2 www.ahold.com/reports2008
Notes to the consolidated financial statements
5 Assets held for sale and discontinued operations continued
Results from discontinued operations
Financial statements
AHOLD ANNUAL REPORT 2008 59
The following table presents the condensed income statement from the Company's discontinued operations until their respective
divestment dates. As a result of JMR's classification as held for sale and discontinued operation as of December 31, 2006, JMR
is no longer accounted for using the equity method. JMR's 2008 and 2007 result represents dividends and fees received.
Condensed income statement
million
2008
2007
Net sales
1,686
12,176
Cost of sales
(1,499)
(10,686)
Gross profit
187
1,490
Operating expenses
(162)
(1,268)
Operating income
25
222
Net financial expense
(3)
(27)
Income before income taxes
22
195
Income taxes
(5)
(59)
Income from joint ventures (JMR)
16
17
Results from discontinued operations
33
153
Results on divestments of discontinued operations
2008 divestments
On April 23, 2008, Ahold announced that it had reached an agreement with Schuitema and CVC on the divestment of its
73.2 percent interest in Schuitema to CVC. The sale was completed on June 30, 2008 for proceeds of EUR 515 million. At the
same time, Ahold, Schuitema and CVC entered into a store purchase agreement for the transfer of 56 Schuitema stores, including
owned real estate, for a total purchase price of EUR 208 million, valuing Ahold's previously owned 73.2 percent interest in these
stores at EUR 153 million. Taken together, the net consideration for the sale of Ahold's 73.2 percent interest in Schuitema
(i.e., net of the 56 stores retained) amounted to EUR 362 million, as summarized below, resulting in a gain on divestment
of EUR 161 million.
million
Total Schuitema
56 stores retained
Total sold
Fair value (100%)
703
208
495
Non-controlling interest (26.8%)
(188)
(55)
(133)
Fair value of Ahold's 73.2% interest
515
153
362
The retained stores were transferred to Albert Heijn in several tranches during the second half of 2008 and in early 2009.
Until the date of transfer, the stores were operated by Schuitema under its trading name and for its benefit. Following the transfer,
the stores were converted into Albert Heijn stores.
Schuitema's results for 2008 and prior years have been classified as results from discontinued operations in their entirety.
The assets and liabilities related to the stores that were transferred to Albert Heijn (primarily land and buildings and finance
lease assets and liabilities) have been retained in Ahold's consolidated balance sheet at their carrying amounts. The 26.8 percent
non-controlling interest related to the 56 retained stores has effectively been acquired by Ahold as part of the transaction.
The excess of the fair value paid over the existing carrying amount of the non-controlling interest related to the retained stores
amounted to EUR 54 million and was recognized directly in equity. In addition to the assets and liabilities retained, Ahold also
acquired real estate related to certain of the retained stores from a third party for EUR 51 million.
