Albertsons 2003 Annual Report Download - page 50

Download and view the complete annual report

Please find page 50 of the 2003 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
for stock-based employee compensation. SFAS No. 148 also amends the disclosure requirements of SFAS
No. 123 to require additional disclosure in both annual and interim financial statements on the method of
accounting for stock-based employee compensation. The company adopted the disclosure provisions of SFAS
No. 148 in the fourth quarter of fiscal 2003.
In November 2002, the FASB issued Interpretation (FIN) No. 45, “Guarantor’s Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others”. FIN No. 45 requires
companies to recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken
in issuing the guarantee. Guarantees in existence at December 31, 2002 are grandfathered for the purposes of
recognition and would only need to be disclosed. The company adopted the initial recognition and measurement
provisions of FIN No. 45 for guarantees issued or modified after December 31, 2002. FIN No. 45 did not have a
material impact on the company’s consolidated financial statements.
Emerging Issue Task Force (EITF) Issue No. 01-09, “Accounting for Consideration Given by a Vendor to a
Customer (Including a Reseller of a Vendor’s Products)”, which codified EITF Issue No. 00-14, “Accounting for
Certain Sales Incentives”; EITF Issue No. 00-22, “Accounting for ‘Points’ and Certain Other Time-Based or
Volume-Based Sales and Incentive Offers, and Offers for Free Products or Services to be Delivered in the
Future”; and EITF Issue No. 00-25, “Vendor Income Statement Characterization of Consideration Paid to a
Reseller of the Vendor’s Products”, became effective for the company on February 24, 2002. These issues
address the appropriate accounting for certain vendor contracts and loyalty programs. This EITF did not have a
material impact on the company’s consolidated financial statements.
EITF Issue No. 02-13, “Deferred Income Tax Considerations in Applying the Goodwill Impairment Test in
FASB Statement No. 142, ‘Goodwill and Other Intangible Assets’ ”, requires that deferred income taxes be
included in the carrying amount of a reporting unit for the purposes of the first step of the SFAS No. 142
goodwill impairment test. EITF No. 02-13 is effective for goodwill impairment tests performed after
September 12, 2002. The company adopted the provisions of EITF No. 02-13 for the goodwill impairment tests
performed in the fourth quarter of fiscal 2003. This EITF did not have a material impact on the company’s
consolidated financial statements.
EITF Issue No. 02-16, “Accounting by a Reseller for Cash Consideration Received from a Vendor”,
addresses how a reseller of a vendor’s products should account for cash consideration received from a vendor and
how to measure that consideration in its income statement. Certain provisions of EITF No. 02-16 were effective
November 22, 2002 and other provisions were effective after December 31, 2002. This EITF did not have a
material impact on the company’s consolidated financial statements.
EITF Issue No. 02-17, “Recognition of Customer Relationship Intangible Assets Acquired in a Business
Combination”, focuses on customer relationship assets. EITF No. 02-17 addresses the contractual or other legal
criteria that must be met for determining the fair value of intangible assets apart from goodwill, even if the
contract does not exist at the date of the acquisition. EITF No. 02-17 is effective for business combinations
consummated and goodwill impairment tests performed after October 25, 2002. This EITF did not have a
material impact on the company’s consolidated financial statements.
Statement of Position (SOP) No. 01-06, “Accounting by Certain Entities (Including Entities with Trade
Receivables) that Lend to or Finance the Activities of Others”, became effective for the company on February 24,
2002. SOP No. 01-06 addresses the appropriate accounting for a company’s financing and lending activities.
SOP No. 01-06 did not have a material impact on the company’s consolidated financial statements.
F-15