Albertsons 2003 Annual Report Download - page 65

SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
TREASURY STOCK PURCHASE PROGRAM
In August 1996, the Board of Directors authorized a treasury stock purchase program under which the
company was authorized to repurchase up to 10.0 million shares of the company’s common stock for reissuance
upon the exercise of employee stock options and for other compensation programs utilizing the company’s stock.
In fiscal 2001, the company purchased 0.8 million shares under the program at an average cost of $15.92 per
share. In fiscal 2002, the company completed the program by purchasing 0.2 million shares at an average cost of
$19.97 per share. This brought the total repurchases under the program to 10.0 million shares.
In December 1999, the Board of Directors authorized a treasury stock purchase program under which the
company was authorized to purchase up to $140.0 million of the company’s common stock. In fiscal 2001, the
company completed the program with the repurchase of 2.1 million shares at an average cost of $16.86 per share.
This brought the total repurchases under the program to $140.0 million.
In October 2001, the Board of Directors authorized a treasury stock purchase program under which the
company is authorized to purchase up to 5.0 million shares of the company’s common stock for reissuance upon
the exercise of employee stock options and for other compensation programs utilizing the company’s stock. In
fiscal 2002, the company purchased 1.3 million shares under the program at an average cost of $22.16 per share.
In fiscal 2003, the company purchased 1.5 million shares under the program at an average cost of $27.94 per
share.
EARNINGS PER SHARE
The following table reflects the calculation of basic and diluted earnings per share:
2003 2002 2001
(In thousands, except per share amounts)
Earnings per share—basic
Earnings available to common shareholders $257,042 $198,326 $ 72,870
Weighted average shares outstanding 133,730 132,940 132,251
Earnings per share—basic $ 1.92 $ 1.49 $ 0.55
Earnings per share—diluted
Earnings available to common shareholders $257,042 $198,326 $ 72,870
Weighted average shares outstanding 133,730 132,940 132,251
Dilutive impact of options outstanding 1,147 1,038 578
Weighted average shares and potential dilutive shares
outstanding 134,877 133,978 132,829
Earnings per share—diluted $ 1.91 $ 1.48 $ 0.55
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS
The company has guaranteed certain leases and fixture financing loans and other debt obligations of various
retailers at February 22, 2003. These guarantees were made to support the business growth of affiliated retailers.
The guarantees are generally for the entire term of the lease or other debt obligation. For each guarantee issued, if
the affiliated retailer defaults on a payment, the company would be required to make payments under its
guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees of the
affiliated retailer. At February 22, 2003, the maximum amount of undiscounted payments the company would be
required to make in the event of default of all guarantees is $305.9 million and represents $200.3 million on a
discounted basis. No amount has been accrued for the company’s obligation under its guaranty arrangements. In
addition, the company has guaranteed construction loans on warehouses of $26.3 million at February 22, 2003
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