109
24 Provisions continued
25 Other non-current liabilities
26 Other current financial liabilities
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Investors
Notes to the consolidated financial statements continued
Restructuring
In 2011, Ahold recognized restructuring provisions of €11 million, mainly related to Ahold's U.S. operations. The provisions are based on
formal and approved plans using the best information available at the time. The amounts that are ultimately incurred may change as the
plans are executed. The balance of the provision as of January 1, 2012, consisted of €32 million related to rent and closing costs for
Ahold's former Tops stores and €18 million and €4 million for restructurings within Ahold's Czech and U.S. operations, respectively.
Onerous contracts
Onerous contract provisions mainly relate to unfavorable lease contracts and include the excess of the unavoidable costs of meeting the
obligations under the contracts over the benefits expected to be received under such contracts.
Other
Other provisions include asset retirement obligations, provisions for environmental risks, and supplemental and severance payments,
other than those resulting from restructurings.
January 1, January 2,
million 2012 2011
Step rent accruals
187
168
Deferred income
29
35
Other
14
14
Total other non-current liabilities
230
217
Step rent accruals relate to the equalization of rent payments from lease contracts with scheduled fixed rent increases throughout the life
of the contract.
Deferred income predominantly represents the non-current portions of deferred gains on sale and leaseback transactions.
January 1,
January 2,
million
2012
2011
Finance lease liabilities - current portion (see Note 22)
67
59
Interest payable
45
44
Short-term borrowings
41
39
Dividend cumulative preferred financing shares
24
30
Reinsurance liabilities - current portion (see Note 15)
41
20
Loans - current portion (see Note 21)
429
19
Other
1
5
Total other current financial liabilities
648
216
