21 Loans and credit facilities continued
22 Other non-current financial liabilities
Other
Notes to the consolidated financial statements continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
The Company has a Euro Medium Term Note (EMTN) program that had an aggregate of €1,003 million of outstanding notes as of
January 2, 2011. The notes issued under the program include the remaining outstanding balances of €600 million, GBP 500 million, and
JPY 33,000 million notes, maturing in 2012, 2017, and 2031, respectively. The notes issued under the EMTN program contain customary
restrictive covenants. During 2010, Ahold was in compliance with these covenants.
Credit facilities
Ahold has access to a €1.2 billion unsecured, committed, multi-currency, and syndicated credit facility that may be used for working capital
and for general corporate purposes of the Company and provides for the issuance of letters of credit to an aggregate maximum amount of
$550 million (€411 million). The expiration date of the facility is August 2012.
The facility contains customary covenants. The facility is subject to a financial covenant that requires Ahold not to exceed a maximum
leverage ratio, as defined in the facility agreement, of 4.28:1.
During 2010, Ahold was in compliance with these covenants, and as of January 2, 2011, there were no outstanding borrowings under the
facility other than letters of credit to an aggregate amount of $392 million (€293 million).
Ahold also has access to various uncommitted credit facility lines serving working capital needs that, as of January 2, 2011, totaled €110
million. No amounts were drawn under these credit facility lines as of January 2, 2011.
January 2,
January 3,
million
2011
2010
Finance lease liabilities
1,096
992
Cumulative preferred financing shares
497
497
Derivative financial instruments
69
124
Reinsurance liabilities
63
46
1
1
Total other non-current financial liabilities 1,726 1,660
For more information on derivative financial instruments and fair values, see Note 30.
The Company recognizes reinsurance liabilities on its balance sheet in connection with a pooling arrangement between unrelated
companies. For more information, see Note 15.
Finance lease liabilities
Finance lease liabilities are payable as follows:
January 2, 2011
January 3, 2010
million
Future
minimum
lease
payments
Interest
portion
Present
value of
minimum
lease
payments
Future
minimum
lease
payments
Interest
portion
Present value
of minimum
lease
payments
Within one year
154
95
59
140
89
51
Between one and five years
604
331
273
535
309
226
After five years
1,193
370
823
1,139
373
766
Total
1,951
796
1,155
1,814
771
1,043
Current portion finance lease liabilities
59
51
Non-current portion finance lease liabilities
1,096
992
Finance lease liabilities are principally for buildings. Terms range from 10 to 25 years and include renewal options if it is reasonably certain,
at the inception of the lease, that they will be exercised. At the time of entering into finance lease agreements, the commitments are
recorded at their present value using the interest rate implicit in the lease, if this is practicable to determine; if not, the operating company-
specific interest rate applicable for long-term borrowings is used. As of January 2, 2011, the finance lease liabilities are recorded at their
present value at an average interest rate of 8.7 percent (January 3, 2010: 8.8 percent).
