18. Asset Disposition Initiatives

In addition to the events described in Note 17 – 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.

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


			For the 40 Weeks Ended December 3, 2011
		Balance at		Interest							Balance at
		2/26/2011	Accretion⁽¹⁾Adjustments⁽²⁾Utilization⁽³⁾								12/3/2011
2011 Event
Continuing Operations
Occupancy	$	- $		- $		47,409	$	(2,022	)	$	45,387
Severance and health benefits		2,738		-		472		(3,139	)		71
2011 event total		2,738		-		47,881		(5,161	)		45,458

2010 Event
Continuing Operations
Occupancy		29,353		-		-		(109	)		29,244
Severance and health benefits		239		-		69		(69	)		239
2010 event total		29,592		-		69		(178	)		29,483

2005 Event
Continuing Operations
Health benefits		445		-		-		(130	)		315
2005 event total		445		-		-		(130	)		315

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		(109	)	(291	)		3,008
Pension withdrawals and health benefits		524		-		-		-			524
1998 event total		3,924		8		(109	)	(291	)		3,532

Total	$	40,600	$	8	$	48,007	$	(5,760	)		82,855

(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" 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" and "Reorganization items, net" for continuing operations and "Loss from operations of discontinued businesses" for discontinued operations in our Consolidated Statements of Operations.

For the 40 weeks Ended December 3, 2011

We recorded an initial occupancy charge for the 2011 event related to the April store closings and the Southern store closings of $63.3 million and $26.2 million, respectively, partially offset by an adjustment of $27.8 million and $14.5 million, respectively, to reduce the occupancy liabilities to an estimated allowable claim amount due to property leases that were rejected in Bankruptcy Court during the 40 weeks of fiscal 2011. We also recorded an adjustment for the Southern stores of $0.2 million due to balance sheet reclassifications for real estate accounts. The initial occupancy charge of $63.3 million and the related adjustment of $27.8 million for the April store closings impacted the Fresh, Pathmark and Other segments by $33.2 million, $27.6 million and $2.5 million, respectively, and $13.3 million, $14.3 million and $0.2 million, respectively. The Southern store closings all related to the Fresh segment. In addition, we recorded an initial severance charge for the 2011 Event related to the southern store closings of $2.8 million and adjustments of ($0.4) million and ($1.9) million for the 2011 Event related to the April and Southern store closings, respectively. The Southern store closures were completed by July 9, 2011 and 12 of these stores were sold at auction, resulting in a gain of $29.1 million.

For the 2010 Event, we recorded an adjustment of $0.1 million for additional severance and health benefits owed to severed employees. For the 2001 Event, we recorded an adjustment of $0.2 million to increase the occupancy liabilities to an estimated allowable claim amount due to property leases that were rejected in Bankruptcy Court during the 40 weeks of fiscal 2011. For the 1998 Event, we recorded an adjustment of $0.1 million to reduce the occupancy liabilities to an estimated allowable claim amount due to property leases that were rejected in Bankruptcy Court during the 40 weeks 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:


		2011		2010		2005		2001		1998
		Event		Event		Event		Event		Event		Total

Total severance payments made to
date	$	3,139	$	602	$	49,367	$	28,205	$	30,940	$	112,253
Expected future severance payments		71		239		315		-		524		1,149
Total severance payments expected
to be incurred	$	3,210	$	841	$	49,682	$	28,205	$	31,464	$	113,402

Total occupancy payments made to
date	$	2,022	$	898	$	13,856	$	67,283	$	120,263	$	204,322
Expected future occupancy
payments, excluding interest
accretion		45,387		29,244		-		4,067		3,008		81,706
Total occupancy payments expected
to be incurred, excluding interest
accretion	$	47,409	$	30,142	$	13,856	$	71,350	$	123,271	$	286,028

Total severance and occupancy
payments made to date	$	5,161	$	1,500	$	63,223	$	95,488	$	151,203	$	316,575
Expected future severance and
occupancy payments, excluding
interest accretion		45,458		29,483		315		4,067		3,532		82,855
Total severance and occupancy
payments expected to be
excluding interest accretion	$	50,619	$	30,983	$	63,538	$	99,555	$	154,735	$	399,430

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 2012, 2012, 2015, 2012 and 2012, respectively.

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


								December 3, 2011
		2011			2010			2005		2001		1998
		Event			Event			Event		Event		Event		Total
Other accruals		$	71		$	-	$	-	$	-	$	-	$	71
Other non-current liabilities		$	-		$	-	$	-	$	-	$	-	$	-
Liabilities subject to compromise	$	45,387		$	29,483		$	315	$	4,067	$	3,532	$	82,784


								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 December 3, 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.