3. T angible Fixed Assets
Summary St atuto ry Ac counts of Delhaize Group SA/NV
The summarized annual statutory accounts of Delhaize Group SA/NV are presented below. In accordance with the Belgian
Company Code, the full annual accounts, the statutory Directors' report and the Statutory Auditor's report will be filed with the
National Bank of Belgium. These documents will also be available on the Company's website, www.delhaizegroup.com, and can
be obtained upon request from Delhaize Group SA/NV, rue Osseghemstraat 53, 1080 B russels, Belgium. The Statutory Auditor
has expressed an unqualified opinion on these annual accounts.
Summary of Accounting Principles
The annual statutory accounts of Delhaize Group SA are prepared in accordance with Belgian Generally Accepted Accounting
Principles (Belgian GAAP).
1. Formation expenses
Formation expenses are capitalized and amortized over a period of five years or, if they are related to debt issuance costs,
over the maturity of the loans.
2. Intangible Fixed Assets
Intangible assets are recognized as asset in the balance sheet and amortized over their expected useful live. The intangible
assets are amortized as follows:
Goodwill 5 years
So ftw are 5 to 8 years
Internally developed software
Internally developed s oftw are is recognized as intangible asset and is measured at cost to the extent that such cost does not
exceed its value in use for the Company. The Company recognizes internally developed s oftw are as intangible asset when it
is expected that such asset will generate future economic benefits and when the Company has demonstrated its ability to
complete and use the intangible asset. The cost of internally developed software comprises the directly or indirectly
attributable costs of preparing the asset for its intended use to the extent that such costs have been incurred until the asset is
ready for use. Internally developed so ftw are is amortized over a period of 5 years to 8 years.
Tangible fixed assets are recorded at purchase price or at agreed contribution value.
Assets held as finance leases are stated at an amount equal to the fraction of deferred payments provided for in the contract
representing the capital value.
Depreciation rates are applied on a straight-line basis at the rates admissible for tax purposes:
Land 0.00% /year
Buildings 5.00% /year
Distribution centers 3.00^0 /year
Equipment for intensive use 33.33% /year
Furniture 20.00% /year
Motor vehicles 25.00% /year
Plant, machinery and equipment are depreciated over periods of 5, 12 and 25 ye ars based on the expected useful live of
each type of component.
4. Financial Fixed Assets
Financial fixed assets are valued at cost, less accumulated impairment losses. Impairment loss is recorded to reflect long
term impairment of value. Impairment loss is reversed when it is no longer justified due to a recovery in the asset value. A fair
valuation method is applied, taking into account the nature and the features of the financial asset. One single traditional
valuation method or an appropriate weighted average of various traditional valuation methods can be used. Generally, the net
equity method is applied and is adjusted with potential unrecognized capital gain if any. The measurement of foreign
investments is calculated by using the year-end exchange rate. Once selected, the valuation method is consistently applied
on a year-to-year basis, except when the circumstances prevent to do so. When the valuation method shows a fair value
lower than the book value of a financial asset, an impairment loss is recognized but only to reflect the long-term impairment of
value.
DELHAIZE GROUP FINANCIAL STATEMENTS '12 163
