Safeway 2007 Annual Report Download

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TWO THOUSAND & SEVEN
ANNUAL REPORT

Table of contents

  • Page 1
    T WO T HOUS A N D & SE V E N A N N UA L R EP ORT

  • Page 2
    Five years ago We set out to reinvent the shopping experience. Focusing on the consumer, we are continually revitalizing our marketing plans, rejuvenating our store system and reinvigorating our corporate brand products.

  • Page 3

  • Page 4
    S A F E WAY I N C . 2

  • Page 5
    ... and drug retailers in North America. As of December 29, 2007, the company operated 1,743 stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States and in western Canada. In support of its stores, Safeway has an extensive network of distribution...

  • Page 6
    ... our strategy, we achieved strong earnings growth in 2007 driven by steady sales gains and operating and administrative expense leverage. F I N A N C I A L H IGH L IGH T S For the year (dollars in millions, except per-share amounts) Sales and other revenue Gross profit Operating profit Net...

  • Page 7
    2007 A N N UA L R E P O R T 42 $ 888 1,743 329 250 $ 5 B I L L I O N I N TOTA L S A L ES MILLION IN NET INCOME S TO R ES I N O PE R AT I O N O O R G A N I C S â„¢ PR O D U C T S + G I F T CA R D PA R T N E R S

  • Page 8
    ...DI N G Total sales rose 5.2% to $42.3 billion in 2007 from $40.2 billion in 2006, mainly due to the continuing success of our Lifestyle stores, consistent execution of our marketing strategy, increased fuel sales and a higher Canadian dollar exchange rate. Excluding fuel, identical-store sales were...

  • Page 9
    ... than 91.5% of S&P companies and 97.7% of companies in our Food & Staples Retailing peer group. OU T L O OK contracts, effective use of labor scheduling and active management of workers' compensation expense should allow us to invest in price and enhance the bottom line. Safeway has a tradition of...

  • Page 10
    Superior quality is the cornerstone of our brand promise.

  • Page 11

  • Page 12

  • Page 13
    ... with the finest, freshest products available in our produce, meat and seafood, bakery, deli/food service and floral departments. In produce, we have convened consumer panels to determine unique product specifications. Approximately 95% of our produce specifications are higher than USDA requirements...

  • Page 14

  • Page 15
    ... numerous innovations in our Consumer Brands portfolio is a color-coded system on Eating Right product packaging that highlights dietary benefits and nutritional facts. We also extended our highly popular O Organics product line in 2007 to include O Organics for Baby! and O Organics for Toddler...

  • Page 16

  • Page 17
    ... our innovative new concepts is our highly successful Lifestyle store format. Each of these stores is dramatically redesigned with earth-toned décor...store base to this format through an aggressive remodeling program. During 2007 we celebrated the opening of our 1,000 th Lifestyle store with a month...

  • Page 18

  • Page 19
    ... provider of third-party gift cards in North America. Blackhawk expanded its operations into the United Kingdom in late 2006 and into Mexico and Australia in 2007. It develops unique products in easy-to-use formats and delivers them to consumers through a retail network that includes extensive...

  • Page 20

  • Page 21
    ...TA L I N I T I AT I V E S ® Muscular Dystrophy Association Safeway is an industry leader in charitable giving and environmental responsibility. In 2007 we raised nearly $17 million for 14 leading breast cancer research centers across North America, and we funded mobile mammography vans that serve...

  • Page 22
    ... Seattle Division Daniel J. Valenzuela Phoenix Division Thomas C. Keller The Vons Companies, Inc. Donald Keprta Dominick's Finer Foods, LLC Steven R. Frisby Randall's Food & Drugs, LP F O R E IG N S U B SI DI A RY Canada Safeway Limited Chuck Mulvenna President and Chief Operating Officer E QU...

  • Page 23
    ...principal executive offices) Registrant's telephone number, including area code: 94-3019135 (I.R.S. Employer Identification No.) 94588-3229 (Zip Code) (925) 467-3000 Securities registered pursuant to Section 12(b) of the Act: Title of each class 7.45% Common Stock, $0.01 par value per share Senior...

  • Page 24
    ... registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common...

  • Page 25
    ..., and Director Independence Principal Accounting Fees and Services Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative...

  • Page 26
    ... Annual Report on Form 10-K includes forward-looking statements relating to, among other things: dividend payments on common stock; expansion of product lines; cash capital expenditures; efforts to revitalize operations in certain markets; outcomes of legal proceedings; the effect of new accounting...

  • Page 27
    ...for sale to retail customers. Blackhawk also has gift card businesses in the United Kingdom and Australia. Stores Safeway's average store size is approximately 46,000 square feet. The Company determines the size of a new store based on a number of considerations, including the needs of the community...

  • Page 28
    ..., closures and financing terms. Merchandising Safeway's operating strategy is to provide value to its customers by maintaining high store standards and a wide selection of high-quality products at competitive prices. To provide one-stop shopping for today's busy shoppers, the Company emphasizes high...

  • Page 29
    ...retail operating areas is served by a regional distribution center consisting of one or more facilities. Safeway has 17 distribution/warehousing centers (13 in the United States and four in Canada), which collectively provide the majority of all products to Safeway stores. The Company's distribution...

  • Page 30
    ... program to select and approve new capital investments. The table below details changes in the Company's store base and presents the Company's cash capital expenditures over the last five years (dollars in millions): 2007 Total stores at beginning of year Stores opened: New Replacement Stores closed...

  • Page 31
    ... II, Item 8 of this report provides financial information by geographic area. Available Information Safeway's corporate Web site is located at www.safeway.com. You may access our Securities and Exchange Commission ("SEC") filings free of charge at our corporate Web site promptly after such material...

  • Page 32
    ... our business. Changes in our product mix also may negatively affect certain financial measures. For example, we continue to add supermarket fuel centers, which generate low profit margins but significant sales. Although this negatively affects our gross profit margin, fuel sales provide a positive...

  • Page 33
    ... year and is related to consumer gift purchases. A reduction in consumer spending for gifts, operational issues that result in limitations on gift cards available for sale in Blackhawk's distribution channels or other factors that contribute to a shortfall in sales during this period could have an...

  • Page 34
    ...Plan Claims We use a combination of insurance and self-insurance to provide for potential liabilities for workers' compensation, automobile and general liability, property insurance, director and officers' liability insurance, and employee health care benefits. We estimate the liabilities associated...

  • Page 35
    .... A change from current accounting standards could have a significant effect on the Company's results of operations. Energy and Fuel Safeway's operations are dependent upon the availability of a significant amount of energy and fuel to manufacture, store and transport products. Energy and fuel costs...

  • Page 36
    ... Human Resources Melissa C. Plaisance (6) Senior Vice President Finance and Investor Relations Kenneth M. Shachmut Senior Vice President Reengineering and Marketing Analysis David R. Stern (7) Senior Vice President Planning and Business Development 14 Year first elected Age 58 Officer 1992 Present...

  • Page 37
    ... Manager, Northern California Division of Safeway Inc. from 1998 to 2001, and President, Phoenix Division, from 1995 to 1998. (3) David F. Bond has been Senior Vice President, Finance and Control, of Safeway since July 1997. In this capacity, he also serves as the Company's Chief Accounting Officer...

  • Page 38
    ...'s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company's common stock, $0.01 par value, is listed on the New York Stock Exchange. The following table presents quarterly high and low sales prices, as well as dividends declared per common share, for the...

  • Page 39
    SAFEWAY INC. AND SUBSIDIARIES Issuer Purchases of Equity Securities The following table contains information for shares repurchased during the fourth quarter of 2007. Total number of shares purchased as part of Total number of Average price publicly announced shares purchased (1) paid per share (2)...

  • Page 40
    ... change in the Company's cumulative total stockholder return on its common stock for the period from the end of its 2002 fiscal year to the end of its 2007 fiscal year to that of the Standard & Poor's ("S&P") 500 and a group of peer companies(*) in the retail grocery industry. The stock price...

  • Page 41
    ... Sales and other revenue Gross profit Operating and administrative expense Goodwill impairment charges Operating profit Interest expense Other income, net Income before income taxes Income taxes Net income (loss) Basic earnings (loss) per share Diluted earnings (loss) per share Weighted average...

  • Page 42
    ...fuel (3) Gross profit margin Operating & administrative expense as a percentage of sales (4) Operating profit as a percentage of sales Cash capital expenditures Depreciation & amortization Total assets Total debt Total stockholders' equity Other Statistics Stores opened during the year Stores closed...

  • Page 43
    ... caption "Income Taxes." Sales Sales increased 5.2% to $42.3 billion in 2007 from $40.2 billion in 2006 primarily because of Safeway's marketing strategy, Lifestyle store execution, increased fuel sales and an increase in the Canadian dollar exchange rate. Same-store sales increases for 2007 were as...

  • Page 44
    ...pre-tax, long-lived asset impairment charge of $54.7 million ($0.08 per diluted share). In the fourth quarter of 2005, Safeway recorded $55.5 million pre-tax ($0.07 per diluted share) in store exit activities for these stores. Gain (Loss) on Property Retirements. Operating and administrative expense...

  • Page 45
    ... sales from store labor, workers' compensation and pension expense. Operating and administrative expense decreased 53 basis points in 2005 to 25.77% of sales from 26.30% in 2004. The significant pre-tax charges previously discussed (impairment of long-lived assets, store exit activities and employee...

  • Page 46
    ...The combined weighted-average discount rate used to determine 2007 pension expense was 5.9%. A lower discount rate increases the present value of benefit obligations and increases pension expense. Expected return on pension plan assets is based on historical experience of the Company's portfolio and...

  • Page 47
    ... the date of grant. The Company determines fair value of such awards using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates certain assumptions, such as a risk-free interest rate, expected volatility, expected dividend yield and expected life of options, in...

  • Page 48
    ... stock and paid dividends of $96.0 million. Also in 2006 Safeway received a $262.3 million tax refund related to prior years' financing. In 2005 Safeway paid down $444.9 million of debt and paid $44.9 million of dividends. Based upon the current level of operations, Safeway believes that net cash...

  • Page 49
    ... the Notes to repay borrowings under its U.S. commercial paper program which had been used to repay $480.0 million of Senior Notes which matured in July 2007. At Safeway's option, the Notes can be redeemed, in whole or in part, at any time at a redemption price equal to the greater of 100% of the...

  • Page 50
    ... 44.9 22.4 N/A Dividends Paid on Common Stock The following table presents information regarding dividends paid on Safeway's common stock during fiscal 2007, 2006 and 2005. Record Date 09/27/07 06/29/07 03/30/07 12/29/06 Per-Share Amounts $ 0.0690 0.0690 0.0575 0.0575 Year-to-date Total $ 111.5 81...

  • Page 51
    ... interest coverage ratio or credit ratings. Safeway's pricing was unaffected by S&P's lowered rating. However, changes in the Company's credit ratings may have an adverse impact on financing costs and structure in future periods, such as the ability to participate in the commercial paper market and...

  • Page 52
    SAFEWAY INC. AND SUBSIDIARIES Off-Balance Sheet Arrangements Guarantees The Company is party to a variety of contractual agreements under which it may be obligated to indemnify the other party for certain matters. These contracts primarily relate to the Company's commercial contracts, operating ...

  • Page 53
    ... Market Risk Safeway manages interest rate risk through the strategic use of fixed and variable interest rate debt and, from time to time, interest rate swaps. As of year-end 2007, the Company effectively converted $500 million of its 4.95% fixed-rate debt and $300 million of its 4.125% fixed-rate...

  • Page 54
    SAFEWAY INC. AND SUBSIDIARIES Item 8. Financial Statements and Supplementary Data Page Management's Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Statements of Operations for fiscal 2007, 2006 and 2005 Consolidated ...

  • Page 55
    SAFEWAY INC. AND SUBSIDIARIES Management's Annual Report on Internal Control over Financial Reporting Management of the Company, including the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting, ...

  • Page 56
    ..., the financial position of Safeway Inc. and subsidiaries as of December 29, 2007 and December 30, 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 29, 2007, in conformity with accounting principles generally accepted in the...

  • Page 57
    ... 158, "Employers' Accounting for Defined Benefit Pension and other Postretirement Plans." As discussed in Note A to the consolidated financial statements, on December 31, 2006, the Company adopted Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes...

  • Page 58
    SAFEWAY INC. AND SUBSIDIARIES Consolidated Statements of Operations (In millions, except per-share amounts) 52 Weeks 2007 Sales and other revenue Cost of goods sold Gross profit Operating and administrative expense Operating profit Interest expense Other income, net Income before income taxes Income...

  • Page 59
    .... AND SUBSIDIARIES Consolidated Balance Sheets (In millions, except per-share amounts) Year-end 2007 Assets Current assets: Cash and equivalents Receivables Merchandise inventories, net of LIFO reserve of $63.4 and $49.5 Prepaid expenses and other current assets Total current assets Property: Land...

  • Page 60
    ... income taxes Pension and postretirement benefit obligations Accrued claims and other liabilities Total liabilities Commitments and contingencies Stockholders' equity: Common stock: par value $0.01 per share; 1,500 shares authorized; 589.3 and 582.5 shares outstanding Additional paid-in capital...

  • Page 61
    ... other current assets Income taxes Payables and accruals Payables related to third-party gift cards, net of receivables Net cash flow from operating activities Investing Activities: Cash paid for property additions Proceeds from sale of property Cash used to acquire businesses Other Net cash used by...

  • Page 62
    ... stock Dividends paid Net proceeds from exercise of stock options Excess tax benefit from exercise of stock options Income tax refund related to prior years' debt financing Payment of debt issuance costs Other Net cash flow used by financing activities Effect of changes in exchange rates on cash...

  • Page 63
    ...of restricted stock Treasury stock purchased Options exercised Balance, year-end 2006 Net income FIN 48 adjustment Stock-based employee compensation Cash dividends declared ($0.2645 per share) Translation adjustments Income tax refund Pension adjustment to funded status (net of income tax benefit of...

  • Page 64
    ... operates GroceryWorks.com Operating Company, LLC, an online grocery channel, doing business under the names Safeway.com, Vons.com and Genuardis.com (collectively "Safeway.com"). Blackhawk Network Holdings, Inc. ("Blackhawk"), a subsidiary of Safeway, provides third-party gift cards, prepaid cards...

  • Page 65
    ..., a vendor pays Safeway to keep product on the shelf for a minimum period of time or when volume thresholds are achieved. Slotting and promotional allowances are accounted for as a reduction in the cost of purchased inventory and recognized when the related inventory is sold. Contract allowances are...

  • Page 66
    .... The present value of such claims was calculated using a discount rate of 3.5% in 2007, 4.5% in 2006 and 4.35% in 2005. A summary of changes in Safeway's self-insurance liability is as follows (in millions): 2007 Beginning balance Expense Claim payments Currency translation loss Ending balance Less...

  • Page 67
    ... items Long-term debt. Market values quoted on the New York Stock Exchange are used to estimate the fair value of publicly traded debt. To estimate the fair value of debt issues that are not quoted on an exchange, the Company uses those interest rates that are currently available to it for issuance...

  • Page 68
    ... fair value on the date of grant. The Company determines fair value of such awards using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates certain assumptions, such as risk-free interest rate, expected volatility, expected dividend yield and expected life of...

  • Page 69
    ... of net operating loss carryforwards. See Note H. (2) Primarily represents revised estimate of pre-acquisition tax accrual. (3) Represents foreign currency translation adjustments in Canada. Safeway completed its annual impairment tests in the fourth quarters of 2007, 2006 and 2005. Fair value was...

  • Page 70
    SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Note D: Financing Notes and debentures were composed of the following at year end (in millions): 2007 Commercial paper Bank credit agreement, unsecured Other bank borrowings, unsecured Mortgage notes payable, secured 9.30% ...

  • Page 71
    ... of the following rates selected by the Company: (1) the Canadian prime rate or (2) the rate for Canadian bankers acceptances plus the Pricing Margin. During 2007 the Company paid facility fees of 0.06% on the total amount of the credit facility. Shelf Registration In 2004 the Company filed a shelf...

  • Page 72
    ...typically with increased rental rates during the option period. Certain of these leases contain options to purchase the property at amounts that approximate fair market value. As of year-end 2007, future minimum rental payments applicable to non-cancelable capital and operating leases with remaining...

  • Page 73
    ... store sales. 2006 $ 423.7 10.5 (6.9) 427.3 25.4 $ 452.7 2005 $ 422.4 10.8 (6.0) 427.2 25.7 $ 452.9 Note F: Interest Expense Interest expense consisted of the following (in millions): 2007 Commercial paper Bank credit agreement Other bank borrowings Mortgage notes payable 9.30% Senior Secured...

  • Page 74
    ... Safeway's stock option plans, the Company may grant incentive and non-qualified options to purchase common stock at an exercise price equal to or greater than the fair market value at the grant date, as determined by the Executive Compensation Committee of the Board of Directors. Options generally...

  • Page 75
    ...in 2007 and $32.0 million in 2006. As of year-end 2007, there was $119.9 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under the Company's stock option plans. That cost is expected to be recognized over a weighted average period of...

  • Page 76
    .... The Company determines fair value of such awards using the Black-Scholes option pricing model. The following weighted-average assumptions used, by year, to value Safeway's grants are as follows: 2007 Expected life (in years) Expected stock volatility Risk-free interest rate Expected dividend yield...

  • Page 77
    ... negotiations with respect to a bilateral Advance Pricing Agreement for the years 2000 through 2006. The agreement established arm's length charges for intercompany sales of goods and services and use of property by the Company and its Canadian subsidiary which are eliminated in consolidation. As...

  • Page 78
    ...Employee benefits Charitable contribution carryforwards Reserves not currently deductible Accrued claims and other liabilities Pension Operating loss carryforwards Other assets Valuation allowance $ 190.1 121.9 74.7 61.8 24.8 32.7 3.7 33.9 543.6 (12.2) $ 531.4 2007 Deferred tax liabilities: Property...

  • Page 79
    ... in the balance of unrecognized tax benefits at December 29, 2007 are tax positions of $121.3 million (net of tax) that would reduce the Company's effective income tax rate, if recognized in future periods. The Company recognizes interest and penalties on income taxes in income tax expense. Income...

  • Page 80
    ...342.0 2007 Change in fair value of plan assets: Beginning balance Actual return on plan assets Employer contributions Benefit payments Currency translation adjustment Ending balance $ 2,214.7 120.0 33.8 (148.4) 75.5 $ 2,295.6 2007 Funded status: Fair value of plan assets Projected benefit obligation...

  • Page 81
    ... weighted-average rate Rate of compensation increase: United States plans Canadian plans The actuarial assumptions used to determine net periodic benefit cost were as follows: 2007 Discount rate: United States plans Canadian plans Combined weighted-average rate Expected return on plan assets: United...

  • Page 82
    ... for value-added returns from active management; and (4) maintain adequate controls over administrative costs. To meet these objectives, the Company's investment policy reflects the following major themes: (1) diversify holdings to achieve broad coverage of both stock and bond markets; and (2) use...

  • Page 83
    ... Pension Plans Safeway participates in various multi-employer retirement plans, covering substantially all Company employees not covered under the Company's non-contributory retirement plans, pursuant to agreements between the Company and various unions. These plans are generally defined benefit...

  • Page 84
    ... rel. Bill Lockyer v. Safeway Inc. dba Vons, et al., against the Company's subsidiary, The Vons Companies, Inc., Albertsons, Inc. and Ralphs Grocery Company, a division of the Kroger Company. The complaint alleges that certain provisions of a Mutual Strike Assistance Agreement ("MSAA") entered into...

  • Page 85
    ... reportable segment. The following table presents information about the Company by geographic area (in millions): U.S. 2007 Sales and other revenue Operating profit Income before income taxes Long-lived assets, net Total assets 2006 Sales and other revenue Operating profit Income before income taxes...

  • Page 86
    ...other party for certain matters. These contracts primarily relate to Safeway's commercial contracts, operating leases and other real estate contracts, trademarks, intellectual property, financial agreements and various other agreements. Under these agreements, the Company may provide certain routine...

  • Page 87
    ... the results of operations for the periods presented. (Rounding affects some totals. In millions, except per-share amounts.) Last 16 Weeks Third 12 Weeks Second 12 Weeks First 12 Weeks 52 Weeks 2007 Sales and other revenue Gross profit Operating profit Income before income taxes Net income Net...

  • Page 88
    ... Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its President and Chief Executive Officer and Chief Financial Officer...

  • Page 89
    ...(ii) relates to any element of the code of ethics definitions, as enumerated in Item 406(b) of SEC Regulation S-K, will be posted on our Web site at www.safeway.com within four business days following the date of the amendment or waiver. Item 11. Executive Compensation The information called for by...

  • Page 90
    ... of New York, as Trustee (incorporated by reference to Exhibit 4.1 to the registrant's Current Report on Form 8-K dated September 10, 1997). Form of Officers' Certificate establishing the terms of the Company's 7.45% Senior Debentures due 2027, including the form of Notes (incorporated by reference...

  • Page 91
    ... and Restated Share Appreciation Rights Plan of Canada Safeway Limited (incorporated by reference to Exhibit 10(iii).33 to the registrant's Form 10-Q for the quarterly period ended June 19, 2004). The 2001 Amended and Restated Operating Performance Bonus Plan for Executive Officers of Safeway Inc...

  • Page 92
    ... Amended and Restated Share Appreciation Rights Plan of Canada Safeway Limited (incorporated by reference to Exhibit 10(iii).34 to the registrant's Form 10-Q for the quarterly period ended June 19, 2004). Exhibit 10(iii).14* Supplemental Retirement Benefit Agreement between Safeway Inc. and Steven...

  • Page 93
    ... the quarterly period ended June 19, 2004). Exhibit 10(iii).23 Second Amendment to Credit Agreement, dated as of June 1, 2007, by and among Safeway Inc. and Canada Safeway Limited, as borrowers, Deutsche Bank AG New York Branch, as administrative agent, Banc of America Securities LLC and J.P. Morgan...

  • Page 94
    ... report). Computation of Ratio of Earnings to Fixed Charges. Safeway Inc. Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14 to the registrant's Current Report on Form 8-K dated March 10, 2005). Schedule of Subsidiaries. Consent of Independent Registered Public Accounting...

  • Page 95
    ...and in the capacities and on the dates indicated. By: /s/ Robert L. Edwards Robert L. Edwards Executive Vice President and Chief Financial Officer /s/ David F. Bond David F. Bond Senior Vice President, Finance and Control (Chief Accounting Officer) Director /s/ Steven A. Burd Steven A. Burd /s/ Paul...

  • Page 96
    SAFEWAY INC. AND SUBSIDIARIES Director /s/ Douglas J. Mackenzie Douglas J. Mackenzie /s/ Rebecca A. Stirn Rebecca A. Stirn /s/ William Y. Tauscher William Y. Tauscher /s/ Raymond G. Viault Raymond G. Viault February 26, 2008 February 26, 2008 February 26, 2008 Date: February 26, 2008 74

  • Page 97
    ..., results of operations and cash flows of the registrant as of, and for, the periods presented in this report; The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and...

  • Page 98
    ..., results of operations and cash flows of the registrant as of, and for, the periods presented in this report; The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and...

  • Page 99
    ... Exchange Act of 1934, as amended; and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: February 26, 2008 /s/ Steven A. Burd Steven A. Burd Chief Executive Officer Certification of Chief...

  • Page 100
    ...99 Pleasanton, CA 94566-0009 I N T E R N E T A DD R E S S The company's common stock, which trades under the symbol SWY, and certain debentures and notes are listed on the New York Stock Exchange. I N V E S T O R I NQU I R I E S Safeway's Web site on the Internet can be accessed at www.safeway.com...

  • Page 101
    S A F E WAY I N C . P O B OX 99 P L E A S A N T O N , C A 94566 - 0 0 09 S A F E WAY . C O M