o www.ahold.com/reports2009
Notes to the consolidated financial statements
11 Property, plant and equipment
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Financials
Buildings and land
Machinery and
equipment
million
Stores
Other
Other
construction
Total1
As of December 30, 2007
At cost
5,421
678
3,211
311
237
9,858
Accumulated depreciation and impairment losses
(1,771)
(199)
(2,243)
(254)
(1)
(4,468)
Carrying amount
3,650
479
968
57
236
5,390
Year ended December 28, 2008
Additions (including transfers from under construction)
534
35
414
18
(69)
932
Acquisitions through business combinations
6
1
7
Depreciation
(280)
(23)
(282)
(16)
(601)
Impairment losses
(4)
(1)
(5)
(10)
Impairment reversals
2
2
Assets classified as held for sale or sold
(186)
(108)
(29)
(15)
(14)
(352)
Other movements
(12)
(4)
(6)
(1)
(2)
(25)
Exchange rate differences
145
6
28
1
3
183
Closing carrying amount
3,855
384
1,089
44
154
5,526
As of December 28, 2008
At cost
5,742
545
3,048
165
155
9,655
Accumulated depreciation and impairment losses
(1,887)
(161)
(1,959)
(121)
(1)
(4,129)
Carrying amount
3,855
384
1,089
44
154
5,526
Year ended January 3, 2010
Additions (including transfers from under construction)
323
7
347
21
(27)
671
Depreciation
(287)
(22)
(318)
(16)
(1)
(644)
Impairment losses
(12)
(1)
(11)
(10)
(34)
Impairment reversals
1
1
2
Assets classified as held for sale or sold
(14)
3
(11)
Other movements
(107)
(2)
71
(38)
Exchange rate differences
(52)
(2)
(8)
(3)
(65)
Closing carrying amount
3,706
366
1,101
49
185
5,407
As of January 3, 2010
At cost
5,760
551
3,199
179
189
9,878
Accumulated depreciation and impairment losses
(2,054)
(185)
(2,098)
(130)
(4)
(4,471)
Carrying amount
3,706
366
1,101
49
185
5,407
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).
Buildings and land include improvements to these assets. Buildings and land "Other" mainly includes distribution centers. "Other"
property, plant and equipment mainly consist of trucks, trailers and other vehicles, as well as office furniture and fixtures. Assets under
construction mainly consist of stores.
In 2009, Ahold recognized impairment losses of €34 million. These were related to Albert/Hypernova (€15 million), Stop Shop/Giant-
Landover (€13 million) and Albert Heijn (€6 million). The carrying amount of the affected assets exceeded the higher of their value in
use and fair value less costs to sell. These methods involve estimating future cash flows. The present value of estimated future cash flows
has been calculated using discount rates ranging between 10.0 percent and 12.8 percent (2008: 9.0 percent - 12.6 percent).
Assets classified as held for sale or sold during 2008 mainly relate to the divestment of Schuitema.
The additions to property, plant and equipment include capitalized borrowing costs of €4 million (2008: €4 million). Generally, the
capitalization rate used to determine the amount of capitalized borrowing costs is a weighted average of the interest rate applicable
to the respective operating companies. This rate ranged between 7.0 percent and 10.5 percent (2008: 5.8 percent - 8.4 percent).
Other movements include transfers to and from investment property.
Ahold Annual Report 2009 77
