Albertsons 2014 Annual Report Download - page 59

the total of all contributions to these plans in a year. As of February 22, 2014, the estimate of the Company’s
share of the underfunding of multiemployer plans to which it contributes was $455, pre-tax, or $269, after-tax.
This represents a decrease in the estimated proportionate share of the underfunding of approximately $27, pre-
tax, or $16, after-tax, as of February 22, 2014, compared to February 23, 2013. The decrease in the Company’s
proportionate share of underfunding is attributable to the changes in contribution rates resulting from
renegotiated collective bargaining agreements, higher than anticipated return on assets and benefit payments in
relation to contributions received. 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Company including actuarial evaluations and other data, and may be outdated or otherwise unreliable. 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.
Company contributions can fluctuate from year to year due to store closures and reductions in headcount. In
fiscal 2015, the Company expects to contribute approximately $35 to $45 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 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 22, 2014:
Payments Due Per Period
Total
Fiscal
2015
Fiscal
2016-
2017
Fiscal
2018-
2019 Thereafter
Contractual obligations (1):
Long-term debt (2) $ 2,520 $ 18 $ 658 $ 30 $ 1,814
Interest on long-term debt (3) 664 146 262 184 72
Operating leases (4) 557 105 184 123 145
Capital leases (5) 367 47 85 74 161
Purchase obligations (6) 283 185 89 9 —
Self-insurance obligations (7) 110 33 37 16 24
Total contractual obligations $ 4,501 $ 534 $ 1,315 $ 436 $ 2,216
(1) Contractual obligations payments per period presented here exclude the Company’s required funding of its
pension and postretirement benefit obligations, which totaled $124 for fiscal 2014, because the timing of
future payments beyond fiscal 2015 cannot be reasonably determined. Pension and postretirement benefit
obligations were $545 as of February 22, 2014. The Company expects to contribute $130 to $140 to pension
and postretirement benefit plans during fiscal 2015. As part of the NAI Banner Sale in fiscal 2014, the
57