Notes to the consolidated financial statements continued
17 Receivables continued
18 Other current financial assets
19 Cash and cash equivalents
20 Equity attributable to common shareholders
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
The changes in the provision for impairment were as follows:
million
2010
2009
Beginning of the year
(19)
(18)
Additions
(15)
(16)
Used
8
5
Released to income
9
11
Exchange rate differences
(1)
(1)
End of the year
(18)
(19)
January 2,
January 3,
million
2011
2010
Short-term deposits
224
295
Reinsurance assets - current portion (see Note 15)
19
12
Other
2
3
Total other current financial assets
245
310
Short-term deposits include cash time deposits. These deposits are fully collateralized, mainly by equity securities and government and
sovereign bonds.
For more information on financial instruments and fair values, see Note 30.
January 2,
January 3,
million
2011
2010
Cash in banks and cash equivalents
2,312
2,344
Cash on hand
288
344
Total cash and cash equivalents
2,600
2,688
Of the cash and cash equivalents as of January 2, 2011, €21 million was restricted (January 3, 2010: €22 million). This primarily consisted
of cash held for insurance purposes for U.S. workers' compensation and general liability programs.
Ahold's banking arrangements allow the Company to fund outstanding checks when presented to the bank for payment. This cash
management practice may result in a net cash book overdraft position, which occurs when the total issued checks exceed available cash
balances within the Company's cash concentration structure. Such book overdrafts are classified in accounts payable and amounted to
€138 million and €159 million as of January 2, 2011 and January 3, 2010, respectively. No right to offset with other bank balances exists
for these book overdraft positions.
Shares and share capital
Authorized share capital is comprised of the following classes of shares as of January 2, 2011:
million
Common shares (1,700,000,000 of €0.30 par value each)
510
Cumulative preferred shares (1,250,000 of €500 par value each)
625
Total authorized share capital
1,135
In addition, Ahold has cumulative preferred financing shares outstanding. These cumulative preferred financing shares are considered
debt under IFRSs until the date that Ahold receives irrevocable notification from a holder of cumulative preferred financing shares to
convert these shares into common shares. Upon this notification, the cumulative preferred financing shares are classified as a separate
class of equity as they no longer meet the definition of a liability. For disclosures regarding Ahold's cumulative preferred financing shares,
see Note 22.
