25 Financial lease commitments
00 Ahold ANNUAL REPORT 2002 157
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
dual tranche revolving credit facility bearing an interest rate of LIBOR (or EURIBOR for EUR denominated borrowings)
plus an applicable margin. The applicable margin was determined by (i) Ahold's most recent credit rating, as published by
Moody's Investor Service or Standard Poor's, and (ii) which tranche of the facility, A or B, was utilized. Tranche A, which
permitted borrowings of up to USD 500, offered a maximum loan term of one year, and a margin ranging from 0.30% to
0.425%, and Tranche B, which permitted borrowings of up to USD 1.5 billion, offered a maximum loan term of five years,
and a margin ranging from 0.35% to 0.50%. In addition, the 2002 Credit Facility provided for up to USD 150 in letters
of credit. The 2002 Credit Facility had, at fiscal year-end 2002, an applicable borrowing rate of LIBOR plus 0.35% for
the outstanding drawings on Tranche A, and LIBOR plus 0.40% for the outstanding drawings on Tranche B. The
outstanding borrowings on December 29, 2002, on the 2002 Credit Facility were USD 80 in loans and an additional USD
150 in letters of credit, which were used primarily to support Ahold's self-insurance obligations. At December 29, 2002
and December 30, 2001, the weighted average interest rate on outstanding borrowings under the 2000 Credit Facility was
7.65% and 7.9%, respectively.
As of fiscal year end 2002, Ahold Finance USA Inc., a wholly owned subsidiary of Ahold, had access to USD 200 from
three different banks for overnight borrowings. At December 29, 2002 and December 30, 2001, there were zero
borrowings under these facilities, and letters of credit were issued to facility capacities.
The 2003 new credit facility is described in the subsequent events paragraph, as included in the additional information.
Financial lease commitments are principally for buildings and are generally held by Ahold's USA subsidiaries. Terms range
from ten to twenty-five years and contain renewal options. Components of assets held under capital leases are as follows:
December 29, 2002 December 30, 2001
Land and buildings
Machinery and equipment
2,617 2,763
114 100
Accumulated depreciation
2,731 2,863
(782) (802)
1,949 2,061
At the time of entering into financial lease agreements, the commitments are recorded at their present value using the
interest rate applicable for long-term borrowings. At December 29, 2002, existing financial lease commitments are
recorded at present value at an average interest rate of 9.6% (fiscal year end 2001: 9.6%).
December 29, 2002 December 30, 2001
Commitments
Current portion
2,323 2,476
(99) (99)
Long-term portion of financial lease commitments
2,224 2,377
Commitments payable after 5 years
1,840 1,972
