Safeway 2013 Annual Report Download - page 24

Table of Contents

Financial information for discontinued operations is shown below (in millions):

2012
2011
Sales and other revenue:
CSL (1) 
$6,695.8
$6,726.9
Dominick's 
1,465.2
1,568.6
Total 
$8,161.0
$8,295.5
Income (loss) from discontinued operations, before income taxes:
CSL (1) 
$442.3
$462.3
Dominick's 
(50.4)
(38.7)
Total 
$391.9
$423.6
Gain (loss) on sale or disposal of operations, net of lease exit costs, before income
taxes:
CSL (2) 
$ —
$ —
Dominick's 
—
—
Genuardi's 
52.4
—
Total 
$52.4
$ —
Total income from discontinued operations before income taxes 
$444.3
$423.6
Income taxes on discontinued operations 
(140.8)
(272.6)
Income from discontinued operations, net of tax 
$303.5
$151.0
(1) For CSL, 2013 reflects 44 weeks of activity compared to 52 weeks in 2012 and 2011.
(2) In accordance with ASU No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups
of Assets within a Foreign Entity or of an Investment in a Foreign Entity," the Company transferred the cumulative translation adjustment relating to Canadian
operations from Accumulated Other Comprehensive Loss on the balance sheet to gain on the Sale of Canadian Operations.
Historical financial information for CSL and Dominick's presented in the consolidated income statements has been reclassified to
discontinued operations to conform to current-year presentation. The historical operating results of Genuardi's stores have not been reflected
in discontinued operations because the historical financial operating results were not material to the Company's consolidated financial
statements for all periods presented. The disclosures in this Management's Discussion and Analysis focus on continuing operations, unless
otherwise noted. See Note B to the consolidated financial statements set forth in Part II, Item 8 of this report for additional information on
Discontinued Operations.
Initial Public Offering ("IPO") of Blackhawk
On April 24, 2013, Blackhawk, a Safeway subsidiary, completed its initial public offering of 11.5 million shares of its Class A common stock
at $23.00 per share on the NASDAQ Global Select Market, which included the exercise by the underwriters for the offering of an option to
purchase 1.5 million shares of Class A common stock. The offering consisted solely of shares offered by existing stockholders, including
Safeway. As part of the IPO, Safeway sold 11.3 million shares of Class A common stock of Blackhawk for proceeds of $243.6 million
($238.0 million, net of professional service fees), reducing the Company's ownership from approximately 95% to approximately 73% of
Blackhawk's total outstanding shares of common stock. As of December 28, 2013, Safeway owned 37.8 million shares, or approximately
72.2%, of Blackhawk, which the Company plans to distribute to its stockholders.
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