Food Lion 2009 Annual Report Download - page 139

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SUMMARY STATUTORY ACCOUNTS
OF DELHAIZE GROUP SA
HISTORICAL FINANCIAL OVERVIEW CERTIFICATION OF RESPONSIBLE
PERSONS
REPORT OF THE STATUTORY AUDITOR
SUPPLEMENTARY INFORMATION
27. Other Operating Income
Other operating income includes income generated from activities other than sales and point of sale services to retail and wholesale customers.
(in millions of EUR) 2009 2008 2007
Rental income 30 28 28
Income from waste recycling activities 11 18 21
Services rendered to suppliers 11 14 15
Gains on sale of property, plant and equipment 5 12 11
Services rendered to wholesale customers 4 3 2
Return check services 2 4 4
Sale of business 1 4 11
Other 14 13 16
Total 78 96 108
The “Sale of business” line represents mainly various sales transactions of Cash Fresh stores in Belgium to independent owners. “Other” pri-
marily includes in-store advertising, litigation settlement income and income from government grants.
28. Other Operating Expenses
Other operating expenses include expenses incurred outside the normal cost of operating supermarkets.
(in millions of EUR) 2009 2008 2007
Store closing and restructuring expenses 36 17 11
Impairment 22 20 15
Losses on sale of property, plant and equipment 9 8 10
Other 2 5 -
Total 69 50 36
The 2009 store closing and restructuring expenses mainly relate to (i) a US organizational restructuring (EUR 19 million) and store closings being
a result of an operational review (EUR 10 million at Food Lion), both initiated in December 2009 and (ii) the effect of updating the estimates used
for existing store closing provisions (EUR 4 million).
The 2009 impairment losses mainly represent charges relating to (i) the US organizational restructuring (EUR 2 million), (ii) impairment charges
recognized on the above mentioned closed stores at Food Lion (EUR 9 million), (iii) early retirement of various software solutions (EUR 5 million)
and (iv) impairment losses mainly recorded for other underperforming stores across the Group in order to align recoverable amount and car-
rying value (EUR 6 million).
The 2008 store closing and restructuring expenses relate mainly to the closing of five “Plus Hellas” stores in Greece and the closure of seven
Sweetbay stores in the U.S. The impairment losses represent mainly the adjustment of the carrying value of 26 Sweetbay stores (2007: 25
stores were impaired by EUR 14 million).
“Other” primarily consists of hurricane and other storm related expenses.
29. Financial Result
29.1. Finance Costs
(in millions of EUR) Note 2009 2008 2007
Interest on current and long-term borrowings 120 130 159
Loss on rate lock to hedge for tender price - - 4
Losses on early retirement of debt - - 74
Tender fees - - 2
Interest on obligations under finance leases 76 73 76
Interest charged to closed store provisions (unwinding of discount) 20.1 4 3 4
Amortization of debt discounts (premiums) and financing costs 4 6 15
Amortization of deferred loss on hedge 16 1 1 16
Foreign currency (gains) losses on debt instrument covered by cash flow hedge 30 (20) - -
Reclassification of fair value losses (gains) from OCI on cash flow hedge 19 22 - -
Foreign currency losses (gains) on debt instruments 30 3 (26) 46
Fair value (gains) losses on currency swaps (1) 29 (47)
Fair value losses (gains) on debt instruments - fair value hedge 19 8 31 7
Fair value (gains) losses on derivative instruments - fair value hedge 19 (8) (31) (7)
Other finance costs 2 1 1
Less: capitalized interest (3) (4) (3)
Total 208 213 347