Albertsons 2016 Annual Report Download - page 27

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25
Total Wholesale distribution center square footage as of February 27, 2016 was approximately 13 million, of which 17 percent
was leased or owned by NAI and operated by the Company, comprised of 7 million used to provide wholesale distribution to
independent retail customers, of which 8 percent was leased, and 5 million used to provide wholesale distribution to
independent retail customers and Company-operated retail stores in the Retail segment, of which 30 percent was leased or
owned by NAI and operated by the Company. The percentages referring to property being leased or owned by NAI and
operated by the Company refer to a facility in Pennsylvania that is owned by NAI and that the Company operates under an
operating agreement that has an initial term of five years, subject to renewal at the Company's option for two additional five-
year terms and certain termination rights for both the Company and NAI. The Company has exercised its first extension option,
subject to such termination rights.
Total Save-A-Lot corporate-owned store square footage as of February 27, 2016 was approximately 8 million, of which 92
percent was leased. The Company’s Save-A-Lot operations are supplied by dedicated distribution centers with total square
footage of 5 million, of which approximately 28 percent was leased, as of February 27, 2016. Total Retail store square footage
was 11 million, of which approximately 83 percent was leased, and dedicated distribution center square footage was
approximately one million related to an owned facility that provides wholesale distribution to a Retail banner, as of
February 27, 2016.
In addition to its principal executive offices in Eden Prairie, Minnesota, the Company maintains store support centers in Boise,
Idaho (which is owned by NAI and leased to the Company, but at which the Company has employees and provides services to
NAI and Albertson’s LLC) and St. Louis, Missouri.
The Company has 3 million of square footage of surplus retail stores and distribution centers, 95 percent of which was leased,
including square footage that is vacant or sub-leased, as of February 27, 2016.
ITEM 3. LEGAL PROCEEDINGS
The Company is subject to various lawsuits, claims and other legal matters that arise in the ordinary course of conducting
business. In the opinion of management, based upon currently available facts, the likelihood that the ultimate outcome of any
lawsuits, claims and other proceedings will have a material adverse effect on the overall results of the Company’s operations,
its cash flows or its financial position is remote. See Note 14—Commitments, Contingencies and Off-Balance Sheet
Arrangements in Part II, Item 8 of this Annual Report on Form 10-K under the caption “Legal Proceedings” for a discussion of
certain of the Company’s legal proceedings.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.