Document and Entity Information
Document and Entity Information (USD $) | |||
12 Months Ended
Feb. 27, 2010 | Apr. 16, 2010
| Sep. 11, 2009
| |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SUPERVALU INC | ||
Entity Central Index Key | 0000095521 | ||
Document Type | 10-K | ||
Document Period End Date | 2010-02-27 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | FY | ||
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 | $3,390,462,161 | ||
Entity Common Stock, Shares Outstanding | 212,225,397 |
Consolidated Segment Financial
Consolidated Segment Financial Information (USD $) | |||
In Millions | 12 Months Ended
Feb. 27, 2010 | 12 Months Ended
Feb. 28, 2009 | 12 Months Ended
Feb. 23, 2008 |
Net sales | |||
Net sales | $40,597 | $44,564 | $44,048 |
Net Sales | 1 | 1 | 1 |
Operating earnings (loss) | |||
Operating earnings (loss) | 1,201 | (2,157) | 1,684 |
% of sales | 0.03 | -0.048 | 0.038 |
Interest expense, net | 569 | 622 | 707 |
Earnings (loss) before income taxes | 632 | (2,779) | 977 |
Income tax provision | 239 | 76 | 384 |
Net earnings (loss) | 393 | (2,855) | 593 |
Depreciation and amortization | |||
Depreciation and amortization | 957 | 1,057 | 1,017 |
Capital expenditures | |||
Capital expenditures | 691 | 1,212 | 1,227 |
Identifiable assets | |||
Identifiable assets | 16,436 | 17,604 | 21,062 |
Retail food | |||
Net sales | |||
Net sales | 31,637 | 34,664 | 34,341 |
Net Sales | 0.779 | 0.778 | 0.78 |
Operating earnings (loss) | |||
Operating earnings (loss) | 989 | (2,315) | 1,550 |
% of sales | 0.031 | -0.067 | 0.045 |
Depreciation and amortization | |||
Depreciation and amortization | 876 | 968 | 922 |
Capital expenditures | |||
Capital expenditures | 642 | 1,112 | 1,166 |
Identifiable assets | |||
Identifiable assets | 14,035 | 14,950 | 18,265 |
Supply chain services | |||
Net sales | |||
Net sales | 8,960 | 9,900 | 9,707 |
Net Sales | 0.221 | 0.222 | 0.22 |
Operating earnings (loss) | |||
Operating earnings (loss) | 299 | 307 | 274 |
% of sales | 0.033 | 0.031 | 0.028 |
Depreciation and amortization | |||
Depreciation and amortization | 81 | 89 | 95 |
Capital expenditures | |||
Capital expenditures | 49 | 100 | 61 |
Identifiable assets | |||
Identifiable assets | 2,214 | 2,444 | 2,608 |
Corporate | |||
Operating earnings (loss) | |||
Operating earnings (loss) | (87) | (149) | (140) |
Identifiable assets | |||
Identifiable assets | $187 | $210 | $189 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (USD $) | |||
In Millions, unless otherwise specified | 12 Months Ended
Feb. 27, 2010 | 12 Months Ended
Feb. 28, 2009 | 12 Months Ended
Feb. 23, 2008 |
Statements of Earnings [Abstract] | |||
Net sales | $40,597 | $44,564 | $44,048 |
Cost of sales | 31,444 | 34,451 | 33,943 |
Gross profit | 9,153 | 10,113 | 10,105 |
Selling and administrative expenses | 7,952 | 8,746 | 8,421 |
Goodwill and intangible asset impairment charges | 3,524 | ||
Operating earnings (loss) | 1,201 | (2,157) | 1,684 |
Interest | |||
Interest expense | 576 | 633 | 725 |
Interest income | 7 | 11 | 18 |
Interest expense, net | 569 | 622 | 707 |
Earnings (loss) before income taxes | 632 | (2,779) | 977 |
Income tax provision | 239 | 76 | 384 |
Net earnings (loss) | $393 | ($2,855) | $593 |
Net earnings (loss) per share-basic | 1.86 | -13.51 | 2.8 |
Net earnings (loss) per share-diluted | 1.85 | -13.51 | 2.76 |
Weighted average number of shares outstanding | |||
Basic | 212 | 211 | 211 |
Diluted | 213 | 211 | 215 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Millions | 12 Months Ended
Feb. 27, 2010 | 12 Months Ended
Feb. 28, 2009 |
Current assets | ||
Cash and cash equivalents | $211 | $240 |
Receivables, net | 814 | 874 |
Inventories | 2,342 | 2,709 |
Other current assets | 344 | 282 |
Total current assets | 3,711 | 4,105 |
Property, plant and equipment, net | 7,026 | 7,528 |
Goodwill | 3,698 | 3,748 |
Intangible assets, net | 1,493 | 1,584 |
Other assets | 508 | 639 |
Total assets | 16,436 | 17,604 |
Current liabilities | ||
Accounts payable | 2,199 | 2,441 |
Accrued vacation, compensation and benefits | 576 | 626 |
Current maturities of long-term debt and capital lease obligations | 613 | 516 |
Income taxes currently payable | 0 | 102 |
Other current liabilities | 779 | 787 |
Total current liabilities | 4,167 | 4,472 |
Long-term debt and capital lease obligations | 7,022 | 7,968 |
Other liabilities | 2,360 | 2,583 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $1.00 par value: 400 shares authorized; 230 shares issued | 230 | 230 |
Capital in excess of par value | 2,857 | 2,853 |
Accumulated other comprehensive losses | (478) | (503) |
Retained earnings | 806 | 542 |
Treasury stock, at cost, 18 and 18 shares, respectively | (528) | (541) |
Total stockholders' equity | 2,887 | 2,581 |
Total liabilities and stockholders' equity | $16,436 | $17,604 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | Feb. 27, 2010
| Feb. 28, 2009
|
Stockholders' equity | ||
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 400 | 400 |
Common stock, shares issued | 230 | 230 |
Treasury stock, shares | 18 | 18 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (USD $) | |||||||
In Millions | Common Stock
| Capital in Excess of Par Value
| Treasury Stock
| Accumulated Other Comprehensive Losses
| Retained Earnings
| Comprehensive Income (Loss)
| Total
|
Balances at Feb. 25, 2006 | $151 | ||||||
Effects of changing pension plan measurement date (net of tax of $20 and $7, respectively) | 32 | (10) | 22 | ||||
Balances at Feb. 24, 2007 | 229 | 2,708 | (499) | (203) | 3,093 | 5,328 | |
Net earnings (loss) | 593 | 593 | 593 | ||||
Pension and other postretirement activity (net of tax of $13, $261 and $70 for 2010, 2009 and 2008, respectively) | 108 | 108 | 108 | ||||
Sales of common stock under option plans | 3 | 141 | 144 | ||||
Cash dividends declared on common stock $0.6100, $0.6875 and $0.6750 per share for 2010, 2009 and 2008, respectively | (143) | (143) | |||||
Compensation under employee incentive plans | 49 | (4) | 45 | ||||
Shares issued in settlement of zero-coupon convertible debentures and mandatory convertible securities | 1 | 62 | 33 | 96 | |||
Purchase of share for treasury | (218) | (218) | |||||
Balances at Feb. 23, 2008 | 230 | 2,822 | (547) | (95) | 3,543 | 701 | 5,953 |
Net earnings (loss) | (2,855) | (2,855) | (2,855) | ||||
Pension and other postretirement activity (net of tax of $13, $261 and $70 for 2010, 2009 and 2008, respectively) | (408) | (408) | (408) | ||||
Sales of common stock under option plans | 2 | 12 | 14 | ||||
Cash dividends declared on common stock $0.6100, $0.6875 and $0.6750 per share for 2010, 2009 and 2008, respectively | (146) | (146) | |||||
Compensation under employee incentive plans | 29 | 17 | 46 | ||||
Purchase of share for treasury | (23) | (23) | |||||
Balances at Feb. 28, 2009 | 230 | 2,853 | (541) | (503) | 542 | (3,263) | 2,581 |
Net earnings (loss) | 393 | 393 | 393 | ||||
Pension and other postretirement activity (net of tax of $13, $261 and $70 for 2010, 2009 and 2008, respectively) | 25 | 25 | 25 | ||||
Sales of common stock under option plans | (12) | 1 | (11) | ||||
Cash dividends declared on common stock $0.6100, $0.6875 and $0.6750 per share for 2010, 2009 and 2008, respectively | (129) | (129) | |||||
Compensation under employee incentive plans | 16 | 12 | 28 | ||||
Balances at Feb. 27, 2010 | $230 | $2,857 | ($528) | ($478) | $806 | $418 | $2,887 |
1_Consolidated Statements of St
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | ||||
In Millions, unless otherwise specified | 12 Months Ended
Feb. 27, 2010 | 12 Months Ended
Feb. 28, 2009 | 12 Months Ended
Feb. 23, 2008 | 12 Months Ended
Feb. 24, 2007 |
Tax effect on pension and other postretirement activity | $13 | $261 | $70 | |
Effects of Changing Pension Plan Measurement Date | 27 | |||
Cash dividends declared on common stock | 0.61 | 0.6875 | 0.675 | |
Accumulated Other Comprehensive Losses | ||||
Tax effect on pension and other postretirement activity | 13 | 261 | 70 | |
Effects of Changing Pension Plan Measurement Date | 20 | |||
Retained Earnings | ||||
Effects of Changing Pension Plan Measurement Date | 7 | |||
Cash dividends declared on common stock | 0.61 | 0.6875 | 0.675 | |
Comprehensive Income (Loss) | ||||
Tax effect on pension and other postretirement activity | $13 | $261 | $70 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Feb. 27, 2010 | 12 Months Ended
Feb. 28, 2009 | 12 Months Ended
Feb. 23, 2008 |
Cash flows from operating activities | |||
Net earnings (loss) | $393 | ($2,855) | $593 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Goodwill and intangible asset impairment charges | 3,524 | ||
Asset impairment and other charges | 74 | 169 | 14 |
Gain on sale of assets | (33) | (9) | (23) |
Depreciation and amortization | 957 | 1,057 | 1,017 |
LIFO charge | 8 | 78 | 30 |
Deferred income taxes | 151 | (118) | (74) |
Stock-based compensation | 31 | 44 | 52 |
Other adjustments | 27 | (25) | (15) |
Changes in operating assets and liabilities: | |||
Receivables | 55 | 68 | 103 |
Inventories | 326 | (12) | (20) |
Accounts payable and accrued liabilities | (267) | (216) | (278) |
Income taxes currently payable | (172) | (83) | 319 |
Other changes in operating assets and liabilities | (76) | (88) | 14 |
Net cash provided by operating activities | 1,474 | 1,534 | 1,732 |
Cash flows from investing activities | |||
Proceeds from sale of assets | 215 | 117 | 195 |
Purchases of property, plant and equipment | (681) | (1,186) | (1,191) |
Other | 7 | 55 | 28 |
Net cash used in investing activities | (459) | (1,014) | (968) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 943 | 215 | 41 |
Payment of long-term debt and capital lease obligations | (1,830) | (581) | (692) |
Dividends paid | (147) | (145) | (142) |
Net proceeds from the sale of common stock under option plans and related tax benefits | 11 | 153 | |
Payment for purchase of treasury shares | (23) | (218) | |
Other | (10) | 52 | |
Net cash used in financing activities | (1,044) | (523) | (806) |
Net decrease in cash and cash equivalents | (29) | (3) | (42) |
Cash and cash equivalents at beginning of year | 240 | 243 | 285 |
Cash and cash equivalents at end of year | 211 | 240 | 243 |
The Company's non-cash activities were as follows: | |||
Capital lease asset additions and related obligations | 10 | 26 | 36 |
Purchases of property, plant and equipment included in Accounts payable | 69 | 98 | 154 |
Interest and income taxes paid: | |||
Interest paid (net of amount capitalized) | 538 | 614 | 743 |
Income taxes paid (net of refunds) | $187 | $274 | $107 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Feb. 27, 2010 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE1SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description SUPERVALU INC. (SUPERVALU or the Company) is one of the largest companies in the United States grocery channel. SUPERVALU conducts its retail operations under the Acme, Albertsons, Bristol Farms, Cub Foods, Farm Fresh, Hornbachers, Jewel-Osco, Lucky, Save-A-Lot, Shaws, Shop n Save, Shoppers Food Pharmacy and Star Market banners as well as in-store pharmacies under the Osco and Sav-on banners. Additionally, the Company provides supply chain services, primarily wholesale distribution, across the United States retail grocery channel. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. References to the Company refer to SUPERVALU INC. and Subsidiaries. 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 included 13weeks. Because of differences in the accounting calendars of the Company and its wholly-owned subsidiary New Albertsons, Inc., the February27, 2010 and February28, 2009 Consolidated Balance Sheets include the assets and liabilities related to New Albertsons, Inc. as of February25, 2010 and February26, 2009, respectively. Use of Estimates The preparation of the Companys consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (accounting standards) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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. Revenue Recognition Revenues from product sales are recognized at the point of sale for the Retail food segment and upon delivery for the Supply chain services segment. Typically, invoicing, shipping, delivery and customer receipt of Supply chain services product occur on the same business day. Revenues from services rendered are recognized immediately after such services have been provided. Discounts and allowances provided to customers by the Company at the time of sale, including those provided in connection with loyalty cards, are recognized as a reduction in Net sales as the products are sold to customers. Sales tax is excluded from Net sales. Revenues and costs from third-party logistics operations are recorded gross when the Company is the primary obligor in a transaction, is subject to inventory or credit risk, has latitude in establishing price and selecting suppliers, or has several, but not all of these indicators. If the Company is not the primary obligor and amounts earned have little or no credit risk, revenue is recorded net as management fees earned. Cost of Sales Cost of sales includes co |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | |
12 Months Ended
Feb. 27, 2010 | |
Goodwill and Intangible Assets [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE2 GOODWILL AND INTANGIBLE ASSETS Changes in the Companys Goodwill and Intangible assets consisted of the following: February23, Other net February28, Other net February27, 2008 Additions Impairments adjustments 2009 Additions Impairments adjustments 2010 Goodwill: Retail food goodwill $ 6,152 $ $ $ 12 $ 6,164 $ $ $ (50 ) $ 6,114 Accumulated impairment losses (3,223 ) (3,223 ) (3,223 ) Total Retail food goodwill, net 6,152 (3,223 ) 12 2,941 (50 ) 2,891 Supply chain services goodwill 805 2 807 807 Total goodwill $ 6,957 $ $ (3,223 ) $ 14 $ 3,748 $ $ $ (50 ) $ 3,698 February23, Additions/ Other net February28, Additions/ Other net February27, 2008 Amortization Impairments adjustments 2009 Amortization Impairments adjustments 2010 Intangible assets: Trademarks and tradenamesindefinite useful lives $ 1,370 $ $ (301 ) $ $ 1,069 $ $ (20 ) $ $ 1,049 Favorable operating leases, customer lists, customer relationships and other (accumulated amortization of $238 and $197, as of February27, 2010 and February28, 2009, respectively) 717 14 (25 ) 706 8 (40 ) 674 Non-compete agreements (accumulated amortization of $5 and $4 as of February27, 2010 and February28, 2009, respectively) 15 1 (6 ) 10 1 2 13 Total intangible assets 2,102 15 (301 ) (31 ) 1,785 9 (20 ) (38 ) 1,736 Accumulated amortization (150 ) (65 ) 14 |
Reserves for Closed Properties
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges | |
12 Months Ended
Feb. 27, 2010 | |
Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges [Abstract] | |
RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES | NOTE3 RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES Reserves for Closed Properties Changes in the Companys reserves for closed properties consisted of the following: 2010 2009 2008 Beginning balance $ 167 $ 97 $ 118 Additions 13 70 18 Payments (48 ) (22 ) (40 ) Adjustments (4 ) 22 1 Ending balance $ 128 $ 167 $ 97 During fiscal 2010 and 2009, the Company recorded additional reserves primarily related to the closure of non-strategic stores announced in fiscal 2009. Adjustments to reserves for closed properties are primarily related to changes in subtenant income. Property, Plant and Equipment-Related Impairment Charges During fiscal 2010, the Company recorded $52 of property, plant and equipment-related impairment charges, of which $43 were recorded in the fourth quarter as a result of the planned retail market exits. During fiscal 2009, the Company recorded $75 of property, plant and equipment-related impairment charges related to the closure of non-strategic stores announced in fiscal 2009. During 2008, the Company recorded $14 of property, plant and equipment-related impairment and other charges. Additions and adjustments to the reserves for closed properties and property, plant and equipment-related impairment charges for fiscal 2010, 2009 and 2008 were primarily related to the Retail food segment, and were recorded as a component of Selling and administrative expenses in the Consolidated Statements of Earnings. |
Property, Plant and Equipment
Property, Plant and Equipment | |
12 Months Ended
Feb. 27, 2010 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE4 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net, consisted of the following: 2010 2009 Land $ 1,277 $ 1,313 Buildings 3,550 3,443 Property under construction 232 315 Leasehold improvements 1,602 1,613 Equipment 4,455 4,201 Capitalized lease assets 968 1,030 Total property plant and equipment 12,084 11,915 Accumulated depreciation (4,724 ) (4,091 ) Accumulated amortization on capitalized lease assets (334 ) (296 ) Total property, plant and equipment, net $ 7,026 $ 7,528 Depreciation expense was $852, $945 and $911 for fiscal 2010, 2009 and 2008, respectively. Amortization expense related to capitalized lease assets was $64, $67 and $64 for fiscal 2010, 2009 and 2008, respectively. |
Fair Value Measurments
Fair Value Measurments | |
12 Months Ended
Feb. 27, 2010 | |
Fair Value Measurments [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE5 FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows: Level1 Quoted prices in active markets for identical assets or liabilities; Level2 Inputs other than quoted prices included within Level1 that are either directly or indirectly observable; Level3 Unobservable inputs in which little or no market activity exists, requiring an entity to develop its own assumptions that market participants would use to value the asset or liability. Impairment charges recorded during fiscal 2010 discussed in Note2Goodwill and Intangible Assets and Note3Reserves for Closed Properties and Property, Plant and Equipment-Related Impairment Charges were measured at fair value using Level3 inputs. 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 approximately $1 as of February27, 2010. The estimated fair value of notes receivable was less than book value by approximately $8 as of February28, 2009. 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 approximately $54 and $452 as of February27, 2010 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 | |
12 Months Ended
Feb. 27, 2010 | |
Long-Term Debt [Abstract] | |
LONG-TERM DEBT | NOTE6 LONG-TERM DEBT The Companys long-term debt and capital lease obligations consisted of the following: 2010 2009 1.10% to 3.25% Revolving Credit Facility and Variable Rate Notes due June 2011 June 2012 $ 1,415 $ 1,920 8.00%Notes due May 2016 1,000 7.50%Notes due February 2011 679 700 7.45%Debentures due August 2029 650 650 7.50%Notes due November 2014 490 500 6.34% to 7.15% Medium Term Notes due July 2012June 2028 440 512 8.00%Debentures due May 2031 400 400 7.50%Notes due May 2012 300 300 8.00%Debentures due June 2026 272 272 8.70%Debentures due May 2030 225 225 7.75%Debentures due June 2026 200 200 7.25%Notes due May 2013 200 200 8.35%Notes due May 2010 155 275 7.90%Debentures due May 2017 96 96 Accounts Receivable Securitization Facility 120 Notes and debentures paid off during fiscal 2010 891 Other 104 97 Net discount on debt, using an effective interest rate of 6.28% to 8.97% (258 ) (208 ) Capital lease obligations 1,267 1,334 Total debt and capital lease obligations 7,635 8,484 Less current maturities of long-term debt and capital lease obligations (613 ) (516 ) Long-term debt and capital lease obligations $ 7,022 $ 7,968 Future maturities of long-term debt, excluding the net discount on the debt and capital lease obligations, as of February27, 2010 consist of the following: Fiscal Year 2011 $ 979 2012 321 2013 1,292 2014 245 2015 508 Thereafter 3,281 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. During fiscal 2007, the Company entered into senior secured credit facilities provided by a group of lenders consisting of a five-year revolving credit facility (the Revolving Credit Facility), a five-year term loan (Term Loan A) and a six-year term loan (Term Loan B). As of February27, 2010, there was $16 of outstanding borrowings under the Revolving Credit Facility at 3.25percent, Term Loan A had a remaining principal balance of $394 at LIBOR plus 0.875percent, of which $113 was classified as current, and Term Loan B had a remaining principal balance of $1, |
Leases
Leases | |
12 Months Ended
Feb. 27, 2010 | |
Leases [Abstract] | |
LEASES | NOTE7 LEASES The Company leases certain retail stores, distribution centers, office facilities and equipment from third parties. Many of these leases include renewal options and, to a limited extent, include options to purchase. Future minimum lease payments to be made by the Company for noncancellable operating leases and capital leases as of February27, 2010 consist of the following: Lease Obligations Operating Capital Fiscal Year Leases Leases 2011 $ 423 $ 162 2012 400 154 2013 352 153 2014 312 150 2015 276 147 Thereafter 1,812 1,371 Total future minimum obligations $ 3,575 2,137 Less interest (870 ) Present value of net future minimum obligations 1,267 Less current obligations (69 ) Long-term obligations $ 1,198 Total future minimum obligations have not been reduced for future minimum subtenant rentals of $308 under certain operating subleases. Rent expense and subtenant rentals under operating leases consisted of the following: 2010 2009 2008 Minimum rent $ 455 $ 460 $ 450 Contingent rent 6 8 7 461 468 457 Subtenant rentals (66 ) (67 ) (66 ) $ 395 $ 401 $ 391 The Company leases certain property to third parties under both operating and direct financing leases. Under the direct financing leases, the Company leases buildings to independent retail customers with terms ranging from five to 20years. Future minimum lease and subtenant rentals under noncancellable leases as of February27, 2010 consist of the following: Lease Receipts Direct Operating Financing Fiscal Year Leases Leases 2011 $ 24 $ 6 2012 22 5 2013 21 4 2014 12 4 2015 7 3 Thereafter 22 11 Total minimum lease receipts $ 108 33 Less unearned income (8 ) Net investment in direct financing leases 25 Less current portion (4 ) Long-term portion $ 21 The carrying value of owned property leased to third parties under operating leases was as follows: 2010 2009 Property, plant and equipment $ 20 $ 2 |
Income Taxes
Income Taxes | |
12 Months Ended
Feb. 27, 2010 | |
Income Taxes [Abstract] | |
INCOME TAXES | NOTE8 INCOME TAXES The provision for income taxes consisted of the following: 2010 2009 2008 Current Federal $ 65 $ 148 $ 396 State 9 46 63 Total current 74 194 459 Deferred 165 (118 ) (75 ) Total provision $ 239 $ 76 $ 384 The difference between the actual tax provision and the tax provision computed by applying the statutory federal income tax rate to earnings (losses) before income taxes is attributable to the following: 2010 2009 2008 Federal taxes based on statutory rate $ 221 $ (973 ) $ 342 State income taxes, net of federal benefit 20 (7 ) 40 Goodwill impairment 1,060 Other (2 ) (4 ) 2 Total provision $ 239 $ 76 $ 384 Deferred income taxes reflect the net tax effects of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. The Companys deferred tax assets and liabilities consisted of the following: 2010 2009 Deferred tax assets: Compensation and benefits $ 505 $ 575 Self-insurance 239 232 Property, plant and equipment and capitalized lease assets 452 448 Capital and net operating loss carryforwards 179 171 Other 194 229 Gross deferred tax assets 1,569 1,655 Valuation allowance (161 ) (165 ) Total deferred tax assets 1,408 1,490 Deferred tax liabilities: Property, plant and equipment and capitalized lease assets (385 ) (275 ) Inventories (252 ) (277 ) Debt discount (81 ) (81 ) Intangible assets (473 ) (471 ) Other (34 ) (39 ) Total deferred tax liabilities (1,225 ) (1,143 ) Net deferred tax asset (liability) $ 183 $ 347 The Company has valuation allowances to reduce deferred tax assets to the amount that is more-likely-than-not to be realized. The Company currently has state net operating loss (NOL) carryforwards of $851 for tax purposes. The NOL carryforwards expire beginning in 2011 and continuing through 2028 and have a $20 valuation allowance. The remaining valuation allowance is for capital loss carryforwards which exp |
Stock-Based Awards
Stock-Based Awards | |
12 Months Ended
Feb. 27, 2010 | |
Stock-Based Awards [Abstract] | |
STOCK-BASED AWARDS | NOTE9 STOCK-BASED AWARDS As of February27, 2010, the Company has stock options and restricted stock awards (collectively referred to as stock-based awards) outstanding under the following plans: 2007 Stock Plan, 2002 Stock Plan, 1997 Stock Plan, 1993 Stock Plan, SUPERVALU/Richfood Stock Incentive Plan, Albertsons Amended and Restated 1995 Stock-Based Incentive Plan and the Albertsons 2004 Equity and Performance Incentive Plan. The Companys 2007 Stock Plan, as approved by stockholders in May 2007, is the only plan under which stock-based awards may be granted. The 2007 Stock Plan provides that the Board of Directors or the Leadership Development and Compensation Committee of the Board (the Compensation Committee) may determine at the time of grant whether each stock-based award granted will be a non-qualified or incentive stock-based award under the Internal Revenue Code of 1986, as amended (the Internal Revenue Code). The terms of each stock-based award will be determined by the Board of Directors or the Compensation Committee. Generally, stock-based awards granted prior to fiscal 2006 have a term of 10years and effective in fiscal 2006, stock-based awards granted will not be for a term of more than seven years. Stock options are granted to key salaried employees and to the Companys non-employee directors to purchase common stock at an exercise price not less than 100percent of the fair market value of the Companys common stock on the date of grant. Generally, stock options vest over four years. Restricted stock awards are also awarded to key salaried employees. The vesting of restricted stock awards granted is determined at the discretion of the Board of Directors or the Compensation Committee. The restrictions on the restricted stock awards generally lapse between one and five years from the date of grant and the expense is recognized over the lapsing period. The Company reserved 35shares for grant as part of the 2007 Stock Plan. As of February27, 2010, there were 23shares available for grant. Common stock is delivered out of treasury stock upon the exercise of stock-based awards. The provisions of future stock-based awards may change at the discretion of the Board of Directors or the Compensation Committee. Stock Options Stock options granted, exercised and outstanding consisted of the following: Weighted Average Shares Weighted Remaining Aggregate Under Option Average Contractual Term Intrinsic Value (In thousands) Exercise Price (In years) (In thousands) Outstanding, February28, 2009 21,973 $ 35.64 Granted 3,178 16.01 Exercised (41 ) 14.51 Canceled and forfeited (3,736 ) 41.92 Outstanding, February27, 2010 21,374 $ 31.67 3.66 $ 186 |
Treasury Stock Purchase Program
Treasury Stock Purchase Program | |
12 Months Ended
Feb. 27, 2010 | |
Treasury Stock Purchase Program [Abstract] | |
TREASURY STOCK PURCHASE PROGRAM | NOTE10 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 from the cash generated from the settlement of stock options. This annual authorization program replaced all existing share repurchase programs and continues through June 2010. As of February27, 2010, there remained $70 available to repurchase the Companys common stock. The Company did not purchase any shares during fiscal 2010. During 2009 and 2008, the Company purchased 0.2shares and 5shares, respectively, under former share repurchase programs. |
Net Earnings
Net Earnings (Loss) Per Share | |
12 Months Ended
Feb. 27, 2010 | |
Net Earnings (Loss) Per Share [Abstract] | |
NET EARNINGS (LOSS) PER SHARE | NOTE11 NET EARNINGS (LOSS) PER SHARE The following table reflects the calculation of basic and diluted net earnings (loss) per share: 2010 2009 2008 Net earnings (loss) per sharebasic: Net earnings (loss) $ 393 $ (2,855 ) $ 593 Deduct: undistributed net earnings allocable to contingently convertible debentures (2 ) Net earnings (loss) available to common stockholders $ 393 $ (2,855 ) $ 591 Weighted average shares outstandingbasic 212 211 211 Net earnings (loss) per sharebasic $ 1.86 $ (13.51 ) $ 2.80 Net earnings (loss) per sharediluted: Net earnings (loss) $ 393 $ (2,855 ) $ 593 Interest related to dilutive contingently convertible debentures, net of tax 1 1 Net earnings (loss) used for diluted net earnings per share calculation $ 394 $ (2,855 ) $ 594 Weighted average shares outstandingbasic 212 211 211 Dilutive impact of options and restricted stock outstanding 1 3 Dilutive impact of convertible securities 1 Weighted average shares outstandingdiluted 213 211 215 Net earnings (loss) per sharediluted $ 1.85 $ (13.51 ) $ 2.76 Options and restricted stock of 22shares were outstanding during fiscal 2010 and 2009 and 6shares were outstanding during fiscal 2008, but were excluded from the computation of diluted net earnings per share because they were antidilutive. |
Benefit Plans
Benefit Plans | |
12 Months Ended
Feb. 27, 2010 | |
Benefit Plans [Abstract] | |
BENEFIT PLANS | NOTE12 BENEFIT PLANS Substantially all employees of the Company and its subsidiaries are covered by various contributory and non-contributory pension, profit sharing or 401(k) plans. 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. The Company also provides certain health and welfare benefits, including short-term and long-term disability benefits to inactive disabled employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For most retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the remaining cost. Effective December31, 2007, the Company authorized amendments to the SUPERVALU Retirement Plan and certain supplemental executive retirement benefit plans whereby service crediting ended in these plans and no employees will become eligible to participate in these plans after December31, 2007. Pay increases will continue to be reflected in the amount of benefit earned in these plans until December31, 2012. The amendments to the plans were accounted for as plan curtailments in fiscal 2008. Effective January1, 2009, the Company authorized an amendment to the SUPERVALU Retiree Benefit Plan to provide for certain insured Medicare benefits. The result of this amendment was a reduction in the other postretirement benefit obligation of $37 with a corresponding decrease to other comprehensive loss, net of tax. The benefit obligation, fair value of plan assets and funded status of the defined benefit pension plans and other postretirement benefit plans consisted of the following: Pension Benefits Other Postretirement Benefits 2010 2009 2010 2009 Change in Benefit Obligation Benefit obligation at beginning of year $ 1,922 $ 1,940 $ 117 $ 153 Plan amendment (37 ) Service cost 6 7 2 1 Interest cost 138 129 8 10 Transfers (1 ) 2 Actuarial loss (gain) 335 (85 ) 10 3 Benefits paid (80 ) (71 ) (6 ) (13 ) Benefit obligation at end of year 2,320 1,922 131 117 Changes in Plan Assets Fair value of plan assets at beginning of year 1,008 1,700 Actual return on plan assets 503 |
Commitments, Contingencies and
Commitments, Contingencies and Off-Balance Sheet Arrangements | |
12 Months Ended
Feb. 27, 2010 | |
Commitments, Contingencies and Off-Balance Sheet Arrangements [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | NOTE13COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS Guarantees The Company has guaranteed certain leases, fixture financing loans and other debt obligations of various retailers as of February27, 2010. 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 20years, with a weighted average remaining term of approximately nine years. For each guarantee issued, if the independent retail customer defaults on a payment, the Company would be required to make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees of the independent retail customer. The Company reviews performance risk related to its guarantees of independent retail customers based on internal measures of credit performance. As of February27, 2010, the maximum amount of undiscounted payments the Company would be required to make in the event of default of all guarantees was approximately $127 and represented approximately $93 on a discounted basis. Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. Accordingly, no amount has been recorded in the Consolidated Balance Sheets for these contingent obligations under the 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 February27, 2010, the Company had approximately $1,184 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 Compan |
Shareholder Rights Plan
Shareholder Rights Plan | |
12 Months Ended
Feb. 27, 2010 | |
Shareholder Rights Plan [Abstract] | |
SHAREHOLDER RIGHTS PLAN | NOTE14 SHAREHOLDER RIGHTS PLAN On April24, 2000, the Company announced that the Board of Directors adopted a Shareholder Rights Plan under which one preferred stock purchase right is distributed for each outstanding share of common stock and were exercisable only under certain conditions, and may be redeemed by the Board of Directors for $0.01 per right. The rights expired on April12, 2010 and were not renewed. |
Segment Information
Segment Information | |
12 Months Ended
Feb. 27, 2010 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | NOTE15 SEGMENT INFORMATION Refer to the Consolidated Segment Financial Information for financial information concerning the Companys operations by reportable segment. The Companys operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Companys chief operating decision maker is the Chief Executive Officer. The Company offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel and other items and services. The Companys business is classified by management into two reportable segments: Retail food and Supply chain services. These reportable segments are two distinct businesses, one retail and one wholesale, each with a different customer base, marketing strategy and management structure. The Retail food reportable segment is an aggregation of the Companys retail operating segments, which are organized based on format (traditional retail food stores and hard-discount food stores). The Retail food operating segments are aggregated as the products sold in the grocery stores are substantially the same, focusing on food and related products; the customer or potential customer for each of the retail operating segments is the same, any consumer of food and related products; each of the retail operating segments use the same distribution method for its products, the sale of items through grocery stores; and all of the Companys retail operating segments are subject to similar regulation. Additionally, the retail operating segments are aggregated into one Retail food reportable segment as they have similar economic characteristics and are expected to have similar long-term financial performance, based on operating earnings as a percent of sales. The Retail food reportable segment derives revenues from the sale of groceries at retail locations operated by the Company (both the Companys own stores and stores licensed by the Company). The Supply chain services reportable segment derives revenues from wholesale distribution to independently owned retail food stores, mass merchants and other customers (collectively referred to as independent retail customers) and logistics support services. The Company offers a wide variety of nationally advertised brand name and private-label products, primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty care, pharmacy and fuel, which are sold through the Companys own and licensed retail food stores to shoppers and through its Supply chain services business to independent retail customers. The amounts and percentages of Net sales for each group of similar products sold in the Retail food and Supply chain services segments consisted of the following: 2010 2009 2008 Retail food: Nonperishable grocery products(1) $ 17,233 43 % $ 18,031 41 % $ 17,553 40 % Perishable grocery products(2) 8,655 |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | |
12 Months Ended
Feb. 27, 2010 | |
Unaudited Quarterly Financial Information [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | Quarterly Financial Information UNAUDITED QUARTERLY FINANCIAL INFORMATION (In millions, except per share data) Unaudited quarterly financial information for SUPERVALU INC. and subsidiaries is as follows: 2010 First Second Third Fourth Fiscal Year (16 wks) (12 wks) (12 wks) (12 wks) (52 wks) Net sales $ 12,715 $ 9,461 $ 9,216 $ 9,205 $ 40,597 Gross profit $ 2,847 $ 2,089 $ 2,060 $ 2,157 $ 9,153 Net earnings $ 113(1 ) $ 74 $ 109(1 ) $ 97 (1) $ 393 Net earnings per sharediluted $ 0.53 $ 0.35 $ 0.51 $ 0.46 $ 1.85 Dividends declared per share $ 0.1725 $ 0.1750 $ 0.1750 $ 0.0875 $ 0.6100 Weighted average sharesdiluted 212 213 213 213 213 2009 First Second Third Fourth Fiscal Year (16 wks) (12 wks) (12 wks) (13 wks) (53 wks) Net sales $ 13,347 $ 10,226 $ 10,171 $ 10,820 $ 44,564 Gross profit $ 3,065 $ 2,289 $ 2,280 $ 2,479 $ 10,113 Net earnings (loss) $ 162 $ 128 $ (2,944 )(2) $ (201 )(2)(3) $ (2,855 ) Net earnings (loss) per sharediluted(4) $ 0.76 $ 0.60 $ (13.95 )(5) $ (0.95 )(5) $ (13.51 ) Dividends declared per share $ 0.1700 $ 0.1725 $ 0.1725 $ 0.1725 $ 0.6875 Weighted average sharesdiluted 214 213 211 211 211 (1) During fiscal 2010 the Company recorded charges of $39, after tax, related to the planned retail market exits, closure of non-strategic stores announced in fiscal 2009 and fees received from the early termination of a supply agreement of which $3, after tax, were recorded in the first quarter of fiscal 2010, $2, after tax, were recorded in the third quarter of fiscal 2010 and $34, after tax, were recorded in the fourth quarter of fiscal 2010. (2) During fiscal 2009 the Company recorded goodwill and intangible asset impairment charges of $3,326, after tax, of which $3,076, after tax, were recorded in the third quarter of fiscal 2009 and $250, after tax, were recorded in the fourth quarter of fiscal 2009. (3) During the fourth quarter of fiscal 2009 the Company recorded charges primarily related to closure of non-strategic stores announced in fiscal 2009 of $121, after tax, and a pre-Acquisition Albertsons legal settlement of $15, after tax. (4) The sum of the quarterly Net earnings (loss) per sharediluted amounts does not equal the fiscal year amount du |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | |
12 Months Ended
Feb. 27, 2010 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule Of Valuation And Qualifying Accounts Disclosure SUPERVALU INC. and Subsidiaries SCHEDULEIIValuation and Qualifying Accounts (In millions) Balance at Balance at Beginning of End of Fiscal Description Fiscal Year Additions Deductions Year Allowance for losses on receivables: 2010 $ 15 6 (9 ) $ 12 2009 20 15 (20 ) 15 2008 28 13 (21 ) 20 |