Albertsons 2012 Annual Report Download - page 41

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$126, pre-tax, or $78, after-tax, as of February 25, 2012, compared to February 26, 2011. The increase in the
amount of underfunding is attributable to the changes in contribution rates resulting from renegotiated collective
bargaining agreements and lower than anticipated return on assets. The estimate is based on the most current
information available to the Company including actuarial evaluations and other data, and may be outdated or
otherwise unreliable.
In fiscal 2012, the Company contributions to multiemployer plans decreased approximately 5 percent over the
prior year, primarily due to store closures and reductions in headcount. In fiscal 2011, the Company contributions
to multiemployer plans decreased approximately 17 percent over the prior year mainly due to store closures,
reductions in headcount and previously announced market exits. In fiscal 2013, the Company expects to
contribute approximately $142 to the multiemployer pension plans, subject to the outcome of collective
bargaining and capital market conditions. Furthermore, if the Company were 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 record a withdrawal liability. Any withdrawal
liability would be recorded when it is probable that a liability exists and can be reasonably estimated, in
accordance with accounting standards.
The Company’s proportionate share of underfunding described above is an estimate and could change based on
the results of collective bargaining efforts, investment returns on the assets held in the plans, actions taken by
trustees who manage the plans’ benefit payments and requirements under the Pension Protection Act of 2006 and
Section 412(e) of the Internal Revenue Code.
The Company also makes contributions to multiemployer 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.
CONTRACTUAL OBLIGATIONS
The following table represents the Company’s significant contractual obligations as of February 25, 2012.
Payments Due Per Period
Total
Fiscal
2013
Fiscal
2014-
2015
Fiscal
2016-
2017 Thereafter
Contractual Obligations:
Long-term debt (1) $ 5,376 $ 324 $ 787 $1,596 $ 2,669
Interest on long-term debt (2) 3,531 356 671 517 1,987
Capital leases (3) 1,861 146 287 272 1,156
Operating leases (4) 2,654 310 606 485 1,253
Benefit obligations (5) 6,930 152 277 297 6,204
Construction commitments 117 115 2 — —
Deferred income taxes 478 (54) 56 56 420
Purchase obligations (6) 650 379 249 22 —
Self-insurance obligations 1,115 237 300 171 407
Total $22,712 $1,965 $3,235 $3,416 $ 14,096
37