Albertsons 2011 Annual Report Download - page 58

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Compensation Expense
The components of pre-tax stock-based compensation expense (included primarily in Selling and
administrative expenses in the Consolidated Statements of Earnings) and related tax benefits were as follows:
2011 2010 2009
Stock-based compensation $ 15 $ 31 $ 44
Income tax benefits (6) (12) (17)
Stock-based compensation (net of tax) $ 9 $ 19 $ 27
The Company realized excess tax benefits (shortfalls) of $(2), $(1), and $1 related to stock-based awards
during fiscal 2011, 2010 and 2009, respectively.
Unrecognized Compensation Expense
As of February 26, 2011, there was $21 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 10—TREASURY STOCK PURCHASE PROGRAM
On June 24, 2010, the Board of Directors of the Company adopted and announced a new annual share
purchase program authorizing the Company to purchase up to $70 of the Company’s common stock. Stock
purchases will be made primarily from the cash generated from the settlement of stock options. This annual
authorization program replaced the previously existing share purchase program and continues through June
2011. As of February 26, 2011, there remained $70 available to repurchase the Company’s common stock.
During fiscal 2011, the Company purchased 0.2 shares under the previously existing share purchase program
at an average cost of $12.97 per share. The Company did not purchase any shares during fiscal 2010. During
2009 the Company purchased 0.2 shares under former share repurchase programs.
NOTE 11—NET EARNINGS (LOSS) PER SHARE
The following table reflects the calculation of basic and diluted net earnings (loss) per share:
2011 2010 2009
Net earnings (loss) per share—basic:
Net earnings (loss) $ (1,510) $ 393 $ (2,855)
Deduct: undistributed net earnings allocable to contingently
convertible debentures — — —
Net earnings (loss) available to common stockholders $ (1,510) $ 393 $ (2,855)
Weighted average shares outstanding—basic 212 212 211
Net earnings (loss) per share—basic $ (7.13) $ 1.86 $ (13.51)
Net earnings (loss) per share—diluted:
Net earnings (loss) $ (1,510) $ 393 $ (2,855)
Interest related to dilutive contingently convertible debentures, net
of tax — 1 —
Net earnings (loss) used for diluted net earnings per share
calculation $ (1,510) $ 394 $ (2,855)
Weighted average shares outstanding—basic 212 212 211
Dilutive impact of options and restricted stock outstanding — 1 —
Dilutive impact of convertible securities — — —
Weighted average shares outstanding—diluted 212 213 211
Net earnings (loss) per share—diluted $ (7.13) $ 1.85 $ (13.51)
54