Notes to the
consolidated
financial statements
continued
25 Other non-current liabilities
26 Other current financial liabilities
Ï1Ö
295
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Other in 2015 mainly includes multi-employer union pension withdrawal liabilities.
Step rent accruals relate to the equalization of rent payments from lease contracts with scheduled fixed rent increases throughout the life of
the contract.
Unfavorable lease obligations are recognized as part of a business combination and represent the present value of the excess of contracted rent
payments over the market rents as measured on the date of the acquisition. The obligation is released to rent expense on a straight-line basis over
the remaining term of the lease. Historically these liabilities have been presented as onerous contract provisions, however, because these liabilities
do not have uncertainty with respect to amount and timing, they are now being presented as other liabilities (see Notes 3 and 24).
Bank overdrafts includes an amount of €1,184 million which relates to the overdraft position of a notional cash pooling arrangement. This bank
overdraft is fully offset by an identical amount included under Cash and cash equivalents (refer to Note 19and Note 30).
Deferred income predominantly represents the non-current portions of deferred income on vendor allowances and deferred gains on sale and
leaseback transactions.
22
76
31
January 3,
2016
29
52
1o
33o
million
Finance lease liabilities - current portion (see Note 22)
Interest payable
Short-term borrowings
Bank overdrafts
Dividend cumulative preferred financing shares
Reinsurance liabilities - current portion (see Note 15)
Loans - current portion (see Note 21)
Derivative financial instruments
Other
Total other current financial liabilities
January 1,
2017
239
20
24
578
million
Step rent accruals
Unfavorable lease obligations
Deferred income
Other
Total other non-current liabilities
January 1,
2017
199
59
57
1,196
20
81
539
18
9
2,178
January 3,
2016
276
92
25
17
41o
