Albertsons 2007 Annual Report Download - page 88

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SU
PERVAL
U
IN
C
. and
S
ubsidiaries
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
T
he preliminar
y
purchase price allocation to intan
g
ible assets is based on estimated fair values determined b
y
internal analyses and third-party valuation specialists. Amortizing intangible assets are amortized on a straight
-
li
ne
b
as
i
s over t
h
e
i
r rema
i
n
i
ng expecte
d
use
f
u
lli
ves o
fl
ess t
h
an one to 30 years
.
T
he estimated values of operating leases with unfavorable terms compared with current market conditions totale
d
$
143. These leases have an estimated weighted average life of 15 years and are included in other liabilities.
T
he excess of the
p
urchase
p
rice over the fair value of assets ac
q
uired and liabilities assumed was recorded a
s
Goo
d
w
ill
. Goo
d
w
ill i
s non-amort
i
z
i
ng
f
or
fi
nanc
i
a
l
statement purposes an
di
s not tax
d
e
d
uct
ibl
e
.
U
naudited Pro Forma Financial Informatio
n
T
he followin
g
unaudited pro forma financial information presents the combined historical results of the
o
perations of SUPERVALU and the Acquired Operations as if the Acquisition had occurred at the beginning o
f
f
iscal 2007 and 200
6
, respectively. Certain adjustments have been made to reflect changes in depreciation,
income taxes and interest expense that would have resulted from the chan
g
e in the accountin
g
base of certain
a
ssets and liabilities due to the Acquisition, based on the Company’s preliminary estimates of fair value and
i
ncrease
dd
e
b
tto
f
un
d
t
h
e Acqu
i
s
i
t
i
on. T
h
ese a
dj
ustments are su
bj
ect to c
h
ange as t
h
e
i
n
i
t
i
a
l
est
i
mates are re
fi
ne
d
o
ver time. Because of differences in the accountin
g
calendars of SUPERVALU and the Acquired Operations, the
pro forma results below for the
5
2 weeks ended February 24, 2007 include SUPERVALU results for the
5
2
w
eeks and results of the Acquired Operations for 51 weeks. This pro forma financial information is not intende
d
to re
p
resent or be indicative of what would have occurred if the transactions had taken
p
lace on the dates
presented and should not be taken as representative of the Company’s future consolidated results of operations or
f
inancial position. The pro forma financial information for fiscal 200
6
does not reflect any potential synergies.
(
Unaudited
)
Yea
r
e
n
ded
F
ebruar
y 24,
2007
F
ebruar
y2
5
,
2006
N
et sa
l
e
s
$43,356 $44,286
Net earnings (1) 536 38
5
We
i
g
h
te
d
average common s
h
ares
:
Bas
i
c
2
02 20
2
Dil
uted
208 208
Earn
i
ngs per s
h
are:
B
as
ic
$
2.64
$
1.90
Dil
uted
2.
5
8 1.8
8
(1) Certain items impactin
g
the comparabilit
y
of this pro forma financial information include: (a) $40 after-tax
e
xpense reco
g
nized in fiscal 2007 due to transaction costs related to the Acquisition; (b) $29 after-ta
x
c
urta
il
ment ga
i
n recogn
i
ze
di
n
fi
sca
l
2007 t
h
at resu
l
te
df
rom amen
d
ments to certa
i
no
f
A
lb
ertsons’
d
e
fi
ne
d
benefit pension plans, (c) $23 after-tax char
g
e for the planned disposition of 18 Scott’s stores in fiscal 2007;
(d) $19 after-tax incremental stock option expense related to the Compan
y
’s adoption of SFAS No. 123(R)
i
n fiscal 2007; (e)
$
61 after-tax charge for the sale of Cub Foods stores in Chicago in fiscal 2006; and
(f) $38 after-tax char
g
e for the disposition of Shop ’n Save stores in Pittsbur
g
h in fiscal 2006.
F-
22