Food Lion 2009 Annual Report Download - page 110

106 - Delhaize Group - Annual Report 2009
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT
OF CASH FLOWS
NOTES TO THE FINANCIAL
STATEMENTS
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
CONSOLIDATED INCOME
STATEMENT
CONSOLIDATED BALANCE SHEET
11. Investments in Securities
Investments in securities represent mainly investments in debt securities which are either held as available for sale or with the intention and
ability to hold to maturity. During 2008, the Group sold a more than an insignificant amount of its financial assets classified as held-to-maturity
and, therefore, reclassified any remaining investments initially classified as held-to-maturity assets to available-for-sale at that point in time.
Securities are included in non-current assets, except for securities with maturities less than 12 months from the balance sheet date, which are
classified as current assets. The carrying amounts of the investments in securities are as follows:
(in millions of EUR) December 31,
2009 2008 2007
Available Held to Total Available Held to Total Available Held to Total
for Sale Maturity for Sale Maturity for Sale Maturity
Non-current 126 - 126 123 - 123 68 48 116
Current 12 - 12 28 - 28 28 8 36
Total 138 - 138 151 - 151 96 56 152
Delhaize Group’s available for sale investments are mainly listed debt securities and fair values were predominantly determined by reference
to current bid prices in an active market (see Notes 2.3 and 10.1). The fair values of investments in securities classified as held-to-maturity at
December 31, 2007 were EUR 153 million.
As referred to in Note 2.3, the Group assesses at each reporting date whether there is objective evidence that an investment or a group of
investments is impaired. In 2008, as a consequence of the credit crisis, an impairment charge of EUR 1 million was recognized in the income
statement. In 2009 and 2007, none of the investments in securities were either past due or impaired. The credit quality of the Group’s invest-
ments in securities can be assessed by reference to external credit ratings (Standard & Poor’s), which can be summarized for 2009 as fol-
lows:
S&P Rating in millions of EUR %
AAA 130 94%
AA 2 2%
A 6 4%
Total Investments in Securities 138 100%
The maximum exposure to credit risk at the reporting date is the carrying value of the investments.
At December 31, 2009, 2008 and 2007, EUR 10 million, EUR 15 million and EUR 22 million, respectively, were held in escrow related to defea-
sance provisions of outstanding Hannaford debt and were therefore not available for general company purposes (see Note 18.1). They are
therefore considered to be held for managing part of the Group’s liquidity risk. The escrow funds have the following maturities:
(in millions of currency) 2010 2011 - 2015 2016 Total
Cash flows in USD 2 4 9 15
Cash flows in EUR 2 2 6 10
The remaining investments are predominately held by the Group’s captive (re)-insurance company, covering the Group’s self-insurance expo-
sure (see Note 20.2).
12. Other Financial Assets
Other financial assets, non-current and current, include notes receivable, guarantee deposits, restricted cash in escrow, collateral for deriva-
tives and term deposits and are carried at amortized cost, less any impairment. The fair value of other financial assets approximates the car-
rying amount and represents the maximum credit risk.
In 2007, the Group included an amount of EUR 20 million held in escrow, relating to the sale of Delvita and being released in three equal annual
instalments. The 2008 and 2009 amounts have been released resulting in a carrying amount of EUR 7 million at December 31, 2009.
In 2009 the current financial assets contain collateral for derivatives of EUR 8 million in connection with derivatives under existing International
Swap Dealer Association Agreements (“ISDAs”) (zero in 2008 and 2007).