(3) Amortization and impairment of other intangible assets
As discussed in Note 3(d), the Company recorded adjustments in connection with several acquisitions for which the
respective purchase prices were not allocated to identifiable other intangible assets based on the fair value of such assets
at the date of acquisition. This adjustment reflects the effect of the capitalization of certain other intangible assets and
the subsequent amortization and impairment recognized on these assets. Under US GAAP, prior to the adoption of SFAS
No. 142 effective December 31, 2001, other intangible assets were capitalized and amortized over a period not exceeding
40 years. After the adoption of SFAS No. 142, intangibles that are determined to have indefinite lives are no longer
amortized, but tested for impairment at least annually. Other intangible assets continue to be amortized over a period not
exceeding 40 years.
(4) USF purchase accounting adjustments
As discussed in Note 3(c), the Company identified certain accounting irregularities relating to pre-acquisition transactions
at USF relating to vendor allowances. The Company determined that certain net receivables from vendors at the date of
the USF acquisition in 2000 did not exist at the time. In addition, the Company determined that, at the date of
acquisition, a liability for deferred revenue related to unearned vendor allowances was not recorded. Furthermore, the
Company determined that a liability should have been recognized at the date of acquisition for amounts that had been
overbilled to vendors for vendor allowances. The total amount of these adjustments led to a pre-tax overstatement of net
assets acquired by EUR 117. Under US GAAP these misstatements in the acquisition balance sheet of USF are recorded
as a write-off to income at the acquisition date.
(5) Sale and leaseback of property
As discussed in Note 3(f), the Company performed a comprehensive an analysis of all sale and leaseback transactions
under Dutch and US GAAP. Certain gains previously recognized for Dutch GAAP on sale and leaseback transactions were
deferred as part of the Dutch GAAP restatements described in Note 3(f). Since the gains had been previously deferred
under US GAAP, the Dutch GAAP restatement had the effect of creating a US GAAP difference. Additionally, certain gains
on sale and leaseback transactions were appropriately recognized under Dutch GAAP but inappropriately recognized under
US GAAP. Accordingly, the restatement of the reconciliation in the table above includes the effect of deferring these gains
for US GAAP reporting purposes.
(6) Derivative instruments, including cumulative effect adjustment
Upon adoption of SFAS No. 133 in 2001, the Company initially applied hedge accounting to certain derivative financial
instruments based on the criteria of SFAS No. 133 that required Ahold to account for the instruments as either fair value
or cash flow hedges. Based on a further evaluation of the requirements to document the hedge relationship and
effectiveness, the company concluded that it had not sufficiently documented its hedging transactions in fiscal 2001 to
meet the documentation requirements of SFAS No. 133. The company additionally miscalculated the fair value of the
foreign currency derivatives embedded in certain lease contracts. Additional adjustments were made to account for the tax
effect of certain derivatives that was not previously recorded. Accordingly, the fiscal 2001 financial position and results
were adjusted to record the Company's derivative financial instruments at fair value and record gains and losses in the
consolidated statements of operations. The company believes that documentation was sufficiently prepared and compiled
by January 1, 2002, such that hedge accounting could be applied prospectively from that date.
(7) Valuation of ICA Put Option
As described in Note 31(a)9, the Company issued an ICA Put Option which was not previously accounted for under US
GAAP. Under US GAAP, the financial position and results for fiscal 2001 and 2000 have been adjusted to record the fair
value of the ICA Put Option as part of the consideration paid to acquire the Company's 50% interest in ICA and a
corresponding liability. Changes in the fair value of the written put options are recorded in income.
(8) Other
Other adjustments represent various individually insignificant adjustments such as adjustments relating to capitalized
software and impairment of other long-lived assets.
(9) Investment in joint ventures and equity investees, net of tax
As discussed in Note 31(a)12, certain GAAP differences exist with respect to the Company's equity method investees.
Certain of these differences were not accounted for in the reconciliation of consolidated net income (loss) and
consolidated shareholders' equity to US GAAP in prior years. Accordingly, the reconcilations of consolidated net income
(loss) and consolidated shareholders' equity have been restated to reflect these differences. Differences mainly related to
various adjustments similar to the adjustments described above that have been recorded in the books of the joint ventures
and equity investees. The adjustment also reflects the reclassification of amortization and impairment of goodwill that
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