Albertsons 2013 Annual Report Download - page 74

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In November 2011, the Company amended and extended its accounts receivable securitization program until
November 2014. The Company had the ability to borrow up to $200 on a revolving basis, with borrowings
secured by eligible accounts receivable, which remained under the Company’s control. As of February 23, 2013,
there was $40 of outstanding borrowings under this facility at 1.98 percent. Facility fees on the unused portion
are 0.70 percent. As of February 23, 2013, there was $282 of accounts receivable pledged as collateral, classified
in Receivables in the Consolidated Balance Sheet. As discussed below, this facility was repaid and terminated on
March 21, 2013 in connection with the NAI Banner Sale.
In 2006, the Company issued $500 of senior unsecured notes bearing an interest rate of 7.50% due in 2014. In
2009, the Company issued $1,000 of senior unsecured notes bearing an interest rate of 8.00% due in 2016. These
senior unsecured notes contain operating covenants, including limitations on liens and on sale and leaseback
transactions. The Company was in compliance with all such covenants and provisions for all periods presented.
As of February 23, 2013 and February 25, 2012, the Company had $18 and $28, 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.
Refer to Note 16—Subsequent Events in the accompanying Notes to the Consolidated Financial Statements for
information related to the Company’s debt refinancing transactions, which occurred subsequent to fiscal 2013
and were related to the sale of New Albertsons.
NOTE 7—LEASES
The Company leases certain retail stores, distribution centers, office facilities and equipment from third parties.
Many of these leases include renewal options and, to a limited extent, include options to purchase. Future
minimum lease payments to be made by the Company for noncancellable operating leases and capital leases as of
February 23, 2013, consist of the following:
Lease Obligations
Fiscal Year
Operating
Leases
Capital
Leases
2014 $ 114 $ 56
2015 113 52
2016 97 49
2017 80 44
2018 60 42
Thereafter 174 208
Total future minimum obligations $ 638 451
Less interest (121)
Present value of net future minimum obligations 330
Less current obligations (55)
Long-term obligations $ 275
Total future minimum obligations have not been reduced for future minimum subtenant rentals of $49 under
certain operating subleases.
72