EFTA01382491

Amendment No. 3 to Form S-1 Tahk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements The following table provides a reconciliation of the changes in the retirement plans' benefit obligation and fair value of assets over the two-year period ended January 3, 2015 and a statement of the funded status as of year-end 2014 and year-end 2013 (in millions): Change in projected benefit obligation: Pension Other Post-Retirement Benefits 2014 2013 2014 2013 Beginning balance $2,023.4 $2,635.4 $ 79.5 $ 135.0 Service cost 42.5 42.0 Os 0.7 Interest cost 96.4 85.4 3.4 3.2 Plan amendments 0.2 0.2 — Actuarial loss (gain) 254.0 (56.3) 12.4 (5.0) Plan participant contributions — — 0.9 1.0 Benefit payments (172.5) (133.3) (7.3) (7.2) Change in projected benefit obligation related to CSL — (39.5) — 1.3 Disposal of CSL - (510.5) — (49.5) Ending balance $2,244.0 $2,023.4 $ 89.8 $ 79.5 Change in fair value of plan assets: Beginning balance $1,644.2 $1,845.7 $ — $ — Actual return on plan assets 82.6 268.6 — — Employer contributions 6.9 50.1 6.4 6.2 Plan participant contributions - - 0.9 1.0 Benefit payments (172.5) (133.3) (7.3) (7.2) Change in fair value of plan assets related to CSL — 32.8 — — Disposal of CSL — (419.7) — — Ending balance $1,561.2 $1,644.2 $ Components of net amount recognized in financial position: Other accrued liabilities (current liability) $ (1.1) $ (1.1) $ (6.4) $ (6.2) Pension and post-retirement benefit obligations (non-current liability) (681.7) (378.1) (83.4) (73.3) Funded status $ (682.8) $ (379.2) $ (89.8) $ (79.5) Amounts recognized in accumulated other comprehensive income consist of the following (in millions): Pension Other Post-Retirement Benefits 2014 2013 2014 2013 Net actuarial loss $611.8 $365.0 $ 22.9 $ 10.6 Prior service cost (credit) 4.8 142 (1.0) (1.1) $616.6 $379.3 $ 21.9 $ 9.5 F-125 (Continued) hill). wwa.sccgo% ArcIM. es edgar data' 1646972 000119312515335826'd900395dsla.htm110 14'2015 9:03:02 AR CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0081875 SDNY_GM_00228059 EFTA01382491