Note 14
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(37)
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Financial statements - Notes to the consolidated financial statements
14 Property, plant and equipment
Buildings and land
Stores
Machinery and
Other Not in use equipment
Other
Under
construction
Total
As of January 2, 2005
At cost
5,325
1,564
22
3,455
511
247
11,124
Accumulated depreciation and impairment losses
(1,523)
(459)
(9)
(2,274)
(402)
(5)
(4,672)
Carrying amount
3,802
1,105
13
1,181
109
242
6,452
Year ended January 1, 2006
Additions
562
60
349
110
130
1,211
Acquisitions through business combinations
16
7
23
Depreciation
(285)
(67)
(376)
(53)
(5)
(786)
Impairment losses
(21)
(18)
(60)
(99)
Assets classified as held for sale or sold
(102)
(38)
(2)
(4)
(10)
(156)
Other movements
(58)
75
(4)
54
2
(25)
44
Exchange rate differences
432
110
122
13
37
714
Closing carrying amount
4,346
1,227
9
1,275
177
369
7,403
As of January 1, 2006
At cost
6,208
1,814
11
4,049
636
372
13,090
Accumulated depreciation and impairment losses
(1,862)
(587)
(2)
(2,774)
(459)
(3)
(5,687)
Carrying amount
4,346
1,227
9
1,275
177
369
7,403
Year ended December 31, 2006
Additions
693
101
439
45
(11)
1,267
Acquisitions through business combinations
8
3
2
13
Depreciation
(305)
(74)
(357)
(56)
(1)
(793)
Impairment losses
(24)
(2)
(63)
Impairment reversals
7
7
Assets classified as held for sale or sold
(144)
(75)
(52)
(7)
(10)
(288)
Other movements
(77)
26
(9)
28
3
(32)
(61)
Exchange rate differences
(344)
(84)
(94)
(11)
(27)
(560)
Closing carrying amount
4,147
1,121
1,218
151
288
6,925
As of December 31, 2006
At cost
6,023
1,555
3,866
568
294
12,306
Accumulated depreciation and impairment losses
(1,876)
(434)
(2,648)
(417)
(6)
(5,381)
Carrying amount
4,147
1,121
1,218
151
288
6,925
Buildings and land include improvements to these assets.
"Other" buildings and land mainly includes distribution
centers. "Other" property, plant and equipment mainly
consists of trucks, trailers and other vehicles as well as office
furniture and fixtures. Assets under construction mainly
consists of stores.
In 2006, Ahold recognized impairment losses of EUR 63
relating to property, plant and equipment. The carrying value
of the affected assets exceeded the higher of the present
value of their estimated future cash flows and fair value less
costs to sell. The present value of estimated future cash
flows has been calculated using discount rates ranging
between 8.3 percent - 12.2 percent.
The Central Europe Arena recorded impairment losses
amounting to EUR 37. An impairment loss of EUR 19 was
recognized as a result of the announcement in the fourth
quarter of 2006 to divest the operations in Slovakia,
EUR 17 was recognized in the Czech Republic on several
hypermarkets and EUR 1 was recognized in Poland.
Other impairment losses related to the Stop Shop/Giant-
Landover Arena (EUR 7), the Giant-Carlisle/Tops Arena
(EUR 9), the Albert Heijn Arena (EUR 8) and Schuitema
(EUR 2). The impairment reversals were recognized in the
Giant-Carlisle/Tops Arena (EUR 4) and the Stop Shop/
Giant-Landover Arena (EUR 3).
Assets classified as held for sale or sold during 2006 mainly
relate to the planned sale of operations in Poland, that was
announced in the fourth quarter of 2006, the divestment of
the Northeast Ohio operations in the Giant-Carlisle/Tops
Arena, and the divestment of two distribution facilities in the
Stop Shop/Giant-Landover Arena.
86 Ahold Annual Report 2006
