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Derivative financial instruments
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Ahold Annual Report 2003 187
Financial Statements
Stock option plans
As part of Ahold's US GAAP significant accounting policies, the Company adopted the following additional disclosure
requirements of SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure". In 2003
and 2002, the Company recognized EUR 4 and EUR 2, respectively, of income related to the reversal of previously
recognized compensation charges. In 2001 the Company recognized compensation cost of less than EUR 1, related
to minor issuances of stock options accounted for using variable accounting. These adjustments are included within
the caption "Other" in the reconciliations of US GAAP consolidated net income and consolidated shareholders'
equity. Had compensation costs for the Company's stock option plans been determined in accordance with SFAS
No. 123, "Accounting for Stock-Based Compensation," US GAAP stock-based compensation cost and results would
have been as follows (on a pro forma basis):
2003
2002
2001
Net loss, as reported under US GAAP
(747)
(4,328)
(254)
Add: stock-based employee compensation expense included in reported net income,
net of related tax effects
(4)
(2)
Deduct: Total stock-based employee compensation expense for all awards accounted
for under SFAS No. 123, net of related tax effects
(22)
(42)
(42)
US GAAP pro forma net loss
(773)
(4,372)
(296)
Loss per share
Basic, as reported
(0.73)
(4.32)
(0.27)
Basic, pro forma
(0.75)
(4.37)
(0.32)
Diluted, as reported
(0.73)
(4.32)
(0.27)
Diluted, pro forma
(0.75)
(4.37)
(0.32)
Advertising costs
Advertising costs have been expensed as incurred. Advertising expenses totaled EUR 632, EUR 672 and EUR 643
in 2003, 2002 and 2001, respectively.
The number of derivative contracts, nominal values, and fair values segregated by the maturity of the contracts
(excluding embedded derivatives) are presented in the table below:
December 28, 2003 December 29, 2002
Fair Fair
Contracts Nominal value Contracts Nominal value
Interest rate swaps
up to 1 year
2
57
(1)
from 1 year to 5 years
3
886
47
1
192
(20)
from 5 years to 10 years
1
356
(11)
1
600
60
Total interest rate swaps
4
1,242
36
4
849
39
Cross currency swaps
up to 1 year
1
24
(5)
from 1 year to 5 years
7
1,727
309
7
1,727
(34)
from 5 years to 10 years
1
600
181
1
600
67
greater than 10 years
4
1,012
26
4
1,068
(17)
Total cross currency swaps
12
3,339
516
13
3,419
11
Foreign currency forwards and swaps
up to 1 year
61
66
(2)
33
359
(7)
from 1 year to 5 years
4
44
(4)
6
55
2
Total foreign currency forwards and swaps
65
110
(6)
39
414
(5)
Commodity forward contracts
up to 1 year
2
1
8
1
from 1 year to 5 years
2
1
Total commodity forward contracts
2
1
10
2
Total derivative financial instruments
83
4,691
547
66
4,682
47
