12 Income taxes
Income tax expense
00 Ahold ANNUAL REPORT 2002 137
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
Ahold's effective tax rate differs from the statutory income tax rate of The Netherlands, which is currently 34.5%. The
following table reconciles the statutory income tax
rate of The Netherlands with the effective income tax rate as shown
in
the consolidated statements of operations:
Fiscal 2002
Fiscal 2001
Fiscal 2000
EUR
EUR
EUR
Income (loss) before income taxes
(769)
1,204
1,067
Statutory tax rate
34.5
35.0
35.0
Income tax expense (benefit) at statutory tax rate
(265)
34.5
421
35.0
374
35.0
Adjustments to derive effective income tax rate:
Goodwill amortization and exceptional items
631
(82.2)
18
1.5
0.0
Corporate costs and financing
(115)
15.0
(170)
(14.1)
(145)
(13.6)
Valuation allowances
66
(8.6)
18
1.5
24
2.2
Release of tax provisions
56
(7.3)
(30)
(2.5)
0.0
Other
17
(2.2)
13
1.1
(18)
(1.7)
Total income taxes
390
(50.8)
270
22.5
235
21.9
Corporate cost and financing includes the result of Ahold's intercompany finance activities, which it carries out from its
Treasury Center in Geneva, Switzerland. These results are influenced by currency exchange differences, mostly between the
EURO and the USD. These results are further more impacted by thin capitalization rules as applicable in the various
jurisdictions.
The following table specifies the current and deferred tax components of the recorded income tax expense:
Fiscal 2002
Fiscal 2001 Fiscal 2000
Current income taxes:
Domestic taxes
180
153
134
Foreign taxes
U.S.
(2)
59
61
Other Europe
(6)
(6)
(7)
Latin America
(5)
2
8
Asia Pacific
Total current taxes
167
208
196
Deferred income taxes (exclusive of the effects of other components listed below):
Domestic taxes
45
51
18
Foreign taxes
U.S.
144
16
10
Other Europe
(13)
(3)
(1)
Latin America
34
(6)
(6)
Asia Pacific
Total deferred taxes
210
58
21
Benefit of operating loss carry forwards
13
4
18
Total income taxes
390
270
235
