15
14 7
Group performance continued
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Fi nancials
Investors
Operating income million)
1,336 4.9%
1,297 5.1%
1,202 5.1%
1,071 4.9%
1 Underlying retail operating margin.
Underlying retail operating income
Contribution by segment
Operating income
In 2010, operating income was €1.3 billion, up €39 million or 3.0 percent compared to 2009.
Underlying retail operating income (which excludes impairments, gains and losses on the sale
of assets, and restructuring and related charges) was €1.4 billion, or 4.9 percent of net sales,
consistent with our mid-term target of 5 percent. Higher operating profits were primarily driven
by significantly improved results in our Other Europe segment (Czech Republic and Slovakia).
Lower results from Ahold USA, which were impacted by losses from the acquired Ukrop's stores,
reorganization and IT integration costs, and a challenging economic environment, were a partial
offset. You can read more about our operating companies' results in Performance by segment.
Impairments, gains and losses on the sale of assets, and restructuring and related charges are
listed below.
Corporate Center costs were €76 million, up €13 million compared to 2009. This increase was
primarily caused by our self-insurance activities, which had a negative impact of €1 million on
Corporate Center costs in 2010, while in 2009 they had a positive impact of €11 million (driven
by increased interest rates). Core Corporate Center costs (as defined in Non-GAAP financial
measures) were €78 million, up €2 million compared to 2009.
Impairment of assets
Ahold recorded the following impairments and reversals of impairments of assets in 2010 and
2009:
2010 2009
million million
million)
margin
Ahold USA
(17)
(16)
Ahold USA
742
4.2%
The Netherlands
691
6.9%
Other Europe
16
1.0%
The Netherlands
(6)
(6)
Total
1,449
4.9%
Other Europe
(4)
(17)
Ahold Europe
(10)
(23)
Total
(27)
(39)
In 2010, impairments related primarily to underperforming stores. In 2009, impairments at Ahold
USA were related to real estate and the closing of a number of in-store Starbucks locations.
Other Europe impairments were due to store closures and underperforming stores.
Gains and losses on the sale of assets
Ahold recorded the following gains on the sale of non-current assets in 2010 and 2009:
2010 2009
million million
Ahold USA 9 -
The Netherlands
Other Europe
Ahold Europe
Total
