34. C
35. S u bseq uent Events
ontingencies
Delhaize Group is from time to time involved in legal actions in the ordinary course of its business. Delhaize Group is not aware
of any pending or threatened litigation, arbitration or administrative proceedings, the likely outcome of which (individually or in the
aggregate) it believes is likely to have a material adverse effect on its business or consolidated financial statements. Any
litigation, however, involves risk and potentially significant litigation costs and therefore Delhaize Group cannot give any
assurance that any litigation currently existing or which may arise in the future will not have a material adverse effect on our
business or consolidated financial statements.
The G roup continues to be subject to tax audits in jurisdictions where we conduct business. Alth ough some audits have been
completed during 2010, 2011 and 2012, Delhaize G roup expects continued audit activity in 2013. W hile the ultimate outcome of
tax audits is not certain, we have considered the merits of our filing positions in our overall evaluation of potential tax liabilities
and believe we have adequate liabilities recorded in our consolidated financial statements for exposures on these matters.
Based on our evaluation of the potential tax liabilities and the merits of our filing positions, we also believe it is unlikely that
potential tax exposures over and above the amounts currently recorded as liabilities in our consolidated financial statements will
be material to our financial condition or future results of operations.
Delhaize Group is from time to time subject to investigations or inquiries by the competition authorities related to potential
violations of competition laws in jurisdictions where we conduct business. None of these investigations are currently in a stage
where Delhaize Group could reliably assess their merits, if any. In this context, in April 2007, representatives of the Belgian
Competition Council visited Delhaize Group's Procurement Department in Zellik, Belgium, and requested the provision of certain
documents. This visit was part of a local investigation affecting several companies active in Belgium in the supply and retail of
health and beauty products and other household goods. On O cto ber 1, 2012, the Auditor to the Belgian Competition Council
issued its investigation report. The investigation involves 11 suppliers and 7 retailers, including Delhaize Belgium, on an alleged
coordination of price increases on the concerned market from 2002 to 2007. As a next step, the Belgian Competition Council will
hear the parties and establish a calendar for the exchange of arguments where Delhaize Group intends to vigorously defend
itself. The investigation report does not contain sufficient information, and there is no similar case precedent, that would allow
estimating a possible financial impact that could result from any future decision of the Belgian Competition Council. According to
Belgian legislation, compensation payments are calculated on the turnover of the last year of the alleged infringement and
capped to 10% of the Belgian annual revenues of the year preceding the decision of the Competition Council. Such
compensation payments, if any, will therefore be capped to 10% of the Belgian annual revenues of 2012 or 2013, depending on
the timing of the decision. A decision by the Council is not expected before the end of 2013 and, under the current legislation, the
parties involved have the right to appeal in court. Consequently, the Group does currently not have sufficient information
available to make a reliable estimate of any financial impact or the timing thereof.
The Group's H annaford and Sweetbay banners experienced an unauthorized intrusion ("Co mputer Intrusion into portions of
their computer system that process information related to customer credit and debit card transactions, which resulted in the
potential theft of customer credit and debit card data. Also affected was credit card data from cards used at certain
independently-owned retail locations in the Northeast of the U.S. that carry products delivered by Hannaford. The Co m p ute r
Intrusion was discovered during February 2008, and Delhaize G roup believes the exposure window for the Hannaford and
Sweetbay credit and debit card data was approximately from December 7, 2007 through early March 2008. T here is no evidence
that any customer personal information, such as names or addresses, was obtained by any unauthorized person. Various legal
actions have been taken, and various claims have been otherwise asserted, against Hannaford and affiliates relating to the
Computer Intrusion. hile the Group intends to defend the legal actions and claims vigorously, it cannot predict the outcome of
such legal actions and claims, and thus, does not have sufficient information to reasonably estimate possible expenses and
losses, if any, which may result from such litigation and claims.
In February 2011, D elhaize G roup w as notified that some former G reek shareholders of Alfa B eta Vassilopoulos S.A who
to gether held 7% of Alfa B eta shares, have filed a claim in front of the Court of First Instance of Ath ens challengin g the price paid
by the Group during the squeeze-out process that was approved by the Hellenic Capital Markets Commission. Delhaize Group is
convinced that the squeeze-out transaction has been executed and completed in compliance with all legal and regulatory
requirements. Delhaize Group continues to assess the merits and any potential exposure of this claim and will vigorously defend
itself. The first hearing has been scheduled in October 2013.
On Ja nuary 3, 2013, D elh aize Group redeemed the remaining $99 million of the $300 million 5.875% s enior notes due 2014 (see
Note 18.1), as well as the underlying cross-currency swap (Note 19).
On Ja nuary 17, 2013, Delhaize G roup announced the decision to close 52 stores, of which 45 stores in the U.S. (34 S weetbay, 8
Food Lion and 3 Bottom Dollar Food), 6 stores in Southeastern Europe and 1 store in Belgium. As a result, the group recorded
an impairment charge of €49 million in the fourth quarter of 2012. D uring the first part of 2013, the G roup expects earnings to be
DELHAIZE GROUP FINANCIAL STATEMENTS '12 151
