Safeway 2011 Annual Report Download - page 89

SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Contributions of
Safeway (in millions)
Expiration
date of
collective
bargaining
agreements
Total
collective
bargaining
agreements
Most significant collective bargaining
agreement(s)
Pension fund 2011 2010 2009 Count Expiration % headcount(2)
Canadian Commercial Workers Industry
Pension Plan (1) $22.9 $23.0 $20.1
4/3/2011 to
3/22/2014 25 8 3/22/2014 67%
UFCW Pension Plan (B.C.) (1) 19.7 17.7 14.7 3/31/2013 3 3 3/31/2013 100%
Other Canadian Funds 6.9 6.2 6.5
Total Safeway contributions to
Canadian multiemployer pension
plans $49.5 $46.9 $41.3
(1) Plan information is not publicly available. This plan provides monthly retirement payments on the basis of the credits earned by the
participating employees. However, in the event that the plan is underfunded, the monthly benefit amount can be reduced by the
trustees of the plan. Safeway is not responsible for the underfunded status of the plan which operates in a jurisdiction that does not
require withdrawing employers to pay a withdrawal liability or other penalty. The collective bargaining agreements require
contributions on the basis of hours worked.
(2) Employees on which Safeway contributes under these most significant collective bargaining agreements as a percent of all
employees on which Safeway contributes to the respective fund.
Multiemployer postretirement benefit plans other than pensions Safeway contributes to a number of
multiemployer postretirement benefit plans other than pensions under the terms of its collective bargaining agreements
that cover union-represented employees in the U.S. These plans may provide medical, pharmacy, dental, vision, mental
health and other ancillary benefits to active employees and retirees as determined by the trustees of each plan. These
benefits are not vested. The vast majority of Safeway contributions benefit active employees and, as such, may not
constitute contributions to a postretirement benefit plan. However, Safeway is unable to separate contribution amounts
to postretirement benefit plans other than pensions from contribution amounts paid to active benefit plans. Safeway
contributed $748.0 million in 2011, $704.4 million in 2010 and $715.8 million in 2009 to multiemployer active and
postretirement benefit plans other than pensions. There have been no significant changes that affect the comparability of
2011, 2010 or 2009 contributions.
Note L: Investment in Unconsolidated Affiliates
At year-end 2011, 2010 and 2009, Safeway’s investment in unconsolidated affiliates includes a 49% ownership interest
in Casa Ley, which operated 185 food and general merchandise stores in Western Mexico at year-end 2011.
Equity in earnings from Safeway’s unconsolidated affiliates, which is included in other income, was income of $13.0
million in 2011, income of $15.3 million in 2010 and income of $8.5 million in 2009.
Note M: Commitments and Contingencies
Legal Matters On February 2, 2004, the Attorney General for the State of California filed an action in the United States
District Court for the Central District of California, entitled State of California, ex rel. Bill Lockyer (subsequently ex. rel.
Jerry Brown) v. Safeway Inc. dba Vons, et al., against the Company; 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 entered into by the defendants in connection with the Southern
California grocery strike that began on October 11, 2003 constituted a violation of section 1 of the Sherman Antitrust
Act. The complaint seeks declaratory and injunctive relief. On July 12, 2011, the U.S. Court of Appeals for the Ninth
Circuit, sitting en banc, by an 8-3 vote, affirmed the judgment of the district court in favor of the defendants on the
State’s antitrust claim. The en banc majority rejected defendants’ argument that the agreement at issue was immune
from scrutiny under the federal non-statutory labor exemption from the antitrust laws, but agreed with defendants that
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