Notes 10, 11
(42)
(54)
-
-
-
(36)
Financial statements - Notes to the consolidated financial statements
10 Financial expense 11 Income taxes
2006
2005
2004
Interest expense
(559)
(677)
(762)
Gains (losses) on foreign exchange
24
35
(15)
Fair value gains (losses) on
financial instruments
(38)
64
Other financial income (expense)
(7)
379
Financial expense
(580)
(738)
(334)
Foreign exchange results on financing transactions and on
financial assets and liabilities are presented as part of net
financial expense. Foreign exchange results arising from the
purchase of goods for sale or goods and services consumed
in Ahold's operations are included in cost of sales or in the
appropriate element of operating expenses, respectively.
In 2006, the Company included net exchange losses of
EUR 3 in operating expenses (2005: loss of EUR 5,
2004: gain of EUR 3).
Other financial income (expense) in 2005 primarily includes
a one-time loss of EUR 53 incurred on the buyback of
EUR 1 billion equivalent in principal amount of certain of the
notes issued by the Company. Other financial income
(expense) in 2004 of EUR 379 resulted from the fair value
remeasurement of the ICA put option, the settlement of the
Canica part of the ICA put option and the waiver of the HIAB
part of the ICA put option, as well as the related divestment
result on the sale of the 10 percent stake in ICA to HIAB.
For more information, see Note 4.
For information on fair value gains (losses) on financial
instruments, see Note 33.
Income taxes continuing operations
The following table specifies the current and deferred tax
components of income taxes on continuing operations:
2006
2005
2004
Current income taxes
Domestic taxes
(220)
197
(76)
Foreign taxes
United States
210
64
68
Europe - Other
7
(5)
South America
(5)
Total current tax benefit (expense)
(10)
268
(18)
Deferred income taxes
Domestic taxes
(49)
(25)
(18)
Foreign taxes
United States
(22)
(110)
Europe - Other
4
(7)
6
Total deferred tax benefit (expense)
(81)
(54)
(122)
Total income taxes continuing operations (91)
214
(140)
Income taxes discontinued operations
Income taxes related to discontinued operations amounted
to EUR 48, EUR 18 and EUR (27) for 2006, 2005 and 2004,
respectively and have been applied against income from
discontinued operations. For further information, see
Note 12.
80 Ahold Annual Report 2006
