Albertsons 2013 Annual Report Download - page 31

Excluding these items the remaining decrease in operating loss for Retail Food in fiscal 2013 is primarily due to
lower employee-related costs.
Save-A-Lot operating earnings for fiscal 2013 were $146, or 3.5 compared with $232, or 5.5 percent of Save-A-
Lot net sales, last year. The $86 decrease in Save-A-Lot operating earnings reflect $22 of net charges related to
the closure of 22 non-strategic stores and $13 of non-cash property, plant and equipment impairment charges.
Excluding these charges, the remaining decrease is primarily due to negative gross profit impacts from
competitive price investment, higher advertising and shrink costs.
Independent Business operating earnings for fiscal 2013 were $189, or 2.3 percent of Independent Business net
sales, compared with $243, or 3.0 percent of Independent Business net sales, last year. The $54 decrease in
Independent Business operating earnings includes $11 of non-cash property, plant and equipment and intangible
asset impairment charges and net $7 of higher severance costs. Excluding these items the $36 decrease is due
primarily to gross margin investment and change in business mix partially offset by a lower LIFO charge and
lower employee related costs.
Interest Expense, Net
Net interest expense was $269 in fiscal 2013, compared with $247 last year, primarily reflecting the write-off of
unamortized financing costs of $22, in connection with the debt refinancing transaction completed during fiscal
2013.
Income Tax Benefit
The Income tax benefit for fiscal 2013 was $163 compared with an Income tax benefit of $41 last year. Income
tax benefit for fiscal 2013 and 2012 reflect the operating losses arising during the respective years.
Net Loss from Continuing Operations
Net loss from continuing operations was $263, or $1.24 per basic and diluted share, for fiscal 2013 compared
with a Net loss from continuing operations of $110, or $0.52 per basic and diluted share last year. Net loss from
continuing operations for fiscal 2013 includes non-cash property, plant and equipment impairment charges of
$227 before tax ($140 after tax, or $0.66 per diluted share), employee-related expenses, primarily severance and
labor buyout costs of $36 before tax ($23 after tax, or $0.10 per diluted share), store closure costs of $22 before
tax ($13 after tax, or $0.06 per diluted share), write-off of unamortized financing costs of $22 before tax ($14
after tax, or $0.07 per diluted share) and intangible asset impairment charges of $6 before tax ($3 after tax, or
$0.02 per diluted share) which were partially offset by a cash settlement received from credit card companies of
$10 before tax ($6 after tax, or $0.03 per diluted share). Fiscal 2012 Net loss from continuing operations includes
goodwill impairment charges of $92 before tax ($90 after tax, or $0.43 per basic and diluted share) and employee
related severance charges of $15 before tax ($10 after tax, or $0.05 per basic and diluted share). Excluding the
above items, the $66 increase in Net loss from continuing operations is primarily the result of unfavorable Gross
profit in the Save-A-Lot and Independent Business segments and lower sales volume in Retail Food and Save-A-
Lot segments.
Loss from Discontinued Operations, net of income taxes
As a result of the NAI Banner Sale, the financial results for those operations are now presented as discontinued
operations.
Net sales for discontinued operations were $17,230 for fiscal 2013 compared with $18,764 for fiscal 2012, a
decrease of $1,534 or 8.2 percent. Sales decreased primarily due to negative identical store sales of 5.0 percent or
29