23 Pensions and other post-employment benefits continued
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Notes to the consolidated financial statements continued
Investors
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 balance sheet.
Defined benefit plans
Ahold participates in 14 multi-employer pension plans that are defined benefit plans on the basis of the terms of the benefits provided.
Ahold's participation in these plans varies from less than two percent to over 50 percent. As of January 12012, based on the latest
available information received from these plans (generally as of December 31, 2010) adjusted for market trends and conditions through
the end of 2011, Ahold's estimated proportionate share in plans with a deficit position is €750 million (2010: €648 million) and its
proportionate share in plans with a surplus position is €21 million (2010: €20 million). This is based on an estimated total net deficit of
these plans of €10.9 billion (2010: €10.1 billion) and the relative amount of contributions made by Ahold in relation to the total amount of
contributions made to these plans. This estimate does not represent Ahold's direct obligation. While this is our best estimate, based upon
information available to us, it is imprecise and not necessarily reliable.
During 2011 and 2010, the Company contributed €69 million and €68 million, respectively, to multi-employer defined benefit plans, which
has been recognized as an expense in the consolidated income statement. If the underfunded liabilities of these plans are not reduced,
either by improved market conditions or collective bargaining changes, increased future payments by the Company and the other
participating employers may result. Moreover, if the Company were to exit certain markets or otherwise cease making contributions to
these funds, the Company could trigger a substantial withdrawal liability. Any adjustment for withdrawal liability will be recorded when it
is probable that a liability exists and the amount can be reasonably estimated. No withdrawal payments were incurred or included in the
2011 and 2010 contributions disclosed above. Ahold's risk of increased contributions and withdrawal liabilities may be greater if any of the
participating employers in an underfunded multi-employer plan withdraw from the plan or, due to insolvency, are not able to contribute an
amount sufficient to fund the underfunded liabilities associated with their participants in the plan.
Defined contribution plans
Ahold also participates in over 37 multi-employer plans that 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 2011 and 2010, the Company contributed €219 million
and €215 million, respectively, to multi-employer defined contribution plans. These contributions are recognized as an expense in the
consolidated income statement and related entirely to continuing operations in 2011 and 2010. These plans vary significantly in size, with
contributions to the three largest plans representing 64 percent of total contributions.
