Albertsons 2006 Annual Report Download - page 71

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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 $31.7 million, $34.5 million and $35.1 million in fiscal 2006, 2005 and 2004,
respectively. Accumulated amortization of assets under capital leases was $133.6 million and $144.9 million as
of February 25, 2006 and February 26, 2005, respectively.
Future minimum obligations under capital leases in effect at February 25, 2006 are as follows:
Lease
Obligations
(In thousands)
Fiscal Year
2007 $ 67,741
2008 67,240
2009 64,751
2010 62,658
2011 60,940
Later 464,767
Total future minimum obligations 788,097
Less interest 372,258
Present value of net future minimum obligations 415,839
Less current obligations 30,095
Long-term obligations $385,744
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
7.8 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 25, 2006 are as follows:
Operating
Lease
Obligations
(In thousands)
Fiscal Year
2007 $154,849
2008 134,069
2009 167,683
2010 86,971
2011 72,155
Later 314,086
Total future minimum obligations $929,813
F-26