Safeway 2012 Annual Report Download - page 63

SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
51
New Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update
("ASU") 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income."
This ASU amends Accounting Standards Codification ("ASC") Topic 220, "Comprehensive Income" and
requires an entity to provide information about the amounts reclassified out of accumulated other
comprehensive income by component. It requires entities to present, either on the face of the statement
where net income is presented or in the notes, significant amounts reclassified out of accumulated other
comprehensive income by the respective line items of net income. This disclosure is required only if the
amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same
reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety
to net income, a cross-reference to other disclosures required under U.S. GAAP that provide additional detail
about those amounts is required. The amendments in this ASU are effective prospectively for reporting
periods beginning after December 15, 2012, with early adoption permitted. The adoption of ASU 2013-02
is not expected to have a material impact on Safeway's consolidated financial statements.
Note B: Goodwill
Goodwill represents the excess of cost of an acquired business over the fair value of the identifiable tangible
and intangible assets acquired and liabilities assumed in a business combination. Goodwill is not subject to
amortization but must be evaluated for impairment.
A summary of changes in Safeway’s goodwill by geographic area is as follows (in millions):
2012 2011
U.S. Canada Total U.S. Canada Total
Balance – beginning of year:
Goodwill $4,364.9 $96.2 $ 4,461.1 $ 4,324.4 $ 97.8 $ 4,422.2
Accumulated impairment
charges (3,991.3) — (3,991.3) (3,991.3) — (3,991.3)
373.6 96.2 469.8 333.1 97.8 430.9
Activity during the year:
Acquisition —— —40.5 — 40.5
Other adjustments —1.7 (1) 1.7 —(1.6)
(1) (1.6)
—1.7 1.7 40.5 (1.6) 38.9
Balance – end of year:
Goodwill 4,364.9 97.9 4,462.8 4,364.9 96.2 4,461.1
Accumulated impairment
charges (3,991.3) — (3,991.3) (3,991.3) — (3,991.3)
$373.6 $97.9 $ 471.5 $ 373.6 $ 96.2 $ 469.8
(1) Represents foreign currency translation adjustments in Canada.
On September 16, 2011, Blackhawk acquired Cardpool, Inc., a prepaid card exchange company where
customers can buy, sell or trade previously issued prepaid cards. The purchase consideration was $42.3
million, consisting of $9.9 million cash paid at close, a $9.2 million payment due one year after close and
contingent payments for up to $23.2 million. At year-end 2012, Cardpool achieved financial and operating
milestones, resulting in $1.4 million of the contingent consideration as payable, and the remaining payments
are potentially payable up to three years after acquisition, based on the achievement of certain financial