Financial statements - Notes to the consolidated financial statements
Note 23
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Changes in legal reserves are summarized as follows:
Currency I Cash flow I I
translation I hedging I Other legal I Total legal
reserve I reserve I reserves I reserves
Balance as of December 28, 2003 - (58) 536 478
Exchange rate differences in foreign interests (313) - - (313)
Recognition of cumulative translation difference related to divestments 1 - - 1
Cash flow hedges:
Fair value gains in year - 165 - 165
Transfers to net income - (130) - (130)
Income taxes - (8) - (8)
Release to accumulated deficit - - (194) (194)
Balance as of January 2, 2005 (312) (31) 342 (1)
Exchange rate differences in foreign interests 610 - - 610
Recognition of cumulative translation difference related to divestments 24 - - 24
Cash flow hedges:
Fair value losses in year - (371) - (371)
Transfers to net income - 323 - 323
Income taxes - 14 - 14
Release to accumulated deficit - - (3) (3)
Balance as of January 1, 2006 322 (65) 339 596
Ahold is a company incorporated under Dutch law. In accordance with the Netherlands Civil Code, legal reserves have to be
established in certain circumstances. The currency translation reserve and cash flow hedging reserve are both legal reserves.
The other legal reserves primarily consist of the cumulative share in income of joint ventures and associates less dividends
received from these joint ventures and associates with any direct equity movements of joint ventures and associates added or
deducted. Legal reserves are not available for distribution to the Company's shareholders. If the currency translation reserve or
the cash flow hedging reserve has a negative balance, distributions to the Company's shareholders are restricted to the extent
of the negative balance.
Changes in accumulated deficit are summarized as follows:
Net income
attributable
Total
Accumulated
to common
accumulated
deficit
shareholders
deficit
Balance as of December 28, 2003
(10,998)
(10,998)
Net income
885
885
Recognition of share-based payments
18
18
Release from legal reserve
194
194
Other
(15)
(15)
Balance as of January 2, 2005
(10,801)
885
(9,916)
Net income
885
(752)
133
Recognition of share-based payments
24
24
Release from legal reserve
3
3
Balance as of January 1, 2006
(9,889)
133
(9,756)
142
