Albertsons 2011 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2011 Albertsons annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

The fair value of assets of the Company’s benefit plans held in a master trust as of February 26, 2011, by
asset category, consisted of the following:
Level 1 Level 2 Level 3 Total
Common stock $ 718 $ 33 $ — $ 751
Common collective trusts – fixed income — 276 — 276
Common collective trusts – equity — 199 — 199
Government securities 68 93 — 161
Mutual funds — 149 — 149
Corporate bonds 15 128 — 143
Real estate partnerships — — 95 95
Private equity — — 66 66
Mortgage backed securities — 50 — 50
Other 1 5 — 6
Total plan assets at fair value $ 802 $ 933 $ 161 $ 1,896
The fair value of assets of the Company’s benefit plans held in a master trust as of February 27, 2010, by
asset category, consisted of the following:
Level 1 Level 2 Level 3 Total
Common stock $ 644 $ 28 $ — $ 672
Common collective trusts – fixed income — 232 — 232
Common collective trusts – equity — 227 — 227
Government securities 52 86 — 138
Mutual funds 1 8 — 9
Corporate bonds 1 175 — 176
Private equity — — 35 35
Mortgage backed securities — 65 — 65
Other — 3 — 3
Total plan assets at fair value $ 698 $ 824 $ 35 $ 1,557
The following is a summary of changes in the fair value for level 3 investments for 2011 and 2010:
Real Estate
Partnerships Private Equity
Beginning balance, March 1, 2009 $ — $ 14
Unrealized gains relating to instruments still held at the reporting date — 3
Purchases, sales, issuances and settlements (net) — 18
Ending balance, February 27, 2010 — 35
Unrealized gains relating to instruments still held at the reporting date 8 9
Purchases, sales, issuances and settlements (net) 87 22
Ending balance, February 26, 2011 $ 95 $ 66
Contributions
The Company expects to contribute $70 to its defined benefit pension plans and $8 to its postretirement
benefit plans in fiscal 2012. The Company’s funding policy for the defined benefit pension plans is to
contribute the minimum contribution allowed under the Employee Retirement Income Security Act of 1974, as
amended, with consideration given to contributing larger amounts in order to be exempt from Pension Benefit
Guaranty Corporation variable rate premiums or participant notices of underfunding. The Company will
recognize contributions in accordance with applicable regulations, with consideration given to recognition for
the earliest plan year permitted.
60