Albertsons 2016 Annual Report Download - page 78

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76
NOTE 4—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:
2016 2015 2014
Beginning balance $ 34 $ 47 $ 61
Additions 8 4 4
Payments (12)(12)(16)
Adjustments (1)(5)(2)
Ending balance $ 29 $ 34 $ 47
In fiscal 2016, the Company determined it would close 15 non-strategic Save-A-Lot corporate stores and recorded an
impairment charge of $5 related to the operating leases for these stores 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:
2016 2015 2014
Property, plant and equipment:
Carrying value $ 11 $ 4 $ 45
Fair value measured using Level 3 inputs 3 1 21
Impairment charge $ 8 $ 3 $ 24
Fiscal 2016 and 2015 impairment charges are primarily related to the closure of non-strategic Save-A-Lot corporate 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, and impairments of Wholesale distribution centers and Save-A-Lot stores.
NOTE 5—PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net, consisted of the following:
2016 2015
Land $ 104 $ 104
Buildings 1,295 1,252
Property under construction 79 71
Leasehold improvements 722 709
Equipment 2,082 2,021
Capitalized lease assets 294 314
Total property, plant and equipment 4,576 4,471
Accumulated depreciation (2,897)(2,779)
Accumulated amortization on capitalized lease assets (198)(222)
Total property, plant and equipment, net $ 1,481 $ 1,470
Depreciation expense was $248, $258 and $275 for fiscal 2016, 2015 and 2014, respectively. Amortization expense related to
capitalized lease assets was $18, $19 and $19 for fiscal 2016, 2015 and 2014, respectively.