00 Ahold ANNUAL REPORT 2002 151
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
U.S. Pensions U.S. Other benefit plans
Fiscal 2002 Fiscal 2001 Fiscal 2002 Fiscal 2001
Benefit obligation:
Beginning of the year
1,050
668
72
56
Service cost
43
22
2
1
Interest cost
72
56
5
5
Amendments
2
12
2
Actuarial loss
107
72
20
Acquisition
24
213
10
Foreign currency exchange rate changes
(175)
43
(13)
3
Benefits paid
(67)
(36)
(3)
(3)
End of year
1,056
1,050
85
72
Plan Assets:
Fair value of assets, beginning of the year
738
646
Actual return on plan assets
(52)
(57)
Company contribution
25
8
3
3
Acquisition
9
135
Foreign currency exchange rate changes
(103)
42
Benefits paid
(67)
(36)
(3)
(3)
Fair value of assets, end of the year
550
738
Funded status of plan
(506)
(312)
(85)
(72)
Unrecognized actuarial (gain) loss
309
133
14
(5)
Unrecognized prior service cost
16
21
2
Unrecognized net transition obligation
(1)
Net balances
(181)
(159)
(69)
(77)
Classification of the net balances is as follows:
Prepaid benefit cost
43
Accrued benefit liability
(390)
(213)
(69)
(77)
Intangible asset
17
1
Deferred tax asset
77
4
Accumulated other comprehensive income
115
6
Net balances (181) (159) (69) (77)
U.S. Pension Plans U.S. Other Benefits
Net periodic benefit cost:
Fiscal 2002
Fiscal 2001
Fiscal 2000
Fiscal 2002
Fiscal 2001
Fiscal 2000
Service cost of benefits earned
43
22
17
2
1
1
Interest cost on benefit obligation
72
56
46
5
4
4
Expected return on assets
(62)
(61)
(53)
Amortization of transition asset
(1)
(1)
Amortization of prior service cost
2
2
1
Recognized actuarial (gain) loss
3
(4)
(6)
Net periodic benefit cost
58
14
4
7
5
5
The assumptions used to develop the actuarial present value of benefit obligations and pension expense under SFAS
No. 87 were as follows:
Pensions
Other benefit plans
U.S. plans
Fiscal 2002
Fiscal 2001
Fiscal 2000
Fiscal 2002
Fiscal 2001
Fiscal 2000
Discount rate for obligations
6.75%
7.50%
8.00%
6.75%
7.50%
8.00%
Expected return on plan assets
9.00%
9.00%
9.00%
N/A
N/A
N/A
Average salary increases
4.00%
4.50%
4.50%
4.00%
4.50%
4.50%
