Food Lion 2014 Annual Report Download - page 149

DELHAIZE GROUP FINANCIAL STATEMENTS 2014 // 145
Employee benefit expenses were recognized in the income statement as follows:
(in millions of €)
2014
2013
2012
Cost of sales
382
354
355
Selling, general and administrative expenses
2 500
2 459
2 408
Employee benefits for continuing operations
2 882
2 813
2 763
Results from discontinued operations
104
261
301
Total
2 986
3 074
3 064
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 €)
2014
2013
2012
Rental income
53
49
48
Income from waste recycling activities
19
20
19
Services rendered to wholesale customers
6
6
7
Gains on sale of property, plant and equipment
11
11
10
Gains on sale of businesses
—
9
—
Other
30
32
²
30
Total
119
127
114
During 2014, Delhaize Group recognized €7 million of insurance income related to product losses in the caption “Other”.
In 2013, Delhaize Group converted several of its Belgian company-operated City stores into affiliated Proxy stores operated by
independent third parties, leading to a gain on disposal of €9 million, included in “Gain on sale of businesses”. The caption
“Other” contains a €7 million favorable impact of a litigation settlement for which a provision had been recorded during the
purchase price allocation of Delta Maxi and a €4 million reversal of legal provisions in Serbia.
During 2012, Delhaize Group recognized €3 million of government grant income and €5 million of lease termination/settlement
income in “Other”.
28. Other Operating Expenses
Other operating expenses include expenses incurred outside the normal course of operating supermarkets.
(in millions of €)
2014
2013
2012
Store closing expenses
(2)
5
112
Reorganization expenses
137
15
—
Impairment losses
166
206
135
Losses on sale of property, plant and equipment
18
21
21
Other
13
10
8
Total
332
257
276
During 2014, the Group recognized reorganization expenses of €137 million in connection with its Belgian Transformation Plan
(see Note 20.3). In 2013, the Group recorded €15 million reorganization charges related to the severance of support services
senior management and employees in the U.S.
During 2012, Delhaize Group closed a total of 180 stores, of which 146 stores (126 in the United States and 20 Maxi stores)
were closed early 2012 following a store portfolio review both in the United States and Europe, resulting in total store closing
charges of €141 million, of which €14 million presented in “Result from discontinued operations”. These charges were partly
offset by €15 million resulting from the periodic update of estimates used for the store closing provision (see Note 20.1).
Impairment losses recognized in continued operations can be summarized as follows:
Delhaize Group Annual Report 2014 • 147