Notes 9, 10, 11
-
-
-
-
The current liabilities are liabilities that mature within
one year. Other current liabilities as at December 31, 2006
includes the remaining one third of the settlement amount in
the Securities Class Action (EUR 277), which was funded
into escrow on January 29, 2007. For more information, see
Note 34 to the consolidated financial statements.
The Company regularly enters into derivative contracts with
banks to hedge foreign currency and interest exposures of
the Company or its subsidiaries. Derivative contracts that are
entered into to hedge exposures of subsidiaries are generally
mirrored with intercompany derivative contracts with the
subsidiaries that are exposed to the hedged risks on
substantially identical terms as the external derivative
contracts. In these parent company financial statements
the external derivative contracts and the intercompany
derivative contracts are presented separately in the balance
sheet. In situations where the external derivative contract
qualifies for hedge accounting treatment in the consolidated
financial statements, the external derivative contract and the
intercompany derivative contract are presented as
"Hedging derivatives external" and "Hedging derivatives
intercompany", respectively, in these parent company
financial statements. In situations where the external
derivative contract does not qualify for hedge accounting
treatment in the consolidated financial statements, the
external derivative contract and the intercompany derivative
contract are presented as "Other derivatives external" and
"Other derivatives intercompany", respectively.
Fair value movements of external derivative contracts that
were entered into to hedge the exposures of subsidiaries are
in the statement of operations recorded directly in income,
where they effectively offset the fair value movements of the
mirroring intercompany derivatives, that are also recorded
directly in income. The Company has one cash flow hedge
to hedge the interest rate and currency exposure on the
JPY 33,000 notes. In relation to the cash flow hedge on the
JPY 33,000 notes the Company recorded a fair value gain of
EUR 14 in the cash flow hedge reserve in 2006 (2005:
EUR 51 loss) and recognized a loss of EUR 43 (2005:
EUR 18) in the statements of operations from the cash flow
hedge reserve release. Details of these derivative contracts
and the Company's risk management strategies are included
in Note 33 to the consolidated financial statements and in
the tables presented below.
9 Other non-current liabilities
December 31,
January 1,
2006
2006
Deferred tax liability
4
Financial Guarantees
1
2
Hedging derivatives intercompany
156
140
Hedging derivatives external
169
175
Other derivatives intercompany
137
97
Other derivatives external
9
Total other non-current liabilities
476
414
10 Current liabilities
Current portion of bonds loans
316
Short-term borrowings from subsidiaries
21
25
Payables to subsidiaries
25
21
Payables to joint ventures and associates
10
Taxes payable
4
4
Interest
43
44
Dividend cumulative preferred financing shares
42
44
Hedging derivatives external
8
31
Other current liabilities
315
66
Total current liabilities
774
245
11 Derivatives
December 31, January 1,
2006 2006
Ahold Annual Report 2006 133
