Safeway 2011 Annual Report Download - page 73

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note H: Interest Expense
Interest expense consisted of the following (in millions):
2011 2010 2009
Commercial paper $ 1.6 $ 1.6 $ 4.1
Bank credit agreement 2.4 0.8 0.8
Other bank borrowings 0.1 0.1 0.1
Mortgage notes payable 0.7 1.2 1.3
Floating Rate Senior Notes due 2009 –– 1.0
7.50% Senior Notes due 2009 –– 26.3
4.95% Senior Notes due 2010 –15.3 24.8
6.50% Senior Notes due 2011 5.4 32.5 32.5
5.80% Senior Notes due 2012 46.4 46.4 46.4
3.00% Second Series Notes due 2014 6.8 ––
6.25% Senior Notes due 2014 31.3 31.3 31.3
5.625% Senior Notes due 2014 14.1 14.1 14.1
3.40% Senior Notes due 2016 1.0 ––
6.35% Senior Notes due 2017 31.8 31.8 31.8
5.00% Senior Notes due 2019 25.0 25.0 10.2
3.95% Senior Notes due 2020 19.7 8.2 –
4.75% Senior Notes due 2021 1.4 ––
7.45% Senior Debentures due 2027 11.2 11.2 11.2
7.25% Senior Debentures due 2031 43.5 43.5 43.5
Other notes payable 2.1 1.7 2.8
Obligations under capital leases 47.1 50.4 54.1
Amortization of deferred finance costs 5.4 4.8 4.8
Interest rate swap agreements (9.9) (9.4) (0.3)
Amortization of deferred gain on swap termination –(1.0) (1.6)
Capitalized interest (14.9) (11.0) (7.5)
$272.2 $298.5 $331.7
Note I: Capital Stock
Shares Authorized and Issued Authorized preferred stock consists of 25 million shares, of which none were
outstanding during 2011, 2010 or 2009. Authorized common stock consists of 1.5 billion shares at $0.01 par value per
share. Common stock outstanding at year-end 2011 was 296.6 million shares (net of 307.9 million shares of treasury
stock) and 368.0 million shares at year-end 2010 (net of 231.8 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 remains 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”) and the 2011
Equity and Incentive Award Plan (the “2011 Plan”), discussed below, succeed the 1999 Plan.
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