Albertsons 2010 Annual Report Download - page 53

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NOTE 3—RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-
RELATED IMPAIRMENT CHARGES
Reserves for Closed Properties
Changes in the Company’s reserves for closed properties consisted of the following:
2010 2009 2008
Beginning balance $167 $ 97 $118
Additions 13 70 18
Payments (48) (22) (40)
Adjustments (4) 22 1
Ending balance $128 $167 $ 97
During fiscal 2010 and 2009, the Company recorded additional reserves primarily related to the closure of
non-strategic stores announced in fiscal 2009. Adjustments to reserves for closed properties are primarily
related to changes in subtenant income.
Property, Plant and Equipment-Related Impairment Charges
During fiscal 2010, the Company recorded $52 of property, plant and equipment-related impairment charges,
of which $43 were recorded in the fourth quarter as a result of the planned retail market exits. During fiscal
2009, the Company recorded $75 of property, plant and equipment-related impairment charges related to the
closure of non-strategic stores announced in fiscal 2009. During 2008, the Company recorded $14 of property,
plant and equipment-related impairment and other charges.
Additions and adjustments to the reserves for closed properties and property, plant and equipment-related
impairment charges for fiscal 2010, 2009 and 2008 were primarily related to the Retail food segment, and
were recorded as a component of Selling and administrative expenses in the Consolidated Statements of
Earnings.
NOTE 4—PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net, consisted of the following:
2010 2009
Land $ 1,277 $ 1,313
Buildings 3,550 3,443
Property under construction 232 315
Leasehold improvements 1,602 1,613
Equipment 4,455 4,201
Capitalized lease assets 968 1,030
Total property plant and equipment 12,084 11,915
Accumulated depreciation (4,724) (4,091)
Accumulated amortization on capitalized lease assets (334) (296)
Total property, plant and equipment, net $ 7,026 $ 7,528
Depreciation expense was $852, $945 and $911 for fiscal 2010, 2009 and 2008, respectively. Amortization
expense related to capitalized lease assets was $64, $67 and $64 for fiscal 2010, 2009 and 2008, respectively.
47