Safeway 2009 Annual Report Download - page 73

SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note H: Interest Expense
Interest expense consisted of the following (in millions):
2009 2008 2007
Commercial paper $ 4.1 $ 16.3 $ 15.8
Bank credit agreement 0.8 1.2 1.6
Other bank borrowings 0.1 2.2 1.8
Mortgage notes payable 1.3 1.5 1.5
4.80% Senior Notes –– 12.5
7.00% Senior Notes ––12.5
4.125% Senior Notes –10.2 12.4
4.45% Senior Notes –11.3 12.5
6.50% Senior Notes –14.0 16.3
Floating Rate Senior Notes 1.0 9.8 14.3
7.50% Senior Notes 26.3 37.5 37.5
4.95% Senior Notes 24.8 24.8 24.8
6.50% Senior Notes 32.5 32.5 32.5
5.80% Senior Notes 46.4 46.4 46.4
6.25% Senior Notes 31.3 1.1 –
5.625% Senior Notes 14.1 14.1 14.1
6.35% Senior Notes 31.8 31.8 11.8
5.00% Senior Notes 10.2 ––
7.45% Senior Debentures 11.2 11.2 11.2
7.25% Senior Debentures 43.5 43.5 43.5
9.875% Senior Subordinated Debentures –– 0.5
Other notes payable 2.8 1.3 0.8
Obligations under capital leases 54.1 59.2 62.4
Amortization of deferred finance costs 4.8 5.1 5.3
Interest rate swap agreements (0.3) 0.8 12.9
Amortization of deferred gain on swap termination (1.6) (4.9) –
Capitalized interest (7.5) (12.2) (16.0)
$ 331.7 $ 358.7 $ 388.9
Note I: Capital Stock
Shares Authorized and Issued Authorized preferred stock consists of 25 million shares, of which none were
outstanding during 2009, 2008 or 2007. Authorized common stock consists of 1.5 billion shares at $0.01 par value per
share. Common stock outstanding at year-end 2009 was 388.3 million shares (net of 204.3 million shares of treasury
stock) and 428.9 million shares at year-end 2008 (net of 161.8 million shares of treasury stock).
Stock Option Plans Under Safeway’s stock option plans, the Company may grant incentive and non-qualified options
to purchase common stock at an exercise price equal to or greater than the fair market value at the grant date, as
determined by the Executive Compensation Committee of the Board of Directors. Options generally vest over five or
seven years. Vested options are exercisable in part or in full at any time prior to the expiration date of six to 15 years from
the date of the grant.
1999 Amended and Restated Equity Participation Plan Under the 1999 Amended and Restated Equity Participation
Plan (the “1999 Plan”), options generally vest over five or seven years. Although the 1999 Plan will remain in full force
and effect, there will be no more grants under this plan. Vested options are exercisable in part or in full at any time prior
to the expiration date of six to 15 years from the date of the grant. Shares issued, as a result of stock option exercises,
will be funded with the issuance of new shares. The 2007 Equity and Incentive Award Plan (the “2007 Plan”), discussed
below, succeeds the 1999 Plan.
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