Restructuring provisions as of January 2, 2000, amounting to EUR 124 related to restructuring plans initiated before
fiscal 2000. Of this balance, EUR 74 related to provisions at Stop Shop, Giant Foods and BI-LO, ("U.S. Retail"),
EUR 38 to Albert Heijn and EUR 12 to various other operating companies.
Fiscal 2002 changes to the restructuring provision
In fiscal 2002 the Company recorded restructuring provisions relating to acquisitions for EUR 10, relating to various small
acquisitions.
In fiscal 2002 the Company recognized EUR 42 of restructuring provision, EUR 23 of which relates to a restructuring at
USF, EUR 9 to Albert Heijn and EUR 10 mainly relating to Latin America. The Company decided to reorganize its
operations in Latin America, mainly due to the weak economic circumstances. As a result of this reorganization, the
Company recognized a liability of approximately EUR 10, mainly for severance charges relating to the termination of 2,034
employees, of which 1,788 were terminated by fiscal year-end 2002. The restructuring charges are based on formal plans
approved by the Company's management using the best information available at the time. The amounts that are ultimately
incurred may change as the plan is executed. This USF restructuring provision includes a charge of EUR 11 relating to the
termination of employees, rent liabilities of EUR 9 and closing costs of EUR 3.
During 2002 EUR 110 of the restructuring reserved were utilized, EUR 52 of which related to the restructuring provisions
at USF, EUR 32 to Alliant and EUR 6 to Albert Heijn.
The Company released approximately EUR 47 of restructuring provision during 2002 relating to restructuring provisions
recorded at Alliant for EUR 15, USF for EUR 13 and EUR 19 for various other entities.
After the effect of exchange rate differences of EUR (22), a total restructuring provision of EUR 136 remained as of
December 29, 2002, of which EUR 79 related to Alliant, EUR 45 to USF and EUR 12 to various other entities.
Fiscal 2001 changes to the restructuring provision
In fiscal 2001 the Company recorded restructuring provisions relating to acquisitions for EUR 118. Approximately
EUR 111 of this provision related to the acquisition of Alliant in November 2001 which included provisions for closing
costs of EUR 60, rent liabilities of EUR 30 and severance cost of EUR 21, relating to the termination of approximately
870 employees.
Furthermore, the Company recognized restructuring provision amounting to EUR 141, EUR 111 of which relates to a
restructuring of USF, EUR 18 to restructuring of Ahold's operations at U.S. Retail, EUR 6 to restructuring provisions
recorded at Albert Heijn and EUR 6 relates to various other entities. The USF restructuring mainly related to the
integration of USF's operation with those of Alliant and includes a charge of EUR 33 relating to the severance benefits
of approximately 580 employees, rent liabilities of EUR 43 and closing costs of EUR 35.
During 2001 EUR 62 of the restructuring provisions was utilized, mainly relating to the restructuring efforts at USF.
The Company lowered the estimated restructuring provision by approximately EUR 80, of which EUR 33 related to USF,
EUR 21 to A&P and EUR 26 to various other entities. These reversals were accounted for as an adjustment to the
purchase price allocation resulting in an increase of the goodwill recorded for these acquisitions. Another EUR 18 was
reversed relating to restructuring provision for Albert Heijn.
After the effect of exchange rate effects of EUR 12, the remaining restructuring reserve as of December 30, 2001
amounted to EUR 263, of which EUR 113 related to Alliant, EUR 133 to USF and EUR 17 to various other entities.
Fiscal 2000 changes to the restructuring provisions
In fiscal 2000 the Company recorded acquisition related restructuring provisions of EUR 111. Of these provisions EUR 72
related to the acquisition of USF in April 2000, EUR 34 to the acquisition of A&P in September 2000 and EUR 5 related
to other acquisitions. For USF these provisions include closing costs of EUR 34, rent liabilities of EUR 33 and severance
benefits of EUR 5. For A&P the restructuring provisions mainly related to store closing costs.
During 2000 EUR 97 of the restructuring provisions were utilized, EUR 63 of which related to the restructuring plans at
U.S. Retail, EUR 15 to USF, EUR 5 to A&P, EUR 8 to Albert Heijn and EUR 6 to various other entities.
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