Albertsons 2015 Annual Report Download - page 73

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71
Changes in the Company’s reserves for closed properties consisted of the following:
2015 2014 2013
Beginning balance $ 47 $ 61 $ 72
Additions 4 4 16
Payments (12)(16)(22)
Adjustments (5)(2)(5)
Ending balance $ 34 $ 47 $ 61
In fiscal 2013, due to the announced closure of approximately 22 non-strategic Save-A-Lot stores, impairment charges of $10
were recorded related to these closed stores' operating leases in the Save-A-Lot segment.
Property, Plant and Equipment Impairment Charges
The following table presents impairment charges related to property, plant and equipment measured at fair value on a non-
recurring basis:
2015 2014 2013
Property, plant and equipment:
Carrying value $ 4 $ 45 $ 291
Fair value measured using Level 3 inputs 1 21 40
Impairment charge $ 3 $ 24 $ 251
Fiscal 2015 impairment charges are primarily related to the closure of non-strategic Save-A-Lot stores. Fiscal 2014 impairment
charges were primarily related to the write-off of certain software tools that would no longer be utilized in operations within
Retail Food, and impairments of Independent Business distribution centers and Save-A-Lot stores. Fiscal 2013 impairment
charges primarily related to certain capital projects in process, mainly related to software under development and certain other
software support tools that the executive management team determined the Company would abandon, all within the Retail
Food segment and Corporate, and the announced closure of approximately 22 non-strategic Save-A-Lot stores.
NOTE 5—PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net, consisted of the following:
2015 2014
Land $ 104 $ 97
Buildings 1,252 1,224
Property under construction 71 34
Leasehold improvements 709 693
Equipment 2,021 1,959
Capitalized lease assets 314 315
Total property, plant and equipment 4,471 4,322
Accumulated depreciation (2,779)(2,618)
Accumulated amortization on capitalized lease assets (222)(207)
Total property, plant and equipment, net $ 1,470 $ 1,497
Depreciation expense was $258, $275 and $333 for fiscal 2015, 2014 and 2013, respectively. Amortization expense related to
capitalized lease assets was $19, $19 and $23 for fiscal 2015, 2014 and 2013, respectively.
NOTE 6—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;