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) Trade names—indefinite Febniary 24, 2011 Additions Impairments Other net adJusbnents February 23. 2012 Aciottions impairments Other net adostments February 21. 2013 useful lives $ 758 — (303) — 455 — (158) (2) 295 Favorable operating leases, prescription records and scripts, customer lists. customer relationships. and other (accumulated amortization of $297 and $327 as of February 23, 2012 and February 21, 2013. respectively) 595 7 - (5) 597 1 (12) (9) 577 Noncompete agreements (accumulated amortization of $3 and $2 as of February 23, 2012 and February 21. 2013, respectively) 5 1 — (1) 5 — 2 7 Total intangible assets 1.358 8 (303) (6) 1,057 1 (170) (9) 879 Accumulated amortization (254) (47) — 1 (300) (40) 11 (329) Total intangible assets, net $ 1,104 757 550 Fair values of NAI's trade names were determined primarily by discounting an assumed royalty value applied to projected future revenues associated with the trade names based on management's expectations of the current and future operating environment. The tax effected royalty cash flows are discounted using rates based on the weighted average cost of capital and the specific risk profile of the trade names relative to NAI's other assets. These estimates are impacted by variable factors including inflation, the general health of the economy and market competition. The calculation of the impairment charge contains significant judgments and estimates related to such items as the weighted average cost of capital and the specified risk profile of the trade names, as well as future revenue and profitability. NAI has a single reporting unit, operating segment, and reportable segment. NAI performed reviews of goodwill