20.2 Self-insurance Provisions
Delhaize Group Annual Report 2014 131
The following table presents a reconciliation of the number of closed stores included in the closed store provision:
Number of Closed Stores
Balance at January 1, 2012
100
Store closings added
162
Stores sold/lease terminated
(85)
Balance at December 31, 2012
177
Store closings added
52
Stores sold/lease terminated
(63)
Balance at December 31, 2013
166
Store closings added
11
Stores sold/lease terminated
(35)
Balance at December 31, 2014 142
The total number of stores closed and included in the closed store provision by reportable segments can be detailed as follows:
(Number of stores closed during the year)
2014
2013
2012
United States
7
43(1)
126
Belgium
3
4
3
Southeastern Europe
1
5
33
Total
11
52
162
(1) Includes 24 Sweetbay stores.
The "Other exit costs" primarily relate to termination benefits.
During 2014, 2013 and 2012, Delhaize Group paid €9 million, €11 million and €42 million, respectively, of lease termination fees,
primarily in the U.S. and 2012 also included €17 million payments in Bulgaria.
Expenses relating to closed store provisions were recorded in the income statement as follows:
(in millions of
Note
2014
2013
2012
Other operating expenses
28
(2)
5
112
Interest expense included in "Finance costs"
29.1
4
5
6
Results from discontinued operations
5.3
6
52
17
Total
8
62
135
Delhaize Group's U.S. operations are self-insured for their workers' compensation, general liability, vehicle accident and
pharmacy claims up to certain retentions and holds excess-insurance contracts with external insurers for any costs in excess of
these retentions. The self-insurance liability is determined actuarially, based on claims filed and an estimate of claims incurred
but not reported. The assumptions used in the development of the actuarial estimates are based upon historical claims
experience, including the average monthly claims and the average lag time between incurrence and payment.
The maximum retentions, including defense costs per occurrence, are:
$1.0 million per accident for workers' compensation;
$2.0 million per accident for vehicle accident; and
$3.0 million per occurrence for general liability and pharmacy claims.
Delhaize Group is also self-insured in the U.S. for health care, which includes medical, pharmacy, dental and short-term
disability. The self-insurance liability for claims incurred but not reported is based on available information and considers annual
actuarial evaluations of historical claims experience, claims processing procedures and medical cost trends.
