Stock Based Awards

3 Months Ended

Jun. 18, 2011

Stock-Based Awards [Abstract]

STOCK-BASED AWARDS

NOTE 7 — STOCK-BASED AWARDS

The Company recognized pre-tax stock-based compensation expense (included primarily in Selling and administrative expenses in the Condensed Consolidated Statements of Earnings) related to stock-based awards of $5 for the first quarter ended June 18, 2011 and June 19, 2010.

In April 2011 the Company granted performance awards to employees under the SUPERVALU INC. 2007 Stock Plan as part of the Company’s long-term incentive program (“LTIP”). Payout of the award, if at all, will be based on the highest payout under the terms of the grant based on the increase in market capitalization over the service period, or the achievement of financial goals for the three-year period ending February 22, 2014. Awards will be settled equally in cash and the Company’s stock.

To calculate the fair value under the performance grant, the Company uses the Monte Carlo method. The assumptions related to the valuation of the Company’s LTIP consisted of the following:

	June 18,
	2011
Dividend yield		4.2	%
Volatility rate		47.4 – 49.5	%
Risk-free interest rate		0.7 – 1.2	%
Expected life	2.9 – 3.1 years

The grant date fair value of the award during the first quarter ended June 18, 2011 was $2.40 per share. The fair value of the cash portion of the grant as of the end of the first quarter ended June 18, 2011 was $1.46 per share. The minimum payout value of cash and stock is $0 and the aggregate maximum amount the Company could be required to payout is $177.

The Company did not grant any shares under stock options during the first quarter ended June 18, 2011. The Company granted 3 shares under stock options during the first quarter ended June 19, 2010. To calculate the fair value of stock options, the Company uses the Black-Scholes option pricing model. The significant weighted average assumptions relating to the valuation of the Company’s stock options consisted of the following:

	June 19,
	2010
Dividend yield		2.0	%
Volatility rate		43.2 – 44.2	%
Risk-free interest rate		1.6	%
Expected option life	4.0 – 4.5 years

The weighted average grant date fair value of the stock options granted during the first quarter ended June 19, 2010 was $4.02 per share.