Safeway 2009 Annual Report Download - page 47

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SAFEWAY INC. AND SUBSIDIARIES
The computation of Adjusted EBITDA, as defined by the credit agreement, is provided below solely to provide an
understanding of the impact that Adjusted EBITDA has on Safeway’s ability to borrow under the credit agreement.
Adjusted EBITDA should not be considered as an alternative to net income or cash flow from operating activities (which
are determined in accordance with GAAP) and is not being presented as an indicator of operating performance or a
measure of liquidity. Other companies may define Adjusted EBITDA differently and, as a result, such measures may not be
comparable to Safeway’s Adjusted EBITDA (dollars in millions).
52 weeks
2009
Adjusted EBITDA:
Net loss $ (1,097.5)
Add (subtract):
Income taxes 144.2
Interest expense 331.7
Depreciation expense 1,171.2
Goodwill impairment charge 1,974.2
LIFO income (35.2)
Stock option expense 57.4
Property impairment charges 73.7
Equity in earnings of unconsolidated affiliate (8.5)
Dividend received from unconsolidated affiliate 5.8
Total Adjusted EBITDA $ 2,617.0
Adjusted EBITDA as a multiple of interest expense 7.89x
Total debt at year-end 2009 $ 4,901.7
Less cash and equivalents in excess of $75.0 at January 2, 2010 (396.5)
Adjusted Debt $ 4,505.2
Adjusted Debt to Adjusted EBITDA 1.72x
Shelf Registration On December 8, 2008, the Company filed a shelf registration statement (the “Shelf”) with the SEC
which enables Safeway to issue an unlimited amount of debt securities and/or common stock. The Shelf expires on
December 8, 2011. The Safeway Board of Directors has authorized issuance of up to $2.0 billion of securities under the
Shelf.
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