12. Profit or loss for the period from discontinued operations after taxes

On 15 June 2015, METRO GROUP signed an agreement with Hudson’s Bay Company, Toronto, Canada, regarding the sale of its entire department store business. This comprises 102 Galeria Kaufhof stores and 16 Sportarena stores in Germany, 16 department stores of the subsidiary Galeria Inno in Belgium and 59 real estate properties owned or managed by the Galeria Real Estate Group. The Supervisory Board of METRO AG had already approved the agreement before 30 June 2015. Against this background, the assets and liabilities of the Galeria Kaufhof segment as of 30 June 2015 were classified as a discontinued operation in accordance with IFRS 5 and reported in the balance sheet under assets held for sale (€2,291 million) and under liabilities related to assets held for sale (€1,258 million). As a result, the balance of the assets and liabilities held for sale of the discontinued operation Galeria Kaufhof amounted to €1,033 million. As the sale was completed on 30 September 2015, the department store business was deconsolidated as of the same date. The assets disposed of amount to €4,017 million. The balance from this and liabilities of €2,516 million disposed of in the context of deconsolidation totalled €1,501 million. Together with all associated consolidation components in the consolidated income statement, current earnings of the Galeria Kaufhof segment were reclassified to profit or loss for the period from discontinued operations after taxes. The previous year’s figures have been restated accordingly. No impairment losses had to be recognised as the fair value less costs to sell of the discontinued operation exceeded the recognised carrying amounts. The deconsolidation result from the divestment process and all expenses that were previously directly related to the disposal of the department store business were also shown under profit or loss for the period from discontinued operations after taxes.

As a result, profit or loss for the period from discontinued operations after taxes comprises the following components:

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€ million

2013/14

2014/15

Sales

3,098

3,021

Expenses

−2,925

−2,868

Current earnings from discontinued operations before taxes

173

153

Income taxes on current earnings

12

−15

Current earnings from discontinued operations after taxes

185

138

Gains/losses from the remeasurement or disposal of discontinued operations before taxes

0

797

Income taxes on gains/losses from remeasurement or disposal

0

0

Gains/losses from the remeasurement or disposal of discontinued operations after taxes

0

797

Profit or loss for the period from discontinued operations after taxes

185

935

Profit or loss for the period from discontinued operations after taxes is fully attributable to the shareholders of METRO AG.

The reconciliation from profit or loss for the period to other comprehensive income includes €33 million from the valuation of pension plans of Galeria Kaufhof. The related income tax effect amounted to €–9 million.

In METRO GROUP’s cash flow statement, cash flows from operating, investing and financing activities are shown separately for discontinued operations. The previous year’s figures in the cash flow statement have been adjusted accordingly.