2 www.ahold.com/reports2008
Notes to the consolidated financial statements
29 Financial risk management and financial instruments continued
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Financial statements
AHOLD ANNUAL REPORT 2008 91
Derivatives
The number and maturities of derivative contracts, the fair values and the qualification of the instruments for accounting purposes
are presented in the table below:
December 28, 2008
December 30, 2007
Number
of contracts
Assets
million
Liabilities
million
Number
of contracts
Assets
million
Liabilities
million
Interest rate swaps - cash flow hedges:1
Between one and five years
2
3
After five years
Total interest rate swaps - cash flow hedges
2
3
Cross-currency swaps - cash flow hedges:2
Between one and five years
1
158
1
169
After five years
1
(116)
1
(139)
Total cross-currency swaps - cash flow hedges
2
158
(116)
2
169
(139)
Foreign currency forwards and swaps - net investment hedge:3
Within one year
2
8
Total foreign currency forwards and swaps - net investment hedge
2
8
Foreign currency forwards and swaps - fair value hedges:
Within one year
2
Total foreign currency forwards and swaps - fair value hedges
2
Foreign currency forwards and swaps - cash flow hedges:4
Within one year
44
(8)
24
(6)
Between one and five years
24
(7)
Total foreign currency forwards and swaps - cash flow hedges
44
(8)
48
(13)
Derivative contracts - no hedge accounting treatment:
Within one year
24
(6)
19
20
(7)
Between one and five years
16
1
(4)
After five years5
2
101
2
155
(4)
Total derivative contracts - no hedge accounting treatment
26
101
(6)
37
176
(15)
Total derivative financial instruments
76
267
(130)
89
348
(167)
1 Interest rate swaps designated as cash flow hedges are used to hedge cash flow interest rate risk on floating rate debt.
2 Cross-currency swaps accounted for as cash flow hedges are used to hedge currency and cash flow interest rate risk on fixed and floating debt denominated in foreign
currency.
3 Foreign currency forwards and swaps accounted for as net investment hedges are used to hedge cash flow currency risk on ICA dividend flow.
4 Foreign currency forwards and swaps designated as cash flow hedges are used to hedge the future cash flows denominated in foreign currencies.
5 The valuation of the cross-currency swaps (asset) includes the impact of the mark-to-market of an embedded credit clause in a GBP 250 million cross-currency swap.
The extreme volatility in the financial markets in 2008 resulted in EUR 7 million losses related to this credit clause.
