Safeway 2006 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2006 Safeway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 93

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93

SAFEWAY INC. AND SUBSIDIARIES
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K for Safeway Inc. (“Safeway” or the “Company”) contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The Company also provides forward-looking statements in other materials which are released
to the public as well as oral forward-looking statements.Forward-looking statements contain information about our
future operating or financial performance. Forward-looking statements are based on our current expectations and
involve risks and uncertainties, which may be beyond our control, as well as assumptions. If assumptions prove to be
incorrect or if known or unknown risks and uncertainties materialize into actual events or circumstances, actual results
could differ materially from those included in or contemplated or implied by these statements. Forward-looking
statements do not strictly relate to historic or current facts. Forward-looking statements are indicated by words or
phrases such as “continuing,” “on-going,” “expects,” “estimates,” “anticipates,” “believes,” “guidance” and similar
words or phrases and the negative of such words or phrases.
This Annual Report on Form 10-K includes forward-looking statements relating to, among other things, dividend
payments on common stock; expansion of product lines; the amount, timing of the receipt and use of state income
tax refunds and interest thereon; the utilization of net operating loss carryforwards; efforts to revitalize operations in
certain markets; defenses to legal proceedings; the effect of new accounting standards; the timing and volume of
repurchases of common stock; pension plan contributions; and Lifestyle stores. The following are among the principal
factors that could cause actual results to differ materially from those included in or contemplated or implied by the
forward-looking statements:
• General business and economic conditions in our operating regions, including consumer spending levels, currency
valuations, population, employment and job growth in our markets;
• Pricing pressures and competitive factors, which could include pricing strategies, store openings, remodels or
acquisitions by our competitors;
• Results of our programs to control or reduce costs, improve buying practices and control shrink;
• Results of our programs to increase sales;
• Results of our efforts to revitalize corporate brands;
• Results of our programs to improve our perishables departments;
• Results of our promotional programs;
• Results of our programs to improve capital management;
• Results of any on-going litigation in which we are involved or any litigation in which we may become involved;
• The ability to achieve satisfactory operating results in all geographic areas where we operate;
• Changes in the financial performance of our equity investments;
• Labor costs, including benefit plan costs and severance payments, or labor disputes that may arise from time to
time and work stoppages that could occur in areas where certain collective bargaining agreements have expired
or are on indefinite extensions or are scheduled to expire in the near future;
• Failure to fully realize or delay in realizing growth prospects for new business ventures, including Blackhawk
Network Holdings, Inc. (“Blackhawk”);
• Legislative, regulatory, tax or judicial developments, including with respect to Blackhawk;
• The cost and stability of fuel, energy and other power sources;
• Unanticipated events or changes in real estate matters, including acquisitions, dispositions and impairments;
• Adverse weather conditions;
• Performance in new business ventures or other opportunities that we pursue, including Blackhawk;
• The capital investment in and financial results from our Lifestyle stores;
• The rate of return on our pension assets; and
• The availability and terms of financing.
We undertake no obligation to update forward-looking statements to reflect new information, events or
developments after the date hereof. For additional information regarding these risks and uncertainties, see “Item 1A.
Risk Factors.” These are not intended to be a discussion of all potential risks or uncertainties, as it is not possible to
predict or identify all risk factors.
4