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¶ … Income Statement
Vertical2011
Vertical 2010
Horizontal
Sales
Other Revenue
Total
Less
Cost of Goods Sold
Operation & Admin Expenses
Income Tax
Interest Expense
Total
Net Income
Because of economic decline and uncertainties of unemployment, energy prices, etc. 2010 was in over deflation and 2011 had an overall inflation (2011 Annual Report, 2011). Income tax increased in 2011 due to repatriation taxes on dividends from a Canadian subsidiary.
Balance Sheet
Vertical 2011
Vertical 2010
Horizontal
Cash & equivalent
Receivables
Inventories
Prepaid Expenses
Total
Property'
Depreciation & Amortization
-71.30%
-68.20%
Goodwill
Invest. Unconsolidated affiliate
Other Assets
Total Assets
Cur. Note Maturities
Cur. Cap. Lease Obligation
Accounts Payable
Accrued Sal. & Wages
3.30%
3.10%
6.80%
Deferred Income Tax
0.40%
0.60%
36.40%
Other Accrued Liabilities
4.80%
4.50%
5.80%
Total Current Liability
33.40%
28.50%
16.80%
Long-term Notes
27.60%
5.60%
8.40%
Cap. Lease Obligation
2.70%
3.00%
11.30%
Deferred Income Tax
0.90%
1.00%
7.60%
Pension Obligation
6.00%
4.80%
24.30%
Accrued Claims
4.80%
4.30%
11.50%
Total Liability
75.50%
67.00%
12.20%
Common Stock
0%
0%
0.00%
Add Paid Capital
29.60%
28.80%
2.30%
Treasury Stock
-52.20%
-41.50%
25.30%
Other Comprehensive Income
-0.40%
0.60%
Retained Earnings
47.40%
45.00%
4.80%
Total Equity
24.40%
40.00%
26.20%
Non-controlling Inter.
0%
0%
36.40%
Total Equity & Liabilities
0.50%
Other assets are inflated, probably...
Current Note Maturities are inflated, due to long-term debt coming due and more borrowing during the year. The company had an early adoption of accounting standards ASU 2011-05 causing adjustments to other comprehensive income and net income, which is probably where the added deferred taxes come into play.
Statement Of Cash Flow
Horizontal
Operating Activities
Net Income
29.20%
Depreciation Expense
1.20%
Property Impairment
37.70%
Share-Based Compensation
9.90%
Excess Tax Benefits
12.50%
LIFO Expense
Equity in Affiliate
15.00%
Pension Expense
8.70%
Contribution to Pensions
Property disposition
Accrued Claims
35.90%
Deferred Income Tax
Amort. Deferred Finance Cost
12.50%
Other
Total
11.20%
Investing Activities
Cash paid for property additions
30.70%
Proceeds from Property Sale
Other
57.00%
Total
27.00%
Financing Activities
Pay/add short-term borrow
Add Long-term borrow
Pay Long-term borrow
80.30%
Purchasing Treasury Stock
Dividends Paid
12%
Proceeds Stock Exercise
37.30%
Excess tax benefits-stock
12.50%
Pay debt issue costs
Other
17.60%
Total
Effects of Exchange Rate
23.30%
Cash Beginning Year
65.20%
Cash End of Year
6.30%
There was an increase in long-term borrowing for new stores and a higher debt issuance. Pension expense was higher due to pension liabilities being greater than pension assets and higher actuarial losses. The company made higher contributions to the pension plans. There was an interest rate fluctuation with uncertainty in the economies. The housing market was also in decline causing sale of property to be of less value and then raising later.
Ratios
2011
2010
Current
0.83
0.98
Quick
0.31
0.35
Current Cash Debt Coverage
0.43
0.4
Profit Margin
0.01
0.01
Rate of Return on Assets
0.03
0.04
Rate of Return Common…
Bibliography
Analyze Investments Quickly With Ratios. (2006, Dec 1). Retrieved from Investopedia: http://www.investopedia.com/articles/stocks/06/ratios.asp#axzzlvpb34qrt
2011 Annual Report. (2011). Retrieved from Safeway: http://216.139.227.101/interactive/swy/2011/2010
Kieso, D.E. (2008). Intermediate Accounting I, II, & III. Hoboken, NJ: John Wiley & Sons, Inc.
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