14 Investments in joint ventures
-
15 Other non-current financial assets
Ahold Annual Report 2012 103
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
Ahold owns 60% of the outstanding common shares of ICA AB (ICA), a food retailer operating in Sweden, Norway and the Baltic states. The 60% shareholding does not entitle Ahold to
unilateral decision-making authority over ICA due to the shareholders' agreement with the joint venture partner, which provides that strategic, financial and operational decisions will be made
only on the basis of mutual consent. On the basis of this shareholders' agreement, the Company concluded that it has no control over ICA and, consequently, does not consolidate ICA.
Ahold has a 49% stake in JMR - Gestao de Empresas de Retalho, SGPS. S.A. (JMR). JMR operates food retail stores in Portugal under the brand name Pingo Doce.
The Company's share in income of ICA and JMR were €73 million (2011: €122 million) and €5 million (201 1: €16 million), respectively. In 2012, ICA's net income was negatively impacted
by a tax expense of €150 million (Ahold's share: €90 million) related to the denial by the Swedish Tax Agency of certain interest deductions made in 2004-2008. For more details on ICA's tax
claim, see Note 34. For condensed financial information on ICA and JMR, see Note 6.
Ahold is also a partner in various smaller joint ventures. Changes in investments in joint ventures are as follows:
million
2012
2011
Beginning of the year
1,087
1,072
Share in income of joint ventures
81
141
Dividend
(157)
(130)
Share of other comprehensive loss
(4)
(3)
Investments classified from (to) held for sale or sold
(3)
Other changes in equity of joint ventures
12
2
Exchange rate differences
31
5
End of the year
1,047
1,087
million
December 30,
2012
January 1,
2012
Derivative financial instruments
280
239
Defined benefit asset
662
498
Reinsurance assets
68
64
Loans receivable
35
32
Other
14
26
Total other non-current financial assets
1,059
859
For more information on derivative financial instruments and fair values, see Note 30.
The defined benefit asset represents defined benefit pension plans for which the present value of the defined benefit obligations, less the fair value of plan assets, adjusted for unrecognized
actuarial gains or losses, results in a net asset. For more information on defined benefit plans, see Note 23.
Of the non-current loans receivable, €12 million matures between one and five years and €23 million after five years (January 12012: €8 million between one and five years and €24 million
after five years). The current portion of loans receivable of €3 million is included in other receivables (January 12012: €4 million).
Under the self-insurance program, part of the insurance risk is ceded under a reinsurance treaty, which is a pooling arrangement between unrelated companies. At the same time, Ahold
assumes a share of the reinsurance treaty risks that is measured by Ahold's participation percentage in the treaty. The participation percentage is the ratio of premium paid by Ahold to the total
premium paid by all treaty members. In connection with this pooling arrangement, the Company recognizes reinsurance assets and reinsurance liabilities (see also Notes 18, 22 and 26)
on its balance sheet. There were no significant gains or losses related to this pooling arrangement during 2012 or 2011.
