Safeway 2010 Annual Report Download

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2010 ANNUAL REPORT

Table of contents

  • Page 1
    2010 ANNUAL REPORT

  • Page 2
    ...694 2009 2008 Sales and other revenue Gross profit Operating profit (loss)1 Net income (loss) attributable to Safeway Inc.1 Diluted earnings (loss) per share1 Cash paid for capital expenditures At year-end Common shares outstanding (in millions)2 Retail square feet (in millions) Number of stores...

  • Page 3
    ...-end 2010 Milk Plants Bakery Plants Ice Cream Plants Cheese & Meat Packing Plants Soft Drink Bottling Plants Fruit & Vegetable Processing Plants Cake Commissary U.S. 6 6 2 - 4 1 1 20 Canada 3 2 2 2 - 3 - 12 Year-end 2010 Specialty Departments Deli Floral Bakery Pharmacy Starbucks Fuel Stations...

  • Page 4
    ... options for our customers. We added new products and new brands such as Open Natureâ„¢ to our Health and Wellness portfolio. The Open Natureâ„¢ line of natural products launched at the end of 2010 in a select number of stores, offering great-tasting, 100% natural food products with no artificial...

  • Page 5
    ... growth, due to productivity gains domestically and new partners internationally. In addition to the Gift Card Mallâ„¢, customizable e-gift cards are also available online. The health and wellness of our employees is paramount at Safeway. Our programs have helped thousands of employees make positive...

  • Page 6
    ... stores to the time they check out, we convey a clear message that Safeway has high quality food offerings, and we back it up without compromise. Our strict standards ensure that the freshness, taste and appearance of our products are second to none. Finest Quality Produce Meat Deli/Food Service...

  • Page 7
    ...to the line of individual entrees. We also continue to refine the items offered in our bakeries to reflect customers' tastes and preferences. We've returned to nature as well, and have begun rolling out one of the industry's highest quality natural food brands, Open Natureâ„¢. These products use 100...

  • Page 8
    .... Each Lifestyle remodel shares common elements, but is also unique and customized to reflect the individual needs and personality of each community. We have found that our remodeled stores not only positively affect the comfort level of our shoppers, but also boost employee morale and productivity...

  • Page 9
    ... comes from the store environment. Today's consumers seek a comfortable and appealing shopping experience. That is the philosophy behind our Lifestyle stores, to offer high quality perishables and create an inviting atmosphere and warm ambiance at every Safeway location. Great Stores 7

  • Page 10
    ... strategy to gain customer loyalty, we made a commitment to help customers stretch their budgets by lowering everyday prices on thousands of products. This was the centerpiece of our ambitious Promise campaign. We remain committed to providing these everyday values and our great Club Card specials...

  • Page 11
    ...very highest levels. The Promise campaign conveyed this message of increased value to our customers, and they responded positively. At the same time, we continued to deliver thousands of weekly Club Card specials to our customers, adding to the value they can achieve each week in our stores. We have...

  • Page 12
    ... two new lines-Open Natureâ„¢ natural food products and InKindâ„¢ 90%+ natural personal care products. Innovative businesses like Blackhawk Network, featuring more than 300 pre-paid gift and payment cards, and Safeway Health, designed to help companies incentivize their employees to make healthy...

  • Page 13
    We operate in a highly competitive industry that is subject to ever-shifting market dynamics. The power of successful brands that fulfill a need and connect with consumers has never been greater. Throughout 2010, we improved our existing brands while bringing new ones on board, all of which were ...

  • Page 14
    ...socially responsible company, we are fully engaged in pursuing growth through leadership in environmental, socially responsible and ethical business practices. We also take the overall development of our employees very seriously, while championing development, diversity, inclusion and the well-being...

  • Page 15
    ... wellness program, which offers employees insurance premium discounts for meeting health-related criteria. Safeway recognizes that every year consumers become more sensitive to the nutritional value of what they consume and what products they use in their homes. Several of our private label brands...

  • Page 16
    ... and Investor Relations Paul McTavish Randall's Food & Drugs, LP Arun Sarin Former Chief Executive Officer Vodafone Group Plc. David R. Stern Senior Vice President Planning and Business Development Gregory A. Sparks Seattle Division Michael S. Shannon Managing Director KSL Capital Partners LLC...

  • Page 17
    ... transition period from to Commission file number 1-00041 SAFEWAY INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 5918 Stoneridge Mall Road Pleasanton, California (Address of principal executive offices) Registrant...

  • Page 18
    ... filer X Smaller reporting company Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No X. Accelerated filer Non-accelerated filer State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by...

  • Page 19
    ..., and Director Independence Principal Accountant Fees and Services Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative...

  • Page 20
    ...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; Adverse developments with regard to food and drug...

  • Page 21
    ...the 52-week period ended January 2, 2010 ("fiscal 2009" or "2009") and the 53-week period ended January 3, 2009 ("fiscal 2008" or "2008"). Safeway Inc. is one of the largest food and drug retailers in North America, with 1,694 stores at year-end 2010. The Company's U.S. retail operations are located...

  • Page 22
    .... Merchandising Safeway's operating strategy is to provide value to its customers by maintaining high store standards and a wide selection of high-quality products at competitive prices. To provide one-stop shopping for today's busy shoppers, the Company emphasizes high-quality produce and meat and...

  • Page 23
    ... long-term growth strategy is its capital expenditure program. The Company's capital expenditure program funds, among other things, new stores, remodels, retail shopping center development, manufacturing plants, distribution facilities and information technology. Safeway's management has maintained...

  • Page 24
    ...affect the Company's business are location, quality, price, service, selection and condition of assets. We face intense competition from traditional grocery retailers, non-traditional competitors such as supercenters and club stores, as well as from specialty supermarkets, drug stores, dollar stores...

  • Page 25
    ... reduction, distribution center efficiencies, energy efficiency programs and other similar strategies. Our failure to achieve forecasted cost reductions, revenue growth or gross margin improvement across the Company might have a material adverse effect on our business. Changes in our product mix...

  • Page 26
    ... faces competition from other companies that offer similar products. This could limit Blackhawk's future growth; Blackhawk is substantially dependent on the continuous operation and security of its information technology applications and infrastructure; A significant portion of Blackhawk's revenues...

  • Page 27
    ..., state, local and foreign laws, regulations and administrative practices that affect our business. We must comply with numerous provisions regulating health and sanitation standards, food labeling, energy, equal employment opportunity, minimum wages and licensing for the sale of food, drugs and...

  • Page 28
    ... efforts and technology to secure our computer network and payment cardholder data, security could be compromised, confidential information could be misappropriated or system disruptions could occur. This could lead to loss of sales or profits or cause the Company to incur significant costs to...

  • Page 29
    ... II, Item 7A of this report under the caption "Commodity Price Risk." Safeway also sells fuel. Significant increases in wholesale fuel costs could result in retail price increases and in lower gross profit on fuel sales. Additionally, consumer demand for fuel may decline if retail prices increase...

  • Page 30
    ... and Chief Executive Officer Diane M. Dietz (1) Executive Vice President and Chief Marketing Officer Robert L. Edwards Executive Vice President and Chief Financial Officer Bruce L. Everette Executive Vice President Retail Operations Larree M. Renda Executive Vice President President, Safeway Health...

  • Page 31
    ...her appointment as Executive Vice President in 2007, she served Procter & Gamble in various positions since 1989. (2) Russell M. Jackson was appointed as Senior Vice President, Human Resources, of the Company in March 2007. Prior to joining Safeway, he was employed with PG&E Corporation for 27 years...

  • Page 32
    ... Purchases of Equity Securities The Company's common stock, $0.01 par value, is listed on the New York Stock Exchange. Information on dividends declared per common share is set forth in Part II, Item 7 of this report. The following table presents quarterly high and low sales prices for the Company...

  • Page 33
    ... INC. AND SUBSIDIARIES Issuer Purchases of Equity Securities Total number of shares purchased as part of publicly announced plans or programs - 4,120,000 3,373,400 - 7,493,400 Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (3) $ 825.5 732...

  • Page 34
    ... INC., Whole Foods Market, Inc. and Winn-Dixie Stores, Inc. Winn-Dixie Stores, Inc. started trading in November 2006, and their initial offering price is used as the FYE 05 value. The performance graph above is being furnished solely to accompany this annual report on Form 10-K pursuant to Item 201...

  • Page 35
    ...millions, except per-share amounts) Results of Operations Sales and other revenue Gross profit Operating and administrative expense Goodwill impairment charge Operating profit (loss) Interest expense Other income, net Income (loss) before income taxes Income taxes Net income (loss) before allocation...

  • Page 36
    ... of sales (2) Operating (loss) profit as a percentage of sales (3) Cash paid for property additions Depreciation expense Total assets (3) Total debt Total equity (3) Other Statistics Stores opened during the year Stores closed during the year Total stores at year end Remodels completed (4) Lifestyle...

  • Page 37
    ... in price and deflation. Customer counts increased slightly, and average transaction size decreased during fiscal 2009. Gross Profit Gross profit represents the portion of sales revenue remaining after deducting the cost of goods sold during the period, including purchase and distribution costs...

  • Page 38
    ... The impact from fuel sales increased gross profit margin 59 basis points. The offsetting 35 basis-point decline was largely the result of investments in everyday prices and higher advertising expense, partly offset by lower LIFO expense, higher gift card revenue and higher energy costs. LIFO income...

  • Page 39
    ... paid loss and incurred loss development trends to current cash and incurred expected losses in order to estimate total losses. We then discount total expected losses to their present value using a risk free rate of return. Any actuarial projection of self-insured losses is subject to a high degree...

  • Page 40
    ... A lower discount rate increases the present value of benefit obligations and increases pension expense. Expected return on pension plan assets is based on historical experience of the Company's portfolio and the review of projected returns by asset class on broad, publicly traded equity and fixed...

  • Page 41
    ... company method and the discounted cash flow method. These methods are based on historical and forecasted amounts specific to each reporting unit and consider, sales, gross profit, operating profit and cash flows and general economic and market conditions, as well as the impact of planned business...

  • Page 42
    ...paper program and credit agreement. Free cash flow Free cash flow is calculated as net cash flow from operating activities adjusted to exclude payables related to third-party gift cards, net of receivables, less net cash flow used by investing activities. Cash from the sale of third-party gift cards...

  • Page 43
    ...Company's business. Free cash flow is also a useful indicator of Safeway's ability to service debt and fund share repurchases that management believes will enhance stockholder value. This non-GAAP financial measure should not be considered as an alternative to net cash flow from operating activities...

  • Page 44
    ...Registration On December 8, 2008, the Company filed a shelf registration statement (the "Shelf") with the SEC which permits Safeway to issue an unlimited amount of debt securities and/or common stock. The Shelf expires on December 8, 2011. The Safeway Board of Directors has authorized issuance of up...

  • Page 45
    ... Interest on self-insurance liability Operating leases (3) Marketing development funds Contracts for purchase of property, equipment and construction of buildings Fixed-price energy contracts (4) Other purchase obligations Total $ 505.6 $ 240.6 30.7 47.1 129.5 1.3 470.5 15.4 2012 801.7 $ 223.6 31...

  • Page 46
    ... manages interest rate risk through the use of fixed- and variable-interest rate debt and, from time to time, interest rate swaps. See Note E to the consolidated financial statements set forth in Part II, Item 8 of this report. The table below presents information on interest rate swaps at year-end...

  • Page 47
    ...Page Management's Annual Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Consolidated Statements of Operations for fiscal 2010, 2009 and 2008 Consolidated Balance Sheets as of the end of fiscal 2010 and 2009 Consolidated Statements of Cash...

  • Page 48
    ... financial statements and the Company's internal control over financial reporting. The report of the independent registered public accounting firm is included in this Annual Report on Form 10-K and begins on the following page. STEVEN A. BURD Chairman, President and Chief Executive Officer...

  • Page 49
    ... on these financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform...

  • Page 50
    ... of Operations (In millions, except per-share amounts) 52 Weeks 2010 Sales and other revenue Cost of goods sold Gross profit Operating and administrative expense Goodwill impairment charge Operating profit (loss) Interest expense Other income, net Income (loss) before income taxes Income taxes Net...

  • Page 51
    ... Consolidated Balance Sheets (In millions, except per-share amounts) Year-end 2010 Assets Current assets: Cash and equivalents Receivables Merchandise inventories, net of LIFO reserve of $35.1 and $63.1 Prepaid expenses and other current assets Total current assets Property: Land Buildings Leasehold...

  • Page 52
    ... under capital leases Total long-term debt Deferred income taxes Pension and post-retirement benefit obligations Accrued claims and other liabilities Total liabilities Commitments and contingencies Stockholders' equity: Common stock: par value $0.01 per share; 1,500 shares authorized; 599.8 and...

  • Page 53
    ... Changes in working capital items: Receivables Inventories at FIFO cost Prepaid expenses and other current assets Income taxes Payables and accruals Payables related to third-party gift cards, net of receivables Net cash flow from operating activities Investing Activities: Cash paid for property...

  • Page 54
    ...tax benefit from exercise of stock options Income tax refund related to prior years' debt financing Payment of debt issuance costs Other Net cash flow used by financing activities Effect of changes in exchange rates on cash Increase in cash and equivalents Cash and Equivalents: Beginning of year End...

  • Page 55
    ... Share-based employee compensation Options exercised Other Balance, end of year Treasury Stock Balance, beginning of year Purchase of treasury stock Options exercised Other Balance, end of year Retained Earnings Balance, beginning of year Net income (loss) attributable to Safeway Inc. Cash dividends...

  • Page 56
    ...' Equity (In millions, except per-share amounts) 52 Weeks 2010 Comprehensive Income (Loss) Net income (loss) before allocation to noncontrolling interests Translation adjustments, net of tax Pension and post-retirement benefits adjustment to funded status Recognition of pension and post-retirement...

  • Page 57
    ... Financial Statements Note A: The Company and Significant Accounting Policies The Company Safeway Inc. ("Safeway" or the "Company") is one of the largest food and drug retailers in North America, with 1,694 stores as of year-end 2010. Safeway's U.S. retail operations are located principally...

  • Page 58
    ... value. The FIFO cost of inventory approximates replacement or current cost. The Company performs physical counts of perishable inventory in stores every four weeks and nonperishable inventory in stores and all distribution centers twice a year. The Company uses a combination of the retail inventory...

  • Page 59
    ... Self-Insurance The Company is primarily self-insured for workers' compensation, automobile and general liability costs. The self-insurance liability is determined actuarially, based on claims filed and an estimate of claims incurred but not yet reported, and is discounted using a risk-free rate of...

  • Page 60
    ... markets, the Company uses those interest rates that are currently available to it for issuance of debt with similar terms and remaining maturities as a discount rate for the remaining principal payments. Store Lease Exit Costs and Impairment Charges Safeway regularly reviews its stores' operating...

  • Page 61
    ... of pension and post-retirement benefits actuarial loss Other Ending balance 2009 2008 $ 393.3 $ 302.7 $ 140.5 (447.8) (408.8) (406.8) 145.0 95.9 41.0 (2.5) (3.6) (3.4) $ 88.0 $ (13.8) $ (228.7) Stock-Based Employee Compensation Safeway accounts for all share-based payments to employees, including...

  • Page 62
    ...discounted cash flow method. These methods are based on historical and forecasted amounts specific to each reporting unit and consider sales, gross profit, operating profit and cash flows and general economic and market conditions, as well as the impact of planned business and operational strategies...

  • Page 63
    ...AND SUBSIDIARIES Notes to Consolidated Financial Statements Note D: Financing Notes and debentures were composed of the following at year end (in millions): 2010 Commercial paper Bank credit agreement, unsecured Other bank borrowings, unsecured Mortgage notes payable, secured 4.95% Senior Notes due...

  • Page 64
    ...-end 2010 and year-end 2009, the estimated fair value of debt, including current maturities, was $4.6 billion and $4.7 billion, respectively. Note E: Financial Instruments Safeway manages interest rate risk through the strategic use of fixed- and variable-interest rate debt and, from time to time...

  • Page 65
    ..., under which the Company agrees to pay variable rates of interest, are designated as fair value hedges of fixed-rate debt. The gain or loss on the interest rate swap agreements, as well as the gain or loss on the debt being hedged, are recognized in current earnings. Safeway includes the gain or...

  • Page 66
    ...in Other Assets on the balance sheet. (3) Included in Accrued Claims and Other Liabilities on the balance sheet. A reconciliation of the beginning and ending balances for Level 3 liabilities for the year ended January 1, 2011 follows (in millions): Other Warrants Total Balance as of January 2, 2010...

  • Page 67
    ... estate taxes) and discounting them using a risk-adjusted rate of interest. Safeway estimates future cash flows based on its experience and knowledge of the market in which the store is located and, when necessary, uses real estate brokers. During fiscal 2010, long-lived assets with a carrying value...

  • Page 68
    ... on individual store sales. 2009 $445.0 8.5 (11.3) 442.2 26.3 $468.5 2008 $454.2 12.8 (9.9) 457.1 28.9 $486.0 Note H: Interest Expense Interest expense consisted of the following (in millions): 2010 Commercial paper Bank credit agreement Other bank borrowings Mortgage notes payable 4.125% Senior...

  • Page 69
    ... Option Plans Under Safeway's stock option plans, the Company may grant incentive and non-qualified options to purchase common stock at an exercise price equal to or greater than the fair market value at the grant date, as determined by the Executive Compensation Committee of the Board of Directors...

  • Page 70
    ...cost is expected to be recognized over a weighted average period of 2.6 years. Additional Stock Plan Information Safeway accounts for stock-based employee compensation in accordance with generally accepted accounting principles for stock compensation. The Company determines fair value of such awards...

  • Page 71
    ... Notes to Consolidated Financial Statements Total share-based compensation expenses recognized as a component of operating and administrative expense is as follows (in millions): 2010 Share-based compensation expense Income tax benefit Share-based compensation expense recognized in earnings...

  • Page 72
    ...as follows (in millions): 2010 Deferred tax assets: Pension liability Workers' compensation and other claims Employee benefits Accrued claims and other liabilities Charitable contribution carryforwards Reserves not currently deductible Operating loss carryforwards Other assets $ 244.1 187.7 175.0 74...

  • Page 73
    ... Financial Statements A reconciliation of the beginning and ending amount of unrecognized tax benefits follows (in millions): 2010 Balance at beginning of year Additions based on tax positions related to the current year Additions for tax positions of prior years Reductions based on tax positions...

  • Page 74
    ...changes in the retirement plans' benefit obligation and fair value of assets over the two-year period ended January 1, 2011 and a statement of the funded status as of year-end 2010 and year-end 2009. Activity for 2009 includes the removal of the Canadian money purchase plan which had been previously...

  • Page 75
    ... Post-Retirement Benefits 2008 2010 2009 2008 Pension Components of net expense: Estimated return on plan assets Service cost Interest cost Plan curtailment gain Amortization of prior service cost (credit) Amortization of net actuarial loss Net expense Changes in plan assets and benefit obligations...

  • Page 76
    ... used to determine net periodic benefit costs for pension plans were as follows: 2010 Discount rate: United States plans Canadian plans Combined weighted-average rate Expected return on plan assets: United States plans Canadian plans Rate of compensation increase: United States plans Canadian plans...

  • Page 77
    ... assets for the year ended January 1, 2011 follows (in millions): Fair Value Measured Using Significant Unobservable Inputs (Level 3) Mortgageand otherasset U.S. backed government securities securities $ 2.5 (1.8) (0.6) (0.6) 0.5 $ - $0.2 0.5 - - - $0.7 Total Balance as of January 2, 2010 Purchases...

  • Page 78
    ... assets for the year ended January 2, 2010 follows (in millions): Fair Value Measured Using Significant Unobservable Inputs (Level 3) Mortgageand otherasset U.S. backed government securities securities $ 1.1 0.4 1.6 (0.6) - $ 2.5 $ 0.3 (0.1) - - - $ 0.2 Total Balance as of January 3, 2009 Purchases...

  • Page 79
    ... substantially all Company employees not covered under the Company's non-contributory retirement plans. These multi-employer retirement plans are generally defined benefit plans and are pursuant to agreements between the Company and various unions. In many cases, specific benefit levels are not...

  • Page 80
    ... at Vons and Eastern. The following table presents information about the Company by geographic area (in millions): U.S. 2010 Sales and other revenue Operating profit Income before income taxes Long-lived assets, net Total assets 2009 Sales and other revenue Operating (loss) profit (1) (Loss) income...

  • Page 81
    ... Notes to Consolidated Financial Statements The following table presents sales revenue by type of similar product (dollars in millions): 2010 Amount Non-perishables Perishables (2) Pharmacy Fuel Other (3) (1) 2009 Amount $17,854.4 15,328.6 3,835.3 2,688.7 1,143.7 $40,850.7 % of total 43.7% 37...

  • Page 82
    ... 12 Weeks 52 Weeks 2009 Sales and other revenue Gross profit Operating (loss) profit (Loss) income before income taxes Net (loss) income attributable to Safeway Inc. (Loss) income per common share attributable to Safeway Inc. Basic Diluted Last 16 Weeks (1) Third 12 Weeks Second 12 Weeks $ 9,462...

  • Page 83
    ..., processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its President and Chief Executive Officer and Chief Financial Officer, as appropriate, to allow...

  • Page 84
    ...2010 fiscal year. Code of Ethics The Company has adopted a Code of Business Conduct and Ethics (the "Code of Ethics"), which is posted on the Company's Web site at www.safeway.com/investor_relations. The Code of Ethics applies to the Company's principal executive officer, principal financial officer...

  • Page 85
    ... of this report: Consolidated Financial Statements: See Index to Consolidated Financial Statements in Part II, Item 8 of this report. 2. Consolidated Financial Statement Schedules: None required. 3. The following exhibits are filed as part of this report: Restated Certificate of Incorporation...

  • Page 86
    ... and Restated Share Appreciation Rights Plan of Canada Safeway Limited (incorporated by reference to Exhibit 10(iii).33 to the registrant's Form 10-Q for the quarterly period ended June 19, 2004). The 2001 Amended and Restated Operating Performance Bonus Plan for Executive Officers of Safeway Inc...

  • Page 87
    ... the lenders that are parties to the Agreement (incorporated by reference to Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on June 7, 2005). Exhibit 10(iii).18* Blackhawk Marketing Services, Inc. 2006 Restricted Stock Plan for Eligible Employees of Safeway Inc. (incorporated by...

  • Page 88
    ...19* Form of Restricted Stock Award Grant Notice and Restricted Stock Agreement under the Blackhawk Marketing Services, Inc. 2006 Restricted Stock Plan for Eligible Employees of Safeway Inc. (incorporated by reference to Exhibit 10.2 to the registrant's Current Report on Form 8-K filed on February 28...

  • Page 89
    ... Compensation Plan for Safeway Non-Employee Directors II, adopted October 20, 2010, amended and restated effective January 1, 2011. Exhibit 10(iii).33* Updated Form of Stock Option Grant Notice and Stock Option Agreement under the Safeway Inc. 2007 Equity and Incentive Award Plan (incorporated...

  • Page 90
    ... the undersigned, thereunto duly authorized. SAFEWAY INC. By /s/ Steven A. Burd Steven A. Burd Chairman, President and Chief Executive Officer (Principal Executive Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons...

  • Page 91
    ... information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 28, 2011 /s/ Steven A. Burd Steven A. Burd Chairman, President and Chief Executive Officer

  • Page 92
    ...financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 28, 2011 /s/ Robert L. Edwards Robert L. Edwards Executive Vice President and Chief...

  • Page 93
    ...Securities Exchange Act of 1934, as amended; and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: February 28, 2011 /s/ Steven A. Burd Steven A. Burd Chief Executive Officer Certification...

  • Page 94
    ....8 (in millions) Net cash flow from operating activities Decrease in payables related to third-party gift cards, net of receivables Net cash flow from operating activities, as adjusted Net cash flow used by investing activities Free cash flow (1) See pages 26 and 27 of the Annual Report on Form 10...

  • Page 95
    ...Francisco, CA As an equal opportunity employer, Safeway values and actively supports diversity in the workplace. A copy of the company's 2010 summary EEO-1 report, filed with the federal Equal Employment Opportunity Commission, is available upon request at our executive offices. INVESTOR INQUIRIES...

  • Page 96
    ... editorial section of this annual report are printed on FSC-Certified paper. This paper contains wood from well-managed forests, controlled sources. This is certified in accordance with the rules of the Forest Stewardship Council. Made with certified renewable energy. S A F E WAY I N C . P O B OX...