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) (p) Benefit Plans NAI recognizes the funded status of the specific defined benefit plan it sponsors in its Combined Balance Sheets and gains or losses and prior service costs or credits not yet recognized as a component of Other comprehensive income (loss), net of tax, in the Combined Statements of Operations and Comprehensive Income (Loss) and Combined Statements of Parent Company Deficit. The determination of NAI's obligation and related expense for the NAI sponsored pension benefits is dependent, in part, on management's selection of certain actuarial assumptions in calculating these amounts. These assumptions include, among other things, the discount rate and the expected long-term rate of return on plan assets. These assumptions are disclosed in note 10—Benefit Plans. Actual results that differ from the assumptions are accumulated and amortized over future periods in accordance with accounting standards. The Parent sponsors other pension and postretirement plans in various forms covering substantially all employees, including NAI employees, who meet eligibility requirements. NAI and Parent also contribute to various multiemployer pension plans under collective bargaining agreements, primarily defined benefit pension plans. Pension expense for these plans is recognized as contributions are funded. Refer to note 10—Benefit Plans for additional information on NAI's participation in those multiemployer plans. (q) Stock-Based Compensation Parent maintains various stock option, restricted stock, and performance award plans for benefit of certain key salaried employees, including NAI's employees. Parent accounts for stock-based compensation in accordance with the Financial Accounting Standards Board (FASB) guidance, which requires all share-b