Food Lion 2010 Annual Report Download - page 160

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Glossary
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.
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.