2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

3CONSOLIDATED FINANCIAL STATEMENTSNotes to the consolidated fi nancial statementsNet debt corresponds to borrowings and financial liabilities includingany associated hedges with a negative fair value, less (i) cash andcash equivalents, (ii) financial assets held for treasury managementpurposes and other similar investments, (iii) hedges of debt with apositive fair value and (iv) financial assets arising from a significantdisposal of non-current assets.Note 1.5.30. Other f inancial income and expenseThis item corresponds to financial income and expense that is notgenerated by net debt.It consists mainly of dividends from non-consolidated companies,gains and losses arising from remeasurement at fair value of financialassets other than cash and cash equivalents and of derivatives notqualifying for hedge accounting, gains and losses on disposal offinancial assets other than cash and cash equivalents, discountingadjustments (including to provisions for pensions and other postemploymentbenefit obligations) and exchange gains and losses onitems other than components of net debt.Cash discounts are recognised in financial income for the portioncorresponding to the normal market interest rate and as a deductionfrom cost of goods sold for the balance.Note 1.5.31. Income tax expenseIncome tax expense corresponds to the sum of the current taxes dueby the various Group companies and changes in deferred taxes.Qualifying French subsidiaries are generally members of a tax groupand file a consolidated tax return.Current tax expenses reported in the income statement correspondto the tax expenses of the parent companies of the tax groups andcompanies that are not members of a tax group.Deferred tax assets correspond to future tax benefits arising fromdeductible temporary differences, tax loss carryforwards and certainconsolidation adjustments that are expected to be recoverable.Deferred tax liabilities are recognised in full for:■■taxable temporary differences, except where the deferred taxliability results from recognition of a non-deductible impairmentloss on goodwill or from initial recognition of an asset or liabilityin a transaction which is not a business combination and, at thetime of the transaction, affects neither accounting profit nor taxableprofit or the tax loss; andtaxable temporary differences related to investments in subsidiaries,associates and joint ventures, except when the Group controls thetiming of the reversal of the difference and it is probable that it willnot reverse in the foreseeable future.Deferred taxes are recognised according to the balance sheetmethod and, in accordance with IAS 12, are not discounted. Theyare calculated by the liability method, which consists of adjustingdeferred taxes recognised in prior periods for the effect of any enactedchanges in the income tax rate.Effective from 1 January 2010, the French business tax (taxeprofessionnelle) has been replaced with two new levies which aredifferent in nature:■■the Cotisation Foncière des Entreprises (CFE), which is based onthe property rental values previously used to calculate the taxeprofessionnelle;the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE), whichis based on the value added reported in the parent companyfinancial statements.The Group believes that the two new levies are different in nature:■■the CFE is very similar to the taxe professionnelle and has thereforebeen recognised as an operating expense in 2010;the CVAE, according to the Group’s analysis, meets the definitionof a tax on income as defined in IAS 12 and has been thereforerecognised under income tax since the year end 2010.Note 1.5.32. Earnings per shareBasic earnings per share are calculated based on the weighted averagenumber of shares outstanding during the period, excluding sharesissued in payment of dividends and treasury shares. Diluted earningsper share are calculated by the treasury stock method, as follows:■■numerator: earnings for the period are adjusted for interest onconvertible bonds and dividends on deeply subordinated perpetualbonds;denominator: the number of shares is adjusted to include potentialshares corresponding to dilutive instruments (equity warrants, stockoptions and share grants), less the number of shares that could bebought back at market price with the proceeds from the exercise ofthe dilutive instruments. The market price used for the calculationcorresponds to the average share price for the year.Equity instruments that will or may be settled in Casino, Guichard-Perrachon shares are included in the calculation only when theirsettlement would have a dilutive impact on earnings per share.Note 1.5.33. Segment informationAs required by IFRS 8 – Operating Segments, segment informationis now disclosed on the same basis as the Group’s internal reportingsystem.There are now six rather than seven operating segments, reflecting thenew internal organisation structure introduced in France on 1 January2010, split between France (Casino France, Monoprix, Franprix-LeaderPrice) and International (Latin America, Asia and Other Businesses).Segment information is presented in note 4.The new “Casino France” segment comprises all the French retailand real estate businesses other than Franprix-Leader Price andMonoprix.Segment information is provided on the same basis as presented inthe consolidated financial statements.Management evaluates the performance of its operating segmentson the basis of trading profit.72 Casino Group | Registration Document 2010