Food Lion 2007 Annual Report Download - page 93

The asset portfolio of Delhaize Belgium’s defined benefit pension plan is funded
through a group insurance program. The plan assets, which benefit from a
guaranteed minimum return, are part of the insurance company’s overall investment.
The insurance company’s asset allocation was as follows:
December 31,
2007 2006 2005
Equities 12% 12% 10%
Debt 70% 69% 64%
Real estate 3% 4% 8%
Other assets 15% 15% 18%
In 2008, Delhaize Belgium expects to contribute EUR 6.9 million to the defined
benefit pension plan.
The expected long-term rate of return for Delhaize Belgium’s defined benefit pen-
sion plan is based on the guaranteed return by the insurance company and the
expected insurance dividend.
The investment policy for the Hannaford defined benefit plan is to maintain a
targeted balance of equity securities, debt securities and cash equivalents in its
portfolio. The portfolio is re-balanced periodically through the year.
The plan’s asset allocation was as follows:
December 31,
2007 2006 2005
Equities 78% 73% 72%
Debt 18% 23% 26%
Cash equivalents 4% 4% 2%
The funding policy for the Hannaford defined benefit plan has been generally to
contribute the minimum required contribution and additional deductible amounts
at the sponsor’s discretion. In 2008, Delhaize Group expects to make pension
contributions, including voluntary amounts, of up to USD 6.0 million (EUR 4.3
million).
(in millions of EUR) 2007 2006 2005
United Plans Outside Total United Plans Outside Total United Plans Outside Total
States of the United States of the United States of the United
Plans States Plans States Plans States
History of experience gains and losses:
Related to plan assets 0.3 (0.1) 0.2 (4.4) 0.3 (4.1) 0.6 0.6 1.2
Percentage of plan assets 0.30% -0.14% 0.13% -5.10% 0.44% -2.73% 0.68% 1.01% 0.85%
Related to plan liabilities 0.7 0.1 0.8 (2.7) 1.0 (1.7) 0.5 11.7 12.2
Percentage of plan liabilities 0.63% 0.09% 0.37% -2.48% 0.84% -0.76% 0.45% 10.22% 5.18%
(in millions of EUR) 2007 2006 2005
United Plans Outside Total United Plans Outside Total United Plans Outside Total
States of the United States of the United States of the United
Plans States Plans States Plans States
Balance sheet reconciliation:
Balance sheet liability at January 1 24.1 50.5 74.6 39.5 54.3 93.8 29.5 38.9 68.4
Pension expense recognized in the
income statement in the year 7.3 7.8 15.1 8.5 6.8 15.3 7.5 6.8 14.3
Amounts recognized in the statement of
recognized income and expense in
the year (0.3) (9.4) (9.7) (10.5) (4.1) (14.6) 5.6 15.9 21.5
Employer contributions made in the
year (7.3) (8.6) (15.9) (9.6) (5.7) (15.3) (7.6) (6.5) (14.1)
Benefits paid directly by company
in the year (0.2) (1.4) (1.6) (0.2) (0.8) (1.0) (0.3) (0.8) (1.1)
Currency translation effect (2.5) - (2.5) (3.6) - (3.6) 4.8 - 4.8
Balance sheet liability at December 31 21.1 38.9 60.0 24.1 50.5 74.6 39.5 54.3 93.8
DELHAIZE GROUP / ANNUAL REPORT 2007 91