5. Divestitures, Disposal Group Assets Held for Sale and Discontinued
Operations
5.1 Divestitures
5.2 Disposal Group Assets Classified as Held for Sale
Disposal of Bottom Dollar Food
Disposal of Sweetbay, Harveys and Reid's
Disposal of Bulgarian and Bosnian Herzegovinian operations
FINANCIAL STATEMENTS
During 2014, Delhaize Group only divested operations from its operating activities that met the definition of discontinued
operations (see Note 5.3).
In 2013, Delhaize Group converted several of its Belgian company-operated City stores into affiliated Proxy stores, operated by
independent third parties. Delhaize Group received a total cash consideration of €12 million and recognized a gain on disposal of
approximately €9 million, classified as "Other operating income".
In 2012, Delhaize Group sold Wambacq Peeters SA, a Belgian transport company, to Van Moer Group. This transaction did
not meet the criteria of a "Discontinued Operation" and was completed on April 30, 2012. Delhaize Group received €3 million in
cash and recorded a gain on disposal of €1 million in 2012.
In 2014, Delhaize Group signed an agreement with ALDI Inc. to sell its 66 Bottom Dollar Food locations for approximately $15
million (€12 million). The estimated fair value of the disposal group has been classified as a Level 1 fair value, being the exit price
in an orderly and binding transaction.
Assets and liabilities relating to these operations (being part of the "United States" segment) are classified as a disposal group
held for sale. The transaction also meets the definition of discontinued operations. Consequently, the relevant profit or loss after
tax has been classified as "Result from discontinued operations", with comparative information being re-presented.
The transaction is subject to customary closing conditions and is expected to be completed early 2015. In 2014, the 66 stores
generated revenues of approximately $0.5 billion.
At December 31, 2014, the carrying value of assets classified as held for sale and associated liabilities related to the disposal of
Bottom Dollar Food to ALDI Inc. were as follows:
(in millions of 2014
Property, plant and equipment 52
Assets classified as held for sale 52
In addition, equipment relating to these stores (carrying amount of €2 million) has been classified as held for sale and is expected
be sold to third parties.
The Group recognized a total impairment loss of €124 million (see also Note 5.3) to write down the carrying value of the Bottom
Dollar Food operations to its fair value less costs to sell.
In 2013, Delhaize Group signed an agreement with Bi-Lo Holdings (Bi-Lo) to sell its Sweetbay, Harveys and Reid's operations.
The transaction closed in 2014 for a final sales price of $234 million (€171 million) in cash.
Assets and liabilities relating to these operations (being part of the "United States" segment) were classified as a disposal group
held for sale in 2013 and the relevant profit or loss after tax classified as "Result from discontinued operations", with comparative
information being re-presented.
In 2013, the 164 stores included in the transaction generated revenues of approximately $1.7 billion.
A gain of €8 million realized on the sale was included in "Results from discontinued operations" during 2014.
In 2014, Delhaize Group sold its Bulgarian operations to AP Mart and Delhaize Bosnia Herzegovina to Tropic Group B.V.,
incurring insignificant settlement losses. Both activities were part of the "Southeastern Europe" segment and meet the
requirements of discontinued operations. Therefore, the profit and loss after tax relating to these operations are classified as
"Result from discontinued operations" (see also Note 5.3) and comparative information has been re-presented.
Less:
Obligations under finance lease
Accounts payable, accrued expenses and other liabilities
Assets classified as held for sale, net of associated liabilities
(37)
(3)
12
The operations were transferred to the buyers, including cash and cash equivalents of €3 million and €1 million, respectively.
