7% Subordinated loan
Redemption of the principal is subordinated to the claims of all other existing and future creditors.
Repayment in 5 annual installments of Dfl 10 million. First installment due December 15, 1994.
Bond
The Dfl 20 million installment due at January 1, 1990, has been deposited with the paying agent as oi the
balance sheet date.
'Other loans' include:
$65 Million multicurrency loan agreement
At balance sheet date this facility had not been drawn on (1988: $40 million). This 3-year facility expires
on April 11, 1991.
$150 Million multicurrency syndicated revolving credit facility
At balance sheet date $25million had been drawn down on this facility. This 5-year facility expires on
February 3, 1993.
As from March 2, 1990, this facility has been expanded to $300 million, and the term of the entire loan
has been set at five years, ending on March 2, 1995.
Capitalized lease commitments
Commitments at the end of both fiscal years
The current portion of the repayment commitments
has been included in current liabilities
Commitments maturing after more than 1 year
1989
393,104
23,656
1988
372,735
21,547
369,448 351,188
Commitments after 5 years
Provision for deferred income taxes
308,277 282,236
1989 1988
55,174 75,508
Other provisions
Pensions
Early-retirement fund
Restructuring
Commitments and contingencies
1989
56,508
11,764
24,366
131,781
1988
46,206
10,906
22,999
128,287
224,419 208,398
The provision for pensions - based on actuarial calculations - reflects commitments for pensions not
placed with other funds as well as provisions for future increases in benefits and for possible inflation.
The amount of 'Early-retirement fund' refers to the provision for early-retirement rights which are not yet
The provision 'Restructuring' has been made in connection with planned restructuring within the retail
trade and production companies and the distribution centers.
The provision for commitments and contingencies mainly serves to equalize repair and upkeep in stores,
and is calculated according to a dynamic system. These provisions also include estimated amounts for
upgrading or termination of certain activities, as well as an amount for general operating contingencies.
Generally speaking, the provisions tend to be long-term.
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