Store Lease Exit Costs and Impairment Charges

Impairment Write-Downs Safeway recognized impairment charges on the write-down of long-lived assets of $46.5 million in 2012, $44.7 million in 2011 and $71.7 million in 2010. These charges are included as a component of operating and administrative expense.

Store Lease Exit Costs The reserve for store lease exit costs includes the following activity for 2012, 2011 and 2010 (in millions):



	2012			2011			2010
Beginning balance	$	77.0		$	94.0		$	87.6
Provision for estimated net future cash flows of additional closed stores ⁽¹⁾	19.4			2.8			5.1
Net cash flows, interest accretion, changes in estimates of net future cash flows	(19.9		)	(19.8		)	1.3
Ending balance	$	76.5		$	77.0		$	94.0

⁽¹⁾Estimated net future cash flows represents future minimum lease payments and related ancillary costs from the date of closure to the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting properties or through favorable lease terminations.

Store lease exit costs are included as a component of operating and administrative expense, and the liability is included in accrued claims and other liabilities.