BUSINESS ACQUISITIONS

12 Months Ended

Feb. 25, 2017

Business Combinations [Abstract]

BUSNIESS ACQUISITIONS

NOTE 2—BUSINESS ACQUISITIONS

The Consolidated Financial Statements reflect the final purchase accounting allocations of the acquisitions discussed below. Pro forma information for the acquisitions discussed below are not presented since the results of operations of the acquired businesses, both individually and in the aggregate, are not material to Supervalu’s Consolidated Financial Statements.

During fiscal 2017, Supervalu paid $17 to acquire 22 Food Lion stores located in northern West Virginia, western Maryland, south central Pennsylvania and northwestern Virginia, and separately paid $2 to acquire inventories and buildings of two retail stores. The acquisition of the Food Lion stores included certain store assets, including inventories, property, plant, and equipment, and capital and operating leases. The fair value of the 22 Food Lion stores acquired was $17, including property, plant and equipment of $18, inventories of $8, favorable operating lease intangibles of $1 and other current assets of $1, and the assumption of capital lease obligations of $11. The acquired Food Lion stores were converted to Supervalu’s Shop ‘n Save format that is currently used by certain of Supervalu’s Wholesale customers in that region. The results of these stores are included within Retail.

During fiscal 2016, Supervalu paid $7 to acquire equipment and leasehold improvements, identifiable finite-lived intangible assets and inventories offour retail stores from multiple Wholesale customers. The purchase price was allocated to the acquired store assets and such assets were recognized at their estimated fair values and included inventories, property, plant and equipment, and goodwill.

During fiscal 2015, Supervalu 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. 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. Total consideration for the stores and pharmacies acquired by Supervalu was $34 plus cash payments of $5 for inventories. Supervalu assumed certain off-balance sheet obligations, including operating leases and multiemployer pension obligations with respect to the acquired stores. In addition, Supervalu also acquired the 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.