Safeway 2012 Annual Report Download - page 65

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
53
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):
2012 2011
Commercial paper $—$—
Bank credit agreement, unsecured —39.5
Term credit agreement, unsecured 700.0 —
Other bank borrowings, unsecured 2.8 1.6
Mortgage notes payable, secured 48.3 10.1
5.80% Senior Notes due 2012, unsecured —800.0
Floating Rate Senior Notes due 2013, unsecured 250.0 —
3.00% Second Series Notes due 2014, unsecured 302.2 296.9
6.25% Senior Notes due 2014, unsecured 500.0 500.0
5.625% Senior Notes due 2014, unsecured 250.0 250.0
3.40% Senior Notes due 2016, unsecured 400.0 400.0
6.35% Senior Notes due 2017, unsecured 500.0 500.0
5.00% Senior Notes due 2019, unsecured 500.0 500.0
3.95% Senior Notes due 2020, unsecured 500.0 500.0
4.75% Senior Notes due 2021, unsecured 400.0 400.0
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 22.6 23.8
Interest rate swap fair value adjustment —4.4
5,125.9 4,976.3
Less current maturities (294.0) (811.3)
Long-term portion $ 4,831.9 $ 4,165.0
Commercial Paper The amount of commercial paper borrowings is limited to the unused borrowing
capacity under the bank credit agreement, described in the following paragraph. Commercial paper is
classified as long term because the Company intends to and has the ability to refinance these borrowings
on a long-term basis through either continued commercial paper borrowings or utilization of the bank credit
agreement, which matures in 2015. During 2012, the average commercial paper borrowing was $681.7
million and had a weighted-average interest rate of 0.86%. During 2011, the average commercial paper
borrowing was $395.8 million which had a weighted-average interest rate of 0.39%.
Bank Credit Agreement The Company has a $1,500.0 million credit agreement with a syndicate of banks
which has a termination date of June 1, 2015 and provides for two additional one-year extensions of the
termination date. The credit agreement provides (i) to Safeway a $1,250.0 million revolving credit facility
(the “Domestic Facility”), (ii) to Safeway and Canada Safeway Limited a Canadian facility of up to $250.0
million for U.S. Dollar and Canadian Dollar advances and (iii) to Safeway a $400.0 million sub-facility of the
Domestic Facility for issuance of standby and commercial letters of credit. The credit agreement also provides
for an increase in the credit facility commitments up to an additional $500.0 million, at the option of the