Notes to the consolidated financial statements
123
30 Financial risk management and financial instruments (continued)
Liquidity risk
Year ended January 3, 2016
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Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2015
Ahold manages its liquidity risk on a consolidated basis with cash provided from operating activities being the primary source of liquidity, in addition to debt and equity issuances in the capital markets, committed and
uncommitted credit facilities, letters of credit under credit facilities, and available cash. Ahold manages short-term liquidity based on projected cash flows over rolling periods of six months. As of January 3, 2016, €984 million
of our committed credit facility remained available for working capital and general corporate purposes and €2,354 million of cash balances (including short-term deposits and similar instruments) are available to manage the
Company's liquidity.
Based on the current operating performance and liquidity position, the Company believes that cash provided by operating activities and available cash balances will be sufficient for working capital, capital expenditures,
interest payments, dividends and scheduled debt repayment requirements for the next 12 months and the foreseeable future,
The following tables summarize the expected maturity profile of the Company's financial liabilities (including derivatives) as of January 3, 2016, and December 28, 2014, respectively, based on contractual
undiscounted payments,
All financial liabilities held at the reporting date, for which payments are already contractually agreed, have been included. Amounts in foreign currency have been translated using the reporting date closing rate. Cash flows
arising from financial instruments carrying variable interest payments have been calculated using the forward curve interest rates as of January 3, 2016, and December 28, 2014, respectively. Refer to Note 34 for the liquidity
risk related to guarantees.
Contractual cash flows
Between
Net carrying
Withir
1 and 5
After
Total
million
amount
1 year
years
5 years
Non-derivative financial liabilities
Notes
(1,144)
(75)
(565)
(1,119)
(1,759)
Other loans
(3)
(2)
(2)
(4)
Financing obligations
(397)
(52)
(194)
(217)
(463)
Mortgages payable
(9)
(1)
(4)
(7)
(12)
Finance lease liabilities
(1,400)
(209)
(790)
(1,110)
(2,109)
Cumulative preferred financing shares1
(497)
(22)
(66)
(18)
(106)
Short-term borrowings
(52)
(52)
(52)
Reinsurance liabilities
(221)
(78)
(128)
(22)
(228)
Accounts payable
(2,800)
(2,800)
(2,800)
Other
(61)
(16)
(7)
(56)
(79)
Derivative financial liabilities
Cross-currency swaps and foreign currency derivatives (210) (18) (69) (202) (289)
1 Cumulative preferred financing shares have no maturity. For the purpose of the table above, the future dividend cash flows were calculated until the coupon reset date of each of the four share-series (2016, 2018, 2020 and 2023). No liability redemption was assumed. Actual cash flows may differ, see
Note 22.
