American Stores Company and Subsidiaries - Page 7

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          and December 31, 1988, each of the plans qualified as a                     
          Multiemployer Plan within the meaning of the Employee Retirement            
          Income Security Act of 1974 (ERISA), Pub. L. 93-406, 88 Stat. 829           
          and was a plan to which section 413(b) and Subtitle E of Title IV           
          of ERISA applied.  Moreover, at all times during this period,               
          each of the plans qualified under section 401(a) as a pension               
          plan, and, accordingly, the trusts related to each CBA Plan were            
          exempt from taxation under section 501.                                     
               Generally, at the end of each month, petitioner calculated             
          the amount of its required contribution to each CBA Plan by                 
          multiplying the hours or weeks (units of service) worked by                 
          covered employees in such month by fixed monetary rates (the                
          contribution rate) set by the collective bargaining agreement.              
          Increases or decreases in the number of covered employees, along            
          with increases or decreases in the units of service worked by               
          covered employees, required petitioner to make a separate                   
          calculation for its required contribution to each plan every                
          month.  Contributions to each CBA Plan attributable to units of             
          service worked in a given month were due on the 30th of the month           
          after the units of service were worked.  On occasion,                       
          contributions to plans were made on a quarterly basis, based upon           
          covered services performed during the quarter.                              









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