Safeway 2013 Annual Report Download - page 93

Table of Contents



Safeway applies the accounting guidance for guarantees to the Company’s agreements that contain guarantee and indemnification clauses.
This guidance requires that, upon issuance of a guarantee, the guarantor must disclose and recognize a liability for the fair value of the
obligation it assumes under the guarantee. As of December 28, 2013, Safeway did not have any material guarantees.
However, the Company is party to a variety of contractual agreements under which Safeway may be obligated to indemnify the other party for
certain matters. These contracts primarily relate to Safeway’s commercial contracts, operating leases, including those that have been
assigned, and other real estate contracts, trademarks, intellectual property, financial agreements and various other agreements. Under these
agreements, the Company may provide certain routine indemnifications relating to representations and warranties (for example, ownership
of assets, environmental or tax indemnifications) or personal injury matters. The terms of these indemnifications range in duration and may
not be explicitly defined. Historically, Safeway has not made significant payments for these indemnifications. The Company believes that if it
were to incur a loss in any of these matters, the loss would not have a material effect on the Company’s financial condition or results of
operations.

Total comprehensive earnings are defined as all changes in stockholders' equity during a period, other than those resulting from investments
by and distributions to stockholders. Generally, for Safeway, total comprehensive earnings equals net earnings plus or minus adjustments
for pension and other post-retirement liabilities and foreign currency translation adjustments. Total comprehensive earnings represent the
activity for a period net of tax and were $179.7 million in 2013, a loss of $12.3 million in 2012 and a loss of $149.5 million in 2011.
While total comprehensive earnings is the activity in a period and is largely driven by net earnings in that period, accumulated other
comprehensive income or loss ("AOCI") represents the cumulative balance of other comprehensive income, net of tax, as of the balance
sheet date. For Safeway, AOCI is primarily the cumulative balance related to pension and other post-retirement benefit adjustments and
foreign currency translation adjustments. Changes in the AOCI balance by component are shown below (in millions):












Beginning balance
$(472.3)
$399.0
$(0.5)
$(73.8)
Other comprehensive income (loss) before
reclassifications
266.6
(65.0)
(1.7)
199.9
Amounts reclassified from accumulated
other comprehensive income
105.0
—
—
105.0
Tax (benefit) expense
(125.8)
—
0.6
(125.2)
Net current-period other comprehensive
income (loss)
245.8
(65.0)
(1.1)
179.7
Sale of CSL
95.8
(472.8)
—
(377.0)
Ending balance
$(130.7)
$(138.8)
$(1.6)
$(271.1)
91