130
34 Commitments and contingencies continued
35 Subsequent events
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Investors
Notes to the consolidated financial statements continued
Stop Shop Bradlees Lease Litigation with Vornado
In connection with the spin-off of Bradlees in May 1992, discussed under Contingent Liabilities above, Stop Shop, Bradlees, and
Vornado (or certain of its affiliates, collectively Vornado) entered into a Master Agreement and Guaranty (the Master Agreement) relating
to 18 leases for which Vornado was the landlord. Pursuant to the Bradlees Bankruptcies, Bradlees either rejected or assumed and
assigned the leases subject to the Master Agreement. In 2002, Vornado sent a written demand to Stop Shop to pay certain so-called
"rental increases" allegedly due under the Master Agreement in connection with certain leases, comprised of $5 million (€4 million)
annually through 2012, and, if certain renewal options are exercised, $6 million (€5 million) annually thereafter through the expiration of the
last lease covered by the Master Agreement, which Vornado alleges could extend until 2031depending upon whether renewal options
are exercised. In 2002, Stop Shop filed a Court claim that it is not obligated to pay the rental increases demanded by Vornado. In 2005,
Vornado filed a counterclaim seeking damages and a declaration that Stop Shop is obligated to pay rental increases. On November 4,
2011, the Supreme Court of the State of New York issued its judgment in respect of this litigation. Under the judgment, the court ordered
Stop Shop to pay $37.4 million in damages plus certain other accrued rental increases and statutory interest thereon and attorney's fees
and held Stop Shop liable for future rental increases in the amount of $6 million per annum thereafter until the date of expiration of the
last lease covered by the Master Agreement (which could be as late as 2031). Stop Shop filed a Notice of Appeal of the Judgment on
December 7, 2011. In connection with the judgment, a provision of $124 million (€92 million) was recorded against "Other financial income
(expense)".
Other legal proceedings
In addition to the legal proceedings described above, Ahold and its subsidiaries are parties to a number of other legal proceedings arising
out of their business operations. Ahold believes that the ultimate resolution of these other proceedings will not, in the aggregate, have a
material adverse effect on Ahold's financial position, results of operations, or cash flows. Such other legal proceedings, however, are
subject to inherent uncertainties and the outcome of individual matters is unpredictable. It is possible that Ahold could be required to make
expenditures, in excess of established provisions, in amounts that cannot reasonably be estimated.
Acquisitions
Acquisition of stores from Genuardi's Family Markets
On January 5, 2012, Ahold announced that Giant Carlisle has entered into an agreement with Genuardi's Family Markets, a subsidiary of
Safeway, to acquire sixteen Genuardi's stores in Greater Philadelphia for $106 million. The sale is expected to close within the first half of
2012, subject to customary closing conditions, including regulatory approval.
Acquisition online retailer bol.com
On February 27, 2012, Ahold announced that it is acquiring 100 percent of online retailer bol.com from Cyrte Investments and NPM
Capital for a transaction value of €350 million, fully paid in cash. Bol.com is active in the Netherlands and Belgium. The acquisition is
subject to customary conditions and is expected to close in the second quarter of 2012.
Share buyback
On March 3, 2011, Ahold announced its decision to return €1 billion to its shareholders by way of a share buyback program to be
completed over an 18-month period (this was accelerated to a 12-month period as announced on August 25, 2011). Under this program,
79,982,258 of the Company's own shares were repurchased and delivered in 2011. Shares were repurchased at an average price of
€9.04 per share for a total amount of €723 million.
The total number of shares repurchased under this program over the period from January 2, 2012, through February 24, 2012,
was 19,818,440 common shares, for a total consideration of €206 million, at an average price of €10.38.
