18,2 Short-te
rm Borrowings
Short-term Borrowings by Currency
Decem
nber31,
'n millions of
2012
2011
2010
U.S. Dollar
2
Euro
45
14
Other currencies
15
Tota l
60
16
The carrying amounts of short-term borrowings approximate their fair value
s.
Short-term credit facilities
At April 15, 2011, Delhaize Group and certain of its subsidiaries, including
five-year multi-currencyunsecured revolving credit facility agreement (the 1
3 Delhaize America, LLC, entered
"New Facility Agreement").
into a €600 m
illion,
U.S. Entities
At April 15, 2011, D elhaize America, LLC terminated all of its commitments under the 2009 C redit Agreement and joined the New
Facility Agreement.
Delhaize America, LLC had no outstanding borrowings under this agreement as of December 31, 2012 and December 31, 2011,
and no outstanding borrowings under the 2009 C redit Agreement as of December 31, 2010.
Under the credit facilities that were in place at the various reporting dates, Delhaize America, LLC had $1 million (€1 million)
average daily borrowings during 2012 at an average rate of 1.69%, no average daily borrowings during 2011 and $2 million (€2
million) during 2010. I n addition to the New Facility Agreement, Delhaize America, LLC had a com mitted credit facility exclusively
to fund letters of credit of $35 million (€27 million) of which approximately $12 million (€9 million) was drawn for issued letters of
credit as of December 31, 2012, compared to an outstanding of $16 million (€13 million) and $20 million (€15 m illion) as of
December 31, 2011 and 2010 respectively.
Further, Delhaize America, LLC has periodic short-term borrowings under uncommitted credit facilities that are available at the
lenders' discretion and these facilities were $100 million (€76 million) at December 31, 2012, of which $35 million (€27 million)
may also be used to fund letters of credit. As of December 31, 2012, 2011 and 2010, D elhaize Am erica, LLC had no borrowings
outstanding under such arrangements but used in 2012 and 2011 $5 million (€4 million) to fund letters of credit.
European and Asian Entities
At December 31, 2012, 2011 and 2010, the Group's European and Asian entities together ha d credit facilities (committed and
uncom mitted) of €846 million (of which €725 million of com mitted credit facilities and including the €600 million New Facili ty
Agreement: see above), €864 million and €490 million, re s pectively.
Borrowings under these facilities generally bear interest at the inter-bank offering rate at the borrowing date plus a pre-set
margin, or based on market quotes from banks. In Europe and Asia, Delhaize Group had no outstanding short-term bank
borrowings at December 31, 2012 compa red to €60 million at December 31, 2011 and €14 million at December 31, 2010,
respectively, with an average interest rate of 2.95% in 2011 and 4.83% in 2010. During 2012, the Group's European and Asian
entities had €5 million average daily borrowings at an average interest rate of 2.06%.
In addition, European and Asian entities have credit facilities (committed and uncommitted) of €17 million (of which €3 million of
committed credit facilities), exclusively to issue bank guarantees. Of these credit facilities approximately €11 million was
outstanding to fund letters of guarantee as of December 31, 2012 (€10 million at December 31, 2011 and €4 million at December
31, 2010).
Debt Covenants for Short-term Borrowings
The N ew Facility Agreement of €600 million and the €125 million committed European bilateral credit facilities require
maintenance of various financial and non-financial covenants. The agreements contain customary provisions related to events of
default and affirmative and negative covenants applicable to Delhaize Group. The negative covenants contain restrictions in
terms of negative pledge, liens, indebtedness of subsidiaries, sale of assets and mergers, as well as minimum fixed charge
coverage ratios and maximum leverage ratios based on non -GAAP mea sures. None of the debt covenants restrict the abilities of
subsidiaries of Delhaize Group to transfer funds to the parent.
At December 31, 2012, 2011 and 2010, D elhaize G roup was in compliance with all covenants conditions for shortterm bank
b o rrowi ngs.
DELHAIZE GROUP FINANCIAL STATEMENTS '12 121
