Albertsons 2006 Annual Report Download - page 27

(3) The company’s purchase obligations include various obligations that have annual purchase commitments of
$1 million or greater. At the end of fiscal 2006, future purchase obligations of approximately $40 million
existed that primarily related to technology and advertising. In the ordinary course of business, the company
enters into supply contracts to purchase products for resale. These supply contracts typically include either a
volume commitment or a fixed expiration date, termination provisions and other standard contractual
considerations. These supply contracts are cancelable and therefore no amounts have been included above.
In addition, see the Subsequent Event footnote for additional discussion of the Proposed Transaction.
COMMON STOCK PRICE
SUPERVALU’s common stock is listed on the New York Stock Exchange under the symbol SVU. At fiscal
2006 year end, there were 6,206 shareholders of record compared with 6,483 at the end of fiscal 2005.
Common Stock Price Range Dividends Per Share
2006 2005 2006 2005
Fiscal High Low High Low
First Quarter $34.72 $30.64 $32.49 $27.25 $0.1525 $0.1450
Second Quarter 35.88 30.90 31.99 25.70 0.1625 0.1525
Third Quarter 33.93 29.55 32.59 26.59 0.1625 0.1525
Fourth Quarter 34.75 30.60 35.15 31.30 0.1625 0.1525
Year 35.88 29.55 35.15 25.70 0.6400 0.6025
Dividend payment dates are on or about the 15th day of March, June, September and December, subject to
the Board of Directors approval.
NEW ACCOUNTING STANDARDS
In December 2004, the Financial Accounting Standards Board (“FASB”) issued FASB Statement 123
(Revised 2004), “Share-Based Payment.” This revised statement, which is effective for fiscal years beginning
after June 15, 2005, requires all share-based payments to employees to be recognized in the financial statements
based on their fair values. The company currently accounts for its share-based payments to employees under the
intrinsic value method of accounting set forth in Accounting Principles Board Opinion No. 25, “Accounting for
Stock Issues to Employees.” Additionally, the company complies with the stock-based employer compensation
disclosure requirements of SFAS No. 148, “Accounting for Stock-Based Compensation—Transition and
Disclosure, an amendment of FASB Statement No. 123.” The company plans to adopt the revised statement in its
first quarter of its fiscal year 2007, which begins on February 26, 2006. For previously issued awards, the
company will adopt SFAS 123(R) on a modified prospective basis and recognize compensation expense on the
unvested portion of the awards over the remaining vesting period. The company estimates that earnings per share
for the year ending February 24, 2007 will be reduced by approximately $0.10 per diluted share as a result of the
incremental compensation expense to be recognized from implementing SFAS No. 123(R). These estimates will
change if the company completes the Proposed Transaction, as described above.
In December 2004, the FASB issued SFAS No. 153, “Exchanges of Nonmonetary Assets, an amendment of
APB Opinion No. 29” (“SFAS 153”). SFAS 153 amends Opinion 29 to eliminate the exception for nonmonetary
exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary
assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future
cash flows of the entity are expected to change significantly as a result of the exchange. The company is required
to adopt the provisions of SFAS 153 during the first quarter of fiscal year 2007, which begins on February 26,
2006. The provisions of SFAS 153 are not expected to have a material impact on the consolidated financial
statements.
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