Food Lion 2012 Annual Report Download - page 30

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28 //
REVIEW
At the end of 2012, Delhaize Group
had total annual minimum operat-
ing lease commitments for 2013
of €312 million, including €21 mil-
lion related to closed stores. These
leases generally have terms that
range between 1 and 45 years with
renewal options ranging from 3 to
30 years.
Events after
Balance Sheet Date
On January 3, 2013, Delhaize Group
redeemed the remaining $99 mil-
lion of the $300 million 5.875% sen-
ior notes due 2014 and the underly-
ing cross-currency swap.
On January 17, 2013, Delhaize
Group announced the decision to
close 52 stores, 45 stores in the
U.S. (34 Sweetbay, 8 Food Lion and
3 Bottom Dollar Food), 6 stores in
Southeastern Europe and 1 store
in Belgium. As a result, the group
recorded an impairment charge of
€49 million in the fourth quarter of
2012. During the fi rst part of 2013,
the Group expects earnings to be
impacted by approximately €80
million to refl ect store closing liabili-
ties including a reserve for ongoing
lease and severance obligations.
In addition, the Group will record
charges of approximately $20 mil-
lion (€15 million) in the fi rst quarter
of 2013 related to the severance of
senior management and of sup-
port services associates in the U.S.
In January 2013, the Greek parlia-
ment prospectively enacted an
increase in the Greek corporate tax
rate from 20 to 26%. The impact on
Alfa Beta will be immaterial.
In February 2013, Delhaize Group
launched a tender offer to acquire
16% non-controlling interest in
C-Market (Serbian subsidiary), held
by the Serbian Privatization Agency,
at a price of €300 per share. At
December 31, 2012 Delhaize Group
owned 75.4% of C-Market, or
150 254 shares.
In February 2013, Delhaize Group
completed the sale of its Albanian
activities and recorded a gain of
approximately €1 million.
NON-GAAP MEASURES
In its fi nancial communication, Delhaize
Group uses certain measures that have
no defi nition under IFRS or other generally
accepted accounting standards (non-
GAAP measures). Delhaize Group does not
represent these measures as alternative
measures to net profi t or other fi nancial
measures determined in accordance
with IFRS. These measures as reported by
Delhaize Group might differ from similarly
titled measures by other companies. We
believe that these measures are important
indicators for our business and are widely
used by investors, analysts and other
parties. A reconciliation of these measures
to IFRS measures can be found in the
chapter “Supplementary Information” of
the Financial Statements (www.annual-
reports.delhaizegroup.com). A defi nition of
non-GAAP measures and ratio composed
of non-GAAP measures can be found in
the glossary. The non-GAAP measures pro-
vided in this report have not been audited
by the statutory auditor.
(1) Excluding fi nance
leases; principal
payments (related
premiums and
discounts not taken into
account) after effect of
cross-currency interest
rate swaps.
DEBT MATURITY PROFILE
(1)
(AFTER SWAPS) (in millions of €)
2013 2014 2015 2016 2017 2018 2019 2020 2027 2031 2040
164
232
341
400
400
8
225
211
627
54