Food Lion 2008 Annual Report Download - page 107
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Please find page 107 of the 2008 Food Lion annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Profit before taxes can be reconciled with net profit as follows (in millions of EUR):
Profit before taxes
(in millions of EUR) 2008 2007 2006
Continuing operations 702 605 671
Discontinued operations (6) 23 (68)
Total profit before taxes 696 628 603
Continuing and discontinued operations
Current tax 195 213 290
Taxes related to prior year recorded in the current year (14) (1) 2
Deferred tax 38 (9) (49)
Recognition of deferred tax on previously unrecognized tax losses and tax credits - - (1)
Deferred tax expense relating to changes in tax rates or the imposition of new taxes (2) - -
Total income tax expense from continuing and discontinued operations 217 203 242
Net profit 479 425 361
The following is a reconciliation of Delhaize Group’s Belgian statutory income tax rate to Delhaize Group’s effective income tax rate:
2008 2007 2006
Belgian statutory income tax rate 34.0% 34.0% 34.0%
Items affecting the Belgian statutory income tax rate:
Taxation in jurisdictions outside Belgium
(primarily due to United States federal and state income tax rates applied to the income of Delhaize America)(1) 2.5 3.5 4.2
Non-taxable income(2) - (1.6) (3.8)
Non-deductible loss related to disposal of Delvita - - 3.6
Deductions from taxable income (4.4) (3.2) -
Effect of unrecognized tax losses and tax credits - - 0.3
Tax charges on dividend income(3) - (0.3) 1.1
Statutory revaluation of assets (0.5) - -
Changes in tax rate (0.2) - -
Other (0.2) - 0.8
Effective tax rate 31.2% 32.4% 40.2%
(1) In 2008, approximately 78% (2007: 69%, 2006: 86%) of Delhaize Group’s consolidated profit before tax was attributable to Delhaize Group’s U.S. operations, which had an effective tax rate of 37.1% (2007: 39.0%, 2006: 38.9%).
(2) In 2007, non-taxable income relates to income on disposal of subsidiaries. In 2006, non-taxable income related to the benefits from the Belgian coordination center.
(3) Including the effect of the refund received in 2007 related to withholding tax for a dividend declared by Delhaize America, Inc. to Delhaize Group in 2002.
The aggregated amount of current and deferred tax charged or (credited) directly to equity is as follows:
(in millions of EUR) 2008 2007 2006
Current tax (2) (16) (15)
Deferred tax (5) 11 7
Total tax credited directly to equity (7) (5) (8)
Delhaize Group has not recognized income taxes on undistributed earnings of its subsidiaries and proportionally consolidated joint-venture as the undistributed
earnings will not be distributed in the foreseeable future. The cumulative amount of undistributed earnings on which Delhaize Group has not recognized income
taxes was approximately EUR 2.2 billion at December 31, 2008, and EUR 1.7 billion at December 31, 2007 and 2006.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred income taxes relate to the same
fiscal authority. Deferred income taxes recognized on the balance sheet are as follows:
(in millions of EUR) December 31,
2008 2007 2006
Deferred tax liabilities 215 171 186
Deferred tax assets 8 6 8
Net deferred tax liabilities 207 165 178
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Certification of Responsible
Persons
Historical
Financial Overview
Report of the
Statutory Auditor
Summary Statutory Accounts of
Delhaize Group SA
Supplementary
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