Notes to the consolidated financial statements
20 Loans and credit facilities continued
Credit facilities
21 Other non-current financial liabilities
Finance lease liabilities
31 www.ahold.com/reports2008
Financial statements
AHOLD ANNUAL REPORT 2008 76
The fair values of these instruments, corresponding derivatives and the foreign exchange and interest rate risk management policies
applied by Ahold are disclosed in Note 29.
The Company has a Euro Medium Term Note program (EMTN) which had an aggregate of EUR 0.9 billion of outstanding notes as
of December 28, 2008. The notes issued under the program include EUR 600 million, GBP 500 million, and JPY 33,000 million,
maturing in 2012, 2017 and 2031, respectively. Notes issued under the EMTN program contain customary restrictive covenants,
including but not limited to negative pledge covenants and default provisions in the event of a change of control. During 2008,
Ahold updated the program documentation and was in compliance with the covenants.
Ahold also has access to a EUR 1,200 million unsecured committed syndicated multi-currency credit facility which may be used for
working capital and for general corporate purposes of the Company and provides for the issuance of letters of credit to an aggregate
maximum amount of USD 550 million (EUR 391 million). The expiration date of the facility is August 2012, and the facility
agreement includes an option to extend it up to and including August 2014 with lender agreement.
The facility contains customary covenants. The facility is subject to a financial covenant that requires Ahold not to exceed
a maximum leverage ratio, as defined in the facility agreement, of 4.28:1.
During 2008, Ahold was in compliance with the covenants, and as of December 28, 2008, there were no outstanding borrowings
under the facility other than letters of credit to an aggregate amount of USD 413 million (EUR 294 million).
Ahold also has access to various uncommitted credit facility lines serving working capital needs which as at December 28, 2008
totaled EUR 233 million, of which EUR 3 million was drawn.
December 28, December 30,
million 2008 2007
Finance lease liabilities 1,025 1,032
Cumulative preferred financing shares 497 497
Derivative financial instruments 116 154
Other 26 5
Total other non-current financial liabilities 1,664 1,688
For more information on derivative financial instruments, see Note 29.
Finance lease liabilities are payable as follows:
December 28, 2008
December 30, 2007
million
Future minimum
lease payments
Interest portion
Present value
of minimum
lease payments
Future minimum
lease payments
Interest portion
Present value
of minimum
lease payments
Within one year
143
93
50
141
93
48
Between one and five years
537
323
214
528
330
198
After five years
1,236
425
811
1,316
482
834
Total
1,916
841
1,075
1,985
905
1,080
Current portion finance lease liabilities
50
48
Non-current portion finance lease liabilities
1,025
1,032
Finance lease liabilities are principally for buildings. Terms range from 10 to 25 years and include renewal options if it is reasonably
certain, at the inception of the lease, that they will be exercised. At the time of entering into finance lease agreements, the commitments
are recorded at their present value using the interest rate implicit in the lease, if this is practicable to determine; if not, the
operating company specific interest rate applicable for long-term borrowings is used. As of December 28, 2008, the finance lease
liabilities are recorded at their present value at an average interest rate of 8.8 percent (December 30, 2007: 9.1 percent).
