company’s first quarter of fiscal 2014. The NAI operations disposed of under the NAI Banner Sale are reported as discontinued operations in the Consolidated Statements of Operations for all periods presented. Unless otherwise indicated, references to the Consolidated Statements of Operations and the Consolidated Balance Sheets in the Notes to the Consolidated Financial Statements exclude all amounts related to discontinued operations. See Note 16—Discontinued Operations for additional information regarding these discontinued operations. | ||||||||||||
Fiscal Year | ||||||||||||
The Company’s fiscal year ends on the last Saturday in February. During fiscal 2015, the Company’s first quarter consists of 16 weeks, the second and third quarters each consist of 12 weeks, the fourth quarter consists of 13 weeks and the fiscal year ended February 28, 2015 consists of 53 weeks. For fiscal 2014 and 2013, the Company’s first quarters consist of 16 weeks, the second, third and fourth quarters each consist of 12 weeks and the fiscal years ended February 22, 2014 and February 23, 2013 each consist of 52 weeks. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could differ from those estimates. | ||||||||||||
Revenue Recognition | ||||||||||||
Revenues from product sales are recognized upon delivery for the Independent Business segment, at the point of sale for Save-A-Lot’s retail operations, upon delivery for Save-A-Lot’s independent licensees, and at the point of sale for the Retail Food segment. Typically, invoicing, shipping, delivery and customer receipt of Independent Business product occur on the same business day. Revenues from services rendered are recognized immediately after such services have been provided. Discounts and allowances provided to customers by the Company at the time of sale, including those provided in connection with loyalty cards, are recognized as a reduction in Net sales as the products are sold to customers. Sales tax is excluded from Net sales. | ||||||||||||
Revenues and costs from third-party logistics operations and professional services are recorded gross when the Company is the primary obligor in a transaction, is subject to inventory or credit risk, has latitude in establishing price and selecting suppliers, or has several, but not all, of these indicators. If the Company is not the primary obligor and amounts earned have little or no inventory or credit risk, revenue is recorded net as management fees when earned. | ||||||||||||
Cost of Sales | ||||||||||||
Cost of sales in the Consolidated Statements of Operations includes cost of inventory sold during the period, including purchasing, receiving, warehousing and distribution costs, and shipping and handling fees. | ||||||||||||
Save-A-Lot and Retail Food advertising expenses are a component of Cost of sales and are expensed as incurred. Save-A-Lot and Retail Food advertising expenses, net of cooperative advertising reimbursements, were $69, $63 and $86 for fiscal 2015, 2014 and 2013, respectively. | ||||||||||||
The Company receives allowances and credits from vendors for volume incentives, promotional allowances and, to a lesser extent, new product introductions, which are typically based on contractual arrangements covering a period of one year or less. The Company recognizes vendor funds for merchandising and buying activities as a reduction of Cost of sales when the related products are sold. Vendor funds that have been earned as a result of completing the required performance under the terms of the underlying agreements but for which the product has not yet been sold are recognized as reductions of inventory. When payments or rebates can be reasonably estimated and it is probable that the specified target will be met, the payment or rebate is accrued. However, when attaining the milestone is not probable, the payment or rebate is recognized only when and if the milestone is achieved. Any upfront payments received for multi-period contracts are generally deferred and amortized on a straight-line basis over the life of the contracts. | ||||||||||||
Selling and Administrative Expenses | ||||||||||||
Selling and administrative expenses consist primarily of store and corporate employee-related costs, such as salaries and wages, incentive compensation, health and welfare and workers' compensation, as well as net periodic pension expense, occupancy costs, including rent, utilities and operating costs of retail stores, depreciation and amortization, impairment charges on property, plant and equipment and other administrative costs. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents includes amounts due from credit card sales transactions that are settled early in the following period. The Company’s banking arrangements allow the Company to fund outstanding checks when presented to the financial institution for payment. The Company funds all intraday bank balance overdrafts during the same business day. Checks outstanding in excess of bank balances create book overdrafts, which are recorded in Accounts payable in the Consolidated Balance Sheets and are reflected as an operating activity in the Consolidated Statements of Cash Flows. As of February 28, 2015 and February 22, 2014, the Company had net book overdrafts of $145 and $134, respectively. | ||||||||||||
Allowances for Losses on Receivables | ||||||||||||
Management makes estimates of the uncollectibility of its accounts and notes receivable portfolios. In determining the adequacy of the allowances, management analyzes the value of the collateral, customer financial statements, historical collection experience, aging of receivables and other economic and industry factors. It is possible that the accuracy of the estimation process could be materially impacted by different judgments, estimations and assumptions based on the information considered and result in a further deterioration of accounts and notes receivable. The allowance for losses on receivables was $18 and $19 at February 28, 2015 and February 22, 2014, respectively. Bad debt expense was $6, $16 and $11 in fiscal 2015, 2014 and 2013, respectively. | ||||||||||||
Inventories, Net | ||||||||||||
Inventories are valued at the lower of cost or market. Substantially all of the Company’s inventory consists of finished goods. | ||||||||||||
The Company uses the weighted average cost method, the retail inventory method (“RIM”) or replacement cost method to value discrete inventory items at lower of cost or market under the first-in, first-out (“FIFO”) method before application of any last-in, first-out (“LIFO”) reserve. As of February 28, 2015 and February 22, 2014, approximately 55 percent and 57 percent, respectively, of the Company’s inventories were valued under the LIFO method. | ||||||||||||
As of February 28, 2015 and February 22, 2014, approximately 5 percent of the Company’s inventories were valued under the replacement cost method before application of any LIFO reserve. The weighted average cost and RIM methods of inventory valuation together comprised approximately 50 percent and 52 percent of inventory as of February 28, 2015 and February 22, 2014, respectively, before application of any LIFO reserve. | ||||||||||||
Under the replacement cost method applied on a LIFO basis, the most recent purchase cost is used to calculate the current cost of inventory before application of any LIFO reserve. The replacement cost approach results in inventories being valued at the lower of cost or market because of the high inventory turnover and the resulting low inventory days supply on hand combined with infrequent vendor price changes for these items of inventory. | ||||||||||||
The replacement cost approach under the FIFO method is predominantly utilized in determining the value of high turnover perishable items, including produce, deli, bakery, meat and floral. | ||||||||||||
As of February 28, 2015 and February 22, 2014, approximately 26 percent and 25 percent, respectively, of the Company’s inventories were valued using the cost, weighted average cost and RIM methods under the FIFO method of inventory accounting. The remaining 19 percent and 18 percent of the Company’s inventories as of February 28, 2015 and February 22, 2014, respectively, were valued using the replacement cost approach under the FIFO method of inventory accounting. The replacement cost approach applied under the FIFO method results in inventories recorded at the lower of cost or market because of the very high inventory turnover and the resulting low inventory days supply for these items of inventory. | ||||||||||||
During fiscal 2014 and 2013, inventory quantities in certain LIFO layers were reduced. These reductions resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the cost of fiscal 2014 and 2013 purchases. As a result, Cost of sales decreased by $14 and $6 in fiscal 2014 and 2013, respectively. If the FIFO method had been used to determine cost of inventories for which the LIFO method is used, the Company’s inventories would have been higher by approximately $211 and $202 as of February 28, 2015 and February 22, 2014, respectively. | ||||||||||||
The Company evaluates inventory shortages throughout each fiscal year based on actual physical counts in its facilities. Allowances for inventory shortages are recorded based on the results of these counts to provide for estimated shortages as of the end of each fiscal year. | ||||||||||||
Property, Plant and Equipment, Net | ||||||||||||
Property, plant and equipment are carried at cost. Depreciation is based on the estimated useful lives of the assets using the straight-line method. Estimated useful lives generally are ten to 40 years for buildings and major improvements, three to ten years for equipment, and the shorter of the term of the lease or expected life for leasehold improvements and capitalized lease assets. Interest on property under construction of $1, $1 and $4 was capitalized in fiscal 2015, 2014 and 2013, respectively. | ||||||||||||
Business Dispositions | ||||||||||||
The Company reviews the presentation of planned business dispositions in the Consolidated Financial Statements based on the available information and events that have occurred. | ||||||||||||
The review consists of evaluating whether the business meets the definition as a component for which the operations and cash flows are clearly distinguishable from the other components of the business, and if so, whether it is anticipated that after the disposal the cash flows of the component would be eliminated from continuing operations and whether the Company will have any significant continuing involvement with the business. In addition, the Company evaluates whether the business has met the criteria to be classified as a business held for sale. In order for a planned disposition to be classified as a business held for sale, the established criteria must be met as of the reporting date, including an active program to market the business and the expected disposition of the business within one year. | ||||||||||||
Planned business dispositions are presented as discontinued operations when all the criteria described above are met. Operations of the business components meeting the discontinued operations requirements are presented within Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations, and assets and liabilities of the business component planned to be disposed of are presented as separate lines within the Consolidated Balance Sheets. See Note 16—Discontinued Operations for additional information. | ||||||||||||
Businesses held for sale are reviewed for recoverability of the carrying value of the business upon meeting the classification requirements. Evaluating the recoverability of the assets of a business classified as held for sale follows a defined order in which property and intangible assets subject to amortization are considered only after the recoverability of goodwill, indefinite lived intangible assets and other assets are assessed. After the valuation process is completed, the held for sale business is reported at the lower of its carrying value or fair value less cost to sell, and no additional depreciation or amortization expense is recognized. The carrying value of a held for sale business includes the portion of the accumulated other comprehensive loss associated with pension and postretirement benefit obligations of the operations of the business. | ||||||||||||
There are inherent judgments and estimates used in determining impairment charges. The sale of a business can result in the recognition of a gain or loss that differs from that anticipated prior to closing. | ||||||||||||
Goodwill | ||||||||||||
The Company reviews goodwill for impairment during the fourth quarter of each year, and also if events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The reviews consist of comparing estimated fair value to the carrying value at the reporting unit level. The Company’s reporting units are the operating segments of the business which consist of Independent Business, Save-A-Lot and Retail Food. Fair values are determined by using both the market approach, applying a multiple of earnings and revenue based on guidelines for publicly traded companies, and the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflect a weighted average cost of capital based on the Company’s industry, capital structure and risk premiums in each reporting unit, including those reflected in the current market capitalization. If management identifies the potential for impairment of goodwill, the implied fair value of the goodwill is calculated as the difference between the fair value of the reporting unit and the fair value of the underlying assets and liabilities, excluding goodwill. An impairment charge is recorded for any excess of the carrying value over the implied fair value. | ||||||||||||
The Company reviews the composition of its reporting units on an annual basis and on an interim basis if events or circumstances indicate that the composition of the Company’s reporting units may have changed. There were no changes in the Company’s reporting units as a result of the fiscal 2015 and 2014 reviews. | ||||||||||||
Intangible Assets, Net | ||||||||||||
The Company reviews intangible assets with indefinite useful lives, which primarily consist of trademarks and tradenames, for impairment during the fourth quarter of each year, and also if events or changes in circumstances indicate that the asset might be impaired. The reviews consist of comparing estimated fair value to the carrying value. Fair values of the Company’s trademarks and tradenames are determined primarily by discounting an assumed royalty value applied to management’s estimate of projected future revenues associated with the tradename using management’s expectations of the current and future operating environment. The royalty cash flows are discounted using rates based on the weighted average cost of capital discussed above and the specific risk profile of the tradenames relative to the Company’s other assets. These estimates are impacted by variable factors, including inflation, the general health of the economy and market competition. The calculation of the impairment charge contains significant judgments and estimates, including the weighted average cost of capital and the specified risk profile of the tradename and future revenue and profitability. | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
The Company monitors the recoverability of its long-lived assets such as buildings and equipment, and evaluates their carrying value for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Events that may trigger such an evaluation include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or the Company’s plans for store closures. When such events or changes in circumstances occur, a recoverability test is performed by comparing projected undiscounted future cash flows to the carrying value of the group of assets being tested. | ||||||||||||
If impairment is identified for long-lived assets to be held and used, the fair value is compared to the carrying value of the group of assets and an impairment charge is recorded for the excess of the carrying value over the fair value. For long-lived assets that are classified as assets held for sale, the Company recognizes impairment charges for the excess of the carrying value plus estimated costs of disposal over the estimated fair value. Fair value is based on current market values or discounted future cash flows using Level 3 inputs. The Company estimates fair value based on the Company’s experience and knowledge of the market in which the property is located and, when necessary, utilizes local real estate brokers. The Company’s estimate of undiscounted cash flows attributable to the asset groups includes only future cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset group. Long-lived asset impairment charges are a component of Selling and administrative expenses in the Consolidated Statements of Operations. | ||||||||||||
The Company groups long-lived assets with other assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets, which historically has predominately been at the geographic market level for retail stores, but individual store asset groupings have been assessed in certain circumstances. Independent Business’s long-lived assets are reviewed for impairment at the distribution center level. Save-A-Lot’s long-lived assets are reviewed for impairment at the geographic market level for 13 geographic market groupings of individual corporate-owned stores and related dedicated distribution centers, individual corporate store level for 28 individual corporate stores, which were part of previous asset groups for which management determined that the cash flows in those geographic market areas were no longer interdependent and at the distribution center level for two distribution centers without corporate stores. Retail Food’s long-lived assets are reviewed for impairment at the geographic market group level for five geographic market groupings of individual retail stores. | ||||||||||||
During fiscal 2013, the Company determined it would be more appropriate to evaluate long-lived assets for impairment at the store level for two geographic markets within the Save-A-Lot segment. These markets continued to show higher indicators of economic decline that led to revised operating market strategies, such as the identification of a significant number of stores for closure within one geographic market asset group and a determination that Save-A-Lot was no longer expanding or maintaining another geographic market group. As such, these geographic market groups were not generating joint cash flows from the operation of the asset group, resulting in the disaggregation of the asset groups. These asset group disaggregations triggered a store-level impairment review within these previous geographic market asset groups, which resulted in a non-cash impairment charge of approximately $8 in fiscal 2013. | ||||||||||||
Due to the ongoing business transformation and highly competitive environment, the Company will continue to evaluate its long-lived asset policy and current asset groups to determine if additional modifications to the policy are necessary. Future changes to the Company’s assessment of its long-lived asset policy and changes in circumstances, operating results or other events may result in additional asset impairment testing and charges. | ||||||||||||
During fiscal 2013, the Company announced the closure of approximately 22 non-strategic stores within the Save-A-Lot segment, including the exit of a geographic market, resulting in an impairment of $16 related to these stores’ long-lived assets. See Note 4—Reserves for Closed Properties and Property, Plant and Equipment-related Impairment Charges for additional information. | ||||||||||||
Reserves for Closed Properties | ||||||||||||
The Company maintains reserves for costs associated with closures of retail stores, distribution centers and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using a discount rate to calculate the present value of the remaining noncancellable lease payments after the closing date, reduced by estimated subtenant rentals that could be reasonably obtained for the property. Lease reserve impairment charges are recorded as a component of Selling and administrative expenses in the Consolidated Statements of Operations. | ||||||||||||
The closed property lease liabilities usually are paid over the remaining lease terms, which generally range from one to 15 years. Adjustments to closed property reserves primarily relate to changes in subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. | ||||||||||||
The calculation of the closed property charges requires significant judgments and estimates, including estimated subtenant rentals, discount rates and future cash flows based on the Company’s experience and knowledge of the market in which the closed property is located, previous efforts to dispose of similar assets and the assessment of existing market conditions. Reserves for closed properties are included in Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. | ||||||||||||
Deferred Rent | ||||||||||||
The Company recognizes rent holidays, including the time period during which the Company has access to the property prior to the opening of the site, as well as construction allowances and escalating rent provisions, on a straight-line basis over the term of the operating lease. The deferred rents are included in Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. | ||||||||||||
Self-Insurance Liabilities | ||||||||||||
The Company uses a combination of insurance and self-insurance for workers’ compensation, automobile and general liability costs. It is the Company’s policy to record its insurance liabilities based on management’s estimate of the ultimate cost of reported claims and claims incurred but not yet reported and related expenses, discounted at a risk-free interest rate. The present value of such claims was calculated using discount rates ranging from 0.3 percent to 5.1 percent for fiscal 2015, 0.3 percent to 5.1 percent for fiscal 2014 and 0.4 percent to 5.1 percent for fiscal 2013. | ||||||||||||
Changes in the Company’s insurance liabilities consisted of the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 103 | $ | 97 | $ | 93 | ||||||
Expense | 31 | 34 | 29 | |||||||||
Claim payments | (32 | ) | (33 | ) | (27 | ) | ||||||
Reclassification of insurance recoveries to receivables | (9 | ) | 5 | 2 | ||||||||
Ending balance | 93 | 103 | 97 | |||||||||
Less current portion | (30 | ) | (33 | ) | (27 | ) | ||||||
Long-term portion | $ | 63 | $ | 70 | $ | 70 | ||||||
The current portion of reserves for self-insurance is included in Other current liabilities and the long-term portion is included in Other long-term liabilities in the Consolidated Balance Sheets. The insurance liabilities as of the end of the fiscal year are net of discounts of $6 and $7 as of February 28, 2015 and February 22, 2014, respectively. The related insurance receivables were $9 and $18 as of February 28, 2015 and February 22, 2014, respectively. The current portion of the insurance receivables is included in Receivables, net and the long-term portion is included in Other assets in the Consolidated Balance Sheets. | ||||||||||||
Benefit Plans | ||||||||||||
The Company recognizes the funded status of its Company-sponsored defined benefit plans in its Consolidated Balance Sheets and gains or losses and prior service costs or credits not yet recognized as a component of Other comprehensive income (loss), net of tax, in the Consolidated Statements of Stockholders’ (Deficit) Equity. The Company sponsors pension and other postretirement plans in various forms covering substantially all employees who meet eligibility requirements. The determination of the Company’s obligation and related expense for Company-sponsored pension and other postretirement benefits is dependent, in part, on management’s selection of certain actuarial assumptions in calculating these amounts. These assumptions include, among other things, the discount rate, the expected long-term rate of return on plan assets and the rates of increase in compensation and healthcare costs. These assumptions are disclosed in Note 11—Benefit Plans. Actual results that differ from the assumptions are accumulated and amortized over future periods in accordance with generally accepted accounting standards. | ||||||||||||
The Company contributes to various multiemployer pension plans under collective bargaining agreements, primarily defined benefit pension plans. Pension expense for these plans is recognized as contributions are funded. See Note 11—Benefit Plans for additional information on the Company’s participation in multiemployer plans. | ||||||||||||
The Company also contributes to several employee 401(k) retirement savings plans. | ||||||||||||
Derivatives | ||||||||||||
The Company uses derivatives only to manage well-defined risks. The Company does not use financial instruments or derivatives for any trading or other speculative purposes. | ||||||||||||
Interest rate swap contracts are entered into to mitigate the Company's exposure to changes in market interest rates. These contracts are reviewed for hedging effectiveness at hedge inception and on an ongoing basis. If these contracts are designated as a cash flow hedge and are determined to be highly effective, changes in the fair value of these instruments are recognized in Other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss). Hedging ineffectiveness, if any, is recognized in earnings in the Consolidated Statements of Operations. | ||||||||||||
The Company’s limited involvement with diesel fuel derivatives is primarily to manage its exposure to changes in energy prices utilized in the shipping process. These contracts are economic hedges of price risk and are not designated or accounted for as hedging instruments for accounting purposes. Changes in the fair value of these instruments are recognized in earnings in the Consolidated Statements of Operations. | ||||||||||||
In addition, Company enters into energy commitments for certain electricity and natural gas purchases that it expects to utilize in the normal course of business. Changes in these purchase obligations are not recognized in earnings until the underlying commitment is utilized in the normal course of business. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company uses the straight-line method to recognize stock-based compensation expense over the requisite service period related to each award. Stock-based compensation expense is measured by the fair value of the award on the date of grant, net of the estimated forfeiture rate. | ||||||||||||
The fair value of stock options is estimated as of the date of grant using the Black-Scholes option pricing model using Level 3 inputs. The estimation of the fair value of stock options incorporates certain assumptions, such as the risk-free interest rate and expected volatility, dividend yield and life of options. Restricted stock awards and units are recorded as stock-based compensation expense over the requisite service period based on the market value of the Company's common stock on the date of grant. | ||||||||||||
Income Taxes | ||||||||||||
Deferred income taxes represent future net tax effects resulting from temporary differences between the financial statement amounts and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to be settled or realized. See Note 9—Income Taxes for the types of differences that give rise to significant portions of deferred income tax assets and liabilities. Deferred income tax assets are reported as a current or noncurrent asset or liability based on the classification of the related asset or liability or according to the expected date of reversal. | ||||||||||||
The Company is currently in various stages of audits, appeals or other methods of review with authorities from various taxing jurisdictions. The Company establishes liabilities for unrecognized tax benefits in a variety of taxing jurisdictions when, despite management’s belief that the Company’s tax return positions are supportable, certain positions may be challenged and may need to be revised. The Company adjusts these liabilities in light of changing facts and circumstances, such as the progress of a tax audit. The Company also provides interest on these liabilities at the appropriate statutory interest rate, and accrues penalties as applicable. The Company recognizes interest related to unrecognized tax benefits in Interest expense and penalties in Selling and administrative expenses in the Consolidated Statements of Operations. | ||||||||||||
Common and Treasury Stock | ||||||||||||
Concurrent with the execution of the Stock Purchase Agreement, the Company entered into a Tender Offer Agreement (the “Tender Offer Agreement”) with Symphony Investors LLC, which is owned by a Cerberus Capital Management, L.P. (“Cerberus”)-led investor consortium (“Symphony Investors”), and Cerberus, pursuant to which, upon the terms and subject to the conditions of the Tender Offer Agreement, and contingent upon the NAI Banner Sale, Symphony Investors tendered for up to 30 percent of the issued and outstanding common stock of the Company at a purchase price of $4.00 per share in cash (the “Tender Offer”). Approximately 12 shares were validly tendered, representing approximately 5.5 percent of the issued and outstanding shares at the time of the Tender Offer expiration on March 20, 2013. All shares that were validly tendered and not properly withdrawn were accepted as tendered in accordance with the terms of Tender Offer. | ||||||||||||
In addition, pursuant to the terms of the Tender Offer Agreement, on March 21, 2013, the Company issued approximately 42 additional shares of common stock (representing approximately 19.9 percent of the outstanding shares prior to the share issuance) to Symphony Investors at the Tender Offer price per share of $4.00, resulting in $170 in cash proceeds to the Company, which brought Symphony Investors' ownership percentage to 21.2 percent after the share issuance. The Tender Offer Agreement provides that until the second anniversary of the closing of the Tender Offer, which was March 21, 2015, transfers of shares acquired by Symphony Investors in the Tender Offer and from the Company pursuant to the Tender Offer Agreement were generally restricted, with more limited restrictions thereafter. The Company has agreed to customary obligations to register the shares acquired by Symphony Investors with the Securities and Exchange Commission if requested by Symphony Investors. | ||||||||||||
Revisions | ||||||||||||
In the first quarter of fiscal 2015, the Company revised the presentation of noncontrolling interests as reflected in the Consolidated Financial Statements. Noncontrolling interests primarily include minority ownership interests in entities operating certain stores under the Cub Foods banner within Retail Food. Pursuant to the terms of the ownership agreements, the Company is required to distribute cash flows generated by these entities on a proportionate basis based on ownership interest. Net earnings attributable to noncontrolling interests were previously presented within Selling and administrative expenses in the Consolidated Statements of Operations and have been revised to a separate presentation in Net earnings attributable to noncontrolling interests. Noncontrolling interests were previously presented in Other long-term liabilities in the Consolidated Balance Sheets and have been revised as a component of Stockholders’ deficit. Distributions to noncontrolling interests were previously presented as a reduction of cash flows from operating activities in the Consolidated Statements of Cash Flows and have been revised as Distributions to noncontrolling interests within financing activities. | ||||||||||||
In addition, the Company revised the presentation of equity in earnings of unconsolidated affiliates. Equity in earnings of unconsolidated affiliates was previously presented in Net sales and has been revised to a separate presentation in Equity in earnings of unconsolidated affiliates. The revisions did not impact Net earnings (loss) attributable to SUPERVALU INC. or net earnings per share for any period. Management has determined that the presentation changes are not material to any period reported. Prior period amounts have been revised to conform to the current period presentation. | ||||||||||||
Recently Adopted Accounting Standards | ||||||||||||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under accounting standard update (“ASU”) 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward (“NOL”) or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This ASU requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The Company adopted ASU 2013-11 in the first quarter of fiscal 2015, which resulted in a reclassification of $1 of unrecognized tax benefits and other credits against deferred tax assets. | ||||||||||||
In April 2014, the FASB issued authoritative guidance under ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this ASU, disposals classified as discontinued operations must represent a strategic shift that is expected to have a major effect on operations and financial results. The ASU no longer precludes presentation as discontinued operations if there is significant continuing involvement after disposal. Certain disclosures for disposals of individually significant components of an entity that do not qualify for discontinued operations presentation are also required. This ASU is effective prospectively for disposals that have not been reported in previously issued financial statements. The Company adopted ASU 2014-08 in fiscal 2015 and the adoption did not have an impact on the Company’s Consolidated Financial Statements. | ||||||||||||
Recently Issued Accounting Standards | ||||||||||||
In May 2014, the FASB issued authoritative guidance under ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model and requires entities to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU will be adopted by the Company during the first quarter of fiscal 2018. Adoption is allowed by either the full retrospective or modified retrospective approach. The Company believes it will apply the modified retrospective approach and is currently evaluating the potential impact of adoption on its Consolidated Financial Statements. |
BUSNIESS_ACQUISITIONS
BUSNIESS ACQUISITIONS | 12 Months Ended |
Feb. 28, 2015 | |
Business Combinations [Abstract] | |
BUSNIESS ACQUISITIONS | Rainbow Stores |
During the second quarter of fiscal 2015, the Company completed the purchase of seven Rainbow Foods grocery stores, 11 Rainbow Foods pharmacy locations and one Rainbow Foods liquor store from RBF, LLC and Roundy’s Supermarkets, Inc. (“Roundy’s”). Five of the grocery stores, each of the pharmacies and the liquor store are operating under the Cub Foods banner, and two of the grocery stores are operating as Rainbow Foods grocery stores. In addition, several independent retail customers and franchisees, including Diamond Lake 1994 L.L.C., in which the Company has a minority ownership interest, also consummated their purchase of certain Rainbow Foods grocery stores. The three grocery stores acquired by Diamond Lake 1994 L.L.C are operating under the Cub Foods banner. | |
Total consideration for the stores and pharmacies acquired by the Company was $34 plus cash payments of $5 for inventories. The Company assumed certain off-balance sheet obligations, including operating leases and multiemployer pension obligations with respect to the acquired stores. In addition, the Company also acquired Roundy’s RAINBOW™ trademark. | |
The fair value of assets acquired was $39, including property, plant and equipment of $15, goodwill of $14, inventories of $5, identifiable finite-lived intangible assets of $4 and other current assets of $1. Recognized goodwill represents future economic benefits expected to arise from the Company’s presence in the retail market. These Consolidated Financial Statements reflect the final purchase accounting allocations. Pro forma information for this acquisition is not presented as the results of operations of the acquired businesses are not material to the Company’s Consolidated Financial Statements. | |
Save-A-Lot Licensee Stores | |
During the fiscal year ended February 28, 2015, the Company paid $19 to acquire equipment and leasehold improvements, identifiable finite-lived intangibles and inventories associated with 38 licensed Save-A-Lot stores from multiple licensee operators. These Consolidated Financial Statements reflect the final purchase accounting allocations. Pro forma information for these acquisitions is not presented as the results of operations of the acquired businesses are not material to the Company’s Consolidated Financial Statements. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | Changes in the Company’s Goodwill and Intangible assets, net consisted of the following: | |||||||||||||||||||||||||||||||||||
February 23, | Additions | Impairments | Other net | February 22, | Additions | Impairments | Other net | February 28, | ||||||||||||||||||||||||||||
2013 | adjustments | 2014 | adjustments | 2015 | ||||||||||||||||||||||||||||||||
Goodwill: | ||||||||||||||||||||||||||||||||||||
Independent Business | $ | 710 | $ | — | $ | — | $ | — | $ | 710 | $ | — | $ | — | $ | — | $ | 710 | ||||||||||||||||||
Save-A-Lot | 137 | — | — | — | 137 | 4 | — | — | 141 | |||||||||||||||||||||||||||
Retail Food | — | — | — | — | — | 14 | — | — | 14 | |||||||||||||||||||||||||||
Total goodwill | $ | 847 | $ | — | $ | — | $ | — | $ | 847 | $ | 18 | $ | — | $ | — | $ | 865 | ||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||||||||||||
Favorable operating leases, prescription files, customer lists and other (accumulated amortization of $86 and $78 as of February 28, 2015 and February 22, 2014, respectively) | $ | 106 | $ | — | $ | — | $ | 5 | $ | 111 | $ | 13 | $ | — | $ | — | $ | 124 | ||||||||||||||||||
Tradenames and trademarks—indefinite useful lives | 9 | — | — | — | 9 | — | — | — | 9 | |||||||||||||||||||||||||||
Non-compete agreements (accumulated amortization of $2 and $2 as of February 28, 2015 and February 22, 2014, respectively) | 3 | — | — | — | 3 | — | — | — | 3 | |||||||||||||||||||||||||||
Total intangible assets | 118 | — | — | 5 | 123 | 13 | — | — | 136 | |||||||||||||||||||||||||||
Accumulated amortization | (67 | ) | (8 | ) | — | (5 | ) | (80 | ) | (8 | ) | — | — | (88 | ) | |||||||||||||||||||||
Total intangible assets, net | $ | 51 | $ | 43 | $ | 48 | ||||||||||||||||||||||||||||||
The Company applies a fair value based impairment test to the net book value of goodwill and intangible assets with indefinite useful lives on an annual basis and on an interim basis if events or circumstances indicate that an impairment loss may have occurred. | ||||||||||||||||||||||||||||||||||||
The Company conducted an annual impairment test of the net book value of goodwill and intangible assets with indefinite useful lives during the fourth quarter of fiscal 2015, which indicated the fair value of the Independent Business reporting unit exceeded its carrying value by approximately 80 percent, the fair value of each of Save-A-Lot and Retail Food reporting units was in excess of 100 percent of its carrying value and the fair value of intangible assets with indefinite useful lives was in excess of their carrying value. In fiscal 2013, recoverability tests of indefinite-lived tradename intangibles indicated the carrying value of a tradename within the Independent Business segment was not recoverable, which resulted in a pre-tax impairment charge of $6. | ||||||||||||||||||||||||||||||||||||
Annual impairment testing and the related calculation of the impairment charges contains significant judgments and estimates including weighted average cost of capital, future revenue, profitability, cash flows and fair values of assets and liabilities. | ||||||||||||||||||||||||||||||||||||
Amortization expense of intangible assets with definite useful lives of $8 was recorded in each of fiscal 2015, 2014 and 2013. Future amortization expense will average approximately $5 per year for the next five years. |
RESERVES_FOR_CLOSED_PROPERTIES
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES | Reserves for Closed Properties | |||||||||||
Changes in the Company’s reserves for closed properties consisted of the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 47 | $ | 61 | $ | 72 | ||||||
Additions | 4 | 4 | 16 | |||||||||
Payments | (12 | ) | (16 | ) | (22 | ) | ||||||
Adjustments | (5 | ) | (2 | ) | (5 | ) | ||||||
Ending balance | $ | 34 | $ | 47 | $ | 61 | ||||||
In fiscal 2013, due to the announced closure of approximately 22 non-strategic Save-A-Lot stores, impairment charges of $10 were recorded related to these closed stores' operating leases in the Save-A-Lot segment. | ||||||||||||
Property, Plant and Equipment Impairment Charges | ||||||||||||
The following table presents impairment charges related to property, plant and equipment measured at fair value on a non-recurring basis: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Property, plant and equipment: | ||||||||||||
Carrying value | $ | 4 | $ | 45 | $ | 291 | ||||||
Fair value measured using Level 3 inputs | 1 | 21 | 40 | |||||||||
Impairment charge | $ | 3 | $ | 24 | $ | 251 | ||||||
Fiscal 2015 impairment charges are primarily related to the closure of non-strategic Save-A-Lot stores. Fiscal 2014 impairment charges were primarily related to the write-off of certain software tools that would no longer be utilized in operations within Retail Food, and impairments of Independent Business distribution centers and Save-A-Lot stores. Fiscal 2013 impairment charges primarily related to certain capital projects in process, mainly related to software under development and certain other software support tools that the executive management team determined the Company would abandon, all within the Retail Food segment and Corporate, and the announced closure of approximately 22 non-strategic Save-A-Lot stores. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment, net, consisted of the following: | |||||||
2015 | 2014 | |||||||
Land | $ | 104 | $ | 97 | ||||
Buildings | 1,252 | 1,224 | ||||||
Property under construction | 71 | 34 | ||||||
Leasehold improvements | 709 | 693 | ||||||
Equipment | 2,021 | 1,959 | ||||||
Capitalized lease assets | 314 | 315 | ||||||
Total property, plant and equipment | 4,471 | 4,322 | ||||||
Accumulated depreciation | (2,779 | ) | (2,618 | ) | ||||
Accumulated amortization on capitalized lease assets | (222 | ) | (207 | ) | ||||
Total property, plant and equipment, net | $ | 1,470 | $ | 1,497 | ||||
Depreciation expense was $258, $275 and $333 for fiscal 2015, 2014 and 2013, respectively. Amortization expense related to capitalized lease assets was $19, $19 and $23 for fiscal 2015, 2014 and 2013, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |
Feb. 28, 2015 | ||
Fair Value Disclosures [Abstract] | ||
FAIR VALUE MEASUREMENTS | 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. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, 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. | |
Impairment charges recorded during fiscal 2015, 2014 and 2013 related to lease reserves and properties held and used and held for sale, as discussed in Note 4—Reserves for Closed Properties and Property, Plant and Equipment-related Impairment Charges were measured at fair value using Level 3 inputs. Intangible asset impairment charges recorded during fiscal 2013 discussed in Note 3—Goodwill and Intangible Assets were measured at fair value using Level 3 inputs. Discontinued operations property, plant and equipment impairment charges and finalization adjustments recorded in fiscal 2014 and 2013 related to the sale of NAI were recorded in Income from discontinued operations, net of tax, and are discussed in Note 16—Discontinued Operations, and were measured at fair value using Level 3 inputs. | ||
Derivative Financial Instruments | ||
On February 24, 2015, the Company entered into a forward starting interest rate swap agreement effectively converting $300 of variable rate debt under the Company's Secured Term Loan Facility (defined below) to a fixed rate of 5.5075 percent, effective beginning in February 2016 and through the Secured Term Loan Facility's maturity in March 2019. This transaction was entered into to reduce the Company's exposure to changes in market interest rates associated with its variable rate debt. The Company designated this derivative as a cash flow hedge of the variability in expected cash outflows of interest payments. The fair value of the interest rate swap represents a liability of $0 as of February 28, 2015, which was recorded in Other long-term liabilities and measured using Level 2 inputs. The interest rate swap agreement is valued using an income approach interest rate swap valuation model incorporating observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. As of February 28, 2015, a 100 basis point increase or decrease in forward LIBOR interest rates would increase or decrease, respectively, the fair value of the interest rate swap by approximately $7. | ||
The fair value of the Company’s fuel derivatives represented a liability of $1 and $0 as of February 28, 2015 and February 22, 2014, respectively, and fuel derivative gains and losses were also insignificant for fiscal 2015, 2014 and 2013. | ||
Other | ||
For certain of the Company’s financial instruments, including cash and cash equivalents, receivables, accounts payable, accrued salaries and other current assets and liabilities, the fair values approximate carrying values due to their short maturities. | ||
The estimated fair value of notes receivable was greater than the carrying value by $2 as of February 28, 2015 and February 22, 2014. The estimated fair value of notes receivable was calculated using a discounted cash flow approach applying a market rate for similar instruments using Level 3 inputs. | ||
The estimated fair value of the Company’s long-term debt (including current maturities) was greater than the book value by approximately $59 and $83 as of February 28, 2015 and February 22, 2014, respectively. The estimated fair value was based on market quotes, where available, or market values for similar instruments, using Level 2 and 3 inputs. |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
LONG-TERM DEBT | The Company’s long-term debt consisted of the following: | |||||||
February 28, | February 22, | |||||||
2015 | 2014 | |||||||
4.50% Secured Term Loan Facility due March 2019 | $ | 1,469 | $ | 1,474 | ||||
6.75% Senior Notes due June 2021 | 400 | 400 | ||||||
7.75% Senior Notes due November 2022 | 350 | — | ||||||
8.00% Senior Notes due May 2016 | 278 | 628 | ||||||
1.66% to 4.00% Revolving ABL Credit Facility due September 2019 | — | — | ||||||
Other | — | 18 | ||||||
Net discount on debt, using an effective interest rate of 4.63% to 8.56% | (8 | ) | (16 | ) | ||||
Total debt | 2,489 | 2,504 | ||||||
Less current maturities of long-term debt | (9 | ) | (18 | ) | ||||
Long-term debt | $ | 2,480 | $ | 2,486 | ||||
Future maturities of long-term debt, excluding the net discount on debt, as of February 28, 2015 consist of the following: | ||||||||
Fiscal Year | ||||||||
2016 | $ | 10 | ||||||
2017 | 293 | |||||||
2018 | 15 | |||||||
2019 | 15 | |||||||
2020 | 1,414 | |||||||
Thereafter | 750 | |||||||
The Company’s credit facilities and certain long-term debt agreements have restrictive covenants and cross-default provisions, which generally provide, subject to the Company’s right to cure, for the acceleration of payments due in the event of a breach of a covenant or a default in the payment of a specified amount of indebtedness due under certain other debt agreements. The Company was in compliance with all such covenants and provisions for all periods presented. | ||||||||
Senior Secured Credit Agreements | ||||||||
As of February 28, 2015 and February 22, 2014, the Company had outstanding borrowings of $1,469 and $1,474, respectively, under its six-year $1,500 term loan facility (the “Secured Term Loan Facility”), secured by substantially all of the Company’s real estate, equipment and certain other assets, which bears interest at the rate of LIBOR plus 3.50 percent and includes a floor on LIBOR set at 1.00 percent. The Secured Term Loan Facility is guaranteed by the Company’s material subsidiaries (together with the Company, the “Term Loan Parties”). To secure their obligations under the Secured Term Loan Facility, the Company granted a perfected first-priority security interest for the benefit of the facility lenders in the Term Loan Parties’ equity interest in Moran Foods, LLC, the main operating entity of the Company’s Save-A-Lot business, and the Term Loan Parties granted a perfected first priority security interest in substantially all of their intellectual property and a first priority mortgage lien and security interest in certain owned or ground-leased real estate and associated equipment pledged as collateral. As of February 28, 2015 and February 22, 2014, there was $776 and $787, respectively, of owned or ground-leased real estate and associated equipment pledged as collateral, which was included in Property, plant and equipment, net in the Consolidated Balance Sheets. In addition, the obligations of the Term Loan Parties under the Secured Term Loan Facility are secured by second-priority security interests in the collateral securing the Company’s five-year $1,000 asset-based revolving ABL credit facility (the “Revolving ABL Credit Facility”). Including the discount, $9 and $0 of the Secured Term Loan Facility was classified as current as of February 28, 2015 and February 22, 2014 respectively. | ||||||||
The loans under the Secured Term Loan Facility may be voluntarily prepaid in certain minimum principal amounts, subject to the payment of breakage or similar costs. Pursuant to the Secured Term Loan Facility, the Company must, subject to certain customary reinvestment rights, apply 100 percent of Net Cash Proceeds (as defined in the facility) from certain types of asset sales (excluding proceeds of the collateral security of the Revolving ABL Credit Facility and other secured indebtedness) to prepay the loans outstanding under the Secured Term Loan Facility. Beginning with the fiscal year ended February 22, 2014, the Company must prepay loans outstanding under the facility no later than 90 days after the fiscal year end in an aggregate principal amount equal to a percentage (which percentage ranges from 0 to 50 percent depending on the Company’s Total Secured Leverage Ratio (as defined in the facility) as of the last day of such fiscal year) of Excess Cash Flow (as defined in the facility) for the fiscal year then ended minus any voluntary prepayments made during such fiscal year with Internally Generated Cash (as defined in the facility). Based on the Company's Excess Cash Flow for the fiscal year ended February 28, 2015, no prepayment will be required. The potential amount of prepayment from Excess Cash Flow that will be required for fiscal 2016 is not reasonably estimable as of February 28, 2015. | ||||||||
As of February 28, 2015 and February 22, 2014, there were no outstanding borrowings under the Revolving ABL Credit Facility or the Company’s previous revolving credit facility due March 2018, respectively. As of February 28, 2015, letters of credit outstanding under the Revolving ABL Credit Facility were $76 at fees of 1.625 percent, and the unused available credit under this facility was $871 with facility fees of 0.375 percent. As of February 22, 2014, letters of credit outstanding under the Company’s previous revolving credit facility due March 2018 were $101 at fees of 2.125 percent, and the unused available credit under this facility was $786 with facility fees of 0.375 percent. As of February 28, 2015, the Revolving ABL Credit Facility was secured on a first-priority basis by $1,188 of certain inventory assets included in Inventories, net, $220 of certain receivables included in Receivables, net, $28 of certain amounts included in Cash and cash equivalents and all of the Company’s pharmacy scripts included in Intangible assets, net, in the Consolidated Balance Sheets. As of February 22, 2014, the Company’s previous revolving credit facility due March 2018 was secured on a first-priority basis by $1,066 of certain inventory assets included in Inventories, net, $227 of certain receivables included in Receivables, net, $24 of certain amounts included in Cash and cash equivalents and all of the Company’s pharmacy scripts included in Intangible assets, net, in the Consolidated Balance Sheets. | ||||||||
On April 17, 2014, the Company entered into an amendment (the “First ABL Amendment”) to its Revolving ABL Credit Facility that reduced the interest rates to LIBOR plus 1.50 percent to LIBOR plus 2.00 percent or prime plus 0.50 percent to prime plus 1.00 percent, depending on utilization. The First ABL Amendment also eliminated the springing maturity provision that would have accelerated the maturity of the facility to 90 days prior to May 1, 2016 if more than $250 of the Company’s 8.00 percent Senior Notes due May 2016 (the "2016 Notes") remained outstanding as of that date. The springing maturity provision was replaced with a springing reserve provision that calls for a reserve to be placed against availability under the facility in the amount of any outstanding Material Indebtedness (as defined in the facility) that is due within 30 days of the date the reserve is established. The First ABL Amendment also amended the facility to provide that the Company may incur additional term loans under the Secured Term Loan Facility in an aggregate principal amount of up to $500 instead of $250 as was in effect prior to the First ABL Amendment, subject to identifying term loan lenders or other institutional lenders willing to provide the additional loans and satisfying certain terms and conditions. In addition, the First ABL Amendment extended the maturity date of the facility to February 21, 2019 and contains modified covenants to give the Company additional strategic and operational flexibility. | ||||||||
On September 30, 2014, the Company entered into a second amendment (the “Second ABL Amendment”) to its Revolving ABL Credit Facility that extended the maturity date of the facility to September 30, 2019 from its prior maturity date of February 21, 2019. The Second ABL Amendment also added a springing maturity provision that would accelerate the maturity of the facility to 90 days prior to the scheduled maturity date of the Secured Term Loan Facility if there are any obligations outstanding under the Secured Term Loan Facility as of that date. By extending the maturity date of the Revolving ABL Credit Facility to a date at least six months later than the maturity date of the Secured Term Loan Facility, the Company now has greater flexibility to prepay the 2016 Notes with proceeds of the Revolving ABL Credit Facility. | ||||||||
The revolving loans under the Revolving ABL Credit Facility may be voluntarily prepaid in certain minimum principal amounts, in whole or in part, without premium or penalty, subject to breakage or similar costs. The Company and those subsidiaries named as borrowers under the Revolving ABL Credit Facility are required to repay the revolving loans in cash and provide cash collateral under this facility to the extent that the revolving loans and letters of credit exceed the lesser of the borrowing base then in effect or the aggregate amount of the lenders’ commitments under the Revolving ABL Credit Facility. During the fiscal year ended February 28, 2015, the Company borrowed $3,268 and repaid $3,268 under its Revolving ABL Credit Facility and its previous revolving credit facility due March 2018. During the fiscal year ended February 22, 2014, the Company borrowed $3,803 and repaid $4,010 under its previous revolving credit facilities. Certain of the Company’s material subsidiaries are co-borrowers under the Revolving ABL Credit Facility, and this facility is guaranteed by the rest of the Company’s material subsidiaries (the Company and those subsidiaries named as borrowers and guarantors under the Revolving ABL Credit Facility, the “ABL Loan Parties”). To secure their obligations under this facility, the ABL Loan Parties have granted a perfected first-priority security interest for the benefit of the facility lenders in its present and future inventory, credit card, wholesale trade, pharmacy and certain other receivables, prescription files and related assets. In addition, the obligations under the Revolving ABL Credit Facility are secured by second-priority liens on and security interests in the collateral securing the Secured Term Loan Facility, subject to certain limitations to ensure compliance with the Company’s outstanding debt instruments and leases. | ||||||||
Both the Secured Term Loan Facility and the Revolving ABL Credit Facility limit the Company’s ability to make Restricted Payments (as defined in both the Secured Term Loan Facility and the Revolving ABL Credit Facility), which include dividends to stockholders. The Secured Term Loan Facility caps the aggregate amount of Restricted Payments that may be made over the life of the Secured Term Loan Facility. That aggregate cap can fluctuate over time and the cap could be reduced by certain other actions taken by the Company, including certain debt prepayments and Permitted Investments (as defined in the Secured Term Loan Facility). As of February 28, 2015, the aggregate cap on Restricted Payments was approximately $299. The Revolving ABL Credit Facility permits regularly scheduled dividends up to $50 in aggregate per fiscal year as long as no Cash Dominion Event (as defined in the Revolving ABL Credit Facility) exists. The Revolving ABL Credit Facility permits other Restricted Payments as long as the Payment Conditions (as defined in the Revolving ABL Credit Facility) are met. | ||||||||
Debentures | ||||||||
On November 14, 2014, the Company issued $350 of 7.75 percent Senior Notes due November 2022 (the “2022 Notes”) under its shelf registration statement. Financing costs of approximately $4 were paid, capitalized and included in Other assets on the Consolidated Balance Sheets. | ||||||||
Simultaneously with the issuance of the 2022 Notes, the Company delivered a 30 day redemption notice for $350 of 2016 Notes. The net proceeds from the 2022 Notes, together with borrowings under the ABL Credit Facility, were used to fund the redemption of $350 of outstanding 2016 Notes and to pay accrued and unpaid interest on the redeemed 2016 Notes and the applicable redemption premium of approximately $35, which was expensed. In addition, non-cash charges of $5 for the write-off of existing unamortized financing costs and original issue discount on the redeemed 2016 Notes were incurred. | ||||||||
The $400 of 6.75 percent Senior Notes due June 2021, the $350 of 2022 Notes and the remaining $278 of 2016 Notes contain operating covenants, including limitations on liens and on sale and leaseback transactions. The Company was in compliance with all such covenants and provisions for all periods presented. |
LEASES
LEASES | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Leases [Abstract] | ||||||||||||
LEASES | The Company leases most of its retail stores and certain distribution centers, office facilities and equipment from third parties. Many of these leases include renewal options and, to a limited extent, include options to purchase. Future minimum lease payments to be made by the Company for noncancellable operating leases and capital leases as of February 28, 2015 consist of the following: | |||||||||||
Lease Obligations | ||||||||||||
Fiscal Year | Operating Leases | Capital Leases | ||||||||||
2016 | $ | 129 | $ | 45 | ||||||||
2017 | 119 | 43 | ||||||||||
2018 | 99 | 41 | ||||||||||
2019 | 80 | 38 | ||||||||||
2020 | 60 | 35 | ||||||||||
Thereafter | 152 | 130 | ||||||||||
Total future minimum obligations | $ | 639 | 332 | |||||||||
Less interest | (93 | ) | ||||||||||
Present value of net future minimum obligations | 239 | |||||||||||
Less current capital lease obligations | (26 | ) | ||||||||||
Long-term capital lease obligations | $ | 213 | ||||||||||
Total future minimum obligations have not been reduced for future minimum subtenant rentals under certain operating subleases. | ||||||||||||
Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Minimum rent | $ | 148 | $ | 143 | $ | 143 | ||||||
Contingent rent | 6 | 5 | 6 | |||||||||
Rent expense | 154 | 148 | 149 | |||||||||
Less subtenant rentals | (29 | ) | (27 | ) | (29 | ) | ||||||
Total net rent expense | $ | 125 | $ | 121 | $ | 120 | ||||||
The Company leases certain property to third parties under operating, capital and direct financing leases. Under the direct financing leases, the Company leases buildings to independent retail customers with terms ranging from one to five years. | ||||||||||||
Future minimum lease and subtenant rentals to be received under noncancellable operating and deferred financing income leases, under which the Company is the lessor, as of February 28, 2015, consist of the following: | ||||||||||||
Lease Receipts | ||||||||||||
Fiscal Year | Operating Leases | Direct Financing Leases | ||||||||||
2016 | $ | 25 | $ | 1 | ||||||||
2017 | 23 | 1 | ||||||||||
2018 | 18 | 1 | ||||||||||
2019 | 12 | — | ||||||||||
2020 | 7 | — | ||||||||||
Thereafter | 17 | — | ||||||||||
Total minimum lease receipts | $ | 102 | 3 | |||||||||
Less interest | — | |||||||||||
Net investment in direct financing leases | 3 | |||||||||||
Less current portion | (1 | ) | ||||||||||
Long-term portion | $ | 2 | ||||||||||
The carrying value of owned property leased to third parties under operating leases was as follows: | ||||||||||||
2015 | 2014 | |||||||||||
Property, plant and equipment | $ | 4 | $ | 4 | ||||||||
Less accumulated depreciation | (3 | ) | (3 | ) | ||||||||
Property, plant and equipment, net | $ | 1 | $ | 1 | ||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
INCOME TAXES | Income Tax Provision | |||||||||||
The provision (benefit) for income taxes consisted of the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Current | ||||||||||||
Federal | $ | 35 | $ | 30 | $ | (98 | ) | |||||
State | 7 | 5 | (9 | ) | ||||||||
Total current | 42 | 35 | (107 | ) | ||||||||
Deferred | 16 | (30 | ) | (56 | ) | |||||||
Total income tax provision (benefit) | $ | 58 | $ | 5 | $ | (163 | ) | |||||
The difference between the actual tax provision (benefit) and the tax provision computed by applying the statutory federal income tax rate to Earnings (loss) from continuing operations before income taxes is attributable to the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Federal taxes (benefit) based on statutory rate | $ | 62 | $ | 4 | $ | (149 | ) | |||||
State income taxes, net of federal benefit | 12 | — | (13 | ) | ||||||||
Tax contingency | (1 | ) | (1 | ) | 1 | |||||||
Change in valuation allowance | — | (1 | ) | (3 | ) | |||||||
Pension | (8 | ) | — | — | ||||||||
Other | (7 | ) | 3 | 1 | ||||||||
Total income tax provision (benefit) | $ | 58 | $ | 5 | $ | (163 | ) | |||||
Deferred Income Taxes | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. The Company’s deferred tax assets and liabilities consisted of the following: | ||||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Compensation and benefits | $ | 234 | $ | 224 | ||||||||
Self-insurance | 25 | 24 | ||||||||||
Property, plant and equipment and capitalized lease assets | 72 | 132 | ||||||||||
Loss on sale of discontinued operations | 1,387 | 1,339 | ||||||||||
Net operating loss carryforwards | 19 | 23 | ||||||||||
Other | 69 | 80 | ||||||||||
Gross deferred tax assets | 1,806 | 1,822 | ||||||||||
Valuation allowance | (1,404 | ) | (1,356 | ) | ||||||||
Total deferred tax assets | 402 | 466 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment and capitalized lease assets | (88 | ) | (147 | ) | ||||||||
Inventories | (14 | ) | (40 | ) | ||||||||
Intangible assets | (27 | ) | (25 | ) | ||||||||
Other | (23 | ) | (16 | ) | ||||||||
Total deferred tax liabilities | (152 | ) | (228 | ) | ||||||||
Net deferred tax asset | $ | 250 | $ | 238 | ||||||||
Net deferred tax assets are recorded in the Consolidated Balance Sheets as follows: | ||||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets | $ | 265 | $ | 287 | ||||||||
Other current liabilities | (15 | ) | (49 | ) | ||||||||
Net deferred tax asset | $ | 250 | $ | 238 | ||||||||
The Company has valuation allowances to reduce deferred tax assets to the amount that is more-likely-than-not to be realized. The Company currently has state net operating loss (“NOL”) carryforwards of $414 for tax purposes. The NOL carryforwards expire beginning in 2016 and continuing through 2034 and have a $16 valuation allowance. The sale of NAI resulted in an allocation of tax expense between continuing and discontinued operations. Included in discontinued operations is the recognition of the additional tax basis in the shares of NAI offset by a valuation allowance on the capital loss that resulted from the sale of shares. The Company has recorded a valuation allowance against the projected capital loss because there is no clear evidence that the capital loss will be used prior to its expiration in fiscal 2019. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
Changes in the Company’s unrecognized tax benefits consisted of the following: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 76 | $ | 187 | $ | 165 | ||||||
Increase based on tax positions related to the current year | 15 | 15 | 5 | |||||||||
Decrease based on tax positions related to the current year | — | — | (1 | ) | ||||||||
Increase based on tax positions related to prior years | 15 | 8 | 82 | |||||||||
Decrease based on tax positions related to prior years | (4 | ) | (2 | ) | (58 | ) | ||||||
Decrease related to settlements with taxing authorities | (3 | ) | (128 | ) | (3 | ) | ||||||
Decrease due to lapse of statute of limitations | (5 | ) | (4 | ) | (3 | ) | ||||||
Ending balance | $ | 94 | $ | 76 | $ | 187 | ||||||
Included in the balance of unrecognized tax benefits as of February 28, 2015, February 22, 2014 and February 23, 2013 are tax positions of $36 net of tax, $48 net of tax, and $60 net of tax, respectively, which would reduce the Company’s effective tax rate if recognized in future periods. | ||||||||||||
The Company expects to resolve $6, net, of unrecognized tax benefits within the next 12 months, representing several individually insignificant income tax positions. These unrecognized tax benefits represent items in which the Company may not prevail with certain taxing authorities, based on varying interpretations of the applicable tax law. The Company is currently in various stages of audits, appeals or other methods of review with authorities from various taxing jurisdictions. The resolution of these unrecognized tax benefits would occur as a result of potential settlements from these negotiations. Based on the information available as of February 28, 2015, the Company does not anticipate significant additional changes to its unrecognized tax benefits. | ||||||||||||
The Company recognized income related to interest, net of penalties and settlement adjustments, of $7 and $4 in fiscal 2015 and 2014, respectively. No amounts were recognized related to interest and penalties in fiscal 2013. In addition to the liability for unrecognized tax benefits, the Company had a liability of $26 and $31 as of February 28, 2015 and February 22, 2014, respectively, related to accrued interest and penalties for uncertain tax positions recorded in Other current liabilities and Long-term tax liabilities in the Consolidated Balance Sheets. The Company settled various audits during fiscal 2015 and fiscal 2014 resulting in payments of $2 and $14 for interest and penalties in fiscal 2015 and fiscal 2014, respectively. | ||||||||||||
The Company is currently under examination or other methods of review in several tax jurisdictions and remains subject to examination until the statute of limitations expires for the respective taxing jurisdiction or an agreement is reached between the taxing jurisdiction and the Company. As of February 28, 2015, the Company is no longer subject to federal income tax examinations for fiscal years before 2011 and in most states is no longer subject to state income tax examinations for fiscal years before 2006. |
STOCKBASED_AWARDS
STOCK-BASED AWARDS | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
STOCK-BASED AWARDS | As of February 28, 2015, the Company has stock options, restricted stock awards and performance awards (collectively referred to as “stock-based awards”) outstanding under the 2012 Stock Plan and 2007 Stock Plan. The Company’s amended and restated 2012 Stock Plan (the "2012 Stock Plan"), as approved by stockholders in fiscal 2015, is the only plan under which stock-based awards may be granted. The 2012 Stock Plan provides that the Board of Directors or the Leadership Development and Compensation Committee of the Board (the “Compensation Committee”) may determine at the time of grant whether each stock-based award granted will be a non-qualified or incentive stock-based award under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). The terms of each stock-based award will be determined by the Board of Directors or the Compensation Committee. Generally, stock-based awards granted prior to fiscal 2006 have a term of ten years, stock-based awards granted from fiscal 2006 to fiscal 2012 generally have a term of seven years, and starting in fiscal 2013 stock-based awards granted generally have a term of ten years. | ||||||||||||
Stock options are granted to key salaried employees and have been granted to the Company’s non-employee directors to purchase common stock at an exercise price not less than 100 percent of the fair market value of the Company’s common stock on the date of grant. Prior to fiscal 2013, stock options vested over four years and starting in fiscal 2013, stock options vest over three years. Restricted stock awards are also awarded to key salaried employees. The vesting of restricted stock awards is determined at the discretion of the Board of Directors or the Compensation Committee. The restrictions on the restricted stock awards generally lapse between one and five years from the date of grant and the expense is recognized over the lapsing period. Performance awards as part of the long-term incentive program are granted to key salaried employees. | |||||||||||||
As of February 28, 2015, there were 21 shares available for future issuance of stock-based awards under the 2012 Stock Plan. Common stock has been delivered out of treasury stock upon the exercise of stock-based awards. The provisions of future stock-based awards may change at the discretion of the Board of Directors or the Compensation Committee. | |||||||||||||
On March 20, 2013, the Company completed the Tender Offer and issued common stock to Symphony Investors, which the Company’s Board of Directors deemed to be a change-in-control for purposes of the Company’s outstanding stock-based awards, immediately accelerating the vesting of certain stock-based awards. The deemed change-in-control in conjunction with certain other events resulted in the immediate acceleration of certain additional stock-based awards. As a result of this action, the 2013 and 2012 long-term incentive program awards were immediately accelerated for the vast majority of the outstanding awards resulting in the recognition of the remaining unamortized stock-based compensation expense. However, as the exercise price for the vast majority of these awards was greater than the market price of the Company’s common stock at such time, the cash pay-out to management and employees was insignificant. Outstanding options granted prior to May of fiscal 2010 were also immediately accelerated as were options and restricted stock awards granted after May of fiscal 2010 for certain employees meeting qualifying criteria. The Company recognized $9 of accelerated stock-based compensation charges in Selling and administrative expenses in fiscal 2014 as a result of the deemed change-in-control, comprised of $5 from long-term incentive programs, $3 from restricted stock awards and $1 from stock options. | |||||||||||||
Stock Options | |||||||||||||
Stock options granted, exercised and outstanding consisted of the following: | |||||||||||||
Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||
Outstanding, February 25, 2012 | 18,413 | $ | 28.9 | 2.62 | $ | — | |||||||
Granted | 9,370 | 2.54 | |||||||||||
Exercised | (9 | ) | 2.28 | ||||||||||
Canceled and forfeited | (5,528 | ) | 23.32 | ||||||||||
Outstanding, February 23, 2013 | 22,246 | 19.2 | 4.63 | $ | 10,402 | ||||||||
Granted | 10,083 | 6.58 | |||||||||||
Exercised | (3,121 | ) | 2.29 | ||||||||||
Canceled and forfeited | (5,873 | ) | 23.7 | ||||||||||
Outstanding, February 22, 2014 | 23,335 | 14.87 | 5.41 | $ | 15,982 | ||||||||
Granted | 5,022 | 7.54 | |||||||||||
Exercised | (1,944 | ) | 3.71 | ||||||||||
Canceled and forfeited | (5,533 | ) | 30.68 | ||||||||||
Outstanding, February 28, 2015 | 20,880 | $ | 9.98 | 6.55 | $ | 61,073 | |||||||
Vested and expected to vest in the future as of February 28, 2015 | 19,681 | $ | 10.16 | 6.41 | $ | 57,694 | |||||||
Exercisable as of February 28, 2015 | 10,018 | $ | 13.51 | 4.31 | $ | 26,826 | |||||||
In fiscal 2015 and 2014, the Company granted 5 and 9, respectively, of non-qualified stock options to certain employees under the Company’s 2012 Stock Plan with a weighted average grant date fair value of $3.28 and $2.78 per share, respectively. These stock options vest over a period of three years, and were awarded as part of a broad-based employee incentive initiative designed to retain and motivate employees across the Company. | |||||||||||||
In fiscal 2013, the Company’s Board of Directors granted 2 stock options to the Company’s Chief Executive Officer. The stock options have a grant date fair value of $1.40 per share. These options vest over three years. In fiscal 2013, the Company’s Board of Directors granted non-qualified stock options to the Company’s Chief Executive Officer, and the Board of Directors granted non-qualified stock options to certain other employees, under the Company’s 2012 Stock Plan. The Company granted 8 stock options with a weighted average grant date fair value of $0.98 per share as part of a broad-based employee incentive initiative designed to retain and motivate employees across the Company as it pursued its business transformation strategy. These options vest over three years. | |||||||||||||
The Company used the Black Scholes option pricing model to estimate the fair value of the options at grant date based upon the following assumptions: | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Dividend yield | — | % | — | % | 1.0 – 2.1% | ||||||||
Volatility rate | 50.8 – 53.2% | 49.3 – 51.3% | 42.3 – 61.2% | ||||||||||
Risk-free interest rate | 1.2 – 1.6% | 0.6 – 1.0% | 0.4 – 0.6% | ||||||||||
Expected option life | 4.0 – 5.0 years | 4.0 – 6.0 years | 4.5 – 6.0 years | ||||||||||
Restricted Stock | |||||||||||||
Restricted stock awards and restricted stock unit activity consisted of the following: | |||||||||||||
Restricted Stock Units | Restricted Stock Awards | Weighted Average Grant Date Fair Value(1) | |||||||||||
(In thousands) | (In thousands) | ||||||||||||
Outstanding, February 25, 2012 | 151 | 444 | $ | 17.96 | |||||||||
Granted | 894 | 1,482 | 6.05 | ||||||||||
Lapsed | (64 | ) | (220 | ) | 10.03 | ||||||||
Canceled and forfeited | (9 | ) | (263 | ) | 10.19 | ||||||||
Outstanding, February 23, 2013 | 972 | 1,443 | 7.83 | ||||||||||
Granted | 296 | 491 | 6.98 | ||||||||||
Lapsed | (1,268 | ) | (967 | ) | 6.23 | ||||||||
Canceled and forfeited | — | (30 | ) | 6.08 | |||||||||
Outstanding, February 22, 2014 | — | 937 | 9.09 | ||||||||||
Granted | 2,274 | 18 | 7.11 | ||||||||||
Lapsed | (133 | ) | (417 | ) | 6.54 | ||||||||
Canceled and forfeited | (90 | ) | (2 | ) | 6.09 | ||||||||
Outstanding, February 28, 2015 | 2,051 | 536 | $ | 11.02 | |||||||||
(1) Weighted average grant date fair value is only used for restricted stock awards. | |||||||||||||
In fiscal 2015, the Company granted 2 shares of restricted stock units to certain employees under the Company's 2012 Stock Plan. | |||||||||||||
In fiscal 2013, the Company granted restricted stock awards of 1 shares to certain employees under the Company’s fiscal 2012 bonus plan at a fair value of $6.15 per share. The restricted stock awards will vest over a three year period from the date of grant. | |||||||||||||
Stock-Based Compensation Expense | |||||||||||||
The components of pre-tax stock-based compensation expense are included primarily in Selling and administrative expenses in the Consolidated Statements of Operations. The expense recognized and related tax benefits were as follows: | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Stock-based compensation | $ | 23 | $ | 22 | $ | 13 | |||||||
Income tax benefits | (9 | ) | (8 | ) | (5 | ) | |||||||
Stock-based compensation, net of tax | $ | 14 | $ | 14 | $ | 8 | |||||||
The Company realized excess tax shortfalls of $1, $1 and $2 in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||
Unrecognized Stock-Based Compensation Expense | |||||||||||||
As of February 28, 2015, there was $25 of unrecognized compensation expense related to unvested stock-based awards granted under the Company’s stock plans. The expense is expected to be recognized over a weighted average remaining vesting period of approximately two years. | |||||||||||||
Long-Term Incentive Plans | |||||||||||||
In fiscal 2013, the Company granted 5 performance award units to certain employees under the SUPERVALU INC. 2007 Stock Plan as part of the Company’s long-term incentive program (“2013 LTIP”). Payout of the award was based on the increase in share price over the three-year service period ending May 1, 2015, and will be settled in the Company’s stock. The grant date fair value used to determine compensation expense associated with the performance grant was calculated utilizing a Monte Carlo simulation. The grant date fair value of the 2013 LTIP award was $1.38 per award unit. Due to the deemed change in control along with certain other events discussed above, the 2013 and 2012 long-term incentive program awards were immediately accelerated for the vast majority of the outstanding awards in fiscal 2014. The amount of the awards outstanding was insignificant as of February 28, 2015. |
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended | |||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||
BENEFIT PLANS | Substantially all employees of the Company and its subsidiaries are covered by various contributory and non-contributory pension, profit sharing or 401(k) plans. The Company’s primary defined benefit pension plan, the SUPERVALU INC. Retirement Plan (the "SUPERVALU Retirement Plan"), and certain supplemental executive retirement plans were closed to new participants and service crediting ended for all participants as of December 31, 2007. Pay increases were reflected in the amount of benefit earned in these plans until December 31, 2012. Most union employees participate in multiemployer retirement plans under collective bargaining agreements, unless the collective bargaining agreement provides for participation in plans sponsored by the Company. In addition to sponsoring both defined benefit and defined contribution pension plans, the Company provides healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans. The Company also provides certain health and welfare benefits, including short-term and long-term disability benefits, to inactive disabled employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For many retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the remaining cost. | |||||||||||||||||||||||||
Effective February 21, 2014, the Company amended the SUPERVALU Retiree Benefit Plan to modify the Company’s subsidies for all participants (current and former employees) who are not subject to a collective bargaining agreement that specifies a different benefit and who terminate employment on or after January 1, 2016. The result of this amendment was a reduction in the other postretirement benefit obligations of $11 with a corresponding decrease to Accumulated other comprehensive loss, net of tax in fiscal 2014. | ||||||||||||||||||||||||||
The benefit obligation, fair value of plan assets and funded status of the defined benefit pension plans and other postretirement benefit plans consisted of the following: | ||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 2,726 | $ | 2,893 | $ | 81 | $ | 109 | ||||||||||||||||||
Plan amendment | — | — | (5 | ) | (11 | ) | ||||||||||||||||||||
Service cost | — | — | 1 | 2 | ||||||||||||||||||||||
Interest cost | 121 | 121 | 4 | 4 | ||||||||||||||||||||||
Actuarial loss (gain) | 371 | (141 | ) | 5 | (12 | ) | ||||||||||||||||||||
Settlements paid | (272 | ) | — | — | — | |||||||||||||||||||||
Benefits paid | (97 | ) | (147 | ) | (4 | ) | (6 | ) | ||||||||||||||||||
Other | — | — | — | (5 | ) | |||||||||||||||||||||
Benefit obligation at end of year | 2,849 | 2,726 | 82 | 81 | ||||||||||||||||||||||
Changes in Plan Assets | ||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 2,261 | 2,031 | — | — | ||||||||||||||||||||||
Actual return on plan assets | 260 | 259 | — | — | ||||||||||||||||||||||
Employer contributions | 165 | 118 | 4 | 6 | ||||||||||||||||||||||
Plan participants’ contributions | — | — | 3 | 3 | ||||||||||||||||||||||
Settlements paid | (272 | ) | — | — | — | |||||||||||||||||||||
Benefits paid | (97 | ) | (147 | ) | (7 | ) | (9 | ) | ||||||||||||||||||
Other | — | — | 4 | — | ||||||||||||||||||||||
Fair value of plan assets at end of year | 2,317 | 2,261 | 4 | — | ||||||||||||||||||||||
Unfunded status at end of year | $ | (532 | ) | $ | (465 | ) | $ | (78 | ) | $ | (81 | ) | ||||||||||||||
For the defined benefit pension plans, the accumulated benefit obligation is equal to the projected benefit obligation. | ||||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consist of the following: | ||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Accrued vacation, compensation and benefits | $ | (2 | ) | $ | (3 | ) | $ | (6 | ) | $ | (6 | ) | ||||||||||||||
Pension and other postretirement benefit obligations | (530 | ) | (462 | ) | (72 | ) | (75 | ) | ||||||||||||||||||
Total | $ | (532 | ) | $ | (465 | ) | $ | (78 | ) | $ | (81 | ) | ||||||||||||||
Amounts recognized in Accumulated other comprehensive loss for the defined benefit pension and other postretirement benefit plans consist of the following: | ||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Prior service benefit | $ | — | $ | — | $ | 45 | $ | 55 | ||||||||||||||||||
Net actuarial loss | (696 | ) | (567 | ) | (28 | ) | (25 | ) | ||||||||||||||||||
Total recognized in Accumulated other comprehensive loss | $ | (696 | ) | $ | (567 | ) | $ | 17 | $ | 30 | ||||||||||||||||
Total recognized in Accumulated other comprehensive loss, net of tax | $ | (432 | ) | $ | (324 | ) | $ | 9 | $ | 17 | ||||||||||||||||
Net periodic benefit cost (income) and other changes in plan assets and benefit obligations recognized in Other comprehensive (loss) income for defined benefit pension and other postretirement benefit plans consist of the following: | ||||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1 | $ | 2 | $ | 2 | ||||||||||||||
Interest cost | 121 | 121 | 123 | 4 | 4 | 5 | ||||||||||||||||||||
Expected return on plan assets | (149 | ) | (141 | ) | (133 | ) | — | — | — | |||||||||||||||||
Amortization of prior service benefit | — | — | — | (16 | ) | (13 | ) | (12 | ) | |||||||||||||||||
Amortization of net actuarial loss | 68 | 101 | 111 | 3 | 5 | 6 | ||||||||||||||||||||
Settlement | 64 | — | — | — | — | — | ||||||||||||||||||||
Net periodic benefit cost (income) | 104 | 81 | 101 | (8 | ) | (2 | ) | 1 | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income | ||||||||||||||||||||||||||
Prior service benefit | — | — | — | (5 | ) | (11 | ) | — | ||||||||||||||||||
Amortization of prior service benefit | — | — | — | 16 | 12 | 13 | ||||||||||||||||||||
Net actuarial loss (gain) | 195 | (259 | ) | 46 | 6 | (16 | ) | (7 | ) | |||||||||||||||||
Amortization of net actuarial loss | (66 | ) | (101 | ) | (110 | ) | (3 | ) | (5 | ) | (6 | ) | ||||||||||||||
Total expense (benefit) recognized in Other comprehensive (loss) income | 129 | (360 | ) | (64 | ) | 14 | (20 | ) | — | |||||||||||||||||
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive (loss) income | $ | 233 | $ | (279 | ) | $ | 37 | $ | 6 | $ | (22 | ) | $ | 1 | ||||||||||||
The estimated net actuarial loss that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost for the defined benefit pension plans during fiscal 2016 is $79. The estimated net amount of prior service benefit and net actuarial loss for the postretirement benefit plans that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost during fiscal 2016 is $10. | ||||||||||||||||||||||||||
During fiscal 2015, the Company converted to the RP-2014 Aggregate mortality table for calculating the pension and other postretirement obligations and the annual expense. This change increased the projected benefit obligation by $182 and the accumulated postretirement benefit obligation by $6. This conversion is expected to increase the fiscal 2016 defined benefit pension plans expense by $32. | ||||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of the following: | ||||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||
Benefit obligation assumptions: | ||||||||||||||||||||||||||
Discount rate(1) | 3.8 | % | 4.65 | % | 4.25 | % | ||||||||||||||||||||
Rate of compensation increase | — | % | — | % | 2 | % | ||||||||||||||||||||
Net periodic benefit cost assumptions:(2) | ||||||||||||||||||||||||||
Discount rate(1) | 4.65 – 4.10% | 4.25 | % | 4.55 | % | |||||||||||||||||||||
Rate of compensation increase | — | % | 2 | % | 2 | % | ||||||||||||||||||||
Expected return on plan assets(3) | 7.00 – 6.50% | 7 | % | 7.25 | % | |||||||||||||||||||||
-1 | The Company reviews and selects the discount rate to be used in connection with measuring its pension and other postretirement benefit obligations annually. In determining the discount rate, the Company uses the yield on corporate bonds (rated AA or better) that coincides with the cash flows of the plans’ estimated benefit payouts. The model uses a yield curve approach to discount each cash flow of the liability stream at an interest rate specifically applicable to the timing of each respective cash flow. The model totals the present values of all cash flows and calculates the equivalent weighted average discount rate by imputing the singular interest rate that equates the total present value with the stream of future cash flows. This resulting weighted average discount rate is then used in evaluating the final discount rate to be used by the Company. | |||||||||||||||||||||||||
-2 | Net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year. | |||||||||||||||||||||||||
-3 | Expected long-term return on plan assets is estimated by utilizing forward-looking, long-term return, risk and correlation assumptions developed and updated annually by the Company. These assumptions are weighted by the actual or target allocation to each underlying asset class represented in the pension plan asset portfolio. The Company also assesses the expected long-term return on plan assets assumption by comparison to long-term historical performance on an asset class to ensure the assumption is reasonable. Long-term trends are also evaluated relative to market factors such as inflation, interest rates, and fiscal and monetary policies in order to assess the capital market assumptions. | |||||||||||||||||||||||||
The Company calculates its expected return on plan assets by using the market related value of plan assets. The market related value of plan assets is determined by adjusting the actual fair value of plan assets for unrecognized gains or losses on plan assets. Unrecognized gains or losses represent the difference between actual returns and expected returns on plan assets for each fiscal year and are recognized by the Company evenly over a three year period. Since the market related value of assets recognizes gains or losses over a three year period, the future value of assets will be impacted as previously deferred gains or losses are recognized. | ||||||||||||||||||||||||||
For those retirees whose health plans provide for variable employer contributions, the assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation before age 65 was 7.25 percent as of February 28, 2015. The assumed healthcare cost trend rate for retirees before age 65 will decrease by 0.25 percent for each year through fiscal 2026, until it reaches the ultimate trend rate of 4.50 percent. For those retirees whose health plans provide for variable employer contributions, the assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation after age 65 was 6.00 percent as of February 28, 2015. The assumed healthcare cost trend rate for retirees after age 65 will decrease through fiscal 2026, until it reaches the ultimate trend rate of 4.50 percent. For those retirees whose health plans provide for a fixed employer contribution rate, a healthcare cost trend is not applicable. The healthcare cost trend rate assumption would have the following impact on the amounts reported: a 100 basis point increase in the trend rate would impact the Company’s service and interest cost by less than $1 for fiscal 2015; a 100 basis point decrease in the trend rate would impact the Company’s accumulated postretirement benefit obligation as of the end of fiscal 2015 by approximately $7; and a 100 basis point increase would increase the Company’s accumulated postretirement benefit obligation by approximately $8. | ||||||||||||||||||||||||||
Pension Plan Assets | ||||||||||||||||||||||||||
Plan assets are held in a master trust and invested in separately managed accounts and other commingled investment vehicles holding domestic and international equity securities, domestic fixed income securities and other investment classes. The Company employs a total return approach whereby a diversified mix of asset class investments is used to maximize the long-term return of plan assets for an acceptable level of risk. Alternative investments are also used to enhance risk-adjusted long-term returns while improving portfolio diversification. Risk is managed through diversification across asset classes, multiple investment manager portfolios and both general and portfolio-specific investment guidelines. Risk tolerance is established through careful consideration of the plan liabilities, plan funded status and the Company’s financial condition. This asset allocation policy mix is reviewed annually and actual versus target allocations are monitored regularly and rebalanced on an as-needed basis. Plan assets are invested using a combination of active and passive investment strategies. Passive, or “indexed” strategies, attempt to mimic rather than exceed the investment performance of a market benchmark. The plan’s active investment strategies employ multiple investment management firms. Managers within each asset class cover a range of investment styles and approaches and are combined in a way that controls for capitalization, and style biases (equities) and interest rate exposures (fixed income) versus benchmark indices. Monitoring activities to evaluate performance against targets and measure investment risk take place on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. | ||||||||||||||||||||||||||
The asset allocation targets and the actual allocation of pension plan assets are as follows: | ||||||||||||||||||||||||||
Asset Category | Target | 2015 | 2014 | |||||||||||||||||||||||
Domestic equity | 24.4 | % | 24.8 | % | 30.2 | % | ||||||||||||||||||||
International equity | 11 | % | 11.3 | % | 14.1 | % | ||||||||||||||||||||
Private equity | 6.2 | % | 6.2 | % | 5.5 | % | ||||||||||||||||||||
Fixed income | 48.7 | % | 48.1 | % | 41.3 | % | ||||||||||||||||||||
Real estate | 9.7 | % | 9.6 | % | 8.9 | % | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||
The following is a description of the valuation methodologies used for investments measured at fair value: | ||||||||||||||||||||||||||
Common stock—Valued at the closing price reported in the active market in which the individual securities are traded. | ||||||||||||||||||||||||||
Common collective trusts—Valued at net asset value (“NAV”), which is based on the fair value of the underlying securities owned by the fund divided by the number of shares outstanding. The NAV unit price is quoted on a private market that is not active. However, the NAV is based on the fair value of the underlying securities within the fund, which are traded on an active market, and valued at the closing price reported on the active market on which those individual securities are traded. | ||||||||||||||||||||||||||
Corporate bonds—Valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs. | ||||||||||||||||||||||||||
Government securities—Certain government securities are valued at the closing price reported in the active market in which the security is traded. Other government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. | ||||||||||||||||||||||||||
Mortgage backed securities—Valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs. | ||||||||||||||||||||||||||
Private equity and real estate partnerships—Valued using the most recent general partner statement of fair value, updated for any subsequent partnership interests’ cash flows or expected changes in fair value. | ||||||||||||||||||||||||||
Mutual funds—Mutual funds are valued at the closing price reported in the active market in which the individual securities are traded. | ||||||||||||||||||||||||||
Synthetic guaranteed investment contract—Valued by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer. | ||||||||||||||||||||||||||
Other—Valued under an approach that maximizes observable inputs, such as gathering consensus data from the market participant’s best estimate of mid-market pricing for actual trades or positions held. | ||||||||||||||||||||||||||
The valuation methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. | ||||||||||||||||||||||||||
The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 28, 2015, by asset category, consisted of the following: | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Common stock | $ | 489 | $ | — | $ | — | $ | 489 | ||||||||||||||||||
Common collective trusts—fixed income | — | 259 | — | 259 | ||||||||||||||||||||||
Common collective trusts—equity | — | 336 | — | 336 | ||||||||||||||||||||||
Government securities | 95 | 130 | — | 225 | ||||||||||||||||||||||
Mutual funds | 53 | 286 | — | 339 | ||||||||||||||||||||||
Corporate bonds | — | 292 | — | 292 | ||||||||||||||||||||||
Real estate partnerships | — | — | 162 | 162 | ||||||||||||||||||||||
Private equity | — | — | 144 | 144 | ||||||||||||||||||||||
Mortgage-backed securities | — | 17 | — | 17 | ||||||||||||||||||||||
Other | 48 | 6 | — | 54 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 685 | $ | 1,326 | $ | 306 | $ | 2,317 | ||||||||||||||||||
The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 22, 2014, by asset category, consisted of the following: | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Common stock | $ | 579 | $ | — | $ | — | $ | 579 | ||||||||||||||||||
Common collective trusts—fixed income | — | 253 | — | 253 | ||||||||||||||||||||||
Common collective trusts—equity | — | 344 | — | 344 | ||||||||||||||||||||||
Government securities | 92 | 89 | — | 181 | ||||||||||||||||||||||
Mutual funds | 52 | 243 | — | 295 | ||||||||||||||||||||||
Corporate bonds | — | 290 | — | 290 | ||||||||||||||||||||||
Real estate partnerships | — | — | 149 | 149 | ||||||||||||||||||||||
Private equity | — | — | 125 | 125 | ||||||||||||||||||||||
Mortgage-backed securities | — | 37 | — | 37 | ||||||||||||||||||||||
Other | — | 8 | — | 8 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 723 | $ | 1,264 | $ | 274 | $ | 2,261 | ||||||||||||||||||
The following is a summary of changes in the fair value of Level 3 investments for 2015 and 2014: | ||||||||||||||||||||||||||
Real Estate | Private Equity | |||||||||||||||||||||||||
Partnerships | ||||||||||||||||||||||||||
Ending balance, February 23, 2013 | $ | 136 | $ | 110 | ||||||||||||||||||||||
Purchases | 22 | 34 | ||||||||||||||||||||||||
Sales | (26 | ) | (24 | ) | ||||||||||||||||||||||
Unrealized gains | 10 | 5 | ||||||||||||||||||||||||
Realized gains and losses | 7 | — | ||||||||||||||||||||||||
Ending balance, February 22, 2014 | 149 | 125 | ||||||||||||||||||||||||
Purchases | 10 | 36 | ||||||||||||||||||||||||
Sales | (7 | ) | (21 | ) | ||||||||||||||||||||||
Unrealized gains | 10 | 4 | ||||||||||||||||||||||||
Realized gains and losses | — | — | ||||||||||||||||||||||||
Ending balance, February 28, 2015 | $ | 162 | $ | 144 | ||||||||||||||||||||||
Contributions | ||||||||||||||||||||||||||
In August 2014, the Highway and Transportation Funding Act of 2014, which included an extension of pension funding interest rate relief, was signed into law. The Highway and Transportation Funding Act includes a provision for interest rate stabilization for defined benefit employee pension plans. As a result of this stabilization provision, the Company expects its required pension contributions to the SUPERVALU Retirement Plan to decrease significantly compared to fiscal 2015 for the next several years. The Company expects to contribute approximately $55 to $65 to its defined benefit pension plans and postretirement benefit plans in fiscal 2016. | ||||||||||||||||||||||||||
The Company’s funding policy for the defined benefit pension plans is to contribute the minimum contribution required under the Employee Retirement Income Security Act of 1974, as amended, the Pension Protection Act of 2006 and other applicable laws, as determined by the Company’s external actuarial consultant with consideration given to contributing larger amounts. The Company had agreed to make $100 in aggregate contributions to the SUPERVALU Retirement Plan in excess of the minimum required contributions pursuant to a term sheet entered into with the PBGC in connection with the sale of NAI. On September 11, 2014, the Company, AB Acquisition and the PBGC amended the term sheet. Pursuant to that amendment, the Company made excess contributions of $47 to the SUPERVALU Retirement Plan and the Company no longer has any obligations or restrictions under the term sheet. The Company will recognize contributions in accordance with applicable regulations, with consideration given to recognition for the earliest plan year permitted. | ||||||||||||||||||||||||||
At the Company’s discretion, additional funds may be contributed to the pension plan. The Company may accelerate contributions or undertake contributions in excess of the minimum requirements from time to time subject to the availability of cash in excess of operating and financing needs or other factors as may be applicable. The Company assesses the relative attractiveness of the use of cash including such factors as expected return on assets, discount rates, cost of debt, reducing or eliminating required PBGC variable rate premiums or the ability to achieve exemption from participant notices of underfunding. | ||||||||||||||||||||||||||
Lump Sum Pension Settlement | ||||||||||||||||||||||||||
During the third quarter of fiscal 2015, the Company made lump sum settlement payments to certain deferred vested pension plan participants under a lump sum payment option window. The payments were equal to the present value of the participant’s pension benefits, and were made to certain former employees who were deferred vested participants in the SUPERVALU Retirement Plan, who had not yet begun receiving monthly pension benefit payments and who elected to participate in the lump sum payment option window. In fiscal 2015, the SUPERVALU Retirement Plan made lump sum settlement payments of approximately $272. The lump sum settlement payments resulted in a non-cash pension settlement charge of $64 from the acceleration of a portion of the accumulated unrecognized actuarial loss. As a result of the lump sum settlements, the SUPERVALU Retirement Plan assets and liabilities were re-measured at November 29, 2014 using a discount rate of 4.1 percent, an expected rate of return on plan assets of 6.5 percent and the RP-2014 Generational Mortality Table. The November 29, 2014 re-measurement resulted in an increase to Accumulated other comprehensive loss of $200 pre-tax ($141 after-tax) and a corresponding decrease to the SUPERVALU Retirement Plan's funded status. | ||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||
The estimated future benefit payments to be made from the Company’s defined benefit pension and other postretirement benefit plans, which reflect expected future service, are as follows: | ||||||||||||||||||||||||||
Fiscal Year | Pension Benefits | Other Postretirement | ||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||
2016 | $ | 139 | $ | 6 | ||||||||||||||||||||||
2017 | 129 | 5 | ||||||||||||||||||||||||
2018 | 137 | 5 | ||||||||||||||||||||||||
2019 | 142 | 5 | ||||||||||||||||||||||||
2020 | 153 | 6 | ||||||||||||||||||||||||
Years 2021-2025 | 843 | 28 | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||
The Company sponsors several defined contribution and profit sharing plans pursuant to Section 401(k) of the Internal Revenue Code. Employees may contribute a portion of their eligible compensation to the plans on a pre-tax basis. The Company matches a portion of employee contributions by contributing cash into the investment options selected by the employees. The total amount contributed by the Company to the plans is determined by plan provisions or at the discretion of the Company. Total employer contribution expenses for these plans were $16, $11 and $17 for fiscal 2015, 2014 and 2013, respectively. Matching contributions were reduced or eliminated in January 2013 for most employees. The Company adopted and made a discretionary match for fiscal 2015 for employees who had their matching contributions eliminated. Plan investment options no longer include shares of the Company's common stock. | ||||||||||||||||||||||||||
Post-Employment Benefits | ||||||||||||||||||||||||||
The Company recognizes an obligation for benefits provided to former or inactive employees. The Company is self-insured for certain disability plan programs, which comprise the primary benefits paid to inactive employees prior to retirement. | ||||||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consisted of the following: | ||||||||||||||||||||||||||
Post-Employment Benefits | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Accrued vacation, compensation and benefits | $ | 8 | $ | 9 | ||||||||||||||||||||||
Other long-term liabilities | 10 | 15 | ||||||||||||||||||||||||
Total | $ | 18 | $ | 24 | ||||||||||||||||||||||
Multiemployer Plans | ||||||||||||||||||||||||||
The Company contributes to various multiemployer pension plans under collective bargaining agreements, primarily defined benefit pension plans. These multiemployer plans generally provide retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Plan trustees typically are responsible for determining the level of benefits to be provided to participants as well as the investment of the assets and plan administration. Trustees are appointed in equal number by employers and the unions that are parties to the collective bargaining agreement. | ||||||||||||||||||||||||||
Expense is recognized in connection with these plans as contributions are funded, in accordance with U.S. generally accepted accounting standards. The Company contributed $39, $39 and $38 to these plans for fiscal years 2015, 2014 and 2013, respectively. The risks of participating in these multiemployer plans are different from the risks associated with single-employer plans in the following respects: | ||||||||||||||||||||||||||
a. | Assets contributed to the multiemployer plan by one employer are held in trust and may be used to provide benefits to employees of other participating employers. | |||||||||||||||||||||||||
b. | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | |||||||||||||||||||||||||
c. | If the Company chooses to stop participating in some multiemployer plans, or makes market exits or store closures or otherwise has participation in the plan drop below certain levels, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | |||||||||||||||||||||||||
The Company’s participation in these plans is outlined in the table below. The EIN-Pension Plan Number column provides the Employer Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (“PPA”) zone status available in 2015 and 2014 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that the Company received from the plan and is certified by each plan’s actuary. Among other factors, red zone status plans are generally less than 65 percent funded and are considered in critical status, plans in yellow zone or orange zone status are less than 80 percent funded and are considered in endangered or seriously endangered status, and green zone plans are at least 80 percent funded. The FIP/RP Status Pending/Implemented column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented by the trustees of each plan. | ||||||||||||||||||||||||||
Certain plans have been aggregated in the All Other Multiemployer Pension Plans line in the following table, as the contributions to each of these plans are not individually material. None of the Company’s collective bargaining agreements require that a minimum contribution be made to these plans. Multiemployer pension plan contributions and participants were generally comparable for fiscal 2015, 2014 and 2013. | ||||||||||||||||||||||||||
At the date the financial statements were issued, Forms 5500 were generally not available for the plan years ending in 2014. | ||||||||||||||||||||||||||
The following table contains information about the Company’s multiemployer plans: | ||||||||||||||||||||||||||
EIN—Pension | Plan | Pension Protection Act Zone Status | FIP/RP Status | Contributions | Surcharges | Amortization | ||||||||||||||||||||
Plan Number | Month/Day | Pending/ Implemented | Imposed(1) | Provisions | ||||||||||||||||||||||
Pension Fund | End Date | 2015 | 2014 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Minneapolis Food Distributing Industry Pension Plan | 416047047-001 | 31-Dec | Green | Green | Implemented | $ | 10 | $ | 9 | $ | 9 | No | Yes | |||||||||||||
Central States, Southeast and Southwest Areas Pension Fund | 366044243-001 | 31-Dec | Red | Red | Implemented | 8 | 8 | 9 | No | No | ||||||||||||||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 410905139-001 | 28-Feb | Yellow | Yellow | Implemented | 7 | 8 | 8 | No | No | ||||||||||||||||
UFCW Unions and Participating Employers Pension Plan | 526117495-002 | 31-Dec | Red | Red | Implemented | 4 | 4 | 3 | No | No | ||||||||||||||||
Western Conference of Teamsters Pension Plan | 916145047-001 | 31-Dec | Green | Green | No | 4 | 3 | 2 | No | Yes | ||||||||||||||||
UFCW Union Local 655 Food Employers Joint Pension Plan | 436058365-001 | 31-Dec | Green | Green | No | 2 | 2 | 2 | Yes | Yes | ||||||||||||||||
UFCW Unions and Employers Pension Plan | 396069053-001 | 31-Oct | Red | Red | Implemented | 1 | 2 | 2 | Yes | No | ||||||||||||||||
All Other Multiemployer Pension Plans(2) | 3 | 3 | 3 | |||||||||||||||||||||||
Total | $ | 39 | $ | 39 | $ | 38 | ||||||||||||||||||||
-1 | PPA surcharges are 5 percent or 10 percent of eligible contributions and may not apply to all collective bargaining agreements or total contributions to each plan. | |||||||||||||||||||||||||
-2 | All Other Multiemployer Pension Plans includes 12 plans, none of which are individually significant when considering the Company's contributions to the plan, severity of the underfunded status or other factors. | |||||||||||||||||||||||||
The following table describes the expiration of the Company’s collective bargaining agreements associated with the significant multiemployer plans in which the Company participates: | ||||||||||||||||||||||||||
Most Significant Collective Bargaining Agreement | ||||||||||||||||||||||||||
Pension Fund | Range of Collective Bargaining Agreement Expiration Dates | Total Collective Bargaining Agreements | Expiration Date | % of Associates under Collective Bargaining Agreement (1) | Over 5% Contribution 2014 | |||||||||||||||||||||
Minneapolis Food Distributing Industry Pension Plan | 6/01/2013 – 05/31/2015 | 1 | 5/31/15 | 100 | % | Yes | ||||||||||||||||||||
Central States, Southeast and Southwest Areas Pension Fund | 6/01/2011 – 8/31/2017 | 10 | 5/31/16 | 28.7 | % | No | ||||||||||||||||||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 3/2/2014 – 3/5/2016 | 1 | 3/5/16 | 100 | % | Yes | ||||||||||||||||||||
UFCW Unions and Participating Employers Pension Plan | 7/13/2014 – 7/8/2017 | 2 | 7/8/17 | 68.9 | % | Yes | ||||||||||||||||||||
Western Conference of Teamsters Pension Plan | 4/17/2011 – 7/15/2017 | 8 | 7/15/17 | 50.2 | % | No | ||||||||||||||||||||
UFCW Union Local 655 Food Employers Joint Pension Plan | 5/13/2013 – 5/8/2016 | 1 | 5/8/16 | 100 | % | Yes | ||||||||||||||||||||
UFCW Unions and Employers Pension Plan | 4/6/2014 – 4/2/2016 | 1 | 4/2/16 | 90 | % | Yes | ||||||||||||||||||||
-1 | Company participating employees in the most significant collective bargaining agreement as a percent of all Company employees participating in the respective fund. | |||||||||||||||||||||||||
Multiemployer Postretirement Benefit Plans Other than Pensions | ||||||||||||||||||||||||||
The Company also makes contributions to multiemployer health and welfare plans in amounts set forth in the related collective bargaining agreements. These plans provide medical, dental, pharmacy, vision and other ancillary benefits to active employees and retirees as determined by the trustees of each plan. The vast majority of the Company’s contributions benefit active employees and as such, may not constitute contributions to a postretirement benefit plan. However, the Company is unable to separate contribution amounts to postretirement benefit plans from contribution amounts paid to benefit active employees. | ||||||||||||||||||||||||||
The Company contributed $89, $87 and $90 for fiscal 2015, 2014 and 2013, respectively, to multiemployer health and welfare plans. If healthcare provisions within these plans cannot be renegotiated in a manner that reduces the prospective healthcare cost as the Company intends, the Company’s Selling and administrative expenses could increase in the future. | ||||||||||||||||||||||||||
Collective Bargaining Agreements | ||||||||||||||||||||||||||
As of February 28, 2015, the Company had approximately 38,500 employees. Approximately 16,000 employees are covered by 49 collective bargaining agreements. During fiscal 2015, 19 collective bargaining agreements covering 11,700 employees were renegotiated and four collective bargaining agreements covering approximately 800 employees expired without their terms being renegotiated. Negotiations are expected to continue with the bargaining units representing the employees subject to those agreements. During fiscal 2016, eight collective bargaining agreements covering approximately 1,200 employees are scheduled to expire. |
NET_EARNINGS_LOSS_PER_SHARE
NET EARNINGS (LOSS) PER SHARE | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
NET EARNINGS (LOSS) PER SHARE | The following table reflects the calculation of basic and diluted net earnings (loss) per share: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Net earnings (loss) from continuing operations | $ | 127 | $ | 13 | $ | (253 | ) | |||||
Less net earnings attributable to noncontrolling interests | (7 | ) | (7 | ) | (10 | ) | ||||||
Net earnings (loss) from continuing operations attributable to SUPERVALU INC. | 120 | 6 | (263 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | 72 | 176 | (1,203 | ) | ||||||||
Net earnings (loss) attributable to SUPERVALU INC. | $ | 192 | $ | 182 | $ | (1,466 | ) | |||||
Weighted average number of shares outstanding—basic | 260 | 255 | 212 | |||||||||
Dilutive impact of stock-based awards | 4 | 3 | — | |||||||||
Weighted average number of shares outstanding—diluted (1) | 264 | 258 | 212 | |||||||||
Basic net earnings (loss) per share attributable to SUPERVALU INC.: | ||||||||||||
Continuing operations | $ | 0.46 | $ | 0.02 | $ | (1.24 | ) | |||||
Discontinued operations | $ | 0.28 | $ | 0.69 | $ | (5.67 | ) | |||||
Basic net earnings (loss) per share | $ | 0.74 | $ | 0.71 | $ | (6.91 | ) | |||||
Diluted net earnings (loss) per share attributable to SUPERVALU INC.: | ||||||||||||
Continuing operations (1) | $ | 0.45 | $ | 0.02 | $ | (1.24 | ) | |||||
Discontinued operations (1) | $ | 0.27 | $ | 0.68 | $ | (5.67 | ) | |||||
Diluted net earnings (loss) per share | $ | 0.73 | $ | 0.7 | $ | (6.91 | ) | |||||
-1 | Weighted average number of shares outstanding—diluted was equal to Weighted average number of shares outstanding—basic for the computation of diluted net loss per share amounts for fiscal 2013. | |||||||||||
Stock-based awards of 10, 18 and 25 were outstanding during fiscal 2015, 2014 and 2013, respectively, but were excluded from the calculation of Net earnings (loss) from continuing operations per share—diluted, Net earnings (loss) from discontinued operations per share—diluted and Net earnings (loss) per share—diluted for the periods because their inclusion would be antidilutive. |
COMPREHENSIVE_INCOME_LOSS_AND_
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS | 12 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED COMPREHENSIVE LOSS | The Company reports comprehensive income in the Consolidated Statements of Comprehensive Income. Comprehensive income includes all changes in stockholders’ deficit during the reporting period, other than those resulting from investments by and distributions to stockholders. The Company’s comprehensive income is calculated as net earnings (loss) including noncontrolling interests, plus or minus adjustments for pension and other postretirement benefit obligations, net of tax, less comprehensive income attributable to noncontrolling interests. | |||||||||||||
Accumulated other comprehensive loss represents the cumulative balance of other comprehensive income (loss), net of tax, as of the end of the reporting period and relates to pension and other postretirement benefit obligation adjustments, net of tax. Changes in Accumulated other comprehensive loss by component are as follows: | ||||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Pension and postretirement benefit plan accumulated other comprehensive loss at beginning of the fiscal year, net of tax | $ | (307 | ) | $ | (612 | ) | $ | (657 | ) | |||||
Other comprehensive (loss) income before reclassifications, net of tax benefit (expense) of $73, $(85) and $(18), respectively | (188 | ) | 202 | (20 | ) | |||||||||
Pension settlement charge, net of tax expense of $(25), $0 and $0, respectively | 39 | — | — | |||||||||||
Amortization of amounts included in net periodic benefit cost, net of tax expense of $(21), $(38) and $(40), respectively | 33 | 55 | 65 | |||||||||||
Net current-period Other comprehensive income (loss), net of tax benefit (expense) of $27, $(123) and $(22), respectively | (116 | ) | 257 | 45 | ||||||||||
Divestiture of NAI pension plan accumulated other comprehensive loss, net of tax (expense) of $0, $(31) and $0 | — | 48 | — | |||||||||||
Pension and postretirement benefit plan accumulated other comprehensive loss at the end of fiscal year, net of tax | $ | (423 | ) | $ | (307 | ) | $ | (612 | ) | |||||
Upon completion of the sale of NAI in the first quarter of fiscal 2014, the Company disposed of approximately $48 of Accumulated other comprehensive loss, which was a component of Stockholders’ deficit in the Consolidated Balance Sheet as of February 23, 2013, due to NAI’s assumption of a defined benefit pension plan established and operated under NAI. | ||||||||||||||
Accumulated other comprehensive loss related to the Company's interest rate swap was insignificant as of February 28, 2015. | ||||||||||||||
Items reclassified out of pension and postretirement benefit plan accumulated other comprehensive loss had the following impact on the Consolidated Statements of Operations: | ||||||||||||||
2015 | 2014 | 2013 | Affected Line Item on Consolidated Statements of Operations | |||||||||||
Pension and postretirement benefit plan obligations: | ||||||||||||||
Amortization of amounts included in net periodic benefit expense(1) | $ | 43 | $ | 82 | $ | 93 | Selling and administrative expenses | |||||||
Amortization of amounts included in net periodic benefit expense(1) | 11 | 11 | 12 | Cost of sales | ||||||||||
Pension settlement charge | 64 | — | — | Selling and administrative expenses | ||||||||||
Total reclassifications | 118 | 93 | 105 | |||||||||||
Income tax benefit | (46 | ) | (38 | ) | (40 | ) | Income tax provision (benefit) | |||||||
Total reclassifications, net of tax | $ | 72 | $ | 55 | $ | 65 | ||||||||
-1 | Amortization of amounts included in net periodic benefit cost include amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 11—Benefit Plans. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | 12 Months Ended |
Feb. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | Guarantees |
The Company has outstanding guarantees related to certain leases, fixture financing loans and other debt obligations of various retailers as of February 28, 2015. These guarantees were generally made to support the business growth of independent retail customers. The guarantees are generally for the entire terms of the leases or other debt obligations with remaining terms that range from less than one year to 15 years, with a weighted average remaining term of approximately eight years. For each guarantee issued, if the independent retail customer defaults on a payment, the Company would be required to make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees of the independent retail customer. | |
The Company reviews performance risk related to its guarantees of independent retail customer obligations based on internal measures of credit performance. As of February 28, 2015, the maximum amount of undiscounted payments the Company would be required to make in the event of default of all guarantees was $69 and represented $54 on a discounted basis. Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. Accordingly, no amount has been recorded in the Consolidated Balance Sheets for these contingent obligations under the Company’s guarantee arrangements. | |
The Company is contingently liable for leases that have been assigned to various third parties in connection with facility closings and dispositions. The Company could be required to satisfy the obligations under the leases if any of the assignees are unable to fulfill their lease obligations. Due to the wide distribution of the Company’s assignments among third parties, and various other remedies available, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. | |
The Company is a party to a variety of contractual agreements under which it may be obligated to indemnify the other party for certain matters in the ordinary course of business, which indemnities may be secured by operation of law or otherwise. These agreements primarily relate to the Company’s commercial contracts, the TSA (as defined below), contracts entered into for the purchase and sale of stock or assets, operating leases and other real estate contracts, financial agreements, agreements to provide services to the Company and agreements to indemnify officers, directors and employees in the performance of their work. While the Company’s aggregate indemnification obligation could result in a material liability, the Company is not aware of any matters that are expected to result in a material liability. | |
Following the sale of NAI, the Company remains contingently liable with respect to certain self-insurance commitments and other guarantees as a result of parental guarantees issued by SUPERVALU INC. with respect to the obligations of NAI that were incurred while NAI was a subsidiary of the Company. As of February 28, 2015, using actuarial estimates as of December 31, 2014, the total undiscounted amount of all such guarantees was estimated at $217 ($195 on a discounted basis). Based on the expected settlement of the self-insurance claims that underlie the Company’s commitments, the Company believes that such contingent liabilities will continue to decline. Subsequent to the sale of NAI, NAI collateralized most of these obligations with letters of credit and surety bonds to numerous states. Because NAI remains a primary obligor on these self-insurance and other obligations and has collateralized most of the self-insurance obligations for which the Company remains contingently liable, the Company believes that the likelihood that it will be required to assume a material amount of these obligations is remote. Accordingly, no amount has been recorded in the Consolidated Balance Sheets for these guarantees. | |
Information Technology Intrusions | |
Computer Network Intrusions - The Company announced during fiscal 2015 it had experienced separate criminal intrusions into the portion of its computer network that processes payment card transactions for some of its owned and franchised retail stores, including some of its associated stand-alone liquor stores. An investigation of those intrusions supported by third-party data forensics experts is ongoing. The Company believes these criminal intrusions may have resulted in the collection of account numbers, and in some cases also the expiration date, other numerical information and/or the cardholder’s name. Upon recognition of each intrusion, the Company took immediate steps to secure the affected part of its network, and the Company believes that it has eradicated the malware used in each intrusion. The Company notified the major payment card brands and federal law enforcement authorities and is cooperating in their efforts to investigate these intrusions, identify those responsible for the intrusions and determine whether any cardholder data was stolen by the intruder(s). The Company also notified several state Attorneys General of the intrusions. As to both intrusions, given the continuing nature of the investigation, it is possible that it will be determined that information was stolen from the Company during one or both of these intrusions or that time frames, locations, at-risk data, and/or other facts will be identified in the future. | |
Some stores owned and operated by Albertson’s LLC and NAI experienced related criminal intrusions. The Company provides information technology services to these Albertson’s LLC and NAI stores pursuant to the TSA, and the Company has been working together with Albertson’s LLC and NAI to respond to the intrusions into their stores. The Company believes that any losses incurred by Albertson’s LLC or NAI as a result of the intrusions affecting their stores would not be the Company’s responsibility. | |
Investigations and Proceedings - As a result of the criminal intrusions, the payment card brands are conducting investigations into whether the portion of the Company’s network that handles payment card data was compliant with applicable data security standards at the time of the intrusions and, if not, whether any non-compliance caused any compromise of payment card data that may have occurred during the intrusions. The Company’s network has previously been found to be compliant with those standards; however, the forensic investigator working on behalf of the payment card brands has concluded that the Company was not in compliance at the time of the intrusions and that the alleged non-compliance caused at least some portion of the compromise of payment card data that allegedly occurred during the intrusions. As a result, the Company expects the payment card brands to allege that the Company was not compliant with the applicable data security standards at the time of the intrusions and that such alleged non-compliance caused the compromise of payment card data during the intrusions. The Company believes the payment card brands will make claims against the Company for non-ordinary course operating expenses and incremental counterfeit fraud losses allegedly incurred by them or their issuers by reason of the intrusions and the Company expects to dispute those claims. While the Company does not believe that a loss is probable by reason of these as yet unasserted claims, the Company believes that a loss in connection with these claims, should they be asserted, is reasonably possible; however, at this time the Company cannot reasonably estimate a range of possible losses because the payment card brands’ investigation is ongoing and the payment card brands have not alleged what payment cards they consider to have been compromised, what data from those cards they consider to have been compromised, or the amount of their and/or their issuers' claimed losses. The Company does not currently believe that the amount, if any, paid on any payment card brand claims that might be asserted would be material to the Company’s consolidated results of operations, cash flows or financial condition. | |
While the Company is not aware of any investigation into the intrusions having been initiated by any regulatory authority, it is possible that regulatory investigations into the intrusions could be initiated in the future and, were that to occur, it is possible that such investigations could result in claims being made against the Company by the regulatory authorities in question. If that were to occur, the Company expects to dispute those claims. | |
As discussed in more detail below in this Note 14 under Legal Proceedings, four class action complaints have been filed against the Company related to the intrusions and are currently pending. As indicated in Note 14, the Company believes that the likelihood of a material loss from the four class actions is remote. It is possible that other similar complaints by consumers, banks or others may be filed against the Company in connection with the intrusions. | |
Insurance Coverage - The Company had $50 of cyber threat insurance above a per incident deductible of $1 at the time of the intrusions and the Company now maintains $75 of cyber threat insurance above a per incident deductible of approximately $3, in each case subject to certain sublimits, which it believes should mitigate the financial effect of these intrusions, including claims made or that might be made against the Company based on these intrusions. Based on currently available information, the Company does not believe that the ultimate outcome of these intrusions, including any related lawsuits, claims or other proceedings that might be initiated against the Company, will have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position. | |
Expenses - The Company has and expects to incur various costs related to the intrusions, including the cost of conducting the pending investigation, the cost of providing identity protection services to the Company’s customers and legal and other professional expenses. In fiscal 2015, the Company recorded $5 of intrusion related costs and anticipated insurance proceeds of $3. These amounts were recorded within Selling and administrative expenses in the Consolidated Statement of Operations. Anticipated insurance proceeds recorded for the insurance receivable were based on the Company’s insurance recovery assessment. This assessment included the review of applicable insurance policies, correspondence with the insurance carriers and analysis by legal counsel. | |
Impact on Sales - The Company has not experienced weaker than anticipated sales subsequent to the intrusions. | |
Other Contractual Commitments | |
In the ordinary course of business, the Company enters into supply contracts to purchase products for resale and purchase and service contracts for fixed asset and information technology commitments. These contracts typically include either volume commitments or fixed expiration dates, termination provisions and other standard contractual considerations. As of February 28, 2015, the Company had approximately $244 of noncancelable future purchase obligations. | |
The Company and AB Acquisition entered into a binding term sheet with the PBGC relating to issues regarding the effect of the sale of NAI on certain SUPERVALU retirement plans. The agreement required that the Company not pay any dividends to its stockholders at any time for a period of up to five years. The Company had also agreed to make $100 in aggregate contributions to the SUPERVALU Retirement Plan in excess of the minimum required contributions at or before the end of fiscal years 2015 – 2017 and AB Acquisition had agreed to provide a guarantee to the PBGC for such excess payments. On September 11, 2014, the Company, AB Acquisition and the PBGC amended the term sheet. Pursuant to that amendment, the Company made excess contributions of $47 to the SUPERVALU Retirement Plan and the Company is no longer restricted by the term sheet from paying dividends to its stockholders and has fully satisfied its obligations to make excess contributions to the SUPERVALU Retirement Plan. While the Company is no longer restricted from paying dividends to its stockholders under the term sheet, the Company has no current intent to resume paying dividends. The payment of future dividends is subject to the discretion of the Company’s Board of Directors and the requirements of Delaware law, and will depend on a variety of factors that the Company’s Board of Directors may deem relevant. In addition, as described above in Note 7—Long-Term Debt, the Company is limited in the aggregate amount of dividends that the Company may pay during the term of its Secured Term Loan Facility and would need to meet certain conditions in the Secured Term Loan Facility and the Revolving ABL Credit Facility before paying a dividend. | |
During fiscal 2015, the Company recognized $69 of discrete tax benefits attributable to discontinued operations (see Note 16—Discontinued Operations), which relates to tangible property repair regulations. The Company believes it is entitled to these tax benefits, but is in discussions with NAI and Albertson’s LLC on whether the Company will pay any portion of the related tax refund to NAI and Albertson’s LLC. | |
Legal Proceedings | |
The Company is subject to various lawsuits, claims and other legal matters that arise in the ordinary course of conducting business. In the opinion of management, based upon currently-available facts, it is remote that the ultimate outcome of any lawsuits, claims and other proceedings will have a material adverse effect on the overall results of the Company’s operations, its cash flows or its financial position. | |
In September 2008, a class action complaint was filed against the Company, as well as International Outsourcing Services, LLC (“IOS”); Inmar, Inc.; Carolina Manufacturer’s Services, Inc.; Carolina Coupon Clearing, Inc. and Carolina Services in the United States District Court in the Eastern District of Wisconsin. The plaintiffs in the case are a consumer goods manufacturer, a grocery co-operative and a retailer marketing services company that allege on behalf of a purported class that the Company and the other defendants (i) conspired to restrict the markets for coupon processing services under the Sherman Act and (ii) were part of an illegal enterprise to defraud the plaintiffs under the Federal Racketeer Influenced and Corrupt Organizations Act. The plaintiffs seek monetary damages, attorneys’ fees and injunctive relief. The Company intends to vigorously defend this lawsuit; however, all proceedings have been stayed in the case pending the result of the criminal prosecution of certain former officers of IOS. | |
In December 2008, a class action complaint was filed in the United States District Court for the Western District of Wisconsin against the Company alleging that a 2003 transaction between the Company and C&S Wholesale Grocers, Inc. (“C&S”) was a conspiracy to restrain trade and allocate markets. In the 2003 transaction, the Company purchased certain assets of the Fleming Corporation as part of Fleming Corporation’s bankruptcy proceedings and sold certain assets of the Company to C&S that were located in New England. Since December 2008, three other retailers have filed similar complaints in other jurisdictions. The cases have been consolidated and are proceeding in the United States District Court for the District of Minnesota. The complaints allege that the conspiracy was concealed and continued through the use of non-compete and non-solicitation agreements and the closing down of the distribution facilities that the Company and C&S purchased from each other. Plaintiffs are seeking monetary damages, injunctive relief and attorneys’ fees. On July 5, 2011, the District Court granted the Company’s Motion to Compel Arbitration for those plaintiffs with arbitration agreements and plaintiffs appealed. On July 16, 2012, the District Court denied plaintiffs’ Motion for Class Certification, and on January 11, 2013, the District Court granted the Company’s Motion for Summary Judgment and dismissed the case regarding the non-arbitration plaintiffs. Plaintiffs have appealed these decisions. On February 12, 2013, the 8th Circuit reversed the District Court decision requiring plaintiffs with arbitration agreements to arbitrate and the Company filed a Petition with the 8th Circuit for an En Banc Rehearing. On June 7, 2013, the 8th Circuit denied the Petition for Rehearing and remanded the case to the District Court. On October 30, 2013, the parties attended a District Court ordered mandatory mediation, which was not successful in resolving the matter. On May 21, 2014, a panel of the 8th Circuit (1) reversed the District Court’s decision granting summary judgment in favor of the Company and (2) affirmed the District Court’s decision denying class certification of a class consisting of all retailers located in the States of Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio and Wisconsin that purchased wholesale grocery products from the Company between December 31, 2004 and September 13, 2008, but remanded the case for the District Court to consider whether to certify a narrower class of purchasers supplied from the Company’s Champaign, Illinois distribution center and potentially other distribution centers. On August 19, 2014, the 8th Circuit denied the Company’s petition for en banc review by the 8th Circuit on the reversal of the summary judgment decision and specific issues raised thereunder. The case is now remanded to the District Court for further proceedings to be determined by the District Court. On January 16, 2015, the Company filed a Petition for Certiorari to the United States Supreme Court seeking to appeal certain aspects of the 8th Circuit decision. | |
In May 2012, Kiefer, a former Assistant Store Manager at Save-A-Lot, filed a class action against Save-A-Lot seeking to represent current and former Assistant Store Managers alleging violations of the Fair Labor Standards Act related to the fluctuating work week method of pay (“FWW”) in the United States District Court in the District of Connecticut. FWW is a method of compensation whereby employees are paid a fixed salary for all hours worked during a week plus additional compensation at one-half the regular rate for overtime hours. Kiefer claimed that the FWW practice is unlawful or, if lawful, that Save-A-Lot improperly applied the FWW method of pay, including in situations involving paid time off, holiday pay and bonus payments. In March 2013, the United States District Court granted conditional certification in favor of Kiefer on the issue of whether Save-A-Lot properly applied the FWW. In May 2013, the United States District Court denied Save-A-Lot’s motion for summary judgment on the same issue. This FWW practice is permissible under the Fair Labor Standards Act and other state laws, and Save-A-Lot denied all allegations in the case. The same plaintiffs’ attorneys representing Kiefer filed two additional FWW actions against Save-A-Lot and SUPERVALU. Shortly before filing of the Kiefer lawsuit, in one of these cases filed by a former Assistant Store Manager (Roach) in March 2011, the Superior Court for the Judicial District of Hartford at Hartford granted summary judgment in favor of Save-A-Lot determining FWW was a legal practice in Connecticut. In March 2013, another Save-A-Lot Assistant Store Manager (Pagano) filed an FWW class claim against SUPERVALU under Pennsylvania state law in the Philadelphia County Court of Common Pleas relating to overtime payment. In all three cases, which the Company was defending vigorously, plaintiffs were seeking monetary damages and attorneys’ fees. On August 20, 2013, the parties agreed in principle to resolve the matters on a nationwide basis in a settlement that will cap the Company’s aggregate obligation, including with respect to settlement funds, plaintiffs’ attorneys fees and costs and settlement administration costs. The court granted preliminary approval of the settlement on March 13, 2014 and final approval on July 30, 2014. Payments to class members began in mid-November 2014 and were completed in February 2015. The Company recorded a litigation settlement charge of $5 before tax ($3 after tax) in the second quarter of fiscal 2014 in connection with the expected settlement of this matter. The Company funded $5 into a qualified settlement fund on February 28, 2014. | |
In August and November 2014, four class action complaints were filed against the Company relating to the criminal intrusions into its computer network announced by the Company in fiscal 2015 (the "Criminal Intrusion"). On September 18, 2014, the Company filed a motion before the Judicial Panel on Multidistrict Litigation seeking an order transferring, coordinating and consolidating the cases to the United States District Court for the District of Idaho. On December 16, 2014, the Judicial Panel on Multidistrict Litigation ordered the cases consolidated as In Re: Supervalu Inc. Customer Data Security Breach Litigation and transferred the cases to the District Court in Minnesota. The Company expects a consolidated complaint will be filed within the next several months. | |
In December 2014, the United States Department of Labor (the “DOL”), in connection with an audit of the SUPERVALU Group Health Plan, the SUPERVALU Retiree Benefit Plan, and the SUPERVALU Group Benefit Plan, under the Employee Retirement Income Security Act (“ERISA”), alleged three violations of its regulations relating to loan transactions between the active and retiree plans, the Company’s treatment of three rebates it had received from insurance carriers and a description of the Newborns’ and Mothers’ Health Protection Act by the Company’s third party administrator in its written materials. In connection with closing out the audit, the Company determined it would make additional contributions and pay interest totaling $19 to the trusts that fund the three aforementioned plans, resulting in a benefit plan charge of $5 before tax in fiscal 2015. No penalties were assessed by the DOL. The payments were made on March 5, 2015. | |
Predicting the outcomes of claims and litigation and estimating related costs and exposures involves substantial uncertainties that could cause actual outcomes, costs and exposures to vary materially from current expectations. The Company regularly monitors its exposure to the loss contingencies associated with these matters and may from time to time change its predictions with respect to outcomes and its estimates with respect to related costs and exposures. | |
With respect to the IOS, C&S and Criminal Intrusion matters discussed above, the Company believes the chance of a material loss is remote. It is possible, although management believes it is remote, that material differences in actual outcomes, costs and exposures relative to current predictions and estimates, or material changes in such predictions or estimates, could have a material adverse effect on the Company’s financial condition, results of operations or cash flows. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
SEGMENT INFORMATION | Refer to the Consolidated Segment Financial Information for financial information concerning the Company’s operations and financial position by reportable segment. | ||||||||||||||||||||
The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company’s chief operating decision maker is the Chief Executive Officer. | |||||||||||||||||||||
The Company offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel and other items and services. The Company’s business is classified by management into three reportable segments: Independent Business, Save-A-Lot and Retail Food. These reportable segments are three distinct businesses, each with a different customer base, marketing strategy and management structure. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred. | |||||||||||||||||||||
The Independent Business reportable segment derives revenues from wholesale distribution to independently owned retail food stores and other customers (collectively referred to as “independent retail customers”). The Save-A-Lot reportable segment derives revenues from the sale of groceries at retail locations operated and licensed by the Company (both the Company’s own stores and stores licensed by the Company to which the Company distributes wholesale products). The Retail Food reportable segment derives revenues from the sale of groceries and other products at retail locations operated by the Company. Substantially all of the Company’s operations are domestic. | |||||||||||||||||||||
The Company offers a wide variety of nationally advertised brand name and private-label products, primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty care, pharmacy and fuel, which are sold through the Company’s owned, licensed and franchised retail stores to shoppers and through its Independent Business to independent retail customers. The amounts and percentages of Net sales for each group of similar products sold in the Independent Business, Save-A-Lot and Retail Food segments and Corporate revenue consisted of the following: | |||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Independent Business: | |||||||||||||||||||||
Nonperishable grocery products(1) | $ | 5,939 | 33 | % | $ | 6,000 | 35 | % | $ | 6,140 | 36 | % | |||||||||
Perishable grocery products(2) | 2,099 | 12 | 1,951 | 11 | 1,935 | 11 | |||||||||||||||
Services to independent retail customers and other | 96 | 1 | 85 | 1 | 91 | 1 | |||||||||||||||
8,134 | 46 | % | 8,036 | 47 | % | 8,166 | 48 | % | |||||||||||||
Save-A-Lot: | |||||||||||||||||||||
Nonperishable grocery products(1) | $ | 2,986 | 17 | % | $ | 2,829 | 17 | % | $ | 2,865 | 17 | % | |||||||||
Perishable grocery products(2) | 1,627 | 9 | 1,399 | 8 | 1,330 | 8 | |||||||||||||||
4,613 | 26 | % | 4,228 | 25 | % | 4,195 | 25 | % | |||||||||||||
Retail Food: | |||||||||||||||||||||
Nonperishable grocery products(1) | $ | 2,677 | 15 | % | $ | 2,600 | 15 | % | $ | 2,689 | 16 | % | |||||||||
Perishable grocery products(2) | 1,574 | 9 | 1,463 | 9 | 1,428 | 8 | |||||||||||||||
Pharmacy products | 510 | 3 | 491 | 3 | 512 | 3 | |||||||||||||||
Fuel | 83 | — | 67 | — | 77 | — | |||||||||||||||
Other | 35 | — | 28 | — | 27 | — | |||||||||||||||
4,879 | 27 | % | 4,649 | 27 | % | 4,733 | 28 | % | |||||||||||||
Corporate: | |||||||||||||||||||||
Transition services revenue | $ | 194 | 1 | % | $ | 240 | 1 | % | $ | 42 | — | % | |||||||||
Net sales | $ | 17,820 | 100 | % | $ | 17,153 | 100 | % | $ | 17,136 | 100 | % | |||||||||
-1 | Includes such items as dry goods, general merchandise, health and beauty care, beverages, dairy, frozen foods, and candy | ||||||||||||||||||||
-2 | Includes such items as meat, produce, deli and bakery |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
DISCONTINUED OPERATIONS | NAI Banner Sale | |||||||||||
On March 21, 2013, the Company sold NAI to AB Acquisition, which resulted in the sale of the NAI banners, including Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market and related Osco and Sav-on in-store pharmacies (collectively, the “NAI Banners”). | ||||||||||||
The Company received net proceeds of approximately $100 and a short-term note receivable of approximately $44 for the stock of NAI. AB Acquisition assumed approximately $3,200 of debt and capital leases, excluding original issue discounts. In addition, AB Acquisition assumed the underfunded status of NAI’s related share of the multiemployer pension plans to which the Company contributed. AB Acquisition’s portion of the underfunded status of the multiemployer pension plans was estimated to be approximately $1,138 before tax, based on the Company’s estimated “proportionate share” of underfunding calculated as of February 23, 2013. | ||||||||||||
Agreements with NAI | ||||||||||||
In connection with the sale of NAI, the Company entered into various agreements with AB Acquisition LLC and its affiliates related to on-going operations, including the TSA and operating and supply agreements. At the time of the sale of NAI, these arrangements had initial terms ranging from 12 months to five years, and are generally subject to renewal upon mutual agreement by the parties thereto and also include termination provisions that can be exercised by each party. The Company recognized $192, $240 and $42 in TSA fees during fiscal 2015, 2014 and 2013, respectively, including $60 under the first-year transitional fee provisions during fiscal 2014. On April 16, 2015, following discussions with NAI and Albertson’s LLC regarding the impact of Albertson’s LLC’s acquisition of Safeway, Inc. (the “Safeway Acquisition”) and their plans around winding down the TSA, the Company entered into a letter agreement regarding the TSA with NAI and Albertson’s LLC pursuant to which the Company will provide services to NAI and Albertson’s LLC as needed to transition and wind down the TSA. For additional discussion of the TSA and this letter agreement, see “Risk Factors—Changes in the Company’s relationships with NAI, Albertson’s LLC or Haggen could adversely impact the Company’s results of operations” in Part I, Item 1A of this Annual Report on Form 10-K. TSA fees earned are reflected in Net sales in the Consolidated Statements of Operations. The shared service center costs incurred to support back office functions related to the NAI banners represent administrative overhead and are recorded in Selling and administrative expenses. | ||||||||||||
The Company operates a distribution center owned by NAI for an initial term of five years, subject to renewal at the Company's option for two additional five-year terms and certain termination rights for each of the Company and NAI. | ||||||||||||
The Company recorded $177, $174, and $178 within Net sales related to wholesale distribution of certain products to stores owned by Albertson’s LLC that were not NAI banners for fiscal 2015, 2014 and 2013, respectively. Subsequent to the sale of NAI, the Company recorded $38 and $209 within Net sales of continuing operations in the Independent Business segment related to the NAI banners for fiscal 2015 and 2014, respectively. Before the sale of NAI and while NAI was still part of the Company, intercompany sales from the Independent Business segment related to the NAI banners were $19 and $236 for fiscal 2014 and 2013, respectively, which were eliminated upon consolidation. | ||||||||||||
In fiscal 2014, the Company provided certain additional finance and accounting services to NAI and Albertson’s LLC under the TSA. NAI and Albertson’s LLC paid the Company approximately $13 for these services, most of which the Company provided through third parties. | ||||||||||||
Results of Discontinued Operations | ||||||||||||
The Company determined that the continuing cash flows generated by these arrangements are not significant in proportion to the cash flows that the Company would have generated had the NAI Banner sale not occurred, and that the arrangements do not provide the Company the ability to significantly influence the operating or financial policies of the NAI Banners. Accordingly, the above arrangements do not constitute significant continuing involvement in the operations of the NAI Banners. The assets, liabilities, operating results, and cash flows of the NAI Banners have been presented separately as discontinued operations in the Consolidated Financial Statements for all periods presented. | ||||||||||||
During the fourth quarter of fiscal 2013, the Company presented the assets and liabilities of NAI as discontinued operations and accordingly assessed the long-lived assets of the disposal group for impairment by comparing the carrying value of the total net assets of discontinued operations to their estimated fair value based on the proceeds expected to be received and debt expected to be assumed by AB Acquisition pursuant to the Stock Purchase Agreement less the estimated costs to sell. The Company recorded a preliminary estimated pre-tax loss on contract for the disposal of NAI of approximately $1,150 and a pre-tax property, plant and equipment-related impairment of $203. The loss on sale calculation was finalized during fiscal 2014, including the finalization of the working capital adjustment. The total loss on sale of NAI was $1,263, comprised of $1,081 of contract loss and $182 of property, plant and equipment-related impairment, resulting in a $90 pre-tax reduction to the preliminary estimated loss on sale of NAI during fiscal 2014, which was recorded as a component of Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations. The Company determined the pre-tax property, plant and equipment-related impairment using Level 3 inputs. | ||||||||||||
The following is a summary of the Company’s operating results and certain other directly attributable expenses that are included in discontinued operations: | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net sales | $ | — | $ | 1,235 | $ | 17,230 | ||||||
Income (loss) before income taxes from discontinued operations | 6 | 121 | (1,238 | ) | ||||||||
Income tax benefit | (66 | ) | (55 | ) | (35 | ) | ||||||
Income (loss) from discontinued operations, net of tax | $ | 72 | $ | 176 | $ | (1,203 | ) | |||||
Income before income taxes from discontinued operations for fiscal 2015 primarily reflects $6 of property tax refunds and interest income resulting from settlement of income tax audits. The income tax benefit included as a component of Income from discontinued operations, net of tax for fiscal 2015 includes $66 of net tax benefits, primarily related to tangible property repair regulations and other deduction-related changes. | ||||||||||||
The tax rate for the income tax benefit included as a component of Income (loss) from discontinued operations, net of tax for fiscal 2014 included $105 of discrete tax benefits primarily resulting from the settlement of IRS audits for the fiscal 2010, 2009 and 2008 tax years and an adjustment to decrease the loss on sale of NAI reported at February 23, 2013. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 28, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | On April 16, 2015, following discussions with NAI and Albertson’s LLC regarding the impact of Albertson’s LLC’s acquisition of Safeway, Inc. (the “Safeway Acquisition”) and their plans around winding down the TSA, the Company entered into a letter agreement regarding the TSA with NAI and Albertson’s LLC pursuant to which the Company will provide services to NAI and Albertson’s LLC as needed to transition and wind down the TSA. In exchange for these transition and wind down services, the Company will receive eight payments of approximately $6 every six months for aggregate fees of $50. These payments are separate from and incremental to the fixed and variable fees the Company receives under the TSA. The Company estimates that the complete transition and wind down of the TSA could take approximately four years. This estimate is based on the information currently known to the Company and could change materially. For additional discussion of the TSA and this letter agreement, see “Risk Factors—Changes in the Company’s relationships with NAI, Albertson’s LLC or Haggen could adversely impact the Company’s results of operations” in Part I, Item 1A of this Annual Report on Form 10-K. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||
Valuation and Qualifying Accounts | SUPERVALU INC. and Subsidiaries | |||||||||||||
SCHEDULE II—Valuation and Qualifying Accounts | ||||||||||||||
(In millions) | ||||||||||||||
Description | Balance at Beginning of Fiscal Year | Additions | Deductions | Balance at End of Fiscal Year | ||||||||||
Allowance for losses on accounts and notes receivable: | ||||||||||||||
2015 | $ | 19 | 6 | (7 | ) | $ | 18 | |||||||
2014 | 16 | 16 | (13 | ) | 19 | |||||||||
2013 | 13 | 11 | (8 | ) | 16 | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 28, 2015 | |
Accounting Policies [Abstract] | |
Business Description and Principles of Consolidation | Business Description and Principles of Consolidation |
SUPERVALU INC. and its subsidiaries (“SUPERVALU” or the “Company”) operates primarily in the United States grocery channel. SUPERVALU provides supply chain services, primarily wholesale distribution, operates hard discount retail stores and licenses stores to independent operators under the Save-A-Lot banner, and operates five competitive, regionally-based traditional format grocery banners under the Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh and Hornbacher’s banners. The Consolidated Financial Statements include the accounts of the Company and all its wholly and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Fiscal Year | Fiscal Year |
The Company’s fiscal year ends on the last Saturday in February. | |
Use of Estimates | Use of Estimates |
The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could differ from those estimates. | |
Revenue Recognition | Revenue Recognition |
Revenues from product sales are recognized upon delivery for the Independent Business segment, at the point of sale for Save-A-Lot’s retail operations, upon delivery for Save-A-Lot’s independent licensees, and at the point of sale for the Retail Food segment. Typically, invoicing, shipping, delivery and customer receipt of Independent Business product occur on the same business day. Revenues from services rendered are recognized immediately after such services have been provided. Discounts and allowances provided to customers by the Company at the time of sale, including those provided in connection with loyalty cards, are recognized as a reduction in Net sales as the products are sold to customers. Sales tax is excluded from Net sales. | |
Revenues and costs from third-party logistics operations and professional services are recorded gross when the Company is the primary obligor in a transaction, is subject to inventory or credit risk, has latitude in establishing price and selecting suppliers, or has several, but not all, of these indicators. If the Company is not the primary obligor and amounts earned have little or no inventory or credit risk, revenue is recorded net as management fees when earned. | |
Cost of Sales | Cost of Sales |
Cost of sales in the Consolidated Statements of Operations includes cost of inventory sold during the period, including purchasing, receiving, warehousing and distribution costs, and shipping and handling fees. | |
Save-A-Lot and Retail Food advertising expenses are a component of Cost of sales and are expensed as incurred. Save-A-Lot and Retail Food advertising expenses, net of cooperative advertising reimbursements, were $69, $63 and $86 for fiscal 2015, 2014 and 2013, respectively. | |
The Company receives allowances and credits from vendors for volume incentives, promotional allowances and, to a lesser extent, new product introductions, which are typically based on contractual arrangements covering a period of one year or less. The Company recognizes vendor funds for merchandising and buying activities as a reduction of Cost of sales when the related products are sold. Vendor funds that have been earned as a result of completing the required performance under the terms of the underlying agreements but for which the product has not yet been sold are recognized as reductions of inventory. When payments or rebates can be reasonably estimated and it is probable that the specified target will be met, the payment or rebate is accrued. However, when attaining the milestone is not probable, the payment or rebate is recognized only when and if the milestone is achieved. Any upfront payments received for multi-period contracts are generally deferred and amortized on a straight-line basis over the life of the contracts. | |
Selling and Administrative Expenses | Selling and Administrative Expenses |
Selling and administrative expenses consist primarily of store and corporate employee-related costs, such as salaries and wages, incentive compensation, health and welfare and workers' compensation, as well as net periodic pension expense, occupancy costs, including rent, utilities and operating costs of retail stores, depreciation and amortization, impairment charges on property, plant and equipment and other administrative costs. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents includes amounts due from credit card sales transactions that are settled early in the following period. The Company’s banking arrangements allow the Company to fund outstanding checks when presented to the financial institution for payment. The Company funds all intraday bank balance overdrafts during the same business day. Checks outstanding in excess of bank balances create book overdrafts, which are recorded in Accounts payable in the Consolidated Balance Sheets and are reflected as an operating activity in the Consolidated Statements of Cash Flows. | |
Allowances for Losses on Receivables | Allowances for Losses on Receivables |
Management makes estimates of the uncollectibility of its accounts and notes receivable portfolios. In determining the adequacy of the allowances, management analyzes the value of the collateral, customer financial statements, historical collection experience, aging of receivables and other economic and industry factors. It is possible that the accuracy of the estimation process could be materially impacted by different judgments, estimations and assumptions based on the information considered and result in a further deterioration of accounts and notes receivable. | |
Inventories, Net | Inventories, Net |
Inventories are valued at the lower of cost or market. Substantially all of the Company’s inventory consists of finished goods. | |
The Company uses the weighted average cost method, the retail inventory method (“RIM”) or replacement cost method to value discrete inventory items at lower of cost or market under the first-in, first-out (“FIFO”) method before application of any last-in, first-out (“LIFO”) reserve. As of February 28, 2015 and February 22, 2014, approximately 55 percent and 57 percent, respectively, of the Company’s inventories were valued under the LIFO method. | |
As of February 28, 2015 and February 22, 2014, approximately 5 percent of the Company’s inventories were valued under the replacement cost method before application of any LIFO reserve. The weighted average cost and RIM methods of inventory valuation together comprised approximately 50 percent and 52 percent of inventory as of February 28, 2015 and February 22, 2014, respectively, before application of any LIFO reserve. | |
Under the replacement cost method applied on a LIFO basis, the most recent purchase cost is used to calculate the current cost of inventory before application of any LIFO reserve. The replacement cost approach results in inventories being valued at the lower of cost or market because of the high inventory turnover and the resulting low inventory days supply on hand combined with infrequent vendor price changes for these items of inventory. | |
The replacement cost approach under the FIFO method is predominantly utilized in determining the value of high turnover perishable items, including produce, deli, bakery, meat and floral. | |
As of February 28, 2015 and February 22, 2014, approximately 26 percent and 25 percent, respectively, of the Company’s inventories were valued using the cost, weighted average cost and RIM methods under the FIFO method of inventory accounting. The remaining 19 percent and 18 percent of the Company’s inventories as of February 28, 2015 and February 22, 2014, respectively, were valued using the replacement cost approach under the FIFO method of inventory accounting. The replacement cost approach applied under the FIFO method results in inventories recorded at the lower of cost or market because of the very high inventory turnover and the resulting low inventory days supply for these items of inventory. | |
During fiscal 2014 and 2013, inventory quantities in certain LIFO layers were reduced. These reductions resulted in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the cost of fiscal 2014 and 2013 purchases. As a result, Cost of sales decreased by $14 and $6 in fiscal 2014 and 2013, respectively. If the FIFO method had been used to determine cost of inventories for which the LIFO method is used, the Company’s inventories would have been higher by approximately $211 and $202 as of February 28, 2015 and February 22, 2014, respectively. | |
The Company evaluates inventory shortages throughout each fiscal year based on actual physical counts in its facilities. Allowances for inventory shortages are recorded based on the results of these counts to provide for estimated shortages as of the end of each fiscal year. | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Property, plant and equipment are carried at cost. Depreciation is based on the estimated useful lives of the assets using the straight-line method. Estimated useful lives generally are ten to 40 years for buildings and major improvements, three to ten years for equipment, and the shorter of the term of the lease or expected life for leasehold improvements and capitalized lease assets. | |
Business Dispositions | Business Dispositions |
The Company reviews the presentation of planned business dispositions in the Consolidated Financial Statements based on the available information and events that have occurred. | |
The review consists of evaluating whether the business meets the definition as a component for which the operations and cash flows are clearly distinguishable from the other components of the business, and if so, whether it is anticipated that after the disposal the cash flows of the component would be eliminated from continuing operations and whether the Company will have any significant continuing involvement with the business. In addition, the Company evaluates whether the business has met the criteria to be classified as a business held for sale. In order for a planned disposition to be classified as a business held for sale, the established criteria must be met as of the reporting date, including an active program to market the business and the expected disposition of the business within one year. | |
Planned business dispositions are presented as discontinued operations when all the criteria described above are met. Operations of the business components meeting the discontinued operations requirements are presented within Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations, and assets and liabilities of the business component planned to be disposed of are presented as separate lines within the Consolidated Balance Sheets. See Note 16—Discontinued Operations for additional information. | |
Businesses held for sale are reviewed for recoverability of the carrying value of the business upon meeting the classification requirements. Evaluating the recoverability of the assets of a business classified as held for sale follows a defined order in which property and intangible assets subject to amortization are considered only after the recoverability of goodwill, indefinite lived intangible assets and other assets are assessed. After the valuation process is completed, the held for sale business is reported at the lower of its carrying value or fair value less cost to sell, and no additional depreciation or amortization expense is recognized. The carrying value of a held for sale business includes the portion of the accumulated other comprehensive loss associated with pension and postretirement benefit obligations of the operations of the business. | |
There are inherent judgments and estimates used in determining impairment charges. The sale of a business can result in the recognition of a gain or loss that differs from that anticipated prior to closing. | |
Goodwill | Goodwill |
The Company reviews goodwill for impairment during the fourth quarter of each year, and also if events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. The reviews consist of comparing estimated fair value to the carrying value at the reporting unit level. The Company’s reporting units are the operating segments of the business which consist of Independent Business, Save-A-Lot and Retail Food. Fair values are determined by using both the market approach, applying a multiple of earnings and revenue based on guidelines for publicly traded companies, and the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflect a weighted average cost of capital based on the Company’s industry, capital structure and risk premiums in each reporting unit, including those reflected in the current market capitalization. If management identifies the potential for impairment of goodwill, the implied fair value of the goodwill is calculated as the difference between the fair value of the reporting unit and the fair value of the underlying assets and liabilities, excluding goodwill. An impairment charge is recorded for any excess of the carrying value over the implied fair value. | |
The Company reviews the composition of its reporting units on an annual basis and on an interim basis if events or circumstances indicate that the composition of the Company’s reporting units may have changed. | |
Intangible Assets, Net | Intangible Assets, Net |
The Company reviews intangible assets with indefinite useful lives, which primarily consist of trademarks and tradenames, for impairment during the fourth quarter of each year, and also if events or changes in circumstances indicate that the asset might be impaired. The reviews consist of comparing estimated fair value to the carrying value. Fair values of the Company’s trademarks and tradenames are determined primarily by discounting an assumed royalty value applied to management’s estimate of projected future revenues associated with the tradename using management’s expectations of the current and future operating environment. The royalty cash flows are discounted using rates based on the weighted average cost of capital discussed above and the specific risk profile of the tradenames relative to the Company’s other assets. These estimates are impacted by variable factors, including inflation, the general health of the economy and market competition. The calculation of the impairment charge contains significant judgments and estimates, including the weighted average cost of capital and the specified risk profile of the tradename and future revenue and profitability. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
The Company monitors the recoverability of its long-lived assets such as buildings and equipment, and evaluates their carrying value for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Events that may trigger such an evaluation include current period losses combined with a history of losses or a projection of continuing losses, a significant decrease in the market value of an asset or the Company’s plans for store closures. When such events or changes in circumstances occur, a recoverability test is performed by comparing projected undiscounted future cash flows to the carrying value of the group of assets being tested. | |
If impairment is identified for long-lived assets to be held and used, the fair value is compared to the carrying value of the group of assets and an impairment charge is recorded for the excess of the carrying value over the fair value. For long-lived assets that are classified as assets held for sale, the Company recognizes impairment charges for the excess of the carrying value plus estimated costs of disposal over the estimated fair value. Fair value is based on current market values or discounted future cash flows using Level 3 inputs. The Company estimates fair value based on the Company’s experience and knowledge of the market in which the property is located and, when necessary, utilizes local real estate brokers. The Company’s estimate of undiscounted cash flows attributable to the asset groups includes only future cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset group. Long-lived asset impairment charges are a component of Selling and administrative expenses in the Consolidated Statements of Operations. | |
The Company groups long-lived assets with other assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets, which historically has predominately been at the geographic market level for retail stores, but individual store asset groupings have been assessed in certain circumstances. Independent Business’s long-lived assets are reviewed for impairment at the distribution center level. Save-A-Lot’s long-lived assets are reviewed for impairment at the geographic market level for 13 geographic market groupings of individual corporate-owned stores and related dedicated distribution centers, individual corporate store level for 28 individual corporate stores, which were part of previous asset groups for which management determined that the cash flows in those geographic market areas were no longer interdependent and at the distribution center level for two distribution centers without corporate stores. Retail Food’s long-lived assets are reviewed for impairment at the geographic market group level for five geographic market groupings of individual retail stores. | |
During fiscal 2013, the Company determined it would be more appropriate to evaluate long-lived assets for impairment at the store level for two geographic markets within the Save-A-Lot segment. These markets continued to show higher indicators of economic decline that led to revised operating market strategies, such as the identification of a significant number of stores for closure within one geographic market asset group and a determination that Save-A-Lot was no longer expanding or maintaining another geographic market group. As such, these geographic market groups were not generating joint cash flows from the operation of the asset group, resulting in the disaggregation of the asset groups. These asset group disaggregations triggered a store-level impairment review within these previous geographic market asset groups, which resulted in a non-cash impairment charge of approximately $8 in fiscal 2013. | |
Due to the ongoing business transformation and highly competitive environment, the Company will continue to evaluate its long-lived asset policy and current asset groups to determine if additional modifications to the policy are necessary. Future changes to the Company’s assessment of its long-lived asset policy and changes in circumstances, operating results or other events may result in additional asset impairment testing and charges. | |
Reserves for Closed Properties | Reserves for Closed Properties |
The Company maintains reserves for costs associated with closures of retail stores, distribution centers and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using a discount rate to calculate the present value of the remaining noncancellable lease payments after the closing date, reduced by estimated subtenant rentals that could be reasonably obtained for the property. Lease reserve impairment charges are recorded as a component of Selling and administrative expenses in the Consolidated Statements of Operations. | |
The closed property lease liabilities usually are paid over the remaining lease terms, which generally range from one to 15 years. Adjustments to closed property reserves primarily relate to changes in subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. | |
The calculation of the closed property charges requires significant judgments and estimates, including estimated subtenant rentals, discount rates and future cash flows based on the Company’s experience and knowledge of the market in which the closed property is located, previous efforts to dispose of similar assets and the assessment of existing market conditions. Reserves for closed properties are included in Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. | |
Deferred Rent | Deferred Rent |
The Company recognizes rent holidays, including the time period during which the Company has access to the property prior to the opening of the site, as well as construction allowances and escalating rent provisions, on a straight-line basis over the term of the operating lease. The deferred rents are included in Other current liabilities and Other long-term liabilities in the Consolidated Balance Sheets. | |
Self Insurance Liabilities | Self-Insurance Liabilities |
The Company uses a combination of insurance and self-insurance for workers’ compensation, automobile and general liability costs. It is the Company’s policy to record its insurance liabilities based on management’s estimate of the ultimate cost of reported claims and claims incurred but not yet reported and related expenses, discounted at a risk-free interest rate. | |
The current portion of reserves for self-insurance is included in Other current liabilities and the long-term portion is included in Other long-term liabilities in the Consolidated Balance Sheets. | |
Benefit Plans | Benefit Plans |
The Company recognizes the funded status of its Company-sponsored defined benefit plans in its Consolidated Balance Sheets and gains or losses and prior service costs or credits not yet recognized as a component of Other comprehensive income (loss), net of tax, in the Consolidated Statements of Stockholders’ (Deficit) Equity. The Company sponsors pension and other postretirement plans in various forms covering substantially all employees who meet eligibility requirements. The determination of the Company’s obligation and related expense for Company-sponsored pension and other postretirement benefits is dependent, in part, on management’s selection of certain actuarial assumptions in calculating these amounts. These assumptions include, among other things, the discount rate, the expected long-term rate of return on plan assets and the rates of increase in compensation and healthcare costs. These assumptions are disclosed in Note 11—Benefit Plans. Actual results that differ from the assumptions are accumulated and amortized over future periods in accordance with generally accepted accounting standards. | |
The Company contributes to various multiemployer pension plans under collective bargaining agreements, primarily defined benefit pension plans. Pension expense for these plans is recognized as contributions are funded. See Note 11—Benefit Plans for additional information on the Company’s participation in multiemployer plans. | |
The Company also contributes to several employee 401(k) retirement savings plans. | |
Derivatives | Derivatives |
The Company uses derivatives only to manage well-defined risks. The Company does not use financial instruments or derivatives for any trading or other speculative purposes. | |
Interest rate swap contracts are entered into to mitigate the Company's exposure to changes in market interest rates. These contracts are reviewed for hedging effectiveness at hedge inception and on an ongoing basis. If these contracts are designated as a cash flow hedge and are determined to be highly effective, changes in the fair value of these instruments are recognized in Other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss). Hedging ineffectiveness, if any, is recognized in earnings in the Consolidated Statements of Operations. | |
The Company’s limited involvement with diesel fuel derivatives is primarily to manage its exposure to changes in energy prices utilized in the shipping process. These contracts are economic hedges of price risk and are not designated or accounted for as hedging instruments for accounting purposes. Changes in the fair value of these instruments are recognized in earnings in the Consolidated Statements of Operations. | |
In addition, Company enters into energy commitments for certain electricity and natural gas purchases that it expects to utilize in the normal course of business. Changes in these purchase obligations are not recognized in earnings until the underlying commitment is utilized in the normal course of business | |
Stock-Based Compensation | Stock-Based Compensation |
The Company uses the straight-line method to recognize stock-based compensation expense over the requisite service period related to each award. Stock-based compensation expense is measured by the fair value of the award on the date of grant, net of the estimated forfeiture rate. | |
The fair value of stock options is estimated as of the date of grant using the Black-Scholes option pricing model using Level 3 inputs. The estimation of the fair value of stock options incorporates certain assumptions, such as the risk-free interest rate and expected volatility, dividend yield and life of options. Restricted stock awards and units are recorded as stock-based compensation expense over the requisite service period based on the market value of the Company's common stock on the date of grant. | |
Income Taxes | Income Taxes |
Deferred income taxes represent future net tax effects resulting from temporary differences between the financial statement amounts and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which the differences are expected to be settled or realized. See Note 9—Income Taxes for the types of differences that give rise to significant portions of deferred income tax assets and liabilities. Deferred income tax assets are reported as a current or noncurrent asset or liability based on the classification of the related asset or liability or according to the expected date of reversal. | |
The Company is currently in various stages of audits, appeals or other methods of review with authorities from various taxing jurisdictions. The Company establishes liabilities for unrecognized tax benefits in a variety of taxing jurisdictions when, despite management’s belief that the Company’s tax return positions are supportable, certain positions may be challenged and may need to be revised. The Company adjusts these liabilities in light of changing facts and circumstances, such as the progress of a tax audit. The Company also provides interest on these liabilities at the appropriate statutory interest rate, and accrues penalties as applicable. The Company recognizes interest related to unrecognized tax benefits in Interest expense and penalties in Selling and administrative expenses in the Consolidated Statements of Operations. | |
Common and Treasury Stock | Common and Treasury Stock |
Concurrent with the execution of the Stock Purchase Agreement, the Company entered into a Tender Offer Agreement (the “Tender Offer Agreement”) with Symphony Investors LLC, which is owned by a Cerberus Capital Management, L.P. (“Cerberus”)-led investor consortium (“Symphony Investors”), and Cerberus, pursuant to which, upon the terms and subject to the conditions of the Tender Offer Agreement, and contingent upon the NAI Banner Sale, Symphony Investors tendered for up to 30 percent of the issued and outstanding common stock of the Company at a purchase price of $4.00 per share in cash (the “Tender Offer”). Approximately 12 shares were validly tendered, representing approximately 5.5 percent of the issued and outstanding shares at the time of the Tender Offer expiration on March 20, 2013. All shares that were validly tendered and not properly withdrawn were accepted as tendered in accordance with the terms of Tender Offer. | |
In addition, pursuant to the terms of the Tender Offer Agreement, on March 21, 2013, the Company issued approximately 42 additional shares of common stock (representing approximately 19.9 percent of the outstanding shares prior to the share issuance) to Symphony Investors at the Tender Offer price per share of $4.00, resulting in $170 in cash proceeds to the Company, which brought Symphony Investors' ownership percentage to 21.2 percent after the share issuance. The Tender Offer Agreement provides that until the second anniversary of the closing of the Tender Offer, which was March 21, 2015, transfers of shares acquired by Symphony Investors in the Tender Offer and from the Company pursuant to the Tender Offer Agreement were generally restricted, with more limited restrictions thereafter. The Company has agreed to customary obligations to register the shares acquired by Symphony Investors with the Securities and Exchange Commission if requested by Symphony Investors. | |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under accounting standard update (“ASU”) 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, A Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward (“NOL”) or tax credit carryforward whenever the NOL or tax credit carryforward would be available to reduce the additional taxable income or tax due if the tax position is disallowed. This ASU requires entities to assess whether to net the unrecognized tax benefit with a deferred tax asset as of the reporting date. The Company adopted ASU 2013-11 in the first quarter of fiscal 2015, which resulted in a reclassification of $1 of unrecognized tax benefits and other credits against deferred tax assets. | |
In April 2014, the FASB issued authoritative guidance under ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under this ASU, disposals classified as discontinued operations must represent a strategic shift that is expected to have a major effect on operations and financial results. The ASU no longer precludes presentation as discontinued operations if there is significant continuing involvement after disposal. Certain disclosures for disposals of individually significant components of an entity that do not qualify for discontinued operations presentation are also required. This ASU is effective prospectively for disposals that have not been reported in previously issued financial statements. The Company adopted ASU 2014-08 in fiscal 2015 and the adoption did not have an impact on the Company’s Consolidated Financial Statements. | |
Recently Issued Accounting Standards | |
In May 2014, the FASB issued authoritative guidance under ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model and requires entities to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU will be adopted by the Company during the first quarter of fiscal 2018. Adoption is allowed by either the full retrospective or modified retrospective approach. The Company believes it will apply the modified retrospective approach and is currently evaluating the potential impact of adoption on its Consolidated Financial Statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Changes in the Company's Self-Insurance Liabilities | Changes in the Company’s insurance liabilities consisted of the following: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 103 | $ | 97 | $ | 93 | ||||||
Expense | 31 | 34 | 29 | |||||||||
Claim payments | (32 | ) | (33 | ) | (27 | ) | ||||||
Reclassification of insurance recoveries to receivables | (9 | ) | 5 | 2 | ||||||||
Ending balance | 93 | 103 | 97 | |||||||||
Less current portion | (30 | ) | (33 | ) | (27 | ) | ||||||
Long-term portion | $ | 63 | $ | 70 | $ | 70 | ||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Changes in Company's Goodwill and Intangible Assets | Changes in the Company’s Goodwill and Intangible assets, net consisted of the following: | |||||||||||||||||||||||||||||||||||
February 23, | Additions | Impairments | Other net | February 22, | Additions | Impairments | Other net | February 28, | ||||||||||||||||||||||||||||
2013 | adjustments | 2014 | adjustments | 2015 | ||||||||||||||||||||||||||||||||
Goodwill: | ||||||||||||||||||||||||||||||||||||
Independent Business | $ | 710 | $ | — | $ | — | $ | — | $ | 710 | $ | — | $ | — | $ | — | $ | 710 | ||||||||||||||||||
Save-A-Lot | 137 | — | — | — | 137 | 4 | — | — | 141 | |||||||||||||||||||||||||||
Retail Food | — | — | — | — | — | 14 | — | — | 14 | |||||||||||||||||||||||||||
Total goodwill | $ | 847 | $ | — | $ | — | $ | — | $ | 847 | $ | 18 | $ | — | $ | — | $ | 865 | ||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||||||||||||
Favorable operating leases, prescription files, customer lists and other (accumulated amortization of $86 and $78 as of February 28, 2015 and February 22, 2014, respectively) | $ | 106 | $ | — | $ | — | $ | 5 | $ | 111 | $ | 13 | $ | — | $ | — | $ | 124 | ||||||||||||||||||
Tradenames and trademarks—indefinite useful lives | 9 | — | — | — | 9 | — | — | — | 9 | |||||||||||||||||||||||||||
Non-compete agreements (accumulated amortization of $2 and $2 as of February 28, 2015 and February 22, 2014, respectively) | 3 | — | — | — | 3 | — | — | — | 3 | |||||||||||||||||||||||||||
Total intangible assets | 118 | — | — | 5 | 123 | 13 | — | — | 136 | |||||||||||||||||||||||||||
Accumulated amortization | (67 | ) | (8 | ) | — | (5 | ) | (80 | ) | (8 | ) | — | — | (88 | ) | |||||||||||||||||||||
Total intangible assets, net | $ | 51 | $ | 43 | $ | 48 | ||||||||||||||||||||||||||||||
RESERVES_FOR_CLOSED_PROPERTIES1
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Changes in Company's Reserves | Changes in the Company’s reserves for closed properties consisted of the following: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 47 | $ | 61 | $ | 72 | ||||||
Additions | 4 | 4 | 16 | |||||||||
Payments | (12 | ) | (16 | ) | (22 | ) | ||||||
Adjustments | (5 | ) | (2 | ) | (5 | ) | ||||||
Ending balance | $ | 34 | $ | 47 | $ | 61 | ||||||
Fair Value Measurements, Nonrecurring | The following table presents impairment charges related to property, plant and equipment measured at fair value on a non-recurring basis: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Property, plant and equipment: | ||||||||||||
Carrying value | $ | 4 | $ | 45 | $ | 291 | ||||||
Fair value measured using Level 3 inputs | 1 | 21 | 40 | |||||||||
Impairment charge | $ | 3 | $ | 24 | $ | 251 | ||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Components of Property, Plant and Equipment | Property, plant and equipment, net, consisted of the following: | |||||||
2015 | 2014 | |||||||
Land | $ | 104 | $ | 97 | ||||
Buildings | 1,252 | 1,224 | ||||||
Property under construction | 71 | 34 | ||||||
Leasehold improvements | 709 | 693 | ||||||
Equipment | 2,021 | 1,959 | ||||||
Capitalized lease assets | 314 | 315 | ||||||
Total property, plant and equipment | 4,471 | 4,322 | ||||||
Accumulated depreciation | (2,779 | ) | (2,618 | ) | ||||
Accumulated amortization on capitalized lease assets | (222 | ) | (207 | ) | ||||
Total property, plant and equipment, net | $ | 1,470 | $ | 1,497 | ||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt and Capital Lease Obligations | The Company’s long-term debt consisted of the following: | |||||||
February 28, | February 22, | |||||||
2015 | 2014 | |||||||
4.50% Secured Term Loan Facility due March 2019 | $ | 1,469 | $ | 1,474 | ||||
6.75% Senior Notes due June 2021 | 400 | 400 | ||||||
7.75% Senior Notes due November 2022 | 350 | — | ||||||
8.00% Senior Notes due May 2016 | 278 | 628 | ||||||
1.66% to 4.00% Revolving ABL Credit Facility due September 2019 | — | — | ||||||
Other | — | 18 | ||||||
Net discount on debt, using an effective interest rate of 4.63% to 8.56% | (8 | ) | (16 | ) | ||||
Total debt | 2,489 | 2,504 | ||||||
Less current maturities of long-term debt | (9 | ) | (18 | ) | ||||
Long-term debt | $ | 2,480 | $ | 2,486 | ||||
Future Maturities of Long-Term Debt, Excluding Net Discount on Debt | Future maturities of long-term debt, excluding the net discount on debt, as of February 28, 2015 consist of the following: | |||||||
Fiscal Year | ||||||||
2016 | $ | 10 | ||||||
2017 | 293 | |||||||
2018 | 15 | |||||||
2019 | 15 | |||||||
2020 | 1,414 | |||||||
Thereafter | 750 | |||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Leases [Abstract] | ||||||||||||
Future Minimum Lease and Subtenant Rentals Under Noncancellable Leases | Future minimum lease payments to be made by the Company for noncancellable operating leases and capital leases as of February 28, 2015 consist of the following: | |||||||||||
Lease Obligations | ||||||||||||
Fiscal Year | Operating Leases | Capital Leases | ||||||||||
2016 | $ | 129 | $ | 45 | ||||||||
2017 | 119 | 43 | ||||||||||
2018 | 99 | 41 | ||||||||||
2019 | 80 | 38 | ||||||||||
2020 | 60 | 35 | ||||||||||
Thereafter | 152 | 130 | ||||||||||
Total future minimum obligations | $ | 639 | 332 | |||||||||
Less interest | (93 | ) | ||||||||||
Present value of net future minimum obligations | 239 | |||||||||||
Less current capital lease obligations | (26 | ) | ||||||||||
Long-term capital lease obligations | $ | 213 | ||||||||||
Rent Expense and Subtenant Rentals | Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Minimum rent | $ | 148 | $ | 143 | $ | 143 | ||||||
Contingent rent | 6 | 5 | 6 | |||||||||
Rent expense | 154 | 148 | 149 | |||||||||
Less subtenant rentals | (29 | ) | (27 | ) | (29 | ) | ||||||
Total net rent expense | $ | 125 | $ | 121 | $ | 120 | ||||||
Noncancellable Operating Leases and Capital Leases | Future minimum lease and subtenant rentals to be received under noncancellable operating and deferred financing income leases, under which the Company is the lessor, as of February 28, 2015, consist of the following: | |||||||||||
Lease Receipts | ||||||||||||
Fiscal Year | Operating Leases | Direct Financing Leases | ||||||||||
2016 | $ | 25 | $ | 1 | ||||||||
2017 | 23 | 1 | ||||||||||
2018 | 18 | 1 | ||||||||||
2019 | 12 | — | ||||||||||
2020 | 7 | — | ||||||||||
Thereafter | 17 | — | ||||||||||
Total minimum lease receipts | $ | 102 | 3 | |||||||||
Less interest | — | |||||||||||
Net investment in direct financing leases | 3 | |||||||||||
Less current portion | (1 | ) | ||||||||||
Long-term portion | $ | 2 | ||||||||||
Carrying Value of Owned Property Leased to Third Parties Under Operating Leases | The carrying value of owned property leased to third parties under operating leases was as follows: | |||||||||||
2015 | 2014 | |||||||||||
Property, plant and equipment | $ | 4 | $ | 4 | ||||||||
Less accumulated depreciation | (3 | ) | (3 | ) | ||||||||
Property, plant and equipment, net | $ | 1 | $ | 1 | ||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Provision for Income Taxes | The provision (benefit) for income taxes consisted of the following: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Current | ||||||||||||
Federal | $ | 35 | $ | 30 | $ | (98 | ) | |||||
State | 7 | 5 | (9 | ) | ||||||||
Total current | 42 | 35 | (107 | ) | ||||||||
Deferred | 16 | (30 | ) | (56 | ) | |||||||
Total income tax provision (benefit) | $ | 58 | $ | 5 | $ | (163 | ) | |||||
Difference Between Actual Tax Provision and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Losses Before Income Taxes | The difference between the actual tax provision (benefit) and the tax provision computed by applying the statutory federal income tax rate to Earnings (loss) from continuing operations before income taxes is attributable to the following: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Federal taxes (benefit) based on statutory rate | $ | 62 | $ | 4 | $ | (149 | ) | |||||
State income taxes, net of federal benefit | 12 | — | (13 | ) | ||||||||
Tax contingency | (1 | ) | (1 | ) | 1 | |||||||
Change in valuation allowance | — | (1 | ) | (3 | ) | |||||||
Pension | (8 | ) | — | — | ||||||||
Other | (7 | ) | 3 | 1 | ||||||||
Total income tax provision (benefit) | $ | 58 | $ | 5 | $ | (163 | ) | |||||
Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities consisted of the following: | |||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Compensation and benefits | $ | 234 | $ | 224 | ||||||||
Self-insurance | 25 | 24 | ||||||||||
Property, plant and equipment and capitalized lease assets | 72 | 132 | ||||||||||
Loss on sale of discontinued operations | 1,387 | 1,339 | ||||||||||
Net operating loss carryforwards | 19 | 23 | ||||||||||
Other | 69 | 80 | ||||||||||
Gross deferred tax assets | 1,806 | 1,822 | ||||||||||
Valuation allowance | (1,404 | ) | (1,356 | ) | ||||||||
Total deferred tax assets | 402 | 466 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment and capitalized lease assets | (88 | ) | (147 | ) | ||||||||
Inventories | (14 | ) | (40 | ) | ||||||||
Intangible assets | (27 | ) | (25 | ) | ||||||||
Other | (23 | ) | (16 | ) | ||||||||
Total deferred tax liabilities | (152 | ) | (228 | ) | ||||||||
Net deferred tax asset | $ | 250 | $ | 238 | ||||||||
Net deferred tax assets are recorded in the Consolidated Balance Sheets as follows: | ||||||||||||
2015 | 2014 | |||||||||||
Deferred tax assets | $ | 265 | $ | 287 | ||||||||
Other current liabilities | (15 | ) | (49 | ) | ||||||||
Net deferred tax asset | $ | 250 | $ | 238 | ||||||||
Changes in Company's Unrecognized Tax Benefits | Changes in the Company’s unrecognized tax benefits consisted of the following: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Beginning balance | $ | 76 | $ | 187 | $ | 165 | ||||||
Increase based on tax positions related to the current year | 15 | 15 | 5 | |||||||||
Decrease based on tax positions related to the current year | — | — | (1 | ) | ||||||||
Increase based on tax positions related to prior years | 15 | 8 | 82 | |||||||||
Decrease based on tax positions related to prior years | (4 | ) | (2 | ) | (58 | ) | ||||||
Decrease related to settlements with taxing authorities | (3 | ) | (128 | ) | (3 | ) | ||||||
Decrease due to lapse of statute of limitations | (5 | ) | (4 | ) | (3 | ) | ||||||
Ending balance | $ | 94 | $ | 76 | $ | 187 | ||||||
STOCKBASED_AWARDS_Tables
STOCK-BASED AWARDS (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock Options Granted, Exercised and Outstanding | Stock options granted, exercised and outstanding consisted of the following: | ||||||||||||
Shares Under Option | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||
Outstanding, February 25, 2012 | 18,413 | $ | 28.9 | 2.62 | $ | — | |||||||
Granted | 9,370 | 2.54 | |||||||||||
Exercised | (9 | ) | 2.28 | ||||||||||
Canceled and forfeited | (5,528 | ) | 23.32 | ||||||||||
Outstanding, February 23, 2013 | 22,246 | 19.2 | 4.63 | $ | 10,402 | ||||||||
Granted | 10,083 | 6.58 | |||||||||||
Exercised | (3,121 | ) | 2.29 | ||||||||||
Canceled and forfeited | (5,873 | ) | 23.7 | ||||||||||
Outstanding, February 22, 2014 | 23,335 | 14.87 | 5.41 | $ | 15,982 | ||||||||
Granted | 5,022 | 7.54 | |||||||||||
Exercised | (1,944 | ) | 3.71 | ||||||||||
Canceled and forfeited | (5,533 | ) | 30.68 | ||||||||||
Outstanding, February 28, 2015 | 20,880 | $ | 9.98 | 6.55 | $ | 61,073 | |||||||
Vested and expected to vest in the future as of February 28, 2015 | 19,681 | $ | 10.16 | 6.41 | $ | 57,694 | |||||||
Exercisable as of February 28, 2015 | 10,018 | $ | 13.51 | 4.31 | $ | 26,826 | |||||||
Assumptions Related to Valuation of Company's LTIP/Stock Options | The Company used the Black Scholes option pricing model to estimate the fair value of the options at grant date based upon the following assumptions: | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Dividend yield | — | % | — | % | 1.0 – 2.1% | ||||||||
Volatility rate | 50.8 – 53.2% | 49.3 – 51.3% | 42.3 – 61.2% | ||||||||||
Risk-free interest rate | 1.2 – 1.6% | 0.6 – 1.0% | 0.4 – 0.6% | ||||||||||
Expected option life | 4.0 – 5.0 years | 4.0 – 6.0 years | 4.5 – 6.0 years | ||||||||||
Restricted Stock Awards Activities | Restricted stock awards and restricted stock unit activity consisted of the following: | ||||||||||||
Restricted Stock Units | Restricted Stock Awards | Weighted Average Grant Date Fair Value(1) | |||||||||||
(In thousands) | (In thousands) | ||||||||||||
Outstanding, February 25, 2012 | 151 | 444 | $ | 17.96 | |||||||||
Granted | 894 | 1,482 | 6.05 | ||||||||||
Lapsed | (64 | ) | (220 | ) | 10.03 | ||||||||
Canceled and forfeited | (9 | ) | (263 | ) | 10.19 | ||||||||
Outstanding, February 23, 2013 | 972 | 1,443 | 7.83 | ||||||||||
Granted | 296 | 491 | 6.98 | ||||||||||
Lapsed | (1,268 | ) | (967 | ) | 6.23 | ||||||||
Canceled and forfeited | — | (30 | ) | 6.08 | |||||||||
Outstanding, February 22, 2014 | — | 937 | 9.09 | ||||||||||
Granted | 2,274 | 18 | 7.11 | ||||||||||
Lapsed | (133 | ) | (417 | ) | 6.54 | ||||||||
Canceled and forfeited | (90 | ) | (2 | ) | 6.09 | ||||||||
Outstanding, February 28, 2015 | 2,051 | 536 | $ | 11.02 | |||||||||
Components of Pre-Tax Stock-Based Compensation Expense and Related Tax Benefits | The components of pre-tax stock-based compensation expense are included primarily in Selling and administrative expenses in the Consolidated Statements of Operations. The expense recognized and related tax benefits were as follows: | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Stock-based compensation | $ | 23 | $ | 22 | $ | 13 | |||||||
Income tax benefits | (9 | ) | (8 | ) | (5 | ) | |||||||
Stock-based compensation, net of tax | $ | 14 | $ | 14 | $ | 8 | |||||||
BENEFIT_PLANS_Tables
BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||
Benefit Obligation, Fair Value of Plan Assets and Funded Status of Defined Benefit Pension Plans and Other Postretirement Benefit Plans | The benefit obligation, fair value of plan assets and funded status of the defined benefit pension plans and other postretirement benefit plans consisted of the following: | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 2,726 | $ | 2,893 | $ | 81 | $ | 109 | ||||||||||||||||||
Plan amendment | — | — | (5 | ) | (11 | ) | ||||||||||||||||||||
Service cost | — | — | 1 | 2 | ||||||||||||||||||||||
Interest cost | 121 | 121 | 4 | 4 | ||||||||||||||||||||||
Actuarial loss (gain) | 371 | (141 | ) | 5 | (12 | ) | ||||||||||||||||||||
Settlements paid | (272 | ) | — | — | — | |||||||||||||||||||||
Benefits paid | (97 | ) | (147 | ) | (4 | ) | (6 | ) | ||||||||||||||||||
Other | — | — | — | (5 | ) | |||||||||||||||||||||
Benefit obligation at end of year | 2,849 | 2,726 | 82 | 81 | ||||||||||||||||||||||
Changes in Plan Assets | ||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 2,261 | 2,031 | — | — | ||||||||||||||||||||||
Actual return on plan assets | 260 | 259 | — | — | ||||||||||||||||||||||
Employer contributions | 165 | 118 | 4 | 6 | ||||||||||||||||||||||
Plan participants’ contributions | — | — | 3 | 3 | ||||||||||||||||||||||
Settlements paid | (272 | ) | — | — | — | |||||||||||||||||||||
Benefits paid | (97 | ) | (147 | ) | (7 | ) | (9 | ) | ||||||||||||||||||
Other | — | — | 4 | — | ||||||||||||||||||||||
Fair value of plan assets at end of year | 2,317 | 2,261 | 4 | — | ||||||||||||||||||||||
Unfunded status at end of year | $ | (532 | ) | $ | (465 | ) | $ | (78 | ) | $ | (81 | ) | ||||||||||||||
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets consist of the following: | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Accrued vacation, compensation and benefits | $ | (2 | ) | $ | (3 | ) | $ | (6 | ) | $ | (6 | ) | ||||||||||||||
Pension and other postretirement benefit obligations | (530 | ) | (462 | ) | (72 | ) | (75 | ) | ||||||||||||||||||
Total | $ | (532 | ) | $ | (465 | ) | $ | (78 | ) | $ | (81 | ) | ||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consisted of the following: | ||||||||||||||||||||||||||
Post-Employment Benefits | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Accrued vacation, compensation and benefits | $ | 8 | $ | 9 | ||||||||||||||||||||||
Other long-term liabilities | 10 | 15 | ||||||||||||||||||||||||
Total | $ | 18 | $ | 24 | ||||||||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Losses for Defined Benefit Pension Plans and Other Postretirement Benefit Plans | Amounts recognized in Accumulated other comprehensive loss for the defined benefit pension and other postretirement benefit plans consist of the following: | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Prior service benefit | $ | — | $ | — | $ | 45 | $ | 55 | ||||||||||||||||||
Net actuarial loss | (696 | ) | (567 | ) | (28 | ) | (25 | ) | ||||||||||||||||||
Total recognized in Accumulated other comprehensive loss | $ | (696 | ) | $ | (567 | ) | $ | 17 | $ | 30 | ||||||||||||||||
Total recognized in Accumulated other comprehensive loss, net of tax | $ | (432 | ) | $ | (324 | ) | $ | 9 | $ | 17 | ||||||||||||||||
Net Periodic Benefit Cost (Income) and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) for Defined Benefit Pension and Other Postretirement Benefit Plans | Net periodic benefit cost (income) and other changes in plan assets and benefit obligations recognized in Other comprehensive (loss) income for defined benefit pension and other postretirement benefit plans consist of the following: | |||||||||||||||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 1 | $ | 2 | $ | 2 | ||||||||||||||
Interest cost | 121 | 121 | 123 | 4 | 4 | 5 | ||||||||||||||||||||
Expected return on plan assets | (149 | ) | (141 | ) | (133 | ) | — | — | — | |||||||||||||||||
Amortization of prior service benefit | — | — | — | (16 | ) | (13 | ) | (12 | ) | |||||||||||||||||
Amortization of net actuarial loss | 68 | 101 | 111 | 3 | 5 | 6 | ||||||||||||||||||||
Settlement | 64 | — | — | — | — | — | ||||||||||||||||||||
Net periodic benefit cost (income) | 104 | 81 | 101 | (8 | ) | (2 | ) | 1 | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income | ||||||||||||||||||||||||||
Prior service benefit | — | — | — | (5 | ) | (11 | ) | — | ||||||||||||||||||
Amortization of prior service benefit | — | — | — | 16 | 12 | 13 | ||||||||||||||||||||
Net actuarial loss (gain) | 195 | (259 | ) | 46 | 6 | (16 | ) | (7 | ) | |||||||||||||||||
Amortization of net actuarial loss | (66 | ) | (101 | ) | (110 | ) | (3 | ) | (5 | ) | (6 | ) | ||||||||||||||
Total expense (benefit) recognized in Other comprehensive (loss) income | 129 | (360 | ) | (64 | ) | 14 | (20 | ) | — | |||||||||||||||||
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive (loss) income | $ | 233 | $ | (279 | ) | $ | 37 | $ | 6 | $ | (22 | ) | $ | 1 | ||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of the following: | |||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||
Benefit obligation assumptions: | ||||||||||||||||||||||||||
Discount rate(1) | 3.8 | % | 4.65 | % | 4.25 | % | ||||||||||||||||||||
Rate of compensation increase | — | % | — | % | 2 | % | ||||||||||||||||||||
Net periodic benefit cost assumptions:(2) | ||||||||||||||||||||||||||
Discount rate(1) | 4.65 – 4.10% | 4.25 | % | 4.55 | % | |||||||||||||||||||||
Rate of compensation increase | — | % | 2 | % | 2 | % | ||||||||||||||||||||
Expected return on plan assets(3) | 7.00 – 6.50% | 7 | % | 7.25 | % | |||||||||||||||||||||
-1 | The Company reviews and selects the discount rate to be used in connection with measuring its pension and other postretirement benefit obligations annually. In determining the discount rate, the Company uses the yield on corporate bonds (rated AA or better) that coincides with the cash flows of the plans’ estimated benefit payouts. The model uses a yield curve approach to discount each cash flow of the liability stream at an interest rate specifically applicable to the timing of each respective cash flow. The model totals the present values of all cash flows and calculates the equivalent weighted average discount rate by imputing the singular interest rate that equates the total present value with the stream of future cash flows. This resulting weighted average discount rate is then used in evaluating the final discount rate to be used by the Company. | |||||||||||||||||||||||||
-2 | Net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year. | |||||||||||||||||||||||||
-3 | Expected long-term return on plan assets is estimated by utilizing forward-looking, long-term return, risk and correlation assumptions developed and updated annually by the Company. These assumptions are weighted by the actual or target allocation to each underlying asset class represented in the pension plan asset portfolio. The Company also assesses the expected long-term return on plan assets assumption by comparison to long-term historical performance on an asset class to ensure the assumption is reasonable. Long-term trends are also evaluated relative to market factors such as inflation, interest rates, and fiscal and monetary policies in order to assess the capital market assumptions. | |||||||||||||||||||||||||
Fair Value of Assets of Company's Benefit Plans Held in Master Trust | The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 28, 2015, by asset category, consisted of the following: | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Common stock | $ | 489 | $ | — | $ | — | $ | 489 | ||||||||||||||||||
Common collective trusts—fixed income | — | 259 | — | 259 | ||||||||||||||||||||||
Common collective trusts—equity | — | 336 | — | 336 | ||||||||||||||||||||||
Government securities | 95 | 130 | — | 225 | ||||||||||||||||||||||
Mutual funds | 53 | 286 | — | 339 | ||||||||||||||||||||||
Corporate bonds | — | 292 | — | 292 | ||||||||||||||||||||||
Real estate partnerships | — | — | 162 | 162 | ||||||||||||||||||||||
Private equity | — | — | 144 | 144 | ||||||||||||||||||||||
Mortgage-backed securities | — | 17 | — | 17 | ||||||||||||||||||||||
Other | 48 | 6 | — | 54 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 685 | $ | 1,326 | $ | 306 | $ | 2,317 | ||||||||||||||||||
The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 22, 2014, by asset category, consisted of the following: | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Common stock | $ | 579 | $ | — | $ | — | $ | 579 | ||||||||||||||||||
Common collective trusts—fixed income | — | 253 | — | 253 | ||||||||||||||||||||||
Common collective trusts—equity | — | 344 | — | 344 | ||||||||||||||||||||||
Government securities | 92 | 89 | — | 181 | ||||||||||||||||||||||
Mutual funds | 52 | 243 | — | 295 | ||||||||||||||||||||||
Corporate bonds | — | 290 | — | 290 | ||||||||||||||||||||||
Real estate partnerships | — | — | 149 | 149 | ||||||||||||||||||||||
Private equity | — | — | 125 | 125 | ||||||||||||||||||||||
Mortgage-backed securities | — | 37 | — | 37 | ||||||||||||||||||||||
Other | — | 8 | — | 8 | ||||||||||||||||||||||
Total plan assets at fair value | $ | 723 | $ | 1,264 | $ | 274 | $ | 2,261 | ||||||||||||||||||
The asset allocation targets and the actual allocation of pension plan assets are as follows: | ||||||||||||||||||||||||||
Asset Category | Target | 2015 | 2014 | |||||||||||||||||||||||
Domestic equity | 24.4 | % | 24.8 | % | 30.2 | % | ||||||||||||||||||||
International equity | 11 | % | 11.3 | % | 14.1 | % | ||||||||||||||||||||
Private equity | 6.2 | % | 6.2 | % | 5.5 | % | ||||||||||||||||||||
Fixed income | 48.7 | % | 48.1 | % | 41.3 | % | ||||||||||||||||||||
Real estate | 9.7 | % | 9.6 | % | 8.9 | % | ||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||
Summary of Changes in Fair Value for Level 3 Investments | The following is a summary of changes in the fair value of Level 3 investments for 2015 and 2014: | |||||||||||||||||||||||||
Real Estate | Private Equity | |||||||||||||||||||||||||
Partnerships | ||||||||||||||||||||||||||
Ending balance, February 23, 2013 | $ | 136 | $ | 110 | ||||||||||||||||||||||
Purchases | 22 | 34 | ||||||||||||||||||||||||
Sales | (26 | ) | (24 | ) | ||||||||||||||||||||||
Unrealized gains | 10 | 5 | ||||||||||||||||||||||||
Realized gains and losses | 7 | — | ||||||||||||||||||||||||
Ending balance, February 22, 2014 | 149 | 125 | ||||||||||||||||||||||||
Purchases | 10 | 36 | ||||||||||||||||||||||||
Sales | (7 | ) | (21 | ) | ||||||||||||||||||||||
Unrealized gains | 10 | 4 | ||||||||||||||||||||||||
Realized gains and losses | — | — | ||||||||||||||||||||||||
Ending balance, February 28, 2015 | $ | 162 | $ | 144 | ||||||||||||||||||||||
Estimated Future Benefit Payments to be Paid from Company's Defined Benefit Pension Plans and Other Postretirement Benefit Plans | The estimated future benefit payments to be made from the Company’s defined benefit pension and other postretirement benefit plans, which reflect expected future service, are as follows: | |||||||||||||||||||||||||
Fiscal Year | Pension Benefits | Other Postretirement | ||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||
2016 | $ | 139 | $ | 6 | ||||||||||||||||||||||
2017 | 129 | 5 | ||||||||||||||||||||||||
2018 | 137 | 5 | ||||||||||||||||||||||||
2019 | 142 | 5 | ||||||||||||||||||||||||
2020 | 153 | 6 | ||||||||||||||||||||||||
Years 2021-2025 | 843 | 28 | ||||||||||||||||||||||||
Schedule of Pension Funds Contributions | The following table contains information about the Company’s multiemployer plans: | |||||||||||||||||||||||||
EIN—Pension | Plan | Pension Protection Act Zone Status | FIP/RP Status | Contributions | Surcharges | Amortization | ||||||||||||||||||||
Plan Number | Month/Day | Pending/ Implemented | Imposed(1) | Provisions | ||||||||||||||||||||||
Pension Fund | End Date | 2015 | 2014 | 2015 | 2014 | 2013 | ||||||||||||||||||||
Minneapolis Food Distributing Industry Pension Plan | 416047047-001 | 31-Dec | Green | Green | Implemented | $ | 10 | $ | 9 | $ | 9 | No | Yes | |||||||||||||
Central States, Southeast and Southwest Areas Pension Fund | 366044243-001 | 31-Dec | Red | Red | Implemented | 8 | 8 | 9 | No | No | ||||||||||||||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 410905139-001 | 28-Feb | Yellow | Yellow | Implemented | 7 | 8 | 8 | No | No | ||||||||||||||||
UFCW Unions and Participating Employers Pension Plan | 526117495-002 | 31-Dec | Red | Red | Implemented | 4 | 4 | 3 | No | No | ||||||||||||||||
Western Conference of Teamsters Pension Plan | 916145047-001 | 31-Dec | Green | Green | No | 4 | 3 | 2 | No | Yes | ||||||||||||||||
UFCW Union Local 655 Food Employers Joint Pension Plan | 436058365-001 | 31-Dec | Green | Green | No | 2 | 2 | 2 | Yes | Yes | ||||||||||||||||
UFCW Unions and Employers Pension Plan | 396069053-001 | 31-Oct | Red | Red | Implemented | 1 | 2 | 2 | Yes | No | ||||||||||||||||
All Other Multiemployer Pension Plans(2) | 3 | 3 | 3 | |||||||||||||||||||||||
Total | $ | 39 | $ | 39 | $ | 38 | ||||||||||||||||||||
-1 | PPA surcharges are 5 percent or 10 percent of eligible contributions and may not apply to all collective bargaining agreements or total contributions to each plan. | |||||||||||||||||||||||||
-2 | All Other Multiemployer Pension Plans includes 12 plans, none of which are individually significant when considering the Company's contributions to the plan, severity of the underfunded status or other factors. | |||||||||||||||||||||||||
Schedule of Collective Bargaining Agreements Dates and Contributions to Each Plan | The following table describes the expiration of the Company’s collective bargaining agreements associated with the significant multiemployer plans in which the Company participates: | |||||||||||||||||||||||||
Most Significant Collective Bargaining Agreement | ||||||||||||||||||||||||||
Pension Fund | Range of Collective Bargaining Agreement Expiration Dates | Total Collective Bargaining Agreements | Expiration Date | % of Associates under Collective Bargaining Agreement (1) | Over 5% Contribution 2014 | |||||||||||||||||||||
Minneapolis Food Distributing Industry Pension Plan | 6/01/2013 – 05/31/2015 | 1 | 5/31/15 | 100 | % | Yes | ||||||||||||||||||||
Central States, Southeast and Southwest Areas Pension Fund | 6/01/2011 – 8/31/2017 | 10 | 5/31/16 | 28.7 | % | No | ||||||||||||||||||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 3/2/2014 – 3/5/2016 | 1 | 3/5/16 | 100 | % | Yes | ||||||||||||||||||||
UFCW Unions and Participating Employers Pension Plan | 7/13/2014 – 7/8/2017 | 2 | 7/8/17 | 68.9 | % | Yes | ||||||||||||||||||||
Western Conference of Teamsters Pension Plan | 4/17/2011 – 7/15/2017 | 8 | 7/15/17 | 50.2 | % | No | ||||||||||||||||||||
UFCW Union Local 655 Food Employers Joint Pension Plan | 5/13/2013 – 5/8/2016 | 1 | 5/8/16 | 100 | % | Yes | ||||||||||||||||||||
UFCW Unions and Employers Pension Plan | 4/6/2014 – 4/2/2016 | 1 | 4/2/16 | 90 | % | Yes | ||||||||||||||||||||
-1 | Company participating employees in the most significant collective bargaining agreement as a percent of all Company employees participating in the respective fund. |
NET_EARNINGS_LOSS_PER_SHARE_Ta
NET EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Calculation of Basic and Diluted Net Earnings (Loss) Per Share | The following table reflects the calculation of basic and diluted net earnings (loss) per share: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Net earnings (loss) from continuing operations | $ | 127 | $ | 13 | $ | (253 | ) | |||||
Less net earnings attributable to noncontrolling interests | (7 | ) | (7 | ) | (10 | ) | ||||||
Net earnings (loss) from continuing operations attributable to SUPERVALU INC. | 120 | 6 | (263 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | 72 | 176 | (1,203 | ) | ||||||||
Net earnings (loss) attributable to SUPERVALU INC. | $ | 192 | $ | 182 | $ | (1,466 | ) | |||||
Weighted average number of shares outstanding—basic | 260 | 255 | 212 | |||||||||
Dilutive impact of stock-based awards | 4 | 3 | — | |||||||||
Weighted average number of shares outstanding—diluted (1) | 264 | 258 | 212 | |||||||||
Basic net earnings (loss) per share attributable to SUPERVALU INC.: | ||||||||||||
Continuing operations | $ | 0.46 | $ | 0.02 | $ | (1.24 | ) | |||||
Discontinued operations | $ | 0.28 | $ | 0.69 | $ | (5.67 | ) | |||||
Basic net earnings (loss) per share | $ | 0.74 | $ | 0.71 | $ | (6.91 | ) | |||||
Diluted net earnings (loss) per share attributable to SUPERVALU INC.: | ||||||||||||
Continuing operations (1) | $ | 0.45 | $ | 0.02 | $ | (1.24 | ) | |||||
Discontinued operations (1) | $ | 0.27 | $ | 0.68 | $ | (5.67 | ) | |||||
Diluted net earnings (loss) per share | $ | 0.73 | $ | 0.7 | $ | (6.91 | ) | |||||
-1 | Weighted average number of shares outstanding—diluted was equal to Weighted average number of shares outstanding—basic for the computation of diluted net loss per share amounts for fiscal 2013. |
COMPREHENSIVE_INCOME_LOSS_AND_1
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS (Tables) | 12 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive loss by component are as follows: | |||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Pension and postretirement benefit plan accumulated other comprehensive loss at beginning of the fiscal year, net of tax | $ | (307 | ) | $ | (612 | ) | $ | (657 | ) | |||||
Other comprehensive (loss) income before reclassifications, net of tax benefit (expense) of $73, $(85) and $(18), respectively | (188 | ) | 202 | (20 | ) | |||||||||
Pension settlement charge, net of tax expense of $(25), $0 and $0, respectively | 39 | — | — | |||||||||||
Amortization of amounts included in net periodic benefit cost, net of tax expense of $(21), $(38) and $(40), respectively | 33 | 55 | 65 | |||||||||||
Net current-period Other comprehensive income (loss), net of tax benefit (expense) of $27, $(123) and $(22), respectively | (116 | ) | 257 | 45 | ||||||||||
Divestiture of NAI pension plan accumulated other comprehensive loss, net of tax (expense) of $0, $(31) and $0 | — | 48 | — | |||||||||||
Pension and postretirement benefit plan accumulated other comprehensive loss at the end of fiscal year, net of tax | $ | (423 | ) | $ | (307 | ) | $ | (612 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income | Items reclassified out of pension and postretirement benefit plan accumulated other comprehensive loss had the following impact on the Consolidated Statements of Operations: | |||||||||||||
2015 | 2014 | 2013 | Affected Line Item on Consolidated Statements of Operations | |||||||||||
Pension and postretirement benefit plan obligations: | ||||||||||||||
Amortization of amounts included in net periodic benefit expense(1) | $ | 43 | $ | 82 | $ | 93 | Selling and administrative expenses | |||||||
Amortization of amounts included in net periodic benefit expense(1) | 11 | 11 | 12 | Cost of sales | ||||||||||
Pension settlement charge | 64 | — | — | Selling and administrative expenses | ||||||||||
Total reclassifications | 118 | 93 | 105 | |||||||||||
Income tax benefit | (46 | ) | (38 | ) | (40 | ) | Income tax provision (benefit) | |||||||
Total reclassifications, net of tax | $ | 72 | $ | 55 | $ | 65 | ||||||||
-1 | Amortization of amounts included in net periodic benefit cost include amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 11—Benefit Plans. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Net Sales of Retail Food and Independent Segment in Terms of Amounts and Percentage | The amounts and percentages of Net sales for each group of similar products sold in the Independent Business, Save-A-Lot and Retail Food segments and Corporate revenue consisted of the following: | ||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Independent Business: | |||||||||||||||||||||
Nonperishable grocery products(1) | $ | 5,939 | 33 | % | $ | 6,000 | 35 | % | $ | 6,140 | 36 | % | |||||||||
Perishable grocery products(2) | 2,099 | 12 | 1,951 | 11 | 1,935 | 11 | |||||||||||||||
Services to independent retail customers and other | 96 | 1 | 85 | 1 | 91 | 1 | |||||||||||||||
8,134 | 46 | % | 8,036 | 47 | % | 8,166 | 48 | % | |||||||||||||
Save-A-Lot: | |||||||||||||||||||||
Nonperishable grocery products(1) | $ | 2,986 | 17 | % | $ | 2,829 | 17 | % | $ | 2,865 | 17 | % | |||||||||
Perishable grocery products(2) | 1,627 | 9 | 1,399 | 8 | 1,330 | 8 | |||||||||||||||
4,613 | 26 | % | 4,228 | 25 | % | 4,195 | 25 | % | |||||||||||||
Retail Food: | |||||||||||||||||||||
Nonperishable grocery products(1) | $ | 2,677 | 15 | % | $ | 2,600 | 15 | % | $ | 2,689 | 16 | % | |||||||||
Perishable grocery products(2) | 1,574 | 9 | 1,463 | 9 | 1,428 | 8 | |||||||||||||||
Pharmacy products | 510 | 3 | 491 | 3 | 512 | 3 | |||||||||||||||
Fuel | 83 | — | 67 | — | 77 | — | |||||||||||||||
Other | 35 | — | 28 | — | 27 | — | |||||||||||||||
4,879 | 27 | % | 4,649 | 27 | % | 4,733 | 28 | % | |||||||||||||
Corporate: | |||||||||||||||||||||
Transition services revenue | $ | 194 | 1 | % | $ | 240 | 1 | % | $ | 42 | — | % | |||||||||
Net sales | $ | 17,820 | 100 | % | $ | 17,153 | 100 | % | $ | 17,136 | 100 | % | |||||||||
-1 | Includes such items as dry goods, general merchandise, health and beauty care, beverages, dairy, frozen foods, and candy | ||||||||||||||||||||
-2 | Includes such items as meat, produce, deli and bakery |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | |||||||||||
Feb. 28, 2015 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Summary of Company's Operating Results and Certain Other Directly Attributable Expenses | The following is a summary of the Company’s operating results and certain other directly attributable expenses that are included in discontinued operations: | |||||||||||
2015 | 2014 | 2013 | ||||||||||
Net sales | $ | — | $ | 1,235 | $ | 17,230 | ||||||
Income (loss) before income taxes from discontinued operations | 6 | 121 | (1,238 | ) | ||||||||
Income tax benefit | (66 | ) | (55 | ) | (35 | ) | ||||||
Income (loss) from discontinued operations, net of tax | $ | 72 | $ | 176 | $ | (1,203 | ) | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 29, 2014 | Sep. 06, 2014 | Feb. 22, 2014 | Nov. 30, 2013 | Sep. 07, 2013 | Feb. 23, 2013 | Dec. 01, 2012 | Sep. 08, 2012 | Jun. 14, 2014 | Jun. 15, 2013 | Jun. 16, 2012 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Segment | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Number of retail operating segments | 5 | ||||||||||||||
Fiscal Period Duration | 91 days | 84 days | 84 days | 84 days | 84 days | 84 days | 84 days | 84 days | 84 days | 112 days | 112 days | 112 days | 371 days | 364 days | 364 days |
Net book overdrafts | $145 | $134 | $145 | $134 | |||||||||||
Allowance for losses on receivables | 18 | 19 | 18 | 19 | |||||||||||
Bad debt expense | 6 | 16 | 11 | ||||||||||||
Percentage of inventory valued under LIFO | 55.00% | 57.00% | 55.00% | 57.00% | |||||||||||
Percentage of LIFO inventory valued under replacement cost method | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||||
Percentage of LIFO inventory valued under retail inventory method and weighted average | 50.00% | 52.00% | 50.00% | 52.00% | |||||||||||
Percentage of FIFO inventory valued under cost, weighted average cost and retail inventory method | 26.00% | 25.00% | 26.00% | 25.00% | |||||||||||
Percentage Of First In First Out Inventory Valued Under Replacement Cost Method | 19.00% | 18.00% | 19.00% | 18.00% | |||||||||||
Cost of sales decreased due to certain LIFO layers were reduced | 14 | 6 | |||||||||||||
Value increase in inventory by changing the method from LIFO to FIFO | 211 | 202 | 211 | 202 | |||||||||||
Impairment of long-lived assets related to store closures | 8 | ||||||||||||||
Discount rate | 3.80% | 4.65% | 4.25% | 3.80% | 4.65% | 4.25% | |||||||||
Discount on self-insurance reserve | 6 | 7 | 6 | 7 | |||||||||||
Cash proceeds from the issuance of shares | 7 | 177 | 0 | ||||||||||||
Reclassification of unrecognized tax benefits and other tax credits against deferred tax assets | 1 | ||||||||||||||
Self Insurance, Receivables | 9 | 18 | 9 | 18 | |||||||||||
Symphony Investors | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Percentage on issued and outstanding common stock | 30.00% | 30.00% | |||||||||||||
Common stock Purchase price (usd per share) | $4 | $4 | |||||||||||||
Validly tendered shares (shares) | 12 | ||||||||||||||
Percentage on issued and outstanding common stock | 5.50% | ||||||||||||||
Tender offer expiration date | 20-Mar-13 | ||||||||||||||
Additional common stock issued (shares) | 42 | ||||||||||||||
Percentage of outstanding shares | 19.90% | 19.90% | |||||||||||||
Tender offer price per share (usd per share) | $4 | ||||||||||||||
Cash proceeds from the issuance of shares | 170 | ||||||||||||||
Ownership percentage after share issuance | 21.20% | 21.20% | |||||||||||||
Asset under Construction | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Interest capitalized during period | 1 | 1 | 4 | ||||||||||||
Retail Food | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Number of geographic markets (markets) | 5 | ||||||||||||||
Corporate | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Number of individual corporate stores (stores) | 28 | ||||||||||||||
Number of Distribution Centers Without Corporate Stores | 2 | ||||||||||||||
Retail Food and Save-A-Lot | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Retail food advertising expenses, net of cooperative adverting reimbursements | 69 | 63 | 86 | ||||||||||||
Save-A-Lot | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Number of geographic markets (markets) | 13 | ||||||||||||||
Impairment of long-lived assets related to store closures | $16 | ||||||||||||||
Number of non-strategic stores closed (stores) | 22 | ||||||||||||||
Minimum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Remaining Lease Term | 1 year | ||||||||||||||
Discount rate | 0.30% | 0.30% | 0.40% | 0.30% | 0.30% | 0.40% | |||||||||
Minimum | Building Improvements | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful life | 10 years | ||||||||||||||
Minimum | Equipment | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful life | 3 years | ||||||||||||||
Maximum | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Remaining Lease Term | 15 years | ||||||||||||||
Discount rate | 5.10% | 5.10% | 5.10% | 5.10% | 5.10% | 5.10% | |||||||||
Maximum | Building Improvements | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful life | 40 years | ||||||||||||||
Maximum | Equipment | |||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||
Estimated useful life | 10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Self-Insurance Liabilities (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Movement in Self Insurance Reserve [Roll Forward] | |||
Beginning balance | $103 | $97 | $93 |
Expense | 31 | 34 | 29 |
Claim payments | -32 | -33 | -27 |
Reclassification of insurance recoveries to receivables | -9 | 5 | 2 |
Ending balance | 93 | 103 | 97 |
Less current portion | -30 | -33 | -27 |
Long-term portion | $63 | $70 | $70 |
BUSNIESS_ACQUISITIONS_Details
BUSNIESS ACQUISITIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 06, 2014 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Business Acquisition [Line Items] | ||||
Total payment related to acquisition | $34 | |||
Cash payment related to acquisition | 5 | 55 | 0 | 0 |
Fair value of assets acquired | 39 | |||
Fair value of property, plant and equipment acquired | 15 | |||
Fair value of goodwill acquired | 14 | |||
Fair value of inventories acquired | 5 | |||
Fair value of intangible assets acquired | 4 | |||
Fair value of other current assets | 1 | |||
Savea Lot Licensee Stores | ||||
Business Acquisition [Line Items] | ||||
Cash payment related to acquisition | $19 | |||
Number of stores (stores) | 38 | |||
Rainbow Foods Grocery Stores | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired (stores) | 7 | |||
Rainbow Foods Pharmacy Locations | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired (stores) | 11 | |||
Rainbow Foods Liquor Store | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired (stores) | 1 | |||
Minority Interest | Rainbow Foods Grocery Stores | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired (stores) | 2 | |||
Minority Interest | Cub Foods grocery stores | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired (stores) | 5 | |||
Diamond Lake 1994 LLC | Cub Foods grocery stores | ||||
Business Acquisition [Line Items] | ||||
Number of stores acquired (stores) | 3 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - Change in Company's Goodwill and Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Goodwill: | |||
Goodwill, Beginning Balance | $847 | $847 | |
Additions | 18 | 0 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 865 | 847 | 847 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning Balance | 123 | 118 | |
Intangible Assets, Additions | 13 | 0 | |
Intangible Assets, Impairments | 0 | 0 | |
Intangible Assets, Other Net Adjustments | 0 | 5 | |
Intangible Assets, Ending Balance | 136 | 123 | 118 |
Intangible Assets Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, Beginning balance | -80 | -67 | |
Accumulated amortization, addition | -8 | -8 | -8 |
Accumulated amortization, other net adjustments | 0 | -5 | |
Accumulated amortization, Beginning balance | -88 | -80 | -67 |
Intangible assets, Beginning Balance | 43 | 51 | |
Intangible assets, Ending Balance | 48 | 43 | 51 |
Independent Business | |||
Goodwill: | |||
Goodwill, Beginning Balance | 710 | 710 | |
Additions | 0 | 0 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 710 | 710 | |
Save-A-Lot | |||
Goodwill: | |||
Goodwill, Beginning Balance | 137 | 137 | |
Additions | 4 | 0 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 141 | 137 | |
Retail Food | |||
Goodwill: | |||
Goodwill, Beginning Balance | 0 | 0 | |
Additions | 14 | 0 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 14 | 0 | |
Tradenames and trademarks—indefinite useful lives | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Indefinite-lived Intangible Assets, Beginning Balance | 9 | 9 | |
Indefinite-lived Intangible Assets, Additions | 0 | 0 | |
Indefinite-lived Intangible Assets, Impairments | 0 | 0 | |
Indefinite-lived Intangible Assets, Other net adjustments | 0 | 0 | |
Indefinite-lived Intangible Assets, Ending Balance | 9 | 9 | |
Favorable operating leases, prescription files, customer lists and other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-Lived Intangible Assets, Beginning Balance | 111 | 106 | |
Finite-Lived Intangible Assets, Additions | 13 | 0 | |
Finite-Lived Intangible Assets, Impairments | 0 | 0 | |
Finite Lived Intangible Assets Other Net Adjustments | 0 | 5 | |
Finite-Lived Intangible Assets, Ending Balance | 124 | 111 | |
Intangible Assets Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, Beginning balance | -78 | ||
Accumulated amortization, Beginning balance | -86 | -78 | |
Non-Compete Agreements | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-Lived Intangible Assets, Beginning Balance | 3 | 3 | |
Finite-Lived Intangible Assets, Additions | 0 | 0 | |
Finite-Lived Intangible Assets, Impairments | 0 | 0 | |
Finite Lived Intangible Assets Other Net Adjustments | 0 | 0 | |
Finite-Lived Intangible Assets, Ending Balance | 3 | 3 | |
Intangible Assets Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, Beginning balance | -2 | ||
Accumulated amortization, Beginning balance | ($2) | ($2) |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Intangible Assets By Major Class [Line Items] | |||
Amortization Expense of intangible assets | $8 | $8 | $8 |
Future amortization expense, Year One | 5 | ||
Future amortization expense, Year Two | 5 | ||
Future amortization expense, Year Three | 5 | ||
Future amortization expense, Year Four | 5 | ||
Future amortization expense, Year Five | 5 | ||
Independent Business | |||
Intangible Assets By Major Class [Line Items] | |||
Percentage by which fair value of good will exceeded carrying value | 80.00% | ||
Independent Business | Tradename [Member] | |||
Intangible Assets By Major Class [Line Items] | |||
Pre-tax non-cash impairment charge | $6 | ||
Save-A-Lot | |||
Intangible Assets By Major Class [Line Items] | |||
Minimum percentage by which fair value of good will exceeded carrying value | 100.00% |
RESERVES_FOR_CLOSED_PROPERTIES2
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES - Changes in Company's Reserves (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $47 | $61 | $72 |
Additions | 4 | 4 | 16 |
Payments | -12 | -16 | -22 |
Adjustments | -5 | -2 | -5 |
Ending balance | $34 | $47 | $61 |
RESERVES_FOR_CLOSED_PROPERTIES3
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES - Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Restructuring and Related Activities [Abstract] | |||
Carrying value | $4 | $45 | $291 |
Fair value measured using Level 3 inputs | 1 | 21 | 40 |
Impairment charge | $3 | $24 | $251 |
RESERVES_FOR_CLOSED_PROPERTIES4
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Feb. 23, 2013 |
Significant Activity In Property Plant And Equipment [Line Items] | |
Impairment charges | $10 |
Save-A-Lot | |
Significant Activity In Property Plant And Equipment [Line Items] | |
Number of non - strategic stores closed (stores) | 22 |
PROPERTY_PLANT_AND_EQUIPMENT_C
PROPERTY, PLANT AND EQUIPMENT - Components of Property, Plant and Equipment (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $4,471 | $4,322 |
Accumulated depreciation | -2,779 | -2,618 |
Accumulated amortization on capitalized lease assets | -222 | -207 |
Total property, plant and equipment, net | 1,470 | 1,497 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 104 | 97 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,252 | 1,224 |
Property under construction | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 71 | 34 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 709 | 693 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,021 | 1,959 |
Capitalized lease assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $314 | $315 |
PROPERTY_PLANT_AND_EQUIPMENT_A
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $258 | $275 | $333 |
Amortization expense related to capitalized lease assets | $19 | $19 | $23 |
FAIR_VALUE_MEASUREMENTS_Additi
FAIR VALUE MEASUREMENTS - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 22, 2014 | Feb. 24, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Difference between fair value and book value of notes receivable | $2,000,000 | $2,000,000 | |
Difference between fair value and book value of long-term debt | 59,000,000 | 83,000,000 | |
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of derivative | 300,000,000 | ||
Fixed interest rate | 5.51% | ||
Fair value of derivative | 0 | ||
Effect of 100 basis point increase in LIBOR interest rate | 7,000,000 | ||
Effect of 100 basis point decrease in LIBOR interest rate | -7,000,000 | ||
Fuel | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of derivative | $1,000,000 | $0 |
LONGTERM_DEBT_LongTerm_Debt_an
LONG-TERM DEBT - Long-Term Debt and Capital Lease Obligations (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long Term Debentures and Notes due | $2,480 | $2,486 |
Other | 0 | 18 |
Net discount on debt, using an effective interest rate of 4.63% to 8.56% | -8 | -16 |
Total debt | 2,489 | 2,504 |
Less current maturities of long-term debt | -9 | -18 |
Long-term debt | 2,480 | 2,486 |
Secured Debt | 4.50% Secured Term Loan Facility due March 2019 | ||
Debt Instrument [Line Items] | ||
Long Term Debentures and Notes due | 1,469 | 1,474 |
Senior Notes | 6.75% Senior Notes due June 2021 | ||
Debt Instrument [Line Items] | ||
Long Term Debentures and Notes due | 400 | 400 |
Senior Notes | 7.75% Senior Notes due November 2022 | ||
Debt Instrument [Line Items] | ||
Long Term Debentures and Notes due | 350 | 0 |
Senior Notes | 8.00% Senior Notes due May 2016 | ||
Debt Instrument [Line Items] | ||
Long Term Debentures and Notes due | 278 | 628 |
Revolving Credit Facility | 1.66% to 4.00% Revolving ABL Credit Facility due September 2019 | ||
Debt Instrument [Line Items] | ||
Long Term Debentures and Notes due | $0 | $0 |
LONGTERM_DEBT_LongTerm_Debt_an1
LONG-TERM DEBT - Long-Term Debt and Capital Lease Obligations Additional Information (Detail) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 22, 2014 | Nov. 14, 2014 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 4.63% | 4.63% | |
Maximum | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 8.56% | 8.56% | |
4.50% Secured Term Loan Facility due March 2019 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.50% | 4.50% | |
6.75% Senior Notes due June 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.75% | 6.75% | 6.75% |
7.75% Senior Notes due November 2022 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.75% | 7.75% | |
8.00% Senior Notes due May 2016 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.00% | 8.00% | |
1.66% to 4.00% Revolving ABL Credit Facility due September 2019 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Minimum | 1.66% | 1.66% | |
Debt Instrument, Interest Rate, Maximum | 4.00% | 4.00% |
LONGTERM_DEBT_Future_Maturitie
LONG-TERM DEBT - Future Maturities of Long-Term Debt, Excluding Net Discount on Debt (Detail) (USD $) | Feb. 28, 2015 |
In Millions, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2016 | $10 |
2017 | 293 |
2018 | 15 |
2019 | 15 |
2020 | 1,414 |
Thereafter | $750 |
LONGTERM_DEBT_Additional_Infor
LONG-TERM DEBT - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | Apr. 17, 2014 | Sep. 30, 2014 | Nov. 14, 2014 | |
Proforma Debt Instrument [Line Items] | ||||||
Long-term debt | $2,480,000,000 | $2,486,000,000 | ||||
Payments of financing costs | 42,000,000 | 151,000,000 | 66,000,000 | |||
Revolving ABL Credit Facility | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Fee Percentage | 1.63% | 2.13% | ||||
Line of Credit Facility, Commitment Fee Amount | 871,000,000 | |||||
Long-term Line of Credit | 0 | |||||
Letters of Credit Outstanding, Amount | 76,000,000 | 101,000,000 | ||||
Remaining borrowing capacity | 786,000,000 | |||||
Unused borrowing capacity fee | 0.38% | |||||
Proceeds from lines of credit | 3,268,000,000 | 3,803,000,000 | ||||
Repayments of Debt | 3,268,000,000 | 4,010,000,000 | ||||
Aggregate cap on restricted payments | 299,000,000 | |||||
Annual dividends permitted | 50,000,000 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.38% | |||||
Asset Backed Revolving Credit Amended Facility | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Debt instrument maturity term | 90 days | |||||
Aggregate principal amount | 500,000,000 | |||||
Long-term debt | 250,000,000 | |||||
Stated interest rate | 8.00% | |||||
Second ABL Amendment | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Debt instrument maturity term | 30 days | 90 days | ||||
Aggregate principal amount | 250,000,000 | |||||
2016 Senior Notes | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Investment Redemption, notice period | 30 days | |||||
6.75% Senior Notes due June 2021 | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Stated interest rate | 6.75% | 6.75% | 6.75% | |||
Senior Notes Containing Operating Covenants Including Limitations on Transactions | 400,000,000 | |||||
6.75% Senior Notes due June 2021 | Senior Notes | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Long-term debt | 400,000,000 | 400,000,000 | ||||
8.00% Senior Notes due May 2016 | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Long-term Line of Credit | 0 | |||||
Stated interest rate | 8.00% | 8.00% | ||||
Redemption amount | 350,000,000 | |||||
Redemption premium | 35,000,000 | |||||
Write off of deferred debt issuance cost | 5,000,000 | |||||
Senior Notes Containing Operating Covenants Including Limitations on Transactions | 278,000,000 | |||||
8.00% Senior Notes due May 2016 | Senior Notes | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Long-term debt | 278,000,000 | 628,000,000 | ||||
Senior Notes Due 2022 | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Senior Notes Containing Operating Covenants Including Limitations on Transactions | 350,000,000 | |||||
Senior Notes Due 2022 | Senior Notes | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Stated interest rate | 7.75% | |||||
Long-term debt | 350,000,000 | |||||
Payments of financing costs | 4,000,000 | |||||
Term Loan Credit Facility | Term Loan A | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Secured debt | 1,469,000,000 | 1,474,000,000 | ||||
Debt instrument term | 6 years | |||||
Debt Instrument, Face Amount | 1,500,000,000 | |||||
Secured debt, current | 9,000,000 | 0 | ||||
Percentage of net cash proceeds to prepay outstanding loans | 100.00% | |||||
Maximum period for prepayment of loans outstanding | 90 days | |||||
Term Loan Credit Facility | Term Loan A | Property, Plant and Equipment | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Collateral amount | 776,000,000 | 0 | ||||
Term Loan Credit Facility | Minimum | Term Loan A | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Percentage of aggregate principal amount to prepay outstanding loans | 0.00% | |||||
Term Loan Credit Facility | Maximum | Term Loan A | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Percentage of aggregate principal amount to prepay outstanding loans | 50.00% | |||||
Term Loan Credit Facility | Revolving ABL Credit Facility | Term Loan A | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Maximum borrowing capacity | 0 | |||||
London Interbank Offered Rate (LIBOR) | Asset Backed Revolving Credit Amended Facility | Minimum | ||||||
Proforma Debt Instrument [Line Items] | ||||||
LIBOR Plus interest rate | 1.50% | |||||
London Interbank Offered Rate (LIBOR) | Asset Backed Revolving Credit Amended Facility | Maximum | ||||||
Proforma Debt Instrument [Line Items] | ||||||
LIBOR Plus interest rate | 2.00% | |||||
London Interbank Offered Rate (LIBOR) | Term Loan Credit Facility | Term Loan A | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Libor floor rate | 100.00% | |||||
LIBOR Plus interest rate | 350.00% | |||||
Prime Rate | Asset Backed Revolving Credit Amended Facility | Minimum | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Interest rate at the rate of (Prime plus) | 0.50% | |||||
Prime Rate | Asset Backed Revolving Credit Amended Facility | Maximum | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Interest rate at the rate of (Prime plus) | 1.00% | |||||
Inventories | Revolving ABL Credit Facility | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Collateral amount | 1,188,000,000 | 1,066,000,000 | ||||
Accounts Receivable | Revolving ABL Credit Facility | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Collateral amount | 0 | 0 | ||||
Cash and Cash Equivalents | Revolving ABL Credit Facility | ||||||
Proforma Debt Instrument [Line Items] | ||||||
Collateral amount | $0 | $0 |
LEASES_Noncancellable_Operatin
LEASES - Noncancellable Operating Leases and Capital Leases (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Operating Leases | ||
2016 | $129 | |
2017 | 119 | |
2018 | 99 | |
2019 | 80 | |
2020 | 60 | |
Thereafter | 152 | |
Total future minimum obligations | 639 | |
Capital Leases | ||
2016 | 45 | |
2017 | 43 | |
2018 | 41 | |
2019 | 38 | |
2020 | 35 | |
Thereafter | 130 | |
Total future minimum obligations | 332 | |
Less interest | -93 | |
Present value of net future minimum obligations | 239 | |
Less current capital lease obligations | -26 | |
Long-term capital lease obligations | $213 | $246 |
LEASES_Rent_Expense_and_Subten
LEASES - Rent Expense and Subtenant Rentals (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Leases [Abstract] | |||
Minimum rent | $148 | $143 | $143 |
Contingent rent | 6 | 5 | 6 |
Rent expense | 154 | 148 | 149 |
Less subtenant rentals | -29 | -27 | -29 |
Total net rent expense | $125 | $121 | $120 |
LEASES_Additional_Information_
LEASES - Additional Information (Detail) | 12 Months Ended |
Feb. 28, 2015 | |
Leases [Abstract] | |
Term of lease minimum | 1 year |
Term of lease maximum | 5 years |
LEASES_Future_Minimum_Lease_an
LEASES - Future Minimum Lease and Subtenant Rentals Under Noncancellable Leases (Detail) (USD $) | Feb. 28, 2015 |
In Millions, unless otherwise specified | |
Operating Leases | |
2016 | $25 |
2017 | 23 |
2018 | 18 |
2019 | 12 |
2020 | 7 |
Thereafter | 17 |
Total minimum lease receipts | 102 |
Direct Financing Leases | |
2016 | 1 |
2017 | 1 |
2018 | 1 |
2019 | 0 |
2020 | 0 |
Thereafter | 0 |
Total minimum lease receipts | 3 |
Less interest | 0 |
Net investment in direct financing leases | 3 |
Less current portion | -1 |
Long-term portion | $2 |
LEASES_Carrying_Value_of_Owned
LEASES - Carrying Value of Owned Property Leased to Third Parties Under Operating Leases (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Leases [Abstract] | ||
Property, plant and equipment | $4 | $4 |
Less accumulated depreciation | -3 | -3 |
Property, plant and equipment, net | $1 | $1 |
INCOME_TAXES_Provision_for_Inc
INCOME TAXES - Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Current | |||
Federal | $35 | $30 | ($98) |
State | 7 | 5 | -9 |
Total current | 42 | 35 | -107 |
Deferred | 16 | -30 | -56 |
Total income tax provision (benefit) | $58 | $5 | ($163) |
INCOME_TAXES_Difference_Betwee
INCOME TAXES - Difference Between Actual Tax Provision and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Losses Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Income Tax Disclosure [Abstract] | |||
Federal taxes (benefit) based on statutory rate | $62 | $4 | ($149) |
State income taxes, net of federal benefit | 12 | 0 | -13 |
Tax contingency | -1 | -1 | 1 |
Change in valuation allowance | 0 | -1 | -3 |
Pension | -8 | 0 | 0 |
Other | -7 | 3 | 1 |
Total income tax provision (benefit) | $58 | $5 | ($163) |
INCOME_TAXES_Deferred_Tax_Asse
INCOME TAXES - Deferred Tax Assets and Liabilities (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Compensation and benefits | $234 | $224 |
Self-insurance | 25 | 24 |
Property, plant and equipment and capitalized lease assets | 72 | 132 |
Loss on sale of discontinued operations | 1,387 | 1,339 |
Net operating loss carryforwards | 19 | 23 |
Other | 69 | 80 |
Gross deferred tax assets | 1,806 | 1,822 |
Valuation allowance | -1,404 | -1,356 |
Total deferred tax assets | 402 | 466 |
Deferred tax liabilities: | ||
Property, plant and equipment and capitalized lease assets | -88 | -147 |
Inventories | -14 | -40 |
Intangible assets | -27 | -25 |
Other | -23 | -16 |
Total deferred tax liabilities | -152 | -228 |
Net deferred tax asset | 250 | 238 |
Deferred tax assets | ||
Deferred tax liabilities: | ||
Net deferred tax asset | 265 | 287 |
Other current liabilities | ||
Deferred tax liabilities: | ||
Net deferred tax asset | ($15) | ($49) |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Income Tax Disclosure [Abstract] | |||
State net operating loss carryforwards | $414 | ||
State net operating loss carryforwards expiration dates | expire beginning in 2015 and continuing through 2033 | ||
Valuation allowance | 16 | ||
Capital loss expiration date | 2019 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | 36 | 48 | 60 |
Unrecognized tax benefits expects to resolve within the next 12 months | 6 | ||
Recognized expense related to interest and penalties | 7 | 4 | 0 |
Unrecognized tax benefits, related to accrued interest and penalties | 26 | 31 | |
Payments of interest and penalties | $2 | $14 |
INCOME_TAXES_Changes_in_Compan
INCOME TAXES - Changes in Company's Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $76 | $187 | $165 |
Increase based on tax positions related to the current year | 15 | 15 | 5 |
Decrease based on tax positions related to the current year | 0 | 0 | -1 |
Increase based on tax positions related to prior years | 15 | 8 | 82 |
Decrease based on tax positions related to prior years | -4 | -2 | -58 |
Decrease related to settlements with taxing authorities | -3 | -128 | -3 |
Decrease due to lapse of statute of limitations | -5 | -4 | -3 |
Ending balance | $94 | $76 | $187 |
STOCKBASED_AWARDS_Additional_I
STOCK-BASED AWARDS - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | Feb. 25, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 6 years 6 months 18 days | 5 years 4 months 28 days | 4 years 7 months 17 days | 2 years 7 months 13 days |
Award units grant to certain employees (shares) | 5,000,000 | 9,000,000 | ||
Term for payout of awards over achievement of financial goals | 3 years | |||
Fair value of the options at grant date (usd per share) | $3.28 | $2.78 | ||
Excess tax benefits realized related to the stock based awards | $1 | $1 | $2 | |
Unrecognized compensation expense related to the unvested stock based awards | 25 | |||
Weighted average remaining vesting period of expenses expected to be recognized | 2 years | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price at which stock options granted to key salaried employees and non employee directors as compare to fair market value | 100.00% | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of stock options vested | 3 years | 4 years | ||
Stock Options Prior 2006 Fiscal | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 10 years | |||
Stock Options from 2006 Fiscal to 2012 Fiscal | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based awards granted contractual term maximum | 7 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of stock options vested | 3 years | |||
Accelerated stock compensation resulted by deemed change-in-control | 3 | |||
Award units grant to certain employees (shares) | 18,000 | 491,000 | 1,482,000 | |
Share granted to certain employees at a fair value (usd per share) | $6.15 | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restrictions on the restricted stock awards lapse | 1 year | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restrictions on the restricted stock awards lapse | 5 years | |||
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award units grant to certain employees (shares) | 2,274,000 | 296,000 | 894,000 | |
Stock Options and Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accelerated stock compensation resulted by deemed change-in-control | 9 | |||
Long Term Incentive Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accelerated stock compensation resulted by deemed change-in-control | 5 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accelerated stock compensation resulted by deemed change-in-control | $1 | |||
Stock Options | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of stock options vested | 3 years | |||
Fair value of the options at grant date (usd per share) | $1.40 | |||
Number of stock options granted during the period (shares) | 2,000,000 | |||
2012 Stock Awards Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of stock options vested | 10 years | |||
Number of reserved shares | 21,000,000 | |||
2012 Stock Awards Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award units grant to certain employees (shares) | 1,000,000 | |||
2012 Stock Awards Plan | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award units grant to certain employees (shares) | 2,000,000 | |||
Broad-based Employee Incentive Initiative | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of the options at grant date (usd per share) | $0.98 | |||
Number of stock options granted during the period (shares) | 8,000,000 | |||
2013 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award units grant to certain employees (shares) | 5,000,000 | |||
Fair value of the options at grant date (usd per share) | $1.38 |
STOCKBASED_AWARDS_Stock_Option
STOCK-BASED AWARDS - Stock Options Granted, Exercised and Outstanding (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | Feb. 25, 2012 |
Shares Under Option (In thousands) | ||||
Beginning Balance, Shares Under Option, Outstanding (shares) | 23,335 | 22,246 | 18,413 | |
Shares Under Option, Granted (shares) | 5,022 | 10,083 | 9,370 | |
Shares Under Option, Exercised (shares) | -1,944 | -3,121 | -9 | |
Shares Under Option, Canceled and forfeited (shares) | -5,533 | -5,873 | -5,528 | |
Ending Balance, Shares Under Option, Outstanding (shares) | 20,880 | 23,335 | 22,246 | 18,413 |
Shares Under Option, Vested and expected to vest in the future (shares) | 19,681 | |||
Shares Under Option, Exercisable (shares) | 10,018 | |||
Weighted Average Exercise Price | ||||
Beginning Balance, Weighted Average Exercise Price , Outstanding (usd per share) | $14.87 | $19.20 | $28.90 | |
Weighted Average Exercise Price, Granted (usd per share) | $7.54 | $6.58 | $2.54 | |
Weighted Average Exercise Price, Exercised (usd per share) | $3.71 | $2.29 | $2.28 | |
Weighted Average Exercise Price, Canceled and forfeited (usd per share) | $30.68 | $23.70 | $23.32 | |
Ending Balance, Weighted Average Exercise Price ,Outstanding (usd per share) | $9.98 | $14.87 | $19.20 | $28.90 |
Weighted Average Exercise Price, Vested and expected to vest in the future (usd per share) | $10.16 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $13.51 | |||
Additional Disclosures [Abstract] | ||||
Weighted Average Remaining Contractual Term, Outstanding | 6 years 6 months 18 days | 5 years 4 months 28 days | 4 years 7 months 17 days | 2 years 7 months 13 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest in the future | 6 years 4 months 28 days | |||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 3 months 22 days | |||
Aggregate Intrinsic Value, Outstanding | $61,073 | $15,982 | $10,402 | $0 |
Aggregate Intrinsic Value, Vested and expected to vest in the future | 57,694 | |||
Aggregate Intrinsic Value, Exercisable | $26,826 |
STOCKBASED_AWARDS_Assumptions_
STOCK-BASED AWARDS - Assumptions Related to Valuation of Company's LTIP/Stock Options (Detail) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 1.00% |
Volatility rate | 50.80% | 49.30% | 42.30% |
Risk-free interest rate | 1.20% | 0.60% | 0.40% |
Expected life | 4 years | 4 years | 4 years 6 months |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 2.10% |
Volatility rate | 53.20% | 51.30% | 61.20% |
Risk-free interest rate | 1.60% | 1.00% | 0.60% |
Expected life | 5 years | 6 years | 6 years |
STOCKBASED_AWARDS_Restricted_S
STOCK-BASED AWARDS - Restricted Stock Awards Activities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Restricted Stock Awards (In thousands) | |||
Granted, Restricted Stock (shares) | 5,000 | 9,000 | |
Restricted Stock Units (RSUs) | |||
Restricted Stock Awards (In thousands) | |||
Outstanding Beginning Balance, Restricted Stock (shares) | 0 | 972 | 151 |
Granted, Restricted Stock (shares) | 2,274 | 296 | 894 |
Lapsed, Restricted Stock (shares) | -133 | -1,268 | -64 |
Canceled and forfeited, Restricted Stock (shares) | -90 | 0 | -9 |
Outstanding Ending Balance, Restricted Stock (shares) | 2,051 | 0 | 972 |
Restricted Stock | |||
Restricted Stock Awards (In thousands) | |||
Outstanding Beginning Balance, Restricted Stock (shares) | 937 | 1,443 | 444 |
Granted, Restricted Stock (shares) | 18 | 491 | 1,482 |
Lapsed, Restricted Stock (shares) | -417 | -967 | -220 |
Canceled and forfeited, Restricted Stock (shares) | -2 | -30 | -263 |
Outstanding Ending Balance, Restricted Stock (shares) | 536 | 937 | 1,443 |
Weighted Average Grant-Date Fair Value | |||
Outstanding Beginning Balance, Weighted Average Grant-Date (usd per share) | 9.09 | 7.83 | 17.96 |
Granted, Weighted Average Grant-Date (usd per share) | 7.11 | 6.98 | 6.05 |
Lapsed, Weighted Average Grant-Date (usd per share) | 6.54 | 6.23 | 10.03 |
Canceled and forfeited, Weighted Average Grant-Date (usd per share) | 6.09 | 6.08 | 10.19 |
Outstanding Ending Balance, Weighted Average Grant-Date (usd per share) | 11.02 | 9.09 | 7.83 |
STOCKBASED_AWARDS_Components_o
STOCK-BASED AWARDS - Components of Pre-Tax Stock-Based Compensation Expense and Related Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation | $23 | $22 | $13 |
Income tax benefits | -9 | -8 | -5 |
Stock-based compensation, net of tax | $14 | $14 | $8 |
BENEFIT_PLANS_Additional_Infor
BENEFIT PLANS - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Feb. 21, 2014 | Nov. 29, 2014 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | Nov. 29, 2014 | Sep. 11, 2014 |
plan | |||||||
Agreement | |||||||
Employees | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Reduction in postretirement benefit obligation | $11 | ||||||
Contribution to pension plans | 79 | ||||||
Contribution to other postretirement benefits plan | 10 | ||||||
Defined benefit plan periodic cost increased in next fiscal year | 182 | ||||||
Defined benefit plan assets unrecognized gain loss recognized period | 3 years | ||||||
Assumed healthcare cost trend rate | 7.25% | ||||||
Specified age of employee for post retirement benefit plans | 65 years | ||||||
Company's service and interest cost would impact due to a 100 basis point change in the trend rate | 1 | ||||||
Company's accumulated postretirement benefit obligation would impact due to a 100 basis point decrease in the trend rate | 7 | ||||||
Company's accumulated postretirement benefit obligation would impact due to a 100 basis point increase in the trend rate | 8 | ||||||
Employer discretionary contribution amount | 100 | ||||||
Discount rate | 3.80% | 4.65% | 4.25% | ||||
Expected return on plan assets | 7.00% | 7.25% | |||||
Total contribution expenses of defined contribution plans | 16 | 11 | 17 | ||||
Contribution to pension plans | 39 | 39 | 38 | ||||
Number of plans included in other multiemployer pension plans | 12 | ||||||
Company's number of employees (employees) | 38,500 | ||||||
Number of collective bargaining agreements covering employees renegotiated (agreements) | 19 | ||||||
Number of employees renegotiated collective bargaining agreement (employees) | 11,700 | ||||||
Number of employees expired without renegotiated collective bargaining agreement (employees) | 800 | ||||||
Number of collective bargaining agreements covering employees expired without renegotiated (agreements) | 4 | ||||||
Number of collective bargaining agreements covering employees expired (agreements) | 8 | ||||||
Minimum | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Discount rate | 0.30% | 0.30% | 0.40% | ||||
Expected return on plan assets | 7.00% | ||||||
Minimum | Green Zone | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Maximum percentage of funded status | 80.00% | ||||||
Maximum | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Discount rate | 5.10% | 5.10% | 5.10% | ||||
Expected return on plan assets | 6.50% | ||||||
Maximum | Red Zone | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Maximum percentage of funded status | 65.00% | ||||||
Maximum | Yellow Zone | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Maximum percentage of funded status | 80.00% | ||||||
Number of Employees Covered by Collective Bargaining Agreements | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Number of employees covered by collective bargaining agreements (employees) | 16,000 | ||||||
Number of collective bargaining agreements covering employees renegotiated (agreements) | 49 | ||||||
Collective Bargaining Agreements Covering Employees Expire Within One Year | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Number of employee expire collective bargaining agreement (employees) | 1,200 | ||||||
Pension Benefits | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Reduction in postretirement benefit obligation | 0 | 0 | |||||
Defined benefit plan periodic cost increased | 32 | ||||||
Benefits paid | 97 | 147 | |||||
Contribution to pension plans | 165 | 118 | |||||
Pension Benefits | Minimum | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Contribution to pension plans | 55 | ||||||
Pension Benefits | Maximum | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Contribution to pension plans | 65 | ||||||
Lump Sum Pension Settlement | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Benefits paid | 272 | ||||||
Settlement of asset retirement obligations through noncash payments | 64 | ||||||
Discount rate | 4.10% | 4.10% | |||||
Expected return on plan assets | 6.50% | ||||||
Finalization of pension and other postretirement benefit plan valuation, before tax | -200 | ||||||
Pension and other postretirement benefit plans, adjustment, before reclassification adjustments | 141 | ||||||
Other Postretirement Benefits | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Reduction in postretirement benefit obligation | 5 | 11 | |||||
Defined benefit plan periodic cost increased | 6 | ||||||
Benefits paid | 4 | 6 | |||||
Contribution to pension plans | 4 | 6 | |||||
Multiemployer Postretirement Benefit Plans Other than Pensions | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Contribution to multi-employer plans | 89 | 87 | 90 | ||||
Retirees Before Age 65 | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Assumed healthcare cost trend rate | 0.25% | ||||||
Assumed healthcare cost ultimate trend rate | 4.50% | ||||||
Retirees After Age 65 | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Assumed healthcare cost trend rate | 6.00% | ||||||
Assumed healthcare cost ultimate trend rate | 4.50% | ||||||
SUPERVALU Retirement Plan | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Employer discretionary contribution amount | $100 | $47 |
BENEFIT_PLANS_Benefit_Obligati
BENEFIT PLANS - Benefit Obligation, Fair Value of Plan Assets and Funded Status of Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 21, 2014 | Dec. 31, 2014 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Change in Benefit Obligation | |||||
Plan amendment | ($11) | ||||
Changes in Plan Assets | |||||
Fair value of plan assets at beginning of year | 2,261 | ||||
Employer contributions | 39 | 39 | 38 | ||
Other | 5 | ||||
Fair value of plan assets at end of year | 2,317 | 2,261 | |||
Pension Benefits | |||||
Change in Benefit Obligation | |||||
Benefit obligation at beginning of year | 2,726 | 2,893 | |||
Plan amendment | 0 | 0 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 121 | 121 | 123 | ||
Actuarial loss (gain) | 371 | -141 | |||
Settlements paid | -272 | 0 | |||
Benefits paid | -97 | -147 | |||
Other | 0 | 0 | |||
Benefit obligation at end of year | 2,849 | 2,726 | 2,893 | ||
Changes in Plan Assets | |||||
Fair value of plan assets at beginning of year | 2,261 | 2,031 | |||
Actual return on plan assets | 260 | 259 | |||
Employer contributions | 165 | 118 | |||
Plan participants’ contributions | 0 | 0 | |||
Settlements paid | -272 | 0 | |||
Benefits paid | -97 | -147 | |||
Other | 0 | 0 | |||
Fair value of plan assets at end of year | 2,317 | 2,261 | 2,031 | ||
Unfunded status at end of year | -532 | -465 | |||
Other Postretirement Benefits | |||||
Change in Benefit Obligation | |||||
Benefit obligation at beginning of year | 81 | 109 | |||
Plan amendment | -5 | -11 | |||
Service cost | 1 | 2 | 2 | ||
Interest cost | 4 | 4 | 5 | ||
Actuarial loss (gain) | 5 | -12 | |||
Settlements paid | 0 | 0 | |||
Benefits paid | -4 | -6 | |||
Other | 0 | -5 | |||
Benefit obligation at end of year | 82 | 81 | 109 | ||
Changes in Plan Assets | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Employer contributions | 4 | 6 | |||
Plan participants’ contributions | 3 | 3 | |||
Settlements paid | 0 | 0 | |||
Benefits paid | -7 | -9 | |||
Other | 4 | 0 | |||
Fair value of plan assets at end of year | 4 | 0 | 0 | ||
Unfunded status at end of year | ($78) | ($81) |
BENEFIT_PLANS_Amounts_Recogniz
BENEFIT PLANS - Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | ($532) | ($465) |
Other Postretirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | -78 | -81 |
Other Pension Plan, Postretirement or Supplemental Plans | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accrued vacation, compensation and benefits | 8 | 9 |
Pension and other postretirement benefit obligations | 10 | 15 |
Unfunded status at end of year | 18 | 24 |
Accrued vacation, compensation and benefits | Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | -2 | -3 |
Accrued vacation, compensation and benefits | Other Postretirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | -6 | -6 |
Pension and other postretirement benefit obligations | Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | -530 | -462 |
Pension and other postretirement benefit obligations | Other Postretirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | ($72) | ($75) |
BENEFIT_PLANS_Amounts_Recogniz1
BENEFIT PLANS - Amounts Recognized in Accumulated Other Comprehensive Losses for Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total recognized in Accumulated other comprehensive loss, net of tax | ($423) | ($307) |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service benefit | 0 | 0 |
Net actuarial loss | -696 | -567 |
Total recognized in Accumulated other comprehensive loss | -696 | -567 |
Total recognized in Accumulated other comprehensive loss, net of tax | -432 | -324 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service benefit | 45 | 55 |
Net actuarial loss | -28 | -25 |
Total recognized in Accumulated other comprehensive loss | 17 | 30 |
Total recognized in Accumulated other comprehensive loss, net of tax | $9 | $17 |
BENEFIT_PLANS_Net_Periodic_Ben
BENEFIT PLANS - Net Periodic Benefit Cost (Income) and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) for Defined Benefit Pension and Other Postretirement Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Pension Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | $0 | $0 | $0 |
Interest cost | 121 | 121 | 123 |
Expected return on plan assets | -149 | -141 | -133 |
Amortization of prior service benefit | 0 | 0 | 0 |
Amortization of net actuarial loss | 68 | 101 | 111 |
Settlement | 64 | 0 | 0 |
Net periodic benefit cost (income) | 104 | 81 | 101 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income | |||
Prior service benefit | 0 | 0 | 0 |
Amortization of prior service benefit | 0 | 0 | 0 |
Amortization of net actuarial loss | 195 | -259 | 46 |
Amortization of net actuarial loss | 66 | 101 | 110 |
Total expense (benefit) recognized in Other comprehensive (loss) income | 129 | -360 | -64 |
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive (loss) income | 233 | -279 | 37 |
Other Postretirement Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | 1 | 2 | 2 |
Interest cost | 4 | 4 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service benefit | -16 | -13 | -12 |
Amortization of net actuarial loss | 3 | 5 | 6 |
Settlement | 0 | 0 | 0 |
Net periodic benefit cost (income) | -8 | -2 | 1 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Loss) Income | |||
Prior service benefit | -5 | -11 | 0 |
Amortization of prior service benefit | 16 | 12 | 13 |
Amortization of net actuarial loss | 6 | -16 | -7 |
Amortization of net actuarial loss | 3 | 5 | 6 |
Total expense (benefit) recognized in Other comprehensive (loss) income | 14 | -20 | 0 |
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive (loss) income | $6 | ($22) | $1 |
BENEFIT_PLANS_Weighted_Average
BENEFIT PLANS - Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | |
Benefit obligation assumptions: | |||
Discount rate | 3.80% | 4.65% | 4.25% |
Rate of compensation increase | 0.00% | 2.00% | |
Net periodic benefit cost assumptions: | |||
Discount rate | 4.25% | 4.55% | |
Rate of compensation increase | 0.00% | 2.00% | 2.00% |
Expected return on plan assets | 7.00% | 7.25% | |
Minimum | |||
Benefit obligation assumptions: | |||
Discount rate | 0.30% | 0.30% | 0.40% |
Net periodic benefit cost assumptions: | |||
Discount rate | 4.65% | ||
Expected return on plan assets | 7.00% | ||
Maximum | |||
Benefit obligation assumptions: | |||
Discount rate | 5.10% | 5.10% | 5.10% |
Net periodic benefit cost assumptions: | |||
Discount rate | 4.10% | ||
Expected return on plan assets | 6.50% |
BENEFIT_PLANS_Asset_Allocation
BENEFIT PLANS - Asset Allocation Targets and Actual Allocation of Pension Plan Assets (Detail) | 12 Months Ended | |
Feb. 22, 2014 | Feb. 23, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 100.00% | |
Plan assets allocation, Total | 100.00% | 100.00% |
Domestic equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 24.40% | |
Plan assets allocation, Total | 24.80% | 30.20% |
International equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 11.00% | |
Plan assets allocation, Total | 11.30% | 14.10% |
Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 6.20% | |
Plan assets allocation, Total | 6.20% | 5.50% |
Common collective trusts—fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 48.70% | |
Plan assets allocation, Total | 48.10% | 41.30% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 9.70% | |
Plan assets allocation, Total | 9.60% | 8.90% |
BENEFIT_PLANS_Fair_Value_of_As
BENEFIT PLANS - Fair Value of Assets of Company's Benefit Plans Held in Master Trust (Detail) (USD $) | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
In Millions, unless otherwise specified | |||
Changes in Plan Assets | |||
Total plan assets at fair value | $2,317 | $2,261 | |
Common Stock | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 489 | 579 | |
Common collective trusts—fixed income | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 259 | 253 | |
Common collective trusts—equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 336 | 344 | |
Government securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 225 | 181 | |
Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 339 | 295 | |
Corporate bonds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 292 | 290 | |
Real estate partnerships | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 162 | 149 | |
Private equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 144 | 125 | |
Mortgage-backed securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 17 | 37 | |
Other | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 54 | 8 | |
Level 1 | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 685 | 723 | |
Level 1 | Common Stock | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 489 | 579 | |
Level 1 | Common collective trusts—fixed income | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 1 | Common collective trusts—equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 1 | Government securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 95 | 92 | |
Level 1 | Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 53 | 52 | |
Level 1 | Corporate bonds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 1 | Real estate partnerships | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 1 | Private equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 1 | Mortgage-backed securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 1 | Other | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 48 | 0 | |
Level 2 | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 1,326 | 1,264 | |
Level 2 | Common Stock | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 2 | Common collective trusts—fixed income | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 259 | 253 | |
Level 2 | Common collective trusts—equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 336 | 344 | |
Level 2 | Government securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 130 | 89 | |
Level 2 | Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 286 | 243 | |
Level 2 | Corporate bonds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 292 | 290 | |
Level 2 | Real estate partnerships | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 2 | Private equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 2 | Mortgage-backed securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 17 | 37 | |
Level 2 | Other | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 6 | 8 | |
Level 3 | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 306 | 274 | |
Level 3 | Common Stock | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Common collective trusts—fixed income | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Common collective trusts—equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Government securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Corporate bonds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Real estate partnerships | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 162 | 149 | 136 |
Level 3 | Private equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 144 | 125 | 110 |
Level 3 | Mortgage-backed securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 0 | 0 | |
Level 3 | Other | |||
Changes in Plan Assets | |||
Total plan assets at fair value | $0 | $0 |
BENEFIT_PLANS_Summary_of_Chang
BENEFIT PLANS - Summary of Changes in Fair Value for Level 3 Investments (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 |
Changes in Plan Assets | ||
Fair value of plan assets at end of year | $2,317 | $2,261 |
Real estate partnerships | ||
Changes in Plan Assets | ||
Fair value of plan assets at end of year | 162 | 149 |
Private equity | ||
Changes in Plan Assets | ||
Fair value of plan assets at end of year | 144 | 125 |
Level 3 | ||
Changes in Plan Assets | ||
Fair value of plan assets at end of year | 306 | 274 |
Level 3 | Real estate partnerships | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 149 | 136 |
Purchases | 10 | 22 |
Sales | -7 | -26 |
Unrealized gains | 10 | 10 |
Realized gains and losses | 0 | 7 |
Fair value of plan assets at end of year | 162 | 149 |
Level 3 | Private equity | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 125 | 110 |
Purchases | 36 | 34 |
Sales | -21 | -24 |
Unrealized gains | 4 | 5 |
Realized gains and losses | 0 | 0 |
Fair value of plan assets at end of year | $144 | $125 |
BENEFIT_PLANS_Estimated_Future
BENEFIT PLANS - Estimated Future Benefit Payments to be Paid from Company's Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) (USD $) | Feb. 28, 2015 |
In Millions, unless otherwise specified | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2016 | $139 |
2017 | 129 |
2018 | 137 |
2019 | 142 |
2020 | 153 |
Years 2021-2025 | 843 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2016 | 6 |
2017 | 5 |
2018 | 5 |
2019 | 5 |
2020 | 6 |
Years 2021-2025 | $28 |
BENEFIT_PLANS_Schedule_of_Pens
BENEFIT PLANS - Schedule of Pension Funds Contributions (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | $39 | $39 | $38 |
Minneapolis Food Distributing Industry Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 10 | 9 | 9 |
Central States, Southeast and Southwest Areas Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 8 | 8 | 9 |
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 7 | 8 | 8 |
UFCW Unions and Participating Employers Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 4 | 4 | 3 |
Western Conference of Teamsters Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 4 | 3 | 2 |
UFCW Union Local 655 Food Employers Joint Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 2 | 2 | 2 |
UFCW Unions and Employers Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 1 | 2 | 2 |
All Other Multiemployer Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | $3 | $3 | $3 |
BENEFIT_PLANS_Schedule_of_Pens1
BENEFIT PLANS - Schedule of Pension Funds Contributions, Additional Information (Detail) | 12 Months Ended |
Feb. 28, 2015 | |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage representing PPA surcharges | 5.00% |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage representing PPA surcharges | 10.00% |
BENEFIT_PLANS_Schedule_of_Coll
BENEFIT PLANS - Schedule of Collective Bargaining Agreement Dates and Contributions to Each Plant (Detail) | 12 Months Ended |
Feb. 28, 2015 | |
Agreement | |
Minneapolis Food Distributing Industry Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 1 |
Expiration Date Regarding Collective Bargaining Agreement | 31-May-15 |
Percentage of associates under collective bargaining agreement | 100.00% |
Over 5% Contribution | Yes |
Central States, Southeast and Southwest Areas Pension Fund | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 10 |
Expiration Date Regarding Collective Bargaining Agreement | 31-May-16 |
Percentage of associates under collective bargaining agreement | 28.70% |
Over 5% Contribution | No |
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 1 |
Expiration Date Regarding Collective Bargaining Agreement | 5-Mar-16 |
Percentage of associates under collective bargaining agreement | 100.00% |
Over 5% Contribution | Yes |
UFCW Unions and Participating Employers Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 2 |
Expiration Date Regarding Collective Bargaining Agreement | 8-Jul-17 |
Percentage of associates under collective bargaining agreement | 68.90% |
Over 5% Contribution | Yes |
Western Conference of Teamsters Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 8 |
Expiration Date Regarding Collective Bargaining Agreement | 15-Jul-17 |
Percentage of associates under collective bargaining agreement | 50.20% |
Over 5% Contribution | No |
UFCW Union Local 655 Food Employers Joint Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 1 |
Expiration Date Regarding Collective Bargaining Agreement | 8-May-16 |
Percentage of associates under collective bargaining agreement | 100.00% |
Over 5% Contribution | Yes |
UFCW Unions and Employers Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 1 |
Expiration Date Regarding Collective Bargaining Agreement | 2-Apr-16 |
Percentage of associates under collective bargaining agreement | 90.00% |
Over 5% Contribution | Yes |
NET_EARNINGS_LOSS_PER_SHARE_Ca
NET EARNINGS (LOSS) PER SHARE - Calculation of Basic and Diluted Net Earnings (Loss) Per Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Earnings Per Share [Abstract] | |||
Net earnings (loss) from continuing operations | $127 | $13 | ($253) |
Less net earnings attributable to noncontrolling interests | -7 | -7 | -10 |
Net earnings (loss) from continuing operations attributable to SUPERVALU INC. | 120 | 6 | -263 |
Income (loss) from discontinued operations, net of tax | 72 | 176 | -1,203 |
Net earnings (loss) attributable to SUPERVALU INC. | $192 | $182 | ($1,466) |
Weighted average number of shares outstanding—basic (shares) | 260 | 255 | 212 |
Dilutive impact of stock-based awards (shares) | 4 | 3 | 0 |
Weighted average number of shares outstanding—diluted (shares) | 264 | 258 | 212 |
Basic net earnings (loss) per share attributable to SUPERVALU INC.: | |||
Continuing operations (usd per share) | $0.46 | $0.02 | ($1.24) |
Discontinued operations (usd per share) | $0.28 | $0.69 | ($5.67) |
Basic net earnings (loss) per share (usd per share) | $0.74 | $0.71 | ($6.91) |
Diluted net earnings (loss) per share attributable to SUPERVALU INC.: | |||
Continuing operations (usd per share) | $0.45 | $0.02 | ($1.24) |
Discontinued operations (usd per share) | $0.27 | $0.68 | ($5.67) |
Diluted net earnings (loss) per share (usd per share) | $0.73 | $0.70 | ($6.91) |
NET_EARNINGS_LOSS_PER_SHARE_Ad
NET EARNINGS (LOSS) PER SHARE - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 10 | 18 | 25 |
COMPREHENSIVE_INCOME_LOSS_AND_2
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Schedule of Changes in Accumulated Other Comprehensive Income (Details) (USD $) | 4 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 15, 2013 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Divestiture of NAI pension plan accumulated other comprehensive loss, net of tax (expense) of $0, $(31) and $0 | ($48) | |||
Pension and postretirement benefit plan accumulated other comprehensive loss at the end of fiscal year, net of tax | -423 | -307 | ||
Accumulated Defined Benefit Plans Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Pension and postretirement benefit plan accumulated other comprehensive loss at beginning of the fiscal year, net of tax | -612 | -307 | -612 | -657 |
Other comprehensive (loss) income before reclassifications, net of tax benefit (expense) of $73, $(85) and $(18), respectively | -188 | 202 | -20 | |
Pension settlement charge, net of tax expense of $(25), $0 and $0, respectively | 39 | 0 | 0 | |
Amortization of amounts included in net periodic benefit cost, net of tax expense of $(21), $(38) and $(40), respectively | 33 | 55 | 65 | |
Net current-period Other comprehensive income (loss), net of tax benefit (expense) of $27, $(123) and $(22), respectively | -116 | 257 | 45 | |
Divestiture of NAI pension plan accumulated other comprehensive loss, net of tax (expense) of $0, $(31) and $0 | 0 | 48 | 0 | |
Pension and postretirement benefit plan accumulated other comprehensive loss at the end of fiscal year, net of tax | ($423) | ($307) | ($612) |
COMPREHENSIVE_INCOME_LOSS_AND_3
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Supplemental Information for Schedule of Changes in AOCI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2014 | Feb. 23, 2013 | Feb. 25, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | $27 | ($123) | ($22) |
Accumulated Defined Benefit Plans Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit | -73 | 85 | 18 |
Pension settlement charge tax expense (benefit) | -25 | 0 | 0 |
Amortization of amounts included in net periodic benefit cost, net of tax (expense) | -21 | -38 | -40 |
Other comprehensive income (loss), tax | 27 | -123 | -22 |
Pension plan accumulated other comprehensive loss, tax | $0 | ($31) | $0 |
COMPREHENSIVE_INCOME_LOSS_AND_4
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Additional Information (Details) (USD $) | 4 Months Ended |
In Millions, unless otherwise specified | Jun. 15, 2013 |
Equity [Abstract] | |
Divestiture of NAI pension plan accumulated other comprehensive loss | ($48) |
COMPREHENSIVE_INCOME_LOSS_AND_5
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Amounts removed from AOCI (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax provision (benefit) | $58 | $5 | ($163) |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications | 118 | 93 | 105 |
Income tax provision (benefit) | -46 | -38 | -40 |
Total reclassifications, net of tax | 72 | 55 | 65 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of amounts included in net periodic benefit expense | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Selling and administrative expenses | 43 | 82 | 93 |
Cost of sales | 11 | 11 | 12 |
Reclassification out of Accumulated Other Comprehensive Income | Pension settlement charge | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Selling and administrative expenses | $64 | $0 | $0 |
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 2 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 11, 2014 | Dec. 31, 2014 | Nov. 29, 2014 | Feb. 28, 2015 | Feb. 22, 2014 | Apr. 25, 2015 | Aug. 31, 2014 | Mar. 31, 2013 |
violation | Retailer | case | case | |||||
Guarantor Obligations [Line Items] | ||||||||
Remaining terms for guarantees for other debt obligation minimum | 1 year | |||||||
Remaining terms for guarantees for other debt obligation maximum | 15 years | |||||||
Remaining term for guarantee for other debt obligation weighted average | 8 years | |||||||
Company's guarantee for debt obligations on outstanding indenture in connection with stock purchase agreement | $69 | |||||||
Guarantor obligation maximum exposure discounted | 54 | |||||||
Insurance Coverage Amount | 50 | |||||||
Insurance Claims Deductible Amount | 1 | |||||||
Other Costs | 5 | |||||||
Unusual or Infrequent Item, Insurance Proceeds | 3 | |||||||
Non-cancelable future purchase obligations | 244 | |||||||
Employer discretionary contribution amount | 100 | |||||||
Excess pension contributions required | 47 | |||||||
Number of other retailers who have filed similar complaints in other jurisdictions | 3 | |||||||
Number of loan transaction violations found in benefit plan audit (violations) | 3 | |||||||
Payments of additional benefit plan contributions and interest | 19 | |||||||
Benefit plan charge | 5 | |||||||
NAI Banners | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Tax effect of discontinued operation | 69 | |||||||
Minimum | NAI Banners | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Minimum required contributions to company retirement plan through the fiscal years | 2015 | |||||||
Maximum | NAI Banners | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Minimum required contributions to company retirement plan through the fiscal years | 2017 | |||||||
Subsequent Event | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Insurance Coverage Amount | 75 | |||||||
Insurance Claims Deductible Amount | 3 | |||||||
New Albertsons Inc | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Company's guarantee for debt obligations on outstanding indenture in connection with stock purchase agreement | 217 | |||||||
Guarantor obligation maximum exposure discounted | 195 | |||||||
2014 Technology Intrusion | ||||||||
Guarantor Obligations [Line Items] | ||||||||
New claims filed (cases) | 4 | |||||||
Fluctuating Work Week Class Action | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Pending claims | 3 | |||||||
Litigation settlement charge before tax | 5 | |||||||
Litigation settlement charge after tax | 3 | |||||||
Settlement fund | $5 |
SEGMENT_INFORMATION_Additional
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Feb. 28, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of retail operating segments | 3 |
SEGMENT_INFORMATION_Net_Sales_
SEGMENT INFORMATION - Net Sales of Retail Food and Independent Segment in Terms of Amounts and Percentage (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $17,820 | $17,153 | $17,136 |
% of total | 100.00% | 100.00% | 100.00% |
Independent Business | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 8,134 | 8,036 | 8,166 |
% of total | 45.60% | 46.90% | 47.70% |
Independent Business | Nonperishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 5,939 | 6,000 | 6,140 |
% of total | 33.00% | 35.00% | 36.00% |
Independent Business | Perishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 2,099 | 1,951 | 1,935 |
% of total | 12.00% | 11.00% | 11.00% |
Independent Business | Services to independent retail customers and other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 96 | 85 | 91 |
% of total | 1.00% | 1.00% | 1.00% |
Save-A-Lot | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 4,613 | 4,228 | 4,195 |
% of total | 25.90% | 24.60% | 24.50% |
Save-A-Lot | Nonperishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 2,986 | 2,829 | 2,865 |
% of total | 17.00% | 17.00% | 17.00% |
Save-A-Lot | Perishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,627 | 1,399 | 1,330 |
% of total | 9.00% | 8.00% | 8.00% |
Retail Food | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 4,879 | 4,649 | 4,733 |
% of total | 27.40% | 27.10% | 27.60% |
Retail Food | Nonperishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 2,677 | 2,600 | 2,689 |
% of total | 15.00% | 15.00% | 16.00% |
Retail Food | Perishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,574 | 1,463 | 1,428 |
% of total | 9.00% | 9.00% | 8.00% |
Retail Food | Pharmacy products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 510 | 491 | 512 |
% of total | 3.00% | 3.00% | 3.00% |
Retail Food | Fuel | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 83 | 67 | 77 |
% of total | 0.00% | 0.00% | 0.00% |
Retail Food | Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 35 | 28 | 27 |
% of total | 0.00% | 0.00% | 0.00% |
Corporate | Transition services revenue | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $194 | $240 | $42 |
% of total | 1.00% | 1.00% | 0.00% |
DISCONTINUED_OPERATIONS_Additi
DISCONTINUED OPERATIONS - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Feb. 22, 2014 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | Mar. 21, 2013 |
renewal_period | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Term of contract | 5 years | ||||
Number of renewal options available | 2 | ||||
Term of renewal option | 5 years | ||||
Net sales | $17,820 | $17,153 | $17,136 | ||
finance and accounting services | 13 | ||||
Discontinued operation, gain (loss) from disposal of discontinued operation, before income tax | 90 | ||||
Property tax refunds and interest income resulting from settlement of income tax audits | 6 | ||||
Discrete tax benefits (expenses) | 66 | ||||
New Albertsons Inc | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Discontinued operation, gain (loss) from disposal of preliminary estimated pre-tax loss on contract | 1,150 | ||||
Discontinued operation, gain (loss) from disposal of pre-tax property, plant and equipment related impairment | 203 | ||||
Loss on sale of NAI | 1,263 | ||||
Contracts | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on sale of NAI | 1,081 | ||||
Property, Plant and Equipment | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on sale of NAI | 182 | ||||
NAI Banners | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of businesses | 100 | ||||
Note receivable | 44 | ||||
Net proceeds from assumed debt and capital leases | 3,200 | ||||
Unfunded status estimated before tax | 1,138 | ||||
Net sales | 38 | 209 | |||
Discrete tax benefits (expenses) | 105 | ||||
NAI Banners | Minimum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Initial terms of arrangements | 12 months | ||||
NAI Banners | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Initial terms of arrangements | 5 years | ||||
Intersegment Eliminations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | 19 | 236 | |||
Transition Services Agreement | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | 192 | 240 | 42 | ||
Transitional TSA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | 60 | ||||
Alberston's LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | $177 | $174 | $178 |
DISCONTINUED_OPERATIONS_Summar
DISCONTINUED OPERATIONS - Summary of Company's Operating Results and Certain Other Directly Attributable Expenses (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations, net of tax | $72 | $176 | ($1,203) |
NAI Banners | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 0 | 1,235 | 17,230 |
Income (loss) before income taxes from discontinued operations | 6 | 121 | -1,238 |
Income tax benefit | -66 | -55 | -35 |
Income (loss) from discontinued operations, net of tax | $72 | $176 | ($1,203) |
SUBSEQUENT_EVENTS_Additional_I
SUBSEQUENT EVENTS - Additional Information (Detail) (Transition Services Agreement, Subsequent Event, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Apr. 16, 2015 | Apr. 16, 2015 |
payment | ||
Transition Services Agreement | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Transition and wind down services, number of payments to be received | 8 | |
Installment receipt amount | $6 | $6 |
Future minimum revenues | $50 | $50 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) (Allowance for Losses on Receivables, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 |
Allowance for Losses on Receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $19 | $16 | $13 |
Additions | 6 | 16 | 11 |
Deductions | -7 | -13 | -8 |
Balance at End of Fiscal Year | $18 | $19 | $16 |