Safeway 2012 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 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
30
The computation of Adjusted EBITDA, as defined by the credit agreement, is provided below solely to provide
an understanding of Safeway's compliance with covenants under the credit agreement. Adjusted EBITDA
should not be considered as an alternative to net income or cash flow from operating activities (which are
determined in accordance with U.S. GAAP) and is not being presented as an indicator of operating
performance or a measure of liquidity. Other companies may define Adjusted EBITDA differently and, as a
result, such measures may not be comparable to Safeway’s Adjusted EBITDA (dollars in millions).
52 Weeks
2012
Adjusted EBITDA:
Net income attributable to Safeway Inc. $ 596.5
Add (subtract):
Property impairment charges and tax expense from discontinued operations 27.7
Income taxes 262.2
Interest expense 304.0
Depreciation expense 1,134.3
LIFO expense 0.7
Share-based employee compensation 55.1
Property impairment charges 46.5
Equity in earnings of unconsolidated affiliate (17.5)
Dividend from unconsolidated affiliate 0.7
Total Adjusted EBITDA $ 2,410.2
Adjusted EBITDA as a multiple of interest expense 7.93 x
Minimum Adjusted EBITDA as a multiple of interest expense under bank credit agreement 2.00 x
Total debt at year-end 2012 $ 5,573.7
Less cash and equivalents in excess of $75.0 at December 29, 2012 277.2
Adjusted Debt $ 5,296.5
Adjusted Debt to Adjusted EBITDA 2.20 x
Maximum Adjusted Debt to Adjusted EBITDA under bank credit agreement 3.50 x
Shelf Registration On October 24, 2011, the Company filed a shelf registration statement (the “Shelf”)
with the SEC which permits Safeway to issue an unlimited amount of debt securities and/or common stock.
The Shelf expires on October 24, 2014. The Safeway Board of Directors has authorized issuance of up to
$3.0 billion of securities under the Shelf. As of December 29, 2012, $1.95 billion of securities were available
for issuance under the board’s authorization.
Commercial Paper Information about the Company's commercial paper borrowings appear in Note D to
the consolidated financial statements set forth in Part II, Item 8 of this report.