ACCELERATED SHARE REPURCHASE PROGRAM

6 Months Ended

Jul. 16, 2016

Equity [Abstract]

ACCELERATED SHARE REPURCHASE PROGRAM

18. ACCELERATED SHARE REPURCHASE PROGRAM

On March 16, 2016, the company announced that we entered into an accelerated share repurchase program (“ASR”) agreement to repurchase an aggregate of $120.0 million of the company’s common stock.  Under the terms of the ASR, the company paid $120.0 million in cash and received an initial delivery of 5.6 million shares immediately.  The final number of shares repurchased was based on the daily volume-weighted average stock price over the life of the transaction, less a negotiated discount.  During the second quarter of fiscal 2016, a total of 0.9 million shares were issued to the company at the time of final settlement.  The ASR met all applicable criteria for equity classification and, therefore, was not accounted for as a derivative instrument.  Shares repurchased under the ASR were added to our treasury shares.  The company funded the ASR with borrowings on its credit facility and cash on hand.

During the twenty-eight weeks ended July 16, 2016, 6.9 million shares, at a cost of $126.3 million, of the company’s common stock were repurchased (and settled) under an authorized share repurchase plan and the ASR.  From the inception of the plan through July 16, 2016, 67.8 million shares, at a cost of $630.4 million, have been repurchased.