deductible in the case of an asset acquisition. The operating income of all acquisitions is normally included in our
consolidated statements of operations from the dates of the acquisition. In connection with these acquisitions and joint
venture investments, we have incurred restructuring charges. The restructuring charges generally relate to integration costs,
including employee costs relating to severance. For additional information about these charges, please see Note 8 to our
financial statements.
Principal acquisitions in the United States since the beginning of fiscal 2000 have consisted of the following:
- USF in 2000;
- Peapod, Inc. ("Peapod") in 2000 (investment in Peapod in 2000, fully acquired in August 2001);
- PYA/Monarch, Inc. ("PYA/Monarch") in 2000 (integrated into USF);
- GFG Foodservice, Inc. ("GFG Foodservice") in 2000 (integrated into USF);
- 134 convenience stores from Golden Gallon in 2000 (integrated into BI-LO, LLC ("BI-LO"));
- 87 convenience stores from Sugar Creek in 2000 (integrated into Tops);
- Mutual Wholesale Company ("Mutual") in 2001 (integrated into USF);
- Parkway Food Service ("Parkway") in 2001 (integrated into USF);
- 56 stores and eight sites from Grand Union in 2001 (integrated into Tops and Stop Shop);
- Bruno's in 2001;
- Alliant in 2001 (in the process of being integrated into USF);
- Allen Foods, Inc. ("Allen Foods") in 2002 (integrated into USF); and
- Lady Baltimore Foods, Inc. ("Lady Baltimore") in 2002 (integrated into USF).
Principal acquisitions and investments in other regions include:
- Bompreqo in Brazil in 1996 (majority voting stake acquired in June 2000);
- Tops Retail (Malaysia) Sdn Bhd. in Malaysia through the formation of a joint venture in 1997 (fully acquired in
December 2000);
- PT Putra Serasi Pioneerindo (Tops) through an agreement with the PSP Group in Indonesia in 1996 (fully acquired in
2002);
- Disco and Santa Isabel in Argentina, Chile, Peru, Paraguay and Ecuador in 1998, through the formation of the joint
venture DAIH in 1998 (DAIH was fully acquired in August 2002);
- ICA in Scandinavia in 2000, through the formation of the joint venture ICA Ahold Holding AB (which subsequently
changed its name to ICA Ahold AB, and then, in August 2003, to ICA);
- Supermercados Agas S.A. in Chile in 2000 (integrated into Santa Isabel);
- Kampio Markets, S.L. ("Kampio") in Spain in 2000 (integrated into Ahold Supermercados);
- Supermercados Ekono S.A. ("Ekono") in Argentina in 2000 (integrated into Disco);
- A&P Holding B.V. ("A&P") in The Netherlands by our 73.2%-owned subsidiary Schuitema N.V. ("Schuitema") in 2000;
- Superdiplo in Spain in 2000 (integrated into Ahold Supermercados);
- MEA-DeWilde-DeLoore N.V./S.L. ("MEA") in 2001 (renamed Deli XL N.V./S.A.);
- Cemetro, S.L. ("Cemetro") in Spain in 2001 (integrated into Ahold Supermercados);
- G. Barbosa in Brazil in 2002;
- Nine supermarkets and related assets from Lusitana Ltda ("Lusitana") in September 2002 (integrated into Bompreqo);
- Paiz Ahold in fiscal 1999, which in fiscal 2002 formed a joint venture with CSU International Holdings ("CSU
International"), which transferred its interests in Corporación de Supermercados Unidos, S.A. ("CSU") in Costa Rica,
Honduras, and Nicaragua to the Central American Retail Holding Company ("CARHCO"); and
- 31 stores from La Despensa de Don Juan in El Salvador in 2003 (integrated into CARHCO).
Impact of impairment charges and weakened economy in fiscal 2002 and fiscal 2001
Although our net sales increased from fiscal 2001 to fiscal 2002 and from fiscal 2000 to fiscal 2001, our businesses
have been negatively affected by the prolonged economic downturn in fiscal 2002 and fiscal 2001. In fiscal 2002, this
weakened global economy significantly affected our results as high unemployment rates depressed consumer purchasing
power and declining confidence in the economy caused customers to decrease consumer spending and to shift buying
habits. In the southeastern United States, Argentina and Brazil, in particular, the decrease in consumer spending and the
shift in buying habits of consumers to mass merchandiser clubs or other value-based operators forced us to lower prices
and, in some cases, caused us to lose market share.
As a result of the declining economic conditions in Spain, Argentina, Chile, Brazil and the southeastern United States, we
recorded goodwill and other intangible assets impairment charges of EUR 1.3 billion in fiscal 2002 under Dutch GAAP,
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