o www.ahold.com/reports2009
Notes to the consolidated financial statements
30 Financial risk management and financial instruments - continued
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Financials
Derivatives
The number and the maturities of derivative contracts, the fair values and the qualification of the instruments for accounting purposes are
presented in the table below:
January 3, 2010 December 28, 2008
Number of Assets Liabilities Number of Assets Liabilities
contracts million million contracts million million
Cross-currency swaps - cash flow hedges:1
Between one and five years
After five years
1
1
173
(124)
1
1
158
(116)
Total cross-currency swaps - cash flow hedges
2
173
(124)
2
158
(116)
Foreign currency forwards and swaps - net investment hedges:2
Within one year
3
(1)
2
8
Total foreign currency forwards and swaps - net investment hedges
3
(1)
2
8
Foreign currency forwards and swaps - fair value hedges:3
Within one year
28
2
Total foreign currency forwards and swaps - fair value hedges
28
2
Foreign currency forwards and swaps - cash flow hedges:4
Within one year
83
1
44
(8)
Total foreign currency forwards and swaps - cash flow hedges
83
1
44
(8)
Derivative contracts - no hedge accounting treatment:5
Within one year
After five years
3
2
162
"xf CM
CM
101
(6)
Total derivative contracts - no hedge accounting treatment
5
162
26
101
(6)
Total derivative financial instruments 121 336 (125) 76 267 (130)
1 Cross-currency swaps accounted for as cash flow hedges are used to hedge currency and cash flow interest rate risk on fixed and floating debt denominated in foreign currency.
2 Foreign currency forwards and swaps accounted for as net investment hedges are used to hedge cash flow currency risk on ICA dividend flow.
3 Foreign currency forwards and swaps designated as fair value hedges are used to hedge the future cash flows denominated in foreign currencies.
4 Foreign currency forwards and swaps designated as cash flow hedges are used to hedge the future cash flows denominated in foreign currencies.
5 As of January 3, 2010, the valuation of the cross-currency swaps (assets) includes the impact of the mark-to-market valuation of an embedded credit clause in a GBP 250 million
cross-currency swap in the amount of €7 million. The volatility in the financial markets resulted in €13 million gain related to this credit clause in year 2009 (€7 million loss
in 2008).
The notional amounts of the derivative financial instruments outstanding as of January 3, 2010 are summarized below. The summary is
based on the currency of the exposures being hedged and includes the gross amounts of all notional values for outstanding contracts,
with all amounts expressed in millions of the respective currencies.
CHF PLN CZK SEK GBP JPY EUR
million million million million million million million
Interest rate swaps:
After five years - - - - 250 - -
Cross-currency interest rate swaps:
Between one and five years ------ 407
After five years - - - - 250 33,000 -
Foreign currency forwards and swaps:
Within one year 14 88 181 301 - - 32
Total notional amounts of derivative financial instruments 14 88 181 301 2501 33,000 439
1 Interest rate swap and cross-currency interest rate swap relate to the same notional amount of GBP 250 million.
In 2009 a gain of €41 million (2008: loss of €66 million) is included in the income statement under fair value gains (losses) on financial
instruments in relation to the fair value changes of derivatives that do not qualify for hedge accounting treatment or in relation to
ineffective portions of qualifying hedging instruments.
Gains and losses recognized in cash flow hedging reserve in equity as of January 3, 2010 will be released to the income statement at
various dates over a period of 22 years from the balance sheet date.
Ahold Annual Report 2009 100
