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Company Financial Statements as of December 31, 2015
Notes to the Company Financial Statements
Risk information
1.13
Interest rate and foreign exchange risk
Equity risk
Interest rate hedging instruments are used mainly to limit the effects
Equity risk concerns Carrefour shares acquired for allocation upon
of changes in exchange rates on the Company’s variable rate exercise of stock options. When their market price is less than the
borrowings.
option exercise price, the shares are reclassified as “Shares available
for allocation” in the marketable securities account, and an
The main instruments are interest rate swaps and options and forward
impairment loss is recognized for the difference between their
foreign exchange purchase and sale contracts, purchased
purchase price and the average Carrefour share price for the month of
over-the-counter from leading banking counterparties.
December. See Note 5 for details.
Gains and losses on hedging instruments are recognized on a
symmetrical basis with the loss or gain on the hedged item. A provision
is booked at the year-end for losses on derivative instruments that do
not qualify for hedge accounting.
Details of derivative instruments outstanding at December
31 are
presented in Note 10.
Significant events of the year
Note 2
Financial income, net
2.1
Financial income, net amounted to 625
million euros in 2015
105 million euros in net charges to provisions for impairment of
●
compared with 1,906
million euros in 2014. The 1,281
million
shares in subsidiaries and affiliates
versus
net reversals of
eurosdecrease can be explained as follows:
327
million euros in 2014 (negative impact of 432
million
euros),
a reduction in dividend income from subsidiaries, with a negative
●
reversals of provisions for impairment of treasury stock, due to
●
impact of 735 million euros;
the rise in Carrefour’s share price between 2014 and 2015
a decrease in the merger surplus, with a negative impact of
●
(positive impact of 71 million euros),
304 million euros. The Company had booked a 309 million euros
net charges to provisions for other financial risks (negative
●
surplus on the Actis merger in 2014, compared to a merger surplus
impact of 15 million euros);
of 5 million euros in 2015;
an increase in capital gains on disposals of treasury stock (positive
●
a decrease in net provision reversals with a negative impact of
●
impact of 64 million euros);
376 million euros, reflecting:
a decrease in interest expense on intra-group and external
●
borrowings (positive impact of 70 million euros).
Net non-recurring income
2.2
Net non-recurring income represented 44
million euros in 2015 and consisted mainly of the reversal of a provision for miscellaneous
contingencies.
Financial position strengthened
2.3
On January
22, 2015, Carrefour obtained a new 2,500 million euros
2015), and reduce the related borrowing costs, while aligning their
five-year bank facility (expiring in January
2020) with two one-year
amount with the Group's needs.
extension options from a pool of 22 banks.
On January
27, 2015, Carrefour carried out a new 750 million euros
This facility replaces two existing facilities, for 1,591 million euros and 10.3-year 1.25% bond issue due June
2025. The issue's settlement
1,458
million euros, expiring in July
2017 and November
2018 date was February 3, 2015.
respectively.
The issue has consolidated Carrefour's long-term financing, extended
The operation contributed to the ongoing strategy to secure the the average maturity of its bond debt (from 4.2
years to 4.8
years at
Group's long-term financing sources by extending the average February 3, 2015) and further reduced its borrowing costs.
maturity of its facilities (from 3.5
years to 4.7
years at January
22,
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2015 REGISTRATION DOCUMENT