137 / 302
Management’s discussion and analysis as of December 31, 2015
Consolidated sales and earnings performance
Non-recurring income and expenses, net
Non-recurring income and expenses correspond to certain material
periods, based on information that came to the Group's attention
items that are unusual in terms of their nature and frequency, such as
during the reporting year.
impairment charges, restructuring costs and provision charges
Non-recurring items represented a net expense of 257 million euros in
recorded to reflect revised estimates of risks provided for in prior
2015.
The detailed breakdown is as follows:
2015
2014
(in millions of euros)
Net gains on sales of assets
64
336
Restructuring costs
(237)
(111)
Other non-recurring items
31
1
Non-recurring income and expenses net before asset impairments and write-offs
(142)
226
Asset impairments and write-offs
(115)
(77)
Impairments and write-offs of goodwill
(2)
0
Impairments and write-offs of tangible and intangible assets
(113)
(77)
NON-RECURRING INCOME AND EXPENSES, NET
(257)
149
In 2015, gains on disposals of assets primarily concerned assets sold to an associate, Carmila. In 2014, they mainly concerned the assets
contributed to Carmila at the time of its creation.
Restructuring costs concerned plans to streamline operating structures in several of the Group's countries. The expense recognized in 2015 notably
includes the impact of integrating the Dia France store network acquired in late 2014 and the ongoing action plan in China.
A description of non-recurring income and expenses is provided in Note 5.3 to the Consolidated Financial Statements.
Operating income
The Group ended the year with operating income of 2,232 million euros
versus
2,572 million euros in 2014.
Finance costs and other financial income and expenses, net
Finance costs and other financial income and expenses represented a net expense of 515 million euros, representing 0.7% of sales
versus
0.8% in 2014.
2015
2014
(in millions of euros)
Finance costs, net
(347)
(399)
Other financial income and expenses, net
(168)
(164)
FINANCE COSTS AND OTHER FINANCIAL INCOME AND EXPENSES, NET
(515)
(563)
Finance costs, net decreased by 52 million euros to 347 million euros.
Other financial income and expenses represented a net expense of
The favorable change was primarily due to a reduction in the average 168 million euros, compared with a net expense of 164 million euros
interest rate on the Group's bond debt, following the retirement of
in 2014.
existing issues and their replacement with issues at lower rates of
interest (1,000 million euros at 1.75% in July
2014 and 750 million
euros at 1.25% in January 2015).
2015 REGISTRATION DOCUMENT
137