Carrefour - 2017 Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements CARREFOUR | 2017 REGISTRATION DOCUMENT 233 Operating items Note 5 Revenue 5.1 Accounting principles Revenue (“Total revenue”) comprises net sales and other revenue. Net sales correspond exclusively to sales via the Group’s stores, e-commerce sites and service stations (to end-customers) and cash-and-carry sales (to franchisees). Other revenue comprises revenue from banking and insurance activities (including bank card fees, and arranging fees for traditional and revolving credit facilities), property development revenue, travel agency fees, commissions relating to e-commerce sales made on behalf of third parties (Marketplaces), shopping mall rents and franchise fees. Revenue is measured at the fair value of the consideration received or receivable in exchange for goods or services, excluding sales taxes and net of any benefits granted to customers. Deferred loyalty award credits granted to customers as part of a sales transaction are accounted for as a separate component of the sale transaction. They are measured at fair value with some of the proceeds of the initial sale allocated to the award credits accounted for as a liability. The deferred portion of the proceeds is recognised as revenue when the award credits are used by the customer, in accordance with IFRIC 13 – Customer Loyalty Programmes. Revenue is recognised: On sales of goods, when the risks and rewards of ownership of ● the goods are transferred to the customer (commonly at the store checkout for sales via the Group’s stores, or on the delivery date for sales via e-commerce sites and sales to franchisees); On sales of services, in the period in which the service is ● rendered. Financial services revenues (bank card fees and arranging fees for traditional and revolving credit facilities) are recognised over the life of the contract. Net sales 5.1.1 (in millions of euros) 2017 2016 % change Net sales 78,897 76,645 2.9% Excluding the currency effect, 2017 net sales amounted to 78,628 million euros versus 76,645 million euros the previous year, an increase of 2.6%. Changes in exchange rates added 269 million euros to net sales in 2017, and mainly concerned the Latin America segment. Net sales by country (in millions of euros) 2017 2016 France 35,835 35,877 Rest of Europe 21,112 20,085 Spain 8,634 8,049 Italy 4,919 4,892 Belgium 3,993 3,994 Poland 1,785 1,649 Romania 1,781 1,501