Albertsons 2004 Annual Report Download - page 23

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All activity for the fiscal 2001 restructure plan has been completed. Remaining reserves represent future
payments on exited real estate and employee benefit related costs from previously exited food distribution
facilities. Details of the fiscal 2001 restructure activity for fiscal 2004 are as follows:
Balance
February 22,
2003
Fiscal
2004
Usage
Fiscal
2004
Adjustment
Balance
February 28,
2004
(In thousands)
Lease related costs:
Consolidation of distribution centers $ 6,473 $ (2,384) $ (33) $ 4,056
Exit of non-core retail markets 8,844 (4,458) 3,266 7,652
Disposal of non-core assets and other
administrative reductions 4,299 (1,375) 536 3,460
19,616 (8,217) 3,769 15,168
Employee related costs:
Consolidation of distribution centers 9,604 (5,996) 7,421 11,029
Exit of non-core retail markets 2,980 (3,087) 540 433
12,584 (9,083) 7,961 11,462
Total restructure and other charges $32,200 $(17,300) $11,730 $26,630
Previously
Recorded
Fiscal
2004
Adjustment
Balance
February 28,
2004
Impairment charges $86,169 $ 2,737 $88,906
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. There was no
activity in fiscal 2004. 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 22,
2003
Employees 4,500 (3,767) (733) —
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
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 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 sale, sublease or assignment in certain markets and higher than
anticipated employee related costs.
In fiscal 2004, the fiscal 2000 restructure and other charges were increased by $0.5 million as a result of
changes in estimates on exited real estate due to the continued softening of real estate marketed for sale, sublease
or assignment in certain markets.
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