Safeway 2012 Annual Report Download - page 81

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
69
The actuarial assumptions used to determine year-end projected benefit obligations for pension plans were
as follows:
2012 2011 2010
Discount rate:
United States plans 4.20% 4.94% 5.69%
Canadian plans 4.00% 4.25% 5.00%
Combined weighted-average rate 4.16% 4.80% 5.55%
Rate of compensation increase:
United States plans 3.00% 3.00% 3.00%
Canadian plans 2.75% 2.75% 2.50%
The actuarial assumptions used to determine net periodic benefit costs for pension plans were as follows:
2012 2011 2010
Discount rate:
United States plans 4.94% 5.69% 6.20%
Canadian plans 4.25% 5.00% 5.80%
Combined weighted-average rate 4.80% 5.55% 6.10%
Expected return on plan assets:
United States plans(1) 7.75% 8.50% 8.50%
Canadian plans(2) 6.50% 6.75% 7.00%
Rate of compensation increase:
United States plans 3.00% 3.00% 3.00%
Canadian plans 2.75% 2.50% 3.00%
(1) Reduced to 7.50% in 2013.
(2) Reduced to 6.25% in 2013.
The Company has adopted and implemented an investment policy for the defined benefit pension plans that
incorporates a strategic long-term asset allocation mix designed to meet the Company’s long-term pension
requirements. This asset allocation policy is reviewed annually and, on a regular basis, actual allocations
are rebalanced to the prevailing targets. The following table summarizes actual allocations for Safeway’s
plans at year-end:
Plan assets
Asset category Target 2012 2011
Equity 65% 64.3% 65.5%
Fixed income 35% 33.0% 33.3%
Cash and other — 2.7% 1.2%
Total 100% 100.0% 100.0%