O www.ahold.oom/reports2009
Notes to the consolidated financial statements
8 Expenses by nature
9 Net financial expense
Financials
The aggregate of oost of sales and operating expenses oan be specified by nature as follows:
million
2009
20081
Cost of product
19,376
17,887
Employee benefit expenses
3,771
3,365
Other store expenses
1,716
1,643
Depreciation and amortization
732
661
Rent expenses and income - net
488
437
Impairment losses and reversals - net
39
13
Gains on the sale of assets
(7)
(46)
Other expenses
513
486
Total expenses
26,628
24,446
1 Comparative amounts have been adjusted from amounts previously reported to reflect the effect of the changes in accounting policies and retrospective amendments (see Note 3).
million
2009
20081
Interest income
27
110
Interest expense
(316)
(343)
Gains (losses) on foreign exchange
(25)
87
Fair value gains (losses) on financial instruments
41
(66)
Other financial expense
(10)
(1)
Net financial expense
(283)
(213)
1 Comparative amounts have been adjusted from amounts previously reported to reflect the effect of the changes in accounting policies and retrospective amendments (see Note 3).
Interest income is mainly attributable to the interest on oash and oash equivalents and short-term oash deposits. Interest expense
primarily relates to financial liabilities measured at amortized oost (mainly loans, finance lease liabilities and cumulative preferred
financing shares) and interest accretions to provisions.
The gains (losses) on foreign exchange in both 2009 and 2008 mainly result from the foreign exchange retranslation of the GBP 250
million notes.
Fair value gains (losses) on financial instruments mainly include fair value changes in swaps related to the GBP 250 million notes.
These swaps do not qualify for hedge accounting treatment. For more information on financial instruments, see Note 30.
Foreign exchange results on financial assets and liabilities, including amounts released from the oash flow hedging reserve, are presented
as part of net financial expense. Foreign exchange results arising from the purchase of goods for sale or goods and services consumed
in Ahold's operations are included in oost of sales or in the appropriate element of operating expenses, respectively. In 2009, the Company
included net exchange losses of €9 million in operating income (2008: losses of €10 million).
Other financial expense in 2009 primarily consists of a loss of €7 million incurred on the buybaok of certain notes. For more information,
see Note 21.
Ahold Annual Report 2009 73
