Notes to the consolidated financial statements
22 Pensions and other post-employment benefits continued
Defined contribution plans
Multi-employer plans
Defined contribution plans
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 82
In the United States, there are defined contribution plans principally in the form of savings, incentive compensation and bonus
plans. In connection with the Company's decision to transition the current 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 above, a new
401(k) plan was introduced as of January 1, 2009.
During 2008 and 2007, the Company contributed EUR 11 million and EUR 21 million, respectively, to defined contribution plans.
These contributions are recognized as an expense in the consolidated income statement, of which EUR 0 million and EUR 9 million,
respectively, related to discontinued operations.
A significant number of union employees in the United States are covered by multi-employer plans. 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 consolidated balance sheet.
Defined benefit plans
Ahold participates in 11 multi-employer pension plans that are defined benefit plans on the basis of the terms of the benefits
provided. Ahold's participation percentage in these plans is 5 percent on average, varying from less than 2 percent to over 50
percent. On the basis of the most recent reliable information available (generally as of December 31, 2007), the total deficit of
these pension plans amounts to EUR 4.2 billion (2007: EUR 4.0 billion). The estimated proportionate share of the total deficit
allocable to Ahold is EUR 375 million (2007: EUR 458 million), which is based on the relative amount of contributions made by
Ahold in relation to the total amount of contributions made to these plans. This deficit does not reflect the expected negative 2008
returns on plan assets, which could significantly increase the deficit. The 2007 estimates provided as comparative information were
generally based on information as of December 31, 2005.
During 2008 and 2007, the Company contributed EUR 46 million and EUR 45 million, respectively, to multi-employer defined
benefit plans from continuing operations which is recognized as an expense in the consolidated income statement. The unfunded
liabilities of these plans may result in increased future payments by the Company and the other participating employers. Ahold's
risk of such increased contributions may be greater if any of the participating employers in an underfunded multi-employer plan
withdraws from the plan due to insolvency and is not able to contribute an amount sufficient to fund the unfunded liabilities
associated with its participants of the plan.
Ahold also participates in over 50 multi-employer plans which 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 2008 and 2007, the Company
contributed EUR 164 million and EUR 226 million, respectively, to multi-employer defined contribution plans. These contributions
are recognized as an expense in the consolidated income statement, of which EUR 0 million and EUR 31 million, respectively,
related to discontinued operations. These plans vary significantly in size, with contributions to the four largest plans representing
68 percent of total contributions.
