Safeway (SWY)

Note L:  Investment in Unconsolidated Affiliates

At year-end 2009, 2008 and 2007, Safeway’s investment in unconsolidated affiliates includes a 49% ownership interest in Casa Ley, which operated 156 food and general merchandise stores in Western Mexico at year-end 2009.

Equity in earnings from Safeway’s unconsolidated affiliates, which is included in other income, was income of $8.5 million in 2009, a loss of $2.5 million in 2008 and income of $8.7 million in 2007.

Note J:  Investment in Unconsolidated Affiliates

At year-end 2008, 2007 and 2006, Safeway’s investment in unconsolidated affiliates includes a 49% ownership interest in Casa Ley, which operates 146 food and general merchandise stores in Western Mexico.

Equity in earnings from Safeway’s unconsolidated affiliates, which is included in other income, was a loss of $2.5 million in 2008, income of $8.7 million in 2007 and income of $21.1 million in 2006.

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SAFEWAY INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note J:  Investment in Unconsolidated Affiliates

At year-end 2007, 2006 and 2005, Safeway’s investment in unconsolidated affiliates includes a 49% ownership interest in Casa Ley, which operates 137 food and general merchandise stores in Western Mexico.

Equity in earnings from Safeway’s unconsolidated affiliates, which is included in other income, was income of $8.7 million in 2007, income of $21.1 million in 2006 and income of $15.8 million in 2005.

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SAFEWAY INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note J:  Investment in Unconsolidated Affiliates

At year-end 2006, 2005 and 2004, Safeway’s investment in unconsolidated affiliates includes a 49% ownership interest in Casa Ley, which operates 127 food and general merchandise stores in Western Mexico.

Equity in earnings from Safeway’s unconsolidated affiliates, which is included in other income, was income of $21.1 million in 2006, income of $15.8 million in 2005 and income of $12.6 million in 2004.

Note J: Investment in Unconsolidated Affiliates

At year-end 2005, 2004 and 2003, Safeway’s investment in unconsolidated affiliates consists of a 49% ownership interest in Casa Ley, which operates 119 food and general merchandise stores in Western Mexico.

Equity in earnings (losses) from Safeway’s unconsolidated affiliates, which is included in other income (expense), was income of $15.8 million in 2005, income of $12.6 million in 2004 and a loss of $7.1 million in 2003.

Note J: Investment In Unconsolidated Affiliates

At year-end 2004, 2003 and 2002, Safeway’s investment in unconsolidated affiliates consists of a 49% ownership interest in Casa Ley, which operates 115 food and general merchandise stores in western Mexico.

Equity in earnings (losses) from Safeway’s unconsolidated affiliates, which is included in other income (expense), was income of $12.6 million in 2004, a loss of $7.1 million in 2003 and a loss of $0.2 million in 2002. Equity in income in 2002 includes approximately $15.8 million in charges related to the resolution of physical inventory count discrepancies at Casa Ley.