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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: May 20, 1994
Commission file number 1-41
SAFEWAY INC.
(Exact name of registrant as specified in its charter)
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<S> <C>
DELAWARE 94-3019135
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(State or other jurisdiction of incorporation or (I.R.S. Employer Indentification No.)
organization)
FOURTH AND JACKSON STREETS
OAKLAND, CALIFORNIA 94660
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (510) 891-3000
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Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
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SAFEWAY INC.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) The following exhibits are filed as part of this Report:
12.1 Computation of Ratio of Earnings to Fixed Charges
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SAFEWAY INC.
REGISTRANT
Date: May 20, 1994 By: /s/ F. J. Dale
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F. J. Dale
Group Vice President
Finance
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Exhibit 12.1
SAFEWAY INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)
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12 Weeks Ended
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March 26, March 27,
1994 1993 1993 1992 1991 1990
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<S> <C> <C> <C> <C> <C> <C>
Income (loss) before income taxes,
extraordinary loss and cumulative
effect of accounting changes $ 73.5 $ (3.1) $ 216.3 $ 197.4 $ 166.2 $ 194.7
Add interest expense 55.8 63.2 265.5 290.4 355.4 384.1
Add interest on rental expense (a) 19.4 21.0 88.0 88.0 83.0 82.0
Equity in earnings of unconsolidated
affiliates (10.5) (16.1) (33.5) (39.1) (45.8) (25.5)
Less gain on common stock offering by
unconsolidated affiliate - - - - (27.4) -
Add minority interest in subsidiary 0.7 0.3 3.5 1.7 1.3 1.4
---------- ---------- --------- --------- --------- ---------
Earnings $ 138.9 $ 65.3 $ 539.8 $ 538.4 $ 532.7 $ 636.7
========== ========== ========= ========= ========= =========
Interest expense $ 55.8 $ 63.2 $ 265.5 $ 290.4 $ 355.4 $ 384.1
Add capitalized interest 0.7 0.8 4.2 8.0 10.6 3.3
Add interest on rental expense (a) 19.4 21.0 88.0 88.0 83.0 82.0
---------- ---------- --------- --------- --------- ---------
Fixed charges $ 75.9 $ 85.0 $ 357.7 $ 386.4 $ 449.0 $ 469.4
========== ========== ========= ========= ========= =========
Ratio of earnings to fixed charges 1.83 (b) 1.51 (c) 1.39 1.19 (d) 1.36
========== ========== ========= ========= ========= =========
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(a) Based on a 10% discount factor on the estimated present value of future
operating lease payments.
(b) Safeway's earnings were insufficient to cover fixed charges for the first
quarter of 1993 primarily due to a $50 million charge to operating and
administrative expense for estimated severance payments to be made to
retail employees in the Alberta, Canada division as part of a voluntary
employee buyout. The additional amount of earnings needed to cover fixed
charges in the first quarter of 1993 was $19.7 million.
(c) Safeway's ratio of earnings to fixed charges for 1993 was adversely
affected by a $54.9 million charge to operating and administrative expense
for severance payments to be made to retail employees in the Alberta,
Canada division as part of a voluntary employee buyout. Excluding this
charge, the ratio of earnings to fixed charges for 1993 would have been
1.66.
(d) Safeway's ratio of earnings to fixed charges for 1991 was adversely
affected by a $115 million charge to operating profit in connection with
the bankruptcy of AppleTree Markets, Inc. ("AppleTree"). The $115 million
charge was an estimate of the eventual net lease and related cash payments
which Safeway expected to make over a period of up to 16 years in
connection with any liability Safeway may have on the leases assigned to
AppleTree as part of the sale of the Company's former Houston division.
Excluding this charge, the ratio of earnings to fixed charges for 1991
would have been 1.44.
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