Stop & Shop Reaches Agreement with Local Union 1500 on Pension Fund Investment and Withdrawal; No Impact to Previously Issued...
18 Décembre 2020 - 10:05PM
Zaandam, the Netherlands, December 18, 2020 –
Ahold Delhaize announces today that its U.S. brand Stop &
Shop, reached an agreement to terminate its
participation in the United Food & Commercial
Workers (UFCW) – Local 1500
Pension Fund (the “1500 Plan”), through a
transaction that
the 1500 Plan’s trustees determined to be in
the best interests of
the 1500 Plan’s participants and
beneficiaries. The agreement
improves the security of pension benefits
for associates as well as reduces financial risk
for the company. This transaction will not
impact the previously issued outlook for
2020. This statement should not be interpreted as an
update to any component of the previously
issued 2020 outlook, announced in the Q3 2020 earnings
release.
Stop & Shop will pay
the 1500 Plan withdrawal liability of
$225 million (~€184 million), on a pre-tax
basis, to fulfill Stop & Shop’s obligations for past
service for associates and retirees in the 1500 Plan. In
addition, Stop & Shop expects to pay $4.1
million (~€3.4 million) to the defined contribution plan
to provide transition benefits to certain plan participants who are
near retirement. Stop & Shop will
provide associates who are members of the UFCW Local
1500 future service retirement
benefits through an existing defined
contribution plan. Ongoing contributions to
this defined contribution plan will
have no significant impact to group financial
results, as they will replace contributions
that have been in place for the previous
plan.
On an after-tax basis, the withdrawal liability and contribution
to the transition reserve total
approximately $173 million
(~€141 million). The withdrawal liability
will be satisfied by installment payments to
the 1500 Plan over the next three years. Ahold
Delhaize will therefore recognize
a liability in these amounts, which will impact
Q4 IFRS results. The liability will be excluded
from underlying results and will therefore not impact the
previously issued underlying operating results outlook for
2020. In
2020, $112.5 million (~€92 million) is
expected to be paid, which is 50% of
the settlement obligation. The Group’s full
year 2020 free cash flow outlook, which is expected
to be at least €1.7 billion, will not be
impacted due to the strong level of free cash
flow already generated in the year-to-date through
Q3.
Cautionary notice
This communication includes forward-looking statements. All
statements other than statements of historical facts may be
forward-looking statements. Words and expressions such as impact,
outlook, to be, interests, improves, reduces, risk, update,
expects, plan, near, will, future, ongoing, the next three years,
expected to, through or other similar words or expressions are
typically used to identify forward-looking statements.
Forward-looking statements are subject to risks, uncertainties
and other factors that are difficult to predict and that may cause
actual results of Koninklijke Ahold Delhaize N.V. (the
“Company”) to differ materially from future results expressed or
implied by such forward-looking statements. Such factors include,
but are not limited to, the risk factors set forth in the Company’s
public filings and other disclosures. Forward-looking statements
reflect the current views of the Company’s management and
assumptions based on information currently available to the
Company’s management. Forward-looking statements speak only as of
the date they are made and the Company does not assume
any obligation to update such statements, except as required by
law.
Koninklijke Ahold Delhai... (EU:AD)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Koninklijke Ahold Delhai... (EU:AD)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024