21. E mployee Benefits
I h e movements of the self-insurance provision were as follows.
f
2012
2011
2010
elf-insurance provision at January 1
143
121
108
xpense charged to earnings
190
168
179
(188)
(151)
(174)
-urrency translation effect
(3)
5
8
elf-insurance provision at December 31
142
143
121
Actuarial estimates are judgmental and subject to uncertainty, due to, among many other things, changes in claim reporting
patterns, claim settlement patterns or legislation. Management believes that the assumptions used to estimate the self-insurance
provision are reasonable and represent management's best estimate of the expenditures required to settle the present obligation
at the balance sheet date. Nonetheless, it is in the nature of such estimates that the final resolution of some of the claims may
require making significant expenditures in excess of the existing provisions over an extended period and in a range of amounts
that cannot be reasonably estimated. Future cash flows are discounted with period specific discount rates.
20.3 Other P
rovisions
The other provisions mainly consist of long-term incentive and early retirement plans, but also include amounts for asset removal
obligations and provisions for litigation. The movements of the other provisions were as follows:
(in
f
2012
Other provisions at January 1
Acquisitions through business com b
Expense charged to profit and loss
Transfer (to) from other accounts
Currency translation effect
Other provisions at December 31
83
6
(17)
4
(4)
(1) 2011
effects of t
r2012
72
Delta Ma
2011(1)
38
43
6
(4)
83
2010
35
9
(4)
(3)
1
In 2012, D elhaize G roup finalized the purchase price allocation of the Delta M axi acquisition (see Note 4.1) and as a result
recognized €43 million of legal contingencies (compared to €12 million disclosed in our 2011 annual report). These contingent
liabilities mainly related to pending legal disputes for a number of property ownership related cases and €4 million of these
provisions was settled and pa id in 2012. Simultaneously, the Group recognized indemnification assets of €33 million relating to
these legal disputes, in line with the ownership percentage the Group holds in the Maxi entities being subject to these legal
disputes.
21.1 Pension Plans
Delhaize Group's employees are covered by defined contribution and defined benefit pension plans, mainly in the U.S., B elgium,
Greece, Serbia and Indonesia. In addition, the Group has also other post-retirement defined benefit arrangements, being
principally health care arrangements in the U.S.
The actuarial valuations performed on the defined benefit plans involve making a number of assumptions about, e.g., discount
rate, expected rate of return on plan assets, future salary increase or mortality rates. For example, in determining the appropriate
discount rate, management considers the interest rate of high-quality corporate bonds (at least AA rating) in the respective
country, in the currency in which the benefits will be paid and with the appropriate maturity date, mortality rates are based on
publicly available mortality tables for the specific country, the expected return on plan assets is determined by considering the
expected returns on the assets underlying the long-term investment strategy. Any changes in the assumptions applied will impact
the carrying amount of the pension obligations, but will not necessarily have an immediate impact on future contributions. All
Plan assets are measured at fair value, using readily available market prices,
iny. Actuarial gains and losses (i.e., experience
OCI. The as sumptions are summarized
j n ifica nt assumptions are reviewed periodically.
using the minir
mum return guaranteed by an independent insurance company.
adjustments and effects of changes in actuarial assumptions) are directly recognized
below.
DELHAIZE GROUP FINANCIAL STATEMENTS'12 129
