Albertsons 2012 Annual Report Download - page 59

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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:
2012 2011 2010
Beginning balance $ 178 $ 128 $ 167
Additions 67313
Payments (56) (40) (48)
Adjustments 13 17 (4)
Ending balance $ 141 $ 178 $ 128
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, which resulted in increased payments during
fiscal 2012. During fiscal 2010, 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 2012, the Company recorded $10 of property, plant and equipment-related impairment charges, of
which $1 was recorded in the fourth quarter. 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 2012, 2011 and 2010 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:
2012 2011
Land $ 1,200 $ 1,260
Buildings 3,590 3,567
Property under construction 390 296
Leasehold improvements 1,672 1,627
Equipment 4,724 4,525
Capitalized lease assets 922 963
Total property plant and equipment 12,498 12,238
Accumulated depreciation (5,760) (5,263)
Accumulated amortization on capitalized lease assets (376) (371)
Total property, plant and equipment, net $ 6,362 $ 6,604
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