Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Amounts recognized in Accumulated other comprehensive income consisted of the following (in millions):


	Pension						Other Post-Retirement Benefits
	February 23, 2019			February 24, 2018			February 23, 2019			February 24, 2018
Net actuarial gain	$	(140.6	)	$	(256.4	)	$	(8.2	)	$	(6.0	)
Prior service cost		3.1			0.3			5.6			9.3

	$	(137.5	)	$	(256.1	)	$	(2.6	)	$	3.3

Schedule of Components of Net Pension and Post-retirement Expense

The following tables provide the components of net pension and post-retirement (income) expense (in millions):


	40 weeks ended
	Pension						Other post-retirement benefits
	November 30, 2019			December 1, 2018			November 30, 2019			December 1, 2018
Estimated return on plan assets	$	(84.6	)	$	(86.6	)	$	—		$	—
Service cost		11.3			40.3			0.4			0.8
Interest cost		62.0			66.0			0.5			0.4
Amortization of prior service cost		0.3			—			2.8			2.8
Amortization of net actuarial loss (gain)		0.4			(4.8	)		(0.3	)		(0.2	)

(Income) expense, net	$	(10.6	)	$	14.9		$	3.4		$	3.8

The following table provides the components of net expense for the retirement plans and other changes in plan assets and benefit obligations recognized in Other comprehensive (loss) income (in millions):


	Pension						Other Post- Retirement Benefits
	Fiscal 2018			Fiscal 2017			Fiscal 2018			Fiscal 2017
Components of net expense:
Estimated return on plan assets	$	(112.6	)	$	(119.6	)	$	—		$	—
Service cost		52.4			49.8			1.0			1.0
Interest cost		85.8			88.3			0.5			0.9
Amortization of prior service cost		0.1			0.1			3.7			3.7
Amortization of net actuarial (gain) loss		(6.3	)		0.4			(0.2	)		(0.1	)
Collington acquisition		—			—			—			—
Gain due to settlement accounting		—			(25.4	)		—			—
Loss due to curtailment accounting		0.1			—			—			—

Net expense (benefit)		19.5			(6.4	)		5.0			5.5

Changes in plan assets and benefit obligations recognized in Other comprehensive (loss) income:
Net actuarial loss (gain)		109.4			(138.6	)		(2.4	)		(4.5	)
Gain due to settlement accounting		—			25.4			—			—
Loss due to curtailment accounting		(0.1	)		—			—			—
Amortization of net actuarial gain (loss)		6.3			(0.4	)		0.2			0.1
Prior service cost		3.1			—			—			—
Amortization of prior service cost		(0.1	)		(0.1	)		(3.7	)		(3.7	)

Total recognized in Other comprehensive (loss) income		118.6			(113.7	)		(5.9	)		(8.1	)

Total net expense and changes in plan assets and benefit obligations recognized in Other comprehensive (loss) income	$	138.1		$	(120.1	)	$	(0.9	)	$	(2.6	)

Schedule of Allocation of Plan Assets

The fair value of the Company’s pension plan assets as of February 23, 2019, excluding pending transactions of $79.5 million payable to an intermediary agent, by asset category are as follows (in millions):


	Fair Value Measurements
Asset category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Assets Measured at NAV
Cash and cash equivalents(1)	$	10.8	$	1.6	$	9.2	$	—	$	—
Short-term investment collective trust(2)		73.3		—		73.3		—		—
Common and preferred stock:(3)
Domestic common and preferred stock		254.5		254.5		—		—		—
International common stock		64.0		64.0		—		—		—
Collective trust funds(2)		649.9		—		—		—		649.9
Corporate bonds(4)		126.0		—		126.0		—		—
Mortgage- and other asset-backed securities(5)		42.8		—		42.8		—		—
Mutual funds(6)		257.2		139.9		29.2		—		88.1
U.S. government securities(7)		362.5		—		362.5		—		—
Other securities(8)		85.5		—		51.6		—		33.9

Total	$	1,926.5	$	460.0	$	694.6	$	—	$	771.9

(1)	The carrying value of these items approximates fair value.

(2)

These investments are valued based on the Net Asset Value (“NAV”) of the underlying investments and are provided by the fund issuers. There are no unfunded commitments or redemption restrictions for these funds. Funds meeting the practical expedient are included in the Assets Measured at NAV column.

(3)	The fair value of common stock is based on the exchange quoted market prices. When quoted prices are not available for identical stock, an industry valuation model is used which maximizes observable inputs.

(4)

The fair value of corporate bonds is generally based on yields currently available on comparable securities of the same or similar issuers with similar credit ratings and maturities. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs.

(5)

The fair value of mortgage- and other asset-backed securities is generally based on yields currently available on comparable securities of the same or similar issuers with similar credit ratings and maturities. When quoted prices are not available for comparable securities, the fair value is based upon an industry valuation model which maximizes observable inputs.

(6)

These investments are open-ended mutual funds that are registered with the SEC which are valued using the NAV. The NAV of the mutual funds is a published price in an active market. The NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a

per-share

basis. There are no unfunded commitments, or redemption restrictions for these funds, and the funds are required to transact at the published price.

(7)

The fair value of U.S. government securities is based on quoted market prices when available. When quoted prices are not available, the fair value of U.S. government securities is based on yields currently available on comparable securities or on an industry valuation model which maximizes observable inputs.

(8)

Level 2 Other securities, which consist primarily of U.S. municipal bonds, foreign government bonds and foreign agency securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Also included in Other securities is a commingled fund valued based on the NAV of the underlying investments and is provided by the issuer and exchange-traded derivatives that are valued based on quoted prices in an active market for identical derivatives, assets and liabilities. Funds meeting the practical expedient are included in the Assets Measured at NAV column. Exchange-traded derivatives are valued based on quoted prices in an active market for identical derivatives assets and liabilities.

Non-exchange-traded

derivatives are valued using industry valuation models, which maximize observable inputs, such as interest-rate yield curve data, foreign exchange rates and applicable spot and forward rates.

The fair value of the Company’s pension plan assets as of February 24, 2018, excluding pending transactions of $87.4 million payable to an intermediary agent, by asset category are as follows (in millions):


	Fair Value Measurements
Asset category	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Assets Measured at NAV
Cash and cash equivalents(1)	$	6.5	$	1.5	$	5.0	$	—	$	—
Short-term investment collective trust(2)		67.0		—		67.0		—		—
Common and preferred stock:(3)
Domestic common and preferred stock		244.7		244.7		—		—		—
International common stock		59.0		59.0		—		—		—
Collective trust funds(2)		686.0		—		1.3		—		684.7
Corporate bonds(4)		118.7		—		118.7		—		—
Mortgage- and other asset-backed securities(5)		45.2		—		45.2		—		—
Mutual funds(6)		254.3		146.0		21.3		—		87.0
U.S. government securities(7)		354.5		—		354.5		—		—
Other securities(8)		65.5		0.1		26.6		—		38.8

Total	$	1,901.4	$	451.3	$	639.6	$	—	$	810.5

(1)	The carrying value of these items approximates fair value.

(2)	These investments are valued based on the NAV of the underlying investments and are provided by the fund issuers. There are no unfunded commitments or redemption restrictions for these funds. Funds meeting the practical expedient are included in the Assets Measured at NAV column.

(3)	The fair value of common stock is based on the exchange quoted market prices. When quoted prices are not available for identical stock, an industry valuation model is used which maximizes observable inputs.

(4)

The fair value of corporate bonds is generally based on yields currently available on comparable securities of the same or similar issuers with similar credit ratings and maturities. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs.

(5)

The fair value of mortgage- and other asset-backed securities is generally based on yields currently available on comparable securities of the same or similar issuers with similar credit ratings and maturities. When quoted prices are not available for comparable securities, the fair value is based upon an industry valuation model which maximizes observable inputs.

(6)

These investments are open-ended mutual funds that are registered with the SEC which are valued using the NAV. The NAV of the mutual funds is a published price in an active market. The NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a

per-share

basis. There are no unfunded commitments, or redemption restrictions for these funds, and the funds are required to transact at the published price.

(7)

The fair value of U.S. government securities is based on quoted market prices when available. When quoted prices are not available, the fair value of U.S. government securities is based on yields currently available on comparable securities or on an industry valuation model which maximizes observable inputs.

(8)

Level 2 Other securities, which consist primarily of U.S. municipal bonds, foreign government bonds and foreign agency securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. Also included in Other securities is a commingled fund valued based on the NAV of the underlying investments and is provided by the issuer and exchange-traded derivatives that are valued based on quoted prices in an active market for identical derivatives, assets and liabilities. Funds meeting the practical expedient are included in the Assets Measured at NAV column. Exchange-traded derivatives are valued based on quoted prices in an active market for identical derivatives assets and liabilities.

Non-exchange-traded

derivatives are valued using industry valuation models, which maximize observable inputs, such as interest-rate yield curve data, foreign exchange rates and applicable spot and forward rates.

The following table summarizes actual allocations for the Safeway Plan which had $1.6 billion in plan assets as of February 23, 2019:


				Plan Assets
Asset category	Target			February 23, 2019			February 24, 2018
Equity		65	%		62.5	%		65.0	%
Fixed income		35	%		35.6	%		35.5	%
Cash and other		—	%		1.9	%		(0.5	)%

Total		100	%		100.0	%		100.0	%

The following table summarizes the actual allocations for the Shaw’s Plan which had approximately $247 million in plan assets as of February 23, 2019:


				Plan Assets
Asset category	Target			February 23, 2019			February 24, 2018
Equity		65	%		60.5	%		65.4	%
Fixed income		35	%		35.9	%		32.2	%
Cash and other		—	%		3.6	%		2.4	%

Total		100	%		100.0	%		100.0	%

The following table summarizes the actual allocations for the United Plan which had approximately $33 million in plan assets as of February 23, 2019:


				Plan Assets
Asset category	Target(1)			February 23, 2019			February 24, 2018
Equity		50	%		50.3	%		50.1	%
Fixed income		50	%		50.0	%		47.9	%
Cash and other		—	%		(0.3	)%		2.0	%

Total		100	%		100.0	%		100.0	%

(1)	The target market value of equity securities for the United Plan is 50% of plan assets. If the equity percentage exceeds 60% or drops below 40%, the asset allocation is adjusted to target.

Schedule of Multiemployer Plans

The following tables contain information about the Company’s multiemployer plans:

EIN - PN

Pension Protection Act zone
status(1)

Company’s 5% of total
plan contributions

FIP/RP status
pending/implemented

Pension fund

2018

2017

2016

UFCW-Northern California Employers Joint Pension Trust Fund

946313554 - 001

Red

Yes

Implemented

Western Conference of Teamsters Pension Plan

916145047 - 001

Green

No

Southern California United Food & Commercial Workers Unions and Food Employers Joint Pension Plan(4)

951939092 - 001

Red

Yes

Implemented

Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund

526128473 - 001

Red

Yes

Implemented

Sound Retirement Trust(6)

916069306 - 001

Green

Red

Yes

Implemented

Bakery and Confectionery Union and Industry International Pension Fund

526118572 - 001

Red

Yes

Implemented

UFCW Union and Participating Food Industry Employers

Tri-State

Pension Fund

236396097 - 001

Red

Yes

Implemented

Rocky Mountain UFCW Unions & Employers Pension Plan

846045986 - 001

Green

Yes

No

UFCW Local 152 Retail Meat Pension Fund(5)

236209656 - 001

Red

Yes

Implemented

Desert States Employers & UFCW Unions Pension Plan

846277982 - 001

Green

Yes

No

UFCW International Union—Industry Pension Fund(5)

516055922 - 001

Green

Yes

No

Mid Atlantic Pension Fund

461000515 - 001

Green

Yes

No

Retail Food Employers and UFCW Local 711 Pension Trust Fund

516031512 - 001

Yellow

Red

Yes

Implemented

Oregon Retail Employees Pension Trust

936074377 - 001

Green

Yes

No


	Contributions of Company (in millions)						Surcharge imposed(2)		Expiration date of collective bargaining agreements		Total collective bargaining agreements		Most significant collective bargaining agreement(s)(3)
Pension fund	2018		2017		2016		Surcharge imposed(2)		Expiration date of collective bargaining agreements		Total collective bargaining agreements		Count		Expiration
UFCW-Northern California Employers Joint Pension Trust Fund	$	104.4	$	110.2	$	98.9		No		10/13/2018 to 7/27/2020		63		56		10/13/2018
Western Conference of Teamsters Pension Plan		63.7		61.2		59.1		No		3/16/2019 to 10/1/2022		51		15		9/20/2020
Southern California United Food & Commercial Workers Unions and Food Employers Joint Pension Plan(4)		108.4		92.4		63.9		No		3/11/2018 to 3/6/2021		47		43		3/3/2019
Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund		20.4		20.4		33.8		No		10/26/2019 to 2/22/2020		21		16		10/26/2019
Sound Retirement Trust(6)		39.1		32.1		33.1		Yes		10/13/2018 to 10/16/2021		118		22		5/4/2019
Bakery and Confectionery Union and Industry International Pension Fund		17.4		16.6		17.1		Yes		9/3/2011 to 1/22/2022		92		28		9/6/2020
UFCW Union and Participating Food Industry Employers Tri-State Pension Fund		14.0		15.8		16.7		No		1/31/2018 to 1/25/2022		5		2		3/20/2020
Rocky Mountain UFCW Unions & Employers Pension Plan		10.8		10.8		11.0		Yes		1/12/2019 to 6/11/2022		81		30		2/23/2019
UFCW Local 152 Retail Meat Pension Fund(5)		10.8		11.0		10.8		No		5/2/2020		4		4		5/2/2020
Desert States Employers & UFCW Unions Pension Plan		9.1		9.3		9.1		Yes		5/9/2019 to 11/5/2022		16		13		10/24/2020
UFCW International Union—Industry Pension Fund(5)		13.1		12.4		8.6		No		8/25/2018 to 11/5/2022		27		8		6/11/2022
Mid Atlantic Pension Fund		6.6		6.8		6.9		No		10/26/2019 to 2/22/2020		19		16		10/26/2019
Retail Food Employers and UFCW Local 711 Pension Trust Fund		7.1		6.6		5.4		No		5/19/2018 to 12/13/2020		7		2		3/3/2019
Oregon Retail Employees Pension Trust		7.6		6.6		2.3		No		9/1/2016 to 12/6/2019		111		25		8/4/2018
Other funds		18.6		19.0		22.4

Total Company contributions to U.S. multiemployer pension plans	$	451.1	$	431.2	$	399.1

(1)

PPA established three categories (or “zones”) of plans: (1) “Green Zone” for healthy; (2) “Yellow Zone” for endangered; and (3) “Red Zone” for critical. These categories are based upon the funding ratio of the plan assets to plan liabilities. In general, Green Zone plans have a funding ratio greater than 80%, Yellow Zone plans have a funding ratio between 65% - 79%, and Red Zone plans have a funding ratio less than 65%.

(2)

Under the PPA, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan. As of February 23, 2019, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by the applicable pension fund.

(3)	These columns represent the number of most significant collective bargaining agreements aggregated by common expiration dates for each of the Company’s pension funds listed above.

(4)	The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at March 31, 2018 and March 31, 2017.

(5)	The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at June 30, 2017 and June 30, 2016.

(6)	The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2017 and September 30, 2016.