Albertsons 2012 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2012 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars and shares in millions, except per share data, unless otherwise noted)
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business Description
SUPERVALU INC. (“SUPERVALU” or the “Company”) is one of the largest companies in the United States
grocery channel. SUPERVALU conducts its retail operations under the Acme, Albertsons, Cub Foods, Farm
Fresh, Hornbacher’s, Jewel-Osco, Lucky, Save-A-Lot, Shaw’s, Shop ‘n Save, Shoppers Food & Pharmacy and
Star Market banners as well as in-store pharmacies under the Osco and Sav-on banners. Additionally, the
Company provides supply chain services, primarily wholesale distribution, across the United States retail grocery
channel.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and all its majority-owned
subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
References to the Company refer to SUPERVALU INC. and Subsidiaries.
Fiscal Year
The Company’s fiscal year ends on the last Saturday in February. The Company’s first quarter consists of 16
weeks while the second, third and fourth quarters each consist of 12 weeks. Because of differences in the
accounting calendars of the Company and its wholly-owned subsidiary, New Albertsons, Inc., the February 25,
2012 and February 26, 2011 Consolidated Balance Sheets include the assets and liabilities related to New
Albertsons, Inc. as of February 23, 2012 and February 24, 2011, respectively. The last three fiscal years consist
of 52 week periods ended February 25, 2012, February 26, 2011 and February 27, 2010.
Use of Estimates
The preparation of the Company’s consolidated financial statements in conformity with accounting principles
generally accepted in the United States of America (“accounting standards”) requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
Revenues from product sales are recognized at the point of sale for the Retail food segment and upon delivery for
the Independent business segment. Typically, invoicing, shipping, delivery and customer receipt of Independent
business product occur on the same business day. Revenues from services rendered are recognized immediately
after such services have been provided. Discounts and allowances provided to customers by the Company at the
time of sale, including those provided in connection with loyalty cards, are recognized as a reduction in Net sales
as the products are sold to customers. Sales tax is excluded from Net sales.
Revenues and costs from third-party logistics operations are recorded gross when the Company is the primary
obligor in a transaction, is subject to inventory or credit risk, has latitude in establishing price and selecting
suppliers, or has several, but not all of these indicators. If the Company is not the primary obligor and amounts
earned have little or no credit risk, revenue is recorded net as management fees earned.
47