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144
Ahold Annual Report 2003
Financial Statements
U.S. benefit plans
U.S. pensions
U.S. other benefits
2003
2002
2003
2002
Benefit obligation
Beginning of the year
1,056
1,050
85
72
Service cost
46
43
2
2
Interest cost
65
72
5
5
Amendments
(9)
2
(8)
2
Actuarial loss
122
107
17
20
Acquisition
3
24
1
Foreign currency exchange rate changes
(185)
(175)
(15)
(13)
Benefits paid
(58)
(67)
(3)
(3)
End of the year
1,040
1,056
84
85
Plan Assets
Fair value of assets, beginning of the year
550
738
Actual return on plan assets
90
(52)
Company contribution
60
25
3
3
Acquisition
9
Foreign currency exchange rate changes
(97)
(103)
Benefits paid
(58)
(67)
(3)
(3)
Fair value of assets, end of the year
545
550
Funded status of plan
(495)
(506)
(84)
(85)
Unrecognized actuarial loss
305
309
25
14
Unrecognized prior service cost
5
16
1
2
Net balances
(185)
(181)
(58)
(69)
Classification of the net balances is as follows
Accrued benefit liability
(410)
(390)
(58)
(69)
Intangible asset
13
17
Deferred tax asset
85
77
Accumulated other comprehensive income
127
115
Net balances
(185)
(181)
(58)
(69)
The net periodic benefit cost:
U.S. pensions
U.S. other benefits
2003
2002
2001
2003
2002
2001
Service cost of benefits earned
46
43
22
2
2
1
Interest cost on benefit obligation
65
72
56
5
5
4
Expected return on assets
(43)
(62)
(61)
Amortization of transition asset
(1)
Amortization of prior service cost
2
2
2
Recognized actuarial (gain) loss
22
3
(4)
1
Net periodic benefit cost
92
58
14
8
7
5
The assumptions used to develop the actuarial present value of benefit obligations and net periodic benefit costs
were as follows:
Pensions
Other benefit plans
(in
2003
2002
2001
2003
2002
2001
Discount rate for obligations
6.00
6.75
7.50
6.00
6.75
7.50
Expected return on plan assets
8.70
9.00
9.00
N/A
N/A
N/A
Average salary increases
4.00
4.00
4.50
4.00
4.00
4.50
