This excerpt taken from the SWY 10-Q filed May 3, 2006.
INCOME TAX EXPENSE Income tax expense was $89.5 million, or 38.5% of pretax income, in the first quarter of 2006.
Critical Accounting Policies
Critical accounting policies are those accounting policies that management believes are important to the portrayal of Safeways financial condition and results and require managements most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Companys 2005 Annual Report on Form 10-K includes a description of certain critical accounting policies, including those with respect to workers compensation, store closures, employee benefit plans, stock-based employee compensation, goodwill and income tax contingencies.