Food Lion 2012 Annual Report Download - page 175

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DELHAIZE GROUP ANNUAL REPORT ‘12 // 173
Operating leases
A lease that does not qualify as a
finance lease and therefore is not
recorded on the balance sheet.
Operating lease costs are classified
in rent expense in cost of sales and
in selling, general and administra-
tive expenses.
Operating margin
Operating profit divided by revenues.
Organic revenue growth
Sales growth excluding sales from
acquisitions and divestitures at
identical currency exchange rates,
and adjusted for calendar effects.
Other operating expenses
Primarily store closing expenses,
impairment losses, losses on the
sale of fixed assets and hurricane-
related expenses.
Other operating income
Primarily rental income on invest-
ment property, gains on sale of
fixed assets, recycling income and
services rendered to wholesale cus-
tomers.
Outstanding shares
The number of shares issued by the
Company, excluding treasury shares.
Pay-out ratio (net earnings)
Proposed dividends on current year
earnings divided by current year
Group share in net profit.
Return on equity
Group share in net profit (loss) divided
by average shareholders’ equity.
Revenues
Revenues include the sale of goods
and point of sale services to cus-
tomers, including wholesale and
affiliated customers, relating to the
normal activity of the Company (the
sale of groceries and pet products),
net of discounts, allowances and
rebates granted to those customers.
Selling, general and
administrative expenses
Selling, general and administrative
expenses include store operating
expenses, costs incurred for activi-
ties which serve securing sales,
administrative and advertising
expenses.
SKU
Stock Keeping Unit.
Total debt
Long-term financial liabilities,
including current portion and obli-
gations under finance leases, plus
short-term financial liabilities net
of derivative instruments related to
financial liabilities.
Treasury shares
Shares repurchased by one of the
Group’s legal entities and that are
not cancelled as of year-end date.
Treasury shares are excluded from
the number of shares outstanding
and excluded from the calculation
of the weighted average number of
shares for the purpose of calculat-
ing earnings per share.
Underlying operating profit
Operating profit (as reported)
excluding fixed assets impairment
charges, restructuring charges,
store closing expenses, gains/
losses on disposal of fixed assets
and other items that management
considers as not being representa-
tive of the Group’s operating perfor-
mance of the period.
Weighted average number
of shares outstanding
Number of shares outstanding at the
beginning of the period less treasury
shares, adjusted by the number of
shares cancelled, repurchased or
issued during the period multiplied
by a time-weighting factor.
Withholding tax
Withholding by a corporation or
financial institution of a certain per-
centage of dividend payments due
to tax legislation.