15 Tangible fixed assets
00 Ahold ANNUAL REPORT 2002 141
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
- Buildings and land
Machinery
Under
Stores
Other
Not in use
equipment
Other
construction
Total
Balance as of January 2, 2000
3,064
665
16
1,122
1,540
428
6,835
Investments
887
112
4
470
676
(93)
2,056
Acquired by business acquisitions
553
446
8
156
382
111
1,656
Divestments
(206)
(9)
(10)
(27)
(34)
(4)
(290)
Depreciation
(145)
(50)
(1)
(223)
(488)
(907)
Exchange rate differences
131
13
1
48
54
34
281
Balance as of December 31, 2000
4,284
1,177
18
1,546
2,130
476
9,631
Investments
902
101
624
987
123
2,737
Acquired by business acquisitions
371
487
7
194
123
40
1,222
Divestments
(516)
(291)
(98)
(60)
(12)
(977)
Depreciation
(212)
(45)
(1)
(283)
(596)
(1,137)
Impairment
(3)
(5)
(2)
(10)
Exchange rate differences
216
45
82
97
21
461
Balance as of December 30, 2001
5,042
1,474
19
2,065
2,679
648
11,927
Investments
802
110
21
538
765
85
2,321
Acquired by business acquisitions
235
96
28
(27)
170
13
515
Divestments
(264)
(91)
(7)
(77)
(67)
(38)
(544)
Depreciation
(233)
(72)
(297)
(684)
(1,286)
Impairment
(49)
(5)
(31)
(44)
(8)
(137)
Exchange rate differences
(808)
(207)
(4)
(255)
(376)
(103)
(1,753)
Balance as of December 29, 2002
4,725
1,310
52
1,916
2,443
597
11,034
At cost
5,893
1,652
62
3,180
5,508
597
16,892
Accumulated depreciation
(1,168)
(342)
(10)
(1,264)
(3,065)
(5,849)
Book value
4,725
1,310
52
1,916
2,443
597
11,043
Because the Company had indications of potential impairment issues, most notably the deterioration in market conditions
due to a general slow-down in the economic environment and increased competition in certain geographic locations, in
fiscal 2002, the Company evaluated the recoverability of its tangible fixed assets in its locations. The Company was
required to reduce the carrying value of the assets to fair value and recognize an asset impairment charge in fiscal 2002
because the carrying value of the affected assets exceeded the projected future discounted cash flows related to them.
Fair value of the impaired assets was calculated using discounted future net cash flows expected to result from the use of
each asset and its eventual disposition. Asset impairment charges of EUR 137 were recorded within impairment of other
long-lived assets in the consolidated statements of operations for fiscal 2002, and were comprised of impairments of EUR
49 related to stores, EUR 31 related to machinery and equipment, and EUR 57 related to other tangible fixed assets. Of
the impairment amount for fiscal 2002, EUR 76 is attributable to Ahold's retail trade and real estate activities in Europe,
EUR 36 related to Ahold's retail trade and real estate activities in the U.S., and EUR 19 and EUR 6 related to Ahold's
retail trade activities in Latin America and Asia Pacific, respectively.
Other tangible fixed assets mainly consist of fixtures and equipment at retail locations. Assets under construction mainly
consist of stores and are stated at cost.
