Notes to the parent company financial statements
150
13 Derivatives
Non-current hedging derivatives - assets
Non-current hedging derivatives - liabilities
14 Related party transactions
Ahold at a glance
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Governance
Financials
Ahold
Annual Report 2014
The parent company regularly enters into derivative contracts with banks to hedge foreign currency and interest exposures of the parent company or its subsidiaries. Derivative contracts that are entered into to hedge exposures
of subsidiaries are generally mirrored with intercompany derivative contracts with the subsidiaries that are exposed to the hedged risks on substantially identical terms as the external derivative contracts. In these parent company
financial statements, the external derivative contracts and the intercompany derivative contracts are presented separately on the balance sheet. In situations where the external derivative contract qualifies for hedge accounting
treatment in the consolidated financial statements, the external derivative contract and the intercompany derivative contract are presented as "Hedging derivatives external" and "Hedging derivatives intercompany," respectively.
In situations where the external derivative contract does not qualify for hedge accounting treatment in the consolidated financial statements, the external derivative contract and the intercompany derivative contract are presented
as "Other derivatives external" and "Other derivatives intercompany," respectively.
Fair value movements of external derivative contracts that were entered into to hedge the exposures of subsidiaries are recorded directly in income, where they effectively offset the fair value movements of the mirroring
intercompany derivatives that are also recorded directly in income. Details of these derivative contracts, other financial instruments and the parent company's risk management strategies are included in Note 30 to the
consolidated financial statements and in the tables presented below.
million
2014
2013
Beginning of year
278
280
Fair value changes
32
(2)
End of year
310
278
million
Hedging
derivatives
external
Other
derivatives
intercompany
2014
2013
Beginning of year
182
278
460
455
Fair value changes
69
32
101
5
End of year
251
310
561
460
Fair value changes include exchange rate differences and installments paid on a cross-currency swap that was entered into on behalf of one of the parent company's subsidiaries.
Koninklijke Ahold N.V. has entered into arrangements with a number of its subsidiaries and affiliated companies in the course of its business. These arrangements relate to service transactions and financing agreements and
were conducted at market prices.
