Albertsons 2009 Annual Report Download - page 58

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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.
Amortization expense of intangible assets with a definite life of $65, $55 and $48 was recorded in fiscal 2009,
2008 and 2007, respectively. Future amortization expense will be approximately $53 per year for each of the
next five years.
NOTE 4—RESERVES FOR CLOSED PROPERTIES AND RELATED ASSET IMPAIRMENT
CHARGES
Reserves for Closed Properties
Changes in the Company’s reserves for closed properties consisted of the following:
2009 2008 2007
Beginning balance $ 97 $118 $ 62
Additions 70 18 36
Payments (22) (40) (42)
Adjustments 22 1 62
Ending balance $167 $ 97 $118
During the fourth quarter of fiscal 2009, the Company recorded $70 of additional reserves related to closing
certain non-strategic stores and $22 of adjustments primarily related to changes in subtenant income.
Fiscal 2007 additions included approximately $19 of reserves for closed properties from the Acquired
Operations, which were recorded in purchase accounting. Fiscal 2007 adjustments related to the fair value of
liabilities recognized in purchase accounting as of the Acquisition Date for acquired closed property lease
liabilities.
Asset Impairment Charges
During fiscal 2009, the Company recorded $75 of property, plant and equipment-related impairment charges
related to the closing of certain non-strategic stores, of which $69 was recorded in the fourth quarter.
During fiscal 2008, the Company recorded $14 of property, plant and equipment-related impairments and other
charges.
During fiscal 2007, the Company recorded a charge of $26 related to the disposal of 18 Scott’s retail stores
which included property, plant and equipment-related impairment charges of $6, goodwill impairment charges
of $19 and other charges of $1.
Additions and adjustments to the reserves for closed properties and asset impairment charges for fiscal 2009,
2008 and 2007 were all related to the Retail food segment, and were recorded as a component of Selling and
administrative expenses in the Consolidated Statements of Earnings, except for amounts related to the
Acquired Operations as noted above.
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