Safeway 2012 Annual Report Download - page 78

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
66
The Company anticipates that total unrecognized tax benefits will be reduced by approximately $33 million
in the next 12 months primarily due to the anticipated settlement of state income tax matters with respect to
the 2002 and 2003 impairment of the Company's investment in Dominick's.
Note K: Employee Benefit Plans and Collective Bargaining Agreements
Pension Plans The Company maintains defined benefit, non-contributory retirement plans for substantially
all of its employees not participating in multiemployer pension plans. Safeway recognizes the funded status
of its retirement plans on its consolidated balance sheet.
The Company's Canadian plan contains a defined contribution feature under which that plan provides an
annual retirement benefit into a fund that is managed by the employee. Contributions are based on the
employee's age, earnings and years of participation in the plan. The Company may also make discretionary
contributions. Contributions under the defined contribution feature totaled $11.6 million in 2012, $11.5 million
in 2011 and $10.7 million in 2010.
Other Post-Retirement Benefits In addition to the Company’s pension plans, 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 Company also sponsors a Retirement Restoration Plan that provides death benefits and
supplemental income payments for senior executives after retirement. All of these Other Post-Retirement
Benefit Plans are unfunded.