Albertsons 2016 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2016 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 125

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125

43
Cash Flow Information
The following summarizes our Consolidated Statements of Cash Flows:
Fiscal Year Variance
2016
(52 weeks) 2015
(53 weeks) 2014
(52 weeks) 2016
Change 2015
Change
Cash flow activities
Net cash provided by operating activities – continuing operations $ 421 $ 333 $ 129 $ 88 $ 204
Net cash used in investing activities—continuing operations (288) (285) (86) (3) (199)
Net cash used in financing activities—continuing operations (193) (92) (107) (101) 15
Net cash provided by (used in) discontinued operations 3 75 (2) (72) 77
Net (decrease) increase in cash and cash equivalents (57) 31 (66) (88) 97
Cash and cash equivalents at beginning of period 114 83 149 31 (66)
Cash and cash equivalents at the end of period $ 57 $ 114 $ 83 $ (57) $ 31
Operating Activities
The increase in net cash provided by operating activities from continuing operations in fiscal 2016 compared to last year is
primarily due to $129 of lower pension and other postretirement benefit plan contributions from lower required and
discretionary pension contributions, offset in part by lower cash generated from operating earnings after the impacts of net non-
cash expenses, such as net pension and postretirement benefit costs and depreciation, and when adjusted for payments for debt
refinancing costs included in earnings. Cash generated from operating assets and liabilities decreased slightly, but included
higher cash utilized in accounts payable driven by lower inventory increases and incentive compensation accruals compared to
last year, offset in part by lower cash utilized in inventory build last year.
The increase in net cash provided by operating activities from continuing operations in fiscal 2015 compared to fiscal 2014 is
primarily attributable to cash uses in fiscal 2014 following the NAI Banner Sale, including an increase in cash used in accounts
payable and accrued liabilities in fiscal 2014 due to $96 of employee-related payables primarily attributable to the fiscal 2014
workforce reduction and an increase in cash provided by receivables of $63 primarily due to shipping method changes,
extension of trade receivables to NAI and vendor fund receivable changes in fiscal 2014. Cash used in continuing operations
for 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.
Net cash provided by discontinued operations in fiscal 2015 primarily relates to tax refunds from tangible property repair
regulations and other deduction-related changes.
Investing Activities
The increase in cash used in investing activities in fiscal 2016 compared to last year is primarily due to an increase of $27 in
cash paid for intangible and other assets driven by acquired intangible assets for Wholesale and $22 of additional cash used in
capital expenditures reflecting new Save-A-Lot corporate and Retail stores, offset in part by $46 of lower cash used in business
acquisitions within Retail and Save-A-Lot.
The increase in cash used in investing activities in fiscal 2015 compared to fiscal 2014 is primarily attributable to $128 of
additional cash used in capital expenditures reflecting Retail store remodels, new Save-A-Lot stores and supply chain
investments, and $55 of cash used in business acquisitions.
Financing Activities
The increase in net cash used in financing activities in fiscal 2016 compared to last year is primarily due to lower proceeds
from the issuance of long-term debt, offset in part by lower payments on long-term debt and debt financing costs. Proceeds
from the issuance of long-term debt decreased primarily due to the issuance of $350 of the 2022 Notes last year, compared with
the $138 net increase in borrowings under the Revolving ABL Credit Facility in fiscal 2016 to partially fund the redemption of
$278 of the 2016 Notes. Long-term debt payments decreased primarily due to a smaller amount of redemptions of the 2016
Notes in fiscal 2016 compared to fiscal 2015. Payments used in debt financing costs were lower due to lower redemption
premiums, credit facility amendment costs and new debt issuance costs.