O www.ahold.com/reports2009
Notes to the consolidated financial statements
11 Property, plant and equipment - continued
12 Investment property
-
Financials
The carrying amount of land and buildings includes an amount related to assets held under finance leases and financings of €716 million
and €223 million (December 28, 2008: €762 million and €243 million), respectively. In addition, the carrying amount of machinery and
equipment includes an amount of €9 million (December 28, 2008: €8 million) relating to assets held under finance leases. Ahold does
not have legal title to these assets. Company-owned property, plant and equipment with a carrying amount of €76 million (December 28,
2008: €75 million) have been pledged as security for liabilities, mainly for loans.
million
2009
2008
At the beginning of the year
At cost
664
658
Accumulated depreciation and impairment losses
(163)
(195)
Carrying amount
501
463
Additions
14
52
Acquisitions through business combinations
10
Depreciation
(21)
(18)
Impairment losses
(6)
(2)
Assets classified from/(to) held for sale or sold
4
(32)
Transfers from property, plant and equipment
35
24
Exchange rate differences
(6)
14
Closing carrying amount
531
501
At the end of the year
At cost
734
664
Accumulated depreciation and impairment losses
(203)
(163)
Carrying amount
531
501
A significant portion of Ahold's investment property is comprised of shopping centers containing both an Ahold store and third-party retail
units. The third-party retail units generate rental income, but are primarily of strategic importance to Ahold in its retail operations. Ahold
recognizes the part of shopping centers leased to third-party retailers as investment property, unless it represents an insignificant portion
of the property.
In 2009, Ahold recognized impairment losses of €6 million. These were related to Albert/Hypernova (€3 million), Stop Shop/Giant-
Landover (€2 million) and Albert Heijn (€1 million).
The carrying amount of investment property includes an amount related to assets held under finance leases and financings of €47 million
(December 28, 2008: €49 million) and €42 million (December 28, 2008: €38 million), respectively. Ahold does not have legal title to
these assets. Company-owned investment property with a carrying amount of €60 million (December 28, 2008: €65 million) has been
pledged as security for liabilities, mainly for loans.
The fair value of investment property as of January 3, 2010 amounted to approximately €744 million (December 28, 2008: €722 million).
Fair value represents the price at which a property could be sold to a knowledgeable, willing party, and has generally been determined
based on internal appraisals, using discounted cash flow projections. In certain instances, Ahold cannot determine the fair value of the
investment property reliably. In such cases, the fair value is assumed to be equal to the carrying amount.
Rental income from investment property included in the income statement amounted to €65 million (2008: €72 million). Direct operating
expenses (including repairs and maintenance but excluding depreciation expense) arising from rental income generating investment
property in 2009 amounted to €29 million (2008: €34 million). Direct operating expenses (including repairs and maintenance but
excluding depreciation expense) arising from vacant investment property in 2009 amounted to €8 million (2008: €5 million).
The comparative carrying and fair value amounts have been adjusted from amounts previously reported to reflect the effect of the changes
in accounting policies and retrospective amendments.
Ahold Annual Report 2009 78
