Etablissements Delhaize Freres et Cie Le Lion S.A. (DEG)

DEG » Topics » Pension Plan Risk

This excerpt taken from the DEG 6-K filed May 4, 2009.

Pension Plan Risk

Most operating companies of Delhaize Group have pension plans, the structures and benefits of which vary with conditions and practices in the countries concerned. Pension benefits may be provided through defined contribution plans or defined benefit plans.

A defined contribution plan is a post-employment benefit plan under which Delhaize Group and/ or the associate pays fixed contributions usually to a separate entity. Under such a plan, there are no legal or constructive obligations to pay further contributions, regardless of the performance of the funds held to satisfy future benefit payments. The actual retirement benefits are determined by the value of the contributions paid and the subsequent performance of investments made with these funds.


 

A defined benefit plan is a post-employment benefit plan which normally defines an amount of benefit that an employee will receive upon retirement, usually dependent on one or more factors such as age, years of service, compensation and/or guaranteed returns on contributions made.

Delhaize Group operates defined benefit plans at several of its entities and a total of approximately 20% of Delhaize Group’s associates were covered by defined benefit plans at the end of 2008.

If, as of a balance sheet date, the fair value of the plan assets of a defined benefit plan, is lower than the defined benefit obligations (determined based on actuarial assumptions), the Group would bear an “underfunding risk” at that moment in time. At the end of 2008, Delhaize Group recognized a net liability of EUR 69 million (2007: EUR 61 million; 2006: EUR 75 million).

Details on pension plans at Delhaize Group and its subsidiaries can be found in Note 24 to the Financial Statements, “Employee Benefit Plans”.

This excerpt taken from the DEG 6-K filed Apr 29, 2008.

PENSION PLAN RISK

Most operating companies of Delhaize Group have pension plans, the structures and benefits of which vary with conditions and practices in the countries concerned. Pension benefits may be provided through defined contribution plans or defined benefit plans.

In defined contribution plans, retirement benefits are determined by the value of funds provided by contributions paid by the associates and/or the Group and the subsequent performance of investments made with these funds. For defined benefit plans, retirement benefits are based on the associates’ pensionable salary and length of service or on guaranteed returns on contributions made.

Delhaize Group has defined benefit plans at Delhaize Belgium and Hannaford, supplemental executive retirements plans covering certain executives of Food Lion, Hannaford and Kash n’ Karry, and a post-employment benefit at Alfa-Beta. In total, approximately 20% of Delhaize Group’s associates was covered by defined benefit plans at the end of 2007.

When the assets of a defined benefit plan fall short of the obligations, the Group bears an underfunding risk. At the end of 2007, the underfunding of Delhaize Group’s defined benefit plans amounted to EUR 61.1 million and was recognized as a liability in the balance sheet.

More details on pension plans at Delhaize Group and its subsidiaries can be found in Note 24 to the Financial Statements, “Benefit Plans”, p. 89.

This excerpt taken from the DEG 6-K filed May 7, 2007.

PENSION PLAN RISK

Most operating companies of Delhaize Group have pension plans, the structures and benefits of which vary with conditions and practices in the countries concerned. Pension benefits may be provided through defined contribution plans or defined benefit plans.

In defined contribution plans, retirement benefits are determined by the value of funds provided by contributions paid by the associates and/or the Company and the subsequent performance of investments made with these funds. For defined benefit plans, retirement benefits are based on the associates’ pensionable salary and length of service or on guaranteed returns on contributions made.

Delhaize Group has defined benefit plans at Delhaize Belgium and Hannaford, supplemental executive retirements plans covering certain executives of Food Lion, Hannaford and Kash n’ Karry, and a post-employment benefit at Alfa-Beta. In total, approximately 15% of Delhaize Group’s associates were covered by defined benefit plans at the end of 2006.

When the assets of a defined benefit plan falls short of the obligations, the Company bears an underfunding risk. At the end of 2006, the underfunding of Delhaize Group’s defined benefit plans amounted to EUR 74.8 million and was recognized in the balance sheet.

More details on pension plans at Delhaize Group and its subsidiaries can be found in Note 23 to the Financial Statements, “Benefit Plans”, p. 83.

This excerpt taken from the DEG 6-K filed May 19, 2006.

Pension Plan Risk

Most operating companies of Delhaize Group have pension plans, the structures and benefits of which vary with conditions and practices in the countries concerned. Pension benefits may be provided through defined contribution plans or defined benefit plans.

 

9


In defined contribution plans, retirement benefits are determined by the value of funds provided by contributions paid by the associates and/or the Company and the subsequent performance of investments made with these funds. For defined benefit plans, retirement benefits are based on the associates’ pensionable salary and length of service or on guaranteed returns on contributions made.

Delhaize Group has defined benefit plans at Delhaize Belgium and Hannaford and a post-employment benefit at Alfa-Beta. At its other subsidiaries, including its largest operating company, Food Lion, Delhaize Group has no broad-based defined benefit plans.

When the expected return on the assets of a defined benefit plan falls short of the obligations, the Company bears an underfunding risk. At the end of 2005, the underfunding of Delhaize Group’s defined benefit plans amounted to EUR 82.6 million.

More details on pension plans at Delhaize Group and its subsidiaries can be found in Note 24 to the Consolidated Financial Statements, “Benefit Plans”, p. 63 of Delhaize Group’s 2005 Annual Report.

This excerpt taken from the DEG 6-K filed May 2, 2006.

PENSION PLAN RISK

Most operating companies of Delhaize Group have pension plans, the structures and benefits of which vary with conditions and practices in the countries concerned. Pension benefits may be provided through defined contribution plans or defined benefit plans.

In defined contribution plans, retirement benefits are determined by the value of funds provided by contributions paid by the associates and/or the Company and the subsequent performance of investments made with these funds. For defined benefit plans, retirement benefits are based on the associates’ pensionable salary and length of service or on guaranteed returns on contributions made.

Delhaize Group has defined benefit plans at Delhaize Belgium and Hannaford and a post-employment benefit at Alfa-Beta. At its other subsidiaries, including its largest subsidiary, Food Lion, Delhaize Group has no broad-based defined benefit plans.

When the expected return on the assets of a defined benefit plan falls short of the obligations, the Company bears an underfunding risk. At the end of 2005, the underfunding of Delhaize Group’s defined benefit plans amounted to EUR 82.6 million.

More details on pension plans at Delhaize Group and its subsidiaries can be found in Note 24 to the Financial Statements, “Benefit Plan Provision”, p. 63.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki