Albertsons 2010 Annual Report Download - page 14

The Company registers a substantial number of its trademarks/service marks in the United States Patent and
Trademark Office, including many of its private-label product trademarks and service marks. U.S. trademark
and service mark registrations are generally for a term of 10 years, renewable every 10 years as long as the
trademark is used in the regular course of trade. The Company considers certain of its trademarks and service
marks to be of material importance to its Retail food and Supply chain services businesses and actively
defends and enforces such trademarks and service marks.
Working Capital
Normal operating fluctuations in working capital balances can result in changes to cash flow from operations
presented in the Consolidated Statements of Cash Flows that are not necessarily indicative of long-term
operating trends. There are no unusual industry practices or requirements relating to working capital items.
Competition
The Company’s Retail food and Supply chain services businesses are highly competitive. The Company
believes that the success of its Retail food and Supply chain services businesses are dependent upon the ability
of its own stores and stores licensed by the Company, as well as the stores of independent retail customers it
supplies, to compete successfully with other retail food stores. Principal competition comes from traditional
grocery retailers, including regional and national chains and independent food store operators, and non-
traditional retailers, such as supercenters, membership warehouse clubs, specialty supermarkets, drug stores,
discount stores, dollar stores, convenience stores and restaurants. The Company believes that the principal
competitive factors faced by its own stores and stores licensed by the Company, as well as the stores of
independent retail customers it supplies, include price, quality, assortment, brand recognition, store location,
in-store marketing and merchandising, promotional strategies and other competitive activities.
The traditional wholesale distribution component of the Company’s Supply chain services business competes
directly with a number of traditional grocery wholesalers. The Company believes it competes in this business
on the basis of price, quality, assortment, schedule and reliability of deliveries, service fees and distribution
facility locations.
Employees
As of February 27, 2010, the Company had approximately 160,000 employees. Approximately 106,000 employ-
ees are covered by collective bargaining agreements. During fiscal 2010, 46 collective bargaining agreements
covering approximately 16,000 employees were renegotiated and 33 collective bargaining agreements covering
approximately 29,000 employees expired without their terms being renegotiated. Negotiations are expected to
continue with the bargaining units representing the employees subject to those expired agreements. During
fiscal 2011, 71 collective bargaining agreements covering approximately 12,000 employees will expire. The
Company is focused on ensuring competitive cost structures in each market in which it operates while meeting
its employees’ needs for attractive wages and affordable healthcare and retirement benefits. The Company
believes that it has generally good relations with its employees and with the labor unions that represent
employees covered by collective bargaining agreements.
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