Comprehensive Income and Accumulated Other Comprehensive Loss

4 Months Ended

Jun. 17, 2017

Equity [Abstract]

Comprehensive Income and Accumulated Other Comprehensive Loss

NOTE 9—COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Supervalu reports comprehensive income in the Condensed Consolidated Statements of Comprehensive Income. Comprehensive income includes all changes in stockholders’ equity during the reporting period, other than those resulting from investments by and distributions to stockholders. Supervalu’s comprehensive income is calculated as net (loss) earnings including noncontrolling interests, plus or minus adjustments for pension and other postretirement benefit obligations, net of tax, and changes in the fair value of cash flow hedges, net of tax, less comprehensive income attributable to noncontrolling interests.

Accumulated other comprehensive loss represents the cumulative balance of other comprehensive income (loss), net of tax, as of the end of the reporting period and relates to pension and other postretirement benefit obligation adjustments, net of tax, and unrealized losses on cash flow hedges, net of tax.

Changes in Accumulated other comprehensive loss by component for the first quarter of fiscal 2018 are as follows:

	Benefit Plans			Interest Rate Swap			Total
Accumulated other comprehensive loss at beginning of the fiscal year, net of tax	$	(276	)	$	(2	)	$	(278	)
Other comprehensive income (loss) before reclassifications(1)	—			—			—
Amortization of amounts included in net periodic benefit income(2)	—			—			—
Amortization of cash flow hedge(3)	—			—			—
Net current-period Other comprehensive income(4)	—			—			—
Accumulated other comprehensive loss at the end of period, net of tax	$	(276	)	$	(2	)	$	(278	)

(1)Amount is net of tax (benefit) expense of $0, $0 and $0, respectively.

(2)Amount is net of tax (benefit) expense of $(1), $0 and $(1), respectively.

(3)Amount is net of tax (benefit) expense of $0, $1 and $1, respectively.

(4)Amount is net of tax (benefit) expense of $(1), $1 and $0, respectively.

Changes in Accumulated other comprehensive loss by component for the first quarter of fiscal 2017 are as follows:

	Benefit Plans			Interest Rate Swap			Total
Accumulated other comprehensive loss at beginning of the fiscal year, net of tax	$	(418	)	$	(4	)	$	(422	)
Other comprehensive loss before reclassifications(1)	—			(1		)	(1		)
Amortization of amounts included in net periodic benefit income(2)	6			—			6
Amortization of cash flow hedge(3)	—			1			1
Net current-period Other comprehensive income(4)	6			—			6
Accumulated other comprehensive loss at the end of period, net of tax	$	(412	)	$	(4	)	$	(416	)

(1)Amount is net of tax expense of $0, $0 and $0, respectively.

(2)Amount is net of tax expense of $4, $0 and $4, respectively.

(3)Amount is net of tax expense of $0, $0 and $0, respectively.

(4)Amount is net of tax expense of $4, $0 and $4, respectively.

Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations:

	First Quarter Ended
	June 17,   2017   (16 weeks)			June 18,   2016   (16 weeks)			Affected Line Item on Condensed Consolidated Statements of Operations
Pension and postretirement benefit plan obligations:
Amortization of amounts included in net periodic benefit income(1)	$	(1	)	$	9		Selling and administrative expenses
Amortization of amounts included in net periodic benefit income(1)	—			1			Cost of sales
Total reclassifications	(1		)	10
Income tax expense (benefit)	1			(4		)	Income tax provision
Total reclassifications, net of tax	$	—		$	6
Interest rate swap cash flow hedge:
Reclassification of cash flow hedge	$	1		$	1		Interest expense, net
Income tax benefit	(1		)	—			Income tax provision
Total reclassifications, net of tax	$	—		$	1

(1) Amortization of amounts included in net periodic benefit expense include amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 7—Benefit Plans.

As of June 17, 2017, Supervalu expects to reclassify $2 out of Accumulated other comprehensive loss into Interest expense, net during the following twelve-month period.