Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive (Loss) Income (In millions) 53 Weeks 2014 52 Weeks 2013 52 Weeks 2012 Net income b

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In millions) Operating Activities: 53 Weeks 2014 52 Weeks 2013 52 Weeks 2012 Net in

Amendment No. 3 to Form S-1 Tahk of Contents SAFEWAY INC. AND SUBSIDIARIES Consolidated Balance Sheets (In millions, except per-share amounts) Assets Current assets. Year-end 2014 Year-end 2013 Cash

Amendment No. 3 to Form S-1 Table of Contents. SAFEWAY INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In millions) Financing Activities: 53 Weeks 2014 52 Weeks 2013 52 Weeks 2012 Additi

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity (In millions, except per-share amounts) Common Stock: 53 Weeks 2014 52 Weeks

Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements The Company also has a 49% ownership interest in Casa Ley, S.A. de C.V. ("Casa Ley"), w

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Revenue Recognition Retail store sales are recognized at the point of sale. Sales tax i

Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Property under capital leases and leasehold improvements is amortized on a straight-lin

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements presented below using appropriate valuation methodologies and market information availa

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Rent Holidays. Certain of the Company's operating leases contain rent holidays. For th

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, net of appli

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Discontinued Operations The notes to the consolidated financial statements exclude disc

Amendment No. 3 to Form S-1 Table of Content& SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements for sale at January 3, 2015. Additionally, the Company had other real estate assets hel

Amendment No. 3 to Form S-1 Tahk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Dominick's During the fourth quarter of 2013, Safeway sold or dosed all Dominick's stor

Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements stock. Safeway recorded these net proceeds as an increase to Additional Paid-In Capital

Amendment No. 3 to Form S-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Blackhawk sold the trading securities for cash on the day after closing, and this sale

Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements as defined in the Credit Agreement, to consolidated interest expense to be less than 2.

Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (2) Estimated net future cash flows for Dominick's stores closed during the fourth qua

Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements principles, a reporting unit is either the equivalent to, or one level below, an operat

Amendment No. 3 to Form S-1 Table of Content& SAFEWAY INC. AND SUBSIDIARIES Consolidated Statements of Income (In millions, except per-share amounts) 53 Weeks 2014 52 Weeks 2013 52 Weeks 2012 Sales a