93
23 Pensions and other post-employment benefits continued
-
-
-
-
-
-
-
-
-
-
Plan assets
-
-
-
-
-
-
-
-
-
-
Notes to the consolidated financial statements continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
The changes in the defined benefit obligation and plan assets in 2010 and 2009 were as follows:
The Netherlands United States Total
million 2010 2009 2010 2009 2010 2009
Defined benefit obligation
Beginning of the year
2,050
1,817
1,117
1,018
3,167
2,835
Current service cost
58
47
18
26
76
73
Interest cost
101
103
73
68
174
171
Actuarial (gains) losses
(17)
168
82
69
65
237
Contributions by plan participants
14
11
14
11
Benefits paid
(88)
(96)
(62)
(47)
(150)
(143)
Curtailments
2
2
Other
(8)
3
(8)
3
Exchange rate differences
77
(22)
77
(22)
End of the year
2,118
2,050
1,297
1,117
3,415
3,167
Fair value of assets, beginning of the year
2,225
1,931
864
705
3,089
2,636
Expected return on plan assets
137
124
68
57
205
181
Actuarial gains (losses)
72
88
39
69
111
157
Company contribution
116
167
51
96
167
263
Contributions by plan participants
14
11
14
11
Benefits paid
(88)
(96)
(62)
(47)
(150)
(143)
Other
2
2
Exchange rate differences
60
(18)
60
(18)
Fair value of assets, end of the year
2,476
2,225
1,020
864
3,496
3,089
Surplus (deficit)
358
175
(277)
(253)
81
(78)
Unrecognized actuarial (gains) losses
(37)
70
237
192
200
262
Unrecognized past service cost
(2)
(2)
(2)
(2)
Net asset (liability)
321
245
(42)
(63)
279
182
The total defined benefit obligation of €3,415 million as of January 2, 2011 includes €138 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.
In 2008, the Company decided to transition its defined benefit pension plan for active salaried, non-union, and certain union employees
("eligible employees") in the United States to a defined contribution pension plan. Eligible employees who were at least 50 or had 25 or
more years of service as of December 31, 2009 could choose to either stay in the defined benefit plan or transfer to the new 401(k) plan.
All other eligible employees were transferred to the new 401(k) plan. Accrued benefits under the defined benefit plan for employees
transferred to the new 401(k) plan were frozen for pay and service as of December 31, 2009 (frozen plan). The resulting curtailment gain
in 2008 was largely offset by accrued additional (transition) contributions that the Company will make for a period of five years (2010
2014) to employees meeting certain age or service requirements that were transferred to the new 401(k) plan. The Company intends
to settle the frozen accrued benefits in 2012. When a settlement occurs, the resulting gain or loss (i.e. the difference between the value
of the benefits determined under the prevailing rules and the value of the corresponding assets at that time) will be recognized at the
settlement date.
