Albertsons 2012 Annual Report Download - page 39

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All obligations under the senior secured credit facilities are guaranteed by each material subsidiary of the
Company. The obligations are also secured by a pledge of the equity interests in those same material subsidiaries,
limited as required by the existing public indentures of the Company, such that the respective debt issued need
not be equally and ratably secured.
In November 2011, the Company amended and extended its accounts receivable securitization program until
November 2014. The Company can borrow up to $200 on a revolving basis, with borrowings secured by eligible
accounts receivable, which remain under the Company’s control. As of February 25, 2012, there was $55 of
outstanding borrowings under this facility at 1.10 percent. Facility fees on the unused portion are 0.50 percent.
As of February 25, 2012, there was $282 of accounts receivable pledged as collateral, classified in Receivables in
the Consolidated Balance Sheet.
As of February 25, 2012 and February 26, 2011, the Company had $28 and $30, respectively, of debt with
current maturities that are classified as long-term debt due to the Company’s intent to refinance such obligations
with the Revolving Credit Facility or other long-term debt.
Annual cash dividends declared for fiscal 2012, 2011 and 2010, were $0.3500, $0.3500 and $0.6100 per share,
respectively.
Capital spending for fiscal 2012 was $700, including $39 of capital leases. Capital spending primarily included
store remodeling activity, new retail stores and technology expenditures. The Company’s capital spending for
fiscal 2013 is projected to be approximately $675, including capital leases.
Cash contributions to defined benefit pension plans and other postretirement benefit plans were $93, $169 and
$132 in fiscal 2012, 2011 and 2010, respectively, in accordance with minimum Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) requirements. Cash contributions decreased in fiscal 2012
compared to fiscal 2011 due to pre-funding of $63 in fiscal 2011 for fiscal 2012 contributions.
The Company’s funding policy for the defined benefit pension plans is to contribute the minimum contribution
amount required under ERISA and the Pension Protection Act of 2006 as determined by the Company’s external
actuarial consultant. At the Company’s discretion, additional funds may be contributed to the pension plan. The
Company may accelerate contributions or undertake contributions in excess of the minimum requirements from
time to time subject to the availability of cash in excess of operating and financing needs. The Company assesses
the relative attractiveness of the use of cash including, expected return on assets, discount rates, cost of debt,
reducing or eliminating required Pension Benefit Guaranty Corporation variable rate premiums or in order to
achieve exemption from participant notices of underfunding.
Fiscal 2013 total defined benefit pension plans and other postretirement benefit plan contributions are estimated
to be approximately $175.
Fiscal 2013 total debt reduction is estimated to be approximately $400 to $450.
OFF-BALANCE SHEET ARRANGEMENTS
Guarantees
The Company has guaranteed certain leases, fixture financing loans and other debt obligations of various retailers
as of February 25, 2012. These guarantees were generally made to support the business growth of independent
retail customers. The guarantees are generally for the entire terms of the leases or other debt obligations with
remaining terms that range from less than one year to 18 years, with a weighted average remaining term of
approximately eight years. For each guarantee issued, if the independent retail customer defaults on a payment,
35