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Breakdown by currency and type of interest
Long-term loans broken down by currency and type of interest:
Fixed
interest
Floating
interest
Total
1999
Total
1998
Dollar
Euro
Real
USD 2,788,149
EUR 1,250,359
BRL
USD
EUR
BRL
313,005
220,922
196,157
EUR
EUR
EUR
3,078,075
1,471,281
107,836
EUR 2,280,541
EUR 1,540,457
EUR 102,402
EUR 4,017,759
EUR
639,433
EUR
4,657,192
The breakdown of loans between fixed and floating
interest on January 3, 1999
EUR 3,418,508
EUR
504,892
EUR 3,923,400
All loans reported as Euro loans are loans nominated in a currency linked to the Euro.
Financial instruments
A substantial portion of the assets, liabilities and results are denominated in foreign currencies, primarily the U.S. Dollar. The translation
exposure of balance sheet items denominated in foreign currencies is not hedged.
The company uses financial instruments to manage risks from changes in interest rates, price changes in product purchase commitments
and from changes in exchange rates for specific transactions denominated in foreign currencies. Valuation changes from hedging
instruments are deferred and recognized when the hedged transaction occurs.
The carrying amount and fair value of financial instruments are as follows:
1999
Carrying
amount
1999
Fair
value
1998
Carrying
amount
1998
Fair
value
Assets
Financial fixed assets
Investment in unconsolidated subsidiaries
and affiliates
132,035
P.M.
123,229
P.M.
Liabilities
Borrowings
3,856,593
3,686,766
3,312,531
3,544,078
Derivatives
Swaps
9,675
9,487
The fair value of investment in unconsolidated subsidiaries and affiliates has not been determined. The fair value of 'Borrowings' is based
on the discounted cash flow or quoted market prices, if available. The fair value of 'Swaps' has been based on estimates provided by finan
cial institutions. These swap contracts will expire between 2000 and 2004.
Provisions
The movements in provisions in 1999 were:
Other provisions
Beginning
of fiscal year
Acquisitions Deconsolidations
Other
additions
Exchange rate
Deductions differences
End of
fiscal year
Pensions
121,149
29,449
41,046
(43,556)
20,885
168,973
Early retirement commitments
47,534
18,139
(16,530)
49,143
Other provisions
for personnel costs
91,390
5,901
(332)
22,369
(30,843)
2,248
90,733
Restructuring
200,442
(33,153)
(3,429)
23,138
(47,511)
20,796
160,283
Loss reserve
214,971
110,586
(100,346)
32,187
257,398
Equalization provisions
82,858
1,408
(794)
17,975
(10,404)
6,177
97,220
Miscellaneous
147,103
9,016
35,847
(73,451)
16,228
134,743
Euro and millennium
54,043
(28,742)
25,301
959,490
12,621
(4,555)
269,100
(351,383)
98,521
983,794
The other provisions, up to approximately EUR 175 million, are related to liabilities which mature within one year.
Royal Ahold Annual Report 1999
