Notes to the
consolidated
financial statements
continued
2! Loans and credit facilities continued
22 Other non-current financial liabilities
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
For more information on derivative financial instruments and fair values see Note 30.
Credit facilities
Ahold Delhaize has access to a €1.0 billion committed, unsecured, multi-currency and syndicated credit facility that was amended and extended in
February 2015, whereby the Company reduced the size of the credit facility from €1.2 billion to €1.0 billion (providing for the issuance of $275 million
in letters of credit). At the same time, the facility was extended to 2020 with two potential extensions after 12 and 24 months that would take the
facility to 2021 and 2022 respectively. In February 2016, the first extension was successfully agreed with the lenders. In February 2017, the Company
requested that the lenders consent to a second extension. The credit facility contains customary covenants and is subject to a financial covenant
that requires Ahold Delhaize, in the event that its corporate rating from Standard Poor’s and Moody’s is lower than BBB Baa2, respectively, not
to exceed a maximum leverage ratio of 4.0:1. During 2016 and 2015, the Company was in compliance with these covenants. As of January 1, 2017,
there were no outstanding borrowings under the facility.
As of January 1, 2017, a standby letters of credit facility for a total amount of $226 million (€214 million) was issued and fully drawn to guarantee
self-insurance-related obligations.
Ahold Delhaize also has access to a total of €341 million in uncommitted credit facilities to cover working capital requirements, issuance of
guarantees and letters of credit, of which €72 million was utilized as of January 1, 2017.
The fair values of financial instruments, corresponding derivatives, and the foreign exchange and interest rate risk management policies applied
by Ahold Delhaize are disclosed in Note 30.
The Company has a Euro Medium Term Note (EMTN) program that had an aggregate of €293 million of outstanding notes as of January 1, 2017.
The notes issued under the program include the remaining outstanding balance of GBP 500 million notes, maturing in 2017. The notes issued under
the EMTN program contain customary restrictive covenants. During 2016, Ahold Delhaize was in compliance with these covenants.
The Company recognizes reinsurance liabilities on its balance sheet in connection with a pooling arrangement between unrelated companies (see
Note 15).
Other mainly consists of a pre-tax liability for the discounted amount of the remaining settlement liability of $37 million (€35 million), relating to a
2013 agreement with the New England Teamsters and Trucking Industry Pension Fund (NETTI) to settle Stop Shop’s pension liabilities in the fund,
and financial guarantees relating to stores previously sold to BI-LO and Aldi (see Note 34).
January 3,
2016
1,290
497
210
145
45
2,187
million
Finance lease liabilities
Cumulative preferred financing shares
Derivative financial instruments
Reinsurance liabilities
Other
Total other non-current financial liabilities
January 1,
2017
1,761
497
45
153
71
2,527
