Albertsons 2005 Annual Report Download - page 68

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Fair Value Disclosures of Financial Instruments
For certain of the company’s financial instruments, including cash and cash equivalents, receivables and
notes payable, the carrying amounts approximate fair value due to their short maturities.
The estimated fair value of notes receivable was in excess of the carrying value by approximately $1.2
million at February 26, 2005. 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 $116.6 million at February 26, 2005. 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 is the carrying value at February 26, 2005.
The fair value of interest rate swaps is the amount at which they could be settled and is estimated by obtaining
quotes from brokers.
DEBT
Notes, debentures and other debt were composed of the following at year-end:
February 26,
2005
February 28,
2004
(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
Zero-coupon convertible debentures 247,325 236,619
6.49%-6.69% medium-term notes due fiscal 2006-2007 103,500 103,500
Variable rate industrial revenue bonds 59,530 59,530
8.28%-9.96% promissory notes due fiscal 2006-2010 15,252 20,362
7.78%, 8.02% and 8.57% obligations with quarterly payments of principal
and interest due fiscal 2006 through 2007 18,495 33,381
Other debt 22,106 31,905
1,116,208 1,385,297
Less current maturities 64,320 273,811
Long-term debt $1,051,888 $1,111,486
Aggregate maturities of long-term debt are:
(In thousands)
2006 $ 64,320
2007 74,644
2008 6,121
2009 12,045
2010 and thereafter 959,078
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 26, 2005.
F-22