Kroger 2010 Annual Report Download - page 125

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A-45
NO T E S T O CO N S O L I D A T E D FI N A N C I A L ST A T E M E N T S , CO N T I N U E D
Based on current and future expected cash flows, the Company believes additional goodwill
impairments are not reasonably possible. A 10% reduction in fair value of the Company’s reporting units
would not indicate a potential for impairment of the Company’s remaining goodwill balance, except for
one non-supermarket reporting unit with recorded goodwill of $77. The fair value of this reporting unit
was estimated using discounted cash flows. The discounted cash flows assume long-term sales growth
rates comparable to historical performances and a discount rate of 12.5%.
3. PR O P E R T Y , PL A N T A N D EQ U I P M E N T , NE T
Property, plant and equipment, net consists of:
2010 2009
Land ...................................................... $ 2,168 $ 2,058
Buildings and land improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,417 6,999
Equipment ................................................. 9,806 9,553
Leasehold improvements ..................................... 5,852 5,483
Construction-in-progress ..................................... 904 1,010
Leased property under capital leases and financing obligations ....... 569 570
Total property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 26,716 25,673
Accumulated depreciation and amortization ...................... (12,569) (11,744)
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,147 $ 13,929
Accumulated depreciation for leased property under capital leases was $317 at January 29, 2011, and
$299 at January 30, 2010.
Approximately $247 and $382, original cost, of Property, Plant and Equipment collateralized certain
mortgages at January 29, 2011 and January 30, 2010, respectively.