SAFEWAY—NONCONTRIBUTORY*
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SAFEWAY, INC., AND SUBSIDIARIES |
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53 Weeks 2008 |
52 Weeks 2007 |
52 Weeks 2006 |
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Sales and other revenue |
$44,104.00 |
$42,286.00 |
$40,185.00 |
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Cost of goods sold |
31,589.20 |
30,133.10 |
28,604.00 |
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Gross profit |
12,514.80 |
12,152.90 |
11,581.00 |
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Operating and administrative expense |
10,662.10 |
10,380.80 |
9,981.20 |
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Operating profit |
1,852.70 |
1,772.10 |
1,599.80 |
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Interest expense |
358.7 |
388.9 |
396.1 |
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Other income, net |
10.6 |
20.4 |
36.3 |
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Income before income taxes |
1,504.60 |
1,403.60 |
1,240.00 |
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Income taxes |
539.3 |
515.2 |
369.4 |
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Net income |
$965.30 |
$888.40 |
$870.60 |
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Basic earnings per share |
$2.23 |
$2.02 |
$1.96 |
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Diluted earnings per share |
$2.21 |
$1.99 |
$1.94 |
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Weighted average shares outstanding—basic |
433.8 |
440.3 |
444.9 |
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Weighted average shares outstanding—diluted |
436.3 |
445.7 |
447.8 |
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SAFEWAY AND SUBSIDIARIES |
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Year End 2008 |
Year End 2007 |
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Total current assets |
$3,976.20 |
$4,007.50 |
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Total assets |
17,484.70 |
17,651.00 |
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Total current liabilities |
4,499.20 |
5,136.40 |
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Total liabilities |
10,698.50 |
10,949.20 |
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Total stockholders’ equity |
6,786.20 |
6,701.80 |
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Total liabilities and stockholders’ equity |
$17,484.70 |
$17,651.00 |
Required
a. For the defined benefit, noncontributory retirement plans, compare pension expense (cost) with operating revenue for 2008, 2007, and 2006. Comment.
b. For the defined benefit, noncontributory retirement plans, compare pension expense (cost) with income before income taxes for 2008, 2007, and 2006.
c. For the defined benefit, noncontributory retirement plans, compare the benefit obligations with the value of plan assets at the end of 2008 and 2007. Comment.
d. Are all of Safeway’s defined benefit, noncontributory retirement plans overfunded or underfunded? Comment.