Amendment No. 3 to Form S-1 Table of Contents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited) In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. This amendment updates Topic 330 to require an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. This update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact of this pronouncement. In July 2015, the FASB also issued ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960); Defined Contribution Benefit Plans (Topic 962); and Health and Welfare Benefit Plans (Topic 965)", a three-part update with the objective of simplifying benefit plan reporting to make the information presented more useful to the reader. All three parts are effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the impact of this pronouncement. NOTE 2—PROPERTIES HELD FOR SALE On December 19, 2014, in connection with the acquisition of Safeway Inc. ("Safeway", "the Safeway acquisition"), the Company announced that they entered into agreements to sell 111 Albertson's Holdings LLC (Albertson's") and 57 Safeway stores across eight states to four separate buyers. Divestiture of these stores was required by the Federal Trade Commission ("FTC") as a con