O www.ahold.com/reports2009
Notes to the consolidated financial statements
22 Other non-current financial liabilities
1,814
Financials
million
January 3,
2010
December 28,
2008
Finance lease liabilities
992
1,025
Cumulative preferred financing shares
497
497
Derivative financial instruments
124
116
Reinsurance liabilities
46
23
Other
1
3
Total other non-current financial liabilities 1,660 1,664
For more information on derivative financial instruments and fair values, see Note 30.
The Company recognizes reinsurance liabilities on its balance sheet in connection with a pooling arrangement between unrelated companies.
For more information, see Note 15.
Finance lease liabilities
Finance lease liabilities are payable as follows:
January 3, 2010
December 28, 2008
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
140
89
51
143
93
50
Between one and five years
535
309
226
537
323
214
After five years
1,139
373
766
1,236
425
811
Total
771
1,043
1,916
841
1,075
Current portion finance lease liabilities
51
50
Non-current portion finance lease liabilities
992
1,025
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 January 3, 2010, the finance lease liabilities are recorded
at their present value at an average interest rate of 8.8 percent (December 28, 2008: 8.8 percent).
Certain store leases provide for contingent additional rentals based on a percentage of sales and consumer price indices. Substantially
all of the store leases have renewal options for additional terms. None of Ahold's leases impose restrictions on Ahold's ability to pay
dividends, incur additional debt, or enter into additional leasing arrangements.
During 2009, interest expense on finance lease liabilities was €94 million (2008: €94 million) of which €3 million related to discontinued
operations (2008: €6 million). Total future minimum sublease income expected to be received under non-cancelable subleases as
of January 3, 2010 is €133 million (December 28, 2008: €165 million, which was decreased by €10 million to correct the amount
disclosed in Ahold's 2008 Annual Report). The total contingent rent expense recognized during the year on finance leases was €1 million
(2008: nil).
Cumulative preferred financing shares
Number
of shares
(x 1,000) million
Issued cumulative preferred financing shares (€0.30 par value each)
Authorized cumulative preferred financing shares (€0.30 par value each)
268,415
477,581
81
143
million
Other non-current
financial liabilities
Paid-in capital issued shares
Additional paid-in capital
81
416
Balance as of January 3, 2010
497
Ahold Annual Report 2009 87
