Notes to the
consolidated
financial statements
continued
30 Financial risk management and financial instruments continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Assets
1
85
336
(18)
29
340
,4
3o9
340
298
338
340
(210)
299
858
338
676
Within lyear
Within 1 year
Between 1 to 5 years
Between 1 to 5 years
After 5 years
15
283
293
557
Derivatives
Fair values, notional amounts, maturities and the qualification of derivative financial instruments for accounting purposes are presented in the
table below:
Interest rate swaps3
Cross-currency swaps3,4
Interest rate swap3
Cross-currency swap3,'
Cross-currency swaps
Total derivatives - no hedge accounting treatment
Total derivative financial instruments
January 1, 2017
Fair value
Liabilities
(45)
(63)
(63)
216
773
January 3, 2016
Fair value
Liabilities
(210)
(210)
million
Forward foreign currency contracts1
Cross-currency swap2
Total cash flow hedges
Maturity
Within 1 year
After 5 years
Assets
1
Notional
amount
85
Notional
amount
83
253
1 Foreign currency forwards designated as cash flow hedges are used to hedge the future cash flows denominated in foreign currencies.
2 Cross-currency swap accounted for as a cash flow hedge used to hedge currency and cash flow risk on floating debt denominated in foreign currency, related to JPY 33,000 million notes
(see Note 21 for additional information). The yen-euro currency swap was unwound on November 15, 2016.
3 Interest rate swap and cross-currency swap relate to the same notional amount of GBP 250 million.
4 As of January 1, 2017, the valuation of the GBP 250 million cross-currency swap, related to the GBP 250 million notes (see Note21 for additional information) includes the impact of the
mark-to-market valuation of an embedded credit clause in the amount of nil. The volatility in the financial markets resulted in a gain of nil related to this credit clause in the year 2016 (2015:
nil). Ahold Delhaize is required under these swap contracts to redeem the U.S. dollar notional amount through semi-annual installments that commenced in September 2004. $342 million
has been paid down as of January 1, 2017.
