Safeway 2009 Annual Report Download - page 6

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L E T T E R T O S T O C K H O L D E R S
Our results for the year underscore our ability
to successfully weather a tough economic
environment while generating record levels of free
cash flow. The clouds of the recession have not
yet lifted, but we have laid the groundwork for
future growth and positioned our company well for
the years ahead.
In 2009:
•
We had a net loss of $1,097.5 million ($2.66 per
diluted share), including a non-cash goodwill
impairment charge of $1,818.2 million, net of tax
($4.40 per diluted share). Excluding the non-cash
goodwill impairment charge, net income would
have been $720.7 million ($1.74 per diluted share)
for the 52-week year, as compared with $965.3
million ($2.21 per diluted share) in the 53-week
year 2008.
1
The goodwill impairment was due
primarily to Safeway’s reduced market capit-
alization and a weak economy.
•
We generated free cash flow of $1.5 billion,
1
the
highest in the company’s history, and returned
cash to our stockholders through $885 million in
stock repurchases and $153 million in dividends.
We also reduced our debt by $598 million.
• Total sales in 2009 were $40.9 billion compared
with $44.1 billion in 2008, largely as a result of
lower fuel sales, lower identical-store sales and
P A G E F O U R
S A F E W A Y I N C . • • 2 0 0 9 A N N U A L R E P O R T
Dear Fellow Stockholders,