Albertsons 2006 Annual Report Download - page 67

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
NOTES RECEIVABLE
Notes receivable arise from financing activities with independent retail food customers. Loans to retailers,
as well as trade accounts receivable, are primarily collateralized by the retailers’ inventory, equipment and
fixtures. The notes range in length from one to seventeen years with an average term of six years, and may be
non-interest bearing or bear interest at rates ranging from approximately 4.5 to 10.7 percent.
Notes receivable, net due within one year of $18.0 million and $13.8 million at February 25, 2006 and
February 26, 2005, respectively, are included in current receivables, net in the Consolidated Balance Sheets.
GOODWILL AND OTHER ACQUIRED INTANGIBLE ASSETS
On February 7, 2005, the company acquired Total Logistics, a national provider of third party logistics
services for approximately $234 million comprised of $164 million of cash and $70 million of assumed debt. The
purchase price allocation resulted in approximately $14.7 million of intangible assets related to trademarks,
tradenames and customer relationships and approximately $116.6 million of goodwill.
At February 25, 2006 and at February 26, 2005, the company had approximately $0.8 billion of goodwill
related to retail food and $0.8 billion related to supply chain services.
A summary of changes in the company’s goodwill and other acquired intangible assets during fiscal 2006
and fiscal 2005 follows:
February 28,
2004
Amorti-
zation Additions
Other net
adjustments
February 26,
2005
Amorti-
zation Additions
Other net
adjustments
February 25,
2006
(in thousands)
Goodwill $1,557,057 $116,606 $(45,816) $1,627,847 $6,454 $(20,698) $1,613,603
Other acquired intangible
assets:
Trademarks and
tradenames 15,269 8,042 (1,057) 22,254 236 — 22,490
Leasehold Rights,
Customer lists and other
(accumulated
amortization of $23,704
and $20,573, at
February 25, 2006 and
February 26, 2005,
respectively) 49,369 510 (594) 49,285 589 (97) 49,777
Customer relationships
(accumulated
amortization of $5,220
and $2,492 at
February 25, 2006 and
February 26, 2005,
respectively) 43,361 6,700 (2,992) 47,069 564 — 47,633
Non-compete agreements
(accumulated
amortization of $5,105
and $4,329 at
February 25, 2006 and
February 26, 2005) 7,219 1,625 (550) 8,294 — — 8,294
Total other acquired intangible
assets 115,218 16,877 (5,193) 126,902 1,389 (97) 128,194
Accumulated amortization (22,290) $(6,166) — 1,062 (27,394) $(6,702) — 67 (34,029)
Total goodwill and other
acquired intangible assets, net $1,649,985 $(6,166) $133,483 $(49,947) $1,727,355 $(6,702) $7,843 $(20,728) $1,707,768
F-22