20. Provisions
Other:
20.1 Closed Store Provisions
FINANCIAL STATEMENTS
December 31,
(in millions of
Note
2014
2013
2012
Closed stores:
20.1
Non-current
80
94
89
Current
17
19
18
Self-insurance:
20.2
Non-current
94
84
90
Current
58
49
52
Pension benefit and other post-employment benefits:
21
Non-current
129
110
132
Current
9
9
10
20.3
Non-current
129
67
64
Current
104
13
8
Total provisions
620
445
463
Non-current
432
355
375
Current
188
90
88
Delhaize Group records closed store provisions for present obligations in connection with store closing activities, which consist
primarily of provisions for onerous contracts and severance ("termination") costs. The amounts recognized reflect management's
best estimate of the expected expenditures required to settle the present obligation at balance sheet date and requires the
application of judgment and estimates that could be impacted by factors such as the discount rate applied, the ability to sub
lease, the creditworthiness of the sub-lessee or the success when negotiating any early termination of lease agreements. Most of
the factors are significantly dependent on general economic conditions and the interrelated demand for commercial property.
Consequently, the cash flows projected, and the risk reflected in those, might change, if applied assumptions change.
Most obligations recognized relate to onerous lease contracts, predominantly for stores located in the U.S., with remaining lease
terms ranging from 1 to 22 years. The average remaining lease term for closed stores was 8 years at December 31, 2014. The
following table reflects the activity related to closed store provisions:
(in millions of 2014 2013 2012
Closed store provision at January 1
113
107
46
Additions:
Store closings - lease obligations
2
54
131
Store closings - other exit costs
3
5
12
Update of estimates
(3)
(5)
(15)
Interest expense (unwinding of discount)
6
8
7
Utilization:
Lease payments made
(23)
(32)
(27)
Lease terminations
(9)
(11)
(42)
Payments made for other exit costs
(2)
(7)
(13)
Transfer from (to) other accounts
(3)
(1)
11
Currency translation effect
13
(5)
(3)
Closed store provision at December 31
97
113
107
