114
33 Operating leases
Ahold as lessor
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Notes to the consolidated financial statements continued
Investors
Ahold as lessee
Ahold leases a significant number of its stores, as well as distribution centers, offices, and other assets, under operating lease
arrangements. The aggregate amounts of Ahold's minimum lease commitments payable to third parties under non-cancelable operating
lease contracts are as follows:
January 2, January 3,
million 2011 2010
Within one year
655
600
Between one and five years
2,194
2,042
After five years
3,130
3,108
Total
5,979
5,750
Certain store leases provide for contingent additional rentals based on a percentage of sales and consumer price indices. Substantially all
of the store leases have renewal options for additional terms. None of Ahold's leases impose restrictions on Ahold's ability to pay
dividends, incur additional debt, or enter into additional leasing arrangements.
The annual costs of Ahold's operating leases from continuing operations, net of sublease income, are as follows:
million 2010 2009
Minimum rentals
627
610
Contingent rentals
32
49
Sublease income
(107)
(93)
Total
552
566
In addition to the operating lease commitments disclosed above, Ahold has signed lease agreements for properties under development of
which it has not yet taken possession. The total future minimum lease payments for these agreements amount to approximately €251
million (2009: €435 million). These lease contracts are subject to conditions precedent to the rent commencement date.
Ahold rents out its investment properties (mainly retail units in shopping centers containing an Ahold store) and also (partially) subleases
various other properties, which are leased by Ahold under operating leases. The aggregate amounts of the related future minimum lease
and sublease payments receivable under non-cancelable lease contracts are as follows:
January 2, January 3,
million 2011 2010
Within one year
162
179
Between one and five years
393
438
After five years
349
460
Total
904
1,077
The total contingent rental income recognized during the year on all leases where Ahold is the lessor was €4 million (2009: €6 million).
