30 Financial risk management and financial instruments continued
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Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Notes to the consolidated financial statements continued
Investors
The majority of Ahold's past due but not impaired financial assets as of January 12012, consists of receivables and is past due less than
three months. The concentration of credit risk with respect to receivables is limited as the Company's customer base and vendor base are
large and unrelated. As a result, management believes there is no further credit risk provision required in excess of the normal individual
and collective impairment, based on an aging analysis performed as of January 1, 2012. For further discussion on Ahold's receivables,
see Notes 15 and 17.
Liquidity risk
Ahold manages its liquidity risk on a consolidated basis with cash provided from operating activities being the primary source of liquidity,
in addition to debt and equity issuances in the capital markets, committed and uncommitted credit facilities, letters of credit under credit
facilities, and available cash. Ahold manages short-term liquidity based on projected cash flows over rolling periods of six months.
As of January 1, 2012, Ahold had €1 billion of committed undrawn bank facilities, which can be drawn on for working capital and general
corporate purposes, €2.4 billion of cash balances, and €0.2 billion of short-term deposits available to manage its liquidity.
Based on the current operating performance and liquidity position, the Company believes that cash provided by operating activities and
available cash balances will be sufficient for working capital, capital expenditures, interest payments, dividends, and scheduled debt
repayment requirements for the next 12 months and the foreseeable future.
The following tables summarize the expected maturity profile of the Company's derivative financial instruments and non-derivative financial
liabilities as of January 1, 2012, and January 2, 2011, respectively, based on contractual undiscounted payments:
Year ended January 1, 2012
Contractual cash flows
million
Net carrying
amount
Between
Within 1 and 5
1 year years
After
5 years
Total
Non-derivative financial liabilities
Notes
(1,509)
(496)
(270)
(1,652)
(2,418)
Other loans
(3)
(2)
(1)
(3)
Financing obligations
(399)
(67)
(271)
(266)
(604)
Mortgages payable
(7)
(3)
(5)
(8)
Finance lease liabilities
(1,225)
(214)
(857)
(805)
(1,876)
Cumulative preferred financing shares1
(497)
(24)
(86)
(68)
(178)
Short-term borrowings
(41)
(41)
(41)
Reinsurance liabilities
(108)
(42)
(58)
(9)
(109)
Accounts payable
(2,436)
(2,436)
(2,436)
Other
(2)
(2)
(2)
Derivative financial assets and liabilities
Cross-currency derivatives and interest flows
234
117
(119)
193
191
Interest derivatives and interest flows
57
9
36
13
58
1 Cumulative preferred financing shares have no maturity. For the purpose of the table above, the future dividend cash flows were calculated until the coupon reset date of each of
the four share-series (2013, 2016, 2018, and 2020). No liability redemption was assumed.
