Albertsons 2005 Annual Report Download - page 70

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
LEASES
Capital and operating leases:
The company leases certain retail food stores, food distribution warehouses and office facilities. Many of
these leases include renewal options, and to a limited extent, include options to purchase. Amortization of assets
under capital leases was $34.5 million, $35.1 million and $32.8 million in fiscal 2005, 2004 and 2003,
respectively. Accumulated amortization of assets under capital leases was $144.9 million and $152.8 million as
of February 26, 2005 and February 28, 2004, respectively.
Future minimum obligations under capital leases in effect at February 26, 2005 are as follows:
Lease
Obligations
(In thousands)
Fiscal Year
2006 $ 65,538
2007 65,679
2008 65,122
2009 62,517
2010 60,617
Later 527,737
Total future minimum obligations 847,210
Less interest 343,748
Present value of net future minimum obligations 503,462
Less current obligations 28,210
Long-term obligations $475,252
The present values of future minimum obligations shown are calculated based on interest rates determined
at the inception of the lease ranging from approximately 6 percent to 14 percent, with a weighted average rate of
8.1 percent.
In addition to its capital leases, the company is obligated under operating leases, primarily for buildings,
warehouses and transportation and computer equipment. Future minimum obligations under operating leases in
effect at February 26, 2005 are as follows:
Operating
Lease
Obligations
(In thousands)
Fiscal Year
2006 $ 155,429
2007 144,786
2008 122,853
2009 157,780
2010 80,383
Later 358,604
Total future minimum obligations $1,019,835
F-24