Safeway 2011 Annual Report Download - page 84

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
A reconciliation of the beginning and ending balances for Level 3 assets for the year ended January 1, 2011 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, beginning of year $ 5.8 $2.9 $ 2.5 $0.2 $ 0.2
Purchases, sales, settlements, net (1.5) – (1.8) 0.5 (0.2)
Transfers in and/or out of Level 3 (0.6) – (0.6) – –
Realized (losses) gains (0.6) – (0.6) – –
Unrealized gains 0.7 0.2 0.5 – –
Balance, end of year $ 3.8 $3.1 $ – $0.7 $ –
Contributions Safeway expects to contribute approximately $160.0 million to its defined benefit pension plan and
post-retirement benefit plans in 2012.
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
2012 $ 124.0 $ 8.9
2013 128.9 9.1
2014 132.2 9.4
2015 137.8 9.7
2016 141.7 10.0
2017 – 2021 753.5 53.8
Multiemployer Pension Plans Safeway contributes to a number of multiemployer defined benefit pension plans in the
U.S. and Canada under the terms of collective bargaining agreements that cover its union-represented employees.
Benefits generally are based on a fixed amount for each year of service, and, in many cases, are not negotiated with
contributing employers or in some cases even known by contributing employers. None of the Company’s collective
bargaining agreements require that a minimum contribution be made to these plans. The Company made and charged to
expense the following contributions to these plans (in millions):
2011 2010 2009
United States plans $ 262.7 $ 245.4 $ 236.8
Canadian plans 49.5 46.9 41.3
Total $ 312.2 $ 292.3 $ 278.1
Additionally, the Company has incurred a partial withdrawal from the United Food and Commercial Workers Unions and
Employers Midwest Pension Plan to which it contributes on behalf of Dominick’s. During 2011, the Company expensed
the withdrawal liability assessment of $6.6 million and began paying monthly installments of $0.3 million in September
2011.
66