Albertsons 2014 Annual Report Download - page 84

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Financial Instruments
For certain of the Company’s financial instruments, including cash and cash equivalents, receivables, accounts
payable, accrued salaries and other current assets and liabilities, the fair values approximate carrying values due
to their short maturities.
The estimated fair value of notes receivable was greater than the carrying value by $2 as of February 22, 2014
and February 23, 2013. The estimated fair value of notes receivable was calculated using a discounted cash flow
approach applying a market rate for similar instruments using Level 3 inputs.
The estimated fair value of the Company’s long-term debt (including current maturities) was greater than the
book value by approximately $83 and $57 as of February 22, 2014 and February 23, 2013, respectively. The
estimated fair value was based on market quotes, where available, or market values for similar instruments, using
Level 2 and 3 inputs.
NOTE 6—LONG-TERM DEBT
The Company’s long-term debt consisted of the following:
February 22,
2014
February 23,
2013
4.50% Secured Term Loan Facility due March 2019 $ 1,474 $ —
8.00% Senior Notes due May 2016 628 1,000
6.75% Senior Notes due June 2021 400 —
2.17% to 4.25% Revolving ABL Credit Facility due March 2018 — —
8.00% Secured Term Loan Facility due August 2018 — 834
7.50% Senior Notes due November 2014 — 490
2.21% to 4.25% Revolving ABL Credit Facility due August 2017 — 207
Accounts Receivable Securitization Facility — 40
Other 18 28
Net discount on debt, using effective interest rates of 4.63% to 8.58% (16) (40)
Total debt 2,504 2,559
Less current maturities of long-term debt (18) (19)
Long-term debt $ 2,486 $ 2,540
Future maturities of long-term debt, excluding the net discount on debt, as of February 22, 2014 consist of the
following:
Fiscal Year
2015 $18
2016 15
2017 643
2018 15
2019 15
Thereafter 1,814
82