23 Pensions and other post-employment benefits continued
Notes to the consolidated financial statements continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
Most of these plans are defined contribution plans. All plans that are defined benefit plans, on the basis of the terms of the benefits
provided, are accounted for as defined contribution plans because sufficient information is not available to account for these plans as
defined benefit plans. These plans are generally flat dollar benefit plans. Ahold is only one of several employers participating in each of
these plans and the financial information that is provided by the third-party managers of the plans on the basis of the contractual
agreements is usually insufficient to reliably measure Ahold's proportionate share in the plan assets and liabilities on defined benefit
accounting principles. Furthermore, the financial statements of the multi-employer plans are drawn up on the basis of other accounting
policies than those applied by Ahold. Consequently, these multi-employer plans are not included in Ahold's balance sheet.
Defined benefit plans
Ahold participates in 14 multi-employer pension plans that are defined benefit plans on the basis of the terms of the benefits provided.
Ahold's participation in these plans varies from less than two percent to over 50 percent. As of January 2, 2011, based on the latest
available information received from these plans (generally as of December 31, 2009) adjusted for market trends and conditions through
the end of 2010, Ahold's estimated proportionate share in plans with a deficit position is €648 million (2009: €705 million) and its
proportionate share in plans with a surplus position is €20 million (2009: nil). This is based on an estimated total net deficit of these plans of
€10.1 billion (2009: €10.8 billion) and the relative amount of contributions made by Ahold in relation to the total amount of contributions
made to these plans. This estimate does not represent Ahold's direct obligation. While this is our best estimate, based upon information
available to us, it is imprecise and not necessarily reliable.
During 2010 and 2009, the Company contributed €68 million and €56 million, respectively, to multi-employer defined benefit plans, which
has been recognized as an expense in the consolidated income statement. If the underfunded liabilities of these plans are not reduced,
either by improved market conditions or collective bargaining changes, increased future payments by the Company and the other
participating employers may result. Moreover, if the Company were to exit certain markets or otherwise cease making contributions to
these funds, the Company could trigger a substantial withdrawal liability. Any adjustment for withdrawal liability will be recorded when it is
probable that a liability exists and the amount can be reasonably estimated. Included in the 2010 and 2009 contributions disclosed above
were nil and €7 million, respectively, of withdrawal payments. Ahold's risk of increased contributions and withdrawal liabilities may be
greater if any of the participating employers in an underfunded multi-employer plan withdraw from the plan or, due to insolvency, are not
able to contribute an amount sufficient to fund the underfunded liabilities associated with their participants in the plan.
Defined contribution plans
Ahold also participates in over 39 multi-employer plans that are defined contribution plans on the basis of the terms of the benefits
provided. The majority of these plans provide health and welfare benefits. During 2010 and 2009, the Company contributed €215 million
and €199 million, respectively, to multi-employer defined contribution plans. These contributions are recognized as an expense in the
consolidated income statement and related entirely to continuing operations in 2010 and 2009. These plans vary significantly in size, with
contributions to the three largest plans representing 64 percent of total contributions.
