Albertsons 2004 Annual Report Download - page 83

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The expected long-term rate of return for Plan assets was determined based on the projection of asset class
return expectations applied to the target asset allocation of the Plan assets. Consideration was given to widely-
accepted capital market principles, long-term return analysis for global fixed income and equity markets, the
active total return oriented portfolio management style as well as the diversification needs and rebalancing
characteristics of the Plan. Long-term trends were evaluated relative to market factors such as inflation, interest
rates and fiscal and monetary polices in order to assess the capital market assumptions.
The company expects to contribute approximately $25 million to its defined benefit pension plans during
fiscal 2005.
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.
SUBSEQUENT EVENTS
On April 1, 2004, the company completed the sale of its minority ownership interest in WinCo Foods, Inc.,
a privately-held regional grocery chain that operates stores in Idaho, Oregon, Nevada, Washington and
California. The company received after-tax proceeds of approximately $150 million on the sale.
On May 3, 2004, the company utilized the proceeds from the sale of its minority interest in WinCo and
additional available cash balances to voluntarily redeem $250 million of 7
5
⁄
8
percent Notes due September 15,
2004, in accordance with the Note redemption provisions.
SEGMENT INFORMATION
Refer to page F-5 for the company’s segment information.
F-36