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154 2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
2.21
EARNINGS PER SHARE
2.20
NON-RECURRING INCOME AND EXPENSES
In accordance with the recommendation of the French accounting
authorities (
Autorité des normes comptables
[ANC] recommendation
2013-03 dated November 7, 2013), non-recurring income and expenses
are reported on a separate line of the income statement. Non-recurring
items are defined as “items that are limited in number, clearly identifiable
and non-recurring that have a material impact on consolidated results”.
This classification is applied to certain material items of income and
expense that are unusual in terms of their nature and frequency, such as
impairment charges, restructuring costs and provision charges recorded
to reflect revised estimates of risks provided for or that arose in prior
periods, based on information that came to the Group’s attention during
the reporting year.
They are presented separately in the income statement to “help users
of the Financial Statements to better understand the Group’s underlying
operating performance and provide themwith useful information to assess
the earnings outlook”.
Basic earnings per share is calculated by dividing consolidated income
– Group share by the weighted average number of shares outstanding
during the period. Treasury stock is not considered as being outstanding
and is therefore deducted from the number of shares used for the
calculation. Contingently issuable shares are treated as outstanding
and included in the calculation only from the date when all necessary
conditions are satisfied.
Diluted earnings per share is calculated by adjusting consolidated income
– Group share and the weighted average number of shares outstanding
for the effects of all dilutive potential ordinary shares (if any). Dilutive
potential ordinary shares correspond mainly to convertible bonds and
employee stock options. Stock options are considered as potentially
dilutive if they are in the money (based on the sum of the exercise price
and the fair value of the services rendered by the grantee, in accordance
with IFRS 2 –
Share-based Payment).
Stock grants are considered as
potentially dilutive if the vesting conditions have been fulfilled.
Note 3
Significant events of the year
3.1
CREATION OF A COMPANY FOR SHOPPING MALLS ADJOINING THE GROUP’S
HYPERMARKETS IN EUROPE
On December 16, 2013, Carrefour announced that it had signed a
memorandum of understanding with Klépierre for the purchase of
127 shopping malls.
Following signature of the final agreement between the partners on
January 24, 2014, consultation of employee representative bodies and
the approval of the relevant regulatory authorities, on April 16, 2014,
the Group and its co-investment partners announced the creation of
Carmila, a company dedicated to enhancing the value of the shopping
malls adjacent to Carrefour hypermarkets in France, Spain and Italy.
Upon its creation, Carmila owns a portfolio of 171 shopping malls
comprising:
■
on the one hand, 126 sites in France, Spain and Italy acquired on
April 16, 2014 from Klépierre for a market value of €2.0 billion;
■
on the other hand, 45 sites in France contributed by Carrefour with
a market value of €0.7 billion.
Initial funding consisted of €1.8 billion in equity, contributed by the
co-investors for €1.0 billion and by Carrefour for €0.8 billion (of which
€0.7 billion through the transfer of assets at market value and €0.1 billion
in cash), and €0.9 billion in bank credit lines obtained by Carmila.
At December 31, 2013, the buildings at the 45 sites concerned were
reclassified as held for sale, in accordance with IFRS 5 –
Non-current
Assets Held for Sale and Discontinued Operations.
In the 2014 Consolidated Financial Statements, in application of the
consolidation standards applicable as from 2014 (IFRS 10, IFRS 11
and IAS 28R), the new company has been accounted for by the equity
method as it is jointly controlled by Carrefour and its co-investors, which
own 42% and 58% of the capital respectively. The carrying amount
on recognition in the consolidated statement of financial position was
€784 million. The transaction led to the recognition in non-recurring
income of a €333 million capital gain, in line with the accounting treatment
specified in IFRS 10 in the case of a loss of control as defined in IFRS 3.