Notes to the consolidated financial statements
17 Receivables continued
-
18 Cash and cash equivalents
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 I 72
At December 28, 2008, the aging analysis of receivables was as follows:
Past due
million
Total
Not past due
0-3 months
3-6 months
6-12 months
12 months
Trade receivables
380
296
67
6
7
4
Vendor allowance receivables
219
191
00
2
4
4
Other receivables
163
96
23
29
4
11
762
583
108
37
15
19
Provision for impairment
(18)
(2)
(3)
(2)
(1)
(10)
Total receivables
744
581
105
35
14
9
The concentration of credit risk with respect to receivables is limited due to the Company's customer and vendor base being large
and unrelated. The Company does not hold any significant collateral on its receivables. Management believes there is no further
credit risk provision required in excess of the normal individual and collective impairment (based on the aging analysis) performed
as of December 28, 2008. For more information about credit risk, see Note 29.
The changes in the provision for impairment were as follows:
million
2008
2007
Beginning of the year
(50)
(72)
Additions
(11)
(23)
Classified as held for sale or sold
34
23
Used
1
13
Change in estimates
8
8
Exchange rate differences
1
End of the year
(18)
(50)
December 28,
December 30,
million
2008
2007
Cash in banks and cash equivalents
2,541
2,974
Cash on hand
322
289
Total cash and cash equivalents
2,863
3,263
Cash and cash equivalents include all cash on hand balances, checks, debit and credit card receivables that process in less than
seven days, short-term highly liquid cash investments and time deposits with original maturities of three months or less. Bank
overdrafts are included in short-term borrowings.
Of the cash and cash equivalents as of December 28, 2008, EUR 19 million was restricted (December 30, 2007: EUR 21 million).
This primarily consisted of cash held for insurance purposes for U.S. workers' compensation and general liability programs.
Ahold's banking arrangements allow the Company to fund outstanding checks when presented to the bank for payment. This cash
management practice may result in a net cash book overdraft position, which occurs when the total issued checks exceed available
cash balances within the Company's cash concentration structure. Such book overdrafts are classified in accounts payable and
amounted to EUR 195 million and EUR 156 million as of December 28, 2008 and December 30, 2007, respectively. No right
to offset with other bank balances exists.
