Albertsons 2013 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2013 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Cash Flow Information
Operating Activities
Net cash provided by operating activities from continuing operations was $417, $328 and $293 in fiscal 2013,
2012 and 2011, respectively.
The increase in net cash provided by operating activities from continuing operations in fiscal 2013 compared to
fiscal 2012 is primarily attributable to an increase in cash provided from changes in operating assets and
liabilities of $111.
The increase in net cash provided by operating activities in fiscal 2012 compared to fiscal 2011 is primarily
attributable to lower Contributions to pension and postretirement benefit plans of $71, primarily due to the
prefunding of $63 of fiscal 2012 contributions during fiscal 2011, and an increase in cash provided by deferred
income taxes of $17, offset in part by a decrease in changes in operating assets and liabilities of $54.
Investing Activities
Net cash used in investing activities from continuing operations was $189, $370 and $315 in fiscal 2013, 2012
and 2011, respectively. The decrease in cash used in investing activities in fiscal 2013 compared to fiscal 2012 is
primarily attributable to $152 less cash used in the purchases of Property, plant and equipment in fiscal 2013.
The increase in net cash used in investing activities in fiscal 2012 compared to fiscal 2011 is due primarily to $79
in additional purchases of Property, plant and equipment, offset in part by $13 of additional proceeds from the
sale of assets.
Financing Activities
Net cash used in financing activities from continuing operations was $496, $493 and $78 in fiscal 2013, 2012 and
2011, respectively. The increase in cash used in financing activities in fiscal 2013 compared to fiscal 2012 is
primarily attributable to $58 of additional cash payments for debt financing costs, primarily offset by a decrease
in cash used for the payment of dividends to stockholders of $37. The increase in cash used in financing activities
in fiscal 2012 compared to fiscal 2011 is primarily attributable to higher net debt and capital lease payments of
$434, primarily due to $545 in additional cash used in the payment of net debt and capital lease obligations in
fiscal 2012.
Annual cash dividends declared for fiscal 2013, 2012 and 2011, were $.0875, $0.3500 and $0.3500 per share,
respectively. In July 2012, the Company announced that it had suspended the payment of the regular quarterly
dividend.
The Company and AB Acquisition LLC entered into a binding term sheet with the Pension Benefit Guaranty
Corporation (the “PBGC”) relating to issues regarding the effect of the NAI Banner Sale on certain
SUPERVALU retirement plans. The agreement requires that the Company will not pay any dividends to its
stockholders at any time for the period beginning on January 9, 2013 and ending on the earliest of (i) March 21,
2018, (ii) the date on which the total of all contributions made to the SUPERVALU Retirement Plan that were
made to the SUPERVALU Retirement Plan on or after the closing date of the NAI Banner Sale is at least $450
and (iii) the date on which SUPERVALU’s unsecured credit rating is BB+ from Standard & Poor’s or Ba1 from
Moody’s (such earliest date, the end of the “PBGC Protection Period”). SUPERVALU has also agreed to make
certain contributions to the SUPERVALU Retirement Plan in excess of the minimum required contributions at or
before the ends of fiscal years 2015—2017 (where such fiscal years end during the PBGC Protection Period), and
AB Acquisition has agreed to provide a guarantee to the PBGC for such excess payments.
41