BUSNIESS ACQUISITIONS

12 Months Ended

Feb. 28, 2015

Business Combinations [Abstract]

BUSNIESS ACQUISITIONS

Rainbow Stores

During the second quarter of fiscal 2015, the Company completed the purchase of seven Rainbow Foods grocery stores, 11 Rainbow Foods pharmacy locations and one Rainbow Foods liquor store from RBF, LLC and Roundy’s Supermarkets, Inc. (“Roundy’s”). Five of the grocery stores, each of the pharmacies and the liquor store are operating under the Cub Foods banner, and two of the grocery stores are operating as Rainbow Foods grocery stores. In addition, several independent retail customers and franchisees, including Diamond Lake 1994 L.L.C., in which the Company has a minority ownership interest, also consummated their purchase of certain Rainbow Foods grocery stores. The three grocery stores acquired by Diamond Lake 1994 L.L.C are operating under the Cub Foods banner.

Total consideration for the stores and pharmacies acquired by the Company was $34 plus cash payments of $5 for inventories. The Company assumed certain off-balance sheet obligations, including operating leases and multiemployer pension obligations with respect to the acquired stores. In addition, the Company also acquired Roundy’s RAINBOW™ trademark.

The fair value of assets acquired was $39, including property, plant and equipment of $15, goodwill of $14, inventories of $5, identifiable finite-lived intangible assets of $4 and other current assets of $1. Recognized goodwill represents future economic benefits expected to arise from the Company’s presence in the retail market. These Consolidated Financial Statements reflect the final purchase accounting allocations. Pro forma information for this acquisition is not presented as the results of operations of the acquired businesses are not material to the Company’s Consolidated Financial Statements.

Save-A-Lot Licensee Stores

During the fiscal year ended February 28, 2015, the Company paid $19 to acquire equipment and leasehold improvements, identifiable finite-lived intangibles and inventories associated with 38 licensed Save-A-Lot stores from multiple licensee operators. These Consolidated Financial Statements reflect the final purchase accounting allocations. Pro forma information for these acquisitions is not presented as the results of operations of the acquired businesses are not material to the Company’s Consolidated Financial Statements.