Are all of Safeway”s defined benefit, noncontributory retirement plans overfunded or…


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SAFEWAY—NONCONTRIBUTORY* SAFEWAY, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) SAFEWAY, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) SAFEWAY, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) SAFEWAY, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) 53 Weeks 2008 52 Weeks 2007 52 Weeks 2006 Sales and other revenue $44,104.00 $42,286.00 $40,185.00 Cost of goods sold 31,589.20 30,133.10 28,604.00 Gross profit 12,514.80 12,152.90 11,581.00 Operating and administrative expense 10,662.10 10,380.80 9,981.20 Operating profit 1,852.70 1,772.10 1,599.80 Interest expense 358.7 388.9 396.1 Other income, net 10.6 20.4 36.3 Income before income taxes 1,504.60 1,403.60 1,240.00 Income taxes 539.3 515.2 369.4 Net income $965.30 $888.40 $870.60 Basic earnings per share $2.23 $2.02 $1.96 Diluted earnings per share $2.21 $1.99 $1.94 Weighted average shares outstanding—basic 433.8 440.3 444.9 Weighted average shares outstanding—diluted 436.3 445.7 447.8 SAFEWAY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN PART) (In millions, except per share amounts) SAFEWAY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN PART) (In millions, except per share amounts) SAFEWAY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN PART) (In millions, except per share amounts) Year-End 2008 Year-End 2007 Total current assets $3,976.20 $4,007.50 Total assets 17,484.70 17,651.00 Total current liabilities 4,499.20 5,136.40 Total liabilities 10,698.50 10,949.20 Total stockholders’ equity 6,786.20 6,701.80 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.

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