15 Other non-current financial assets
16 Inventories
Total inventories
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Notes to the consolidated financial statements continued
Investors
January 2,
January 3,
million
2011
2010
Derivative financial instruments
346
334
Defined benefit asset
408
278
Reinsurance assets
58
44
Loans receivable
32
81
Other
9
13
Total other non-current financial assets
853
750
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 2, 2011. For more information
on defined benefit plans, see Note 23.
Of the non-current loans receivable, €7 million matures between one and five years and €25 million after five years (January 3, 2010: €59
million between one and five years and €22 million after five years). The current portion of loans receivable of €67 million is included in
other receivables (January 3, 2010: €12 million).
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. The 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 also
Notes 18, 22, and 26) on its balance sheet. There were no significant gains or losses related to this pooling arrangement during 2010 or
2009.
million
January 2,
2011
January 3,
2010
Finished products and merchandise inventories
1,330
1,214
Raw materials, packaging materials, technical supplies, and other
45
35
1,375
1,249
Valuation allowance
(44)
(40)
1,331
1,209
In 2010, €568 million has been recognized as a write-off of inventories in the income statement (2009: €529 million). The comparative
amount has been adjusted from the amount disclosed in Ahold's 2009 Annual Report, primarily reflecting the inclusion of inventories
directly written-off as an expense.
