Albertsons 2009 Annual Report Download - page 67

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Compensation Expense
The components of pre-tax stock-based compensation expense (included primarily in Selling and administra-
tive expenses in the Consolidated Statements of Earnings) and related tax benefits were as follows:
2009 2008 2007
Stock-based compensation $ 44 $ 52 $ 43
Income tax benefits (17) (20) (17)
Stock-based compensation (net of tax) $ 27 $ 32 $ 26
The Company realized excess tax benefits of $1, $20 and $22 related to the exercise of stock-based awards
during fiscal 2009, 2008 and 2007, respectively.
Unrecognized Compensation Expense
As of February 28, 2009, there was $41 of unrecognized compensation expense related to unvested stock-
based awards granted under the Company’s stock plans. The expense is expected to be recognized over a
weighted average remaining vesting period of approximately two years.
NOTE 11—TREASURY STOCK PURCHASE PROGRAM
On May 28, 2008, the Board of Directors of the Company adopted and announced a new annual share
repurchase program authorizing the Company to purchase up to $70 of the Company’s common stock. Stock
purchases will be made from the cash generated from the settlement of stock options. This annual
authorization program replaced all existing share repurchase programs and continues through June 2009.
During fiscal 2009 the Company purchased 0.6 shares under this program at an average cost of $25.88 per
share. As of February 28, 2009, there remained approximately $53 available to repurchase the Company’s
common stock.
During fiscal 2009, 2008 and 2007, the Company purchased 0.2 shares, 5 shares and 8 shares, respectively,
under former share repurchase programs.
NOTE 12—NET EARNINGS (LOSS) PER SHARE
The following table reflects the calculation of basic and diluted net earnings (loss) per share:
2009 2008 2007
Net earnings (loss) per share—basic:
Net earnings (loss) $(2,855) $ 593 $ 452
Deduct: undistributed net earnings allocable to contingently convertible
debentures — (2) —
Net earnings (loss) available to common stockholders $(2,855) $ 591 $ 452
Weighted average shares outstanding—basic 211 211 189
Net earnings (loss) per share—basic $(13.51) $2.80 $2.38
Net earnings (loss) per share—diluted:
Net earnings (loss) $(2,855) $ 593 $ 452
Interest related to dilutive contingently convertible debentures, net of tax — 1 3
Net earnings (loss) used for diluted net earnings per share calculation $(2,855) $ 594 $ 455
Weighted average shares outstanding—basic 211 211 189
Dilutive impact of options and restricted stock outstanding — 3 3
Dilutive impact of convertible securities — 1 4
Weighted average shares outstanding—diluted 211 215 196
Net earnings (loss) per share—diluted $(13.51) $2.76 $2.32
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