H
HaEl
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41
Financial review (continued)
Financial position
billion
Ahold at a glance Our strategy
Our performance
Governan
Financials
Investors
Ahold Annual Report 2013
Ahold's consolidated balance sheets as of December 29, 2013,
as follows:
and December 30, 2012, are summarized
million
December 29,
2013
of
total
December 30,
20121
of
total
Property, plant and equipment
5,712
37.7%
6,038
41.4%
Intangible assets
1,563
10.3%
1,569
10.8%
Pension assets
5
0.0%
23
0.2%
Other non-current assets
1,594
10.5%
2,526
17.3%
Cash, cash equivalents and short-term
deposits and similar instruments
3,963
26.2%
1,886
13.0%
Inventories
1,450
9.6%
1,492
10.2%
Other current assets
855
5.7%
1,038
7.1%
Total assets
15,142
100.0%
14,572
100.0%
Equity
6,520
43.1%
5,146
35.3%
Non-current portion of long-term debt
2,873
19.0%
3,107
21.3%
Pensions and other post-
employment benefits
348
2.3%
643
4.4%
Other non-current liabilities
1,259
8.3%
1,249
8.6%
Short-term borrowings and current portion
of long-term debt
148
1.0%
139
1.0%
Payables
2,387
15.7%
2,667
18.3%
Other current liabilities
1,607
10.6%
1,621
11.1%
Total equity and liabilities
15,142
100.0%
14,572
100.0%
1 Including restatements, see Note 3 to the consolidated financial statements for an explanation of the restatements.
Property, plant and equipment decreased by €326 million as capital expenditures were more than offset by
depreciation, impairments and the weakening of the U.S. dollar against the euro.
For the total Group, our defined benefit plans showed a net deficit of €343 million at year-end 2013
compared to a net deficit of €620 million at year-end 2012. This improvement was primarily due to a 0.8%
increase in the discount rate in the United States, a decrease in the future salary increase assumption of
0.5% in both the Dutch and U.S. plans, a removal of disbursement costs from the Dutch plans' defined
benefit obligations (€102 million), as well as positive investment results on the plan assets and cash
contributions made to the plans.
A significant number of union employees in the
United States are covered by multi-employer
plans. With the help of external actuaries, we have
updated the most recent available information
that these plans have provided (generally as
of December 31, 2012) for market trends and
conditions through the end of 2013. We estimate
our proportionate share of the total net deficit
to be $662 million (€481 million) at year-end
2013 (2012: $967 million or €732 million).
The decreased exposure to U.S. multi-employer
pension plans is partly the result of a settlement
with the New England Teamsters and Trucking
Industry Pension Fund in 2013. These amounts are
not recognized on our balance sheet. While this
is our best estimate based on the information
available to us, it is imprecise and not necessarily
reliable. For more information see Note 23 to the
consolidated financial statements.
A decrease in other non-current assets primarily
reflects the divestment of ICA in 2013.
Equity increased by €1,374 million, mainly
as a result of the current year's net income,
which included a gain on the sale of ICA of
€1,751 million, partially offset by the dividend
payment related to 2012 of €457 million
and the €768 million share buyback on the
€2 billion program.
In 2013, gross debt decreased by €225 million
to €3.0 billion, primarily due to the weakening of
the U.S. dollar against the euro and the regular
payments on finance lease liabilities. Ahold's net
debt was negative €942 million as of December
29, 2013, down €2,302 million compared to last
year. This reflects both our strong cash generation
and the receipt of proceeds from the divestment of
ICA, including a dividend, partly offset by our share
buyback program and common stock dividend.
Gross and net debt
3.7
3.6
3.7
0.7
0.7
1.1
3.0
2.8
2.6
2012
2013
2009 2010 2011
Gross debt Net debt
Cash, short-term deposits and similar instruments
Net debt does not include our commitments
under operating lease contracts, which, on an
undiscounted basis, amounted to €5.3 billion at
year-end 2013.
These off-balance sheet commitments impact
our capital structure. The present value of these
commitments is added to net debt to measure our
leverage against EBITDAR (i.e. underlying operating
income before depreciation, amortization and
gross rent expense). The ratio of net lease-adjusted
debt to EBITDAR stood at 0.9 times at year-end
2013, down from 1.8 times last year, distorted by a
temporary increase in cash balance. Under normal
conditions we expect to operate at around 2
times, which is consistent with our commitment to
maintaining an investment grade credit rating.
