Albertsons 2007 Annual Report Download - page 90

SU
PERVAL
U
IN
C
. and
S
ubsidiaries
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
a
nd measurement of a tax position taken or expected to be taken in a tax return. Additionall
y
, FIN 48 provide
s
g
uidance on subsequent derecognition of tax positions, financial statement classification, recognition of interest
a
n
d
pena
l
t
i
es, account
i
ng
i
n
i
nter
i
m per
i
o
d
s, an
ddi
sc
l
osure an
d
trans
i
t
i
on requ
i
rements. FIN 48
i
se
ff
ect
i
ve
f
or
the Compan
y
’s fiscal
y
ear be
g
innin
g
Februar
y
2
5
, 2007, with earl
y
adoption permitted. The Compan
y
is in the
process of evaluating the impact of adoption of FIN 48.
I
nSe
p
tember 2006, the FASB issued SFAS No. 1
5
7, “Fair Value Measurements” (“SFAS No. 1
5
7”). SFAS
N
o. 157 clarifies the principle that fair value should be based on the assumptions market participants would us
e
w
hen pricin
g
an asset or liabilit
y
and establishes a fair value hierarch
y
that prioritizes the information used t
o
d
evelop those assumptions. Under the standard, fair value measurements would be separatel
y
disclosed b
y
leve
l
w
ithin the fair value hierarchy. SFAS 157 is effective for the Company’s fiscal year beginning February 24
,
2
008, with earl
y
adoption permitted. The Compan
y
is in the process of evaluatin
g
the impact of adoption of
SFAS No. 1
5
7
.
I
n September 2006, the FASB issued SFAS No. 1
5
8, “Emplo
y
ers’ Accountin
g
for Defined Benefit Pension and
Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106 and 132
(
R
)
”
(
“SFA
S
N
o. 158”). SFAS No. 158 requires an employer that sponsors one or more single-employer defined benefit plan
s
to (a) reco
g
nize the overfunded or underfunded status of a benefit plan in its statement of financial position,
(b
) recogn
i
ze as a component o
f
ot
h
er compre
h
ens
i
ve
i
ncome, net o
f
tax, t
h
ega
i
ns or
l
osses an
d
pr
i
or serv
i
ce
costs or cre
di
ts t
h
at ar
i
se
d
ur
i
n
g
t
h
e per
i
o
db
ut are not reco
g
n
i
ze
d
as components o
f
net per
i
o
di
c
b
ene
fi
t cost
pursuant to SFAS No. 87, “Emplo
y
ers’ Accountin
g
for Pensions”, or SFAS No. 106, “Emplo
y
ers’ Accountin
g
f
or Postret
i
rement Bene
fi
ts Ot
h
er T
h
an Pens
i
ons”, (c) measure
d
e
fi
ne
db
ene
fi
tp
l
an assets an
d
o
bli
gat
i
ons as o
f
t
h
e
d
ate o
f
t
h
e emp
l
o
y
er’s
fi
sca
ly
ear-en
d
,an
d
(
d
)
di
sc
l
ose
i
nt
h
e notes to
fi
nanc
i
a
l
statements a
ddi
t
i
ona
l
information about certain effects on net periodic benefit cost for the next fiscal
y
ear that arise from dela
y
e
d
recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. SFAS No. 15
8
is effective for the Compan
y
’s fiscal
y
ear endin
g
Februar
y
24, 2007. The adoption of SFAS No. 158 and its
effects are described in Note 1
5
—Benefit Plans
.
I
n September 2006, the SEC issued Staff Accountin
g
Bulletin No. 108, “Considerin
g
the Effects of Prior Year
M
isstatements when Quantifying Misstatements in Current Year Financial Statements” (“SAB 108”). SAB 108
prov
id
es
i
nterpret
i
ve gu
id
ance on
h
ow t
h
ee
ff
ects o
f
t
h
e carryover or reversa
l
o
f
pr
i
or year m
i
sstatements s
h
ou
ld
b
e considered in quantif
y
in
g
a current
y
ear misstatement. The Securities and Exchan
g
e Commission staf
f
b
elieves that registrants should quantify errors using both a balance sheet and an income statement approach and
eva
l
uate w
h
et
h
er e
i
t
h
er approac
h
resu
l
ts
i
n quant
if
y
i
ng a m
i
sstatement t
h
at, w
h
en a
ll
re
l
evant quant
i
tat
i
ve an
d
qualitative factors are considered, is material. SAB 108 is effective for the Compan
y
’s fiscal
y
ear endin
g
F
ebruary 24, 2007 and did not have a material effect on the Company’s consolidated financial statements
.
N
O
TE 5—
C
L
OS
ED PR
O
PERTIE
S
AND A
SS
ET IMPAIRMENT
C
HAR
G
E
S
Durin
g
fiscal 2007, the Compan
y
committed to a plan to dispose of 18 Scott’s retail stores. Related to thi
s
d
isposition, the Company recorded a fourth quarter pre-tax charge of
$
26 million, which includes property, plan
t
a
nd equipment related impairment char
g
es of $6,
g
oodwill impairment char
g
es of $19 and other char
g
es of $1
.
During fiscal 200
6
, the Company announced the plans to dispose of twenty corporate operated Shop ’n Save
retail stores in Pittsbur
g
h. Related to this disposition, the Compan
y
recorded a char
g
e of $65 million, whic
h
included property, plant and equipment related impairment charges of
$
52 million, goodwill impairment charges
o
f
$
7 million and other charges of
$
6 million.
During fiscal 200
6
, the Company sold 2
6
Cub Foods stores located primarily in the Chicago area to the Cerberu
s
Group for a pre-tax and after-tax loss of approximatel
y
$95 and $61, respectivel
y
. The pre-tax loss is included in
Sellin
g
and administrative expenses on the Consolidated Statements of Earnin
g
s.
F
-
24