Albertsons 2010 Annual Report Download - page 52

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NOTE 2—GOODWILL AND INTANGIBLE ASSETS
Changes in the Company’s Goodwill and Intangible assets consisted of the following:
February 23,
2008 Additions Impairments
Other net
adjustments
February 28,
2009 Additions Impairments
Other net
adjustments
February 27,
2010
Goodwill:
Retail food goodwill $6,152 $— $ — $ 12 $ 6,164 $— $— $(50) $ 6,114
Accumulated
impairment losses — — (3,223) — (3,223) — — — (3,223)
Total Retail food
goodwill, net 6,152 — (3,223) 12 2,941 — — (50) 2,891
Supply chain services
goodwill 805 — — 2 807 — — — 807
Total goodwill $6,957 $— $ (3,223) $ 14 $ 3,748 $— $— $(50) $ 3,698
February 23,
2008
Additions/
Amortization Impairments
Other net
adjustments
February 28,
2009
Additions/
Amortization Impairments
Other net
adjustments
February 27,
2010
Intangible assets:
Trademarks and
tradenames—
indefinite useful lives $1,370 $ — $ (301) $ — $1,069 $ — $(20) $ — $1,049
Favorable operating
leases, customer lists,
customer relationships
and other
(accumulated
amortization of $238
and $197, as of
February 27, 2010
and February 28,
2009, respectively) 717 14 — (25) 706 8 — (40) 674
Non-compete
agreements
(accumulated
amortization of $5
and $4 as of
February 27, 2010
and February 28,
2009, respectively) 15 1 — (6) 10 1 — 2 13
Total intangible assets 2,102 15 (301) (31) 1,785 9 (20) (38) 1,736
Accumulated amortization (150) (65) — 14 (201) (59) — 17 (243)
Total intangible assets, net $1,952 $1,584 $1,493
As a result of the planned retail market exits, as of February 27, 2010 the Company reclassified $36 of
Goodwill and $79 of Property, plant, and equipment and other intangible assets to assets held for sale. Assets
held for sale is a component of Other current assets in the Consolidated Balance Sheets. Also, the Company
recorded the sale of assets, which included $14 of Goodwill, and impairment charges of $20 to its trademarks
and tradenames.
During fiscal 2009, the Company recorded impairment charges of $3,524, comprised of $3,223 to goodwill at
certain Retail food reporting units and $301 to trademarks and tradenames related to the tradenames acquired
in the New Albertsons, Inc. acquisition.
Amortization expense of intangible assets with definite useful lives of $59, $65 and $55 was recorded in fiscal
2010, 2009 and 2008, respectively. Future amortization expense will be approximately $46 per year for each
of the next five years.
46