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30 Financial risk management and financial instruments continued
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31 Related party transactions
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Investors
Notes to the consolidated financial statements continued
Derivatives
The fair values, notional amounts, the maturities, and the qualification of the derivative financial instruments for accounting purposes are
presented in the table below:
January 1, 2012 January 2, 2011
million
Maturity
i
Assets
Fair value
Liabilities
Notional
amount
Assets
Fair value
Liabilities
Notiona
amount
Forward foreign currency contracts1
Within 1 year
1
Total fair value hedges
1
Forward foreign currency contracts2
Within 1 year
1
140
2
82
Cross-currency swap
Within 1 year
1413
407
Cross-currency swap
Between 1-5 years
1513
407
Cross-currency swap
After 5 years
(89)4
331
(69)4
304
Total cash flow hedges
142
(89)
878
153
(69)
793
Forward foreign currency contracts5
Within 1 year
(1)
63
(4)
52
Total net investment hedges
(1)
63
(4)
52
Forward foreign currency contracts
Within 1 year
1
Interest rate swap
After 5 years
57
3007
39
2927
Cross-currency swap6
After 5 years
182
3007
156
2927
Total derivatives - no hedge
accounting treatment
239
3007
195
2937
Total derivative financial
instruments
381
(90)
1,241
348
(73)
1,139
1 Foreign currency forwards designated as fair value hedges are used to hedge the fair value of financial liabilities in foreign currencies.
2 Foreign currency forwards designated as cash flow hedges are used to hedge the future cash flows denominated in foreign currencies.
3 Cross-currency swap accounted for as cash flow hedges used to hedge currency and cash flow risk on fixed debt denominated in foreign currency related to EUR 600 notes
(see Note 21 for additional information).
4 Cross-currency swap accounted for as cash flow hedges used to hedge currency and cash flow risk on floating debt denominated in foreign currency, related to JPY 33,000 notes
(see Note 21 for additional information).
5 Foreign currency forwards accounted for as net investment hedges are used to hedge cash flow currency risk on a dividend flow from ICA.
6 As of January 1, 2012, the valuation of the GBP 250 cross-currency swap, related to the GBP 250 notes (see Note 21 for additional information) includes the impact of the mark-to-
market valuation of an embedded credit clause in the amount of €13 million. The volatility in the financial markets resulted in a €3 million loss related to this credit clause in the year
2011 (€3 million loss in 2010). Ahold is required under these swap contracts to redeem the U.S. dollar notional amount through semi-annual installments that commenced in
September 2004. $205 million has been paid down as of January 1, 2012.
7 Interest rate swap and cross-currency interest rate swap relate to the same notional amount of GBP 250 million.
Gains and losses recognized in cash flow hedging reserve in equity as of January 1, 2012, mainly relate to the swap on the JPY 33,000
notes and will be released to the income statement over a period lasting until 2031
Compensation of key management personnel
Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of
the Company as a whole. The Company determined that key management personnel consist of the members of the Corporate Executive
Board (CEB) and the members of the Supervisory Board as of the year the members' appointment was approved by the General Meeting
of Shareholders.
