17 Receivables
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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
Trade receivables
355
368
Vendor allowance receivables
223
185
Other receivables
212
166
790
719
Provision for impairment
(18)
(19)
Total receivables
772
700
Other receivables include the current portion of loans receivable of €67 million (January 3, 2010: €12 million). The current portion of loans
receivable as of January 2, 2011 includes €58 million (January 3, 2010: €55 million - classified in non-current loans receivable) of
preference shares, which carry an accumulated fixed cumulative dividend of 6.5 percent per year. Ahold acquired these shares in 2008 as
part of the transaction with CVC and Schuitema. Ahold, as a holder of these preference shares, has to give its prior approval in case
Schuitema acquires, is acquired by, or merges with a Dutch food retailer with a substantial number of food retail stores in the Netherlands.
Ahold cannot exercise this right if Schuitema offers Ahold a number of stores, selected by Schuitema, based upon certain agreed objective
principles. The purchase price for stores offered to Ahold is to be established on an arm's-length basis and to be agreed upon at the
moment Ahold purchases such stores. This arrangement lapses on April 22, 2011 or, if sooner, once Ahold has agreed to purchase a
maximum number of stores in one or more transactions. Upon termination of this arrangement, Ahold can sell, and Schuitema's majority
shareholder can acquire, Ahold's preference shares at cost plus accrued dividends.
At January 2, 2011, the aging analysis of receivables was as follows:
Past due
million
Total
Not past
due
0 - 3
months
3 - 6
months
6 - 12
months
12
months
Trade receivables
355
307
36
3
3
6
Vendor allowance receivables
223
172
44
2
2
3
Other receivables
212
154
36
10
3
9
790
633
116
15
8
18
Provision for impairment
(18)
(1)
(2)
(3)
(12)
Total receivables
772
633
115
13
5
6
At January 3, 2010, the aging analysis of receivables was as follows:
Past due
million
Total
Not past
due
0 - 3
months
3 - 6
months
6 - 12
months
12
months
T rade receivables
368
293
54
7
6
8
Vendor allowance receivables
185
142
37
2
2
2
Other receivables
166
101
30
15
3
17
719
536
121
24
11
27
Provision for impairment
(19)
(1)
(2)
(3)
(13)
Total receivables
700
536
120
22
8
14
The concentration of credit risk with respect to receivables is limited, as the Company's customer base and vendor base is large and
unrelated. The Company does not hold any significant collateral on its receivables. Management believes there is no further credit risk
provision required in excess of the normal individual and collective impairment, based on the aging analysis performed as of January 2,
2011. For more information about credit risk, see Note 30.
