Financial position
Ahold
Annual Report 2010
Group performance continued
Group at a glance
Governance
Fi nancials
Investors
Income from continuing operations Earnings per share
per common share (diluted)
Diluted income from continuing operations per common share was €0.73, a decrease of 9.9
percent compared to 2009. Higher operating profits were more than offset by higher income taxes
and lower results from joint ventures. The average number of outstanding common shares
decreased as a result of the shares bought back under the €500 million, 12-month share buyback
program, which started in April 2010. This was partially offset by shares that were issued under
employee share-based compensation programs.
Ahold's consolidated balance sheets as of January 2, 2011 and January 3, 2010 are summarized
as follows:
January 2, 2011 January 3, 2010
million million
Property, plant and equipment
5,827
39.6
5,407
38.8
Other non-current assets
3,704
25.1
3,421
24.6
Cash, cash equivalents, and short-term deposits
2,824
19.2
2,983
21.4
Other current assets
2,370
16.1
2,122
15.2
Total assets
14,725
100.0
13,933
100.0
Equity
5,910
40.1
5,440
39.0
Non-current portion of long-term debt
3,444
23.4
3,242
23.3
Other non-current liabilities
1,279
8.7
1,226
8.8
Short-term borrowings and current portion of
long-term debt
117
0.8
458
3.3
Other current liabilities
3,975
27.0
3,567
25.6
Total equity and liabilities
14,725
100.0
13,933
100.0
Property, plant and equipment increased by €420 million, primarily as a result of capital
expenditures (including acquisitions) and the strengthening of the U.S. dollar against the euro.
The increase in other non-current assets primarily relates to goodwill paid on acquisitions
(€111 million), mainly those of Ukrop's and Shaw's stores, and the improved financial position
of our pension plans (€130 million). For the total group, our defined benefit plans showed a
surplus of €81 million at year-end 2010 compared to a deficit of €78 million at year-end 2009.
This improvement was due to positive investment results on the plan assets and cash
contributions made to the plans, partially offset by the effect of lower interest rates in the
United States.
A significant number of union employees in the United States are covered by multi-employer
plans. With the help of external actuaries, we have adjusted the most recent available information
that these plans have provided (largely related to financial years ending between July 1, 2009 and
December 31, 2009) for market trends and conditions through the end of 2010. We estimate our
proportionate share of the total deficit to be $841 million (€628 million, pre-tax) at year-end 2010.
While this is our best estimate based on the information available to us, it is imprecise and not
necessarily reliable. For more information see Note 23 to the consolidated financial statements.
Equity increased by €470 million, mainly as a result of the addition of the current year's net
income, partially offset by the dividend payment related to 2009 and the share buyback program
that started in April 2010.
