Amendment No. 3 to Form S-1 Table of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements Information for Safeway's pension plans, all of which have an accumulated benefit obligation in excess of plan assets as of year- end 2014 and 2013, is shown below (in millions): 2014 2013 Projected benefit obligation $2,244.0 $2,023.4 Accumulated benefit obligation 2,179.6 1,978.3 Fair value of plan assets 1,561.2 1,644.2 The following tables provide the components of net expense for the retirement plans and other changes in plan assets and benefit obligations recognized in other comprehensive income (in millions): Pension Other Post-Retirement Benefits Components of net expense: 2014 2013 2012 2014 2013 2012 Estimated return on plan assets $(119.3) $(107.9) $(101.0) $ — $ — $ — Service cost 42.5 42.0 40.3 0.9 0.7 0.6 Interest cost 96.4 85.4 91.8 3.4 3.2 3.6 Settlement loss — — 5.9 — — — Curtailment loss — — 1.8 — — — Amortization of prior service cost (credit) 9.7 12.8 15.3 (0.1) (0.1) (0.1) Amortization of net actuarial loss 42.3 77.8 70.3 0.4 0.9 0.5 Net expense $ 71.6 $ 110.1 $ 124.4 $ 4.6 $ 4.7 $ 4.6 Changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss (gain) $ 290.6 $(216.9) $ 97.8 $12.7 $(5.0) $ 6.6 Recognition of net actuarial loss (42.3) (77.8) (76.3) (0.4) (0.9) (0.5) Prior service credit 0.2 0.2 0.5 Recognition of prior service (cost) credit (9.7) (12.8) (17.0) 0.1 0.1 0.1 Changes relating to discontinued operations (55.5) 9.0 (3.0) (5.0) Total recognized in other comprehensive income 238.8 (362.8) 14.0 12.4 (8.8) 1.2 Total net expense and changes in plan assets and benefit obligations recognized in comprehensive income $ 310.4 $(252.7) $ 138.4 $17.0 $(4.1) $ 5.8 Prior service costs are amortized on a straight-line basis over the average remaining service p