Safeway 2009 Annual Report Download - page 50

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SAFEWAY INC. AND SUBSIDIARIES
Contractual Obligations The table below presents significant contractual obligations of the Company at year-end
2009 (in millions) (1):
2010 2011 2012 2013 2014 Thereafter Total
Long-term debt (2) $ 508.2 $ 502.8 $ 851.3 $ 1.4 $ 751.5 $ 1,773.9 $ 4,389.1
Estimated interest on long-term
debt 261.4 220.1 203.7 157.2 141.6 1,079.2 2,063.2
Capital lease obligations (2),(3) 31.6 31.3 32.1 32.7 33.0 357.5 518.2
Interest on capital leases 50.5 47.1 43.9 40.5 37.6 211.4 431.0
Self-insurance liability 131.7 92.3 61.6 40.0 26.4 101.8 453.8
Interest on self-insurance liability 1.8 3.8 4.3 4.0 3.4 36.8 54.1
Operating leases (3) 467.9 432.2 400.0 363.4 331.6 2,226.5 4,221.6
Marketing development funds 21.8 12.2 13.1 15.7 11.3 18.8 92.9
Contracts for purchase of
property, equipment and
construction of buildings 160.5 – – – – – 160.5
Contracts for purchase of
inventory 49.5 7.2 8.5 6.9 6.3 – 78.4
Fixed-price energy contracts (4) 108.3 35.4 35.4 0.5 0.5 5.6 185.7
Total $ 1,793.2 $ 1,384.4 $ 1,653.9 $ 662.3 $ 1,343.2 $ 5,811.5 $ 12,648.5
(1) Excludes funding of pension benefit obligations which were $16.7 million and postretirement benefit obligations which were $7.8
million in 2009. Also excludes contributions under various multi-employer pension plans, which totaled $278.1 million in 2009.
Additionally, the amount of unrecognized tax benefits ($151.0 million at January 2, 2010) has been excluded from the contractual
obligations table because a reasonably reliable estimate of the timing of future tax settlements cannot be determined.
(2) Required principal payments only.
(3) Excludes common area maintenance, insurance or tax payments for which the Company is also obligated. In fiscal 2009, these
charges totaled approximately $214.0 million.
(4) See Part II, Item 7A to this report under the caption “Commodity Price Risk.”
Off-Balance Sheet Arrangements
Guarantees The Company is party to a variety of contractual agreements under which it may be obligated to indemnify
the other party for certain matters. These contracts primarily relate to the Company’s commercial contracts, operating
leases and other real estate contracts, trademarks, intellectual property, financial agreements and various other
agreements. Under these agreements, the Company may provide certain routine indemnifications relating to
representations and warranties (for example, ownership of assets, environmental or tax indemnifications) or personal
injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. Historically,
Safeway has not made significant payments for these indemnifications. The Company believes that if it were to incur a
loss in any of these matters, the loss would not have a material effect on the Company’s financial statements.
Letters of Credit The Company had letters of credit of $54.3 million outstanding at year-end 2009. 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.
New Accounting Pronouncements Not Yet Adopted
See Part II, Item 8, Note A to this report for new accounting pronouncements which have not yet been adopted by the
Company.
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