Safeway 2008 Annual Report Download - page 55

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SAFEWAY INC. AND SUBSIDIARIES
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Safeway manages interest rate risk through the use of fixed- and variable-interest rate debt and, from time to time,
interest rate swaps. As of year-end 2008, the Company had no outstanding interest rate swap agreements.
The Company does not utilize financial instruments for trading or other speculative purposes, nor does it utilize leveraged
financial instruments. The Company does not consider the potential declines in future earnings, fair values and cash flows
from reasonably possible near-term changes in interest rates and exchange rates to be material.
The table below presents principal amounts and related weighted-average rates by year of maturity for the Company’s
debt obligations at year-end 2008 (dollars in millions):
2009 2010 2011 2012 2013 Thereafter Total Fair value
Long-term debt: (1)
Principal $ 758.4 $ 505.7 $ 502.4 $ 1,163.0 $ 0.8 $ 2,012.3 $ 4,942.6 $ 5,090.3
Weighted average
interest rate 5.24% 4.98% 6.51% 5.62% 7.42% 6.59% 6.03%
(1) Primarily fixed-rate debt
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