Notes to the
consolidated
financial statements
continued
19 Cash and cash equivalents
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
I Balances for the prior year have been adjusted to align with the current year classification.
Ahold Delhaize’s banking arrangements allow the Company to fund outstanding checks when presented to the bank for payment. This cash
management practice may result in a net cash book overdraft position, which occurs when the total issued checks exceed available cash balances
within the Company’s cash concentration structure. Such book overdrafts are classified in accounts payable and amounted to €217 million
and €216 million as of January 1, 2017, and January 3, 2016, respectively. No right to offset with other bank balances exists for these book
overdraft positions.
Cash and cash equivalents include €1,184 million (January 3, 2016: nil) held under a notional cash pooling arrangement. This cash amount was fully
offset by an identical amount included under Other current financial liabilities. From an operational perspective, the balances in the cash pool are
netted. However, in accordance with the guidance of IAS 32 regarding the offsetting of debit and credit balances for financial reporting purposes,
these balances have to be presented on a gross basis on the balance sheet (see Notes 26 and 30).
Of the cash and cash equivalents as of January 1, 2017, €42 million was restricted (January 3, 2016: €7 million) and consisted of collateral in
connection with third-party money transfer services provided at our stores (€29 million) as well as cash held in escrow accounts mainly related to
pending litigation, obligations related to business disposals and construction activities.
million
Cash in banks and cash equivalents
Cash on hand
Total cash and cash equivalents
January 1,
2017
3,718
314
4,032
January 3,
2016'
1,557
269
1,826
