Assets and Liabilities Held for Sale and Discontinued Operations
Assets and Liabilities Held for Sale In the fourth quarter of 2013, the Company announced its intention to exit the Chicago market, where it operated 72 Dominick's stores. During the fourth quarter of 2013, the Company sold or closed its Dominick's stores. Certain Dominick's properties were classified as held for sale at year end. Additionally, the Company had other real estate assets held for sale at December 28, 2013. Assets and liabilities held for sale at December 28, 2013 were as follows (in millions):
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| December 28, 2013 |
Assets held for sale: | |
| Dominick's property, net, held for sale | $ | 136.7 |
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| Other United States real estate assets held for sale | 7.2 |
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| Total assets held for sale | $ | 143.9 |
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| | | December 28, 2013 |
Liabilities held for sale: | |
| Dominick's | |
| | Deferred gain on property dispositions | $ | 9.0 |
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| | Obligations under capital leases | 5.2 |
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| | Deferred rent | 2.6 |
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| | Other liabilities | 1.4 |
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| | Total liabilities held for sale (1) | $ | 18.2 |
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(1) | Included in Other Accrued Liabilities on the consolidated balance sheet. |
Discontinued Operations
Sale of Canadian Operations On November 3, 2013, Safeway completed the Sale of Canadian Operations to Sobeys for CAD5.8 billion (USD5.6 billion) in cash plus the assumption of certain liabilities.
Dominick's During the fourth quarter of 2013, Safeway sold or closed all Dominick's stores. In 2013, cash proceeds on the sale of these stores were $72.2 million, with a pre-tax loss of $493.1 million. Included in the loss is a $310.8 million charge which represents the estimated multiemployer pension plan withdrawal liability. See Note N.
Genuardi's In January 2012, Safeway announced the planned sale or closure of its Genuardi’s stores, located in the Eastern United States. These transactions were completed during 2012 with cash proceeds of $107.0 million and a pre-tax gain of $52.4 million ($31.9 million after tax).
The notes to the consolidated financial statements exclude discontinued operations, unless otherwise noted. Historical financial information for CSL and Dominick's presented in the consolidated income statements has been reclassified to discontinued operations to conform to current-year presentation. The historical operating results of Genuardi's stores have not been reflected in discontinued operations because the historical financial operating results were not material to the Company's consolidated financial statements for all periods presented. Financial information for discontinued operations is shown below (in millions):
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| 2013 |
| 2012 |
| 2011 |
Sales and other revenue: |
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| CSL (1) | $ | 5,447.9 |
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| $ | 6,695.8 |
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| $ | 6,726.9 |
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| | Dominick's | 1,394.8 |
| | 1,465.2 |
| | 1,568.6 |
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| Total | $ | 6,842.7 |
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| $ | 8,161.0 |
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| $ | 8,295.5 |
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Income (loss) from discontinued operations, before income taxes: | | | | | |
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| CSL (1) | $ | 286.2 |
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| $ | 442.3 |
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| $ | 462.3 |
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| | Dominick's | (92.0 | ) | | (50.4 | ) | | (38.7 | ) |
| | Total | $ | 194.2 |
| | $ | 391.9 |
| | $ | 423.6 |
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Gain (loss) on sale or disposal of operations, net of lease exit costs, before income taxes: | | | | | |
| | CSL (2) | $ | 4,783.1 |
| | $ | — |
| | $ | — |
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| | Dominick's | (493.1 | ) | | — |
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| Genuardi's | — |
| | 52.4 |
| | — |
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| Total | $ | 4,290.0 |
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| $ | 52.4 |
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| $ | — |
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Total income from discontinued operations before income taxes | $ | 4,484.2 |
| | $ | 444.3 |
| | $ | 423.6 |
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Income taxes on discontinued operations | (1,208.3 | ) | | (140.8 | ) | | (272.6 | ) |
Income from discontinued operations, net of tax | $ | 3,275.9 |
| | $ | 303.5 |
| | $ | 151.0 |
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(1) For CSL, 2013 reflects 44 weeks of activity compared to 52 weeks in 2012 and 2011. |
(2) In accordance with ASU No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity," the Company transferred the cumulative translation adjustment relating to Canadian operations from Accumulated Other Comprehensive Loss on the balance sheet to gain on the Sale of Canadian Operations. |
