Albertsons 2003 Annual Report Download - page 69

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The company also maintains non-contributory, unfunded pension plans to provide certain employees with
pension benefits in excess of limits imposed by federal tax law. The projected benefit obligation of the unfunded
plans was $23.5 million and $18.8 million at February 22, 2003 and February 23, 2002, respectively. The
accumulated benefit obligation of these plans totaled $19.3 million and $14.2 million at February 22, 2003 and
February 23, 2002, respectively. Net periodic pension cost was $2.7 million, $2.8 million and $2.2 million for
2003, 2002 and 2001, respectively.
SIGNIFICANT CUSTOMER
During fiscal 2003 and 2002, no single customer accounted for ten percent or greater of net sales or
accounts receivable. During fiscal 2001, Kmart Corporation (Kmart) represented 10.8 percent of net sales.
Receivables outstanding for Kmart at February 24, 2001 were $70.0 million or 11.5 percent. The supply contract
with Kmart terminated on June 30, 2001.
SHAREHOLDER RIGHTS PLAN
On April 24, 2000, the company announced that the Board of Directors adopted a Shareholder Rights Plan
under which one preferred stock purchase right is distributed for each outstanding share of common stock. The
rights, which expire on April 12, 2010, are exercisable only under certain conditions, and may be redeemed by
the Board of Directors for $0.01 per right. The plan contains a three-year independent director evaluation
provision whereby a committee of the company’s independent directors will review the plan at least once every
three years. The rights become exercisable, with certain exceptions, after a person or group acquires beneficial
ownership of 15 percent or more of the outstanding voting stock of the company.
SEGMENT INFORMATION
Refer to page F-5 for the company’s segment information.
F-34