H
fifillslE3
30 Financial risk management and financial instruments (continued)
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Our strategy Our performance Governance Investors
Ahold Annual Report 2013 139
Financial instruments
Fair values of financial instruments
The following table presents the fair values of financial instruments, based on Ahold's categories of financial instruments, including current portions, compared to the carrying amounts at which
these instruments are included on the balance sheet:
December 29, 2013
December 30, 2012
million
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Loans receivable
37
44
38
54
Trade and other (non) current receivables
666
666
800
800
Reinsurance assets
136
136
109
109
Total loans and receivables
839
846
947
963
Cash and cash equivalents
2,496
2,496
1,886
1,886
Short-term deposits and similar instruments
1,467
1,467
Derivatives
284
284
282
282
Available for sale
4
4
4
4
Total financial assets
5,090
5,097
3,119
3,135
Notes
(970)
(1,169)
(1,056)
(1,348)
Other loans
(3)
(4)
(5)
(4)
Financing obligations1
(346)
(356)
(381)
(420)
Mortgages payable
(10)
(12)
(11)
(12)
Finance lease liabilities
(1,143)
(1,468)
(1,254)
(1,731)
Cumulative preferred financing shares
(497)
(539)
(497)
(535)
Dividend cumulative preferred financing shares
(24)
(24)
(24)
(24)
Accounts payable
(2,387)
(2,387)
(2,667)
(2,667)
Short-term borrowings
(52)
(52)
(42)
(42)
Interest payable
(24)
(24)
(25)
(25)
Reinsurance liabilities
(152)
(152)
(121)
(121)
Other
(48)
(54)
(2)
(2)
Total financial liabilities at amortized cost
(5,656)
(6,241)
(6,085)
(6,931)
Derivatives
(182)
(182)
(177)
(177)
Total financial liabilities
(5,838)
(6,423)
(6,262)
(7,108)
1 The fair value of financing obligations as of December 30, 2012, includes a decrease of €153 million in order to correct the amount previously disclosed in Ahold's Annual Report 2012.
Of Ahold's categories of financial instruments, only derivatives, assets available for sale and reinsurance assets (liabilities) are measured and recognized on the balance sheet at fair value.
These fair value measurements are categorized within Level 2 of the fair value hierarchy. The Company uses inputs other than quoted prices that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices). The fair value of derivative instruments is measured by using either a market or income approach (mainly present value techniques).
Foreign currency forward contracts are measured using quoted forward exchange rates and yield curves derived from quoted interest rates that match the maturity of the contracts. Interest rate
swaps are measured at the present value of expected future cash flows. Expected future cash flows are discounted by using the applicable yield curves derived from quoted interest rates.
