Notes to the
consolidated
financial statements
continued
3 Significant accounting policies continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
The adjustments to Ahold Delhaize’s 2015 comparative amounts for these changes in presentation are as follows:
1,043
993
632
Changes in presentation
Presentation of amortization of favorable lease-related intangible assets
As part of the purchase price allocation (PPA) of an acquisition, favorable lease-related intangible assets and unfavorable lease-related liabilities
are identified. In the historical results of both Ahold and Delhaize, the unwinding of these liabilities were reported as part of rent expense, while the
amortization of the intangible asset were reported as amortization expense. This resulted in a mismatch of the net PPA effect of similar items on
the basis that they relate to either an asset or a liability.
Ahold Delhaize’s historical information has therefore been restated so that the amortization of the favorable lease-related asset is no longer
reported as depreciation and amortization expense but is instead reported as rent expense.
Presentation of unfavorable lease liabilities
Unfavorable lease-related liabilities recognized upon an acquisition have historically been presented as onerous contract provisions by Ahold
Delhaize. However, because these liabilities do not have uncertainty with respect to amount and timing, a decision has been made to now present
these as other liabilities instead of provisions.
Provisions
Other non-current liabilities
Current liabilities
Provisions
Other current liabilities
January 3, 2016
as reported
731
318
Changes in
presentation
Changes in
presentation
(92)
92
(12)
12
(11)
11
January 3, 2016
as restated
248
1,585
2,390
(33)
260
1,573
(11)
2
(9)
9
2015
as restated
2015
as restated
639
410
2015
as reported
2015
as reported
1,004
621
1,032
2
2,381
(24)
million
Consolidated balance sheet
Non-current liabilities
million
Consolidated statement of cash flows
Depreciation, amortization and impairments
Release of favorable and unfavorable leases
Operating cash flows before changes in operating assets and liabilities
Changes in other non-current assets, other non-current liabilities and provisions
million
Note 8 Expenses by nature
Depreciation and amortization
Rent expenses and income - net
Changes in
presentation
