Albertsons 2010 Annual Report Download - page 69

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 $95, $79 and
$106 for fiscal 2010, 2009 and 2008, respectively. Plan assets also include 4 shares of the Company’s common
stock as of February 27, 2010 and February 28, 2009.
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, the primary benefits paid
to inactive employees prior to retirement. As of February 27, 2010, the obligation for post-employment
benefits was $63, with $24 included in Accrued vacation, compensation and benefits and $39 included in
Other liabilities.
Multi-Employer Plans
The Company contributes to various multi-employer pension plans under collective bargaining agreements,
primarily defined benefit pension plans. These plans generally provide retirement benefits to participants based
on their service to contributing employers. Based on available information, the Company believes that some of
the multi-employer plans to which it contributes are underfunded. Company contributions to these plans could
increase in the near term. However, the amount of any increase or decrease in contributions will depend on a
variety of factors, including the results of the Company’s collective bargaining efforts, investment returns on
the assets held in the plans, actions taken by the trustees who manage the plans and requirements under the
Pension Protection Act and Section 412(e) of the Internal Revenue Code. Furthermore, if the Company was to
significantly reduce contributions, exit certain markets or otherwise cease making contributions to these plans,
it could trigger a partial or complete withdrawal that would require the Company to fund its proportionate
share of a plan’s unfunded vested benefits. The Company contributed $143, $147 and $142 to these plans for
fiscal 2010, 2009 and 2008, respectively.
The Company also makes contributions to multi-employer health and welfare plans in amounts set forth in the
related collective bargaining agreements. A small minority of collective bargaining agreements contain reserve
requirements that may trigger unanticipated contributions resulting in increased healthcare expenses. If these
healthcare provisions cannot be renegotiated in a manner that reduces the prospective healthcare cost as the
Company intends, the Company’s Selling and administrative expenses could increase in the future.
Collective Bargaining Agreements
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. During fiscal 2010, 33 collective bargaining
agreements covering approximately 29,000 employees expired without their terms being renegotiated. Negoti-
ations are expected to continue with the bargaining units representing the employees subject to those
agreements. During fiscal 2011, 71 collective bargaining agreements covering approximately 12,000 employees
will expire.
NOTE 13—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS
Guarantees
The Company has guaranteed certain leases, fixture financing loans and other debt obligations of various
retailers as of February 27, 2010. These guarantees were generally made to support the business growth of
independent retail customers. The guarantees are generally for the entire terms of the leases or other debt
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