This excerpt taken from the SVU 8-K filed Jan 9, 2007.
General corporate expense for the third quarter was $30 million compared to $16 million last year primarily reflecting pre-tax one-time transaction costs of approximately $16 million and $1 million pre-tax of expense from the adoption of FAS 123R related to stock option expensing. One-time transaction costs primarily include retention bonuses and consultant fees. SUPERVALUs effective tax rate for the third quarter was 38.6 percent in contrast to last years 37.0 percent, reflecting the estimated effective tax rate for fiscal 2007 as a result of the acquisition.
Net interest expense for the third quarter was $183 million compared to $23 million last year reflecting the assumption of debt and new borrowings from the acquisition.
Capital spending for the third quarter was $306 million, including approximately $12 million in capital leases. Capital spending includes retail store expansion, store remodeling and supply chain initiatives.
Total debt to capital was approximately 65 percent at the end of the third quarter compared to approximately 37 percent at fiscal 2006 year-end. The total debt to capital ratio is calculated as total debt, which includes notes payable, current debt and obligations under capital leases, long-term debt and obligations under capital leases, divided by the sum of total debt and total stockholders equity.
Diluted weighted average shares outstanding for the third quarter were 209 million shares compared to 146 million shares last year. The net increase is primarily due to the additional shares issued for the acquisition and issuances under employee benefit programs. In the quarter, approximately 3 million shares were
repurchased at an average price of $30.82 under the companys share repurchase programs. As of December 2, 2006, SUPERVALU had 207 million shares outstanding.