29. F inancial Result
29.1 Finance Costs
In 2010, the update and revision of the provision for store closing and U.S. organizational restructuring w as €3 million income,
which, together with incurred store closing expenses of €1 million, resulted in a net gain of €2 million.
At year-end 2012, the impairment losses recognized amounted to €272 million and can be summarized as follows:
i n millions of Note 2012 2011 2010
Goodwill
6
136
Intangible assets
7
17
3
Property, plant equipment
8
87
115
12
Investment property
9
14
17
2
Assets held for sale
5.2
18
Total 272 135 14
As part of the 2012 an nual goodwill impairment review, the Group impaired 100% of the goodwill recognized in Bulgaria, Bosnia
H erzegovina and Montenegro (totaling €51 million) and €85 million with respect to the Serbian goodwill. The G roup fu rth e r
recognized impairment charges in connection with the Piccadilly brand in Bulgaria for €15 million and other intangible assets at
Delhaize America for €2 million In addition, the Group recognized impairment charges of €87 million in property, plant and
equipment relating to (i) 45 stores (34 S weetbay, 8 Food Lion and 3 Bottom Dollar F ood) that were approved for closure early
2013 and 9 und erperforming stores, all in the United State s, for a total amount of €54 million, (ii) the closing of 6 stores and
underperformance of 57 stores in the Southeastern Europe (€28 million), and (iii) 1 store closing and the underperformance of 6
stores in Belgium (€5 million) Further, impairment charges of €14 million were re cognized on investment properties, primarily on
15 properties in the United State s and a warehouse in Albania. Finally, assets held for sale at Maxi Group were impaired by €18
million as a result of the weakening real estate market and the deteriorating state of the property for sale.
During the fourth qua rte r of 2011, the G roup performed a revie w of its store portfolio and concluded to impair 126 stores and one
distribution center in the U.S. (€115 million) and several of its investment properties (€12 million The 2010 i mpairment charges
resulted from the periodic impairment review of underperforming stores for €12 million and investment property for €2 million,
mainly located in the U.S.
"Other" primarily consists of hurricane and other natural disasters related expenses, as well as legal settlement expenses.
(in millions of Note 2012 2011 (1' 2010
Interest on short and long-term borrowings 134 120 117
Amortization of debt discounts (premiums) and financing costs 5 7 4
Interest on obligations under finance leases 78 78 81
I otal interest expenses
re provisions (unwinding of discount) 20.1 7 4 4
224 209 206
Foreign currency losses (gains) on debt covered by cash flow hedge 30 (1) 7 16
Reclassification of fair value losses (gains) from OCI on cash flow hedge 19 4 (5) (15)
Total cash flow hedging impact 3 2 1
Fair value losses (gains) on debt instruments fair value hedges 19 3 (5) (3)
Fair value losses (gains) on derivative instruments fair value hedges 19 (6) 5 3
Total fair value hedging impact (3)
Foreign currency losses (gains) on debt instruments 30 13 (17) (33)
Fair value losses (gains) on cross currency interest rate swaps (4) 2 34
Amortization of deferred loss on hedge 16 1
Other finance costs 27 9 9
Less! capitalized interest (2) (2) (3)
Total 258 203 215
(1) 2011 was adjusted for the reclassification of the Albanian operations to discontinued operations.
DELHAIZE GROUP FINANCIAL STATEMENTS '12 147
