Safeway Inc., under recent scrutiny regarding its ability to take care of its pension obligations and the possibility of rising labor costs, released clearer details Tuesday of its costs, according to Dow Jones.
The company's shares dropped Monday after a Credit Suisse analyst downgraded his rating on the grocery chain, suggesting that Safeway's multi-employer pension plans represented a $7 billion pre-tax unfunded liability.
Safeway says that its unfunded liability is roughly $1.88 billion, pre-tax, and that recent moves such as contribution increases have helped reduce that number over the past few years.
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