33 Operating leases (continued)
34 Commitments and contingencies
Ahold Annual Report 2012 135
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
The annual costs of Ahold's operating leases from continuing operations, net of sublease income, are as follows:
million
2012
2011
Minimum rentals
689
635
Contingent rentals
28
25
Sublease income
(106)
(100)
Total
611
560
In addition to the operating lease commitments disclosed above, Ahold has signed lease agreements for properties under development of which it has not yet taken possession. The total future
minimum lease payments for these agreements amount to approx'mately €1 95 million (2011€233 million). These lease contracts are subject to conditions precedent to the rent
commencement date.
Ahold as lessor
Ahold rents out its investment properties (mainly retail units in shopping centers containing an Ahold store) and also (partially) subleases various other properties that are leased by Ahold under
operating leases. The aggregate amounts of the related future minimum lease and sublease payments receivable under non-cancelable lease contracts are as follows:
December 30,
January 1,
million
2012
2012
Within one year
180
174
Between one and five years
493
491
After five years
417
421
Total
1,090
1,086
The total contingent rental income recognized during the year on all leases where Ahold is the lessor was €3 million (2011€4 million).
Capital investment commitments
As of December 30, 2012, Ahold had outstanding capital investment commitments for property, plant and equipment and investment property, and for intangible assets of approximately
€124 million and €3 million, respectively (January 12012: €1 33 million and €1 million, respectively). Ahold's share in the capital investment commitments of its unconsolidated joint ventures
ICA and JMR amounted to €38 million as of December 30, 2012 (January 1, 2012: €30 million).
Purchase commitments
Ahold enters into purchase commitments with vendors in the ordinary course of business. Ahold has purchase contracts with some vendors for varying terms that require Ahold to buy services
and predetermined volumes of goods and goods not-for-resale at fixed prices. As of December 30, 2012, the Company's purchase commitments were approximately €1,509 million
(January 1, 2012: €2,424 million). The significant decrease in 2012 is due to the expiry of a single purchase commitment with a three-year term. Not included in the purchase commitments
are those purchase contracts for which Ahold has received advance vendor allowances, such as up-front signing payments in consideration of its purchase commitments. These contracts
generally may be terminated without satisfying the purchase commitments upon the repayment of the unearned portions of the advance vendor allowances. The unearned portion of these
advance vendor allowances is recorded as a liability on the balance sheet.
