Albertsons 2004 Annual Report Download - page 30

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In July and August 2002, several class action lawsuits were filed against the company and certain of its
officers and directors in the United States District Court for the District of Minnesota on behalf of purchasers of
the company’s securities between July 11, 1999 and June 26, 2002. The lawsuits have been consolidated into a
single action, in which it is alleged that the company and certain of its officers and directors violated Federal
securities laws by issuing materially false and misleading statements relating to its financial performance. On
April 29, 2004, the District Court for the District of Minnesota granted preliminary approval to a stipulation of
settlement between the company and plaintiffs. A hearing for final approval of the settlement is scheduled for
August 16, 2004. The settlement will have no material impact to the company’s consolidated statement of
earnings or consolidated financial position.
The company is a party to various legal proceedings arising from the normal course of business activities,
none of which, in management’s opinion, is expected to have a material adverse impact on the Company’s
consolidated statement of earnings or consolidated financial position.
The following table represents the company’s significant contractual obligations and off-balance sheet
arrangements at February 28, 2004.
Amount of Commitment Expiration Per Period
Total
Amount
Committed
Fiscal
2005
Fiscal
2006-2007
Fiscal
2008-2009 Thereafter
(in thousands)
Contractual Obligations:
Debt $1,385,297 $273,811 $137,791 $ 16,956 $ 956,739
Capital and Direct Financing
Leases 554,368 32,133 87,680 82,986 351,569
Construction Loan Commitments 44,734 44,734 — — —
Operating Leases 1,032,563 160,589 239,026 229,822 403,126
Purchase Obligations (1) 68,963 37,383 30,204 1,376 —
Total Contractual Obligations $3,085,925 $548,650 $494,701 $331,140 $1,711,434
Off-Balance Sheet Arrangements:
Retailer Loan and Lease
Guarantees $ 290,359 $ 50,087 $ 68,132 $ 46,692 $ 125,448
Purchase Options on Synthetic
Leases 85,000 25,000 — 60,000 —
Total Off-Balance Sheet
Arrangements $ 375,359 $ 75,087 $ 68,132 $106,692 $ 125,448
(1) The company’s purchase obligations include various obligations that have annual purchase commitments of
$1 million or greater. At the end of fiscal 2004, future purchase obligations of $69.0 million existed that
primarily related to technology and advertising. In the ordinary course of business, the company enters into
supply contracts to purchase products for resale. These supply contracts typically include either a volume
commitment or a fixed expiration date; termination provisions; and other standard contractual
considerations. These supply contracts are cancelable and therefore no amounts have been included above.
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