Food Lion 2001 Annual Report Download - page 62

60 |Delhaize Group |Annual Report 2001
supermarkets owned by Delimmo, as well as legal revaluation of
Alfa-Beta land and buildings recorded in 2000.
9. Group Reserves
(in millions of EUR) 2001 2000
Parent company reserves
Legal reserve 4.6 2.6
Reserves not available for distribution 0.4 0.4
Untaxed reserves 44.0 44.0
Distributable reserves 15.7 15.2
Profit carried forward 9.3 4.3
Subtotal 74.0 66.5
Consolidated reserves 1,104.2 1,101.5
Total 1,178.2 1,168.0
In line with previous policy and practice in relation to operations involv-
ing capital and reserves of subsidiary companies, Delhaize Group has
taken to reserve the negative dilution effect of EUR 5.1 million arising
from Delhaize America capital transactions that occurred prior to the
share exchange.
Group Reserves (in thousands of EUR)
As of December 31, 2000, Group reserves represented: 1,167,988
• Group share in consolidated results 149,420
• Dividends and directors’share of profit (134,529)
• Dilution effect (5,144)
• Transfer from taxed revaluation surplus 439
As of December 31, 2001, Group reserves represented 1,178,174
10. Cumulative Translation Adjustment
(in millions of EUR)
Year U.S. Euro Zone Other Difference Change Cumulative
Companies Companies Companies on Results over the Total
Year
1997 (*) 30.6 (5.1) (3.4) (10.2) 11.9 11.9
1998 (38.9) 0.4 1.3 (5.7) (42.9) (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
216.0 (6.4) 7.0 (6.9) 209.7
(*) cumulative 1977-1997
The positive movement of the translation adjustment is mainly due to the
increase of 5.6% in the USD rate as of December 31, 2001, used to trans-
late the value of assets and liabilities of the U.S. companies.
Existing cumulative translation adjustment 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 consolidat-
ed companies which are not wholly owned by Delhaize Group.
(in millions of EUR) 2001 2000
United States -1,475.6
Rest of Europe 30.7 31.9
Asia 4.5 1.7
Corporate 0.4 0.5
35.6 1,509.7
Changes in minority interests are as follows:
(in millions of EUR)
Balance as of December 31, 2000 1,509.7
Changes in consolidation scope and percentage held (1,534.1)
Minority interest in the consolidated profit 19.3
Dividends paid to minority shareholders (18.4)
Translation difference 59.1
Balance as of December 31, 2001 35.6
The movement of EUR (1,534.1) million is mainly due to the share
exchange by which Delhaize Group acquired the 55% of Delhaize
America shares that it not already owned.
12. Provisions for Liabilities and Charges
(in millions of EUR) 2001 2000
United States 221.4 344.9
Belgium 2.3 3.6
Rest of Europe 4.7 1.6
Asia --
Corporate 139.6 3.5
368.0 353.6
The amount of EUR 221.4 million at Delhaize America represents main-
ly provisions for store closings (EUR 187.0 million), that consist essen-
tially of rents to be paid on leased assets. During 2001, Delhaize America
recorded new provisions of EUR 8.5 million for the closing of 12 stores
in the normal course of business. One distribution center and 189 stores
(of which 179 already closed) are covered by these provisions.
Provisions at corporate level mainly represent self-insurance reserves
amounting to EUR 118.1 million as of December 31, 2001. During 2001,
the self-insurance reserve of Delhaize America was transferred to a
Delhaize Group wholly-owned subsidiary based in Ireland. The Pride
Reinsurance Company Ltd (Pride) has been created in August 2001.
Delhaize America is insured by Pride for workers’compensation, gener-
al liability and vehicle accident claims, for a maximum of USD 500,000
per individual claim.
In connection with the liquidation of Super Discount Markets, Delhaize
Group has recorded a provision of EUR 17.8 million to cover its share of
the estimated future expenses that were guaranteed by Super Discount
Markets’shareholders. These expenses are mainly employee benefits and
non-cancellable lease obligations.
13. Deferred Taxation
(in millions of EUR) 2001 2000
• Deferred taxes in the accounts of
Delhaize America 528.1 125.9
• Taxes on consolidation adjustments
relating to Delhaize America 43.4 61.4
• Taxes on consolidation adjustments
relating to Delhaize Belgium 45.3 33.2
• Taxes on consolidation adjustments
relating to Alfa-Beta 6.8 4.8
• Others 1.7 (0.3)
625.3 225.-