Albertsons 2015 Annual Report Download - page 99

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97
Income before income taxes from discontinued operations for fiscal 2015 primarily reflects $6 of property tax refunds and
interest income resulting from settlement of income tax audits. The income tax benefit included as a component of Income
from discontinued operations, net of tax for fiscal 2015 includes $66 of net tax benefits, primarily related to tangible property
repair regulations and other deduction-related changes.
The tax rate for the income tax benefit included as a component of Income (loss) from discontinued operations, net of tax for
fiscal 2014 included $105 of discrete tax benefits primarily resulting from the settlement of IRS audits for the fiscal 2010, 2009
and 2008 tax years and an adjustment to decrease the loss on sale of NAI reported at February 23, 2013.
NOTE 17—SUBSEQUENT EVENTS
On April 16, 2015, following discussions with NAI and Albertson’s LLC regarding the impact of Albertson’s LLC’s acquisition
of Safeway, Inc. (the “Safeway Acquisition”) and their plans around winding down the TSA, the Company entered into a letter
agreement regarding the TSA with NAI and Albertson’s LLC pursuant to which the Company will provide services to NAI and
Albertson’s LLC as needed to transition and wind down the TSA. In exchange for these transition and wind down services, the
Company will receive eight payments of approximately $6 every six months for aggregate fees of $50. These payments are
separate from and incremental to the fixed and variable fees the Company receives under the TSA. The Company estimates that
the complete transition and wind down of the TSA could take approximately four years. This estimate is based on the
information currently known to the Company and could change materially. For additional discussion of the TSA and this letter
agreement, see “Risk Factors—Changes in the Company’s relationships with NAI, Albertson’s LLC or Haggen could adversely
impact the Company’s results of operations” in Part I, Item 1A of this Annual Report on Form 10-K.