Albertsons 2015 Annual Report Download - page 49

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extension of trade receivables to NAI and vendor fund receivable changes last year. Cash used in continuing operations income
taxes decreased $64 primarily due to lower continuing operations tax payments and discrete tax items. These increases in cash
provided by operating activities were offset in part by an increase in pension contributions of $45 primarily due to a $50
discretionary pension contribution made in the fourth quarter of fiscal 2015.
The decrease in net cash provided by operating activities from continuing operations in fiscal 2014 compared to fiscal 2013 is
primarily attributable to an increase in cash utilized in operating assets and liabilities of $361. Cash utilized for income taxes
payable, net of income taxes receivable, increased $154 during fiscal 2014 primarily due to higher income tax payments, net of
refunds, of $87 associated with the settlement during fiscal 2014 of fiscal 2008 to 2010 tax year audits and other discrete tax
items. Cash utilized in receivables increased $84 primarily due to cash used in additional Independent Business’s accounts
receivable of $57 from shipping method changes and the extension of trade receivables to NAI, of which the comparable
activity related to the prior year was eliminated on an intercompany basis prior to the NAI Banner Sale, an increase in cash
used in vendor funds of $25 and an increase in long-term receivables of $11. Consolidated inventories were relatively
unchanged excluding the impacts of LIFO during fiscal 2014 compared to cash provided from a decrease in inventories from
fiscal 2012 to 2013 due to inventory management and store closures. The increase in cash used in accounts payable and accrued
liabilities in fiscal 2014 compared to fiscal 2013 is attributable to lower employee-related payables associated with the fiscal
2014 workforce reduction. The remaining net increase in cash provided by operating activities from continuing operations is
primarily related to cash provided from an increase in Net earnings from continuing operations, after adjusting for non-cash
impacts of asset impairment and other charges, depreciation and amortization expense, net gain on the sale of assets and surplus
leases, deferred taxes and LIFO credit, largely attributable to TSA revenues offsetting previously stranded costs and cost
savings initiatives, offset in part by employee benefit plan contributions in excess of related expenses.
Net cash provided by (used in) operating activities from discontinued operations was $75, $(101) and $481 for fiscal 2015,
2014 and 2013, respectively. Fiscal 2015 operating activities cash flows from discontinued operations primarily relate to tax
refunds from tangible property repair regulations and other deduction-related changes. The decrease in net cash provided by
operating activities from discontinued operations in fiscal 2014 compared to fiscal 2013 is primarily due to the NAI Banner
Sale, resulting in reduced cash flow from that business during fiscal 2014, and cash payments made for accrued liabilities and
accounts payable related to the Stock Purchase Agreement during the first quarter of fiscal 2014.
Investing Activities
Net cash used in investing activities from continuing operations was $285, $86 and $189 in fiscal 2015, 2014 and 2013,
respectively. The increase in cash used in investing activities in fiscal 2015 compared to last year is primarily attributable to
$128 of additional cash used in capital expenditures reflecting Retail Food store remodels, new Save-A-Lot stores and supply
chain investments, and $55 of cash used in business acquisitions.
The decrease in cash used in investing activities in fiscal 2014 compared to fiscal 2013 is primarily attributable to $117 less
cash used for capital expenditures attributable to remodeling activity, technology expenditures and new retail stores, and $24 of
lower cash proceeds from the sale of assets primarily attributable to proceeds from the sale of a distribution center in fiscal
2013.
Net cash provided by (used in) investing activities from discontinued operations was $0, $135 and $(175) for fiscal 2015, 2014
and 2013, respectively. The increase in net cash provided by investing activities from discontinued operations from fiscal 2013
compared to fiscal 2014 is primarily due to $257 of lower cash payments toward discontinued operations’ capital expenditures
due to the completion of the NAI Banner Sale, approximately $144 in proceeds received from the NAI Banner Sale, including
the collection of the $44 NAI note receivable, in fiscal 2014, offset in part by approximately $90 of proceeds from the sale of
discontinued operations’ assets during fiscal 2013.
Financing Activities
Net cash used in financing activities from continuing operations was $92, $107 and $506 for fiscal 2015, 2014 and 2013,
respectively. The decrease in cash used in financing activities in fiscal 2015 compared to last year is primarily due to lower
proceeds from the sale of common stock, offset in part by lower debt financing costs.
The decrease in cash used in financing activities in fiscal 2014 compared to 2013 is primarily attributable to $263 of lower net
debt and capital lease payments, $170 of proceeds received from the sale of common stock to Symphony Investors LLC (which
is owned by a Cerberus-led investor consortium) in connection with the NAI Banner Sale in fiscal 2014, $0 of dividend
payments in fiscal 2014 compared to $37 of dividend payments made in fiscal 2013 and $7 of proceeds from the exercise of
stock options, offset in part by $85 of additional cash payments for debt financing and issuance costs associated with the NAI
Banner Sale, the re-pricing of the interest rate on the Secured Term Loan Facility (defined below) due March 2019 and the
refinancing of $372 of the 2016 Notes. The decrease in net debt payments in fiscal 2014 compared to 2013 reflects the usage of