-
-
-
The aggregate amount of outstanding balances under the
accounts receivable securitization program was nil and
USD 620 million (EUR 524 million), as of December 31,
2006 and January 1, 2006, respectively. The costs
associated with the sale of interests in the receivables
ranged between 4.35 percent and 4.95 percent during
2006, plus fees and expenses. Ahold received proceeds
from the collection under the accounts receivable
securitization program of USD 19,262 million
(EUR 14,593 million) and USD 18,005 million
(EUR 14,496 million) in 2006 and 2005, respectively.
On a revolving basis, the proceeds received from the Master
Trust are used to redeem the short-term borrowings that
have been recognized by the Receivables Company.
Included in cash and cash equivalents in the balance sheets
as of December 31, 2006 and January 1, 2006 are
unredeemed proceeds of USD 131 million (EUR 99 million)
and USD 122 million (EUR 103 million), respectively. Losses
in the form of discounts on the sale of receivables, primarily
representing interest, totaled USD 8 million (EUR 6 million)
and USD 26 million (EUR 21 million) in 2006 and 2005,
respectively, and are included in the consolidated
statements of operations in interest expense.
For a further discussion, see Note 21 to the consolidated
financial statements included in this Annual Report.
Contractual obligations
The Company has various contractual obligations and must
include some of these as liabilities in its consolidated
balance sheets, including loans and short-term borrowings,
finance lease liabilities and pension liabilities. There are
others, including operating lease commitments, capital
investment commitments and purchase obligations, which
the Company does not need to include as liabilities on the
consolidated balance sheets, but which it must disclose.
The following table summarizes the Company's contractual
obligations as of December 31, 2006:
Payments due by period
Less than One-three Three-five
More than
EUR in millions
Total
one year years years
five years
Loans including current portion 1
4,661
483
1,620
684
1,874
Short-term borrowings
56
56
Finance lease liabilities 2
1,277
59
115
114
989
Operating lease commitments 3
6,064
545
989
840
3,690
Capital investment commitments 4
392
305
52
34
1
Purchase commitments 5
1,143
633
266
151
93
Pension liabilities 6
3,739
139
294
312
2,994
Total 7
17,332
2,220
3,336
2,135
9,641
1 These amounts do not include a total of EUR 554 million of issued letters of credit as of December 31, 2006. These amounts also exclude EUR 11 million of deferred financing costs.
For more information on the Company's loans, see Note 26 to the consolidated financial statements included in this Annual Report.
2 Finance lease liabilities are principally for buildings. For more information on finance leases, see Note 27 to the consolidated financial statements included in this Annual Report.
3 Operating lease commitments represent the minimum rents payable, offset by expected sublease income of EUR 1.3 billion. For more information on operating leases, see Note 34
to the consolidated financial statements included in this Annual Report.
4 Capital investment commitments represent investments in land, building, improvements, property, plant and equipment. The Company had capital investment commitments
outstanding as of December 31, 2006 in the amount of EUR 82 million and EUR 310 million related to investments in Europe and the United States, respectively.
5 Purchase commitments include open purchase orders outstanding as of December 31, 2006 for merchandise, both for resale and not-for resale, and other contracts with vendors that
contain minimum purchase requirements. This does not include purchase contracts for which the Company has received advance vendor allowances, which typically may be
terminated without satisfying the purchase commitments upon repayment of the unearned portions of the advance vendor allowances.
6 Pension liabilities represent the projected benefit obligation for the Company's defined benefit plans. In addition to this obligation, the Company also had related plan assets with
a fair value of EUR 3.7 billion as of December 31, 2006. As a result, the Company's unfunded obligation was EUR 66 million as of December 31, 2006. For more information on pensions
and other post-employment benefits, see Note 24 to the consolidated financial statements included in this Annual Report.
7 Amounts presented in this table do not include obligations for interest payments. In addition, the USD 367 million (EUR 310 million) that was funded into escrow on January 29, 2007
with respect to the settlement of the Securities Class Action is not included in this table. As a result of the settlement, the Company recorded a charge in operating income in 2005 of
EUR 803 million, which includes insurance proceeds. Furthermore, this table does not include EUR 497 million of cumulative preferred financing shares, which is further discussed
in Notes 3 and 27 to the consolidated financial statements included in this Annual Report.
Off-balance sheet arrangements
In addition to the obligations recorded on the Company's balance sheet, it has certain commitments and contingencies
that may result in future cash requirements. These include the capital commitments, operating lease commitments,
purchase commitments and the other contractual obligations discussed above. They also include guarantees for franchisees
and for other third-parties and the contingent liabilities discussed below. For additional information about the Company's
commitments and contingencies, see Note 34 to the consolidated financial statements included in this Annual Report.
Guarantees
Guarantees to third parties have been issued by Ahold totaling EUR 1,037 million and EUR 1,090 million as of December 31,
2006 and January 1, 2006, respectively. The decrease in guarantees was mainly attributable to favorable exchange rate
developments. All guarantees are corporate guarantees and have been provided as assurance for an Ahold subsidiary,
franchisee, divested entity or joint venture. For a further discussion on guarantees, see Notes 26, 27 and 34 to the
consolidated financial statements included in this Annual Report.
Ahold Annual Report 2006 51
