Albertsons 2014 Annual Report Download - page 41

Corporate operating loss for fiscal 2013 was $339 compared with an operating loss of $352 for fiscal 2012. The
$13 decrease in Corporate operating loss includes $7 of asset impairment charges and a net $8 of higher
severance costs in fiscal 2013. After adjusting for these charges and costs, the $28 decrease is primarily due to
lower business support costs and lower employee–related costs.
Interest Expense, Net
Net interest expense was $269 in fiscal 2013, compared with $247 for fiscal 2012, 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 for fiscal 2012.
Income tax benefit for fiscal 2013 and 2012 reflects 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 for fiscal 2012. 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
costs and a multi-employer pension withdrawal charge of $36 before tax ($23 after tax, or $0.10 per diluted
share), write-off of unamortized financing costs of $22 before tax ($14 after tax, or $0.07 per diluted share), store
closure costs of $22 before tax ($13 after tax, or $0.06 per diluted share) and intangible asset impairment charges
of $6 before tax ($3 after tax, or $0.02 per diluted share), 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 the 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
$887 and the impact of the fuel divestiture of $458. In addition, closed stores net of new stores resulted in
decreased net sales of $189.
Loss from discontinued operations, net of tax, for fiscal 2013 was $1,203 compared to $930 in fiscal 2012. Fiscal
2013 included the loss on sale of the NAI banners of $1,273 net of tax, asset impairment and store closure costs
of $97 net of tax and professional services costs of $5 net of tax, partially offset by a cash settlement received
from credit card companies of $20 net of tax. Fiscal 2012 included goodwill and intangible asset impairment
charges of $1,202 net of tax and severance charges of $3 net of tax. When adjusted for these items, the decrease
of net income of $123 was primarily due to lower sales volume in identical stores and investments in price.
Refer to Note 14—Discontinued Operations and Divestitures in the Notes to Consolidated Financial Statements
included in Part II, Item 8 of this Annual Report on Form 10-K for further discussion.
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