Furniture,
Fixtures, Construction Property Total
(in millions of
Land and L
Buildings Impro
easehold
Equipment
and
Vehicles
and Advance
under
Finance
P roperty,
Plant and
Equipment
Cost at January 1, 2010
1 764
1 652
2 891
62
845
7 214
Ad dition s
59
82
228
184
54
607
Sales and disposals
(11)
(29)
(124)
(27)
(191)
Acquisitions through business com binations
1
1
2
4
Transfers (to) from other accounts
45
58
55
(154)
4
Currency translation effect
72
97
165
2
58
394
Balance at December 31, 2010
1 930
1 861
3 217
94
930
8 032
Accumulated depreciation at January 1, 2010
(503)
(899)
(1 633)
(330)
(3 365)
Accumulated impairment at January 1, 2010
(14)
(34)
(16)
(64)
Depreciation expense
(71)
(127)
(254)
(51)
(503)
Im pairm ent loss
(2)
(5)
(5)
(12)
Sales and disposals
8
29
115
27
179
Transfers to (fr om) other accounts
(1)
(2)
1
(2)
Currency translation effect
(20)
(52)
(94)
(24)
(190)
Accumulated depreciation at December 31, 2010
(587)
(1 055)
(1 881)
(380)
(3 903)
Ac cumulated impairment at December 31, 201 0
(12)
(23)
(19)
(54)
Net carrying amount at December 31, 2010
1 343
794
1 313
94
531
4 075
Depreciation expense is included in the followin
g line items of the i
ncome statement:
(in millions of
2012
2011
2010
Cost of sales
61
56
56
Selling, general and administrative expenses
507
457
447
Total depreciation
568
513
503
Prope rtyplant and equipment can be summari
zed by reportable s
egment as
follows:
Decem
-n ber 31,
(in millions of
2012
20110)
2010
United Sta te s
2 510
2 750
2 794
Belgium
828
808
784
Southeastern Europe and Asia
983
983
488
Corporate
10
9
9
Total property, plant and equipment
4 331
4 550
4 075
In accordance with the accounting policy in Note 2.3, D elhaize G roup tests assets with finite lives for impairment w henever
events or circumstances indicate that an impairment may exist. The G roup monitors the carrying value of its operating retail
stores, the lowest level asset group for which identifiable cash inflows of store assets are independent of other (groups of) assets
("cash-generating unit" or CGU) for potential impairment based on historical and projected cash flows. The value in use,
applying the main assumptions detailed in Note 6, is estimated using projected discounted cash flows based on past experience
and knowledge of the markets in which the stores are located, adjusted for various factors such as inflation and general
economic conditions. The fair value less cost to sell is estimated based on a multiples approach or independent third-party
appraisals, based on the location and condition of the stores. Closed stores are reviewed for impairment on a fair value less cost
to sell basis, based on actual results of the past and using observable market data, where possible.
Management believes that the assumptions applied when testing for impairment are reasonable estimates of the economic
conditions and operating performance of the different CGUs. Changes i n these conditions or performance will have an impact on
the projected cash flows used to determine the recoverable amount of the CGUs and might result in additional stores identified
as being possibly impaired and/or on the impairment amount calculated.
102 DELHAIZE GROUP FINANCIAL STATEMENTS'12
