Notes: 22
148
Ahold Annual Report 2003
Financial Statements
2003 changes to the restructuring provision
In 2003, restructuring provisions decreased by EUR 10 as a result of a reclassification as impairment of fixed assets
at USE of EUR 9 and the divestiture of Jamin in 2003 of EUR 1.
In 2003, the Company decided to reorganize its operations in The Netherlands in order to increase efficiency
and respond to increased price competition in the Dutch market. Therefore, in 2003, the Company recognized
a EUR 26 of restructuring provisions, of which EUR 17 relates to a restructuring at Albert Heijn, EUR 5 to a
restructuring at Deli XL and EUR 2 to a restucturing at Ahold Real Estate. The EUR 24 provision recognized as a
result of these restructuring efforts mainly related to severance charges in connection with the termination of
573 employees, of which 21 were terminated by the end of 2003. The restructuring charges were based on formal
plans approved by the Company's management using the best information available at the time. The amounts that
are ultimately incurred may change as the plan is executed.
During 2003, EUR 44 of the restructuring provision was utilized, EUR 35 of which related to the restructuring
provisions at USE, EUR 6 related to Albert Heijn and EUR 3 related to various other operating companies.
The Company recorded changes in estimates during 2003 of EUR 11, mainly related to releases in restructuring
provisions of EUR 14 of which EUR 5 was released from the provision at USE, EUR 4 was released from the provision
at Albert Heijn and EUR 4 was released from the provision at Schuitema.
After the effect of exchange rate differences, a total restructuring provision of EUR 82 remained as of
December 28, 2003, of which EUR 45 related to USE, EUR 19 related to Albert Heijn, EUR 9 related to
Schuitema, EUR 5 related to Deli XL and EUR 4 related to various other operating companies. The Company
expects to complete these restructurings in 2004.
2002 changes to the restructuring provision
In 2002 the Company recorded restructuring provisions relating to acquisitions for EUR 10, relating to various small
acquisitions.
In 2002 the Company recognized EUR 42 of restructuring provisions, EUR 23 of which relates to a restructuring
at USE, EUR 9 to Albert Heijn and EUR 10 mainly relating to South America. The Company decided to reorganize its
operations in South America, mainly due to the weak economic circumstances. As a result of this reorganization, the
Company recognized a liability of approximately EUR 10, mainly for severance charges relating to the termination of
2,034 employees, of which 1,788 were terminated by year-end 2002. The restructuring charges are based on formal
plans approved by the Company's management using the best information available at the time. The amounts that are
ultimately incurred may change as the plan is executed. This USE restructuring provision includes a charge of EUR 11
relating to the termination of employees, rent liabilities of EUR 9 and closing costs of EUR 3.
During 2002, EUR 110 of the restructuring provisions were utilized, EUR 52 of which related to the restructuring
provisions at USE, EUR 32 to Alliant and EUR 6 to Albert Heijn.
The Company released approximately EUR 47 of restructuring provisions during 2002 relating to restructuring
provisions recorded at Alliant of EUR 15, at USE of EUR 13 and at other various entities of EUR 19.
After the effect of exchange rate differences, a total restructuring provisions of EUR 136 remained as of December
29, 2002, of which EUR 79 related to Alliant, EUR 45 to USE and EUR 12 to other various entities.
2001 changes to the restructuring provision
In 2001 the Company recorded restructuring provisions relating to acquisitions of EUR 118. EUR 111 of this
provision related to the acquisition of Alliant in November 2001 which included provisions for closing costs of
EUR 60, rent liabilities of EUR 30 and severance cost of EUR 21, relating to the termination of approximately
870 employees.
Eurthermore, the Company recognized restructuring provisions amounting to EUR 141, EUR 111 of which
related to a restructuring of USE, EUR 18 related to a restructuring of Ahold's operations at U.S. Retail, EUR 6
related to restructuring provisions recorded at Albert Heijn and EUR 6 relates to other various entities. The USE
restructuring mainly related to the integration of USE's operation with those of Alliant and included a charge of
EUR 33 relating to the severance benefits of approximately 580 employees, rent liabilities of EUR 43 and closing
costs of EUR 35.
During 2001, EUR 62 of the restructuring provisions was utilized, mainly relating to the restructuring efforts at USE.
The Company lowered in 2001 the estimated restructuring provisions by approximately EUR 80, of which
EUR 33 related to USE, EUR 21 related to A&P and EUR 26 related to other various entities. These reversals were
accounted for as an adjustment to the purchase price allocation resulting in an increase of the goodwill recorded for
these acquisitions. Another EUR 18 was reversed relating to the restructuring provision for Albert Heijn.
After the effect of exchange rate differences, the remaining restructuring provisions as of December 30, 2001
amounted to EUR 263, of which EUR 113 related to Alliant, EUR 133 related to USE and EUR 17 related to various
other entities.
