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EFTA01382320

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Amendment No. 3 to Form S-1 Table of Contents The following is a reconciliation of Cash Flow from Operating Activities to Free Cash Flow (in millions): First Quarter Ended Fiscal 2014 Fiscal 2013 Fiscal 2012 June 20, 2016 June 12, 2014 Cash flow provided by (used in) operating activities $ 196.1 $ 146.4 $ (165.1) $ 49.5 $ 32.5 Income tax (benefit) expense (29.0) (14.0) (153.4) (572.6) 1.7 Deferred income taxes 54.3 17.3 170.1 657.6 - Interest expense—continued operations 283.8 140.0 633.2 390.1 7.2 Interest expense—discontinued operations - - - 3.9 0.8 Changes in operating assets and liabilities 163.4 (15.8) 39.3 (202.1) 21.1 Amortization and write-off of deferred financing costs (14.9) (27.4) (65.3) (25.1) (1.2) Loss on debt extinguishment - - - (49.1) - Store transition and related costs - - - 166.5 - Acquisition and integration costs 73.3 20.8 352.0 173.5 7.1 Termination of long-term incentive plan - - 78.0 - - Pension contribution in connection with Safeway acquisition - - 260.0 - - Other adjustments 0.8 (13.8) (50.1) (6.3) (4.2) Adjusted EBITDA 727.8 253.5 1,098.7 585.9 65.0 Less: capital expenditures (214.7) (97.1) (328.2) (128.2) (28.7) Free cash flow $ 513.1 $ 156.4 $ 770.5 $ 457.7 $ 36.3 Liquidity and Financial Resources Net Cash Provided By Operating Activities Net cash provided by operating activities was $196.1 million for the first quarter of fiscal 2015 compared to $146.4 million for the first quarter of fiscal 2014. The change in cash flow from operations for the first quarter of fiscal 2015 compared to the first quarter of fiscal 2014 was primarily due to improved net earnings after adjusting for non-cash charges and favorable changes in operating assets and liabilities, partially offset by increases in working capital. Our net cash flow used in operating activities was $165.1 million in fiscal 2014 compared to net cash provided by operating

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