Notes to the consolidated financial statements
103
22 Other non-current financial liabilities (continued)
Finance lease liabilities
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
Finance lease liabilities are payable as follows:
December 28, 2014
December 29, 2013
Present
Present
Future
value of
Future
value of
minimum
minimum
minimum
minimum
ease
Interest
lease
lease
Interest
lease
million
payments
portion
payments
payments
portion
payments
Within one year
179
91
88
162
87
75
Between one and five years
681
284
397
629
281
348
After five years
1,003
275
728
1,011
274
737
Total
1,863
650
1,213
,802
642
,160
Continuing operations 1,863 650 1,213 1,779 636 1,143
Discontinued operations - - - 23 6 17
Total 1,863 650 1,213 1,802 642 1,160
Current portion finance lease liabilities (see Note 26) 88 74
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 1,125 1,069
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 28, 2014, the finance lease liabilities are recorded at their present value at a weighted average interest rate of 77% (December 29, 2013: 78%).
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.
During 2014, interest expense on finance lease liabilities was €90 million (2013: €95 million), of which nil related to discontinued operations (2013: €2 million). Total future minimum sublease income expected to be received
under non-cancelable subleases as of December 28, 2014, is €107 million (December 29, 2013: €116 million). The total contingent rent expense recognized during the year on finance leases was €2 million income
(2013: €4 million expense).