H
153
34 Commitments and contingencies (continued)
Ahold at a glance
Notes to the consolidated
financial statements
Our strategy Our performance j Governance
Financials
Investors
Ahold Annual Report 2013
BI-LO Bruno's
In connection with the sale of BI-LO and Bruno's, Ahold may be contingently liable to landlords under guarantees of some 200 BI-LO or Bruno's operating or finance leases that existed at
the time of the sale in the event of a future default by the tenant under such leases. As a result of the bankruptcy filings by BI-LO and Bruno's during 2009, a provision was recognized in 2009.
BI-LO exited bankruptcy in May 2010 and the Company has re-evaluated its estimate of liability. For more information, refer to the Guarantees section above in this Note.
U.S. Foodservice
In connection with the sale of U.S. Foodservice, which closed on July 3, 2007 (the Completion), Ahold indemnified U.S. Foodservice against damages incurred after the Completion relating
to matters including (i) the putative class actions filed in 2006 and 2007 and referred to below under "Waterbury litigation" and any actions that might be brought by any current or former U.S.
Foodservice customers that concern the pricing practices at issue in such litigation for sales made by U.S. Foodservice prior to the Completion and (ii) the investigation by the Civil Division of the
U.S. Department of Justice into U.S. Foodservice's pricing practices for sales made to the U.S. Government prior to the Completion. See also below.
Tops Markets, LLC
In connection with the sale of Tops in 2007, Ahold has certain post-closing indemnification obligations under the sale agreement that Ahold believes are customary for transactions of this
nature. Ahold retained certain liabilities in the sale, including contingent liability for 46 leases that carry Ahold guarantees. Additionally, Ahold retained liabilities related to stores previously sold,
including guarantees on five Tops stores in eastern New York state, as well as liabilities related to the Tops convenience stores and the stores in northeast Ohio as outlined below.
Tops convenience stores
Pursuant to applicable law, Tops may be contingently liable to landlords under 193 leases assigned in connection with the sale of the Tops' Wilson Farms and Sugarcreek convenience stores in
the event of a future default by the tenant under such leases. Ahold may be contingently liable to landlords under the guarantees of 71 of these leases in the same event.
Tops northeast Ohio stores
Tops closed all of its locations in northeast Ohio prior to year-end 2006. As of January 12014, 34 of the total 55 closed locations in northeast Ohio have been sold, subleased or partially
subleased. An additional 17 leases have been terminated or have terms due to expire within one year. Four stores continue to be marketed. In connection with the store sales, Tops and Ahold
have certain post-closing indemnification obligations under the sale agreements, which Ahold believes are customary for transactions of this nature. Pursuant to applicable law, Ahold may be
contingently liable to landlords under guarantees of 14 of such leases in the event of a future default by the tenant under such leases. In the event Ahold is able to assign the leases for the
remaining northeast Ohio stores, then pursuant to applicable law, Ahold also may be contingently liable to landlords under guarantees of certain of such remaining leases in the event of a
future default by the tenant under such leases.
Accounting Plaza
In 2012, Ahold sold its interest in Accounting Plaza and granted customary title-to-share type of warranties to the buyer and, accordingly, Ahold assesses the likelihood to be liable as remote.
ICA
In March 201 3, Ahold sold its entire 60% stake in ICA AB to Hakon Invest AB (subsequently renamed to ICA Gruppen AB). Ahold has only granted customary title-to-share type of warranties to
the buyer to a maximum amount of the purchase price and, accordingly, Ahold assesses the likelihood to be liable as remote.
