Albertsons 2006 Annual Report Download - page 77

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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. In fiscal 2006, the company purchased approximately 0.9 million shares under the program at
an average cost of $32.19 per share. As of February 25, 2006, approximately 3.7 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:
2006 2005 2004
(In thousands, except per share amounts)
Earnings per share—basic:
Net earnings $206,169 $385,823 $280,138
Weighted average shares outstanding—basic 136,077 135,003 133,975
Earnings per share—basic $ 1.52 $ 2.86 $ 2.09
Earnings per share—diluted:
Net earnings $206,169 $385,823 $280,138
Interest and amortization related to dilutive contingently
convertible debentures, net of tax 7,070 6,786 7,678
Net earnings used for diluted earnings per share calculation $213,239 $392,609 $287,816
Weighted average shares outstanding 136,077 135,003 133,975
Dilutive impact of options outstanding 1,804 2,103 1,443
Dilutive impact of contingently convertible debentures 7,818 7,818 7,818
Weighted average shares—diluted 145,699 144,924 143,236
Earnings per share—diluted $ 1.46 $ 2.71 $ 2.01
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS
The company has guaranteed certain leases, fixture financing loans and other debt obligations of various
retailers at February 25, 2006. These guarantees were generally made to support the business growth of affiliated
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