Notes: 14
14 Tangible fixed assets
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134
Ahold Annual Report 2003
Financial Statements
Buildings and land
Stores
Other
Not in use
Machinery
equipment
Other
Under
construction
Total
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 in 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 in 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
11,043
Investments
669
52
25
483
268
26
1,523
Business acquisitions (divestments)
(157)
(37)
(19)
(45)
(66)
(3)
(327)
Divestments
(300)
(25)
(13)
(63)
(29)
(20)
(450)
Depreciation
(207)
(45)
(282)
(592)
(1,126)
Impairment
(36)
(4)
(3)
(34)
(34)
(2)
(113)
Exchange rate differences
(595)
(131)
(4)
(225)
(240)
(72)
(1,267)
Balance as of December 28, 2003
4,099
1,120
38
1,750
1,750
526
9,283
At cost
5,331
1,450
55
3,122
4,850
526
15,334
Accumulated amortization
(1,232)
(330)
(17)
(1,372)
(3,100)
(6,051)
Book value
4,099
1,120
38
1,750
1,750
526
9,283
In 2003, the Company was required to reduce the carrying value of assets to fair value and recognize asset
impairment charge of EUR 113 since the carrying value of the affected assets exceeded their projected future
discounted cash flows. In the US, the Company recorded impairment charges amounting to EUR 45 mainly related
to Tops, Giant-Landover and Giant-Carlisle, as market conditions deteriorated due to the economic environment and
increased competition. In Europe, an impairment charge was recorded of EUR 38, of which EUR 20 is attributable
to Spain where EUR 9 related to the deterioration in market conditions due to the general slow-down in the economic
environment and EUR 11 was related to store closings. Schuitema recorded an impairment charge of EUR 12
because of remodeling of three stores. Ahold Real Estate Europe recorded an impairment charge of EUR 5, which
related to a decrease in value as a result of less than expected rent income. In South America charges amounted
to EUR 19 of which EUR 14 is related to the Company's operations in Argentina which suffered from the continuing
economic difficulties and uncertainty about its future. At USF an impairment charge of EUR 4 was recorded. Ahold
Real Estate Company recorded EUR 2 in impairment charges. In Asia Pacific impairment charges amounted to EUR 1.
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.
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.
The tangible fixed assets include capitalized interest of EUR 9, EUR 13 and EUR 12 for 2003, 2002
and 2001, respectively.
