Deferred income tax
Deferred income tax reflects the net tax effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components
of deferred income tax assets and liabilities as of December 29, 2002, and December 30, 2001, were as follows:
December 29, 2002 December 30, 2001
Deferred tax assets:
Capitalized lease commitments
171
103
Benefit plans
208
112
Restructuring provisions
8
32
Provisions not yet deductible
246
94
Operating loss carry forward
451
228
Alternative minimum tax carry forward
4
20
General business tax credit carry forward
1
Gross deferred tax assets
1,088
590
Valuation allowances on carry forwards
(384)
(98)
Valuation allowances on other deferred tax assets
(37)
(2)
Net deferred tax assets
667
490
Deferred tax liabilities:
Tangible fixed assets
(489)
(381)
Inventory
(61)
(37)
Other
(232)
(127)
Total deferred tax liabilities
(782)
(545)
Net deferred tax liabilities
(115)
(55)
Deferred income taxes are classified in the accompanying balance sheets as of December 29, 2002 and December 30,
2001 as follows:
December 29, 2002
December 30, 2001
Non-current deferred tax assets
457
475
Non-current deferred tax liabilities
(572)
(530)
(115)
(55)
As of December 29, 2002, Ahold has operating loss carry forwards of approximately EUR 1,525 expiring between fiscal
2003 and 2022. As of December 29, 2002, the Company also has an alternative minimum tax carry forward of EUR 43
expiring in fiscal 2003. Such operating loss carry forwards and tax credits may not be used to offset income taxes in other
jurisdictions. Ahold determines whether the tax benefit of certain net operating losses and certain general business tax
credits are realizable. The Company establishes valuation allowances considering whether it is probable that the carry
forwards of net operating losses and certain general business tax credits can be realized. The following table specifies the
expirations of the carry forwards and the allowances made.
Expiration of the carry forward by year:
2003 2004 2005 2006 2007 2008-2012 2013-2017 After 2017 Total
Operating loss
14
23
49
43
533
331
80
452
1,525
Alternative minimum tax
43
43
Total income tax carry forward
57
23
49
43
533
331
80
452
1,568
The Company recognizes a deferred tax liability related to the undistributed income of subsidiaries when the Company
expects that it will recover such undistributed income in a taxable manner, such as through receipt of dividends or sale of
the investments. The Company does not, however, provide for income taxes on the unremitted income of certain other
subsidiaries located outside The Netherlands because, in management's opinion, such income has been indefinitely
reinvested in these operations, will be remitted in a tax-free liquidation or will be remitted as dividends that will be exempt
under the Dutch Participation exemption. It is not practicable to determine the amount of unrecognized deferred tax
liabilities for temporary differences related to investments in these non-Dutch subsidiaries.
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