H
KÜII3E3
9 Net financial expenses (continued)
10 Income taxes
(93)
Our strategy Our performance j Governance Investors
Ahold Annual Report 2013 101
Foreign exchange results on financial assets and liabilities, including amounts released from the cash flow hedging reserve, are presented as part of net financial expenses, within losses on
foreign exchange. The losses on foreign exchange in 2013 mainly resulted from the foreign exchange translation of the remaining GBP 250 million of the original GBP 500 million notes.
Foreign exchange results arising from the purchase of goods for sale or goods and services consumed in Ahold's operations are included in cost of sales or in the appropriate element of
operating expenses, respectively. In 2013, the Company recorded a net exchange loss (including impact of foreign exchange hedging instruments) of €1 million in operating income (2012:
loss of €2 million).
The fair value losses in 2013 on financial instruments primarily resulted from the derivatives related to the remaining GBP 250 million notes (an interest rate and a cross-currency swap), which
do not qualify for hedge accounting treatment, and were mainly caused by the US dollar interest rate and currency rate movements.
For more information on financial instruments, see Note 30.
"Other" included in "Other financial expenses" in 2013 primarily comprised of €1 1 million relating to the change in discount rate used for a multi-employer pension plan withdrawal provision.
Income taxes on continuing operations
The following table specifies the current and deferred tax components of income taxes on continuing operations in the income statement:
2012
million
2013
(restated)1
Current income taxes
Domestic taxes (the Netherlands)
(103)
(76)
Foreign taxes
United States
(26)
(14)
Europe - Other
4
(21)
Total current tax expense
(125)
(111)
Deferred income taxes
Domestic taxes (the Netherlands)
(18)
(61)
Foreign taxes
United States
(18)
Europe - Other
8
(2)
Total deferred tax expense
(28)
(156)
Total income taxes on continuing operations
(153)
(267)
1 See Note 3 for an explanation of the restatements.
