Notes to the consolidated financial statements
5 Assets and liabilities held for sale and discontinued operations (continued)
Ahold at a glance
Annual Report 2014
On November 14, 2013, it was announced that Ahold had reached an agreement with Condorum regarding the sale of Ahold's Slovakian business. Upon the sale agreement, Ahold Slovakia qualified as held for sale and
discontinued operation. On April 15, 2014, it was announced that the transaction was completed.
The 2014 operating results of Ahold Slovakia as included in the operating results from discontinued operations were a loss of €2 million (2013: €3 million). The condensed income statement for the Slovakian business is
Cost of sales
Total operating expenses
Net financial expenses
Loss before income taxes
Operating results from discontinued operations, net of income taxes
Included in income tax benefits of 2013 was a €6 million deferred tax asset recognized for 2012 operating losses which was not recognized in the respective period as it was assessed to be not recoverable unless Ahold was to cease operating in Slovakia.
Upon the divestment in the first quarter of 2014, Ahold recorded a loss of €2 million, offset by a net tax benefit of €1 million as presented below. In 2013, in connection with this divestment Ahold had recorded a loss of
€29 million, offset by a net tax benefit of €9 million. Included in the loss on divestment recorded in 2013 were impairment loss on the measurement to fair value less cost of disposal of €16 million and an onerous contract
provision of €12 million.
Proceeds net of cost of disposal
Net liabilities divested
Use of provision on loss on divestment
Recognition of financial guarantee
Result on divestment before income taxes
Result on divestment of Slovakia
In connection with the settlement agreement Ahold signed to settle a class action relating to pricing practices of Ahold's former subsidiary, Ahold recorded a net provision in the amount of €187 million net of income tax
benefits of €28 million. See Note 34 for a description of U.S. Foodservice - Waterbury litigation. Also included in results from divestments in 2014 were legal costs of €7 million (2013: €10 million),
On February 10, 2013, Ahold reached a sale agreement with Hakon Invest regarding its 60% holding in ICA for proceeds of SEK 20 billion. Upon the sale agreement, Ahold's investment in ICA was classified as a
discontinued operation and the transaction was completed on March 27 2013.