Document and Company Informatio
Document and Company Information (USD $) | |||
6 Months Ended
Sep. 12, 2009 | Oct. 16, 2009
| Sep. 05, 2008
| |
Document and Company Information [Abstract] | |||
Entity Registrant Name | SUPERVALU INC | ||
Entity Central Index Key | 0000095521 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-09-12 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-27 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $5,026,733,967 | ||
Entity Common Stock, Shares Outstanding | 212,005,107 |
Condensed Consolidated Segment
Condensed Consolidated Segment Financial Information (Unaudited) (USD $) | ||||
In Millions | 3 Months Ended
Sep. 12, 2009 | 3 Months Ended
Sep. 06, 2008 | 6 Months Ended
Sep. 12, 2009 | 6 Months Ended
Sep. 06, 2008 |
Net sales | ||||
Net sales | $9,461 | $10,226 | $22,176 | $23,573 |
Net Sales | 100 | 100 | 100 | 100 |
Operating earnings | ||||
Operating earnings | 245 | 342 | 607 | 798 |
% of sales | 2.6 | 3.3 | 2.7 | 3.4 |
Interest expense, net | 131 | 141 | 308 | 331 |
Earnings before income taxes | 114 | 201 | 299 | 467 |
Income tax provision | 40 | 73 | 112 | 177 |
Net earnings | 74 | 128 | 187 | 290 |
Retail Food Member | ||||
Net sales | ||||
Net sales | 7,411 | 7,961 | 17,311 | 18,307 |
Net Sales | 78.3 | 77.9 | 78.1 | 77.7 |
Operating earnings | ||||
Operating earnings | 188 | 284 | 499 | 683 |
% of sales | 2.5 | 3.6 | 2.9 | 3.7 |
Supply Chain Services Member | ||||
Net sales | ||||
Net sales | 2,050 | 2,265 | 4,865 | 5,266 |
Net Sales | 21.7 | 22.1 | 21.9 | 22.3 |
Operating earnings | ||||
Operating earnings | 63 | 77 | 145 | 163 |
% of sales | 3 | 3.4 | 3 | 3.1 |
Corporate Member | ||||
Operating earnings | ||||
Operating earnings | ($6) | ($19) | ($37) | ($48) |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) (USD $) | ||||
In Millions, unless otherwise specified | 3 Months Ended
Sep. 12, 2009 | 3 Months Ended
Sep. 06, 2008 | 6 Months Ended
Sep. 12, 2009 | 6 Months Ended
Sep. 06, 2008 |
Net sales | $9,461 | $10,226 | $22,176 | $23,573 |
Cost of sales | 7,372 | 7,937 | 17,240 | 18,219 |
Gross profit | 2,089 | 2,289 | 4,936 | 5,354 |
Selling and administrative expenses | 1,844 | 1,947 | 4,329 | 4,556 |
Operating earnings | 245 | 342 | 607 | 798 |
Interest expense, net | 131 | 141 | 308 | 331 |
Earnings before income taxes | 114 | 201 | 299 | 467 |
Income tax provision | 40 | 73 | 112 | 177 |
Net earnings | $74 | $128 | $187 | $290 |
Net earnings per share-basic | 0.35 | 0.6 | 0.88 | 1.37 |
Net earnings per share-diluted | 0.35 | 0.6 | 0.88 | 1.36 |
Dividends declared per share | 0.175 | 0.1725 | 0.3475 | 0.3425 |
Weighted average number of shares outstanding: | ||||
Basic | 212 | 211 | 212 | 211 |
Diluted | 213 | 213 | 213 | 213 |
1_Condensed Consolidated Statem
Condensed Consolidated Statements of Earnings (Percent To Sales) (Unaudited) (USD $) | ||||
3 Months Ended
Sep. 12, 2009 | 3 Months Ended
Sep. 06, 2008 | 6 Months Ended
Sep. 12, 2009 | 6 Months Ended
Sep. 06, 2008 | |
Net Sales | 100 | 100 | 100 | 100 |
Cost of sales | 77.9 | 77.6 | 77.7 | 77.3 |
Gross profit | 22.1 | 22.4 | 22.3 | 22.7 |
Selling and administrative expenses | 19.5 | 19 | 19.5 | 19.3 |
Operating earnings | 2.6 | 3.3 | 2.7 | 3.4 |
Interest expense percent to net sales, net | 1.4 | 1.4 | 1.4 | 1.4 |
Earnings before income taxes | 1.2 | 2 | 1.3 | 2 |
Income tax provision | 0.4 | 0.7 | 0.5 | 0.8 |
Net earnings | 0.8 | 1.3 | 0.8 | 1.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (USD $) | ||
In Millions | Sep. 12, 2009
| Feb. 28, 2009
|
Current assets | ||
Cash and cash equivalents | $269 | $240 |
Receivables, net | 862 | 874 |
Inventories | 2,655 | 2,709 |
Other current assets | 399 | 282 |
Total current assets | 4,185 | 4,105 |
Property, plant and equipment, net | 7,305 | 7,528 |
Goodwill | 3,733 | 3,748 |
Intangible assets, net | 1,535 | 1,584 |
Other assets | 562 | 639 |
Total assets | 17,320 | 17,604 |
Current liabilities | ||
Accounts payable and accrued liabilities | 3,134 | 3,067 |
Current maturities of long-term debt and capital lease obligations | 244 | 516 |
Other current liabilities | 837 | 889 |
Total current liabilities | 4,215 | 4,472 |
Long-term debt and capital lease obligations | 7,900 | 7,968 |
Other liabilities | 2,494 | 2,583 |
Stockholders' equity | ||
Common stock, $1.00 par value: 400 shares authorized; 230 shares issued | 230 | 230 |
Capital in excess of par value | 2,852 | 2,853 |
Accumulated other comprehensive loss | (496) | (503) |
Retained earnings | 655 | 542 |
Treasury stock, at cost, 18 and 18 shares, respectively | (530) | (541) |
Total stockholders' equity | 2,711 | 2,581 |
Total liabilities and stockholders' equity | $17,320 | $17,604 |
2_Condensed Consolidated Balanc
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Share data in Millions | Sep. 12, 2009
| Feb. 28, 2009
|
Common stock, par value (not in millions) | 1 | 1 |
Common stock, shares authorized | 400 | 400 |
Common stock, shares issued | 230 | 230 |
Treasury stock, shares | 18 | 18 |
3_Condensed Consolidated Statem
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
In Millions | 6 Months Ended
Sep. 12, 2009 | 6 Months Ended
Sep. 06, 2008 |
Cash flows from operating activities | ||
Net earnings | $187 | $290 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 515 | 569 |
LIFO charge | 21 | 37 |
Gain on sale of assets | (21) | (11) |
Asset impairment and other charges | 20 | 1 |
Deferred income taxes | 120 | 59 |
Stock-based compensation | 20 | 28 |
Other | 14 | (10) |
Changes in operating assets and liabilities | (36) | (218) |
Net cash provided by operating activities | 840 | 745 |
Cash flows from investing activities | ||
Proceeds from sale of assets | 22 | 65 |
Purchases of property, plant and equipment | (396) | (665) |
Other | 5 | 15 |
Net cash used in investing activities | (369) | (585) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 943 | 276 |
Payment of long-term debt and capital lease obligations | (1,306) | (318) |
Dividends paid | (73) | (73) |
Payment for purchase of treasury shares | 0 | (23) |
Other | (6) | 8 |
Net cash used in financing activities | (442) | (130) |
Net increase in cash and cash equivalents | 29 | 30 |
Cash and cash equivalents at beginning of year | 240 | 243 |
Cash and cash equivalents at the end of period | $269 | $273 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Statement of Registrant The accompanying condensed consolidated financial statements of the Company for the second quarter and year-to-date ended September12, 2009 and September6, 2008 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 and results of operations for such periods. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Companys Annual Report on Form 10-K for the fiscal year ended February28, 2009. The results of operations for the second quarter and year-to-date ended September12, 2009 are not necessarily indicative of the results expected for the full year. The Condensed Consolidated Balance Sheet as of February28, 2009 has been derived from the audited Consolidated Balance Sheet as of that date. Accounting Policies The summary of significant accounting policies is included in the Notes to Consolidated Financial Statements set forth in the Companys Annual Report on Form 10-K for the fiscal year ended February 28, 2009. Fiscal Year The Companys fiscal year ends on the last Saturday in February. The Companys first quarter consists of 16weeks, while the second, third and fourth quarters each consist of 12weeks, except for the fourth quarter of fiscal 2009 which consisted of 13weeks. Because of differences in the accounting calendars of the Company and its wholly-owned subsidiary, New Albertsons, Inc., the accompanying September12, 2009 and February28, 2009 Condensed Consolidated Balance Sheets include the assets and liabilities related to New Albertsons, Inc. as of September10, 2009 and February 26, 2009, respectively. Use of Estimates The preparation of the Companys 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 The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. The Companys banking arrangements allow the Company to fund outstanding checks when presented to the financial institution for payment, resulting in book overdrafts. Book overdrafts are recorded in Accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheets and are reflected as an operating activity in the Condensed Consolidated Statements of Cash Flows. As of September12, 2009 and February28, 2009, the Company had net book overdrafts of $376 and $389, respectively. Net Earnings Per Share Basic net earnings per share is calculated using net earnings available to common stockholders divided by the weighted average number of shares |
New Accounting Standards
New Accounting Standards | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
New Accounting Standards [Abstract] | |
NEW ACCOUNTING STANDARDS | NOTE 2 NEW ACCOUNTING STANDARDS In December2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) FAS 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets. FSP FAS 132(R)-1 provides additional guidance regarding disclosures about plan assets of defined benefit pension or other postretirement plans. FSP FAS 132(R)-1 will be effective for the Companys fiscal year ending February27, 2010. The adoption of FSP FAS 132(R)-1 will result in enhanced disclosures, but will not otherwise have an impact on the Companys consolidated financial statements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Goodwill and Intangible Assets [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 3 GOODWILL AND INTANGIBLE ASSETS As of September12, 2009, the Company had $3,733 of Goodwill; $2,926 related to its Retail food segment and $807 related to its Supply chain services segment. Changes in the Companys Goodwill and Intangible assets consisted of the following: February 28, Additions/ Other net September 12, 2009 Amortization Impairments adjustments 2009 Goodwill $ 3,748 $ $ $ (15 ) $ 3,733 Intangible assets: Trademarks and tradenames indefinite lived $ 1,069 $ $ (10 ) $ $ 1,059 Favorable operating leases, customer lists, customer relationships and other (accumulated amortization of $217 and $197 as of September12, 2009 and February28, 2009, respectively) 706 4 (22 ) 688 Non-compete agreements (accumulated amortization of $5 and $4 as of September 12, 2009 and February28, 2009, respectively) 10 1 (1 ) 10 Total intangible assets 1,785 5 (10 ) (23 ) 1,757 Accumulated amortization (201 ) (32 ) 11 (222 ) Total intangible assets, net $ 1,584 $ 1,535 Amortization expense of intangible assets with a definite life was $32 and $35 for the year-to-date ended September12, 2009 and September6, 2008, respectively. Future amortization expense will be approximately $50 per fiscal year for each of the next five fiscal years. On July28, 2009, the Company announced that it reached an agreement for the sale of 36 Albertsons stores located in Utah which are part of the Retail food segment. As a result of this agreement, during the second quarter the Company recorded an impairment charge of $10 to its indefinite-lived Albertsons trademark and reclassified $15 of Goodwill and $116 of Property, plant and equipment and other intangible assets to assets held for sale. Assets held for sale is a component of Other current assets in the Condensed Consolidated Balance Sheets. |
Reserves for Closed Properties
Reserves for Closed Properties | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Reserves for Closed Properties [Abstract] | |
RESERVES FOR CLOSED PROPERTIES | NOTE 4 RESERVES FOR CLOSED PROPERTIES The Company maintains reserves for costs associated with closures of retail stores, distribution centers and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using a discount rate to calculate the present value of the remaining noncancellable lease payments after the closing date, reduced by estimated subtenant rentals that could be reasonably obtained for the property. Adjustments to closed property reserves primarily relate to changes in subtenant income or actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the changes become known. Changes in the Companys reserves for closed properties consisted of the following: September 12, 2009 Balance at beginning of year $ 167 Additions 1 Payments (30 ) Adjustments 1 Balance at end of quarter $ 139 |
Fair Value Measurements
Fair Value Measurements | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; Level 3 Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions about the assumptions that market participants would use in valuing. During the second quarter ended September12, 2009, the Company recorded $15 of asset impairment charges, which were measured at fair value using Level 3 inputs. The impairment charges are a component of Selling and administrative expenses in the Condensed Consolidated Statements of Earnings. Financial Instruments For certain of the Companys financial instruments, including cash and cash equivalents, receivables and accounts payable, the fair values approximate book values due to their short maturities. The estimated fair value of notes receivable was less than the book value by $1 and $8 as of September12, 2009 and February28, 2009, respectively. Notes receivable are valued based on a discounted cash flow approach applying a rate that is comparable to publicly traded instruments of similar credit quality. The estimated fair value of the Companys long-term debt (including current maturities) was less than the book value by $153 and $452 as of September12, 2009 and February28, 2009, respectively. The estimated fair value was based on market quotes, where available, or market values for similar instruments. |
Long Term Debt
Long Term Debt | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Long-Term Debt [Abstract] | |
LONG-TERM DEBT | NOTE 6 LONG-TERM DEBT The Companys long-term debt and capital lease obligations consisted of the following: September 12, February 28, 2009 2009 1.14% to 3.25% Revolving Credit Facility and Variable Rate Notes due June2011 June2012 $ 1,825 $ 1,920 8.00% Notes due May2016 1,000 7.50% Notes due February2011 700 700 7.45% Debentures due August2029 650 650 7.50% Notes due November2014 500 500 6.34% to 7.15% Medium Term Notes due July2009 June2028 440 512 8.00% Debentures due May2031 400 400 7.50% Notes due May2012 300 300 8.00% Debentures due June2026 272 272 8.70% Debentures due May2030 225 225 7.75% Debentures due June2026 200 200 7.25% Notes due May2013 200 200 8.35% Notes due May2010 165 275 7.90% Debentures due May2017 96 96 6.95% Notes due August2009 350 7.875% Notes due August2009 350 7.50% Debentures due May2037 191 Accounts Receivable Securitization Facility, currently 1.28% 35 120 Other 89 97 Net discount on debt, using an effective interest rate of 6.28% to 8.97% (239 ) (208 ) Capital lease obligations 1,286 1,334 Total debt and capital lease obligations 8,144 8,484 Less current maturities of long-term debt and capital lease obligations (244 ) (516 ) Long-term debt and capital lease obligations $ 7,900 $ 7,968 Certain of the Companys credit facilities and long-term debt agreements have restrictive covenants and cross-default provisions which generally provide, subject to the Companys right to cure, for the acceleration of payments due in the event of a breach of the covenant or a default in the payment of a specified amount of indebtedness due under certain other debt agreements. The Company was in compliance with all such covenants and provisions for all periods presented. In May2009, the Company issued $1,000 in senior notes, which rank equally with all of the Companys other senior unsecured indebtedness. In conjunction with the debt issuance, the Company paid off $191 of 7.50% Debentures due May2037 that contained put options exercised in May2009, early redeemed $60 of 6.77% Medium Term Notes due July2009 and purchased pursuant to a tender offer $232 of 7.875% Notes due August2009, $177 of 6.95% Notes due August2009 and $110 of 8.35% Notes due May2010 for an aggregate payment of $777 in cash. The remainder of the debt issuance proceeds was used to reduce the Revolving Credit Facility. In May2009, the Company amended and extended its 364-day accounts receivable securitization program. The Company can borrow up to $200 on a revolving basis, with borrowings secured by eligible accounts receivable, which remain under the Companys control. Facility fees under this program range from 0.75percent to 2.50percent, based on the Companys credit ratings. The facility fee in effect on September12, 2009, based on the Companys cu |
Income Taxes
Income Taxes | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE 7 INCOME TAXES During the year-to-date ended September 12, 2009, the Company settled tax audits in the amount of $125 utilizing a deposit of $86 as partial payment, which was placed with the Internal Revenue Service by Albertsons, Inc. prior to its acquisition by the Company. |
Stock Based Awards
Stock Based Awards | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Stock-Based Awards [Abstract] | |
STOCK-BASED AWARDS | NOTE 8 STOCK-BASED AWARDS The Company recognized pre-tax stock-based compensation expense (included primarily in Selling and administrative expenses in the Condensed Consolidated Statements of Earnings) related to stock-based awards of $6 and $20 for the second quarter and year-to-date ended September12, 2009, respectively, compared to $4 and $28 for the second quarter and year-to-date ended September6, 2008, respectively. During the year-to-date ended September12, 2009 and September6, 2008, the Company granted 3 and 4 stock options, respectively. To calculate the fair value of stock options, the Company uses the Black-Scholes option pricing model. The significant weighted average assumptions relating to the valuation of the Companys stock options consisted of the following: September 12, September 6, 2009 2008 Dividend yield 2.0 % 2.0 % Volatility rate 38.4 42.2 % 28.1 36.4 % Risk-free interest rate 1.9 2.8 % 2.0 3.6 % Expected option life 4.0 5.4 years 1.0 5.4 years The weighted average grant date fair value of the stock options granted during the year-to-date ended September12, 2009 and September6, 2008 was $4.93 and $7.92, respectively. |
Treasury Stock Purchase Program
Treasury Stock Purchase Program | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Treasury Stock Purchase Program [Abstract] | |
TREASURY STOCK PURCHASE PROGRAM | NOTE 9 TREASURY STOCK PURCHASE PROGRAM On May28, 2009, the Board of Directors of the Company adopted and announced a new annual share repurchase program authorizing the Company to purchase up to $70 of the Companys common stock. Stock purchases will be made primarily from the cash generated from the settlement of stock options. This annual authorization program replaced the previously existing share repurchase program and continues through June2010. The Company did not repurchase any shares during the second quarter and year-to-date ended September12, 2009. As of September12, 2009, there remained $70 available to repurchase the Companys common stock. The Company did not repurchase any shares during the second quarter and year-to-date ended September12, 2009 under previously existing share repurchase programs. During the second quarter and year-to-date ended September6, 2008, the Company purchased 0.6 shares and 0.8 shares, respectively, under previously existing programs at an average cost of $25.88 and $26.92 per share, respectively. |
Benefit Plans
Benefit Plans | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Benefit Plans [Abstract] | |
BENEFIT PLANS | NOTE 10 BENEFIT PLANS Substantially all employees of the Company are covered by various contributory and non-contributory pension, profit sharing or 401(k) plans. Union employees participate in multi-employer retirement plans under collective bargaining agreements, unless the collective bargaining agreement provides for participation in plans sponsored by the Company. In addition to sponsoring both defined benefit and defined contribution pension plans, the Company provides healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans and short-term and long-term disability benefits to former and inactive employees prior to retirement under post-employment benefit plans. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For most retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the remaining cost. Net periodic benefit expense (income)for defined benefit pension plans and other postretirement benefit plans consisted of the following: Second Quarter Ended Pension Benefits Other Postretirement Benefits September 12, September 6, September 12, September 6, 2009 2008 2009 2008 Service cost $ 1 $ 2 $ $ 1 Interest cost 32 29 2 2 Expected return on assets (29 ) (32 ) Amortization of prior service benefit (1 ) (1 ) Amortization of net actuarial loss 2 1 Net periodic benefit expense (income) $ 6 $ (1 ) $ 1 $ 3 Year-to-Date Ended Pension Benefits Other Postretirement Benefits September 12, September 6, September 12, September 6, 2009 2008 2009 2008 Service cost $ 3 $ 4 $ 1 $ 1 Interest cost 74 69 4 5 Expected return on assets (68 ) (75 ) Amortization of prior service benefit (3 ) (1 ) Amortization of net actuarial loss 5 1 2 Net periodic benefit expense (income) $ 14 $ (2 ) $ 3 $ 7 During the year-to-date ended September12, 2009, the Company made contributions of $42 to its pension plans and $5 to its other postretirement benefit plans. |
Commitments, Contingencies and
Commitments, Contingencies and Off Balance Sheet Arrangements | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Commitments, Contingencies and Off-Balance Sheet Arrangements [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | NOTE 11 COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS The Company has guaranteed certain leases, fixture financing loans and other debt obligations of various retailers as of September12, 2009. These guarantees were generally made to support the business growth of independent retail customers. The guarantees are generally for the entire terms of the leases or other debt obligations with remaining terms that range from less than one year to 21years, with a weighted average remaining term of approximately 10years. For each guarantee issued, if the independent retail customer defaults on a payment, the Company would be required to make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees of the independent retail customer. The Company reviews performance risk related to its guarantees of independent retail customers based on internal measures of credit performance. As of September12, 2009, the maximum amount of undiscounted payments the Company would be required to make in the event of default of all of these guarantees was $156 and represented $107 on a discounted basis. Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. Accordingly, no amount has been recorded in the Condensed Consolidated Balance Sheets for these contingent obligations under the Companys guarantee arrangements. The Company is contingently liable for leases that have been assigned to various third parties in connection with facility closings and dispositions. The Company could be required to satisfy the obligations under the leases if any of the assignees are unable to fulfill their lease obligations. Due to the wide distribution of the Companys assignments among third parties, and various other remedies available, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. In the ordinary course of business, the Company enters into supply contracts to purchase products for resale. These contracts typically include either volume commitments or fixed expiration dates, termination provisions and other standard contractual considerations. As of September12, 2009, the Company had $1,405 of non-cancelable future purchase obligations primarily related to supply contracts. The Company is a party to a variety of contractual agreements under which the Company may be obligated to indemnify the other party for certain matters, which indemnities may be secured by operation of law or otherwise, in the ordinary course of business. These contracts primarily relate to the Companys commercial contracts, operating leases and other real estate contracts, financial agreements, agreements to provide services to the Company and agreements to indemnify officers, directors and employees in the performance of their work. While the Companys aggregate indemnification obligation could result in a material liability, the Company is aware of no current matter th |
Segment Information
Segment Information | |
6 Months Ended
Sep. 12, 2009 USD / shares | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE 12 SEGMENT INFORMATION Refer to page 2 for the Companys segment information. |