Safeway 1999 Annual Report Download - page 40

Note L: Segments
Safeway’s retail grocery business, which represents more than 98% of consolidated sales and operates in the United States
and Canada, is its only reportable segment.
The following table presents information about the Company by geographic area (in millions):
U.S. Canada Total
1999
Sales $ 25,5 35.3 $ 3 ,324 .6 $ 28 ,859 .9
Operating profit 1,815.4 182 .5 1,997.9
Income before income taxes 1 ,499.0 175.0 1,674.0
Total assets 13 ,960.2 940.1 14,900.3
1998
Sales $ 21,241.7 $ 3,242.5 $ 24,484.2
Operating profit 1,467.3 134.4 1,601.7
Income before income taxes 1,272.3 124.6 1,396.9
Total assets 10,541.9 847.7 11,389.6
1997
Sales $ 19,075.9 $ 3,407.9 $ 22,483.8
Operating profit 1,169.6 110.1 1,279.7
Income before income taxes and extraordinary loss 978.4 97.9 1,076.3
Total assets 7,613.7 880.2 8,493.9
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In April 1999, a lawsuit entitled Sanders, et al. v. Lucky
Stores, Inc., et al. was filed in the California Superior Court,
San Francisco County, against the Company and five other
retail grocery store operations. The complaint alleges,
among other things, that the Company conspired with the
other defendants to fix the retail price of milk in six San
Francisco Bay Area counties in violation of the California
Cartwright Act and the California Unfair Competition Act.
The plaintiffs purport to bring the lawsuit as a class action
on behalf of all persons who reside, and who purchased
milk from the defendants, in the Bay Area counties from
April 1995 to the present. The complaint seeks unspeci-
fied damages, an injunction enjoining the defendants from
fixing the price of milk and restitution of profits earned
through the allegedly unlawful practices. If damages were
to be awarded, they may be trebled under the applicable
statute. On November 5, 1999, the defendants filed a
motion for summary judgment. Subsequently, plaintiffs
began entering into settlement agreements with various
defendants. On February 9, 2000, plaintiffs and the
Company agreed in principle to a settlement whereby the
action would be dismissed and the Company, without
admitting liability, would pay $15,000 in cash and make
$17,500 worth of product donations to local food banks.
The settlement agreement must be documented and sub-
mitted to the court for approval.
Commitments The Company has commitments under
contracts for the purchase of property and equipment and
for the construction of buildings. Portions of such contracts
not completed at year-end are not reflected in the consoli-
dated financial statements. These unrecorded commitments
were $94.2 million at year-end 1999.