21
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Ahold Annual Report 2003
Financial Statements
145
European benefit plans
European pensions
2003
2002
Benefit obligation
Beginning of the year
1,713
1,590
Service cost
61
66
Plan participant contributions
18
16
Interest cost
94
86
Amendments
(5)
(28)
Actuarial loss
70
47
Benefits paid
(68)
(64)
End of the year
1,883
1,713
Plan Assets
Fair value of assets, beginning of the year
1,332
1,400
Actual return on plan assets
139
(113)
Company contribution
138
93
Plan participant contribution
18
16
Benefits paid
(68)
(64)
Fair value of assets, end of the year
1,559
1,332
Funded status of plan
(324)
(381)
Unrecognized actuarial loss
387
387
Unrecognized prior service cost
(27)
(30)
Unrecognized net transition obligation
(4)
Net balances
36
(28)
Classification of the net balances is as follows
Prepaid benefit cost
206
185
Accrued benefit liability
(193)
(225)
Deferred tax asset
8
4
Accumulated other comprehensive income
15
8
Net balances
36
(28)
The net periodic benefit cost:
European pensions
2003 2002
2001
Service cost of benefits earned
61 66
61
Interest cost on benefit obligation
94 86
81
Expected return on assets
(87) (91)
(95)
Actuarial loss
18 -
Amortization of transition asset
(4) (4)
Amortization of prior service cost
(3) (1)
(5)
Net periodic benefit cost
79 56
42
The assumptions used to develop the actuarial present value of benefit obligations and pension expense under
SFAS No. 87 were as follows:
Pensions
(in
2003 2002
2001
Discount rate for obligations
5.25 5.25
5.25
Expected return on plan assets
6.50 6.50
6.50
Average salary increases
2.50 2.50
2.50
