101
21 Loans and credit facilities continued
22 Other non-current financial liabilities
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Investors
Notes to the consolidated financial statements continued
Credit facilities
Ahold has access to a €1.2 billion unsecured, committed, multi-currency, and syndicated credit facility, which was refinanced in June 2011.
This credit facility may be used for working capital and for general corporate purposes of the Company and provides for the issuance of
letters of credit to an aggregate maximum amount of $550 million (€425 million). The expiration date of the facility is June 2016 and
includes the possibility of 12-month extensions in each of the first two years.
The facility contains customary covenants and is subject to a financial covenant that requires Ahold not to exceed a maximum leverage
ratio, as defined in the facility agreement, of 4.0:1.
During 2011, Ahold was in compliance with these covenants, and as of January 1, 2012, there were no outstanding borrowings under the
facility other than letters of credit to an aggregate amount of $287 million (€222 million).
Ahold also has access to various uncommitted credit facility lines serving working capital needs that, as of January 1, 2012, totaled
€110 million. No amounts were drawn under these credit facility lines as of January 1, 2012.
January 1
January 2,
million
2012
2011
Finance lease liabilities
1,158
1,096
Cumulative preferred financing shares
497
497
Derivative financial instruments
89
69
Reinsurance liabilities
67
63
Other
2
1
Total other non-current financial liabilities
1,813
1,726
For more information on derivative financial instruments and fair values, see Note 30.
The Company recognizes reinsurance liabilities on its balance sheet in connection with a pooling arrangement between unrelated
companies. For more information, see Note 15.
Finance lease liabilities
Finance lease liabilities are payable as follows:
January 1, 2012
January 2, 2011
Present
Future
value of
Future
Present value
minimum
minimum
minimum
of minimum
lease
Interest
lease
lease
Interest
lease
million
payments
portion
payments
payments
portion
payments
Within one year
165
98
67
154
95
59
Between one and five years
643
331
312
604
331
273
After five years
1,195
349
846
1,193
370
823
Total
2,003
778
1,225
1,951
796
1,155
Current portion finance lease liabilities (see Note 26) 67 59
Non-current portion finance lease liabilities 1,158 1,096
Finance lease liabilities are principally for buildings. Terms range from 10 to 25 years and include renewal options if it is reasonably certain,
at the inception of the lease, that they will be exercised. At the time of entering into finance lease agreements, the commitments are
recorded at their present value using the interest rate implicit in the lease, if this is practicable to determine; if not, the operating company-
specific interest rate applicable for long-term borrowings is used. As of January 12012, the finance lease liabilities are recorded at their
present value at an average interest rate of 8.4 percent (January 2, 20118.7 percent).
