fectively manage the day-to-day business of approximately 900 Albertsons and NAI stores depends significantly on IT services and systems provided by SuperValu pursuant to two transition services agreements (the "SVU TSAs"). It is intended that SuperValu will also provide IT services and systems for the sto

S version 3.0 and ANSI data encryption standards, could be significant. Termination of the SuperValu transition services agreement or the failure of SuperValu to perform its obligations thereunder could adversely affect our business, financial results and financial condition. Our ability to effectively mo

any ongoing litigation in which we are involved or any litigation in which we may become involved; data security, or the failure of our (or through SuperValu) IT systems; • increased costs as the result of being a public company; • the effects of government regulation; • our ability to raise additional

and Washington; Associated Wholesale Grocers purchased 12 stores in Texas; Associated Food Stores purchased eight stores in Montana and Wyoming; and SuperValu purchased two stores in Washington. The aggregate sales price of these stores was $525.8 million, including the book value of inventory. The company

ital, capital expenditures, interest payments and scheduled principal payments of debt, operating leases, capital leases and our TSA agreements with SuperValu. Based on current operating trends, we believe that cash flows from operating activities and other sources of liquidity, including borrowings under

perienced a second and separate criminal intrusion. We believe these were attempts to collect payment card data. Relying on our IT service provider, SuperValu, we took immediate steps to secure the affected part of the network. We believe that we have eradicated the malware used in each intrusion. We noti

Amendment No. 3 to Form S-1 Table of Contents Minnesota. On August 10, 2015, we joined SuperValu to file a motion to dismiss the class actions, which remains pending. Based on the proceedings to date, we are unable to determine the probability o

ted a series of acquisitions, beginning with our purchase of Albertson's LLC in 2006. This was followed in March 2013 by our acquisition of NAI from SuperValu, which included the Albertsons stores that we did not already own and stores operating under the Acme, Jewel-Osco, Shaw's and Star Market banners. I

d largest in the United States based on 2013 sales. Relationship with SuperValu Transition Services Agreements with SuperValu Services. Currently, SuperValu provides certain business support services to Albertsons and NAI pursuant to the SVU TSAs. The services provided by SuperValu to AJbertsons and NAI

SuperValu—Albertsons and NAI Trademark Cross Licenses In March 2013, NAI and Albertsons each entered into a trademark cross licensing agreement with SuperValu, pursuant to which each party granted the other a non-exclusive, royalty-free license to use certain proprietary rights (e.g., trademarks, trade nam

e 2037 ASC Notes are collectively referred to as the "ASC Notes." Interest on the ASC Notes is payable semiannually. The ASC Notes are guaranteed by SuperValu. The 2017 ASC Notes, 2026 ASC Notes and 2037 ASC Notes are not redeemable prior to maturity. The 2028 ASC MT Notes are redeemable in whole or in pa

he Office of Self-Insurance Plans, a program within the director's office of the California Department of Industrial Relations (the "DIR"), notified SuperValu that additional security was required to be posted in connection with the Company's, and certain other subsidiaries', California self-insured worker

separate criminal intrusion. The Company believes these were attempts to collect payment card data. The Company, relying on its IT service provider, SuperValu, took immediate steps to secure the affected part of its network. The Company believes that it has eradicated the malware used in each intrusion. Th

ital Management, L.P. (`Cerberus"), acquired 21.1% of SUPERVALU INC. ("SuperValu") common shares. On April 23, 2015, Symphony distributed all of the SuperValu common shares held by it to the members of Symphony. As of April 23, 2015, Symphony did not own any SuperValu common shares. Contractual Agreements

ny interest and penalties associated with uncertain tax positions as a component of Income tax expense. The Company is contractually indemnified by SuperValu for any tax liability of NAI arising from tax years prior to the NAI acquisition. The Company is also contractually obligated to pay SuperValu any t

ntents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Consolidated Financial Statements NM acquisition On March 21. 2013, the Company acquired from SuperValu all of the issued and outstanding shares of NAI pursuant to a Stock Purchase Agreement for a total purchase consideration of $253.6 million, includi

loss on extinguishment of debt of $49.1 million. As of February 28, 2015, the non-repurchased balance of $5.0 million continues to be guaranteed by SuperValu and continues to be cash collateralized. The Company's debentures and medium-term notes are unsecured and interest is payable semi-annually in accor

ciated with the NAI acquisition, Symphony Investors LLC ("Symphony"), which is owned by a consortium of investors led by Cerberus, acquired 21.1% of SuperValu shares. Symphony held 20.7% of SuperValu shares at February 28. 2015. Transition Services Agreement with SuperValu The Consolidated Financial State

separate criminal intrusion. The Company believes these were attempts to collect payment card data. The Company, relying on its IT service provider, SuperValu, took immediate steps to secure the affected part of its network. The Company believes that it has eradicated the malware used in each intrusion. Th