SEGMENT INFORMATION

12 Months Ended

Feb. 27, 2016

Segment Reporting [Abstract]

SEGMENT INFORMATION

Refer to the Consolidated Segment Financial Information for financial information concerning the Company’s operations and financial position by reportable segment.

The Company’s operating segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance internally. The Company’s 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 Company’s business is classified by management into three reportable segments: Wholesale, Save-A-Lot and Retail. These reportable segments are three distinct businesses, each with a different customer base, marketing strategy and management structure. The Company reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

The Wholesale reportable segment derives revenues from wholesale distribution and services to independently owned retail food stores and other customers (collectively referred to as “independent retail customers”). The Save-A-Lot reportable segment derives revenues from the sale of groceries at retail locations operated and licensed by the Company (both the Company’s own stores and stores licensed by the Company to which the Company distributes wholesale products). The Retail reportable segment derives revenues from the sale of groceries and other products at retail locations operated by the Company. Substantially all of the Company’s operations are domestic.

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 Company’s owned, licensed and franchised retail stores to shoppers and through its Wholesale segment to independent retail customers. The following table provides additional detail on the amounts and percentages of Net sales for each group of similar products sold in the Wholesale, Save-A-Lot and Retail segments, and service agreement revenue in Corporate:

	2016				2015				2014
Wholesale:
Nonperishable grocery products(1)	$	5,753	33	%	$	5,939	33	%	$	6,000	35	%
Perishable grocery products(2)	2,025		12		2,099		12		1,951		11
Services to independent retail customers and other	157		1		160		1		151		1
	7,935		45	%	8,198		46	%	8,102		47	%
Save-A-Lot:
Nonperishable grocery products(1)	$	2,956	17	%	$	2,989	17	%	$	2,823	17	%
Perishable grocery products(2)	1,597		9		1,587		9		1,373		8
Services to licensees and other	70		—		65		—		59		—
	4,623		26	%	4,641		26	%	4,255		25	%
Retail:
Nonperishable grocery products(1)	$	2,607	15	%	$	2,677	15	%	$	2,600	15	%
Perishable grocery products(2)	1,549		9		1,574		9		1,463		9
Pharmacy products	511		3		510		3		491		3
Fuel	67		—		83		—		67		—
Other	35		—		40		—		34		—
	4,769		27	%	4,884		27	%	4,655		27	%
Corporate:
Transition services revenue	$	202	1	%	$	194	1	%	$	240	1	%
Net sales	$	17,529	100	%	$	17,917	100	%	$	17,252	100	%

(1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, home, health and beauty care and candy

(2) Includes such items as meat, produce, deli and bakery

Segment operating earnings include revenues and costs attributable to each of the respective business segments and allocated corporate overhead, based on the segment's estimated consumption of corporately managed resources. Variances to planned corporate overhead allocated to business segments remain in Corporate because allocated corporate overhead affecting segment operating profit is centrally managed. Reported segment information is presented on the same basis as it is reviewed by executive management.