Food Lion 2010 Annual Report Download - page 137

Delhaize Group - Annual Report 2010 133
SUPPLEMENTARY INFORMATION HISTORICAL FINANCIAL OVERVIEW CERTIFICATION OF RESPONSIBLE
PERSONS REPORT OF THE STATUTORY AUDITOR SUMMARY STATUTORY ACCOUNTS OF DELHAIZE GROUP SA
23. Accrued Expenses
(in millions of EUR) December 31,
2010 2009 2008
Accrued payroll and short-term benefits 299 302 286
Accrued interest 37 37 40
Other 57 58 52
Total accrued expenses 393 397 378
24. Expenses from Continuing Operations by Nature
The aggregate of cost of sales and selling, general and administrative expenses from continuing operations can be specified by nature as
follows:
(in millions of EUR) Note 2010 2009 2008
Product cost, net of vendor allowances and cash discounts 25 14 905 14 255 13 665
Employee benefit expenses 26 2 839 2 752 2 607
Supplies, services and utilities purchased 761 765 761
Depreciation and amortization 7, 8, 9 575 515 474
Operating lease expenses 18.3 295 270 245
Bad debt allowance expense 14 6 20 15
Other expenses(1) 510 428 399
Total expenses by nature 19 891 19 005 18 166
Cost of Sales 25 15 497 14 813 14 204
Selling, general and administrative expenses 4 394 4 192 3 962
Total expenses by function 19 891 19 005 18 166
(1) Allowances and credits received from suppliers that represent a reimbursement of specific and identifiable non-product costs incurred by the Group (see Note 25) have been included for the purposes of this
overview in “Other expenses.”
25. Cost of Sales
(in millions of EUR) 2010 2009 2008
Product cost, net of vendor allowances and cash discounts 14 905 14 255 13 665
Purchasing, distribution and transportation costs 592 558 539
Total 15 497 14 813 14 204
Delhaize Group receives allowances and credits from suppliers mainly for in-store promotions, co-operative advertising, new product introduc-
tion and volume incentives. In accordance with the Group’s accounting policies, described in Note 2.3, 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 9 million, EUR 5 million and EUR 4 million in 2010, 2009 and 2008, respectively).
26. Employee Benefit Expense
Employee benefit expenses for continuing operations can be summarized and compared to prior years as follows:
(in millions of EUR) Note 2010 2009 2008
Wages, salaries and short-term benefits including social security 2 766 2 672 2 529
Share option expense 21.3 16 20 21
Retirement benefits (including defined contribution, defined benefit and
other post-employment benefits) 21.1, 21.2 57 60 57
Total 2 839 2 752 2 607
Employee benefit expenses were recognized in the income statement as follows:
(in millions of EUR) 2010 2009 2008
Cost of sales 354 336 317
Selling, general and administrative expenses 2 485 2 416 2 290
Employee benefits for continuing operations 2 839 2 752 2 607
Results from discontinued operations - 2 3
Total 2 839 2 754 2 610