Food Lion 2002 Annual Report Download - page 49

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Leases
Delhaize Group’s stores operate principally in leased premises. Lease
terms generally range from 3 to 27 years with renewal options ranging
from 3 to 20 years. The average remaining lease term for closed stores is
6.9 years. The following schedule details, at December 31, 2002, the
future minimum lease payments under capital and operating leases:
(in thousands of EUR) Capital Leases Operating Leases
Open Stores Closed Stores
2003 113,831 238,392 26,217
2004 113,439 232,391 25,028
2005 112,047 227,240 23,854
2006 110,745 217,228 22,603
2007 109,109 208,168 20,792
Thereafter 889,201 1,735,048 93,083
Total minimum payments 1,448,372 2,858,467 211,577
Less estimated executory costs (36,354)
Net minimum lease payments 1,412,018
Less amount representing interest (713,059)
Present value of net minimum
lease payments 698,959
Minimum payments have not been reduced by minimum sublease income
of approximately EUR 47 million due over the term of non-cancelable
subleases.
Rent payments, including scheduled rent increases, are recognized on a
straight-line basis over the minimum lease term.
Total Rent Expense under
Operating Leases for Open and Closed Stores (in millions of EUR)
2002 291
2001 298
2000 257
1999 203
1998 191
In addition, Delhaize Group has signed lease agreements for additional
store facilities, the construction of which was not complete at December
31, 2002. The leases expire on various dates extending to 2030 with
renewal options generally ranging from 3 to 20 years. Total future mini-
mum rents under these agreements are approximately EUR 156 million.
Provisions of approximately EUR 122 million and EUR 176 million at
December 31, 2002 and 2001, respectively, for remaining lease liabilities
on closed stores are included in provisions for liabilities and charges.
Delhaize Group uses a discount rate based on the current treasury note
rates to calculate the present value of the remaining rent payments on
closed stores.
6. Financial Fixed Assets
(in thousands of EUR) Equity Investments Other Companies
1. Investments
At the end of the previous year 531 7,115
Movements during the current year:
• Acquisitions - 6,357
• Sales and disposals - (3,269)
• Result of the year 43 -
• Translation difference (17) (1,027)
Net book value at the end
of the financial year 557 9,176
2. Receivables
At the end of the previous year 26,769
Movements during the current year:
• Additions 8,227
• Repayments (7,043)
• Translation difference (2,119)
Net book value at the end of the financial year 25,834
7. Capital and Share Premium Account
During 2002, there was no activity in connection with the share capital of
Delhaize Group.
8. Revaluation Reserves
(in millions of EUR) 2002 2001
Revaluation reserves 15.1 17.8
This represents the reserve recorded in the accounts of the Company in
1981, together with a reserve calculated for consolidation purposes on the
supermarkets owned by Delimmo SA.
9. Group Reserves
(in millions of EUR) 2002 2001
Parent company reserves :
Legal reserve 4.6 4.6
Reserves not available for distribution 0.4 0.4
Untaxed reserves 44.0 44.0
Distributable reserves 16.1 15.7
Profit carried forward 75.0 9.3
Subtotal 140.1 74.0
Consolidated reserves 1,137.2 1,104.2
Total 1,277.3 1,178.2
Group Reserves (in thousands of EUR)
As of December 31, 2001 1,178,174
• Group share in consolidated results 178,307
• Dividends and directors’ share of profit (81,906)
• Transfer from taxed revaluation surplus 2,750
As of December 31, 2002 1,277,325