Delhaize Group Annual Report 2014 107
Closed stores are reviewed for impairment on a fair value less costs to sell basis (Level 3), based on actual results of the past
and using observable market data, where possible.
Management believes that the assumptions applied when testing for impairment are reasonable estimates of the economic
conditions and operating performance of the different CGUs. Changes in these conditions or performance will have an impact on
the projected cash flows used to determine the recoverable amount of the CGUs and might result in additional stores identified
as being possibly impaired and/or on the impairment amount calculated.
The impairment charges can be summarized by property, plant and equipment categories as follows:
December 31,
(in millions of
Note
2014
2013
2012
Land and buildings
9
2
15
Leasehold improvements
3
5
23
Furniture, fixtures, equipment and vehicles
14
7
36
Construction in progress
1
Property under finance leases
3
12
Total
26
17
87
Recognized in
Other operating expenses
28
16
8
16
Result from discontinued operations
10
9
71
In 2014, the Group recorded €7 million impairment losses on 2 of its incumbent distribution centers at Delhaize Serbia and €8
million on equipment that will become idle after the sale of Bottom Dollar Food (the latter recorded in "Result from disconti nued
operations").
In 2012, the Group recognized impairment losses of €87 million related to (i) 45 stores (34 Sweetbay, 8 Food Lion and 3 Bottom
Dollar Food) that were closed early 2013 and 9 underperforming stores, all in the United States, for a total amount of €54 million,
(ii) the closing of 6 stores and underperformance of 57 stores in Southeastern Europe (€28 million), and (iii) 1 store closing and
the impairment of 6 stores in Belgium (€5 million).
Property under finance leases consists mainly of buildings. The number of owned versus leased stores by operating segment at
December 31, 2014 is as follows:
Affiliated and Franchised
Stores Owned by their
Operators or Directly Leased
Owned
Finance
Leases
Operating
Leases
by their Operators from a
Third Party
Total
United States
233
501
627
1 361
Belgium
151
38
234
457
880
Southeastern Europe
338
703
64
1 105
Total
722
539
1 564
521
3 346
