NOTE 4–RESERVES FOR CLOSED PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT-RELATED IMPAIRMENT CHARGES

Reserves for Closed Properties

The Company maintains reserves for costs associated with closures of retail stores, distribution centers and other properties that are no longer being utilized in current operations. The Company provides for closed property operating lease liabilities using a discount rate to calculate the present value of the remaining noncancellable lease payments after the closing date, reduced by estimated subtenant rentals that could be reasonably obtained for the property. Adjustments to closed property reserves primarily relate to changes in subtenant income or actual exit costs differing from original estimates. The calculation of the closed property charges requires significant judgments and estimates including estimated subtenant rentals, discount rates, and future cash flows based on the Company’s experience and knowledge of the market in which the closed property is located, previous efforts to dispose of similar assets and the assessment of existing market conditions.

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


	Year-To- Date Ended September 6, 2014
Reserves for closed properties at beginning of the fiscal year	$	47
Additions		1
Payments		(6	)
Adjustments		(1	)

Reserves for closed properties at the end of period	$	41

Property, Plant and Equipment Impairment Charges

Property, plant and equipment impairment charges are recorded as a component of Selling and administrative expenses in the Condensed Consolidated Statements of Operations.

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


	Second Quarter Ended				Year-To-Date Ended
	September 6, 2014		September 7, 2013		September 6, 2014		September 7, 2013
	(12 weeks)		(12 weeks)		(28 weeks)		(28 weeks)
Property, plant and equipment:
Carrying value	$	2	$	—	$	2	$	21
Fair value measured using Level 3 inputs		1		—		1		5

Impairment charge	$	1	$	—	$	1	$	16

Fiscal 2014 year-to-date impairment charges were primarily related to the write-off of certain software support tools that would no longer be utilized in operations within Retail Food and Save-A-Lot and surplus property impairments.