23 Pensions and other post-employment benefits
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Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Notes to the consolidated financial statements continued
Defined benefit plans
Ahold has a number of defined benefit pension plans covering a substantial number of employees, former employees, and retirees in the
Netherlands and the United States. Generally, the plans are career average or final average plans. In 2008, the Company decided to
transition its defined benefit pension plan for active salaried, non-union, and certain union employees in the United States to a defined
contribution pension plan, as further described below. In addition, Ahold provides life insurance and medical care benefits for certain retired
employees meeting age and service requirements at its U.S. subsidiaries, which the Company funds as claims are incurred.
Net assets relating to one plan are not offset against net liabilities of another plan, resulting in the following presentation of the pension and
other post-employment benefits on the consolidated balance sheet:
January 2, January 3,
million 2011 2010
Defined benefit liabilities
(129)
(96)
Defined benefit assets
408
278
Total defined benefit plans
279
182
The defined benefit assets are part of the other non-current financial assets; for more information, see Note 15.
Net periodic benefit cost, which is presented in the income statement according to its function as a component of cost of sales, selling
expenses, and general and administrative expenses, was as follows:
million
2010
2009
Current service cost
76
73
Interest cost
174
171
Expected return on plan assets
(205)
(181)
Actuarial (gains) losses
28
19
Past service cost
(8)
Curtailments and settlements
(3)
Total net periodic benefit cost
65
79
