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Ahold Annual Report 2003 181
Financial Statements
10. Divestments
Under Dutch GAAP, the difference between the proceeds from the sale of a component of the Company's business
and the carrying value of the assets are recorded within operating income as a gain or loss on divestments.
At the date of sale, the carrying value of the assets includes a portion of goodwill which was directly charged to
shareholders' equity prior to December 2001 as well as the cumulative currency translation adjustments that had
previously been recorded in shareholders' equity.
Under US GAAP, the difference between the sales proceeds and the carrying value of the assets are also
recorded as results of divestments. At the date of sale, the carrying value of the assets under US GAAP mainly
differs from the carrying value under Dutch GAAP due to a difference in the carrying value of goodwill. This
difference is considered in the calculation and the timing of the recognition of the cumulative currency translation
adjustment.
Under Dutch GAAP, the Company recorded a loss on divestments of EUR 136 as described in Note 3.
Under US GAAP the loss on divestments was EUR 6 higher for 2003. This was the result of a higher US GAAP
carrying value of goodwill of EUR 16 and the realization of an additional cumulative currency translation adjustment
of EUR 34, which were partially offset by reversal under Dutch GAAP of goodwill of EUR 44 that was previously
recorded in shareholders' equity.
In 2003, the Company had the following divestments, all of which qualified as discontinued operations:
Entity Divested Date of Divestment
PT Ahold, Jakarta, Indonesia April 29, 2003
Tops Retail (Malaysia) Sdn. Bdn., Kuala Lumpur, Malaysia May 2, 2003
De Tuinen B.V. Beverwijk, The Netherlands May 20, 2003
Jamin Winkelbedrijf B.V., Oosterhout, The Netherlands June 16, 2003
Santa Isabel S.A., Santiago, Chile August 1, 2003
Supermercados Stock S.A., Asuncion, Paraguay September 24, 2003
Golden Gallon, U.S. October 17, 2003
De Walvis, Zaandam, The Netherlands July 22, 2003
Supermercados Santa Isabel S.A., Lima, Peru December 8, 2003
11. Other
Other includes adjustments for provisions, leases, capitalized software costs, inventory, prepaid promotions and
other various insignificant items. A summary of the components of "Other" is included in the table below:
Consolidated
Consolidated net shareholders'
income (loss) equity
2003
2002
2001
December 28,
2003
December 29,
2002
Provisions
(29)
(5)
(5)
Leases
(3)
(4)
(16)
(15)
Capitalized software costs
(3)
(5)
Inventory
(3)
(2)
Prepaid promotions
14
14
Restricted Stock Grants
4
Other
3
5
(1)
(10)
Total 11 (2) (35) (15) (20)
12. Income tax effects of reconciling items
The accounting for deferred tax assets and liabilities under Dutch GAAP and US GAAP are similar, except
that under Dutch GAAP a deferred tax asset is recorded where it is probable that the benefit will be realized.
Under US GAAP the asset is recognized to the extent it is more likely than not that the benefit will be realized.
In 2003, 2002 and 2001, in addition to the tax effects of reconciling items between Dutch GAAP and US
GAAP, additional valuation allowances were recognized under US GAAP relating to reconciling items due to higher
deferred tax asset balances under US GAAP as compared to Dutch GAAP. The additional valuation allowance
recognized under US GAAP was EUR 14, EUR 9, and EUR 3 in 2003, 2002 and 2001, respectively.
