Note 25
Financial statements - Notes to the consolidated financial statements
25 PROVISIONS
-
-
-
-
Claims and legal disputes
Self-insurance program
Loyalty programs
The table below specifies the changes in total provisions (current and non-current):
Claims I Self I I I I I
and legal I insurance I Loyalty I Restruc- I Onerous I I
disputes I program I programs I turing I contracts I Other I Total
Current portion
14
150
16
12
12
18
222
Non-current portion
47
282
47
26
40
34
476
Carrying amount as of January 2, 2005
61
432
63
38
52
52
698
Additions charged to income
934
343
23
44
18
28
1,390
Used during the year
(11)
(300)
(20)
(23)
(22)
(23)
(399)
Released to income
(41)
(9)
(8)
(5)
(2)
(65)
Interest accretion
9
13
3
2
3
2
32
Exchange rate differences
29
66
4
6
5
110
Carrying amount as of January 1, 2006
981
554
60
57
52
62
1,766
Current portion 969 190 14 34 14 9 1,230
Non-current portion 12 364 46 23 38 53 536
Maturities of total provisions as of January 1, 2006 are as follows:
Claims
and legal
disputes
Self
insurance
program
Loyalty
programs
Restruc
turing
Onerous
contracts
Other
Total
Amount due within 1 year
969
190
14
34
14
9
1,230
Amount due between 2 and
5 years
12
291
46
13
22
10
394
Amount due after 5 years
73
10
16
43
142
Total
981
554
60
57
52
62
1,766
The additions to the 2005 provision include EUR 895 relating to the settlement of the securities class action entitled "In re
Royal Ahold N.V. Securities ERISA Litigation," which is pending before the U.S. District Court for the District of Maryland.
For more information, see Note 35. A receivable of EUR 92 was recognized in 2005 (included in "other receivables" at
January 1, 2006) for the insurance proceeds in relation to the settlement of the securities class action.
The release to income in 2005 mainly relates to various claims with respect to a dispute regarding the appropriate conversion
into Argentine Pesos of an amount previously payable to a third party in U.S. dollars pursuant to Argentine law, following a
favorable judgment by the Court of First Instance in the Netherlands Antilles. For more information, see Note 35.
Ahold is self-insured for certain potential losses, mainly relating to general liability, commercial vehicle liability and workers'
compensation relating to its U.S. subsidiaries. Maximum self-insurance retention per occurrence, including defense costs, is
USD 2 (EUR 2) for general liability, USD 5 (EUR 4) for commercial vehicle liability and USD 5 (EUR 4) for workers'
compensation.
This provision relates to a customer loyalty program in the Netherlands, which reflects the estimated cost of benefits that
customers are entitled to when they participate in the loyalty program.
150
