Notes to the consolidated financial statements 90 11 Property, plant and equipment (continued) 12 Investment property Ahold at a glance Business review Governance Financials Ahold Annual Report 2014 Buildings and land includes improvements to these assets. "Other" buildings and land mainly includes distribution centers and warehouses. "Other" property, plant and equipment mainly consists of trucks, trailers and other vehicles. Assets under construction mainly consists of stores. In 2014, Ahold recognized net impairment losses of €10 million for property, plant and equipment (2013: €69 million). These were mainly related to Ahold USA (2014: €7 million; 2013: €66 million). In 2013, Stop Shop closed six stores and three gas stations in the New Hampshire area, as announced on August 6, 2013. Ahold recognized $24 million (€18 million) of impairments related to these stores based on the exit assumption. The remainder of the net impairment losses in 2013 related to various other operating and closed stores. The higher of the value in use or fair value less cost of disposal represents an asset's recoverable amount. The value-in-use method involves estimating future cash flows. The present value of estimated future cash flows has been calculated using pre-tax discount rates ranging between 6.8% and 13.1% (2013: 6.4%-12.8%). Fair value represents the price that would be received to sell an asset in an orderly transaction between market participants and has generally been measured by using discounted cash flow projections based on the assets' highest and best use from the market participants' perspective. In 2014, there was no impairment loss recorded based on fair value less cost of disposal measurement. In 2013, the fair value less cost of disposal was the recoverable amount in the determination of €15 million of the impairment losses. The additions to property, plant and equipment include capitalized borrowing costs of €2 million (2013: €2 million). Generally, the capitalization rate used to determine the amount of capitalized borrowing costs is a weighted average of the interest rate applicable to the respective operating companies. This rate ranged between 2.9% and 4.2% (2013: 3.6%-75%). Other movements mainly include transfers to investment property and from lease-related intangible assets. The carrying amount of land and buildings includes amounts related to assets held under finance leases and financings of €843 million and €211 million, respectively (December 29, 2013: €808 million and €163 million). In addition, the carrying amount of machinery and equipment and other includes an amount of €4 million (December 29, 2013: €4 million) relating to assets held under finance leases. Ahold does not have legal title to these assets. Company-owned property, plant and equipment with a carrying amount of €44 million (December 29, 2013: €48 million) has been pledged as security for liabilities, mainly for loans. million 2014 2013 At the beginning of the year At cost 863 876 Accumulated depreciation and impairment losses (320) (311) Carrying amount 543 565 Additions 11 16 Acquisitions through business combinations 5 Depreciation (25) (22) Impairment losses and reversals - net (9) (7) Assets classified to held for sale or sold (38) Transfers from property, plant and equipment and lease-related intangibles 28 26 Exchange rate differences 45 (17) Closing carrying amount 560 543 At the end of the year At cost 893 863 Accumulated depreciation and impairment losses (333) (320) Carrying amount 560 543

Jaarverslagen | 2014 | | pagina 162