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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: November 14, 1994
Commission file number 1-41
SAFEWAY INC.
(Exact name of registrant as specified in its charter)
DELAWARE 94-3019135
(State or other jurisdiction of incorporation or (I.R.S. Employer
organization) Identification No.)
FOURTH AND JACKSON STREETS
OAKLAND, CALIFORNIA 94660
(Address of principal executive offices) (Zip Code)
(510) 891-3000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, 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.
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REGISTRANT
Date: November 14, 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)
<TABLE>
<CAPTION>
36 Weeks Ended
-----------------------
Sept. 10, Sept. 11,
1994 1993 1993 1992 1991 1990 1989
--------- --------- ----- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Income before income taxes,
extraordinary loss and cumulative
effect of accounting changes $ 283.7 $ 134.1 $ 216.3 $ 197.4 $ 166.2 $ 194.7 $ 94.0
Add interest expense 156.6 187.9 265.5 290.4 355.4 384.1 382.8
Add interest on rental expense(a) 60.2 63.0 88.0 88.0 83.0 82.0 74.0
Equity in (earnings) loss of unconsolidated
affiliates (22.8) (35.7) (33.5) (39.1) (45.8) (25.5) 4.0
Less gain on common stock offering by
unconsolidated affiliate - - - - (27.4) - -
Add minority interest in subsidiary 1.9 1.4 3.5 1.7 1.3 1.4 1.2
------- ------- ------- ------- ------- ------- -------
Earnings $ 479.6 $ 350.7 $ 539.8 $ 538.4 $ 532.7 $ 636.7 $ 556.0
======= ======= ======= ======= ======= ======= =======
Interest expense $ 156.6 $ 187.9 $ 265.5 $ 290.4 $ 355.4 $ 384.1 $ 382.8
Add capitalized interest 2.0 2.6 4.2 8.0 10.6 3.3 1.4
Add interest on rental expense(a) 60.2 63.0 88.0 88.0 83.0 82.0 74.0
------- ------- ------- ------- ------- ------- -------
Fixed charges $ 218.8 $ 253.5 $ 357.7 $ 386.4 $ 449.0 $ 469.4 $ 458.2
======= ======= ======= ======= ======= ======= =======
Ratio of earnings to fixed charges 2.19 1.38 (b) 1.51(b) 1.39 1.19(c) 1.36 1.21
======= ======= ======= ======= ======= ======= =======
</TABLE>
(a) Based on a 10% discount factor on the estimated present value of
future operating lease payments.
(b) Safeway's ratios of earning to fixed charges during 1993 were
adversely affected by a $54.9 million charge to operating and
administrative expense for severance payments made to retail employees in
the Alberta, Canada division as part of a voluntary employee buyout.
Excluding this charge, the ratios of earnings to fixed charges in 1993
were 1.60 for the 36 weeks ended September 11, 1993, and 1.66 for the 52
weeks ended January 1, 1994.
(c) 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' former Houston division.
Excluding this charge, the ratio of earnings to fixed charges for 1991
would have been 1.44.
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