Notes to the consolidated financial statements
22 Pensions and other post-employment benefits
Defined benefit plans
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 78
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 in the consolidated balance sheet:
million
December 28,
2008
December 30,
2007
Defined benefit liabilities
Defined benefit assets
(113)
112
(183)
19
Total defined benefit plans
(1)
(164)
The defined benefit assets are part of the other non-current financial assets; for more information, see Note 15.
Net periodic benefit cost (income), which is presented in the consolidated income statement according to its function as a
component of cost of sales, selling expenses and general and administrative expenses, was as follows:
million
2008
2007
Current service cost
Interest cost
Expected return on plan assets
Actuarial gains
Past service cost
Gains on curtailments and settlements
71
158
(217)
(26)
(3)
93
151
(207)
(15)
2
(3)
Total net periodic benefit cost (income)
(17)
21
In addition, net periodic benefit income of EUR 40 million and EUR 49 million related to discontinued operations was recognized
in 2008 and 2007, respectively.
