Fair Value Measurements

6 Months Ended

Sep. 09, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Recurring fair value measurements were as follows:

		September 9, 2017
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Deferred compensation	Other assets	$	4	$	—	$	—	$	4
Total		$	4	$	—	$	—	$	4
Liabilities:
Interest rate swap derivative	Other current liabilities	$	—	$	2	$	—	$	2
Interest rate swap derivative	Other long-term liabilities	—		1		—		1
Total		$	—	$	3	$	—	$	3

		February 25, 2017
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
Assets:
Deferred compensation	Other assets	$	5	$	—	$	—	$	5
Total		$	5	$	—	$	—	$	5
Liabilities:
Interest rate swap derivative	Other current liabilities	$	—	$	2	$	—	$	2
Interest rate swap derivative	Other long-term liabilities	—		1		—		1
Total		$	—	$	3	$	—	$	3

Diesel Fuel Derivatives

Fuel derivative gains (losses) are included within Cost of sales in the Condensed Consolidated Statements of Operations and were $0 and $0 for the second quarters of fiscal 2018 and 2017, respectively, and $0 and $0 for fiscal 2018 and 2017 year-to-date, respectively.

Interest Rate Swap Derivatives

Interest rate swap derivative reclassifications from Accumulated other comprehensive loss into earnings are recorded within Interest expense, net in the Condensed Consolidated Statements of Operations and were $1 and $0 in the second quarters of fiscal 2018 and 2017, respectively, and $2 and $1 for fiscal 2018 and 2017 year-to-date, respectively. No amounts were reclassified related to hedging ineffectiveness.

As of September 9, 2017, a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swap by approximately $4 and a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swap by approximately $2.

Non-recurring Fair Value Measurements

Acquired net assets related to Unified discussed in Note 2—Business Acquisitions and impairment charges related to goodwill and intangible assets discussed in Note 4—Goodwill and Intangible Assets and to property, plant and equipment discussed in Note 3—Reserves for Closed Properties and Property, Plant and Equipment-related Impairment Charges were measured at fair value using Level 3 inputs.

Fair Value Estimates

For certain of Supervalu’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 $0 and $0 as of September 9, 2017andFebruary 25, 2017, 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 Supervalu’s long-term debt was lower than the carrying amount, excluding debt financing costs, by approximately $57 as of September 9, 2017 and equal to the carrying amount, excluding debt financing costs, as of February 25, 2017. The estimated fair value was based on market quotes, where available, or market values for similar instruments, using Level 2 and Level 3 inputs.