GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Feb. 28, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Company’s Goodwill and Intangible assets, net consisted of the following:



	February 23, 2013			Additions			Impairments		Other net adjustments			February 22, 2014			Additions			Impairments		Other net adjustments		February 28, 2015
Goodwill:
Independent Business	$	710		$	—		$	—	$	—		$	710		$	—		$	—	$	—	$	710
Save-A-Lot	137			—			—		—			137			4			—		—		141
Retail Food	—			—			—		—			—			14			—		—		14
Total goodwill	$	847		$	—		$	—	$	—		$	847		$	18		$	—	$	—	$	865

Intangible assets:
Favorable operating leases, prescription files, customer lists and other (accumulated amortization of $86 and $78 as of February 28, 2015 and February 22, 2014, respectively)	$	106		$	—		$	—	$	5		$	111		$	13		$	—	$	—	$	124
Tradenames and trademarks—indefinite useful lives	9			—			—		—			9			—			—		—		9
Non-compete agreements (accumulated amortization of $2 and $2 as of February 28, 2015 and February 22, 2014, respectively)	3			—			—		—			3			—			—		—		3
Total intangible assets	118			—			—		5			123			13			—		—		136
Accumulated amortization	(67		)	(8		)	—		(5		)	(80		)	(8		)	—		—		(88		)
Total intangible assets, net	$	51										$	43									$	48

The Company applies a fair value based impairment test to the net book value of goodwill and intangible assets with indefinite useful lives on an annual basis and on an interim basis if events or circumstances indicate that an impairment loss may have occurred.

The Company conducted an annual impairment test of the net book value of goodwill and intangible assets with indefinite useful lives during the fourth quarter of fiscal 2015, which indicated the fair value of the Independent Business reporting unit exceeded its carrying value by approximately 80 percent, the fair value of each of Save-A-Lot and Retail Food reporting units was in excess of 100 percent of its carrying value and the fair value of intangible assets with indefinite useful lives was in excess of their carrying value. In fiscal 2013, recoverability tests of indefinite-lived tradename intangibles indicated the carrying value of a tradename within the Independent Business segment was not recoverable, which resulted in a pre-tax impairment charge of $6.

Annual impairment testing and the related calculation of the impairment charges contains significant judgments and estimates including weighted average cost of capital, future revenue, profitability, cash flows and fair values of assets and liabilities.

Amortization expense of intangible assets with definite useful lives of $8 was recorded in each of fiscal 2015, 2014 and 2013. Future amortization expense will average approximately $5 per year for the next five years.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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