Safeway 2012 Annual Report Download - page 84

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
72
The fair value of Safeway’s pension plan assets at December 31, 2011, excluding pending transactions of
$28.2 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 (1) $14.1 $ 14.2 $ (0.1) $ —
Short-term investment collective trust (2) 33.6 — 33.6 —
Common and preferred stock: (3)
Domestic common and preferred
stock 477.0 476.5 0.5 —
International common stock 34.6 34.6 — —
Common collective trust funds (2) 700.3 —700.3 —
Corporate bonds (4) 82.7 — 80.0 2.7
Mortgage- and other asset-backed
securities (5) 52.8 — 52.8 —
Mutual funds (6) 32.3 32.3 — —
U.S. government securities (7) 220.3 —220.2 0.1
Other securities (8) 21.9 — 21.9 —
Total $ 1,669.6 $557.6 $ 1,109.2 $ 2.8
(1) The carrying value of these items approximates fair value.
(2) These investments are valued based on the Net Asset Value (“NAV”) of the underlying investments and
are provided by the fund issuers.
(3) The fair value of common and preferred stock is generally based on the exchange quoted market prices.
When quoted prices are not available for identical stock, an industry standard valuation model is used which
maximizes observable inputs.
(4) The fair value of corporate bonds is generally based on yields currently available on comparable securities
of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the
fair value is based upon an industry valuation model, which maximizes observable inputs.
(5) The fair value of mortgage- and other asset-backed securities is generally based on yields currently
available on comparable securities of issuers with similar credit ratings. When quoted prices are not available
for comparable securities, the fair value is based upon an industry model which maximizes observable inputs.
(6) These investments are publicly traded investments which are valued using the NAV. The NAV of the mutual
funds is a quoted price in an active market. The NAV is determined once a day after the closing of the
exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a per-share
basis.
(7) The fair value of U.S. government securities is based on quoted market prices when available. When
quoted prices are not available, the fair value of U.S. government securities is based on yields currently
available on comparable securities or on an industry valuation model which maximizes observable inputs.
(8) Other securities, which consist primarily of U.S. municipal bonds, foreign government bonds and foreign
agency securities are valued based on yields currently available on comparable securities of issuers with
similar credit ratings.
Valuation techniques are described earlier in this note. See Note F for a discussion of levels.