Notes to the consolidated financial statements
106
23 Pensions and other post-employment benefits (continued)
-
-
-
-
-
-
-
-
-
-
-
-
-
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
The changes in the defined benefit obligations and plan assets in 2014 and 2013 were as follows:
The Netherlands
United States
Total
millior
2014
2013
2014
2013
2014
2013
Defined benefit obligations
Beginning of the year
3,372
3,433
1,020
1,350
4,392
4,783
Current service cost
87
98
17
21
104
119
Past service cost
(59)
(9)
(68)
Gain on settlements
(9)
(9)
Interest expense
124
125
52
49
176
174
Contributions by plan participants
18
16
18
16
Benefits paid
(87)
(94)
(65)
(60)
(152)
(154)
Settlement payments
(164)
(164)
(Gain) loss from changes in demographic assumptions
21
(3)
32
16
53
13
(Gain) loss from changes in financial assumptions1
527
(157)
123
(141)
650
(298)
Experience (gains) losses
24
(46)
(4)
(1)
20
(47)
Exchange rate differences
142
(41)
142
(41)
End of the year
4,027
3,372
1,308
1,020
5,335
4,392
Plan assets
Fair value of assets, beginning of the year
3,195
3,191
854
972
4,049
4,163
Interest income
115
114
45
36
160
150
Company contribution
116
122
53
61
169
183
Contributions by plan participants
18
16
18
16
Benefits paid
(87)
(94)
(65)
(60)
(152)
(154)
Settlement payments
(164)
(164)
Administrative cost
(7)
(4)
(2)
(4)
(9)
(8)
Return on plan assets, excluding amounts included in net interest (income) expense
643
(150)
55
48
698
(102)
Exchange rate differences
117
(35)
117
(35)
Fair value of assets, end of the year
3,993
3,195
1,057
854
5,050
4,049
Funded status
(34)
(177)
(251)
(166)
(285)
(343)
1 The 2014 loss of €527 million from changes in financial assumptions in the Netherlands' plans included a €1,005 million loss resulting from a decrease in the discount rate, offset by a €474 million gain resulting from a decrease in the future pension increase assumption.
The total defined benefit obligation of €5,335 million as of December 28, 2014, includes €99 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.
