Safeway 2009 Annual Report Download - page 67

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note C: Store Lease Exit Costs and Impairment Charges
Impairment Write-Downs Safeway recognized impairment charges on the write-down of long-lived assets of $73.7
million in 2009, $40.3 million in 2008 and $27.1 million in 2007. These charges are included as a component of
operating and administrative expense.
Store Lease Exit Costs The reserve for store lease exit costs includes the following activity for 2009, 2008 and 2007 (in
millions):
2009 2008 2007
Beginning balance $ 100.1 $ 128.2 $ 126.7
Provision for estimated net future cash flows of additional closed stores (1) 1.1 3.5 31.5
Net cash flows, interest accretion, changes in estimates of net future cash flows (13.6) (31.6) (30.0)
Ending balance $ 87.6 $ 100.1 $ 128.2
(1) Estimated net future cash flows represents future minimum lease payments and related ancillary costs from the date of closure to
the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting properties or through
favorable lease terminations.
Store lease exit costs are included as a component of operating and administrative expense, and the liability is included in
accrued claims and other liabilities.
Note D: Financing
Notes and debentures were composed of the following at year end (in millions):
2009 2008
Commercial paper $ 50.0 $ 362.1
Bank credit agreement, unsecured ––
Other bank borrowings, unsecured 2.1 3.2
Mortgage notes payable, secured 14.9 17.0
Floating Rate Notes due March 2009, unsecured (interest at 1.82% as of January 3, 2009) –250.0
7.50% Senior Notes due September 2009, unsecured –500.0
4.95% Senior Notes due 2010, unsecured 500.0 500.0
6.50% Senior Notes due 2011, unsecured 500.0 500.0
5.80% Senior Notes due 2012, unsecured 800.0 800.0
6.25% Senior Notes due 2014, unsecured 500.0 500.0
5.625% Senior Notes due 2014, unsecured 250.0 250.0
6.35% Senior Notes due 2017, unsecured 500.0 500.0
5.00% Senior Notes due 2019, unsecured 500.0 –
7.45% Senior Debentures due 2027, unsecured 150.0 150.0
7.25% Senior Debentures due 2031, unsecured 600.0 600.0
Other notes payable, unsecured 22.1 7.7
Interest rate swap fair value adjustment (6.6) –
Unamortized deferred gain on swap termination 1.0 2.6
4,383.5 4,942.6
Less current maturities (509.2) (758.4)
Long-term portion $ 3,874.3 $ 4,184.2
49