31
31 Reconciliation of Dutch GAAP to US GAAP
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Ahold Annual Report 2003
Financial Statements
171
investigations, Ahold will be required to pay substantial fines, consent to injunctions on future conduct, lose
the ability to conduct business with government instrumentalities and with customers in the casino and gaming
industries, be required to restate certain annual accounts or suffer other penalties and remedies, each of which
could have a material adverse effect on the Ahold's consolidated financial condition, results of operations and
cash flows.
Additionally, Ahold and its subsidiaries are parties to a number of other legal proceedings arising out of their
business operations. Ahold believes that the ultimate resolution of these other proceedings will not, in the aggregate,
have a material adverse effect on Ahold's consolidated financial condition, results of operations, or cash flows. Such
other legal proceedings, however, are subject to inherent uncertainties and the outcome of individual matters is not
predictable. It is possible that Ahold could be required to make expenditures, in excess of established reserves,
in amounts that cannot reasonably be estimated.
The Company's consolidated financial statements have been prepared in accordance with Dutch GAAP, which varies
in certain significant respects from US GAAP. Such differences involve methods for measuring the amounts shown
in the consolidated financial statements as well as additional disclosures required by US GAAP. The principal
differences between Dutch GAAP and US GAAP for the Company are quantified and described below.
a) Reconciliation of consolidated net income (loss) and consolidated shareholders' equity from Dutch GAAP to US GAAP
The effects of the application of US GAAP on consolidated net income (loss) for 2003, 2002 and 2001 are set out in
the table below:
2003
2002
2001
Net income (loss) in accordance with Dutch GAAP
(1)
(1,208)
750
Items increasing (decreasing) net income (loss)
Recognition and amortization of goodwill
1
166
253
(160)
Recognition and amortization of other intangible assets
2
(18)
(25)
(50)
Impairment of:
Goodwill and other intangible assets
3
(66)
(751)
(4)
Other long-lived assets
4
26
9
Assets held for sale
5
(506)
Restructuring provisions
6
14
(26)
33
Sale and leaseback of property
7
(38)
(36)
(142)
Derivative instruments
8
(35)
(30)
(111)
Valuation of ICA Put Option
9
(60)
(31)
(10)
Divestments
10
(6)
Other
11
11
(2)
(35)
Income tax effects of reconciling items
12
(69)
30
116
Share in income (loss) of joint ventures and equity investees, net of tax
13
(25)
119
(588)
Minority interest impact on reconciling items
14
(2)
5
Dividend on cumulative preferred financing shares
15
(38)
(38)
(38)
Income (loss) in accordance with US GAAP before cumulative effect of changes in accounting principles
(647)
(1,736)
(234)
Cumulative effect of changes in accounting principles for:
Derivative financial instruments, net of income tax benefits of EUR 4
8
(20)
Goodwill and other intangible assets including EUR 1,846 relating to USF,
net of income tax benefit of EUR 257
4
(2,499)
Goodwill in joint ventures and equity method investees
13
(93)
Accounting by a customer of certain consideration received from vendors,
net of income tax expense of EUR 47
16
(100)
Net income (loss) in accordance with US GAAP
(747)
(4,328)
(254)
