Note 19, 20
19 OTHER FINANCIAL ASSETS
20 INVENTORIES
An amount of EUR 125 has been recognized as write-offs of inventories in the consolidated statement of operations
(2004: EUR 174).
January 1,
January 2,
2006
2005
Derivative financial instruments
286
498
Loans receivable
77
102
Pension assets
12
7
Other
54
52
Total other financial assets
429
659
Loans receivable include EUR 10 with a maturity greater than five years. Current portion of loans receivable of EUR 25 is
included in other receivables (January 2, 2005: EUR 37). The weighted average interest rate on loans receivable was 4.14%
(January 2, 2005: 3.89%).
Loans receivable include loans to joint ventures and associates of EUR 3 (January 2, 2005: EUR 31). Included also in loans
receivable is EUR 28 (January 2, 2005: EUR 35) of loans due from the officers, managers and other employees of the
Company that were granted to assist them with investments in the Albert Heijn Vaste Klanten Fonds ("Dutch Customer Fund"
or "AHVKF"), an independent investment fund. These floating-rate loans, bearing interest based on the European Central Bank
interest rate are due in 2006 (EUR 5, included in other receivables) and in 2008 (EUR 28) or upon an individual's termination
of employment, if earlier, and are collateralized by each individual's corresponding investment in the Dutch Customer Fund.
The interest rate for these floating-rate loans as of January 1, 2006 was 1.25% (January 2, 2005: 2.25%). For more
disclosure about the AHVKF, see Note 33.
An impairment loss on loans receivable of EUR 2 was recognized in the Albert Heijn Arena in 2005. An impairment loss
recognized in 2004 of EUR 46 related mainly to the impairment of a loan to W&H, a joint venture sold during 2005.
For more information on derivative financial instruments and fair values, see Note 34.
January 1,
2006
January 2,
2005
Finished products and merchandise inventories
2,418
2,225
Raw materials, packaging materials, technical supplies and other
32
30
2,450
2,255
Provision for write-offs
(74)
(71)
Total inventories
2,376
2,184
AHOLD ANNUAL REPORT 2005 139
