Albertsons 2013 Annual Report Download - page 68
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the statement that reports comprehensive income (loss), items reclassified out of Accumulated other comprehensive
income (loss) and into net earnings in their entirety and the effect of the reclassification on each affected Statement of
Operations line item. In addition, for Accumulated other comprehensive income (loss) reclassification items that are
not reclassified in their entirety into net earnings, a cross reference to other required accounting standard disclosures is
required. This guidance is effective for the Company in the first quarter of fiscal 2014. The Company believes that the
adoption of this guidance will not have a material impact on its financial condition or results of operations.
NOTE 2—GOODWILL AND INTANGIBLE ASSETS
Changes in the Company’s Goodwill and Intangible assets consisted of the following:
February 26,
2011 Additions Impairments
Other net
adjustments
February 25,
2012 Additions Impairments
Other net
adjustments
February 23,
2013
Goodwill:
Retail Food goodwill $ 887 $ — $ — $ (1) $ 886 $ — $ — $ — $ 886
Accumulated impairment
losses (794) — (92) — (886) — — — (886)
Total Retail Food
goodwill, net 93 — (92) (1) — — — — —
Save-A-Lot goodwill 137 — — — 137 — — — 137
Independent Business goodwill 710 — — — 710 — — — 710
Total goodwill $ 940 $ — $ (92) $ (1) $ 847 $ — $ — $ — $ 847
February 26,
2011 Additions Impairments
Other net
adjustments
February 25,
2012 Additions Impairments
Other net
adjustments
February 23,
2013
Intangible assets:
Trademarks and tradenames—
indefinite useful lives $ 14 $ — $ — $ — $ 14 $ — $ (6) $ 1 $ 9
Favorable operating leases,
customer lists, customer
relationships and other
(accumulated amortization
of $65 and $56 as of
February 23, 2013 and
February 25, 2012,
respectively) 103 2 — — 105 1 — — 106
Non-compete agreements
(accumulated amortization
of $2 and $2 as of
February 23, 2013 and
February 25, 2012,
respectively) 3 — — — 3 — — — 3
Total intangible assets 120 2 — — 122 1 (6) 1 118
Accumulated amortization (50) (8) — — (58) (8) — (1) (67)
Total intangible assets, net $ 70 $ 64 $ 51
The Company applies a fair value based impairment test to the net book value of goodwill and intangible assets with
indefinite useful lives on an annual basis and on an interim basis if events or circumstances indicate that an impairment
loss may have occurred.
The Company conducted an annual impairment test of the net book value of goodwill and intangible assets with
indefinite useful lives during the fourth quarter of fiscal 2013. The fair value of goodwill for the Company’s Save-A-
Lot reporting was in excess of 100 percent of the $137 carrying value. The fair value of the Company’s Independent
Business reporting unit exceeded its $710 carrying value by approximately 60 percent. The Company recorded a pre-
tax non-cash impairment charge of $6 in the Independent Business segment for tradenames with indefinite useful lives
during the fourth quarter of fiscal 2013.
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