12 Commitments and contingencies
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Notes to the parent company financial statements continued
Notes and loans issued by certain subsidiaries are guaranteed by the Parent company, as disclosed in Note 21 to the consolidated
financial statements. The Parent company also guarantees certain lease obligations and other obligations of subsidiaries. Guarantees
issued by the Parent company regarding the financial obligations of third parties and non-consolidated entities amount to €855 million
as of January 2, 2011 (January 3, 2010: €898 million).
As part of the divestment of U.S. Foodservice in 2007, Ahold received an irrevocable standby letter of credit for $216 million (€151 million)
which was reduced to $128 million (€96 million) as of January 2, 2011. As part of the divestment of Ahold's Polish retail operations, Ahold
received a guarantee from Carrefour for €152 million in June 2007. The outstanding amount of this guarantee as of January 2, 2011 was
€7 million. These reductions followed the decreases in the underlying guarantees given by Ahold.
Under customary provisions, the Parent company guarantees certain representations and warranties made in agreements of asset
disposals. Guarantees and legal proceedings are further disclosed in Note 34 to the consolidated financial statements. The Parent
company forms a fiscal unity with Ahold's major Dutch and certain other subsidiaries for Dutch corporate income tax and Dutch VAT
purposes and, for that reason, it is jointly and severally liable for the Dutch corporate income tax liabilities and Dutch VAT liabilities of the
whole fiscal unity. Assumptions of liability pursuant to section 403, Book 2 of the Netherlands Civil Code are disclosed in Note 36 to the
consolidated financial statements.
Corporate Executive Board
Amsterdam, the Netherlands
March 2, 2011
Supervisory Board
