Carrefour - 2017 Registration Document

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements 2017 REGISTRATION DOCUMENT | CARREFOUR 5. 234 (in millions of euros) 2017 2016 Latin America 16,042 14,507 Brazil 13,248 11,772 Argentina 2,795 2,735 Asia 5,907 6,176 China 4,050 4,446 Taiwan 1,857 1,729 Other revenue 5.1.2 (in millions of euros) 2017 2016 % change Financing fees and commissions (1) 1,384 1,373 0.8% Rental revenue 228 213 6.9% Revenue from sub-leases 256 260 (1.2)% Property development revenue (2) 89 113 (21.6)% Other revenue (3) 765 761 0.5% TOTAL OTHER REVENUE 2,722 2,720 0.1% Including net banking revenue and net insurance revenue generated by the Group’s financial services and insurance companies. (1) Corresponding to the sale price of properties developed by the Group for resale. After deducting development costs recorded in “Cost of sales”, the (2) property development margin amounts to 20 million euros in 2017 (38 million euros in 2016). The amounts reported on the “Other revenue” line in the above table correspond mainly to franchise fees, business lease fees and related revenue. (3) Recurring operating income 5.2 Accounting principles Recurring operating income is an earnings indicator disclosed in continuing operations before interest and tax) before material order to help users of the Consolidated Financial Statements to items that are unusual in terms of their nature and frequency and better understand the Group’s underlying operating performance. are reported under “Non-recurring income” or “Non-recurring It corresponds to operating income (defined as earnings from expenses” (Note 5.3). Cost of sales 5.2.1 Accounting principles Cost of sales corresponds to the cost of purchases net of rebates and commercial income, changes in inventory (including impairments), discounting revenue, exchange gains and losses on goods purchases, logistics costs and other costs (primarily the cost of products sold by the financial services companies and the production costs of the property development business). Rebates are calculated based on immediate or deferred discount rates on purchases, as specified in the contractual terms negotiated each year. Rebates can be: unconditional, i.e., proportionate to total purchases and subject ● to no other conditions; conditional, i.e., dependent on meeting certain conditions (e.g., ● growth in the supplier’s net sales with the Group). Commercial income corresponds to income from services carried out by Carrefour for its suppliers. Rebates and commercial income recognised in “Cost of sales” are measured based on the contractual terms specified in the agreements signed with suppliers.