Albertsons 2003 Annual Report Download - page 40

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SUPERVALU INC. and Subsidiaries
CONSOLIDATED COMPOSITION OF NET SALES AND OPERATING EARNINGS
(In thousands, except percent data)
February 22, 2003
(52 weeks)
February 23, 2002
(52 weeks)
February 24, 2001
(52 weeks)
Net sales
Retail food $ 9,848,230 $ 9,549,068 $ 9,353,992
51.4% 47.1% 41.5%
Food distribution 9,312,138 10,743,972 13,166,392
48.6% 52.9% 58.5%
Total net sales $19,160,368 $20,293,040 $22,520,384
100.0% 100.0% 100.0%
Operating earnings
Retail food operating earnings $ 436,537 $ 363,304 $ 286,520
Food distribution operating earnings 171,589 227,013 251,009
General corporate expenses (35,265) (39,245) (35,840)
Restructure and other charges (2,918) (46,300) (171,264)
Total operating earnings 569,943 504,772 330,425
Interest expense, net (161,939) (172,774) (190,835)
Earnings before income taxes $ 408,004 $ 331,998 $ 139,590
Identifiable assets
Retail food $ 3,352,164 $ 3,098,577 $ 3,082,088
Food distribution 2,527,858 2,683,486 3,247,172
Corporate 16,223 14,186 13,892
Total $ 5,896,245 $ 5,796,249 $ 6,343,152
Depreciation and amortization
Retail food $ 167,143 $ 177,585 $ 173,418
Food distribution 127,042 160,718 167,253
Corporate 2,871 2,447 3,108
Total $ 297,056 $ 340,750 $ 343,779
Capital expenditures
Retail food $ 357,342 $ 310,738 $ 347,540
Food distribution 80,916 74,860 158,591
Corporate 1,180 3,060 5,542
Total $ 439,438 $ 388,658 $ 511,673
The company’s business is classified by management into two reportable segments: Retail food and food
distribution. Retail food operations include three retail formats: extreme value stores, regional price superstores
and regional supermarkets. The retail formats include results of food stores owned and results of sales to extreme
value stores licensed by the company. Food distribution operations include results of sales to affiliated food
stores, mass merchants and other customers, and other logistics arrangements. Management utilizes more than
one measurement and multiple views of data to assess segment performance and to allocate resources to the
segments. However, the dominant measurements are consistent with the consolidated financial statements.
Reportable segment operating earnings were computed as total revenue less associated operating expenses.
Fiscal 2002 operating earnings reflect pretax charges of $12.5 million in retail food for store closing reserves.
Fiscal 2001 operating earnings reflect pretax charges of $44.5 million in retail food for store closing reserves and
$24.3 million in food distribution for inventory markdowns and provisions for certain uncollectible receivables.
Identifiable assets are those assets of the company directly associated with the reportable segments.
See notes to consolidated financial statements.
F-5