Food Lion 2008 Annual Report Download - page 95
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Please find page 95 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.Retained Earnings
According to Belgian law, 5% of the statutory net income of the parent company must be transferred each year to a legal reserve until the legal reserve reaches
10% of the capital. At December 31, 2008, 2007 and 2006, Delhaize Group’s legal reserve amounted to EUR 5 million and was recorded in retained earnings.
Generally, this reserve cannot be distributed to the shareholders other than upon liquidation.
The Board of Directors may propose a dividend distribution to shareholders up to the amount of the distributable reserves of Delhaize Group SA, including the
profit of the last fiscal year, subject to the dividend restriction test (see Note 18). The shareholders at Delhaize Group’s Ordinary General Meeting must approve
such dividends.
Other Reserves
Other reserves include a deferred loss on the settlement of a hedge agreement in 2001 related to securing financing for the Hannaford acquisition by Delhaize
America, and a deferred gain related to the 2007 debt refinancing (see Note 20). Both deferred loss and deferred gain are being amortized over the life of the
underlying debt instruments. Other reserves also include actuarial gains and losses on defined benefit plans and unrealized gains and losses on securities avail-
able for sale.
(in millions of EUR) December 31,
2008 2007 2006
Deferred gain (loss) on hedge:
Gross (17) (16) (37)
Tax effect 7 6 14
Actuarial gain (loss) on defined benefit plans:
Gross (38) (6) (16)
Tax effect 15 2 5
Amount attributable to minority interest - 1 1
Unrealized gain (loss) on securities available-for-sale:
Gross 9 2 -
Tax effect (1) (1) -
Total other reserves (25) (12) (33)
Cumulative Translation Adjustment
The cumulative translation adjustment relates to changes in the balance of assets and liabilities due to changes in the functional currency of the Group’s subsidiaries
relative to the Group’s reporting currency. The balance in cumulative translation adjustment is mainly impacted by the appreciation or depreciation of the U.S. dollar
to the euro.
Capital Management
The Group manages its capital in order to maximize shareholder value while keeping sufficient flexibility to execute strategic projects. We monitor capital by using
the same debt/equity classifications as applied in our IFRS reporting.
Minority Interests
Minority interests represent third-party interests in the equity of fully consolidated companies that are not wholly owned by Delhaize Group.
Minority Interests (in millions of EUR) December 31,
2008 2007 2006
Belgium 1 1 -
Greece 51 48 36
Total 52 49 36
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Certification of Responsible
Persons
Historical
Financial Overview
Report of the
Statutory Auditor
Summary Statutory Accounts of
Delhaize Group SA
Supplementary
Information