24 Provisions continued
Other
25 Other non-current liabilities
26 Other current financial liabilities
Notes to the consolidated financial statements continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
Restructuring
In 2010, Ahold recognized restructuring provisions of €27 million, mainly related to Ahold's U.S. operations. The provisions are based on
formal and approved plans using the best information available at the time. The amounts that are ultimately incurred may change as the
plans are executed. The balance of the provision as of January 2, 2011, consisted of €34 million related to rent and closing costs for
Ahold's former Tops stores €16 million and €17 million for restructurings within Ahold's U.S. and Czech operations, respectively.
Onerous contracts
Onerous contract provisions mainly relate to unfavorable lease contracts and include the excess of the unavoidable costs of meeting the
obligations under the contracts over the benefits expected to be received under such contracts. In 2010, Ahold released a part of
provisions that were recognized in 2009, related to the financial obligations under various lease guarantees that Ahold had previously
provided to landlords of its former BI-LO and Bruno's subsidiaries. The release of these provisions amounted to €46 million and was
included within results on divestment, together with related tax offsets. For more information, see Note 34.
Other provisions include asset retirement obligations, provisions for environmental risks, and supplemental and severance payments,
other than those resulting from restructurings.
January 2, January 3,
million 2011 2010
Step rent accruals
168
141
Deferred income
35
47
Other
14
14
Total other non-current liabilities
217
202
Step rent accruals relate to the equalization of rent payments from lease contracts with scheduled fixed rent increases throughout the life
of the contract.
Deferred income predominantly represents the non-current portions of deferred gains on sale and leaseback transactions.
January 2,
January 3,
million
2011
2010
Finance lease liabilities - current portion (see Note 22)
59
51
Interest payable
44
58
Short-term borrowings
39
38
Dividend cumulative preferred financing shares
30
32
Reinsurance liabilities - current portion (see Note 15)
20
13
Loans - current portion (see Note 21)
19
369
Other
5
3
Total other current financial liabilities
216
564
