20 Equity attributable to common shareholders continued
21 Loans and credit facilities
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Notes to the consolidated financial statements continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Investors
Legal reserves
In accordance with the Netherlands Civil Code and statutory requirements in other countries, legal reserves have to be established in
certain circumstances. The currency translation reserve and cash flow hedging reserve are both legal reserves. The other legal reserves
primarily consist of the cumulative share in income of joint ventures and associates less dividends received and adjusted for any direct
equity movements of joint ventures and associates. Legal reserves are not available for distribution to the Company's shareholders. If the
currency translation reserve or the cash flow hedging reserve has a negative balance, distributions to the Company's shareholders are
restricted to the extent of the negative balance.
The notes in the table below were issued by Ahold or one of its subsidiaries, the latter of which are guaranteed by Ahold unless otherwise
noted. All related swap contracts have the same maturity as the underlying debt unless otherwise noted.
Current Non-current portion Current Non-current portion
portion Total portion Total
Within Between After January 2, Within Between After January 3,
million 1 year 1 to 5 years 5 years 2011 1 year 1 to 5 years 5 years 2010
Notional redemption amounts
USD 700 notes 8.25%,
due July 20101
351
351
EUR 600 notes 5.875%,
due March 20122
407
407
407
407
GBP 500 notes 6.50%,
due March 20173,4
268
268
257
257
USD 94 indebtedness 7.82%,
due January 20205
4
24
29
57
4
20
33
57
USD 71 indebtedness 8.62%,
due January 2025
53
53
49
49
USD 500 notes 6.875%,
due May 2029
374
374
349
349
JPY 33,000 notes LIBOR plus 1.5%, due May
20316
304
304
248
248
Deferred financing costs
(1)
(3)
(4)
(1)
(3)
(4)
Total notes
4
430
1,025
1,459
355
426
933
1,714
Other loans
1
1
2
1
1
Financing obligations7
11
60
329
400
11
73
313
397
Mortgages payable8
3
6
9
2
7
1
10
Total loans
19
497
1,354
1,870
369
506
1,247
2,122
1 $10 million was repaid early via an open market repurchase in October 2008. $187 million was repaid early, in July 2009, as a result of a public tender for the notes, with the
Company paying a repurchase price of $197 million. A loss of $10 million (€7 million) incurred on the buyback of these notes was reported in the income statement in 2009 as
other financial expense (see Note 9). The remaining outstanding balance of the notes, $503 million, was repaid on maturity.
2 Notes were swapped to the U.S. dollar at an interest rate of 6.835 percent. During 2005, Ahold bought back a part of the notes with a principal amount of €193 million and
terminated a notional portion of the corresponding swap in the same amount.
3 During 2005 Ahold bought back GBP 250 million of the notes. The remaining notional redemption amount of GBP 250 million (€292 million) has been reduced by €24 million
(2009: €25 million) representing an unamortized adjustment related to a fair value hedge that no longer meets the criteria for hedge accounting.
4 The remaining notional amount of GBP 250 million was, through two swap contracts, swapped to $356 million and carries a six-month floating U.S. dollar interest rate. Ahold is
required under these swap contracts to redeem the U.S. dollar notional amount through semi-annual installments that commenced in September 2004. $178 million has been paid
down as of January 2, 2011.
5 As of January 2, 2011, $18 million was repaid since inception.
6 Notes were swapped to €299 million at an interest rate of 7.065 percent.
7 The average interest rate for the financing obligations amounted to 7.9 percent in 2010 (2009: 7.8 percent).
8 Mortgages payable are collateralized by buildings and land. The average interest rate for these mortgages payable amounted to 7.5 percent in 2010 (2009: 7.3 percent).
The fair values of financial instruments, corresponding derivatives, and the foreign exchange and interest rate risk management policies
applied by Ahold are disclosed in Note 30.
