Note 33
Financial statements - Notes to the consolidated financial statements
The notional amounts of the derivative financial instruments outstanding as of December 31, 2006 are summarized below.
The summary is based on the currency of the exposures being hedged and includes the gross amount of all notional values
for outstanding contracts (with all amounts expressed in the respective currencies). The amount of notional value outstanding
is not necessarily a measure or indication of market risk, as the exposure of certain contracts may be offset by that of
other contracts.
USD GBP JPY CHF EUR CZK
Interest rate swaps
up to one year
from one year to five years
from five years to 10 years
greater than 10 years
250
25
635
60
Cross-currency interest rate swaps
from five years to 10 years
greater than 10 years
250 33,000
407
Foreign currency forwards and swaps
up to one year
from one year to five years
1 48 46
- 78 -
Foreign currency options
from one year to five years
18
Total notional amounts derivative financial instruments
1 500 33,000
1 1,271 46
Some of Ahold's derivative contracts contain additional
termination events, the occurrence of which allows the
relevant derivative to be terminated early. If such a right of
early termination is triggered, it could under certain
circumstances result in cross acceleration and cross default
under the terms of other derivatives instruments and might
affect certain debt agreements.
In 2006 a loss of EUR 38 (2005 and 2004: loss of EUR 44
and gain of EUR 64, respectively) is included in the
statement of operations under fair value gains (losses) on
financial instruments in relation to fair value changes of
derivatives that do not qualify for hedge accounting
treatment or in relation to ineffective portions of qualifying
hedging instruments. The amounts recognized in cash flow
hedging reserve in equity and amounts released from cash
flow hedging reserve to the statements of operations are
presented in the consolidated statements of recognized
income and expense.
Gains and losses recognized in cash flow hedging reserve
in equity as of December 31, 2006 will be released to the
statement of operations at various dates over a period of
24 years from the balance sheet date. The estimated net
amount of the existing losses deferred in cash flow hedging
reserve as of December 31, 2006 that is expected to be
recognized in the statement of operations in 2007 is
EUR 18. Total changes in the fair value that were recognized
in the statements of operations using a valuation technique
amounted to a loss of EUR 38 in 2006.
110 Ahold Annual Report 2006
