Food Lion 2008 Annual Report Download - page 109
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Please find page 109 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.The computation of basic and diluted earnings per share for the years ended December 31, 2008, 2007 and 2006 is as follows:
(in millions of EUR, except numbers of shares and earnings per share) 2008 2007 2006
Net profit from continuing operations 485 401 426
Net profit from continuing operations attributable to minority interests 12 15 9
Group share in net profit from continuing operations 473 386 417
Interest expense on convertible bond, net of tax 6 7 10
Group share in net profit from continuing operations for diluted earnings 479 393 427
Result from discontinued operations, net of tax (6) 24 (65)
Group share in net profit for diluted earnings 473 417 362
Weighted average number of ordinary shares outstanding 99 385 055 97 666 467 94 938 517
Adjusted for:
Dilutive effect of share-based awards 750 485 1 800 979 1 704 630
Dilutive effect of convertible bond 2 995 630 3 981 052 5 263 158
Weighted average number of diluted ordinary shares outstanding 103 131 170 103 448 498 101 906 305
Basic earnings per ordinary share (in EUR):
From continuing operations 4.76 3.95 4.40
From discontinuing operations (0.06) 0.25 (0.69)
Basic EPS attributable to the equity holder of the Group 4.70 4.20 3.71
Diluted earnings per ordinary share (in EUR):
From continuing operations 4.65 3.80 4.19
From discontinuing operations (0.06) 0.24 (0.64)
Diluted EPS attributable to the equity holder of the Group 4.59 4.04 3.55
28. Discontinued Operations
In November 2006, Delhaize Group reached a binding agreement to sell Delvita, its operations in the Czech Republic to the German retail group REWE, for
EUR 100 million. The assets and liabilities of the entity were classified as a disposal group held for sale as of September 30, 2006 (see Note 5) and the sale was
completed in May 2007. The operational results of Delvita during the first five months of 2007 were classified as result from discontinued operations, as well as
the positive accumulated foreign currency translation adjustment of EUR 24 million.
In April 2008, Food Lion Thailand Ltd, a dormant company, was liquidated resulting in a gain from discontinued operations of EUR 2 million.
In December 2008, management of Delhaize Group committed to sell its German activities, due to continued loss-making operations and lack of long-term
perspectives for changing this trend (see Note 5). As at December 31, 2008, Delhaize Deutschland GmbH was classified as a disposal group held for sale and
qualified simultaneously as a discontinued operation. Delhaize Group recognized an impairment loss of EUR 8 million in order to write down the carrying value
of Delhaize Deutschland GmbH to its fair value less costs to sell.
The result of discontinued operations and corresponding cash flow information can be summarized and compared to prior years as follows:
(in millions of EUR, except per share information) 2008 2007 2006
Revenues 20 135 298
Cost of sales (11) (104) (231)
Other operating income - 2 4
Selling, general and administrative expenses (9) (31) (68)
Other operating expenses (8) 1 (67)
Finance income (costs) 2 20 (4)
Result before tax (6) 23 (68)
Income taxes - 1 3
Result from discontinued operations (net of tax) (6) 24 (65)
Basic earnings per share from discontinued operations (0.06) 0.25 (0.69)
Diluted earnings per share from discontinued operations (0.06) 0.24 (0.64)
Operating cash flows 3 (4) 5
Investing cash flows (1) (2) (7)
Financing cash flows - (1) (1)
Total cash flows 2 (7) (3)
The pre-tax (loss) gain recognized on the re-measurement or sale of assets related to discontinued operations was EUR (8) million, EUR 1 million and EUR (64) million
in 2008, 2007 and 2006, respectively, and was recorded in discontinued operations as other operating expenses. In addition, the expenses associated with store
closings, recorded as other operating expenses in discontinued operations, amounted to nihil in 2008 and EUR 1 million in 2007 and 2006.
29. Share-Based Compensation
Delhaize Group offers share-based incentives to certain members of management: stock option and warrant plans for associates of its non-U.S. operating
companies; stock option, warrant and restricted stock unit plans for associates of its U.S. based companies. Under a warrant plan the exercise by the associate
of a warrant results in the creation of a new share, while stock option or restricted stock unit plans are based on existing shares. Restricted stock unit awards
represent the right to receive the number of ADRs set forth in the award at the vesting date at no cost to plan participants.
105
Certiļ¬cation of Responsible
Persons
Historical
Financial Overview
Report of the
Statutory Auditor
Summary Statutory Accounts of
Delhaize Group SA
Supplementary
Information