Amendment No. 3 to Form S-1 Table of Contents NEW ALBERTSON'S BUSINESS OF SUPERVALU INC. AND SUBSIDIARIES Notes to Combined Financial Statements February 21, 2013 and February 23, 2012 (Dollars in millions) (1) Description of Business and Basis of Presentation (a) Business Description The New Albertson's Business (NAI or the Business) is not a stand-alone legal entity, however it is a combination of supermarket businesses operating under the banners Jewel-Osco, Shaw's, Star Market, Acme and Albertsons and their associated in-store pharmacies and dedicated distribution centers, which were part of the retail segment of SUPERVALU INC. (Parent or SUPERVALU) through March 21, 2013. These supermarket stores offer a wide variety of nationally advertised brand name and private-label products, primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty care, as well as pharmacy and fuel. On March 21, 2013, Parent sold NAI to AB Acquisition LLC (NAI Banner Sale). Immediately after AB Acquisition LLC's purchase of NAI. NAI sold its Albertsons banner operations, Albertsons dedicated distribution centers and certain other assets (Albertsons Business) to Albertson's LLC, a wholly owned subsidiary of AB Acquisition LLC (Albertsons Banner Sale). Subsequent to the Albertsons Banner Sale, the Albertsons Business and the remaining supermarket operations within the New Albertson's Business remain under the common control of AB Acquisition LLC. (b) Basis of Presentation These combined financial statements represent the financial position, result of operations and comprehensive income (loss), changes in Parent company deficit, and cash flows of the Business, and were derived by extracting the assets, liabilities, revenues and expenses directly attributable to the Business from the historical accounting records of the Parent, based on accounting policies historically used by Parent. The combined financial statements ha