Albertsons 2008 Annual Report Download - page 86

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
variable payments to the Company. In July 2007, Albertsons LLC and the Company amended the TSA to provide
for a one-year extension commencing June 3, 2008 and ending June 2, 2009. The TSA fees are reflected in the
Consolidated Statements of Earnings as a reduction of Selling and administrative expenses.
NOTE 4—GOODWILL AND INTANGIBLE ASSETS
A summary of changes in the Company’s Goodwill and Intangible assets is as follows:
February 25,
2006
Additions /
Amortization
Other net
adjustments
February 24,
2007
Additions /
Amortization
Other net
adjustments
February 23,
2008
Goodwill $1,614 $4,333 $(26) $5,921 $ 57 $ 979 $6,957
Intangible assets:
Trademarks and tradenames $ 22 $1,362 $ — $1,384 $ 1 $ (15) $1,370
Favorable operating leases,
customer lists and
other (accumulated
amortization of $130 and
$63, at February 23,
2008 and February 24,
2007, respectively) 50 1,043 (11) 1,082 12 (425) 669
Customer relationships
(accumulated
amortization of $11 and
$8 at February 23, 2008
and February 24, 2007,
respectively) 48 — — 48 — — 48
Non-compete agreements
(accumulated
amortization of $9 and
$6 at February 23, 2008
and February 24, 2007,
respectively) 8 6 (1) 13 3 (1) 15
Total intangible assets 128 2,411 (12) 2,527 16 (441) 2,102
Accumulated amortization (34) (48) 5 (77) (55) (18) (150)
Total intangible assets, net $ 94 $2,450 $1,952
The increase in Goodwill from $5,921 as of February 24, 2007 to $6,957 as of February 23, 2008 resulted
primarily from final purchase accounting adjustments for the Acquired Operations of $958 in the first quarter of
fiscal 2008 and other purchase accounting adjustments during fiscal 2008 for income tax-related amounts.
Goodwill also increased $57 related to other store acquisitions.
The increase in Goodwill from $1,614 as of February 25, 2006 to $5,921 at February 24, 2007 resulted primarily
from the addition of $4,333 of Goodwill related to the Acquired Operations. Other net adjustments consist
primarily of a Goodwill impairment charge of $19 related to the disposal of 18 Scott’s banner stores.
Amortization expense of intangible assets with a definite life of $55, $48 and $7 was recorded in fiscal 2008,
2007 and 2006, respectively. Future amortization expense will be approximately $56 per year for each of the next
five years.
F-20