SEGMENT INFORMATION

12 Months Ended

Feb. 25, 2017

Segment Reporting [Abstract]

SEGMENT INFORMATION

Refer to the Consolidated Segment Financial Information for financial information concerning Supervalu’s operations and financial position by reportable segment.

Supervalu’s operating segments reflect the manner in which the business is managed and how Supervalu allocates resources and assesses performance internally. Supervalu’s chief operating decision maker is the Chief Executive Officer.

Supervalu offers a wide variety of grocery products, general merchandise and health and beauty care, pharmacy, fuel and other items and services. Supervalu’s business is classified by management into two reportable segments: Wholesale and Retail. These reportable segments are two distinct businesses, each with a different customer base, marketing strategy and management structure. Supervalu reviews its reportable segments on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

The Wholesale reportable segment derives revenues from wholesale distribution and services to retail food stores and other customers (collectively referred to as “Wholesale customers”). The Retail reportable segment derives revenues from the sale of groceries and other products at retail locations operated by Supervalu. Substantially all of Supervalu’s operations are domestic.

Supervalu offers a wide variety of nationally advertised brand name and private-label products, primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty care, pharmacy and fuel, which are sold through Supervalu’s owned and franchised retail stores to shoppers and through its Wholesale segment to Wholesale customers. The following table provides additional detail on the amounts and percentages of Net sales for each group of similar products sold in the Wholesale and Retail segments, and service agreement revenue in Corporate:

	2017				2016				2015
Wholesale:
Nonperishable grocery products(1)	$	5,579	45	%	$	5,753	45	%	$	5,939	45	%
Perishable grocery products(2)	1,969		16		2,025		16		2,099		16
Services to Wholesale customers and other	157		1		157		1		160		1
	7,705		62	%	7,935		61	%	8,198		62	%
Retail:
Nonperishable grocery products(1)	$	2,511	20	%	$	2,607	20	%	$	2,677	20	%
Perishable grocery products(2)	1,494		12		1,549		12		1,574		12
Pharmacy products	500		4		511		4		510		4
Fuel	55		1		67		1		83		1
Other	36		—		35		—		40		—
	4,596		37	%	4,769		37	%	4,884		37	%
Corporate:			—
Services agreement revenue	$	179	1	%	$	203	2	%	$	195	1	%
Net sales	$	12,480	100	%	$	12,907	100	%	$	13,277	100	%

(1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, home, health and beauty care and candy

(2) Includes such items as meat, produce, deli and bakery

Segment operating earnings include revenues and costs attributable to each of the respective business segments and allocated corporate overhead, based on the segment’s estimated consumption of corporately managed resources. Variances to planned corporate overhead allocated to business segments remain in Corporate because allocated corporate overhead affecting segment operating profit is centrally managed. Reported segment information is presented on the same basis as it is reviewed by executive management.

The presentation of identifiable assets by reportable segment includes allocations from Wholesale to Retail of shared assets based on estimated usage. The presentation of capital expenditures by reportable segment includes allocations of corporate expenditures for information technology and other investments from Corporate to Wholesale and Retail based on estimated usage.