Food Lion 2002 Annual Report Download - page 50

48 |Delhaize Group |Annual Report 2002
10. Cumulative Translation Adjustment
(in millions of EUR)
Year USD Euro Zone Other Difference Change Cumulative
Companies Companies Companies on Results over the Year Total
1998(*) (8.3) (4.7) (2.1) (15.9) (31.0) (31.0)
1999 104.2 (0.1) 0.9 8.9 113.9 82.9
2000 46.6 (1.6) (0.9) (0.8) 43.3 126.2
2001 73.5 - 9.1 0.9 83.5 209.7
2002 (263.1) - 0.7 (21.4) (283.8) (74.1)
(47.1) (6.4) 7.7 (28.3) (74.1)
(*) Cumulative 1977-1998
The negative movement of the translation adjustment is mainly due to the
decrease of 16.0% in the USD rate as of December 31, 2002, used to
translate the value of assets and liabilities of the U.S. companies.
Existing cumulative translation adjustments related to companies of the
euro zone will be maintained as they are in the account “Cumulative
translation adjustment” until the sale of these holdings.
11. Minority Interests
This account covers third-party interests in the equity of fully consoli-
dated companies which are not wholly owned by Delhaize Group.
(in millions of EUR) 2002 2001
Southern and Central Europe 28.9 30.7
Asia 5.0 4.5
Belgium 0.4 0.4
Total 34.3 35.6
Changes in minority interests are as follows:
(in millions of EUR)
Balance as of December 31, 2001 35.6
Changes in consolidation scope and percentage held (1.7)
Minority interest in the consolidated profit 1.6
Dividends paid to minority shareholders (1.3)
Translation difference 0.1
Balance as of December 31, 2002 34.3
12. Provisions for Liabilities and Charges
(in millions of EUR) 2002 2001
United States 186.6 221.4
Belgium 3.6 2.3
Southern and Central Europe 8.7 4.7
Asia 0.1 -
Corporate 125.9 139.6
Total 324.9 368.0
The amount of EUR 186.6 million at Delhaize America mainly consists
of :
• Provisions for store closings (EUR 139.8 million), representing essen-
tially rents to be paid on leased assets and related to the estimated costs
of 172 closed stores, 5 planned closings and one distribution center.
During 2002, Delhaize America recorded new provisions of EUR 5.0
million for the closing of 15 stores in the normal course of business.
• A pension liability (EUR 32.9 million), recorded to reflect the difference
between the accumulated benefit obligation related to the Hannaford
defined benefit pension plan and the value of plan assets.
The provisions at Corporate level mainly represent:
• Self-insurance reserves at The Pride Reinsurance Company Ltd (Pride)
amounting to EUR 108.5 million as of December 31, 2002. Delhaize
Group self-insurance reserves relate to workers’ compensation, general
liability and vehicle accident claims, for a maximum of USD 500,000
per individual claim.
• The provision (EUR 12.5 million) recorded at the end of 2001 by
Delhaize Group to cover its share of the estimated future expenses
(mainly employee benefits and non-cancellable lease obligations) that
were guaranteed by Super Discount Markets’ two shareholders.
13. Deferred Taxation
(in millions of EUR) 2002 2001
• Deferred taxes in the accounts of
Delhaize America 329.7 528.1
• Taxes on consolidation adjustments
relating to Delhaize America 165.4 43.4
• Taxes on consolidation adjustments
relating to Delhaize Belgium 43.0 45.3
• Taxes on consolidation adjustments
relating to Alfa-Beta 7.1 6.8
• Others 0.7 1.7
Total 545.9 625.3
14. Amounts Falling Due after more than One Year
Analysis of Long-Term Debt Payable by Due Date (in thousands of EUR)
Debts by Due Date
Due in Less than One Year Due in More than One Year Due in More than
and Less than Five Years Five Years
Financial liabilities 57,826 1,108,956 2,681,546
Non-subordinated debenture loans 25,166 936,302 2,169,648
Liabilities under capital leases 32,410 154,651 511,898
Credit institutions 250 18,003 -
Trade creditors 1,814 - -
Other debt - 231 15,898
Total 59,640 1,109,187 2,697,444