Albertsons 2007 Annual Report Download - page 91

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SU
PERVAL
U
IN
C
. and
S
ubsidiaries
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Durin
g
fiscal 200
5
, the Compan
y
sold its minorit
y
ownership interest in WinCo. As a result of the sale, th
e
C
ompany recognized an after-tax gain of
$
68 (
$
109 pre-tax).
Reserves for C
l
ose
d
Propertie
s
Th
e Company ma
i
nta
i
ns reserves
f
or est
i
mate
dl
osses on reta
il
stores,
di
str
ib
ut
i
on ware
h
ouses an
d
ot
h
e
r
properties that are no lon
g
er bein
g
utilized in current operations. The reserves for closed properties includ
e
management’s estimates for lease subsidies, lease terminations and future payments on exited real estate.
Additions include approximately
$
19 of reserves for closed properties acquired from Albertsons, which were
recorded in purchase accountin
g
.Ad
j
ustments in the table below include approximatel
y
$62 related to the fair
v
alue of liabilities recognized in purchase accounting at the Acquisition Date for lease liabilities of former
A
lb
ertsons stores.
At February 24, 2007, the remaining 2001 restructuring reserve of
$
15 included
$
14 representing the estimate
d
f
air value of future lease payments less estimated sublease income related to properties exited and
$
1 related to
a
multi-emplo
y
er pension plan withdrawal liabilit
y
. Future lease pa
y
ments related to facilities primaril
y
under
o
perating leases that were exited as part of the 2001 restructuring plan will continue through fiscal 2027 and th
e
C
ompany expects t
h
emu
l
t
i
-emp
l
oyer pens
i
on p
l
an w
i
t
hd
rawa
lli
a
bili
ty w
ill b
epa
id i
n
f
u
ll b
yt
h
een
d
o
ffi
sca
l
2008
.
Deta
il
so
f
t
h
ese reser
v
es
w
ere as
f
o
ll
o
w
s
:
2007
2006
200
5
B
eginning balance
$
62
$
81
$
7
7
A
ddi
t
i
on
s
36
1
0
1
3
U
sag
e
(
42) (30) (31
)
Ad
j
ustments 62 1 22
Ending balance
$
118
$
62
$
81
Asset Im
p
airment
T
he Company recognized asset impairment charges of
$
7 (excluding the
$
19 goodwill and
$
1 other charge
s
related to Scott’s discussed above) for the
5
2 weeks ended Februar
y
24, 2007, primaril
y
for the write-down o
f
property, plant and equipment related to the plan to dispose of the 18 Scott’s retail stores. The Compan
y
recognized asset impairment charges of
$
66 during fiscal 2006 on the write-down of property, plant an
d
equipment for closed properties, primaril
y
related to the plan to dispose of corporate operated Shop ’n Save retail
stores in Pittsburgh and the impairment of certain assets following the planned disposition of Deals stores. Th
e
C
ompany recognized asset impairment charges of
$
5 in fiscal 2005 on the write-down of property, plant an
d
equipment for closed properties. The asset impairment char
g
es for fiscal 2007, 2006 and 200
5
related to the
R
etail food segment. Impairment charges, a component of Selling and administrative expenses in th
e
C
onso
lid
ate
d
Statements o
f
Earn
i
ngs, re
fl
ect t
h
e
diff
erence
b
etween t
h
e carry
i
ng va
l
ue o
f
t
h
e assets an
d
t
h
e
estimated fair values, which were based on the estimated market values for similar assets
.
F-2
5