23. Accrued Expenses
24. Expenses from Continuing Operations by Nature
25. Cost of Sales
26. Employee Benefit Expenses
FINANCIAL STATEMENTS
(in millions of
2014
December 31,
2013
2012
Accrued payroll and short-term benefits
400
404
327
Accrued interest
33
37
33
Other
92
85
77
Total accrued expenses
525
526
437
The aggregate of cost of sales and selling, general and administrative expenses from continuing operations can be specified by
nature as follows:
(in millions of
Note
2014
2013
2012
Product cost, net of vendor allowances and cash discounts
25
15 527
14 958
14 855
Employee benefits
26
2 882
2 813
2 763
Supplies, services and utilities purchased
868
796
797
Depreciation and amortization
7, 8, 9
577
561
581
Operating lease expenses
18.3
296
278
275
Repair and maintenance
236
233
234
Advertising and promotion
186
171
170
Other expenses(1)
153
116
103
Total expenses by nature
20 725
19 926
19 778
Cost of sales
25
16 222
15 579
15 486
Selling, general and administrative expenses
4 503
4 347
4 292
Total expenses by function
20 725
19 926
19 778
(1) Allowances and credits received from suppliers that represent a reimbursement of specific and identifiable non-product costs incurred by the Group (see Note 25)
have been included for the purposes of this overview in "Other expenses". Line item also includes impairment losses recognized on receivables (see Note 14).
(in millions of Note 2014 2013 2012
Product cost, net of vendor allowances and cash discounts
24
15 527
14 958
14 855
Purchasing, distribution and transportation costs
695
621
631
Total
16 222
15 579
15 486
Delhaize Group receives allowances and credits from suppliers mainly for in-store promotions, co-operative advertising, new
product introduction and volume incentives. These allowances are included in the cost of inventory and recognized as a
reduction to cost of sales when the product is sold, unless they represent the reimbursement of a specific and identifiable cost
incurred by the Group to sell the vendor's product in which case they are recorded as a reduction in "Selling, general a nd
administrative expenses" (€14 million, €14 million and €13 million in 2014, 2013 and 2012, respectively).
Employee benefit expenses for continuing operations can be summarized and compared to prior years as follows:
(in millions of
Note
2014
2013
2012
Wages, salaries and short-term benefits including social security
2 820
2 735
2 685
Share-based compensation expenses
21.3
12
16
13
Retirement benefits (including defined contribution, defined benefit and other post
-employment benefits)
21.1, 21.2
50
62
65
Total
24
2 882
2 813
2 763
