RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES

Reserves for Closed Properties

Changes in Supervalu’s reserves for closed properties consisted of the following:



	September 9, 2017 (28 weeks)
Reserves for closed properties at beginning of the fiscal year	$	22
Additions	2
Payments	(4		)
Adjustments	(1		)
Reserves for closed properties at the end of period	$	19

Property, Plant and Equipment-Related Impairment Charges

The following table presents impairment charges related to property, plant and equipment measured at fair value on a non-recurring basis:



	Second Quarter Ended				Year-To-Date Ended
	September 9, 2017 (12 weeks)		September 10, 2016 (12 weeks)		September 9, 2017 (28 weeks)		September 10, 2016 (28 weeks)
Property, plant and equipment:
Carrying value	$	98	$	1	$	98	$	3
Fair value measured using Level 3 inputs	56		—		56		2
Impairment charge	$	42	$	1	$	42	$	1

Supervalu monitors its long-lived assets for recoverability for indicators of impairment on an on-going basis and evaluates their carrying value for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be fully recoverable. In the second quarter of fiscal 2018, two Retail asset groups, which consisted of two separate Retail banners, indicated a decline in their results of operations and the cash flow projections of these two Retail asset groups declined compared to prior projections. As a result, the two Retail asset groups were selected for an undiscounted cash flow review. One of these Retail asset groups failed the long-lived asset recoverability test. Accordingly, a fair value assessment using the income approach was performed over that Retail group's long-lived assets. The carrying value of the assets within this asset group were determined to exceed their estimated fair value. The carrying values of these assets were reduced until such long-lived assets were recorded at the lower of their carrying value or fair value, resulting in an impairment charge of $42, which was recorded within Selling and administrative expenses in the Retail segment. The remaining carrying value of the long-lived assets in this asset group is $56. Significant judgments are required in measuring the fair value of asset groups, including the fair value of business, the fair value of the underlying individual assets, and cash flow projections of revenues and earnings.