24 Provisions
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Ahold Annual Report 2012
117 Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
The table below specifies the changes in total provisions (current and non-current):
million
Self-
insurance
program
Loyalty a
programs
Claims
nd legal
disputes
Restructuring
Onerous
contracts
Other
Total
As of January 12012
Current portion
102
12
103
13
18
5
253
Non-current portion
404
39
41
41
89
50
664
Carrying amount
506
51
1 44
54
1 07
55
917
Year ended December 30, 2012
Additions charged to income
138
17
8
1
10
9
183
Used during the year
(109)
(18)
(22)
(9)
(29)
(4)
(191)
Brought in through business combinations
5
5
Released to income
(1)
(3)
(6)
(3)
(11)
(2)
(26)
Interest accretion
3
2
1
2
4
1
13
Effect of changes in discount rates
1
1
2
2
6
Other movements
3
(2)
10
11
Exchange rate differences
(12)
(3)
(1)
(16)
Closing carrying amount
529
49
120
46
97
61
902
As of December 30, 2012
Current portion
105
12
101
10
22
6
256
Non-current portion
424
37
19
36
75
55
646
Maturities of total provisions as of December 30, 2012, are as follows:
Self- Claims
insurance Loyalty and legal Onerous
million program programs disputes Restructuring contracis Other Total
Amount due within one year 105 12 101 10 22 6 256
Amount due between two and five years
253
37
17
21
45
12
385
Amount due after five years
171
2
15
30
43
261
Total 529 49 120 46 97 61 902
Self-insurance program
Ahold is self-insured for certain potential losses, mainly relating to general liability, vehicle liability, workers' compensation and property losses relating to its subsidiaries. The maximum self-
insurance retention per occurrence, including defense costs, is $2 million (€1 million) for general liability, $5 million (€4 million) for commercial vehicle liability, $5 million (€4 million) for
workers' compensation, and effective as of December 1, 2012, $17.5 million (€13 million) for property losses. For property losses the maximum self-insurance retention per occurrence,
including defense costs, was $8 million (€6 million) before December 12012.
Measurement of the provision for the self-insurance program requires significant estimates. These estimates and assumptions include an estimate of claims incurred but not yet reported,
historical loss experience, projected loss development factors, estimated changes in claim reporting patterns, claim settlement patterns, judicial decisions and legislation.
