Safeway 1997 Annual Report Download - page 33

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credit ratings of its counterparties, which are limited to major
financial institutions, Safeway does not anticipate nonperfor-
mance by the counterparties.
Since the Company intends to hold these agreements as
hedges for the terms of the agreements, the market risk associ-
ated with changes in interest rates should not be significant.
Note F: Capital Stock
Shares Authorized and Issued Authorized preferred stock consists
of 25 million shares of which none was outstanding during 1997,
1996 or 1995. Authorized common stock consists of 750 million
shares at $0.01 par value. Common stock outstanding at year-end
1997 was 476.2 million shares (net of 61.2 million shares of
treasury stock) and 442.8 million shares at year-end 1996.
Safeway’s stockholders will vote at the 1998 Annual Meeting of
Stockholders on a proposal to increase the authorized shares
of common stock to 1.5 billion shares.
Stock Option Plans Under Safeway’s stock option plans, the
Company may grant incentive and non-qualified options to pur-
chase up to 98 million shares of common stock at an exercise
price equal to or greater than the fair market value at the grant
date, as determined by the Compensation and Stock Option
Committee of the Board of Directors. Options generally vest over
seven years. Vested options are exercisable in part or in full at any
time prior to the expiration date of 10 to 15 years from the date of
the grant. The stock option plans prohibit the transfer of options.
Activity in the Company’s stock option plans for the three-year period ended January 3, 1998 was as follows:
Weighted-Average
Options Exercise Price
Outstanding, year-end 1994 50,626,048 $ 3.09
1995 Activity:
Granted 2,036,360 9.06
Canceled (1,558,648) 3.73
Exercised (6,773,116) 1.93
Outstanding, year-end 1995 44,330,644 3.52
1996 Activity:
Granted 3,991,984 16.65
Canceled (724,454) 5.07
Exercised (8,825,018) 2.04
Outstanding, year-end 1996 38,773,156 5.07
1997 Activity:
Granted 3,981,766 26.25
Converted Vons options 7,578,098 7.34
Canceled (962,522) 10.01
Exercised (8,373,270) 5.06
Outstanding, year-end 1997 40,997,228 7.53
Exercisable, year-end 1996 23,034,640 4.25
Exercisable, year-end 1997 25,887,094 4.75
Weighted-average fair value of options granted during the year:
1996 $ 7.64
1997 $12.43
The following table summarizes stock option information at year-end 1997:
Options Outstanding Options Exercisable
■■
Range of Number Weighted-Average Weighted-Average Number Weighted-Average
Exercise Prices of Options Remaining Contractual Life Exercise Price of Options Exercise Price
$ 0.50 to $ 0.50 2,320,000 7.15 years $ 0.50 2,320,000 $ 0.50
1.46 to 3.09 6,690,430 8.30 2.68 5,296,564 2.67
3.22 to 3.88 8,373,752 8.88 3.32 7,326,096 3.29
3.94 to 6.31 7,495,386 6.65 5.02 5,540,618 4.93
6.34 to 9.67 8,006,774 8.34 7.39 3,727,382 7.52
10.09 to 29.88 8,110,886 9.52 20.37 1,676,434 16.86
■■■■■■■■■■■■■■ ■■■
■■
$ 0.50 to $29.875 40,997,228 8.00 7.53 25,887,094 4.75
■■■ ■■■■ ■■■■■■■■
■■
Options to purchase 15.2 million shares were available for grant at year-end 1997.