Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 27, 2016 | Apr. 22, 2016 | Sep. 11, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 27, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SVU | ||
Entity Registrant Name | SUPERVALU INC | ||
Entity Central Index Key | 95,521 | ||
Current Fiscal Year End Date | --02-27 | ||
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 | 265,635,564 | ||
Entity Public Float | $ 2,062,978,553 |
CONSOLIDATED SEGMENT FINANCIAL
CONSOLIDATED SEGMENT FINANCIAL INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Net sales | |||
Net sales | $ 17,529 | $ 17,917 | $ 17,252 |
Net sales, % | 100.00% | 100.00% | 100.00% |
Operating earnings | |||
Operating earnings | $ 454 | $ 424 | $ 423 |
Total operating earnings % of total net sales | 2.60% | 2.40% | 2.50% |
Interest expense, net | $ 196 | $ 243 | $ 407 |
Equity in earnings of unconsolidated affiliates | (5) | (4) | (2) |
Earnings from continuing operations before income taxes | 263 | 185 | 18 |
Income tax provision | 85 | 58 | 5 |
Net earnings from continuing operations attributable to SUPERVALU INC. | 178 | 127 | 13 |
Income from discontinued operations, net of tax | 8 | 72 | 176 |
Net earnings including noncontrolling interests | 186 | 199 | 189 |
Less net earnings attributable to noncontrolling interests | (8) | (7) | (7) |
Net earnings attributable to SUPERVALU INC. | 178 | 192 | 182 |
Depreciation and amortization | |||
Depreciation and amortization | 276 | 285 | 302 |
Capital expenditures | |||
Capital expenditures | 281 | 240 | 113 |
Identifiable assets | |||
Identifiable assets | 4,370 | 4,434 | 4,283 |
Wholesale | |||
Net sales | |||
Net sales | $ 7,935 | $ 8,198 | $ 8,102 |
Net sales, % | 45.30% | 45.80% | 47.00% |
Operating earnings | |||
Operating earnings | $ 230 | $ 243 | $ 235 |
% of sales | 2.90% | 3.00% | 2.90% |
Depreciation and amortization | |||
Depreciation and amortization | $ 49 | $ 48 | $ 51 |
Capital expenditures | |||
Capital expenditures | 69 | 70 | 24 |
Identifiable assets | |||
Identifiable assets | 1,998 | 1,997 | 1,964 |
Save-A-Lot | |||
Net sales | |||
Net sales | $ 4,623 | $ 4,641 | $ 4,255 |
Net sales, % | 26.40% | 25.80% | 24.60% |
Operating earnings | |||
Operating earnings | $ 129 | $ 153 | $ 167 |
% of sales | 2.80% | 3.30% | 3.90% |
Depreciation and amortization | |||
Depreciation and amortization | $ 71 | $ 65 | $ 64 |
Capital expenditures | |||
Capital expenditures | 122 | 97 | 42 |
Identifiable assets | |||
Identifiable assets | 1,045 | 1,028 | 925 |
Save-A-Lot | |||
Net sales | |||
Net sales | $ 4,623 | $ 4,641 | $ 4,255 |
Net sales, % | 26.40% | 25.80% | 24.60% |
Retail | |||
Net sales | |||
Net sales | $ 4,769 | $ 4,884 | $ 4,655 |
Net sales, % | 27.20% | 27.30% | 27.00% |
Operating earnings | |||
Operating earnings | $ 94 | $ 122 | $ 77 |
% of sales | 2.00% | 2.50% | 1.70% |
Depreciation and amortization | |||
Depreciation and amortization | $ 153 | $ 172 | $ 187 |
Capital expenditures | |||
Capital expenditures | 90 | 73 | 47 |
Identifiable assets | |||
Identifiable assets | 1,327 | 1,381 | 1,367 |
Corporate | |||
Net sales | |||
Net sales | $ 202 | $ 194 | $ 240 |
Net sales, % | 1.10% | 1.10% | 1.40% |
Operating earnings | |||
Operating earnings | $ 1 | $ (94) | $ (56) |
Depreciation and amortization | |||
Depreciation and amortization | 3 | 0 | 0 |
Identifiable assets | |||
Identifiable assets | $ 0 | $ 28 | $ 27 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 17,529 | $ 17,917 | $ 17,252 |
Cost of sales | 14,945 | 15,329 | 14,712 |
Gross profit | 2,584 | 2,588 | 2,540 |
Selling and administrative expenses | 2,124 | 2,164 | 2,117 |
Intangible asset impairment charge | 6 | 0 | 0 |
Operating earnings | 454 | 424 | 423 |
Interest expense, net | 196 | 243 | 407 |
Equity in earnings of unconsolidated affiliates | (5) | (4) | (2) |
Earnings from continuing operations before income taxes | 263 | 185 | 18 |
Income tax provision | 85 | 58 | 5 |
Net earnings from continuing operations | 178 | 127 | 13 |
Income from discontinued operations, net of tax | 8 | 72 | 176 |
Net earnings including noncontrolling interests | 186 | 199 | 189 |
Less net earnings attributable to noncontrolling interests | (8) | (7) | (7) |
Net earnings attributable to SUPERVALU INC. | $ 178 | $ 192 | $ 182 |
Basic net earnings per common share: | |||
Basic net earnings per share from continuing operations (usd per share) | $ 0.64 | $ 0.46 | $ 0.02 |
Basic net earnings per share from discontinued operations (usd per share) | 0.03 | 0.28 | 0.69 |
Basic net earnings per share (usd per share) | 0.68 | 0.74 | 0.71 |
Diluted net earnings per common share: | |||
Diluted net earnings per share from continuing operations (usd per share) | 0.63 | 0.45 | 0.02 |
Diluted net earnings per share from discontinued operations (usd per share) | 0.03 | 0.27 | 0.68 |
Diluted net earnings per share (usd per share) | $ 0.66 | $ 0.73 | $ 0.70 |
Weighted average number of shares outstanding: | |||
Basic | 263 | 260 | 255 |
Diluted | 268 | 264 | 258 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net earnings including noncontrolling interests | $ 186 | $ 199 | $ 189 | |
Other comprehensive income (loss): | ||||
Recognition of pension and other postretirement benefits income (loss), net of tax | [1] | 5 | (116) | 257 |
Change in fair value of cash flow hedges | [2] | (4) | 0 | 0 |
Total other comprehensive income (loss) | 1 | (116) | 257 | |
Comprehensive income including noncontrolling interests | 187 | 83 | 446 | |
Less comprehensive income attributable to noncontrolling interests | (8) | (7) | (7) | |
Comprehensive income attributable to SUPERVALU INC. | $ 179 | $ 76 | $ 439 | |
[1] | Amounts are net of tax expense (benefit) of $14, $27, and $(123) for fiscal 2016, fiscal 2015 and fiscal 2014, respectively. | |||
[2] | Amounts are net of tax (benefit) expense of $(2), $0, and $0 for fiscal 2016, fiscal 2015 and fiscal 2014, respectively. |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Recognition of pension and other postretirement benefits income (loss), tax expense (benefit) | $ 14 | $ 27 | $ (123) |
Change in fair value of cash flow hedges, tax (benefit) expense | $ (2) | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Current assets | ||
Cash and cash equivalents | $ 57 | $ 114 |
Receivables, net | 451 | 482 |
Inventories, net | 1,036 | 984 |
Other current assets | 91 | 120 |
Total current assets | 1,635 | 1,700 |
Property, plant and equipment, net | 1,481 | 1,470 |
Goodwill | 867 | 865 |
Intangible assets, net | 55 | 48 |
Deferred tax assets | 228 | 250 |
Other assets | 104 | 101 |
Total assets | 4,370 | 4,434 |
Current liabilities | ||
Accounts payable | 1,118 | 1,121 |
Accrued vacation, compensation and benefits | 182 | 204 |
Current maturities of long-term debt and capital lease obligations | 124 | 35 |
Other current liabilities | 148 | 157 |
Total current liabilities | 1,572 | 1,517 |
Long-term debt | 2,197 | 2,445 |
Long-term capital lease obligations | 203 | 213 |
Pension and other postretirement benefit obligations | 578 | 602 |
Long-term tax liabilities | 81 | 119 |
Other long-term liabilities | $ 172 | $ 174 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Common stock, $0.01 par value: 400 shares authorized; 266 and 262 shares issued, respectively | $ 3 | $ 3 |
Capital in excess of par value | 2,808 | 2,810 |
Treasury stock, at cost, 1 and 2 shares, respectively | (5) | (33) |
Accumulated other comprehensive loss | (422) | (423) |
Accumulated deficit | (2,825) | (3,003) |
Total SUPERVALU INC. stockholders’ deficit | (441) | (646) |
Noncontrolling interests | 8 | 10 |
Total stockholders’ deficit | (433) | (636) |
Total liabilities and stockholders’ deficit | $ 4,370 | $ 4,434 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 27, 2016 | Feb. 28, 2015 |
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 | 266,000,000 | 262,000,000 |
Treasury stock, shares | 1,000,000 | 2,000,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Millions | Total | SUPERVALU INC. Stockholders’ Deficit | Common Stock | Capital in Excess of Par Value | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling interests |
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 earnings | 189 | 182 | 182 | 7 | ||||
Other comprehensive loss, net of tax of $123, $27 and $12 for 2014, 2015 and 2016 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 earnings | 199 | 192 | 192 | 7 | ||||
Other comprehensive loss, net of tax of $123, $27 and $12 for 2014, 2015 and 2016 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 186 | 178 | 178 | 8 | ||||
Other comprehensive loss, net of tax of $123, $27 and $12 for 2014, 2015 and 2016 respectively | 1 | 1 | 1 | |||||
Sales of common stock under option plans | 10 | 10 | (12) | 22 | ||||
Stock-based compensation | 25 | 25 | 25 | |||||
Distributions to noncontrolling interests | (10) | (10) | ||||||
Tax impact on stock-based awards and other | (9) | (9) | (15) | 6 | ||||
Balances at Feb. 27, 2016 | $ (433) | $ (441) | $ 3 | $ 2,808 | $ (5) | $ (422) | $ (2,825) | $ 8 |
CONSOLIDATED STATEMENTS OF STO9
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Parenthetical) - Accumulated Other Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Other comprehensive income (loss), tax | $ 12 | $ 27 | $ 123 |
Divestiture of New Albertsons, Inc.'s pension accumulated comprehensive loss | $ 31 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Cash flows from operating activities | |||
Net earnings including noncontrolling interests | $ 186 | $ 199 | $ 189 |
Income from discontinued operations, net of tax | 8 | 72 | 176 |
Net earnings from continuing operations | 178 | 127 | 13 |
Adjustments to reconcile Net earnings (loss) from continuing operations to Net cash provided by operating activities - continuing operations: | |||
Intangible asset impairment charge | 6 | 0 | 0 |
Asset impairment and other charges | 15 | 4 | 19 |
Loss on debt extinguishment | 10 | 41 | 175 |
Net gain on sale of assets and exits of surplus leases | (3) | (14) | (17) |
Depreciation and amortization | 276 | 285 | 302 |
LIFO charge (credit) | 3 | 8 | (9) |
Deferred income taxes | (1) | 4 | (39) |
Stock-based compensation | 26 | 23 | 22 |
Net pension and other postretirement benefits cost | 34 | 96 | 79 |
Contributions to pension and other postretirement benefit plans | (40) | (169) | (124) |
Other adjustments | 26 | 30 | 34 |
Changes in operating assets and liabilities, net of effects from business combinations: | |||
Receivables | 22 | 9 | (54) |
Inventories | (52) | (124) | 2 |
Accounts payable and accrued liabilities | (30) | 75 | (127) |
Income taxes | (8) | (15) | (79) |
Other changes in operating assets and liabilities | (41) | (47) | (68) |
Net cash provided by operating activities—continuing operations | 421 | 333 | 129 |
Net cash provided by (used in) operating activities—discontinued operations | 3 | 75 | (101) |
Net cash provided by operating activities | 424 | 408 | 28 |
Cash flows from investing activities | |||
Proceeds from sale of assets | 7 | 7 | 14 |
Purchases of property, plant and equipment | (261) | (239) | (111) |
Payments for business acquisition | (9) | (55) | 0 |
Other | (25) | 2 | 11 |
Net cash used in investing activities—continuing operations | (288) | (285) | (86) |
Net cash provided by (used in) investing activities—discontinued operations | 0 | 0 | 135 |
Net cash (used in) provided by investing activities | (288) | (285) | 49 |
Cash flows from financing activities | |||
Proceeds from issuance of debt | 138 | 350 | 2,098 |
Proceeds from the sale of common stock | 10 | 7 | 177 |
Payments of debt and capital lease obligations | (321) | (400) | (2,221) |
Payments for debt financing costs | (9) | (42) | (151) |
Distributions to noncontrolling interests | (10) | (8) | (9) |
Other | (1) | 1 | (1) |
Net cash used in financing activities—continuing operations | (193) | (92) | (107) |
Net cash used in financing activities—discontinued operations | 0 | 0 | (36) |
Net cash used in financing activities | (193) | (92) | (143) |
Net (decrease) increase in cash and cash equivalents | (57) | 31 | (66) |
Cash and cash equivalents at beginning of year | 114 | 83 | 149 |
Cash and cash equivalents of continuing operations at end of year | 57 | 114 | 83 |
The Company’s non-cash activities were as follows: | |||
Capital lease asset additions | 20 | 1 | 2 |
Purchases of property, plant and equipment included in Accounts payable | 28 | 21 | 19 |
Interest and income taxes paid: | |||
Interest paid, net of amounts capitalized | 176 | 180 | 227 |
Income taxes paid (refunded), net | $ 91 | $ (7) | $ 118 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 27, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—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 Supervalu operates on a 52/53 week fiscal year basis, with its fiscal year ending on the last Saturday in February. References to fiscal 2016 and 2014 relate to Supervalu's fiscal years ended February 27, 2016 and February 22, 2014, respectively, each consisting of 52 weeks. References to fiscal 2015 relate to Supervalu's fiscal year ended February 28, 2015 consisting of 53 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 Wholesale segment, at the point of sale for the Retail Segment and Save-A-Lot’s corporate retail operations, and upon delivery for Save-A-Lot’s licensee distribution operations. Typically, invoicing, shipping, delivery and customer receipt of Wholesale 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 professional services and third-party logistics operations 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. Incentives in the form of upfront cash payments to Save-A-Lot licensees are provided by the Company to help offset independent operator costs associated with opening and initially operating a store. Licensee incentives are recognized as a reduction of Net sales over the term of the incentive agreements, which coincides with the term of the license and supply agreements. Licensee incentive assets are included in Other current assets and Other long-term assets in the Consolidated Balance Sheets. 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 store advertising expenses are a component of Cost of sales and are expensed as incurred. Save-A-Lot and Retail advertising expenses, net of cooperative advertising reimbursements, were $64 , $62 and $77 for fiscal 2016 , 2015 and 2014 , respectively. Costs related to Wholesale and Save-A-Lot advertising services provided to independent retail customers and licensees, respectively, are included within cost of sales. 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 include 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 27, 2016 and February 28, 2015 , the Company had net book overdrafts of $131 and $145 , 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 $13 and $18 at February 27, 2016 and February 28, 2015 , respectively. Bad debt expense was $6 , $6 and $16 in fiscal 2016 , 2015 and 2014 , 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 27, 2016 and February 28, 2015 , approximately 57 percent and 55 percent , respectively, of the Company’s inventories were valued under the LIFO method. As of February 27, 2016 and February 28, 2015 , 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 52 percent and 50 percent of inventory as of February 27, 2016 and February 28, 2015 , 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 27, 2016 and February 28, 2015 , approximately 26 percent and 26 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 17 percent and 19 percent of the Company’s inventories as of February 27, 2016 and February 28, 2015 , 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 2016 and 2014 , 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 2016 and 2014 purchases. As a result, Cost of sales decreased by $1 and $14 in fiscal 2016 and 2014 , 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 $215 and $211 as of February 27, 2016 and February 28, 2015 , respectively. The Company evaluates inventory shortages throughout each fiscal year based on actual physical counts in its stores and distribution 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 $1 was capitalized in fiscal 2016 , 2015 and 2014 , respectfully. 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 disposition represents a strategic transaction that has a major effect on operations and financial results. In addition, the Company evaluates whether the business has met the criteria 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 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 value. The reviews consist of comparing estimated fair value to the carrying value at the reporting unit level. For Wholesale and Retail, the Company’s reporting units are the operating segments of the business, which consist of Wholesale and Retail. Goodwill was assigned to these reporting units as of the acquisition date, with no amounts being allocated between reporting units. For Save-A-Lot, the reporting units are the components of the business: Licensee Distribution and Corporate Stores. Goodwill has been allocated between the Save-A-Lot reporting units on a relative fair value basis. 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. During the fiscal 2016 review, the Company separated the Save-A-Lot reporting unit into the Licensee Distribution and Corporate Stores reporting units. There were no changes in the Company’s reporting units as a result of the fiscal 2015 review. 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 impairment review calculation contains significant judgments and estimates, including the weighted average cost of capital, any specified risk profile of the tradename, and future revenue and profitability. See Note 3—Goodwill and Intangible Assets for additional information. 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 value 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. Wholesale’s long-lived assets are reviewed for impa irment 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’s long-lived assets are reviewed for impairment at the geographic market group level for six geographic marke t groupings of individual retail stores. 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 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 dis count rates ranging from 0.3 percent to 5.1 percent for fiscal 2016 , 0.3 percent to 5.1 percent for fiscal 2015 and 0.3 percent to 5.1 percent for fiscal 2014 . Changes in the Company’s insurance liabilities consisted of the following: 2016 2015 2014 Beginning balance $ 93 $ 103 $ 97 Expense 29 31 34 Claim payments (28 ) (32 ) (33 ) Reclassification of insurance recoveries to receivables 1 (9 ) 5 Ending balance 95 93 103 Less current portion (31 ) (30 ) (33 ) Long-term portion $ 64 $ 63 $ 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 $6 as of February 27, 2016 and February 28, 2015 , respectively. Amounts due from insurance companies were $11 and $9 as of February 27, 2016 and February 28, 2015 , 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 Accumulated other comprehensive income (loss), net of tax, in the Consolidated Balance Sheets. 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 healthcare and compensation 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. Effective for fiscal 2017, the Company adopted an alternative approach for determining the interest and service cost components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. The Company has elected to use the full yield curve approach in the estimation of these components of net periodic benefit cost effective in fiscal 2017 by applying the specific spot rates along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The change does not affect the measurement of the total benefit obligation. See Note 11—Benefit Plans for additional information on the impact of the change in estimate. 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 an employee 401(k) retirement savings plan. 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. The Company utilized fair value measurements in reporting results of operation and financial position within its Consolidated Financial Statements for the following: • Acquired assets and liabilities discussed in Note 2—Business Acquisitions were measured at fair value using Level 3 inputs. • Acquired intangible assets and intangible asset impairment charges discussed in Note 3—Goodwill and Intangible Assets were measured at fair value using Level 3 inputs. • Impairment charges 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. • Assets and liabilities measured at fair value on a recurring basis using Level 1 and Level 2 inputs as discussed in Note 6—Fair Value Measurements . • Stock-based compensation awards were measured at their grant date fair value upon issuance using Level 3 inputs as discussed in Note 10—Stock-based Awards . • Discontinued operations property, plant and equipment impairment charges and finalization adjustments related to the sale of NAI were recorded in Income from discontinued operations, net of tax, as discussed in Note 16—Discontinued Operations , and were measured at fair value using Level 3 inputs. 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 Accumulated other comprehensive loss in the Consolidated Balance Sheets reclassified into earnings in the period in which the hedged transaction affects earnings. 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, the Company enters into energy commitments for certain amounts of electricity and natural gas purchases that it expects to utilize in the normal course of business. Changes in the fair value of 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 expense is measured by the fair value of the award on the date of grant, net of the estimated forfeiture rate. The Company uses the straight-line method to recognize stock-based compensation expense over the requisite service period related to each award. 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 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 e |
BUSNIESS ACQUISITIONS
BUSNIESS ACQUISITIONS | 12 Months Ended |
Feb. 27, 2016 | |
Business Combinations [Abstract] | |
BUSNIESS ACQUISITIONS | NOTE 2—BUSINESS ACQUISITIONS The Consolidated Financial Statements reflect the final purchase accounting allocations of the acquisitions discussed below. Pro forma information for the acquisitions discussed below are not presented since the results of operations of the acquired businesses, both individually and in the aggregate, are not material to the Company’s Consolidated Financial Statements. Recognized goodwill represents future economic benefits expected to arise from the Company’s presence in the retail market. Retail Stores During fiscal 2016, the Company paid $7 to acquire equipment and leasehold improvements, identifiable finite-lived intangible assets and inventories of four retail stores from multiple independent retail customers. The purchase price was allocated to the acquired store assets and such assets were recognized at their estimated fair values and included inventories, property, plant and equipment, and goodwill. During 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. 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 . Save-A-Lot Licensee Stores During fiscal 2016, the Compan y paid $2 to acquire equipment and leasehold improvements, identifiable finite-lived intangible assets and inventories associated with eight licensed Save-A-Lot stores from multiple licensee operators. The acquired store assets were recognized at their estimated fair values and included favorable operating lease intangible assets, goodwill, inventories and property, plant and equipment. The remaining terms of the favorable operating l eases ranged from five to ten years. During fiscal 2015, the Company paid $19 to acquire 38 licensed Save-A-Lot stores from multiple licensee operators through 20 separate purchase agreements. The fair value of acquired store assets were recognized at their estimated fair values and included $8 of favorable operating lease intangible assets, $5 of goodwill, $3 of inventories and $3 of property, plant and equipment. The remaining terms of the favorable operating leases ranged from three to thirteen years. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Feb. 27, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 3—GOODWILL AND INTANGIBLE ASSETS Changes in the Company’s Goodwill and Intangible assets, net consisted of the following: February 22, Additions Impairments Other net adjustments February 28, Additions Impairments Other net adjustments February 27, Goodwill: Wholesale $ 710 $ — $ — $ — $ 710 $ — $ — $ — $ 710 Save-A-Lot 137 4 — — 141 1 — — 142 Retail — 14 — — 14 1 — — 15 Total goodwill $ 847 $ 18 $ — $ — $ 865 $ 2 $ — $ — $ 867 Intangible assets: Favorable operating leases, prescription files, customer lists and other (accumulated amortization of $97 and $86 as of February 27, 2016 and February 28, 2015, respectively) $ 111 $ 13 $ — $ — $ 124 $ 25 $ (6 ) $ (1 ) $ 142 Tradenames and trademarks—indefinite useful lives 9 — — — 9 — — — 9 Non-compete agreements (accumulated amortization of $2 and $2 as of February 27, 2016 and February 28, 2015, respectively) 3 — — — 3 — — — 3 Total intangible assets 123 13 — — 136 25 (6 ) (1 ) 154 Accumulated amortization (80 ) (8 ) — — (88 ) (11 ) — — (99 ) Total intangible assets, net $ 43 $ 48 $ 55 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 2016 , which indicated the fair value of the Retail, Wholesale and the Save-A-Lot Corporate Stores reporting units exceeded their carrying values by approximately 100 percent , 95 percent and 35 percent , respectively. The fair value of the Save-A-Lot Licensee Distribution reporting unit was in excess of 100 percent of its carrying value and the fair values of intangible assets with indefinite useful lives was in excess of their carrying values. In the first quarter ended June 20, 2015, the Company recorded intangible assets using valuations based on Level 3 inputs consisting primarily of certain distribution center operation rights, purchase options and other intangibles received by the Company under the letter agreement the Company entered into with Albertson's dated May 28, 2015, as described in Note 14—Commitments, Contingencies and Off-Balance Sheet Arrangements . In the third quarter ended December 5, 2015, the Company received a notice pursuant to which the Company could exercise certain purchase options. As a result, the Company performed a review of the associated intangible assets for impairment, which indicated the carrying value of the intangible exceeded its estimated value. The Company recorded a non-cash intangible impairment charge of $6 within its Wholesale segment. 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 $11 , $8 and $8 was recorded in fiscal 2016 , 2015 and 2014 , respectively. Future amortization expense is expected to average approximately $7 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. 27, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES | NOTE 4—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: 2016 2015 2014 Beginning balance $ 34 $ 47 $ 61 Additions 8 4 4 Payments (12 ) (12 ) (16 ) Adjustments (1 ) (5 ) (2 ) Ending balance $ 29 $ 34 $ 47 In fiscal 2016, the Company determined it would close 15 non-strategic Save-A-Lot corporate stores and recorded an impairment charge of $5 related to the operating leases for these stores 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: 2016 2015 2014 Property, plant and equipment: Carrying value $ 11 $ 4 $ 45 Fair value measured using Level 3 inputs 3 1 21 Impairment charge $ 8 $ 3 $ 24 Fiscal 2016 and 2015 impairment charges are primarily related to the closure of non-strategic Save-A-Lot corporate 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, and impairments of Wholesale distribution centers and Save-A-Lot stores. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Feb. 27, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 5—PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net, consisted of the following: 2016 2015 Land $ 104 $ 104 Buildings 1,295 1,252 Property under construction 79 71 Leasehold improvements 722 709 Equipment 2,082 2,021 Capitalized lease assets 294 314 Total property, plant and equipment 4,576 4,471 Accumulated depreciation (2,897 ) (2,779 ) Accumulated amortization on capitalized lease assets (198 ) (222 ) Total property, plant and equipment, net $ 1,481 $ 1,470 Depreciation expense was $248 , $258 and $275 for fiscal 2016 , 2015 and 2014 , respectively. Amortization expense related to capitalized lease assets was $18 , $19 and $19 for fiscal 2016 , 2015 and 2014 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Feb. 27, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6—FAIR VALUE MEASUREMENTS Recurring fair value measurements were as follows: February 27, 2016 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 6 $ — $ — $ 6 Total $ 6 $ — $ — $ 6 Liabilities: Deferred compensation Other current liabilities $ — $ 7 $ — $ 7 Deferred compensation Other long-term liabilities — 35 — 35 Diesel fuel derivatives Other current liabilities — 2 — 2 Interest rate swap derivative Other current liabilities — 3 — 3 Interest rate swap derivative Other long-term liabilities — 3 — 3 Total $ — $ 50 $ — $ 50 February 28, 2015 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 7 $ — $ — $ 7 Total $ 7 $ — $ — $ 7 Liabilities: Deferred compensation Other current liabilities $ — $ 13 $ — $ 13 Deferred compensation Other long-term liabilities — 33 — 33 Diesel fuel derivatives Other current liabilities — 1 — 1 Total $ — $ 47 $ — $ 47 Deferred Compensation Deferred compensation assets consist of mutual fund investments used to fund certain deferred compensation plans. The fair values of deferred compensation assets are based on quoted market prices of the mutual funds held by the plan at each reporting period. Mutual funds traded in active markets are classified within Level 1 of the fair value hierarchy. Deferred compensation assets are restricted for use to pay deferred compensation liabilities. Deferred compensation liabilities consist of obligations to participants in deferred compensation plans, and are determined based on the fair value of the related deferred compensation plan investments or designated phantom investments of the plan at each reporting period. Diesel Fuel Derivatives Commodity derivatives consist of forward fixed price purchase diesel fuel contracts. The fair value of the Company’s diesel fuel derivatives are measured using Level 2 inputs due to the Company’s use of observable market quotations without significant adjustments to determine fair values. Fuel derivative losses are included within Cost of sales in the Consolidated Statements of Operations and were $3 , $1 and $0 for fiscal 2016 , 2015 and 2014 , respectively. Interest Rate Swap Derivatives 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 for interest payments. In fiscal 2016 and 2015, no amounts were recorded in the Consolidated Statements of Operations for interest rate swap derivative ineffectiveness or reclassifications from Accumulated other comprehensive loss into earnings. The fair value of the interest rate swap is 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 27, 2016 , a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swap by approximately $6 ; and a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swap by approximately $3 . The Company utilized Level 3 fair value inputs in measuring certain non-recurring transactions in fiscal 2016. See Note 1—Summary of Significant Accounting Policies . Fair Value Estimates 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 $1 and $2 as of February 27, 2016 and February 28, 2015 , respectively. 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 was less than the carrying amount, excluding debt financing costs, by approximately $236 as of February 27, 2016 and greater than the carrying amount by approximately $59 as of February 28, 2015 . The estimated fair value was based on market quotes, where available, or market values for similar instruments, using Level 2 and 3 inputs. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Feb. 27, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 7—LONG-TERM DEBT The Company’s long-term debt consisted of the following: February 27, February 28, 4.50% Secured Term Loan Facility due March 2019 $ 1,459 $ 1,469 6.75% Senior Notes due June 2021 400 400 7.75% Senior Notes due November 2022 350 350 8.00% Senior Notes due May 2016 — 278 1.93% to 4.00% Revolving ABL Credit Facility due February 2021 138 — Debt financing costs, net (45 ) (35 ) Original issue discount on debt (5 ) (8 ) Total debt 2,297 2,454 Less current maturities of long-term debt (100 ) (9 ) Long-term debt $ 2,197 $ 2,445 Future maturities of long-term debt, excluding the original issue discount on debt and debt financing costs, as of February 27, 2016 , consist of the following: Fiscal Year 2017 $ 102 2018 — 2019 — 2020 1,357 2021 138 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 27, 2016 and February 28, 2015 , the Company had outstanding borrowings of $1,459 and $1,469 , respectively, under its $1,500 term loan facility (the “Secured Term Loan Facility”), which is secured by substantially all of the Company’s real estate, equipment and certain other assets, and bears interest at the rate of LIBOR plus 3.50 percent subject to a floor on LIBOR of 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 interests 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 27, 2016 and February 28, 2015 , there was $781 and $776 , 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 $1,000 asset-based revolving ABL credit facility (the “Revolving ABL Credit Facility”). As of February 27, 2016 and February 28, 2015 , $102 and $11 of the Secured Term Loan Facility was classified as current, 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. The Company must also 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 27, 2016 , a $99 prepayment will be required under the Secured Term Loan Facility no later than 90 days after the fiscal year ended February 27, 2016 . On February 3, 2016, the Company entered into Amendment No. 3 (the "Third ABL Amendment") to the Revolving ABL Credit Facility that extended the maturity date of the facility to February 3, 2021 from its prior maturity date of September 30, 2019. The Third ABL Amendment also reduced the rate at which interest is paid on loans under the Revolving ABL Credit Facility by 25 basis points to, at the Company’s election, LIBOR plus an interest rate margin between 1.25 percent to 1.75 percent or prime plus an interest rate margin between 0.25 percent to 0.75 percent, in each case, depending on quarterly average excess availability. The Third ABL Amendment also reduced the letter of credit fee under the Revolving ABL Credit Facility to 1.25 percent to 1.75 percent, depending on quarterly average excess availability. Further, the amount of the facility fee required to be paid quarterly in arrears by the Company was reduced to 0.25 percent multiplied by the aggregate unused commitments under the Revolving ABL Credit Facility. This Third ABL Amendment also permits the Company and its subsidiaries to undertake certain transactions reasonably determined by the Company to be necessary to effectuate a spin-off of Save-A-Lot. In addition, the Third ABL Amendment also modifies certain representations and warranties, covenants and events of default set forth in the Revolving ABL Credit Facility, and provides for the adjustment of certain covenants in the event a spin-off of Save-A-Lot is consummated. As of February 27, 2016 and February 28, 2015 , the Company had $138 and $ 0 of outstanding borrowings under the Revolving ABL Credit Facility, respectively. As of February 27, 2016 , letters of credit outstanding under the Revolving ABL Credit Facility were $69 at fees of 1.625 percent, and the unused available credit under this facility was $744 with facility fees of 0.25 percent. As of February 28, 2015 , letters of credit outstanding under the Company's Revolving ABL Credit Facility w ere $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 27, 2016 , the Revolving ABL Credit Facility was secured on a first-priority basis by $1,238 of certain inventory assets included in Inventories, net, $222 of certain receivables included in Receivables, net, $23 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 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. 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 27, 2016 , the Company borrowed $840 and repaid $702 under its Revolving ABL Credit Facility. During the fiscal year ended February 28, 2015 , the Company borrowed $3,268 and repaid $3,268 under the Revolving ABL Credit Facility. 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 their 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 27, 2016 , that aggregate cap on Restricted Payments was approximately $401 . The Revolving ABL Credit Facility permits dividends up to $75 per fiscal year, not to exceed $175 in the aggregate over the life of the Revolving ABL Credit Facility, as long as no Cash Dominion Event (as defined in the Revolving ABL Credit Facility) exists. Those caps could be reduced by certain debt prepayments made by the Company. 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 January 6, 2016, the Company used borrowings under the Revolving ABL Credit Facility and cash from operations to fund the redemption of the remaining $278 of 8.00 percent Senior Notes due May 2016 (the "2016 Notes"), and to pay accrued and unpaid interest on the redeemed 2016 Notes and the applicable redemption premium of approximately $6 , which was expensed. In addition, non-cash charges of $1 for the write-off of the remaining unamortized financing costs on the redeemed 2016 Notes were incurred. The $400 of 6.75 percent Senior Notes due June 2021, and the $350 of 7.75 percent Senior Notes due November 2022 contain, and before their redemption the 2016 Notes contained, 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. 27, 2016 | |
Leases [Abstract] | |
LEASES | NOTE 8—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 27, 2016 consist of the following: Lease Obligations Fiscal Year Operating Leases Capital Leases 2017 $ 141 $ 42 2018 126 42 2019 105 39 2020 85 36 2021 62 31 Thereafter 167 122 Total future minimum obligations $ 686 312 Less interest (85 ) Present value of net future minimum obligations 227 Less current capital lease obligations (24 ) Long-term capital lease obligations $ 203 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: 2016 2015 2014 Minimum rent $ 156 $ 148 $ 143 Contingent rent 5 6 5 Rent expense 161 154 148 Less subtenant rentals (29 ) (29 ) (27 ) Total net rent expense $ 132 $ 125 $ 121 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 27, 2016 , consist of the following: Lease Receipts Fiscal Year Operating Leases Direct Financing Leases 2017 $ 21 $ 1 2018 18 1 2019 12 — 2020 7 — 2021 3 — Thereafter 11 — Total minimum lease receipts $ 72 2 Less interest — Net investment in direct financing leases 2 Less current portion (1 ) Long-term portion $ 1 The carrying value of owned property leased to third parties under operating leases was as follows: 2016 2015 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. 27, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Tax Provision The provision (benefit) for income taxes consisted of the following: 2016 2015 2014 Current Federal $ 77 $ 35 $ 30 State 10 7 5 Total current 87 42 35 Deferred (2 ) 16 (30 ) Total income tax provision $ 85 $ 58 $ 5 The difference between the actual tax provision and the tax provision computed by applying the statutory federal income tax rate to Earnings from continuing operations before income taxes is attributable to the following: 2016 2015 2014 Federal taxes based on statutory rate $ 92 $ 62 $ 4 State income taxes, net of federal benefit 6 12 — Tax contingency (6 ) (1 ) (1 ) Change in valuation allowance 4 — (1 ) Pension (4 ) (8 ) — Other (7 ) (7 ) 3 Total income tax provision $ 85 $ 58 $ 5 Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the basis in assets and liabilities for financial reporting and income tax purposes. The Company’s deferred tax assets and liabilities consisted of the following: 2016 2015 Deferred tax assets: Compensation and benefits $ 235 $ 234 Self-insurance 27 25 Property, plant and equipment and capitalized lease assets 47 72 Loss on sale of discontinued operations 1,388 1,387 Net operating loss carryforwards 15 19 Other 83 69 Gross deferred tax assets 1,795 1,806 Valuation allowance (1,408 ) (1,404 ) Total deferred tax assets 387 402 Deferred tax liabilities: Property, plant and equipment and capitalized lease assets (108 ) (88 ) Inventories (6 ) (14 ) Intangible assets (24 ) (27 ) Other (21 ) (23 ) Total deferred tax liabilities (159 ) (152 ) Net deferred tax assets $ 228 $ 250 During the fourth quarter of fiscal 2016, the Company early adopted ASU 2015-17, which requires that all deferred taxes be presented as non-current on the Consolidated Balance Sheet. Refer to Note 1—Summary of Significant Accounting Policies , for further information on this balance sheet reclassification. 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 $315 for tax purposes. The NOL carryforwards expire beginning in fiscal 2017 and continuing through fiscal 2035 and have a $6 valuation allowance. In fiscal 2014, the sale of NAI resulted in an allocation of tax expense between continuing and discontinued operations and 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 as there is no 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 positions consisted of the following: 2016 2015 2014 Beginning balance $ 94 $ 76 $ 187 Increase based on tax positions related to the current year 5 15 15 Decrease based on tax positions related to the current year — — — Increase based on tax positions related to prior years — 15 8 Decrease based on tax positions related to prior years (23 ) (4 ) (2 ) Decrease related to settlements with taxing authorities — (3 ) (128 ) Decrease due to lapse of statute of limitations (6 ) (5 ) (4 ) Ending balance $ 70 $ 94 $ 76 Included in the balance of unrecognized tax benefits as of February 27, 2016 , February 28, 2015 and February 22, 2014 are tax positions, net of tax, of $34 , $36 and $48 , respectively, which would reduce the Company’s effective tax rate if recognized in future periods. Because existing tax positions will continue to generate increased liabilities for the Company for unrecognized tax benefits over the next 12 months, and since the Company is routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount or range of such change cannot be made at this time. However, the Company does not expect the change, if any, to have a material effect on the Company's Consolidated Balance Sheets, Consolidated Statements of Operations, or Consolidated Statements of Cash Flows within the next 12 months. The Company recognized interest income of $9 , $7 and $4 in fiscal 2016, 2015 and 2014 in Interest expense, respectively, and penalty expense of $5 in fiscal 2016 in Selling and administrative expenses, in the Consolidated Statements of Operations. At February 27, 2016 and February 28, 2015, the Company had accrued interest of $16 and $26 , respectively, related to uncertain tax positions recorded in Other current liabilities, and Long-term tax liabilities in the Consolidated Balance Sheets. At February 27, 2016 and February 28, 2015, the Company had accrued penalties of $5 and $0 , respectively, related to uncertain tax positions recorded in Long-term tax liabilities in the Consolidated Balance Sheets. 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 27, 2016 , the Company is no longer subject to federal income tax examinations for fiscal years before 2014 and in most states is no longer subject to state income tax examinations for fiscal years before 2006. |
STOCK-BASED AWARDS
STOCK-BASED AWARDS | 12 Months Ended |
Feb. 27, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED AWARDS | As of February 27, 2016 , the Company has stock options, restricted stock awards and restricted stock units (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. At the discretion of the Board of Directors or the Compensation Committee, the Company has granted stock options 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, restricted stock awards, restricted stock units and performance awards to executive officers and other key salaried employees. Stock options have also been granted to the Company’s non-employee directors. Prior to fiscal 2013, stock options vested over four years and starting in fiscal 2013, stock options vest over three years. The vesting of restricted stock awards and restricted stock units is determined at the discretion of the Board of Directors or the Compensation Committee. The restrictions on the restricted stock awards and restricted stock units generally lapse between one and five years from the date of grant and the expense is recognized over the period during which the restrictions expire. As of February 27, 2016 , there were 18 shares available for future issuance of stock-based awards under the 2012 Stock Plan. Common stock has been delivered out of treasury stock or newly issued shares upon the exercise or vesting 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 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 (In thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) Outstanding, February 23, 2013 22,246 $ 19.20 4.63 $ 10,402 Granted 10,083 6.58 Exercised (3,121 ) 2.29 Canceled and forfeited (5,873 ) 23.70 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 Granted 5,531 7.44 Exercised (1,723 ) 5.84 Canceled and forfeited (3,336 ) 24.94 Outstanding, February 27, 2016 21,352 $ 7.37 5.93 $ 6,827 Vested and expected to vest in the future as of February 27, 2016 20,089 $ 7.39 5.77 $ 6,558 Exercisable as of February 27, 2016 10,888 $ 7.48 4.28 $ 5,722 For the Company's annual grant made in the first quarter of fiscal 2016, 2015 and 2014, the Company granted 4 , 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 $3.67 , $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 2016, 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 $2.08 per share and 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: 2016 2015 2014 Dividend yield — % — % — % Volatility rate 49.0 – 56.5% 50.8 – 53.2% 49.3 – 51.3% Risk-free interest rate 1.2 – 1.4% 1.2 – 1.6% 0.6 – 1.0% Expected option life 4.0 – 4.0 years 4.0 – 5.0 years 4.0 – 6.0 years Restricted Stock Restricted stock awards and restricted stock unit activity consisted of the following: Restricted Stock Units (In thousands) Restricted Stock Awards (In thousands) Weighted Average Grant Date Fair Value (1) 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 Granted 65 2,339 8.74 Lapsed (742 ) (456 ) 6.82 Canceled and forfeited (125 ) (239 ) 8.79 Outstanding, February 27, 2016 1,249 2,180 $ 8.68 (1) Weighted average grant date fair value is only used for restricted stock awards. In fiscal 2016, the Company granted 2 shares of restricted stock awards to certain employees under the Company's 2012 Stock Plan. The restricted stock awards vest over a three year period from the date of the grant. In fiscal 2015, the Company granted 2 shares of restricted stock units to certain employees under the Company's 2012 Stock Plan. The restricted stock awards vest over a three year period from the date of the 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: 2016 2015 2014 Stock-based compensation $ 25 $ 23 $ 22 Income tax benefits (10 ) (9 ) (8 ) Stock-based compensation, net of tax $ 15 $ 14 $ 14 The Company realized excess tax shortfalls of $1 , $1 and $1 on the exercise of stock-based awards in fiscal 2016 , 2015 and 2014 , respectively. Unrecognized Stock-Based Compensation Expense As of February 27, 2016 , there was $31 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. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Feb. 27, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFIT PLANS | Substantially all employees of the Company 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. In fiscal 2016, the Company amended the SUPERVALU Retiree Benefit Plan which provides medical, prescription drug, dental and life benefits, to eliminate benefits provided by the plan for certain participants under a collective bargaining agreement. As a result of the plan amendment, certain SUPERVALU Retiree Benefit Plan obligations were re-measured using a discount rate of 4.25 percent and the MP-2015 mortality improvement scale. This re-measurement resulted in a $28 reduction of postretirement benefit obligations within Pension and other postretirement benefit obligations with a corresponding decrease to Accumulated other comprehensive loss. 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 2016 2015 2016 2015 Changes in Benefit Obligation Benefit obligation at beginning of year $ 2,849 $ 2,726 $ 82 $ 81 Plan amendment — — (21 ) (5 ) Service cost — — — 1 Interest cost 106 121 3 4 Actuarial (gain) loss (175 ) 371 (6 ) 5 Settlements paid (1 ) (272 ) — — Benefits paid (115 ) (97 ) (4 ) (4 ) Benefit obligation at end of year 2,664 2,849 54 82 Changes in Plan Assets Fair value of plan assets at beginning of year 2,317 2,261 4 — Actual return on plan assets (109 ) 260 — — Employer contributions 27 165 15 4 Plan participants’ contributions — — 2 3 Settlements paid (1 ) (272 ) — — Benefits paid (115 ) (97 ) (6 ) (7 ) Other — — — 4 Fair value of plan assets at end of year 2,119 2,317 15 4 Unfunded status at end of year $ (545 ) $ (532 ) $ (39 ) $ (78 ) 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 2016 2015 2016 2015 Accrued vacation, compensation and benefits $ (2 ) $ (2 ) $ (4 ) $ (6 ) Pension and other postretirement benefit obligations (543 ) (530 ) (35 ) (72 ) Total $ (545 ) $ (532 ) $ (39 ) $ (78 ) 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 2016 2015 2016 2015 Prior service benefit $ — $ — $ 50 $ 45 Net actuarial loss (693 ) (696 ) (17 ) (28 ) Total recognized in Accumulated other comprehensive loss $ (693 ) $ (696 ) $ 33 $ 17 Total recognized in Accumulated other comprehensive loss, net of tax $ (438 ) $ (432 ) $ 20 $ 9 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 consist of the following: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 Net Periodic Benefit Cost (Income) Service cost $ — $ — $ — $ — $ 1 $ 2 Interest cost 106 121 121 3 4 4 Expected return on plan assets (142 ) (149 ) (141 ) — — — Amortization of prior service benefit — — — (15 ) (16 ) (13 ) Amortization of net actuarial loss 79 68 101 3 3 5 Settlement — 64 — — — — Net periodic benefit cost (income) 43 104 81 (9 ) (8 ) (2 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Prior service benefit — — — (21 ) (5 ) (11 ) Amortization of prior service benefit — — — 15 16 12 Net actuarial loss (gain) 76 195 (259 ) (7 ) 6 (16 ) Amortization of net actuarial loss (79 ) (66 ) (101 ) (3 ) (3 ) (5 ) Total expense (benefit) recognized in Other comprehensive income (loss) (3 ) 129 (360 ) (16 ) 14 (20 ) Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive income (loss) $ 40 $ 233 $ (279 ) $ (25 ) $ 6 $ (22 ) 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 2017 is $45 . 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 2017 is $13 . Assumptions Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of the following: 2016 2015 2014 Benefit obligation assumptions: Discount rate 4.16 – 3.95% 3.80 % 4.65 % Rate of compensation increase — % — % — % Net periodic benefit cost assumptions: (1) Discount rate 3.80 % 4.65 – 4.10% 4.25 % Rate of compensation increase — % — % 2.00 % Expected return on plan assets (2) 6.50 % 7.00 – 6.50% 7.00 % (1) For fiscal 2016 and prior, net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year. (2) Expected 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 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. Effective for fiscal 2017, the Company adopted an alternative approach for determining the interest and service cost components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans, the "full yield curve" approach. Under this method, the discount rate assumption used in the interest and service cost components of net periodic benefit cost was built through applying the specific spot rates along the yield curve used in the determination of the benefit obligation described above, to the relevant projected future cash flows of the Company's pension and other postretirement benefit plans. Prior to fiscal 2017, including for the current fiscal 2016 year being reported, the interest and service cost components of pension expense were estimated using a single weighted-average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. The Company adopted the alternative approach to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest and service costs. This change does not affect the measurement of total benefit obligation. The Company has concluded that the application of the full yield curve approach is a change in estimate and, accordingly, will recognize the effect prospectively beginning in fiscal 2017. The impact of the change in estimate is an anticipated reduction of the interest and service cost components within net periodic benefit cost in fiscal 2017 by approximately $22 for the defined benefit pension plans and less than $1 for postretirement benefit plans compared to the prior year approach. During fiscal 2016, the Retirement Plans Experience Committee of the Society of Actuaries ("RPEC") issued an update to Mortality Improvement Scale MP-2014, which was released in October 2014, named MP-2015. This updated scale was created using two additional years of historical data and the same RPEC 2014 model that was used to produce MP-2014. The Company used MP-2015 to calculate its fiscal 2016 projected benefit obligation. 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 . 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 7.00 percent as of February 27, 2016 . 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 7.80 percent as of February 27, 2016 . 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 2016 ; a 100 basis point decrease in the trend rate would decrease the Company’s accumulated postretirement benefit obligation as of the end of fiscal 2016 by approximately $3 ; and a 100 basis point increase would increase the Company’s accumulated postretirement benefit obligation by approximately $3 . 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 2016 2015 Domestic equity 22.2 % 22.4 % 24.8 % International equity 11.1 % 11.1 % 11.3 % Private equity 6.6 % 6.6 % 6.2 % Fixed income 47.5 % 47.3 % 48.1 % Real estate 12.6 % 12.6 % 9.6 % Total 100.0 % 100.0 % 100.0 % 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 securities, 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 27, 2016 , by asset category, consisted of the following: Level 1 Level 2 Level 3 Total Common stock $ 432 $ — $ — $ 432 Common collective trusts—fixed income — 554 — 554 Common collective trusts—equity — 212 — 212 Government securities 49 114 — 163 Mutual funds 56 179 — 235 Corporate bonds — 201 — 201 Real estate partnerships — — 164 164 Private equity — — 141 141 Mortgage-backed securities — 14 — 14 Other — 3 — 3 Total plan assets at fair value $ 537 $ 1,277 $ 305 $ 2,119 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 following is a summary of changes in the fair value of Level 3 investments for 2016 and 2015 : Real Estate Partnerships Private Equity 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 Purchases 7 25 Sales (18 ) (18 ) Unrealized gains 9 (10 ) Realized gains and losses 4 — Ending balance, February 27, 2016 $ 164 $ 141 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's required pension contributions to the SUPERVALU Retirement Plan decreased significantly in fiscal 2016 compared to fiscal 2015 and the Company expects that to continue for the next several years. The Company expects to contribute approximately $30 to $35 to its defined benefit pension plans and postretirement benefit plans in fiscal 2017 . The Company funds its defined benefit pension plans based on 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, and additional contributions made at the Company's discretion. 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 Pension Benefit Guarantee Corporation (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 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 2017 $ 154 $ 4 2018 135 4 2019 140 4 2020 148 4 2021 158 4 Years 2022-2026 843 20 Defined Contribution Plans The Company sponsors 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 $8 , $16 and $11 for fiscal 2016 , 2015 and 2014 , 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. There were no discretionary matches made in fiscal 2016. Since June 2014, plan investment options do not 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 2016 2015 Accrued vacation, compensation and benefits $ 5 $ 8 Other long-term liabilities 8 10 Total $ 13 $ 18 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 $43 , $39 and $39 to these plans for fiscal years 2016 , 2015 and 2014 , 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 2016 and 2015 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 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 2016 , 2015 and 2014 . At the date the financial statements were issued, Forms 5500 were generally not available for the plan years ending in 2015 . The following table contains information about the Company’s multiemployer plans: EIN—Pension Plan Number Plan Month/Day End Date Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions Surcharges Imposed (1) Amortization Provisions Pension Fund 2016 2015 2016 2015 2014 Minneapolis Food Distributing Industry Pension Plan 416047047-001 12/31 Green Green Implemented $ 10 $ 10 $ 9 No Yes Central States, Southeast and Southwest Areas Pension Fund 366044243-001 12/31 Red Red Implemented 8 8 8 No No Minneapolis Retail Meat Cutters and Food Handlers Pension Fund 410905139-001 2/28 Green Yellow Implemented 9 7 8 No No UFCW Unions and Participating Employers Pension Fund 526117495-002 12/31 Red Red Implemented 5 4 4 Yes No Western Conference of Teamsters Pension Plan 916145047-001 12/31 Green Green No 4 4 3 No No UFCW Union Local 655 Food Employers Joint Pension Plan 436058365-001 12/31 Green Green No 2 2 2 No No UFCW Unions and Employers Pension Plan 396069053-001 10/31 Red Red Implemented 2 1 2 Yes No All Other Multiemployer Pension Plans (2) 3 3 3 Total $ 43 $ 39 $ 39 (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 11 plans, none of which is 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 2015 Minneapolis Food Distributing Industry Pension Plan 6/1/2015 – 5/31/2018 1 5/31/2018 100.0 % Yes Central States, Southeast and Southwest Areas Pension Fund 6/1/2011 – 8/31/2017 10 6/14/2017 27.5 % No Minneapolis Retail Meat Cutters and Food Handlers Pension Fund 3/6/2016 – 3/4/2018 1 3/4/2018 100.0 % Yes UFCW Unions and Participating Employers Pension Plan 7/13/2014 – 7/8/2017 2 7/8/2017 68.0 % Yes Western Conference of Teamsters Pension Plan 6/15/2011 – 7/15/2017 8 7/15/2017 44.8 % No UFCW Union Local 655 Food Employers Joint Pension Plan 5/13/2013 – 5/8/2016 1 5/8/2016 100.0 % Yes UFCW Unions and Employers Pension Plan 4/6/2014 – 4/2/2016 2 4/2/2016 76.5 % 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 $95 , $89 and $87 for fiscal 2016 , 2015 and 2014 , 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 admin istrative expenses could increase in the future. Collective Bargaining Agreements As of February 27, 2016 , the Company had approximately 38,000 employees. Approximately 16,000 employees are covered by 55 collective bargaining agreements. During fiscal 2016 , nine collective bargaining agreements covering approximately 1,600 employees were renegotiated and three collective bargaining agreements covering approximately 110 employees expired without their terms being renegotiated. Also, four collective bargaining agreements covering approximately 700 employees expired prior to fiscal 2016 without their terms being renegotiated. Negotiations are expected to continue with the bargaining units representing the employees subject to those agreements. During fiscal 2017 , 24 collective bargaining agreements covering approximately 8,400 employees are scheduled to expire. |
NET EARNINGS (LOSS) PER SHARE
NET EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Feb. 27, 2016 | |
Earnings Per Share [Abstract] | |
NET EARNINGS (LOSS) PER SHARE | NOTE 12—NET EARNINGS PER SHARE The following table reflects the calculation of basic and diluted net earnings per share: 2016 2015 2014 Net earnings from continuing operations $ 178 $ 127 $ 13 Less net earnings attributable to noncontrolling interests (8 ) (7 ) (7 ) Net earnings from continuing operations attributable to SUPERVALU INC. 170 120 6 Income from discontinued operations, net of tax 8 72 176 Net earnings attributable to SUPERVALU INC. $ 178 $ 192 $ 182 Weighted average number of shares outstanding—basic 263 260 255 Dilutive impact of stock-based awards 5 4 3 Weighted average number of shares outstanding—diluted 268 264 258 Basic net earnings per share attributable to SUPERVALU INC.: Continuing operations $ 0.64 $ 0.46 $ 0.02 Discontinued operations $ 0.03 $ 0.28 $ 0.69 Basic net earnings per share $ 0.68 $ 0.74 $ 0.71 Diluted net earnings per share attributable to SUPERVALU INC.: Continuing operations $ 0.63 $ 0.45 $ 0.02 Discontinued operations $ 0.03 $ 0.27 $ 0.68 Diluted net earnings per share $ 0.66 $ 0.73 $ 0.70 Stock-based awards of 10 , 10 and 18 that were outstanding during fiscal 2016 , 2015 and 2014 , respectively, were excluded from the calculation of Net earnings from continuing operations per share—diluted, Net earnings from discontinued operations per share—diluted and Net earnings 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. 27, 2016 | |
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, and interest rate swaps designated as hedges, net of tax. Changes in Accumulated other comprehensive loss by component are as follows: Benefit Plans Interest Rate Swap Total February 23, 2013 accumulated other comprehensive loss $ (612 ) $ — $ (612 ) Other comprehensive income before reclassifications 202 — 202 Amortization of amounts included in net periodic benefit cost (1) 55 — 55 Net Other comprehensive income 257 — 257 Divestiture of NAI pension plan 48 — 48 February 22, 2014 accumulated other comprehensive loss (307 ) — (307 ) Other comprehensive loss before reclassifications (188 ) — (188 ) Pension settlement charge (2) 39 — 39 Amortization of amounts included in net periodic benefit cost (1) 33 — 33 Net Other comprehensive loss (116 ) — (116 ) February 28, 2015 accumulated other comprehensive loss (423 ) — (423 ) Other comprehensive loss before reclassifications (37 ) (4 ) (41 ) Amortization of amounts included in net periodic benefit cost (1) 42 — 42 Net Other comprehensive income (loss) 5 (4 ) 1 February 27, 2016 accumulated other comprehensive loss $ (418 ) $ (4 ) $ (422 ) (1) Amortization of amounts included in net periodic benefit cost includes amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 11—Benefit Plans . (2) Refer to Note 11—Benefit Plans for additional information on the Company's fiscal 2015 pension settlement charge. 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: 2016 2015 2014 Affected Line Item on Consolidated Statements of Operations Pension and postretirement benefit plan obligations: Amortization of amounts included in net periodic benefit expense (1) $ 59 $ 43 $ 82 Selling and administrative expenses Amortization of amounts included in net periodic benefit expense (1) 8 11 11 Cost of sales Pension settlement charge — 64 — Selling and administrative expenses Total reclassifications 67 118 93 Income tax benefit (25 ) (46 ) (38 ) Income tax provision Total reclassifications, net of tax $ 42 $ 72 $ 55 (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 . No amounts were reclassified out of Accumulated other comprehensive loss related to the interest rate swap designated as a cash flow hedge. As of February 27, 2016, the Company expects to reclassify $3 out of Accumulated other comprehensive loss into Interest expense, net during the following twelve month period. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | 12 Months Ended |
Feb. 27, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | Potential Separation of Save-A-Lot Business On July 28, 2015, the Company announced that it is exploring a separation of its Save-A-Lot segment, and that as part of that process it had begun preparations to allow for a possible spin-off of Save-A-Lot into a stand-alone, publicly traded company. On January 7, 2016, Save-A-Lot, Inc. filed a Form 10 with the Securities and Exchange Commission (the “SEC”) as part of the potential separation from the Company. No specific timetable for a separation has been set and there can be no assurance that a separation will be completed or that any other change in the Company’s overall structure or business model will occur. Guarantees and Contingent Liabilities The Company has outstanding guarantees related to certain leases, fixture financing loans and other debt obligations of various retailers as of February 27, 2016 . 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 14 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 27, 2016 , the maximum amount of undiscounted payments the Company would be required to make in the event of default of all guarantees was $67 and represented $43 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 27, 2016 , using actuarial estimates as of December 31, 2015, the total undiscounted amount of all such guarantees was estimated at $167 ( $150 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. Agreements with AB Acquisition LLC and Affiliates In connection with the sale of NAI on March 21, 2013, the Company entered into various agreements with AB Acquisition LLC and its affiliates related to on-going operations, including a Transition Services Agreement with each of NAI and Albertson’s LLC (collectively, 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 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 has exercised its first extension option, subject to such termination rights. On April 16, 2015, the Company entered into a letter agreement pursuant to which the Company is providing 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 is entitled to 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 two to three more years. On May 28, 2015, the Company entered into a letter agreement with NAI and Albertson's LLC pursuant to which the Company received certain additional rights and benefits, and the Company and NAI and Albertson's LLC (and certain of their affiliates, including Safeway, with respect to provisions of the letter agreement applicable to them) agreed to resolve several issues. Among other matters resolved, NAI, Albertson's LLC and AB Acquisition agreed to no longer challenge, and waive all rights relating to, the Company's filing with the IRS in fiscal 2015 for a change in accounting method for NAI and its subsidiaries pursuant to the tangible property repair regulations. In consideration for the granting of the additional rights and benefits to the Company and the resolution of the various matters under the letter agreement, the Company paid $35 to AB Acquisition, the parent entity of NAI and Albertson's LLC. Haggen The Co mpany entered into a transition services agreement with Haggen in December 2014 (the “Haggen TSA”) to provide certain services to 164 stores owned and being acquired by Haggen in five states. The Company also entered into a supply agreement with Haggen to supply goods and products to Haggen stores in Washington and Oregon. On September 8, 2015, Haggen filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Through the bankruptcy process, Haggen has now closed, sold or agreed to sell all 164 stores. The Company estimates that a complete transition and wind down of the Haggen TSA and supply agreement will occur in the second quarter of fiscal 2017. The Company has filed for approximately $2 of administrative 503(b)(9) priority claims and for approximately $8 of other claims with the bankruptcy court. The Company could be exposed to claims from third parties from which the Company sourced products, services, licenses and similar benefits on behalf of Haggen. The Company has reserved for probable losses related to a portion of these claims and receivables. It is reasonably possible that the Company could experience losses in excess of the amount of such reserves; however, at this time the Company cannot reasonably estimate a range of such excess losses because of the factual and legal issues related to whether the Company would have liability for any such third-party claims, if such third-party claims were asserted against the Company. Information Technology Intrusions Computer Network Intrusions - In fiscal 2015, the Company announced it had experienced two 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. 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 new or different 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 and, although the Company’s network has previously been found to be compliant with applicable data security standards, 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. In addition, one payment card brand has placed us in a "probationary status" for a period of two years following our re-validation as PCI-DSS compliant, during which time our failure to comply with the probationary requirements set forth by the payment card brand could result in the imposition of further conditions, including but not limited to disqualification from the payment system. The Company does not anticipate material costs to comply with the probationary requirements and is continuing to engage with the payment card brand about the nature of any final probationary requirements. On October 23, 2015, the Company received a letter from a multistate group of Attorneys General seeking information regarding the intrusions. The Company is cooperating with the request. To date, no claims have been asserted against the Company related to this inquiry. If any claims are asserted, the Company expects to dispute those claims. As discussed in more detail below in this Note 14 under Legal Proceedings , four class action complaints related to the intrusions have been filed against the Company and consolidated into one action and are currently pending. As indicated in this 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 and Expenses - The Company had $50 of cyber threat insurance above a per incident deductible of $1 at the time of the intrusions, 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. The Company now maintains $90 of cyber threat insurance above a per incident deductible of approximately $3 , in each case subject to certain sublimits. In fiscal 2016, the Company recorded $2 of intrusion related costs, and received and anticipated insurance proceeds of $2 . These amounts were recorded within Selling and administrative expenses in the Consolidated Statements 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. 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 27, 2016 , the Company had approximately $291 of non-cancelable future purchase obligations. 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, the likelihood 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 is remote. 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 were consolidated and are proceeding in the United States District Court in 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. On February 12, 2013, the 8th Circuit reversed the District Court decision requiring plaintiffs with arbitration agreements to arbitrate and remanded 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 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, and on June 8, 2015, the United States Supreme Court denied the Petition. On June 19, 2015, the District Court Magistrate Judge entered an order that decided a number of matters including granting plaintiffs' request to seek class certification for certain Midwest Distribution Centers and denying plaintiffs' request to add an additional New England plaintiff and denying plaintiffs' request to seek class certification for a group of New England retailers. On August 20, 2015, the District Court affirmed the Magistrate Judge's order. In September 2015, the plaintiffs appealed to the 8th Circuit the denial of the request to add an additional New England plaintiff and to seek class certification for a group of New England retailers. On March 1, 2016, the plaintiffs filed a class certification motion seeking to certify five District Court classes of retailers in the Midwest. The Company's response to the motion to certify is due May 6, 2016. 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"). The cases were centralized in the Federal District Court for the District of Minnesota under the caption In Re: Supervalu Inc. Customer Data Security Breach Litigation . On June 26, 2015, the plaintiffs filed a Consolidated Class Action Complaint. The Company filed a Motion to Dismiss the Consolidated Class Action Complaint and the hearing took place on November 3, 2015. On January 7, 2016, the District Court granted the Motion to Dismiss and dismissed the case without prejudice, holding that the plaintiffs did not have standing to sue as they had not met their burden of showing any compensable damages. On February 4, 2016, the plaintiffs filed a motion to vacate the District Court's dismissal of the complaint or in the alternative to conduct discovery and file an amended complaint, and the Company filed its response in opposition on March 4, 2016. On April 20, 2016, the District Court denied plaintiffs’ motion to vacate the District Court’s dismissal or in the alternative to amend the complaint. On June 30, 2015, the Company received a letter from the Office for Civil Rights of the U.S. Department of Health and Human Services (“OCR”) seeking documents and information regarding the Company’s HIPAA breach notification and reporting from 2009 to the present. The letter indicates that the OCR Midwest Region is doing a compliance review of the Company’s alleged failure to report small breaches of protected health information related to its pharmacy operations (e.g., any incident involving less than 500 individuals). On September 4, 2015, the Company submitted its response to OCR’s letter. While the Company does not believe that a loss is probable by reason of the compliance review, the Company believes that a loss is reasonably possible; however, at this time the Company cannot reasonably estimate a range of possible losses because the OCR's review is at the very early stages and the Company does not know if OCR will find a violation(s) and, if so, what violation(s) and whether OCR will proceed with corrective action, issuance of penalties or monetary settlement. The potential penalties related to the issues being investigated are up to $50 thousand per violation (which can be counted per day) with a $1.5 per calendar year maximum for multiple violations of a single provision (with the potential for finding violations of multiple provisions each with a separate $1.5 per calendar year maximum); however, as noted above, any actual penalties will be determined only after consideration by OCR of various factors, including the nature of any violation, remedial actions taken by the Company and other factors determined relevant by OCR. 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, Criminal Intrusion and OCR matters discussed above, the Company believes the chance of a material loss is remote. It is possible, although management believes that the likelihood 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. 27, 2016 | |
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: Wholesale, Save-A-Lot and Retail. 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 Wholesale reportable segment derives revenues from wholesale distribution and services 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 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 Wholesale segment to independent retail customers. The following table provides additional detail on the amounts and percentages of Net sales for each group of similar products sold in the Wholesale, Save-A-Lot and Retail segments, and service agreement revenue in Corporate: 2016 2015 2014 Wholesale: Nonperishable grocery products (1) $ 5,753 33 % $ 5,939 33 % $ 6,000 35 % Perishable grocery products (2) 2,025 12 2,099 12 1,951 11 Services to independent retail customers and other 157 1 160 1 151 1 7,935 45 % 8,198 46 % 8,102 47 % Save-A-Lot: Nonperishable grocery products (1) $ 2,956 17 % $ 2,989 17 % $ 2,823 17 % Perishable grocery products (2) 1,597 9 1,587 9 1,373 8 Services to licensees and other 70 — 65 — 59 — 4,623 26 % 4,641 26 % 4,255 25 % Retail: Nonperishable grocery products (1) $ 2,607 15 % $ 2,677 15 % $ 2,600 15 % Perishable grocery products (2) 1,549 9 1,574 9 1,463 9 Pharmacy products 511 3 510 3 491 3 Fuel 67 — 83 — 67 — Other 35 — 40 — 34 — 4,769 27 % 4,884 27 % 4,655 27 % Corporate: Transition services revenue $ 202 1 % $ 194 1 % $ 240 1 % Net sales $ 17,529 100 % $ 17,917 100 % $ 17,252 100 % (1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, home, health and beauty care and candy (2) Includes such items as meat, produce, deli and bakery Segment operating earnings include revenues and costs attributable to each of the respective business segments and allocated corporate overhead, based on the segment's estimated consumption of corporately managed resources. Variances to planned corporate overhead allocated to business segments remain in Corporate because allocated corporate overhead affecting segment operating profit is centrally managed. Reported segment information is presented on the same basis as it is reviewed by executive management. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Feb. 27, 2016 | |
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. In connection with the sale of NAI, the Company entered into various agreements with AB Acquisition 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. 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. For additional discussion of the TSA and this letter agreement, see “Risk Factors — The Company’s relationships with NAI, Albertson’s LLC and Haggen are winding down, which could adversely impact the Company’s results of operations"” in Part I, Item 1A of this Annual Report on Form 10-K and Note 14—Commitments, Contingencies and Off-Balance Sheet Arrangements . 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 has exercised its first extension option, subject to such termination rights. 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 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: 2016 2015 2014 Net sales $ — $ — $ 1,235 (Loss) income before income taxes from discontinued operations (1 ) 6 121 Income tax benefit (9 ) (66 ) (55 ) Income from discontinued operations, net of tax $ 8 $ 72 $ 176 Income from discontinued operations, net of tax for fiscal 2016 primarily reflects tax settlement matters, including discrete tax benefits and expenses, and pre-tax resolution matters. 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 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. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 27, 2016 | |
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: 2016 $ 18 6 (11 ) $ 13 2015 19 6 (7 ) 18 2014 16 16 (13 ) 19 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 27, 2016 | |
Accounting Policies [Abstract] | |
Reclassifications [Text Block] | Reclassifications In fiscal 2016, losses on the early termination of debt are included in the Consolidated Statements of Cash Flows as a separate line item entitled Loss on debt extinguishment. In prior years, losses on the early termination of debt were classified as Asset impairment and other charges. Prior year amounts have been reclassified to conform to current year presentation. These reclassifications did not impact net cash provided by operating activities or net cash from investing activities or financing activities for any period presented. |
Reclassification, Policy [Policy Text Block] | Revisions In the first quarter of fiscal 2016, the Company completed an assessment of its revenue and expense presentation primarily related to professional services and certain other transactions. Expenses related to transactions in which the Company determined it was the principal were previously presented net of related revenues within Net sales in the Consolidated Statements of Operations. The presentation of these expenses has been revised to include them within Cost of sales and Selling and administrative expenses. These revisions had the effect of increasing Net sales with a corresponding increase to Cost of sales and Selling and administrative expenses. These revisions did not impact Operating earnings, Earnings from continuing operations before income taxes, Net earnings attributable to SUPERVALU INC., cash flows, or financial position for any period reported. These revisions have similarly impacted the Company's Consolidated Financial Statements across fiscal periods. Management determined that these revisions are not material to any period reported. Prior period amounts have been revised to conform to the current period presentation as shown below. |
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. 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 | Fiscal Year Supervalu operates on a 52/53 week fiscal year basis, with its fiscal year ending on the last Saturday in February. References to fiscal 2016 and 2014 relate to Supervalu's fiscal years ended February 27, 2016 and February 22, 2014, respectively, each consisting of 52 weeks. References to fiscal 2015 relate to Supervalu's fiscal year ended February 28, 2015 consisting of 53 weeks. |
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 Wholesale segment, at the point of sale for the Retail Segment and Save-A-Lot’s corporate retail operations, and upon delivery for Save-A-Lot’s licensee distribution operations. Typically, invoicing, shipping, delivery and customer receipt of Wholesale 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 professional services and third-party logistics operations 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. Incentives in the form of upfront cash payments to Save-A-Lot licensees are provided by the Company to help offset independent operator costs associated with opening and initially operating a store. Licensee incentives are recognized as a reduction of Net sales over the term of the incentive agreements, which coincides with the term of the license and supply agreements. Licensee incentive assets are included in Other current assets and Other long-term assets in the Consolidated Balance Sheets. |
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 store advertising expenses are a component of Cost of sales and are expensed as incurred. Save-A-Lot and Retail advertising expenses, net of cooperative advertising reimbursements, were $64 , $62 and $77 for fiscal 2016 , 2015 and 2014 , respectively. Costs related to Wholesale and Save-A-Lot advertising services provided to independent retail customers and licensees, respectively, are included within cost of sales. 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 include 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 27, 2016 and February 28, 2015 , approximately 57 percent and 55 percent , respectively, of the Company’s inventories were valued under the LIFO method. As of February 27, 2016 and February 28, 2015 , 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 52 percent and 50 percent of inventory as of February 27, 2016 and February 28, 2015 , 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 27, 2016 and February 28, 2015 , approximately 26 percent and 26 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 17 percent and 19 percent of the Company’s inventories as of February 27, 2016 and February 28, 2015 , 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 2016 and 2014 , 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 2016 and 2014 purchases. As a result, Cost of sales decreased by $1 and $14 in fiscal 2016 and 2014 , 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 $215 and $211 as of February 27, 2016 and February 28, 2015 , respectively. The Company evaluates inventory shortages throughout each fiscal year based on actual physical counts in its stores and distribution 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 disposition represents a strategic transaction that has a major effect on operations and financial results. In addition, the Company evaluates whether the business has met the criteria 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 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 value. The reviews consist of comparing estimated fair value to the carrying value at the reporting unit level. For Wholesale and Retail, the Company’s reporting units are the operating segments of the business, which consist of Wholesale and Retail. Goodwill was assigned to these reporting units as of the acquisition date, with no amounts being allocated between reporting units. For Save-A-Lot, the reporting units are the components of the business: Licensee Distribution and Corporate Stores. Goodwill has been allocated between the Save-A-Lot reporting units on a relative fair value basis. 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. During the fiscal 2016 review, the Company separated the Save-A-Lot reporting unit into the Licensee Distribution and Corporate Stores reporting units. There were no changes in the Company’s reporting units as a result of the fiscal 2015 review. |
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 impairment review calculation contains significant judgments and estimates, including the weighted average cost of capital, any specified risk profile of the tradename, and future revenue and profitability. See Note 3—Goodwill and Intangible Assets for additional information. |
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 value 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. Wholesale’s long-lived assets are reviewed for impa irment 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’s long-lived assets are reviewed for impairment at the geographic market group level for six geographic marke t groupings of individual retail stores. 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 | 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. 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. |
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 Accumulated other comprehensive income (loss), net of tax, in the Consolidated Balance Sheets. 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 healthcare and compensation 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. Effective for fiscal 2017, the Company adopted an alternative approach for determining the interest and service cost components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. The Company has elected to use the full yield curve approach in the estimation of these components of net periodic benefit cost effective in fiscal 2017 by applying the specific spot rates along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The change does not affect the measurement of the total benefit obligation. See Note 11—Benefit Plans for additional information on the impact of the change in estimate. 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 an employee 401(k) retirement savings plan. |
Fair Value Measurement, Policy [Policy Text Block] | 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. The Company utilized fair value measurements in reporting results of operation and financial position within its Consolidated Financial Statements for the following: • Acquired assets and liabilities discussed in Note 2—Business Acquisitions were measured at fair value using Level 3 inputs. • Acquired intangible assets and intangible asset impairment charges discussed in Note 3—Goodwill and Intangible Assets were measured at fair value using Level 3 inputs. • Impairment charges 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. • Assets and liabilities measured at fair value on a recurring basis using Level 1 and Level 2 inputs as discussed in Note 6—Fair Value Measurements . • Stock-based compensation awards were measured at their grant date fair value upon issuance using Level 3 inputs as discussed in Note 10—Stock-based Awards . • Discontinued operations property, plant and equipment impairment charges and finalization adjustments related to the sale of NAI were recorded in Income from discontinued operations, net of tax, as discussed in Note 16—Discontinued Operations , and were measured at fair value using Level 3 inputs. |
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 Accumulated other comprehensive loss in the Consolidated Balance Sheets reclassified into earnings in the period in which the hedged transaction affects earnings. 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, the Company enters into energy commitments for certain amounts of electricity and natural gas purchases that it expects to utilize in the normal course of business. Changes in the fair value of 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 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 Company uses the straight-line method to recognize stock-based compensation expense over the requisite service period related to each award. 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 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 in fiscal 2013, the Company entered into a Tender Offer Agreement (the “Tender Offer Agreement”) with Symphony Investors LLC, which was 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. On April 28, 2015, Symphony Investors distributed its shares of Supervalu common stock to its members on a pro rata basis. As a result, Cerberus Iceberg LLC received 21 shares, which were beneficially owned by Mr. Stephen Feinberg, which subsequently sold all or a portion of these shares. No other member of Symphony Investors received more than five percent of the Company’s issued and outstanding common stock. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under accounting standard update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . ASU 2015-17 requires all deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet. The Company adopted ASU 2015-17 in fiscal 2016 on a retrospective basis resulting in a $15 reduction of Deferred tax assets and Other current liabilities within the Company's Consolidated Balance Sheets as of February 28, 2015. In April 2015, the FASB issued authoritative guidance under ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt obligation. The Company adopted ASU 2015-03 in fiscal 2016 on a retrospective basis resulting in a $35 reduction of Other assets and Long-term debt within the Company's Consolidated Balance Sheets as of February 28, 2015. Debt financing costs for the Company's revolving credit facility are presented as a reduction of the related borrowings when a balance is drawn on the facility and as an asset within Other assets when no balance is drawn on the facility. Recently Issued Accounting Standards In March 2016, the FASB issued authoritative guidance under ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 provides for simplification of several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The Company is required to adopt this new authoritative guidance in the first quarter of fiscal 2018. The Company is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance under ASU 2016-02, Leases (Topic 842) . ASU 2016-02 provides new comprehensive lease accounting guidance that supersedes existing lease guidance. Upon adoption of ASU 2016-02, the Company will be required to recognize most leases on its balance sheet at the beginning of the earliest comparative period presented with a corresponding adjustment to stockholders' equity. ASU 2016-02 requires the Company to capitalize most current operating lease obligations as right-of-use assets based on the present value of future operating lease payments and to recognize a corresponding liability. Criteria for distinguishing leases between finance and operating are substantially similar to criteria for distinguishing between capital leases and operating leases in existing lease guidance. The Company is required to adopt this new authoritative guidance in the first quarter of fiscal 2020. The Company is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. In January 2016, the FASB issued authoritative guidance under ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 revises the classification, measurement and disclosure of investments in equity securities. The Company is required to adopt this new authoritative guidance in the first quarter of fiscal 2019. Due to the Company's current limited involvement in investments in equity securities, the Company does not expect that this standard will have a material impact on its consolidated financial statements. In May 2014, the FASB issued authoritative guidance under ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model that 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. The new authoritative guidance will likely be adopted by the Company during the first quarter of fiscal 2019, as permitted by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . The adoption will include updates as provided under ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . Adoption is allowed by either the full retrospective or modified retrospective approach. The Company is currently evaluating which approach it will apply and the potential impact of the adoption on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following tables present the impact of these revisions on the Company's previously reported results, and the revised amounts as reported in this Annual Report on Form 10-K: February 28, 2015 February 22, 2014 As Originally Reported Revision As Revised As Originally Reported Revision As Revised Net sales $ 17,820 $ 97 $ 17,917 $ 17,153 $ 99 $ 17,252 Cost of sales 15,242 87 15,329 14,623 89 14,712 Gross profit 2,578 10 2,588 2,530 10 2,540 Selling and administrative expenses 2,154 10 2,164 2,107 10 2,117 Operating earnings $ 424 $ — $ 424 $ 423 $ — $ 423 February 28, 2015 February 22, 2014 As Originally Reported Revision As Revised As Originally Reported Revision As Revised Net sales Wholesale $ 8,134 $ 64 $ 8,198 $ 8,036 $ 66 $ 8,102 % of total 45.6 % 0.2 % 45.8 % 46.9 % 0.1 % 47.0 % Save-A-Lot 4,613 28 4,641 4,228 27 4,255 % of total 25.9 % (0.1 )% 25.8 % 24.6 % — % 24.6 % Retail 4,879 5 4,884 4,649 6 4,655 % of total 27.4 % (0.1 )% 27.3 % 27.1 % (0.1 )% 27.0 % Corporate 194 — 194 240 — 240 % of total 1.1 % — % 1.1 % 1.4 % — % 1.4 % Total net sales $ 17,820 $ 97 $ 17,917 $ 17,153 $ 99 $ 17,252 100.0 % — % 100.0 % 100.0 % — % 100.0 % |
Changes in the Company's Self-Insurance Liabilities | Changes in the Company’s insurance liabilities consisted of the following: 2016 2015 2014 Beginning balance $ 93 $ 103 $ 97 Expense 29 31 34 Claim payments (28 ) (32 ) (33 ) Reclassification of insurance recoveries to receivables 1 (9 ) 5 Ending balance 95 93 103 Less current portion (31 ) (30 ) (33 ) Long-term portion $ 64 $ 63 $ 70 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
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 22, Additions Impairments Other net adjustments February 28, Additions Impairments Other net adjustments February 27, Goodwill: Wholesale $ 710 $ — $ — $ — $ 710 $ — $ — $ — $ 710 Save-A-Lot 137 4 — — 141 1 — — 142 Retail — 14 — — 14 1 — — 15 Total goodwill $ 847 $ 18 $ — $ — $ 865 $ 2 $ — $ — $ 867 Intangible assets: Favorable operating leases, prescription files, customer lists and other (accumulated amortization of $97 and $86 as of February 27, 2016 and February 28, 2015, respectively) $ 111 $ 13 $ — $ — $ 124 $ 25 $ (6 ) $ (1 ) $ 142 Tradenames and trademarks—indefinite useful lives 9 — — — 9 — — — 9 Non-compete agreements (accumulated amortization of $2 and $2 as of February 27, 2016 and February 28, 2015, respectively) 3 — — — 3 — — — 3 Total intangible assets 123 13 — — 136 25 (6 ) (1 ) 154 Accumulated amortization (80 ) (8 ) — — (88 ) (11 ) — — (99 ) Total intangible assets, net $ 43 $ 48 $ 55 |
RESERVES FOR CLOSED PROPERTIE31
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Restructuring and Related Activities [Abstract] | |
Changes in Company's Reserves | Changes in the Company’s reserves for closed properties consisted of the following: 2016 2015 2014 Beginning balance $ 34 $ 47 $ 61 Additions 8 4 4 Payments (12 ) (12 ) (16 ) Adjustments (1 ) (5 ) (2 ) Ending balance $ 29 $ 34 $ 47 |
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: 2016 2015 2014 Property, plant and equipment: Carrying value $ 11 $ 4 $ 45 Fair value measured using Level 3 inputs 3 1 21 Impairment charge $ 8 $ 3 $ 24 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment, net, consisted of the following: 2016 2015 Land $ 104 $ 104 Buildings 1,295 1,252 Property under construction 79 71 Leasehold improvements 722 709 Equipment 2,082 2,021 Capitalized lease assets 294 314 Total property, plant and equipment 4,576 4,471 Accumulated depreciation (2,897 ) (2,779 ) Accumulated amortization on capitalized lease assets (198 ) (222 ) Total property, plant and equipment, net $ 1,481 $ 1,470 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | Recurring fair value measurements were as follows: February 27, 2016 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 6 $ — $ — $ 6 Total $ 6 $ — $ — $ 6 Liabilities: Deferred compensation Other current liabilities $ — $ 7 $ — $ 7 Deferred compensation Other long-term liabilities — 35 — 35 Diesel fuel derivatives Other current liabilities — 2 — 2 Interest rate swap derivative Other current liabilities — 3 — 3 Interest rate swap derivative Other long-term liabilities — 3 — 3 Total $ — $ 50 $ — $ 50 February 28, 2015 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 7 $ — $ — $ 7 Total $ 7 $ — $ — $ 7 Liabilities: Deferred compensation Other current liabilities $ — $ 13 $ — $ 13 Deferred compensation Other long-term liabilities — 33 — 33 Diesel fuel derivatives Other current liabilities — 1 — 1 Total $ — $ 47 $ — $ 47 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Lease Obligations | The Company’s long-term debt consisted of the following: February 27, February 28, 4.50% Secured Term Loan Facility due March 2019 $ 1,459 $ 1,469 6.75% Senior Notes due June 2021 400 400 7.75% Senior Notes due November 2022 350 350 8.00% Senior Notes due May 2016 — 278 1.93% to 4.00% Revolving ABL Credit Facility due February 2021 138 — Debt financing costs, net (45 ) (35 ) Original issue discount on debt (5 ) (8 ) Total debt 2,297 2,454 Less current maturities of long-term debt (100 ) (9 ) Long-term debt $ 2,197 $ 2,445 |
Future Maturities of Long-Term Debt, Excluding Net Discount on Debt | Future maturities of long-term debt, excluding the original issue discount on debt and debt financing costs, as of February 27, 2016 , consist of the following: Fiscal Year 2017 $ 102 2018 — 2019 — 2020 1,357 2021 138 Thereafter 750 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
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 27, 2016 consist of the following: Lease Obligations Fiscal Year Operating Leases Capital Leases 2017 $ 141 $ 42 2018 126 42 2019 105 39 2020 85 36 2021 62 31 Thereafter 167 122 Total future minimum obligations $ 686 312 Less interest (85 ) Present value of net future minimum obligations 227 Less current capital lease obligations (24 ) Long-term capital lease obligations $ 203 |
Rent Expense and Subtenant Rentals | Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following: 2016 2015 2014 Minimum rent $ 156 $ 148 $ 143 Contingent rent 5 6 5 Rent expense 161 154 148 Less subtenant rentals (29 ) (29 ) (27 ) Total net rent expense $ 132 $ 125 $ 121 |
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 27, 2016 , consist of the following: Lease Receipts Fiscal Year Operating Leases Direct Financing Leases 2017 $ 21 $ 1 2018 18 1 2019 12 — 2020 7 — 2021 3 — Thereafter 11 — Total minimum lease receipts $ 72 2 Less interest — Net investment in direct financing leases 2 Less current portion (1 ) Long-term portion $ 1 |
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: 2016 2015 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. 27, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision (benefit) for income taxes consisted of the following: 2016 2015 2014 Current Federal $ 77 $ 35 $ 30 State 10 7 5 Total current 87 42 35 Deferred (2 ) 16 (30 ) Total income tax provision $ 85 $ 58 $ 5 |
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 and the tax provision computed by applying the statutory federal income tax rate to Earnings from continuing operations before income taxes is attributable to the following: 2016 2015 2014 Federal taxes based on statutory rate $ 92 $ 62 $ 4 State income taxes, net of federal benefit 6 12 — Tax contingency (6 ) (1 ) (1 ) Change in valuation allowance 4 — (1 ) Pension (4 ) (8 ) — Other (7 ) (7 ) 3 Total income tax provision $ 85 $ 58 $ 5 |
Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities consisted of the following: 2016 2015 Deferred tax assets: Compensation and benefits $ 235 $ 234 Self-insurance 27 25 Property, plant and equipment and capitalized lease assets 47 72 Loss on sale of discontinued operations 1,388 1,387 Net operating loss carryforwards 15 19 Other 83 69 Gross deferred tax assets 1,795 1,806 Valuation allowance (1,408 ) (1,404 ) Total deferred tax assets 387 402 Deferred tax liabilities: Property, plant and equipment and capitalized lease assets (108 ) (88 ) Inventories (6 ) (14 ) Intangible assets (24 ) (27 ) Other (21 ) (23 ) Total deferred tax liabilities (159 ) (152 ) Net deferred tax assets $ 228 $ 250 |
Changes in Company's Unrecognized Tax Benefits | Changes in the Company’s unrecognized tax positions consisted of the following: 2016 2015 2014 Beginning balance $ 94 $ 76 $ 187 Increase based on tax positions related to the current year 5 15 15 Decrease based on tax positions related to the current year — — — Increase based on tax positions related to prior years — 15 8 Decrease based on tax positions related to prior years (23 ) (4 ) (2 ) Decrease related to settlements with taxing authorities — (3 ) (128 ) Decrease due to lapse of statute of limitations (6 ) (5 ) (4 ) Ending balance $ 70 $ 94 $ 76 |
STOCK-BASED AWARDS (Tables)
STOCK-BASED AWARDS (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
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 (In thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) Outstanding, February 23, 2013 22,246 $ 19.20 4.63 $ 10,402 Granted 10,083 6.58 Exercised (3,121 ) 2.29 Canceled and forfeited (5,873 ) 23.70 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 Granted 5,531 7.44 Exercised (1,723 ) 5.84 Canceled and forfeited (3,336 ) 24.94 Outstanding, February 27, 2016 21,352 $ 7.37 5.93 $ 6,827 Vested and expected to vest in the future as of February 27, 2016 20,089 $ 7.39 5.77 $ 6,558 Exercisable as of February 27, 2016 10,888 $ 7.48 4.28 $ 5,722 |
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: 2016 2015 2014 Dividend yield — % — % — % Volatility rate 49.0 – 56.5% 50.8 – 53.2% 49.3 – 51.3% Risk-free interest rate 1.2 – 1.4% 1.2 – 1.6% 0.6 – 1.0% Expected option life 4.0 – 4.0 years 4.0 – 5.0 years 4.0 – 6.0 years |
Restricted Stock Awards Activities | Restricted stock awards and restricted stock unit activity consisted of the following: Restricted Stock Units (In thousands) Restricted Stock Awards (In thousands) Weighted Average Grant Date Fair Value (1) 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 Granted 65 2,339 8.74 Lapsed (742 ) (456 ) 6.82 Canceled and forfeited (125 ) (239 ) 8.79 Outstanding, February 27, 2016 1,249 2,180 $ 8.68 (1) Weighted average grant date fair value is only used for restricted stock awards. |
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: 2016 2015 2014 Stock-based compensation $ 25 $ 23 $ 22 Income tax benefits (10 ) (9 ) (8 ) Stock-based compensation, net of tax $ 15 $ 14 $ 14 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
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 2016 2015 2016 2015 Changes in Benefit Obligation Benefit obligation at beginning of year $ 2,849 $ 2,726 $ 82 $ 81 Plan amendment — — (21 ) (5 ) Service cost — — — 1 Interest cost 106 121 3 4 Actuarial (gain) loss (175 ) 371 (6 ) 5 Settlements paid (1 ) (272 ) — — Benefits paid (115 ) (97 ) (4 ) (4 ) Benefit obligation at end of year 2,664 2,849 54 82 Changes in Plan Assets Fair value of plan assets at beginning of year 2,317 2,261 4 — Actual return on plan assets (109 ) 260 — — Employer contributions 27 165 15 4 Plan participants’ contributions — — 2 3 Settlements paid (1 ) (272 ) — — Benefits paid (115 ) (97 ) (6 ) (7 ) Other — — — 4 Fair value of plan assets at end of year 2,119 2,317 15 4 Unfunded status at end of year $ (545 ) $ (532 ) $ (39 ) $ (78 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the Consolidated Balance Sheets consist of the following: Pension Benefits Other Postretirement Benefits 2016 2015 2016 2015 Accrued vacation, compensation and benefits $ (2 ) $ (2 ) $ (4 ) $ (6 ) Pension and other postretirement benefit obligations (543 ) (530 ) (35 ) (72 ) Total $ (545 ) $ (532 ) $ (39 ) $ (78 ) Amounts recognized in the Consolidated Balance Sheets consisted of the following: Post-Employment Benefits 2016 2015 Accrued vacation, compensation and benefits $ 5 $ 8 Other long-term liabilities 8 10 Total $ 13 $ 18 |
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 2016 2015 2016 2015 Prior service benefit $ — $ — $ 50 $ 45 Net actuarial loss (693 ) (696 ) (17 ) (28 ) Total recognized in Accumulated other comprehensive loss $ (693 ) $ (696 ) $ 33 $ 17 Total recognized in Accumulated other comprehensive loss, net of tax $ (438 ) $ (432 ) $ 20 $ 9 |
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 income (loss) for defined benefit pension and other postretirement benefit plans consist of the following: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 Net Periodic Benefit Cost (Income) Service cost $ — $ — $ — $ — $ 1 $ 2 Interest cost 106 121 121 3 4 4 Expected return on plan assets (142 ) (149 ) (141 ) — — — Amortization of prior service benefit — — — (15 ) (16 ) (13 ) Amortization of net actuarial loss 79 68 101 3 3 5 Settlement — 64 — — — — Net periodic benefit cost (income) 43 104 81 (9 ) (8 ) (2 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Prior service benefit — — — (21 ) (5 ) (11 ) Amortization of prior service benefit — — — 15 16 12 Net actuarial loss (gain) 76 195 (259 ) (7 ) 6 (16 ) Amortization of net actuarial loss (79 ) (66 ) (101 ) (3 ) (3 ) (5 ) Total expense (benefit) recognized in Other comprehensive income (loss) (3 ) 129 (360 ) (16 ) 14 (20 ) Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive income (loss) $ 40 $ 233 $ (279 ) $ (25 ) $ 6 $ (22 ) |
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: 2016 2015 2014 Benefit obligation assumptions: Discount rate 4.16 – 3.95% 3.80 % 4.65 % Rate of compensation increase — % — % — % Net periodic benefit cost assumptions: (1) Discount rate 3.80 % 4.65 – 4.10% 4.25 % Rate of compensation increase — % — % 2.00 % Expected return on plan assets (2) 6.50 % 7.00 – 6.50% 7.00 % (1) For fiscal 2016 and prior, net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year. (2) Expected 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 27, 2016 , by asset category, consisted of the following: Level 1 Level 2 Level 3 Total Common stock $ 432 $ — $ — $ 432 Common collective trusts—fixed income — 554 — 554 Common collective trusts—equity — 212 — 212 Government securities 49 114 — 163 Mutual funds 56 179 — 235 Corporate bonds — 201 — 201 Real estate partnerships — — 164 164 Private equity — — 141 141 Mortgage-backed securities — 14 — 14 Other — 3 — 3 Total plan assets at fair value $ 537 $ 1,277 $ 305 $ 2,119 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 asset allocation targets and the actual allocation of pension plan assets are as follows: Asset Category Target 2016 2015 Domestic equity 22.2 % 22.4 % 24.8 % International equity 11.1 % 11.1 % 11.3 % Private equity 6.6 % 6.6 % 6.2 % Fixed income 47.5 % 47.3 % 48.1 % Real estate 12.6 % 12.6 % 9.6 % Total 100.0 % 100.0 % 100.0 % |
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 2016 and 2015 : Real Estate Partnerships Private Equity 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 Purchases 7 25 Sales (18 ) (18 ) Unrealized gains 9 (10 ) Realized gains and losses 4 — Ending balance, February 27, 2016 $ 164 $ 141 |
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 2017 $ 154 $ 4 2018 135 4 2019 140 4 2020 148 4 2021 158 4 Years 2022-2026 843 20 |
Schedule of Pension Funds Contributions | The following table contains information about the Company’s multiemployer plans: EIN—Pension Plan Number Plan Month/Day End Date Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions Surcharges Imposed (1) Amortization Provisions Pension Fund 2016 2015 2016 2015 2014 Minneapolis Food Distributing Industry Pension Plan 416047047-001 12/31 Green Green Implemented $ 10 $ 10 $ 9 No Yes Central States, Southeast and Southwest Areas Pension Fund 366044243-001 12/31 Red Red Implemented 8 8 8 No No Minneapolis Retail Meat Cutters and Food Handlers Pension Fund 410905139-001 2/28 Green Yellow Implemented 9 7 8 No No UFCW Unions and Participating Employers Pension Fund 526117495-002 12/31 Red Red Implemented 5 4 4 Yes No Western Conference of Teamsters Pension Plan 916145047-001 12/31 Green Green No 4 4 3 No No UFCW Union Local 655 Food Employers Joint Pension Plan 436058365-001 12/31 Green Green No 2 2 2 No No UFCW Unions and Employers Pension Plan 396069053-001 10/31 Red Red Implemented 2 1 2 Yes No All Other Multiemployer Pension Plans (2) 3 3 3 Total $ 43 $ 39 $ 39 (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 11 plans, none of which is 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 2015 Minneapolis Food Distributing Industry Pension Plan 6/1/2015 – 5/31/2018 1 5/31/2018 100.0 % Yes Central States, Southeast and Southwest Areas Pension Fund 6/1/2011 – 8/31/2017 10 6/14/2017 27.5 % No Minneapolis Retail Meat Cutters and Food Handlers Pension Fund 3/6/2016 – 3/4/2018 1 3/4/2018 100.0 % Yes UFCW Unions and Participating Employers Pension Plan 7/13/2014 – 7/8/2017 2 7/8/2017 68.0 % Yes Western Conference of Teamsters Pension Plan 6/15/2011 – 7/15/2017 8 7/15/2017 44.8 % No UFCW Union Local 655 Food Employers Joint Pension Plan 5/13/2013 – 5/8/2016 1 5/8/2016 100.0 % Yes UFCW Unions and Employers Pension Plan 4/6/2014 – 4/2/2016 2 4/2/2016 76.5 % 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 (
NET EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
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 per share: 2016 2015 2014 Net earnings from continuing operations $ 178 $ 127 $ 13 Less net earnings attributable to noncontrolling interests (8 ) (7 ) (7 ) Net earnings from continuing operations attributable to SUPERVALU INC. 170 120 6 Income from discontinued operations, net of tax 8 72 176 Net earnings attributable to SUPERVALU INC. $ 178 $ 192 $ 182 Weighted average number of shares outstanding—basic 263 260 255 Dilutive impact of stock-based awards 5 4 3 Weighted average number of shares outstanding—diluted 268 264 258 Basic net earnings per share attributable to SUPERVALU INC.: Continuing operations $ 0.64 $ 0.46 $ 0.02 Discontinued operations $ 0.03 $ 0.28 $ 0.69 Basic net earnings per share $ 0.68 $ 0.74 $ 0.71 Diluted net earnings per share attributable to SUPERVALU INC.: Continuing operations $ 0.63 $ 0.45 $ 0.02 Discontinued operations $ 0.03 $ 0.27 $ 0.68 Diluted net earnings per share $ 0.66 $ 0.73 $ 0.70 |
COMPREHENSIVE INCOME (LOSS) A40
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive loss by component are as follows: Benefit Plans Interest Rate Swap Total February 23, 2013 accumulated other comprehensive loss $ (612 ) $ — $ (612 ) Other comprehensive income before reclassifications 202 — 202 Amortization of amounts included in net periodic benefit cost (1) 55 — 55 Net Other comprehensive income 257 — 257 Divestiture of NAI pension plan 48 — 48 February 22, 2014 accumulated other comprehensive loss (307 ) — (307 ) Other comprehensive loss before reclassifications (188 ) — (188 ) Pension settlement charge (2) 39 — 39 Amortization of amounts included in net periodic benefit cost (1) 33 — 33 Net Other comprehensive loss (116 ) — (116 ) February 28, 2015 accumulated other comprehensive loss (423 ) — (423 ) Other comprehensive loss before reclassifications (37 ) (4 ) (41 ) Amortization of amounts included in net periodic benefit cost (1) 42 — 42 Net Other comprehensive income (loss) 5 (4 ) 1 February 27, 2016 accumulated other comprehensive loss $ (418 ) $ (4 ) $ (422 ) (1) Amortization of amounts included in net periodic benefit cost includes amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 11—Benefit Plans . (2) Refer to Note 11—Benefit Plans for additional information on the Company's fiscal 2015 pension settlement charge. |
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: 2016 2015 2014 Affected Line Item on Consolidated Statements of Operations Pension and postretirement benefit plan obligations: Amortization of amounts included in net periodic benefit expense (1) $ 59 $ 43 $ 82 Selling and administrative expenses Amortization of amounts included in net periodic benefit expense (1) 8 11 11 Cost of sales Pension settlement charge — 64 — Selling and administrative expenses Total reclassifications 67 118 93 Income tax benefit (25 ) (46 ) (38 ) Income tax provision Total reclassifications, net of tax $ 42 $ 72 $ 55 (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. 27, 2016 | |
Segment Reporting [Abstract] | |
Net Sales of Retail Food and Independent Segment in Terms of Amounts and Percentage | 2016 2015 2014 Wholesale: Nonperishable grocery products (1) $ 5,753 33 % $ 5,939 33 % $ 6,000 35 % Perishable grocery products (2) 2,025 12 2,099 12 1,951 11 Services to independent retail customers and other 157 1 160 1 151 1 7,935 45 % 8,198 46 % 8,102 47 % Save-A-Lot: Nonperishable grocery products (1) $ 2,956 17 % $ 2,989 17 % $ 2,823 17 % Perishable grocery products (2) 1,597 9 1,587 9 1,373 8 Services to licensees and other 70 — 65 — 59 — 4,623 26 % 4,641 26 % 4,255 25 % Retail: Nonperishable grocery products (1) $ 2,607 15 % $ 2,677 15 % $ 2,600 15 % Perishable grocery products (2) 1,549 9 1,574 9 1,463 9 Pharmacy products 511 3 510 3 491 3 Fuel 67 — 83 — 67 — Other 35 — 40 — 34 — 4,769 27 % 4,884 27 % 4,655 27 % Corporate: Transition services revenue $ 202 1 % $ 194 1 % $ 240 1 % Net sales $ 17,529 100 % $ 17,917 100 % $ 17,252 100 % (1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, home, health and beauty care and candy (2) Includes such items as meat, produce, deli and bakery |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Feb. 27, 2016 | |
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: 2016 2015 2014 Net sales $ — $ — $ 1,235 (Loss) income before income taxes from discontinued operations (1 ) 6 121 Income tax benefit (9 ) (66 ) (55 ) Income from discontinued operations, net of tax $ 8 $ 72 $ 176 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | Mar. 21, 2013USD ($)$ / sharesshares | Feb. 27, 2016USD ($)SegmentMarketsdistribution_centerStore | Feb. 28, 2015USD ($) | Feb. 22, 2014USD ($) | Feb. 23, 2013$ / sharesshares |
Significant Accounting Policies [Line Items] | |||||
Number of retail banners | Segment | 5 | ||||
Net book overdrafts | $ 131 | $ 145 | |||
Allowance for losses on receivables | 13 | 18 | |||
Bad debt expense | $ 6 | $ 6 | $ 16 | ||
Percentage of inventory valued under LIFO | 57.00% | 55.00% | |||
Percentage of LIFO inventory valued under replacement cost method | 5.00% | 5.00% | |||
Percentage of LIFO inventory valued under retail inventory method and weighted average | 52.00% | 50.00% | |||
Percentage of FIFO inventory valued under cost, weighted average cost and retail inventory method | 26.00% | 26.00% | |||
Percentage Of First In First Out Inventory Valued Under Replacement Cost Method | 17.00% | 19.00% | |||
Cost of sales decreased due to certain LIFO layers were reduced | $ 1 | 14 | |||
Value increase in inventory by changing the method from LIFO to FIFO | 215 | $ 211 | |||
Discount on self-insurance reserve | 6 | 6 | |||
Cash proceeds from the issuance of shares | 10 | 7 | 177 | ||
Self Insurance, Receivables | 451 | 482 | |||
Deferred tax assets | 228 | 250 | |||
Other current liabilities | 148 | 157 | |||
Other assets | 104 | 101 | |||
Long-term debt | 2,197 | 2,445 | |||
Symphony Investors | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage on issued and outstanding common stock | 30.00% | ||||
Common stock Purchase price (usd per share) | $ / shares | $ 4 | ||||
Validly tendered shares (shares) | shares | 12 | ||||
Percentage on issued and outstanding common stock | 5.50% | ||||
Tender offer expiration date | Mar. 20, 2013 | ||||
Additional common stock issued (shares) | shares | 42 | ||||
Percentage of outstanding shares | 19.90% | ||||
Tender offer price per share (usd per share) | $ / shares | $ 4 | ||||
Cash proceeds from the issuance of shares | $ 170 | ||||
Ownership percentage after share issuance | 21.20% | ||||
Asset under Construction | |||||
Significant Accounting Policies [Line Items] | |||||
Interest capitalized during period | $ 1 | 1 | 1 | ||
Retail | |||||
Significant Accounting Policies [Line Items] | |||||
Number of geographic markets (markets) | Markets | 6 | ||||
Corporate | |||||
Significant Accounting Policies [Line Items] | |||||
Number of individual corporate stores (stores) | Store | 28 | ||||
Number of Distribution Centers Without Corporate Stores | distribution_center | 2 | ||||
Retail Food and Save-A-Lot | |||||
Significant Accounting Policies [Line Items] | |||||
Retail food advertising expenses, net of cooperative adverting reimbursements | $ 64 | $ 62 | $ 77 | ||
Save-A-Lot | |||||
Significant Accounting Policies [Line Items] | |||||
Number of geographic markets (markets) | Markets | 13 | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Remaining Lease Term | 1 year | ||||
Discount rate | 0.30% | 0.30% | 0.30% | ||
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% | ||
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 | ||||
Insurance Claims [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Self Insurance, Receivables | $ 11 | $ 9 | |||
Adjustments for New Accounting Pronouncement [Member] | Restatement Adjustment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Deferred tax assets | (15) | ||||
Other current liabilities | (15) | ||||
Other assets | (35) | ||||
Long-term debt | $ (35) |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Self-Insurance Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Movement in Self Insurance Reserve [Roll Forward] | |||
Beginning balance | $ 93 | $ 103 | $ 97 |
Expense | 29 | 31 | 34 |
Claim payments | (28) | (32) | (33) |
Reclassification of insurance recoveries to receivables | 1 | (9) | 5 |
Ending balance | 95 | 93 | 103 |
Less current portion | (31) | (30) | (33) |
Long-term portion | $ 64 | $ 63 | $ 70 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revisions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 29, 2014 | Nov. 29, 2014 | Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Revenue, Net | $ 17,529 | $ 17,917 | $ 17,252 | ||
% of total | 100.00% | 100.00% | 100.00% | ||
Cost of Goods and Services Sold | $ 14,945 | $ 15,329 | $ 14,712 | ||
Gross Profit | 2,584 | 2,588 | 2,540 | ||
Selling, General and Administrative Expense | 2,124 | 2,164 | 2,117 | ||
Operating earnings | 454 | 424 | 423 | ||
Scenario, Previously Reported [Member] | |||||
Revenue, Net | $ 17,820 | $ 17,153 | |||
% of total | 100.00% | 100.00% | |||
Cost of Goods and Services Sold | $ 15,242 | $ 14,623 | |||
Gross Profit | 2,578 | 2,530 | |||
Selling, General and Administrative Expense | 2,154 | 2,107 | |||
Operating earnings | 424 | 423 | |||
Scenario, Adjustment [Member] | |||||
Revenue, Net | 97 | 99 | |||
% of total | 0.00% | 0.00% | |||
Cost of Goods and Services Sold | 87 | 89 | |||
Gross Profit | 10 | 10 | |||
Selling, General and Administrative Expense | 10 | 10 | |||
Operating earnings | 0 | 0 | |||
Wholesale | |||||
Revenue, Net | $ 7,935 | $ 8,198 | $ 8,102 | ||
% of total | 45.30% | 45.80% | 47.00% | ||
Operating earnings | $ 230 | $ 243 | $ 235 | ||
Wholesale | Scenario, Previously Reported [Member] | |||||
Revenue, Net | $ 8,134 | $ 8,036 | |||
% of total | 45.60% | 46.90% | |||
Wholesale | Scenario, Adjustment [Member] | |||||
Revenue, Net | $ 64 | $ 66 | |||
% of total | 0.20% | 0.10% | |||
Save-A-Lot | |||||
Revenue, Net | $ 4,623 | $ 4,641 | $ 4,255 | ||
% of total | 26.40% | 25.80% | 24.60% | ||
Operating earnings | $ 129 | $ 153 | $ 167 | ||
Save-A-Lot | Scenario, Previously Reported [Member] | |||||
Revenue, Net | $ 4,613 | $ 4,228 | |||
% of total | 25.90% | 24.60% | |||
Save-A-Lot | Scenario, Adjustment [Member] | |||||
Revenue, Net | $ 28 | $ 27 | |||
% of total | (0.10%) | 0.00% | |||
Retail | |||||
Revenue, Net | $ 4,769 | $ 4,884 | $ 4,655 | ||
% of total | 27.20% | 27.30% | 27.00% | ||
Operating earnings | $ 94 | $ 122 | $ 77 | ||
Retail | Scenario, Previously Reported [Member] | |||||
Revenue, Net | $ 4,879 | $ 4,649 | |||
% of total | 27.40% | 27.10% | |||
Retail | Scenario, Adjustment [Member] | |||||
Revenue, Net | $ 5 | $ 6 | |||
% of total | (0.10%) | (0.10%) | |||
Corporate | |||||
Revenue, Net | $ 202 | $ 194 | $ 240 | ||
% of total | 1.10% | 1.10% | 1.40% | ||
Operating earnings | $ 1 | $ (94) | $ (56) | ||
Corporate | Scenario, Previously Reported [Member] | |||||
Revenue, Net | $ 194 | $ 240 | |||
% of total | 1.10% | 1.40% | |||
Corporate | Scenario, Adjustment [Member] | |||||
Revenue, Net | $ 0 | $ 0 | |||
% of total | 0.00% | 0.00% |
BUSNIESS ACQUISITIONS (Details)
BUSNIESS ACQUISITIONS (Details) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016USD ($)Store | Feb. 28, 2015USD ($)Store | Feb. 22, 2014USD ($) | |
Business Acquisition [Line Items] | |||
Cash payment related to acquisition | $ 9 | $ 55 | $ 0 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Total payment related to acquisition | $ 7 | ||
Number of stores (stores) | Store | 4 | ||
Rainbow Foods | |||
Business Acquisition [Line Items] | |||
Total payment related to acquisition | 34 | ||
Cash payment related to acquisition | 5 | ||
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 | $ 2 | 19 | |
Fair value of property, plant and equipment acquired | 3 | ||
Fair value of goodwill acquired | 5 | ||
Fair value of inventories acquired | $ 3 | ||
Number of stores (stores) | Store | 8 | 38 | |
Number of purchase agreements | Store | 20 | ||
Rainbow Foods Grocery Stores | |||
Business Acquisition [Line Items] | |||
Number of stores acquired (stores) | Store | 7 | ||
Rainbow Foods Pharmacy Locations | |||
Business Acquisition [Line Items] | |||
Number of stores acquired (stores) | Store | 11 | ||
Rainbow Foods Liquor Store | |||
Business Acquisition [Line Items] | |||
Number of stores acquired (stores) | Store | 1 | ||
Minority Interest | Rainbow Foods Grocery Stores | |||
Business Acquisition [Line Items] | |||
Number of stores acquired (stores) | Store | 2 | ||
Minority Interest | Cub Foods grocery stores | |||
Business Acquisition [Line Items] | |||
Number of stores acquired (stores) | Store | 5 | ||
Favorable Lease Agreements | Savea Lot Licensee Stores | |||
Business Acquisition [Line Items] | |||
Fair value of intangible assets acquired | $ 8 | ||
Minimum | Savea Lot Licensee Stores | |||
Business Acquisition [Line Items] | |||
Operating leases, remaining term of contract | 5 years | 3 years | |
Maximum | Savea Lot Licensee Stores | |||
Business Acquisition [Line Items] | |||
Operating leases, remaining term of contract | 10 years | 13 years |
GOODWILL AND INTANGIBLE ASSET47
GOODWILL AND INTANGIBLE ASSETS - Change in Company's Goodwill and Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Goodwill: | |||
Goodwill, Beginning Balance | $ 865 | $ 847 | |
Additions | 2 | 18 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 867 | 865 | $ 847 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Beginning Balance | 136 | 123 | |
Intangible Assets, Additions | 25 | 13 | |
Intangible Assets, Impairments | (6) | 0 | |
Intangible Assets, Other Net Adjustments | (1) | 0 | |
Intangible Assets, Ending Balance | 154 | 136 | 123 |
Intangible Assets Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, Beginning balance | (88) | (80) | |
Accumulated amortization, addition | (11) | (8) | (8) |
Accumulated amortization, other net adjustments | 0 | 0 | |
Accumulated amortization, Beginning balance | (99) | (88) | (80) |
Total intangible assets, net | 55 | 48 | 43 |
Wholesale | |||
Goodwill: | |||
Goodwill, Beginning Balance | 710 | 710 | |
Additions | 0 | 0 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 710 | 710 | 710 |
Save-A-Lot | |||
Goodwill: | |||
Goodwill, Beginning Balance | 141 | 137 | |
Additions | 1 | 4 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 142 | 141 | 137 |
Retail | |||
Goodwill: | |||
Goodwill, Beginning Balance | 14 | 0 | |
Additions | 1 | 14 | |
Impairments | 0 | 0 | |
Other net adjustments | 0 | 0 | |
Goodwill, Ending Balance | 15 | 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 | 9 |
Favorable operating leases, prescription files, customer lists and other | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Finite-Lived Intangible Assets, Beginning Balance | 124 | 111 | |
Finite-Lived Intangible Assets, Additions | 25 | 13 | |
Finite-Lived Intangible Assets, Impairments | (6) | 0 | |
Finite Lived Intangible Assets Other Net Adjustments | (1) | 0 | |
Finite-Lived Intangible Assets, Ending Balance | 142 | 124 | 111 |
Intangible Assets Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, Beginning balance | (86) | ||
Accumulated amortization, Beginning balance | (97) | (86) | |
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 | $ 3 |
Intangible Assets Accumulated Amortization [Roll Forward] | |||
Accumulated amortization, Beginning balance | (2) | ||
Accumulated amortization, Beginning balance | $ (2) | $ (2) |
GOODWILL AND INTANGIBLE ASSET48
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Intangible Assets By Major Class [Line Items] | |||
Amortization Expense of intangible assets | $ 11 | $ 8 | $ 8 |
Future amortization expense, Year One | 7 | ||
Future amortization expense, Year Two | 7 | ||
Future amortization expense, Year Three | 7 | ||
Future amortization expense, Year Four | 7 | ||
Future amortization expense, Year Five | 7 | ||
Wholesale | |||
Intangible Assets By Major Class [Line Items] | |||
Percentage by which fair value of good will exceeded carrying value | 95.00% | ||
Wholesale | Tradename | |||
Intangible Assets By Major Class [Line Items] | |||
Pre-tax non-cash impairment charge | $ 6 | ||
Save-A-Lot | |||
Intangible Assets By Major Class [Line Items] | |||
Percentage by which fair value of good will exceeded carrying value | 35.00% | ||
Save-A-Lot | |||
Intangible Assets By Major Class [Line Items] | |||
Minimum percentage by which fair value of good will exceeded carrying value | 100.00% | ||
Retail | |||
Intangible Assets By Major Class [Line Items] | |||
Percentage by which fair value of good will exceeded carrying value | 100.00% |
RESERVES FOR CLOSED PROPERTIE49
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES - Changes in Company's Reserves (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 34 | $ 47 | $ 61 |
Additions | 8 | 4 | 4 |
Payments | (12) | (12) | (16) |
Adjustments | (1) | (5) | (2) |
Ending balance | $ 29 | $ 34 | $ 47 |
RESERVES FOR CLOSED PROPERTIE50
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Restructuring and Related Activities [Abstract] | |||
Carrying value | $ 11 | $ 4 | $ 45 |
Fair value measured using Level 3 inputs | 3 | 1 | 21 |
Impairment charge | $ 8 | $ 3 | $ 24 |
RESERVES FOR CLOSED PROPERTIE51
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES - Additional Information (Detail) $ in Millions | 12 Months Ended |
Feb. 27, 2016USD ($)Store | |
Significant Activity In Property Plant And Equipment [Line Items] | |
Impairment charges | $ | $ 5 |
Save-A-Lot | |
Significant Activity In Property Plant And Equipment [Line Items] | |
Number of non - strategic stores closed (stores) | Store | 15 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 4,576 | $ 4,471 |
Accumulated depreciation | (2,897) | (2,779) |
Accumulated amortization on capitalized lease assets | (198) | (222) |
Total property, plant and equipment, net | 1,481 | 1,470 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 104 | 104 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,295 | 1,252 |
Property under construction | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 79 | 71 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 722 | 709 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,082 | 2,021 |
Capitalized lease assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 294 | $ 314 |
PROPERTY, PLANT AND EQUIPMENT53
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 248 | $ 258 | $ 275 |
Amortization expense related to capitalized lease assets | $ 18 | $ 19 | $ 19 |
FAIR VALUE MEASUREMENTS - Recur
FAIR VALUE MEASUREMENTS - Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Total | $ 6 | $ 7 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total | 50 | 47 |
Other assets | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 6 | 7 |
Other current liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 7 | 13 |
Other current liabilities | Energy Related Derivative | Fuel | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 2 | 1 |
Other current liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 3 | |
Other long-term liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 35 | 33 |
Other long-term liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 3 | |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 6 | 7 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total | 0 | 0 |
Level 1 | Other assets | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 6 | 7 |
Level 1 | Other current liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 0 | 0 |
Level 1 | Other current liabilities | Energy Related Derivative | Fuel | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | 0 |
Level 1 | Other current liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | |
Level 1 | Other long-term liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 0 | 0 |
Level 1 | Other long-term liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total | 50 | 47 |
Level 2 | Other assets | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 0 | 0 |
Level 2 | Other current liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 7 | 13 |
Level 2 | Other current liabilities | Energy Related Derivative | Fuel | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 2 | 1 |
Level 2 | Other current liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 3 | |
Level 2 | Other long-term liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 35 | 33 |
Level 2 | Other long-term liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 3 | |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Total | 0 | 0 |
Level 3 | Other assets | ||
Assets, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 0 | 0 |
Level 3 | Other current liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 0 | 0 |
Level 3 | Other current liabilities | Energy Related Derivative | Fuel | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | 0 |
Level 3 | Other current liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | 0 | |
Level 3 | Other long-term liabilities | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Deferred compensation | 0 | $ 0 |
Level 3 | Other long-term liabilities | Interest Rate Swap | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liability | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 27, 2016 | 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 | $ 1 | $ 2 | ||
Difference between fair value and book value of long-term debt | 236 | 59 | ||
Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notional amount of derivative | $ 300 | |||
Fixed interest rate | 5.5075% | |||
Effect of 100 basis point increase in LIBOR interest rate | 6 | |||
Effect of 100 basis point decrease in LIBOR interest rate | 3 | |||
Cost of Sales | Fuel | Energy Related Derivative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loss on derivatives | $ 3 | $ 1 | $ 0 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt and Capital Lease Obligations (Detail) - USD ($) $ in Millions | Jan. 06, 2016 | Feb. 27, 2016 | Feb. 28, 2015 |
Debt Instrument [Line Items] | |||
Long Term Debentures and Notes due | $ 2,197 | $ 2,445 | |
Debt financing costs, net | (45) | (35) | |
Original issue discount on debt | (5) | (8) | |
Total debt | 2,297 | 2,454 | |
Less current maturities of long-term debt | (100) | (9) | |
Long-term debt | $ 2,197 | $ 2,445 | |
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% | |
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] | |||
Redemption amount | $ 278 | ||
Stated interest rate | 8.00% | 8.00% | 8.00% |
Secured Debt | 4.50% Secured Term Loan Facility due March 2019 | |||
Debt Instrument [Line Items] | |||
Long Term Debentures and Notes due | $ 1,459 | $ 1,469 | |
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 | 350 | |
Senior Notes | 8.00% Senior Notes due May 2016 | |||
Debt Instrument [Line Items] | |||
Long Term Debentures and Notes due | 0 | 278 | |
Revolving Credit Facility | 1.93% to 4.00% Revolving ABL Credit Facility due February 2021 | |||
Debt Instrument [Line Items] | |||
Long Term Debentures and Notes due | $ 138 | $ 0 |
LONG-TERM DEBT - Long-Term De57
LONG-TERM DEBT - Long-Term Debt and Capital Lease Obligations Additional Information (Detail) | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Jan. 06, 2016 | |
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% | |
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% | 8.00% |
1.93% to 4.00% Revolving ABL Credit Facility due February 2021 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Minimum | 1.93% | 1.93% | |
Debt Instrument, Interest Rate, Maximum | 4.00% | 4.00% |
LONG-TERM DEBT - Future Maturit
LONG-TERM DEBT - Future Maturities of Long-Term Debt, Excluding Net Discount on Debt (Detail) $ in Millions | Feb. 27, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,017 | $ 102 |
2,018 | 0 |
2,019 | 0 |
2,020 | 1,357 |
2,021 | 138 |
Thereafter | $ 750 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Detail) - USD ($) $ in Millions | Feb. 03, 2016 | Jan. 06, 2016 | Feb. 27, 2016 | Feb. 28, 2015 |
Proforma Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,197 | $ 2,445 | ||
Revolving ABL Credit Facility | ||||
Proforma Debt Instrument [Line Items] | ||||
Line of Credit Facility, Fee Percentage | 1.625% | 1.625% | ||
Line of Credit Facility, Commitment Fee Amount | $ 744 | |||
Long-term Line of Credit | 138 | $ 0 | ||
Letters of Credit Outstanding, Amount | 69 | 76 | ||
Remaining borrowing capacity | $ 871 | |||
Unused borrowing capacity fee | 0.375% | |||
Proceeds from lines of credit | 840 | $ 3,268 | ||
Repayments of Debt | 702 | $ 3,268 | ||
Aggregate cap on restricted payments | 401 | |||
Annual dividends permitted | 75 | |||
Total dividends permitted | $ 175 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Revolving ABL Credit Facility, Amendment No. 3 | ||||
Proforma Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Quarterly Commitment Fee Percentage Multiplier | 0.25% | |||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.25%) | |||
Revolving ABL Credit Facility, Amendment No. 3 | Minimum | ||||
Proforma Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.25% | |||
Revolving ABL Credit Facility, Amendment No. 3 | Maximum | ||||
Proforma Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.75% | |||
6.75% Senior Notes due June 2021 | ||||
Proforma Debt Instrument [Line Items] | ||||
Stated interest rate | 6.75% | 6.75% | ||
Senior Notes Containing Operating Covenants Including Limitations on Transactions | $ 400 | |||
6.75% Senior Notes due June 2021 | Senior Notes | ||||
Proforma Debt Instrument [Line Items] | ||||
Long-term debt | $ 400 | $ 400 | ||
8.00% Senior Notes due May 2016 | ||||
Proforma Debt Instrument [Line Items] | ||||
Stated interest rate | 8.00% | 8.00% | 8.00% | |
Redemption amount | $ 278 | |||
Redemption premium | 6 | |||
Write off of deferred debt issuance cost | $ 1 | |||
8.00% Senior Notes due May 2016 | Senior Notes | ||||
Proforma Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 278 | ||
Senior Notes Due 2022 | ||||
Proforma Debt Instrument [Line Items] | ||||
Senior Notes Containing Operating Covenants Including Limitations on Transactions | 350 | |||
Term Loan Credit Facility | Term Loan A | ||||
Proforma Debt Instrument [Line Items] | ||||
Secured debt | 1,459 | 1,469 | ||
Debt Instrument, Face Amount | 1,500 | |||
Secured debt, current | $ 102 | 11 | ||
Percentage of net cash proceeds to prepay outstanding loans | 100.00% | |||
Maximum period for prepayment of loans outstanding | 90 days | |||
Debt instrument, prepayment of loan | $ 99 | |||
Term Loan Credit Facility | Term Loan A | Property, Plant and Equipment | ||||
Proforma Debt Instrument [Line Items] | ||||
Collateral amount | $ 781 | 776 | ||
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] | ||||
Maximum borrowing capacity | $ 1,000 | |||
London Interbank Offered Rate (LIBOR) | Revolving ABL Credit Facility, Amendment No. 3 | Minimum | ||||
Proforma Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) | Revolving ABL Credit Facility, Amendment No. 3 | Maximum | ||||
Proforma Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
London Interbank Offered Rate (LIBOR) | Term Loan Credit Facility | Term Loan A | ||||
Proforma Debt Instrument [Line Items] | ||||
Libor floor rate | 1.00% | |||
Basis spread on variable rate | 3.50% | |||
Prime Rate | Revolving ABL Credit Facility, Amendment No. 3 | Minimum | ||||
Proforma Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Prime Rate | Revolving ABL Credit Facility, Amendment No. 3 | Maximum | ||||
Proforma Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Inventories | Revolving ABL Credit Facility | ||||
Proforma Debt Instrument [Line Items] | ||||
Collateral amount | $ 1,238 | 1,188 | ||
Accounts Receivable | Revolving ABL Credit Facility | ||||
Proforma Debt Instrument [Line Items] | ||||
Collateral amount | 222 | 220 | ||
Cash and Cash Equivalents | Revolving ABL Credit Facility | ||||
Proforma Debt Instrument [Line Items] | ||||
Collateral amount | $ 23 | $ 28 |
LEASES - Noncancellable Operati
LEASES - Noncancellable Operating Leases and Capital Leases (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Operating Leases | ||
2,017 | $ 141 | |
2,018 | 126 | |
2,019 | 105 | |
2,020 | 85 | |
2,021 | 62 | |
Thereafter | 167 | |
Total future minimum obligations | 686 | |
Capital Leases | ||
2,017 | 42 | |
2,018 | 42 | |
2,019 | 39 | |
2,020 | 36 | |
2,021 | 31 | |
Thereafter | 122 | |
Total future minimum obligations | 312 | |
Less interest | (85) | |
Present value of net future minimum obligations | 227 | |
Less current capital lease obligations | (24) | |
Long-term capital lease obligations | $ 203 | $ 213 |
LEASES - Rent Expense and Subte
LEASES - Rent Expense and Subtenant Rentals (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Leases [Abstract] | |||
Minimum rent | $ 156 | $ 148 | $ 143 |
Contingent rent | 5 | 6 | 5 |
Rent expense | 161 | 154 | 148 |
Less subtenant rentals | (29) | (29) | (27) |
Total net rent expense | $ 132 | $ 125 | $ 121 |
LEASES - Additional Information
LEASES - Additional Information (Detail) | 12 Months Ended |
Feb. 27, 2016 | |
Leases [Abstract] | |
Term of lease minimum | 1 year |
Term of lease maximum | 5 years |
LEASES - Future Minimum Lease a
LEASES - Future Minimum Lease and Subtenant Rentals Under Noncancellable Leases (Detail) $ in Millions | Feb. 27, 2016USD ($) |
Operating Leases | |
2,017 | $ 21 |
2,018 | 18 |
2,019 | 12 |
2,020 | 7 |
2,021 | 3 |
Thereafter | 11 |
Total minimum lease receipts | 72 |
Direct Financing Leases | |
2,017 | 1 |
2,018 | 1 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total minimum lease receipts | 2 |
Less interest | 0 |
Net investment in direct financing leases | 2 |
Less current portion | (1) |
Long-term portion | $ 1 |
LEASES - Carrying Value of Owne
LEASES - Carrying Value of Owned Property Leased to Third Parties Under Operating Leases (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Leases [Abstract] | ||
Property, plant and equipment | $ 4 | $ 4 |
Less accumulated depreciation | (3) | (3) |
Property, plant and equipment, net | $ 1 | $ 1 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Current | |||
Federal | $ 77 | $ 35 | $ 30 |
State | 10 | 7 | 5 |
Total current | 87 | 42 | 35 |
Deferred | (2) | 16 | (30) |
Total income tax provision | $ 85 | $ 58 | $ 5 |
INCOME TAXES - Difference Betwe
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 ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal taxes based on statutory rate | $ 92 | $ 62 | $ 4 |
State income taxes, net of federal benefit | 6 | 12 | 0 |
Tax contingency | (6) | (1) | (1) |
Change in valuation allowance | 4 | 0 | (1) |
Pension | (4) | (8) | 0 |
Other | (7) | (7) | 3 |
Total income tax provision | $ 85 | $ 58 | $ 5 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Deferred tax assets: | ||
Compensation and benefits | $ 235 | $ 234 |
Self-insurance | 27 | 25 |
Property, plant and equipment and capitalized lease assets | 47 | 72 |
Loss on sale of discontinued operations | 1,388 | 1,387 |
Net operating loss carryforwards | 15 | 19 |
Other | 83 | 69 |
Gross deferred tax assets | 1,795 | 1,806 |
Valuation allowance | (1,408) | (1,404) |
Total deferred tax assets | 387 | 402 |
Deferred tax liabilities: | ||
Property, plant and equipment and capitalized lease assets | (108) | (88) |
Inventories | (6) | (14) |
Intangible assets | (24) | (27) |
Other | (21) | (23) |
Total deferred tax liabilities | (159) | (152) |
Net deferred tax assets | $ 228 | $ 250 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Income Tax Disclosure [Abstract] | |||
State net operating loss carryforwards | $ 315 | ||
Valuation allowance | $ 6 | ||
Capital loss expiration date | 2,019 | ||
Unrecognized tax benefits that would impact effective tax rate if recognized | $ 34 | $ 36 | $ 48 |
Unrecognized tax benefits, related to interest | (9) | (7) | $ (4) |
Unrecognized tax benefits, related to penalties | 5 | ||
Unrecognized tax benefits, related to accrued interest | 16 | 26 | |
Unrecognized tax benefits, related to accrued penalties | $ 5 | $ 0 |
INCOME TAXES - Changes in Compa
INCOME TAXES - Changes in Company's Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 94 | $ 76 | $ 187 |
Increase based on tax positions related to the current year | 5 | 15 | 15 |
Decrease based on tax positions related to the current year | 0 | 0 | 0 |
Increase based on tax positions related to prior years | 0 | 15 | 8 |
Decrease based on tax positions related to prior years | (23) | (4) | (2) |
Decrease related to settlements with taxing authorities | 0 | (3) | (128) |
Decrease due to lapse of statute of limitations | (6) | (5) | (4) |
Ending balance | $ 70 | $ 94 | $ 76 |
STOCK-BASED AWARDS - Additional
STOCK-BASED AWARDS - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Contractual term | 5 years 11 months 4 days | 6 years 6 months 18 days | 5 years 4 months 28 days | 4 years 7 months 17 days |
Excess tax benefits realized related to the stock based awards | $ 1 | $ 1 | $ 1 | |
Unrecognized compensation expense related to the unvested stock based awards | $ 31 | |||
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% | |||
Certain Employees [Member] | ||||
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) | $ 3.67 | $ 3.28 | $ 2.78 | |
Number of stock options granted during the period (shares) | 4,000 | 5,000 | 9,000 | |
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) | $ 2.08 | |||
Number of stock options granted during the period (shares) | 2,000 | |||
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] | ||||
Accelerated stock compensation resulted by deemed change-in-control | $ 3 | |||
Award units grant to certain employees (shares) | 2,339 | 18 | 491 | |
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) | 65 | 2,274 | 296 | |
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 | |||
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 | 18,000 | |||
2012 Stock Awards Plan | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of stock options vested | 3 years | 3 years | ||
Award units grant to certain employees (shares) | 2,000 | 2,000 |
STOCK-BASED AWARDS - Stock Opti
STOCK-BASED AWARDS - Stock Options Granted, Exercised and Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | Feb. 23, 2013 | |
Shares Under Option (In thousands) | ||||
Beginning Balance, Shares Under Option, Outstanding (shares) | 20,880 | 23,335 | 22,246 | |
Shares Under Option, Granted (shares) | 5,531 | 5,022 | 10,083 | |
Shares Under Option, Exercised (shares) | (1,723) | (1,944) | (3,121) | |
Shares Under Option, Canceled and forfeited (shares) | (3,336) | (5,533) | (5,873) | |
Ending Balance, Shares Under Option, Outstanding (shares) | 21,352 | 20,880 | 23,335 | 22,246 |
Shares Under Option, Vested and expected to vest in the future (shares) | 20,089 | |||
Shares Under Option, Exercisable (shares) | 10,888 | |||
Weighted Average Exercise Price | ||||
Beginning Balance, Weighted Average Exercise Price , Outstanding (usd per share) | $ 9.98 | $ 14.87 | $ 19.20 | |
Weighted Average Exercise Price, Granted (usd per share) | 7.44 | 7.54 | 6.58 | |
Weighted Average Exercise Price, Exercised (usd per share) | 5.84 | 3.71 | 2.29 | |
Weighted Average Exercise Price, Canceled and forfeited (usd per share) | 24.94 | 30.68 | 23.70 | |
Ending Balance, Weighted Average Exercise Price ,Outstanding (usd per share) | 7.37 | $ 9.98 | $ 14.87 | $ 19.20 |
Weighted Average Exercise Price, Vested and expected to vest in the future (usd per share) | 7.39 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $ 7.48 | |||
Additional Disclosures [Abstract] | ||||
Weighted Average Remaining Contractual Term, Outstanding | 5 years 11 months 4 days | 6 years 6 months 18 days | 5 years 4 months 28 days | 4 years 7 months 17 days |
Weighted Average Remaining Contractual Term, Vested and expected to vest in the future | 5 years 9 months 7 days | |||
Weighted Average Remaining Contractual Term, Exercisable | 4 years 3 months 10 days | |||
Aggregate Intrinsic Value, Outstanding | $ 6,827 | $ 61,073 | $ 15,982 | $ 10,402 |
Aggregate Intrinsic Value, Vested and expected to vest in the future | 6,558 | |||
Aggregate Intrinsic Value, Exercisable | $ 5,722 |
STOCK-BASED AWARDS - Assumption
STOCK-BASED AWARDS - Assumptions Related to Valuation of Company's LTIP/Stock Options (Detail) | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility rate | 49.00% | 50.80% | 49.30% |
Risk-free interest rate | 1.20% | 1.20% | 0.60% |
Expected life | 4 years | 4 years | 4 years |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility rate | 56.50% | 53.20% | 51.30% |
Risk-free interest rate | 1.40% | 1.60% | 1.00% |
Expected life | 4 years | 5 years | 6 years |
STOCK-BASED AWARDS - Restricted
STOCK-BASED AWARDS - Restricted Stock Awards Activities (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Restricted Stock Units (RSUs) | |||
Restricted Stock Awards (In thousands) | |||
Outstanding Beginning Balance, Restricted Stock (shares) | 2,051 | 0 | 972 |
Granted, Restricted Stock (shares) | 65 | 2,274 | 296 |
Lapsed, Restricted Stock (shares) | (742) | (133) | (1,268) |
Canceled and forfeited, Restricted Stock (shares) | (125) | (90) | 0 |
Outstanding Ending Balance, Restricted Stock (shares) | 1,249 | 2,051 | 0 |
Restricted Stock | |||
Restricted Stock Awards (In thousands) | |||
Outstanding Beginning Balance, Restricted Stock (shares) | 536 | 937 | 1,443 |
Granted, Restricted Stock (shares) | 2,339 | 18 | 491 |
Lapsed, Restricted Stock (shares) | (456) | (417) | (967) |
Canceled and forfeited, Restricted Stock (shares) | (239) | (2) | (30) |
Outstanding Ending Balance, Restricted Stock (shares) | 2,180 | 536 | 937 |
Weighted Average Grant-Date Fair Value | |||
Outstanding Beginning Balance, Weighted Average Grant-Date (usd per share) | $ 11.02 | $ 9.09 | $ 7.83 |
Granted, Weighted Average Grant-Date (usd per share) | 8.74 | 7.11 | 6.98 |
Lapsed, Weighted Average Grant-Date (usd per share) | 6.82 | 6.54 | 6.23 |
Canceled and forfeited, Weighted Average Grant-Date (usd per share) | 8.79 | 6.09 | 6.08 |
Outstanding Ending Balance, Weighted Average Grant-Date (usd per share) | $ 8.68 | $ 11.02 | $ 9.09 |
STOCK-BASED AWARDS - Components
STOCK-BASED AWARDS - Components of Pre-Tax Stock-Based Compensation Expense and Related Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation | $ 25 | $ 23 | $ 22 |
Income tax benefits | (10) | (9) | (8) |
Stock-based compensation, net of tax | $ 15 | $ 14 | $ 14 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) $ in Millions | Sep. 11, 2014USD ($) | Nov. 29, 2014USD ($) | Feb. 27, 2016USD ($)EmployeesAgreementplan | Feb. 28, 2015USD ($) | Feb. 22, 2014USD ($) |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Contribution to pension plans | $ 45 | ||||
Contribution to other postretirement benefits plan | 13 | ||||
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 | 7.00% | ||||
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 | 3 | ||||
Company's accumulated postretirement benefit obligation would impact due to a 100 basis point increase in the trend rate | $ 3 | ||||
Discount rate | 3.80% | 4.65% | |||
Expected return on plan assets | 6.50% | 7.00% | |||
Total contribution expenses of defined contribution plans | $ 8 | $ 16 | $ 11 | ||
Contribution to pension plans | $ 43 | $ 39 | 39 | ||
Number of plans included in other multiemployer pension plans | plan | 11 | ||||
Company's number of employees (employees) | Employees | 38,000 | ||||
Number of collective bargaining agreements covering employees renegotiated (agreements) | Agreement | 9 | ||||
Number of employees renegotiated collective bargaining agreement (employees) | Employees | 1,600 | ||||
Number of employees expired without renegotiated collective bargaining agreement (employees) | Employees | 100 | ||||
Number of collective bargaining agreements covering employees expired without renegotiated (agreements) | Agreement | 3 | ||||
Number of collective bargaining agreements covering employees expired (agreements) | Agreement | 24 | ||||
Minimum | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Discount rate | 4.16% | ||||
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 | 3.95% | ||||
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) | Employees | 16,000 | ||||
Number of collective bargaining agreements covering employees renegotiated (agreements) | Agreement | 55 | ||||
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) | Employees | 8,400 | ||||
Pension Benefits | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Reduction in postretirement benefit obligation | $ 0 | $ 0 | |||
Benefits paid | 115 | 97 | |||
Contribution to pension plans | 27 | 165 | |||
Pension Benefits | Minimum | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Contribution to pension plans | 30 | ||||
Pension Benefits | Maximum | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Contribution to pension plans | 35 | ||||
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% | ||||
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 | 21 | 5 | |||
Defined benefit plan periodic cost increased | 6 | ||||
Benefits paid | 4 | 4 | |||
Contribution to pension plans | 15 | 4 | |||
Multiemployer Postretirement Benefit Plans Other than Pensions | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Contribution to multi-employer plans | $ 95 | $ 89 | $ 87 | ||
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 | 7.80% | ||||
Assumed healthcare cost ultimate trend rate | 4.50% | ||||
SUPERVALU Retirement Plan | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Employer discretionary contribution amount | $ 47 | $ 100 |
BENEFIT PLANS - Benefit Obligat
BENEFIT PLANS - Benefit Obligation, Fair Value of Plan Assets and Funded Status of Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Changes in Plan Assets | |||
Fair value of plan assets at beginning of year | $ 2,317 | ||
Employer contributions | 43 | $ 39 | $ 39 |
Fair value of plan assets at end of year | 2,119 | 2,317 | |
Pension Benefits | |||
Changes in Benefit Obligation | |||
Benefit obligation at beginning of year | 2,849 | 2,726 | |
Plan amendment | 0 | 0 | |
Service cost | 0 | 0 | 0 |
Interest cost | 106 | 121 | 121 |
Actuarial (gain) loss | (175) | 371 | |
Settlements paid | (1) | (272) | |
Benefits paid | (115) | (97) | |
Benefit obligation at end of year | 2,664 | 2,849 | 2,726 |
Changes in Plan Assets | |||
Fair value of plan assets at beginning of year | 2,317 | 2,261 | |
Actual return on plan assets | (109) | 260 | |
Employer contributions | 27 | 165 | |
Plan participants’ contributions | 0 | 0 | |
Settlements paid | (1) | (272) | |
Benefits paid | (115) | (97) | |
Other | 0 | 0 | |
Fair value of plan assets at end of year | 2,119 | 2,317 | 2,261 |
Unfunded status at end of year | (545) | (532) | |
Other Postretirement Benefits | |||
Changes in Benefit Obligation | |||
Benefit obligation at beginning of year | 82 | 81 | |
Plan amendment | (21) | (5) | |
Service cost | 0 | 1 | 2 |
Interest cost | 3 | 4 | 4 |
Actuarial (gain) loss | (6) | 5 | |
Settlements paid | 0 | 0 | |
Benefits paid | (4) | (4) | |
Benefit obligation at end of year | 54 | 82 | 81 |
Changes in Plan Assets | |||
Fair value of plan assets at beginning of year | 4 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 15 | 4 | |
Plan participants’ contributions | 2 | 3 | |
Settlements paid | 0 | 0 | |
Benefits paid | (6) | (7) | |
Other | 0 | 4 | |
Fair value of plan assets at end of year | 15 | 4 | $ 0 |
Unfunded status at end of year | $ (39) | $ (78) |
BENEFIT PLANS - Amounts Recogni
BENEFIT PLANS - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | $ (545) | $ (532) |
Other Postretirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | (39) | (78) |
Other Pension Plan, Postretirement or Supplemental Plans | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Accrued vacation, compensation and benefits | 5 | 8 |
Pension and other postretirement benefit obligations | 8 | 10 |
Unfunded status at end of year | 13 | 18 |
Accrued vacation, compensation and benefits | Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | (2) | (2) |
Accrued vacation, compensation and benefits | Other Postretirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | (4) | (6) |
Pension and other postretirement benefit obligations | Pension Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | (543) | (530) |
Pension and other postretirement benefit obligations | Other Postretirement Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Unfunded status at end of year | $ (35) | $ (72) |
BENEFIT PLANS - Amounts Recog78
BENEFIT PLANS - Amounts Recognized in Accumulated Other Comprehensive Losses for Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total recognized in Accumulated other comprehensive loss, net of tax | $ (422) | $ (423) |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service benefit | 0 | 0 |
Net actuarial loss | (693) | (696) |
Total recognized in Accumulated other comprehensive loss | (693) | (696) |
Total recognized in Accumulated other comprehensive loss, net of tax | (438) | (432) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Prior service benefit | 50 | 45 |
Net actuarial loss | (17) | (28) |
Total recognized in Accumulated other comprehensive loss | 33 | 17 |
Total recognized in Accumulated other comprehensive loss, net of tax | $ 20 | $ 9 |
BENEFIT PLANS - Net Periodic Be
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 ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Pension Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 106 | 121 | 121 |
Expected return on plan assets | (142) | (149) | (141) |
Amortization of prior service benefit | 0 | 0 | 0 |
Amortization of net actuarial loss | 79 | 68 | 101 |
Settlement | 0 | 64 | 0 |
Net periodic benefit cost (income) | 43 | 104 | 81 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | |||
Prior service benefit | 0 | 0 | 0 |
Amortization of prior service benefit | 0 | 0 | 0 |
Amortization of net actuarial loss | 76 | 195 | (259) |
Amortization of net actuarial loss | 79 | 66 | 101 |
Total expense (benefit) recognized in Other comprehensive income (loss) | (3) | 129 | (360) |
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive income (loss) | 40 | 233 | (279) |
Other Postretirement Benefits | |||
Net Periodic Benefit Cost | |||
Service cost | 0 | 1 | 2 |
Interest cost | 3 | 4 | 4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service benefit | (15) | (16) | (13) |
Amortization of net actuarial loss | 3 | 3 | 5 |
Settlement | 0 | 0 | 0 |
Net periodic benefit cost (income) | (9) | (8) | (2) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | |||
Prior service benefit | (21) | (5) | (11) |
Amortization of prior service benefit | 15 | 16 | 12 |
Amortization of net actuarial loss | (7) | 6 | (16) |
Amortization of net actuarial loss | 3 | 3 | 5 |
Total expense (benefit) recognized in Other comprehensive income (loss) | (16) | 14 | (20) |
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive income (loss) | $ (25) | $ 6 | $ (22) |
BENEFIT PLANS - Weighted Averag
BENEFIT PLANS - Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Benefit obligation assumptions: | |||
Discount rate | 3.80% | 4.65% | |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Net periodic benefit cost assumptions: | |||
Discount rate | 3.80% | 4.25% | |
Rate of compensation increase | 0.00% | 0.00% | 2.00% |
Expected return on plan assets | 6.50% | 7.00% | |
Minimum | |||
Benefit obligation assumptions: | |||
Discount rate | 4.16% | ||
Net periodic benefit cost assumptions: | |||
Discount rate | 4.65% | ||
Expected return on plan assets | 7.00% | ||
Maximum | |||
Benefit obligation assumptions: | |||
Discount rate | 3.95% | ||
Net periodic benefit cost assumptions: | |||
Discount rate | 4.10% | ||
Expected return on plan assets | 6.50% |
BENEFIT PLANS - Asset Allocatio
BENEFIT PLANS - Asset Allocation Targets and Actual Allocation of Pension Plan Assets (Detail) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 22, 2014 | |
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 | 22.20% | |
Plan assets allocation, Total | 22.40% | 24.80% |
International equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 11.10% | |
Plan assets allocation, Total | 11.10% | 11.30% |
Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 6.60% | |
Plan assets allocation, Total | 6.60% | 6.20% |
Common collective trusts—fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 47.50% | |
Plan assets allocation, Total | 47.30% | 48.10% |
Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation percentage of assets | 12.60% | |
Plan assets allocation, Total | 12.60% | 9.60% |
BENEFIT PLANS - Fair Value of A
BENEFIT PLANS - Fair Value of Assets of Company's Benefit Plans Held in Master Trust (Detail) - USD ($) $ in Millions | Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 |
Changes in Plan Assets | |||
Total plan assets at fair value | $ 2,119 | $ 2,317 | |
Common Stock | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 432 | 489 | |
Common collective trusts—fixed income | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 554 | 259 | |
Common collective trusts—equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 212 | 336 | |
Government securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 163 | 225 | |
Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 235 | 339 | |
Corporate bonds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 201 | 292 | |
Real estate partnerships | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 164 | 162 | |
Private equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 141 | 144 | |
Mortgage-backed securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 14 | 17 | |
Other | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 3 | 54 | |
Level 1 | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 537 | 685 | |
Level 1 | Common Stock | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 432 | 489 | |
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 | 49 | 95 | |
Level 1 | Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 56 | 53 | |
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 | 0 | 48 | |
Level 2 | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 1,277 | 1,326 | |
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 | 554 | 259 | |
Level 2 | Common collective trusts—equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 212 | 336 | |
Level 2 | Government securities | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 114 | 130 | |
Level 2 | Mutual funds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 179 | 286 | |
Level 2 | Corporate bonds | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 201 | 292 | |
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 | 14 | 17 | |
Level 2 | Other | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 3 | 6 | |
Level 3 | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 305 | 306 | |
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 | 164 | 162 | $ 149 |
Level 3 | Private equity | |||
Changes in Plan Assets | |||
Total plan assets at fair value | 141 | 144 | $ 125 |
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 Chan
BENEFIT PLANS - Summary of Changes in Fair Value for Level 3 Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 27, 2016 | Feb. 28, 2015 | |
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | $ 2,317 | |
Fair value of plan assets at end of year | 2,119 | $ 2,317 |
Real estate partnerships | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 162 | |
Fair value of plan assets at end of year | 164 | 162 |
Private equity | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 144 | |
Fair value of plan assets at end of year | 141 | 144 |
Level 3 | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 306 | |
Fair value of plan assets at end of year | 305 | 306 |
Level 3 | Real estate partnerships | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 162 | 149 |
Purchases | 7 | 10 |
Sales | (18) | (7) |
Unrealized gains | 9 | 10 |
Realized gains and losses | 4 | 0 |
Fair value of plan assets at end of year | 164 | 162 |
Level 3 | Private equity | ||
Changes in Plan Assets | ||
Fair value of plan assets at beginning of year | 144 | 125 |
Purchases | 25 | 36 |
Sales | (18) | (21) |
Unrealized gains | (10) | 4 |
Realized gains and losses | 0 | 0 |
Fair value of plan assets at end of year | $ 141 | $ 144 |
BENEFIT PLANS - Estimated Futur
BENEFIT PLANS - Estimated Future Benefit Payments to be Paid from Company's Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) $ in Millions | Feb. 27, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 154 |
2,017 | 135 |
2,018 | 140 |
2,019 | 148 |
2,020 | 158 |
Years 2021-2025 | 843 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 4 |
2,017 | 4 |
2,018 | 4 |
2,019 | 4 |
2,020 | 4 |
Years 2021-2025 | $ 20 |
BENEFIT PLANS - Schedule of Pen
BENEFIT PLANS - Schedule of Pension Funds Contributions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | $ 43 | $ 39 | $ 39 |
Minneapolis Food Distributing Industry Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 10 | 10 | 9 |
Central States, Southeast and Southwest Areas Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 8 | 8 | 8 |
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 9 | 7 | 8 |
UFCW Unions and Participating Employers Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 5 | 4 | 4 |
Western Conference of Teamsters Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | 4 | 4 | 3 |
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 | 2 | 1 | 2 |
All Other Multiemployer Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to pension plans | $ 3 | $ 3 | $ 3 |
BENEFIT PLANS - Schedule of P86
BENEFIT PLANS - Schedule of Pension Funds Contributions, Additional Information (Detail) | 12 Months Ended |
Feb. 27, 2016 | |
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 Col
BENEFIT PLANS - Schedule of Collective Bargaining Agreement Dates and Contributions to Each Plant (Detail) | 12 Months Ended |
Feb. 27, 2016Agreement | |
Minneapolis Food Distributing Industry Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 1 |
Expiration Date Regarding Collective Bargaining Agreement | May 31, 2018 |
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 | Jun. 14, 2017 |
Percentage of associates under collective bargaining agreement | 27.50% |
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 | Mar. 4, 2018 |
Percentage of associates under collective bargaining agreement | 100.00% |
Over 5% Contribution | Yes |
UFCW Unions and Participating Employers Pension Fund | |
Defined Benefit Plan Disclosure [Line Items] | |
Total Collective Bargaining Agreements | 2 |
Expiration Date Regarding Collective Bargaining Agreement | Jul. 8, 2017 |
Percentage of associates under collective bargaining agreement | 68.00% |
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 | Jul. 15, 2017 |
Percentage of associates under collective bargaining agreement | 44.80% |
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 | May 8, 2016 |
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 | 2 |
Expiration Date Regarding Collective Bargaining Agreement | Apr. 2, 2016 |
Percentage of associates under collective bargaining agreement | 76.50% |
Over 5% Contribution | Yes |
NET EARNINGS (LOSS) PER SHARE -
NET EARNINGS (LOSS) PER SHARE - Calculation of Basic and Diluted Net Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Earnings Per Share [Abstract] | |||
Net earnings from continuing operations | $ 178 | $ 127 | $ 13 |
Less net earnings attributable to noncontrolling interests | (8) | (7) | (7) |
Net earnings from continuing operations attributable to SUPERVALU INC. | 170 | 120 | 6 |
Income from discontinued operations, net of tax | 8 | 72 | 176 |
Net earnings attributable to SUPERVALU INC. | $ 178 | $ 192 | $ 182 |
Weighted average number of shares outstanding—basic (shares) | 263 | 260 | 255 |
Dilutive impact of stock-based awards (shares) | 5 | 4 | 3 |
Weighted average number of shares outstanding—diluted (shares) | 268 | 264 | 258 |
Basic net earnings per share attributable to SUPERVALU INC.: | |||
Continuing operations (usd per share) | $ 0.64 | $ 0.46 | $ 0.02 |
Discontinued operations (usd per share) | 0.03 | 0.28 | 0.69 |
Basic net earnings per share (usd per share) | 0.68 | 0.74 | 0.71 |
Diluted net earnings per share attributable to SUPERVALU INC.: | |||
Continuing operations (usd per share) | 0.63 | 0.45 | 0.02 |
Discontinued operations (usd per share) | 0.03 | 0.27 | 0.68 |
Diluted net earnings per share (usd per share) | $ 0.66 | $ 0.73 | $ 0.70 |
NET EARNINGS (LOSS) PER SHARE89
NET EARNINGS (LOSS) PER SHARE - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share | 10 | 10 | 18 |
COMPREHENSIVE INCOME (LOSS) A90
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Schedule of Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | $ (636) | $ (730) | $ (1,405) |
Divestiture of NAI pension plan | (48) | ||
Balances | (433) | (636) | (730) |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | (423) | (307) | (612) |
Other comprehensive income before reclassifications | 41 | 188 | (202) |
Pension settlement charge | 39 | ||
Amortization of amounts included in net periodic benefit cost | 42 | 33 | 55 |
Net Other comprehensive income (loss) | (1) | 116 | (257) |
Divestiture of NAI pension plan | 48 | ||
Balances | (422) | (423) | (307) |
Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | (423) | (307) | (612) |
Other comprehensive income before reclassifications | 37 | 188 | (202) |
Pension settlement charge | 39 | ||
Amortization of amounts included in net periodic benefit cost | 42 | 33 | 55 |
Net Other comprehensive income (loss) | (5) | 116 | (257) |
Divestiture of NAI pension plan | 48 | ||
Balances | (418) | (423) | (307) |
Interest Rate Swap | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balances | 0 | 0 | 0 |
Other comprehensive income before reclassifications | 4 | 0 | 0 |
Net Other comprehensive income (loss) | 4 | 0 | 0 |
Balances | $ (4) | $ 0 | $ 0 |
COMPREHENSIVE INCOME (LOSS) A91
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Additional Information (Details) $ in Millions | 4 Months Ended |
Jun. 15, 2013USD ($) | |
Equity [Abstract] | |
Divestiture of NAI pension plan accumulated other comprehensive loss | $ (48) |
COMPREHENSIVE INCOME (LOSS) A92
COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED COMPREHENSIVE LOSS - Amounts removed from AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Income tax provision | $ 85 | $ 58 | $ 5 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total reclassifications | 67 | 118 | 93 |
Income tax provision | (25) | (46) | (38) |
Total reclassifications, net of tax | 42 | 72 | 55 |
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 | 59 | 43 | 82 |
Cost of sales | 8 | 11 | 11 |
Reclassification out of Accumulated Other Comprehensive Income | Pension settlement charge | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Selling and administrative expenses | $ 0 | $ 64 | $ 0 |
COMMITMENTS, CONTINGENCIES AN93
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2014case | Feb. 27, 2016USD ($) | Feb. 28, 2015USD ($)Retailer | |
Guarantor Obligations [Line Items] | |||
Remaining terms for guarantees for other debt obligation minimum | 1 year | ||
Remaining terms for guarantees for other debt obligation maximum | 14 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 | $ 67 | ||
Guarantor obligation maximum exposure discounted | 43 | ||
Insurance Coverage Amount | 90 | $ 50 | |
Insurance Claims Deductible Amount | 3 | $ 1 | |
Other Costs | 2 | ||
Unusual or Infrequent Item, Insurance Proceeds | 2 | ||
Non-cancelable future purchase obligations | 291 | ||
Number of other retailers who have filed similar complaints in other jurisdictions | Retailer | 3 | ||
New Albertsons Inc | |||
Guarantor Obligations [Line Items] | |||
Company's guarantee for debt obligations on outstanding indenture in connection with stock purchase agreement | 167 | ||
Guarantor obligation maximum exposure discounted | $ 150 | ||
2014 Technology Intrusion | |||
Guarantor Obligations [Line Items] | |||
New claims filed (cases) | case | 4 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 12 Months Ended |
Feb. 27, 2016Segment | |
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 ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 17,529 | $ 17,917 | $ 17,252 |
% of total | 100.00% | 100.00% | 100.00% |
Wholesale | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 7,935 | $ 8,198 | $ 8,102 |
% of total | 45.30% | 45.80% | 47.00% |
Wholesale | Nonperishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 5,753 | $ 5,939 | $ 6,000 |
% of total | 33.00% | 33.00% | 35.00% |
Wholesale | Perishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 2,025 | $ 2,099 | $ 1,951 |
% of total | 12.00% | 12.00% | 11.00% |
Wholesale | Services to independent retail customers and other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 157 | $ 160 | $ 151 |
% of total | 1.00% | 1.00% | 1.00% |
Save-A-Lot | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 4,623 | $ 4,641 | $ 4,255 |
% of total | 26.40% | 25.80% | 24.60% |
Save-A-Lot | Nonperishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 2,956 | $ 2,989 | $ 2,823 |
% of total | 17.00% | 17.00% | 17.00% |
Save-A-Lot | Perishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 1,597 | $ 1,587 | $ 1,373 |
% of total | 9.00% | 9.00% | 8.00% |
Save-A-Lot | Services to licensees and other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 70 | $ 65 | $ 59 |
% of total | 0.00% | 0.00% | 0.00% |
Retail | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 4,769 | $ 4,884 | $ 4,655 |
% of total | 27.20% | 27.30% | 27.00% |
Retail | Nonperishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 2,607 | $ 2,677 | $ 2,600 |
% of total | 15.00% | 15.00% | 15.00% |
Retail | Perishable grocery products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 1,549 | $ 1,574 | $ 1,463 |
% of total | 9.00% | 9.00% | 9.00% |
Retail | Pharmacy products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 511 | $ 510 | $ 491 |
% of total | 3.00% | 3.00% | 3.00% |
Retail | Fuel | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 67 | $ 83 | $ 67 |
% of total | 0.00% | 0.00% | 0.00% |
Retail | Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 35 | $ 40 | $ 34 |
% of total | 0.00% | 0.00% | 0.00% |
Corporate | Transition services revenue | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 202 | $ 194 | $ 240 |
% of total | 1.00% | 1.00% | 1.00% |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Detail) $ in Millions | Mar. 21, 2013USD ($) | Feb. 22, 2014USD ($) | Feb. 27, 2016USD ($)renewal_period | Feb. 28, 2015USD ($) | Feb. 22, 2014USD ($) |
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 | renewal_period | 2 | ||||
Term of renewal option | 5 years | ||||
Net sales | $ 17,529 | $ 17,917 | $ 17,252 | ||
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 | $ 1,138 | |||
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 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Company's Operating Results and Certain Other Directly Attributable Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations, net of tax | $ 8 | $ 72 | $ 176 |
NAI Banners | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 0 | 0 | 1,235 |
(Loss) income before income taxes from discontinued operations | (1) | 6 | 121 |
Income tax benefit | (9) | (66) | (55) |
Income from discontinued operations, net of tax | $ 8 | $ 72 | $ 176 |
Valuation and Qualifying Acco98
Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - Allowance for Losses on Receivables - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 27, 2016 | Feb. 28, 2015 | Feb. 22, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $ 18 | $ 19 | $ 16 |
Additions | 6 | 6 | 16 |
Deductions | (11) | (7) | (13) |
Balance at End of Fiscal Year | $ 13 | $ 18 | $ 19 |