29. Financial Result
29.1 Finance Costs
FINANCIAL STATEMENTS
(in millions of Note 2014 2013 2012
Goodwill 6 138 124 85
Intangible assets 7 10 68 2
Property, plant equipment 8 16 8 16
Investment property 9 2 6 14
Assets held for sale 5.2 18
Total 166 206 135
In 2014, the Group recorded additional impairment losses on its Serbian goodwill of €138 million and trade names of €10 million.
Furthermore, Delhaize Serbia recorded €7 million impairment losses on 2 of its incumbent distribution centers and Delhaize
America recognized €6 million impairment losses in connection with Food Lion store closings.
In 2013, the Group recorded impairment losses on its Serbian goodwill (€124 million) and trade names (€67 million) and some
other intangible assets at Delhaize America (€1 million).
In 2012, the Group recognized impairment losses of €85 million on the Serbian goodwill. In addition, the Group recognized
impairment losses of €16 million in property, plant and equipment relating to store closings and to certain underperforming stores
in Serbia (€8 million), Belgium (€5 million) and the U.S. (€3 million). Further, impairment losses of €14 million were recognized on
investment properties, primarily on 15 properties in the United States and a warehouse in Albania. Finally, assets held for sale at
Maxi Group were impaired by €18 million as a result of the weakening real estate market and the deteriorating state of the
property for sale.
"Other" primarily consists of hurricane and other natural disasters related expenses, as well as legal provision/settlement
expenses.
(in millions of
Note
2014
2013
2012
Interest on short- and long-term borrowings
122
122
133
Amortization of debt discounts (premiums) and financing costs
4
4
5
Interest on obligations under finance leases
52
54
64
Interest charged to closed store provisions (unwinding of discount)
20.1
4
5
6
Total interest expenses
182
185
208
Foreign currency losses (gains) on debt covered by cash flow hedge
30
(1)
Reclassification of fair value losses (gains) from OCI on cash flow hedge
19
4
Total cash flow hedging impact
3
Fair value losses (gains) on debt instruments fair value hedges
19
5
(22)
3
Fair value losses (gains) on derivative instruments fair value hedges
19
(5)
22
(6)
Total fair value hedging impact
(3)
Foreign currency losses (gains) on debt instruments
30
22
14
13
Fair value losses (gains) on cross-currency interest rate swaps
(23)
(13)
(4)
Fair value losses (gains) on other freestanding derivatives
(1)
Amortization of deferred loss on discontinued hedge
16
1
Other finance costs
8
6
27
Less: capitalized interest
(2)
Total 188 193 242
In 2013, the remaining $99 million of the original $300 million senior notes, issued in February 2009 and due 2014, being part of
a designated cash flow hedge relationship (see Note 19), were redeemed without any material impact on profit or loss. In 2012,
$201 million of these notes were redeemed and a foreign currency gain of €1 million was realized. This amount, and
corresponding effects on interest, was offset by reclassification adjustments from OCI to profit or loss relating to the hedging
instrument (€2 million loss). Additionally, a loss of €2 million was recycled from OCI to profit or loss in 2012 following the tender
of the senior notes in December 2012 (see Note 18.1) and the termination of hedge accounting.
Other finance costs mainly contain commitment fees for credit lines and the unwinding of discount of other provisions. In 2014,
Delhaize Group recognized €2 million accelerated amortization costs related to termination of the old revolving credit facility (see
Note 18.2). In 2012, this caption included €17 million net debt refinancing transactions costs (see Note 18.1) consisting of (i) net
loss on debt repurchases of €14 million (€36 million of agreed early repayment premiums partly offset by fair value gains of
€22 million on the related notes), and (ii) settlement of the underlying cross-currency interest swaps (€3 million).
