00 Ahold
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
for Stock Based Compensation," US GAAP stock-based compensation cost and results would have been as follows (on a
pro forma basis):
Fiscal 2002 Fiscal 2001 Fiscal 2000
Net income (loss), as reported under US GAAP
Add: stock-based employee compensation expense
included in reported net income, net of related tax effects
Deduct: Total stock-based employee compensation:
expense for all awards accounted for under SFAS No. 123, net of
related tax effects
(4,328)
(2)
(42)
(254)
(42)
442
1
(33)
US GAAP pro forma net income
(4,372)
(296)
410
Earnings per share:
Basic, as reported
Basic, pro forma
Diluted, as reported
Diluted, pro forma
(4.67)
(4.72)
(4.67)
(4.72)
(0.30)
(0.34)
(0.30)
(0.34)
0.60
0.56
0.55
0.51
Advertising cost
Advertising costs have been expensed as incurred. Advertising expenses totaled EUR 672, EUR 643 and EUR 497 in
fiscal years 2002, 2001 and 2000, respectively.
Derivative financial instruments
The number of derivative contracts, nominal values, and fair values segregated by the maturity of the contracts (excluding
embedded derivatives) are presented in the table below:
December 29, 2002
Contracts Nominal Fair value
December 30, 2001
Contracts Nominal Fair value
Interest rate swaps:
up to 1 year
2
57
(1)
from 1 year to 5 years
1
192
(20)
4
429
(27)
from 5 years to 10 years
1
600
60
1
600
27
Total interest rate swaps
4
849
39
5
1,029
Cross currency swaps:
up to 1 year
1
24
(5)
from 1 year to 5 years
7
1,727
(34)
8
1,751
(352)
from 5 years to 10 years
1
600
67
greater than 10 years
4
1,068
(17)
4
1,705
(16)
Total cross currency swaps
13
3,419
11
12
3,456
(368)
Foreign currency forwards and swaps:
up to 1 year
33
359
(7)
19
187
4
from 1 year to 5 years
6
55
2
4
38
2
Total foreign currency forwards and swaps
39
414
(5)
23
225
6
Commodity forward contracts:
up to 1 year
8
1
6
(3)
from 1 year to 5 years
2
1
1
Total commodity forward contracts
10
2
7
(3)
Total derivative financial instruments
66
4,682
47
47
4,710
(365)
The use of derivatives is confined to the hedging of the operating business, the related investments and financing
transactions. Instruments commonly used are foreign currency forwards, interest rate swaps and cross currency swaps, as
well as diesel fuel commodity futures.
As of December 29, 2002, excluding embedded derivatives in lease contracts, the Company had 66 financial derivative
contracts outstanding of which one was designated as a fair value hedge of a financial instrument, 60 were designated as
ANNUAL REPORT 2002 185
