Safeway 2000 Annual Report Download - page 21
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Please find page 21 of the 2000 Safeway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Safeway Inc. and Subsidiaries
19
ACQUISITION OF DOMINICK’S
SUPERMARKETS, INC. (“DOMINICK’S”)
In November 1998, Safeway acquired all the outstanding
shares of Dominick’s for approximately $1.2 billion in cash
(the “Dominick’s Acquisition”). The Dominick’s Acquisition
was accounted for as a purchase. Safeway funded the
Dominick’s Acquisition, including repayment of approxi-
mately $560 million in debt and lease obligations, with
a combination of bank borrowings and commercial paper.
Dominick’s sales for its last full fiscal year prior to the
acquisition were $2.4 billion.
STOCK REPURCHASE
In October 1999, Safeway announced that its Board of
Directors had authorized a stock repurchase program under
which Safeway may acquire up to $1.0 billion of its com-
mon stock. By the end of 1999, the Company incurred
$651.0 million in short-term debt to repurchase 17.9
million shares of common stock. The Company did not
repurchase any shares in 2000.
RESULTS OF
OPERATIONS
Safeway’s net income was
$1,091.9 million ($2.13
per share) in 2000,
$970.9 million ($1.88
per share) in 1999 and
$806.7 million ($1.59
per share) in 1998.
Safeway’s 2000 income
statement includes
Dominick’s, Carrs’ and
Randall’s operating results
for a full year. Safeway’s
1999 income statement
includes Dominick’s oper-
ating results for a full
ACQUISITION OF GENUARDI’S
FAMILY MARKETS, INC. (“GENUARDI’S”)
In February 2001, Safeway acquired all of the assets of
Genuardi’s for approximately $530 million in cash (the
“Genuardi’s Acquisition”). The Genuardi’s Acquisition will
be accounted for as a purchase and was funded through the
issuance of commercial paper and debentures.
Genuardi’s operates 39 stores in the greater Philadelphia,
Pennsylvania area, including New Jersey and Delaware, and
had annualized sales of approximately $1 billion prior to
the acquisition.
ACQUISITION OF RANDALL’S
FOOD MARKETS, INC. (“RANDALL’S”)
In September 1999, Safeway acquired all of the outstanding
shares of Randall’s in exchange for $1.3 billion consisting of
$754 million of cash and 12.7 million shares of Safeway
stock (the “Randall’s Acquisition”). On the acquisition date
Randall’s operated 117 stores in Texas. The Randall’s
Acquisition was accounted for as a purchase. Safeway funded
the cash portion of the acquisition, and subsequent repay-
ment of approximately $403 million of Randall’s debt,
through the issuance of senior notes. Randall’s sales for its
last full fiscal year prior to the acquisition were $2.6 billion.
ACQUISITION OF CARR-GOTTSTEIN
FOODS CO. (“CARRS”)
In April 1999, Safeway acquired of all the outstanding shares
of Carrs for approximately $106 million in cash (the “Carrs
Acquisition”). On the acquisition date, Carrs operated 49
stores. The Carrs Acquisition was accounted for as a pur-
chase. Safeway funded the acquisition, and subsequent
repayment of $239 million of Carrs’ debt, with the issuance
of commercial paper. Carrs’ sales for its last full fiscal year
prior to the acquisition were $602 million.
FINANCIAL REVIEW
98 99 00
NET INCOME
(In millions)
$1,091.9
$970.9
$806.7
$1,200
800
400