Albertsons 2004 Annual Report Download - page 70

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The estimated fair value of notes receivable approximates the net carrying value at February 28, 2004 and
February 22, 2003. Notes receivable are valued based on a discounted cash flow approach applying a rate that is
comparable to publicly traded debt instruments of similar credit quality.
The estimated fair value of the company’s long-term debt (including current maturities) was in excess of the
carrying value by approximately $149.5 million and $86.1 million at February 28, 2004 and February 22, 2003,
respectively. The estimated fair value was based on market quotes, where available, or market values for similar
instruments.
The estimated fair value of the company’s interest rate swaps approximates the carrying value at February
28, 2004. The fair value of interest rate swaps are the amounts at which they could be settled and are estimated
by obtaining quotes from brokers.
DEBT
Notes, debentures and other debt were composed of the following at year-end:
February 28,
2004
February 22,
2003
(In thousands)
7.875% promissory note due fiscal 2010 $ 350,000 $ 350,000
7.5% promissory note due fiscal 2013 300,000 300,000
7.625% promissory note due fiscal 2005 250,000 250,000
8.875% promissory note due fiscal 2023 — 100,000
Zero-coupon convertible debentures 236,619 226,152
6.48%-6.69% medium-term notes due fiscal 2006-2007 103,500 103,500
Variable rate industrial revenue bonds 59,530 70,530
8.28%-9.96% promissory notes due fiscal 2010-2011 20,362 26,675
7.78%, 8.02% and 8.57% obligations with quarterly payments of principal
and interest due fiscal 2005 through 2007 33,381 47,134
Other debt 31,905 32,062
1,385,297 1,506,053
Less current maturities 273,811 31,124
Long-term debt $1,111,486 $1,474,929
Aggregate maturities of long-term debt are:
(In thousands)
2005 $273,811
2006 63,738
2007 74,053
2008 5,521
2009 and thereafter 968,174
The debt agreements contain various financial covenants including ratios for fixed charge interest coverage,
asset coverage and debt leverage, in addition to a minimum net worth covenant as defined in the company’s debt
agreements. The company has met the financial covenants under the debt agreements as of February 28, 2004.
F-23