Group performance - continued
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Performance o www.ahold.com/reports2009
Gains and losses on the sale of assets
Ahold recorded the following gains on the sale of non-current assets in 2009 and 2008:
2009 2008
million million
Stop Shop/Giant-Landover
19
Giant-Carlisle
Albert Heijn
6
24
Albert/Hypernova
1
3
Total Retail
7
46
Corporate Center - -
Total
7
46
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In 2009, no significant gains or losses were realized on the sale of assets. In 2008, the
most significant gains on the sale of assets were the sale of a shopping center at Stop
Shop/Giant-Landover and the sale of stores at Albert Heijn. Some of these stores were sold
to franchisees.
Restructuring and related charges
In 2009, restructuring and related charges of €23 million primarily resulted from the closure
of underperforming stores and the downsizing of large hypermarkets in the Czech Republic.
In 2008, restructuring and related charges of €36 million related to Stop Shop/Giant-
Landover (€29 million) and Giant-Carlisle (€7 million), and resulted primarily from the
lease termination of an office building used by Ahold USA's IT organization. Restructuring
and related charges at Stop Shop/Giant-Landover also included store closure costs
and a loss related to withdrawing from a multi-employer pension plan.
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Net financial expense
Net financial expense increased by €70 million compared to 2008, as a result of
a decrease in interest income of €83 million. This significant decline was primarily
the result of lower yields on cash investments. Interest expense, at €316 million, was
down €27 million following significant debt reductions in 2008 (€1.1 billion) and 2009
(€0.5 billion), partially offset by a stronger U.S. dollar against the euro in 2009. Net
interest expense was €289 million.
Income taxes
In 2009, income tax expense was €148 million compared to €226 million last year.
The effective tax rate, calculated as a percentage of income before income taxes, was
14.6 percent (22.9 percent in 2008). The lower effective tax rate in 2009 was primarily
the result of the recognition of €101 million in deferred tax assets primarily arising from
U.S. net operating losses carried over from previous years.
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Share in income of joint ventures
As of 2009, Ahold's 49 percent stake in JMR was reclassified from assets held for sale to
investments in joint ventures, because its sale was no longer considered highly probable
(as defined in IFRS 5). Accordingly, our share in JMR's results is presented as income of
joint ventures in both 2009 and 2008. For more information, see Notes 3 and 14 to the
consolidated financial statements.
Ahold's share in income of joint ventures of €106 million decreased by €18 million.
These results primarily related to our 60 percent shareholding in ICA and our 49 percent
shareholding in JMR. Improved operating results at both ICA and JMR were more than
offset by lower gains on the sale of assets and higher income taxes. You can read more
about ICA's and JMR's results under Performance by segment.
Ahold Annual Report 2009 14
