4 Acquisitions
5 Assets and liabilities held for sale and discontinued operations
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Notes to the consolidated financial statements continued
2010 acquisitions
Acquisition of stores from Ukrop's Super Markets
On February 8, 2010, Ahold announced that Giant Carlisle successfully completed the acquisition of 25 stores from Ukrop's Super
Markets, located in the Greater Richmond and Williamsburg areas of Virginia. The purchase consideration was $140 million (€102 million)
for 25 stores, equipment, lease agreements, and one new store location, plus inventory and the cancellation of a supplier contract for an
additional consideration of $38 million (€29 million). The stores have been converted to and are operating under the Martin's name.
The allocation of the net assets acquired and the goodwill arising at the acquisition date is as follows:
million Fair value
Non-current assets
76
Current assets
16
Non-current liabilities
(51)
Current liabilities
(6)
Net assets acquired
35
Goodwill
96
Total purchase consideration
131
Cash acquired
(1)
Acquisition of business, net of cash acquired
130
Goodwill recognized is mainly attributable to intangible assets that do not qualify for separate recognition, such as non-contractual
customer relationships. The total amount of goodwill is expected to be deductible for tax purposes.
The acquired stores contributed $458 million (€349 million) to net sales and had a $53 million (€41 million) negative impact on operating
income, or a $31 million (€23 million) negative impact on net income in the period from February 8, 2010 to January 2, 2011.
Acquisition of Shaw's supermarket stores
In April 2010, Stop Shop acquired five Shaw's supermarket stores from Supervalu. The acquired stores are located in Connecticut. The
total purchase consideration was $36 million (€26 million). Goodwill recognized amounted to $16 million (€12 million) and the total amount
is expected to be deductible for tax purposes.
Other 2010 acquisitions
Ahold also completed several other minor acquisitions. All acquisitions were accounted for using the purchase method of accounting.
2009 acquisitions
Ahold completed several minor acquisitions. All acquisitions were accounted for using the purchase method of accounting.
Assets and liabilities held for sale
At year-end 2010 and 2009 the balances classified as held for sale consisted primarily of property, plant and equipment and liabilities
related to financing transactions.
Discontinued operations
Loss from discontinued operations is specified as follows:
million 2010 2009
BI-LO Bruno's
23
(62)
Tops
(20)
(5)
U.S. Foodservice
(12)
(9)
Various1
(1)
(2)
Results on divestments2
(10)
(78)
Loss from discontinued operations, net of income taxes
(10)
(78)
1 Includes adjustments to the results on various other past divestments.
2 Results on divestments are net of income tax expense of €3 million and income tax benefits of €50 million in 2010 and 2009, respectively.
See Note 28 for the reconciliation between cash received and results on divestments of discontinued operations.
