2 www.ahold.com/reports2008
Notes to the consolidated financial statements
32 Operating leases
33 Commitments and contingencies
Capital investment commitments
Purchase commitments
Financial statements
AHOLD ANNUAL REPORT 2008 101
Ahold leases a significant number of its stores, as well as distribution centers, offices and other assets, under operating lease
arrangements. Various properties leased under operating leases are (partially) subleased to third parties. The aggregate amounts
of Ahold's minimum lease commitments payable to, as well as minimum sublease payments receivable from, third parties under
non-cancelable operating lease contracts are disclosed in the table below. The total 2007 net amount of EUR 4,928 million was
increased by EUR 243 million to correct the amount disclosed in Ahold's 2007 Annual Report:
December 28, 2008
December 30, 2007
million
Lease
commitments
Subleases
receivable
Total
Lease
commitments
Subleases
receivable
Total
Within one year
574
(120)
454
620
(164)
456
Between one and five years
1,888
(331)
1,557
1,995
(456)
1,539
After five years
3,225
(380)
2,845
3,361
(428)
2,933
Total
5,687
(831)
4,856
5,976
(1,048)
4,928
Certain store leases provide for contingent additional rentals based on a percentage of sales. Substantially all of the store leases
have renewal options for additional terms. None of Ahold's leases impose restrictions on the ability of Ahold to pay dividends, incur
additional debt, or enter into additional leasing arrangements.
The annual costs of Ahold's operating leases from continuing operations are disclosed in the table below. The total 2007 amount
of EUR 545 million was increased by EUR 69 million to correct the amount disclosed in Ahold's 2007 Annual Report:
million
2008
2007
Minimum rentals
550
596
Contingent rentals
44
26
Sublease income1
(83)
(77)
Total
511
545
1 Includes amounts presented as part of net sales in the consolidated income statement.
Ahold rents out its investment properties (mainly retail units in shopping centers containing an Ahold store) and also subleases
various other properties. The aggregate amounts of future minimum lease payments receivable under non-cancelable operating lease
contracts related to assets recognized on the consolidated balance sheet are as follows:
December 28,
December 30,
million
2008
2007
Within one year
70
74
Between one and five years
189
208
After five years
340
257
Total
599
539
As of December 28, 2008 Ahold had outstanding capital investment commitments for property plant and equipment and for
intangible assets of approximately EUR 146 million and EUR 0 million, respectively (December 30, 2007: EUR 266 million and
EUR 10 million, respectively). Ahold's share in the capital investment commitments of its unconsolidated joint venture ICA
amounted to EUR 19 million and EUR 94 million as of December 28, 2008 and December 30, 2007, respectively.
Ahold enters into purchase commitments with vendors in the ordinary course of business. Ahold has long-term purchase contracts
with some vendors for varying terms that require Ahold to buy services and predetermined volumes of goods and goods not-for-resale
at fixed prices. As of December 28, 2008, the Company's purchase commitments were approximately EUR 906 million (December
30, 2007: EUR 496 million). Not included in these purchase commitments are those purchase contracts for which Ahold has
received advance vendor allowances, such as up-front signing payments in consideration of its purchase commitments. These
contracts generally may be terminated without satisfying the purchase commitments upon repayment of the unearned portions of the
advance vendor allowances. The unearned portion of these advance vendor allowances is recorded as a liability on the consolidated
balance sheet.
