o www.ahold.com/reports2009
Notes to the consolidated financial statements
23 Pensions and other post-employment benefits - continued
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Financials
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
2009
2008
Current service cost
73
71
Interest cost
171
158
Expected return on plan assets
(181)
(217)
Actuarial (gains) losses
19
(26)
Curtailments and settlements
(3)
(3)
Total net periodic benefit cost (income)
79
(17)
In addition, net periodic benefit income of €40 million related to discontinued operations was recognized in 2008.
The changes in the defined benefit obligation and plan assets in 2009 and 2008 were as follows:
The Netherlands
United States
Total
million
2009
2008
2009
2008
2009
2008
Defined benefit obligation
Beginning of the year
1,817
2,105
1,018
923
2,835
3,028
Current service cost
47
50
26
25
73
75
Interest cost
103
109
68
59
171
168
Actuarial (gains) losses
168
(48)
69
12
237
(36)
Contributions by plan participants
11
18
11
18
Benefits paid
(96)
(85)
(47)
(42)
(143)
(127)
Curtailments
2
(4)
2
(4)
Settlements
(332)
(332)
Other
3
3
Exchange rate differences
(22)
45
(22)
45
End of the year
2,050
1,817
1,117
1,018
3,167
2,835
Plan assets
Fair value of assets, beginning of the year
1,931
2,689
705
825
2,636
3,514
Expected return on plan assets
124
165
57
63
181
228
Actuarial gains (losses)
88
(593)
69
(207)
157
(800)
Company contribution
167
80
96
34
263
114
Contributions by plan participants
11
18
11
18
Benefits paid
(96)
(85)
(47)
(42)
(143)
(127)
Settlements
(343)
(343)
Other
2
2
Exchange rate differences
(18)
32
(18)
32
Fair value of assets, end of the year
2,225
1,931
864
705
3,089
2,636
Surplus/(deficit)
175
114
(253)
(313)
(78)
(199)
Unrecognized actuarial (gains) losses
70
(2)
192
202
262
200
Unrecognized past service cost
(2)
(2)
(2)
(2)
Net asset/(liability)
245
112
(63)
(113)
182
(1)
The total defined benefit obligation of €3,167 million as of January 3, 2010 includes €128 million related to plans that are wholly
unfunded. These plans include other benefits (such as life insurance and medical care) and supplemental executive retirement plans.
Ahold Annual Report 2009 89
