Notes 33, 34
Sensitivity of fair values to changes in exchange rates and interest rates
The following table shows the sensitivity of the fair values of the financial instruments to a hypothetical change in exchange
rates and interest rates, respectively. The sensitivity analysis on exchange rates assumes an immediate adverse 10 percent
change, which indicates a weakening of the euro against the currency in which the financial instruments are denominated as
of December 31, 2006, with all other variables held constant. The sensitivity analysis on interest rates assumes a negative
parallel shift of 100 basis points in the swap curve on the fair value of the instruments with all other variables (including foreign
exchange rates) held constant. This analysis is for illustrative purposes only, as in practice market rates rarely change in
isolation of other factors that also affect Ahold's financial position and results.
Carrying
amount
Fair value
10% FX
Fair value rates change
Fair value
100 bps
change
Loans receivable and other financial assets
83
83
87
85
Bonds and notes
(3,759)
(3,957)
(4,215)
(4,135)
Other loans
(383)
(388)
(390)
(391)
Financing obligations
(488)
(636)
(702)
(675)
Mortgages payable
(20)
(22)
(24)
(23)
Finance lease liabilities
(1,277)
(1,542)
(1,695)
(1,635)
Cumulative preferred financing shares
(497)
(526)
(526)
(548)
Total financial liabilities (including current portions)
(6,424)
(7,071)
(7,552)
(7,407)
Foreign exchange derivatives
(29)
(29)
(15)
(29)
Interest rate derivatives
25
25
26
58
Cross-currency interest rate swaps
135
135
124
88
Total derivative financial instruments
131
131
135
117
34 Commitments and contingencies
Rent commitments
The annual costs of Ahold's rentals and operating leases including those of discontinued operations were as follows:
2006
2005
2004
Minimum rentals
728
690
911
Contingent rentals
38
31
24
Lease- and sublease income1
(180)
(160)
(239)
Total
586
561
696
1 Includes amounts presented as part of net sales in the consolidated statements of operations.
Certain store leases provide for contingent additional rentals based on a percentage of sales. Substantially all of the store
leases have renewal options for additional terms. None of Ahold's leases impose restrictions on the ability of Ahold to pay
dividends, incur additional debt, or enter into additional leasing arrangements.
The aggregate amounts of Ahold's minimum rental commitments to third parties (corrected for sublease income) as of
December 31, 2006 under non-cancelable operating lease contracts for the next five years and thereafter were as follows:
2007
545
2008
514
2009
475
2010
430
2011
410
Thereafter
3,690
Total
6,064
The total future minimum sublease payments expected to be received under non-cancelable subleases is EUR 1,251.
Ahold Annual Report 2006 111
