Albertsons 2010 Annual Report Download - page 60

would occur as a result of potential settlements from these negotiations. Based on the information available as
of February 27, 2010, the Company does not anticipate significant additional changes to its unrecognized tax
benefits.
The Company recognized (income) expense related to interest and penalties, net of settlement adjustments, of
$(2), $26 and $14 for fiscal 2010, 2009 and 2008, respectively. In addition to the liability for unrecognized tax
benefits, the Company had a liability of $44 and $67 as of February 27, 2010 and February 28, 2009,
respectively, 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 settled various audits during
fiscal 2010 resulting in payments of $21 for interest and penalties.
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 27, 2010, the
Company is no longer subject to federal income tax examinations for fiscal years before 2007 and with few
exceptions is no longer subject to state income tax examinations for fiscal years before 2004.
NOTE 9—STOCK-BASED AWARDS
As of February 27, 2010, 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, 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 Leadership
Development 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 determined by the Board of Directors or the Compensation Committee.
Generally, stock-based awards granted prior to fiscal 2006 have a term of 10 years and effective in fiscal 2006,
stock-based awards granted will not be for a term of more than seven years.
Stock options are granted to key salaried employees and to the Company’s non-employee directors to purchase
common stock at an exercise price not less than 100 percent of the fair market value of the Company’s
common stock on the date of grant. Generally, stock options vest over four years. Restricted stock awards are
also awarded to key salaried employees. The vesting of restricted stock awards granted is determined at the
discretion of the Board of Directors or the Compensation Committee. The restrictions on the restricted stock
awards generally lapse between one and five years from the date of grant and the expense is recognized over
the lapsing period.
The Company reserved 35 shares for grant as part of the 2007 Stock Plan. As of February 27, 2010, there
were 23 shares available for grant. Common stock is delivered out of treasury stock upon the exercise of
stock-based awards. The provisions of future stock-based awards may change at the discretion of the Board of
Directors or the Compensation Committee.
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