Albertsons 2003 Annual Report Download - page 38

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Notes:
(a) All years include 52 weeks. Dollars in thousands except per share and percentage data.
(b) Sales and cost of sales have been revised to conform prior years’ data to the current presentation. These
reclassifications had no impact on gross profit, earnings before income taxes, net earnings, cash flow, or
financial position for any period or their respective trends. See the Summary of Significant Accounting
Policies for additional information.
(c) Fiscal 2003 net earnings include restructure and other charges of $1.8 million or $0.01 per diluted share and
represents the net adjustment for changes in estimates related to prior years’ restructure reserves and asset
impairment charges primarily due to continued softening of real estate in certain markets.
(d) 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 recorded in the fourth quarter. The $46.3 million of restructure
charges includes $16.3 million for additional efficiency initiatives and $30.0 million of net adjustments to
increase prior years’ restructure charges as a result of changes in estimates primarily due to continued
softening of real estate in certain markets. The company also recorded $12.5 million in store closing
reserves reflected in selling and administrative expenses.
(e) Fiscal 2001 net earnings include restructure and other items of $153.9 million or $1.16 per diluted share.
This includes total pretax adjustments of $240.1 million, including $171.3 million of restructure and other
charges related primarily to consolidation of distribution facilities, exit of certain non-core retail markets,
and write-off of other items. The pretax adjustments also include $17.1 million in cost of sales for inventory
markdowns related to restructure activities and $51.7 million in selling and administrative expenses
primarily for store closing reserves and provisions for certain uncollectible receivables.
(f) Fiscal 2000 net earnings include a net benefit of $10.9 million or $0.08 per diluted share from the gain on
sale of Hazelwood Farms Bakeries and restructure charges. This reflects total pretax net adjustments of
$60.1 million, which include a $163.7 million gain on sale of Hazelwood Farms Bakeries and
$103.6 million of restructure charges related primarily to facility consolidation, non core store disposal, and
rationalization of redundant and certain decentralized administrative functions.
(g) Information adjusted to include stock split in fiscal 1999.
(h) Inventories (FIFO), working capital and current ratio are calculated after adding back the LIFO reserve. The
LIFO reserve for each year is as follows: $145.5 million for fiscal 2003, $140.8 million for fiscal 2002,
$140.6 million for fiscal 2001, $135.6 million for fiscal 2000 and $127.4 million for fiscal 1999.
(i) Long-term debt includes long-term debt and long-term obligations under capital leases.
(j) The debt to capital ratio is calculated as debt, which includes notes payable, current debt, current obligations
under capital leases, long-term debt and long-term obligations under capital leases, divided by the sum of
debt and stockholders’ equity.
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