Carrefour - 2017 Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements CARREFOUR | 2017 REGISTRATION DOCUMENT 267 Earnings per share (Group share) 11.6 Accounting principles In accordance with IAS 33 – Earnings Per Share, basic earnings per share is calculated by dividing net income, Group share by the weighted average number of shares outstanding during the period. Treasury stock, including shares held indirectly through the equity swap described in Note 11.2.2, are not considered to be outstanding and are therefore deducted from the number of shares used for earnings per share calculations. Contingently issuable shares are treated as outstanding and included in the calculation only from the date when all necessary conditions are satisfied. Dilutive potential ordinary shares correspond exclusively to the stock options and performance shares presented in Note 10.2.1. Their dilutive effect is calculated by the treasury stock method provided for in IAS 33 which consists in applying the proceeds that would be generated from the exercise of stock options to the purchase of shares at market price (defined as the average share price for the period). In accordance with this method, stock options are considered to be 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 – Diluted earnings per share is calculated by adjusting net income, Share-based Payment). Group share and the weighted average number of shares outstanding for the effects of all dilutive potential ordinary shares. Basic earnings per share 2017 2016 Net income/(loss) from continuing operations (531) 786 Net income/(loss) from discontinued operations 1 (40) Net income/(loss) for the year (531) 746 Weighted average number of shares outstanding (1) 756,976,463 740,030,536 Basic earnings/(loss) from continuing operations per share (in euros) (0.70) 1.06 Basic earnings/(loss) from discontinued operations per share (in euros) 0.00 (0.05) Basic earnings/(loss) per share (in euros) (0.70) 1.01 In accordance with IAS 33, the weighted average number of shares used to calculate 2016 earnings per share was adjusted to take into account the (1) effect of the 2016 dividends paid in shares on July 13, 2017 (retrospective adjustment of the effect of the 10% discount on shares issued in payment of dividends, determined by the treasury stock method). Diluted earnings per share 2017 2016 Net income/(loss) from continuing operations (531) 786 Net income/(loss) from discontinued operations 1 (40) Net income/(loss) for the year (531) 746 Weighted average number of shares outstanding, before dilution 756,976,463 740,030,536 Potential dilutive shares - 145,127 Stock grants - 145,127 Stock options - - Diluted weighted average number of shares outstanding 756,976,463 740,175,662 Diluted earnings/(loss) from continuing operations per share (in euros) (0.70) 1.06 Diluted earnings/(loss) from discontinued operations per share (in euros) 0.00 (0.05) Diluted earnings/(loss) per share (in euros) (0.70) 1.01 The net income from continuing operations being negative in 2017, the performance shares granted are not deemed dilutives.