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
Net exposure
46
46
The following tables summarize the expected maturity profile of the Company’s financial liabilities (including derivatives) as of January 1, 2017, and
January 3, 2016, respectively, based on contractual undiscounted payments.
The following table shows the maximum exposure of the Company’s financial assets and financial liabilities that are subject to offset or
enforceable master netting arrangements and similar agreements.
The ISDA agreements do not meet the criteria for offsetting in the balance sheet. This is because the Company does not currently have a legally
enforceable right to offset recognized amounts, because the right to offset is enforceable only on the occurrence of a future event such as a
default. ISDAs are considered to be master netting arrangements for IFRS 7 disclosure purposes.
Liquidity risk
Ahold Delhaize views available cash balances and funds from operating activities as its primary sources of liquidity, complemented with access
to external sources of funds when deemed to be required. Ahold Delhaize manages short-term liquidity based on projected cash flows. As of
January 1, 2017, the Company’s liquidity position primarily consisted of €3,133 million of cash (including short-term deposits and similar instruments
and current portion of assets available-for-sale, adjusted for cash held under a notional cash pooling arrangement), and the fully undrawn
€1 billion revolving credit facility.
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 1, 2017, and January 3, 2016, respectively. Refer to Note 34 for
the liquidity risk related to guarantees.
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.
Gross amounts in
the balance sheet
Financial
instruments that
are offset in the
balance sheet
Net amounts
presented in the
balance sheet
Amounts not offset in the balance
sheet but subject to master netting
arrangements (or similar)
Liabilities
Derivative financial liabilities
Bank overdrafts
Total
63
1,184
1,247
299
1,218
1,517
63
1,184
1,247
299
1,218
1,517
1,184
1,184
299
34
333
million
Assets
Derivative financial assets
Cash and cash equivalents
Tota l
17
1,184
1,201
Financial assets/ Cash collateral
liabilities received/pledged
