Albertsons 2003 Annual Report Download - page 54

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
impairment costs. The restructure and other charges include costs for facility consolidation, non-core store
disposal, and rationalization of redundant and certain decentralized administrative functions. The original reserve
amount was reduced by $10.3 million in fiscal 2001, primarily as a result of a change in estimate for the closure
of a remaining facility. The reserve amount was subsequently increased $12.2 million in fiscal 2002, due to a
change in estimate on a remaining facility primarily due to the softening real estate market.
In the fourth quarter of fiscal 2003, the fiscal 2000 restructure and other charges were decreased by
$1.6 million, including a $2.9 million increase to the restructure reserves offset by a decrease in asset impairment
charges of $4.5 million. The reserve increase of $2.9 million was a result of changes in estimates on exited real
estate primarily due to the continued softening of real estate marketed for sublease in certain markets and higher
than anticipated employee related costs.
Included in the asset impairment charges in fiscal 2000 of $17.4 million were writedowns on food
distribution assets of $10.6 million for property, plant and equipment, $5.6 million of goodwill and other
intangibles and $1.2 million for other assets that were reflected in the “Restructure and other charges” line in the
Consolidated Statements of Earnings for fiscal 2000. In the fourth quarter of fiscal 2003, the fiscal 2000 asset
impairment charges for property, plant and equipment on food distribution properties were decreased by
$4.5 million primarily due to changes in estimates on exited real estate in certain markets. 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 2000 restructure plan has been completed. Remaining reserves represent future
payments on exited real estate. Details of the fiscal 2000 restructure activity for fiscal 2003 are as follows:
Balance
February 23,
2002
Fiscal
2003
Usage
Fiscal
2003
Adjustment
Balance
February 22,
2003
(In thousands)
Lease related costs:
Facility consolidation $10,300 $(3,713) $ 1,496 $ 8,083
Non-core store disposal 4,611 (1,818) 249 3,042
14,911 (5,531) 1,745 11,125
Employee related costs:
Facility consolidation 2,938 (3,866) 928 —
Infrastructure realignment 142 (363) 221 —
3,080 (4,229) 1,149 —
Total restructure and other charges $17,991 $(9,760) $ 2,894 $11,125
Previously
Recorded
Fiscal
2003
Adjustment
February 22,
2003
Impairment charges $17,430 $(4,466) $12,964
F-19