Albertsons 2014 Annual Report Download - page 83

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Due to the announced the closure of approximately 22 non-strategic Save-A-Lot stores, impairment charges of
$10 were recorded in fiscal 2013 related to these closed stores’ operating leases in the Save-A-Lot segment.
NOTE 4—PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net, consisted of the following:
2014 2013
Land $ 97 $ 100
Buildings 1,224 1,294
Property under construction 34 37
Leasehold improvements 693 688
Equipment 1,959 2,733
Capitalized lease assets 315 335
Total property, plant and equipment 4,322 5,187
Accumulated depreciation (2,618) (3,277)
Accumulated amortization on capitalized lease assets (207) (210)
Total property, plant and equipment, net $ 1,497 $ 1,700
Depreciation expense was $275, $333 and $321 for fiscal 2014, 2013 and 2012, respectively. Amortization
expense related to capitalized lease assets was $19, $23 and $26 for fiscal 2014, 2013 and 2012, respectively.
NOTE 5—FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are
categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the
inputs to fair value measurements, as follows:
Level 1 - Quoted prices in active markets for identical assets or liabilities;
Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly
observable;
Level 3 - Unobservable inputs in which little or no market activity exists, requiring an entity to develop
its own assumptions that market participants would use to value the asset or liability.
Impairment charges related to lease reserves and properties held and used and held for sale recorded during fiscal
2014, 2013 and 2012 discussed in Note 3—Reserves for Closed Properties and Property, Plant and Equipment-
Related Impairment Charges were measured at fair value using Level 3 inputs. Goodwill and intangible asset
impairment charges recorded during fiscal 2013 and 2012 discussed in Note 2—Goodwill and Intangible Assets
were measured at fair value using Level 3 inputs. Discontinued operations property, plant and equipment
impairment charges and finalization adjustments recorded in fiscal 2014 and 2013, related to NAI which were
recorded in Income from discontinued operations, net of tax, and are discussed in Note 14—Discontinued
Operations and Divestitures were measured at fair value using Level 3 inputs.
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