Food Lion 2009 Annual Report Download - page 160

156 - Delhaize Group - Annual Report 2009
GLOSSARY
Accounts payable days
Accounts payable divided by cost of sales and selling,
general and administrative expenses less employee
benefit expense, multiplied by 365.
Affiliated store
A store operated by an independent retailer to whom
Delhaize Group sells its products at wholesale prices
and who benefits from the trade name and knowhow
of Delhaize Group.
American Depositary Receipt (ADR)
An American Depositary Receipt evidences an
American Depositary Share (ADS).
American Depositary Share (ADS)
An American Depositary Share represents ownership
in the common shares of a non-U.S. corporation. The
underlying common shares are held by a U.S. bank
as depositary agent. The holder of an ADS benefits
from dividend and voting rights pertaining to the
underlying common share through the bank that
issued the ADS. Each Delhaize Group ADS represents
one share of Delhaize Group common stock and is
traded on the New York Stock Exchange.
Average shareholders’ equity
Shareholders’ equity at the beginning of the year plus
shareholders’ equity at the end of the year, divided
by two.
Basic earnings per share
Profit or loss attributable to ordinary equity holders
of the parent entity divided by the weighted average
number of ordinary shares outstanding during the
period. Basic earnings per share are calculated
on profit from continuing operations less minority
interests attributable to continuing operations, and
on the Group share in net profit.
Company-operated store
A store operated directly by Delhaize Group.
Comparable store sales
Sales from the same stores, including relocations
and expansions, and adjusted for calendar effects.
Cost of sales
Cost of sales includes purchases of products sold
and all costs associated with getting the products into
the retail stores, including buying, warehousing and
transportation costs. Finally, Cost of Sales includes
appropriate vendor allowances.
Delhaize Belgium
Delhaize Belgium is not a separate legal entity. In the
consolidated financial statements, any reference to
“Delhaize Belgium” is a reference to the consolidation
of the statutory accounts of the Belgian companies,
of which the major ones are Delhaize Group SA,
Delimmo SA, Delhome SA, Aniserco SA, Points Plus
Punten SA, Wambacq & Peeters SA, Wintrucks SA and
the companies acquired as part of the Cash Fresh
acquisition (see note 36 to the Financial Statements),
excluding corporate expenses. In the remainder
of the document, “Delhaize Belgium” refers to the
operations of Delhaize Group in Belgium, the Grand-
Duchy of Luxembourg and France.
Diluted earnings per share
Calculated by adjusting the profit or loss attributable
to ordinary equity shareholders and the weighted
average number of shares outstanding for the effects
of all dilutive potential ordinary shares, including
those related to convertible instruments, options
or warrants or shares issued upon the satisfaction
of specified conditions. Diluted earnings per share
are calculated on profit from continuing operations
less minority interests attributable to continuing
operations, and on the Group share in net profit.
Direct goods
Goods sold to customers.
Enterprise value
Market capitalization plus net debt.
Free cash flow
Cash flow before financing activities, investment
in debt securities and sale and maturity of debt
securities.
Gross margin
Gross profit divided by revenues.
Gross profit
Revenues minus cost of sales.
Indirect goods
Goods necessary to operate the business, but which
are not sold to customers, such as office and store
equipment.
Inventory turnover
Inventories at year-end divided by cost of sales, net
of vendor allowances and cash discounts, multiplied
by 365.
Net debt
Non-current financial liabilities, plus current financial
liabilities and derivatives liabilities, minus derivative
assets, investments in securities, and cash and cash
equivalents.
Net debt to equity ratio
Net debt divided by total equity.
Net financial expenses
Finance costs less income from investments.
Net margin
Net profit attributed to equity holders of the Group
divided by revenues.
Operating leases
A lease that does not qualify as a finance lease
and therefore is not recorded on the balance
sheet. Operating lease costs are classified in rent
expense in cost of sales and in selling, general and
administrative expenses.
Operating margin
Operating profit divided by revenues.
Organic revenue growth
Sales growth excluding sales from acquisitions and
divestitures at identical currency exchange rates, and
adjusted for calendar effects.
Other operating expenses
Primarily store closing expenses, impairment losses,
losses on the sale of fixed assets and hurricane-
related expenses.
Other operating income
Primarily rental income on investment property, gains
on sale of fixed assets, recycling income and services
rendered to wholesale customers.
Outstanding shares
The number of shares issued by the Company,
excluding treasury shares.
Pay-out ratio (net earnings)
Proposed dividends on current year earnings divided
by current year Group share in net profit.
Return on equity
Group share in net profit (loss) divided by average
shareholders’ equity.
Revenues
Revenues include the sale of goods and point of
sale services to customers, including wholesale and
affiliated customers, relating to the normal activity of
the Company (the sale of groceries and pet products),
net of discounts, allowances and rebates granted to
those customers.
Selling, general and administrative expenses
Selling, general and administrative expenses include
store operating expenses, costs incurred for activities
which serve securing sales, administrative and
advertising expenses.
SKU
Stock Keeping Unit.
Total debt
Long-term financial liabilities, including current
portion and obligations under finance leases,
plus short-term financial liabilities net of derivative
instruments related to financial liabilities.
Treasury shares
Shares repurchased by one of the Group’s legal
entities and that are not cancelled as of year-
end date. Treasury shares are excluded from the
number of shares outstanding and excluded from
the calculation of the weighted average number of
shares for the purpose of calculating earnings per
share.
Weighted average number of shares
outstanding
Number of shares outstanding at the beginning of the
period less treasury shares, adjusted by the number
of shares cancelled, repurchased or issued during
the period multiplied by a time-weighting factor.
Withholding tax
Withholding by a corporation or financial institution
of a certain percentage of dividend payments due to
tax legislation.