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 2013 52 Weeks 2012 Balance, beginning of year $ 2.4 $ 6.1 $ 6.0 Options exercised 0.1 0.1 Retirement of treasury stock(1) — (3.7) Balance, end of year 2.5 2.4 6.1 Additional Paid-In Capital: Balance, beginning of year 1,981.9 4,505.6 4,463.9 Share-based employee compensation 27.7 59.1 55.1 Options exercised/cancelled, net 40.4 210.6 (11.9) Initial public offering of Blackhawk, net — 161.5 Retirement of treasury stock(1) — (2,989.0) Other(2) 1.3 34.1 (1.5) Balance, end of year 2,061.3 1,981.9 4,505.6 Treasury Stock: Balance, beginning of year (480.6) (9,119.8) (7,874.4) Purchase of treasury stock — (663.7) (1,240.3) Retirement of treasury stock(1) — 9,313.4 Other (11.2) (10.5) (5.1) Balance, end of year (491.8) (480.6) (9,119.8) Retained Eamings: Balance, beginning of year 4,586.9 7,585.6 7,151.1 Net income attributable to Safeway Inc. 113.4 3,507.5 596.5 Cash dividends declared ($0.890, $0.775 and $0.670 per share) (205.8) (185.5) (162.0) Distribution of Blackhawk(3) (184.4) — Retirement of treasury stock(1) — (6,320.7) — Balance, end of year 4,310.1 4,586.9 7,585.6 Accumulated Other Comprehensive Loss: Balance, beginning of year (271.1) (73.8) (61.5) Translation adjustments 0.2 (65.0) (3.1) Pension and post-retirement benefits adjustment to funded status (net of tax of $118.5, $87.1 and $45.5) (185.0) 179.5 (79.7) Recognition of pension and post-retirement benefits actuarial loss (net of tax of $20.5, $38.7 and $40.5) 31.8 66.3 69.5 Distribution of Blackhawk(3) 2.2 — Sale of Canada Safeway Limited(4) — (377.0) — Other (net of tax of $0.2, $0.6 and $0.5) 0.2 (1.1) 1.0 Balance, end of year (421.7) (271.1) (73.8) F-95 (Continued) hill). wwn i