Albertsons 2008 Annual Report Download - page 105

SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Defined Contribution Plans
The Company sponsors several defined contribution and profit sharing plans pursuant to Section 401(k) of the
Internal Revenue Code. The total amount contributed by the Company to the plans is determined by plan
provisions or at the discretion of the Company. Total contribution expenses for these plans were $106, $83 and
$16 for fiscal 2008, 2007 and 2006, respectively. Plan assets also include 4 shares of the Company’s common
stock at both February 23, 2008 and February 24, 2007.
Post-Employment Benefits
The Company recognizes an obligation for benefits provided to former or inactive employees. The Company is self-
insured for certain of its employees’ short-term and long-term disability plans, which are the primary benefits paid
to inactive employees prior to retirement. At February 23, 2008, the obligation for post-employment benefits was
$75, with $24 included in Accrued vacation, compensation and benefits and $51 included in Other liabilities.
Multi-Employer Plans
The Company also participates in several multi-employer plans providing defined benefits to union employees
under the provisions of collective bargaining agreements. These plans require the Company to make
contributions thereto as negotiated in such collective bargaining agreements. The Company contributed $142,
$122 and $37 to these plans for fiscal 2008, 2007 and 2006, respectively. Currently, some of these plans are
underfunded in that the present value of accrued liabilities exceeds the current value of the assets held in trust to
pay benefits. If the Company were to exit certain markets or otherwise cease making contributions to these plans
at this time, it could trigger a withdrawal liability that would require the Company to fund its proportionate share
of a plan’s unfunded vested benefits. There are many variables that affect future funding requirements such as
investment returns and benefit levels.
Collective Bargaining Agreements
At February 23, 2008, the Company had approximately 192,000 employees. Approximately 120,000 employees
are covered by collective bargaining agreements. During fiscal 2008, 72 collective bargaining agreements
covering approximately 38,500 employees were renegotiated. During fiscal 2008, 22 collective bargaining
agreements covering approximately 7,200 employees expired without their terms being renegotiated.
Negotiations are expected to continue with the bargaining units representing the employees subject to those
agreements. During fiscal 2009, 99 collective bargaining agreements covering approximately 34,300 employees
will expire.
NOTE 15—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS
The Company has guaranteed certain leases, fixture financing loans and other debt obligations of various retailers
at February 23, 2008. These guarantees were generally made to support the business growth of affiliated retailers.
The guarantees are generally for the entire terms of the leases or other debt obligations with remaining terms that
range from less than one year to 19 years, with a weighted average remaining term of approximately 11 years.
For each guarantee issued, if the affiliated retailer defaults on a payment, the Company would be required to
make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or
personal guarantees of the affiliated retailer. At February 23, 2008, the maximum amount of undiscounted
payments the Company would be required to make in the event of default of all guarantees was approximately
$196 and represented approximately $140 on a discounted basis. Due to indemnification agreements and personal
guarantees, the Company believes the likelihood that it will be required to assume a material amount of these
obligations is remote.
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