O www.ahold.com/reports2009
Notes to the parent company financial statements
9 Other non-current liabilities
-
-
10 Current liabilities
-
-
-
11 Derivatives
Financials
January 3,
December 28,
million
2010
2008
Deferred tax liability
52
55
Hedging derivatives external
124
116
Hedging derivatives intercompany
173
158
Other derivatives intercompany
162
101
Finance lease liabilities
1
Financial guarantees
1
Total other non-current liabilities
512
431
January 3,
December 28,
million
2010
2008
Short-term borrowings from subsidiaries
3,004
2,536
Payables to subsidiaries
56
Payables to joint ventures
2
2
Interest payable
1
1
Dividend cumulative preferred financing shares
32
31
Hedging derivatives external
8
Hedging derivatives intercompany
1
Other derivatives external
1
4
Other current liabilities
24
29
Total current liabilities
3,065
2,667
The current liabilities are liabilities that mature within one year.
The Parent company regularly enters into derivative contracts with banks to hedge foreign currency and interest exposures of the Parent
company or its subsidiaries. Derivative contracts that are entered into to hedge exposures of subsidiaries are generally mirrored with
intercompany derivative contracts with the subsidiaries that are exposed to the hedged risks on substantially identical terms as the
external derivative contracts. In these parent company financial statements, the external derivative contracts and the intercompany
derivative contracts are presented separately on the balance sheet. In situations where the external derivative contract qualifies for hedge
accounting treatment in the consolidated financial statements, the external derivative contract and the intercompany derivative contract
are presented as "Hedging derivatives external" and "Hedging derivatives intercompany", respectively. In situations where the external
derivative contract does not qualify for hedge accounting treatment in the consolidated financial statements, the external derivative
contract and the intercompany derivative contract are presented as "Other derivatives external" and "Other derivatives intercompany",
respectively.
Fair value movements of external derivative contracts that were entered into to hedge the exposures of subsidiaries are recorded directly in
income, where they effectively offset the fair value movements of the mirroring intercompany derivatives that are also recorded directly in
income. The Parent company has one cash flow hedge to hedge the interest rate and currency exposure on the JPY 33,000 million notes.
In relation to the cash flow hedge on the JPY 33,000 million notes, the Parent company recorded a fair value loss of €7 million in the cash
flow hedge reserve in 2009 (2008: a fair value gain of €22 million) and recognized a loss of €11 million (2008: a gain of €58 million)
in the income statement from the cash flow hedge reserve release. Details of these derivative contracts and the Parent company's risk
management strategies are included in Note 30 to the consolidated financial statements and in the tables presented below.
Ahold Annual Report 2009 119
