Albertsons 2009 Annual Report Download - page 59

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NOTE 5—PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net, consisted of the following:
2009 2008
Land $ 1,313 $ 1,335
Buildings 3,443 3,269
Property under construction 315 333
Leasehold improvements 1,613 1,383
Equipment 4,201 3,777
Capitalized leases 1,030 1,015
Total property plant and equipment 11,915 11,112
Accumulated depreciation (4,091) (3,347)
Accumulated amortization on capital leases (296) (232)
Total property, plant and equipment, net $ 7,528 $ 7,533
Depreciation expense was $945, $911 and $793 for fiscal 2009, 2008 and 2007, respectively. Amortization
expense related to capital leased assets was $67, $64 and $54 for fiscal 2009, 2008 and 2007, respectively.
NOTE 6—FAIR VALUES OF FINANCIAL INSTRUMENTS
For certain of the Company’s financial instruments, including cash and cash equivalents, receivables and
accounts payable, the fair values approximate book values due to their short maturities.
The estimated fair value of notes receivable was less than the book value by approximately $8 as of
February 28, 2009. The estimated fair value of notes receivable approximated the book value as of February 23,
2008. Notes receivable are valued based on a discounted cash flow approach applying a rate that is comparable
to publicly traded instruments of similar credit quality.
The estimated fair value of the Company’s long-term debt (including current maturities) was less than the
book value by approximately $452 and $42 as of February 28, 2009 and February 23, 2008, respectively. The
estimated fair value was based on market quotes, where available, or market values for similar instruments.
NOTE 7—LONG-TERM DEBT
The Company’s long-term debt and capital lease obligations consisted of the following:
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