Fair Value Measurements

4 Months Ended

Jun. 18, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 4—FAIR VALUE MEASUREMENTS

Recurring fair value measurements were as follows:

		June 18, 2016
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Deferred compensation	Other assets	$	5	$	—	$	—	$	5
Total		$	5	$	—	$	—	$	5
Liabilities:
Deferred compensation	Other current liabilities	$	—	$	8	$	—	$	8
Deferred compensation	Other long-term liabilities	—		29		—		29
Diesel fuel derivatives	Other current liabilities	—		1		—		1
Interest rate swap derivative	Other current liabilities	—		3		—		3
Interest rate swap derivative	Other long-term liabilities	—		3		—		3
Total		$	—	$	44	$	—	$	44

		February 27, 2016
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Deferred compensation	Other assets	$	6	$	—	$	—	$	6
Total		$	6	$	—	$	—	$	6
Liabilities:
Deferred compensation	Other current liabilities	$	—	$	7	$	—	$	7
Deferred compensation	Other long-term liabilities	—		35		—		35
Diesel fuel derivatives	Other current liabilities	—		2		—		2
Interest rate swap derivative	Other current liabilities	—		3		—		3
Interest rate swap derivative	Other long-term liabilities	—		3		—		3
Total		$	—	$	50	$	—	$	50

Diesel Fuel Derivatives

Fuel derivative gains (losses) are included within Cost of sales in the Condensed Consolidated Statements of Operations and were $0 and $(1) for the first quarters of fiscal 2017 and 2016, respectively.

Interest Rate Swap Derivatives

In the first quarters of fiscal 2017 and 2016, $1 and $0 were recorded within Interest expense, net in the Condensed Consolidated Statements of Operations for interest rate swap derivative reclassifications from Accumulated other comprehensive loss into earnings, respectively. No amounts were reclassified related to hedging ineffectiveness.

As of June 18, 2016, a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swap by approximately $6 and a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swap by approximately $1.

Non-recurring Fair Value Measurements

Impairment charges related to property, plant and equipment discussed in Note 3—Reserves for Closed Properties and Property, Plant and Equipment-related Impairment Charges were also measured at fair value using Level 3 inputs.

Fair Value Estimates

For certain of the Company’s financial instruments, including cash and cash equivalents, receivables, accounts payable, accrued salaries and other current assets and liabilities, the fair values approximate carrying amounts due to their short maturities.

The estimated fair value of notes receivable was greater than their carrying amount by approximately $2 and $1 as of June 18, 2016andFebruary 27, 2016, respectively. Notes receivable are valued based on a discounted cash flow approach applyinga market rate for similar instruments that is determined using Level 3 inputs.

The estimated fair value of the Company’s long-term debt was less than the carrying amount, excluding debt financing costs, by approximately $125 and $236 as of June 18, 2016 and February 27, 2016, respectively. The estimated fair value was based on market quotes, where available, or market values for similar instruments, using Level 2 and Level 3 inputs.