Financial Statements of - Shoppers Drug Mart

SHOPPERS DRUG MART CORPORATION
Notes to the Consolidated Financial Statements
(unaudited)
(in thousands of Canadian dollars, except per share data)
7. EMPLOYEE BENEFITS EXPENSE
Employee benefits expense included in operating and administrative expenses is as follows:
12 Weeks Ended
Note
March 26,
2011
March 27,
2010
Wages and salaries $ 306,209 $ 293,452
Statutory deductions 41,580 39,764
Expenses related to pension and benefits 5,840 5,180
Share-based payment transactions 11 (2,422) 3,071
$ 351,207 $ 341,467
8. DEPRECIATION AND AMORTIZATION EXPENSE
The components of the Company’s depreciation and amortization expense, included in operating and
administrative expenses, are as follows:
12 Weeks Ended
March 26,
2011
March 27,
2010
Property and equipment $ 58,730 $ 42,794
Intangible assets 10,294 9,620
$ 69,024 $ 52,414
These amounts included a net loss on the disposition of property and equipment and intangible assets of
$2,046 and $nil (2010: net gain of $11,297 and $nil), respectively, and an impairment loss on store assets
for property and equipment and intangible assets of $nil and $nil (2010: $738 and $nil), respectively.
9. SHARE CAPITAL
Normal Course Issuer Bid
On February 10, 2011, the Company implemented a normal course issuer bid to repurchase, for
cancellation, up to 8,700,000 of its common shares, representing approximately 4.0% of the Company’s
outstanding common shares. Repurchases will be effected through the facilities of the Toronto Stock
Exchange (the “TSX”) and may take place over a 12-month period ending no later than February 14,
2012. Repurchases will be made at market prices in accordance with the requirements of the TSX.
From February 10, 2011 to March 26, 2011, the Company did not repurchase any of its common shares
for cancellation under the normal course issuer bid.
Dividends
On February 10, 2011, the Company announced that its Board of Directors had declared a dividend of 25
cents per common share, payable April 15, 2011 to shareholders of record as at the close of business on
March 31, 2011. This represented an increase in the Company’s quarterly dividend payments of 11%,
resulting in an annualized dividend of $1.00 per common share (2010: 90 cents per common share).
The following table provides a summary of the dividends declared by the Company:
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