Albertsons 2011 Annual Report Download - page 49

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During fiscal 2011 the Company recorded $95 reduction to Goodwill as a result of divesting Total Logistic
Control. Refer to Note 15 – Divestiture.
As a result of 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. During fiscal 2010 the
Company also recorded the sale of assets, which included $14 of Goodwill, and impairment charges of $20 to
its trademarks and tradenames.
Amortization expense of intangible assets with definite useful lives of $57, $59 and $65 was recorded in fiscal
2011, 2010 and 2009, respectively. Future amortization expense will be approximately $38 per year for each of
the next five years.
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:
2011 2010 2009
Beginning balance $ 128 $ 167 $ 97
Additions 73 13 70
Payments (40) (48) (22)
Adjustments 17 (4) 22
Ending balance $ 178 $ 128 $ 167
During fiscal 2011, the Company recorded additional reserves primarily related to the closure of non-strategic
stores announced and closed in the fourth quarter of fiscal 2011. During fiscal 2010 and 2009, the Company
recorded additional reserves primarily related to the closure of non-strategic stores announced and closed 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 2011, the Company recorded $39 of property, plant and equipment-related impairment charges,
of which $24 were recorded in the fourth quarter as a result of the closure of the non-strategic stores. 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.
Additions and adjustments to the reserves for closed properties and property, plant and equipment-related
impairment charges for fiscal 2011, 2010 and 2009 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.
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