Stock Based Awards

6 Months Ended

Sep. 10, 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 $4 and $8 for the second quarter and year-to-date ended September 10, 2011, respectively, compared with $4 and $9 for the second quarter and year-to-date ended September 11, 2010, respectively.

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:

	September 10,
	2011
Dividend yield		4.2	%
Volatility rate		47.4 — 51.6	%
Risk-free interest rate		0.3 — 1.2	%
Expected life	2.7 — 3.1 years

The grant date fair value of the award made during the first quarter ended June 18, 2011 was $2.40 per share. The cash portion of the award is classified as a liability and is remeasured at fair value each reporting period. As of the end of the second quarter ended September 10, 2011 the fair value of the cash portion of the award was $1.07 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 year-to-date ended September 10, 2011. The Company granted 3 shares under stock options during the year-to-date ended September 11, 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:

	September 11,
	2010
Dividend yield		2.0	%
Volatility rate		42.8 — 45.1	%
Risk-free interest rate		1.1 — 1.6	%
Expected option life	4.0 — 5.4 years

The weighted average grant date fair value of the stock options granted during the year-to-date ended September 11, 2010 was $4.01 per share.