Food Lion 2008 Annual Report Download - page 114
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Outstanding at beginning of year 468 941
Granted 466 503
Released from restriction (174 000)
Forfeited/expired (58 334)
Outstanding at end of year 703 110
The weighted average fair value at date of grant for restricted stock unit awards granted during 2008, 2007 and 2006 was USD 74.74, USD 96.30 and USD 63.04
based on the share price at the grant date, respectively.
30. Cost of Sales
(in millions of EUR) 2008 2007 2006
Product cost, net of vendor allowances and cash discounts 13 665 13 631 13 844
Purchasing, distribution and transportation costs 539 524 523
Total 14 204 14 155 14 367
Delhaize Group receives allowances and credits from suppliers mainly for in-store promotions, co-operative advertising, new product introduction and volume
incentives. In accordance with the Group’s accounting policies, laid out in Note 2, these allowances are included in the cost of inventory and recognized as a
reduction to cost of sales when the product is sold, unless they represent the reimbursement of a specific and identifiable cost incurred by the Group to sell the
vendor’s product in which case they are recorded as a reduction in “Selling, general and administrative expenses” (EUR 4.5 million, EUR 4.3 million and EUR 4.8
million in 2008, 2007 and 2006, respectively).
31. Employee Benefit Expense
Employee benefit expenses for continuing operations can be summarized and compared to prior years as follows:
(in millions of EUR) Note 2008 2007 2006
Wages, salaries and short-term benefits including social security 2 529 2 506 2 543
Share option expense 29 21 22 23
Retirement benefits (including defined contribution, defined benefit and
other post-employment benefits) 24 57 60 45
Total 2 607 2 588 2 611
Employee benefit expenses were recognized in the income statement as follows:
(in millions of EUR) 2008 2007 2006
Cost of sales 317 316 315
Selling, general and administrative expenses 2 290 2 272 2 296
Employee benefits for continuing operations 2 607 2 588 2 611
Results from discontinued operations 3 15 30
Total 2 610 2 603 2 641
32. Other Operating Income
Other operating income includes income generated from activities other than sales and point of sale services to retail and wholesale customers.
(in millions of EUR) 2008 2007 2006
Rental income 28 28 25
Income from recycling activities 18 21 15
Services rendered to suppliers 14 15 13
Sale of business 4 11 1
Gains on sale of property, plant and equipment 12 11 6
Services rendered to wholesale customers 3 2 2
Return check services 4 4 4
Other 13 16 17
Total 96 108 83
In 2007 “sale of business” represents mainly the various sales transactions of Cash Fresh stores to independent owners. “Other” primarily includes in-store
advertising and litigation settlement income.
Certain prior year adjustments and reclassifications were done to more appropriately detail the other operating income.
Consolidated
Balance Sheets
Consolidated
Income Statements
Consolidated Statements of
Recognized Income and Expense
Consolidated
Statements of Cash Flows
110 - Delhaize Group - Annual Report 2008
Notes to the
Financial Statements