Safeway 2012 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2012 Safeway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

SAFEWAY INC. AND SUBSIDIARIES
29
Free cash flow provides information regarding the cash that the Company’s business generates, which
management believes is useful to understanding the Company’s business. Free cash flow is also a useful
indicator of Safeway’s ability to service debt and fund share repurchases that management believes will
enhance stockholder value.
This non-U.S. GAAP financial measure should not be considered as an alternative to net cash flow from
operating activities or other increases and decreases in cash as shown on our Consolidated Statements of
Cash Flows as a measure of liquidity. Non-U.S. GAAP financial measures have limitations as analytical tools,
and they should not be considered in isolation or as substitutes for analysis of the Company’s results as
reported under U.S. GAAP. Other companies in the Company’s industry may calculate free cash flow
differently, limiting its usefulness as a comparative measure. Because of these limitations, free cash flow
should not be considered as a measure of discretionary cash available to us to invest in the growth of our
business.
Bank Credit Agreement and Term Loan Agreement Information about the Company’s bank credit
agreement and term loan agreement appear in Note D to the consolidated financial statements set forth in
Part II, Item 8 of this report.