Safeway 2008 Annual Report Download - page 24

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SAFEWAY INC. AND SUBSIDIARIES
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K for Safeway Inc. (“Safeway” or the “Company”) contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. The Company also provides forward-looking statements in other materials which are released to the public,
as well as oral forward-looking statements.Forward-looking statements contain information about our future operating
or financial performance. Forward-looking statements are based on our current expectations and involve risks and
uncertainties, which may be beyond our control, as well as assumptions. If assumptions prove to be incorrect or if known
or unknown risks and uncertainties materialize into actual events or circumstances, actual results could differ materially
from those included in or contemplated or implied by these statements. Forward-looking statements do not strictly relate
to historic or current facts. Forward-looking statements are indicated by words or phrases such as “continuing,”
“ongoing,” “expects,” “estimates,” “anticipates,” “believes,” “guidance” and similar words or phrases and the negative
of such words or phrases.
This Annual Report on Form 10-K includes forward-looking statements relating to, among other things: changes in retail
square footage and store count; improved inventory shrink; changes to the total closed store reserve; uses of cash; ability
to borrow under bank credit facilities; sufficiency of liquidity; indemnification obligations; dividend payments on common
stock; cash capital expenditures; efforts to revitalize operations in certain markets; outcomes of legal proceedings; the
effect of new accounting standards; compliance with laws and regulations; pension plan expense and contributions;
obligations and payments under benefit plans; the rate of return on pension assets; total unrecognized tax benefits;
amount of indebtedness; and Lifestyle stores. The following are among the principal factors that could cause actual
results to differ materially from those included in or contemplated or implied by the forward-looking statements:
• General business and economic conditions in our operating regions, including the rate of inflation, consumer
spending levels, currency valuations, population, employment and job growth in our markets;
• Pricing pressures and competitive factors, which could include pricing strategies, store openings, remodels or
acquisitions by our competitors;
• Results of our programs to control or reduce costs, improve buying practices and control shrink;
• Results of our programs to increase sales;
• Results of our continuing efforts to expand corporate brands;
• Results of our programs to improve our perishables departments;
• Results of our promotional programs;
• Results of our capital program;
• Results of our efforts to improve working capital;
• Results of any ongoing litigation in which we are involved or any litigation in which we may become involved;
• The resolution of uncertain tax positions;
• The ability to achieve satisfactory operating results in all geographic areas where we operate;
• Changes in the financial performance of our equity investments;
• Labor costs, including benefit plan costs and severance payments, or labor disputes that may arise from time to time
and work stoppages that could occur in areas where certain collective bargaining agreements have expired or are on
indefinite extensions or are scheduled to expire in the near future;
• Failure to fully realize or delay in realizing growth prospects for new business ventures, including Blackhawk Network
Holdings, Inc. (“Blackhawk”);
• Legislative, regulatory, tax, accounting or judicial developments, including with respect to Blackhawk;
• The cost and stability of fuel, energy and other power sources;
• The impact of the cost of fuel on gross margin and identical-store sales;
• Discount rates used in actuarial calculations for pension obligations and self-insurance reserves;
• The rate of return on our pension assets;
• The availability and terms of financing, including interest rates and our ability to issue commercial paper or issue
public debt or to borrow under our lines of credit as a result of current financial market conditions;
• Adverse developments with regard to food and drug safety and quality issues or concerns that may arise;
• Loss of a key member of senior management;
• Data security or other information technology issues that may arise;
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