O www.ahold.com/reports2009
Notes to the consolidated financial statements
15 Other non-current financial assets
16 Inventories
Financials
million
January 3,
2010
December 28,
2008
Derivative financial instruments
334
259
Defined benefit asset
278
112
Loans receivable
81
87
Reinsurance assets
44
23
Other
13
4
Total other non-current financial assets
750
485
For more information on derivative financial instruments and fair values, see Note 30.
The defined benefit asset represents defined benefit pension plans for which the present value of the defined benefit obligations, less
the fair value of plan assets, adjusted for unrecognized actuarial gains or losses, results in a net asset. The asset reflects unrecognized
actuarial losses as well as Ahold's unconditional right to a refund assuming the gradual settlement of the plan liabilities over time until all
members have left the plan. Therefore, the defined benefit asset is not realizable immediately as of January 3, 2010. For more information
on defined benefit plans, see Note 23.
Of the non-current loans receivable, €59 million matures between one and five years and €22 million after five years (December 28,
2008: €63 million between one and five years and €24 million after five years). The current portion of loans receivable of €12 million
is included in other receivables (December 28, 2008: €9 million).
Loans receivable as of January 3, 2010 include €55 million (December 28, 2008: €52 million) of preference shares, which carry an
accumulated fixed cumulative dividend of 6.5 percent per year. Ahold acquired these shares in 2008 as part of the transaction with CVC
and Schuitema (see also Note 5). Ahold, as a holder of these preference shares, has to give its prior approval in case Schuitema acquires,
is acquired by, or merges with a Dutch food retailer with a substantial number of food retail stores in the Netherlands. Ahold cannot
exercise this right if Schuitema offers it a number of stores, selected by Schuitema, based upon certain agreed objective principles.
The purchase price for stores offered to Ahold is to be established on an arm's-length basis and to be agreed upon at the moment Ahold
purchases such stores. This arrangement lapses on April 22, 2011 or, if sooner, once Ahold has agreed to purchase a maximum number
of stores in one or more transactions. Upon termination of this arrangement, Ahold can sell, and Schuitema's majority shareholder can
acquire Ahold's preference shares at cost plus accrued dividends.
Under the self-insurance program, part of the insurance risk is ceded under a reinsurance treaty, which is a pooling arrangement between
unrelated companies. At the same time, Ahold assumes a share of the reinsurance treaty risks that is measured by Ahold's participation
percentage in the treaty. Participation percentage is the ratio of premium paid by Ahold to the total premium paid by all treaty members.
In connection with this pooling arrangement, the Company recognizes reinsurance assets and reinsurance liabilities (see Note 22) on its
balance sheet. There were no significant gains or losses related to this pooling arrangement during 2009 and 2008.
million
January 3,
2010
December 28,
2008
Finished products and merchandise inventories
Raw materials, packaging materials, technical supplies and other
1,214
35
1,337
31
Valuation allowance
1,249
(40)
1,368
(49)
Total inventories
1,209
1,319
In 2009, €190 million has been recognized as a write-off of inventories in the income statement (2008: €212 million).
Ahold Annual Report 2009 81
