Notes to the consolidated financial statements
135
33 Operating leases (continued)
Ahold as lessor
34 Commitments and contingencies
Capital investment commitments
Purchase commitments
Contingent liabilities
-
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
Ahold rents out its investment properties (mainly retail units in shopping centers containing an Ahold store) and also (partially) subleases various other properties that are leased by Ahold under operating leases. The aggregate
amounts of the related future minimum lease and sublease payments receivable under non-cancelable lease contracts are as follows:
December 28,
December 29,
million
2014
2013
Within one year
197
180
Between one and five years
514
474
After five years
323
353
Total
1,034
1,007
The total contingent rental income recognized during the year on all leases where Ahold is the lessor was €2 million (2013: €2 million).
As of December 28, 2014, Ahold had outstanding capital investment commitments for property, plant and equipment and investment property, and for intangible assets of approximately €119 million and €8 million,
respectively (December 29, 2013: €126 million and €6 million, respectively). Ahold's share in the capital investment commitments of its unconsolidated joint venture JMR amounted to €6 million as of December 28, 2014
(December 29, 2013: €6 million).
Ahold enters into purchase commitments with vendors in the ordinary course of business. Ahold has purchase contracts with some vendors for varying terms that require Ahold to buy services and predetermined volumes of
goods and goods not-for-resale at fixed prices. As of December 28, 2014, the Company's purchase commitments were approximately €859 million (December 29, 2013: €1,220 million). The decrease in 2014 is primarily
due to the expiry of a single purchase commitment with a three-year term. Not included in the purchase commitments are those purchase contracts for which Ahold has received advance vendor allowances, such as up-front
signing payments in consideration of its purchase commitments. These contracts generally may be terminated without satisfying the purchase commitments upon the repayment of the unearned portions of the advance vendor
allowances. The unearned portion of these advance vendor allowances is recorded as a liability on the balance sheet.
Guarantees
Guarantees to third parties issued by Ahold can be summarized as follows:
December 28,
December 29,
millior
2014
2013
Lease guarantees
499
491
Lease guarantees backed by letters of credit
68
67
Corporate and buyback guarantees
34
46
Loan guarantees
3
Total 601 607
The amounts included in the table above are the maximum undiscounted amounts the Group could be forced to settle under the arrangement for the full guaranteed amount, if that amount is claimed by the counterparty to the
guarantee. As part of the divestment of U.S. Foodservice in 2007 Ahold received an irrevocable standby letter of credit for $216 million (€163 million), which was reduced to $83 million (€68 million) as of December 28, 2014
(2013: $93 million (€67 million)).
