23 Pensions and other post-employment benefits
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Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Notes to the consolidated financial statements continued
Investors
Defined benefit plans
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 on the consolidated balance sheet:
million
January 1, January 2,
2012 2011
Defined benefit liabilities
(94)
(129)
Defined benefit assets
498
408
Total defined benefit plans
404
279
The defined benefit assets are part of the other non-current financial assets; for more information, see Note 15.
Net periodic benefit cost, which is presented in the income statement according to its function as a component of cost of sales, selling
expenses, and general and administrative expenses, was as follows:
million
2011
2010
Current service cost
73
76
Interest cost
182
174
Expected return on plan assets
(211)
(205)
Actuarial losses
19
28
Past service cost
(8)
Total net periodic benefit cost
63
65
