Notes to the consolidated financial statements
23 Provisions continued
Restructuring
Onerous contracts
Other
24 Other non-current liabilities
25 Other current financial liabilities
-
26 Other current liabilities
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 84
In 2008, Ahold recognized additional restructuring provisions of EUR 12 million, mainly related to Stop Shop/Giant-Landover
(EUR 11 million) and Giant-Carlisle (EUR 1 million). 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.
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 2008, Ahold recognized
additional provisions of EUR 27 million, mainly related to the lease termination of an office building used by Ahold USA's IT
organization (EUR 22 million).
Other provisions include asset retirement obligations, provisions for environmental risks and supplemental and severance payments,
other than those resulting from restructurings.
December 28,
December 30,
million
2008
2007
Step rent accruals
117
97
Deferred gains
55
48
Other
12
8
Total other non-current liabilities
184
153
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 gains predominantly represent the non-current portions of deferred gains on sale and leaseback
transactions.
December 28,
December 30,
million
2008
2007
Loans - current portion (see Note 20)
372
1,078
Finance lease liabilities - current portion
50
48
Interest
65
106
Short-term borrowings
37
66
Dividend cumulative preferred financing shares
31
31
Derivative financial instruments
14
13
Other
10
Total other current financial liabilities
579
1,342
December 28,
December 30,
million
2008
2007
Accrued expenses
567
590
Compensated absences
225
222
Payroll taxes, social security and VAT
179
192
Deferred gains
29
23
Other
4
2
Total other current liabilities
1,004
1,029
