Notes to the Consolidated Financial Statements
1. General Information
2. Significant Accounting Policies
2.1 Basis of Preparation
Delhaize Group Annual Report 2014 79
The principal activity of Delhaize Group (also referred to, with its consolidated entities, except where the context otherwise
requires, as "we", "us", "our", "the Group" and "the Company") is the operation of food supermarkets through company-operated,
affiliated and franchised stores. Affiliated stores are stores with a Delhaize Group banner that are operated by independent third
parties to whom we sell our products at wholesale prices. The Group's store network also includes other store formats such as
proximity, cash and carry and specialty stores. The Company is present in seven countries on three continents.
The Company is a limited liability company incorporated and domiciled in Belgium, with its shares listed on NYSE Euronext
Brussels and on the New York Stock Exchange ("NYSE"), under the symbols "DELB" and "DEG", respectively.
The consolidated financial statements for the year ended December 31, 2014, as presented in this annual report, were prepared
under the responsibility of the Board of Directors and authorized for issue by the Board of Directors on March 4, 2015, subject to
approval of the statutory non-consolidated financial statements by the shareholders at the Ordinary General Meeting to be held
on May 28, 2015. In compliance with Belgian law, the consolidated financial statements will be presented for information
purposes to the shareholders of Delhaize Group at the same meeting. The consolidated financial statements are not subject to
amendment except conforming changes to reflect decisions, if any, of the shareholders with respect to the statutory non -
consolidated financial statements affecting the consolidated financial statements.
The consolidated financial statements comprise the financial statements of Delhaize Group and its subsidiaries as of December
31, 2014 except for the U.S. subsidiaries for which the fiscal year ends the Saturday closest to December 31. Consequently, the
consolidated results of Delhaize Group for 2014, 2013 and 2012 include the results of operations of its U.S. subsidiaries for the
53 weeks ended January 3, 2015, 52 weeks ended December 28, 2013 and 52 weeks ended December 29, 2012.
Delhaize Group's consolidated financial statements are prepared in accordance with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB), and as adopted by the European Union (EU).
Currently, the only difference between the effective IFRS as issued by the IASB and as adopted by the EU relates to certain
paragraphs of IAS 39 Financial Instruments: Recognition and Measurement, which are not mandatorily applicable in the EU (so-
called "carve-out"). Delhaize Group is not affected by the carve-out and therefore for the Group there is no difference between
the effective IFRS as issued by the IASB and adopted by the EU. We further refer to the disclosures made in connection with the
"Initial Application of New, Revised or Amended IASB Pronouncements" in Note 2.2 and "Standards and Interpretations Issued
but not yet Effective" in Note 2.5.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a
higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed in Note 2.4.
These financial statements have been prepared under the historical cost convention except for derivative financial instruments,
available for sale financial assets and financial liabilities being part of a designated fair value hedge relationship that have been
measured at fair value, as disclosed in the corresponding notes. Assets and disposal groups classified as held for sale have
been measured at the lower of carrying amount and fair value less costs to sell.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants, at the measurement date, in the principal (or in the absence thereof most advantageous) market. The fair
value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits
by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest
and best use.
The Group uses valuation techniques that are appropriate for the relevant circumstances and for which sufficient data are
available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
