Document and Entity Information
Document and Entity Information - shares | 4 Months Ended | |
Jun. 16, 2018 | Jul. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 16, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SVU | |
Entity Registrant Name | SUPERVALU INC | |
Entity Central Index Key | 95,521 | |
Current Fiscal Year End Date | --02-23 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,623,859 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 4,755 | $ 3,517 |
Cost of sales | 4,327 | 3,086 |
Gross profit | 428 | 431 |
Selling and administrative expenses | 428 | 387 |
Operating earnings | 0 | 44 |
Interest expense, net | 49 | 43 |
Net periodic benefit income, excluding service cost | (12) | (17) |
Equity in earnings of unconsolidated affiliates | 0 | (2) |
(Loss) earnings from continuing operations before income taxes | (37) | 20 |
Income tax (benefit) provision | (10) | 11 |
Net (loss) earnings from continuing operations | (27) | 9 |
Income from discontinued operations, net of tax | 6 | 3 |
Net (loss) earnings including noncontrolling interests | (21) | 12 |
Less net earnings attributable to noncontrolling interests | 0 | (1) |
Net (loss) earnings attributable to SUPERVALU INC. | $ (21) | $ 11 |
Basic net (loss) earnings per share attributable to SUPERVALU INC.:(1) | ||
Continuing operations (in dollars per share) | $ (0.70) | $ 0.21 |
Discontinued operations (in dollars per share) | 0.15 | 0.08 |
Basic net earnings per share (in dollars per share) | (0.55) | 0.30 |
Diluted net (loss) earnings per share attributable to SUPERVALU INC.:(1) | ||
Continuing operations (in dollars per share) | (0.70) | 0.21 |
Discontinued operations (in dollars per share) | 0.15 | 0.08 |
Diluted net earnings per share (in dollars per share) | $ (0.55) | $ 0.30 |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 38 | 38 |
Diluted (in shares) | 38 | 38 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 4 Months Ended | ||
Jun. 16, 2018 | Jun. 17, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Net (loss) earnings including noncontrolling interests | $ (21) | $ 12 | |
Other comprehensive income: | |||
Recognition of pension and other postretirement benefit obligations(1) | [1] | 0 | 0 |
Recognition of interest rate swap cash flow hedge(2) | [2] | 0 | 0 |
Total other comprehensive income | 0 | 0 | |
Comprehensive (loss) income including noncontrolling interests | (21) | 12 | |
Less comprehensive income attributable to noncontrolling interests | 0 | (1) | |
Comprehensive (loss) income attributable to SUPERVALU INC. | $ (21) | $ 11 | |
[1] | Amounts are net of tax expense (benefit) of $0 and $(1) for the first quarters of fiscal 2019 and 2018, respectively. | ||
[2] | Amounts are net of tax expense of $0 and $1 for the first quarters of fiscal 2019 and 2018, respectively. |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Recognition of pension and other postretirement benefit income (loss), tax expense (benefit) | $ 0 | $ 1 |
Change in fair value of cash flow hedges, tax (benefit) expense | $ 0 | $ (1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Current assets | ||
Cash and cash equivalents | $ 37 | $ 41 |
Receivables, net | 632 | 590 |
Inventories, net | 1,013 | 981 |
Other current assets | 135 | 119 |
Current assets of discontinued operations | 84 | 130 |
Total current assets | 1,901 | 1,861 |
Property, plant and equipment, net | 1,048 | 1,342 |
Goodwill | 775 | 780 |
Intangible assets, net | 121 | 131 |
Deferred tax assets | 61 | 63 |
Other assets | 131 | 126 |
Long-term assets of discontinued operations | 65 | 84 |
Total assets | 4,102 | 4,387 |
Current liabilities | ||
Accounts payable | 1,133 | 1,139 |
Accrued vacation, compensation and benefits | 184 | 187 |
Current maturities of long-term debt and capital lease obligations | 25 | 34 |
Other current liabilities | 111 | 106 |
Current liabilities of discontinued operations | 78 | 82 |
Total current liabilities | 1,531 | 1,548 |
Long-term debt | 1,432 | 1,724 |
Long-term capital lease obligations | 141 | 149 |
Pension and other postretirement benefit obligations | 249 | 265 |
Long-term tax liabilities | 51 | 44 |
Other long-term liabilities | 195 | 133 |
Long-term liabilities of discontinued operations | 15 | 17 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock, $0.01 par value: 57 shares authorized; 39 and 38 shares issued, respectively | 0 | 0 |
Capital in excess of par value | 2,852 | 2,848 |
Treasury stock, at cost, 0 and 0 shares, respectively | (3) | (3) |
Accumulated other comprehensive loss | (271) | (210) |
Accumulated deficit | (2,090) | (2,130) |
Total SUPERVALU INC. stockholders’ equity | 488 | 505 |
Noncontrolling interests | 0 | 2 |
Total stockholders’ equity | 488 | 507 |
Total liabilities and stockholders’ equity | $ 4,102 | $ 4,387 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 57 | 57 |
Common stock, shares issued | 39 | 38 |
Treasury stock, shares | 0 | 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity (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. 25, 2017 | $ 383 | $ 0 | $ 2,831 | $ (2) | $ (278) | $ (2,175) | $ 376 | $ 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | 12 | 11 | 11 | 1 | ||||
Other comprehensive income, net of tax of $0 and $0, respectively | 0 | 0 | 0 | |||||
Stock-based compensation | 6 | 6 | 6 | |||||
Distributions to noncontrolling interests | (2) | (2) | ||||||
Shares traded for taxes and other | (2) | (2) | (1) | (3) | 1 | |||
Ending balance at Jun. 17, 2017 | 397 | 0 | 2,835 | (3) | (278) | (2,164) | 390 | 7 |
Beginning balance at Feb. 24, 2018 | 507 | 0 | 2,848 | (3) | (210) | (2,130) | 505 | 2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings | (21) | (21) | (21) | |||||
Cumulative effect of accounting standard adoptions | (61) | 61 | ||||||
Other comprehensive income, net of tax of $0 and $0, respectively | 0 | 0 | 0 | |||||
Stock-based compensation | 6 | 6 | 6 | |||||
Distributions to noncontrolling interests | (2) | (2) | ||||||
Shares traded for taxes and other | (2) | (2) | 0 | (2) | ||||
Ending balance at Jun. 16, 2018 | $ 488 | $ 0 | $ 2,852 | $ (3) | $ (271) | $ (2,090) | $ 488 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Accumulated Other Comprehensive Loss | ||
Other comprehensive income, tax | $ 0 | $ 0 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Cash flows from operating activities | ||
Net (loss) earnings including noncontrolling interests | $ (21) | $ 12 |
Income from discontinued operations, net of tax | 6 | 3 |
Net (loss) earnings from continuing operations | (27) | 9 |
Adjustments to reconcile Net (loss) earnings from continuing operations to Net cash (used in) provided by operating activities – continuing operations: | ||
Asset impairment and other charges | 8 | 0 |
Loss on debt extinguishment | 7 | 5 |
Net gain on sale of assets and exits of surplus leases | (6) | (4) |
Depreciation and amortization | 67 | 53 |
LIFO charge | 2 | 1 |
Deferred income taxes | 2 | 8 |
Stock-based compensation | 6 | 6 |
Net periodic benefit income, excluding service cost | (12) | (17) |
Contributions to pension and other postretirement benefit plans | (5) | (1) |
Other adjustments | 3 | 8 |
Changes in operating assets and liabilities, net of effects from business acquisitions | (109) | (38) |
Net cash (used in) provided by operating activities—continuing operations | (64) | 30 |
Net cash provided by (used in) operating activities—discontinued operations | 6 | (38) |
Net cash used in operating activities | (58) | (8) |
Cash flows from investing activities | ||
Proceeds from sale of assets | 385 | 4 |
Purchases of property, plant and equipment | (70) | (81) |
Net cash provided by (used in) investing activities—continuing operations | 315 | (77) |
Net cash provided by investing activities—discontinued operations | 57 | 0 |
Net cash provided by (used in) investing activities | 372 | (77) |
Cash flows from financing activities | ||
Proceeds from revolving credit facility | 1,292 | 49 |
Payments on revolving credit facility | (1,224) | (49) |
Proceeds from issuance of debt | 10 | 550 |
Payments of debt and capital lease obligations | (389) | (532) |
Payments for shares traded for taxes | (2) | (3) |
Distributions to noncontrolling interests | (3) | (8) |
Payments for debt financing costs | (2) | (2) |
Net cash (used in) provided by financing activities—continuing operations | (318) | 5 |
Net cash (used in) provided by financing activities—discontinued operations | (2) | 0 |
Net cash (used in) provided by financing activities | (320) | 5 |
Net decrease in cash and cash equivalents | (6) | (80) |
Cash and Cash Equivalents at beginning of period | 48 | 332 |
Cash and Cash Equivalents at the end of period | 42 | 252 |
Less cash and cash equivalents of discontinued operations at end of period | (5) | (6) |
Cash and cash equivalents of continuing operations at end of period | 37 | 246 |
Non-cash investing and financing activities were as follows: | ||
Purchases of property, plant and equipment included in Accounts payable | 17 | 13 |
Capital lease asset additions | 0 | 1 |
Interest and income taxes paid: | ||
Interest paid, net of amounts capitalized | 50 | 47 |
Income taxes (refunded) paid, net | $ (1) | $ 37 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 4 Months Ended |
Jun. 16, 2018 | |
Accounting Policies [Abstract] | |
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 first quarters ended June 16, 2018 and June 17, 2017 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 our Annual Report on Form 10-K for the fiscal year ended February 24, 2018 . The results of operations for the first quarter ended June 16, 2018 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 our Annual Report on Form 10-K for the fiscal year ended February 24, 2018 . Fiscal Year Our fiscal years end on the last Saturday of February and contain either 52 or 53 weeks. References to the first quarter of fiscal 2019 and 2018 relate to the 16 week fiscal quarters ended June 16, 2018 and June 17, 2017 , respectively. Use of Estimates The preparation of our 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 We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Our banking arrangements allow us to fund outstanding checks when presented to the financial institution for payment. We fund 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 June 16, 2018 and February 24, 2018 , we had net book overdrafts of $116 and $144 , respectively. Inventories, Net Inventories are valued at the lower of cost or market. Substantially all of our inventories consist of finished goods and a substantial portion of our inventories have a last-in, first-out (“LIFO”) reserve applied. Interim LIFO calculations are based on our 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 $201 and $199 at June 16, 2018 and February 24, 2018 , respectively. We recorded a LIFO charge of $2 and $1 for the first quarters ended June 16, 2018 and June 17, 2017 , respectively. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Standards | 4 Months Ended |
Jun. 16, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In March 2018, the Financial Accounting Standards Board (the “FASB”) issued authoritative guidance under accounting standard update (“ASU”) 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. ASU 2018-05 allows for the recognition of provisional amounts in the event that the accounting is not complete and a reasonable estimate can be made for the impact of the Tax Cuts and Jobs Act (the “Tax Act”). The guidance allows for a measurement period of up to one year from the enactment date of the Tax Act to finalize the accounting related to the Tax Act. We adopted the SEC Staff Accounting Bulletin No. 118 when it was released in the fourth quarter of fiscal 2018. Refer to Note 14—Income Taxes for more information and disclosure related to this guidance. In February 2018, the FASB issued authoritative guidance under ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 provides that the stranded tax effects in Accumulated other comprehensive income or loss resulting from the Tax Act may be reclassified to Retained earnings or Accumulated deficit. We early adopted this guidance in the first quarter of fiscal 2019. As a result of the adoption, we reclassified $61 from Accumulated other comprehensive loss into Accumulated deficit for these stranded tax effects. 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. We adopted this guidance in the first quarter of fiscal 2019, which resulted in the reclassification of non-service cost components of net periodic benefit income, as disclosed in Note 10—Benefit Plans , to an other income and expense line titled “ Net periodic benefit income, excluding service cost ” in the Condensed Consolidated Statements of Operations. The following table summarizes the impacts of adopting ASU 2017-07: June 17, 2017 As Previously Reported Impact of ASU 2017-07 Adoption As Recast Selling and administrative expenses $ 370 $ 17 $ 387 Operating earnings $ 61 $ (17 ) $ 44 Net periodic benefit income, excluding service cost $ — $ (17 ) $ (17 ) 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. We adopted this guidance in the first quarter of fiscal 2019. The adoption did not impact the presentation of our Condensed Consolidated Statements of Cash Flows. In May 2014, the FASB issued authoritative guidance under ASU 2014-09, Revenue from Contracts with Customers (Topic 606): 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 promised goods or services to a customer at an amount that reflects the consideration entities expect to be entitled to in exchange for those goods or services. We adopted this guidance in the first quarter of fiscal 2019, as permitted by ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . Our adoption includes 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; ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers; and ASU 2017-14, Income Statement-Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606). We refer to these standards collectively as ASC 606, and our prior revenue recognition under Topic 605 as ASC 605. We adopted ASC 606 in the first quarter of fiscal 2019 by using the modified retrospective method. The adoption of ASC 606 did not have a material effect on our results of operations, financial position, or cash flows. The identification of performance obligations, and the recognition of sales under those performance obligations, including the unit of accounting for such performance obligations, is consistent with our prior revenue recognition practice. The adoption of ASC 606 resulted in an insignificant change in our revenue recognition practices with respect to customer incentives, the timing of transfer of control of product sales and the recognition of Retail advertising and loyalty programs. Under ASC 606, we now recognize incentives that do not have any repayment obligation over the expected term of the expected purchases related to such incentives. Historically, the majority of our customer contracts contained repayment provisions, which were accordingly amortized into net sales over the contract period. Under ASC 605, if the customer contract did not contain a repayment provision the payment was recognized as contra within Net sales in the period paid. Accordingly, on February 25, 2018 (the first day of fiscal 2019), we recognized an increase in Other assets of $1 and a corresponding after-tax increase in Accumulated deficit of $0 that resulted from the previous expensing of certain customer incentives related to contracts that did not contain a repayment provision. Under ASC 606, we primarily recognize revenue upon shipment to our customer based on the nature of our contracts, which is generally consistent with our prior practice. We previously did not recognize revenue and the related cost of sales for product sales until they were delivered to our customers under the risk and rewards based guidance under ASC 605; however, under ASC 606, we now recognize revenue upon the shipment of product to our customers. On February 25, 2018 (the first day of fiscal 2019), we recognized a cumulative adjustment within Accumulated deficit of $0 that had the effect of increasing Net sales, Cost of sales and Accounts receivable, and a corresponding decrease in Inventory, net of $3 . Under ASC 606, we have adjusted our accounting for certain advertising income and fuel rewards. Advertising income earned from our franchisees that participate in our Retail advertising program are now recognized as Net sales under ASC 606, rather than as a reduction of advertising expenses within Cost of sales under our prior ASC 605 revenue recognition practices. In addition, we now recognize loyalty program expense in the form of fuel rewards as a reduction of Net sales, rather than in Cost of sales under our prior ASC 605 revenue recognition practices. We recognized an increase to Net sales of $2 and a corresponding decrease to Cost of sales related to the adoption of ASC 605 for our advertising income and fuel rewards. Refer to Note 3—Revenue Recognition for additional information on our adoption of ASC 606. Recently Issued Accounting Standards In January 2017, the FASB issued authoritative guidance under ASU 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating step 2 of the goodwill impairment test. If a reporting unit fails step 1 of the goodwill impairment test, entities are no longer required to compute the implied fair value of goodwill following the same procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. ASU 2017-04 requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. We are required to adopt this new guidance in the first quarter of fiscal 2021. We are currently evaluating the potential impact of adoption of this standard on our 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. We are required to adopt this new guidance in the first quarter of fiscal 2021. We are currently evaluating the potential impact of adoption of this standard on our 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, we will be required to recognize most leases on our balance sheet at the beginning of the earliest comparative period presented with a corresponding adjustment to stockholders’ equity. ASU 2016-02 requires us to capitalize most current operating lease obligations as right-of-use assets with a corresponding liability based on the present value of future operating lease obligations. 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. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. We are required to adopt this new guidance in the first quarter of fiscal 2020. ASU 2016-02 must be adopted using a modified retrospective transition, applying the new criteria to all leases existing or entered into after the beginning of the earliest comparative period in the consolidated financial statements. The modified retrospective approach includes a number of optional practical expedients that we may elect to apply. Expanded disclosures with additional qualitative and quantitative information will also be required. The adoption will include updates as provided under ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 . We are required to adopt this new guidance in the first quarter of fiscal 2020. We are currently evaluating the potential impact of adoption of this standard on our consolidated financial statements. For our off-balance sheet operating leases subject to capitalization under ASU 2016-02, other than those reserved for as a closed property, certain agreements that may be deemed leases under Topic 842 and the application of other provisions of Topic 842, refer to total operating lease obligations within Note 9—Leases . |
Revenue Recognition
Revenue Recognition | 4 Months Ended |
Jun. 16, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition Accounting Policy We recognize revenue in an amount that reflects the consideration that is expected to be received for goods or services when our performance obligations are satisfied by transferring control of those promised goods or services to our customers. ASC 606 defines a five-step process to recognize revenue that requires judgment and estimates, including identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue as the performance obligation is satisfied. Revenues from Wholesale product sales are recognized when control is transferred, which typically happens upon shipment. Typically, invoicing, shipping and customer receipt of Wholesale product occur on the same business day. Discounts and allowances provided to customers are recognized as a reduction in Net sales as control of the products is transferred to customers. We recognize freight revenue related to transportation of product sales when control of the product is transferred. Revenues from Retail product sales are recognized at the point of sale upon customer check-out. Sales tax is excluded from Net sales. Limited rights of return exist with our customers due to the nature of the products we sell. Advertising income earned from our franchisees that participate in our Retail advertising program are recognized as Net sales. We recognize loyalty program expense in the form of fuel rewards as a reduction of Net sales. Product sales We enter into Wholesale supply, customer, and rebate agreements that provide terms and conditions of our order fulfillment. Our supply and rebate agreements often specify levels of required minimum purchases in order to earn certain rebates or incentives. Certain contracts include rebates and other forms of variable consideration, including rebates provided up-front, over time or at the end of a contract term. Certain customer agreements provide for the right to license one or more of our tradenames, such as FESTIVAL FOODS ® , SENTRY ® , COUNTY MARKET ® , NEWMARKET ® , FOODLAND ® , JUBILEE ® and SUPERVALU ® . We do not separately charge for the right to license our tradenames. We believe that these tradenames are capable of being distinct, but are not capable of being distinct within the context of the contracts with our customers. Accordingly, we do not separately recognize revenue related to tradenames utilized by our customers. In addition, we enter into franchise agreements that separately charge our customers, who we also provide wholesale product supply to, for the right to use our CUB FOODS ® tradename. We recognize franchise agreement revenue within Net sales. We enter into distribution agreements with manufacturers to provide wholesale supply to the Defense Commissary Agency (“DeCA”) and other government agency locations. DeCA contracts with manufacturers to obtain grocery products for the commissary system. We contract with manufacturers to distribute products to the commissaries after being authorized by the manufacturers to be a military distributor to DeCA. We must adhere to DeCA’s delivery system procedures governing matters such as product identification, ordering and processing, information exchange and resolution of discrepancies. DeCA identifies the manufacturer with which an order is to be placed, determines which distributor is contracted by the manufacturer for a particular commissary or exchange location, and then places a product order with that distributor that is covered under DeCA’s master contract with the applicable manufacturer. We supply product from our existing inventory, deliver it to the DeCA designated location, and bill the manufacturer for the product price plus a drayage fee. The manufacturer then bills DeCA under the terms of its master contract. We recognize revenue when control of the product passes to the DeCA designated location. In transactions for goods or services where we engage third-parties to participate in our order fulfillment process, we evaluate whether we are the principal or an agent in the transaction. Our analysis considers whether we control the goods or services before they are transferred to our customer, including an evaluation of whether we have the ability to direct the use of, and obtain substantially all the remaining benefits from, the specified good or service before it is transferred to our customer. Agent transactions primarily reflect circumstances where we are not involved in order fulfillment or where we are involved in the order fulfillment but are not contractually obligated to purchase the related goods or services from vendors, and instead extend Wholesale customers credit by paying vendor trade accounts payable and do not control products prior to their sale. Under ASC 606, if we determine that we are acting in an agent capacity, we record transactions on a net basis. If we determine that we are acting in a principal capacity, we record transactions on a gross basis. We also evaluate vendor sales incentives to determine whether they reduce our transaction price with our customers. Our analysis considers which party tenders the incentive, whether the incentive reflects a direct reimbursement from a vendor, whether the incentive is influenced by or negotiated in conjunction with any other incentive arrangements and whether the incentive is subject to an agency relationship with the vendor, whether expressed or implied. Typically, when vendor incentives are offered directly by vendors to our customers, require the achievement of vendor-specified requirements to be earned by our customers, and are not negotiated by us or in conjunction with any other incentive agreement whereby we do not control the direction or earning of these incentives, then we do not reduce Net sales as part of our determination of the transaction price. In circumstances where the vendors provide us consideration to promote the sale of their goods and we determine the specific performance requirements for our customers to earn these incentives from us, we reduce Net sales for these customer incentives as part of our determination of the transaction price. Customer incentives We provide incentives to our Wholesale customers in various forms established under the applicable agreement, including advances, payments over time that are earned by achieving specified purchasing thresholds, and upon the passage of time. We typically recognize customer incentives within Other assets and Other current assets and we typically recognize customer incentive payments that are based on expected purchases over the term of the agreement within Net sales. To the extent that our transaction price for product sales includes variable consideration, such as certain of these customer incentives, we estimate the amount of variable consideration that should be included in the transaction price primarily by utilizing the expected value method. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the agreement will not occur. We believe that there will not be significant changes to our estimates of variable consideration. Customer incentive assets are reviewed for impairment when circumstances exist for which we no longer expect to recover the applicable customer incentives. Professional services and equipment sales We provide our Wholesale customers with professional services, including retail store support, advertising, couponing, e-commerce, network and data hosting solutions, training and certifications classes, and administrative back-office solutions. These Wholesale services typically contain single performance obligations for each respective service, in which case such services revenues are recognized when delivered. Advertising services primarily reflect the creation and distribution of circulars and other media that are recognized upon delivery to our customer. Wholesale equipment sales are recorded as direct sales to our customers when shipped, consistent with our recognition of product sales. For Wholesale services that consist of multiple performance obligations, including any combination of our deliverables, we use our judgment to determine whether the promised deliverables are capable of being distinct and are in fact distinct. For our transition services agreements with each of Albertson’s LLC and New Albertsons’s, Inc. (collectively, the “TSA”), and for our professional services agreement with Moran Foods (the “Services Agreement”), we provide a series of bundled back-office support activities that we recognize on an as-invoiced basis. TSA revenues are invoiced based on the number of stores and distribution centers we service, which vary across the period of the contract. Services Agreement revenues are recognized based on the monthly invoices for services provided. Disaggregation of Revenues The following table details our revenue recognition for the periods presented by type of products and services and type of customer for each of our segments: First Quarter Fiscal 2019 First Quarter Fiscal 2018 Product or service type Wholesale Retail Corporate Total Wholesale Retail Corporate Total Nonperishable grocery products (1) $ 2,617 $ 483 $ — $ 3,100 $ 1,749 $ 488 $ — $ 2,237 Perishable grocery products (2) 1,134 321 — 1,455 760 319 — 1,079 Pharmacy products — 90 — 90 — 92 — 92 Services revenue 41 5 40 86 28 5 55 88 Equipment sales 9 — — 9 9 — — 9 Other 13 2 — 15 10 2 — 12 Net sales $ 3,814 $ 901 $ 40 $ 4,755 $ 2,556 $ 906 $ 55 $ 3,517 Type of customer: Retailers $ 3,675 $ — $ 40 $ 3,715 $ 2,408 $ — $ 55 $ 2,463 Military 133 — — 133 143 — — 143 Individuals — 894 — 894 — 899 — 899 Other 6 7 — 13 5 7 — 12 Net sales $ 3,814 $ 901 $ 40 $ 4,755 $ 2,556 $ 906 $ 55 $ 3,517 (1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, specialty products, home, health and beauty care and candy. (2) Includes such items as meat, produce, deli, bakery and floral. We serve customers in the United States and internationally. However, all of our revenue is earned in the U.S. and international distribution occurs through freight-forwarders. We do not have any performance obligations on international shipments subsequent to delivery to the domestic port. Contract Balances We do not typically incur costs that are required to be capitalized in connection with obtaining a contract with a customer. Our expenses related to contract origination primarily relate to employee costs that we would incur regardless of whether the contract was obtained with the customer. We typically do not have any performance obligations to deliver products under our contracts until our customers submit a purchase order, as we stand ready to deliver product upon receipt of a purchase order under our contracts with our customers. We do not typically receive pre-payments from our customers. In addition, as our services contracts typically allow us to invoice our customers for the value of the performance provided, we have applied the practical expedient under ASC 606 to omit disclosure regarding remaining performance obligations. Customer payments are due when goods or services are transferred to the customer and are typically not conditional on anything other than payment terms, which typically range from due prior to shipment to less than 30 days. Since no significant financing components exist between the period of time we transfer goods or services to the customer and when we receive payment for those goods or services, we have elected not to adjust our revenue recognition policy to recognize financing components. Customer incentives are not considered contract assets as they are not generated through the transfer of goods or services to the customers. No contract assets exist for any period reported within these Condensed Consolidated Financial Statements. Accounts and notes receivable are as follows: June 16, 2018 February 24, 2018 Customer accounts receivable $ 549 $ 519 Customer notes receivable 14 15 Other receivables 79 70 Allowance for doubtful accounts (10 ) (14 ) Accounts receivable, net $ 632 $ 590 Long-term notes receivable $ 43 $ 39 |
Business Acquisitions
Business Acquisitions | 4 Months Ended |
Jun. 16, 2018 | |
Business Combinations [Abstract] | |
Business Acquisition | Acquisition of Associated Grocers of Florida, Inc. and Unified Grocers, Inc. On December 8, 2017 , we completed the acquisition of Associated Grocers of Florida, Inc. (“AG Florida”) pursuant to the terms of an Agreement and Plan of Merger dated October 17, 2017 (the “AG Merger Agreement”) by and among Supervalu, a then wholly owned subsidiary of Supervalu (“AG Merger Sub”), and AG Florida. AG Florida was a retailer-owned cooperative. AG Florida distributes full lines of grocery and general merchandise to independent retailers, primarily in South Florida, the Caribbean, Central and South America and Asia. The transaction was valued at $193 , comprised of $131 in cash for 100 percent of the outstanding stock of AG Florida plus the assumption and payoff of AG Florida’s net debt of $62 at closing. We incurred merger and integration costs of $3 in the first quarter of fiscal 2019 related to the AG Florida acquisition. On June 23, 2017 , we 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. The transaction was 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. We incurred merger and integration costs of $3 in the first quarter of fiscal 2019 related to the Unified acquisition. The purchase price allocation for Unified was completed in the first quarter of fiscal 2019 . The table immediately below summarizes the preliminary fair values assigned to AG Florida’s acquired net assets. As of June 16, 2018 , the fair value allocation of the acquisition was preliminary and will be finalized when the valuation is completed. There can be no assurance that such finalization will not result in material changes from the preliminary purchase price allocation. Our estimates and assumptions are subject to change during the measurement period (up to one year from the acquisition date), as we finalize the valuations of certain tangible and intangible assets acquired and liabilities assumed in connection with the acquisition. The primary areas of the purchase price allocations that are not yet finalized relate to real property, identifiable intangible assets, goodwill, income taxes and deferred taxes. As Originally Reported As Cash and cash equivalents $ 1 $ 1 Accounts receivable 49 49 Inventories 48 48 Other current assets 4 4 Property, plant and equipment 84 94 Goodwill 44 39 Intangible assets 52 48 Deferred tax assets (28 ) (29 ) Other assets 4 4 Accounts payable (53 ) (53 ) Other current liabilities (13 ) (13 ) Long-term debt and capital lease obligations (60 ) (60 ) Other liabilities assumed (1 ) (1 ) Total fair value of net assets acquired 131 131 Assumed obligations to make patronage payments to member-owners 5 5 Less cash acquired (1 ) (1 ) Total consideration for acquisition, less cash acquired $ 135 $ 135 Recognized goodwill is primarily attributable to expected synergies from combining operations, as well as intangible assets that do not qualify for separate recognition. As of June 16, 2018 , we recognized the following finite-lived intangible assets of AG Florida: Estimated Useful Life (in years) Amounts Acquired Customer relationships and supply agreements 15 years $ 43 Favorable operating leases 2-5 years 5 Total AG Florida finite-lived intangibles acquired $ 48 Combined Results The following unaudited pro forma condensed consolidated financial results of operations are presented as if the AG Florida and Unified acquisitions were consummated on February 26, 2017, the beginning of the comparable prior annual reporting period: June 17, 2017 (1) Net sales $ 4,869 Net earnings from continuing operations attributable to SUPERVALU INC. $ 5 Basic net earnings from continuing operations per share attributable to SUPERVALU INC. $ 0.14 Diluted net earnings from continuing operations per share attributable to SUPERVALU INC. $ 0.14 (1) The unaudited pro forma financial information is based on Unified’s and AG Florida’s historical reporting periods. The results reflect Unified’s and AG Florida’s 16 weeks ended June 17, 2017 and May 6, 2017, respectively. Adjustments have been made to remove historical transaction costs from Unified’s and AG Florida’s historical income statements. No adjustments have been made for direct and indirect merger and integration costs that were incurred subsequent to the respective acquisition dates of Unified and AG Florida. As required by accounting principles generally accepted in the United States, 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 acquisitions occurred at the beginning of the period being presented, nor are they indicative of future results of operations. |
Reserves for Closed Properties
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges | 4 Months Ended |
Jun. 16, 2018 | |
Property, Plant and Equipment [Abstract] | |
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges | Reserves for Closed Properties Changes in reserves for closed properties consisted of the following: June 16, Reserves for closed properties at beginning of the fiscal year $ 14 Additions 7 Payments (2 ) Adjustments (1 ) Reserves for closed properties at the end of period $ 18 In the first quarter of fiscal 2019, we recorded closed property reserves for 11 Farm Fresh stores as a result of their closure. Reserves were recorded net of estimated subtenant recoveries. These store closure reserves will be paid over the remaining lease terms, which range from one to ten years. 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: First Quarter Ended June 16, June 17, Property, plant and equipment: Carrying value $ 5 $ — Fair value measured using Level 3 inputs 1 — Impairment charge $ 4 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 4 Months Ended |
Jun. 16, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Changes in the carrying value of Goodwill by reporting unit that have goodwill consisted of the following: February 24, Additions Impairments Other net adjustments June 16, Wholesale goodwill $ 780 $ — $ — $ (5 ) $ 775 Identifiable intangible assets consisted of the following: June 16, 2018 February 24, 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer lists, supply agreements, prescription files and other $ 173 $ (70 ) $ 103 $ 177 $ (66 ) $ 111 Favorable operating leases 21 (8 ) 13 21 (6 ) 15 Total finite-life intangibles 194 (78 ) 116 198 (72 ) 126 Indefinite-lived tradename intangibles 5 — 5 5 — 5 Total intangibles $ 199 $ (78 ) $ 121 $ 203 $ (72 ) $ 131 Amortization expense of intangible assets with finite useful lives was $5 and $3 for the first quarters ended June 16, 2018 and June 17, 2017 , respectively. There were no impairment charges for the first quarters ended June 16, 2018 and June 17, 2017 . The estimated future amortization expense for the remainder of fiscal 2019 and for the next five fiscal years on intangible assets outstanding as of June 16, 2018 consists of the following: Remaining Fiscal 2019 2020 2021 2022 2023 2024 Estimated amortization expense $ 9 $ 12 $ 12 $ 10 $ 10 $ 8 |
Fair Value Measurements
Fair Value Measurements | 4 Months Ended |
Jun. 16, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Recurring fair value measurements were as follows: June 16, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Interest rate swap derivative Other current assets $ — $ 1 $ — $ 1 Mutual funds Other current assets 2 — — 2 Mutual funds Other assets 2 — — 2 Total $ 4 $ 1 $ — $ 5 February 24, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Mutual funds Other assets $ 4 $ — $ — $ 4 Total $ 4 $ — $ — $ 4 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 $0 and $1 in the first quarters of fiscal 2019 and 2018 , respectively. As of June 16, 2018 , a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swap by approximately $2 and a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swap by approximately $2 . Fair Value Estimates For certain of our 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 less than their carrying amount by approximately $2 and $1 as of June 16, 2018 and February 24, 2018 , 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 our long-term debt was higher than the carrying amount, excluding debt financing costs, by approximately $11 and $23 as of June 16, 2018 and February 24, 2018 , respectively. 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 | 4 Months Ended |
Jun. 16, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our long-term debt consisted of the following: Average Interest Rate at June 16, 2018 Maturity Year June 16, February 24, Secured Term Loan Facility - variable rate 5.48% 2024 $ 698 $ 834 Senior Notes - fixed rate 6.75% 2021 180 400 Senior Notes - fixed rate 7.75% 2022 350 350 Revolving ABL Credit Facility - variable rate 4.24% 2021 195 127 Other secured loans - variable rate 5.00% 2022-2023 31 48 Debt financing costs, net (20 ) (24 ) Original issue discount on debt (2 ) (3 ) Total debt 1,432 1,732 Less current maturities of long-term debt — (8 ) Long-term debt $ 1,432 $ 1,724 Our credit facilities and certain long-term debt agreements have restrictive covenants and cross-default provisions, which generally provide, subject to our 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. We were in compliance with all such covenants and provisions for all periods presented. Senior Secured Credit Agreements Borrowings under the Secured Term Loan Facility due June 2024 (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 . The Secured Term Loan Facility will mature on June 8, 2024. However, if we have not repaid our 6.75 percent Senior Notes due June 2021 or our 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 agreement amending and restating our secured term loan facility due March 2019, we 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. The Secured Term Loan Facility is secured by substantially all of our real estate, equipment and certain other assets. The Secured Term Loan Facility is guaranteed by our 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 June 16, 2018 and February 24, 2018 , there was $518 and $710 , 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 our $1,000 asset-based revolving credit facility (the “Revolving ABL Credit Facility”). As of June 16, 2018 and February 24, 2018 , $0 and $8 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. Pursuant to the Secured Term Loan Facility, we 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. We 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 our 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 our Excess Cash Flow in fiscal 2018, no prepayment was required in the first quarter of fiscal 2019. The potential amount of prepayment from Excess Cash Flow in fiscal 2019 that may be required in fiscal 2020 is not reasonably estimable as of June 16, 2018 . On May 2, 2018, we made a mandatory prepayment on the Secured Term Loan Facility of $34 in connection with the sale of certain of our Farm Fresh stores. Additionally, on May 9, 2018, we made a mandatory prepayment on the Secured Term Loan Facility of $100 in connection with the sale leaseback of certain of our owned distribution centers. Non-cash charges of $2 for the write-off of existing unamortized financing costs and original issuance discount were incurred as a result of these mandatory prepayments. 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) : June 16, 2018 February 24, 2018 Certain inventory assets included in Inventories, net and Current assets of discontinued operations $ 1,306 $ 1,176 Certain receivables included in Receivables, net and Current assets of discontinued operations 436 410 Certain amounts included in Cash and cash equivalents and Current assets of discontinued operations 20 20 (1) The Revolving ABL Credit Facility is also secured by all of our pharmacy scripts included in Intangible assets, net. Unused available credit and fees under the Revolving ABL Credit Facility: June 16, 2018 February 24, 2018 Outstanding letters of credit $ 57 $ 57 Letters of credit fees 1.375 % 1.375 % Unused available credit 748 816 Unused facility fees 0.25 % 0.25 % 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 our material subsidiaries are co-borrowers under the Revolving ABL Credit Facility, and this facility is guaranteed by the rest of our 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 our outstanding debt instruments and leases. Both the Secured Term Loan Facility and the Revolving ABL Credit Facility limit our 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 and share repurchases. The Secured Term Loan Facility allows up to $125 of Restricted Payments regardless of the resulting pro forma Total Leverage Ratio (as defined in the facility). The Secured Term Loan Facility caps the aggregate amount of additional Restricted Payments that may be made over the life of the Secured Term Loan Facility, with the additional Restricted Payments being subject to a pro forma Total Secured Leverage Ratio requirement (as defined in the facility) of 3.5 to 1. That aggregate cap can fluctuate over time and the cap could be reduced by certain other actions we may take, including prepayments of debt other than the senior notes and Permitted Investments (as defined in the Secured Term Loan Facility). As of June 16, 2018 , this aggregate cap was approximately $502 . The Senior Term Loan Facility permits unlimited Restricted Payments if the Total Leverage Ratio (as defined in the Senior Term Loan Facility) after giving effect thereto would be less than 2.0 to 1. 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 senior note and other prepayments made by us. The Revolving ABL Credit Facility permits unlimited Restricted Payments as long as the Payment Conditions (as defined in the Revolving ABL Credit Facility) are met. Debentures On June 11, 2018, we partially redeemed the 6.75 percent Senior Notes due June 2021 (the “2021 Notes”) in an aggregate principal amount of $220 . We paid the applicable redemption premium of approximately $4 , which was expensed, and incurred non-cash charges of $1 for the write off of existing unamortized financing charges on the redeemed 2021 Notes. The $180 of the 2021 Notes 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. We were in compliance with all such covenants and provisions for all periods presented. |
Leases
Leases | 4 Months Ended |
Jun. 16, 2018 | |
Leases [Abstract] | |
Lessee And Lessor Lease Disclosure | On May 9, 2018, we received $382 in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of seven of our distribution centers as part of our previously announced agreement to sell eight of our owned distribution centers. Subject to customary closing conditions, the sale of the eighth distribution center is expected to close in the third quarter of fiscal 2019 and generate $101 of proceeds. For the distribution centers sold, we have entered into lease agreements with initial terms of 20 years with five, five-year renewal options that qualified for sale-leaseback accounting and have been classified as operating leases. In the first quarter of fiscal 2019, we deferred a $91 gain on the sale of the seven distribution centers, which is classified in Other long-term liabilities and Other current liabilities. We lease most of our Retail stores and certain distribution centers, office facilities and equipment from third parties. Many of these leases include renewal options and, in certain instances, also include options to purchase. Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following: First Quarter Ended June 16, June 17, Minimum rent $ 38 $ 27 Contingent rent — 1 Rent expense (1) 38 28 Less subtenant rentals (10 ) (8 ) Total net rent expense $ 28 $ 20 (1) Rent expense as presented here includes $3 and $4 , respectively, of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the historical expense to be included within continuing operations, as we expect to remain primarily obligated under these leases. Future minimum lease payments to be made by us or certain third parties in the case of assigned leases for noncancellable operating leases and capital leases as of June 16, 2018 consisted of the amounts presented in the following table. These amounts have not been reduced for future minimum subtenant rentals under certain operating subleases, including assignments. Lease Obligations Fiscal Year Operating Leases Capital Leases Remaining Fiscal 2019 $ 71 $ 27 2020 110 38 2021 105 34 2022 91 30 2023 79 23 Thereafter 835 84 Total future minimum obligations $ 1,291 236 Less interest (70 ) Present value of net future minimum obligations 166 Less current capital lease obligations (25 ) Long-term capital lease obligations $ 141 We lease certain property to third parties under operating, capital and direct financing leases, including assigned leases that we are obligated to the future payment of minimum lease payment obligations that are included in our future minimum lease obligations table above. Future minimum lease and subtenant rentals to be received under noncancellable operating and deferred financing income leases, under which we are the lessor, as of June 16, 2018 , consisted of the following: Lease Receipts Fiscal Year Operating Leases Direct Financing Leases Remaining Fiscal 2019 $ 16 $ — 2020 24 1 2021 20 — 2022 17 — 2023 11 — Thereafter 32 — Total minimum lease receipts $ 120 $ 1 |
Benefit Plans
Benefit Plans | 4 Months Ended |
Jun. 16, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Net periodic benefit income and contributions for defined benefit pension and other postretirement benefit plans consisted of the following: First Quarter Ended Pension Benefits Other Postretirement Benefits June 16, June 17, June 16, June 17, Interest cost $ 28 $ 24 $ — $ — Expected return on assets (40 ) (40 ) — — Amortization of prior service benefit — — (4 ) (5 ) Amortization of net actuarial loss 4 3 — 1 Net periodic benefit income $ (8 ) $ (13 ) $ (4 ) $ (4 ) Contributions to benefit plans $ (5 ) $ (1 ) $ — $ — Multiemployer Pension Plans During the first quarters of fiscal 2019 and 2018 , we contributed $13 and $10 , respectively, to various multiemployer pension plans, primarily defined benefit pension plans, under collective bargaining agreements. Pension Contributions No minimum contributions are required to our pension plans in fiscal 2019 in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). We anticipate our fiscal 2019 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 | 4 Months Ended |
Jun. 16, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) 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: First Quarter Ended June 16, June 17, Net (loss) earnings from continuing operations $ (27 ) $ 9 Less net earnings attributable to noncontrolling interests — (1 ) Net (loss) earnings from continuing operations attributable to SUPERVALU INC. (27 ) 8 Income from discontinued operations, net of tax 6 3 Net (loss) earnings attributable to SUPERVALU INC. $ (21 ) $ 11 Weighted average number of shares outstanding—basic 38 38 Dilutive impact of stock-based awards — — Weighted average number of shares outstanding—diluted 38 38 Basic net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.70 ) $ 0.21 Discontinued operations $ 0.15 $ 0.08 Basic net (loss) earnings per share $ (0.55 ) $ 0.30 Diluted net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.70 ) $ 0.21 Discontinued operations $ 0.15 $ 0.08 Diluted net (loss) earnings per share $ (0.55 ) $ 0.30 Stock-based awards of 2 and 2 that were outstanding during the first quarters of fiscal 2019 and 2018 , 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 our common stock became effective and the number of authorized shares of our common stock decreased to approximately 57 , while the number of issued and outstanding shares was reduced from approximately 269 to 38 . Our 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 our authorized number of shares of preferred stock, none of which were outstanding. The reverse stock split reduced the number of shares of common stock available for issuance under our 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. Our common stock continues to trade on the NYSE under the symbol “SVU.” |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Loss | 4 Months Ended |
Jun. 16, 2018 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Loss | Comprehensive (loss) income is reported 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. Our 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 the first quarter of fiscal 2019 are as follows: Benefit Plans Interest Rate Swap Total Accumulated other comprehensive loss at beginning of the fiscal year, net of tax $ (210 ) $ — $ (210 ) Net current-period Other comprehensive income — — — Adoption of ASU 2018-02 (61 ) — (61 ) Accumulated other comprehensive loss at the end of period, net of tax $ (271 ) $ — $ (271 ) Changes in Accumulated other comprehensive loss by component for the first quarter of fiscal 2018 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 ) Net current-period Other comprehensive income — — — Accumulated other comprehensive loss at the end of period, net of tax $ (276 ) $ (2 ) $ (278 ) Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations: First Quarter Ended June 16, June 17, 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 ) Net periodic benefit income, excluding service cost Total reclassifications — (1 ) Income tax expense — 1 Income tax (benefit) provision Total reclassifications, net of tax $ — $ — Interest rate swap cash flow hedge: Reclassification of cash flow hedge $ — $ 1 Interest expense, net Income tax benefit — (1 ) Income tax (benefit) provision Total reclassifications, net of tax $ — $ — (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 10—Benefit Plans . As of June 16, 2018 , we expect to reclassify $1 out of Accumulated other comprehensive loss into Interest expense, net during the following twelve-month period. |
Stock-Based Awards
Stock-Based Awards | 4 Months Ended |
Jun. 16, 2018 | |
Stock-Based Awards [Abstract] | |
Stock-Based Awards | We 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 $6 and $6 for the first quarters of fiscal 2019 and 2018 , respectively. In the first quarter of fiscal 2019, we granted cash settled restricted stock units (“Cash settled RSUs”), restricted stock units (“RSUs”) and performance share units (“PSUs”) under the 2012 Stock Plan to eligible employees, as part of our annual grant. The amount of awards granted and the grant date fair values are as follows: (in thousands, except per unit amounts) Awards Issued Grant Date Fair Value Cash settled RSUs (1) 637 $ 16.53 RSUs (1) 723 $ 16.53 PSUs (2) 453 $ 14.93 (1) Cash settled RSUs and RSUs vest over a three-year period from the date of grant. (2) PSUs have fiscal 2019-2021 and fiscal 2019-2022 performance periods and settle in shares of our common stock. The grant date fair value used to determine compensation expense associated with the PSUs was calculated utilizing a Monte Carlo simulation. The weighted average assumptions used to determine the fair value of the PSUs as of the grant date are as follows: Fiscal 2019 Annual Grant Dividend yield — % Volatility rate 47.0 % Risk-free interest rate 2.7 % Expected life 3.8 years |
Income Taxes
Income Taxes | 4 Months Ended |
Jun. 16, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The first quarter of fiscal 2019 and 2018 tax provision included $0 and $5 of discrete tax expense, respectively. The decrease is primarily due to the decrease in discrete tax expense related to stock-based compensation and the tax benefit for the release of a valuation allowance in the first quarter of fiscal 2019 . We have not completed our accounting for the income tax effects of certain elements of the Tax Act, but we recorded provisional adjustments based on reasonable estimates, which have not materially changed since February 24, 2018. Those estimates may be impacted by the need for further analysis and future clarification and guidance regarding available tax accounting methods and elections, state tax conformity to federal tax changes and expected changes to U.S. Treasury regulations. We anticipate these estimates will be finalized on or before the due date of our federal and state income tax returns. |
Commitments, Contingencies and
Commitments, Contingencies and Off-Balance Sheet Arrangements | 4 Months Ended |
Jun. 16, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Off-Balance Sheet Arrangements | Guarantees and Contingent Liabilities We have outstanding guarantees related to certain leases, fixture financing loans and other debt obligations of various retailers as of June 16, 2018 . 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 thirteen years, with a weighted average remaining term of approximately seven years. For each guarantee issued, if the Wholesale customer or other third party defaults on a payment, we would be required to make payments under our guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees of the Wholesale customer. We review performance risk related to our guarantee obligations based on internal measures of credit performance. As of June 16, 2018 , the maximum amount of undiscounted payments we would be required to make in the event of default of all guarantees was $50 ( $39 on a discounted basis). Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, we believe the likelihood that we 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 our guarantee arrangements as the fair value has been determined to be de minimis. We are contingently liable for leases that have been assigned to various third parties in connection with facility closings and dispositions. We 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 our lease assignments among third parties, and various other remedies available, we believe the likelihood that we will be required to assume a material amount of these obligations is remote. No amount has been recorded in the Condensed Consolidated Balance Sheets for these contingent obligations under our guarantee arrangements as the fair value has been determined to be de minimis. We are a party to a variety of contractual agreements under which we 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 our 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 us and agreements to indemnify officers, directors and employees in the performance of their work. While our aggregate indemnification obligations could result in a material liability, we are 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, we remain contingently liable with respect to certain self-insurance commitments and other guarantees as a result of parental guarantees we issued with respect to the obligations of NAI that were incurred while NAI was our subsidiary. As of June 16, 2018, using actuarial estimates as of December 31, 2017, the total undiscounted amount of all such guarantees was estimated at $65 ( $59 on a discounted basis). Based on the expected settlement of the self-insurance claims that underlie our commitments, we believe 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 we remain contingently liable, we believe that the likelihood that we 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, as the fair value has been determined to be de minimis. Agreements with Save-A-Lot and Onex The Agreement and Plan of Merger pursuant to which we 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, we entered into a Separation Agreement with Moran Foods (the “Separation Agreement”), which contains indemnification obligations and covenants related to the separation of the assets and liabilities of the Save-A-Lot business from us. We also entered into a Services Agreement with Moran Foods (the “Services Agreement”), pursuant to which we are 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. 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 our aggregate indemnification obligations to Save-A-Lot and Onex could result in a material liability, we are not aware of any matters that are expected to result in a material liability. We have 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, we 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”). We are 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, we are 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 we receive under the TSA. On October 17, 2017, we 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 we are providing to Albertson’s LLC and NAI, other than with respect to certain limited services. We will provide services to Albertson’s LLC for one distribution center until at least October 2018, and NAI may notify us 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 currently pay to us. The parties do not expect any of these services, or any of the transition and wind down services, to extend beyond April 2019. We also agreed that Albertson’s would no longer provide services to us after September 21, 2019. In addition, we operate a distribution center in Lancaster, Pennsylvania that is owned by NAI. In March 2017, we acquired a distribution center in Harrisburg, Pennsylvania and leased a facility in Carlisle, Pennsylvania. They will replace the Lancaster facility in fiscal 2019. 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, and we now provide limited services in connection with the wind down of the Haggen estate. We 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 our unsecured claims against Haggen. In accordance with the terms of the settlement agreements, we received approximately $3 from Haggen on October 11, 2016, and Haggen is obligated to make further payments of approximately $2 on account of our claims. Pursuant to the settlement agreement, Haggen has agreed not to pursue claw-backs of any transfers made to us. We could be exposed to claims from third parties from which we source products, services, licenses and similar benefits on behalf of Haggen. We have reserved for possible losses related to a portion of these third-party claims. It is reasonably possible that we could experience losses in excess of the amount of such reserves; however, at this time we cannot reasonably estimate a range of such excess losses because of the factual and legal issues related to whether we would have liability for any such third-party claims, if such third-party claims were asserted against us. 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 . Haggen has asserted certain potential offsets to Unified’s priority claim that Unified disputes. 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 to recover additional funds for Haggen’s bankruptcy estate for the benefit of creditors, including potential payment of Unified claims. On December 9, 2016, the Defendants filed their answer to the Committee’s complaint generally denying the allegations asserted therein. The trial concluded in November 2017 and on January 22, 2018, the bankruptcy court ruled in favor of the Defendants on all counts dismissing the Committee’s complaint. On February 2, 2018, the Committee filed a Notice of Appeal and subsequently filed a Statement of Issues on Appeal challenging the bankruptcy court’s ruling with respect to the Committee’s Recharacterization claim. Absent a successful appeal, it is our understanding that the Haggen estate will not have sufficient assets to pay administrative expense priority claims in full, including our and Unified’s 503(b)(9) priority claims, or to pay any amounts for general unsecured claims. Information Technology Intrusions In prior periods, we have separately reported on reasonably possible losses with respect to the criminal network intrusions we experienced in fiscal 2015 (the “Criminal Intrusion”). As of the date of this filing, the only active claim relating to the Criminal Intrusion is the litigation entitled In Re: SUPERVALU Inc. Customer Data Security Breach Litigation disclosed in more detail below in this Note 15 under Legal Proceedings . We do not expect there to be any material changes to the Company resulting from the Criminal Intrusion, and we will no longer provide separate reporting with respect to the Criminal Intrusion. Other Contractual Commitments In the ordinary course of business, we enter 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 June 16, 2018 , we had approximately $375 of non-cancelable future purchase obligations. Legal Proceedings We are 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 our overall results of our operations, cash flows or financial position is remote. In December 2008, a class action complaint was filed in the United States District Court for the Western District of Wisconsin against us 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, we purchased certain assets of the Fleming Corporation as part of Fleming Corporation’s bankruptcy proceedings and sold certain of our assets 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 alleged 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 we and C&S purchased from each other. Plaintiffs are divided into Midwest plaintiffs and a New England plaintiff and are seeking monetary damages, injunctive relief and attorney’s fees. On June 19, 2015, the District Court Magistrate Judge entered an order that decided a number of matters including granting Midwest plaintiffs’ request to seek class certification for certain Midwest distribution centers and denying New England plaintiff’s request to add an additional New England plaintiff and denying plaintiff’s request to seek class certification for a group of New England retailers. In September 2015, the New England plaintiff 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 September 7, 2016, the District Court granted Midwest plaintiffs’ motion to certify five Midwest distribution center classes, only one of which sued us (the non-arbitration Champaign distribution center class). On March 1, 2017, the 8th Circuit denied the New England plaintiff’s 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, we reached a settlement with the non-arbitration Champaign distribution center class, which is the one Midwest class suing us. We and the Midwest plaintiffs entered into a settlement agreement and the court granted final approval of the settlement on November 17, 2017. The material terms of the settlement include: (1) denial of wrongdoing and liability by us; (2) release of all Midwest plaintiffs’ claims against us 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 us of $9 . There is no contribution between us and C&S, and C&S did not settle the claims alleged against it and on April 19, 2018, a jury returned a verdict in favor of C&S determining that there was no conspiracy between Supervalu and C&S to restrain trade. The New England plaintiff is not a party to the settlement and is pursuing its individual claims and potential class action claims against us, which at this time are determined as remote. On February 15, 2018, we filed a summary judgment and Daubert motion and the New England plaintiff filed a motion for class certification. The hearing on the motions occurred on May 16, 2018, and we are waiting for a decision. In August and November 2014, four class action complaints were filed against us relating to the criminal intrusions into our computer network that we announced 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. We 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 we filed our 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, we filed a cross-appeal to preserve our 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 our cross-appeal and remanded the case back for consideration of our additional arguments for dismissal against the one remaining plaintiff. On October 30, 2017, we filed our motion to dismiss the remaining plaintiff and on November 7, 2017, the plaintiff filed a motion to amend its complaint. The court held a hearing on the motions on December 14, 2017, and on March 7, 2018, the District Court denied plaintiff’s motion to amend and granted our motion to dismiss. On March 14, 2018, plaintiff appealed to the 8th Circuit. We had $50 of cyber threat insurance above a per incident deductible of $1 at the time of the Criminal Intrusion, which we believe should cover any loss related to this litigation. On June 30, 2015, we 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 our HIPAA breach notification and reporting from 2009 to the present. The letter indicates that the OCR Midwest Region is doing a compliance review of our alleged failure to report small breaches of protected health information related to our pharmacy operations (e.g., any incident involving less than 500 individuals). On September 4, 2015, we submitted our response to OCR’s letter. While we do not believe that a loss is probable by reason of the compliance review, we believe that a loss is reasonably possible; however, at this time we cannot estimate a range of possible losses because the OCR’s review is at the early stages and we do 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 us and other factors determined relevant by OCR. On September 21, 2016, our Farm Fresh retail banner, classified as discontinued operations, received an administrative subpoena issued by the Drug Enforcement Administration (“DEA”). In addition to requesting information on Farm Fresh’s pharmacy policies and procedures generally, the subpoena also requested the production of documents that are required to be kept and maintained by Farm Fresh pursuant to the Controlled Substances Act and its implementing regulations. On November 23, 2016, Farm Fresh responded to the subpoena and is cooperating fully with DEA’s additional requests for information. On February 8, 2018, Farm Fresh received a letter from the US Attorney’s Office asserting violations of the Controlled Substances Act and the potential for penalties. Farm Fresh’s response to the alleged violations was due April 30, 2018. In March 2018, representatives for Farm Fresh engaged in discussions with representatives for the DEA and the US Attorney’s Office. We are in settlement discussions with the U.S. Attorney’s Office and believe that a settlement of the matter is probable. We have reduced our prior accrual, which was recorded within discontinued operations, based on the probable settlement amounts reflecting information available to us at this time and our expectation that we will settle this matter for an immaterial amount. 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. We regularly monitor our exposure to the loss contingencies associated with these matters and may from time to time change our predictions with respect to outcomes and estimates with respect to related costs and exposures. With respect to the matters discussed above, we believe 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 our financial condition, results of operations or cash flows. |
Segment Information
Segment Information | 4 Months Ended |
Jun. 16, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Summary operating results by reportable segment consisted of the following: First Quarter Ended June 16, 2018 Wholesale Retail Corporate Total Net sales $ 3,814 $ 901 $ 40 $ 4,755 Cost of sales 3,676 651 — 4,327 Gross profit 138 250 40 428 Selling and administrative expenses 90 270 68 428 Operating earnings (loss) $ 48 $ (20 ) $ (28 ) $ — Interest expense, net 49 Net periodic benefit income, excluding service cost (12 ) Equity in earnings of unconsolidated affiliates — Loss from continuing operations before income taxes $ (37 ) First Quarter Ended June 17, 2017 Wholesale Retail Corporate Total Net sales $ 2,556 $ 906 $ 55 $ 3,517 Cost of sales 2,437 649 — 3,086 Gross profit 119 257 55 431 Selling and administrative expenses 61 257 69 387 Operating earnings (loss) $ 58 $ — $ (14 ) $ 44 Interest expense, net 43 Net periodic benefit income, excluding service cost (17 ) Equity in earnings of unconsolidated affiliates (2 ) Earnings from continuing operations before income taxes $ 20 |
Discontinued Operations
Discontinued Operations | 4 Months Ended |
Jun. 16, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | During the fourth quarter of fiscal 2018, we announced that we are pursuing the sale of certain of our corporately owned and operated retail operations consisting of Farm Fresh, Shop ‘n Save, and Shop ‘n Save East. The results of operations, financial position and cash flows of these banners have been presented as discontinued operations and the related assets and liabilities have been reclassified as held-for-sale for all periods presented. These three retail banners were previously separate components included in our Retail reporting segment. In addition, discontinued operations includes the results of operations and cash flows attributed to the assets and liabilities of the Save-A-Lot business. During the first quarter of fiscal 2019, we completed the sale of 21 of our 38 Farm Fresh stores to three different retailers: Harris Teeter, Kroger Mid-Atlantic Division, and Food Lion, and we completed the sale of the Farm Fresh pharmacy assets, for a total of $53 . We recorded an income tax provision on the sale of the 21 stores and pharmacy assets of $1 . Subsequent to the first quarter of fiscal 2019, we completed the sale of an additional five Farm Fresh stores to Wholesale customers through lease assignments. The remaining stores were closed in the first quarter of fiscal 2019. Operating results of discontinued operations are summarized below: First Quarter Ended June 16, June 17, Net sales $ 350 $ 487 Cost of sales 267 367 Gross profit 83 120 Selling and administrative expenses 112 115 Gain on sale (37 ) — Operating earnings 8 5 Interest expense, net — — Earnings from discontinued operations before income taxes 8 5 Income tax provision 2 2 Income from discontinued operations, net of tax $ 6 $ 3 The carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets were as follows: June 16, 2018 February 24, 2018 Current assets Cash and cash equivalents $ 5 $ 7 Receivables, net 5 8 Inventories, net 70 109 Other current assets 4 6 Total current assets of discontinued operations 84 130 Long-term assets Property, plant and equipment, net 56 74 Intangible assets, net — 1 Deferred tax assets 8 8 Other assets 1 1 Total long-term assets of discontinued operations 65 84 Total assets of discontinued operations $ 149 $ 214 Current liabilities Accounts payable $ 39 $ 51 Accrued vacation, compensation and benefits 26 20 Current maturities of capital lease obligations 2 2 Other current liabilities 11 9 Total current liabilities of discontinued operations 78 82 Long-term liabilities Long-term capital lease obligations 14 14 Other long-term liabilities 1 3 Total long-term liabilities of discontinued operations 15 17 Total liabilities of discontinued operations 93 99 Net assets of discontinued operations $ 56 $ 115 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 4 Months Ended |
Jun. 16, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events - SUPERVALU UNFI Agreement | On July 25, 2018, SUPERVALU INC. (“SUPERVALU”), SUPERVALU Enterprises, Inc., a wholly owned subsidiary of SUPERVALU (“Enterprises”), United Natural Foods, Inc. (“UNFI”) and Jedi Merger Sub, Inc., a newly formed wholly owned subsidiary of UNFI (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), providing for the acquisition of the Company by UNFI. The transaction will be effected through a merger of Merger Sub and (1) SUPERVALU, if the Merger (as defined below) is completed prior to the completion of the Holding Company reorganization, or (2) Enterprises, if the Merger (as defined below) is completed following the completion of the Holding Company reorganization (as used in this section, the “Company”). On the terms and subject to the conditions set forth in the Merger Agreement, at the closing of the transactions contemplated thereby (the “Closing”), Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of UNFI, and each outstanding share of the holding company’s common stock will be converted into the right to receive $32.50 per share in cash. The Merger Agreement contains certain termination rights, in which we may be required to pay UNFI a termination fee of $40.5 in certain circumstances. For further information on the proposed Merger and Merger Agreement, please refer to the Merger Agreement, a copy of which has been filed as Exhibit 2.1 to our Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on July 26, 2018. The transaction is currently expected to be completed in the fourth quarter of calendar year 2018, subject to receipt of required regulatory approvals, shareholder approval and other customary closing conditions. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 4 Months Ended |
Jun. 16, 2018 | |
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 first quarters ended June 16, 2018 and June 17, 2017 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 our Annual Report on Form 10-K for the fiscal year ended February 24, 2018 . The results of operations for the first quarter ended June 16, 2018 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 our Annual Report on Form 10-K for the fiscal year ended February 24, 2018 . |
Fiscal Year | Fiscal Year Our fiscal years end on the last Saturday of February and contain either 52 or 53 weeks. References to the first quarter of fiscal 2019 and 2018 relate to the 16 week fiscal quarters ended June 16, 2018 and June 17, 2017 , respectively. |
Use of Estimates | Use of Estimates The preparation of our 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 We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Our banking arrangements allow us to fund outstanding checks when presented to the financial institution for payment. We fund 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 June 16, 2018 and February 24, 2018 , we had net book overdrafts of $116 and $144 , respectively. |
Inventories, Net | Inventories, Net Inventories are valued at the lower of cost or market. Substantially all of our inventories consist of finished goods and a substantial portion of our inventories have a last-in, first-out (“LIFO”) reserve applied. Interim LIFO calculations are based on our 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 $201 and $199 at June 16, 2018 and February 24, 2018 , respectively. We recorded a LIFO charge of $2 and $1 for the first quarters ended June 16, 2018 and June 17, 2017 , respectively. |
Revenue Recogntion (Policies)
Revenue Recogntion (Policies) | 4 Months Ended |
Jun. 16, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Policy | Revenue Recognition Accounting Policy We recognize revenue in an amount that reflects the consideration that is expected to be received for goods or services when our performance obligations are satisfied by transferring control of those promised goods or services to our customers. ASC 606 defines a five-step process to recognize revenue that requires judgment and estimates, including identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue as the performance obligation is satisfied. Revenues from Wholesale product sales are recognized when control is transferred, which typically happens upon shipment. Typically, invoicing, shipping and customer receipt of Wholesale product occur on the same business day. Discounts and allowances provided to customers are recognized as a reduction in Net sales as control of the products is transferred to customers. We recognize freight revenue related to transportation of product sales when control of the product is transferred. Revenues from Retail product sales are recognized at the point of sale upon customer check-out. Sales tax is excluded from Net sales. Limited rights of return exist with our customers due to the nature of the products we sell. Advertising income earned from our franchisees that participate in our Retail advertising program are recognized as Net sales. We recognize loyalty program expense in the form of fuel rewards as a reduction of Net sales. Product sales We enter into Wholesale supply, customer, and rebate agreements that provide terms and conditions of our order fulfillment. Our supply and rebate agreements often specify levels of required minimum purchases in order to earn certain rebates or incentives. Certain contracts include rebates and other forms of variable consideration, including rebates provided up-front, over time or at the end of a contract term. Certain customer agreements provide for the right to license one or more of our tradenames, such as FESTIVAL FOODS ® , SENTRY ® , COUNTY MARKET ® , NEWMARKET ® , FOODLAND ® , JUBILEE ® and SUPERVALU ® . We do not separately charge for the right to license our tradenames. We believe that these tradenames are capable of being distinct, but are not capable of being distinct within the context of the contracts with our customers. Accordingly, we do not separately recognize revenue related to tradenames utilized by our customers. In addition, we enter into franchise agreements that separately charge our customers, who we also provide wholesale product supply to, for the right to use our CUB FOODS ® tradename. We recognize franchise agreement revenue within Net sales. We enter into distribution agreements with manufacturers to provide wholesale supply to the Defense Commissary Agency (“DeCA”) and other government agency locations. DeCA contracts with manufacturers to obtain grocery products for the commissary system. We contract with manufacturers to distribute products to the commissaries after being authorized by the manufacturers to be a military distributor to DeCA. We must adhere to DeCA’s delivery system procedures governing matters such as product identification, ordering and processing, information exchange and resolution of discrepancies. DeCA identifies the manufacturer with which an order is to be placed, determines which distributor is contracted by the manufacturer for a particular commissary or exchange location, and then places a product order with that distributor that is covered under DeCA’s master contract with the applicable manufacturer. We supply product from our existing inventory, deliver it to the DeCA designated location, and bill the manufacturer for the product price plus a drayage fee. The manufacturer then bills DeCA under the terms of its master contract. We recognize revenue when control of the product passes to the DeCA designated location. In transactions for goods or services where we engage third-parties to participate in our order fulfillment process, we evaluate whether we are the principal or an agent in the transaction. Our analysis considers whether we control the goods or services before they are transferred to our customer, including an evaluation of whether we have the ability to direct the use of, and obtain substantially all the remaining benefits from, the specified good or service before it is transferred to our customer. Agent transactions primarily reflect circumstances where we are not involved in order fulfillment or where we are involved in the order fulfillment but are not contractually obligated to purchase the related goods or services from vendors, and instead extend Wholesale customers credit by paying vendor trade accounts payable and do not control products prior to their sale. Under ASC 606, if we determine that we are acting in an agent capacity, we record transactions on a net basis. If we determine that we are acting in a principal capacity, we record transactions on a gross basis. We also evaluate vendor sales incentives to determine whether they reduce our transaction price with our customers. Our analysis considers which party tenders the incentive, whether the incentive reflects a direct reimbursement from a vendor, whether the incentive is influenced by or negotiated in conjunction with any other incentive arrangements and whether the incentive is subject to an agency relationship with the vendor, whether expressed or implied. Typically, when vendor incentives are offered directly by vendors to our customers, require the achievement of vendor-specified requirements to be earned by our customers, and are not negotiated by us or in conjunction with any other incentive agreement whereby we do not control the direction or earning of these incentives, then we do not reduce Net sales as part of our determination of the transaction price. In circumstances where the vendors provide us consideration to promote the sale of their goods and we determine the specific performance requirements for our customers to earn these incentives from us, we reduce Net sales for these customer incentives as part of our determination of the transaction price. Customer incentives We provide incentives to our Wholesale customers in various forms established under the applicable agreement, including advances, payments over time that are earned by achieving specified purchasing thresholds, and upon the passage of time. We typically recognize customer incentives within Other assets and Other current assets and we typically recognize customer incentive payments that are based on expected purchases over the term of the agreement within Net sales. To the extent that our transaction price for product sales includes variable consideration, such as certain of these customer incentives, we estimate the amount of variable consideration that should be included in the transaction price primarily by utilizing the expected value method. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the agreement will not occur. We believe that there will not be significant changes to our estimates of variable consideration. Customer incentive assets are reviewed for impairment when circumstances exist for which we no longer expect to recover the applicable customer incentives. Professional services and equipment sales We provide our Wholesale customers with professional services, including retail store support, advertising, couponing, e-commerce, network and data hosting solutions, training and certifications classes, and administrative back-office solutions. These Wholesale services typically contain single performance obligations for each respective service, in which case such services revenues are recognized when delivered. Advertising services primarily reflect the creation and distribution of circulars and other media that are recognized upon delivery to our customer. Wholesale equipment sales are recorded as direct sales to our customers when shipped, consistent with our recognition of product sales. For Wholesale services that consist of multiple performance obligations, including any combination of our deliverables, we use our judgment to determine whether the promised deliverables are capable of being distinct and are in fact distinct. For our transition services agreements with each of Albertson’s LLC and New Albertsons’s, Inc. (collectively, the “TSA”), and for our professional services agreement with Moran Foods (the “Services Agreement”), we provide a series of bundled back-office support activities that we recognize on an as-invoiced basis. TSA revenues are invoiced based on the number of stores and distribution centers we service, which vary across the period of the contract. Services Agreement revenues are recognized based on the monthly invoices for services provided. |
Recently Adopted and Issued A30
Recently Adopted and Issued Accounting Standards (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | June 17, 2017 As Previously Reported Impact of ASU 2017-07 Adoption As Recast Selling and administrative expenses $ 370 $ 17 $ 387 Operating earnings $ 61 $ (17 ) $ 44 Net periodic benefit income, excluding service cost $ — $ (17 ) $ (17 ) |
Revenue Recogntion (Tables)
Revenue Recogntion (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table details our revenue recognition for the periods presented by type of products and services and type of customer for each of our segments: First Quarter Fiscal 2019 First Quarter Fiscal 2018 Product or service type Wholesale Retail Corporate Total Wholesale Retail Corporate Total Nonperishable grocery products (1) $ 2,617 $ 483 $ — $ 3,100 $ 1,749 $ 488 $ — $ 2,237 Perishable grocery products (2) 1,134 321 — 1,455 760 319 — 1,079 Pharmacy products — 90 — 90 — 92 — 92 Services revenue 41 5 40 86 28 5 55 88 Equipment sales 9 — — 9 9 — — 9 Other 13 2 — 15 10 2 — 12 Net sales $ 3,814 $ 901 $ 40 $ 4,755 $ 2,556 $ 906 $ 55 $ 3,517 Type of customer: Retailers $ 3,675 $ — $ 40 $ 3,715 $ 2,408 $ — $ 55 $ 2,463 Military 133 — — 133 143 — — 143 Individuals — 894 — 894 — 899 — 899 Other 6 7 — 13 5 7 — 12 Net sales $ 3,814 $ 901 $ 40 $ 4,755 $ 2,556 $ 906 $ 55 $ 3,517 (1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, specialty products, home, health and beauty care and candy. (2) Includes such items as meat, produce, deli, bakery and floral |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts and notes receivable are as follows: June 16, 2018 February 24, 2018 Customer accounts receivable $ 549 $ 519 Customer notes receivable 14 15 Other receivables 79 70 Allowance for doubtful accounts (10 ) (14 ) Accounts receivable, net $ 632 $ 590 Long-term notes receivable $ 43 $ 39 |
Business Acquisitions Proforma
Business Acquisitions Proforma (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table immediately below summarizes the preliminary fair values assigned to AG Florida’s acquired net assets. As of June 16, 2018 , the fair value allocation of the acquisition was preliminary and will be finalized when the valuation is completed. There can be no assurance that such finalization will not result in material changes from the preliminary purchase price allocation. Our estimates and assumptions are subject to change during the measurement period (up to one year from the acquisition date), as we finalize the valuations of certain tangible and intangible assets acquired and liabilities assumed in connection with the acquisition. The primary areas of the purchase price allocations that are not yet finalized relate to real property, identifiable intangible assets, goodwill, income taxes and deferred taxes. As Originally Reported As Cash and cash equivalents $ 1 $ 1 Accounts receivable 49 49 Inventories 48 48 Other current assets 4 4 Property, plant and equipment 84 94 Goodwill 44 39 Intangible assets 52 48 Deferred tax assets (28 ) (29 ) Other assets 4 4 Accounts payable (53 ) (53 ) Other current liabilities (13 ) (13 ) Long-term debt and capital lease obligations (60 ) (60 ) Other liabilities assumed (1 ) (1 ) Total fair value of net assets acquired 131 131 Assumed obligations to make patronage payments to member-owners 5 5 Less cash acquired (1 ) (1 ) Total consideration for acquisition, less cash acquired $ 135 $ 135 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | As of June 16, 2018 , we recognized the following finite-lived intangible assets of AG Florida: Estimated Useful Life (in years) Amounts Acquired Customer relationships and supply agreements 15 years $ 43 Favorable operating leases 2-5 years 5 Total AG Florida finite-lived intangibles acquired $ 48 |
Business Acquisition, Pro Forma Information | June 17, 2017 (1) Net sales $ 4,869 Net earnings from continuing operations attributable to SUPERVALU INC. $ 5 Basic net earnings from continuing operations per share attributable to SUPERVALU INC. $ 0.14 Diluted net earnings from continuing operations per share attributable to SUPERVALU INC. $ 0.14 (1) The unaudited pro forma financial information |
Reserves for Closed Propertie33
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Property, Plant and Equipment [Abstract] | |
Changes in Company's Reserves | Changes in reserves for closed properties consisted of the following: June 16, Reserves for closed properties at beginning of the fiscal year $ 14 Additions 7 Payments (2 ) Adjustments (1 ) Reserves for closed properties at the end of period $ 18 |
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: First Quarter Ended June 16, June 17, Property, plant and equipment: Carrying value $ 5 $ — Fair value measured using Level 3 inputs 1 — Impairment charge $ 4 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Company's Goodwill and Intangible Assets | Changes in the carrying value of Goodwill by reporting unit that have goodwill consisted of the following: February 24, Additions Impairments Other net adjustments June 16, Wholesale goodwill $ 780 $ — $ — $ (5 ) $ 775 |
Schedule of Indefinite and Finite lived intangibles | Identifiable intangible assets consisted of the following: June 16, 2018 February 24, 2018 Cost Accumulated Amortization Net Cost Accumulated Amortization Net Customer lists, supply agreements, prescription files and other $ 173 $ (70 ) $ 103 $ 177 $ (66 ) $ 111 Favorable operating leases 21 (8 ) 13 21 (6 ) 15 Total finite-life intangibles 194 (78 ) 116 198 (72 ) 126 Indefinite-lived tradename intangibles 5 — 5 5 — 5 Total intangibles $ 199 $ (78 ) $ 121 $ 203 $ (72 ) $ 131 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the remainder of fiscal 2019 and for the next five fiscal years on intangible assets outstanding as of June 16, 2018 consists of the following: Remaining Fiscal 2019 2020 2021 2022 2023 2024 Estimated amortization expense $ 9 $ 12 $ 12 $ 10 $ 10 $ 8 |
Fair Value Measurements Recurri
Fair Value Measurements Recurring (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | Recurring fair value measurements were as follows: June 16, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Interest rate swap derivative Other current assets $ — $ 1 $ — $ 1 Mutual funds Other current assets 2 — — 2 Mutual funds Other assets 2 — — 2 Total $ 4 $ 1 $ — $ 5 February 24, 2018 Balance Sheet Location Level 1 Level 2 Level 3 Total Assets: Mutual funds Other assets $ 4 $ — $ — $ 4 Total $ 4 $ — $ — $ 4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Lease Obligations | Our long-term debt consisted of the following: Average Interest Rate at June 16, 2018 Maturity Year June 16, February 24, Secured Term Loan Facility - variable rate 5.48% 2024 $ 698 $ 834 Senior Notes - fixed rate 6.75% 2021 180 400 Senior Notes - fixed rate 7.75% 2022 350 350 Revolving ABL Credit Facility - variable rate 4.24% 2021 195 127 Other secured loans - variable rate 5.00% 2022-2023 31 48 Debt financing costs, net (20 ) (24 ) Original issue discount on debt (2 ) (3 ) Total debt 1,432 1,732 Less current maturities of long-term debt — (8 ) Long-term debt $ 1,432 $ 1,724 |
Secured Assets and Unused Available Credit and Fees, Revolving ABL Credit Facility | he 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) : June 16, 2018 February 24, 2018 Certain inventory assets included in Inventories, net and Current assets of discontinued operations $ 1,306 $ 1,176 Certain receivables included in Receivables, net and Current assets of discontinued operations 436 410 Certain amounts included in Cash and cash equivalents and Current assets of discontinued operations 20 20 (1) The Revolving ABL Credit Facility is also secured by all of our pharmacy scripts included in Intangible assets, net. Unused available credit and fees under the Revolving ABL Credit Facility: June 16, 2018 February 24, 2018 Outstanding letters of credit $ 57 $ 57 Letters of credit fees 1.375 % 1.375 % Unused available credit 748 816 Unused facility fees 0.25 % 0.25 % |
Leases (Tables)
Leases (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Leases [Abstract] | |
Rent Expense and Subtenant Rentals | Rent expense, other operating lease expense and subtenant rentals all under operating leases consisted of the following: First Quarter Ended June 16, June 17, Minimum rent $ 38 $ 27 Contingent rent — 1 Rent expense (1) 38 28 Less subtenant rentals (10 ) (8 ) Total net rent expense $ 28 $ 20 (1) Rent expense as presented here includes $3 and $4 , respectively, of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the historical expense to be included within continuing operations, as we expect to remain primarily obligated under these leases. |
Future Minimum Lease and Subtenant Rentals Under Noncancellable Leases | Future minimum lease payments to be made by us or certain third parties in the case of assigned leases for noncancellable operating leases and capital leases as of June 16, 2018 consisted of the amounts presented in the following table. These amounts have not been reduced for future minimum subtenant rentals under certain operating subleases, including assignments. Lease Obligations Fiscal Year Operating Leases Capital Leases Remaining Fiscal 2019 $ 71 $ 27 2020 110 38 2021 105 34 2022 91 30 2023 79 23 Thereafter 835 84 Total future minimum obligations $ 1,291 236 Less interest (70 ) Present value of net future minimum obligations 166 Less current capital lease obligations (25 ) Long-term capital lease obligations $ 141 |
Noncancellable Operationg leases and Capital Leases | Future minimum lease and subtenant rentals to be received under noncancellable operating and deferred financing income leases, under which we are the lessor, as of June 16, 2018 , consisted of the following: Lease Receipts Fiscal Year Operating Leases Direct Financing Leases Remaining Fiscal 2019 $ 16 $ — 2020 24 1 2021 20 — 2022 17 — 2023 11 — Thereafter 32 — Total minimum lease receipts $ 120 $ 1 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Retirement Benefits [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: First Quarter Ended Pension Benefits Other Postretirement Benefits June 16, June 17, June 16, June 17, Interest cost $ 28 $ 24 $ — $ — Expected return on assets (40 ) (40 ) — — Amortization of prior service benefit — — (4 ) (5 ) Amortization of net actuarial loss 4 3 — 1 Net periodic benefit income $ (8 ) $ (13 ) $ (4 ) $ (4 ) Contributions to benefit plans $ (5 ) $ (1 ) $ — $ — |
Net (Loss) Earnings Per Share (
Net (Loss) Earnings Per Share (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
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: First Quarter Ended June 16, June 17, Net (loss) earnings from continuing operations $ (27 ) $ 9 Less net earnings attributable to noncontrolling interests — (1 ) Net (loss) earnings from continuing operations attributable to SUPERVALU INC. (27 ) 8 Income from discontinued operations, net of tax 6 3 Net (loss) earnings attributable to SUPERVALU INC. $ (21 ) $ 11 Weighted average number of shares outstanding—basic 38 38 Dilutive impact of stock-based awards — — Weighted average number of shares outstanding—diluted 38 38 Basic net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.70 ) $ 0.21 Discontinued operations $ 0.15 $ 0.08 Basic net (loss) earnings per share $ (0.55 ) $ 0.30 Diluted net (loss) earnings per share attributable to SUPERVALU INC.: Continuing operations $ (0.70 ) $ 0.21 Discontinued operations $ 0.15 $ 0.08 Diluted net (loss) earnings per share $ (0.55 ) $ 0.30 |
Comprehensive Income and Accu40
Comprehensive Income and Accumulated Other Comprehensive Loss (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | Changes in Accumulated other comprehensive loss by component for the first quarter of fiscal 2019 are as follows: Benefit Plans Interest Rate Swap Total Accumulated other comprehensive loss at beginning of the fiscal year, net of tax $ (210 ) $ — $ (210 ) Net current-period Other comprehensive income — — — Adoption of ASU 2018-02 (61 ) — (61 ) Accumulated other comprehensive loss at the end of period, net of tax $ (271 ) $ — $ (271 ) Changes in Accumulated other comprehensive loss by component for the first quarter of fiscal 2018 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 ) Net current-period Other comprehensive income — — — Accumulated other comprehensive loss at the end of period, net of tax $ (276 ) $ (2 ) $ (278 ) |
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: First Quarter Ended June 16, June 17, 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 ) Net periodic benefit income, excluding service cost Total reclassifications — (1 ) Income tax expense — 1 Income tax (benefit) provision Total reclassifications, net of tax $ — $ — Interest rate swap cash flow hedge: Reclassification of cash flow hedge $ — $ 1 Interest expense, net Income tax benefit — (1 ) Income tax (benefit) provision Total reclassifications, net of tax $ — $ — (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 10—Benefit Plans . |
Stock-Based Awards(Tables)
Stock-Based Awards(Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Stock-Based Awards [Abstract] | |
Share-based Compensation, Activity | The amount of awards granted and the grant date fair values are as follows: (in thousands, except per unit amounts) Awards Issued Grant Date Fair Value Cash settled RSUs (1) 637 $ 16.53 RSUs (1) 723 $ 16.53 PSUs (2) 453 $ 14.93 (1) Cash settled RSUs and RSUs vest over a three-year period from the date of grant. (2) PSUs have fiscal 2019-2021 and fiscal 2019-2022 performance periods and settle in shares of our common stock. |
performance share units assumptions [Table Text Block] | The grant date fair value used to determine compensation expense associated with the PSUs was calculated utilizing a Monte Carlo simulation. The weighted average assumptions used to determine the fair value of the PSUs as of the grant date are as follows: Fiscal 2019 Annual Grant Dividend yield — % Volatility rate 47.0 % Risk-free interest rate 2.7 % Expected life 3.8 years |
Segment Information (Tables)
Segment Information (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary operating results by reportable segment consisted of the following: First Quarter Ended June 16, 2018 Wholesale Retail Corporate Total Net sales $ 3,814 $ 901 $ 40 $ 4,755 Cost of sales 3,676 651 — 4,327 Gross profit 138 250 40 428 Selling and administrative expenses 90 270 68 428 Operating earnings (loss) $ 48 $ (20 ) $ (28 ) $ — Interest expense, net 49 Net periodic benefit income, excluding service cost (12 ) Equity in earnings of unconsolidated affiliates — Loss from continuing operations before income taxes $ (37 ) First Quarter Ended June 17, 2017 Wholesale Retail Corporate Total Net sales $ 2,556 $ 906 $ 55 $ 3,517 Cost of sales 2,437 649 — 3,086 Gross profit 119 257 55 431 Selling and administrative expenses 61 257 69 387 Operating earnings (loss) $ 58 $ — $ (14 ) $ 44 Interest expense, net 43 Net periodic benefit income, excluding service cost (17 ) Equity in earnings of unconsolidated affiliates (2 ) Earnings from continuing operations before income taxes $ 20 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 4 Months Ended |
Jun. 16, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Operating results of discontinued operations are summarized below: First Quarter Ended June 16, June 17, Net sales $ 350 $ 487 Cost of sales 267 367 Gross profit 83 120 Selling and administrative expenses 112 115 Gain on sale (37 ) — Operating earnings 8 5 Interest expense, net — — Earnings from discontinued operations before income taxes 8 5 Income tax provision 2 2 Income from discontinued operations, net of tax $ 6 $ 3 June 16, 2018 February 24, 2018 Current assets Cash and cash equivalents $ 5 $ 7 Receivables, net 5 8 Inventories, net 70 109 Other current assets 4 6 Total current assets of discontinued operations 84 130 Long-term assets Property, plant and equipment, net 56 74 Intangible assets, net — 1 Deferred tax assets 8 8 Other assets 1 1 Total long-term assets of discontinued operations 65 84 Total assets of discontinued operations $ 149 $ 214 Current liabilities Accounts payable $ 39 $ 51 Accrued vacation, compensation and benefits 26 20 Current maturities of capital lease obligations 2 2 Other current liabilities 11 9 Total current liabilities of discontinued operations 78 82 Long-term liabilities Long-term capital lease obligations 14 14 Other long-term liabilities 1 3 Total long-term liabilities of discontinued operations 15 17 Total liabilities of discontinued operations 93 99 Net assets of discontinued operations $ 56 $ 115 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 4 Months Ended | ||
Jun. 16, 2018 | Jun. 17, 2017 | Feb. 24, 2018 | |
Accounting Policies [Abstract] | |||
Book overdrafts | $ 116 | $ 144 | |
Inventory, LIFO Reserve | 201 | $ 199 | |
LIFO charge recorded | $ 2 | $ 1 |
Recently Adopted and Issued A45
Recently Adopted and Issued Accounting Standards Recently Adopted and Issued Accounting Standards - ASU 2018-02 (Details) | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Previous Accounting Guidance [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Adoption of ASU 2018-02 | $ 61 |
Recently Adopted and Issued A46
Recently Adopted and Issued Accounting Standards Schedule of Effect of Adoption of ASU 2017-07 (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Nonoperating Income (Expense) | $ 12 | $ 17 |
Selling, General and Administrative Expenses [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net periodic benefit expense (income) | 387 | |
Operating Income (Loss) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net periodic benefit expense (income) | 44 | |
Other Operating Income (Expense) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Nonoperating Income (Expense) | 17 | |
Previous Accounting Guidance [Member] | Selling, General and Administrative Expenses [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net periodic benefit expense (income) | 370 | |
Previous Accounting Guidance [Member] | Operating Income (Loss) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net periodic benefit expense (income) | 61 | |
Previous Accounting Guidance [Member] | Other Operating Income (Expense) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Nonoperating Income (Expense) | 0 | |
Adjustments for New Accounting Pronouncement [Member] | Selling, General and Administrative Expenses [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net periodic benefit expense (income) | 17 | |
Adjustments for New Accounting Pronouncement [Member] | Operating Income (Loss) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net periodic benefit expense (income) | (17) | |
Adjustments for New Accounting Pronouncement [Member] | Other Operating Income (Expense) [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Nonoperating Income (Expense) | $ 17 |
Recently Adopted and Issued A47
Recently Adopted and Issued Accounting Standards Impact of ASC 606 on the Income Statemetn and Balance Sheet (Details) - Accounting Standards Update 2014-09 $ in Millions | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Net sales | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | $ 3 |
Cost of sales | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | 3 |
Accounts Receivable | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | 3 |
Other Assets | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | 1 |
Inventories | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | (3) |
Accumulated Deficit | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | 0 |
Advertising and Fuel Discount [Member] | Net sales | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | (2) |
Advertising and Fuel Discount [Member] | Cost of sales | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of accounting standard adoptions | $ (2) |
Revenue Recogntion Revenue Reco
Revenue Recogntion Revenue Recognition-Summary of Information about Disaggregated Revenue of Reportable Segments(Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 4,755 | $ 3,517 |
Retailers | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,715 | 2,463 |
Military | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 133 | 143 |
Individuals | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 894 | 899 |
Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 13 | 12 |
Nonperishable grocery products(1) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,100 | 2,237 |
Perishable grocery products(2) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,455 | 1,079 |
Pharmacy products | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 90 | 92 |
Services revenue | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 86 | 88 |
Equipment sales | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 9 | 9 |
Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 15 | 12 |
Wholesale | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,814 | 2,556 |
Wholesale | Retailers | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3,675 | 2,408 |
Wholesale | Military | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 133 | 143 |
Wholesale | Individuals | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Wholesale | Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 6 | 5 |
Wholesale | Nonperishable grocery products(1) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,617 | 1,749 |
Wholesale | Perishable grocery products(2) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,134 | 760 |
Wholesale | Pharmacy products | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Wholesale | Services revenue | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 41 | 28 |
Wholesale | Equipment sales | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 9 | 9 |
Wholesale | Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 13 | 10 |
Retail | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 901 | 906 |
Retail | Retailers | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Retail | Military | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Retail | Individuals | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 894 | 899 |
Retail | Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 7 | 7 |
Retail | Nonperishable grocery products(1) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 483 | 488 |
Retail | Perishable grocery products(2) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 321 | 319 |
Retail | Pharmacy products | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 90 | 92 |
Retail | Services revenue | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 5 | 5 |
Retail | Equipment sales | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Retail | Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2 | 2 |
Corporate | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 40 | 55 |
Corporate | Retailers | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 40 | 55 |
Corporate | Military | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Individuals | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Nonperishable grocery products(1) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Perishable grocery products(2) | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Pharmacy products | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Services revenue | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 40 | 55 |
Corporate | Equipment sales | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Corporate | Other | ||
Revenue from Contract with Customer, Excluding Assessed Tax [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 |
Revenue Recogntion Revenue Re49
Revenue Recogntion Revenue Recognition-Summary of Changes in Accounts and Notes Receivable (Details) - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Customer accounts receivable | $ 549 | $ 519 |
Customer notes receivable | 14 | 15 |
Other receivables | 79 | 70 |
Allowance for doubtful accounts | (10) | (14) |
Receivables, net | 632 | 590 |
Long-term notes receivable | $ 43 | $ 39 |
Business Acquisitions Additiona
Business Acquisitions Additional Information (Details) - USD ($) $ in Millions | Dec. 08, 2017 | Jun. 23, 2017 | Jun. 16, 2018 |
Associated Grocers Of Florida, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 193 | ||
Payments for business acquisitions | $ 131 | ||
Business acquisition, percentage of voting interests acquired (as a percentage) | 100.00% | ||
Assumption of debt | $ 62 | ||
Integration related costs | $ 3 | ||
Unified Grocers, Inc. | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 390 | ||
Payments for business acquisitions | $ 114 | ||
Business acquisition, percentage of voting interests acquired (as a percentage) | 100.00% | ||
Assumption of debt | $ 276 | ||
Integration related costs | $ 3 |
Business Acquisitions Assets Ac
Business Acquisitions Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 08, 2017 | Jun. 16, 2018 | Feb. 24, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 775 | $ 780 | |
Associated Grocers Of Florida, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1 | 1 | |
Accounts receivable | 49 | 49 | |
Inventories | 48 | 48 | |
Other current assets | 4 | 4 | |
Property, plant and equipment | 84 | 94 | |
Goodwill | 44 | 39 | |
Intangible assets | 52 | 48 | |
Deferred tax assets | (28) | (29) | |
Other assets | 4 | 4 | |
Accounts payable | (53) | (53) | |
Other current liabilities | (13) | (13) | |
Long-term debt and capital lease obligations | (60) | (60) | |
Other liabilities assumed | (1) | (1) | |
Total fair value of net assets acquired | 131 | 131 | |
Assumed obligations to make patronage payments to member-owners | 5 | 5 | |
Less cash acquired | (1) | (1) | |
Total consideration for acquisition, less cash acquired | $ 135 | $ 135 |
Business Acquisitions Schedule
Business Acquisitions Schedule of Intangible Assets Acquired (Details) - Associated Grocers Of Florida, Inc. [Member] - USD ($) $ in Millions | Dec. 08, 2017 | Jun. 16, 2018 |
Business Acquisition [Line Items] | ||
Intangible assets | $ 52 | $ 48 |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Weighted average useful life of acquired intangible assets (in years) | 15 years | |
Intangible assets | 43 | |
Off-Market Favorable Lease [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 5 | |
Minimum | Off-Market Favorable Lease [Member] | ||
Business Acquisition [Line Items] | ||
Weighted average useful life of acquired intangible assets (in years) | 2 years | |
Maximum | Off-Market Favorable Lease [Member] | ||
Business Acquisition [Line Items] | ||
Weighted average useful life of acquired intangible assets (in years) | 5 years |
Business Acquisitions Schedul53
Business Acquisitions Schedule of Pro-Forma Information (Details) - SUPERVALU Inc. $ / shares in Units, $ in Millions | 4 Months Ended |
Jun. 16, 2018USD ($)$ / shares | |
Business Combination Segment Allocation [Line Items] | |
Net sales | $ | $ 4,869 |
Net earnings from continuing operations attributable to SUPERVALU INC. | $ | $ 5 |
Basic net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. (earnings per share) | $ / shares | $ 0.14 |
Diluted net (loss) earnings from continuing operations per share attributable to SUPERVALU INC. (earnings per share) | $ / shares | $ 0.14 |
Reserves for Closed Propertie54
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges - Changes in Company's Reserves (Detail) $ in Millions | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Reserves for closed properties at beginning of the fiscal year | $ 14 |
Additions | 7 |
Payments | (2) |
Adjustments | (1) |
Reserves for closed properties at the end of period | $ 18 |
Reserves for Closed Propertie55
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 | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Carrying value | $ 5 | $ 0 |
Fair value measured using Level 3 inputs | 1 | 0 |
Impairment charge | $ 4 | $ 0 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Change in Company's Goodwill (Detail) $ in Millions | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 780 |
Goodwill, Ending Balance | 775 |
Wholesale | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 780 |
Goodwill, Additions | 0 |
Goodwill, Impairment Loss | 0 |
Goodwill, Other Increase (Decrease) | (5) |
Goodwill, Ending Balance | $ 775 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets Goodwill and Intangible Assets - Detail of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Finite-Lived Intangible Assets, Gross | $ 194 | $ 198 |
Finite-Lived Intangible Assets, Accumulated Amortization | 78 | 72 |
Intangible assets, net | 121 | 131 |
Finite-Lived Intangible Assets, Net | 116 | 126 |
Intangible Assets, Gross (Excluding Goodwill) | 199 | 203 |
Trade Names [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 5 | 5 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Gross | 173 | 177 |
Finite-Lived Intangible Assets, Accumulated Amortization | 70 | 66 |
Finite-Lived Intangible Assets, Net | 103 | 111 |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets, Gross | 21 | 21 |
Finite-Lived Intangible Assets, Accumulated Amortization | 8 | 6 |
Finite-Lived Intangible Assets, Net | $ 13 | $ 15 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 5 | $ 3 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Future Amortization Expense (Detail) $ in Millions | Jun. 16, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining 2,019 | $ 9 |
2,020 | 12 |
2,021 | 12 |
2,022 | 10 |
2,023 | 10 |
2,024 | $ 8 |
Fair Value Measurements Recur60
Fair Value Measurements Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 5 | $ 4 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 4 | 4 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | 2 | |
Other Current Assets | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 1 | |
Other Current Assets | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | 2 | |
Other Current Assets | Fair Value, Inputs, Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Other Current Assets | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | 0 | |
Other Current Assets | Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 1 | |
Other Current Assets | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | 0 | |
Other Current Assets | Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | 4 | |
Other Assets | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | $ 2 | 4 |
Other Assets | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | 0 | |
Other Assets | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual Funds Asset, Fair Value Disclosure | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 4 Months Ended | ||
Jun. 16, 2018 | Jun. 17, 2017 | Feb. 24, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Difference between fair value and book value of notes receivable | $ 2 | $ 1 | |
Difference between fair value and book value of long-term debt | 11 | $ 23 | |
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 | 2 | ||
Derivative, Fair Value, Effect of One Percentage Point Decrease in Interest Rate | 2 | ||
Interest expense, net | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 1 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Debt Instrument [Line Items] | ||
Other Long-term Debt | $ (20) | $ (24) |
Debt financing costs, net | (2) | (3) |
Total Debt | 1,432 | 1,732 |
Debt, Current | 0 | (8) |
Long-term debt | 1,432 | 1,724 |
Secured Debt | 5.48 Percent Secured Term Loan Facility Due March Two Thousand Nineteen [Member] [Domain] | ||
Debt Instrument [Line Items] | ||
Secured debt | 698 | 834 |
Senior Notes [Member] | six point seven five percent due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 180 | 400 |
Senior Notes [Member] | seven point seven five percent senior notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 350 | 350 |
Senior Notes [Member] | 5.0 percent due 2022-2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 31 | 48 |
Revolving Credit Facility [Member] | 4.24 percent due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 195 | $ 127 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||||||
Dec. 02, 2017USD ($) | Jun. 16, 2018USD ($) | Jun. 17, 2017USD ($) | Dec. 02, 2017USD ($) | May 09, 2018USD ($) | May 02, 2018USD ($) | Feb. 24, 2018USD ($) | Sep. 09, 2017USD ($) | Feb. 25, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||
Capitalized debt financing costs | $ 2 | $ 3 | |||||||
Write-off of unamortized debt financing costs | $ 0 | ||||||||
Debt Instrument, Prepayment Of Loan | $ 0 | $ 0 | |||||||
Revolving ABL Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate cap on restricted payments | $ 502 | ||||||||
Dividends permitted per fiscal year | 75 | ||||||||
Total dividends permitted | $ 175 | ||||||||
London Interbank Offered Rate (LIBOR) | Minimum | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate at the rate of LIBOR | 1.00% | ||||||||
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 | ||||||||
Capitalized debt financing costs | 5 | ||||||||
Amortization of debt financing costs | 3 | ||||||||
Amortization of debt discount (premium) | 2 | ||||||||
Write-off of unamortized debt financing costs | $ 2 | ||||||||
Term Loan Facility | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment period prior to maturity | 91 days | 91 days | |||||||
Line of credit facility amount outstanding, current | $ 0 | $ 0 | $ 8 | ||||||
Percentage of net cash proceeds to prepay outstanding loans | 100.00% | ||||||||
Maximum period for prepayment of loans outstanding (in days) | 90 days | ||||||||
Term Loan Facility | Minimum | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of aggregate principal amount to prepay outstanding loans | 0.00% | ||||||||
Term Loan Facility | Maximum | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of aggregate principal amount to prepay outstanding loans | 50.00% | ||||||||
Term Loan Facility | Revolving ABL Credit Facility | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Company's five year asset-based revolving facility | $ 1,000 | $ 1,000 | |||||||
6.75% Senior Notes due June 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 6.75% | 6.75% | 6.75% | ||||||
Write-off of unamortized debt financing costs | $ 0 | ||||||||
7.75% Senior Notes due November 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, interest rate | 7.75% | 7.75% | 7.75% | ||||||
Secured Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum distributions allowable per debt covenant | $ 125 | ||||||||
Leverage Ratio Required For Additional Earnings Distributions, Debt Covenant | 3.5 | ||||||||
Senior Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage Ratio Required For Additional Earnings Distributions, Debt Covenant | 2 | ||||||||
Property, Plant and Equipment | Term Loan Facility | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Collateral amount pledged | $ 518 | $ 710 |
Long-Term Debt Long-Term Debt -
Long-Term Debt Long-Term Debt - Schedule of Secured Assets and Unused Available Credit and Fees (Details) - Revolving Credit Facility [Member] - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Debt Instrument [Line Items] | ||
Outstanding letters of credit | $ 57 | $ 57 |
Letters of credit fees (as a percentage) | 1.375% | 1.375% |
Unused available credit | $ 748 | $ 816 |
Unused facility fees | 0.25% | 0.25% |
Inventories | ||
Debt Instrument [Line Items] | ||
Collateral amount pledged | $ 1,306 | $ 1,176 |
Accounts Receivable | ||
Debt Instrument [Line Items] | ||
Collateral amount pledged | 436 | 410 |
Cash and Cash Equivalents | ||
Debt Instrument [Line Items] | ||
Collateral amount pledged | $ 20 | $ 20 |
Long-Term Debt Debentures (Deta
Long-Term Debt Debentures (Details) - USD ($) $ in Millions | 4 Months Ended | ||
Jun. 16, 2018 | Feb. 24, 2018 | Dec. 02, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,432 | $ 1,724 | |
Debt Instrument, Redemption | 220 | ||
Redemption Premium | $ 0 | ||
Write-off of unamortized debt financing costs | $ 0 | ||
Six Point Seven Five Percent Senior Notes Due June Two Thousand Twenty One [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.75% | 6.75% | |
Write-off of unamortized debt financing costs | $ 0 | ||
SevenPointSevenFivePercentSeniorNotesDueNovemberTwoThousandTwentyTwo [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 7.75% | 7.75% | |
Senior Notes [Member] | seven point seven five percent senior notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 350 | 350 | |
Senior Notes [Member] | six point seven five percent due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 180 | $ 400 |
Leases Additional Detail (Detai
Leases Additional Detail (Details) | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Leases [Abstract] | |
Aggregate Proceeds Sale leaseback | $ 382 |
Properties for sale leaseback | eight |
Deferred gain | $ 91 |
Leases Rent Expense and Subtena
Leases Rent Expense and Subtenant Rentals (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Leases [Abstract] | ||
Minimum rent | $ 38 | $ 27 |
Contingent rent | 0 | 1 |
Rent expense(1) | 38 | 28 |
Less subtenant rentals | 10 | 8 |
Total net rent expense | 28 | 20 |
Rent expense discontinued operations | $ 3 | $ 4 |
Leases Noncancellable Operating
Leases Noncancellable Operating Leases and Capital Leases (Details) - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 |
Leases [Abstract] | ||
Remaining Fiscal 2019 | $ 71 | |
2,020 | 110 | |
2,021 | 105 | |
2,022 | 91 | |
2,023 | 79 | |
Thereafter | 835 | |
Total future minimum obligations | 1,291 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remaining Fiscal 2019 | 27 | |
2,020 | 38 | |
2,021 | 34 | |
2,022 | 30 | |
2,023 | 23 | |
Thereafter | 84 | |
Total future minimum obligations | 236 | |
Less interest | (70) | |
Present value of net future minimum obligations | 166 | |
Less current capital lease obligations | (25) | |
Long-term capital lease obligations | $ 141 | $ 149 |
Leases Future Minimum Lease and
Leases Future Minimum Lease and Subtenant Rentals Under Noncancellable Leases (Details) $ in Millions | Jun. 16, 2018USD ($) |
Operating Leases [Abstract] | |
Remaining Fiscal 2019 | $ 16 |
2,020 | 24 |
2,021 | 20 |
2,022 | 17 |
2,023 | 11 |
Thereafter | 32 |
Total minimum lease receipts | 120 |
Direct Financing Leases [Abstract] | |
Remaining Fiscal 2019 | 0 |
2,020 | 1 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 0 |
Total minimum lease receipts | $ 1 |
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 | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 28 | $ 24 |
Expected return on assets | (40) | (40) |
Amortization of prior service benefit | 0 | 0 |
Amortization of net actuarial loss | 4 | 3 |
Net periodic benefit expense (income) | (8) | (13) |
Contributions to benefit plans | (5) | (1) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0 | 0 |
Expected return on assets | 0 | 0 |
Amortization of prior service benefit | (4) | (5) |
Amortization of net actuarial loss | 0 | 1 |
Net periodic benefit expense (income) | (4) | (4) |
Contributions to benefit plans | $ 0 | $ 0 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Multiemployer Plan, Contributions by Employer | $ 13 | $ 10 |
Pension Benefits | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 5 | |
Pension Benefits | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 10 |
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 | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Earnings Per Share [Abstract] | ||
Net (loss) earnings from continuing operations | $ (27) | $ 9 |
Less net earnings attributable to noncontrolling interests | 0 | (1) |
Net (loss) earnings from continuing operations attributable to SUPERVALU INC. | (27) | 8 |
Income from discontinued operations, net of tax | 6 | 3 |
Net (loss) earnings attributable to SUPERVALU INC. | $ (21) | $ 11 |
Weighted average number of shares outstanding-basic | 38 | 38 |
Dilutive impact of stock-based awards | 0 | 0 |
Weighted average number of shares outstanding-diluted | 38 | 38 |
Basic net (loss) earnings per share attributable to SUPERVALU INC.:(1) | ||
Continuing operations (in dollars per share) | $ (0.70) | $ 0.21 |
Discontinued operations (in dollars per share) | 0.15 | 0.08 |
Basic net earnings per share (in dollars per share) | (0.55) | 0.30 |
Diluted net (loss) earnings per share attributable to SUPERVALU INC.:(1) | ||
Continuing operations (in dollars per share) | (0.70) | 0.21 |
Discontinued operations (in dollars per share) | 0.15 | 0.08 |
Diluted net earnings per share (in dollars per share) | $ (0.55) | $ 0.30 |
Net Earnings (Loss) Per Share -
Net Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions | 4 Months Ended | ||||
Jun. 16, 2018 | Jun. 17, 2017 | Feb. 24, 2018 | Aug. 01, 2017 | Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share | 2 | 2 | |||
Common stock, shares authorized | 57 | 57 | 57 | ||
Common stock, shares issued | 39 | 38 | 38 | 269 |
Comprehensive Income and Accu74
Comprehensive Income and Accumulated Other Comprehensive Loss - Schedule of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 4 Months Ended | ||||
Jun. 16, 2018 | Jun. 17, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | $ 488 | $ 397 | $ 507 | $ 383 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Net current-period Other comprehensive income | [1] | 0 | 0 | ||
Net current-period Other comprehensive income | 0 | 0 | |||
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | (271) | (276) | (210) | (276) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Net current-period Other comprehensive income | 0 | 0 | |||
Adoption of ASU 2018-02 | (61) | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | 0 | (2) | 0 | (2) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Net current-period Other comprehensive income | 0 | 0 | |||
Adoption of ASU 2018-02 | 0 | ||||
AOCI Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated other comprehensive loss | (271) | (278) | $ (210) | $ (278) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Net current-period Other comprehensive income | 0 | $ 0 | |||
Adoption of ASU 2018-02 | $ (61) | ||||
[1] | Amounts are net of tax expense (benefit) of $0 and $(1) for the first quarters of fiscal 2019 and 2018, respectively. |
Comprehensive Income and Accu75
Comprehensive Income and Accumulated Other Comprehensive Loss - Summary of Items Reclassified Out of Pension and Postretirement Benefit Plan Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications | $ 0 | $ (1) |
Total reclassifications, net of tax | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Net periodic benefit income, excluding service cost | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications | 0 | (1) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | Income tax (benefit) provision | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense | 0 | (1) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications, net of tax | 0 | 0 |
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] | ||
Income tax expense | 0 | 1 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest expense, net | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications | $ 0 | $ 1 |
Comprehensive Income and Accu76
Comprehensive Income and Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Millions | Jun. 16, 2018USD ($) |
Equity [Abstract] | |
Amount expected to be reclassified out of Accumulated other comprehensive loss into Interest expense | $ (1) |
Stock-Based Awards Stock-Based
Stock-Based Awards Stock-Based Awards Compensation Expense (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Stock-Based Awards [Abstract] | ||
Share-based Compensation | $ 6 | $ 6 |
Stock-Based Awards Stock-Base78
Stock-Based Awards Stock-Based Awards Annual Grant (Details) shares in Thousands | 4 Months Ended |
Jun. 16, 2018$ / sharesshares | |
Cash settled RSUs(1) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 637 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 16.53 |
RSUs1 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 723 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 16.53 |
PSUs2 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 453 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 14.93 |
Stock-Based Awards Stock-Base79
Stock-Based Awards Stock-Based Awards Performance Awards Valuation (Details) - PSUs(2) | 4 Months Ended |
Jun. 16, 2018 | |
Dividend yield | 0.00% |
Volatility rate | 47.00% |
Risk-free interest rate | 2.70% |
Expected life | 3 years 9 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Income Tax Disclosure [Abstract] | ||
Discrete tax expense | $ 0 | $ 5 |
Commitments, Contingencies an81
Commitments, Contingencies and Off-Balance Sheet Arrangements Commitment, Contingencies and Off-Balance Sheet Arrangements - Guarantees and Contingent Liabilities (Details) $ in Millions | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Other Commitments [Line Items] | |
Remaining Term For Guarantee For Other Debt Obligation Minimum | 1 year |
Remaining Term For Guarantee For Other Debt Obligation Maximum | 13 years |
Remaining Term For Guarantee For Other Debt Obligation Weighted Average | 7 years |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 50 |
Guarantee Obligation Maximum Exposure Discounted | 39 |
New Albertsons Inc [Member] | |
Other Commitments [Line Items] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 65 |
Guarantee Obligation Maximum Exposure Discounted | $ 59 |
Commitments, Contingencies an82
Commitments, Contingencies and Off-Balance Sheet Arrangements Commitments, Contingencies and Off Balance Sheet Arrangements - Agreements (Details) - USD ($) $ in Millions | Mar. 21, 2013 | Jun. 16, 2018 |
Other Commitments [Line Items] | ||
Professional Services Agreement, Base Amount | $ 30 | |
Services Revenues [Member] | ||
Other Commitments [Line Items] | ||
Proceeds from Aggregate Fees | $ 50 | |
Incremental Aggregate Fees | $ 6 |
Commitments, Contingencies an83
Commitments, Contingencies and Off-Balance Sheet Arrangements -Haggen and Other Contractual (Detail) $ in Millions | Sep. 08, 2015USD ($)Store | Jun. 16, 2018USD ($) | Feb. 24, 2018USD ($) | Oct. 11, 2016USD ($) |
Guarantor Obligations [Line Items] | ||||
Receivables, net | $ 632 | $ 590 | ||
Purchase Obligation | $ 375 | |||
Haggen, Inc, Existing [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Number of Stores | Store | 164 | |||
Haggen, Inc [Member] | Trade Accounts Receivable [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Receivables, net | $ 2 | |||
Haggen, Inc [Member] | Other Claims Receivable [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Bankruptcy Claims, Amount of Claims Filed | $ 8 | |||
Settled Litigation [Member] | Haggen, Inc [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Cash | $ 3 | |||
Administrative Expense Priority Claim | 6 | |||
Settled Litigation [Member] | Haggen, Inc [Member] | Trade Accounts Receivable [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Receivables, net | $ 2 |
Commitments, Contingencies an84
Commitments, Contingencies and Off-Balance Sheet Arrangements Commitments, Contingencies and Off Balance Sheet Arrangements - Legal Proceedings (Details) $ in Millions | May 25, 2017USD ($) | Aug. 31, 2014case | Jun. 16, 2018$ / d | Dec. 02, 2017 | Feb. 28, 2015USD ($) | Jun. 16, 2018$ / yr |
Other Commitments [Line Items] | ||||||
Loss Contingency, Number of Plaintiffs | 3 | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 9 | |||||
Insurance Coverage Amount | $ 0 | |||||
Insurance Claims Deductible Amount | $ 0 | |||||
Judicial Ruling [Member] | ||||||
Other Commitments [Line Items] | ||||||
Loss Contingency, Number of Plaintiffs | 5 | |||||
Threatened Litigation [Member] | ||||||
Other Commitments [Line Items] | ||||||
Loss Contingency, Number of Plaintiffs | 1 | |||||
2014 Technology Intrusion [Member] | ||||||
Other Commitments [Line Items] | ||||||
Loss Contingency, New Claims Filed, Number | case | 4 | |||||
Office for Civil Rights of the U.S. Department of Health and Human Services Compliance Review [Member] | ||||||
Other Commitments [Line Items] | ||||||
Loss Contingency, Range of Possible Loss, Maximum, Per Unit | 50,000 | 1,500,000 |
Segment Information Segment Inf
Segment Information Segment Information (Details) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 4,755 | $ 3,517 |
Cost of sales | 4,327 | 3,086 |
Gross profit | 428 | 431 |
Selling and administrative expenses | 428 | 387 |
Operating earnings | 0 | 44 |
Interest expense, net | 49 | 43 |
Net periodic benefit income, excluding service cost | (12) | (17) |
Equity in earnings of unconsolidated affiliates | 0 | 2 |
Earnings from continuing operations before tax | (37) | 20 |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,814 | 2,556 |
Cost of sales | 3,676 | 2,437 |
Gross profit | 138 | 119 |
Selling and administrative expenses | 90 | 61 |
Operating earnings | 48 | 58 |
Retail | ||
Segment Reporting Information [Line Items] | ||
Net sales | 901 | 906 |
Cost of sales | 651 | 649 |
Gross profit | 250 | 257 |
Selling and administrative expenses | 270 | 257 |
Operating earnings | (20) | 0 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Net sales | 40 | 55 |
Cost of sales | 0 | 0 |
Gross profit | 40 | 55 |
Selling and administrative expenses | 68 | 69 |
Operating earnings | $ (28) | $ (14) |
Discontinued Operations - Summa
Discontinued Operations - Summary of Company's Operating Results and Certain Other Directly Attributable Expenses (Detail) - USD ($) $ in Millions | 4 Months Ended | |
Jun. 16, 2018 | Jun. 17, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net sales | $ 350 | $ 487 |
Cost of sales | 267 | 367 |
Gross profit | 83 | 120 |
Selling and administrative expenses | 112 | 115 |
Gain on sale | (37) | 0 |
Operating earnings | 8 | 5 |
Interest expense, net | 0 | 0 |
Earnings from discontinued operations before income taxes | 8 | 5 |
Income tax provision | 2 | 2 |
Income from discontinued operations, net of tax | $ 6 | $ 3 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 16, 2018 | Feb. 24, 2018 | Jun. 17, 2017 |
Current assets | |||
Cash and cash equivalents | $ 5 | $ 7 | $ 6 |
Receivables, net | 5 | 8 | |
Inventories, net | 70 | 109 | |
Other current assets | 4 | 6 | |
Current assets of discontinued operations | 84 | 130 | |
Long-term assets [Abstract] | |||
Property, plant and equipment, net | 56 | 74 | |
Intangible assets, net | 0 | 1 | |
Deferred tax assets | 8 | 8 | |
Other assets | 1 | 1 | |
Long-term assets of discontinued operations | 65 | 84 | |
Total assets of discontinued operations | 149 | 214 | |
Current liabilities | |||
Accounts payable | 39 | 51 | |
Accrued vacation, compensation and benefits | 26 | 20 | |
Current maturities of capital lease obligations | 2 | 2 | |
Other current liabilities | 11 | 9 | |
Current liabilities of discontinued operations | 78 | 82 | |
Liabilities, Noncurrent [Abstract] | |||
Long-term capital lease obligations | 14 | 14 | |
Other long-term liabilities | 1 | 3 | |
Long-term liabilities of discontinued operations | 15 | 17 | |
Total liabilities of discontinued operations | 93 | 99 | |
Net assets of discontinued operations | $ 56 | $ 115 |
Discontinued Operations Additio
Discontinued Operations Additional Detail (Details) | 4 Months Ended |
Jun. 16, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Income Tax Provision on Divestiture of Business | $ 1 |
Farm Fresh [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from Divestiture of Businesses | $ 53 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Event (Details) - UNFI SUPERVALU Merger [Member] | Jun. 16, 2018USD ($)$ / shares |
Subsequent Event [Line Items] | |
Business Acquisition, Share Price | $ / shares | $ 32.50 |
Proposed Business Acquisition, Termination Fee | $ | $ 40.5 |