17. Asset Disposition Initiatives

In addition to the events describe in Note 16 – Discontinued Operations, there were restructuring transactions which were not primarily related to our discontinued operations businesses. These events are referred to based on the year the transaction was initiated, as described below.

Summarized below is a reconciliation of the liabilities related to restructuring obligations resulting from these activities (in thousands):

	For the 16 Weeks Ended June 18, 2011
	Balance at		Interest							Balance at
	2/26/2011		Accretion (1)		Adjustments(2)		Utilization(3)			6/18/2011
2011 Event
Continuing Operations
Occupancy	$	-	$	-	$	33,960	$	(1,264	)	$	32,696
Severance		2,738		-		2,948		(945	)		4,741
2011 event total		2,738		-		36,908		(2,209	)		37,437

2010 Event
Continuing Operations
Occupancy		29,353		-		-		(168	)		29,185
Health benefits		239		-		-		-			239
2010 event total		29,592		-		-		(168	)		29,424

2005 Event
Continuing Operations
Health benefits		445		-		-		(60	)		385
2005 event total		445		-		-		(60	)		385

2001 Event
Continuing Operations
Occupancy		2,127		-		166		-			2,293

Discontinued Operations
Occupancy		1,774		-		-		-			1,774
2001 event total		3,901		-		166		-			4,067

1998 Event
Continuing Operations
Occupancy		3,400		8		-		(118	)		3,290
Pension withdrawals and health benefits		524		-		-		-			524
1998 event total		3,924		8		-		(118	)		3,814

Total	$	40,600	$	8	$	37,074	$	(2,555	)	$	75,127

(1)

The additions to occupancy represent the interest accretion on future occupancy costs which were recorded at present value at the time of the original charge. These adjustments are recorded to "Store operating, general and administrative expense" and "Reorganization items, net" for continuing operations and "Loss from operations of discontinued businesses" for discontinued operations in our Consolidated Statements of Operations.

(2)

At each balance sheet date, we assess the adequacy of the balance to determine if any adjustments are required as a result of changes in circumstances and/or estimates. These adjustments are recorded to "Store operating, general and administrative expense" for continuing operations and "Loss from operations of discontinued businesses" for discontinued operations in our Consolidated Statements of Operations.

For the 16 Weeks Ended June 18, 2011

For the 16 weeks ended June 18, 2011, we recorded an initial occupancy charge for the 2011 event related to the April store closings of $63.3 million partially offset by an adjustment of $29.3 million to reduce the occupancy liabilities to an estimated allowable claim amount due to property leases that were rejected in bankruptcy court during the first quarter of fiscal 2011. In addition, we recorded an initial severance charge for the 2011 Event related to the southern store closings of $2.8 million and an adjustment of $0.1 million for the 2011 Event related to the April store closings. These store closures were completed by July 9, 2011. An occupancy charge for these stores will be recorded in the second quarter of fiscal 2011.

(3)	Occupancy utilization represents payments made during those periods for rent. Severance and benefits utilization represents payments made to terminated employees during the period.

Summarized below are the payments made to date from the time of the original charge and expected future payments related to these events (in thousands):

	2011		2010		2005		2001		1998
	Event		Event		Event		Event		Event		Total

Total severance payments made to date	$	945	$	533	$	49,297	$	28,205	$	30,940	$	109,920
Expected future severance payments		4,741		239		385		-		524		5,889
Total severance payments expected
to be incurred	$	5,686	$	772	$	49,682	$	28,205	$	31,464	$	115,809

Total occupancy payments made to date	$	1,264	$	957	$	13,856	$	67,283	$	120,090	$	203,450
Expected future occupancy payments,
excluding interest accretion		32,696		29,185		-		4,067		3,290		69,238
Total occupancy payments expected
to be incurred, excluding interest
accretion	$	33,960	$	30,142	$	13,856	$	71,350	$	123,380	$	272,688

Total severance and occupancy
payments made to date	$	2,209	$	1,490	$	63,153	$	95,488	$	151,030	$	313,370
Expected future severance and
occupancy payments, excluding
interest accretion		37,437		29,424		385		4,067		3,814		75,127
Total severance and occupancy payments
expected to be incurred, excluding
interest accretion	$	39,646	$	30,914	$	63,538	$	99,555	$	154,844	$	388,497

Payments to date were primarily for occupancy related costs such as rent, common area maintenance, real estate taxes, lease termination costs, severance, and benefits. The remaining obligation relates to expected future payments under long-term leases and expected future payments for early withdrawal from multi-employer union pension plans. The expected completion dates for the 2011, 2010, 2005, 2001 and 1998 events are 2015, 2012, 2015, 2012 and 2013, respectively.

Summarized below are the amounts included in our balance sheet captions in our Company's Consolidated Balance Sheets related to these events (in thousands):

					June 18, 2011
	2011		2010		2005		2001		1998
	Event		Event		Event		Event		Event		Total
Other accruals	$	4,741	$	-	$	-	$	-	$	-	$	4,741
Other non-current liabilities	$	-	$	-	$	-	$	-	$	-	$	-
Liabilities subject to compromise	$	32,696	$	29,424	$	385	$	4,067	$	3,814	$	70,386


					February 26, 2011
			2010		2005		2001		1998
			Event		Event		Event		Event		Total
Other accruals			$	-	$	-	$	-	$	-	$	-
Other non-current liabilities			$	-	$	-	$	-	$	-	$	-
Liabilities subject to compromise			$	29,592	$	445	$	3,901	$	3,924	$	37,862

We evaluated the closed locations reserves balances as of June 18, 2011 based on current information and have concluded that they are adequate to cover future costs. We will continue to monitor the status of the vacant and subsidized properties, severance and benefits, and pension withdrawal liabilities, and adjustments to the closed locations reserves balances may be recorded in the future, if necessary.