Carrefour - 2017 Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements CARREFOUR | 2017 REGISTRATION DOCUMENT 231 Segment information Note 4 Accounting principles IFRS 8 – Operating Segments requires the disclosure of information about an entity’s operating segments derived from the internal reporting system and used by the entity’s chief operating decision-maker to make decisions about resources to be allocated to the segment and assess its performance. The Carrefour group’s operating segments consist of the countries in which it conducts its business through the integrated store network, as each country’s results are reviewed monthly by the Group’s Chief Executive Officer who is the chief operating decision-maker within the meaning of IFRS 8. Countries located in the same region are considered to have similar characteristics and have been combined to create four geographical segments, as allowed by IFRS 8. These segments are: France; ● Rest of Europe: Spain, Italy, Belgium, Poland and Romania; ● Latin America: Brazil and Argentina; ● Asia: China and Taiwan. ● The income and expenses of certain support entities are allocated to the various countries proportionately to the services provided to each, with any unallocated income and expenses reported under “Global functions”. Segment assets include goodwill, other intangible assets, property and equipment, investment property and “other segment assets”, corresponding to inventories, trade receivables, consumer credit granted by the financial services companies and other assets. Segment liabilities comprise suppliers and other creditors, consumer credit financing and other payables. Segment capital expenditure corresponds to the acquisitions of property and equipment and intangible assets (other than goodwill) reported in the statement of cash flows. The disclosures in the tables below have been prepared using the same accounting policies as those applied to prepare the Consolidated Financial Statements. Segment results 4.1 2017 (in millions of euros) Total France Europe Latin America Asia Global Functions Net sales 78,897 35,835 21,112 16,042 5,907 0 Other revenue 2,722 871 692 802 300 56 Recurring operating income before depreciation and amortisation 3,636 1,384 1,136 936 182 (2) Recurring operating income 2,006 692 677 715 4 (83) Capital expenditure 2,379 903 636 526 164 150 Depreciation and amortisation expense (1) (1,630) (692) (459) (221) (178) (81) 2016 (in millions of euros) Total France Europe Latin America Asia Global Functions Net sales 76,645 35,877 20,085 14,507 6,176 0 Other revenue 2,720 877 718 750 301 74 Recurring operating income before depreciation and amortisation 3,886 1,680 1,134 901 142 29 Recurring operating income 2,351 1,031 712 711 (58) (45) Capital expenditure 2,749 1,287 625 519 174 144 Depreciation and amortisation expense (1) (1,535) (650) (422) (190) (200) (74) Including the depreciation and amortisation relating to logistics equipment included in the cost of sales. (1)