Albertsons 2008 Annual Report Download - page 95

SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
A summary of changes in the Company’s unrecognized tax benefits during fiscal 2008 is as follows:
2008
Beginning balance $ 312
Increase based on tax positions related to the current year 1
Decrease based on tax positions related to the current year (2)
Increase based on tax positions related to prior years 18
Decrease based on tax positions related to prior years (180)
Decrease due to lapse of statute of limitations (3)
Ending balance $ 146
Included in the balance of unrecognized tax benefits at February 23, 2008 are tax positions of $29 (net of tax)
that would reduce the Company’s effective tax rate, if recognized in future periods.
The Company expects to resolve $5, net, of unrecognized tax benefits within the next 12 months, representing
several individually insignificant income tax positions. These unrecognized tax benefits represent items in which
the Company may not prevail with certain taxing authorities, based on varying interpretations of the applicable
tax law. The Company is currently in various stages of audits, appeals or other methods of review with taxing
authorities from various taxing jurisdictions. The resolution of these unrecognized tax benefits would occur as a
result of potential settlements from these negotiations. Based on the information available on February 23, 2008,
the Company does not anticipate significant additional changes to its unrecognized tax benefits.
The Company recognizes interest accrued related to unrecognized tax benefits in Interest expense and penalties
in Selling and administrative expenses in the Consolidated Statements of Earnings. During fiscal 2008, the
Company recognized $14 in interest and penalties. As of February 23, 2008, the Company had, in addition to the
liability for unrecognized tax benefits, a total liability of $42 related to accrued interest and penalties for
uncertain tax positions recorded in Other current liabilities and Other liabilities in the Consolidated Balance
Sheets.
The Company is currently under examination or other methods of review in several tax jurisdictions and remains
subject to examination until the statute of limitations expires for the respective taxing jurisdiction or an
agreement is reached between the taxing jurisdiction and the Company. As of February 23, 2008, the Company is
no longer subject to federal income tax examinations for fiscal years before 2002 and with few exceptions is no
longer subject to state income tax examinations for fiscal years before 2004.
NOTE 11—STOCK-BASED AWARDS
The Company has stock options and restricted stock awards (collectively referred to as “stock-based awards”)
outstanding under the following plans: 2007 Stock Plan, 2002 Stock Plan, 1997 Stock Plan, 1993 Stock Plan,
1983 Employee Stock Option Plan, SUPERVALU/Richfood Stock Incentive Plan, Albertsons Amended and
Restated 1995 Stock-Based Incentive Plan and the Albertsons 2004 Equity and Performance Incentive Plan. The
Company’s 2007 Stock Plan, as approved by stockholders in May 2007, is the only plan under which stock-based
awards may be granted. The 2007 Stock Plan provides that the Board of Directors or the Executive Personnel and
Compensation Committee of the Board (the “Compensation Committee”) may determine at the time of grant
whether each stock-based award granted will be a non-qualified or incentive stock based award under the Internal
Revenue Code of 1986, as amended (the “Internal Revenue Code”). The terms of each stock-based award will be
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