17 Receivables (continued)
18 Other current financial assets
-
19 Cash and cash equivalents
Ahold Annual Report 2012 105
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
The concentration of credit risk with respect to receivables is limited, as the Company's customer base and vendor base are large and unrelated. The Company does not hold any significant
collateral on its receivables. Management believes there is no further credit risk provision required in excess of the normal individual and collective impairment, based on the aging analysis
performed as of December 30, 2012. For more information about credit risk, see Note 30.
The changes in the provision for impairment were as follows:
million
2012
2011
Beginning of the year
(16)
(18)
Additions
(14)
(15)
Used
7
7
Released to income
6
10
End of the year
(17)
(16)
December 30,
January 1,
million
2012
2012
Short-term deposits
154
Reinsurance assets - current portion (see Note 15)
41
39
Other
2
143
Total other current financial assets
43
336
As per January 1, 2012, short-term deposits included cash time deposits. These deposits were fully collateralized, mainly by equity securities and government and sovereign bonds.
Other mainly consists of the current portion of the derivative financial instruments. As of January 1, 2012, €141 million (cash flow hedges) related to the EUR 600 million notes paid in
March 2012.
For more information on financial instruments and fair values, see Note 30.
December 30, January 1,
million 2012 2012
Cash in banks and cash equivalents 1,547 2,090
Cash on hand 339 348
Total cash and cash equivalents 1,886 2,438
Of the cash and cash equivalents as of December 30, 2012, €22 million was restricted (January 1, 2012: €31 million). This primarily consisted of cash held for insurance purposes for U.S.
workers' compensation and general liability programs, and cash held in escrow accounts mainly related to construction activities.
Ahold's banking arrangements allow the Company to fund outstanding checks when presented to the bank for payment. This cash management practice may result in a net cash book
overdraft position, which occurs when the total issued checks exceed available cash balances within the Company's cash concentration structure. Such book overdrafts are classified in accounts
payable and amounted to €170 million and €181 million as of December 30, 2012, and January 1, 2012, respectively. No right to offset with other bank balances exists for these book
overdraft positions.
