Albertsons 2013 Annual Report Download - page 90

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that purpose. Plan trustees typically are responsible for determining the level of benefits to be provided to
participants as well as the investment of the assets and plan administration. Trustees are appointed in equal
number by employers and unions parties to the collective bargaining agreement.
Expense is recognized in connection with these plans as contributions are funded, in accordance with U.S.
generally accepted accounting standards. The Company contributed $38, $38 and $37 to these plans for fiscal
years 2013, 2012 and 2011, respectively. The risks of participating in these multiemployer plans are different
from the risks associated with single-employer plans in the following respects:
a. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to
employees of other participating employers.
b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be
borne by the remaining participating employers.
c. If the Company chooses to stop participating in some multiemployer plans, or makes market exits or
store closures or otherwise has participation in the plan drop below certain levels, the Company may be
required to pay those plans an amount based on the underfunded status of the plan, referred to as a
withdrawal liability.
The Company’s participation in these plans is outlined in the table below. The EIN-Pension Plan Number column
provides the Employee Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless
otherwise noted, the most recent Pension Protection Act zone status (“PPA”) available in 2013 and 2012 relates
to the plans’ two most recent fiscal year-ends. The zone status is based on information that the Company
received from the plan and is certified by each plan’s actuary. Among other factors, red zone status plans are
generally less than 65 percent funded and are considered in critical status, plans in yellow zone or orange zone
status are less than 80 percent funded and are considered endangered or seriously endangered status, and green
zone plans are at least 80 percent funded. The FIP/RP Status Pending/Implemented column indicates plans for
which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been
implemented by the trustees of each plan.
Certain plans have been aggregated in the All Other Multiemployer Pension Plans line in the following table, as
the contributions to each of these plans are not individually material. None of the Company’s collective
bargaining agreements require that a minimum contribution be made to these plans. Finally, the number of
employees covered by the Company’s multiemployer plans decreased by 2 percent from 2013 to 2012 and by
6 percent from 2012 to 2011, affecting the period-to-period comparability of the contributions for years 2013,
2012 and 2011. The reduction in covered employees corresponded to store closures and reductions in headcount.
At the date the financial statements were issued, Forms 5500 were generally not available for the plan years
ending in 2012.
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