81
11 Property, plant and equipment
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Notes to the consolidated financial statements continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
million
Buildings and land
Stores Other
Machinery and
equipment
Under
Other construction
Total
As of December 28, 2008
At cost
Accumulated depreciation and impairment losses
5,742
(1,887)
545
(161)
3,048
(1,959)
165
(121)
155
(1)
9,655
(4,129)
Carrying amount
3,855
384
1,089
44
154
5,526
Year ended January 3, 2010
Additions (including transfers from under construction)
323
7
347
21
(27)
671
Depreciation
(287)
(22)
(318)
(16)
(1)
(644)
Impairment losses
(12)
(1)
(11)
(10)
(34)
Impairment reversals
1
1
2
Assets classified as held for sale or sold
(14)
3
(11)
Other movements
(107)
(2)
71
(38)
Exchange rate differences
(52)
(2)
(8)
(3)
(65)
Closing carrying amount
3,706
366
1,101
49
185
5,407
As of January 3, 2010
At cost
5,760
551
3,199
179
189
9,878
Accumulated depreciation and impairment losses
(2,054)
(185)
(2,098)
(130)
(4)
(4,471)
Carrying amount
3,706
366
1,101
49
185
5,407
Year ended January 2, 2011
Additions (including transfers from under construction)
446
8
364
18
(26)
810
Acquisitions through business combinations
89
10
1
100
Depreciation
(314)
(21)
(330)
(16)
(1)
(682)
Impairment losses
(23)
(6)
(29)
Assets classified as held for sale or sold
(25)
1
(3)
(27)
Other movements
(40)
(2)
1
(1)
(42)
Exchange rate differences
215
12
49
3
11
290
Closing carrying amount
4,054
363
1,190
55
165
5,827
As of January 2, 2011
At cost
Accumulated depreciation and impairment losses
6,471
(2,417)
555
(192)
3,606
(2,416)
196
(141)
165
10,993
(5,166)
Carrying amount
4,054
363
1,190
55
165
5,827
Buildings and land include improvements to these assets. "Other" buildings and land mainly include distribution centers. "Other" property,
plant and equipment mainly consists of trucks, trailers, and other vehicles, as well as office furniture and fixtures. Assets under construction
mainly consists of stores.
In 2010, Ahold recognized impairment losses of €29 million. These were related to Ahold USA (€19 million), the Netherlands (€6 million),
and Other Europe (€4 million). The carrying amount of the affected assets exceeded the higher of their value in use and fair value less
costs to sell. These methods involve estimating future cash flows. The present value of estimated future cash flows has been calculated
using pre-tax discount rates ranging between 7.8 percent and 12.1 percent (2009: 10.0 percent - 12.8 percent).
The additions to property, plant and equipment include capitalized borrowing costs of €3 million (2009: €4 million). Generally, the
capitalization rate used to determine the amount of capitalized borrowing costs is a weighted average of the interest rate applicable to the
respective operating companies. This rate ranged between 5.2 percent and 9.5 percent (2009: 7.0 percent - 10.5 percent).
