Albertsons 2004 Annual Report Download - page 65

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
reserve increase of $11.7 million was a result of changes in estimates on employee benefit related costs from
previously exited food distribution facilities and changes in estimates on exited real estate in certain markets for
food distribution properties.
Included in the asset impairment charges in fiscal 2001 of $89.7 million were $57.4 million of charges
related to retail food properties and $32.3 million of charges related to food distribution properties. Writedowns
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 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.
In fiscal 2004, the fiscal 2001 asset impairment charges for property, plant and equipment were increased by $2.7
million primarily due to changes in estimates on exited real estate in certain markets for food distribution
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 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) —
F-18