27. Other Operating Income
28. Other Operating Expenses
Delhaize Group Annual Report 2014 147
Employee benefit expenses were recognized in the income statement as follows:
(in millions of
2014
2013
2012
Cost of sales
382
354
355
Selling, general and administrative expenses
2 500
2 459
2 408
Employee benefits for continuing operations
2 882
2 813
2 763
Results from discontinued operations
104
261
301
Total
2 986
3 074
3 064
Other operating income includes income generated from activities other than sales and point of sale services to retail and
wholesale customers.
(in millions of
2014
2013
2012
Rental income
53
49
48
Income from waste recycling activities
19
20
19
Services rendered to wholesale customers
6
6
7
Gains on sale of property, plant and equipment
11
11
10
Gains on sale of businesses
9
Other
30
32
30
Total
119
127
114
During 2014, Delhaize Group recognized €7 million of insurance income related to product losses in the caption "Other".
In 2013, Delhaize Group converted several of its Belgian company-operated City stores into affiliated Proxy stores operated by
independent third parties, leading to a gain on disposal of €9 million, included in "Gain on sale of businesses". The caption
"Other" contains a €7 million favorable impact of a litigation settlement for which a provision had been recorded during the
purchase price allocation of Delta Maxi and a €4 million reversal of legal provisions in Serbia.
During 2012, Delhaize Group recognized €3 million of government grant income and €5 million of lease termination/settlement
income in "Other".
Other operating expenses include expenses incurred outside the normal course of operating supermarkets.
(in millions of
2014
2013
2012
Store closing expenses
(2)
5
112
Reorganization expenses
137
15
Impairment losses
166
206
135
Losses on sale of property, plant and equipment
18
21
21
Other
13
10
8
Total
332
257
276
During 2014, the Group recognized reorganization expenses of €137 million in connection with its Belgian Transformation Plan
(see Note 20.3). In 2013, the Group recorded €15 million reorganization charges related to the severance of support services
senior management and employees in the U.S.
During 2012, Delhaize Group closed a total of 180 stores, of which 146 stores (126 in the United States and 20 Maxi stores)
were closed early 2012 following a store portfolio review both in the United States and Europe, resulting in total store closing
charges of €141 million, of which €14 million presented in "Result from discontinued operations". These charges were partly
offset by €15 million resulting from the periodic update of estimates used for the store closing provision (see Note 20.1).
Impairment losses recognized in continued operations can be summarized as follows:
