Exhibit 99.1
Distribution and Retailing
[LOGO OF SUPERVALU]
PO Box 990
Minneapolis, MN 55440
952 828 4000
News Release
FOR IMMEDIATE RELEASE
INVESTORS: Yolanda Scharton
952 828 4540
yolanda.scharton@supervalu.com
------------------------------
MEDIA: Lynne High
952 996 7144
lynne.high@supervalu.com
------------------------
SUPERVALU REPORTS FOURTH QUARTER RESULTS FOR FISCAL 2003
MINNEAPOLIS, MN - April 10, 2003 - SUPERVALU INC. (NYSE: SVU) today reported
results for the fourth quarter of fiscal 2003, which ended February 22, 2003.
The company reported net sales of $4.6 billion compared to $4.5 billion last
year, net earnings of $63.9 million compared to $32.8 million last year, and
diluted earnings per share of $0.48 compared to $0.24 last year.
Jeff Noddle, SUPERVALU chairman and chief executive officer said,
"Unquestionably, the economy continued to weaken during the year and dealt us a
difficult hand. While we did not reach our original goal for the quarter, we
stayed true to our long-term strategies and maintained financial flexibility. By
reducing planned capital spending and managing working capital requirements, we
significantly improved our debt to capital ratio by more than 200 basis points
for the year."
Included in fiscal 2003 net earnings are restructure and other charges of $1.8
million. Included in fiscal 2002 net earnings are restructure and other charges
of $27.7 million, other items of $7.5 million and goodwill amortization of $11.6
million.
Noddle stated, "We also made important progress on key initiatives this year.
Same store sales were flat in the fourth quarter on top of last year's positive
performance. During the year we added
157 net retail stores reflecting both organic expansion and the acquisition of
Deals. In distribution, we formally launched our new logistics business platform
and continued to implement cost savings programs and new technologies. Marking
significant progress, in less than one year since launching our general
merchandise strategy at Save-A-Lot, we developed new combination store
prototypes, introduced 200 popular general merchandise items across our 1,150
store network, converted or opened 35 full combination stores, and continued the
expansion of Save-A-Lot's distribution network to support our expanding store
base."
For the full year, the company reported fiscal 2003 net sales of $19.2 billion
compared to $20.3 billion last year, net earnings of $257.0 million compared to
$198.3 million, and diluted earnings per share of $1.91 compared to $1.48 last
year.
Outlook
SUPERVALU's full year earnings per share outlook for the fiscal year ending
February 28, 2004, is $2.00 to $2.15. Fiscal 2004 is a 53-week year. Fiscal 2004
total capital spending is estimated to be in the range of $425 to $450 million,
including approximately $60 million in capitalized leases. SUPERVALU's store
activity plans for fiscal 2004 include approximately 75 to 100 new Save-A-Lot
combination stores, eight to 12 new regional banner stores and store remodels,
including the conversion of the Baltimore-based Metro grocery store network to
the Shopper's Food Warehouse banner. Same store sales growth, reflecting a
slowly recovering economy and planned in-market store expansion, is projected to
be flat for the year. The outlook also assumes no meaningful inflation during
the year in our market basket of goods. Distribution top line sales will
continue to be impacted by the weak economy and ongoing attrition in the range
of 2 to 4 percent.
Commenting on the company's outlook, Noddle said, "We will continue to execute
our business plans that include expansion of our key retail markets, continued
growth of Save-A-Lot and the establishment of a low-cost and efficient logistics
business platform. The growing mix of our retail business enhanced by our strong
distribution infrastructure will continue to define our future success."
Segment Results
Retail Food Segment - Fourth quarter retail net sales were $2.5 billion, an
increase of 6.0 percent compared to last year, primarily reflecting new store
growth. New store activity since last year,
including licensed stores, resulted in 157 net new stores, opened and acquired,
including 59 Save-A-Lot stores, 93 opened or acquired Deals stores, and five
regional banner stores. Total retail square footage increased by approximately
six percent. Same store sales growth was flat in the fourth quarter. When
adjusted for planned in-market expansion, same store sales increased 0.9
percent. Save-A-Lot same store sales were positive in the fourth quarter.
Reported retail operating earnings for the fourth quarter were $115.3 million
compared to $92.7 million last year, an increase of 24.3 percent. Fourth quarter
retail operating earnings is an all time high for SUPERVALU. Reported operating
earnings as a percent to sales was 4.6 percent compared to 3.9 percent in last
year's fourth quarter. Major items impacting operating results year over year
were the absence of last year's $5.8 million in goodwill amortization and last
year's $12.5 million in store closing charges. Operating earnings increased in
the fourth quarter primarily due to sales growth partially offset by negative
expense leverage primarily due to rising employee benefit costs.
Food Distribution Segment - Fourth quarter net sales were $2.1 billion, a
decline of 1.9 percent compared to last year. Sales declined slightly in the
quarter due to the weak economy and customer attrition that more than offset new
business gains.
Reported distribution operating earnings for the fourth quarter were $31.0
million, compared to $53.7 million last year. Reported operating earnings as a
percent to sales was 1.5 percent compared to 2.5 percent in last year's fourth
quarter. Last year's operating earnings included $5.8 million in goodwill
amortization. Reported operating earnings and margin were impacted by the lack
of sales growth combined with cost pressures that had a sharp negative effect on
expense leverage. Major items impacting fourth quarter were a change in mix of
customers and services provided, rising employee benefit costs, higher LIFO
charges and unexpected shrink expense from consolidation of regional functions.
Other Items
The effective tax rate for fiscal 2003 fourth quarter was 37.0 percent,
reflecting the implementation of Statement of Financial Accounting Standard
(SFAS) No. 142. Total debt to capital was 51.8 percent at fiscal 2003 year-end
compared to 54.3 percent at fiscal 2002 year-end. The debt to capital ratio is
calculated as debt, which includes notes payable, current debt and current
obligations under capital leases,
long-term debt and long-term obligations under capital leases, divided by the
sum of debt and stockholders' equity. Net interest expense during the fourth
quarter declined to $34.3 million on lower borrowing levels and lower average
interest rates in the quarter.
In the event SUPERVALU's stock price reaches the convertible notes' conversion
trigger price of $35.07 in the current quarter, the company would be required to
include an additional 7.8 million shares in its diluted shares outstanding
calculation for the subsequent quarter. Diluted average shares outstanding were
essentially flat in the quarter at 133.9 million shares. As of February 22,
2003, SUPERVALU had 133.7 million shares outstanding.
Capital spending for fiscal 2003 was $439.4 million, including $42.8 million in
capitalized leases, primarily funding retail store expansion, store remodeling,
technology enhancements and the first quarter acquisition of Deals.
In the fourth quarter of fiscal 2003, the company recorded an additional
after-tax charge of $1.8 million, relating to prior years' restructure and other
charges for closed properties, as a result of continued weakening in certain
real estate markets.
In accordance with SFAS No. 87, "Employers' Accounting for Pension", the company
has revised certain of its pension plan assumptions. Based on both performance
of the pension plan assets and planned assumption changes, the company recorded
a net after-tax adjustment in the fourth quarter of fiscal 2003 of $72.3 million
to reflect a minimum pension liability. This adjustment is a non-cash reduction
of equity and did not impact net earnings. This adjustment will be revised in
future years depending upon market performance and interest rate levels.
In the fourth quarter of fiscal 2003, the company lowered its expected return on
plan assets used for fiscal 2003 pension expense by 75 basis points to 9.25
percent and by an additional 25 basis points to 9.0 percent for fiscal 2004
pension expense. The company also lowered its discount rate by 25 basis points
to 7.0 percent for fiscal 2004 pension expense. For fiscal 2004, when not
considering other changes in assumptions or actual return on plan assets, the
impact to pension expense of a 25 basis point reduction in the discount rate
will be approximately $3 million and the impact of a 25 basis point reduction in
expected return on plan assets will be approximately $1 million.
During the fourth quarter, the company adopted Emerging Issues Task Force (EITF)
Issue No. 02-16 that addresses the method by which retailers account for
allowances from vendors. Net earnings were not affected by the adoption of EITF
Issue No. 02-16. The company recognizes vendor allowances when earned which
typically occurs when the activities are completed or when the products are sold
for which the promotional allowances are given. SUPERVALU's accounting policies
are consistent with generally accepted accounting policies.
The company provides certain facilitative services between its independent
retailers and vendors related to products typically known as Direct Store
Delivery (DSD) products. These
services include sourcing, invoicing and payment services. In the fourth quarter
of fiscal 2003, the company decided to more fully disclose the components of
these facilitative services. These disclosures will now include amounts invoiced
to independent retailers by the company, amounts due and paid by the company to
its vendors and the associated net gross margin on these facilitative services.
The full year and fourth quarter activity relating to such facilitative services
for fiscal 2003 and 2002 is as follows:
Fiscal Year Fourth Quarter
2003 2002 2003 2002
------ ------ ------ ------
Amounts invoiced to independent retailers $663.8 $630.4 $151.2 $143.2
Amounts due and paid to vendors 649.3 615.5 147.8 139.7
------ ------ ------ ------
Net gross margin $ 14.5 $ 14.9 $ 3.4 $ 3.5
====== ====== ====== ======
Prior to the fourth quarter of fiscal 2003, the amounts invoiced to retailers by
the company were recorded as net sales and the amounts due and paid by the
company to its vendors were recorded as cost of sales. Commencing with the
fourth quarter of fiscal 2003, the company has revised amounts previously
recorded by reclassifying cost of sales against net sales for all prior periods.
The effect is to present the net gross margin associated with such facilitative
services as a component of net sales. This reclassification had no impact on
gross profit, earnings before income taxes, net earnings, cash flows, or
financial position for any period or their respective trends.
A conference call to review the full year results is scheduled for today at 9:00
a.m. (CDT). A live Web cast of the call will be available at www.supervalu.com.
An archive of the call is accessible via telephone by dialing 1-630-652-3018
with pass code 6976167 and through the company's Web site at www.supervalu.com.
The conference call archive will be available through May 10, 2003.
As of February 22, 2003, SUPERVALU's retail store network consisted of 1,417
stores in 39 states, including 1,150 Save-A-Lot extreme value food stores - 274
owned food stores, 783 licensed food stores, and 93 Deals general merchandise
stores; 267 regional banners including Cub Foods, Shop `n Save, Shoppers Food
Warehouse, Metro, bigg's, Farm Fresh, Scott's Foods and Hornbacher's stores.
SUPERVALU serves as primary supplier to approximately 2,460 stores, 29 Cub Foods
franchised locations, and SUPERVALU's own regional banner store network of 267
stores, while serving as secondary supplier to approximately 1,500 stores.
SUPERVALU is one of the largest companies in the United States grocery channel.
With annual revenues approaching $20 billion, SUPERVALU holds leading market
share positions with its 1,417 retail grocery locations, including licensed
Save-A-Lot locations. Through its Save-A-Lot format, the company holds the
number one market position in the extreme value grocery retailing sector. In
addition, through SUPERVALU's geographically diverse distribution centers, the
company provides distribution and related logistics support services across the
nation's grocery channel. At year-end, SUPERVALU had approximately 57,400
employees.
The statements contained in this news release that are not historical fact are
forward-looking statements and are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Certain important factors
could cause results to differ materially from those anticipated by such
forward-looking statements, including the impact of competition, the nature and
extent of the consolidation of the retail food and food distribution industries,
the ability to attract and retain customers for the company's food distribution
operations and to control food distribution costs, the ability of the company to
grow through acquisition and assimilate the acquired entities, the execution of
restructuring activities, potential work disruptions from labor disputes or
national emergencies, the availability of favorable credit and trade terms, food
price changes, general economic or political conditions that affect consumer
buying habits generally or war-time activities, threats or general acts of
terror directed at the food industry that affects consumer behavior, other risk
factors inherent in the food distribution and retail businesses and other
factors discussed from time to time in reports filed by the company with the
Securities and Exchange Commission.
SUPERVALU INC. and Subsidiaries
Composition of Net Sales and Earnings
The following table sets forth the composition of the company's net sales and
earnings. (In thousands)
Fourth Quarter (12 weeks) ended
-------------------------------
Feb. 22, 2003 Feb. 23, 2002
- -------------------------------------- ------------- --------------
Net sales
- --------------------------------------
Retail Food $ 2,517,658 $ 2,376,196
% of total 54.6 % 52.7 %
Food Distribution 2,095,264 2,135,480
% of total 45.4 % 47.3 %
Total net sales $ 4,612,922 $ 4,511,676
100.0 % 100.0 %
- -------------------------------------- ----------- -----------
Earnings
- --------------------------------------
Retail Food operating earnings $ 115,255 $ 92,714
% of sales 4.6 % 3.9 %
Food Distribution operating earnings 31,038 53,697
% of sales 1.5 % 2.5 %
----------- -----------
Subtotal 146,293 146,411
% of sales 3.2 % 3.2 %
General corporate expense (7,555) (8,086)
Restructure and other charges (2,918) (46,300)
----------- -----------
Total operating earnings 135,820 92,025
% of sales 2.9 % 2.0 %
Interest expense (39,333) (42,029)
Interest income 5,009 4,911
----------- -----------
Earnings before income taxes 101,496 54,907
Income tax expense 37,553 22,133
----------- -----------
Net earnings $ 63,943 $ 32,774
====================================== =========== ===========
NOTE 1:
Pretax LIFO (expense) revenue $ (1,975) $ 4,229
NOTE 2:
Pretax depreciation and amortization
Retail Food Segment $ 44,323 $ 45,728
Food Distribution Segment 30,183 37,073
General Corporate 804 133
----------- -----------
Total Company $ 75,310 $ 82,934
=========== ===========
NOTE 3:
Fiscal 2003 net earnings include restructure and other charges of $1.8
million or $0.01 per diluted share, reflecting net adjustments to increase
prior years' restructure charges, primarily for increased liabilities
associated with real estate in certain markets.
Fiscal 2002 net earnings include restructure and other items of $35.2
million or $0.27 per diluted share. This includes total pretax adjustments
of $58.8 million, including $46.3 million of restructure charges and $12.5
million in store closing charges. The $46.3 million of restructure charges
includes $16.3 million for additional efficiency initiatives and $30
million of net adjustments to increase prior years' restructure charges for
increased liabilities associated with real estate. The $12.5 million in
store closing reserves that was recorded in the fourth quarter of fiscal
2002 relates primarily to lease liabilities and impairment of assets and is
reflected in selling and administrative expenses in the retail food
segment.
NOTE 4:
The company provides certain facilitative services between its independent
retailers and vendors related to products typically known as Direct Store
Delivery (DSD) products. These services include sourcing, invoicing and
payment services. Prior to the fourth quarter of fiscal 2003, the amounts
invoiced to independent retailers by the company for facilitative services
were recorded as net sales and the related amounts due and paid by the
company to its vendors were recorded as cost of sales. Commencing with the
fourth quarter of fiscal 2003, the company has revised amounts previously
recorded by reclassifying cost of sales against net sales for all prior
periods. The effect is to present the net gross margin associated with
such facilitative services as a component of net sales. This
reclassification had no impact on gross profit, earnings before income
taxes, net earnings, cash flows, or financial position for any period or
their respective trends.
SUPERVALU INC. and Subsidiaries
Composition of Net Sales and Earnings
The following table sets forth the composition of the company's net sales
and earnings. (In thousands)
Year-to-Date (52 weeks) ended
-------------------------------
Actual Actual
Feb. 22, 2003 Feb. 23, 2002
- -------------------------------------- ------------- --------------
Net sales
- --------------------------------------
Retail Food $ 9,848,230 $ 9,549,068
% of total 51.4 % 47.1 %
Food Distribution 9,312,138 10,743,972
% of total 48.6 % 52.9 %
Total net sales $19,160,368 $20,293,040
100.0 % 100.0 %
- -------------------------------------- ----------- -----------
Earnings
- --------------------------------------
Retail Food operating earnings $ 436,537 $ 363,304
% of sales 4.4 % 3.8 %
Food Distribution operating earnings 171,589 227,013
% of sales 1.8 % 2.1 %
----------- -----------
Subtotal 608,126 590,317
% of sales 3.2 % 2.9 %
General corporate expense (35,265) (39,245)
Restructure and other charges (2,918) (46,300)
----------- -----------
Total operating earnings 569,943 504,772
% of sales 3.0 % 2.5 %
Interest expense (182,499) (194,294)
Interest income 20,560 21,520
----------- -----------
Earnings before income taxes 408,004 331,998
Income tax expense 150,962 133,672
----------- -----------
Net earnings $ 257,042 $ 198,326
====================================== =========== ===========
NOTE 1:
Pretax LIFO expense $ (4,741) $ (143)
NOTE 2:
Pretax depreciation and amortization
Retail Food Segment $ 167,143 $ 177,585
Food Distribution Segment 127,042 160,718
General Corporate 2,871 2,447
----------- -----------
Total Company $ 297,056 $ 340,750
=========== ===========
NOTE 3:
Fiscal 2003 net earnings include restructure and other charges of $1.8
million or $0.01 per diluted share, reflecting net adjustments to increase
prior years' restructure charges, primarily for increased liabilities
associated with real estate in certain markets.
Fiscal 2002 net earnings include restructure and other items of $35.2
million or $0.27 per diluted share. This includes total pretax adjustments
of $58.8 million, including $46.3 million of restructure charges and $12.5
million in store closing charges. The $46.3 million of restructure charges
includes $16.3 million for additional efficiency initiatives and $30
million of net adjustments to increase prior years' restructure charges for
increased liabilities associated with real estate. The $12.5 million in
store closing reserves that was recorded in the fourth quarter of fiscal
2002 relates primarily to lease liabilities and impairment of assets and is
reflected in selling and administrative expenses in the retail food
segment.
NOTE 4:
The company provides certain facilitative services between its
independent retailers and vendors related to products typically known as
Direct Store Delivery (DSD) products. These services include sourcing,
invoicing and payment services. Prior to the fourth quarter of fiscal 2003,
the amounts invoiced to independent retailers by the company for
facilitative services were recorded as net sales and the related amounts
due and paid by the company to its vendors were recorded as cost of sales.
Commencing with the fourth quarter of fiscal 2003, the company has revised
amounts previously recorded by reclassifying cost of sales against net
sales for all prior periods. The effect is to present the net gross margin
associated with such facilitative services as a component of net sales.
This reclassification had no impact on gross profit, earnings before income
taxes, net earnings, cash flows, or financial position for any period or
their respective trends.
CONSOLIDATED STATEMENTS OF EARNINGS
SUPERVALU INC. and Subsidiaries
(In thousands, except per share data)
Fourth Quarter (12 weeks) ended
-------------------------------
Actual Actual
Feb. 22, 2003 Feb. 23, 2002
- -------------------------------------- ------------- -------------
Net sales $ 4,612,922 $ 4,511,676
Costs and expenses:
Cost of sales 3,964,919 3,872,673
Selling and administrative expenses 509,265 489,103
Amortization of goodwill - 11,575
Restructure and other charges 2,918 46,300
Interest
Interest expense 39,333 42,029
Interest income 5,009 4,911
----------- -----------
Interest expense, net 34,324 37,118
----------- -----------
Total costs and expenses 4,511,426 4,456,769
----------- -----------
Earnings before income taxes 101,496 54,907
Income tax expense 37,553 22,133
----------- -----------
Net earnings $ 63,943 $ 32,774
=========== ===========
Net earnings per common share - diluted $ 0.48 $ 0.24
Net earnings per common share - basic $ 0.48 $ 0.25
Weighted average number of common
shares outstanding
Diluted 133,934 134,486
Basic 133,689 132,811
Dividends declared per common share $ 0.1425 $ 0.1400
NOTE 1:
Fiscal 2003 net earnings include restructure and other charges of $1.8
million or $0.01 per diluted share, reflecting net adjustments to increase
prior years' restructure charges, primarily for increased liabilities
associated with real estate in certain markets.
Fiscal 2002 net earnings include restructure and other items of $35.2
million or $0.27 per diluted share. This includes total pretax adjustments
of $58.8 million, including $46.3 million of restructure charges and $12.5
million in store closing charges. The $46.3 million of restructure charges
includes $16.3 million for additional efficiency initiatives and $30
million of net adjustments to increase prior years' restructure charges for
increased liabilities associated with real estate. The $12.5 million in
store closing reserves that was recorded in the fourth quarter of fiscal
2002 relates primarily to lease liabilities and impairment of assets and is
reflected in selling and administrative expenses in the retail food
segment.
NOTE 2:
The company provides certain facilitative services between its independent
retailers and vendors related to products typically known as Direct Store
Delivery (DSD) products. These services include sourcing, invoicing and
payment services. Prior to the fourth quarter of fiscal 2003, the amounts
invoiced to independent retailers by the company for facilitative services
were recorded as net sales and the related amounts due and paid by the
company to its vendors were recorded as cost of sales. Commencing with the
fourth quarter of fiscal 2003, the company has revised amounts previously
recorded by reclassifying cost of sales against net sales for all prior
periods. The effect is to present the net gross margin associated with such
facilitative services as a component of net sales. This reclassification
had no impact on gross profit, earnings before income taxes, net earnings,
cash flows, or financial position for any period or their respective
trends.
CONSOLIDATED STATEMENTS OF EARNINGS
SUPERVALU INC. and Subsidiaries
(In thousands, except per share data)
Year-to-date (52 weeks) ended
-------------------------------
Actual Actual
Feb. 22, 2003 Feb. 23, 2002
- -------------------------------------- ------------- -------------
Net sales $ 19,160,368 $ 20,293,040
Costs and expenses:
Cost of sales 16,567,397 17,704,197
Selling and administrative expenses 2,020,110 1,989,408
Amortization of goodwill - 48,363
Restructure and other charges 2,918 46,300
Interest
Interest expense 182,499 194,294
Interest income 20,560 21,520
------------ ------------
Interest expense, net 161,939 172,774
------------ ------------
Total costs and expenses 18,752,364 19,961,042
------------ ------------
Earnings before income taxes 408,004 331,998
Income tax expense 150,962 133,672
------------ ------------
Net earnings $ 257,042 $ 198,326
============ ============
Net earnings per common share - diluted $ 1.91 $ 1.48
Net earnings per common share - basic $ 1.92 $ 1.49
Weighted average number of common
shares outstanding
Diluted 134,877 133,978
Basic 133,730 132,940
Dividends declared per common share $ 0.5675 $ 0.5575
NOTE 1:
Fiscal 2003 net earnings include restructure and other charges of $1.8
million or $0.01 per diluted share, reflecting net adjustments to increase
prior years' restructure charges, primarily for increased liabilities
associated with real estate.
Fiscal 2002 net earnings include restructure and other charges of $35.2
million or $0.27 per diluted share. This includes total pretax adjustments
of $58.8 million, including $46.3 million of restructure charges and $12.5
million in store closing charges. The $46.3 million of restructure charges
includes $16.3 million for additional efficiency initiatives and $30
million of net adjustments to increase prior years' restructure charges for
increased liabilities associated with real estate. The $12.5 million in
store closing reserves that was recorded in the fourth quarter of fiscal
2002 relates primarily to lease liabilities and impairment of assets and is
reflected in selling and administrative expenses in the retail food
segment.
NOTE 2:
The company provides certain facilitative services between its independent
retailers and vendors related to products typically known as Direct Store
Delivery (DSD) products. These services include sourcing, invoicing and
payment services. Prior to the fourth quarter of fiscal 2003, the amounts
invoiced to independent retailers by the company for facilitative services
were recorded as net sales and the related amounts due and paid by the
company to its vendors were recorded as cost of sales. Commencing with the
fourth quarter of fiscal 2003, the company has revised amounts previously
recorded by reclassifying cost of sales against net sales for all prior
periods. The effect is to present the net gross margin associated with such
facilitative services as a component of net sales. This reclassification
had no impact on gross profit, earnings before income taxes, net earnings,
cash flows, or financial position for any period or their respective
trends.
CONSOLIDATED BALANCE SHEETS
SUPERVALU INC. and Subsidiaries
(In thousands)
Fiscal Year End
------------------------------
February 22, February 23,
2003 2002
- ------------------------------------------ ------------ ------------
Assets
Current Assets
Cash and cash equivalents $ 29,188 $ 12,171
Receivables, net 477,429 447,243
Inventories 1,049,283 1,038,050
Other current assets 91,466 78,030
----------- -----------
Total current assets 1,647,366 1,575,494
Long-term receivables, net 126,435 137,326
Property, plant and equipment, net 2,220,850 2,208,633
Other Assets
Goodwill 1,576,584 1,531,312
Other 325,010 343,484
----------- -----------
Total assets $ 5,896,245 $ 5,796,249
========================================== =========== ===========
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable $ 80,000 $ 24,000
Accounts payable 1,081,734 1,016,605
Current debt and obligations under
capital leases 61,580 356,408
Other current liabilities 301,993 283,217
----------- -----------
Total current liabilities 1,525,307 1,680,230
Long-term debt and obligations under
capital leases 2,019,658 1,875,873
Other liabilities and deferred income taxes 342,040 341,008
Total stockholders' equity 2,009,240 1,899,138
----------- -----------
Total liabilities and stockholders' equity $ 5,896,245 $ 5,796,249
========================================== =========== ===========
SUPERVALU, INC.
CERTAIN FACILITATIVE SERVICES -- FIVE YEAR SUMMARY
The company provides certain facilitative services between its independent
retailers and vendors related to products typically known as Direct Store
Delivery (DSD) products. These services include sourcing, invoicing and payment
services. Prior to the fourth quarter of fiscal 2003, the amounts invoiced to
independent retailers by the company for facilitative services were recorded as
net sales and the related amounts due and paid by the company to its vendors
were recorded as cost of sales. Commencing with the fourth quarter of fiscal
2003, the company has revised amounts previously recorded by reclassifying cost
of sales against net sales for all prior periods. The effect is to present the
net gross margin associated with such facilitative services as a component of
net sales. This reclassification had no impact on gross profit, earnings before
income taxes, net earnings, cash flows, or financial position for any period or
their respective trends.
(In millions)
Fiscal Fiscal Fiscal Fiscal Fiscal
2003 2002 2001 2000 1999
------- ------- ------- -------- -------
Amounts invoiced to independent retailers $ 663.8 $ 630.4 $ 690.2 $ 679.5 $ 751.4
Amounts due and paid to vendors 649.3 615.5 673.9 663.3 733.3
------- ------- ------- ------- -------
Net gross margin $ 14.5 $ 14.9 $ 16.3 $ 16.2 $ 18.1
======= ======= ======= ======= =======