Safeway, Inc. (NYSE:SWY), is a North American food and drug retailer. On 25 February 2010, Safeway issued a press release that included the following information:

Safeway Inc. today reported a net loss of $1,609.1 million ($4.06 per diluted share) for the 16-week fourth quarter of 2009. Excluding a non-cash goodwill impairment charge of $1,818.2 million, net of tax ($4.59 per diluted share), net income would have been $209.1 million ($0.53 per diluted share). Net income was $338.0 million ($0.79 per diluted share) for the 17-week fourth quarter of 2008.

In the fourth quarter of 2009, Safeway recorded a non-cash goodwill impairment charge of $1,974.2 million ($1,818.2 million, net of tax). The impairment was due primarily to Safeway’s reduced market capitalization and a weak economy. . . . The goodwill originated from previous acquisitions.

Safeway’s balance sheet as of 2 January 2010 showed goodwill of $426.6 million and total assets of $14,963.6 million. The company’s balance sheet as of 3 January 2009 showed goodwill of $2,390.2 million and total assets of $17,484.7 million.
1. How significant is this goodwill impairment charge?
2. With reference to acquisition prices, what might this goodwill impairment indicate?