Safeway 2007 Annual Report Download - page 83

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The Company’s accrued postretirement benefit obligation (“APBO”) was $64.6 million at year-end 2007 and $51.7
million at year-end 2006. The APBO represents the actuarial present value of the benefits expected to be paid after
retirement. Postretirement benefit expense was $7.6 million in 2007, $5.5 million in 2006 and $4.2 million in 2005.
Estimated Future Benefit Payments The following benefit payments, which reflect expected future service as
appropriate, are expected to be paid (in millions):
Pension
benefits
Other
benefits
2008 $119.6 $ 4.9
2009 124.8 5.0
2010 129.5 5.2
2011 135.8 5.3
2012 143.4 5.3
2013 – 2017 810.4 27.9
Multi-Employer 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 plans; however, in many cases,
specific benefit levels are not negotiated with or known by the employer-contributors. Contributions of $270.1 million in
2007, $253.8 million in 2006 and $234.5 million in 2005 were made and charged to expense.
Note J: Investment in Unconsolidated Affiliates
At year-end 2007, 2006 and 2005, Safeway’s investment in unconsolidated affiliates includes a 49% ownership interest
in Casa Ley, which operates 137 food and general merchandise stores in Western Mexico.
Equity in earnings from Safeway’s unconsolidated affiliates, which is included in other income, was income of $8.7 million
in 2007, income of $21.1 million in 2006 and income of $15.8 million in 2005.
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