Albertsons 2004 Annual Report Download - page 24

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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 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 2004 are as follows:
Balance
February 22,
2003
Fiscal
2004
Usage
Fiscal
2004
Adjustment
Balance
February 28,
2004
(In thousands)
Lease related costs:
Facility consolidation $ 8,083 $(7,667) $ 34 $ 450
Non-core store disposal 3,042 (1,454) 418 2,006
Total restructure and other charges $11,125 $(9,121) $452 $ 2,456
Previously
Recorded
Fiscal
2004
Adjustment
February 28,
2004
Impairment charges $12,964 $ 18 $12,982
The number of actual employees terminated under the fiscal 2000 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 2003 or fiscal 2004. Details of the fiscal 2000 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 2,517 (1,693) (824) —
CRITICAL ACCOUNTING POLICIES
The preparation of consolidated financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Significant accounting policies are discussed in the Summary of Significant Accounting Policies in the
accompanying Notes to Consolidated Financial Statements. Management believes the following critical
accounting policies reflect its more subjective or complex judgments and estimates used in the preparation of the
company’s consolidated financial statements.
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