Benefit Plans

12 Months Ended

Feb. 25, 2012

Benefit Plans [Abstract]

BENEFIT PLANS

NOTE 12—BENEFIT PLANS

Substantially all employees of the Company and its subsidiaries are covered by various contributory and non-contributory pension, profit sharing or 401(k) plans. Most union employees participate in multiemployer retirement plans under collective bargaining agreements, unless the collective bargaining agreement provides for participation in plans sponsored by the Company. In addition to sponsoring both defined benefit and defined contribution pension plans, the Company provides healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans. The Company also provides certain health and welfare benefits, including short-term and long-term disability benefits to inactive disabled employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For most retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the remaining cost.

Effective December 31, 2007, the Company authorized amendments to the SUPERVALU Retirement Plan and certain supplemental executive retirement benefit plans whereby service crediting ended in these plans and no employees will become eligible to participate in these plans after December 31, 2007. Pay increases will continue to be reflected in the amount of benefit earned in these plans until December 31, 2012.

Effective August 23, 2011, the Company amended the SUPERVALU Retiree Benefit Plan to modify benefits provided by the plan. The result of this amendment was a reduction in the other postretirement benefit obligation of $39 with a corresponding decrease to other comprehensive loss, net of tax.

The benefit obligation, fair value of plan assets and funded status of the defined benefit pension plans and other postretirement benefit plans consisted of the following:

	Pension Benefits						Other  Postretirement Benefits
	2012			2011			2012			2011
Change in Benefit Obligation
Benefit obligation at beginning of year	$	2,515		$	2,320		$	148		$	131
Plan Amendment		—			—			(52	)		—
Service cost		9			8			2			2
Interest cost		138			137			7			8
Transfers		(3	)		(1	)		—			—
Actuarial loss		461			146			17			13
Benefits paid		(85	)		(95	)		(6	)		(6	)
Benefit obligation at end of year		3,035			2,515			116			148
Changes in Plan Assets
Fair value of plan assets at beginning of year		1,896			1,557			—			—
Actual return on plan assets		121			272			—			—
Employer contributions		87			163			6			6
Plan participants’ contributions		—			—			8			8
Benefits paid		(88	)		(96	)		(14	)		(14	)
Fair value of plan assets at end of year		2,016			1,896			—			—
Funded status at end of year	$	(1,019	)	$	(619	)	$	(116	)	$	(148	)

For the defined benefit pension plans, the benefit obligation is the projected benefit obligation. For other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The Company’s accumulated benefit obligation for the defined benefit pension plans was $3,028 and $2,500 as of February 25, 2012 and February 26, 2011, respectively.

Amounts recognized in the Consolidated Balance Sheets consisted of the following:

	Pension Benefits						Other Postretirement Benefits
	2012			2011			2012			2011
Accrued vacation, compensation and benefits	$	(2	)	$	(3	)	$	(7	)	$	(8	)
Pension and other postretirement benefit obligations		(1,017	)		(616	)		(109	)		(140	)
	$	(1,019	)	$	(619	)	$	(116	)	$	(148	)

Amounts recognized in accumulated other comprehensive loss for the defined benefit pension plans and other postretirement benefit plans consists of the following:

	Pension Benefits						Other  Postretirement Benefits
	2012			2011			2012			2011
Prior service benefit	$	—		$	—		$	70		$	27
Net actuarial loss		(1,073	)		(702	)		(60	)		(48	)
Total recognized in accumulated other comprehensive loss	$	(1,073	)	$	(702	)	$	10		$	(21	)
Total recognized in accumulated other comprehensive loss, net of tax	$	(663	)	$	(430	)	$	6		$	(16	)

Net periodic benefit expense (income) for defined benefit pension plans and other postretirement benefit plans consisted of the following:

	Pension Benefits									Other Postretirement Benefits
Net Periodic Benefit Cost	2012			2011			2010			2012			2011			2010
Service cost	$	9		$	8		$	6		$	2		$	2		$	2
Interest cost		138			137			138			7			8			8
Expected return on plan assets		(125	)		(123	)		(129	)		—			—			—
Amortization of prior service benefit		—			—			—			(9	)		(6	)		(6	)
Amortization of net actuarial loss		93			65			10			4			2			2
Settlement		1			9			2			—			—			—
Net periodic benefit cost		116			96			27			4			6			6
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)
Prior service benefit		—			—			—			(52	)		—			—
Amortization of prior service benefit		—			—			—			9			6			6
Net actuarial loss (gain)		464			(12	)		(42	)		16			13			10
Amortization of net actuarial loss		(93	)		(65	)		(10	)		(4	)		(2	)		(2	)
Total recognized in other comprehensive income (loss)		371			(77	)		(52	)		(31	)		17			14
Total recognized in net periodic benefit expense and other comprehensive income (loss)	$	487		$	19		$	(25	)	$	(27	)	$	23		$	20

The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for the defined benefit pension plans during fiscal 2013 is $119. The estimated net amount of prior service benefit and net actuarial loss for the postretirement benefit plans that will be amortized from accumulated other comprehensive losses into net periodic benefit cost during fiscal 2013 is $7.

At February 25, 2012, the Company converted to the 2012 Static Mortality Table for Annuitants and Non-Annuitants for calculating the pension and postretirement obligations and the fiscal 2013 expense. The impact of this change increased the February 25, 2012 projected benefit obligation by $10 and the accumulated postretirement benefit obligation by $1. This change will also increase the fiscal 2013 defined benefit pension plans expense by $2.

Assumptions

Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of the following:

	2012			2011			2010
Benefit obligation assumptions:
Discount rate (2)		4.55	%		5.60	%		6.00	%
Rate of compensation increase		2.00	%		2.00	%		3.00	%
Net periodic benefit cost assumptions: (1)
Discount rate (2)		5.60	%		6.00	%		7.35	%
Rate of compensation increase		2.00	%		3.00	%		3.25	%
Expected return on plan assets (3)		7.50	%		7.75	%		8.00	%

(1) Net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year.

(2) The Company reviews and selects the discount rate to be used in connection with its pension and other postretirement obligations annually. In determining the discount rate, the Company uses the yield on corporate bonds (rated AA or better) that coincides with the cash flows of the plans’ estimated benefit payouts. The model uses a yield curve approach to discount each cash flow of the liability stream at an interest rate specifically applicable to the timing of each respective cash flow. The model totals the present values of all cash flows and calculates the equivalent weighted average discount rate by imputing the singular interest rate that equates the total present value with the stream of future cash flows. This resulting weighted average discount rate is then used in evaluating the final discount rate to be used by the Company.

(3) Expected long-term return on plan assets is estimated by utilizing forward-looking, long-term return, risk and correlation assumptions developed and updated annually by the Company. These assumptions are weighted by the actual or target allocation to each underlying asset class represented in the pension plan asset portfolio. The Company also assesses the expected long-term return on plan assets assumption by comparison to long-term historical performance on an asset class to ensure the assumption is reasonable. Long-term trends are also evaluated relative to market factors such as inflation, interest rates, and fiscal and monetary policies in order to assess the capital market assumptions.

The Company calculates its expected return on plan assets by using the market related value of plan assets. The market related value of plan assets is determined by adjusting the actual fair value of plan assets for unrecognized gains or losses on plan assets. Unrecognized gains or losses represent the difference between actual returns and expected returns on plan assets for each fiscal year and are recognized by the Company evenly over a three year period. Since the market-related value of assets recognizes gains or losses over a three-year period, the future value of assets will be impacted as previously deferred gains or losses are recognized.

For those retirees whose health plans provide for variable employer contributions, the assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation before and after age 65 was 7.75 percent, as of February 25, 2012. The assumed healthcare cost trend rate for retirees before and after age 65 will decrease by 0.25 percent for each of the next five years, through fiscal 2018, 0.50 percent in fiscal 2018, and 1.0 percent in fiscal 2019, until it reaches the ultimate trend rate of 5.0 percent. For those retirees whose health plans provide for a fixed employer contribution rate, a healthcare cost trend is not applicable. The healthcare cost trend rate assumption would have the following impact on the amounts reported. A 100 basis point change in the trend rate would impact the Company’s service and interest cost by approximately $1 for fiscal 2013. A 100 basis point decrease in the trend rate would impact the Company’s accumulated postretirement benefit obligation as of the end of fiscal 2012 by approximately $10, while a 100 basis point increase would impact the Company’s accumulated postretirement benefit obligation by approximately $11.

Pension Plan Assets

Plan assets are held in a master trust and invested in separately managed accounts and other commingled investment vehicles holding domestic and international equity securities, domestic fixed income securities and other investment classes. The Company employs a total return approach whereby a diversified mix of asset class investments are used to maximize the long-term return of plan assets for an acceptable level of risk. Alternative investments are also used to enhance risk-adjusted long-term returns while improving portfolio diversification. Risk management is managed through diversification across asset classes, multiple investment manager portfolios and both general and portfolio-specific investment guidelines. Risk tolerance is established through careful consideration of the plan liabilities, plan funded status and the Company’s financial condition. This asset allocation policy mix is reviewed annually and actual versus target allocations are monitored regularly and rebalanced on an as-needed basis. Plan assets are invested using a combination of active and passive investment strategies. Passive, or “indexed” strategies, attempt to mimic rather than exceed the investment performance of a market benchmark. The plan’s active investment strategies employ multiple investment management firms. Managers within each asset class cover a range of investment styles and approaches and are combined in a way that controls for capitalization, and style biases (equities) and interest rate exposures (fixed income) versus benchmark indices. Monitoring activities to evaluate performance against targets and measure investment risk take place on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews.

The asset allocation targets and the actual allocation of pension plan assets are as follows:

Asset Category	Target			2012			2011
Domestic equity		31.8	%		33.9	%		35.5	%
International equity		15.7	%		17.8	%		18.0	%
Private equity		7.5	%		4.8	%		3.5	%
Fixed income		35.0	%		35.0	%		35.6	%
Real estate		10.0	%		8.5	%		7.3	%
Cash and other		—	%		—	%		0.1	%
Total		100.0	%		100.0	%		100.0	%

The following is a description of the valuation methodologies used for investments measured at fair value:

Common stock—Valued at the closing price reported in the active market in which the individual securities are traded.

Common collective trusts—Valued at Net Asset Value (“NAV”), which is based on the value of the underlying securities owned by the fund and divided by the number of shares outstanding.

Corporate bonds—Valued based on yields currently available on comparable securities of issuers with similar credit ratings.

Government securities—Certain government securities are valued at the closing price reported in the active market in which the security is traded. Other government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings.

Mortgage-backed securities—Valued based on yields currently available on comparable securities of issuers with similar credit ratings.

Private equity and Real estate partnerships—Valued using the most recent general partner statement of fair value, updated for any subsequent partnership interests’ cash flows or expected changes in fair value.

Mutual funds—Mutual funds are valued at the closing price reported in the active market in which the individual securities are traded. Other mutual funds are valued at NAV, which is based on the value of the underlying securities owned by the fund and divided by the number of shares outstanding.

Other—Valued under an approach that maximizes observable inputs, such as gathering consensus data from the market participant’s best estimate of mid-market for actual trades or positions held.

The valuation methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuations methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement.

The fair value of assets of the Company’s benefit plans held in a master trust as of February 25, 2012, by asset category, consisted of the following:

	Level 1		Level 2		Level 3		Total
Common stock	$	606	$	—	$	—	$	606
Common collective trusts—fixed income		—		285		—		285
Common collective trusts—equity		—		332		—		332
Government securities		119		91		—		210
Mutual funds		—		198		—		198
Corporate bonds		—		113		—		113
Real estate partnerships		—		—		125		125
Private equity		—		—		97		97
Mortgage-backed securities		—		43		—		43
Other		—		7		—		7
Total plan assets at fair value	$	725	$	1,069	$	222	$	2,016

The fair value of assets of the Company’s benefit plans held in a master trust as of February 26, 2011, by asset category, consisted of the following:

	Level 1		Level 2		Level 3		Total
Common stock	$	718	$	33	$	—	$	751
Common collective trusts—fixed income		—		276		—		276
Common collective trusts—equity		—		199		—		199
Government securities		68		93		—		161
Mutual funds		—		149		—		149
Corporate bonds		15		128		—		143
Real estate partnerships		—		—		95		95
Private equity		—		—		66		66
Mortgage-backed securities		—		50		—		50
Other		1		5		—		6
Total plan assets at fair value	$	802	$	933	$	161	$	1,896

The following is a summary of changes in the fair value for level 3 investments for 2012 and 2011:

	Real Estate Partnerships			Private Equity
Beginning balance, February 28, 2010	$	—		$	35
Purchases		87			28
Sales		—			(3	)
Unrealized gains		8			6
Realized gains and losses		—			—
Ending balance, February 26, 2011		95			66
Purchases		20			30
Sales		(2	)		(7	)
Unrealized gains		12			8
Realized gains and losses		—			—
Ending balance, February 25, 2012	$	125		$	97

Contributions

The Company expects to contribute $168 to its defined benefit pension plans and $7 to its postretirement benefit plans in fiscal 2013. The Company’s funding policy for the defined benefit pension plans is to contribute the minimum contribution required under the Employee Retirement Income Security Act of 1974, as amended, and other applicable laws, with consideration given to contributing larger amounts. The Company will recognize contributions in accordance with applicable regulations, with consideration given to recognition for the earliest plan year permitted.

Estimated Future Benefit Payments

The estimated future benefit payments to be paid from the Company’s defined benefit pension plans and other postretirement benefit plans, which reflect expected future service, are as follows:

Fiscal Year	Pension Benefits		Other Postretirement Benefits
2013	$	106	$	7
2014		116		7
2015		122		7
2016		130		8
2017		139		8
Years 2018-2022		840		42

Defined Contribution Plans

The Company sponsors several defined contribution and profit sharing plans pursuant to Section 401(k) of the Internal Revenue Code. Employees may contribute a portion of their eligible compensation to the plans on a pre-tax basis. The Company matches a portion of employee contributions in cash into the employee’s investment options. The total amount contributed by the Company to the plans is determined by plan provisions or at the discretion of the Company. Total employer contribution expenses for these plans were $81, $94 and $95 for fiscal 2012, 2011 and 2010, respectively. Plan assets also include 5 and 4 shares of the Company’s common stock as of February 25, 2012 and February 26, 2011, respectively.

Post-Employment Benefits

The Company recognizes an obligation for benefits provided to former or inactive employees. The Company is self-insured for certain of its employees’ short-term and long-term disability plans, the primary benefits paid to inactive employees prior to retirement. As of February 25, 2012, the obligation for post-employment benefits was $44, with $22 included in Accrued vacation, compensation and benefits, and $22 included in Other long-term liabilities.

Multiemployer Pension Plans

The Company contributes to various multiemployer pension plans under collective bargaining agreements, primarily defined benefit pension plans. These multiemployer plans generally provide retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Plan trustees typically are responsible for determining the level of benefits to be provided to participants as well as the investment of the assets and plan administration. Trustees are appointed in equal number by employers and unions parties to the collective bargaining agreement.

Expense is recognized in connection with these plans as contributions are funded, in accordance with accounting standards. The Company contributed $130, $135 and $143 to these plans for fiscal years 2012, 2011 and 2010, respectively. The risks of participating in these multiemployer plans are different from the risks associated with single-employer plans in the following respects:

a. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

c. If the Company chooses to stop participating in some multiemployer plans, or makes market exits or store closures or otherwise has participation in the plan drop below certain levels, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

The Company’s participation in these plans is outlined in the table below. The EIN/Pension Plan Number column provides the Employee Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act zone status (“PPA”) available in 2012 and 2011 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that the Company received from the plan and is certified by each plan’s actuary. Among other factors, red zone status plans are generally less than 65 percent funded and are considered in critical status, plans in yellow zone or orange zone status are less than 80 percent funded and are considered endangered or seriously endangered status, and green zone plans are at least 80 percent funded. The FIP/RP Status Pending/Implemented column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented by the trustees of each plan.

Certain plans have been aggregated in the All Other Multiemployer Pension Plans line in the following table, as the contributions to each of these plans are not individually material. None of the Company’s collective bargaining agreements require that a minimum contribution be made to these plans. Finally, the number of employees covered by the Company’s multiemployer plans decreased by 5 percent from 2011 to 2012 and by 17 percent from 2010 to 2011, affecting the period-to-period comparability of the contributions for years 2012, 2011 and 2010. The significant reduction in covered employees corresponded to store closures, reductions in headcount and previously announced market exits.

The following table contains information about the Company’s multiemployer plans:

	EIN—Pension Plan Number		Plan Month/Day End  Date	Pension Protection Act Zone Status		FIP/RP Status Pending/ Implemented	Contributions						Surcharges Imposed (1)	Amortization Provisions
Pension Fund				2012	2011		2012		2011		2010
Southern California UFCW Unions and Food Employers Joint Pension Trust Fund		951939092-001	3/31	Red	Red	Implemented	$	35	$	37	$	41	No	Yes
UFCW Union and Participating Food Industry Employers Tri-State Pension Fund		236396097-001	12/31	Red	Red	Implemented		15		17		15	Yes	Yes
Western Conference of Teamsters Pension Plan		916145047-001	12/31	Green	Green	No		13		14		15	No	Yes
Central States, Southeast and Southwest Areas Pension Fund		366044243-001	12/31	Red	Red	Implemented		9		9		9	No	No
Minneapolis Food Distributing Industry Pension Plan		416047047-001	12/31	Yellow	Yellow	Implemented		9		9		8	No	Yes
United Food and Commercial Workers Union Local 152 Retail Meat Pension Plan		236209656-001	6/30	Red	Red	Implemented		7		7		7	Yes	Yes
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund		410905139-001	2/28	Yellow	Yellow	Implemented		7		6		6	No	No
United Food and Commercial Workers International Union-Industry Pension Fund		516055922-001	6/30	Green	Green	No		5		6		6	No	Yes
Retail Food Employers and UFCW Local 711 Pension		516031512-001	12/31	Red	Red	Implemented		5		4		5	Yes	No
UFCW Unions and Participating Employers Pension Plan		526117495-002	12/31	Red	Red	Implemented		4		3		3	Yes	Yes
Sound Retirement Trust (formerly Retail Clerks Pension Plan)		916069306-001	9/30	Red	Green	Implemented		3		3		4	Yes	Yes
All Other Multiemployer Pension Plans (2)								18		20		24
Total							$	130	$	135	$	143

(1) PPA surcharges are 5 percent or 10 percent of eligible contributions and may not apply to all collective bargaining agreements or total contributions to each plan.

(2) All Other Multiemployer Pension Plans includes 24 plans, none of which are individually significant when considering employer’s contributions to the plan, severity of the underfunded status or other factors.

The following table describes the expiration of the Company’s collective bargaining agreements associated with the significant multiemployer plans in which the Company participates:

Pension Fund	Range of Collective Bargaining Agreement Dates		Total Collective Bargaining Agreements		Expiration Date		% of Associates under Collective Bargaining Agreement (1)			Over 5% Contribution 2012
Southern California UFCW Unions and Food Employers Joint Pension Trust Fund		10/9/11 – 3/2/14		4		3/2/14		96.8	%	Yes
UFCW Union and Participating Food Industry Employers Tri-State Pension Fund		2/2/12 – 1/25/14		4		2/2/12		42.0	%	Yes
Western Conference of Teamsters Pension Plan		6/4/11 – 9/10/16		8		9/20/15		55.3	%	No
Central States, Southeast and Southwest Areas Pension Fund		9/10/11 – 5/31/16		13		9/15/13		26.9	%	No
Minneapolis Food Distributing Industry Pension Plan		5/31/13		1		5/31/13		100.0	%	Yes
United Food and Commercial Workers Union Local 152 Retail Meat Pension Plan		5/4/13		1		5/4/13		100.0	%	Yes
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund		3/2/13		1		3/2/13		100.0	%	Yes
United Food and Commercial Workers International Union-Industry Pension Fund		3/5/11 – 9/5/15		6		3/10/12		85.3	%	No
Retail Food Employers and UFCW Local 711 Pension		2/26/12 – 12/7/13		3		2/26/12		99.6	%	Yes
UFCW Unions and Participating Employers Pension Plan		7/7/12		2		7/7/12		70.6	%	Yes
Sound Retirement Fund		9/18/10 – 6/7/14		13		5/4/13		45.6	%	Yes

(1) Employees on which the Company contributes under these most significant collective bargaining agreements as a percent of all employees on which the Company contributes to the respective fund.

At the date the financial statements were issued, Forms 5500 were generally not available for the plan years ending in 2011.

Multiemployer Postretirement Benefit Plans Other than Pensions

The Company also makes contributions to multiemployer health and welfare plans in amounts set forth in the related collective bargaining agreements. These plans provide medical, dental, pharmacy, vision, and other ancillary benefits to active employees and retirees as determined by the trustees of each plan. The vast majority of the Company’s contributions benefit active employees and as such, may not constitute contributions to a postretirement benefit plan. However, the Company is unable to separate contribution amounts to postretirement benefit plans from contribution amounts paid to active plans.

The Company contributed $364, $375 and $358 for 2012, 2011 and 2010, respectively. If these healthcare provisions cannot be renegotiated in a manner that reduces the prospective healthcare cost as the Company intends, the Company’s Selling and administrative expenses could increase in the future.

Collective Bargaining Agreements

As of February 25, 2012, the Company had approximately 130,000 employees. Approximately, 84,000 employees are covered by collective bargaining agreements. During fiscal 2012, 56 collective bargaining agreements covering 38,000 employees were renegotiated and 32 collective bargaining agreements covering approximately 5,500 employees expired without their terms being renegotiated. Negotiations are expected to continue with the bargaining units representing the employees subject to those agreements. During fiscal 2013, 76 collective bargaining agreements covering approximately 36,000 employees are scheduled to expire.