10 Current liabilities
-
-
11 Derivatives
-
Ahold Annual Report 2012 147
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the parent company
financial statements
million
December 30,
2012
January 1,
2012
Short-term borrowings from subsidiaries
3,920
4,1'
Income taxes payable
9
Dividend cumulative preferred financing shares
24
24
Payables to subsidiaries
2
3
Payables to joint ventures
2
2
Interest payable
1
1
Hedging derivatives intercompany
143
Other current liabilities
24
43
Total current liabilities
3,973
4,336
The current liabilities are liabilities that mature within one year. In 2011, €141 million of hedging derivatives intercompany was reclassified to current liabilities from other non-current liabilities
(see Note 11 to these parent company financial statements).
The parent company regularly enters into derivative contracts with banks to hedge foreign currency and interest exposures of the parent company or its subsidiaries. Derivative contracts that are
entered into to hedge exposures of subsidiaries are generally mirrored with intercompany derivative contracts with the subsidiaries that are exposed to the hedged risks on substantially identical
terms as the external derivative contracts. In these parent company financial statements, the external derivative contracts and the intercompany derivative contracts are presented separately on
the balance sheet. In situations where the external derivative contract qualifies for hedge accounting treatment in the consolidated financial statements, the external derivative contract and the
intercompany derivative contract are presented as "Hedging derivatives external" and "Hedging derivatives intercompany," respectively. In situations where the external derivative contract does
not qualify for hedge accounting treatment in the consolidated financial statements, the external derivative contract and the intercompany derivative contract are presented as "Other derivatives
external" and "Other derivatives intercompany," respectively.
Fair value movements of external derivative contracts that were entered into to hedge the exposures of subsidiaries are recorded directly in income, where they effectively offset the fair value
movements of the mirroring intercompany derivatives that are also recorded directly in income. Details of these derivative contracts, other financial instruments and the parent company's risk
management strategies are included in Note 30 to the consolidated financial statements and in the tables presented below.
Non-current hedging derivatives - assets
2012
2011
million
Total
Total
Beginning of year
239
347
Reclassification to current assets
(141)
Fair value changes
41
33
End of year
280
239
