Albertsons 2006 Annual Report Download - page 73

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Direct financing leases:
Under direct financing capital leases, the company leases buildings to independent retailers with terms
ranging from 5 to 20 years. Future minimum rentals to be received under direct financing leases and related
future minimum obligations under capital leases in effect at February 25, 2006, are as follows:
Direct
Financing
Lease
Receivables
Direct
Financing
Capital Lease
Obligations
(In thousands)
Fiscal Year
2007 $11,273 $10,630
2008 10,244 9,628
2009 9,487 8,931
2010 8,601 8,111
2011 6,959 6,576
Later 17,050 28,688
Total minimum lease payments 63,614 72,564
Less unearned income 22,572 —
Less interest — 19,821
Present value of net minimum lease payments 41,042 52,743
Less current portion 6,922 6,976
Long-term portion $34,120 $45,767
INCOME TAXES
The provision for income taxes consists of the following:
2006 2005 2004
(In thousands)
Current
Federal $147,720 $151,003 $110,031
State 22,186 19,227 14,495
Tax credits (1,798) (1,644) (1,500)
Total current 168,108 168,586 123,026
Deferred (45,129) 46,455 51,716
Total provision $122,979 $215,041 $174,742
The difference between the actual tax provision and the tax provision computed by applying the statutory
federal income tax rate to earnings before income taxes is attributable to the following:
2006 2005 2004
(In thousands)
Federal taxes based on statutory rate $115,202 $210,302 $159,208
State income taxes, net of federal benefit 10,556 15,800 13,394
Audit settlements — (6,700) (2,214)
Other (2,779) (4,361) 4,354
Total provision $122,979 $215,041 $174,742
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