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EFTA01382503

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Amendment No.3 to Form 9-1 Tabk of Contents SAFEWAY INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements primarily one store format, where each store offers the same general mix of products with similar pricing to similar categories of customers. Safeway does not operate supercenters, warehouse formats, combination clothing/grocery stores or discount stores. The seven operating segments have been aggregated into one reportable segment called Safeway. because, in the Company's judgment, the operating segments have similar historical economic characteristics and are expected to have similar economic characteristics and similar long-term financial performance in the future. The principal measures and factors the Company considered in determining whether the economic characteristics are similar are gross margin percentage, operating profit margin, sales growth, capital expenditures, competitive risks, operational risks and challenges, retail store sales, costs of goods sold and employees. In addition, each operating segment has similar products, similar production processes, similar types of customers, similar methods of distribution and a similar regulatory environment. The Company believes that disaggregating its operating segments would not provide material or meaningful additional information. The following table presents sales revenue by type of similar product (dollars in millions): 2014 2013 2012 Amount % of total Amount •/. of total Amount % of total Non-perishables(1) $15,266.7 42.0% $14,811.7 42.2% $14,738.0 41.9% Perishables(2) 13,656.5 37.6% 12,809.8 36.6% 12,548.1 35.7% Fuel 3,962.2 10.9% 4,168.4 11.9% 4,594.2 13.1% Pharmacy 2,805.1 7.7% 2,674.9 7.6% 2,755.4 7.8% Other(3) 639.7 1.8% 600.1 1.7% 525.8 1.5% Total sales and other revenue $36,330.2 100.0% $35,064.9 100.0% $35,161.5 100.0% (1) Consists primarily of grocery, soft drinks and other beverages, general merchandise, meal ing

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