Albertsons 2007 Annual Report Download - page 102

SU
PERVAL
U
IN
C
. and
S
ubsidiaries
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
T
he Compan
y
currentl
y
has federal and state net operatin
g
loss (NOL) carr
y
forwards from Acquired Operation
s
o
f
$
26 and
$
51, respectively, for tax purposes. The NOLs expire beginning in 2008 and continuing through 2021.
T
he Company records valuation allowances to reduce deferred tax assets to the amount that is more likely tha
n
not to
b
e rea
li
ze
d
.T
h
e Company recor
d
e
d
a
f
u
ll
va
l
uat
i
on a
ll
owance aga
i
nst
i
ts cap
i
ta
ll
oss carry
f
orwar
d
d
eferred tax asset in accordance with SFAS No. 109, as realization of such assets in future
y
ears is uncertain. Th
e
capital loss carryover will expire in fiscal 2011.
NOTE 12—
S
TOCK-BA
S
ED COMPEN
S
ATIO
N
Ad
option of New Stan
d
ar
d
E
ffective February 2
6
, 200
6
, the Company adopted the provisions of SFAS No. 123(R) using the modified
-
prospective transition method. Under this transition method, compensation expense reco
g
nized durin
g
the
y
ea
r
ended February 24, 2007 included: (1) compensation expense for all stock-based awards granted prior to, but not
yet vested as of February 25, 2006 based on the grant date fair value estimated in accordance with the origina
l
provisions of SFAS No. 123 and (2) compensation expense for all stock-based awards
g
ranted on or afte
r
F
ebruary 26, 2006, based on the grant date fair value estimated in accordance with the provisions of SFA
S
N
o. 123(R). T
h
e Company use
d
t
h
e stra
i
g
h
t-
li
ne met
h
o
d
to recogn
i
ze t
h
e expense re
l
ate
d
to t
h
e opt
i
on p
l
an pr
i
o
r
to and subsequent to the adoption of SFAS No. 123(R). As stock-based compensation expense reco
g
nized in th
e
C
onsolidated Statement of Earnings for the year ended February 24, 2007 is based on awards ultimately expected
to vest,
i
t
h
as
b
een re
d
uce
df
or est
i
mate
df
or
f
e
i
tures. T
h
ee
ff
ect o
f
a
d
opt
i
ng SFAS No. 123(R) was an a
ddi
t
i
ona
l
a
fter tax expense of $15 ($0.08 per basic and diluted share) reco
g
nized in the Consolidated Statement of Earnin
gs
f
or the
5
2 weeks ended February 24, 2007.
S
tock Options
Th
e Company
h
as opt
i
ons outstan
di
ng un
d
er mu
l
t
i
p
l
e stoc
k
p
l
ans. T
h
e Company’s 2002 Stoc
k
P
l
an a
ll
ows t
he
g
rantin
g
of non-qualified stock options and incentive stock options to purchase shares of the Compan
y
’s commo
n
stoc
k
,to
k
ey sa
l
ar
i
e
d
emp
l
oyees at pr
i
ces not
l
ess t
h
an 100 percent o
f
t
h
e
f
a
i
r mar
k
et va
l
ue on t
h
e
d
ate o
f
grant.
Th
e Company’s 1997 Stoc
k
P
l
an a
ll
ows t
h
e grant
i
ng o
f
non-qua
lifi
e
d
stoc
k
opt
i
ons to purc
h
ase common s
h
ares
to salaried emplo
y
ees at fair market value on the date of
g
rant. In April 200
5
, the Board of Directors authorize
d
a
na
ddi
t
i
ona
l
9s
h
ares
f
or
i
ssuance un
d
er t
h
e 2002 Stoc
k
P
l
an, w
hi
c
h
was approve
db
yt
h
e stoc
kh
o
ld
ers o
f
t
h
e
C
ompany on June 15, 2005. 7.5 of these shares are reserved for issuance as stock options and the remaining
1
.
5
shares are reserved for other t
y
pes of awards. As part of the Acquisition, the Compan
y
ma
yg
ran
t
non-qua
lifi
e
d
stoc
k
opt
i
ons an
di
ncent
i
ve stoc
k
opt
i
ons to purc
h
ase 10 s
h
ares o
f
t
h
e Company’s common stoc
k
to
emp
l
o
y
ees o
f
A
lb
ertsons pr
i
or to t
h
e Acqu
i
s
i
t
i
on at
f
a
i
r mar
k
et va
l
ue on t
h
e
d
ate o
fg
rant un
d
er t
h
eA
lb
ertsons
2
004 Equit
y
and Performance Incentive Plan. The Compan
y
has options outstandin
g
under the 2002 Stock Plan,
t
h
e 1997 Stoc
k
P
l
an an
d
t
h
eA
lb
ertsons 2004 Equ
i
ty an
d
Per
f
ormance Incent
i
ve P
l
an. T
h
e Company a
l
so
h
a
s
o
pt
i
ons outstan
di
ng un
d
er
i
ts 1983 Emp
l
oyee Stoc
k
Opt
i
on P
l
an, 1993 Stoc
k
P
l
an, t
h
e SUPERVALU/R
i
c
hf
oo
d
Stock Incentive Plan, and the Albertsons Amended and Restated 199
5
Stock-Based Incentive Plan, but no further
o
pt
i
ons may
b
e grante
d
un
d
er t
h
ese p
l
ans. T
h
ep
l
ans prov
id
et
h
at t
h
e Boar
d
o
f
D
i
rectors or t
h
e Execut
i
v
e
Personne
l
an
d
Compensat
i
on Comm
i
ttee o
f
t
h
e Boar
d
(t
h
e “Compensat
i
on Comm
i
ttee”) ma
yd
eterm
i
ne at t
h
e
time of
g
rantin
g
whether each option
g
ranted, except those
g
ranted under the 1997 Stock Plan, will be a
non-qua
lifi
e
d
or
i
ncent
i
ve stoc
k
opt
i
on un
d
er t
h
e Interna
l
Revenue Co
d
e. T
h
e terms o
f
eac
h
opt
i
on w
ill b
e
d
eterm
i
ne
dby
t
h
e Boar
d
o
f
D
i
rectors or t
h
e Compensat
i
on Comm
i
ttee. Genera
lly
, opt
i
ons
i
ssue
d
pr
i
or to
fi
sca
l
2
006 have a term of ten
y
ears. Effective in fiscal 2006, options
g
ranted will not be for more than a term of seven
F-3
6