Safeway (SWY)

Cash Flow

Net cash flow provided by operating activities was $2,549.7 million in the year 2009 compared to $2,250.9 million in the year 2008. Certain tax items increased cash flow from operating activities in 2009 by approximately $396 million.

Net cash flow used by investing activities declined to $889.0 million in the year 2009 from $1,546.0 million in 2008 because of reduced capital expenditures, partly offset by lower proceeds from the sales of property.

Net cash flow used by financing activities increased to $1,600.3 million in the year 2009 from $594.3 million in 2008 due primarily to a net reduction in borrowings and increased stock repurchases.

Cash Flow

Net cash flow provided by operating activities was $1,287.3 million in the first 36 weeks of 2009. This was essentially flat compared to $1,284.8 million of net cash flow provided by operating activities in the first 36 weeks of 2008.

Net cash flow used by investing activities declined to $627.5 million in the first 36 weeks of 2009 from $980.1 million in the first 36 weeks of 2008 because of reduced capital expenditures, partly offset by lower proceeds from the sale of property.

Net cash flow used by financing activities increased to $677.4 million in the first 36 weeks of 2009 compared to $209.4 million in the first 36 weeks of 2008 due primarily to a net reduction in borrowings and increased stock repurchases.

Cash Flow

Net cash flow provided by operating activities declined to $684.1 million in the first 24 weeks of 2009 from $712.9 million in the first 24 weeks of 2008. This was primarily due to lower pre-tax net income and an increase in cash used by working capital, partly offset by $160 million of income tax refunds.

Net cash flow used by investing activities declined to $461.2 million in the first 24 weeks of 2009 from $657.0 million in the first 24 weeks of 2008 because of reduced capital expenditures partly offset by lower proceeds from the sale of property.

Net cash flow used by financing activities increased to $392.8 million in the first 24 weeks of 2009 compared to $0.8 million in the first 24 weeks of 2008 due primarily to a net reduction in borrowings and increased stock repurchases.

Cash Flow

Net cash flow used by operating activities was $151.0 million in the first quarter of 2009 compared to $41.2 million in the first quarter of 2008. This was primarily due to an increase in cash used by working capital which was the result of a shift in holiday shopping.

Net cash flow used by investing activities declined to $252.8 million in the first quarter of 2009 from $370.7 million in the first quarter of 2008 because of reduced capital expenditures.

Net cash flow provided by financing activities was $131.0 million in the first quarter of 2009 compared to $352.9 million in the first quarter of 2008. Borrowings were less in the first quarter of 2009 compared to the first quarter of 2008 due to reduced capital expenditures.

Cash Flow

Net cash flow from operating activities was $2,250.9 million for the year 2008 compared to $2,190.5 million in 2007.

Net cash flow used by investing activities was $1,546.0 million in 2008 compared to $1,686.4 million in 2007.

Net cash flow used by financing activities was $594.3 million in 2008 compared to $454.0 million in 2007.

Free cash flow increased 62% to $681.0 million in 2008 compared to $420.0 million in 2007.

Cash Flow

Net cash flow from operating activities was $1,284.8 million in the first 36 weeks of 2008 compared to $1,248.0 million in the first 36 weeks of 2007.

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Net cash flow used by investing activities was $980.1 million in the first 36 weeks of 2008 compared to $1,183.2 million in the first 36 weeks of 2007.

Net cash flow used by financing activities was $209.4 million in the first 36 weeks of 2008 compared to $90.3 million in the first 36 weeks of 2007.

Free cash flow increased to $499.3 million in the first 36 weeks of 2008 compared to $206.0 million in the first 36 weeks of 2007.

Cash Flow

Net cash flow from operating activities was $712.9 million in the first 24 weeks of 2008 compared to $652.1 million in the first 24 weeks of 2007.

Net cash flow used by investing activities was $657.0 million in the first 24 weeks of 2008 compared to $692.8 million in the first 24 weeks of 2007.

Net cash flow used by financing activities was $0.8 million in the first 24 weeks of 2008 compared to net cash flow provided by financing activities of $23.4 million in the first 24 weeks of 2007.

Free cash flow increased to $442.0 million in the second quarter of 2008 from $297.5 million in the second quarter of 2007. Free cash flow was $238.0 million in the first 24 weeks of 2008 compared to $66.8 million in the first 24 weeks of 2007.

Cash Flow

Net cash flow used by operating activities was $41.2 million in the first quarter of 2008 compared to net cash flow from operating activities of $19.1 million in the first quarter of 2007.

Net cash flow used by investing activities was $370.7 million in the first quarter of 2008 compared to $391.7 million in the first quarter of 2007.

Net cash flow provided by financing activities was $352.9 million in the first quarter of 2008 compared to $305.7 million in the first quarter of 2007 primarily due to increased borrowings, partly offset by stock repurchases.

Cash Flow

Net cash flow from operating activities was $2,190.5 million in 2007 compared to $2,175.0 million in 2006.

Net cash flow used by investing activities declined slightly to $1,686.4 million in 2007 from $1,734.7 million in 2006. Cash paid for property additions was greater in 2007 than in 2006. However, proceeds from the sale of property were also greater in 2007. In addition Safeway spent $83.8 million to acquire businesses in 2006.

Net cash flow used by financing activities was $454.0 million in 2007 compared to $596.3 million in 2006. In 2007 Safeway paid down $261.3 million of debt, repurchased $226.1 million of common stock, and paid $111.5 million of dividends. In 2006 Safeway paid down $493.1 million of debt, repurchased $318.0 million of common stock, paid $96.0 million in dividends and received $262.3 million in income tax refunds.

Cash Flow

Net cash flow from operating activities was $1,248.0 million in the first 36 weeks of 2007 compared to $1,453.6 million in the first 36 weeks of 2006. Changes in working capital items used cash of $144.1 million in 2007 and provided cash of $82.9 million in 2006.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $1,183.2 million for the first 36 weeks of 2007 compared to $1,097.6 million in 2006.

Financing activities used net cash flow of $90.3 million in the first 36 weeks of 2007. Financing activities used cash of $398.0 million in 2006 primarily due to the higher pay down of maturing long-term debt.

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Cash Flow

Net cash flow from operating activities was $652.1 million in the first 24 weeks of 2007 compared to $742.5 million in the first 24 weeks of 2006. Cash flow in 2006 benefited from a $173 million decline in inventory. Inventory declined in 2007 as well, but only by $66 million.

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Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $692.8 million for the first 24 weeks of 2007 compared to $725.8 million in 2006.

Financing activities provided net cash flow of $23.4 million in the first 24 weeks of 2007. Financing activities used cash of $274.6 million in 2006 primarily due to the higher pay down of maturing long-term debt.

Cash Flow

Net cash flow from operating activities declined to $19.1 million in the first quarter of 2007 from $128.6 million in the first quarter of 2006 primarily due to an increase in inventory and higher payments to partners for the sale of third-party gift cards, partly offset by higher net income and an increase in income tax payable.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $391.7 million for the first quarter of 2007 compared to $414.7 million in 2006.

Financing activities provided net cash flow of $305.7 million in the first quarter of 2007 compared to $24.1 million in the first quarter of 2006 primarily due to an increase in commercial paper borrowings.

Cash Flow

Net cash flow from operating activities increased to $2,175.0 million in 2006 compared to $1,881.0 million in 2005 primarily because of higher net income.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, increased to $1,734.7 million in 2006 from $1,313.5 million in 2005.

Net cash flow used by financing activities was $596.3 million in 2006 compared to $466.9 million in 2005. Safeway paid down $493.1 million of debt in 2006 compared to $444.9 million in 2005 and paid $96.0 million of dividends in 2006 compared to $44.9 million in 2005. The repurchase of $318.0 million of common stock in 2006 was offset by the $262.3 million income tax refund related to prior years’ debt financing and $45.4 million of proceeds from the exercise of stock options.

Cash Flow

Net cash flow from operating activities was $1,453.6 million in the first 36 weeks of 2006 compared to $1,287.4 million in the first 36 weeks of 2005, primarily because of higher net income.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $1,097.6 million for the first 36 weeks of 2006 compared to $835.7 million in 2005. The company incurred higher costs for purchases of land and buildings in the first quarter of 2006. In addition, a portion of the costs associated with the large number of Lifestyle projects completed late in the fourth quarter of 2005 was paid in the first quarter of 2006.

Financing activities used cash flow of $398.0 million in the first 36 weeks of 2006 compared to $386.9 million in 2005. The income tax refund related to prior years’ debt refinancing was offset by pay down of long-term borrowings, stock repurchases and dividends paid.

Cash Flow

Net cash flow from operating activities was $742.5 million in the first 24 weeks of 2006 compared to $671.8 million in the first 24 weeks of 2005. This change was primarily because of higher net income.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $725.8 million for the first 24 weeks of 2006 compared to $484.7 million in 2005. The company had higher purchases of land and buildings in the first quarter of 2006. In addition, a portion of the costs associated with the large number of Lifestyle projects completed late in the fourth quarter of 2005 were paid for in the first quarter of 2006.

Financing activities used cash flow of $274.6 million in the first 24 weeks of 2006 compared to $131.9 million in the first 24 weeks of 2005. This change was primarily because of the stock repurchase of $139.7 million in the second quarter of 2006.

Cash Flow

Net cash flow from operating activities declined to $128.6 million in the first quarter of 2006 from $238.4 million in the first quarter of 2005 because of a decline in accounts payable and accrued liabilities. Accounts payable was a larger use of cash in the first quarter of 2006 compared to 2005.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $414.7 million for the first quarter of 2006 compared to $204.9 million in 2005. The costs of the large number of Lifestyle projects completed late in the fourth quarter of 2005 were paid for in the first quarter of 2006. In addition, the company had higher purchases of land and buildings in the first quarter of 2006.

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Financing activities provided net cash flow of $24.1 million in the first quarter of 2006 and $26.1 million in the first quarter of 2005.

Cash Flow

Net cash flow from operating activities was $1,881.0 million in 2005 compared to $2,226.4 million in 2004. Working capital contributed to cash flow in 2005, but at a lower level than in 2004.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, increased to $1,313.5 million in 2005 from $1,070.3 million in 2004.

Net cash flow used by financing activities, which consists principally of cash used to pay down debt, was $466.9 million in 2005 and $1,077.6 million in 2004.

Free cash flow was $567.5 million in 2005. As a result, debt declined $404.8 million, cash and equivalents increased $106.5 million and the company paid $44.9 million in dividends to its stockholders.

Cash Flow

Net cash flow from operating activities was $1,287.4 million in the first 36 weeks of 2005 compared to $1,526.0 million in the first 36 weeks of 2004. This change was primarily because of higher income tax payments in 2005 and lower prepaid expense in 2004.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $835.7 million for the first 36 weeks of 2005 compared to $646.6 million in 2004.

Financing activities, which consist primarily of cash used to pay down debt, used cash flow of $386.9 million in the first 36 weeks of 2005 compared to $577.2 million in 2004.

Free cash flow was $451.7 million in the first 36 weeks of 2005. As a result, total debt declined $364.5 million and cash and equivalents increased $68.7 million.

Cash Flow

Net cash flow from operating activities was $671.8 million in the first 24 weeks of 2005 compared to $1,047.7 million in the first 24 weeks of 2004. This change was primarily because of higher income tax payments in 2005 and lower prepaid expense and receivables in 2004.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $484.7 million for the first 24 weeks of 2005 compared to $432.1 million in 2004.

Financing activities, which consist primarily of cash used to pay down debt, used cash flow of $131.9 million in the first 24 weeks of 2005 compared to $576.4 million in 2004.

Cash Flow

Net cash flow from operating activities declined to $238.4 million in the first quarter of 2005 from $388.1 million in the first quarter of 2004. Accounts payable typically is a large use of cash in the first quarter of each year. However, in the first quarter of 2004 Safeway significantly improved its management of trade payables creating a large source

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of cash. Trade payables continued to improve in the first quarter of 2005, though not as much as in 2004. Additionally, tax payments in the first quarter of 2005 were higher than in the first quarter of 2004 due to higher pre-tax income.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, was $204.9 million for the first quarter of 2005 compared to $205.9 million in 2004.

Financing activities provided net cash flow of $26.1 million in the first quarter of 2005 and used net cash flow of $177.7 million in the first quarter of 2004.

Cash Flow

Net cash flow from operating activities increased to $2,226.4 million in 2004 from $1,609.6 million in 2003.

Net cash flow used by investing activities, which consists principally of cash paid for property additions, increased to $1,070.3 million for 2004 compared to $795.0 million in 2003.

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Net cash flow used by financing activities, which consists principally of cash used to pay down debt, was $1,077.6 million in 2004 and $724.0 million in 2003. Total debt declined by $1.1 billion to $6.7 billion in 2004 from $7.8 billion in 2003.