Albertsons 2003 Annual Report Download - page 53

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
for property, plant and equipment, goodwill and other intangibles, and other assets were $58.4 million,
$21.8 million and $9.5 million, respectively, and were reflected in the “Restructure and other charges” line in the
Consolidated Statements of Earnings for fiscal 2001. In the fourth quarter of fiscal 2003, the fiscal 2001 asset
impairment charges for property, plant and equipment were decreased by $3.6 million primarily due to changes
in estimates on exited real estate in certain markets and includes a decrease of $8.2 million in estimates related to
certain food distribution properties offset by an increase of $4.6 million in estimates related to certain retail food
properties. The impairment charges reflect the difference between the carrying value of the assets and the
estimated fair values, which were based on the estimated market values for similar assets.
All activity for the fiscal 2001 restructure plan has been completed. Remaining reserves represent future
payments on exited real estate and unpaid employee benefits. Details of the fiscal 2001 restructure activity for
fiscal 2003 are as follows:
Balance
February 23,
2002
Fiscal
2003
Usage
Fiscal
2003
Adjustment
Balanc
February 22,
2003
(In thousands)
Lease related costs:
Consolidation of distribution centers $ 8,080 $ (6,852) $ 5,245 $ 6,473
Exit of non-core retail markets 15,969 (13,485) 6,360 8,844
Disposal of non-core assets and other
administrative reductions 7,194 (1,783) (1,112) 4,299
31,243 (22,120) 10,493 19,616
Employee related costs:
Consolidation of distribution centers 17,982 (7,917) (461) 9,604
Exit of non-core retail markets 6,172 (4,615) 1,423 2,980
Disposal of non-core assets and other
administrative reductions 554 (779) 225 —
24,708 (13,311) 1,187 12,584
Total restructure and other charges $55,951 $(35,431) $11,680 $32,200
Previously
Recorded
Fiscal
2003
Adjustment
February 22,
2003
Impairment charges $89,742 $ (3,573) $86,169
The number of actual employees terminated under the fiscal 2001 restructure plan was adjusted to a lower
number than originally expected primarily due to higher than anticipated voluntary attrition. Details of the fiscal
2001 restructure activity as it relates to the number of terminated employees are as follows:
Original
Estimate
Employees
Terminated
in Prior Years
Adjustments
in Prior Years
Balance
February 23,
2002
Employees
Terminated
in Fiscal 2003 Adjustment
Balance
February 22,
2003
Employees 4,500 (3,200) (550) 750 (567) (183) —
Restructure 2000
In fiscal 2000, the company recorded pre-tax restructure and other charges of $103.6 million as a result of
an extensive review to reduce costs and enhance efficiencies. Included in this total was $17.4 million for asset
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