Albertsons 2005 Annual Report Download - page 76

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
TREASURY STOCK PURCHASE PROGRAM
In October 2001, the Board of Directors authorized a treasury stock purchase program under which the
company was authorized to purchase up to 5.0 million shares of the company’s common stock for re-issuance
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. In fiscal 2004, the company purchased 0.6 million shares under the program at an average cost of
$23.80 per share. In fiscal 2005, the company completed the program by purchasing the remaining 1.6 million
shares under the program at an average cost of $28.45 per share.
In May 2004, 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 2005, the company purchased approximately 0.4 million shares under the program at an average cost of
$27.73 per share. As of February 26, 2005, approximately 4.6 million shares remained available for purchase
under this program.
EARNINGS PER SHARE
The following table reflects the calculation of basic and diluted earnings per share:
2005 2004 2003
(In thousands, except per share amounts)
Earnings per share—basic:
Net earnings $385,823 $280,138 $257,042
Weighted average shares outstanding—basic 135,003 133,975 133,730
Earnings per share—basic $ 2.86 $ 2.09 $ 1.92
Earnings per share—diluted:
Net earnings $385,823 $280,138 $257,042
Interest and amortization related to dilutive contingently
convertible debentures, net of tax 6,786 7,678 7,971
Net earnings used for diluted earnings per share calculation $392,609 $287,816 $265,013
Weighted average shares outstanding 135,003 133,975 133,730
Dilutive impact of options outstanding 2,103 1,443 1,147
Dilutive impact of contingently convertible debentures 7,818 7,818 7,818
Weighted average shares—diluted 144,924 143,236 142,695
Earnings per share—diluted $ 2.71 $ 2.01 $ 1.86
In November 2004, the FASB ratified the effective date of the Emerging Issues Task Force (EITF)
consensus on Issue No. 04-8, “The Effect of Contingently Convertible Instruments on Diluted Earnings per
Share” to be applied to reporting periods ending after December 15, 2004. Under EITF Issue No. 04-8, net
earnings and diluted shares outstanding, used for earnings per share calculations, are restated using the
if-converted method of accounting to reflect the contingent issuance of 7.8 million shares under the company’s
outstanding contingently convertible zero-coupon debentures which were issued in November 2001. The
company adopted the provisions of EITF 04-8 in the fourth quarter of fiscal 2005 and restated prior years’ diluted
earnings per share amounts. The impact of the EITF 04-8 restatement reduced diluted earnings per share by
approximately $0.11, $0.06 and $0.05 in fiscal 2005, fiscal 2004 and fiscal 2003, respectively.
F-30