Defined Contribution Plans
In Belgium, Delhaize Group sponsors for substantially all of its employees a defined contribution plan, under which the
Group and the employees (starting in 2005) also, c ontribute a fixed monthly amount. The contributions are adjusted annually
according to the Belgian consumer price index. Employees that were employed before implementation of the plan were able
to choose not to participate in the employee contribution part of the plan. The plan assures the employee a lump-sum
payment at retirement based on the contributions made. Based on Belgian law, the plan includes a minimum guaranteed
return, which is guaranteed by an external insurance company that receives and manages the contributions. Since July
2010, the Group also sponsors an additional defined contribution plan, with out employee contribution, for a limited number of
e m ployees who decided to change pension plans (see below "Defined Benefit Plans"). The expenses related to these plans
were €10 million in 2012, €9 million in 2011 and €6 million in 2010 respectively.
In the U.S., Delhaize G roup sponsors profit-sharing retirement plans covering all employees at Food Lion, Sweetbay,
Hannaford and Harveys with one or more years of service. Profit-sharing contributions substantially vest after three years of
service. Forfeitures of profit-sharing contributions are used to reduce future employer contributions or offset plan expenses.
The profit-sharing contributions to the retirement plan are discretionary and determined by Delhaize America, LLC's Board of
Directors. The profit-sharing plans also include a 401(k) feature that permits participating employees to make elective
deferrals of their compensation and requires that the employer makes matching contributions.
The defined contribution plans generally provide benefits to participants upon death, retirement or termination of
e m ploym ent.
The expenses related to these U.S. defined contribution retirement plans were €46 million in 2012 and €37 million in 2011
and 2010.
In addition, Delhaize Group operates defined contribution plans in Greece to which only a limited number of employees are
entitled and where the total expense is insignificant to the Group as a whole.
Defined Benefit Plans
Approxi m ately 30% of Delhaize Group employees are covered by defined benefit plans.
In Belgium, Delhaize Group has a defined benefit pension plan covering approximately 7% of its employees. The plan is
subject to legal funding requirements and is funded by contributions from plan participants and the Group. The plan provides
lump-sum benefits to participants upon death or retirement based on a formula applied to the last annual salary of the
associate before his/her retirement or death. An independent insurance company guarantees a minimum return on plan
assets and mainly invests in debt securities in order to achieve that goal. Delhaize Group bears any risk above this minimum
guara nte e
During 2010, Delhaize G roup offered its employees who participate in the defined benefit plan on a going forward basis the
opportunity to participate in a new defined contribution plan (new plan), instead of continuing earning benefits under the
defined benefit pension plan (old plan). Approximately 40% of the eligible employees accepted the offer, reducing the
number of people covered by the old plan to the above mentioned 7%. Under B elgian legislation, employees that decided to
participate in the new plan for future service, remain entitled to retirement benefits under the old defined benefit plan for past
service. Due to the plan amendment, a negative past service cost related to death-in-service benefits of €3 million was
recognized in 2010.
In the U.S., D elhaiz e G roup operates several defined benefit pension plans that can be grouped into three different ty pes.
(a) Cash balance plans set up a hypothetical individual account for each employee, and credits each participant
annually with a plan contribution that is a percentage of the partici pant's monthly compensation. The c o n tri butions
are transferred to a separate plan asset that generates return based on the investment po rtfo lio. The largest plan is
funded and covers approximately 65% of the Hannaford employees.
As of December 31, 2012 the actuarial calculation resulted in a benefit to the Group that is not subject to asset
ceiling restrictions and an asset of $5 million (€4 million) has been recognized in "Other non -current assets.
In 2011 when aligning the benefits and compensation across its operating entities, Delhaize America modified the
terms of the plan and froze it for new employees and for further accruals of current employees. The plan
amendment led to the recognition of net actuarial losses of $8 million (€6 million), recognized in OCI and of net
curtailment gain of $13 million (€10 million), included in "Selling, general and administrative expenses.
Following the plan amendment, the investment policy for the funded plan was also changed and as from 2012 it
mainly invests in debt securities.
(b) Delhaize America sponsors further unfunded non-qualified deferred compensation plans offered to a very limited
number of Hannaford, Food Lion, Sweetbay and Harveys officers. These plans provide benefit to the participant at
some time in the future by deferring a part of their annual cash compensation that is adjusted based on returns of a
hypothetical investment account. The balance is payable upon termination or retirement of the participant.
130 DELHAIZE GROUP FINANCIAL STATEMENTS'12
