Safeway 2008 Annual Report Download - page 88

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following table presents sales revenue by type of similar product (dollars in millions):
2008 2007 2006
Amount % of total Amount % of total Amount % of total
Non-perishables (1) $ 19,826.5 45.0% $ 19,178.4 45.4% $ 18,513.0 46.0%
Perishables (2) 16,514.0 37.4% 15,833.9 37.4% 15,067.3 37.5%
Fuel 3,885.2 8.8% 3,487.8 8.2% 3,002.4 7.5%
Pharmacy 3,878.3 8.8% 3,785.9 9.0% 3,602.3 9.0%
Total sales and other revenue $ 44,104.0 100.0% $ 42,286.0 100.0% $ 40,185.0 100.0%
(1) Consists primarily of general merchandise, grocery, meal ingredients, soft drinks and other beverages, snacks and frozen foods.
(2) Consists primarily of produce, dairy, meat, bakery, deli, floral and seafood.
Note M: Computation of Earnings Per Share
(In millions, except per-share amounts) 2008 2007 2006
Diluted Basic Diluted Basic Diluted Basic
Net income $ 965.3 $ 965.3 $ 888.4 $ 888.4 $ 870.6 $ 870.6
Weighted-average common shares
outstanding 433.8 433.8 440.3 440.3 444.9 444.9
Common share equivalents 2.5 5.4 2.9
Weighted-average shares outstanding 436.3 445.7 447.8
Earnings per share $ 2.21 $ 2.23 $ 1.99 $ 2.02 $ 1.94 $ 1.96
Anti-dilutive shares totaling 21.9 million in 2008, 15.0 million in 2007 and 22.3 million in 2006 have been excluded from
diluted weighted-average shares outstanding.
Note N: Guarantees
Safeway has applied the measurement and disclosure provisions of FIN No. 45, “Guarantor’s Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others,” to the Company’s agreements
that contain guarantee and indemnification clauses. FIN No. 45 requires that upon issuance of a guarantee, the guarantor
must disclose and recognize a liability for the fair value of the obligation it assumes under the guarantee. As of January 3,
2009, Safeway did not have any material guarantees.
However, the Company is party to a variety of contractual agreements under which Safeway may be obligated to
indemnify the other party for certain matters. These contracts primarily relate to Safeway’s commercial contracts,
operating leases and other real estate contracts, trademarks, intellectual property, financial agreements and various other
agreements. Under these agreements, the Company may provide certain routine indemnifications relating to
representations and warranties (for example, ownership of assets, environmental or tax indemnifications) or personal
injury matters. The terms of these indemnifications range in duration and may not be explicitly defined. Historically,
Safeway has not made significant payments for these indemnifications. The Company believes that if it were to incur a
loss in any of these matters, the loss would not have a material effect on the Company’s financial condition or results of
operations.
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