Safeway 2005 Annual Report Download - page 27

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SAFEWAY INC. AND SUBSIDIARIES
7
The table below details changes in the Company’s store base and presents the Company’s cash capital expenditures over the
last five years (dollars in millions):
2005 2004 2003 2002 2001
Total stores at beginning of year 1,802 1,817 1,808 1,773 1,688
Stores opened:
New 11 22 22 51 57
Replacement 10 11 18 24 38
21 33 40 75 95
Stores closed 48 48 31 40 49
Genuardi’s stores acquired −−−−39
Total stores at year-end 1,775 1,802 1,817 1,808 1,773
Remodels completed (1)
Lifestyle remodels 293 92 19 −−
Other remodels 22 23 56 203 255
315 115 75 203 255
Number of fuel stations at year-end 314 311 270 214 152
Total retail square footage at year-end (in
millions) 81.0 82.1 82.6 81.5 78.8
Cash capital expenditures (2) $1,383.5 $1,212.5 $935.8 $1,467.4 $1,793.0
Cash capital expenditures as a percentage of
sales and other revenue 3.6% 3.4% 2.6% 4.2% 5.2%
(1) Defined as store remodel projects (other than maintenance) generally requiring expenditures in excess of $0.2 million.
(2) Excludes acquisitions. Includes 11 former ABCO stores purchased in 2001.
During 2005, Safeway invested $1.4 billion in cash capital expenditures. The Company opened 21 new Lifestyle stores,
remodeled 293 stores to the Lifestyle format and closed 48 stores. The Company also completed 22 other remodels. In
2006, the Company expects to spend approximately $1.6 billion in cash capital expenditures and open approximately 20 to
25 new Lifestyle stores while completing some 280 Lifestyle remodels. At year-end 2005, 26% of Safeway’s store base was
in the Lifestyle format, and the Company expects to have approximately 43% in this format by the end of 2006.
Financial Information about Segments Note L to the consolidated financial statements set forth in Part II, Item 8 of this
report provides financial information about the Company’s segments.
Trade Names and Trademarks Safeway has invested significantly in the development and protection of "Safeway" both
as a trade name and a trademark and considers it to be an important asset. Safeway also owns more than 400 other
trademarks registered and/or pending in the United States Patent and Trademark Office, including trademarks for its product
lines such as Safeway, Safeway SELECT, Rancher’s Reserve, Lucerne and Mrs. Wright's, and other trademarks such as Pak'n
Save Foods, Vons, Pavilions, Dominick’s, Carrs, Randalls, Tom Thumb and Genuardi's. Each trademark registration is for an
initial period of 10 or 20 years, depending on the registration date, and may be renewable so long as it is in continued use in
commerce. Safeway considers certain of its trademarks to be of material importance to its business and actively defends and
enforces its rights. Canada Safeway has also registered numerous trademarks in Canada.
Working Capital At year-end 2005, working capital consisted of $3.7 billion in current assets and $4.3 billion in current
liabilities. Normal operating fluctuations in these substantial balances can result in changes to cash flow from operations