Note 29, 30
29 OTHER NON-CURRENT LIABILITIES
30 SHORT-TERM BORROWINGS
preferred financing shares has been capped at 120 million. The conversion features are similar for all tranches. Conversion
is allowed for all shares in one tranche held by one investor but not for fractions of tranches held by one investor. Upon
conversion the holders of Depositary receipts will receive a number of common shares that is calculated by dividing the value
of the cumulative preferred financing shares on the day before the conversion date by the average share price of Ahold common
shares on the five days preceding that date. The value of the cumulative preferred financing shares will for this purpose be
considered to equal the lower of the nominal value plus the additional paid-in capital of the cumulative preferred financing
shares (the "Par Value") or the present value of the remaining preferred dividends until the first Reset date plus the present
value of the Par Value at the first Reset date. The Company can redeem the cumulative preferred financing shares of a certain
tranche, but not fractions of a tranche. Redemption of a tranche is subject to the approval of the holders of Depositary receipts
of that tranche, unless all (remaining) cumulative preferred financing shares are redeemed. Redemption takes place at the
higher of the Par Value or the present value of the cumulative preferred financing shares at the time of redemption.
January 1,
January 2,
2006
2005
Derivative instruments
175
139
Step rent accruals
93
50
Deferred gains
69
86
Other
43
35
Total other non-current liabilities
380
310
Step rent accruals relate to the equalization of rent payments relating to contracts with scheduled rent increases throughout
the life of the lease contract. Deferred gains predominantly represent the non-current portions of deferred gains on sale and
leaseback transactions. For additional details on derivative instruments, see Note 34.
January 1,
January 2,
2006
2005
Loans payable to financial institutions
41
68
Personnel and customer savings
29
26
Other loans
527
518
Total short-term borrowings
597
612
Other loans is principally comprised of short-term loans payable related to U.S. Foodservice's accounts receivable securitization
program. For additional disclosure about this program, see Note 21.
AHOLD ANNUAL REPORT 2005 157
