20. P
activities, which consist primarily of provisions for onerous contracts and severance ("termination") costs. The amounts
rovisions
f
Non-current
Current
Self-insura nce.
Non-current
Current
P ension benefit and other post-employm ent benefits.
Non-current
Current
Oth e r,
Non-current
Current
Total provisions
Non-current
Current
20.1
20.2
21
20.3
2012
89
18
90
52
126
10
64
457
369
88
mber31,
2011(1)
37
9
89
54
90
3
73
10
365
289
76
2010
36
82
39
80
2
35
3
285
233
52
(1) 2011 was revised to reflec
20.1 Closed Sto re P
e ffe cts of t
of 201 2 of the pu
rovisions
Delta Ma
As explained in Note 2.3, D elhaize Group records closed store provisions for present obligations in connection with store closing
recognized reflect management's best estimate of the expected expenditures required to settle the present obligation at balance
sheet date and requires the application of judgment and estimates that could be impacted by factors such as the discount rate
applied, the ability to sub-lease, the cred itwo rthiness of the sub-lessee or the success when negotiating any early termination of
lease agreements. Most of the factors are significantly dependent on general economic conditions and the interrelated demand
for commercial prope rtyConsequently, the cash flows projected, and the risk reflected in those, might change, if applied
assumptions change.
Most obligations recognized relate to onerous lease contracts, predor
terms ranging from 1 to 23 years. The average remaining lease term
following table reflects the activity related to closed store provisions.
ninately for stores located in the U.S.,
for closed stores was 5 years at Dec
with remaining l
ember 31, 2012.
ease
The
(in millions of
2012
2011
2010
Closed store provision at January 1
46
44
54
Ad ditions,
Store closings - lease obligations
131(1)
3
1
Store closings - other exit costs
12
Update of estimates
(15)
5
1
Interest expense (unwinding of discount)
7
4
4
Acquisition through business combination
2
Utilization,
Lease payments made
(27)
(12)
(14)
Lease terminations
(42)
(5)
P ayments made for other exit costs
(13)
(1)
(2)
Transfer from (to) other accounts
11
Currency translation effect
(3)
1
5
Closed store provision at December 31
107
46
44
(1) Of which €3 million included in discontinued operations (see Note 5.3).
During 2012, Delhaize Group recorded €143 million of additions to the closed store provision, which were primarily related to the
store portfolio review announced at the beginning of 2012, resulting in the decision to close 146 stores (126 stores in the United
States and 20 underperforming Maxi stores (see N ote 28). During the year, additional stores were closed as part of the ordinary
course of business, resulting in 180 stores being closed during 2012.
DELHAIZE GROUP FINANCIAL STATEMENTS'12 127
