Safeway 2009 Annual Report Download

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2009 ANNUAL REPORT

Table of contents

  • Page 1
    20 09 ANNUAL REPORT

  • Page 2

  • Page 3
    ...A F E WAY I N C . •• 2009 ANNUAL REPORT In 2003, we developed a new strategy to differentiate our offering from other grocery retailers and to produce long-term growth for our stockholders. We have made substantial progress since that time. We established industry-leading quality standards in...

  • Page 4
    ... 2009 ANNUAL REPORT OUR FOOTPRINT Safeway Inc. is one of the largest food and drug retailers in North America. As of January 2, 2010, the company operated 1,725 stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States and in western Canada...

  • Page 5
    ... the year (dollars in millions, except per-share amounts) Sales and other revenue Gross profit Operating (loss) profit Net (loss) income Diluted (loss) earnings per share Cash capital expenditures At year-end Common shares outstanding (in millions) 2 Retail square feet (in millions) Number of stores...

  • Page 6
    ... diluted share) in the 53-week year 2008.1 The goodwill impairment was due primarily to Safeway's reduced market capitalization and a weak economy. We generated free cash flow of $1.5 billion,1 the highest in the company's history, and returned cash to our stockholders through $885 million in stock...

  • Page 7
    ...market share, as the economy improves. During the year, we opened eight new stores and remodeled 82 stores, bringing the number of Lifestyle stores to 79% of our base at year-end 2009. Our capital spending totaled $852 million for the year. In 2009, we significantly accelerated our price investments...

  • Page 8

  • Page 9
    ... are designed to fit the busy lifestyle of Safeway customers. Readyto-eat goodness comes in the form of flavorful soups, tender whole roasted chickens and deliciously unique sandwiches piled high with the best meats and cheeses. Entrees, side dishes and specialty items that are quick, easy and...

  • Page 10
    ... meals. After six years of pursuing our Lifestyle program, at year-end 2009, we had transformed 79% of our store base into Lifestyle stores. We plan to convert most of the remaining stores over the next few years, at which time Safeway will be the only major conventional food retailer with a common...

  • Page 11

  • Page 12

  • Page 13
    ... delivering improved value with low everyday prices and Club Card specials. Throughout 2009 and into early 2010, we lowered prices on thousands of products. Our customers now get even more value from their dollar on the products they want and need every day. These savings are clearly communicated on...

  • Page 14
    ... avenues for growth to add to the performance of our core business. Our Blackhawk Network subsidiary sells over 300 brands of prepaid and gift cards and distributes them through leading grocery, mass, convenience, drug and specialty retailers. Cards are also now available online at www.GiftCardMall...

  • Page 15

  • Page 16

  • Page 17
    .... Safeway is dedicated to preserving the planet as well, and as an environmentally-friendly corporate citizen, we have been at the forefront of seeking greener ways to conduct our day-to-day business. In late 2009, we opened a store in Santa Cruz, California that is a model for the green retail...

  • Page 18
    ... The Vons Companies, Inc. Donald Keprta Dominick's Finer Foods, LLC Chuck Mulvenna Canada Safeway Limited Steven J. Neibergall Eastern Division Karl Schroeder Northern California Division Thomas L. Schwilke Randall's Food & Drugs, LP Gregory A. Sparks Seattle Division Daniel J. Valenzuela Phoenix...

  • Page 19
    ...X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2010 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-00041 SAFEWAY INC...

  • Page 20
    ...the last business day of the registrant's most recently completed second fiscal quarter. The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 20, 2009 was approximately $8.6 billion. As of February 25, 2010, there were outstanding 388.8 million shares of...

  • Page 21
    ...Item 9. Item 9A. Item 9B. PART III Item 10. Item 11. Item 12. Item 13. Item 14. PART IV Item 15. SIGNATURES Exhibits, Financial Statement Schedules Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related...

  • Page 22
    ... return on our pension assets; The availability and terms of financing, including interest rates and our ability to issue commercial paper or issue public debt or to borrow under our lines of credit as a result of current financial market conditions; Adverse developments with regard to food and drug...

  • Page 23
    ... 1990, the Company changed its name to Safeway Inc. Safeway Inc. is one of the largest food and drug retailers in North America, with 1,725 stores at year-end 2009. The Company's U.S. retail operations are located principally in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas...

  • Page 24
    ...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-quality produce and meat...

  • Page 25
    ...'s long-term growth strategy is its capital expenditure program. The Company's capital expenditure program funds, among other things, new stores, remodels, manufacturing plants, distribution facilities and information technology. Safeway's management has maintained a rigorous program to select and...

  • Page 26
    ... to improve profitability in those divisions. We do not plan to significantly change total retail square footage or store count in the foreseeable future. (2) Defined as store remodel projects (other than maintenance) generally requiring expenditures in excess of $0.2 million. In 2010, the Company...

  • Page 27
    ... 17,000 employees, primarily in stores in the Company's Phoenix division, as well as stores in Manitoba, Canada, were ratified. 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...

  • Page 28
    ... grocery retailers, non-traditional competitors such as supercenters and club stores, as well as from specialty supermarkets, drug stores, dollar stores, convenience stores and restaurants. Increased competition may have an adverse effect on profitability as the result of lower sales, lower gross...

  • Page 29
    .... Current Economic Conditions The United States and, to a lesser extent, Canadian economies and financial markets have declined and experienced volatility due to uncertainties related to unemployment rates, energy prices, availability of credit, difficulties in the banking and financial services...

  • Page 30
    ...reduction in the fair value of the retirement plan assets. As a result, at the end of fiscal 2008, projected benefit obligations exceeded the fair value of plan assets for all of the Company's pension plans. In 2009, the financial markets improved. As a result, pension expense in 2010 is expected to...

  • Page 31
    ... as workers' compensation, store closures, employee benefit plans, goodwill and income tax contingencies, these standards and their interpretations require management's most difficult, subjective or complex judgments. Additionally, the SEC is evaluating the use of International Financial Reporting...

  • Page 32
    ...in lower gross profit on fuel sales. Additionally, consumer demand for fuel may decline if retail prices increase. Such volatility and the impact to our operations and financial results are difficult to predict. Item 1B. None. Item 2. Properties Unresolved Staff Comments The information required by...

  • Page 33
    ... Board of Directors. Name and all positions with the Company held at February 25, 2010 Steven A. Burd Chairman, President and Chief Executive Officer Diane M. Dietz (1) Executive Vice President and Chief Marketing Officer Robert L. Edwards Executive Vice President and Chief Financial Officer Bruce...

  • Page 34
    ... as Executive Vice President in 2007, she served Procter and Gamble in various positions since 1989. (2) Russell M. Jackson was appointed as Senior Vice President, Human Resources, of the Company in March 2007. Prior to joining Safeway, he was employed with PG&E Corporation for 27 years, where...

  • Page 35
    ... stock, $0.01 par value, is listed on the New York Stock Exchange. Information on dividends declared per common share is set forth in Part II, Item 7 of this report. The following table presents quarterly high and low sales prices for the Company's common stock. Fiscal Year 2009: Quarter 4 (16 weeks...

  • Page 36
    SAFEWAY INC. AND SUBSIDIARIES Issuer Purchases of Equity Securities Total number of shares purchased as part of publicly announced plans or programs - 10,400,000 9,000,000 - 19,400,000 Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (4) $ 719.7...

  • Page 37
    ... total stockholder return on its common stock for the period from the end of its 2004 fiscal year to the end of its 2009 fiscal year to that of the Standard & Poor's ("S&P") 500 and a group of peer companies(*) in the retail grocery industry and assumes reinvestment of dividends. The stock price...

  • Page 38
    ...1.25 (Dollars in millions, except per-share amounts) Results of Operations Sales and other revenue Gross profit Operating and administrative expense Goodwill impairment charge Operating (loss) profit Interest expense Other income, net (Loss) income before income taxes Income taxes Net (loss) income...

  • Page 39
    ... impairment charge of $1,974.2 million. (5) Included 14 Dominick's store closures in 2007 and 26 Randall's store closures in 2005. Such store closures were part of a program to improve profitability in those divisions. We do not plan to significantly change total retail square footage or store...

  • Page 40
    ... goodwill balances, the goodwill impairment resulted primarily from the Vons and Eastern divisions. Sales Same-store sales (decreases) increases for the past three fiscal years were as follows: Fiscal 2009 Comparable- Identical-store store sales sales ** Including fuel Excluding fuel * Fiscal 2008...

  • Page 41
    ....17% of sales in 2008. Lower fuel sales in 2009 increased operating and administrative expense margin 56 basis points. The remaining 60 basis points was primarily the result of decreased sales leverage, increased charges from property impairments and retirements and increased pension expense, partly...

  • Page 42
    ... yet reported. Self-insurance reserves are actuarially determined primarily by applying historical paid loss and incurred loss development trends to current cash and incurred expected losses in order to estimate total losses. We then discount total expected losses to their present value using a risk...

  • Page 43
    ... of the pension benefits. The discount rate used to determine 2009 pension expense was 6.3%. 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 44
    ... our retail divisions. Our reporting units are generally consistent with our operating segments. As a result of the Company's annual impairment test, Safeway recorded a non-cash impairment charge in the amount of $1,974.2 million (pre-tax) to reduce the carrying value of goodwill. The impairment was...

  • Page 45
    ... the fair value of plans assets for all of the Company's pension plans. The Company currently expects to contribute approximately $7.8 million to its defined benefit pension plan trusts in 2010, primarily in Canada. If return on plan assets is less than expected or if discount rates decline, plan...

  • Page 46
    ...Company's business. Free cash flow is also a useful indicator of Safeway's ability to service debt and fund share repurchases that management believes will enhance stockholder value. This non-GAAP financial measure should not be considered as an alternative to net cash flow from operating activities...

  • Page 47
    ... measures may not be comparable to Safeway's Adjusted EBITDA (dollars in millions). 52 weeks 2009 Adjusted EBITDA: Net loss Add (subtract): Income taxes Interest expense Depreciation expense Goodwill impairment charge LIFO income Stock option expense Property impairment charges Equity in earnings of...

  • Page 48
    ... presents information regarding dividends paid on Safeway's common stock during fiscal 2009, 2008 and 2007. Record Date 09/24/09 06/25/09 03/26/09 12/24/08 Per-Share Amounts $ 0.1000 0.1000 0.0828 0.0828 Year-to-date Total $ 153.1 112.5 70.9 35.6 (in millions, except per-share amounts) 2009 Quarter...

  • Page 49
    .... The average price per share, excluding commissions, was $20.80. The Company will evaluate the timing and volume of future repurchases based on several factors, including market conditions, and may repurchase stock in the near- or long-term as circumstances warrant. Credit Ratings The senior long...

  • Page 50
    ... on self-insurance liability Operating leases (3) Marketing development funds Contracts for purchase of property, equipment and construction of buildings Contracts for purchase of inventory Fixed-price energy contracts (4) (2) 2011 502.8 $ 220.1 31.3 47.1 92.3 3.8 432.2 12.2 2012 851.3 $ 203...

  • Page 51
    ...from time to time, interest rate swaps. See Note E to the consolidated financial statements set forth in Part II, Item 8 of this report. The table below presents information on interest rate swaps at year-end 2009 (dollars in millions): 2010 Interest rate swaps Fixed to variable (1) Average pay rate...

  • Page 52
    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 2009, 2008 and 2007 Consolidated ...

  • Page 53
    ... statements and the Company's internal control over financial reporting. The report of the independent registered public accounting firm is included in this Annual Report on Form 10-K and begins on the following page. STEVEN A. BURD Chairman, President and Chief Executive Officer March 2, 2010...

  • Page 54
    ... Registered Public Accounting Firm To the Board of Directors and Stockholders of Safeway Inc.: We have audited the accompanying consolidated balance sheets of Safeway Inc. and subsidiaries (the "Company") as of January 2, 2010 and January 3, 2009, and the related consolidated statements of...

  • Page 55
    ... Statements of Operations (In millions, except per-share amounts) 52 Weeks 2009 Sales and other revenue Cost of goods sold Gross profit Operating and administrative expense Goodwill impairment charge Operating (loss) profit Interest expense Other income, net (Loss) income before income taxes...

  • Page 56
    ... Balance Sheets (In millions, except per-share amounts) Year-end 2009 Assets Current assets: Cash and equivalents Receivables Merchandise inventories, net of LIFO reserve of $63.1 and $98.3 Prepaid expenses and other current assets Total current assets Property: Land Buildings Leasehold improvements...

  • Page 57
    ... under capital leases Total long-term debt Deferred 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; 592.6 and...

  • Page 58
    ... Statements of Cash Flows (In millions) 52 Weeks 2009 Operating Activities: Net (loss) income Reconciliation to net cash flow from operating activities: Goodwill impairment charge Depreciation expense Property impairment charges Stock option expense Excess tax benefit from exercise of stock...

  • Page 59
    ... of year End of year Other Cash Information: Cash payments during the year for: Interest Income taxes, net of refunds (excluding income tax refund related to prior years' debt financing) Non-cash Investing and Financing Activities: Capital lease obligations entered into Purchases of property, plant...

  • Page 60
    ... Pension adjustment to funded status (net of tax of $165.5) Recognition of pension actuarial loss, net (net of tax of $10.9) Other (net of tax of $1.4) Amortization of restricted stock Treasury stock purchased Options exercised Balance, year-end 2008 Net loss Stock-based employee compensation Cash...

  • Page 61
    ... Significant Accounting Policies The Company Safeway Inc. ("Safeway" or the "Company") is one of the largest food and drug retailers in North America, with 1,725 stores as of year-end 2009. Safeway's U.S. retail operations are located principally in California, Oregon, Washington, Alaska, Colorado...

  • Page 62
    ... or market value. The FIFO cost of inventory approximates replacement or current cost. The Company performs physical counts of perishable inventory in stores every four weeks and nonperishable inventory in stores and all distribution centers twice a year. The Company uses a combination of the retail...

  • Page 63
    ...for its employee benefit plan's overfunded status or a liability for underfunded status. The Company measures plan assets and obligations that determine the funded status as of fiscal year end. See Note K. Self-Insurance The Company is primarily self-insured for workers' compensation, automobile and...

  • Page 64
    ... class of financial instruments: Cash and equivalents, accounts receivable, accounts payable. The carrying amount of these items approximates fair value. Long-term debt, including current maturities. Market values quoted in public markets are used to estimate the fair value of publicly traded debt...

  • Page 65
    ... Statements the future cash flows, a provision is made for the impairment of the assets to write the assets down to estimated fair value. Fair value is determined by estimating net future cash flows, discounted using a risk-adjusted rate of return. The Company calculates impairment on a store...

  • Page 66
    ... our retail divisions. Our reporting units are generally consistent with our operating segments. As a result of the Company's annual impairment test, Safeway recorded a non-cash impairment charge in the amount of $1,974.2 million (pre-tax) to reduce the carrying value of goodwill. The impairment was...

  • Page 67
    ...INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Note C: Store Lease Exit Costs and Impairment Charges Impairment Write-Downs Safeway recognized impairment charges on the write-down of long-lived assets of $73.7 million in 2009, $40.3 million in 2008 and $27.1 million in 2007. These...

  • Page 68
    ...% at year-end 2009. The weighted-average interest rate on commercial paper borrowing during 2008 was 4.31% and was 5.82% at year-end 2008. Bank Credit Agreement The Company has a $1,600.0 million credit agreement (as amended) with a syndicate of banks which has a termination date of June 1, 2012 and...

  • Page 69
    ... of the letters of credit. Fair Value At year-end 2009 and year-end 2008, the estimated fair value of debt, including current maturities, was $4.7 billion and $5.1 billion, respectively. Note E: Financial Instruments Safeway manages interest rate risk through the strategic use of fixed- and variable...

  • Page 70
    ... basis at year-end 2009 (in millions): Fair value measurements Quoted prices in active markets for identical assets (Level 1) $ 1.2 48.1 - Significant observable inputs (Level 2) $ - 3.7 24.3 Significant unobservable inputs (Level 3 15.2 Assets: Cash equivalents Short-term investments Non-current...

  • Page 71
    ... estate taxes) and discounting them using a risk-adjusted rate of interest. Safeway estimates future cash flows based on its experience and knowledge of the market in which the store is located and, when necessary, uses real estate brokers. During fiscal 2009, long-lived assets with a carrying value...

  • Page 72
    ...the property at amounts that approximate fair market value. As of year-end 2009, future minimum rental payments applicable to non-cancelable capital and operating leases with remaining terms in excess of one year were as follows (in millions): Capital leases 2010 2011 2012 2013 2014 Thereafter Total...

  • Page 73
    ... Option Plans Under 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...

  • Page 74
    ... 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 Safeway Board of Directors. Options to purchase 8.7 million shares were available for grant at January 2, 2010 under this plan...

  • Page 75
    ... average period of 2.8 years. Additional Stock Plan Information Safeway accounts for stock-based employee compensation in accordance with generally accepted accounting principles for stock compensation. The Company determines fair value of such awards using the Black-Scholes option pricing model...

  • Page 76
    ....9 million in 2009 for previously unrecognized tax benefits and related interest income. The recognition of these items is primarily due to the settlement of a claim with the Internal Revenue Service ("IRS") with respect to the 2002 and 2003 impairment of the Company's investment in Dominick's, and...

  • Page 77
    SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Significant components of the Company's net deferred tax liability at year end were as follows (in millions): 2009 Deferred tax assets: Pension liability Workers' compensation and other claims Employee benefits Accrued claims ...

  • Page 78
    ... Company had unrecognized tax benefits of $151.0 million, $129.2 million and $123.1 million, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (in millions): 2009 Balance at beginning of year Additions based on tax positions related to the current...

  • Page 79
    ...changes in the retirement plans' benefit obligation and fair value of assets over the two-year period ended January 2, 2010 and a statement of the funded status as of year-end 2009 and year-end 2008. Activity for 2009 includes the removal of the Canadian money purchase plan which had been previously...

  • Page 80
    ... periodic benefit cost in 2010. Information for Safeway's pension plans, all of which have an accumulated benefit obligation in excess of plan assets as of year-end 2009 and 2008, is shown below (in millions): 2009 Projected benefit obligation Accumulated benefit obligation Fair value of plan assets...

  • Page 81
    ... classes and investment styles; (2) maintain an acceptable level of risk in pursuit of long-term economic benefit; (3) maximize the opportunity for value-added returns from active investment management while establishing investment guidelines and monitoring procedures for each investment manager to...

  • Page 82
    ...to Consolidated Financial Statements The fair value of Safeway's pension plan assets at January 2, 2010, excluding pending transactions totaling $32.2 million, by asset category are as follows (in millions): Fair value measurements Quoted prices in active markets for identical assets (Level 1) $ 11...

  • Page 83
    ...(in millions): Pension benefits 2010 2011 2012 2013 2014 2015 - 2019 $ 121.2 125.5 131.7 136.8 141.4 767.9 Other benefits $ 4.7 4.9 5.1 5.3 5.5 29.7 Multi-Employer Pension Plans Safeway participates in various multi-employer retirement plans, covering substantially all Company employees not covered...

  • Page 84
    ... in the consolidated financial statements. These purchase commitments totaled $517.5 million at year-end 2009. Note N: Segments Safeway's retail business, which represents more than 98% of consolidated sales and other revenue, operates in the U.S. and Canada. Safeway is organized into 12 geographic...

  • Page 85
    SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements The following table presents sales revenue by type of similar product (dollars in millions): 2009 Amount Non-perishables Perishables (2) Fuel Pharmacy (1) 2008 Amount $ 19,826.5 16,514.0 3,885.2 3,878.3 $ 44,104.0 % of total ...

  • Page 86
    ...53 Weeks 2008 Sales and other revenue Gross profit Operating profit Income before income taxes Net income Net income per share - basic Net income per share - diluted $ 44,104.0 12,514.8 1,852.7 1,504.6 965.3 $ 2.23 2.21 (1) The last 16 weeks of 2009 includes a pre-tax goodwill impairment charge of...

  • Page 87
    ... 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 88
    ... 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 Item 11 is incorporated by reference from the Company's definitive proxy statement for the 2010 Annual Meeting of Stockholders...

  • Page 89
    ... of September 10, 1997, between Safeway Inc. and The Bank 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...

  • Page 90
    ... the quarterly period ended March 28, 2009). Retirement Restoration Plan of Safeway Inc. (incorporated by reference to Exhibit 10(iii).11 to the registrant's Form 10-K for the year ended January 1, 1994). Form of stock option agreement for former directors of The Vons Companies, Inc. (incorporated...

  • Page 91
    ... quarterly period ended June 19, 2004). Exhibit 10(iii).15* Amended and Restated Supplemental Retirement Benefit Agreement between Safeway Inc. and Steven A. Burd dated December 15, 2008 (incorporated by reference to Exhibit 10(iii).15 to the registrant's Form 10-K for the year ended January 3, 2009...

  • Page 92
    ... the quarterly period ended June 19, 2004). Exhibit 10(iii).24 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 93
    ... 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 Firm. Rule 13(a)-14(a)/15d-14...

  • Page 94
    ... the undersigned, thereunto duly authorized. SAFEWAY INC. By /s/ Steven A. Burd Steven A. Burd Chairman, President and Chief Executive Officer (Principal Executive Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons...

  • Page 95
    SAFEWAY INC. AND SUBSIDIARIES /s/ Michael S. Shannon Michael S. Shannon, Director /s/ Rebecca A. Stirn Rebecca A. Stirn, Director /s/ William Y. Tauscher William Y. Tauscher, Director /s/ Raymond G. Viault Raymond G. Viault, Director Date: March 2, 2010 March 2, 2010 March 2, 2010 March 2, 2010...

  • Page 96
    ... information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 2, 2010 /s/ Steven A. Burd Steven A. Burd Chairman, President and Chief Executive Officer...

  • Page 97
    ...; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 2, 2010 /s/ Robert L. Edwards Robert L. Edwards Executive Vice President and Chief Financial Officer 79

  • Page 98
    ...applicable, of the Securities 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: March 2, 2010 /s/ Steven A. Burd Steven A. Burd Chief Executive Officer...

  • Page 99
    ... SAFEWAY INC. AND SUBSIDIARIES TABLE 1: RECONCILIATION OF GAAP NET LOSS TO NET INCOME EXCLUDING GOODWILL IMPAIRMENT CHARGE (1) Fiscal 2009 $(1,097.5) 1,974.2 (2) (in millions, except per share amounts) Net loss, as reported Add goodwill impairment charge Less tax benefit from goodwill impairment...

  • Page 100
    ..., CA TRUSTEES AND PAYING AGENTS As an equal opportunity employer, Safeway values and actively supports diversity in the workplace. A copy of the company's 2009 summary EEO-1 report, filed with the federal Equal Employment Opportunity Commission, is available upon request at our executive offices...

  • Page 101

  • Page 102
    ... editorial section of this annual report are printed on FSC-Certified paper. This paper contains wood from well-managed forests, controlled sources. This is certified in accordance with the rules of the Forest Stewardship Council. Made with certified renewable energy. S A F E WAY I N C. P O B OX...