Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 09, 2017 | Oct. 13, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 9, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SVU | |
Entity Registrant Name | SUPERVALU INC | |
Entity Central Index Key | 95,521 | |
Current Fiscal Year End Date | --02-24 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,408,397 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,800 | $ 2,805 | $ 7,804 | $ 6,570 |
Cost of sales | 3,372 | 2,409 | 6,825 | 5,625 |
Gross profit | 428 | 396 | 979 | 945 |
Selling and administrative expenses | 435 | 338 | 919 | 798 |
Operating (loss) earnings | (7) | 58 | 60 | 147 |
Interest expense, net | 31 | 41 | 74 | 101 |
Equity in earnings of unconsolidated affiliates | 0 | (1) | (2) | (2) |
(Loss) earnings from continuing operations before income taxes | (38) | 18 | (12) | 48 |
Income tax (benefit) provision | (13) | 6 | 1 | 16 |
Net (loss) earnings including noncontrolling interests | $ (25) | $ 32 | $ (13) | $ 79 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) earnings including noncontrolling interests | $ (25) | $ 32 | $ (13) | $ 79 |
Other comprehensive income: | ||||
Recognition of pension and other postretirement benefit obligations(1) | (1) | 5 | 11 | |
Recognition of interest rate swap cash flow hedge(2) | 1 | 0 | 0 | |
Total other comprehensive income | 0 | 5 | 0 | 11 |
Comprehensive (loss) income including noncontrolling interests | (25) | 37 | (13) | 90 |
Comprehensive (loss) income attributable to SUPERVALU INC. | $ (25) | $ 36 | $ (14) | $ 88 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Recognition of pension and other postretirement benefit obligations(1), tax expense | $ 0 | $ (2) | $ 1 | $ (6) |
Recognition of interest rate swap cash flow hedge(2), tax expense | $ 1 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 09, 2017 | Feb. 25, 2017 |
Current assets | ||
Cash and cash equivalents | $ 209 | $ 332 |
Receivables, net | 598 | 386 |
Inventories, net | 1,057 | 764 |
Other current assets | 140 | 59 |
Total current assets | 2,004 | 1,541 |
Property, plant and equipment, net | 1,246 | 1,004 |
Goodwill | 740 | 710 |
Intangible assets, net | 86 | 39 |
Deferred tax assets | 157 | 165 |
Other assets | 162 | 121 |
Total assets | 4,395 | 3,580 |
Current liabilities | ||
Accounts payable | 1,252 | 881 |
Accrued vacation, compensation and benefits | 222 | 150 |
Current maturities of long-term debt and capital lease obligations | 34 | 26 |
Other current liabilities | 149 | 172 |
Total current liabilities | 1,657 | 1,229 |
Long-term debt | 1,601 | 1,263 |
Long-term capital lease obligations | 174 | 186 |
Pension and other postretirement benefit obligations | 396 | 322 |
Long-term tax liabilities | 64 | 63 |
Other long-term liabilities | 130 | 134 |
Commitments and Contingencies | ||
Stockholders’ equity(1) | ||
Common stock, $0.01 par value: 57 shares authorized; 38 and 38 shares issued, respectively | 0 | 0 |
Capital in excess of par value | 2,840 | 2,831 |
Treasury stock, at cost, 0 and 0 shares, respectively | (3) | (2) |
Accumulated other comprehensive loss | (278) | (278) |
Accumulated deficit | (2,189) | (2,175) |
Total SUPERVALU INC. stockholders’ equity | 370 | 376 |
Noncontrolling interests | 3 | 7 |
Total stockholders’ equity | 373 | 383 |
Total liabilities and stockholders’ equity | $ 4,395 | $ 3,580 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Sep. 09, 2017 | Feb. 25, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 57 | 57 |
Common stock, shares issued | 38 | 38 |
Treasury stock, shares | 0 | 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Parent | Noncontrolling Interests |
Beginning balance at Feb. 27, 2016 | $ (433) | $ 0 | $ 2,811 | $ (5) | $ (422) | $ (2,825) | $ (441) | $ 8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) earnings | 79 | 77 | 77 | 2 | ||||
Other comprehensive income, net of tax | 11 | 11 | 11 | |||||
Sales of common stock under option plans | 0 | (1) | 1 | 0 | 0 | |||
Stock-based compensation | 10 | 10 | 0 | 10 | ||||
Restricted stock vested | 0 | 4 | (4) | 0 | ||||
Restricted stock forfeitures | 0 | 3 | (3) | 0 | ||||
Distributions to noncontrolling interests | (5) | (5) | ||||||
Shares traded for taxes and other | (4) | (3) | (2) | (5) | 1 | |||
Ending balance at Sep. 10, 2016 | (342) | 0 | 2,816 | (5) | (411) | (2,748) | (348) | 6 |
Beginning balance at Feb. 25, 2017 | 383 | 0 | 2,831 | (2) | (278) | (2,175) | 376 | 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) earnings | (13) | (14) | (14) | 1 | ||||
Other comprehensive income, net of tax | 0 | 0 | 0 | |||||
Stock-based compensation | 11 | 11 | 0 | 11 | ||||
Restricted stock vested | (1) | (1) | 0 | (1) | ||||
Restricted stock forfeitures | 0 | 1 | (1) | 0 | ||||
Distributions to noncontrolling interests | (3) | (3) | ||||||
Acquisition of noncontrolling interests | (4) | (2) | (2) | (2) | ||||
Shares traded for taxes and other | 0 | 0 | 0 | 0 | 0 | |||
Ending balance at Sep. 09, 2017 | $ 373 | $ 0 | $ 2,840 | $ (3) | $ (278) | $ (2,189) | $ 370 | $ 3 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Other comprehensive income, tax | $ 0 | $ 6 |
Accumulated Other Comprehensive Loss | ||
Other comprehensive income, tax | $ 13 | $ 0 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Cash flows from operating activities | ||
Net (loss) earnings including noncontrolling interests | $ (13) | $ 79 |
Income from discontinued operations, net of tax | 0 | 49 |
Net (loss) earnings from continuing operations attributable to SUPERVALU INC. | (13) | 30 |
Adjustments to reconcile Net (loss) earnings from continuing operations to Net cash provided by operating activities – continuing operations: | ||
Asset impairment and other charges | 40 | 1 |
Loss on debt extinguishment | 5 | 7 |
Net gain on sale of assets and exits of surplus leases | (2) | 0 |
Depreciation and amortization | 112 | 111 |
LIFO charge | 3 | 2 |
Deferred income taxes | 6 | 21 |
Stock-based compensation | 11 | 8 |
Net pension and other postretirement benefit income | (29) | (13) |
Contributions to pension and other postretirement benefit plans | (1) | (2) |
Other adjustments | 7 | 8 |
Changes in operating assets and liabilities, net of effects from business acquisitions | (23) | 35 |
Net cash provided by operating activities – continuing operations | 116 | 208 |
Net cash (used in) provided by operating activities – discontinued operations | (56) | 72 |
Net cash (used in) provided by operating activities | 60 | 280 |
Cash flows from investing activities | ||
Proceeds from sale of assets | 4 | 1 |
Purchases of property, plant and equipment | (117) | (67) |
Payments for business acquisitions | (105) | (3) |
Other | 2 | 0 |
Net cash used in investing activities – continuing operations | (216) | (69) |
Net cash provided by (used in) investing activities – discontinued operations | 3 | (46) |
Net cash used in investing activities | (213) | (115) |
Cash flows from financing activities | ||
Proceeds from revolving credit facility | 80 | 1,669 |
Payments on revolving credit facility | (80) | (1,707) |
Proceeds from issuance of debt | 875 | 0 |
Payments of debt and capital lease obligations | (825) | (115) |
Payments for shares traded for taxes | (3) | (2) |
Payments for debt financing costs | (9) | (5) |
Distributions to noncontrolling interests | (3) | (5) |
Other | (5) | 0 |
Net cash provided by (used in) financing activities | 30 | (165) |
Net (decrease) increase in cash and cash equivalents | (123) | 0 |
Cash and Cash Equivalents at beginning of period | 332 | 57 |
Cash and Cash Equivalents at the end of period | 209 | 57 |
Less cash and cash equivalents of discontinued operations at end of period | 0 | (17) |
Cash and cash equivalents of continuing operations at end of period | 209 | 40 |
Non-cash investing and financing activities were as follows: | ||
Purchases of property, plant and equipment included in Accounts payable | 21 | 21 |
Capital lease asset additions | 1 | 7 |
Interest and income taxes paid: | ||
Interest paid, net of amounts capitalized | 63 | 79 |
Income taxes paid, net | $ 48 | $ 6 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Sep. 09, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Statement of Registrant The accompanying Condensed Consolidated Financial Statements of SUPERVALU INC. (“Supervalu”, the “Company”, “we”, “us”, or “our”) for the second quarters ended September 9, 2017 and September 10, 2016 are unaudited and, in the opinion of management, contain all adjustments that are of a normal and recurring nature necessary to present fairly the financial condition, results of operations and cash flows for such periods. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes in Supervalu’s Annual Report on Form 10-K for the fiscal year ended February 25, 2017 . The results of operations for the second quarter ended September 9, 2017 are not necessarily indicative of the results expected for the full year. Accounting Policies The summary of significant accounting policies is included in the Notes to Consolidated Financial Statements set forth in Supervalu’s Annual Report on Form 10-K for the fiscal year ended February 25, 2017 . 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 the second quarters of fiscal 2018 and 2017 relate to the 12 week fiscal quarters ended September 9, 2017 and September 10, 2016 , respectively. References to fiscal 2018 and 2017 year-to-date relate to the 28 week fiscal periods ended September 9, 2017 and September 10, 2016 , respectively. Use of Estimates The preparation of Supervalu’s Condensed 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 during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Supervalu considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Supervalu’s banking arrangements allow Supervalu to fund outstanding checks when presented to the financial institution for payment. Supervalu funds all intraday bank balance overdrafts during the same business day. Checks outstanding in excess of bank balances create net book overdrafts, which are recorded in Accounts payable in the Condensed Consolidated Balance Sheets and are reflected as an operating activity in the Condensed Consolidated Statements of Cash Flows. As of September 9, 2017 and February 25, 2017 , Supervalu had net book overdrafts of $166 and $91 , respectively. Inventories, Net Inventories are valued at the lower of cost or market. Substantially all of Supervalu’s inventories consist of finished goods and a substantial portion of Supervalu’s inventories have a last-in, first-out (“LIFO”) reserve applied. Interim LIFO calculations are based on Supervalu’s estimates of expected year-end inventory levels and costs, as the actual valuation of inventory under the LIFO method is computed at the end of each year based on the inventory levels and costs at that time. If the first-in, first-out method had been used, Inventories, net would have been higher by approximately $218 at September 9, 2017 and $216 at February 25, 2017 . Supervalu recorded a LIFO charge of $1 and $1 for the second quarters ended September 9, 2017 and September 10, 2016 , respectively. Supervalu recorded a LIFO charge of $3 and $2 for fiscal 2018 and 2017 year-to-date, respectively. Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance under Accounting Standards Update ("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. Supervalu adopted this guidance in the first quarter of fiscal 2018, which resulted in $5 of additional income tax expense that would have been recorded as an adjustment to Additional paid-in-capital under previous authoritative guidance. The adoption resulted in the presentation of payments for shares traded for taxes within financing activities, which resulted in the retrospective revision of the Condensed Consolidated Statements of Cash Flows. In addition, estimated forfeitures continued to be recorded as stock-based compensation expense. Recently Issued Accounting Standards In March 2017, the FASB issued authoritative guidance under ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes how benefit plan costs for defined benefit pension and other postretirement benefit plans are presented in the statement of operations. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2019. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. Supervalu is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. In August 2016, the FASB issued authoritative guidance under ASU 2016-15, Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies how certain cash receipts and payments should be presented in the statement of cash flows. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2019. Supervalu is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. In June 2016, the FASB issued authoritative guidance under ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2021. Supervalu 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, Supervalu 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 (deficit). ASU 2016-02 requires Supervalu to capitalize most current operating lease obligations as right-of-use assets with a corresponding liability based on the present value of future operating leases. 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. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2020. Supervalu is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. For a quantification of Supervalu’s off-balance sheet operating leases subject to capitalization under ASU 2016-02, other than those reserved for as a closed property and certain agreements that may be deemed leases under the new authoritative guidance, refer to total operating lease obligations within Note 9—Leases in the Notes to Consolidated Financial Statements included in Part II, Item 8 of Supervalu's Annual Report on Form 10-K for the fiscal year ended February 25, 2017 . 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. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2019. Supervalu is currently evaluating the potential impact of adoption of this standard 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 guidance will be adopted by Supervalu 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); ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Adoption is allowed by either the full retrospective or modified retrospective approach. Supervalu is currently evaluating which of the alternative approaches it will apply and the potential impact of adoption of the revised revenue standards on its consolidated financial statements. Supervalu believes that there will be few, if any, substantial changes to its Retail segment. Arrangements where Supervalu has determined it was a principal versus an agent are expected to remain relatively unchanged. Distribution contracts within Wholesale contain certain immaterial promises for goods or services that Supervalu believes will be immaterial in the context of the contracts. Supervalu expects to complete its evaluation in fiscal 2018. Upon conclusion of the revised revenue assessment, Supervalu will determine whether to adopt the guidance under the full retrospective or modified retrospective approach. |
Business Acquisitions Business
Business Acquisitions Business Acquisitions | 6 Months Ended |
Sep. 09, 2017 | |
Business Combinations [Abstract] | |
Business Acquisition | BUSINESS ACQUISITIONS Unified On June 23, 2017, Supervalu completed the acquisition of Unified Grocers, Inc. (“Unified”) pursuant to the terms of an Agreement and Plan of Merger dated April 10, 2017 (the “Merger Agreement”) by and among Supervalu, West Acquisition Corporation, a then wholly owned subsidiary of Supervalu (“Merger Sub”), and Unified. Supervalu acquired Unified in a transaction valued at $390 , comprised of $114 in cash for 100 percent of the outstanding stock of Unified plus the assumption and payoff of Unified’s net debt of $276 at closing. The acquisition brings together two complementary companies that uniquely positions Supervalu to efficiently serve a broad range of independent customers and offer a diverse array of value added services, helping customers compete in an increasingly demanding grocery environment. In addition, the acquisition provides opportunities across multiple geographies and is an important part of Supervalu’s ongoing growth effort, including the expansion of Unified’s Market Centre division, a growing business providing specialty and ethnic products to independent customers. At the closing of the transaction, Merger Sub merged with and into Unified. As a result of the transaction, Unified became a wholly owned subsidiary of Supervalu and the shares of Unified were converted into the right to receive from Supervalu $114 in cash in the aggregate. Supervalu incurred merger and integration costs of $27 in fiscal 2018 year-to-date related to the Unified acquisition. The table immediately below summarizes the preliminary fair values assigned to the Unified net assets acquired. As of September 9, 2017, the fair value allocation for the acquisition is preliminary and will be finalized when the valuation is completed. Differences between the preliminary and final allocation could be material. Supervalu’s estimates and assumptions are subject to change during the measurement period (up to one year from the acquisition date), as Supervalu finalizes the valuations of certain tangible and intangible assets acquired and liabilities assumed in connection with the acquisition. The primary areas of the purchase price allocation that are not yet finalized relate to real and personal property, identifiable intangible assets, goodwill, income taxes and deferred taxes. Amounts as of the Acquisition Date Cash and cash equivalents $ 8 Accounts receivable 176 Inventories 237 Other current assets 31 Property, plant and equipment 285 Goodwill 30 Intangible assets 54 Deferred tax assets (19 ) Other assets 65 Accounts payable (255 ) Other current liabilities (89 ) Long-term debt and capital lease obligations (270 ) Pension and other postretirement benefit obligations (103 ) Other liabilities assumed (36 ) Total fair value of net assets acquired 114 Less cash acquired (9 ) Total consideration for acquisition, less cash acquired $ 105 Recognized goodwill is primarily attributable to expected synergies from combining operations, as well as intangible assets that do not qualify for separate recognition. Recognized intangible assets primarily reflect customer relationship intangible assets, which have a weighted average useful life of 15 years . The following unaudited pro forma information presents the combined results of Supervalu and Unified as if Supervalu had completed the acquisition of Unified on February 27, 2016. As required by GAAP, these unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined companies would have been had the acquisition occurred at the beginning of the period being presented, nor are they indicative of future results of operations. Second Quarter Ended Year-To-Date Ended September 9, September 10, (1) September 9, 8 weeks) September 10, (1) Net sales $ 3,872 $ 3,680 $ 9,028 $ 8,603 Net (loss) earnings from continuing operations attributable to SUPERVALU INC. $ (21 ) $ 8 $ (12 ) $ 24 Basic net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. $ (0.54 ) $ 0.21 $ (0.30 ) $ 0.63 Diluted net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. $ (0.54 ) $ 0.21 $ (0.30 ) $ 0.62 (1) The unaudited pro forma financial information of Unified included in these results reflects the 12 and 28 week fiscal periods ended August 27, 2016. Cub Franchised Stores In the second quarter of fiscal 2018, Supervalu paid $5 to acquire the minority equity interests of three limited liability companies that own and operate three Cub stores. Supervalu now owns 100 percent of these companies. The results from these companies will continue to be consolidated in Supervalu's financial statements. |
Reserves for Closed Properties
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges | 6 Months Ended |
Sep. 09, 2017 | |
Property, Plant and Equipment [Abstract] | |
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges | RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES Reserves for Closed Properties Changes in Supervalu’s reserves for closed properties consisted of the following: September 9, 8 weeks) Reserves for closed properties at beginning of the fiscal year $ 22 Additions 2 Payments (4 ) Adjustments (1 ) Reserves for closed properties at the end of period $ 19 Property, Plant and Equipment-Related Impairment Charges The following table presents impairment charges related to property, plant and equipment measured at fair value on a non-recurring basis: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Property, plant and equipment: Carrying value $ 98 $ 1 $ 98 $ 3 Fair value measured using Level 3 inputs 56 — 56 2 Impairment charge $ 42 $ 1 $ 42 $ 1 Supervalu monitors its long-lived assets for recoverability for indicators of impairment on an on-going basis 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. In the second quarter of fiscal 2018, two Retail asset groups, which consisted of two separate Retail banners, indicated a decline in their results of operations and the cash flow projections of these two Retail asset groups declined compared to prior projections. As a result, the two Retail asset groups were selected for an undiscounted cash flow review. One of these Retail asset groups failed the long-lived asset recoverability test. Accordingly, a fair value assessment using the income approach was performed over that Retail group's long-lived assets. The carrying value of the assets within this asset group were determined to exceed their estimated fair value. The carrying values of these assets were reduced until such long-lived assets were recorded at the lower of their carrying value or fair value, resulting in an impairment charge of $42 , which was recorded within Selling and administrative expenses in the Retail segment. The remaining carrying value of the long-lived assets in this asset group is $56 . Significant judgments are required in measuring the fair value of asset groups, including the fair value of business, the fair value of the underlying individual assets, and cash flow projections of revenues and earnings. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Sep. 09, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS Changes in Supervalu’s Goodwill and Intangible assets, net consisted of the following: February 25, Additions Impairments Other net adjustments September 9, Wholesale goodwill $ 710 $ 30 $ — $ — $ 740 Intangible assets: Customer lists, favorable operating leases, prescription files and other $ 141 $ 54 $ — $ — $ 195 Trademarks and tradenames – indefinite useful lives 5 — — — 5 Total intangible assets 146 54 — — 200 Accumulated amortization (107 ) (7 ) — — (114 ) Total intangible assets, net $ 39 $ 86 Amortization of intangible assets with definite useful lives was $7 and $6 for fiscal 2018 and 2017 year-to-date, respectively. Future amortization expense is anticipated to be approximately $4 , and $9 , $8 , $8 , $6 and $6 for the remainder of fiscal 2018, and for fiscal 2019, 2020, 2021, 2022 and 2023, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 09, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring fair value measurements were as follows: September 9, 2017 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 4 $ — $ — $ 4 Total $ 4 $ — $ — $ 4 Liabilities: Interest rate swap derivative Other current liabilities $ — $ 2 $ — $ 2 Interest rate swap derivative Other long-term liabilities — 1 — 1 Total $ — $ 3 $ — $ 3 February 25, 2017 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 5 $ — $ — $ 5 Total $ 5 $ — $ — $ 5 Liabilities: Interest rate swap derivative Other current liabilities $ — $ 2 $ — $ 2 Interest rate swap derivative Other long-term liabilities — 1 — 1 Total $ — $ 3 $ — $ 3 Diesel Fuel Derivatives Fuel derivative gains (losses) are included within Cost of sales in the Condensed Consolidated Statements of Operations and were $0 and $0 for the second quarters of fiscal 2018 and 2017 , respectively, and $0 and $0 for fiscal 2018 and 2017 year-to-date, respectively. Interest Rate Swap Derivatives Interest rate swap derivative reclassifications from Accumulated other comprehensive loss into earnings are recorded within Interest expense, net in the Condensed Consolidated Statements of Operations and were $1 and $0 in the second quarters of fiscal 2018 and 2017 , respectively, and $2 and $1 for fiscal 2018 and 2017 year-to-date, respectively. No amounts were reclassified related to hedging ineffectiveness. As of September 9, 2017 , a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swap by approximately $4 and a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swap by approximately $2 . Non-recurring Fair Value Measurements Acquired net assets related to Unified discussed in Note 2—Business Acquisitions and impairment charges related to goodwill and intangible assets discussed in Note 4—Goodwill and Intangible Assets and to property, plant and equipment discussed in Note 3—Reserves for Closed Properties and Property, Plant and Equipment-related Impairment Charges were measured at fair value using Level 3 inputs. Fair Value Estimates For certain of Supervalu’s financial instruments, including cash and cash equivalents, receivables, accounts payable, accrued salaries and other current assets and liabilities, the fair values approximate carrying amounts due to their short maturities. The estimated fair value of notes receivable was greater than their carrying amount by approximately $0 and $0 as of September 9, 2017 and February 25, 2017 , respectively. Notes receivable are valued based on a discounted cash flow approach applying a market rate for similar instruments that is determined using Level 3 inputs. The estimated fair value of Supervalu’s long-term debt was lower than the carrying amount, excluding debt financing costs, by approximately $57 as of September 9, 2017 and equal to the carrying amount, excluding debt financing costs, as of February 25, 2017 . The estimated fair value was based on market quotes, where available, or market values for similar instruments, using Level 2 and Level 3 inputs. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Sep. 09, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Supervalu’s long-term debt consisted of the following: September 9, February 25, 4.74% Secured Term Loan Facility due June 2024 $ 838 $ — 5.54% Secured Term Loan Facility due March 2019 — 524 6.75% Senior Notes due June 2021 400 400 7.75% Senior Notes due November 2022 350 350 4.50% Revolving ABL Credit Facility due February 2021 — — Other 37 — Debt financing costs, net (14 ) (10 ) Original issue discount on debt (3 ) (1 ) Total debt 1,608 1,263 Less current maturities of long-term debt (7 ) — Long-term debt $ 1,601 $ 1,263 Supervalu’s credit facilities and certain long-term debt agreements have restrictive covenants and cross-default provisions, which generally provide, subject to Supervalu’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. Supervalu was in compliance with all such covenants and provisions for all periods presented. Senior Secured Credit Agreements During the first quarter of fiscal 2018, Supervalu entered into a fourth amendment agreement (the “Fourth Term Loan Amendment”) amending and restating its Secured Term Loan Facility due March 2019 (the “Secured Term Loan Facility due March 2019” and as amended and restated, the “Secured Term Loan Facility”). The Secured Term Loan Facility provides for (i) an initial term loan facility of $525 , which was drawn down in full to refinance outstanding loans under the Secured Term Loan Facility due March 2019, and (ii) a delayed draw term loan facility of $315 , which was drawn down in full in the second quarter of fiscal 2018 for the purpose of consummating the acquisition of Unified. Borrowings under the Secured Term Loan Facility bear interest at the rate of LIBOR plus 3.50 percent with a floor on LIBOR set at 1.00 percent , compared to the rate under the Secured Term Loan Facility due March 2019 of LIBOR plus 4.50 percent with a floor of 1.00 percent . The Secured Term Loan Facility will mature on June 8, 2024. However, if Supervalu has not repaid its 6.75 percent Senior Notes due June 2021 or its 7.75 percent Senior Notes due November 2022 by the date that is 91 days prior to the respective maturity date of such notes, the Secured Term Loan Facility will mature on the date that is 91 days prior to the maturity date of such notes. During the first quarter of fiscal 2018, in connection with the completion of the Fourth Term Loan Amendment, Supervalu paid debt financing costs of approximately $8 , of which $5 was capitalized and $3 was expensed, and paid original issue discount of approximately $2 , all of which was capitalized, and recognized a non-cash charge of approximately $2 for the write-off of existing unamortized debt financing costs. On June 23, 2017, in connection with the closing of the acquisition of Unified, Supervalu executed the delayed draw under the Secured Term Loan Facility and increased the outstanding borrowings under the facility to $840 . The Secured Term Loan Facility is secured by substantially all of Supervalu’s real estate, equipment and certain other assets. The Secured Term Loan Facility is guaranteed by Supervalu’s material subsidiaries (together with Supervalu, the “Term Loan Parties”). To secure their obligations under the Secured Term Loan Facility, the Term Loan Parties have 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 September 9, 2017 and February 25, 2017, there was $707 and $520 , 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 Condensed 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 Supervalu’s $1,000 asset-based revolving credit facility (the “Revolving ABL Credit Facility”). As of September 9, 2017 and February 25, 2017 , $8 and $0 of the Secured Term Loan Facility was classified as current, respectively, excluding debt financing costs and original issue discount. 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 and, in certain circumstances, a prepayment fee. Pursuant to the Secured Term Loan Facility, Supervalu must, subject to certain exceptions and 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. Supervalu 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 Supervalu’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 Supervalu’s Total Secured Leverage Ratio (as defined in the facility) as of the last day of fiscal 2017, no prepayment from Excess Cash Flow in fiscal 2017 was required in the second quarter of fiscal 2018. The potential amount of prepayment from Excess Cash Flow that may be required for fiscal 2018 is not reasonably estimable as of September 9, 2017 . 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. Supervalu 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. Certain of Supervalu’s material subsidiaries are co-borrowers under the Revolving ABL Credit Facility, and this facility is guaranteed by the rest of Supervalu’s material subsidiaries (Supervalu 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 Supervalu’s outstanding debt instruments and leases. As of September 9, 2017 and February 25, 2017 , there were no outstanding borrowings under the Revolving ABL Credit Facility. The assets included in the Condensed Consolidated Balance Sheets securing the outstanding borrowings under the Revolving ABL Credit Facility on a first-priority basis, and the unused available credit and fees under the Revolving ABL Credit Facility, were as follows: Assets securing the Revolving ABL Credit Facility (1) : September 9, 2017 February 25, 2017 Certain inventory assets included in Inventories, net $ 1,249 $ 949 Certain receivables included in Receivables, net 416 228 Certain amounts included in Cash and cash equivalents 20 19 (1) The Revolving ABL Credit Facility is also secured by all of Supervalu's pharmacy scripts included in Intangible assets, net. Unused available credit and fees under the Revolving ABL Credit Facility: September 9, 2017 February 25, 2017 Outstanding letters of credit $ 51 $ 53 Letters of credit fees 1.375 % 1.375 % Unused available credit 790 748 Unused facility fees 0.25 % 0.25 % Both the Secured Term Loan Facility and the Revolving ABL Credit Facility limit Supervalu’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 Supervalu, including certain debt prepayments and Permitted Investments (as defined in the Secured Term Loan Facility). As of September 9, 2017 , the aggregate cap on Restricted Payments was approximately $502 . 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 Supervalu. 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 The $400 of 6.75 percent Senior Notes due June 2021 and the $350 of 7.75 percent Senior Notes due November 2022 contain operating covenants, including limitations on liens and on sale and leaseback transactions. Supervalu was in compliance with all such covenants and provisions for all periods presented. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Sep. 09, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | BENEFIT PLANS Net periodic benefit income and contributions for defined benefit pension and other postretirement benefit plans consisted of the following: Second Quarter Ended Pension Benefits Other Postretirement Benefits September 9, September 10, September 9, September 10, Interest cost $ 20 $ 20 $ 1 $ — Expected return on assets (33 ) (33 ) — — Amortization of prior service benefit 3 — (3 ) (3 ) Amortization of net actuarial loss — 10 — — Net periodic benefit income $ (10 ) $ (3 ) $ (2 ) $ (3 ) Contributions to benefit plans $ — $ (1 ) $ — $ — Year-To-Date Ended Pension Benefits Other Postretirement Benefits September 9, September 10, September 9, September 10, Interest cost $ 44 $ 46 $ 1 $ 1 Expected return on assets (73 ) (77 ) — — Amortization of prior service benefit 6 — (8 ) (8 ) Amortization of net actuarial loss — 24 1 1 Net periodic benefit income $ (23 ) $ (7 ) $ (6 ) $ (6 ) Contributions to benefit plans $ (1 ) $ (2 ) $ — $ — Multiemployer Pension Plans During fiscal 2018 and 2017 year-to-date, Supervalu contributed $21 and $21 , respectively, to various multiemployer pension plans, primarily defined benefit pension plans, under collective bargaining agreements. As part of the acquisition of Unified, Supervalu assumed the off-balance sheet multiemployer pension plan obligations of Unified. Pension Contributions No minimum contributions are required to Supervalu's pension plans in fiscal 2018 in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Supervalu anticipates fiscal 2018 discretionary pension contributions and required minimum other postretirement benefit plan contributions will be approximately $5 to $10 . |
Net (Loss) Earnings Per Share
Net (Loss) Earnings Per Share | 6 Months Ended |
Sep. 09, 2017 | |
Earnings Per Share [Abstract] | |
Net (Loss) Earnings Per Share | NET (LOSS) EARNINGS PER SHARE Basic net (loss) earnings per share is calculated using net (loss) earnings attributable to SUPERVALU INC. divided by the weighted average number of shares outstanding during the period. Diluted net (loss) earnings per share is similar to basic net (loss) earnings per share except that the weighted average number of shares outstanding is computed after giving effect to the dilutive impacts of stock-based awards, if any. The following table reflects the calculation of basic and diluted net (loss) earnings per share: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Net (loss) earnings from continuing operations $ (25 ) $ 12 $ (13 ) $ 32 Less net earnings attributable to noncontrolling interests — (1 ) (1 ) (2 ) Net (loss) earnings from continuing operations attributable to SUPERVALU INC. (25 ) 11 (14 ) 30 Income from discontinued operations, net of tax — 20 — 47 Net (loss) earnings attributable to SUPERVALU INC. $ (25 ) $ 31 $ (14 ) $ 77 Weighted average number of shares outstanding—basic 38 38 38 38 Dilutive impact of stock-based awards — — — — Weighted average number of shares outstanding—diluted 38 38 38 38 Basic net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.65 ) $ 0.30 $ (0.35 ) $ 0.79 Discontinued operations $ — $ 0.52 $ (0.01 ) $ 1.24 Basic net (loss) earnings per share $ (0.65 ) $ 0.82 $ (0.36 ) $ 2.04 Diluted net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.65 ) $ 0.29 $ (0.35 ) $ 0.79 Discontinued operations $ — $ 0.52 $ (0.01 ) $ 1.23 Diluted net (loss) earnings per share $ (0.65 ) $ 0.81 $ (0.36 ) $ 2.02 Stock-based awards of 2 and 2 that were outstanding during the second quarters of fiscal 2018 and 2017 , respectively, were excluded from the calculation of diluted net earnings per share from continuing operations for the periods because their inclusion would be antidilutive. Stock-based awards of 2 and 2 that were outstanding during fiscal 2018 and 2017 year-to-date, respectively, were excluded from the calculation of diluted net earnings per share from continuing operations for the periods because their inclusion would be antidilutive. Reverse Stock Split At the close of business on August 1, 2017, a 1-for-7 reverse split of Supervalu’s common stock became effective and the number of authorized shares of Supervalu’s common stock decreased to approximately 57 , while the number of issued and outstanding shares was reduced from approximately 269 to 38 . Supervalu's common stock began trading on a split-adjusted basis when the market opened on August 2, 2017. No fractional shares were issued from the reverse stock split. In lieu of any fractional shares, any holder of less than one share of common stock was entitled to receive cash for such holder’s fractional share. The reverse stock split did not impact the authorized number of shares of preferred stock of Supervalu, none of which were outstanding. The reverse stock split reduced the number of shares of common stock available for issuance under Supervalu’s equity compensation plans in proportion to the reverse stock split ratio. The reverse stock split caused a reduction in the number of shares of common stock issuable upon exercise or vesting of equity awards in proportion to the reverse stock split ratio and caused a proportionate increase in any exercise price of such awards. Supervalu’s common stock continues to trade on the NYSE under the symbol “SVU.” |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Loss | 6 Months Ended |
Sep. 09, 2017 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Loss | COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS Supervalu reports comprehensive income in the Condensed Consolidated Statements of Comprehensive Income. Comprehensive income includes all changes in stockholders’ equity during the reporting period, other than those resulting from investments by and distributions to stockholders. Supervalu’s comprehensive income is calculated as net (loss) earnings including noncontrolling interests, plus or minus adjustments for pension and other postretirement benefit obligations, net of tax, and changes in the fair value of cash flow hedges, 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 unrealized losses on cash flow hedges, net of tax. Changes in Accumulated other comprehensive loss by component for fiscal 2018 year-to-date are as follows: Benefit Plans Interest Rate Swap Total Accumulated other comprehensive loss at beginning of the fiscal year, net of tax $ (276 ) $ (2 ) $ (278 ) Other comprehensive income (loss) before reclassifications (1) — — — Amortization of amounts included in net periodic benefit income (2) (1 ) — (1 ) Amortization of cash flow hedge (3) — 1 1 Net current-period Other comprehensive income (loss) (4) (1 ) 1 — Accumulated other comprehensive loss at the end of period, net of tax $ (277 ) $ (1 ) $ (278 ) (1) Amount is net of tax (benefit) expense of $0 , $0 and $0 , respectively. (2) Amount is net of tax (benefit) expense of $(1) , $0 and $(1) , respectively. (3) Amount is net of tax (benefit) expense of $0 , $1 and $1 , respectively. (4) Amount is net of tax (benefit) expense of $(1) , $1 and $0 , respectively. Changes in Accumulated other comprehensive loss by component for fiscal 2017 year-to-date are as follows: Benefit Plans Interest Rate Swap Total Accumulated other comprehensive loss at beginning of the fiscal year, net of tax $ (418 ) $ (4 ) $ (422 ) Other comprehensive loss before reclassifications (1) — (1 ) (1 ) Amortization of amounts included in net periodic benefit income (2) 11 — 11 Amortization of cash flow hedge (3) — 1 1 Net current-period Other comprehensive income (4) 11 — 11 Accumulated other comprehensive loss at the end of period, net of tax $ (407 ) $ (4 ) $ (411 ) (1) Amount is net of tax expense of $0 , $0 and $0 , respectively. (2) Amount is net of tax expense of $6 , $0 and $6 , respectively. (3) Amount is net of tax expense of $0 , $0 and $0 , respectively. (4) Amount is net of tax expense of $6 , $0 and $6 , respectively. Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Affected Line Item on Condensed Consolidated Statements of Operations Pension and postretirement benefit plan obligations: Amortization of amounts included in net periodic benefit income (1) $ (1 ) $ 7 $ (2 ) $ 16 Selling and administrative expenses Amortization of amounts included in net periodic benefit income (1) — — — 1 Cost of sales Total reclassifications (1 ) 7 (2 ) 17 Income tax (benefit) expense — (2 ) 1 (6 ) Income tax (benefit) provision Total reclassifications, net of tax $ (1 ) $ 5 $ (1 ) $ 11 Interest rate swap cash flow hedge: Reclassification of cash flow hedge $ 1 $ — $ 2 $ 1 Interest expense, net Income tax benefit — — (1 ) — Income tax (benefit) provision Total reclassifications, net of tax $ 1 $ — $ 1 $ 1 (1) Amortization of amounts included in net periodic benefit income include amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 7—Benefit Plans . As of September 9, 2017 , Supervalu expects to reclassify $2 out of Accumulated other comprehensive loss into Interest expense, net during the following twelve-month period. |
Stock-Based Awards
Stock-Based Awards | 6 Months Ended |
Sep. 09, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Awards | STOCK-BASED AWARDS Supervalu recognized pre-tax stock-based compensation expense (included primarily in Selling and administrative expenses in the Condensed Consolidated Statements of Operations) related to stock options, restricted stock units, restricted stock awards and performance share units (collectively referred to as “stock-based awards”) of $5 , $4 , $11 and $8 for the second quarters of fiscal 2018 and 2017 , and for fiscal 2018 and 2017 year-to-date, respectively. The following information on the stock-based awards gives effect to the reverse stock split. Stock Options In the first quarter of fiscal 2018 and 2017 , Supervalu granted 36 thousand and 114 thousand non-qualified stock options, respectively, to certain employees under Supervalu’s 2012 Stock Plan with weighted average grant date fair values of $13.92 per share and $18.68 per share, respectively. The stock options vest over a period of three years and were awarded as part of a broad-based employee incentive program designed to retain and motivate employees across Supervalu. Supervalu used the Black-Scholes option pricing model to estimate the fair value of the options at grant date based upon the following assumptions: Year-To-Date Ended September 9, September 10, Dividend yield — % — % Volatility rate 53.7 % 54.2 % Risk-free interest rate 1.8 % 1.3 % Expected life 5.0 years 5.0 years Restricted Stock and Restricted Stock Units In fiscal 2018 year-to-date, Supervalu granted 880 thousand restricted stock units (“RSUs”) to certain employees under the 2012 Stock Plan. The RSUs vest over a three -year period from the date of the grant and were granted at a fair value ranging from $25.06 to $29.19 per unit. In fiscal 2017 year-to-date, Supervalu granted 494 thousand RSUs to certain employees under the 2012 Stock Plan. The RSUs vest over a three -year period from the date of grant and were granted at a fair value ranging from $31.78 to $39.48 per unit. Performance Share Units In fiscal 2018 year-to-date, Supervalu granted 178 thousand performance share units (“PSUs”) to certain employees under the 2012 Stock Plan. The PSUs have a fiscal 2018-2020 performance period and settle in shares of Supervalu's common stock. In April 2016, Supervalu granted 180 thousand PSUs to certain employees under the 2012 Stock Plan. The PSUs have a fiscal 2017-2019 performance period and settle in shares of Supervalu’s common stock. Supervalu used the Monte Carlo method to estimate the fair value of the PSUs at grant date based upon the following assumptions: Year-To-Date Ended September 9, September 10, Dividend yield — % — % Volatility rate 44.3 % 41.3 % Risk-free interest rate 1.41 % 0.9 % Expected life 2.8 years 2.8 years |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 09, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Fiscal 2018 and 2017 year-to-date tax provision included $5 and $0 of discrete tax expense, respectively. The increase in the discrete tax expense in fiscal 2018 is primarily due to excess tax expense related to the adoption of ASU 2016-09. |
Segment Information
Segment Information | 6 Months Ended |
Sep. 09, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Summary operating results by reportable segment consisted of the following: Second Quarter Ended September 9, 2017 Year-To-Date Ended September 9, 2017 Wholesale Retail Corporate Total Wholesale Retail Corporate Total Net sales $ 2,738 $ 1,022 $ 40 $ 3,800 $ 5,294 $ 2,415 $ 95 $ 7,804 Cost of sales 2,620 752 — 3,372 5,053 1,772 — 6,825 Gross profit 118 270 40 428 241 643 95 979 Selling and administrative expenses 57 328 50 435 118 705 96 919 Operating earnings (loss) $ 61 $ (58 ) $ (10 ) $ (7 ) $ 123 $ (62 ) $ (1 ) $ 60 Interest expense, net 31 74 Equity in earnings of unconsolidated affiliates — (2 ) (Loss) from continuing operations before income taxes $ (38 ) $ (12 ) Second Quarter Ended September 10, 2016 Year-To-Date Ended September 10, 2016 Wholesale Retail Corporate Total Wholesale Retail Corporate Total Net sales $ 1,731 $ 1,033 $ 41 $ 2,805 $ 4,006 $ 2,464 $ 100 $ 6,570 Cost of sales 1,652 758 (1 ) 2,409 3,818 1,808 (1 ) 5,625 Gross profit 79 275 42 396 188 656 101 945 Selling and administrative expenses 21 287 30 338 66 660 72 798 Operating earnings (loss) $ 58 $ (12 ) $ 12 $ 58 $ 122 $ (4 ) $ 29 $ 147 Interest expense, net 41 101 Equity in earnings of unconsolidated affiliates (1 ) (2 ) Earnings from continuing operations before income taxes $ 18 $ 48 |
Commitments, Contingencies and
Commitments, Contingencies and Off-Balance Sheet Arrangements | 6 Months Ended |
Sep. 09, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Off-Balance Sheet Arrangements | COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS Guarantees and Contingent Liabilities Supervalu has outstanding guarantees related to certain leases, fixture financing loans and other debt obligations of various retailers as of September 9, 2017 . These guarantees were generally made to support the business growth of Wholesale customers. The guarantees are generally for the entire terms of the leases, fixture financing loans or other debt obligations with remaining terms that range from less than one year to fourteen years, with a weighted average remaining term of approximately eight years. For each guarantee issued, if the Wholesale customer or other third party defaults on a payment, Supervalu would be required to make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees of the Wholesale customer. Supervalu reviews performance risk related to its guarantee obligations based on internal measures of credit performance. As of September 9, 2017 , the maximum amount of undiscounted payments Supervalu would be required to make in the event of default of all guarantees was $66 ( $50 on a discounted basis). Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, Supervalu 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 Condensed Consolidated Balance Sheets for these contingent obligations under Supervalu’s guarantee arrangements as the fair value has been determined to be de minimis. Supervalu is contingently liable for leases that have been assigned to various third parties in connection with facility closings and dispositions. Supervalu 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 Supervalu’s lease assignments among third parties, and various other remedies available, Supervalu believes the likelihood that it will be required to assume a material amount of these obligations is remote. No amount has been recorded in the Consolidated Balance Sheets for these contingent obligations under Supervalu’s guarantee arrangements as the fair value has been determined to be de minimis. Supervalu 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 Supervalu’s commercial contracts, service agreements, 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 Supervalu and agreements to indemnify officers, directors and employees in the performance of their work. While Supervalu’s aggregate indemnification obligations could result in a material liability, Supervalu is not aware of any matters that are expected to result in a material liability. No amount has been recorded in the Condensed Consolidated Balance Sheets for these contingent obligations as the fair value has been determined to be de minimis. Following the sale of New Albertson’s, Inc. (“NAI”) on March 21, 2013, Supervalu remains contingently liable with respect to certain self-insurance commitments and other guarantees as a result of parental guarantees issued by Supervalu with respect to the obligations of NAI that were incurred while NAI was a subsidiary of Supervalu. As of September 9, 2017 , using actuarial estimates as of December 31, 2016, the total undiscounted amount of all such guarantees was estimated at $88 ( $79 on a discounted basis). Based on the expected settlement of the self-insurance claims that underlie Supervalu’s commitments, Supervalu 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 Supervalu remains contingently liable, Supervalu 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 Condensed Consolidated Balance Sheets for these guarantees. Agreements with Save-A-Lot and Onex The Agreement and Plan of Merger pursuant to which Supervalu sold the Save-A-Lot business (the “SAL Merger Agreement”) contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters, on the terms and subject to the limitations set forth in the SAL Merger Agreement. Similarly, the Separation Agreement between Supervalu and Moran Foods (the “Separation Agreement”) contains indemnification obligations and covenants related to the separation of the assets and liabilities of the Save-A-Lot business from Supervalu. Pursuant to the Services Agreement between Supervalu and Moran Foods (the “Services Agreement”), Supervalu is providing Save-A-Lot various technical, human resources, finance and other operational services for a term of five years, subject to termination provisions that can be exercised by each party. Save-A-Lot paid Supervalu $30 upon entry into the Services Agreement, which is being credited against fees due under the Services Agreement. The initial annual base charge under the Services Agreement is $30 , subject to adjustments. The Services Agreement generally requires each party to indemnify the other party against third-party claims arising out of the performance of or the provision or receipt of services under the Services Agreement. While Supervalu’s aggregate indemnification obligations to Save-A-Lot and Onex could result in a material liability, Supervalu is not aware of any matters that are expected to result in a material liability. Supervalu has recorded the fair value of the guarantee in the Condensed Consolidated Balance Sheets. Agreements with AB Acquisition LLC and Affiliates In connection with the sale of NAI, Supervalu 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”). Supervalu is now providing services to NAI and Albertson's LLC to transition and wind down the TSA. In exchange for these transition and wind down services, Supervalu is entitled to receive aggregate fees of $50 that are being paid in eight $6 increments from April 2015 through October 2018. These payments are separate from and incremental to the fixed and variable fees Supervalu receives under the TSA. On October 17, 2017, Supervalu entered into a letter agreement with each of Albertson’s LLC and NAI pursuant to which the parties agreed that the TSA would expire on September 21, 2018 as to those services that Supervalu is providing to Albertson’s LLC and NAI, other than with respect to certain limited services. See Note 15—Subsequent Events for additional details. In addition, Supervalu operates a distribution center in Lancaster, Pennsylvania that is owned by NAI. In March 2017, Supervalu acquired a distribution center in Harrisburg, Pennsylvania that will eventually replace the Lancaster facility. Haggen In connection with Haggen's bankruptcy process, Haggen has now closed or sold all 164 of its stores. The transition and wind down of the Haggen transition services agreement occurred in the second quarter of fiscal 2017, with Supervalu now providing limited services in connection with the wind down of the Haggen estate. Supervalu filed approximately $2 of administrative 503(b)(9) priority claims and approximately $8 of unsecured claims with the bankruptcy court, including a number of contingent claims. On September 30, 2016, the bankruptcy court approved settlement agreements resolving Supervalu’s unsecured claims against Haggen. In accordance with the terms of the settlement agreements, Supervalu received approximately $3 from Haggen on October 11, 2016, and Haggen is obligated to make further payments of approximately $2 on account of Supervalu’s claims. Pursuant to the settlement agreement, Haggen has agreed not to pursue claw-backs of any transfers made to Supervalu. Supervalu could be exposed to claims from third parties from which Supervalu sourced products, services, licenses and similar benefits on behalf of Haggen. Supervalu has reserved for possible losses related to a portion of these third-party claims. It is reasonably possible that Supervalu could experience losses in excess of the amount of such reserves; however, at this time Supervalu cannot reasonably estimate a range of such excess losses because of the factual and legal issues related to whether Supervalu would have liability for any such third-party claims, if such third-party claims were asserted against Supervalu. Pursuant to a trade agreement that Unified entered into with Haggen, Haggen paid a substantial portion of Unified's prepetition receivables in exchange for certain shipping terms from Unified, and Haggen also agreed to stipulate to an allowed administrative 503(b)(9) priority claim for the balance of Unified's prepetition claim for goods shipped to Haggen. Accordingly, Unified filed a proof of claim asserting an administrative expense priority claim in the amount of $6 . Unified also filed a proof of claim against Haggen for breach of contract damages related to the termination of its supply agreement and various ancillary agreements. If allowed, such claim would be treated as a general unsecured claim in the Haggen bankruptcy cases. Relatedly, on September 7, 2016, the Official Committee of Unsecured Creditors (the "Committee") filed a complaint against Comvest Group Holdings, LLC, the private equity owner of Haggen ("Comvest"), certain of Haggen's non-debtor affiliates, and certain of their respective officers, directors and managers (collectively the "Defendants") in the bankruptcy court. On December 9, 2016, the Defendants filed their answer to the Committee's complaint generally denying the allegations asserted therein. The Committee and the Defendants have agreed to a scheduling order with a trial currently scheduled for October 2017. The Committee litigation seeks to recover additional funds for Haggen's bankruptcy estate for the benefit of creditors, including the potential payment of Unified's claims. Information Technology Intrusions Computer Network Intrusions – In fiscal 2015, Supervalu 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. Some stores owned and operated by Albertson's LLC and NAI experienced related criminal intrusions. Supervalu provides information technology services to these Albertson's LLC and NAI stores pursuant to the TSA. Supervalu believes that any losses incurred by Albertson's LLC or NAI as a result of the intrusions affecting their stores would not be Supervalu's responsibility. Investigations and Proceedings – As a result of the criminal intrusions, the payment card brands are conducting investigations and, although Supervalu’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 Supervalu 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. On August 1, 2016, MasterCard provided notice of its assessment of non-ordinary course expenses and incremental counterfeit fraud losses allegedly incurred by it or its issuers as a result of the criminal intrusions. On September 1, 2016, Supervalu submitted an appeal of the assessment to MasterCard and on December 5, 2016, MasterCard denied the appeal and imposed a reduced assessment. Supervalu expects the other payment card brands to also allege that Supervalu 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. Supervalu believes these payment card brands will also make claims against Supervalu for non-ordinary course operating expenses and incremental counterfeit fraud losses allegedly incurred by them or their issuers by reason of the intrusions and Supervalu expects to dispute those claims. While Supervalu does not believe that a loss is probable by reason of these as yet unasserted claims, Supervalu believes that a loss in connection with these claims, should they be asserted, is reasonably possible; however, at this time Supervalu 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. Similar to the assessment imposed by MasterCard, Supervalu does not currently believe that any amount that may be paid for other payment card brand claims that might be asserted will be material to Supervalu’s consolidated results of operations, cash flows or financial condition. In addition, one payment card brand has placed Supervalu in a “probationary status” for a period of two years following Supervalu's re-validation as PCI-DSS compliant, during which time Supervalu's 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. Supervalu does not anticipate material costs to comply with the probationary requirements. On October 23, 2015, Supervalu received a letter from a multistate group of Attorneys General seeking information regarding the intrusions. Supervalu is cooperating with the request. To date, no claims have been asserted against Supervalu related to this inquiry. If any claims are asserted, Supervalu expects to dispute those claims. As discussed in more detail below in this Note 13 under Legal Proceedings , four class action complaints related to the intrusions have been filed against Supervalu and consolidated into one action and are currently pending. As indicated below, Supervalu 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 Supervalu in connection with the intrusions. Insurance Coverage and Expenses – Supervalu 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 Supervalu based on these intrusions. Supervalu now maintains $90 of cyber threat insurance above a per incident deductible of approximately $3 , in each case subject to certain sublimits. Other Contractual Commitments In the ordinary course of business, Supervalu 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 September 9, 2017 , Supervalu had approximately $424 of non-cancelable future purchase obligations. Legal Proceedings Supervalu 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 Supervalu’s operations, its cash flows or its financial position is remote. In September 2008, a class action complaint was filed against Supervalu, 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 Supervalu 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. All proceedings had been stayed in the case pending the result of the criminal prosecution of certain former officers of IOS. The final criminal trial concluded in December 2016. The District Court has indicated that it will release the stay of the civil case and issue a scheduling order. At a mediation on May 22, 2017, Supervalu reached a preliminary settlement for a nominal amount and on September 5, 2017, entered into a final settlement agreement. In December 2008, a class action complaint was filed in the United States District Court for the Western District of Wisconsin against Supervalu alleging that a 2003 transaction between Supervalu and C&S Wholesale Grocers, Inc. (“C&S”) was a conspiracy to restrain trade and allocate markets. In the 2003 transaction, Supervalu purchased certain assets of the Fleming Corporation as part of Fleming Corporation’s bankruptcy proceedings and sold certain assets of Supervalu to C&S that were located in New England. Three other retailers filed similar complaints in other jurisdictions and 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 Supervalu 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 Supervalu’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 Supervalu’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, the 8th Circuit (1) reversed the District Court’s decision granting summary judgment in favor of Supervalu, 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 Supervalu 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 Supervalu’s Champaign, Illinois distribution center and potentially other distribution centers. 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 and the hearing before the 8th Circuit occurred on May 17, 2016. On March 1, 2016, the plaintiffs filed a class certification motion seeking to certify five District Court classes of retailers in the Midwest and Supervalu filed its response on May 6, 2016. On September 7, 2016, the District Court granted plaintiffs’ motion to certify five Midwest distribution center classes, only one of which is suing Supervalu (the non-arbitration Champaign distribution center class). On March 1, 2017, the 8th Circuit denied plaintiffs' appeals seeking to join an additional New England plaintiff and the appeal seeking the ability to move for class certification of a smaller New England class. At a mediation on May 25, 2017, Supervalu reached a settlement with the non-arbitration Champaign distribution center class, which is the one Midwest class suing Supervalu. Supervalu and the plaintiffs have executed a final settlement agreement and on August 10, 2017, the court granted preliminary approval of the settlement. The hearing on final court approval is scheduled for November 15, 2017. The material terms of the settlement include: (1) denial of wrongdoing and liability by Supervalu; (2) release of all claims against Supervalu related to the allegations and transactions at issue in the litigation that were raised or could have been raised by the non-arbitration Champaign distribution center class; and (3) payment by Supervalu of $9 . There is no contribution between C&S and Supervalu, and C&S did not settle the claims alleged against them. The New England Village Markets plaintiff is not a party to the settlement and is pursuing its individual claims and potential class action claims against Supervalu, which at this time are determined as remote. In August and November 2014, four class action complaints were filed against Supervalu relating to the criminal intrusions into its computer network announced by Supervalu 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. Supervalu 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 Supervalu 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 May 18, 2016, plaintiffs appealed to the 8th Circuit and on May 31, 2016, Supervalu filed a cross-appeal to preserve its additional arguments for dismissal of the plaintiffs' complaint. On August 30, 2017, the 8th Circuit affirmed the dismissal for 14 out of the 15 plaintiffs finding they had no standing. The 8th Circuit did not consider Supervalu's cross-appeal and remanded the case back for consideration of Supervalu's additional arguments for dismissal against the one remaining plaintiff. On June 30, 2015, Supervalu 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 Supervalu’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 Supervalu’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, Supervalu submitted its response to OCR’s letter. While Supervalu does not believe that a loss is probable by reason of the compliance review, Supervalu believes that a loss is reasonably possible; however, at this time Supervalu cannot estimate a range of possible losses because the OCR's review is at the early stages and Supervalu 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 Supervalu and other factors determined relevant by OCR. On September 21, 2016, Supervalu received an administrative subpoena issued by the Drug Enforcement Administration (“DEA”) on September 9, 2016. In addition to requesting information on Supervalu's pharmacy policies and procedures generally, the subpoena also requested the production of documents that are required to be kept and maintained by Supervalu pursuant to the Controlled Substances Act and its implementing regulations. On November 23, 2016, Supervalu responded to the subpoena and is cooperating fully with DEA's additional requests for information. While Supervalu cannot predict the outcome of this matter at this time, Supervalu does not believe that a monetary loss is probable. However, Supervalu believes that a monetary loss is reasonably possible, but cannot estimate the amount of any such loss as Supervalu does not know what violation(s) the DEA will find and whether the DEA will pursue corrective action or monetary penalties. 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. Supervalu 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 C&S, Criminal Intrusion and OCR matters discussed above, Supervalu 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 Supervalu’s financial condition, results of operations or cash flows. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Sep. 09, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Supervalu determined that the Save-A-Lot business met the criteria to be held-for-sale and classified as a discontinued operation during the third quarter of fiscal 2017. The Save-A-Lot business was previously disclosed as a separate reporting segment of Supervalu. The assets, liabilities, operating results, and cash flows of the Save-A-Lot business have been presented separately as discontinued operations in the Condensed Consolidated Financial Statements for all periods presented. In addition, discontinued operations include the results of operations and cash flows attributed to the assets and liabilities of the NAI business. The major classes of operating results classified as discontinued operations within the Condensed Consolidated Statements of Operations were as follows: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Net sales $ — $ 1,060 $ — $ 2,491 Cost of sales — 893 — 2,095 Gross profit — 167 — 396 Selling and administrative expenses — 135 1 319 Operating earnings (loss) — 32 (1 ) 77 Interest expense, net — — — 1 Earnings (loss) from discontinued operations before income taxes — 32 (1 ) 76 Income tax provision (benefit) — 12 (1 ) 29 Income from discontinued operations, net of tax $ — $ 20 $ — $ 47 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events | 6 Months Ended |
Sep. 09, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On September 14, 2017, Supervalu paid $61 to acquire the land and building for a distribution center located in Joliet, Illinois. On October 17, 2017, Supervalu entered into a letter agreement with each of Albertson’s LLC and NAI pursuant to which the parties agreed that the TSA would expire on September 21, 2018 as to those services that Supervalu is providing to Albertson’s LLC and NAI. Supervalu will continue to provide transition and wind down services as previously agreed. In addition, Supervalu will provide services to Albertson’s LLC for one distribution center until at least October 2018, and NAI may notify Supervalu that it requires services for certain stores beyond September 21, 2018. The fees for these extended services, if any, will be the same per-store weekly fee (subject to a minimum fee) and the same weekly fee for the distribution center that Albertson’s LLC and NAI pay to Supervalu currently. The parties do not expect any of these services, or any of the transition and wind down services, to extend beyond April 2019. Supervalu also agreed that Albertson’s would no longer provide services to Supervalu after September 21, 2019. On October 17, 2017, Supervalu, a newly formed wholly owned subsidiary of Supervalu (“AG Merger Sub”), and Associated Grocers of Florida, Inc. (“AG Florida”) entered into an Agreement and Plan of Merger (the “AG Merger Agreement”) pursuant to which Supervalu agreed to acquire AG Florida in a transaction valued at approximately $180 . Founded in 1945, AG Florida is a retailer-owned cooperative that distributes full lines of grocery and general merchandise to independent retailers, primarily in South Florida, the Caribbean, Central and South America and Asia and had annual sales of approximately $650 in its last fiscal year, which ended on July 29, 2017, estimated by Supervalu under its accounting policies. Supervalu expects to use cash on hand and available liquidity under its Revolving ABL Credit Facility to fund the acquisition. On the terms and subject to the conditions set forth in the AG Merger Agreement, at the closing of the transactions contemplated thereby (the “AG Closing”), AG Merger Sub will merge with and into AG Florida (the “AG Merger”) with AG Florida surviving the AG Merger as a wholly owned subsidiary of Supervalu, and the shares of AG Florida will be converted into the right to receive cash consideration from Supervalu at the AG Closing. As further provided in the AG Merger Agreement, the consummation of the transactions contemplated by the AG Merger Agreement is subject to certain closing conditions, including (i) approval of the AG Merger by the shareholders of AG Florida, (ii) any applicable waiting periods (or extensions thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 having expired or been terminated, (iii) the absence of any action or order by any governmental entity that restrains, conditions, challenges the legality or validity of, or otherwise prohibits the AG Merger, (iv) the accuracy of the representations and warranties of the parties (generally subject to a material adverse effect standard), (v) material compliance by the parties with their respective obligations under the AG Merger Agreement, (vi) no material adverse effect having occurred with respect to the AG Florida business after entry into the AG Merger Agreement and no Supervalu bankruptcy, and (vii) other customary closing conditions. The transaction is currently expected to be completed by the end of calendar year 2017. Under the terms of the AG Merger Agreement, Supervalu will be entitled to receive a termination fee of $7 , plus reimbursement of up to $500 thousand in costs and expenses, in the event that the AG Merger Agreement is terminated under certain circumstances, including as a result of a change in the recommendation of the board of directors of AG Florida. In addition, a reverse termination fee of $9 may be payable by Supervalu to AG Florida upon termination of the AG Merger Agreement under certain circumstances, including if Supervalu is unable to obtain antitrust approval before June 14, 2018. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 09, 2017 | |
Accounting Policies [Abstract] | |
Statement of Registrant | Statement of Registrant The accompanying Condensed Consolidated Financial Statements of SUPERVALU INC. (“Supervalu”, the “Company”, “we”, “us”, or “our”) for the second quarters ended September 9, 2017 and September 10, 2016 are unaudited and, in the opinion of management, contain all adjustments that are of a normal and recurring nature necessary to present fairly the financial condition, results of operations and cash flows for such periods. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes in Supervalu’s Annual Report on Form 10-K for the fiscal year ended February 25, 2017 . The results of operations for the second quarter ended September 9, 2017 are not necessarily indicative of the results expected for the full year. |
Accounting Policies | Accounting Policies The summary of significant accounting policies is included in the Notes to Consolidated Financial Statements set forth in Supervalu’s Annual Report on Form 10-K for the fiscal year ended February 25, 2017 . |
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 the second quarters of fiscal 2018 and 2017 relate to the 12 week fiscal quarters ended September 9, 2017 and September 10, 2016 , respectively. References to fiscal 2018 and 2017 year-to-date relate to the 28 week fiscal periods ended September 9, 2017 and September 10, 2016 , respectively. |
Use of Estimates | Use of Estimates The preparation of Supervalu’s Condensed 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 during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Supervalu considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Supervalu’s banking arrangements allow Supervalu to fund outstanding checks when presented to the financial institution for payment. Supervalu funds all intraday bank balance overdrafts during the same business day. Checks outstanding in excess of bank balances create net book overdrafts, which are recorded in Accounts payable in the Condensed Consolidated Balance Sheets and are reflected as an operating activity in the Condensed Consolidated Statements of Cash Flows. As of September 9, 2017 and February 25, 2017 , Supervalu had net book overdrafts of $166 and $91 , respectively. |
Inventories, Net | Inventories, Net Inventories are valued at the lower of cost or market. Substantially all of Supervalu’s inventories consist of finished goods and a substantial portion of Supervalu’s inventories have a last-in, first-out (“LIFO”) reserve applied. Interim LIFO calculations are based on Supervalu’s estimates of expected year-end inventory levels and costs, as the actual valuation of inventory under the LIFO method is computed at the end of each year based on the inventory levels and costs at that time. If the first-in, first-out method had been used, Inventories, net would have been higher by approximately $218 at September 9, 2017 and $216 at February 25, 2017 . Supervalu recorded a LIFO charge of $1 and $1 for the second quarters ended September 9, 2017 and September 10, 2016 , respectively. Supervalu recorded a LIFO charge of $3 and $2 for fiscal 2018 and 2017 year-to-date, respectively. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance under Accounting Standards Update ("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. Supervalu adopted this guidance in the first quarter of fiscal 2018, which resulted in $5 of additional income tax expense that would have been recorded as an adjustment to Additional paid-in-capital under previous authoritative guidance. The adoption resulted in the presentation of payments for shares traded for taxes within financing activities, which resulted in the retrospective revision of the Condensed Consolidated Statements of Cash Flows. In addition, estimated forfeitures continued to be recorded as stock-based compensation expense. Recently Issued Accounting Standards In March 2017, the FASB issued authoritative guidance under ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes how benefit plan costs for defined benefit pension and other postretirement benefit plans are presented in the statement of operations. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2019. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. Supervalu is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. In August 2016, the FASB issued authoritative guidance under ASU 2016-15, Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies how certain cash receipts and payments should be presented in the statement of cash flows. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2019. Supervalu is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. In June 2016, the FASB issued authoritative guidance under ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and generally will result in the earlier recognition of allowances for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2021. Supervalu 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, Supervalu 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 (deficit). ASU 2016-02 requires Supervalu to capitalize most current operating lease obligations as right-of-use assets with a corresponding liability based on the present value of future operating leases. 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. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2020. Supervalu is currently evaluating the potential impact of adoption of this standard on its consolidated financial statements. For a quantification of Supervalu’s off-balance sheet operating leases subject to capitalization under ASU 2016-02, other than those reserved for as a closed property and certain agreements that may be deemed leases under the new authoritative guidance, refer to total operating lease obligations within Note 9—Leases in the Notes to Consolidated Financial Statements included in Part II, Item 8 of Supervalu's Annual Report on Form 10-K for the fiscal year ended February 25, 2017 . 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. Supervalu is required to adopt this new guidance in the first quarter of fiscal 2019. Supervalu is currently evaluating the potential impact of adoption of this standard 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 guidance will be adopted by Supervalu 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); ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing; ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients; and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. Adoption is allowed by either the full retrospective or modified retrospective approach. Supervalu is currently evaluating which of the alternative approaches it will apply and the potential impact of adoption of the revised revenue standards on its consolidated financial statements. Supervalu believes that there will be few, if any, substantial changes to its Retail segment. Arrangements where Supervalu has determined it was a principal versus an agent are expected to remain relatively unchanged. Distribution contracts within Wholesale contain certain immaterial promises for goods or services that Supervalu believes will be immaterial in the context of the contracts. Supervalu expects to complete its evaluation in fiscal 2018. Upon conclusion of the revised revenue assessment, Supervalu will determine whether to adopt the guidance under the full retrospective or modified retrospective approach. |
Business Acquisitions Busines26
Business Acquisitions Business Acquisitions Proforma (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table immediately below summarizes the preliminary fair values assigned to the Unified net assets acquired. As of September 9, 2017, the fair value allocation for the acquisition is preliminary and will be finalized when the valuation is completed. Differences between the preliminary and final allocation could be material. Supervalu’s estimates and assumptions are subject to change during the measurement period (up to one year from the acquisition date), as Supervalu finalizes the valuations of certain tangible and intangible assets acquired and liabilities assumed in connection with the acquisition. The primary areas of the purchase price allocation that are not yet finalized relate to real and personal property, identifiable intangible assets, goodwill, income taxes and deferred taxes. Amounts as of the Acquisition Date Cash and cash equivalents $ 8 Accounts receivable 176 Inventories 237 Other current assets 31 Property, plant and equipment 285 Goodwill 30 Intangible assets 54 Deferred tax assets (19 ) Other assets 65 Accounts payable (255 ) Other current liabilities (89 ) Long-term debt and capital lease obligations (270 ) Pension and other postretirement benefit obligations (103 ) Other liabilities assumed (36 ) Total fair value of net assets acquired 114 Less cash acquired (9 ) Total consideration for acquisition, less cash acquired $ 105 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma information presents the combined results of Supervalu and Unified as if Supervalu had completed the acquisition of Unified on February 27, 2016. As required by GAAP, these unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined companies would have been had the acquisition occurred at the beginning of the period being presented, nor are they indicative of future results of operations. Second Quarter Ended Year-To-Date Ended September 9, September 10, (1) September 9, 8 weeks) September 10, (1) Net sales $ 3,872 $ 3,680 $ 9,028 $ 8,603 Net (loss) earnings from continuing operations attributable to SUPERVALU INC. $ (21 ) $ 8 $ (12 ) $ 24 Basic net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. $ (0.54 ) $ 0.21 $ (0.30 ) $ 0.63 Diluted net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. $ (0.54 ) $ 0.21 $ (0.30 ) $ 0.62 (1) The unaudited pro forma financial information of Unified included in these results reflects the 12 and 28 week fiscal periods ended August 27, 2016. |
Reserves for Closed Propertie27
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Property, Plant and Equipment [Abstract] | |
Changes in Company's Reserves | Changes in Supervalu’s reserves for closed properties consisted of the following: September 9, 8 weeks) Reserves for closed properties at beginning of the fiscal year $ 22 Additions 2 Payments (4 ) Adjustments (1 ) Reserves for closed properties at the end of period $ 19 |
Fair value of property, plant and equipment on a non-recurring basis | The following table presents impairment charges related to property, plant and equipment measured at fair value on a non-recurring basis: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Property, plant and equipment: Carrying value $ 98 $ 1 $ 98 $ 3 Fair value measured using Level 3 inputs 56 — 56 2 Impairment charge $ 42 $ 1 $ 42 $ 1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Company's Goodwill and Intangible Assets | Changes in Supervalu’s Goodwill and Intangible assets, net consisted of the following: February 25, Additions Impairments Other net adjustments September 9, Wholesale goodwill $ 710 $ 30 $ — $ — $ 740 Intangible assets: Customer lists, favorable operating leases, prescription files and other $ 141 $ 54 $ — $ — $ 195 Trademarks and tradenames – indefinite useful lives 5 — — — 5 Total intangible assets 146 54 — — 200 Accumulated amortization (107 ) (7 ) — — (114 ) Total intangible assets, net $ 39 $ 86 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements Recurring and Nonrecurring (Tables) | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Recurring fair value measurements were as follows: September 9, 2017 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 4 $ — $ — $ 4 Total $ 4 $ — $ — $ 4 Liabilities: Interest rate swap derivative Other current liabilities $ — $ 2 $ — $ 2 Interest rate swap derivative Other long-term liabilities — 1 — 1 Total $ — $ 3 $ — $ 3 | February 25, 2017 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Deferred compensation Other assets $ 5 $ — $ — $ 5 Total $ 5 $ — $ — $ 5 Liabilities: Interest rate swap derivative Other current liabilities $ — $ 2 $ — $ 2 Interest rate swap derivative Other long-term liabilities — 1 — 1 Total $ — $ 3 $ — $ 3 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Lease Obligations | Supervalu’s long-term debt consisted of the following: September 9, February 25, 4.74% Secured Term Loan Facility due June 2024 $ 838 $ — 5.54% Secured Term Loan Facility due March 2019 — 524 6.75% Senior Notes due June 2021 400 400 7.75% Senior Notes due November 2022 350 350 4.50% Revolving ABL Credit Facility due February 2021 — — Other 37 — Debt financing costs, net (14 ) (10 ) Original issue discount on debt (3 ) (1 ) Total debt 1,608 1,263 Less current maturities of long-term debt (7 ) — Long-term debt $ 1,601 $ 1,263 |
Secured Assets and Unused Available Credit and Fees, Revolving ABL Credit Facility | The assets included in the Condensed Consolidated Balance Sheets securing the outstanding borrowings under the Revolving ABL Credit Facility on a first-priority basis, and the unused available credit and fees under the Revolving ABL Credit Facility, were as follows: Assets securing the Revolving ABL Credit Facility (1) : September 9, 2017 February 25, 2017 Certain inventory assets included in Inventories, net $ 1,249 $ 949 Certain receivables included in Receivables, net 416 228 Certain amounts included in Cash and cash equivalents 20 19 (1) The Revolving ABL Credit Facility is also secured by all of Supervalu's pharmacy scripts included in Intangible assets, net. Unused available credit and fees under the Revolving ABL Credit Facility: September 9, 2017 February 25, 2017 Outstanding letters of credit $ 51 $ 53 Letters of credit fees 1.375 % 1.375 % Unused available credit 790 748 Unused facility fees 0.25 % 0.25 % |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Periodic Benefit Expense and Contributions for Defined Benefit Pension Plans and Other Postretirement Benefit Plans | Net periodic benefit income and contributions for defined benefit pension and other postretirement benefit plans consisted of the following: Second Quarter Ended Pension Benefits Other Postretirement Benefits September 9, September 10, September 9, September 10, Interest cost $ 20 $ 20 $ 1 $ — Expected return on assets (33 ) (33 ) — — Amortization of prior service benefit 3 — (3 ) (3 ) Amortization of net actuarial loss — 10 — — Net periodic benefit income $ (10 ) $ (3 ) $ (2 ) $ (3 ) Contributions to benefit plans $ — $ (1 ) $ — $ — Year-To-Date Ended Pension Benefits Other Postretirement Benefits September 9, September 10, September 9, September 10, Interest cost $ 44 $ 46 $ 1 $ 1 Expected return on assets (73 ) (77 ) — — Amortization of prior service benefit 6 — (8 ) (8 ) Amortization of net actuarial loss — 24 1 1 Net periodic benefit income $ (23 ) $ (7 ) $ (6 ) $ (6 ) Contributions to benefit plans $ (1 ) $ (2 ) $ — $ — |
Net (Loss) Earnings Per Share (
Net (Loss) Earnings Per Share (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
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 (loss) earnings per share: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Net (loss) earnings from continuing operations $ (25 ) $ 12 $ (13 ) $ 32 Less net earnings attributable to noncontrolling interests — (1 ) (1 ) (2 ) Net (loss) earnings from continuing operations attributable to SUPERVALU INC. (25 ) 11 (14 ) 30 Income from discontinued operations, net of tax — 20 — 47 Net (loss) earnings attributable to SUPERVALU INC. $ (25 ) $ 31 $ (14 ) $ 77 Weighted average number of shares outstanding—basic 38 38 38 38 Dilutive impact of stock-based awards — — — — Weighted average number of shares outstanding—diluted 38 38 38 38 Basic net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.65 ) $ 0.30 $ (0.35 ) $ 0.79 Discontinued operations $ — $ 0.52 $ (0.01 ) $ 1.24 Basic net (loss) earnings per share $ (0.65 ) $ 0.82 $ (0.36 ) $ 2.04 Diluted net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.65 ) $ 0.29 $ (0.35 ) $ 0.79 Discontinued operations $ — $ 0.52 $ (0.01 ) $ 1.23 Diluted net (loss) earnings per share $ (0.65 ) $ 0.81 $ (0.36 ) $ 2.02 |
Comprehensive Income and Accu33
Comprehensive Income and Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss by component for fiscal 2018 year-to-date are as follows: Benefit Plans Interest Rate Swap Total Accumulated other comprehensive loss at beginning of the fiscal year, net of tax $ (276 ) $ (2 ) $ (278 ) Other comprehensive income (loss) before reclassifications (1) — — — Amortization of amounts included in net periodic benefit income (2) (1 ) — (1 ) Amortization of cash flow hedge (3) — 1 1 Net current-period Other comprehensive income (loss) (4) (1 ) 1 — Accumulated other comprehensive loss at the end of period, net of tax $ (277 ) $ (1 ) $ (278 ) (1) Amount is net of tax (benefit) expense of $0 , $0 and $0 , respectively. (2) Amount is net of tax (benefit) expense of $(1) , $0 and $(1) , respectively. (3) Amount is net of tax (benefit) expense of $0 , $1 and $1 , respectively. (4) Amount is net of tax (benefit) expense of $(1) , $1 and $0 , respectively. Changes in Accumulated other comprehensive loss by component for fiscal 2017 year-to-date are as follows: Benefit Plans Interest Rate Swap Total Accumulated other comprehensive loss at beginning of the fiscal year, net of tax $ (418 ) $ (4 ) $ (422 ) Other comprehensive loss before reclassifications (1) — (1 ) (1 ) Amortization of amounts included in net periodic benefit income (2) 11 — 11 Amortization of cash flow hedge (3) — 1 1 Net current-period Other comprehensive income (4) 11 — 11 Accumulated other comprehensive loss at the end of period, net of tax $ (407 ) $ (4 ) $ (411 ) (1) Amount is net of tax expense of $0 , $0 and $0 , respectively. (2) Amount is net of tax expense of $6 , $0 and $6 , respectively. (3) Amount is net of tax expense of $0 , $0 and $0 , respectively. (4) Amount is net of tax expense of $6 , $0 and $6 , respectively. |
Summary of Items Reclassified Out of Pension and Postretirement Benefit Plan Accumulated Other Comprehensive Loss | Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Affected Line Item on Condensed Consolidated Statements of Operations Pension and postretirement benefit plan obligations: Amortization of amounts included in net periodic benefit income (1) $ (1 ) $ 7 $ (2 ) $ 16 Selling and administrative expenses Amortization of amounts included in net periodic benefit income (1) — — — 1 Cost of sales Total reclassifications (1 ) 7 (2 ) 17 Income tax (benefit) expense — (2 ) 1 (6 ) Income tax (benefit) provision Total reclassifications, net of tax $ (1 ) $ 5 $ (1 ) $ 11 Interest rate swap cash flow hedge: Reclassification of cash flow hedge $ 1 $ — $ 2 $ 1 Interest expense, net Income tax benefit — — (1 ) — Income tax (benefit) provision Total reclassifications, net of tax $ 1 $ — $ 1 $ 1 (1) Amortization of amounts included in net periodic benefit income include amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 7—Benefit Plans . |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions Related to Estimated Fair Value of Options Grant Date | Supervalu used the Black-Scholes option pricing model to estimate the fair value of the options at grant date based upon the following assumptions: Year-To-Date Ended September 9, September 10, Dividend yield — % — % Volatility rate 53.7 % 54.2 % Risk-free interest rate 1.8 % 1.3 % Expected life 5.0 years 5.0 years Supervalu used the Monte Carlo method to estimate the fair value of the PSUs at grant date based upon the following assumptions: Year-To-Date Ended September 9, September 10, Dividend yield — % — % Volatility rate 44.3 % 41.3 % Risk-free interest rate 1.41 % 0.9 % Expected life 2.8 years 2.8 years |
Segment Information Segment Inf
Segment Information Segment Information (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary operating results by reportable segment consisted of the following: Second Quarter Ended September 9, 2017 Year-To-Date Ended September 9, 2017 Wholesale Retail Corporate Total Wholesale Retail Corporate Total Net sales $ 2,738 $ 1,022 $ 40 $ 3,800 $ 5,294 $ 2,415 $ 95 $ 7,804 Cost of sales 2,620 752 — 3,372 5,053 1,772 — 6,825 Gross profit 118 270 40 428 241 643 95 979 Selling and administrative expenses 57 328 50 435 118 705 96 919 Operating earnings (loss) $ 61 $ (58 ) $ (10 ) $ (7 ) $ 123 $ (62 ) $ (1 ) $ 60 Interest expense, net 31 74 Equity in earnings of unconsolidated affiliates — (2 ) (Loss) from continuing operations before income taxes $ (38 ) $ (12 ) Second Quarter Ended September 10, 2016 Year-To-Date Ended September 10, 2016 Wholesale Retail Corporate Total Wholesale Retail Corporate Total Net sales $ 1,731 $ 1,033 $ 41 $ 2,805 $ 4,006 $ 2,464 $ 100 $ 6,570 Cost of sales 1,652 758 (1 ) 2,409 3,818 1,808 (1 ) 5,625 Gross profit 79 275 42 396 188 656 101 945 Selling and administrative expenses 21 287 30 338 66 660 72 798 Operating earnings (loss) $ 58 $ (12 ) $ 12 $ 58 $ 122 $ (4 ) $ 29 $ 147 Interest expense, net 41 101 Equity in earnings of unconsolidated affiliates (1 ) (2 ) Earnings from continuing operations before income taxes $ 18 $ 48 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Sep. 09, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Company's Operating Results and Certain Other Directly Attributable Expenses | The major classes of operating results classified as discontinued operations within the Condensed Consolidated Statements of Operations were as follows: Second Quarter Ended Year-To-Date Ended September 9, September 10, September 9, September 10, Net sales $ — $ 1,060 $ — $ 2,491 Cost of sales — 893 — 2,095 Gross profit — 167 — 396 Selling and administrative expenses — 135 1 319 Operating earnings (loss) — 32 (1 ) 77 Interest expense, net — — — 1 Earnings (loss) from discontinued operations before income taxes — 32 (1 ) 76 Income tax provision (benefit) — 12 (1 ) 29 Income from discontinued operations, net of tax $ — $ 20 $ — $ 47 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 6 Months Ended | |||
Sep. 09, 2017 | Sep. 10, 2016 | Jun. 17, 2017 | Sep. 09, 2017 | Sep. 10, 2016 | Feb. 25, 2017 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Book overdrafts | $ 166 | $ 166 | $ 91 | |||
Inventory, LIFO Reserve | 218 | 218 | $ 216 | |||
LIFO charge recorded | $ 1 | $ 1 | $ 3 | $ 2 | ||
Income Tax Expense | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Income tax provision | $ 5 |
Business Acquisitions Busines38
Business Acquisitions Business Acquisition-Additional Details (Details) | Jun. 23, 2017USD ($) | Sep. 09, 2017USD ($)business |
Unified Grocers, Inc. | ||
Business Acquisition [Line Items] | ||
Weighted average useful life of acquired intangible assets (in years) | 15 years | |
Limited Liability Company | ||
Business Acquisition [Line Items] | ||
Business acquisition, percentage of voting interests acquired (as a percentage) | 100.00% | |
Total purchase price | $ 5,000,000 | |
Number of businesses acquired | business | 3 | |
Unified Grocers, Inc. | ||
Business Acquisition [Line Items] | ||
Payments to acquire businesses | $ 390 | |
Business acquisition, percentage of voting interests acquired (as a percentage) | 100.00% | |
Integration related costs | $ 27 | |
Unified Grocers, Inc. | Debt | ||
Business Acquisition [Line Items] | ||
Payments to acquire businesses | $ 276 | |
Unified Grocers, Inc. | Common Stock | ||
Business Acquisition [Line Items] | ||
Payments to acquire businesses | $ 114 |
Business Acquisitions Schedule
Business Acquisitions Schedule of Business Acquisitions (Details) - USD ($) $ in Millions | Jun. 23, 2017 | Sep. 09, 2017 | Feb. 25, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 740 | $ 710 | |
Unified Grocers, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 8 | ||
Accounts receivable | 176 | ||
Inventories | 237 | ||
Other current assets | 31 | ||
Property, plant and equipment | 285 | ||
Goodwill | 30 | ||
Intangible assets | 54 | ||
Deferred tax assets | (19) | ||
Other assets | 65 | ||
Accounts payable | (255) | ||
Other current liabilities | (89) | ||
Long-term debt and capital lease obligations | (270) | ||
Pension and other postretirement benefit obligations | (103) | ||
Other liabilities assumed | (36) | ||
Total fair value of net assets acquired | 114 | ||
Less cash acquired | (9) | ||
Total consideration for acquisition, less cash acquired | $ 105 |
Business Acquisitions Schedul40
Business Acquisitions Schedule of Pro-Forma Information (Details) - SUPERVALU Inc. - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Business Combination Segment Allocation [Line Items] | ||||
Net sales | $ 3,872 | $ 3,680 | $ 9,028 | $ 8,603 |
Net (loss) earnings from continuing operations attributable to SUPERVALU INC. | $ (21) | $ 8 | $ (12) | $ 24 |
Basic net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. (earnings per share) | $ (0.54) | $ 0.21 | $ (0.30) | $ 0.63 |
Diluted net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. (earnings per share) | $ (0.54) | $ 0.21 | $ (0.30) | $ 0.62 |
Reserves for Closed Propertie41
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges - Changes in Company's Reserves (Detail) $ in Millions | 6 Months Ended |
Sep. 09, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Reserves for closed properties at beginning of the fiscal year | $ 22 |
Additions | 2 |
Payments | (4) |
Adjustments | (1) |
Reserves for closed properties at the end of period | $ 19 |
Reserves for Closed Propertie42
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges - Summary of Fair Values for Property, Plant and Equipment Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Property, Plant and Equipment [Abstract] | ||||
Carrying value | $ 98 | $ 1 | $ 98 | $ 3 |
Fair value measured using Level 3 inputs | 56 | 0 | 56 | 2 |
Impairment charge | 42 | $ 1 | $ 42 | $ 1 |
Impairment of Long-Lived Assets Held-for-use | $ 42 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Change in Company's Goodwill and Intangible Assets (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 710 | |
Goodwill, Additions | 30 | |
Goodwill, Impairment Loss | 0 | |
Goodwill, Other net adjustments | 0 | |
Goodwill, Ending Balance | 740 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Total intangible assets, Beginning balance | 146 | |
Total intangible assets, Additions | 54 | |
Total intangible assets, Impairments | 0 | |
Total intangible assets, Other net adjustments | 0 | |
Total intangible assets, Ending balance | 200 | |
Intangible Assets Accumulated Amortization [Roll Forward] | ||
Accumulated amortization, Beginning balance | (107) | |
Accumulated amortization, Additions | (7) | $ (6) |
Accumulated amortization, Other net adjustments | 0 | |
Accumulated amortization, Ending balance | (114) | |
Total intangible assets, net, Beginning balance | 39 | |
Total intangible assets, net, Ending balance | 86 | |
Trademarks and Tradenames - Indefinite Useful Lives | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||
Indefinite-lived Intangible Assets, Beginning Balance | 5 | |
Indefinite-lived Intangible Assets, Additions | 0 | |
Indefinite-lived Intangible Assets, Impairments | 0 | |
Indefinite-lived Intangible Assets, Other net adjustments | 0 | |
Indefinite-lived Intangible Assets, Ending Balance | 5 | |
Operating leases, Prescription files, Customer Lists And Other | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite-lived Intangible Assets, Beginning Balance | 141 | |
Finite-lived Intangible Assets, Additions | 54 | |
Finite-lived Intangible Assets, Impairments | 0 | |
Finite-lived Intangible Assets, Other net adjustments | 0 | |
Finite-lived Intangible Assets, Ending Balance | $ 195 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Feb. 25, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated amortization, Additions | $ (7) | $ (6) | |
Future amortization expense, Remainder of Fiscal Year | $ (4) | ||
Future amortization expense, Year Two | (9) | ||
Future amortization expense, Year Three | (8) | ||
Future amortization expense, Year Four | (8) | ||
Future amortization expense, Year Five | (6) | ||
Future amortization expense, After Year Five | $ (6) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | Feb. 25, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Difference between fair value and book value of notes receivable | $ 0 | $ 0 | $ 0 | ||
Difference between fair value and book value of long-term debt | 57,000,000 | 57,000,000 | |||
Interest Rate Swap | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Fair Value, Effect of One Percentage Point Increase in Interest Rate | 4,000,000 | ||||
Derivative, Fair Value, Effect of One Percentage Point Decrease in Interest Rate | 2,000,000 | ||||
Cost of Sales | Fuel | Energy Related Derivative | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Gain on Derivative | 0 | $ 0 | 0 | $ 0 | |
Interest Expense | Interest Rate Swap | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 1,000,000 | $ 0 | $ 2,000,000 | $ 1,000,000 |
Fair Value Measurements Recurri
Fair Value Measurements Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 09, 2017 | Feb. 25, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 4 | $ 5 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 3 | 3 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 4 | 5 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 3 | 3 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Asset, Fair Value Disclosure | 4 | 5 |
Other Assets | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Asset, Fair Value Disclosure | 4 | 5 |
Other Assets | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Asset, Fair Value Disclosure | 0 | 0 |
Other Assets | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Compensation Asset, Fair Value Disclosure | 0 | 0 |
Other Current Liabilities | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 2 | 2 |
Other Current Liabilities | Fair Value, Inputs, Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Other Current Liabilities | Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 2 | 2 |
Other Current Liabilities | Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Other Noncurrent Liabilities | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 1 | 1 |
Other Noncurrent Liabilities | Fair Value, Inputs, Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Other Noncurrent Liabilities | Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 1 | 1 |
Other Noncurrent Liabilities | Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | $ 0 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt and Capital Lease Obligations (Detail) - USD ($) $ in Millions | Sep. 09, 2017 | Jun. 23, 2017 | Feb. 25, 2017 |
Debt Instrument [Line Items] | |||
Secured debt | $ 840 | ||
Debt financing costs, net | $ (14) | $ (10) | |
Original issue discount on debt | 3 | 1 | |
Total debt | 1,608 | 1,263 | |
Less current maturities of long-term debt | (7) | 0 | |
Long-term debt | 1,601 | 1,263 | |
4.74% Secured Term Loan Facility due June 2024 | |||
Debt Instrument [Line Items] | |||
Secured debt | $ 838 | $ 0 | |
Debt instrument, interest rate | 4.74% | 4.74% | |
5.54% Secured Term Loan Facility due March 2019 | |||
Debt Instrument [Line Items] | |||
Secured debt | $ 0 | $ 524 | |
Debt instrument, interest rate | 5.54% | 5.54% | |
6.75% Senior Notes due June 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400 | $ 400 | |
Debt instrument, interest rate | 6.75% | 6.75% | |
7.75% Senior Notes due November 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 350 | $ 350 | |
Debt instrument, interest rate | 7.75% | 7.75% | |
4.50% Revolving ABL Credit Facility due February 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 0 | |
Debt instrument, interest rate | 4.50% | 4.50% | |
Other | |||
Debt Instrument [Line Items] | |||
Secured debt | $ 37 | $ 0 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | May 20, 2016 | Sep. 09, 2017 | Jun. 23, 2017 | Feb. 25, 2017 |
Debt Instrument [Line Items] | ||||
Secured debt | $ 840,000,000 | |||
Capitalized debt financing costs | $ 14,000,000 | $ 10,000,000 | ||
Long-term debt | 1,601,000,000 | 1,263,000,000 | ||
Revolving ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate cap on restricted payments | 502,000,000 | |||
Dividends permitted per fiscal year | 75,000,000 | |||
Total dividends permitted | $ 175,000,000 | |||
London Interbank Offered Rate (LIBOR) | Minimum | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate at the rate of LIBOR | 1.00% | 1.00% | ||
4.74% Secured Term Loan Facility due June 2024 | ||||
Debt Instrument [Line Items] | ||||
Secured debt | $ 525,000,000 | |||
Delayed Draw Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Secured debt | $ 315,000,000 | |||
Fourth Term Loan Amendment | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate at the rate of LIBOR | 3.50% | |||
Payments for debt financing costs | $ 8,000,000 | |||
Capitalized debt financing costs | 5,000,000 | |||
Amortization of debt financing costs | 3,000,000 | |||
Amortization of debt discount (premium) | 2,000,000 | |||
Write-off of unamortized debt financing costs | $ 2,000,000 | |||
Third Term Loan Amendment | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate at the rate of LIBOR | 4.50% | |||
5.50% Secured Term Loan Facility due March 2019 | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Repayment period prior to maturity | 91 days | |||
Line of credit facility amount outstanding, current | $ 8,000,000 | $ 0 | ||
Percentage of net cash proceeds to prepay outstanding loans | 100.00% | |||
Maximum period for prepayment of loans outstanding (in days) | 90 days | |||
5.50% Secured Term Loan Facility due March 2019 | Minimum | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Percentage of aggregate principal amount to prepay outstanding loans | 0.00% | |||
5.50% Secured Term Loan Facility due March 2019 | Maximum | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Percentage of aggregate principal amount to prepay outstanding loans | 50.00% | |||
5.50% Secured Term Loan Facility due March 2019 | Revolving ABL Credit Facility | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Company's five year asset-based revolving facility | $ 1,000,000,000 | |||
6.75% Senior Notes due June 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.75% | 6.75% | ||
Long-term debt | $ 400,000,000 | $ 400,000,000 | ||
7.75% Senior Notes due November 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 7.75% | 7.75% | ||
Long-term debt | $ 350,000,000 | $ 350,000,000 | ||
Property, Plant and Equipment | 5.50% Secured Term Loan Facility due March 2019 | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Collateral amount pledged | $ 707,000,000 | $ 520,000,000 |
Long-Term Debt Long-Term Debt -
Long-Term Debt Long-Term Debt - Schedule of Secured Assets and Unused Available Credit and Fees (Details) - Revolving ABL Credit Facility - USD ($) | Sep. 09, 2017 | Feb. 25, 2017 |
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 51,000,000 | $ 53,000,000 |
Letters of credit fees (as a percentage) | 1.375% | 1.375% |
Unused available credit | $ 790,000,000 | $ 748,000,000 |
Unused facility fees | 0.25% | 0.25% |
Inventories | ||
Debt Instrument [Line Items] | ||
Collateral amount pledged | $ 1,249,000,000 | $ 949,000,000 |
Accounts Receivable | ||
Debt Instrument [Line Items] | ||
Collateral amount pledged | 416,000,000 | 228,000,000 |
Cash and Cash Equivalents | ||
Debt Instrument [Line Items] | ||
Collateral amount pledged | $ 20,000,000 | $ 19,000,000 |
Benefit Plans - Net Periodic Be
Benefit Plans - Net Periodic Benefit Expense and Contributions for Defined Benefit Pension Plans and Other Postretirement Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 20 | $ 20 | $ 44 | $ 46 |
Expected return on assets | (33) | (33) | (73) | (77) |
Amortization of prior service benefit | 3 | 0 | 6 | 0 |
Amortization of net actuarial loss | 0 | 10 | 0 | 24 |
Net periodic benefit income | (10) | (3) | (23) | (7) |
Contributions to benefit plans | 0 | (1) | (1) | (2) |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 1 | 0 | 1 | 1 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service benefit | (3) | (3) | (8) | (8) |
Amortization of net actuarial loss | 0 | 0 | 1 | 1 |
Net periodic benefit income | (2) | (3) | (6) | (6) |
Contributions to benefit plans | $ 0 | $ 0 | $ 0 | $ 0 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 5 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 10 | |
Multiemployer Plans, Postretirement Benefit | ||
Multiemployer Plans [Line Items] | ||
Multiemployer Plan, Period Contributions | $ 21 | $ 21 |
Net (Loss) Earnings Per Share -
Net (Loss) Earnings Per Share - Calculation of Basic and Diluted Net Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Pro forma Schedule of Basic and Diluted earnings per share [Line Items] | ||||
Net (loss) earnings from continuing operations attributable to SUPERVALU INC. | $ (13) | $ 30 | ||
Income from discontinued operations, net of tax | 0 | 49 | ||
SUPERVALU Inc. | ||||
Pro forma Schedule of Basic and Diluted earnings per share [Line Items] | ||||
Net earnings from continuing operations | $ (25) | $ 12 | (13) | 32 |
Less net earnings attributable to noncontrolling interests | 0 | (1) | (1) | (2) |
Net (loss) earnings from continuing operations attributable to SUPERVALU INC. | (25) | 11 | (14) | 30 |
Income from discontinued operations, net of tax | 0 | 20 | 0 | 47 |
Net (loss) earnings attributable to SUPERVALU INC. | $ (25) | $ 31 | $ (14) | $ 77 |
Weighted average number of shares outstanding-basic | 38 | 38 | 38 | 38 |
Dilutive impact of stock-based awards | 0 | 0 | 0 | 0 |
Weighted average number of shares outstanding-diluted | 38 | 38 | 38 | 38 |
Basic net (loss) earnings per share attributable to SUPERVALU INC.:(1) | ||||
Continuing operations (in dollars per share) | $ (0.65) | $ 0.30 | $ (0.35) | $ 0.79 |
Discontinued operations (in dollars per share) | 0 | 0.52 | (0.01) | 1.24 |
Basic net earnings per share (in dollars per share) | (0.65) | 0.82 | (0.36) | 2.04 |
Diluted net (loss) earnings per share attributable to SUPERVALU INC.:(1) | ||||
Continuing operations (in dollars per share) | (0.65) | 0.29 | (0.35) | 0.79 |
Discontinued operations (in dollars per share) | 0 | 0.52 | (0.01) | 1.23 |
Diluted net earnings per share (in dollars per share) | $ (0.65) | $ 0.81 | $ (0.36) | $ 2.02 |
Net (Loss) Earnings Per Share53
Net (Loss) Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 6 Months Ended | |||
Sep. 09, 2017 | Sep. 10, 2016 | Aug. 01, 2017 | Feb. 25, 2017 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Common stock, shares authorized | 57 | 57 | 57 | |
Common stock, shares issued | 38 | 269 | 38 | |
Continuing Operations | ||||
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 2 | 2 |
Comprehensive Income and Accu54
Comprehensive Income and Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of the fiscal year, net of tax | $ (278) | $ (422) | ||
Other comprehensive loss before reclassifications | 0 | (1) | ||
Amortization of amounts included in net periodic benefit cost | (1) | 11 | ||
Amortization of cash flow hedge | 1 | 1 | ||
Total other comprehensive income | $ 0 | $ 5 | 0 | 11 |
Accumulated other comprehensive loss at the end of period, net of tax | (278) | (411) | (278) | (411) |
Other comprehensive loss before reclassifications, tax benefit | 0 | 0 | ||
Amortization of amounts included in net periodic benefit cost, tax expense | (1) | 6 | ||
Amortization of cash flow hedge, tax expense | 1 | 0 | ||
Net current-period Other comprehensive income, tax expense | 0 | 6 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of the fiscal year, net of tax | (276) | (418) | ||
Other comprehensive loss before reclassifications | 0 | 0 | ||
Amortization of amounts included in net periodic benefit cost | (1) | 11 | ||
Amortization of cash flow hedge | 0 | 0 | ||
Total other comprehensive income | (1) | 11 | ||
Accumulated other comprehensive loss at the end of period, net of tax | (277) | (407) | (277) | (407) |
Other comprehensive loss before reclassifications, tax benefit | 0 | 0 | ||
Amortization of amounts included in net periodic benefit cost, tax expense | (1) | 6 | ||
Amortization of cash flow hedge, tax expense | 0 | 0 | ||
Net current-period Other comprehensive income, tax expense | (1) | 6 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at beginning of the fiscal year, net of tax | (2) | (4) | ||
Other comprehensive loss before reclassifications | 0 | (1) | ||
Amortization of amounts included in net periodic benefit cost | 0 | 0 | ||
Amortization of cash flow hedge | 1 | 1 | ||
Total other comprehensive income | 1 | 0 | ||
Accumulated other comprehensive loss at the end of period, net of tax | $ (1) | $ (4) | (1) | (4) |
Other comprehensive loss before reclassifications, tax benefit | 0 | 0 | ||
Amortization of amounts included in net periodic benefit cost, tax expense | 0 | 0 | ||
Amortization of cash flow hedge, tax expense | 1 | 0 | ||
Net current-period Other comprehensive income, tax expense | $ 1 | $ 0 |
Comprehensive Income and Accu55
Comprehensive Income and Accumulated Other Comprehensive Loss - Summary of Items Reclassified Out of Pension and Postretirement Benefit Plan Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | $ (1) | $ 7 | $ (2) | $ 17 |
Income tax (benefit) expense | 0 | (2) | 1 | (6) |
Total reclassifications, net of tax | (1) | 5 | (1) | 11 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Selling and administrative expenses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | (1) | 7 | (2) | 16 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Cost of sales | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | 0 | 0 | 0 | 1 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax (benefit) expense | 0 | 0 | (1) | 0 |
Total reclassifications, net of tax | 1 | 0 | 1 | 1 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Income tax (benefit) provision | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | $ 1 | $ 0 | $ 2 | $ 1 |
Comprehensive Income and Accu56
Comprehensive Income and Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Millions | Sep. 09, 2017USD ($) |
Equity [Abstract] | |
Amount expected to be reclassified out of Accumulated other comprehensive loss into Interest expense | $ 2 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax stock-based compensation expense related to stock-based awards | $ 5 | $ 4 | $ 11 | $ 8 |
Stock option granted (in shares) | 36,000 | 114,000 | ||
Fair value of the options at grant date (in dollars per share) | $ 13.92 | $ 18.68 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period (in years) | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option vesting period (in years) | 3 years | 3 years | ||
Award units grant to certain employees (in shares) | 880,000 | 494,000 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award units grant to certain employees (in shares) | 178,000 | 180,000 | ||
Minimum | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share granted to certain employees at a fair value (in dollars per share) | $ 25.06 | $ 31.78 | ||
Maximum | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share granted to certain employees at a fair value (in dollars per share) | $ 29.19 | $ 39.48 |
Stock-Based Awards - Assumption
Stock-Based Awards - Assumptions Related to Estimated Fair Value of Options Grant Date (Detail) | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Volatility rate | 53.70% | 54.20% |
Risk-free interest rate | 1.80% | 1.30% |
Expected life (in years) | 5 years | 5 years |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Volatility rate | 44.30% | 41.30% |
Risk-free interest rate | 1.41% | 0.90% |
Expected life (in years) | 2 years 9 months 18 days | 2 years 9 months 18 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Sep. 09, 2017 | Sep. 10, 2016 | |
Income Tax Disclosure [Abstract] | ||
Discrete tax expense | $ 5,000,000 | $ 0 |
Segment Information Segment I60
Segment Information Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 3,800 | $ 2,805 | $ 7,804 | $ 6,570 |
Cost of sales | 3,372 | 2,409 | 6,825 | 5,625 |
Gross Profit | 428 | 396 | 979 | 945 |
Selling and administrative expenses | 435 | 338 | 919 | 798 |
Operating earnings | (7) | 58 | 60 | 147 |
Interest expense, net | 31 | 41 | 74 | 101 |
Equity in earnings of unconsolidated affiliates | 0 | 1 | 2 | 2 |
Earnings from continuing operations before tax | (38) | 18 | (12) | 48 |
Wholesale | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,738 | 1,731 | 5,294 | 4,006 |
Cost of sales | 2,620 | 1,652 | 5,053 | 3,818 |
Gross Profit | 118 | 79 | 241 | 188 |
Selling and administrative expenses | 57 | 21 | 118 | 66 |
Operating earnings | 61 | 58 | 123 | 122 |
Retail | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,022 | 1,033 | 2,415 | 2,464 |
Cost of sales | 752 | 758 | 1,772 | 1,808 |
Gross Profit | 270 | 275 | 643 | 656 |
Selling and administrative expenses | 328 | 287 | 705 | 660 |
Operating earnings | (58) | (12) | (62) | (4) |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 40 | 41 | 95 | 100 |
Cost of sales | 0 | (1) | 0 | (1) |
Gross Profit | 40 | 42 | 95 | 101 |
Selling and administrative expenses | 50 | 30 | 96 | 72 |
Operating earnings | $ (10) | $ 12 | $ (1) | $ 29 |
Commitments, Contingencies an61
Commitments, Contingencies and Off-Balance Sheet Arrangements - Additional Information (Detail) $ in Millions | May 25, 2017USD ($) | Sep. 01, 2016 | Sep. 08, 2015USD ($)Store | Mar. 21, 2013USD ($) | Aug. 31, 2014case | Sep. 09, 2017USD ($) | Sep. 10, 2016USD ($) | Sep. 09, 2017USD ($) | Sep. 10, 2016USD ($) | Feb. 28, 2015USD ($)intrusion | Sep. 09, 2017case | Sep. 09, 2017$ / d | Sep. 09, 2017$ / yr | Feb. 25, 2017USD ($) | Oct. 11, 2016USD ($) |
Guarantor Obligations [Line Items] | |||||||||||||||
Remaining terms for guarantees for other debt obligation minimum (less than) (in years) | 1 year | ||||||||||||||
Remaining terms for guarantees for other debt obligation maximum (in years) | 14 years | ||||||||||||||
Remaining term for guarantee for other debt obligation weighted average (in years) | 8 years | ||||||||||||||
Company's guarantee for debt obligations on outstanding indenture in connection with stock purchase agreement | $ 66 | $ 66 | |||||||||||||
Guarantor obligation maximum exposure discounted | 50 | 50 | |||||||||||||
Revenue | 3,800 | $ 2,805 | 7,804 | $ 6,570 | |||||||||||
Professional services agreement, base amount | 30 | ||||||||||||||
Receivables, net | 598 | 598 | $ 386 | ||||||||||||
Number of computer network intrusions | intrusion | 2 | ||||||||||||||
Payment data card, probationary status term (in years) | 2 years | ||||||||||||||
Insurance coverage amount | 90 | $ 50 | |||||||||||||
Amount of insurance deductible per incident | 3 | $ 1 | |||||||||||||
Non-cancelable future purchase obligations | 424 | $ 424 | |||||||||||||
Number of other retailers who have filed similar complaints in other jurisdictions | 3 | ||||||||||||||
Litigation settlement amount | $ 9 | ||||||||||||||
Office for Civil Rights of the U.S. Department of Health and Human Services Compliance Review | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Maximum range of possible loss per unit | 50,000 | 1,500,000 | |||||||||||||
New Albertsons Inc | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Company's guarantee for debt obligations on outstanding indenture in connection with stock purchase agreement | 88 | $ 88 | |||||||||||||
Guarantor obligation maximum exposure discounted | $ 79 | $ 79 | |||||||||||||
Haggen, Inc, Existing | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Number of stores | Store | 164 | ||||||||||||||
2014 Technology Intrusion | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Class action complaints filed | case | 4 | ||||||||||||||
Number of pending claims | case | 1 | ||||||||||||||
Judicial Ruling | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Number of other retailers who have filed similar complaints in other jurisdictions | 5 | ||||||||||||||
Pending Litigation | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Number of other retailers who have filed similar complaints in other jurisdictions | 1 | ||||||||||||||
Haggen, Inc | Settled Litigation | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Cash | $ 3 | ||||||||||||||
Administrative expense priority claim | 6 | ||||||||||||||
Trade Accounts Receivable | Haggen, Inc | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Receivables, net | $ 2 | ||||||||||||||
Trade Accounts Receivable | Haggen, Inc | Settled Litigation | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Receivables, net | $ 2 | ||||||||||||||
Other Claims Receivable | Haggen, Inc | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Bankruptcy claims, amount of claims filed | $ 8 | ||||||||||||||
Services Revenues | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Proceeds from aggregate fees | $ 50 | ||||||||||||||
Incremental aggregate fees | $ 6 | ||||||||||||||
Deferred Revenue | |||||||||||||||
Guarantor Obligations [Line Items] | |||||||||||||||
Revenue | $ 30 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Company's Operating Results and Certain Other Directly Attributable Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 09, 2017 | Sep. 10, 2016 | Sep. 09, 2017 | Sep. 10, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 0 | $ 49 | ||
Save-A-Lot and NAI | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 0 | $ 1,060 | 0 | 2,491 |
Cost of sales | 0 | 893 | 0 | 2,095 |
Gross profit | 0 | 167 | 0 | 396 |
Selling and administrative expenses | 0 | 135 | 1 | 319 |
Operating earnings (loss) | 0 | 32 | (1) | 77 |
Interest expense, net | 0 | 0 | 0 | 1 |
Earnings (loss) from discontinued operations before income taxes | 0 | 32 | (1) | 76 |
Income tax provision (benefit) | $ 0 | $ 12 | $ (1) | $ 29 |
Subsequent Events Subsequent 63
Subsequent Events Subsequent Events (Details) - USD ($) $ in Millions | Oct. 17, 2017 | Sep. 14, 2017 | Jul. 29, 2017 |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Potential termination fee | $ 7 | ||
Termination costs and expenses reimbursements | 0.5 | ||
Reverse termination fee | 9 | ||
AG Florida | |||
Subsequent Event [Line Items] | |||
Revenues | $ 650 | ||
AG Florida | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Payments to acquire businesses | $ 180 | ||
Joliet, Illinois | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Payments to acquire productive assets | $ 61 |