Safeway 2009 Annual Report Download - page 82

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SAFEWAY INC. AND SUBSIDIARIES
Notes 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
Asset category: Total
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Cash and cash equivalents $ 12.8 $ 11.5 $ 1.3 $ –
Short-term investment collective trust 21.7 – 21.7 –
Common and preferred stocks 473.5 472.9 0.6 –
Common collective trust funds 680.8 – 680.8 –
Corporate bonds 89.5 – 86.6 2.9
Mortgage- and other-asset backed securities 49.0 – 46.5 2.5
Mutual funds 31.0 31.0 – –
U.S. government securities 162.7 – 162.5 0.2
Other securities 18.9 – 18.7 0.2
Total $1,539.9 $515.4 $1,018.7 $5.8
See Note F for a discussion of levels, inputs and valuation techniques.
A reconciliation of the beginning and ending balances for Level 3 assets for the year ended January 2, 2010 follows (in
millions):
Fair value measured using significant
unobservable inputs (Level 3)
Total
Corporate
bonds
Mortgage-
and other-
asset
backed
securities
U.S.
government
securities
Other
securities
Balance as of January 3, 2009 $ 1.5 $ 0.6 $ 1.1 $ 0.3 $(0.5)
Purchases, sales, settlements, net 3.3 2.5 0.4 (0.1) 0.5
Transfers in and/or out of Level 3 1.6 – 1.6 – –
Realized (losses) gains (0.9) (0.5) (0.6) – 0.2
Unrealized gains 0.3 0.3 – – –
Balance as of January 2, 2010 $ 5.8 $ 2.9 $ 2.5 $ 0.2 $ 0.2
Safeway expects to contribute approximately $7.8 million to its defined benefit pension plan trusts in 2010, primarily in
Canada.
Retirement Restoration Plan The Retirement Restoration Plan provides death benefits and supplemental income
payments for senior executives after retirement. The Company recognized expense of $3.7 million in 2009, $4.9 million in
2008 and $4.8 million in 2007. The aggregate projected benefit obligation of the Retirement Restoration Plan was
approximately $56.0 million at year-end 2009 and $58.5 million at year-end 2008.
Postretirement Benefits other than Pensions In addition to the Company’s retirement plans and the Retirement
Restoration Plan benefits, the Company sponsors plans that provide postretirement medical and life insurance benefits to
certain employees. Retirees share a portion of the cost of the postretirement medical plans. Safeway pays all the costs of
the life insurance plans. The plans are not funded.
64