Financial Statement Analysis Case Delhaize Group Presented in Illustration 21-30 are the financial statement disclosures from the 2012 annual report of Delhaize Group (BEL).

Instructions Answer the following questions related to these disclosures.

(a) What is the total obligation under finance leases at year-end 2012 for Delhaize?

(b) What is the total rental expense reported for leasing activity for the year ended December 31, 2012, for Delhaize?

(c) Estimate the off-balance-sheet liability due to Delhaize operating leases at fiscal year-end 2012.

Data From Illustration 21-30

Transcribed Image Text:

ILLUSTRATION 21-30 Disclosure of Leases by Lessee Delhaize Group (in millions) 2012 Non-Current Liabilities Long-term obligations under finance leases, less current portion 612 Current Liabilities Current obligations under finance leases 62 General description 18.3 Leases Delhaize Group operates a significant number of its stores under finance and operating lease arrangements. Various properties leased are (partially or fully) subleased to third parties, where the Group is therefore acting as a lessor (see further below). Lease terms (including reasonably certain renewal options) generally range from 1 to 45 years with renewal options ranging from 3 to 30 years. The schedule below provides the future minimum lease payments, which were not reduced by expected minimum sublease income of 35 million, due over the term of non-cancellable subleases, as of December 31, 2012: Reconciliation, timing, and amounts of cash outflows (in millions of ) 2013 2014 2015 2016 2017 Thereafter Total Finance leases Future minimum lease payments Less amount representing interest Present value of minimum 129 (67) 115 111 (64) (59) 101 90 (54) (48) 772 1,318 (352) (644) lease payments 62 51 52 52 47 42 142 420 674 Of which related to closed store lease obligations 6 5 5 5 4 33 58 Operating leases Future minimum lease payments (for non-cancellable leases) Of which related to closed store lease obligations 312 260 231 195 164 754 1,916 21 18 15 14 12 49 129