H
fifillslE3
119
22 Other non-current financial liabilities
Our strategy
Our performance
Governan
Financials
Investors
Ahold Annual Report 2013
million
December 29,
2013
December 30,
2012
Finance lease liabilities
1,069
1,179
Cumulative preferred financing shares
497
497
Derivative financial instruments
182
175
Reinsurance liabilities
100
76
Other
34
3
Total other non-current financial liabilities
1,882
1,930
For more information on derivative financial instruments and fair values, see Note 30.
The Company recognizes reinsurance liabilities on its balance sheet in connection with a pooling arrangement between unrelated companies. For more information, see Note 15.
Other mainly consists of a pretax liability for the discounted amount of the remaining settlement liability of $33 million (€25 million) relating to an agreement with the New England Teamsters
and Trucking Industry Pension Fund (NETTI) to settle Stop Shop's pension liabilities in the fund, see Note 23.
Finance lease liabilities
Finance lease liabilities are payable as follows:
million
December 29, 2013
December 30, 2012
Present
Present
Future
value of
Future
value of
minimum
minimum
minimum
minimum
lease
Interest
lease
lease
Interest
lease
payments
portion
payments
payments
portion
payments
Within one year 162 87 75 172 97 75
Between one and five years
629
281
348
665
317
348
After five years
1,011
274
737
1,145
314
831
Total
1,802
642
1,160
1,982
728
1,254
Current portion finance lease liabilities (see Note 26)
74
75
Current portion finance lease liabilities included in "liabilities
related to assets held for sale" (see Note 5)
1
Non-current portion finance lease liabilities included in
"liabilities related to assets held for sale" (see Note 5)
16
Non-current portion finance lease liabilities
1,069
1,179
Finance lease liabilities are principally for buildings. Terms range primarily from 10 to 25 years and include renewal options if it is reasonably certain, at the inception of the leases, that they will
be exercised. At the time of entering into a finance lease agreement, the commitment is recorded at its present value using the interest rate implicit in the lease, if this is practicable to determine;
if not, the operating company-specific interest rate applicable for long-term borrowings is used. As of December 29, 2013, the finance lease liabilities are recorded at their present value at an
average interest rate of 7.8% (December 30, 2012: 8.0%).
Certain store leases provide for contingent additional rentals based on a percentage of sales and consumer price indices. Substantially all of the store leases have renewal options for additional
terms. None of Ahold's leases impose restrictions on Ahold's ability to pay dividends, incur additional debt or enter into additional leasing arrangements.
