Amendment No. 3 to Form S-1 Table of Contents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Consolidated Financial Statements Company has established stop-loss amounts that limit the Company's further exposure after a claim reaches the designated stop-loss threshold. Stop-loss amounts for claims incurred for the years presented range from $0.5 million to $5.0 million per claim, depending upon the type of insurance coverage and the year the claim is incurred. In determining its self-insurance liabilities, the Company performs a continuing review of its overall position and reserving techniques. Since recorded amounts are based on estimates, the ultimate cost of all incurred claims and related expenses may be more or less than the recorded liabilities. As a part of the Safeway acquisition and NAI acquisition, the Company assumed outstanding self-insurance liabilities. Under the acquisition method of accounting, these assumed liabilities were recorded on the acquisition dates of Safeway and NAI at fair values of $613.5 million and $1,082.9 million, respectively. Subsequent to the acquisitions, the Company measures and accounts for the assumed self-insurance liabilities using a systematic and rational approach, which considers actual claims experience in each period compared to total expected claims over the estimated remaining life of the claims. The Company has deposits with its insurers to fund workers' compensation and automobile and general liability claims payments. The Company had $12.9 million and $14.9 million of deposits for its workers' compensation and automobile liability claims as of February 28, 2015, and February 20, 2014, respectively, included in Other assets. The Company has reinsurance receivables of $30.4 million and $24.3 million recorded within Receivables, net and $70.8 million and $76.5 million recorded within Other assets as of February 28, 2015 and February 20, 2014, respectively. The self-insurance liabilities and related rei