Albertsons 2011 Annual Report Download - page 65

Estimated Future Benefit Payments
The estimated future benefit payments to be paid from the Company’s defined benefit pension plans and other
postretirement benefit plans, which reflect expected future service, are as follows:
Fiscal Year Pension Benefits
Other Postretirement
Benefits
2012 $ 92 $ 8
2013 98 8
2014 108 9
2015 114 9
2016 123 10
Years 2017-2021 765 56
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 $94, $95 and
$79 for fiscal 2011, 2010 and 2009, respectively. Plan assets also include 4 shares of the Company’s common
stock as of February 26, 2011 and February 27, 2010.
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 26, 2011, the obligation for post-employment benefits was
$47, with $24 included in Accrued vacation, compensation and benefits, and $23 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 $135, $143 and
$147 to these plans for fiscal 2011, 2010 and 2009, 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 26, 2011, the Company had approximately 142,000 employees. Approximately 88,000 employees
are covered by collective bargaining agreements. During fiscal 2011, 61 collective bargaining agreements
covering approximately 17,000 employees were renegotiated and 37 collective bargaining agreements covering
approximately 2,000 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 2012,
59 collective bargaining agreements covering approximately 26,000 employees will expire.
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