How the company is doing

BOISE -- Almost exactly three years after buying Albertsons, Supervalu is paying a price for some of its debt.

This time last year Supervalu was announcing a net income of $140 million but in today's third quarter report the grocery chain reported a $3 billion loss.

It seems like a shocking shift, but those numbers don't tell the whole story.

That’s because the grocery chain took a $3.3 billion devaluation related to the company's slumping stock prices -- it's lost 60 percent of its value in the past seven months.

When stock prices fall below book value for a period of time all companies are federally required to reconcile the price in their earnings report.

Micron Technology had to do the same thing this fiscal year.

Supervalu 3Q results hurt by impairment charges

Supervalu CEO Jeff Noddle says that accounting measure doesn't accurately reflect how the company's doing.

"I don't like the company having to do this, I don't want to just be flip about it by any means, but those intelligent investors understand this is an accounting requirement, it means nothing in terms of what your sales are, what your earnings are going to be, what your debt levels are, anything. It has no effect, but it is a $3 billion charge," said Noddle.

If you exclude that one-time charge, Supervalu actually beat analysts’ expectations with a loss of 62 cents a share.

Its cost-cutting measures for 2009 include plans to close about 50 underperforming stores, cutback on its remodels and reduce spending.         

Supervalu is one of the most leveraged retailers in the nation, and to that end, it also intends to increase its debt pay down to $600 million this year.

Noddle stressed that the company is stronger today than it was a year ago and that the Treasure Valley remains a priority.