23 Pensions and other post-employment benefits
Ahold Annual Report 2012 HI
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
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 pay defined benefit 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
December 30,
2012
January 1
2012
Defined benefit liabilities
Defined benefit assets
(110)
662
(94)
498
Total defined benefit plans
552
404
The defined benefit assets are part of the other non-current financial assets; for more information, see Note 15.
Net defined 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
2012
2011
Current service cost
Interest cost
Expected return on plan assets
Actuarial losses
Curtailment gain
Settlement loss
76
195
(221)
28
(33)
121
73
182
(211)
19
Total net defined benefit cost
166
63
