Food Lion 2013 Annual Report Download - page 100

5. Divestitures, Disposal Group / Assets Held for Sale and Discontinued
Operations
5.1 Divestitures
In 2013, Delhaize Group converted several of its Belgian company-operated City stores into affiliated Proxy stores, operated by
independent third parties. Delhaize Group received a total cash consideration of €12 million and recognized a gain on disposal of
approximately €9 million, classified as “Other operating income”.
In 2012, Delhaize Group reached a binding agreement to sell Wambacq & Peeters SA, a Belgian transport company, to Van
Moer Group. This transaction did not meet the criteria of a “Discontinued Operation” and was completed on April 30, 2012.
Delhaize Group received €3 million in cash and recorded a gain on disposal of €1 million in 2012.
No divestitures took place in 2011.
5.2 Disposal Group / Assets Classified as Held for Sale
Disposal of Delhaize Montenegro
In 2013, Delhaize Group announced the sale of its Montenegrin operations (part of the “Southeastern Europe” segment) to Expo
Commerce and presented the profit and loss as discontinued operations (see also Note 5.3). Comparative information was re-
presented.
Delhaize Group completed the transaction during 2013 for a total sales price of €5 million, subject to customary adjustments.
Disposal of Sweetbay, Harveys and Reid’s
In 2013, Delhaize Group signed an agreement with Bi-Lo Holdings (Bi-Lo) to divest its Sweetbay, Harveys and Reid´s
operations. The total sales price is $267 million (€193 million) in cash, to be reduced by $20 million (€15 million) for restrictions
imposed during the regulatory approval process and subject to other customary adjustments. The estimated fair value of the
disposal group has been classified as a Level 1 fair value, being the exit price in an orderly and binding transaction.
Assets and liabilities relating to these operations (being part of the “United States” segment) are classified as a disposal group
held for sale, including the leases of ten previously closed Sweetbay locations but excluding Sweetbay’s distribution center,
which is not part of the agreement and currently does not meet the criteria for classification as held for sale. The transaction also
meets the definition of discontinued operations. Consequently, the relevant profit or loss after tax has been classified as “Result
of discontinued operations”, with comparative information being re-presented.
The transaction is expected to be completed in 2014. In 2013, the 164 stores currently included in the transaction generated
revenues of approximately $1.7 billion.
At December 31, 2013, the carrying value of assets classified as held for sale and associated liabilities related to the disposal of
Sweetbay, Harveys and Reid’s were as follows:
(in millions of €)
2013
Intangible assets
12
Property, plant and equipment
161
Inventories
65
Receivables and other current assets
3
Cash and cash equivalents
2
Assets classified as held for sale
243
Less:
Obligations under finance lease
(50)
Accounts payable, accrued expenses and other liabilities
(8)
Assets classified as held for sale, net of associated liabilities
185
Disposal of Delhaize Albania SHPK
In 2013, Delhaize Group completed the sale of its Albanian activities (“Delhaize Albania”) for a sales price of €1 million. The
assets and liabilities of Delhaize Albania, that was part of the previously called “Southeastern Europe & Asia” segment had been
presented as “held for sale” as of December 31, 2012 and the operating results of the Albanian company in previous years as
well as the gain of €1 million realized on the sale were classified as “Results from discontinued operations” in the income
statement.
98 DELHAIZE GROUP ANNUAL REPORT 2013 FINANCIAL STATEMENTS