Safeway 2011 Annual Report Download - page 91

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following table presents information about the Company by geographic area (in millions):
U.S. Canada Total
2011
Sales and other revenue $ 36,923.2 $ 6,707.0 $ 43,630.2
Operating profit 745.5 389.1 1,134.6
Income before income taxes 500.3 381.8 882.1
Long-lived assets, net 8,456.2 1,181.4 9,637.6
Total assets 12,982.1 2,091.5 15,073.6
2010
Sales and other revenue $ 34,782.4 $ 6,267.6 $ 41,050.0
Operating profit 828.8 330.6 1,159.4
Income before income taxes 549.6 331.6 881.2
Long-lived assets, net 8,607.2 1,303.0 9,910.2
Total assets 12,448.7 2,699.4 15,148.1
2009
Sales and other revenue $ 34,980.3 $ 5,870.4 $ 40,850.7
Operating (loss) profit (1) (992.8) 364.1 (628.7)
(Loss) income before income taxes (1) (1,315.6) 362.3 (953.3)
Long-lived assets, net 8,945.6 1,337.1 10,282.7
Total assets 12,611.3 2,352.3 14,963.6
(1) 2009 includes a pre-tax goodwill impairment charge of $1,974.2 million in the U.S. See Note B.
The following table presents sales revenue by type of similar product (dollars in millions):
2011 2010 2009
Amount % of total Amount % of total Amount % of total
Non-perishables (1) $17,512.9 40.1% $17,364.4 42.3% $17,854.4 43.7%
Perishables (2) 15,899.6 36.5% 15,430.8 37.6% 15,328.6 37.5%
Pharmacy 3,874.8 8.9% 3,881.0 9.4% 3,835.3 9.4%
Fuel 4,596.6 10.5% 3,187.9 7.8% 2,688.7 6.6%
Other (3) 1,746.3 4.0% 1,185.9 2.9% 1,143.7 2.8%
Total sales and other revenue $43,630.2 100.0% $41,050.0 100.0% $40,850.7 100.0%
(1) Consists primarily of grocery, soft drinks and other beverages, general merchandise, meal ingredients, frozen foods and snacks.
(2) Consists primarily of produce, meat, dairy, bakery, deli, floral and seafood.
(3) Consists primarily of wholesale sales, commissions on gift cards and other revenue. Prior to 2011, Safeway recorded Blackhawk
Network distribution commissions on the sale of certain gift cards, net of commissions shared with other retailers. In the first quarter
of 2011, Safeway determined that these commissions should be reported on a gross basis. This change increased both revenue and
cost of goods sold in fiscal 2011 by $413.5 million but had no impact on identical-store sales, gross profit dollars or net income.
Previously reported results are not adjusted because the impact is immaterial.
Note O: Income (Loss) Per Share
Beginning in the third quarter of 2011, the Company computes earnings per share under the two-class method, which is
a method of computing earnings per share when an entity has both common stock and participating securities. Unvested
restricted stock is considered a participating security because it contains rights to receive nonforfeitable dividends at the
same rate as common stock. Under the two-class method, the calculation of basic and diluted earnings per common
share excludes the income attributable to participating securities. Additionally, the weighted average shares outstanding
exclude the impact of participating securities.
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