Albertsons 2003 Annual Report Download - page 25

industrial revenue bonds and other variable interest rate debt) is utilized to help maintain liquidity and finance
business operations. Long-term debt with fixed interest rates is used to assist in managing debt maturities and to
diversify sources of debt capital.
The company makes long-term loans to certain retail customers (see Notes Receivable in the Notes to
Consolidated Financial Statements for further information) and as such, carries notes receivable in the normal
course of business. The notes generally bear fixed interest rates negotiated with each retail customer. The market
value of the fixed rate notes is subject to change due to fluctuations in market interest rates. At February 22,
2003, the estimated fair value of notes receivable approximates the net carrying value.
The table below provides information about the company’s financial instruments that are sensitive to
changes in interest rates, including notes receivable, debt obligations and interest rate swap agreements. For debt
obligations, the table presents principal cash flows and related weighted average interest rates by expected
maturity dates. For notes receivable, the table presents the expected collection of principal cash flows and
weighted average interest rates by expected maturity dates. For interest rate swap agreements, the table presents
the estimate of the differentials between interest payable and interest receivable under the swap agreements
implied by the yield curve utilized to compute the fair value of the interest rate swaps.
Summary of Financial Instruments
February 22, 2003 Aggregate payments by fiscal year
Fair
Value Total 2004 2005 2006 2007 2008 Thereafter
(in millions, except rates)
Notes receivable
Principal receivable $ 102.2 $ 102.2 $30.3 $ 18.1 $15.4 $12.0 $10.6 $ 15.8
Average rate receivable 7.8% 5.6% 9.3% 9.5% 9.5% 9.6% 7.9%
Debt with variable interest rates
Principal payable $ 150.5 $ 150.5 $88.0 $ — $ 2.4 $ 2.6 $ 1.0 $ 56.5
Average variable rate
payable 1.4% 1.6% — 1.2% 1.2% 1.2% 1.2%
Debt with fixed interest rates
Principal payable $1,521.6 $1,435.5 $23.2 $271.8 $60.8 $71.0 $ 4.0 $1,004.7
Average fixed rate payable 7.2% 8.3% 7.7% 7.2% 6.8% 8.5% 7.1%
Fixed-to-variable interest rate
swaps
Amount receivable $ 20.7 $ 20.7 $ 8.8 $ 6.3 $ 3.6 $ 1.8 $ 0.6 $ (0.4)
Average variable rate
payable 3.9%
Average fixed rate
receivable 7.9%
Cautionary Statements for Purposes of the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995
Any statements in this report regarding SUPERVALU’s outlook for its businesses and their respective
markets, such as projections of future performance, statements of management’s plans and objectives, forecasts
of market trends and other matters, are forward-looking statements based on management’s assumptions and
beliefs. Such statements may be identified by such words or phrases as “will likely result,” “are expected to,”
“will continue,” “outlook,” “is anticipated,” “estimate,” “project,” “management believes” or similar expressions.
Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to
differ materially from those discussed in such forward-looking statements and no assurance can be given that the
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