30 Financial risk management and financial instruments (continued)
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Ahold Annual Report 2012 125
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
Financial instruments
Fair values of financial instruments
The following table presents the fair values of financial instruments, based on Ahold's categories of financial instruments, including current portions, compared to the carrying amounts at which
these instruments are included on the balance sheet:
December 30, 2012
January 1, 2012
Carrying
Fair
Carrying
Fair
million
amount
value
amount
value
Loans receivable
38
54
36
51
Accounts receivable
800
800
770
770
Reinsurance assets
109
109
103
103
Total loans and receivables
947
963
909
924
Cash and cash equivalents
1,886
1,886
2,438
2,438
Short-term deposits held to maturity
154
154
Derivatives
282
282
381
381
Available for sale
4
4
3
3
Total financial assets
3,119
3,135
3,885
3,900
Notes (1,056) (1,348) (1,509) (1,767)
Other loans
(5)
(4)
(3)
(3)
Financing obligations
(381)
(573)
(399)
(545)
Mortgages payable
(11)
(12)
(7)
(8)
Finance lease liabilities
(1,254)
(1,731)
(1,225)
(1,683)
Cumulative preferred financing shares
(497)
(535)
(497)
(544)
Dividend cumulative preferred financing shares
(24)
(24)
(24)
(24)
Accounts payable
(2,667)
(2,667)
(2,436)
(2,436)
Short-term borrowings
(42)
(42)
(41)
(41)
Interest payable
(25)
(25)
(45)
(45)
Reinsurance liabilities
(121)
(121)
(108)
(108)
Other
(2)
(2)
(3)
(3)
Total financial liabilities at amortized cost
(6,085)
(7,084)
(6,297)
(7,207)
Derivatives
(177)
(177)
(90)
(90)
Total financial liabilities
(6,262)
(7,261)
(6,387)
(7,297)
Of Ahold's categories of financial instruments, only derivatives and assets available for sale are measured at fair value using Level 2 inputs. These are inputs other than quoted prices that are
observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of derivative instruments is calculated based on discounted expected future
cash flows. Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates which match the maturity of the contracts.
Interest rate swaps are measured at the present value of expected future cash flows and discounted based on the applicable yield curves derived from quoted interest rates.
