BUSNIESS ACQUISITIONS

12 Months Ended

Feb. 27, 2016

Business Combinations [Abstract]

BUSNIESS ACQUISITIONS

NOTE 2—BUSINESS ACQUISITIONS

The Consolidated Financial Statements reflect the final purchase accounting allocations of the acquisitions discussed below. Pro forma information for the acquisitions discussed below are not presented since the results of operations of the acquired businesses, both individually and in the aggregate, are not material to the Company’s Consolidated Financial Statements. Recognized goodwill represents future economic benefits expected to arise from the Company’s presence in the retail market.

Retail Stores

During fiscal 2016, the Company paid $7 to acquire equipment and leasehold improvements, identifiable finite-lived intangible assets and inventories offour retail stores from multiple independent retail customers. The purchase price was allocated to the acquired store assets and such assets were recognized at their estimated fair values and included inventories, property, plant and equipment, and goodwill.

During fiscal 2015, the Company completed the purchase of seven Rainbow Foods grocery stores, 11 Rainbow Foods pharmacy locations and one Rainbow Foods liquor store from RBF, LLC and Roundy’s Supermarkets, Inc. (“Roundy’s”). Five of the grocery stores, each of the pharmacies and the liquor store are operating under the Cub Foods banner, and two of the grocery stores are operating as Rainbow Foods grocery stores.

Total consideration for the stores and pharmacies acquired by the Company was $34 plus cash payments of $5 for inventories. The Company assumed certain off-balance sheet obligations, including operating leases and multiemployer pension obligations with respect to the acquired stores. In addition, the Company also acquired Roundy’s RAINBOW™ trademark.

The fair value of assets acquired was $39, including property, plant and equipment of $15, goodwill of $14, inventories of $5, identifiable finite-lived intangible assets of $4 and other current assets of $1.

Save-A-Lot Licensee Stores

During fiscal 2016, the Company paid$2to acquire equipment and leasehold improvements, identifiable finite-lived intangible assets and inventories associated witheightlicensed Save-A-Lot stores from multiple licensee operators. The acquired store assets were recognized at their estimated fair values and included favorable operating lease intangible assets, goodwill, inventories and property, plant and equipment. The remaining terms of the favorable operating leases ranged from five to ten years.

During fiscal 2015, the Company paid $19 to acquire 38 licensed Save-A-Lot stores from multiple licensee operators through 20 separate purchase agreements. The fair value of acquired store assets were recognized at their estimated fair values and included$8 of favorable operating lease intangible assets, $5 of goodwill, $3 of inventories and $3 of property, plant and equipment. The remaining terms of the favorable operating leases ranged from three to thirteen years.