Albertsons 2014 Annual Report Download - page 10

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owned by a Cerberus-led investor consortium (“Symphony Investors”), and Cerberus pursuant to which
Symphony Investors undertook a tender offer for up to 30 percent of the issued and outstanding common stock of
the Company at a purchase price of $4.00 per share in cash (the “Tender Offer”). According to Symphony
Investors, at the time the Tender Offer expired, approximately 12 shares of the Company’s common stock that
were validly tendered and not withdrawn were accepted for payment and paid for by Symphony Investors. In
addition, pursuant to the Tender Offer Agreement, on March 21, 2013, the Company issued an additional 42
shares of the Company’s common stock to Symphony Investors at $4.00 per share in cash, resulting in
approximately $170 in cash proceeds to the Company. Following the Tender Offer and new share issuance,
Symphony Investors owned approximately 21.2 percent of the Company’s issued and outstanding common stock.
The Tender Offer Agreement provides that until the second anniversary of the closing of the Tender Offer,
transfers of shares acquired by Symphony Investors in the Tender Offer and from the Company pursuant to the
Tender Offer Agreement, will be generally restricted, with more limited restrictions thereafter. Following that
period, SUPERVALU has agreed to customary obligations to register such shares acquired with the Securities
and Exchange Commission (the “SEC”) if requested by Symphony Investors.
On March 26, 2013, the Company announced plans to reduce its workforce by an estimated 1,100 positions,
including current positions and open jobs. Reductions were completed by the end of fiscal 2014.
The Company makes available free of charge at its internet website (www.supervalu.com) its annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to these reports
filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) as soon as reasonably practicable after such material is electronically filed with or furnished to
the SEC. Information on the Company’s website is not deemed to be incorporated by reference into this Annual
Report on Form 10-K. The Company will also provide its SEC filings free of charge upon written request to
Investor Relations, SUPERVALU INC., P.O. Box 990, Minneapolis, MN 55440.
Financial Information About Reportable Segments
The Company’s business is classified by management into three reportable segments: Independent Business,
Save-A-Lot and Retail Food. These reportable segments are three distinct businesses. The Independent Business
reportable segment derives revenues from wholesale distribution to independently-owned retail food stores and
other customers (collectively referred to as “independent retail customers”). The Save-A-Lot reportable segment
derives revenues from the sale of groceries at retail locations operated and licensed by the Company (both the
Company’s own stores and stores licensed by the Company to which the Company distributes wholesale
products). The Retail Food reportable segments derive revenues from the sale of groceries at retail locations
operated by the Company. Substantially all of the Company’s operations are domestic.
During fiscal 2014, the Company recast the segment presentation of certain corporate administrative expenses
and revised the presentation of related fees earned under the Albertson’s and NAI TSAs, pension and other
postretirement plan expenses for inactive and corporate participants in the SUPERVALU Retirement Plan and
certain other corporate costs to reflect the structure under which the Company is being managed. These changes
primarily resulted in the recast of net expenses from Retail Food to Corporate.
Refer to the Consolidated Segment Financial Information set forth in Part II, Item 8 of this Annual Report on
Form 10-K for financial information concerning the Company’s operations by reportable segment.
Independent Business
The Company’s Independent Business segment primarily provides wholesale distribution of products to
independent retailers and is the largest public company food wholesaler in the nation. The Company’s Independent
Business network spans 42 states and serves as primary grocery supplier to approximately 1,820 stores of
independent retail customers, in addition to the Company’s own stores, as well as serving as secondary grocery
supplier to approximately 420 stores of independent retail customers. The Company’s wholesale distribution
customers include single and multiple grocery store independent operators, regional chains and the military.
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