Albertsons 2007 Annual Report Download - page 78

SU
PERVAL
U
IN
C
. and
S
ubsidiaries
NO
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
(
Dollars, shares, stock o
p
tions and restricted stock units in millions, exce
p
t
p
er share data
)
N
O
TE 1—B
US
INE
SS
DE
SC
RIPTI
O
N
SUPERVALU INC. (“SUPERVALU” or the “Company”), a Delaware corporation, was organized in 1925 as th
e
successor of two wholesale
g
rocer
y
firms established in the 1870’s. SUPERVALU is one of the lar
g
est
companies in the United States grocery channel.
On June 2, 2006 (the “Acquisition Date”), the Compan
y
acquired New Albertson’s, Inc. (“New Albertsons”
)
cons
i
st
i
ng o
f
t
h
e core supermar
k
et
b
us
i
nesses (t
h
e “Acqu
i
re
d
Operat
i
ons”)
f
ormer
l
y owne
db
yA
lb
ertson’s, Inc
.
(“Albertsons”) operatin
g
under the banners of Acme Markets, Bristol Farms, Jewel-Osco, Shaw’s Supermarkets
,
Star Market, the Albertsons banner in the Intermountain, Northwest and Southern California re
g
ions, the related
i
n-store p
h
armac
i
es un
d
er t
h
e Osco an
d
Sav-On
b
anners, 10
di
str
ib
ut
i
on centers, certa
i
n reg
i
ona
l
o
ffi
ces an
d
certain corporate offices in Boise, Idaho; Glendale, Arizona and Salt Lake Cit
y
, Utah
.
As of February 24, 2007, the Company conducted its retail operations through 2,478 stores including 87
6
combination stores (defined as food and dru
g
), 412 food stores and 1,190 limited assortment food stores.
I
ncluded in the total store counts are 8
5
8 licensed limited assortment food stores and 120 fuel centers. Store
counts are a
dj
uste
df
or t
h
ep
l
anne
d
sa
l
eo
f
18 Scott’s stores an
d
t
h
esa
l
eorc
l
osure o
f
10 Jewe
l
-Osco stores
i
nt
he
Milwaukee area. Additionall
y
, the Compan
y
provides suppl
y
chain services and related lo
g
istics support services
a
cross t
h
eUn
i
te
d
States reta
il
grocery c
h
anne
l
.Aso
f
Fe
b
ruary 24, 2007, t
h
e Company serve
d
as t
h
epr
i
mar
y
g
rocery supp
li
er to approx
i
mate
l
y 2,200 reta
il f
oo
d
stores
i
n 48 states,
i
na
ddi
t
i
on to
i
ts own reg
i
ona
lb
anner store
network, and as a secondar
y
supplier to approximatel
y
400 stores. The Compan
y
’s suppl
y
chain activities are
supporte
db
y24ma
j
or Company
di
str
ib
ut
i
on operat
i
ons,
l
ocate
d
t
h
roug
h
out t
h
eUn
i
te
d
States
.
N
O
TE 2—
SU
MMARY
O
F
S
I
G
NIFI
C
ANT A
CCOU
NTIN
G
P
O
LI
C
IE
S
P
rincip
l
es of Conso
l
i
d
ation
T
he consolidated financial statements include the accounts of the Compan
y
and its subsidiaries. All si
g
nifican
t
intercompany accounts and transactions have been eliminated. References to the Company refer t
o
SU
PERVAL
U
IN
C
.an
dS
u
b
s
idi
ar
i
es.
F
isca
l
Yea
r
T
he Compan
y
’s fiscal
y
ear ends on the last Saturda
y
in Februar
y
. The Compan
y
’s first quarter consists of 1
6
weeks while the second, third and fourth
q
uarters each consist of 12 weeks for a total of
5
2 weeks. Because o
f
diff
erences
i
nt
h
e account
i
ng ca
l
en
d
ars o
f
New A
lb
ertsons an
d
t
h
e Company, t
h
e accompany
i
ng Fe
b
ruary 24
,
2007 Consolidated Balance Sheet includes the assets and liabilities related to New Albertsons as of Februar
y
22
,
2007. The twelve week operatin
g
results for the period December 1, 2006 throu
g
h Februar
y
22, 2007 of Ne
w
A
lb
ertsons are
i
nc
l
u
d
e
di
nt
h
e
f
ourt
h
quarter resu
l
ts o
f
t
h
e Company. T
h
et
hi
rty-e
i
g
h
t wee
k
operat
i
ng resu
l
ts
f
or
the period June 2, 200
6
throu
g
h Februar
y
22, 2007 of New Albertsons are included in the Februar
y
24, 200
7
results in the Consolidated Statements of Earnin
g
s
.
Revenue Recognitio
n
R
evenues
f
rom pro
d
uct sa
l
es are recogn
i
ze
d
at t
h
epo
i
nt o
f
sa
l
e
f
or t
h
e Reta
il f
oo
d
segment an
d
upon
d
e
li
very
f
o
r
t
h
e Supp
ly
c
h
a
i
n serv
i
ces se
g
ment. T
y
p
i
ca
lly
,
i
nvo
i
c
i
n
g
,s
hi
pp
i
n
g
,
d
e
li
ver
y
an
d
customer rece
i
pt o
f
Supp
ly
c
h
a
i
n
services product occur on the same business da
y
. Revenues from services rendered are reco
g
nized immediatel
y
af
ter suc
h
serv
i
ces
h
ave
b
een prov
id
e
d
.
F-
12