Safeway 2007 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2007 Safeway 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 101

  • 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

SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Annual Debt Maturities As of year-end 2007, annual debt maturities were as follows (in millions):
2008 $ 954.9
2009 752.5
2010 505.5
2011 502.1
2012 825.6
Thereafter 1,507.8
$ 5,048.4
Letters of Credit The Company had letters of credit of $58.9 million outstanding at year-end 2007, of which $37.1
million were issued under the Credit Agreement. The letters of credit are maintained primarily to support performance,
payment, deposit or surety obligations of the Company. The Company pays commissions ranging from 0.15% to 1.00%
on the face amount of the letters of credit.
Note E: Lease Obligations
Approximately 59% of the premises that the Company occupies are leased. The Company had approximately 1,570
leases at year-end 2007, including approximately 210 that are capitalized for financial reporting purposes. Most leases
have renewal options, typically with increased rental rates during the option period. Certain of these leases contain
options to purchase the property at amounts that approximate fair market value.
As of year-end 2007, future minimum rental payments applicable to non-cancelable capital and operating leases with
remaining terms in excess of one year were as follows (in millions):
Capital
leases
Operating
leases
2008 $ 102.2 $ 451.8
2009 97.4 410.4
2010 87.9 380.8
2011 79.5 346.3
2012 75.1 317.8
Thereafter 707.2 3,089.1
Total minimum lease payments 1,149.3 $ 4,996.2
Less amounts representing interest (542.6)
Present value of net minimum lease payments 606.7
Less current obligations (42.5)
Long-term obligations $ 564.2
Future minimum lease payments under non-cancelable capital and operating lease agreements have not been reduced by
minimum sublease rental income of $142.5 million.
Amortization expense for property under capital leases was $41.7 million in 2007, $42.7 million in 2006 and $43.0
million in 2005. Accumulated amortization of property under capital leases was $320.2 million at year-end 2007 and
$291.4 million at year-end 2006.
50