H
fifillslE3
100
8 Expenses by nature
23,079
9 Net financial expenses
Our strategy
Our performance
Governan
Financials
Investors
Ahold Annual Report 2013
The aggregate of cost of sales and operating expenses is specified by nature as follows:
2012
million
2013
(restated)1
Cost of product
22,912
Labor costs 4,705 4,544
Other operational expenses
2,334
2,284
Depreciation and amortization
825
817
Write-down of intangible assets under development (Note 13)
8
92
Rent income and expense - net
537
514
Impairment losses and reversals - net
83
37
Gains on the sale of assets - net
(28)
(21)
Total expenses
31,376
31,346
1 See Note 3 for an explanation of the restatements.
million
2013
2012
(restated)1
Interest income
7
10
Interest expense
(225)
(234)
Interest income (expense) on defined benefit pension plans - net
(24)
17
Losses on foreign exchange
(8)
(10)
Fair value gains (losses) on financial instruments
(22)
16
Other
(19)
(7)
Other financial expenses (49) (1)
Net financial expenses
1 See Note 3 for an explanation of the restatements.
Interest income mainly relates to interest earned on cash and cash equivalents and short-term cash deposits and similar instruments.
Interest expense primarily relates to financial liabilities measured at amortized cost (mainly loans, finance lease liabilities, financing obligations and cumulative preferred financing shares) and
interest accretions to provisions. Interest income on defined benefit pension plans in 2012 arose as the balance of pension plans were in an asset position. At year end 2012 substantially all
pension plans were in a liability position. Consequently, during 2013, the net interest component of pension expense resulted in interest expense.
(291) (208)