LOBLAW LONG-TERM ASSETS REFERENCE INFORMATION
Loblaw
2012 Long-Term Assets
Reference Information
TABLE OF CONTENTS
Financial statements2
Fixed Assets6
Goodwill and Intangible Assets7
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson
1
2
NAVIGATING ACCOUNTING®
FINANCIAL STATEMENTS
LOBLAW
Consolidated Balance Sheets
(millions of Canadian dollars)
As at
As at
December 29, 2012
December 31, 2011
Assets
Current assets
Cash and cash equivalents (note 8)
$1,079
$966
716
456
754
467
Credit card receivables (note 10)
2,305
2,101
Inventories (note 11)
2,007
2,025
74
117
Short-term investments (note 8)
Accounts receivable (note 9)
Prepaid expenses and other assets
Assets held for sale (note 12)
30
32
Total current assets
6,667
6,462
Fixed assets (note 13)
8,973
8,725
Investment properties (note 14)
Goodwill and intangible assets (note 15)
100
82
1,057
1,029
Deferred income taxes (note 6)
260
232
Security deposits (note 8)
252
266
Franchise loans receivable
363
331
Other assets (note 16)
289
301
$17,961
$17,428
Total assets
Liabilities
Current liabilities
Trade payables and other liabilities
Provisions (note 17)
Income taxes payable
3,720
3,677
78
35
21
14
Short-term debt (note 18)
905
905
Long-term debt due within one year (note 19)
672
87
5,396
4,718
59
50
4,997
5,493
18
21
Capital securities (note 21)
223
222
Other liabilities (note 20)
851
917
11,544
11,421
Common Share Capital (note 21)
1,567
1,540
Retained earnings
4,790
4,414
55
48
Total current liabilities
Provisions (note 17)
Long-term debt (note 19)
Deferred income taxes (note 6)
Total liabilities
Shareholders' Equity
Contributed surplus (note 23)
Accumulated other comprehensive income
Total shareholders' equity
Total liabilities and shareholders' equity
5
5
6,417
6,007
$17,961
$17,428
See accompanying notes to consolidated financial statements
Loblaw 2012 Annual Report, page 46
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson
3
LOBLAW LONG-TERM ASSETS REFERENCE INFORMATION
LOBLAW
Consolidated Statement of Earnings
2012
2011
(millions of Canadian dollars except where otherwise indicated)
(52 weeks)
(52 weeks)
Revenue
$31,604
$31,250
Cost of merchandise inventories sold (note 11)
24,185
23,894
Selling, general and administrative expenses
6,223
5,972
Operating income
1,196
1,384
Net interest expense and other financing charges (note 5)
331
327
Earnings before income taxes
865
1,057
Income taxes (note 2)
215
288
$650
$769
For the years ended December 29, 2012 and December 31, 2011
Net earnings
See accompanying notes to consolidated financial statements
Loblaw 2012 Annual Report, page 43
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson
4
NAVIGATING ACCOUNTING®
LOBLAW
Consolidated Statement of Cash Flow
For the years ended December 29, 2012 and December 31, 2011
(millions of Canadian dollars except where otherwise indicated)
2012
2011
(52 weeks)
(52 weeks)
Operating activities
Net earnings
$650
$769
Income taxes (note 6)
215
288
Net interest expense and other financing charges (note 5)
331
327
Depreciation and amortization
777
699
(232)
(216)
52
60
Income taxes paid
Interest received
Settlement of equity forward contracts (note 27)
(7)
(204)
Change in credit card receivables (note 10)
(104)
Change in non-cash woking capita;
55
8
Fixed assets and related impairments
19
5
Gain on disposal of assets
(12)
(18)
Other
(14)
3
Cash flows from operating activities
1,637
1,814
Investing activities
(1,017)
Fixed asset purchases (note 13)
(987)
Change in short-term investments
20
18
Proceeds from fixed asset sales
62
57
(22)
(18)
11
92
(43)
(14)
Change in franchise investments and other receivables
Change in security deposits
Goodwill and intangible asset additions (note 15)
Other
(4)
Cash flows used in investing activities
(989)
(856)
Financing activities
Change in bank indebtedness
(10)
Change in short-term debt (note 18)
370
Long-term debt
Issued (note 19)
111
287
Retired (note 19)
(115)
(909)
Interest paid
(356)
(380)
Dividends paid (note 21)
(177)
(193)
22
21
(16)
(39)
(531)
(853)
Common shares
Issued (note 21)
Purchased for cancellation (note 21)
Cash flows used in financing activities
Effect of foreign currency exchange rate changes on cash and cash equivalents
(4)
4
Change in cash and cash equivalents
113
109
Cash and cash equivalents, beginning of year
996
857
$1,109
$966
Cash and cash equivalents, end of year
See accompanying notes to consolidated financial statements
Loblaw 2012 Annual Report, page 47
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson
5
LOBLAW LONG-TERM ASSETS REFERENCE INFORMATION
LOBLAW
Consolidated Statements of Changes in Shareholders' Equity
(millions of Canadian dollars except where otherwise indicated)
Balance at December 31, 2011
Net earnings
Common
share
capital
Retained
earnings
$1,540
$4,414
Contributed
surplus
Accumulated
other
comprehensive
income
Total
shareholders'
equity
$48
$5
$6,007
650
650
Other comprehensive loss (note 24)
(21)
(21)
Total comprehensive income
629
629
Net effect of share-based compensation (notes 21 and 23)
Common shares purchased for cancellation (note 21)
29
(2)
Dividends declared per common share - $0.85
27
Balance at December 29, 2012
(millions of Canadian dollars except where otherwise indicated)
Balance at Januaray 1, 2011
Net earnings
$1,567
36
(14)
(16)
(239)
(239)
(253)
$4,790
7
0
$55
$5
$6,417
Total
shareholders'
equity
$5,603
Common
share
capital
Retained
earnings
Contributed
surplus
Accumulated
other
comprehensive
income
$1,475
$4,122
$1
$5
Other comprehensive loss (note 24)
Total comprehensive income
Dividend reinvestment plan (note 21)
43
Net effect of share-based compensation (notes 21 and 23)
Common shares purchased for cancellation (note 21)
28
(6)
Dividends declared per common share - $0.84
$1,540
(219)
769
769
(208)
(208)
561
561
43
47
75
(33)
(39)
(236)
65
Balance at December 31, 2011
7
(269)
$4,414
(236)
47
0
$48
$5
(157)
$6,007
See accompanying notes to consolidated financial statements
Loblaw 2012 Annual Report, page 45
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson
6
NAVIGATING ACCOUNTING®
FIXED ASSETS
LOBLAW
Fixed Assets
2012
Land
Cost
Balance beginning of year
Additions
Disposals
Transfer to assets held for sale
Transfer (to)/from investment properties
Transfer from assets under construction
Balance end of year
Accumulated depreciation and impairment losses
Balance beginning of year
Depreciation
Impairment losses
Reversal of impairment losses
Disposals
Transfer to assets held for sale
Transfer (to)/from investment properties
Balance end of year
Carrying amount as at December 29, 2012
$1,658
(8)
(9)
(3)
12
$1,650
$9
2
(3)
(1)
$7
$1,643
Equipment
and fixtures
Leasehold
improvements
Finance
leases - land,
buildings,
equipment
and fixtures
$6,308
22
(20)
(25)
1
269
$6,555
$5,410
19
(83)
$723
22
(9)
$510
73
(28)
604
$5,950
54
$790
$554
$2,132
177
32
(25)
(7)
(15)
4
$2,298
$3,745
489
7
$392
46
4
$245
43
4
$4,176
$433
1
$269
$7
$4,257
$1,774
$357
$285
$657
Buildings
Cost
Balance beginning of year
Additions
Disposals
Transfer to assets held for sale
Transfer (to)/from investment properties
Transfer from assets under construction
Balance end of year
Accumulated depreciation and impairment losses
Balance beginning of year
Depreciation
Impairment losses
Reversal of impairment losses
Disposals
Transfer to assets held for sale
Transfer from assets under construction
Transfer (to)/from investment properties
Balance end of year
Carrying amount as at December 31, 2011
$1,537
5
(1)
117
$1,658
$6
3
(3)
2
1
$9
$1,649
Buildings
$5,822
2
(5)
(9)
(3)
501
$6,308
$646
957
(1)
(65)
(9)
2011
Land
Assets under
construction
(939)
$664
$7
(24)
Finance
leases - land,
buildings,
equipment
and fixtures
Equipment
and fixtures
Leasehold
improvements
$4,815
16
(75)
$608
16
(7)
654
$5,410
106
$723
$510
$205
37
3
$435
76
Assets under
construction
$1,074
950
(1)
(1,378)
$646
$1,957
179
23
(30)
(5)
(3)
(2)
13
$2,132
$3,389
429
3
(1)
(58)
$350
38
7
$7
(17)
$3,745
3
$392
$245
$7
$4,176
$1,665
$331
$265
$639
(6)
Total
$15,255
1,093
(148)
(34)
(3)
$16,163
$6,530
755
49
(28)
(105)
(15)
4
$7,190
$8,973
Total
$14,291
1,060
(87)
(4)
(5)
$15,255
$5,914
683
39
(34)
(69)
(1)
(2)
0
$6,530
$8,725
Note 13, Loblaw 2012 Annual Report, pages 66-67
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson
7
LOBLAW LONG-TERM ASSETS REFERENCE INFORMATION
GOODWILL AND INTANGIBLE ASSETS
LOBLAW
Goodwill and intangible assets
2012
Indefinite life intangible
assets and goodwill
Goodwill
Cost
Balance beginning of year
Additions
Reclassification
Write off of cost for fully amortized assets
Balance end of year
Accumulated amortization and impairment losses
Balance beginning of year
Amortization
Write off of amortization for fully amortized assets
Balance end of year
Carrying amount as at December 29, 2012
Other
intangible
assets
$1,937
$20
$62
$20
Other
intangible
assets
(5)
$1,932
$989
$8
6
$2,051
43
$1,022
15
(4)
$1,033
$1,057
$989
$0
$14
$943
$62
$6
$46
2011
Other
intangible
assets
(4)
$2,090
Definite life
intangible assets
Internally
generated
intangible
assets
$1,929
8
$51
$18
2
$1,937
$51
$20
$989
Total
$43
32
5
(4)
$76
$25
9
(4)
$30
Goodwill
Carrying amount as at December 31, 2011
Internally
generated
intangible
assets
$51
11
Indefinite life intangible
assets and goodwill
Cost
Balance beginning of year
Additions
Write off of cost for fully amortized assets
Balance end of year
Accumulated amortization and impairment losses
Balance beginning of year
Amortization
Write off of amortization for fully amortized assets
Balance end of year
Definite life
intangible assets
$2
6
Other
intangible
assets
Total
$42
4
(3)
$43
$2,040
14
(3)
$2,051
$1,014
11
(3)
$1,022
$1,029
$989
$0
$8
$23
5
(3)
$25
$948
$51
$12
$18
Note 15, Loblaw 2012 Annual Report, pages 69-70
© 1991-2014 NavAcc LLC, G. Peter & Carolyn R. Wilson