Safeway 2012 Annual Report Download - page 44

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SAFEWAY INC. AND SUBSIDIARIES
32
Stock Repurchase Program From the initiation of the Company’s stock repurchase program in 1999
through the end of fiscal 2012, the aggregate cost of shares of common stock repurchased by the Company,
including commissions, was approximately $8.2 billion, leaving an authorized amount for repurchases of
approximately $0.8 billion. During fiscal 2012, Safeway repurchased approximately 57.6 million shares of
its common stock under the repurchase program at an aggregate price, including commissions, of $1,240.3
million. The average price per share, excluding commissions, was $21.51. The timing and volume of future
repurchases will depend on factors such as Safeway's day-to-day business needs as well as its stock price
and economic and market conditions. Stock repurchases may be affected from time to time through open
market purchases or pursuant to a Rule 10b5-1 plan. The stock repurchase program may be accelerated,
suspended, delayed or discontinued at any time.
Contractual Obligations The table below presents significant contractual obligations of the Company at
year-end 2012 (in millions) (1):
2013 2014 2015 2016 2017 Thereafter Total
Long-term debt (2) $294.0 $1,170.5 $588.2 $ 401.9 $ 501.9 $ 2,169.4 $ 5,125.9
Estimated interest on
long-term debt 235.3 209.4 167.1 164.1 150.4 884.5 1,810.8
Capital lease
obligations (2),(3) 36.2 36.6 38.4 36.0 33.3 267.3 447.8
Interest on capital
leases 39.3 36.3 32.9 30.0 27.0 126.1 291.6
Self-insurance liability 137.4 91.1 59.7 37.4 27.2 127.3 480.1
Interest on self-
insurance liability 0.5 1.0 1.1 1.0 0.9 11.6 16.1
Operating leases (3) 478.8 455.4 403.5 360.2 307.3 2,079.0 4,084.2
Marketing
development funds 44.0 35.8 26.7 12.8 6.9 6.9 133.1
Contracts for purchase
of property,
equipment and
construction of
buildings 272.1 — — —— —272.1
Fixed-price energy
contracts (4) 42.3 20.5 17.1 1.2 1.3 12.8 95.2
Other purchase
obligations 66.5 9.2 2.8 — — — 78.5
Total $ 1,646.4 $2,065.8 $1,337.5 $ 1,044.6 $ 1,056.2 $ 5,684.9 $ 12,835.4
(1) Excludes funding of pension and post-retirement benefit obligations which were $159.5 million in 2012. The Company currently
expects to contribute approximately $94 million to its pension and post-retirement benefit plans in 2013. Also excludes contributions
under various multiemployer pension plans, which totaled $310.0 million in 2012. Additionally, the amount of unrecognized tax
benefits ($119.4 million at December 29, 2012) has been excluded from the contractual obligations table because a reasonably
reliable estimate of the timing of future tax settlements cannot be determined. Purchase orders for inventory are not included in
the above table as they are cancelable by their terms.
(2) Required principal payments only.
(3) Excludes common area maintenance, insurance or tax payments for which the Company is also obligated. In fiscal 2012, these
charges totaled approximately $212.3 million.
(4) See Part II, Item 7A to this report under the caption “Commodity Price Risk.”
Off-Balance Sheet Arrangements
Guarantees The Company is party to a variety of contractual agreements under which it may be obligated
to indemnify the other party for certain matters. These contracts primarily relate to the Company’s commercial