Albertsons 2002 Annual Report Download - page 30

The Company has entered into revolving credit agreements with various
financial institutions, which are available for general corporate purposes
and for the issuance of letters of credit. A $400 million revolving credit
agreement expires in October 2002 and a $300 million 364-day agree-
ment expires in August 2002. Both credit facilities have rates tied to
LIBOR plus 0.650 to 1.400 percent, based on the Company’s credit ratings.
Outstanding borrowings under the revolving credit facilities for February 23,
2002 and February 24, 2001 were $0 and $250 million, respectively, and
are reflected in Notes Payable on the consolidated balance sheet. As of
February 23, 2002, letters of credit under the facilities were $122 and the
unused available credit under these facilities was $578 million.
Leases
Capital and operating leases The Company leases certain retail food
stores, food distribution warehouses and office facilities. Many of these
leases include renewal options, and to a limited extent, include options to
purchase. Amortization of assets under capital leases was $31.6, $33.3
and $27.0 million in fiscal 2002, 2001 and 2000, respectively.
Future minimum obligations under capital leases in effect at February 23,
2002 are as follows:
(In thousands) Lease
Fiscal Year Obligations
2003 $ 64,265
2004 63,251
2005 62,872
2006 61,877
2007 62,196
Later 618,941
Total future minimum obligations 933,402
Less interest 443,226
Present value of net future minimum obligations 490,176
Less current obligations 23,062
Long-term obligations $467,114
The present values of future minimum obligations shown are calculated
based on interest rates ranging from 6.7 percent to 13.8 percent, with a
weighted average rate of 8.3 percent, determined to be applicable at the
inception of the leases.
In addition to its capital leases, the Company is obligated under operat-
ing leases, primarily for buildings, warehouses and computer equipment.
Future minimum obligations under operating leases in effect at February 23,
2002 are as follows:
(In thousands) Lease
Fiscal Year Obligations
2003 $136,826
2004 122,144
2005 106,220
2006 91,884
2007 81,985
Later 457,669
Total future minimum obligations $996,728
The Company is party to synthetic leasing programs for two of its major
warehouses. The leases qualify for operating lease accounting treatment
under SFAS No. 13, “Accounting for Leases”. For additional information on
synthetic leases, refer to the footnote on Commitments, Contingencies and
Off-Balance Sheet Arrangements.
Total rent expense, net of sublease income, relating to all operating
leases with terms greater than one year was $100.7, $88.4 and $61.5 million
in fiscal 2002, 2001 and 2000, respectively.
Future minimum receivables under operating leases and subleases in
effect at February 23, 2002 are as follows:
(In thousands) Owned Leased
Fiscal Year Property Property Total
2003 $ 2,893 $20,110 $ 23,003
2004 2,714 16,523 19,237
2005 2,620 13,815 16,435
2006 2,338 10,705 13,043
2007 2,158 8,459 10,617
Later 10,703 27,626 38,329
Total future minimum receivables $23,426 $97,238 $120,664
Owned property under operating leases is as follows:
February 23, February 24,
(In thousands) 2002 2001
Land, buildings and equipment $42,343 $44,946
Less accumulated depreciation 19,435 20,911
Net land, buildings and equipment $22,908 $24,035
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