Notes to the consolidated financial statements
29 Financial risk management and financial instruments continued
Fair values of financial instruments
Other
-
-
(202)
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 90
The following table presents the fair values, based on our financial categories of financial instruments, including current portions
compared to the carrying amounts for which these instruments are included in the consolidated balance sheet:
December 28, 2008
December 30, 2007
million
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Loans receivable
96
102
78
86
Available for sale
3
3
15
15
Derivatives
267
267
348
348
Receivables
735
735
891
891
Cash and cash equivalents
2,863
2,863
3,263
3,263
33
33
Total financial assets
3,997
4,003
4,595
4,603
Notes
(2,204)
(2,232)
(3,125)
(3,304)
Other loans
(1)
(1)
(204)
Financing obligations
(413)
(563)
(394)
(475)
Mortgages payable
(14)
(17)
(15)
(19)
Finance lease liabilities
(1,075)
(1,471)
(1,080)
(1,326)
Cumulative preferred financing shares
(497)
(498)
(497)
(507)
Dividend cumulative preferred financing shares
(31)
(31)
(31)
(31)
Derivatives
(130)
(130)
(167)
(167)
Accounts payable
(2,284)
(2,284)
(2,240)
(2,240)
Short-term borrowings
(37)
(37)
(66)
(66)
Interest
(65)
(65)
(106)
(106)
Other
(36)
(36)
(5)
(5)
Total financial liabilities
(6,787)
(7,365)
(7,928)
(8,450)
The carrying amount of receivables, cash and cash equivalents, accounts payable and other current financial assets and liabilities
approximate their fair values because of the short-term nature of these instruments and, for receivables, because of the fact that any
recoverability loss is reflected in an impairment loss. The fair values of quoted borrowings are based on year-end ask-market quoted
prices. The fair value of other non-derivative financial assets and liabilities that are not traded in an active market are estimated
using discounted cash flow analyses based on market rates prevailing at year end. The fair value of derivative financial assets and
liabilities are estimated by discounting future cash flows with prevailing market rates or based on the rates and quotations obtained
from third parties. The fair value calculation method and the conditions for redemption and conversion of the cumulative preferred
financing shares are disclosed in Note 21. The accrued interest is included in other current financial liabilities (Note 25) and not
in the carrying amounts of non-derivative financial assets and liabilities.
