33 Operating leases
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Notes to the consolidated financial statements continued
Investors
Ahold as lessee
Ahold leases a significant number of its stores, as well as distribution centers, offices, and other assets, under operating lease
arrangements. The aggregate amounts of Ahold's minimum lease commitments payable to third parties under non-cancelable operating
lease contracts are as follows:
million
Within one year
Between one and five years
After five years
Total
January 1, January 2,
2012 2011
677
2,245
3,016
5,938
655
2,194
3,130
5,979
Certain store leases provide for contingent additional rentals based on a percentage of sales and consumer price indices. Substantially all
of the store leases have renewal options for additional terms. None of Ahold's leases impose restrictions on Ahold's ability to pay
dividends, incur additional debt, or enter into additional leasing arrangements.
The annual costs of Ahold's operating leases from continuing operations, net of sublease income, are as follows:
million 2011 2010
Minimum rentals 635 627
Contingent rentals 25 32
Sublease income (100) (107)
Total 560 552
In addition to the operating lease commitments disclosed above, Ahold has signed lease agreements for properties under development of
which it has not yet taken possession. The total future minimum lease payments for these agreements amount to approximately €233
million (2010: €251 million). These lease contracts are subject to conditions precedent to the rent commencement date.
Ahold as lessor
Ahold rents out its investment properties (mainly retail units in shopping centers containing an Ahold store) and also (partially) subleases
various other properties that are leased by Ahold under operating leases. The aggregate amounts of the related future minimum lease and
sublease payments receivable under non-cancelable lease contracts are as follows:
January 1, January 2,
million 2012 2011
Within one year
174
162
Between one and five years
491
393
After five years
421
349
Total
1,086
904
The total contingent rental income recognized during the year on all leases where Ahold is the lessor was €4 million (2010: €4 million).