Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information | |
Entity Registrant Name | BRAZILIAN DISTRIBUTION CO COMPANHIA BRASILEIRA DE DISTR CBD |
Entity Central Index Key | 1,038,572 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 99,679,851 |
Entity Preferred Stock, Shares Outstanding | 166,899,579 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,017 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Net operating revenue | R$ 44634 | R$ 41454 | R$ 37198 |
Cost of sales | (33,931) | (31,933) | (28,123) |
Gross profit | 10,703 | 9,521 | 9,075 |
Operating expenses, net | |||
Selling expenses | (6,804) | (6,567) | (5,922) |
General and administrative expenses | (972) | (884) | (766) |
Depreciation and amortization | (779) | (707) | (650) |
Other operating expenses, net | (579) | (567) | (206) |
Total operating expenses | (9,134) | (8,725) | (7,544) |
Profit from operations before net financial expenses and share of profit of associates | 1,569 | 796 | 1,531 |
Financial expenses, net | (730) | (903) | (768) |
Share of profit of associates | (60) | 60 | 81 |
Income (loss) before income tax and social contribution | 779 | (47) | 844 |
Income tax and social contribution | (297) | (24) | (229) |
Net income (loss) for the year from continued operations | 482 | (71) | 615 |
Net income (loss) for the year from discontinued operations after tax | 383 | (1,005) | (891) |
Net income (loss) for the year | 865 | (1,076) | (276) |
Items that may be reclassified subsequently to statement of operations: | |||
Foreign currency translation | (17) | 234 | (219) |
Hedging instruments designated on hedge of the net assets of foreign operations | 0 | 0 | (1) |
Items that will not be reclassified subsequently to statement of operations: | |||
Other comprehensive income | (1) | (3) | (2) |
Other comprehensive income (loss) for the year, net of income tax | (18) | 231 | (222) |
Total comprehensive income (loss) for the year | 847 | (845) | 498 |
Net income (loss) for the year attributed to: | |||
Controlling shareholders from continued operations | 482 | (71) | 615 |
Controlling shareholders from discontinued operations | 137 | (411) | (350) |
Total of controlling shareholders | 619 | (482) | 265 |
Non-controlling shareholders from discontinued operations | 246 | (594) | (541) |
Total of non-controlling shareholders | 246 | (594) | (541) |
Total comprehensive income (loss) for the year attributed to: | |||
Controlling shareholders | 601 | (395) | 177 |
Noncontrolling shareholders | 246 | (450) | (675) |
Total comprehensive income (loss) for the year | 847 | (845) | 498 |
Common | |||
Operating expenses, net | |||
Net income (loss) for the year from continued operations | 170 | (27) | 218 |
Net income (loss) for the year attributed to: | |||
Controlling shareholders from continued operations | 170 | (27) | 218 |
Controlling shareholders from discontinued operations | 48 | (154) | (124) |
Total of controlling shareholders | R$ 218 | R$ 181 | R$ 94 |
Earnings (loss) per share (R$/share) – controlling shareholders’ | |||
Basic: continued and discontinued operations | R$ 2.18810 | R$ 1.81669 | R$ 0.93859 |
Basic: continued operations | 1.70324 | (0.26891) | 2.17964 |
Diluted: continued and discontinued operations | 2.18073 | (1.81669) | 0.93859 |
Diluted: continued operations | R$ 1.69955 | R$ 0.26891 | R$ 2.17964 |
Preferred | |||
Operating expenses, net | |||
Net income (loss) for the year from continued operations | R$ 312 | R$ 44 | R$ 397 |
Net income (loss) for the year attributed to: | |||
Controlling shareholders from continued operations | 312 | (44) | 397 |
Controlling shareholders from discontinued operations | 89 | (257) | (226) |
Total of controlling shareholders | R$ 401 | R$ 301 | R$ 171 |
Earnings (loss) per share (R$/share) – controlling shareholders’ | |||
Basic: continued and discontinued operations | R$ 2.40692 | R$ 1.81669 | R$ 1.03245 |
Basic: continued operations | 1.87356 | (0.26891) | 2.39760 |
Diluted: continued and discontinued operations | 2.39074 | (1.81669) | 1.03014 |
Diluted: continued operations | R$ 1.86188 | R$ 0.26891 | R$ 2.39222 |
Consolidated Balance Sheets
Consolidated Balance Sheets - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | R$ 3792 | R$ 5112 |
Trade receivables, net | 632 | 543 |
Other receivables | 271 | 126 |
Inventories, net | 4,822 | 4,641 |
Recoverable taxes | 596 | 674 |
Prepaid expenses | 112 | 97 |
Other current assets | 34 | 155 |
Assets held for sale | 22,961 | 20,303 |
Total current assets | 33,220 | 31,651 |
Noncurrent assets | ||
Trade receivables, net | 80 | 0 |
Other receivables | 642 | 612 |
Recoverable taxes | 1,747 | 632 |
Derivative financial instruments | 28 | 0 |
Deferred income tax and social contribution | 121 | 170 |
Related parties | 25 | 17 |
Restricted deposits for legal proceedings | 762 | 661 |
Prepaid expenses | 43 | 45 |
Investments in associates | 177 | 316 |
Investment properties | 21 | 23 |
Property and equipment, net | 9,138 | 9,182 |
Intangible assets, net | 1,924 | 1,908 |
Total noncurrent assets | 14,708 | 13,566 |
Total assets | 47,928 | 45,217 |
Current liabilities | ||
Trade payable, net | 8,128 | 7,232 |
Borrowings and financing | 1,251 | 2,957 |
Payroll and related taxes | 640 | 614 |
Taxes and contributions payable and taxes payable in installments | 301 | 254 |
Related parties | 153 | 147 |
Dividends payable | 78 | 0 |
Financing of property | 116 | 116 |
Rent payable | 128 | 110 |
Deferred revenue | 146 | 224 |
Pass-through liabilities | 14 | 15 |
Customer loyalty programs | 0 | 28 |
Other current liabilities | 213 | 253 |
Liabilities related to assets held for sale | 17,824 | 15,632 |
Total current liabilities | 28,992 | 27,582 |
Noncurrent liabilities | ||
Borrowings and financing | 3,337 | 2,912 |
Deferred income tax and social contribution | 394 | 317 |
Tax payable in installments | 566 | 540 |
Provision for contingencies | 1,107 | 1,177 |
Deferred revenue | 22 | 24 |
Provision for losses on investments in associates | 165 | 22 |
Other noncurrent liabilities | 53 | 46 |
Total noncurrent liabilities | 5,644 | 5,038 |
Shareholders’ equity | ||
Share capital | 6,822 | 6,811 |
Capital reserves | 355 | 331 |
Earning reserves | 3,174 | 2,718 |
Other comprehensive income (loss) | (18) | 0 |
Total shareholders' equity | 10,333 | 9,860 |
Non controlling interest | 2,959 | 2,737 |
Total shareholders’ equity | 13,292 | 12,597 |
Total liabilities and shareholders’ equity | R$ 47928 | R$ 45217 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - BRL (R$) R$ in Millions | Share Capital | Capital Reserves: Other Reserves | Capital Reserves: Stock Options | Earnings Reserves: Legal | Earnings Reserves: Expansion | Earnings Reserves: Treasury Shares | Earnings Reserves: Retained Earnings | Appropriated Earnings | Other Comprehensive Income (Loss) | Controlling Shareholders | Non-controlling Interest | Total |
Beginning balance at Dec. 31, 2014 | R$ 6792 | R$ 7 | R$ 275 | R$ 413 | R$ 1809 | R$ 7 | R$ 1187 | R$ 0 | R$ 1 | R$ 10477 | R$ 3717 | R$ 14194 |
Other comprehensive income | ||||||||||||
Net income (loss) for the year | 265 | 265 | (541) | (276) | ||||||||
Foreign currency translation | (86) | (86) | (133) | (219) | ||||||||
Investment hedge | (1) | (1) | (1) | |||||||||
Other | (1) | (1) | (1) | (2) | ||||||||
Comprehensive income (loss) for the year | 265 | (88) | 177 | (675) | 498 | |||||||
Capital increase | 14 | 14 | 14 | |||||||||
Share-based expenses | 11 | 11 | 11 | |||||||||
Share-based expenses - subsidiaries | 9 | 9 | 5 | 14 | ||||||||
Transfer to appropriation of income to expansion reserve | 815 | (815) | 0 | |||||||||
Appropriation of income to legal reserve | 13 | (13) | 0 | |||||||||
Proposed dividends - additional | (115) | (115) | (115) | |||||||||
Transfer to earnings reserve | 137 | (137) | 0 | |||||||||
Transactions with non-controlling interest | (60) | (60) | (30) | (90) | ||||||||
Settlement of equity instruments | (150) | (150) | (150) | |||||||||
Put option - CD Colombia | (9) | (9) | (19) | (28) | ||||||||
Ending balance at Dec. 31, 2015 | 6,806 | 7 | 295 | 426 | 2,624 | (7) | 290 | 0 | (87) | 10,354 | 2,998 | 13,352 |
Beginning balance at Dec. 31, 2015 | 6,806 | 7 | 295 | 426 | 2,624 | (7) | 290 | 0 | (87) | 10,354 | 2,998 | 13,352 |
Other comprehensive income | ||||||||||||
Net income (loss) for the year | (482) | (482) | (594) | (1,076) | ||||||||
Foreign currency translation | 88 | 88 | 146 | 234 | ||||||||
Investment hedge | 0 | |||||||||||
Other | (1) | (1) | (2) | (3) | ||||||||
Comprehensive income (loss) for the year | (482) | 87 | (395) | (450) | (845) | |||||||
Capital increase | 5 | 5 | 5 | |||||||||
Share-based expenses | 21 | 21 | 21 | |||||||||
Share-based expenses - subsidiaries | 8 | 8 | 5 | 13 | ||||||||
Transfer to appropriation of income to expansion reserve | 119 | (119) | 0 | |||||||||
Proposed dividends - additional | (4) | (4) | (4) | |||||||||
Transactions with non-controlling interest | (138) | (138) | 165 | 27 | ||||||||
Put option - CD Colombia | 9 | 9 | 19 | 28 | ||||||||
Absorption of losses | (444) | (38) | 482 | 0 | ||||||||
Ending balance at Dec. 31, 2016 | 6,811 | 7 | 324 | 426 | 2,299 | (7) | 0 | 0 | 0 | 9,860 | 2,737 | 12,597 |
Other comprehensive income | ||||||||||||
Net income (loss) for the year | 619 | 619 | 246 | 865 | ||||||||
Foreign currency translation | (17) | (17) | (17) | |||||||||
Investment hedge | 0 | |||||||||||
Other | (1) | (1) | (1) | |||||||||
Comprehensive income (loss) for the year | 619 | (18) | 601 | 246 | 847 | |||||||
Capital increase | 11 | 11 | 11 | |||||||||
Share-based expenses | 16 | 16 | 16 | |||||||||
Share-based expenses - subsidiaries | 8 | 8 | 3 | 11 | ||||||||
Transfer to appropriation of income to expansion reserve | 429 | (429) | ||||||||||
Appropriation of income to legal reserve | 31 | (31) | ||||||||||
Proposed dividends - additional | (78) | (78) | (9) | (87) | ||||||||
Transactions with non-controlling interest | (2) | (2) | (2) | |||||||||
Interest on own capital | (81) | (81) | (20) | (101) | ||||||||
Gain (loss) equity interest | (2) | (2) | 2 | |||||||||
Ending balance at Dec. 31, 2017 | R$ 6822 | R$ 7 | R$ 348 | R$ 457 | R$ 2728 | R$ 7 | R$ 4 | R$ 0 | R$ 18 | R$ 10333 | R$ 2959 | R$ 13292 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flow provided by (used in) operating activities | |||
Net income (loss) for the year | R$ 865 | R$ 1076 | R$ 276 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Deferred income tax | (38) | (113) | 135 |
Loss on disposal of property and equipment | 247 | 203 | 148 |
Depreciation and amortization | 833 | 1,089 | 1,102 |
Financial charges | 947 | 1,272 | 1,154 |
Share of profit of associates | 34 | (81) | (112) |
Provision for contingencies | 675 | 1,080 | 246 |
Share-based expenses | 24 | 29 | 25 |
Allowance for doubtful accounts | 722 | 609 | 556 |
Allowance for losses on inventory obsolescence and damages | (1) | 44 | 57 |
Deferred revenue | (394) | (372) | (161) |
Other operating (income) expenses | (723) | 0 | 15 |
Gain on sale of subsidiaries | 0 | (94) | 0 |
Total | 3,191 | 2,590 | 2,889 |
Changes in assets and liabilities | |||
Trade receivables | (2,115) | (1,259) | (434) |
Inventories | (1,505) | 107 | (261) |
Recoverable taxes | (321) | (709) | (434) |
Other assets | (60) | 118 | (140) |
Related parties | 153 | (470) | (324) |
Restricted deposits for legal proceedings | (366) | (218) | (82) |
Trade payables | 3,059 | (1,486) | 2,503 |
Payroll, related taxes | 103 | 134 | 159 |
Taxes and social contributions payable | (127) | 55 | 42 |
Income taxes and contributions paid | (119) | (132) | (234) |
Provision for contingencies | (447) | (415) | (351) |
Deferred revenue | (8) | 660 | 750 |
Other liabilities | 148 | (279) | 397 |
Dividends and interest on own capital receivable | 309 | 0 | 152 |
Total | (1,296) | (3,894) | 1,743 |
Net cash provided by (used in) operating activities | 1,895 | (1,304) | 4,632 |
Cash flow (used in) provided by investing activities | |||
Purchase of property and equipment | (1,402) | (1,265) | (1,581) |
Purchase of intangible assets | (311) | (279) | (404) |
Proceeds from sale of property and equipment | 121 | 55 | 82 |
Proceeds from sale of subsidiary | 0 | 137 | 51 |
Payment by Via Varejo to Cnova’s N.V. for the exchange of shares | 0 | (47) | 0 |
Net deconsolidated cash related to Cnova NV (discontinued operations) | 0 | (621) | 0 |
Net cash used in investing activities | (1,592) | (2,020) | (1,852) |
Cash flow (used in) provided by financing activities | |||
Capital increase | 11 | 5 | 14 |
Proceeds from borrowings and financing | 7,789 | 8,082 | 6,389 |
Payments of borrowings and financing | (9,785) | (7,481) | (9,301) |
Dividends paid | (101) | (4) | (434) |
Installments payments on acquisition of subsidiary | (8) | (79) | (74) |
Transactions with non-controlling shareholders | 0 | 0 | (4) |
Financing with related parties | 0 | 952 | 404 |
Net cash flow (used in) provided by financing activities | (2,094) | 1,475 | (3,006) |
Net decrease in cash and cash equivalents | (1,791) | (1,849) | (226) |
Cash and cash equivalents at the beginning of the year | 9,142 | 11,015 | 11,149 |
Exchange rate in cash and cash equivalents | 0 | (24) | 92 |
Cash and cash equivalents at the end of the year | 7,351 | 9,142 | 11,015 |
Cash and cash equivalents reconciliation: | |||
Cash and cash equivalents as per the cash flow | 7,351 | 9,142 | R$ 11015 |
Cash and cash equivalents as per the balance sheet | 3,792 | 5,112 | |
Cash included in assets held for sale and discontinued operations | R$ 3559 | R$ 4030 |
1. Corporate information
1. Corporate information | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information | |
Corporate information | Companhia Brasileira de Distribuição ("Company" or “CBD”), directly or through its subsidiaries (“Group” or “GPA”) is engaged in the retail of food, clothing, home appliances, electronics and other products, through its chain of hypermarkets, supermarkets, specialized stores and department stores especially under the trade names "Pão de Açúcar, “Minuto Pão de Açúcar”, "Extra Hiper", “Extra Super”, “Minimercado Extra”, “Assai”, and the neighborhood shopping mall brand “Conviva”. The activities related to the segments of electronics and e-commerce are presented as discontinued operations (note 32) and represent the stores under the brands “Ponto Frio” and “Casas Bahia", as well as the e-commerce platforms “CasasBahia.com,” “Extra.com”, “Pontofrio.com”, “Barateiro.com”, and “Cdiscount.com”. The Group’s headquarters are located in the city of São Paulo, State of São Paulo, Brazil. The Company’s shares are listed on the São Paulo Stock Exchange (“B3”) Level 1 of Corporate Governance under the ticker symbol “PCAR4” and on the New York Stock Exchange (ADR level III), under the ticker symbol “CBD”. The Company is indirectly controlled by Almacenes Éxito S.A., through Wilkes Participações S.A. (“Wilkes”), and its ultimate parent company is Casino Guichard Perrachon (“Casino”), French company listed on Paris Stock Exchange. 1.1. Arbitration and CVM notice about Morzan On August 14, 2015, CBD and its controlling shareholder Wilkes were jointly convicted by the International Court of Arbitration - ICA, to indemnify Morzan Empreendimentos e Participações Ltda. (“Morzan”) former controller of Globex Utilidades S.A. Such decision was amended on January 27, 2016 without significant changes. The obligation arising from the arbitration totalled R$233, including legal fees, which was fully settled on April 1, 2016. On October 25, 2016, the Company received a notice from the Securities Registration Office (“SRE”) of the Brazilian Securities Exchange Commission (“CVM”) stating that the Company should pay an indemnification equivalent to 80% of the amount effectively paid to Morzan to the non-controlling shareholders´ of Globex Utilidades S.A (“Globex”) who joined the Shares Offer made on January 4, 2010, resulting in the control disposal of Globex. The Company filed an appeal to CVM’s commissioners’ board, obtaining a suspensive effect of the notice until final decision. Management estimated an indemnification of R$150. On October 3, 2017 the CVM’s comissions’ board analyzed the appeal filed by the Company and unanimously decided to fully amend the SRE Decision, understanding that the CVM could not extend the indemnification provided for in the Arbitration Award to Globex's non-controlling shareholders’. Considering this favorable decision, it is not expected that there will be no further discussions about this matter. 1.2. Notices from CVM to GPA and subsidiary Via Varejo On February 18, 2016, the subsidiary Via Varejo received notice 18/2016-CVM/SEP/GEA-5 from the CVM containing the understanding of the Superintendence of Business Relations – SEP in relation to certain accounting treatment adopted on certain corporate transactions at Via Varejo in 2013. Due to the effects in its consolidated financial statements the Company received the notice 19/2016-CVM /SEP/GEA-5. CVM’s technical area expressed different understanding on the accounting treatment applied on the acquisition of the additional 75% interest of Indústria de Móveis Bartira (“Bartira”) by Via Varejo. Via Varejo and the Company filed an appeal against such decision to the CVM’s Board of Commissioners, and on January 26, 2017 CVM reported to the Company that (i) the CVM’s Board of Commissioners agreed with the accounting treatment adopted by Via Varejo and no restatement was needed; and (ii) The CVM’s SEP filed an appeal of reconsideration of the CVM’s Board of Commissioner’s decision. On April 20, 2017 Via Varejo received the Notice 91/2017-CVM/SEP/GEA-5 informing that the CVM's Board of Commissioners rejected the request for reconsideration of CVM SEP, the matter being closed. 1.3. Agreement between CBD, Via Varejo and Grupo Casas Bahia On July 4, 2017, Via Varejo signed an agreement, together with the Company, for the settlement of losses and damages related to the “Acordo de Associação” (Indemnification Agreement) signed on July 1, 2010, incurred until November 8, 2016, as well established warranties for the obligations of Grupo Casas Bahia to indemnify potential contingencies, not yet settled at November 8, 2016. As part of the agreement, Via Varejo and Grupo Casas Bahia agreed to offset reciprocal obligations, remaining a balance of R$13 to be paid by the Grupo Casas Bahia to Via Varejo during 2018. As a warranty for potentially indemnifiable contingencies, personal guarantee of Grupo Casas Bahia shareholders’ was provided, in addition to, the mortgage on properties for the total amount of potential contingencies identified. In the board of director’s meeting on July 24, 2017, according to the related parties’ policy, the special committee favorably recommended to the board of directors the approval of the Agreement by the Company, which was approved by the board. As a result of this agreement, the Company recognized on its financial statements for the year ended in December 31, 2017, a loss on discontinued operations of R$97. 1.4. Arbitration Península On September 12, 2017, the Company received a notice from the Brazil-Canada Chamber of Commerce regarding a request for arbitration filed by Banco Ourinvest S.A., a financial institution, in its capacity as fund manager and acting in the exclusively interest of the quotaholders of Fundo de Investimento Imobiliário Península ("Península" and the "Proceeding"). The Proceeding aims to discuss the calculation of the rental fees and other operational matters related to the stores owned by Peninsula, which are under several lease agreements and contracts entered into between the Company and Peninsula during 2005 (the "Agreements"). The Agreements assure to CBD the rent of the stores for a period of twenty (20) years as from their respective execution date, which may be extended for an additional 20-year term, at CBD’s exclusive criteria, and rules the calculation of the rental fees. The Proceeding refers to certain terms and conditions of the Agreements and does not affect the continuity of the leasing of the stores, which are contractually assured. The Company and its legal advisors understand that the Proceeding will be favorable to CBD. |
2. Basis of preparation
2. Basis of preparation | 12 Months Ended |
Dec. 31, 2017 | |
Basis Of Preparation | |
Basis of preparation | The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”). The financial statements have been prepared on the historical cost basis except for certain financial instruments measured at their fair value. The consolidated financial statements is being presented in millions of Brazilian Reais (“R$”), which is the reporting currency of the Company. The functional currency of subsidiaries located abroad is the local currency of each jurisdiction. The consolidated financial statements for the year ended December 31, 2017 were approved by the Board of Directors on April 26, 2018. As a result of the ongoing process for the sale of the subsidiary Via Varejo S.A. (note 32) and in accordance to IFRS 5 – Noncurrent Assets Held for Sale and Discontinued Operation, the consolidated financial statement of operations and comprehensive income for the years ended December 31, 2017, 2016 and 2015 are presented with the effects of this transaction. The consolidated statements of cash flows include the cash flows from continued and discontinued operations. The details of the cash flows from discontinued operations are disclosed in Note 32.2. |
3. Basis of consolidation
3. Basis of consolidation | 12 Months Ended |
Dec. 31, 2017 | |
Basis Of Consolidation | |
Basis of consolidation | 3.1. Interest in subsidiaries and associates: Direct and indirect equity interests - % (rounded) 2017 2016 Companies Subsidiaries Novasoc Comercial Ltda. (“Novasoc”) (****) 100 10 Sendas Distribuidora S.A. (“Sendas”) 100 100 Bellamar Empreend. e Participações Ltda. (“Bellamar”) 100 100 GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (“GPA M&P”) 100 100 CBD Holland B.V. (“CBD Holland”) 100 100 GPA 2 Empreed. e Participações Ltda. (“GPA 2”) 100 100 GPA Logística e Transporte Ltda. (“GPA Logística”) 100 100 Via Varejo S.A. (“Via Varejo”) (*) 43 43 Via Varejo Luxembourg Holding S.à.r.l. (“VVLuxco”) (*) 43 43 Via Varejo Netherlands Holding B.V. (“VVDutchco”) (*) 43 43 Indústria de Móveis Bartira Ltda. (“Bartira”) (*) 43 43 VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (“VVLOG Logística”) (*) 43 43 Globex Adm. e Serviços Ltda. (“Globex Adm”) (*) 43 43 Lake Niassa Empreend. e Participações Ltda. (“Lake Niassa”) (*) 43 43 Globex Adm. Consórcio Ltda. (“Globex Adm. Consórcio”) (*) 43 43 Cnova Comércio Eletrônico S.A. (”Cnova Brasil”) (*) 43 43 E-Hub Consult. Particip. e Com. S.A. (“E – Hub”) (*) 43 43 Nova Experiência PontoCom S.A. (“Nova Experiência”) (*) 43 43 Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco”) 100 100 Companhia Brasileira de Distribuição Netherlands Holding B.V. (“CBDDutchco”) 100 100 Associates Cnova N.V (“Cnova Holanda”) (**) 34 34 Cdiscount Group S.A.S. (“CDiscount”) (**) 34 34 Cnova Finança B.V. (“Cnova Finança”) (**) 34 34 Cdiscount Afrique SAS (“Cdiscount Afrique”) (**) 34 34 Cdiscount International BV The Netherlands (“Cdiscount Internacional”) (**) 34 34 Cnova France SAS (“Cnova France”) (**) 34 34 Cdiscount S.A. (“Cdiscount”) (**) 34 34 3W SAS (“3W”) (**) (***) - 34 CD Africa SAS (“CD Africa”) (**) (***) - 29 Cdiscount Côte d'Ivoire SAS Ivory Coast (“Cdiscount Côte”) (**) 34 29 Cdiscount Sénégal SAS (“Cdiscount Sénégal”) (**) 34 29 Cdiscount Cameroun SAS (“Cdiscount Cameroun”) (**) 34 29 CLatam AS Uruguay (“CLatam”) (**) 24 24 Cdiscount Panama S.A. (“Cdiscount Panama”) (**) 24 24 Cdiscount Uruguay S.A. (“Cdiscount Uruguay”) (**) 24 24 Ecdiscoc Comercializadora S.A.(Cdiscount Ecuador) (“Ecdiscoc Comercializadora”) (**) 24 24 Cnova Pay (“Cnova Pay”) 34 - BeezUP SAS (“BeezUp”) 20 - Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) 42 42 Banco Investcred Unibanco S.A. (“BINV”) 22 22 FIC Promotora de Vendas Ltda. (“FIC Promotora”) 42 42 (*) Companies which balance are classified in “Held for sale and discontinued operations” (see note n°32) . (**) Companies that are no longer consolidated since October 2016 (see note n°32) (***) Companies merged in 2017. (****) In 2017 the former quota holders of Novasoc transferred their quotas to CBD. 3.2. Subsidiaries The Company consolidates all of its subsidiaries and reports non-controlling interests in a separate line in shareholders’ equity. The consolidated financial statements include the financial information of all subsidiaries over which the Company exercises control directly or indirectly. The determination if a subsidiary is controlled by the Company and the basis of consolidation are in accordance with the requirements of IFRS 10 - Consolidated Financial Statements. Entities in which, the Company owns less than 50% of interest, but it excercises control pursuant to its voting rights or shareholders’ agreement, are consolidated by the Company. The financial statements of the subsidiaries are prepared on the same closing date of the reporting period as those of the Company, using consistent accounting policies. All intercompany balances and transactions are eliminated upon consolidation. Gains or losses resulting from changes in equity interest in subsidiaries, not resulting in loss of control are directly recorded in equity. Losses are attributed to the non-controlling interest, even if it results in a deficit balance. 3.3. Associates Investments in associates are accounted for under the equity method as the Company exercises significant influence, but not control, since (a) it is a part of the shareholders’ agreement, appointing certain officers and having vote rights in certain relevant decisions, and (b) it has power to participate in the operational and financial decisions. The associates at December 31, 2017 are: i) BINV (not operating) and FIC that are managed by Banco Itaú Unibanco S.A (“Itaú Unibanco”) and ii) Cnova N.V. which holds mainly the investment on e-commerce company denominated Cdiscount located abroad. The summarized financial information of associates is as follows: FIC 2017 2016 Current assets 4,621 4,060 Noncurrent assets 69 43 Total assets 4,690 4,103 Current liabilities 4,026 3,050 Noncurrent liabilities 11 15 Shareholders’ equity 653 1,038 Total liabilities and shareholders’ equity (*) 4,690 4,103 Statement of operations: 2017 2016 2015 Revenues 988 1,118 1,118 Operating income 321 386 370 Net income for the year 184 236 226 (*) For the purposes of measurement of the investment in this associate, the special goodwill reserve recorded by FIC shall be deducted from its shareholders’ equity, since it is Itaú Unibanco’s exclusive right. Cnova N.V. consolidated 2017 2016 Current assets 2,836 1,457 Noncurrent assets 796 501 Total assets 3,632 1,958 Current liabilities 3,941 1,948 Noncurrent liabilities 174 70 Shareholders’ equity (483) (60) Total liabilities and shareholders’ equity 3,632 1,958 Statement of operations: 2017 2016 2015 Revenues 7,651 7,187 6,599 Operating loss (72) (146) (331) Loss for the year (367) (224) (319) |
4. Significant accounting polic
4. Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies | |
Significant accounting policies | 4.1. Financial instruments Financial assets are initially recognized at fair value when the Company assumes contractual rights to receive cash or other financial asset in contracts in which they are part. Financial assets are derecognized when the rights to receive cash linked to the financial asset expire or have been transferred substantially all the risks and benefits to third parties. Assets and liabilities are recognized when rights and obligations are retained by the Company in the transfer. Financial liabilities are recognized when the Company assumes contractual obligations for settlement in cash or in the assumption of third-party obligations through a contract in which they are part of. Financial liabilities are initially recognized at fair value and are derecognized when the obligations are settled, extinguished or expired. Subsequently to their initial recognition, financial instruments, measured at amortized cost, are measured using effective interest rate. Interest income and expenses, monetary and exchange variation, net of estimated losses for not receiving financial assets, and recognized as financial income and expenses when incurred.. Note 18 provide detailed information about financial instruments and further details on how it is measured. (i) Financial assets Initial recognition and measurement The financial assets held by the Company within the scope of IAS 39 are classified according to the purpose for which they were acquired or contracted within the following categories: (i) assets measured at fair value through profit or loss; (ii) loans and receivables, (iii) available-for-sale and (iv) investments held to maturity. The Company determines the classification of their financial assets at initial recognition. Financial assets are initially recognized at fair value, and transaction costs are charged in the statement of operations. Loans and receivables are accounted for at amortized cost. Purchases or sales of financial assets that require the assets to be delivered within a time frame established by regulations or market conventions (negotiations under regular conditions) are recognized on the trade date, i.e., on the date that the Company commits to purchase or sell the asset. The financial assets of the Company includes cash and cash equivalents, trade accounts receivable, related parties receivables and derivative financial instruments. Subsequent measurement · Financial assets measured at fair value through profit or loss: · Loans and receivables: · Held-to-maturity financial assets: · Available-for-sale financial instruments: A financial asset (or, as applicable, a part of a financial asset or a part of a group of similar financial assets) is derecognized when: · Its right to receive cash flows has expired. · The Company has transferred their rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full to a third party under an onlending agreement; and (a) the Company has transferred substantially all the risks and rewards related to the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards related to the assets, but has transferred its control. Derecognition of financial assets When the Company has transferred their rights to receive cash flows from an asset or have entered into an onlending agreement, and has neither transferred nor retained substantially all the risks and rewards related to the asset or transferred control of the asset, the asset is maintained and an associated liability is recognized. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations retained by the Company. Impairment of financial assets At the end of each reporting period, the Company assesses whether there is any indication of impairment of a financial asset or group of financial assets. The impairment of a financial asset or group of financial assets is only considered (and only if) when there is objective evidence resulting from one or more events that have occurred after the asset’s initial recognition (“loss event”), and such event affects the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The evidence of impairment may include indications that debtors (or group of debtors) are going through relevant financial constraints, moratorium or default in the amortization of interest or principal; likelihood that they will file for bankruptcy or another type of financial reorganization; and when this data indicates a measurable decrease in future cash flows, such as default interest variations or economic conditions related to default. Specifically in relation to loans and receivables, the Company, firstly verify whether there is objective evidence of impairment individually for financial assets that are individually significant, or collectively for assets that are not individually significant, if the Company determines the nonexistence of objective evidence of impairment of a financial asset measured individually – whether or not this loss is significant – the Company classifies it in a group of financial assets with similar credit risk characteristics which are evaluated collectively. The assets individually assessed as to be impaired, or for which the impairment is (or continues to be) recognized, are not included in the collective assessment. An impairment loss is measured as the difference between the carrying amount of an asset and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted by the original effective interest rate of the financial asset. The asset’s carrying amount decreases through the use of a provision and the impairment loss is recognized in the statement of operations. Interest income is recorded in the financial statements as part of finance income. In the case of borrowings or investments held to maturity with a variable interest rate, the Company measures the non-recovery based on the fair value of the instrument adopting an observable market price. If, in a subsequent period, an impairment decreases and this reduction can be objectively associated with an event that has occurred after the recognition of the provision (such as an improvement in a debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in the statement of operations. If a write-off is later recovered, it is also recognized in the statement of operations. (ii) Financial liabilities The financial liabilities under the scope of IAS 39 are classified as fair value through profit or loss or other financial liabilities, designated as hedge instruments in an effective hedge relationship, as applicable. The Company defines the classification of its financial liabilities at initial recognition. All financial liabilities are initially recognized at fair value and, in the case of borrowings and financing, net of directly attributable transaction costs. The Company’s financial liabilities include trade payable, borrowings and financing, debentures, financing related to acquisition of assets and derivative financial instruments. Subsequent measurement After initial recognition, interest-bearing borrowings and financings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the statement of operations for the year when the liabilities are written off, or through amortization according to the effective interest rate method. Derecognition of financial liabilities A financial liability is derecognized when the underlying obligation is settled, cancelled or expired. When an existing financial liability is replaced by another from the same lender, on substantially different terms, or the terms of an existing liability are substantially modified, this replacement or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized as financial income. Offsetting of financial instruments Financial assets and liabilities are offset and stated net in the financial statements only if there is a currently enforceable legal right to offset the recognized amounts and there is an intention of settling them on a net basis or realizing the assets and settling the liabilities simultaneously. 4.2. Foreign currency transactions Foreign currency transactions are initially recognized at the exchange rate of the corresponding currencies on the date the transaction is qualified for recognition. Assets and liabilities denominated in foreign currencies are translated to Real using the spot rate at the end of the reporting periods. Gains or losses on exchange variations are recognized as financial income or expense. 4.3. Derivative financial instruments The Company uses derivative financial instruments to limit the exposure to variation not related to the local market such as interest rate and exchange rate swaps. These derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at the end of each reporting period. Derivatives are accounted for as financial assets when their fair value is positive and as financial liabilities when their fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are recognized as financial income or expenses. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it intends to apply hedge accounting and its objective and risk management strategy for contracting the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Company will assess the effectiveness of the changes in the hedging instrument’s fair value in offsetting the exposure to changes in the fair value of the hedged item or cash flow attributable to the hedged risk. These hedges are expected to be highly effective in offsetting changes in the fair value or cash flow and are assessed on an ongoing basis to determine if they actually have been highly effective throughout the periods for which they were designated. Fair value hedges are recognized, in accordance with the procedures below: · The change in the fair value of a derivative financial instrument classified as fair value hedges is recognized as a financial result. The change in the fair value of the hedged item is recorded as a part of the carrying amount of the hedged item and is recognized in the statement of operations; · In order to calculate the fair value, debts and swaps are measured through rates publicly available in the financial market and projected up to their maturity date. The discount rate used in the calculation in the interpolation method for borrowings denominated in foreign currency is developed through DDI curves, free coupon and DI, indexes disclosed by the B3 (the Brazilian Securities, Commodities and Futures Exchange), whereas for borrowings denominated in reais, the Company uses the DI curve, an index published by the CETIP and calculated through the exponential interpolation method. 4.4. Cash and cash equivalents Cash and cash equivalents consist of cash, bank accounts and highly liquid short-term investments that are readily convertible into a known cash amount, and are subject to an insignificant risk of change in value, with intention and possibility to be redeemed in the short term, up to 90 days. 4.5. Trade accounts receivable Trade receivables are stated and maintained in the balance sheet at their nominal sales amounts less an allowance for doubtful accounts, which is recorded based on historical loss experience and risk analysis of the entire customer portfolio and the respective likelihood of collection. Trade accounts receivable refer to non-derivative financial assets with fixed payments or which may be calculated, without quotation in an active market. After the initial measurement, these financial assets are subsequently measured at amortized cost according to the effective interest method (“EIM”), less impairment. The amortized cost is calculated taking into account eventual discounts or premiums over the acquisition and costs comprising the EIM.The EIM amortization are included in net finance income (expense) in the statement of operations. Impairment expenses are recognized in the statement of operations. At the end of each reporting period, the Company assesses if the financial assets or group of financial assets are impaired. Impairment of receivables are based on historical rates observed in the last 24 months, besides observation of economic events like unemployment rates, consumer trends and past due receivables in the portfolio. Receivables are considered uncollectable, and therefore, written off after they are 180 days past due. 4.6. Inventories Inventories are accounted for at cost or net realizable value, whichever is lower. Inventories purchased are recorded at average cost, including warehouse and handling costs, to the extent these costs are necessary to bring inventories to selling conditions in the stores, less bonuses received from suppliers. Net realizable value is the selling price in the ordinary course of business, less the estimated costs to sell. Inventories are reduced by an allowance for obsolescence and damages, which is periodically reviewed and evaluated as to its adequacy. 4.7. Supplier Bonuses Bonuses received from suppliers are measured and recognized based on contracts and agreements signed, and recorded as a reduction of cost of sales when the corresponding inventories are sold. Includes purchase volume agreement, logistics and specific negotiations to recover margin, reimbursement agreement (marketing expenses), among others, and are deducted from payables to the respective suppliers, once the Company is contractually entitled to settle trade payables net of these bonuses. 4.8. Impairment of non-financial assets Impairment testing is designed so that the Company can present the net realizable value of an asset. This amount may be realized directly or indirectly, through the sale of the asset or the cash generated by the use of the asset in the Company activities. The Company tests its tangible or intangible assets for impairment annually or whenever there is internal or external evidence that they may be impaired. An asset’s recoverable amount is defined as the asset’s or cash generating units (CGU) fair value less cost of disposal or its value in use, whichever is higher. The recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and an allowance for impairment is recorded to adjust its carrying amount to its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to present value using a pre-tax discount rate that represents the Company’s weighted average cost of capital (“WACC”), reflecting current market assessments of the time value of money and the risks specific to the asset. Impairment losses are recognized in profit or loss for the year in the expense categories consistent with the function of the respective impaired asset. For assets excluding goodwill, previously recognized impairment losses are reversed only if there’s been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. 4.9. Property and equipment Property and equipment is stated at cost, net of accumulated depreciation and/or any impairment losses, if any. Cost includes the cost of acquisition and financing costs for long-term construction projects, if the recognition criteria are met. When significant components of property and equipment are replaced, they are recognized as individual assets with specific useful lives and depreciation. Likewise, when a major replacement is performed, its cost is recognized at the carrying amount of the equipment as a replacement, if the recognition criteria are met. All other repair and maintenance costs are recognized in the statement of operations for the year as incurred. Asset category Useful life (in years) Buildings 40 Improvements 24 Data processing equipment 5 Software 10 Facilities 12 Furniture and fixtures 9 Vehicles 5 Machinery and equipment 11 Decoration 5 Property and equipment items and eventual significant parts are written off when sold or when no future economic benefits are expected from its use or sale. Any eventual gains or losses arising from the write off of the assets are included in statement of operations for the year. The residual value, the useful life of assets and the depreciation methods are reviewed at the end of each reporting period and adjusted prospectively, if applicable. The Company reviewed the useful lives of fixed and intangible assets for fiscal year 2017 and no significant changes were deemed necessary. 4.10. Capitalization of interest Interest on borrowings and financing directly attributable to the acquisition, construction of an asset that requires a substantial period of time to be completed for its intended use or sale (qualifying asset) are capitalized as part of the cost of the respective assets during its construction phase. From the date that the asset is placed in operation, capitalized costs part of the carrying amount of the asset and are depreciated over the estimated useful life of the asset. 4.11. Investment properties Investment properties are measured at historical cost, including transaction costs. After the initial recognition, they are stated at cost, net of accumulated depreciation and or impairment loss, if applicable. Investment properties are written off when they are sold or when they are no longer used and no future economic benefit is expected from the sale. An investment property is also classified as held for sale when there is an intention to sell. The difference between the net amount obtained from the sale and the carrying amount of the asset is recognized in the statement of operations in the period in which the asset has been disposed of. 4.12. Intangible assets Intangible assets acquired separately are measured at cost at initial recognition, less amortization and any impairment losses. Internally generated intangible assets, excluding capitalized software development costs, are recognized as expense when incurred. Intangible assets consist mainly of software acquired from third parties, software developed for internal use, commercial rights (stores’ rights of use), customer lists, advantageous lease agreements, advantageous furniture supply agreements and brands. Intangible assets with definite useful lives are amortized using the straight-line method. The amortization period and method are reviewed, at least, at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimate. Software development costs recognized as assets are amortized over their useful lives (5 a 10 years), according to the amortization rates, mentioned in the note 4.10., beginning amortization when they become operational. Intangible assets with indefinite useful lives are not amortized, but tested for impairment at the end of each reporting period or whenever there are indications that their carrying amount may be impaired either individually or at the level of the cash-generating unit. The assessment is reviewed annually to determine whether the indefinite life assumption remains appropriate. Otherwise, the useful life is changed prospectively from indefinite to definite. When applicable, gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net proceeds from the sale of the asset and its carrying amount, and being recognized in the statement of operations in the year when the asset is derecognized. 4.13. Classification of assets and liabilities as current and noncurrent Assets (except for deferred income tax and social contribution) that are expected to be realized or are intended for sale or consumption within twelve months as of the end of the reporting periods are classified as current assets. Liabilities (except for deferred income tax and social contribution) that are expected to be settled within twelve months as of the end of the reporting periods are classified as current. All other assets and liabilities (including deferred tax assets and liabilities) are classified as “noncurrent”. The deferred tax assets and liabilities are classified as “noncurrent”, net by legal entity, according to IAS 12. 4.14. Assets held for sale Noncurrent assets and group of assets are reclassified as held for sale if the carrying amount will be recovered through a sale transaction, instead of continuous use. This condition is considered reached only when the asset is available to sale in the present condition, exposed only the terms that are usual to sales of these assets and the sale is highly probable. Management has to be committed to completed the sale within one year. When the Company is committed to a sale plan involving the loss of subsidiary control, all the assets and liabilities of this subsidiary are classified as held for sale when the criteria above is met, even if the Company keeps a non-controlling interest in its former subsidiary after the sale. Additionally, the net results of the entity classified as held for sale is presented as discontinued operations in a single caption in the statements of operations. After the completion of the sale, the Company records any residual interest in the associate in accordance with IAS 39, unless the Company has significant influence in the associate and, in this case, the Company uses the equity method of accounting. Non current assets classified as held for sale are measured based on the lower amount between carrying amount and fair value less cost to sell. 4.15. Leases The definition of an agreement as lease is based on an assessment at the inception of the lease, i.e., if fulfilment of the arrangement depends on the use of a specific asset or assets or the arrangement transfers the right to use the asset. The Company rents equipments and commercial spaces, including stores and distribution centers, through lease agreements. The agreements length vary substantially from 5 to 25 years. Company as lessees Financial lease agreements, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or at the present value of the minimum lease payments, whichever is lower. Lease payments are allocated between financial charges and reduction of lease liabilities so as to achieve a constant interest rate in the remaining balance of liabilities. Financial charges are recognized as a financial expense in the year. Leased assets are depreciated over their useful lives. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over its estimated useful life or the lease term, whichever is shorter. The leasehold improvements and rebuilding follow the same rule. Lease agreements are classified as operating leases when there is no transfer of risk and benefits incidental to ownership of the leased item. The installment payments of leases (excluding service costs, such as insurance and maintenance) classified as operating lease agreements are recognized as expenses, on straight-line basis, during the lease term. Contingent rentals are recognized as expenses in the years they are incurred. Company as lessors Lease agreements where the Company does not transfer substantially all the risks and benefits incidental to ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the agreement term on the same basis as rental income. Contingent rentals are recognized as revenue in the periods in which they are earned . 4.16. Provisions Provisions are recognized when the Company has present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and the obligation can be reliably estimated. Where the Company expects a provision to be fully or partially reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to the eventual provision is recognized in statement of operations for the year, net of any reimbursement. In cases of attorney’s fees in favorable court decisions, the Company’s policy is to make a provision when fees are incurred, i.e., upon final judgment on lawsuits, as well as disclose in notes the amounts involved in lawsuits in progress. 4.17. Dividend and interest on own capital distribution Dividend distribution to the Company’s shareholders is recognized as a liability at the year-end, based on the minimum mandatory dividends established by the Bylaws. Additional dividends are only recorded when approved by the Company’s shareholders. The Company may pay interest as remuneration of its own capital calculated over the shareholders' equity accounts, observing the rate and limits determined by law. 4.18. Deferred Revenue The Company records deferred revenue related to amounts received in advance from business partners for the exclusivity in the intermediation of services of additional or extended warranties, recognized in profit by evidence of the service rendered in the sale of these warranties jointly with the business partners. 4.19. Equity Common and preferred shares are classified as equity. When the Company purchases its own shares (treasury shares), the remuneration paid, including any directly attributable costs, is deducted from equity, and are recorded as treasury shares until the shares are cancelled or sold to the market. When these shares are subsequently sold, any remuneration received, net of any directly attributable costs, is included in equity. No gain or loss is recognized on the purchase, sale, issue or cancellation of the Company’s own equity instruments. 4.20. Share-based payment Employees and senior executives of the Company (including ours subsidiaries) receive compensation in the form of share-based payment, whereby employees render services in exchange for equity instruments (“equity-settled transactions”). Equity-settled transactions The cost of equity-settled transactions is recognized as an expense in the year, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are met. Cumulative expenses recognized for equity instruments at each reporting date until the vesting date reflect the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will be ultimately vested. Each year’s expenses or expenses reversals represents the change in the cumulative expenses recognized at the beginning and the end of that year. No expense is recognized for services that has not completed the vesting period, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vested irrespective of whether or not the market or non-vesting condition is met, provided that all other performance and/or service conditions are met. When an equity instrument is modified, the minimum expense recognized is the expense that would have been incurred if the terms had not been modified, an additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee, as measured at the date of modification. When an equity instrument is cancelled, it is treated as fully vested on the date of cancellation, and any expense not yet recognized related to the premium are immediately recognized in profit or loss for the year, this includes any premium whose non-vesting conditions within the control of either the Company or the employee are not met. However, if the cancelled plan is replaced by another plan and designated as a replacement grants on the grant date, the cancelled grant and the new plan are treated as if they were a modification of the original grant, as described in the previous paragraph. All cancellations of equity-settled transactions are treated equally. The dilutive effect of outstanding options is reflected as an additional share dilution in the calculation of diluted earnings per share (see note 29). 4.21. Earnings per share Basic earnings per share are calculated based on the weighted average number of outstanding shares of each category during the year. Diluted earnings per share are calculated as follows: · Numerator: profit for the year adjusted by dilutive effects from stock options granted by subsidiaries. · Denominator: weighted average number of outstanding shares of each category adjusted to include potential shares corresponding to dilutive instruments (stock options), less the number of shares that could be bought back at market, if applicable. Equity instruments that will or may be settled with the Company’s shares are only included in the calculation when its settlement has a dilutive impact on earnings per share. 4.22. Determination of net income Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company, and it can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and sales taxes. The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements, except for those referring to extended warranties and insurance policy brokerage, among others. Specifically in these cases, the Company operates as agents, and revenue is recognized on a net basis, which reflects the commission received from insurance companies. The following specific recognition criteria must also be met before revenue is recognized: (i) Revenue a) Sale of goods Revenue from sale of goods are recognized at their fair value and, when all the risks and benefits inherent to said good are transferred to the buyer, the Company ceases to hold control or responsibility for the goods sold and the economic benefits generated to the Company are probable. No revenue is recognized if their realization is uncertain. b) Service revenue Due to the Company’s actions as agent in insurance extended warranty, financial protection insurance, personal accident insurance, sales agents in technical assistance and mobile phone recharge, revenues earned are presented net of related costs and recognized in profit or loss when probable that the economic benefits will flow to the Company and their values can be measured reliably. c) Finance service revenue As the activity of customer financing is an important part of the Company’s business, for all financial instruments measured at amortized cost, revenue is recorded using the effective interest rate, which discounts exactly the estimated future cash receipts through the expected life of the financial instrument, or a shorter period of time, where applicable, to the net carrying amount of the asset. Interest income is included under financial services, comprising the Company's gross profit in the statement of operations. This practice is substantially related to discontinued operations. d) Interest income For all financial instruments measured at amortized cost, interest income is recorded using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts thr |
5. Adoption of standards, amend
5. Adoption of standards, amendments/interpretations of existing standards and standards issued but not yet effective | 12 Months Ended |
Dec. 31, 2017 | |
Adoption Of Standards Amendmentsinterpretations Of Existing Standards And Standards Issued But Not Yet Effective | |
Adoption of standards, amendments/interpretations of existing standards and standards issued but not yet effective | 5.1. Changes to IFRS and new interpretations of mandatory application starting at the current year. In 2017, the Company applied amendments and new interpretations to IFRSs issued by IASB, which were mandatorily effective for accounting periods beginning on or after January 1, 2017. The main amendments are: Statement Description Impact Annual improvements to IFRS: 2015 – 2017 cycle Amendments to IFRS 12 - Disclosure of interests in other entities - clarification of the scope statements. The adoption of this standard had no significant impact on the consolidated financial statements. IAS 12 – Deferred tax income recognize for unrealized losses Describes the treatment of temporary difference. The adoption of this standard had no significant impact on the consolidated financial statements. IAS 7 – Initiatives to improve disclosures Describes about disclosures that enable users to evaluate the changes in liabilities related to financing activities. The adoption of this standard had no significant impact on the consolidated financial statements. 5.2. New and revised standards already issued but not yet adopted The Company has not early adopted the following new and revised IFRSs already issued and not yet effective: Pronouncement Description Applicable to annual periods beginning on or after IFRS 9 – Financial Instruments Several changes in classification and measurement, measurement of impairment and hedge accounting. 01/01/2018 IFRS 15 – Revenue from contracts with customers Applies a five-step model and a definitive guide as when to recognize revenue. It also introduces new disclosures. 01/01/2018 IFRS 16 – Leases Requires a review on lease arrangements for both lessors and lessees, replacing IAS 17. The definitions of operating lease disappear, except for short-term leases and contracts involving immaterial items. 01/01/2019 IFRS 2 – Classification and measurement of share based payment Between other changes describes modifications of settled options of shares. 01/01/2018 IFRS 10 and IAS 28 improvements – sale or asset contribution, between investor and associate or Joint Venture In case of assets sale, or asset contribution, between investor and associates or joint venture, the transaction will only be recognized in profit and loss if the transaction is done with an unrelated third party. 01/01/2018 a) IFRS 9 In 2017, the Company conducted a detailed assessment of the main aspects of IFRS 9. This assessment is based on information currently available and may be subject to changes arising from reasonable and sustainable information that will be available to the Company in 2018, when the Company will adopt IFRS 9. In general, the Company does not foresee any significant impact on the balance sheet and statement of changes in shareholders' equity, except for the application of the impairment requirements and classification and measurement the IFRS 9. The Company expects an increase in the provision for losses, resulting in a negative impact on shareholders' equity, as discussed below: Impairment IFRS 9 requires the Company to record the expected credit losses on all of its loans and trade accounts receivable, based on a 12 months evaluation or lifetime. The Company will apply the simplified approach and will consider full lifetime expected losses on trade accounts receivable. The Company considered that, due to the non guaranteed nature of its loans and receivables, the provision for impairment will increase by approximately R$ 168 in the consolidated financial statement (R$5 for continued operations and R$163 for discontinued operations), with the corresponding effect of deferred taxes in the amount of R$42 (R$ 2 for continued operations and R$40 for discontinued operations). Classification and measurement The Company does not expect significant effects on its balance sheet or shareholders' equity in adoption of the classification and measurement requirements of IFRS 9, except for the classification of credit card receivables in the Fair Value through Other Comprehensive Income category, according to the classification of the business model. The impact of this adoption represents R$76 in the balance sheet and shareholders' equity of consolidated financial statements as of December 31, 2017, (R$64 in the discontinued operation), with the corresponding effect of deferred tax in the amount of R$20, being R$17 for discontinued operations. Summary of impacts As a result of the initial application of IFRS 9 discussed above, the Company estimates a net effect in assets and shareholders' equity of approximately R$182 in the consolidated financial statements (R$169 in discontinued operations). b) IFRS 15 IFRS 15 was issued on May 2014, amended in April 2016, and establishes a five-step model for accounting revenues from contracts with customer. Under IFRS 15, revenue is recognized in an amount that reflects the consideration to which an entity expects to be entitled, in exchange for the transfer of goods or services to a customer. The new revenue standard will replace all current revenue recognition requirements under IFRS. The revenue streams from continued operations are significantly related the transactions done at points of sale. In discontinued operations revenue streams are substantially in-stores sales and delivered to consumers, sales through e-commerce channels, and financial services, without any impact on the adoption of IFRS 15. The full retrospective application or modified retroactive application will be required for annual periods beginning on or after January 1, 2018. The Company will adopt the new standard on the effective date required on the basis of the full retrospective method. In 2016, the Company conducted a preliminary assessment of IFRS 15, which was completed with more detailed analysis in 2017. (i) Sales of goods and services to consumers In the sale of goods in retail, whether in the physical stores, e-commerce, or in the services provided in our stores and sites, there was no significant impact of the adoption of IFRS 15. The Company considered in its analysis the critical events of transfer of control, right of return, etc. (ii) Warranty obligations The Company has no warranty obligations related to the sale of its goods and services. These guarantees are offered by the manufacturers or in the case of sales with extended warranties reimbursed by the insurers, on which the Company is agent in the sale of such insurance policies, receiving commission fees on the sale impact. (iii) Rebates of Marketing and IT Expenses In the Retail segment, the Company offers advertising space to its suppliers and access to IT platforms, such amounts received from suppliers were previously classified as a reduction of selling expenses. The understanding based on the analysis of the expectation of the service by the suppliers is that such benefits are made due to the global relationship, since it does not generate a separate performance obligation. Such inflows will be classified as a reduction of the cost of goods sold, generating a reclassification of R$285, by applying this concept in the statement of income for the year ended December 31, 2017, between the accounts Selling expenses (R$225), administrative expenses (R$60) and Cost of goods sold (R$285). There is no significant impact on the net income related to the application of this reclassification. (iv) Disclosure requirements Disclosure requirements in IFRS 15 are more detailed than in current IFRS. The Company has assessed the impacts related to transactions carried out in the course of its relationships with customers, and understands that there will be no significant changes to the disclosures currently made. In summary, our valuation is that the impact of the adoption of IFRS 15 is not significant in net income of the continuing and discontinued operations, and will lead to the reclassification mentioned in item (iii) above. c) IFRS 16 The Company is assessing the impacts of the adopting of "IFRS 16 - Lease" and significant impacts are expected, which are currently being measured and are expected to be concluded by the end of 2018. There are no other standards and interpretations issued and not yet adopted that may, in Management's opinion, have a significant impact on the results for the year or in the shareholders' equity disclosed by the Company in its consolidated financial statements. |
6. Significant accounting judgm
6. Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant accounting judgments, estimates and assumptions | The preparation of the consolidated financial statements of the Company requires Management to make judgments, estimates and assumptions that impact the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the year; however, uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the carrying amount of the asset or liability impacted in future periods. In the process of applying the Company’s accounting policies, Management has made the following judgments, which have the most significant impact on the amounts recognized in the consolidated financial statements: 6.1. Impairment According to the method disclosed in note 4.8, the Company assessed if there were assets that might not be recoverable at the year ended December 31, 2017 and concluded that there was no need for the recognition of an impairment loss. a) Test of impairment for assets related to the stores The procedure for verification of non-recoverability of property and equipment consisted in testing operating assets and intangible assets (such as Commercial rights) directly attributable to the stores. The steps of the test were as follows: · Step 1: compared the carrying amount of stores with a multiple of sales (30% to 35%), representing transactions between retail companies. For stores with an amount lower than the carrying amount, we come to a more detailed method, described in Step 3; · Step 2: for a selection of owned stores, we considered an evaluation report issued by independent experts and if it included impairment indicators then we applied the same procedures used for third-party stores, described in Step 3; · Step 3: we prepare the discounted cash flow of stores, using sales growth average 3.4% (6.0% on December 31, 2016) for the next 5 years. The discount rate used was 9.9%. b) Test of impairment for intangibles of indefinite useful life For the purposes of impairment test, goodwill acquired through business combinations and licenses (brands) with indefinite life was allocated to cash generating units, which are also operating segments disclosed financial information. The segments are: Retail, Cash and Carry, Home Appliances and E-commerce. The last two are held for sale (note 32). Segments’ recoverable value is calculated using the value in use based on estimated cash from financial budgets approved by senior management for the following three years. The discount rate on cash flow projections is 9.9%, and the cash flows exceeding three years are extrapolated using a growth rate of 5.5% for retail and cash and carry (6.5% on December 31, 2016). Based on this analysis, no impairment charges were necessary. The cash-and-carry brand refers to “ASSAÍ”, and the home appliance brands refer to “PONTO FRIO” and “CASAS BAHIA”. These brands were acquired through business combinations.. The consolidated Via Varejo total net assets, including Cnova Brasil, were tested as described in note 32. 6.2. Income taxes Given the nature and complexity of the Group business, the differences between actual results and assumptions, or future changes to such assumptions, could result in future adjustments to already recorded tax benefit and expenses. The Company records tax provisions, based on reasonable estimates, for the eventual consequences of audits by the tax authorities. The amount of these provisions is based on various factors, such as previous tax audits and different interpretations of tax regulations by the taxpayer and the appropriate tax authority. Such differences in interpretation may refer to a wide range of issues. Deferred income tax and social contribution assets are recognized for all unused tax losses to the extent that it is probable that taxable income will be available to offset the tax credits. Significant Management judgment is required to determine the amount of deferred income tax and social contribution assets that can be recognized, based on income estimates and future taxable income, based on the annual business plan approved by the Board of Directors. The Company writes-off or constitutes a provision when income tax and social contribution credits fulfillment is not probable. Accumulated tax losses do not expire; however their use is limited to 30% of taxable income for each year. The amounts of deferred tax assets recognized for accumulated tax carry forwards relates to subsidiaries that have tax planning opportunities for the use of these balances. Further details on taxes are disclosed in Note 20. 6.3. Fair value of derivatives and other financial instruments When the fair value of financial assets and liabilities recorded in the financial statements cannot be obtained in active markets, it is determined according to the hierarchy determined by IFRS 13, which establishes certain valuation techniques, including the discounted cash flow model, The data for these models are obtained, whenever possible, from observable markets or from information on comparable operations and transactions in the market. The judgments include the analyses of data, such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors may affect the reported fair value of financial instruments. The fair value of financial instruments actively traded on organized markets is determined based on market quotes, at the end of the reporting periods. For financial instruments not actively traded, the fair value is based on valuation techniques defined by the Company and compatible with usual market practices. These techniques include the use of recent market arm’s length transactions, the benchmarking of the fair value of similar financial instruments, the analysis of discounted cash flows or other valuation models. 6.4. Share-based payments The Company measures the costs of transactions with employees eligible to share-based remuneration based on the fair value of the equity instruments on the grant date. Estimating the fair value of share-based payment transactions requires determining the most appropriate valuation model, which depends on the terms and conditions of each grant. This estimate also requires determining the most appropriate inputs for the valuation model, including the expected useful life of the stock options, volatility and dividend yield, as well as making assumptions about them. The assumptions and models used to estimate the fair value of share-based payment transactions are disclosed in note 24.5. 6.5. Provision for risks The Company is party to several judicial and administrative proceedings (see note 21), Provisions for legal claims are recognized for all cases representing reasonably estimated probable losses. The assessment of the likelihood of loss takes into account available evidence, the hierarchy of laws, former court decisions and their legal significance, as well as the legal counsel’s opinion. The Company's management concluded that the provisions for tax, civil and labor claims are adequately presented in the consolidated financial statements. 6.6. Estimated losses in allowance for doubtful accounts The subsidiary Via Varejo has in its accounts receivable the amount of installment sales to be received by individual customers, over which, the estimation of losses is made in accordance with the expected percentage of losses, obtained through the observation of the historical behavior of the portfolio and updated at each reporting date. 6.7. Tax recoverable The Company has tax recoverable mainly related to ICMS, ICMS from Tax Substitution, PIS and Cofins. The utilization of tax credits is based on projections prepared by Management, operational issues and the consumption of the credits. See further details in note 11. 6.8. Inventories Inventories are measured by the lower of the acquisition cost, calculated by the average cost, and its net realizable value. The net realizable value is calculated by the average sales price, deducted from: (i) taxes over sales, (ii) personnel expenses directly related to inventories, (iii) purchase cost, and (iv) other costs necessary to bring the product in condition of sales. Inventories are reduced to its realizable value though the estimations of shrinkage, scrap, slow moving and obsolescence and estimation for merchandise that will be sold with negative gross margin. |
7. Cash and cash equivalents
7. Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | Rate 2017 2016 Cash and banks - Brazil 396 349 Cash and banks - Abroad (*) 68 66 Short-term investments - Brazil (**) 3,328 4,697 3,792 5,112 (*) Refers to amounts deposited in the United States of America in US Dollars. (**) Short-term investments as December 31, 2017 refer substantially to highly liquid investments accruing interest corresponding at a weighted average rate of 98,07% (98,26% on December 31, 2016) of the Interbank deposit Certificate ("CDI") and redeemable in less than 90 days of investment date. |
8. Trade receivables
8. Trade receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade Receivables | |
Trade receivables | 2017 2016 Credit card companies (note 8.1) 246 187 Credit card companies - related parties (note 12.2) 170 54 Sales vouchers 147 142 Private label credit card 74 62 Receivables from related parties (note 12.2) - 5 Receivables from suppliers 79 95 Allowance for doubtful accounts (note 8.2) (4) (2) 712 543 Current 632 543 Noncurrent 80 - 8.1. Credit card companies As part of its cash management strategy, the Company periodically enters into factoring transactions and discounts a portion of its credit card receivables to financial institutions or credit card companies in order to strengthen its working capital, without recourse or related obligation. 8.2. Allownace for doubtful accounts on trade receivables 2017 2016 2015 At the beginning of the year (2) (392) (354) Provision for loss (722) (609) (556) Write-off of receivables 621 561 544 Assets held for sale and discontinued operations (note 32) 99 422 - Exchange rate changes - 16 (26) At the end of the year (4) (2) (392) Below is the aging list of consolidated gross receivables, by maturity period: Overdue receivables Total Not overdue <30 days 30-60 days 61-90 days >90 days 2017 716 685 15 5 2 9 2016 545 524 13 6 1 1 |
9. Other receivables
9. Other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Other Receivables | |
Other receivables | 2017 2016 Accounts receivable from insurers (i) 208 19 Rental receivable 48 61 Receivable from Paes Mendonça (note 9.1) 532 532 Receivable from sale of subsidiaries (note 9.2) 81 69 Other 44 57 913 738 Current 271 126 Noncurrent 642 612 (i) The 2017 balance includes R$174 related to the amount to be reimbursed by the insurance company related to losses from the fire in the distribution center located in Osasco on December 27, 2017. 9.1. Accounts receivable – Paes Mendonça. The accounts receivable from Paes Mendonça relate to amounts deriving from the payment of third-party liabilities by the subsidiaries, Novasoc and Sendas. Pursuant to contractual provisions, these accounts receivable are guaranteed by commercial lease rights (“commercial rights”) of certain stores currently being operated by the Company and Sendas. The maturity of the accounts receivable is linked to the lease agreements, which are currently under tacit renewal and it has been presented as non-current asset due to the possibility of conversion into commercial rights of leased stores, considering the existing guarantee. The Company is currently in an advanced stage of its negotiations to renew the agreements and secure the long term operation of the stores, which would involve alternatives for the realization of this accounts receivable. The negotiations have not been completed through the date of issuance of these financial statements, and the Company is not expecting any loss on the accounts receivable based on the terms currently being discussed. 9.2. Accounts receivable from the sale of companies Accounts receivable related to the exercise of an option to buy gas stations by a third party. The original amount of this receivable was R$50, which was adjusted since the signature of the agreement on May 28, 2012, at a rate of 110% of the CDI, with payment in 240 monthly installments. In January 2016, 5 new gas stations were sold for the amount of R$8, in 120 installments at a rate of 110% of CDI. |
10. Inventories
10. Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Abstract | |
Inventories | 2017 2016 Stores 3,564 3,400 Distribution centers 1,307 1,255 Real estate inventories (note 10.3) 24 61 Allowance for losses on inventory obsolescence and damages (note 10.2) (73) (75) 4,822 4,641 10.1. Bonuses in inventories and storage cost Bonuses from suppliers and storage costs are included as cost of inventories and booked as cost of sales as the inventories are realized. On December 31, 2017, the amount of unrealized suppliers bonuses, booked as a reduction of inventory balance, totaled R$ 244 (R$ 178 on December 31, 2016). 10.2. Allowance for losses on inventory obsolescence and damages 2017 2016 2015 At the beginning of the year (75) (150) (91) Additions (110) (208) (129) Write-offs 111 164 72 Exchange rate changes - 1 (2) Assets held for sale and discontinued operations (note 32) 1 118 - At the end of the year (73) (75) (150) 10.3. Real estate inventories The amount of inventories of real estate units under construction refers to the fair value of the barter of land for real estate units, based on the market value of real estate units received, as observed in comparable market transactions. This balance refers to the real estate units of the projects Thera Faria Lima Pinheiros (“Thera”), Figue, Classic and Carpe Diem, plus one store to be built on the ground floor of the Thera Faria Lima Pinheiros building. Construction and development are being carried out by Cyrela Polinésia Empreendimentos Imobiliários Ltda., Pitangueiras Desenvolvimento Imobiliário SPE Ltda. and Hesa Investimentos Imobiliários Ltda. The apartment units of the Thera project, started in December, 2011, and for Classic e Carpe Diem, started in November, 2012, both projects were concluded on 2016 and some units of Thera are still in inventory. |
11. Recoverable taxes
11. Recoverable taxes | 12 Months Ended |
Dec. 31, 2017 | |
Recoverable Taxes | |
Recoverable taxes | 2017 2016 State value-added tax on sales and services – ICMS (note 11.1) 1,886 545 Provision for non-realization to ICMS (369) - Social Integration Program/Contribution for Social Security Financing-PIS/COFINS (note 11.2) 424 418 Income tax on short term investments 13 45 Income tax and Social Contribution 71 80 Social Security Contribution - INSS 312 211 Other 6 7 Total 2,343 1,306 Current 596 674 Noncurrent 1,747 632 Company records ICMS (State VAT) credits as a reduction of cost of sales, only if sufficient evidence is obtained based on legal opinion, documental and factual evidences, including the estimate of realization. 11.1 ICMS (State VAT) Since 2008, the Brazilian States have been substantially changing their laws aiming at implementing and broadening the ICMS (State VAT) tax substitution system (“ICMS-ST”). Referred system implies the prepayment of ICMS throughout the commercial chain, upon goods outflow from manufacturer or importer or their inflow into the State. The expansion of such system to a wider range of products traded at retail is based on the assumption that the trading cycle of these products will end in the State, so that ICMS is fully owed thereto. In order to supply its stores, the Company maintains distribution centers strategically located in certain States and in the Federal District, which receive goods with ICMS-ST included in the purchase price on behalf of entire supply chain, and then the goods are shipped to locations in other States. Such interstate shipment entitles the Company to a refund of prepaid ICMS, i.e., the ICMS of the commercial chain paid in acquisition becomes a tax credit to be refunded, pursuant to the State laws. The refund process requires the evidence through tax documents and digital files of the operations that entitled the Company to refund. Only after its previous legal ratification by State Tax Authorities and/or compliance with specific ancillary obligations aiming to support these credits, which occurs in periods after these credits are generated. Since the number of items traded at retail, subject to tax substitution, has been continuously increasing, the tax credits to be refunded by the Company have also grown. The Company has been using such authorized tax credits to offset against state tax liabilities owed after having obtained the special Regime and also through other procedures covered by State rules. For credits that cannot be offset immediately, the Company’s Management understands that future realization is probable based on a technical feasibility study, on the expectation of future growth and the offset against debts deriving from its operations. These studies were prepared and periodically revised based on information extracted from strategic planning previously approved by the Company’s Board of Directors. Management has implemented monitoring controls over the progress of the plan annually established, assessing and including new elements that contribute to the realization of ICMS tax credits, net of provision of R$369, as shown below: Up to one year 318 From 1 to 2 years 228 From 2 to 3 years 172 From 3 to 4 years 148 From 4 to 5 years 139 More than 5 years 512 1,517 In 2017, the Company re-assessed its position in relation to the recognition of ICMS-STrelated to prior periods, and started taking credits over sales since November 2016, when the Supreme Court (“STF”) ruled that all tax payers have the right over the difference between the ICMS-ST paid in advance by the supplier included in the purchase price, and the effective margin on the sale. The Company also considered in the conjunction of the elements that supported the recognition of the tax credit as ruled by STF in October 2016, the current tax positions over other tax matters that were potentially conflicting with the thesis being analyzed, legal opinions from external lawyers, and based on available information and estimations of the amounts calculated starting from January 2009, the Company recognized tax credits of R$1,092 related to prior years, being R$723 recognized by the Company and R$369 by the subsidiary Sendas Distribuidora. In the case of Sendas it was recorded simultaneously a provision of R$369, due to the lack of perspective of realization of the related credit. The net amount of R$723 was recognized as a reduction of the cost of goods sold in accordance with the accounting practice adopted by the Company. 11.2. PIS and COFINS credit The Company records PIS and COFINS credits when the Company obtain evidences to conclude about the rights of the credit. Evidences include i) Interpretation of tax legislation, ii) internal and external factors as legal practices and interpretation of the market and iii) accounting evaluation about the matter. These credits are recorded as a reduction of profit and loss accounts depending on the nature of tax credits calculated and recognized. In 2016, the Company recognized PIS/COFINS credits calculated on taxes subject to tax substitution, that complement the purchase cost of products for resale in the amount of R$641 (R$353 related to discontinued operations and R$288 to continued operations).The Company also maintained the application of tax benefit that reduced to zero the rate of PIS/COFINS on gross sale of certain electronic products (Lei do Bem or MP 690/2014 converted to law 13.241/15), which resulted in 2016 the recognition of the amount of R$600, recorded as a reduction of sales taxes (R$567 in discontinued operations and R$33 in continued operations). |
12. Related parties
12. Related parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties | |
Related parties | 12.1. Management and Advisory Committees compensation. The expenses related to management compensation (officers appointed pursuant to the Bylaws including members of the Board of Directors and the related support committees) for the years ended December 31, 2017, 2016 and 2015, were as follows: (In thousands of Brazilian reais) Base salary Variable compensation Stock option plan Total 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Board of directors (*) 5,797 7,128 4,026 - - - - - - 5,797 7,128 4,026 Executive officers 31,408 26,035 33,704 26,813 16,684 13,377 24,405 22,545 5,727 82,626 65,264 52,808 Fiscal Council 456 - - - - - - - - 456 - - 37,661 33,163 37,730 26,813 16,684 13,377 24,405 22,545 5,727 88,879 72,392 56,834 % share-based payment over the total 27.5% 31.1% 10.1% (*) The compensation of the Board of Directors’ advisory committees (Human Resources and Compensation, Audit, Finance, Sustainable Development and Corporate Governance) is included in this line. 12.2. Balances and transactions with related parties. Balances Transactions Trade receivables Other assets Trade payables Other liabilities Revenues (expenses) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2015 Controlling shareholders Casino (i) - 5 - 1 1 - 4 - (48) (64) (76) Wilkes Participações - - - - - - - - - - (1) Euris (i) - - - - - - - 1 (3) (4) (6) Éxito (i) - - - - - - - - (1) - - Helicco Participações(i) - - - - - - - - - (1) - Subsidiaries Others - - - 1 - - - - - - 1 Associates FIC (ii) 170 54 24 14 22 14 - - 84 55 34 Other related parties Instituto Grupo Pão de Açúcar - - - - - - - - - (1) (7) Greenyellow (iii) - - - - - - 149 146 (58) (26) (10) Others - - 1 1 - - - - - (2) 1 Total 170 59 25 17 23 14 153 147 (26) (43) (64) Transactions with related parties refer mainly to transactions between the Company and other related entities and were substantially accounted for in accordance with the prices, terms and conditions agreed between the parties. The main transactions are: (i) Casino: Insurance: “Agency Agreement”: Signed between the Company, Sendas Distribuidora S.A and Groupe Casino Limited on July, 25 2016 to set the rules for the services provided of “global sourcing” (prospecting global suppliers and intermediating the purchases) for Casino. “Cost Reimbursement Agreement”: Signed between the Company and Casino, Guichard-Perrachon S.A. on July, 25 2016 to set the reimbursement rules of French employees expenses of the Company related to the French social contributions paid by Casino in France. Agency Agreement: entered into between the Company, Sendas Distribuidora S.A. and Casino International S.A. on December 20, 2004 (as amended on February 23, 2017) to represent the Company in the commercial negotiation of products to be acquired from international suppliers. (ii) Éxito: “Commercial Agreement” Signed between the Company and Éxito on July, 27 2016 to set the rules for the implementation of synergies process between the companies operations including a license of tradenames and copyrights by Distribuidora de Textiles y Confecções S.A Distribuidora de Textiles y Confecções S.A (iii) FIC: (iv) Greenyellow: (v) Via Operational Agreement entered into between the Company and Via Varejo on August 8, 2016 to establish integration between e-commerce and physical stores of the "Extra" brand. The Company must pay to Via Varejo fixed remuneration rates for the joint purchase of common items with suppliers and Via Varejo must pay to the Company fixed remuneration rates for withdrawal of products in the Company's physical stores of products purchased by consumers on the websites of the brands "Extra", "Ponto Frio" and "Casas Bahia". Warranty instruments that establish the collection of compensation by the Company for grant a corporate warranty to Via Varejo's obligations within financial, commercial and leasing contracts. Term of acceptance to the agreement to provide and employees’ multi-benefit cards: Employees benefit cards sold by the Company to Via Varejo (signed on August 14, 2017), in order to the Via Varejo’s employees have access to buy products at stores with this card. Reciprocal rental and sublease of real estate properties between the Company and Via Varejo, for store location, administrative office or distribution center sharing. The Company's Board of Directors approved the limit of guarantees up to R$1.2 billion for the subsidiary Via Varejo, on extended warranties transactions and collaterals with financial institutions. The service will be remunerated based on fees determined on market prices. There were no effects of such transactions on the results of 2017. (vi) Cnova: Warranty instruments that establish compensation to the Company for granting corporate warranty to Via Varejo's obligations in financial, commercial and leasing contracts. Reimbursement of expenses by Cnova to the Company for costs and expenses related to legal and administrative claims filed against Cnova paid by the Company. Private Instrument of Agreement for Shared Expenses entered into by the Company, Via Varejo, Cnova and Sendas on December 15, 2016 to establish the criteria to allocate expenses related to the use of the shared services center. In 2017, Via Varejo has accounts payable related to purchase of operating right of some insurances with FIC for R$5; and a receivable from Casas Bahia Comercial of R$228, due to mainly assets indemnity. These balances are recorded in the line “assets held for sale and discontinued operations”. |
13. Investments in associates
13. Investments in associates | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Associates | |
Investments in associates | FIC BINV Other (*) Total Balances at 2015 361 20 1 382 Share of profit (loss) of associates – continued operations 76 - (16) 60 Share of profit of associates – discontinued operations 29 1 - 30 Dividends – continued operations (20) - - (20) Dividends – discontinued operations (8) - - (8) Other movements - - (9) (9) Exchange rates - - 5 5 Company reorganization (note 32) - - 7 7 Transfer to held for sale (note 32) (123) (21) (9) (153) Balances at 2016 315 - (21) 294 Share of profit(loss) of associates – continued operations 65 - (125) (60) Share of profit(loss) of associates – discontinued operations 25 1 - 26 Dividends and interest on own capital – continued operations (204) - - (204) Dividends and interest on own capital – discontinued operations (81) - - (81) Other movements - - (18) (18) Transfer to held for sale (note 32) 56 (1) - 55 Balances at 2017 176 - (164) 12 (*) Refers substantially to Cnova N.V. (i) On December 27, 2016 Casino initiated an offering to acquire all of available ordinary shares traded at “Nasdaq Global Select Market” and “Euronext” of its subsidiary Cnova N.V.. The other Casino’s subsidiaries, including GPA, that holds 10.37% of Cnova’s equity will not participate in this offer to acquire. The offer to acquire was for a value of US$5.50 per net share, without interest and less any applicable withholding tax. With the finalization of offering at January 31, 2017, Casino held, direct and indirectly, 98.88% of total shares and 99.41% of voting rights. |
14. Property and equipment
14. Property and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property And Equipment | |
Property and equipment | Balance at 2015 Additi-ons Depre-ciation (a) Write-offs Transfers Exchange rate changes Assets held for sale and discontinued operations (*) Balance at 2016 Additi-ons Depre-ciation Write-offs (**) Transfers(***) Assets held for sale and discontinued operations(*) Balance at 2017 Land 1,464 - - (1) 36 - (85) 1,414 - - (31) (21) - 1,362 Buildings 2,023 48 (62) (24) (96) - (33) 1,856 113 (59) (225) 85 - 1,770 Leasehold improvements 3,675 213 (272) (83) 441 - (690) 3,284 295 (254) (156) 342 (19) 3,492 Machinery and equipment 1,676 295 (279) (26) 35 (1) (360) 1,340 158 (234) (77) 118 (43) 1,262 Facilities 422 175 (47) (7) 19 (5) (124) 433 109 (46) (20) 5 6 487 Furniture and fixtures 701 73 (90) (5) 28 (3) (161) 543 55 (79) (14) 60 (25) 540 Vehicles 75 1 (6) (11) - - (57) 2 - (1) (6) 5 1 1 Construction in progress 172 546 (1) (11) (450) (2) (50) 204 596 - (4) (595) (75) 126 Other 97 31 (27) (9) (7) - (22) 63 41 (21) (3) (11) (6) 63 Total 10,305 1,382 (784) (177) 6 (11) (1,582) 9,139 1,367 (694) (536) (12) (161) 9,103 Finance lease Equipment 13 - (2) (2) - - - 9 - (2) - (1) - 6 IT equipment 31 5 (14) - - - (14) 8 - (3) - - - 5 Facilities 1 - (1) - - - - - - - - - - - Furniture and fixtures 6 - - - - - - 6 - (2) - - - 4 Buildings 21 - (1) - - - - 20 - - - - - 20 72 5 (18) (2) - - (14) 43 - (7) - (1) - 35 Total 10,377 1.387 (802) (179) 6 (11) (1,596) 9,182 1,367 (701) (536) (13) (161) 9,138 (*) See note 32 (**) The write-offs in buildings in the amount of R$137 refers to the damage on Distribution Center located in Osasco due to a fire occurred on December 27, 2017, R$123 refers to the sale of a Distribution Center and the remaining amount refers substantially to closure of stores. (***) In the total of transfers, R$(22) are related to the reclassification of a land to available for sale. (a) Continued operations correspond to R$ (638) and discontinued operations correspond to R$ (164) as the classification occurred in November 2016 2017 2016 Cost Accumulated depreciation Net Cost Accumulated depreciation Net Land 1,362 - 1,362 1,414 - 1,414 Buildings 2,705 (935) 1,770 2,823 (967) 1,856 Leasehold improvements 5,310 (1,818) 3,492 4,926 (1,642) 3,284 Machinery and equipment 2,828 (1,566) 1,262 2,779 (1,439) 1,340 Facilities 817 (330) 487 723 (290) 433 Furniture and fixtures 1,209 (669) 540 1,159 (616) 543 Vehicles 8 (7) 1 8 (6) 2 Construction in progress 126 - 126 204 - 204 Other 183 (120) 63 168 (105) 63 14,548 (5,445) 9,103 14,204 (5,065) 9,139 Finance lease Equipment 26 (20) 6 30 (21) 9 IT equipment 46 (41) 5 46 (38) 8 Facilities 1 (1) - 1 (1) - Furniture and fixtures 13 (9) 4 14 (8) 6 Buildings 43 (23) 20 43 (23) 20 129 (94) 35 134 (91) 43 Total 14,677 (5,539) 9,138 14,338 (5,156) 9,182 14.1. Guarantees At December 31, 2017 and 2016, the Company had collateralized property and equipment items for some legal claims, as disclosed in note 21.6. 14.2. Capitalized borrowing costs Capitalized borrowing costs for the year ended December 31, 2017 were R$16 (R$14 for the year ended December 31, 2016). The rate used to determine the borrowing costs eligible for capitalization was 101.66% of the CDI (104.53 % of the CDI in 2016), corresponding to the effective interest rate on the Company’s borrowings. 14.3. Additions to property and equipment in the table above is as follows: 2017 2016 Additions (i) 1,367 1,387 Finance lease - (5) Capitalized borrowing costs (16) (14) Property and equipment financing - Additions (ii) (553) (802) Property and equipment financing - Payments (ii) 604 699 Total 1,402 1,265 (i) The additions are related to the purchase of operating assets, acquisition of land and buildings to expand activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. (ii) The additions to property and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows, net of items that did not impact cash. 14.4. Other information At December 31, 2017, the Company recorded in the cost of sales the amount of R$54 (R$55 at December 31, 2016) related to the depreciation of its fleet of trucks, machinery, buildings and facilities related to the distribution centers. For the year ended December 31, 2017, 2016 and 2015, the Company did not recognize any impairment. The recoverable amount was calculated based on the value in use for each cash-generating unit. See more details in note 6.1(a). |
15. Intangible assets
15. Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | |
Intangible assets | Balance at 2015 Addi-tions Amorti-zation Write-off Transfers Assets held for sale and discontinued operations (*) Exchange rate changes Balance at 2016 Addi-tions Amorti-zation Write-off Transfer Assets held for sale and discontinued operations (*) Balance at 12.31.2017 Goodwill - retail 2,272 - - (2) - (1,116) (47) 1,107 - - - - - 1,107 Tradename - cash and carry 2,121 - - (4) 1 (2,075) (4) 39 - - - - - 39 Commercial rights - retail 650 - (2) - 6 (574) - 80 6 - - - - 86 Lease agreement – under advantageous condition 70 - (14) - - (56) - - - - - - - - Contractual rights 148 65 (28) - - (185) - - - - - - - - Software 1,127 208 (210) (70) (46) (447) (39) 523 236 (86) (9) (9) (104) 551 Software capital leasing 89 94 (31) - 83 (76) - 159 41 (46) - - (13) 141 Other 66 69 (2) (3) (52) (64) (14) - - - - - - - Total 6,543 436 (287) (79) (8) (4.593) (104) 1,908 283 (132) (9) (9) (117) 1,924 (*) See note 32. 2017 2016 Cost Accumulated amortization Net Cost Accumulated amortization Net Goodwill - retail 2,217 (1,110) 1,107 2,217 (1,110) 1,107 Tradename - cash and carry 39 - 39 39 - 39 Commercial rights - retail (note 15.2) 86 - 86 80 - 80 Software 1,038 (487) 551 929 (406) 523 Software capital leasing 377 (236) 141 349 (190) 159 Total intangibles 3,757 (1,833) 1,924 3,614 (1,706) 1,908 15.1. Impairment testing of goodwill, brands and intangible assets with indefinite useful life On December 31, 2017, the goodwill acquired through business combinations and tradenames with indefinite useful lives were tested for impairment as part of the two cash generating units, which are also operating segments: retail and cash and carry to which they have been allocated to on the acquisition date. The recoverable amount of the segments was defined by means of the value in use based on cash flows projections arising from financial budgets approved by senior management for the next three years. The discount rate applied to cash flow projections was 9.9%, and cash flows exceeding 3 years are extrapolated by expected growth rate for each segment. Based on this analysis, no impairment was identified. See further details in note 6.1 (b). 15.2. Commercial rights Commercial rights are the right to operate the stores under acquired rights, or through business combinations. Management understands that commercial rights are considered recoverable, either through the expected cash flows of the related store cash flows return or the possibility of selling them to third parties. 15.3. Additions to intangible assets in the table above is as follows: 2017 2016 Additions 283 436 Finance lease (41) (94) Contractual rights - (65) Intangible assets financing - Payments 69 2 Total 311 279 |
16. Trade payables
16. Trade payables | 12 Months Ended |
Dec. 31, 2017 | |
Trade Payables | |
Trade payables | 2017 2016 Product suppliers 8,554 7,763 Service suppliers 412 320 Bonuses from suppliers (note 16.2) (838) (851) 8,128 7,232 16.1. Agreement between suppliers, the Company and banks The Company has certain agreements with financial institutions in order to allow its suppliers to use the Company's lines of credit for prepayment of receivables arising from the sale of goods and services, allowing suppliers to anticipate receivables. These transactions were evaluated by the management and concluded that they have commercial characteristics, since there are no changes in price and / or terms previously established in the original commercial negotiations, as well as no financial charges. The anticipation is also solely at the suppliers’s discretion. 16.2. Accounts receivable from vendors It includes bonuses and discounts obtained from suppliers. These amounts are established in agreements and include amounts for discounts on purchase volumes, joint marketing programs, freight reimbursements, and other similar programs. The settlement of these receivables is through offsetting the amounts payable to suppliers, according to the terms of supply agreements. |
17. Borrowings and financing
17. Borrowings and financing | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings And Financing | |
Borrowings and financing | 17.1. Debt breakdown Weighted average rate 2017 2016 Debentures and Certificate of Agribusiness Receivables (note 17.4) 99.84% of CDI (i) 3,015 2,472 3,015 2,472 Borrowings and financing Local currency BNDES 3.88% per year 45 51 Working capital 104.80% of CDI (i) 285 1,302 Working capital TR (ii) + 9.80% per year 125 135 Finance lease (note 22) 195 215 Swap contracts (note 17.7) 101.40% of CDI (i) (19) (10) Borrowing cost (4) (6) 627 1,687 Foreign currency Working capital USD + 2.57% per year 664 1,361 Working capital EURO + 1.99% per year 200 172 Swap contracts (note 17.7) 103.53% of CDI (i) 55 177 Borrowing cost (1) - 918 1,710 Total 4,560 5,869 Noncurrent assets 28 - Current liabilities 1,251 2,957 Noncurrent liabilities 3,337 2,912 (i) CDI: Certificate of Interbank Deposit (ii) TR: Referential rate 17.2. Changes in borrowings At December 31, 2015 7,978 Additions - working capital 8,082 Additions - finance lease 100 Accrued interest 862 Accrued swap 920 Mark-to-market (22) Monetary and exchange rate changes (635) Borrowing cost 4 Interest paid (624) Payments (6,876) Swap paid 19 Liabilities related to assets held for sale (note 32) (3,939) At December 31, 2016 5,869 Additions - working capital 7,789 Additions - finance lease 41 Accrued interest 748 Accrued swap 114 Mark-to-market 12 Monetary and exchange rate changes 22 Borrowing cost 9 Interest paid (1,131) Payments (8,336) Swap paid (318) Liabilities related to assets held for sale (note 32) (259) At December 31, 2017 4,560 17.3. Maturity schedule of borrowings and financing recorded in noncurrent liabilities Year From 1 to 2 years 1,892 From 2 to 3 years 1,298 From 3 to 4 years 40 From 4 to 5 years 24 After 5 years 66 Subtotal 3,320 Borrowing costs (11) Total 3,309 17.4. Debentures, Promissory Note and Certificate of Agribusiness Receivables Date Type Issue Amount Outstanding debentures (units) Issue Maturity Annual financial charges Unit price (in reais) 2017 2016 12th Issue of Debentures – CBD No preference 900 900,000 09/17/14 09/12/19 107.00% of CDI 1,023 921 939 13th Issue of Debentures – CBD and CRA No preference 1,012 1,012,500 12/20/16 12/20/19 97.50% of CDI 1,001 1,014 1,017 14th Issue of Debentures – CBD and CRA No preference 1,080 1,080,000 04/17/17 04/13/20 96.00% of CDI 1,015 1,096 - 2nd Issue of Promissory Note – CBD No preference 500 200,000 08/01/16 01/30/17 108.00% of CDI - - 530 Borrowing cost (16) (14) Total current and noncurrent 3,015 2,472 Current liabilities 481 568 Noncurrent liabilities 2,534 1,904 GPA issues debentures to strengthen its working capital, maintain its cash strategy, lengthening its debt profile and make investments. The debentures issued are unsecured, without renegotiation clauses and not convertible into shares. The amortization occurs in (i) annual installments starting in the 4 th th th th The 12 th th th On August 1st, 2016, CBD performed the 2 nd On December 20, 2016 CBD performed the 13 th nd st in natura The total amount of the issuance was R$ 1,013 with interest at 97.5% of the average CDI rate, payable semi-annually. Principal will be paid at the maturity date on December 20, 2019. On April 17, 2017, CBD performed the 14 th th st in natura The amount of the issuance was R$ 1,080, maturing on April 13, 2020, with interest of 96% of the CDI to be semi-annually paid. 17.5. Borrowings in foreign currencies On December 31, 2017 GPA had loans in foreign currencies (US dollar and euro) to strengthen its working capital, maintain its cash strategy, lengthening its debt profile and make investments, being the last due date in September, 2020. 17.6. Guarantees The Company has signed promissory notes for some loan contracts. 17.7. Swap contracts The Company uses swap transactions for 100% of its borrowings denominated in US dollars, euros and fixed interest rates, exchanging these obligations for Real linked to CDI (floating) interest rates. These contracts include a total amount of the debt with the objective to protect the interest and principal and are signed, generally, with the same due dates and in the same economic group. The weighted average annual rate of CDI in 2017 was 9.93% (14.00% in 2016 and 13.24% in 2015). 17.8. Credit facilities The Company entered into credit facility agreements, in the amount of R$1,150. These agreements are under market conditions and effective for 2018. 17.9. Financial covenants In connection with the debentures and promissory notes and for a portion of borrowings denominated in foreign currencies, GPA is required to maintain certain debt financial covenants. These ratios are quarterly calculated based on consolidated financial statements of the Company prepared in accordance with accounting practices adopted in Brazil, as follows: (i) net debt (debt minus cash and cash equivalents and trade accounts receivable) should not exceed the amount of equity and (ii) net debt/EBITDA ratio should be lower than or equal to 3.25. At December 31, 2017, GPA was in compliance with these convenants. |
18. Financial instruments
18. Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments | |
Financial instruments | The Company uses financial instruments only for protecting identified risks, limited to 100% of the risks. Derivative transactions have the sole purpose of reducing the exposure to the interest rate and foreign currency fluctuations and maintaining a balanced capital structure. The main financial instruments and their carrying amounts, by category, are as follows: Carrying amount 2017 2016 Financial assets: Loans and receivables (including cash) Cash and cash equivalents 3,792 5,112 Trade receivables and other receivables 1,625 1,281 Related parties - assets 25 17 Financial instruments – Fair value hedge 28 - Financial liabilities: Amortized cost Related parties - liabilities (153) (147) Trade payables (8,128) (7,232) Financing for purchase of assets (116) (120) Acquisition of non-controlling interest - (7) Debentures (3,015) (2,472) Borrowings and financing (520) (1,562) Fair value through profit or loss Borrowings and financing (989) (1,835) Financial instruments – Fair value hedge (64) - The fair value of other financial instruments detailed in table above approximates the carrying amount based on the existing terms and conditions. The financial instruments measured at amortized cost, the related fair values of which differ from the carrying amounts, are disclosed in note 18.3. 18.1. Considerations on risk factors that may affect the business of the Company (i) Credit risk · Cash and cash equivalents: in order to minimize credit risk, the Company adopts investment policies at financial institutions approved by the Company’s Financial Committee, also taking into consideration monetary limits and financial institution evaluations, which are regularly updated. · Accounts receivable: credit risk related to accounts receivable is minimized by the fact that large portion of the sales are paid with credit cards, and the Company sells these receivables to banks and credit card companies, aiming to strengthen working capital. The sales of receivables result in derecognition of the accounts receivable due to the transfer of the credit risk, benefits and control of such assets. Additionally, mainly to the accounts receivable paid in installments, the Company monitor the risk through the credit concession to customers and by periodic analysis of the provision for losses. · The Company also has counterparty risk related to the derivative instruments; such risk is mitigated by the Company’s policy of carrying out transactions according to policies approved by governance boards. · There are no amounts receivable that are individually, higher than 5% of accounts receivable or sales, respectively. (ii) Interest rate risk The Company raises loans and financing with major financial institutions for cash needs for investments. As a result, the Company is mainly exposed to relevant interest rates fluctuation risk, especially in view of derivatives liabilities (foreign currency exposure hedge) and CDI-indexed debt. The balance of cash and cash equivalents, indexed to CDI, partially offsets the interest rate risk. (iii) Exchange rate risk The Company is exposed to exchange rate fluctuations, which may increase outstanding balances of foreign currency-denominated borrowings. The Company uses derivatives, such as swaps, aiming to mitigate the exchange exposure risk, converting the cost of debt into domestic currency and interest rates. (iv) Capital risk management The main objective of the Company’s capital management is to ensure that the Company sustains its credit rating and a well-defined equity ratio, in order to support businesses and maximize shareholder value. The Company manages the capital structure and makes adjustments taking into account changes in the economic conditions. The capital structure is presented as follows: 2017 2016 Cash and cash equivalents 3,792 5,112 Financial instruments – Fair value hedge 28 - Borrowings and financing (4,588) (5,869) Other liabilities with related parties (note 18.2) (*) (145) (149) Net debt (913) (906) Shareholders’ equity (13,292) (12,597) Net debt to equity ratio 7% 7% (*) Represents amount payable to Greenyellow related to purchase of equipment. (v) Liquidity risk management The Company manages liquidity risk through the daily analysis of cash flows and control of maturities of financial assets and liabilities. The table below summarizes the aging profile of the Company’s financial liabilities as at December 31, 2017: Up to 1 Year 1 – 5 years More than 5 years Total Borrowings and financing 702 659 75 1,436 Debentures and promissory notes 652 2,773 - 3,425 Derivative financial instruments 90 20 (3) 107 Finance lease 67 157 156 380 Trade payables 8,128 - - 8,128 Total 9,639 3,609 228 13,476 (vi) Derivative financial instruments Certain swap operations are classified as fair value hedge, whose objective is to hedge against foreign exchange exposure (Euros and U.S. dollars) and fixed interest rates, converting the debt into domestic interest rates and currency. At December 31, 2017 the notional value of these contracts were R$1,039 (R$1,768 at December 31, 2016). These operations are usually contracted under the same terms of amounts, maturities and fees, and carried out with the financial institution of the same economic group, observing the limits set by Management. According to the Company’s treasury policies, swaps cannot be contracted with restrictions (“caps”), margins, as well as return clauses, double index, flexible options or any other types of transactions different from traditional “swap” operations to hedge against debts. The Company’s internal controls were designed to ensure that transactions are conducted in compliance with this treasury policy. The Company calculates the effectiveness of hedge transactions at inception date and on continuing basis. Hedge transactions contracted in the year ended December 31, 2017 were effective in relation to the covered risk. For derivative transactions qualified as hedge accounting, according to IAS 39, the debt, which is the hedge object, is also adjusted at fair value. Notional value Fair value 2017 2016 2017 2016 Fair value hedge Hedge object (debt) 1,039 1,768 989 1,666 Long position (buy) Prefixed rate TR+9.80% per year 127 127 125 134 US$ + fixed 2.57% per year 692 1,421 663 1,362 EUR + fixed EUR+1.99% per year 220 220 200 176 1,039 1,768 988 1,672 Short position (sell) 103.29% per year (1,039) (1,768) (1,024) (1,839) Hedge position - asset - - 28 - Hedge position - liability - - (64) (167) Net hedge position - - (36) (167) Realized and unrealized gains and losses on these contracts during the year ended December 31, 2017 are recorded as financial income or expense, net and the balance payable at fair value is R$36 (R$167 as at December 31, 2016. The effects of the fair value hedge recorded in the statement of operations for the year ended December 31, 2017 resulted in a gain of R$129 (gain of R$722 as at December 31, 2016). (vii) Fair values of derivative financial instruments Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair values are calculated by projecting the future cash flows of transactions, using the curves of CDI and discounting them to present value, using CDI market rates for swaps both disclosed by B3. The market value of exchange coupon swaps versus CDI rate was obtained applying market exchange rates effective on the date of financial statements are prepared and rates are projected by the market calculated based on currency coupon curves. In order to calculate the coupon of foreign currency indexed-positions, the straight-line convention - 360 consecutive days was adopted and to calculate the coupon of CDI indexed-positions, the exponential convention - 252 business days was adopted. 18.2. Sensitivity analysis of financial instruments According to the Management’s assessment, the most probable scenario is what the market has been estimating through market curves (currency and interest rates) of B3, on the maturity dates of each transaction. Therefore, in the probable scenario (I), there is no impact on the fair value of financial instruments. For scenarios (II) and (III) a deterioration of 25% and 50% was taken into account, respectively, on risk variables, up to one year of the financial instruments. For the probable scenario, weighted exchange rate was R$3.66 on the due date, and the weighted interest rate was 7.28% per year. In case of derivative financial instruments (aiming at hedging the financial debt), changes in scenarios are accompanied by respective hedges, indicating effects are not significant, see note 18.2 (i). The Company disclosed the net exposure of the derivatives financial instruments, corresponding to financial instruments and certain financial instruments in the sensitivity analysis table below, to each of the scenarios mentioned. (i) Other financial instruments Market projection Transactions Risk (CDI variation) Balance at 12.31.2017 Scenario I Scenario II Scenario III Fair value hedge (fixed rate) 101.44% of CDI (106) (190) (193) (196) Fair value hedge (exchange rate) 103.53% of CDI (918) (1,127) (1,147) (1,168) Debentures 107% of CDI (921) (989) (1,005) (1,022) Certificate of Agribusiness Receivables 97.50% of CDI (1,014) (1,089) (1,107) (1,126) Promissory note 96% of CDI (1,096) (1,176) (1,197) (1,217) Bank loans - CBD 104.80% of CDI (285) (306) (311) (317) Leases 100.19% of CDI (58) (62) (63) (64) Leases 100% of CDI (5) (6) (6) (6) Leases 95% of CDI (86) (92) (94) (95) Total borrowings and financing exposure (4,489) (5,037) (5,123) (5,211) Cash and cash equivalents (*) 98.07% of CDI 3,328 3,550 3,606 3,662 Net exposure (1,161) (1,487) (1,517) (1,549) Net effect - gain (loss) (326) (356) (388) (*) Weighted average 18.3. Fair value measurements The Company discloses the fair value of financial instruments measured at fair value and of financial instruments measured at amortized cost, the fair value of which differ from the carrying amount, in accordance with IFRS13, which refer to the requirements of measurement and disclosure. The fair value hierarchy levels are defined below: Level 1: Measurement of fair value at the balance sheet date based on quoted (unadjusted) prices in active markets for assets or liabilities (observable inputs). Level 2: Measurement of fair value at the balance sheet date using other significant observable inputs for the asset or liability, either directly or indirectly, other than quoted prices included in Level 1. Level 3: Measurement of fair value at the balance sheet date using unobservable inputs for the asset or liability. The fair values of cash and cash equivalents, trade receivables , trade payables and short and long term debt are equivalent to their carrying amounts. The table below presents the fair value hierarchy of financial assets and liabilities measured at fair value and of financial instruments measured at amortized cost, the fair value of which is disclosed in the financial statements: Carrying amount Fair value 12.31.2017 12.31.2017 Level Financial instruments Cross-currency interest rate swaps (55) (55) 2 Interest rate swaps 19 19 2 Borrowings and financing (fair value) (989) (989) 2 Borrowings and financing and debentures (amortized cost) (3,535) (3,508) 2 Total (4,560) (4,533) There were no changes between the fair value measurements levels in the year ended December 31, 2017. Cross-currency and interest rate swaps and borrowings and financing are classified in level 2 since the fair value of such financial instruments was determined based on readily observable market inputs, such as expected interest rate and current and future foreign exchange rate. 18.4. Consolidated position of derivative transactions The outstanding derivative financial instruments are presented in the table below: Amount payable or receivable Fair value Description Counterparties Notional value Contractual date Maturity 2017 2016 2017 2016 Exchange swaps (US$ x CDI) Banco Tokyo US$ 75 1/14/2014 1/10/2017 - 61 - 59 Mizuho US$ 50 10/31/2014 10/31/2017 - 38 - 37 Bank of America US$ 40 9/14/2015 9/14/2017 - (26) - (25) Banco Tokyo US$ 50 7/31/2015 7/31/2017 - (6) - (6) Scotiabank US$ 50 9/30/2015 9/29/2017 - (39) - (37) Agricole EUR 50 10/7/2015 10/8/2018 (24) (54) (20) (42) Itaú BBA US$ 50 10/27/2015 1/17/2017 - (60) - (61) Bradesco US$ 50 3/3/2016 3/6/2017 - (53) - (54) Scotiabank US$ 50 1/15/2016 1/16/2018 (42) (50) (42) (47) Scotiabank US$ 50 9/29/2017 9/29/2020 9 - 9 - Banco Tokyo US$ 100 12/12/2017 12/12/2019 (3) - (2) - Interest rate swap registered with CETIP (pre-fixed rate x CDI) Itaú BBA R$ 21 11/11/2014 11/5/2026 1 1 3 2 Itaú BBA R$ 54 1/14/2015 1/5/2027 3 1 8 3 Itaú BBA R$ 52 5/26/2015 5/5/2027 2 2 8 4 (54) (185) (36) (167) |
19. Taxes and contributions pay
19. Taxes and contributions payable and taxes payable in installments | 12 Months Ended |
Dec. 31, 2017 | |
Taxes And Contributions Payable And Taxes Payable In Installments | |
Taxes and contributions payable and taxes payable in installments | 19.1. Taxes and contributions payable and taxes payable in installments 2017 2016 PIS and COFINS 52 49 Provision for income tax and social contribution 38 10 ICMS 65 75 Withholding Income Tax 13 22 Taxes payable in installments – PERT 176 - INSS 4 9 Taxes payable in installments - Law 11,941/09 (ii) 511 624 Other 8 5 867 794 Current 301 254 Noncurrent 566 540 (i) The Company decided to include certain federal tax debts in the Special Program on Tax Settlements – PERT (“PERT Program”), as per the conditions stablished in Law no. 13.496, enacted on October 24, 2017. This tax amnesty program allows for the payment of certain tax liabilities in monthly installments, and granted discounts on Interest and penalties. The Company included tax debts related to (i) tax assessments over purchase transactions, manufacturing and exports sales of soil beans (PIS/COFINS), (ii) non-validation of tax offsets (IRPJ, PIS/COFINS); and other tax debts previously classified as possible risks related mainly to CPMF and other claims - (See note 21.1). The PERT liability will be settled in monthly installments in 12 years. (ii) Federal tax installment payment, Law 11,941/09 – The Law 11,941, was enacted on May 27, 2009, a special federal tax and social security debt installment program, for debts overdue until November 2008, and gave several benefits to its participants, such as reduction of fines, interest rates and penalties, the possibility of utilization of accumulated tax losses to settle penalties and interest and payment in 180 months, use of restricted deposits linked to the claim to reduce the balance, besides of the fact that such reduction gains are not subject to IRPJ/CSLL/PIS/COFINS. The Company is in compliance with terms and conditions of this tax installment payment program. Maturity schedule of taxes payable in installments in noncurrent liabilities: From 1 to 2 years 105 From 2 to 3 years 99 From 3 to 4 years 99 From 4 to 5 years 82 After 5 years 181 566 The net impact in the statement of operations of the continued operations related to the decision to settle tax liabilities through the PERT Program resulted in an expense of R$183. |
20. Income tax and social contr
20. Income tax and social contribution | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax And Social Contribution | |
Income tax and social contribution | 20.1. Income and social contribution tax expense reconciliation 2017 2016 2015 Income (loss) before income tax and social contribution 779 (47) 844 Credit (expense) of income tax and social contribution at the nominal rate of 25% for the Company and 34% for subsidiaries (267) (29) (259) Tax penalties (25) (26) (11) Share of profit of associates (9) 21 28 Interest on own capital 16 13 - Other permanent differences (nondeductible) (12) (3) 13 Effective income tax and social contribution (297) (24) (229) Income tax and social contribution for the year: Current (171) (126) (156) Deferred (126) 102 (73) Income tax and social contribution expense (297) (24) (229) Effective rate 38,13% (51.06)% 27.13% CBD does not pay social contribution based on a final favorable court decision in the past; therefore its nominal rate is 25%. 20.2. Breakdown of deferred income tax and social contribution 2017 2016 Assets Liabilities Net Assets Liabilities Net Tax losses and negative basis of social contribution 200 - 200 112 - 112 Provision for risks 289 - 289 347 - 347 Goodwill tax amortization - (585) (585) - (531) (531) Mark-to-market adjustment - (7) (7) - (8) (8) Technological innovation – future realization - (13) (13) - (16) (16) Depreciation of fixed assets as per tax rates - (112) (112) - (81) (81) Unrealized gains with tax credits (note 11) - (185) (185) - - - Other 145 (5) 140 30 - 30 Deferred income tax and social contribution assets (liabilities) 634 (907) (273) 489 (636) (147) Compensation (513) 513 - (319) 319 - Deferred income tax and social contribution assets (liabilities) , net 121 (394) (273) 170 (317) (147) Management has assessed the future realization of deferred tax assets, considering the Company’s ability to generate future taxable income. This assessment was based on information from the strategic planning report previously approved by the Company’s Board of Directors. The Company estimates to recover these deferred tax assets as follows: Up to one year 163 From 1 to 2 years 175 From 2 to 3 years 117 From 3 to 4 years 123 From 4 to 5 years 56 634 20.3. Changes in deferred income tax and social contribution 2017 2016 2015 At the beginning of the year (147) (778) (642) Expense for the year – Continued operations (126) 102 (73) Expense for the year – Discontinued operations 164 11 (63) Morzan arbitration (see note 1.1) - - 50 Cnova N.V. IPO cost - - (46) Corporate restructuring - (4) - Special program on tax settlements – PERT – Discontinued operations – use of tax loss (89) - - Exchange rate variation - (10) 29 Assets held for sale and discontinued operations (see note 32) (75) 522 - Other - 10 (33) At the end of the year (273) (147) (778) |
21. Provision for contingencies
21. Provision for contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Provision For Contingencies | |
Provision for contingencies | The provision for contingencies is estimated by the Company’s management, supported by its legal counsel. The provision was recognized in an amount considered sufficient to cover probable losses. PIS/COFINS Taxes and other Social security and labor Civil Regulatory Total Balance at December 31, 2015 103 414 597 248 34 1,396 Additions 91 325 680 291 35 1,422 Payments - (29) (251) (125) (10) (415) Reversals (4) (19) (153) (140) (26) (342) Monetary adjustment 14 38 79 38 6 175 Exchange rate changes - (2) (2) (8) - (12) Liabilities related to assets available to sell and discontinued operations (see Note 32) (56) (141) (648) (195) (7) (1,047) Balance at December 31, 2016 148 586 302 109 32 1,177 Additions 162 125 856 241 44 1,428 Payments - (37) (301) (94) (15) (447) Reversals (114) (102) (328) (178) (31) (753) Transfer to instalments taxes (42) (89) - - - (131) Monetary adjustment (26) 38 116 34 5 167 Liabilities related to assets available to sell and discontinued operations (see Note 32) (54) 42 (314) (7) (1) (334) Balance at December 31, 2017 74 563 331 105 34 1,107 21.1. Tax As per prevailing legislation, tax claims are subject to monetary indexation, which refers to an adjustment to the provision for tax contingencies according to the indexation rates used by each tax jurisdiction. In all cases, both the interest charges and fines, when applicable, were computed and fully provisioned with respect to unpaid amounts. The main provisioned tax claims are as follows: 21.1.1. PIS and COFINS Since the adoption of the noncumulative regime to calculate PIS and COFINS, the Company has challenged the right to deduct ICMS from the calculation basis for both contributions. On March 15, 2017, STF ruled that ICMS should be excluded from the calculation basis of PIS/Cofins, in accordance to the thesis pleaded by the Company. Based on the judgement of the thesis by the STF (Federal Supreme Court) and on the legal opinion of its external legal counsel, the Company understood that a disbursement of cash, related to unpaid amounts in previous periods, is not probable and reversed a provision of R$ 117. Since the decision of the STF on March 15, 2017, the procedural steps were within the ones anticipated by the Company’s legal advisors without any change in management's judgment regarding the reversal of the provision for lawsuits, however without there being a final decision expected on the subject, related to the judgment of the appeal filed by the prosecution. The Company and its external legal counsel estimate that the decision related to the application of the effects will not limit the right of the judicial claim proposed by the Company, nevertheless, the elements of the process still pending of decision do not allow the recognition of the credits since the Company started the claim in 2003. According to the preliminary evaluation, based on available information on December 31, 2017, the Company estimates the potential tax credits for the retail activity ranges from R$1,300 to R$1,850. The calculation for its subsidiary Sendas is not yet completed. In addition in Via Varejo’s tax credits as of December 31, 2017, classified as discontinued operations, were estimated to approximately R$1,384, being R$959 related to discontinued operations and R$425 attributed to continued operations through a shareholders’ agreement between Grupo Casas Bahia and the Company. Regarding the remainder accrued amount for other discussions related to PIS and COFINS includes challenging of tax offset and other small amounts, as of December 31, 2017 representing R$184, being R$74 of continued operations and R$110 of discontinued operations (R$204 as of December 31, 2016, being R$148 of continued operation and R$56 of discontinued operations). 21.1.2. Tax claims During the 2nd quarter of 2017 the Company applied for the Special Program on Tax Settlements – PERT. The tax assessments over purchase transactions, industrialization and exports sales of soybeans (PIS/COFINS and IRPJ), and non-validation of tax offsets which amounted to R$146, being R$89 of continued operation and R$57 of discontinued operation. Additionally, during the 3rd quarter of 2017, Company adhered to the Tax Debt Installment Payment Plan (“PEP” - Parcelamento Estadual do Estado de São Paulo), related to tax assessments of acquisition of suppliers considered not qualified by the State Finance Department registry, error in application of tax rate and accessory obligations by State tax authorities amounting to R$28, being R$6 of continued operation and R$22 of discontinued operation. After entering into the programs above, the Company analyzed the other tax claims, together with its external legal counsel, and determined them to be probable losses and recorded a corresponding provision. These refer to: (i) challenge on the non-application of the Accident Prevention Factor - FAP for 2011; (ii) challenge on the State Finance Department on the ICMS tax rate calculated on electric energy bills; (iii) other minor issues. The amount recorded for these matters as at December 31, 2017 was R$184, being R$183 of continued operation and R$1 of discontinued operations (R$408 as at December 31, 2016, being R$356 of continued operation and R$52 of discontinued operations). ICMS The Federal Supreme Court ("STF") on October 16, 2014 decided that ICMS taxpayers that trade products included in the “basked of food staples” have no right to fully utilize the ICMS credits. The Company, with the assistance of its legal counsel, decided to record a provision for this matter amounting to R$142 as at December 31, 2017 (R$153 as at December 31, 2016) since this claim was considered a “probable” loss. The amounts accrued represent Management’s best estimate of the probable cash disbursement to settle this claim. Additionally, there are cases assessed by São Paulo State tax authorities related to the refund of ICMS over tax substitution without proper compliance with accessory tax obligations introduced by CAT Administrative Rule 17. Considering recent court decisions the Company accrued R$167 (R$138 in December 2016) representing the estimation of probable loss evaluated by management based on documentation evidence aspect of the claims. 21.1.3. Supplementary Law 110/2001 The Company claims in court the eligibility to not pay the contributions provided for by Supplementary Law 110/01, referring to the FGTS (Government Severance Indemnity Fund for Employees) costs. The accrued amount as at December 31, 2017 is R$72 being R$71 of continued operation and R$1 of discontinued operations (R$77 of continued operation as at December 31, 2016). 21.1.4. Others contingent tax liabilities - Via Varejo Provisions for contingent tax liabilities were recorded as a result of the business combination with Via Varejo, as required by IFRS 3. As at December 31, 2017, the recorded amount is R$90 (R$89 as at December 31, 2016). These accrued claims refer to administrative proceedings related to the offset of tax debts against credits from the contribution levied on coffee exports. 21.1.5. Others contingent tax liabilities - Bartira On the third quarter of 2016, the Company reversed most of its contingencies arising from business combination of Bartira, booked in 2013. The amount reversed is composed for R$6 of tax contingence and R$11 of labor contingence, totalizing R$17. The remaining balance at December 31, 2017 is R$1 (R$1 in December 31, 2016); 21.2. Labor The Company is part to various labor lawsuits mainly due to termination of employees in the ordinary course of business. At December 31, 2017, the Company recorded a provision of R$1,284, being R$331 for continued operations and R$953 for discontinued operations (R$950 as at December 31, 2016, being R$302 for continued operations and R$648 for discontinued operations). Management, with the assistance of its legal counsel, assessed these claims and recorded a provision for losses when reasonably estimable, based on past experiences in relation to the amounts claimed. 21.3. Civil and others The Company is part to civil lawsuits at several court levels (indemnities and collections, among others) and at different courts. The Company’s management records provisions in amounts considered sufficient to cover unfavorable court decisions, when its legal counsel considers the loss as probable. Among these lawsuits, we point out the following: · The Company is part to various lawsuits requesting the renewal of rental agreements and the review of the current rent paid. The Company recognizes a provision for the difference between the amount originally paid by the stores and the amounts claimed by the owner of the property in the lawsuit, when internal and external legal counsel consider that it is probable that the rent amount will be increased. As at December 31, 2017, the amount accrued for these lawsuits is R$125, being R$61 for continued operations and R$64 for discontinued operations (R$121 as at December 31, 2016, being R$49 for continued operations and R$72 for discontinued operations), for which there are no restricted deposits. · The Company is party to legal claims related to penalties applied by regulatory agencies, from the federal, state and municipal administrations, among which includes Consumer Protection Agencies (Procon), National Institute of Metrology, Standardization and Industrial Quality (INMETRO) and Municipalities and some lawsuits involving contract terminations with suppliers. Company supported by its legal counsel, assessed these claims and recorded a provision according to probable cash expending and estimative of loss .On December 31, 2017 the amount of this provision is R$43, being R$34 for continued operations and R$9 for discontinued operations (R$39 on December 31, 2016, being R$32 for continued operations and R$7 for discontinued operations). · As at December 31, 2017, the amount accrued related to other civil matters is R$146, being R$ 44 for continued operation R$102 for discontinued operations (R$143 as at December 31, 2016, being R$ 60 for continued operation R$83 for discontinued operations). Total civil lawsuits and others as at December 31, 2017 amount to R$314, being R$139 for continued operations and R$175 for discontinued operations (R$343 as at December 31, 2016, being R$ 141 for continued operations and R$202 for discontinued operations). 21.4. Other non-accrued contingent liabilities The Company has other litigations which have been analyzed by the legal counsel and assessed as possible loss and, therefore, have not been recorded. The possible litigations updated balance without indemnization from shareholders is of R$11,778, being R$10,159 for continued operations and R$1,619 for discontinued operations at December 31, 2017 (R$12,221 in December 31, 2016, being R$10,736 for continued operations and R$1,485 for discontinued operations), and are mainly related to: · INSS (Social Security Contribution) – GPA was assessed for non-levy of payroll charges on benefits granted to its employees, among other matters, for which possible loss amounts to R$474, being R$443 for continued operations and R$31 for discontinued operations as December 31, 2017 (R$421 as at December 31, 2016, being R$389 for continued operations and R$32 for discontinued operations). The lawsuits are under administrative and court discussions. · IRPJ, withholding income tax - IRRF, CSLL, tax on financial transactions - IOF, withholding income tax on net income – GPA has several assessment notices regarding offsetting proceedings, rules on the deductibility of provisions, payment divergences and overpayments; fine for failure to comply with accessory obligations, among other less significant taxes. Among those claims, there are one tax assessment related to the tax deduction of goodwill in the years of 2012 and 2013, originated by the acquisition of Ponto Frio (goodwill Mandala) ocurred in year of 2009. The restated amount of the assessment notice correspond to R$85 of income tax and social contribution (R$79 at December 31, 2016). The lawsuits await administrative and court ruling. The amount involved is R$964, being R$826 for continued operations and R$138 for discontinued operations as December 31, 2017 (R$1,192 as at December 31, 2016, being R$1,052 for continued operations and R$140 for discontinued operations). · · COFINS, PIS, provisional contribution on financial transactions – CPMF and IPI – the Company has been challenged about offseting COFINS and PIS against IPI credits – inputs subject to zero rate or exempt – acquired from third parties with a final and unappealed decision, other requests for offset, collection of taxes on soybean export operations, tax payment divergences and overpayments; fine for failure to comply with accessory obligations, disallowance of COFINS and PIS credits on one-phase products (“produtos monofásicos”), among others less significant taxes. These lawsuits await decision at the administrative and court levels. The amount involved in these assessments is R$2,124, being R$1,705 for continued operations and R$419 for discontinued operations as December 31, 2017 (R$2,532 as at December 31, 2016, being R$2,140 for continued operations and R$392 for discontinued operations). The Company recognized the effects of PERT Program in October 2017. These are related to the claims of CPMF, PIS/COFINS and other subjects not individually relevant, amounting to R$344. · ICMS – GPA received tax assessment notices by the State tax authorities regarding: (i) utilization of electric energy credits; (ii) purchases from suppliers considered not qualified in the State Finance Department registry; (iii) levied on its own operation of merchandise purchase (own ICMS)) – article 271 of ICMS by-law; (iv) resulting from sale of extended warranty, (v) resulting from financed sales; and (vi) among other matters. The total amount of these assessments is R$7,246, being R$6,493 for continued operations and R$753 for discontinued operations as of December 31, 2017 (R$6,832 as at December 31, 2016, being R$6,269 for continued operations and R$563 for discontinued operations), which await a final decision at the administrative and court levels. The Company adhered to the PEP - State Instalment Program of the State of São Paulo in August 2017, related to tax assessments on tax credits taken on purchases from unqualified suppliers within Tax Authority of São Paulo, among other minor amounts, amounting to R$ 81, being R$ 68 of continued operation and R$ 13 of discontinued operation. · Municipal service tax - ISS, Municipal Real Estate Tax (“IPTU”), Fees, and others – these refer to assessments on withholdings of third parties, IPTU payment divergences, fines for failure to comply with accessory obligations, ISS – reimbursement of advertising expenses and sundry taxes, in the amount of R$281, being R$150 for continued operations and R$131 for discontinued operations as December 31, 2017 (R$292 as at December 31, 2016, being R$165 for continued operations and R$127 for discontinued operations), which await decision at the administrative and court levels. · Other litigations – these refer to administrative proceedings and lawsuits in which the Company claims the renewal of rental agreements and setting of rents according to market values and actions in the civil court, special civil court, Consumer Protection Agency - PROCON (in many States), Institute of Weights and Measure - IPEM, National Institute of Metrology, Standardization and Industrial Quality - INMETRO and National Health Surveillance Agency - ANVISA, among others, amounting to R$689, being R$542 for continued operations and R$147 for discontinued operations as December 31, 2017 (R$953 as at December 31, 2016, being R$722 for continued operations and R$231 for discontinued operations). The Company has litigations related to challenges by tax authorities on income tax payment, for which, based on management and legal assessment, the Company has the right of indemnization from its former and current shareholders, related to years from 2007 to 2013, under allegation that had improper deduction of goodwill amortization expenses. These assessments amount R$1,223 on December 31, 2017 (R$1,141 on December 31, 2016). The Company engages external attorneys to represent it in the tax assessments, whose fees are contingent upon a percentage to be applied to the amount of success in the final outcome of these lawsuits. This percentage may vary according to qualitative and quantitative factors of each claim, and as at December 31, 2017 the estimated amount, in case of success in all lawsuits, is approximately R$201, being R$182 for continued operations and R$19 for discontinued operations (R$168 as at December 31, 2016, being R$155 for continued operations and R$13 for discontinued operations). 21.5. Judicial deposits for legal proceedings The Company is challenging the payment of certain taxes, contributions and labor-related obligations and has made judicial deposits in the corresponding amounts, as well as escrow deposits related to the provision for legal proceedings. The Company has recorded restricted deposits as follows. 2017 2016 Tax 204 181 Labor 474 414 Civil and other 42 26 Regulatory 42 40 Total 762 661 21.6. Guarantees Lawsuits Property and equipment Letter of guarantee Total 2017 2016 2017 2016 2017 2016 Tax 858 851 7,324 6,867 8,182 7,718 Labor 3 3 91 26 94 29 Civil and other - - 125 53 125 53 Regulatory 6 9 154 111 160 120 Total 867 863 7,694 7,057 8,561 7,920 The cost of letter of guarantees is approximately 0.81% per year of the amount of the lawsuits and is recorded as finance expense. 21.7. Cnova N.V. litigation Our subsidiary Cnova NV, a Dutch public limited company, certain of its current and former officers and directors, and the underwriters of Cnova’s initial public offering, or IPO, were named as defendants in a securities class action lawsuit in the United States Federal District Court for the Southern District of New York, related to internal investigation, concluded on July 22, 2016, conducted by Cnova N.V., Cnova Brasil e its advisors. In October 11, 2017 the Court for the Southern District of New York approved preliminarily an agreement with the plaintiffs’ shareholders. Subject to the settlement agreement’s terms, a fund of $28.5 million will become available by Cnova N.V. for distribution amongst the former Cnova shareholders as well as to the plaintiffs’ lawyers. A portion of this amount will be used to cover the settlement fund’s administrative costs. In addition, subject to the terms of the settlement, all defendants are acquitted of all liability emanating from the allegations made in the class action suit. Following the March 15, 2018 hearing, the court entered on March 19, 2018 the final order giving the definitive approval to the settlement, closing the judicial proceedings with the United States District Court for the Southern District of New York and releasing defendants of the claims alleged against them accordingly. In the coming period, notices will be sent and distributed via Newswire by the plaintiffs’ lawyer with more information concerning the settlement. |
22. Leasing transactions
22. Leasing transactions | 12 Months Ended |
Dec. 31, 2017 | |
Leasing Transactions | |
Leasing transactions | 22.1. Operating lease (i) Minimum rental payment on termination of lease agreements The Company analyzed and concluded that the rental agreements are cancelable over their term. In case of termination, minimum payments will be due as a termination fee, which can vary from 1 to 12 months of rental through the end of the agreements, as demonstrated in the table below: 2017 2016 Minimum payments on the termination date 392 339 392 339 (ii) Contingent payments Management considers the payment of additional rents as contingent payments, which vary between 0.1% and 4.5% of sales. Expenses (Income) for the year 2017 2016 Contingent payments 484 504 Non contingent payments 453 368 Sublease rentals (*) (174) (145) (*) Refers to lease agreements receivable from commercial shopping malls. 22.2. Finance lease Finance lease agreements amounted to R$195 as at December 31, 2017 (R$215 as at December 31, 2016), as shown in the table below: 2017 2016 Financial lease liability –minimum rental payments: Up to 1 year 51 41 1 - 5 years 117 144 Over 5 years 27 30 Present value of finance lease agreements 195 215 Future financing charges 185 207 Gross amount of finance lease agreements 380 422 |
23. Deferred revenue
23. Deferred revenue | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Revenue | |
Deferred revenue | The Company received amounts from business partners on exclusivity in the intermediation of additional or extended warranty services, and the subsidiary Sendas received amounts for the rental of back lights for exhibition of products from its suppliers. 2017 2016 Additional or extended warranties 27 35 Barter agreement 14 12 Services rendering agreement - Allpark 13 15 Back lights 104 85 Future revenue agreement (note 23.1) - 100 Others 10 1 168 248 Current 146 224 Noncurrent 22 24 23.1. Future revenue agreement The Company signed an agreement to sell a distribution center receiving R$100 as an advance payment in 2016. In 2017 the sale of this asset was R$176 and a gain of R$40 was recognized as other operating income. |
24. Shareholders_ equity
24. Shareholders’ equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders Equity | |
Shareholders' equity | 24.1. Capital stock The subscribed and paid-up capital as of December 31, 2017 is represented by 266,579 (266,076 as of December 31, 2016) in thousands of registered shares with no par value, of which 99,680 in thousands of common shares (99,680 as of December 31, 2016) and 166,899 in thousands of preferred shares (166,396 as of December 31, 2016). The Company is authorized to increase its capital stock up to the limit of 400,000 (in thousands of shares), regardless of any amendment to the Company’s Bylaws, upon resolution of the Board of Directors, which will establish the issue conditions. At the Board of Directors’ Meetings held on February 23, 2017, March 23, 2017, April 27, 2017, July 25, 2017, October 26, 2017 and December 15, 2017 were approved capital increases amounting to R$11 (R$5 on December 31, 2016 and R$ 14 on December 31, 2015) through the issuance of 487 thousands preferred shares (374 thousands of preferred shares in 2016 and 418 in 2015). On December 31, 2017, the capital stock is R$ 6,822 (R$ 6,811 on December 31, 2016). 24.2. Share rights The preferred shares do not have voting rights, assuring to its owners the following rights and advantages: (i) priority in the capital reimbursement in case of Company´s liquidation, (ii) priority in the receipt of annual minimum dividend in the amount of R$0.08 per share, non-cumulative; (iii) priority in the receipt of dividend 10% higher than the dividend attributed to the common shares, including for the purposes of the calculation the amount paid in item (ii) above. When any related party purchases shares of the Company’s equity share capital (treasury shares), the remuneration paid, including any directly attributable incremental costs, is deducted from equity, and are recorded as treasury shares until the shares are cancelled or reissued. When these shares are subsequently reissued, any remuneration received, net of any directly attributable incremental transaction costs, is included in equity. No gain or loss is recognized on the purchase, sale, issue or cancellation of the Company’s own equity instruments. 24.3. Granted options The “options granted” caption recognizes the effects of the Company’s executives’ share-based payments under IFRS 2 – Share-based payment. 24.4. Earnings reserve (i) Legal reserve (ii) Expansion reserve 24.5. Stock option plans for preferred shares On May 9, 2014, our shareholders approved at the Extraordinary General Meeting (i) the discontinuation of the Stock Option Plan "Ações com Açúcar" ("Former Stock Option Plan"), approved in the Extraordinary General Meeting held on December 20 2006, for new grants of options, subject to the options already granted to remain in force under the same terms and conditions; (ii) the creation of the Stock Option Plan and its respective standard grant agreement ("Option Plan"); and (iii) the creation of the Share Based Payment Plan and its standard grant agreement ("Compensation Plan" and, together with the Former Option Plan and the Stock Option Plan, the "Plans") The following describes the Former Stock Option Plan that was in effect in the fiscal year ended December 31, 2013 with exercible options at December 31, 2016 and the ongoing Plans for the current fiscal year. Former Option Plan Our Former Stock Option Plan is managed by a committee elected by our Board of Directors, called Administration Committee of Stock Option ("Stock Option Committee"). This committee determined the employees to be included in the stock options plans, based on their roles, responsibilities and performance, defining the applicable conditions. Our Stock Option Committee developed annual series of grant of options. Each grant series received a serial number beginning with the letter A. For the fiscal year ended December 31, 2016, it was in force options granted of Series A7 Former Option Plan. Options were classified as follows: “Silver” and “Gold”, which means that they could have different exercise prices. The exercise price for the Silver-type option will correspond to the average of closing price of the Company preferred shares occurred over the last 20 trading sessions of B3, prior to the date on which the Committee resolves on the granting of option. After calculating the exercise price a 20% discount was applied on it. The price for the Gold-type option will correspond to R$0.01. In both cases, the prices are not adjusted. The Stock Option Committee approved new criteria to calculate the reducer or accelerator index of the number of options granted classified as “Gold” in each series of the Former Stock Option Plan, according to the analysis of compliance with the concept of return on invested capital (ROIC). In accordance with the rules of Former Stock Option Plan, the committee decided that the reducer or accelerator index of number of options classified as “GOLD” of series A6 and A7 would be calculated according Return on Capital Employed (ROCE) of CBD. There is no limit for reduction or acceleration in this new criterion approved. Upon option vesting, the average ROIC/ROCE of the last three fiscal years will be calculated, compared to ROIC/ROCE calculated upon granting of each serie. As a general rule of the Former Stock Option Plan, which may be altered by the Stock Option Committee in each serie, the option vesting right will be granted between 36 th th th The options granted under the Former Stock Option Plan may be exercised in whole or in part, it is worth noting that "Gold" options are additional to "Silver" and thus the "Gold" options may only be exercised jointly with "Silver" options. The price on the exercise of options granted under the Stock Option Plan shall be fully paid in local currency by beneficiary, and the exercise price must be paid in one installment, 30 days after the subscription date of their shares. Compensation Plan The Compensation Plan is managed by the Board of Directors, assigning to the Human Resources and Compensation Committee the responsibility to grant the options and advisory in managing the Compensation Plan (the "Committee"). Committee members will meet for the option grant Compensation Plan series and whenever necessary, decide on questions arising on the Compensation Plan. Each serie of the granting of stock options will receive the letter "B" followed by a number. In the fiscal year ended December 31, 2017, was in force options granted B2, B3 and B4 Series of the Compensation Plan. The options granted to a participant will not be exercisable for a period of 36 (thirty six) months from the date of grant ("Grace Period"), except with formal authorization by the Company, and may only be exercised in the period beginning on the first day of the 37 (thirty-seventh) month from the date of grant, and ends on the last day of the 42 (forty-second) month from the date of grant ("Exercise Period"). The participants may exercise their total purchase options or in part, in one or more times, if for each year, the option exercise term is submitted during the Exercise Period. The exercise price of each stock option granted under the Compensation Plan should correspond to R$0.01 (one cent) ("Exercise Price"). The exercise price of the options shall be paid in full in local currency by check or wire transfer available to the bank account held by the Company, in the tenth (10th) day preceding the date of acquisition of the shares. The participant shall be disqualified for a period of 180 (one hundred and eighty) days from the date of acquisition of the shares, directly or indirectly, sell, assign, exchange, dispose of, transfer, grant to the capital of another company, grant option, or even sign any act or agreement which results or may result in the sale, directly or indirectly, costly or free, all or any of the shares acquired by the exercise of the purchase option under the option Plan. The Company will withhold any applicable tax under Brazilian tax law, less the number of shares delivered to the participant amount equivalent to taxes withheld. Option Plan The Stock Option Plan will be managed by the Board of Directors, assigning to the Human Resources and Compensation Committee the responsibility to grant the options and advisory in managing of the Stock Option Plan (the "Committee"). Committee members will meet for the option grant of the Option Plan series and, where necessary, to decide on the questions regarding the Stock Option Plan. Each serie of the granting of stock options will receive the letter "C" followed by a number. In the fiscal year ended December 31, 2017, was in force options granted C2, C3 and C4 Series Option Plan. For each serie of stock options granted under the Option Plan, the exercise price of each stock option shall be equivalent to 80% of the closing price of the average of the Company's preferred shares traded in the twenty (20) days in B3 - Securities, Commodities and Futures, prior to the date of the Committee meeting that decides upon the granting of the options ("Exercise Price"). Options granted to a Participant shall be exercisable for a period of 36 (thirty six) months from the Grant Date ("Grace Period"), and may only be exercised in the period beginning on the first day of the 37 (thirty-seventh) months as from the Grant Date, and ends on the last day of the 42 (forty-second) months as of the Grant Date ("Exercise Period"), provided the exceptions included in the Compensation Plan. The participant may exercise their total purchase options or in part, in one or more times, if for each year the Option Exercise Agreement is submitted during the Exercise Period. The exercise price of the options shall be paid in full in local currency by check or wire transfer available to the bank account held by the Company, provided that the payment deadline will always be the tenth (10th) day preceding the date to acquire the shares. Information on the former stock option plan, stock option plan and compensation plan is summarized below: Exercise price Lot of shares Series granted Grant date 1st date of exercise Expiration date At the grant date End of the year Number of shares granted (in thousands) Exercised Not exercised by dismissal Expired Total in effect Balance at December 31, 2017 Series B1 5/30/2014 6/1/2017 11/30/2017 0.01 0.01 239 (166) (73) - - Series C1 5/30/2014 6/1/2017 11/30/2017 83.22 83.22 239 (12) (108) (119) - Series B2 5/29/2015 6/1/2018 11/30/2018 0.01 0.01 337 (119) (37) - 181 Series C2 5/29/2015 6/1/2018 11/30/2018 77.27 77.27 337 - (71) - 266 Series B3 5/30/2016 5/30/2019 11/30/2019 0.01 0.01 823 (246) (41) - 536 Series C3 5/30/2016 5/30/2019 11/30/2019 37.21 37.21 823 (130) (42) - 651 Series B4 5/30/2017 5/31/2020 11/30/2020 0.01 0.01 537 (146) (11) - 380 Series C4 5/30/2017 5/31/2020 11/30/2020 56.78 56.78 537 (1) (11) - 525 3.872 (820) (394) (119) 2.539 Exercise price Lot of shares Series granted Grant date 1st date of exercise Expiration date At the grant date End of the year Number of shares granted (in thousands) Exercised Not exercised by dismissal Expired Total in effect Balance at December 31, 2016 Series A6 - Gold 3/15/2012 3/31/2015 3/31/2016 0.01 0.01 526 (490) (36) - - Series A6 - Silver 3/15/2012 3/31/2015 3/31/2016 64.13 64.13 526 (490) (36) - - Series A7 - Gold 3/15/2013 3/31/2016 3/31/2017 0.01 0.01 358 (231) (43) - 84 Series A7 - Silver 3/15/2013 3/31/2016 3/31/2017 80.00 80.00 358 (230) (43) - 85 Series B1 5/30/2014 6/1/2017 11/30/2017 0.01 0.01 239 (27) (58) - 154 Series C1 5/30/2014 6/1/2017 11/30/2017 83.22 83.22 239 (11) (84) - 144 Series B2 5/29/2015 6/1/2018 11/30/2018 0.01 0.01 337 (75) (32) - 230 Series C2 5/29/2015 6/1/2018 11/30/2018 77.27 77.27 337 - (55) - 282 Series B3 5/30/2016 5/30/2019 11/30/2019 0.01 0.01 823 (165) (28) - 630 Series C3 5/30/2016 5/30/2019 11/30/2019 37.21 37.21 823 (10) (28) - 785 4,566 (1,729) (443) - 2,394 Consolidated information of share-based payment plans – GPA Company implemented two new share-based plans in 2017, B4 and C4 series. According to the terms of the plans, each option offers to the beneficiary the right to acquire a preferred share. On both plans, there is a vesting period of 36 months from the date the Board of Directors approved the issuance of the series. The plans will be exercisable in until 6 months after the end of the vesting period. The condition to exercise the options is the beneficiary to stay as an employee. The series are different, exclusive, in the exercise price of the options and in the existence or not of a restriction of selling after vesting period. According to the plans, the options granted in each of the series may represent maximum 0.7% of the total shares issued by the Company. For these new series, 1,073 thousands options of shares were granted. At December 31, 2017 there were 233 thousands treasury-preferred shares which may be used as guarantee for the options granted in the plan. The preferred share price at B3 was R$78.93 per share. The table below shows the maximum percentage of dilution to which current shareholders will eventually be subject to in the event that all options granted are exercised: 12.31.2017 12.31.2016 Number of shares 266,579 266,076 Balance of effective stock options granted 2,539 2,394 Maximum percentage of dilution 0.95% 0.90% The fair value of each option granted is estimated on the grant date, by using the options pricing model “Black&Scholes” taking into account the following assumptions for the series B1 and C1: (a) expectation of dividends of 0.96%, (b) expectation of volatility of nearly 22.09% and (c) the weighted average interest rate of 11.70%. The fair value of each option granted is estimated in the grant date using the Black & Scholes model, considering the following assumptions in series B2 and C2: (a) Dividends expectations of 1.37%; (b) volatility expectation of 24.34% and (c) the weighted average interest rate of 12.72%. The fair value of each option granted is estimated in the grant date using the Black & Scholes model, considering the following assumptions in series B3 and C3: (a) Dividends expectations of 2.50%; (b) volatility expectation of 30.20% and (c) the weighted average interest rate of 13.25%. The fair value of each option granted is estimated on the grant date, by using the options pricing model “Black&Scholes” taking into account the following assumptions for the series B4 and C4: (a) expectation of dividends of 0.57%, (b) expectation of volatility nearly 35.19% and (c) the weighted average interest rate of 9.28% and 10.07%; (d) vesting period of 18 to 36 months. The expectation of remaining average life of the series outstanding at December 31, 2017 is 1.53 year (1.84 year at December 31, 2016). The weighted average fair value of options granted at December 31, 2017 was R$39.07 (R$43.06 at December 31, 2016). Shares Weighted average of exercise price Weighted average of remaining contractual term At December 31, 2016 Granted during the year 1,645 18.61 Cancelled during the year (144) 40.40 Exercised during the year (374) 13.39 Outstanding at the end of the year 2,394 29.21 1.84 Total to be exercised at December 31, 2016 2,394 29.21 1.84 At December 31, 2017 Granted during the period 1,073 28.40 Cancelled during the period (110) 40.56 Exercised during the period (699) 22.14 Expired during the period (119) 83.22 Outstanding at the end of the period 2,539 29.48 1.53 Total to be exercised at December 31, 2017 2,539 29.48 1.53 The amounts recorded in the statement of operations, for the year ended December 31, 2017 were R$16 (R$21 as at December 31, 2016). 24.6. Foreign exchange variation of investment abroad Cumulative effect of exchange gains and losses on the translation of assets, liabilities and profit (loss) of Euros to Brazilian reais, corresponding to the investment in subsidiary Cnova N.V.. On December 31, 2017, the effect in the controlling shareholders’ was R$(17) (on December 31, 2016, R$88 in controlling shareholders’ and R$146 for non-controlling interests and on December 31, 2015, R$(86) in controlling shareholders’ and R$(133) for non-controlling interests). 24.7. Transactions with non-controlling shareholders The amounts recorded in the consolidated statement of changes in shareholders’ equity, as transactions with non-controlling interest referred to: 2017 Controlling shareholders’ Non-controlling interest Consolidated Other transactions with non-controlling interest (2) - (2) 2016 (*) Change in Cnova’s Brasil interest (127) 127 - Change in Cdiscount’s interest 1 7 8 Payment in shares exchange between Cnova N.V. by Cnova Brasil (20) (27) (47) Share of profit of associates on shares change effect at Cdiscount 14 - 14 Sale of subsidiary Cdiscount (11) 45 34 Other transactions with non-controlling interest 5 13 18 (138) 165 27 2015 Company reorganization and NPC debt (36) - (36) Other transactions with non-controlling interest (7) (1) (8) (43) (1) (44) (*) See note 32.1. 24.8. Acquisition of participation in Cdiscount Colômbia On July, 2016, the subsidiary Cnova N.V and its minority shareholders Almacenes Éxito, holding 29% of Cdiscount Colômbia, entered into a new agreement in which Éxito could buy the remaining interest. As a consequence the amount of reciprocal call/put options were cancelled, resulting in an impact on Company’s equity of R$28 (R$ 9 in controlling shareholders’ and R$ 19 in non-controlling shareholders). 24.9. Effect in equity related to arbitral decision payment In 2015, as mentioned in note 1.1, as per ICC decision the Company indemnified Morzan the amount of R$200 (with R$150 effect in shareholders’ equity and R$50 of income tax effect), as a consequence of not complying with the terms of Share Purchase Agreement (“SPA”), signed in the acquisition of Globex, which provided the settlement of part of acquisition price in warrants (shares), with the guarantee over market price variation, which is determined in specific lock-up period. The amount was recorded as a debit in the shareholders’ equity, since it relates to a settlement (which was made in cash) of an indirect repurchase of an equity instrument (warranty or guarantee of market price variation of the shares) granted to the previous controlling shareholders´ of Globex (Morzan) in connection with the SPA. In accordance with IAS 32, a reclassification of an equity instrument to liability should be accounted for based on fair value and any difference to the amounts previously booked, should be recorded in shareholders’ equity. 24.10. Dividends On December 01, 2017 the Board of Directors approved the prepayment of interest on own capital of R$81, being R$0.315075726411 per preferred share and R$0.286432511282 per common share, paid on December 15, 2017 and to be attributable to 2017 dividends. Company’s management proposed dividends, calculated according to the table below, considering the interest on own capital paid to its shareholders by the net amount of R$69. Company’s bylaw establishes a minimum dividend of 25% of profit for the year, with the calculation of the result for the year. Proposed dividends 2017 2016 Net income (loss) for the year 619 (482) Legal reserve (31) - Calculation basis of dividends 588 - Mandatory minimum dividends – 25% 147 - Payment of interim dividends as interest on own capital, net of withholding taxes (69) - Dividends payable 78 - |
25. Net operating revenue
25. Net operating revenue | 12 Months Ended |
Dec. 31, 2017 | |
Net Operating Revenue | |
Net operating revenue | 2017 2016 2015 Gross sales Goods 48,597 45,267 40,519 Services rendered 365 294 355 Sales returns and cancellations (523) (592) (632) 48,439 44,969 40,242 Taxes on sales (3,805) (3,515) (3,044) Net operating revenues 44,634 41,454 37,198 |
26. Expenses by nature
26. Expenses by nature | 12 Months Ended |
Dec. 31, 2017 | |
Expenses By Nature | |
Expenses by nature | 2017 2016 2015 Cost of inventories (32,425) (30,473) (26,817) Personnel expenses (4,691) (4,503) (4,011) Outsourced services (648) (587) (523) Functional expenses (2,376) (2,304) (2,079) Selling expenses (1,003) (953) (951) Other expenses (564) (564) (430) (41,707) (39,384) (34,811) Cost of sales (33,931) (31,933) (28,123) Selling expenses (6,804) (6,567) (5,922) General and administrative expenses (972) (884) (766) (41,707) (39,384) (34,811) |
27. Other operating expenses, n
27. Other operating expenses, net | 12 Months Ended |
Dec. 31, 2017 | |
Other Operating Expenses Net | |
Other operating expenses, net | 2017 2016 2015 Tax installments and other tax risks (a) (217) (357) (22) Restructuring expenses (b) (107) (99) (116) Losses on disposal of fixed assets (c) (247) (99) (44) Other (8) (12) (24) (579) (567) (206) a) In 2017 it includes ICMS, income tax, CPMF, as well as, the effects of tax installments programs the Company applied during the year. In 2016, R$317 relates to income tax litigations, ICMS, PIS/COFINS and fine for legal acessory obligations reclassified from possible to probable loss, in addition to R$40 related to installment effects. b) The Company implemented a series of cost cutting initiatives, comprising all operating and administrative areas. c) Includes mainly write-offs on property and equipment items in the normal course of the operation and disposals of property and equipment items arising from Osasco Distribution Center fire incident occurred on December 27, 2017. |
28. Financial results, net
28. Financial results, net | 12 Months Ended |
Dec. 31, 2017 | |
Financial Results Net | |
Financial results, net | 2017 2016 2015 Finance expenses: Cost of debt (498) (705) (698) Cost of the discounting receivables (144) (163) (120) Monetary restatement loss (131) (174) (213) Other finance expenses (138) (92) (91) Total financial expenses (911) (1,134) (1,122) Financial income: Income from short term instruments 38 84 171 Monetary restatement gain 137 137 182 Other financial income 6 10 1 Total financial income 181 231 354 Total (730) (903) (768) The gains or losses on derivative financial instruments are recorded as cost of debt and disclosed in Note 18. |
29. Earnings per share
29. Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
Earnings per share | The table below presents the determination of net income available to holders of common and preferred shares and the weighted average number of common and preferred shares outstanding used to calculate basic and diluted earnings per share in each reporting period: 2017 2016 2015 Preferred Common Total Preferred Common Total Preferred Common Total Basic numerator Net income (loss) allocated to common and preferred shareholders – continued operations 312 170 482 (44) (27) (71) 397 218 615 Net income (loss) allocated to common and preferred shareholders - discontinued operations 89 48 137 (257) (154) (411) (226) (124) (350) Net income (loss) allocated to common and preferred shareholders 401 218 619 (301) (181) (482) 171 94 265 Basic denominator (millions of shares) Weighted average of shares 166 100 266 166 100 266 166 100 266 Basic earnings per millions of shares (R$) – continued operations 1.87356 1.70324 (0.26891) (0.26891) 2.39760 2.17964 Basic earnings per millions of shares (R$) - discontinued operations 0.53335 0.48487 (1.54778) (1.54778) (1.36515) (1.24104) Basic earnings per millions of shares (R$) - total 2.40692 2.18810 (1.81669) (1.81669) 1.03245 0.93859 Diluted numerator Net income (loss) allocated to common and preferred shareholders – continued operations 312 170 482 (44) (27) (71) 397 218 615 Net income (loss) allocated to common and preferred shareholders - discontinued operations 89 48 137 (257) (154) (411) (226) (124) (350) Net income (loss) allocated to common and preferred shareholders 401 218 619 (301) (181) (482) 171 94 265 Diluted denominator Weighted average of shares (in millions) 166 100 266 166 100 266 166 100 266 Stock call option 1 - 1 - - - - - - Diluted weighted average of shares (millions) 167 100 267 166 100 266 166 100 266 Diluted earnings per millions of shares (R$) – continued operations 1.86188 1.69955 (0.26891) (0.26891) 2.39222 2.17964 Diluted earnings per millions of shares (R$) – discontinued operations 0.52887 0.48118 (1.54778) (1.54778) (1.36515) (1.24104) Diluted earnings per millions of shares (R$) – total 2.39074 2.18073 (1.81669) (1.81669) 1.03014 0.93859 For the year ended at December 31, 2016, potential shares issued under the stock option plan were not included in the diluted earning per share as their effect would have been antidilutive. |
30. Segment information
30. Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information | |
Segment information | Management considers the following business segments: · Food retail – includes the banners “Pão de Açúcar”, “Minuto Pão de Açúcar”, “Extra Hiper”, “Extra Supermercado”, “Minimercado Extra”, “Posto Extra”, “Drogaria Extra” and “GPA Malls & Properties”. · Cash & Carry – includes the brand “ASSAÍ”. Management monitors the operating results of its business units separately making decisions about resource allocation and performance assessment. The segment performance is evaluated based on operating income and is measured consistently with operating income in the financial statements. The Company is engaged in operations of retail stores located in 22 states and the Federal District of Brazil. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker who has been identified as the Chief Executive Officer. The chief operating decision-maker allocates resources and assesses performance by reviewing results and other information related to segments. The Company deems irrelevant the disclosure of information on sales per product category, given that similar products are sold based on each business’ strategies and each segment has its own management controls. The Company measures the results of segments using the accounting practices under IFRS, among other measures, each segment’s operating profit, which includes certain corporate overhead allocations. At times, the Company reviews the measurement of each segment’s operating profit, including any corporate overhead allocations, as determined by the information regularly reviewed by the chief operating decision-maker. When revisions are made, the operating results of each segment affected by the revisions are corrected for all years presented to maintain comparability. Home appliances and e-commerce segments are presented as discontinued operations for the years 2017, 2016 and 2015 (as per note 32) and kept in this note for purposes of reconciliation as consolidated accounting information. Information on the Company’s segments is included in the table below: Food retail (*) Cash & Carry Assets held for sale and discontinued operations (**) Subtotal Eliminations/ Others (***) Total Description 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net operating revenue 26,194 26,967 26,745 18,440 14,487 10,453 - - 44,634 41,454 37,198 - - 44,634 41,454 37,198 Gross profit 7,762 7,351 7,538 2,941 2,170 1,537 - - 10,703 9,521 9,075 - - 10,703 9,521 9,075 Depreciation and amortization (604) (576) (552) (175) (131) (98) - - (779) (707) (650) - - (779) (707) (650) Profit from operations before net financial expenses and share of profit of associates 747 319 1,194 822 477 337 - - 1,569 796 1,531 - - 1,569 796 1,531 Net financial expense (682) (808) (691) (48) (95) (77) - - (730) (903) (768) - - (730) (903) (768) Share of profit of subsidiaries and associates 64 77 81 - - - - - 64 77 81 (124) (17) (60) 60 81 Profit(loss) before income tax and social contribution 129 (413) 584 774 383 260 - - 903 (30) 844 (124) (17) 779 (47) 844 Income tax and social contribution (63) 76 (140) (234) (100) (89) - - (297) (24) (229) - - (297) (24) (229) Net income (loss) for continued operations 66 (337) 444 540 283 171 - - 606 (54) 615 (124) (17) 482 (71) 615 Net income (loss) for discontinued operations (33) (78) (74) - - - 416 (927) (817) 383 (1,005) (891) - - 383 (1,005) (891) Net income (loss) of year end 33 (415) 370 540 283 171 416 (927) (817) 989 (1,059) (276) (124) (17) 865 (1,076) (276) Current assets 7,202 8,938 3,093 2,417 23,182 20,538 33,477 31,893 (257) (242) 33,220 31,651 Noncurrent assets 11,168 10,955 3,568 2,620 - - 14,736 13,575 (28) (9) 14,708 13,566 Current liabilities 7,966 9,171 3,414 3,020 17,897 15,642 29,277 27,833 (285) (251) 28,992 27,582 Noncurrent liabilities 4,943 4,747 701 291 - - 5,644 5,038 - - 5,644 5,038 Shareholders' equity 5,461 5,975 2,546 1,726 5,285 4,896 13,292 12,597 - - 13,292 12,597 (*) Food retail includes GPA Malls & Properties. (**) See note 32. (***) The eliminations consist of intercompany balances. In the management’s view, the net earnings eliminations are made inside of own segment, besides, the equity pickup of the Company in Luxco. Company general information The Company operates primarily as a retailer of food, clothing, home appliances and other products. Total revenues are composed of the following brands: 2017 2016 2015 Extra 16,110 16,776 17,032 Assaí 18,440 14,487 10,454 Pão de Açúcar 6,659 6,711 6,491 Proximidade 1,085 1,131 946 Other business 2,340 2,349 2,275 Total net operating revenue 44,634 41,454 37,198 |
31. Non cash transactions
31. Non cash transactions | 12 Months Ended |
Dec. 31, 2017 | |
Non Cash Transactions | |
Non cash transactions | During 2017, 2016 and 2015 the Company had the following non-cash transactions of cash flows, as presented below: · Merger of subsidiaries and company reorganizations as per note 1.2; · Purchase of fixed assets not paid yet as note 14.3; · Purchase of intangible assets not paid yet as per note 15.3; · Deferred income tax as per note 20; · Additions/reversals to provisions for risk as per note 21; · Transactions with non-controlling interest as per note 24.7; · Capital increase at Sendas with property and equipment as per note 13; · Recognition of ICMS tax credits, according to note 11. |
32. Non current assets held for
32. Non current assets held for sale and discontinued operations | 12 Months Ended |
Dec. 31, 2017 | |
Non Current Assets Held For Sale And Discontinued Operations | |
Non current assets held for sale and discontinued operations | 32.1. Interest change on Cnova N.V Investment Preceding the process to dispose of the Company’s interest in Via Varejo’s capital stock, on July 24, 2016 a reorganization took place to separate the holdings of Via Varejo and CBD on Cnova N.V.. The second step of the restructuring process, and with the objective to concentrate the non-food business in a specific entity. The corporate reorganization on the ultimate controlling company Casino, GPA, Via Varejo, Cnova N.V. and Cnova Brasil was approved and concluded. As a result of this reorganization process on October 31, 2016, Cnova’s Brasil equity is exclusively held by Via Varejo, which no longer holds an interest in Cnova N.V.. According to loan contracts terms and conditions between Cnova Brasil and Cnova N.V. (assessed at approximately US$160 million at the end of September 2016), the transaction resulted in an early payment obligation of such loans, which were paid to Cnova N.V. by Via Varejo, on behalf of Cnova Brasil. In accordance with Noncurrent assets held for sale and discontinued operations (IFRS 5), as result of the Cnova reorganization we presented Cnova N.V.’s results for the 10 month period ended October 31, 2016 and year ended December 31, 2015 in one single line item in our statement of operations in loss from discontinued operations and the related balances of assets and liabilities in the line items assets held for sale and liabilities related to assets held for sale, respectively, in the balance sheet as of December 31, 2017 and 2016. On November 1, 2016 we became a minority shareholder in Cnova N.V. and we began applying the equity method of accounting in our investiment in Cnova N.V.. See below the summary of the statement of operations, balance sheet and cash flow statement of Cdiscount before the eliminations: Balance sheet: 10.31.2016 Assets Current Cash and cash equivalents 621 Trade receivables, net 365 Inventories, net 900 Other current assets 129 Total current assets 2,015 Noncurrent Deferred income tax and social contribution 38 Related parties 520 Other noncurrent assets 14 Property and equipment, net 46 Intangible assets, net 423 Total noncurrent assets 1,041 Total assets 3,056 Liabilities Current Trade payable, net 1,319 Related parties 1,300 Other current liabilities 363 Total current liabilities 2,982 Noncurrent Provision for risks 52 Other noncurrent liabilities 17 Total noncurrent liabilities 69 Shareholders’ equity 5 Total liabilities and shareholders’ equity 3,056 Statement of operations 10.31.2016 12.31.2015 Net operating revenue 5,509 6,598 Cost of sales (4,973) (6,025) Gross profit 536 573 Operating income (expenses) Selling, general and administrative expenses (527) (662) Depreciation and amortization (63) (74) Other operating expenses, net (69) (168) (659) (904) Loss from operations before financial expenses (123) (331) Financial expenses, net (9) 27 Loss before income tax and social contribution (132) (304) Income tax and social contribution (24) (61) Net loss from discontinued operations (156) (365) Attributed to: Controlling shareholders (48) (113) Non-controlling shareholders (108) (252) In addition to statement of operations of October 31, 2016, the net loss of discontinued operations consider R$(9) related to the November and December net loss, amounting to R$(165). Statements of cash flow 10.31.2016 12.31.2015 Cash flow used in operating activities (998) (730) Cash flow provided by (used in) investing activities 54 (112) Cash flow from financing activities 950 404 Exchange rate in cash and cash equivalents (24) 92 Net increase (decrease) in cash and cash equivalents (18) (346) 32.2. Ongoing transaction to dispose of Via Varejo subsidiary The Board of Directors held on November 23, 2016 approved a process to dispose of the Company’s interest in Via Varejo’s capital stock, in line with its long-term strategy of focusing on the development of the food activity. During 2017, due to certain external factors out of the control of the Company, mainly related to the macro economic scenario, the process of sale of Via Varejo was not concluded within one year as initially planned. The plan to sell Via Varejo remains unchanged, and the Company revised the next steps and expects, along with its financial advisors, to close the sales process during 2018. Therefore, as required by IFRS 5 – “Non-current assets held for sale and discontinued operations”, the net results of Via Varejo (and its subsidiary Cnova Brasil) are included in statement of operations as a single line, after taxes, and assets and liabilities balances are disclosed as held for sale and discontinued operations. Statement of operations on December 31, 2017, 2016 and 2015 also discloses the discontinued operations as a single line. However, the consolidated cash flows includes cash flows from continued and discontinued operations. Non current assets and liabilities held for sale on December 31, 2017 were R$22,939 (R$20,303 on December 31, 2016) and R$17,824 (R$15,632 on December 31, 2016), respectively. The net effects on discontinued operations were a net income of R$383 in 2017 (net loss of R$1,005 in 2016 and R$891 in 2015). Via Varejo shares are listed on B3 under ticker symbol “VVAR11” and “VVAR3”. See below the summary of the consolidated statement of operations, balance sheet and cash flow statements of Via Varejo before the eliminations, including effects of the purchase price allocation of Globex and Casa Bahia acquisition. Balance sheet (*): 12.31.2017 12.31.2016 Assets Current Cash and cash equivalents 3,559 4,030 Trade receivables, net (i) 3,988 2,782 Inventories, net 4,379 3,054 Recoverable taxes 219 581 Other current assets 168 123 Total current assets 12,313 10,570 Noncurrent Trade receivables, net 224 204 Recoverable taxes 2,725 2,317 Other accounts receivable, net 940 615 Deferred income tax and social contribution 354 289 Related parties 539 681 Investment properties 89 144 Property and equipment, net 1,711 1,550 Intangible assets, net 4,287 4,170 Total noncurrent assets 10,869 9,970 Total assets 23,182 20,540 Balance sheet (*): Liabilities 12.31.2017 12.31.2016 Current Trade payable, net 7,726 5,618 Structured payable program 437 489 Borrowings and financing (i) 3,802 3,532 Related parties 139 189 Other current liabilities (ii) 2,177 2,231 Total current liabilities 14,281 12,059 Noncurrent Borrowings and financing (i) 397 407 Deferred income tax and social contribution 839 849 Other noncurrent liabilities (ii) 2,380 2,329 Total noncurrent liabilities 3,616 3,585 Shareholders’ equity 5,285 4,896 Total liabilities and shareholders’ equity 23,182 20,540 (*) Before intercompany eliminations with GPA in the amount R$243 of assets and R$73 of liabilities. In the total balance held for sale of the balance sheet as of December 31, 2017, R$22 refers to the reclassification of CBD land to available for sale. (i) Includes financed sales through CDCI, whose value on December 31, 2017 is R$ 2,382 in assets (R$ 2,138 at December 31, 2016) and R$ 3,466 in liabilities (R$ 3,002 on December 31, 2016). (ii) Includes balance of R$1,374 on December 31, 2017 (R$1,662 on December 31, 2016) of deferred revenue related to the advance received from Zurich Seguros (extended warranty and insurance) and from Bradesco (cards transactions and bank correspondent). Statement of operations (*) 2017 2016 2015 Net operating revenue 25,690 23,215 25,447 Cost of sales (17,343) (16,201) (18,780) Gross profit 8,347 7,014 6,667 Operating income (expenses) Selling, general and administrative expenses (6,791) (6,084) (5,680) Depreciation and amortization - (207) (237) Other operating expenses, net (218) (389) (231) (7,009) (6,680) (6,148) Profit from operations before financial expenses and share of profit of associates 1,338 334 519 Financial expenses, net (770) (1,075) (899) Share of profit of associates 26 30 31 Income (loss) before income tax and social contribution 594 (711) (349) Income tax and social contribution (161) (34) (87) Net income (loss) for the year 433 (745) (436) Attributed to: Controlling shareholders 187 (268) (148) Non-controlling shareholders 246 (477) (288) (*) Via Varejo began to consolidate Cnova Brasil on October 31, 2016, as such the net loss of 2016 and 2015 above is the sum of the results of Via Varejo and Cnova Brasil with the eliminations from January 1st, 2016. Before eliminations of amounts of related parties with GPA. Description 2017 2016 2015 Net operating revenue (36) (22) (24) Cost of sales (8) (7) (6) Selling costs - 1 2 General and administrative expenses (1) - - Financial expenses, net 21 5 6 Income tax and social contribution 6 6 6 Total (18) (17) (16) Additionally incurred costs related to indemnity costs of contingences from prior periods were reclassified to discontinued operations in the amount of R$32 in 2017 (R$77 in 2016) in line with IFRS 5 requirements. Cash flows from discontinued operations 2017 2016 2015 Cash flow provided by (used in) operating activities 70 (2,636) 2,445 Net cash used in investing activities (333) (237) (420) Net cash provided by (used in) financing activities (208) 226 (658) Cash variation for the year (471) (2,647) 1,367 32.3. Fair value of Via Varejo In accordance with IFRS 5 the investment of Via Varejo must be recognized considering the lower amount between the carrying amount of net assets and market value less cost to sell. The Company estimates that the market value less cost to sell Via Varejo is greater than carrying amount of net assets, considering the recent average market share price of Via Varejo. |
33. Insurance coverage
33. Insurance coverage | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Coverage | |
Insurance coverage | The insurance coverage as at December 31, 2017 is summarized as follows: Insured assets Covered risks Amount insured Property and equipment and inventories Assigning profit 16,369 Profit Loss of profits 8,338 Cars and Others (*) Damages 412 The Company maintains specific policies for general civil liability of R$100 and civil responsibility of R$134, which covers fraud risk (Criminal) of R$35, risk of damage protection and Cybersecurity responsibility of R$ 32 and total coverage of R$301. (*) The value reported above does not include coverage of the hulls, which are insured by the value of 100% of the Foundation Institute of Economic Research – FIPE table. |
34. Subsequent Events
34. Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events | |
Subsequent Events | 34.1. 15th issuance of debentures On December 15, 2017, the Board of Directors approved the 15th issuance of a single serie of debentures, non-convertible into shares and unsecured. On January 15, 2018, 800,000 debentures were issued with a unitary value of R$ 1,000 and a total value of R$ 800. The debentures will have a term of 3 years as from the issuance date. 34.2 Interest on own capital On March 26, 2018, the Board of Directors approved the payment of interest on own capital for the year ended December 31, 2017, for an amount of R$91, corresponding to R$0,354066288 per preferred share and R$0,321878444 per common share, which will be paid on May 25, 2018, for an amount net of withholding taxes of R$77. |
4. Significant accounting pol40
4. Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies Policies | |
Financial instruments | Financial assets are initially recognized at fair value when the Company assumes contractual rights to receive cash or other financial asset in contracts in which they are part. Financial assets are derecognized when the rights to receive cash linked to the financial asset expire or have been transferred substantially all the risks and benefits to third parties. Assets and liabilities are recognized when rights and obligations are retained by the Company in the transfer. Financial liabilities are recognized when the Company assumes contractual obligations for settlement in cash or in the assumption of third-party obligations through a contract in which they are part of. Financial liabilities are initially recognized at fair value and are derecognized when the obligations are settled, extinguished or expired. Subsequently to their initial recognition, financial instruments, measured at amortized cost, are measured using effective interest rate. Interest income and expenses, monetary and exchange variation, net of estimated losses for not receiving financial assets, and recognized as financial income and expenses when incurred.. Note 18 provide detailed information about financial instruments and further details on how it is measured. (i) Financial assets Initial recognition and measurement The financial assets held by the Company within the scope of IAS 39 are classified according to the purpose for which they were acquired or contracted within the following categories: (i) assets measured at fair value through profit or loss; (ii) loans and receivables, (iii) available-for-sale and (iv) investments held to maturity. The Company determines the classification of their financial assets at initial recognition. Financial assets are initially recognized at fair value, and transaction costs are charged in the statement of operations. Loans and receivables are accounted for at amortized cost. Purchases or sales of financial assets that require the assets to be delivered within a time frame established by regulations or market conventions (negotiations under regular conditions) are recognized on the trade date, i.e., on the date that the Company commits to purchase or sell the asset. The financial assets of the Company includes cash and cash equivalents, trade accounts receivable, related parties receivables and derivative financial instruments. Subsequent measurement · Financial assets measured at fair value through profit or loss: · Loans and receivables: · Held-to-maturity financial assets: · Available-for-sale financial instruments: A financial asset (or, as applicable, a part of a financial asset or a part of a group of similar financial assets) is derecognized when: · Its right to receive cash flows has expired. · The Company has transferred their rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full to a third party under an onlending agreement; and (a) the Company has transferred substantially all the risks and rewards related to the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards related to the assets, but has transferred its control. Derecognition of financial assets When the Company has transferred their rights to receive cash flows from an asset or have entered into an onlending agreement, and has neither transferred nor retained substantially all the risks and rewards related to the asset or transferred control of the asset, the asset is maintained and an associated liability is recognized. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations retained by the Company. Impairment of financial assets At the end of each reporting period, the Company assesses whether there is any indication of impairment of a financial asset or group of financial assets. The impairment of a financial asset or group of financial assets is only considered (and only if) when there is objective evidence resulting from one or more events that have occurred after the asset’s initial recognition (“loss event”), and such event affects the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. The evidence of impairment may include indications that debtors (or group of debtors) are going through relevant financial constraints, moratorium or default in the amortization of interest or principal; likelihood that they will file for bankruptcy or another type of financial reorganization; and when this data indicates a measurable decrease in future cash flows, such as default interest variations or economic conditions related to default. Specifically in relation to loans and receivables, the Company, firstly verify whether there is objective evidence of impairment individually for financial assets that are individually significant, or collectively for assets that are not individually significant, if the Company determines the nonexistence of objective evidence of impairment of a financial asset measured individually – whether or not this loss is significant – the Company classifies it in a group of financial assets with similar credit risk characteristics which are evaluated collectively. The assets individually assessed as to be impaired, or for which the impairment is (or continues to be) recognized, are not included in the collective assessment. An impairment loss is measured as the difference between the carrying amount of an asset and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted by the original effective interest rate of the financial asset. The asset’s carrying amount decreases through the use of a provision and the impairment loss is recognized in the statement of operations. Interest income is recorded in the financial statements as part of finance income. In the case of borrowings or investments held to maturity with a variable interest rate, the Company measures the non-recovery based on the fair value of the instrument adopting an observable market price. If, in a subsequent period, an impairment decreases and this reduction can be objectively associated with an event that has occurred after the recognition of the provision (such as an improvement in a debtor’s credit rating), the reversal of the previously recognized impairment loss is recognized in the statement of operations. If a write-off is later recovered, it is also recognized in the statement of operations. (ii) Financial liabilities The financial liabilities under the scope of IAS 39 are classified as fair value through profit or loss or other financial liabilities, designated as hedge instruments in an effective hedge relationship, as applicable. The Company defines the classification of its financial liabilities at initial recognition. All financial liabilities are initially recognized at fair value and, in the case of borrowings and financing, net of directly attributable transaction costs. The Company’s financial liabilities include trade payable, borrowings and financing, debentures, financing related to acquisition of assets and derivative financial instruments. Subsequent measurement After initial recognition, interest-bearing borrowings and financings are subsequently measured at amortized cost using the effective interest rate method. Gains and losses are recognized in the statement of operations for the year when the liabilities are written off, or through amortization according to the effective interest rate method. Derecognition of financial liabilities A financial liability is derecognized when the underlying obligation is settled, cancelled or expired. When an existing financial liability is replaced by another from the same lender, on substantially different terms, or the terms of an existing liability are substantially modified, this replacement or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized as financial income. Offsetting of financial instruments Financial assets and liabilities are offset and stated net in the financial statements only if there is a currently enforceable legal right to offset the recognized amounts and there is an intention of settling them on a net basis or realizing the assets and settling the liabilities simultaneously. |
Foreign currency transactions | Foreign currency transactions are initially recognized at the exchange rate of the corresponding currencies on the date the transaction is qualified for recognition. Assets and liabilities denominated in foreign currencies are translated to Real using the spot rate at the end of the reporting periods. Gains or losses on exchange variations are recognized as financial income or expense. |
Derivative financial instruments | The Company uses derivative financial instruments to limit the exposure to variation not related to the local market such as interest rate and exchange rate swaps. These derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value at the end of each reporting period. Derivatives are accounted for as financial assets when their fair value is positive and as financial liabilities when their fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are recognized as financial income or expenses. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it intends to apply hedge accounting and its objective and risk management strategy for contracting the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Company will assess the effectiveness of the changes in the hedging instrument’s fair value in offsetting the exposure to changes in the fair value of the hedged item or cash flow attributable to the hedged risk. These hedges are expected to be highly effective in offsetting changes in the fair value or cash flow and are assessed on an ongoing basis to determine if they actually have been highly effective throughout the periods for which they were designated. Fair value hedges are recognized, in accordance with the procedures below: · The change in the fair value of a derivative financial instrument classified as fair value hedges is recognized as a financial result. The change in the fair value of the hedged item is recorded as a part of the carrying amount of the hedged item and is recognized in the statement of operations; · In order to calculate the fair value, debts and swaps are measured through rates publicly available in the financial market and projected up to their maturity date. The discount rate used in the calculation in the interpolation method for borrowings denominated in foreign currency is developed through DDI curves, free coupon and DI, indexes disclosed by the B3 (the Brazilian Securities, Commodities and Futures Exchange), whereas for borrowings denominated in reais, the Company uses the DI curve, an index published by the CETIP and calculated through the exponential interpolation method. |
Cash and cash equivalents | Cash and cash equivalents consist of cash, bank accounts and highly liquid short-term investments that are readily convertible into a known cash amount, and are subject to an insignificant risk of change in value, with intention and possibility to be redeemed in the short term, up to 90 days. |
Trade accounts receivable | Trade receivables are stated and maintained in the balance sheet at their nominal sales amounts less an allowance for doubtful accounts, which is recorded based on historical loss experience and risk analysis of the entire customer portfolio and the respective likelihood of collection. Trade accounts receivable refer to non-derivative financial assets with fixed payments or which may be calculated, without quotation in an active market. After the initial measurement, these financial assets are subsequently measured at amortized cost according to the effective interest method (“EIM”), less impairment. The amortized cost is calculated taking into account eventual discounts or premiums over the acquisition and costs comprising the EIM.The EIM amortization are included in net finance income (expense) in the statement of operations. Impairment expenses are recognized in the statement of operations. At the end of each reporting period, the Company assesses if the financial assets or group of financial assets are impaired. Impairment of receivables are based on historical rates observed in the last 24 months, besides observation of economic events like unemployment rates, consumer trends and past due receivables in the portfolio. Receivables are considered uncollectable, and therefore, written off after they are 180 days past due. |
Inventories | Inventories are accounted for at cost or net realizable value, whichever is lower. Inventories purchased are recorded at average cost, including warehouse and handling costs, to the extent these costs are necessary to bring inventories to selling conditions in the stores, less bonuses received from suppliers. Net realizable value is the selling price in the ordinary course of business, less the estimated costs to sell. Inventories are reduced by an allowance for obsolescence and damages, which is periodically reviewed and evaluated as to its adequacy. |
Supplier Bonuses | Bonuses received from suppliers are measured and recognized based on contracts and agreements signed, and recorded as a reduction of cost of sales when the corresponding inventories are sold. Includes purchase volume agreement, logistics and specific negotiations to recover margin, reimbursement agreement (marketing expenses), among others, and are deducted from payables to the respective suppliers, once the Company is contractually entitled to settle trade payables net of these bonuses. |
Impairment of non-financial assets | Impairment testing is designed so that the Company can present the net realizable value of an asset. This amount may be realized directly or indirectly, through the sale of the asset or the cash generated by the use of the asset in the Company activities. The Company tests its tangible or intangible assets for impairment annually or whenever there is internal or external evidence that they may be impaired. An asset’s recoverable amount is defined as the asset’s or cash generating units (CGU) fair value less cost of disposal or its value in use, whichever is higher. The recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and an allowance for impairment is recorded to adjust its carrying amount to its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to present value using a pre-tax discount rate that represents the Company’s weighted average cost of capital (“WACC”), reflecting current market assessments of the time value of money and the risks specific to the asset. Impairment losses are recognized in profit or loss for the year in the expense categories consistent with the function of the respective impaired asset. For assets excluding goodwill, previously recognized impairment losses are reversed only if there’s been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. |
Property and equipment | Property and equipment is stated at cost, net of accumulated depreciation and/or any impairment losses, if any. Cost includes the cost of acquisition and financing costs for long-term construction projects, if the recognition criteria are met. When significant components of property and equipment are replaced, they are recognized as individual assets with specific useful lives and depreciation. Likewise, when a major replacement is performed, its cost is recognized at the carrying amount of the equipment as a replacement, if the recognition criteria are met. All other repair and maintenance costs are recognized in the statement of operations for the year as incurred. Asset category Useful life (in years) Buildings 40 Improvements 24 Data processing equipment 5 Software 10 Facilities 12 Furniture and fixtures 9 Vehicles 5 Machinery and equipment 11 Decoration 5 Property and equipment items and eventual significant parts are written off when sold or when no future economic benefits are expected from its use or sale. Any eventual gains or losses arising from the write off of the assets are included in statement of operations for the year. The residual value, the useful life of assets and the depreciation methods are reviewed at the end of each reporting period and adjusted prospectively, if applicable. The Company reviewed the useful lives of fixed and intangible assets for fiscal year 2017 and no significant changes were deemed necessary. |
Capitalization of interest | Interest on borrowings and financing directly attributable to the acquisition, construction of an asset that requires a substantial period of time to be completed for its intended use or sale (qualifying asset) are capitalized as part of the cost of the respective assets during its construction phase. From the date that the asset is placed in operation, capitalized costs are part of the carrying amount of the asset and are depreciated over the estimated useful life of the asset. |
Investments properties | Investment properties are measured at historical cost, including transaction costs. After the initial recognition, they are stated at cost, net of accumulated depreciation and or impairment loss, if applicable. Investment properties are written off when they are sold or when they are no longer used and no future economic benefit is expected from the sale. An investment property is also classified as held for sale when there is an intention to sell. The difference between the net amount obtained from the sale and the carrying amount of the asset is recognized in the statement of operations in the period in which the asset has been disposed of. |
Intangible assets | Intangible assets acquired separately are measured at cost at initial recognition, less amortization and any impairment losses. Internally generated intangible assets, excluding capitalized software development costs, are recognized as expense when incurred. Intangible assets consist mainly of software acquired from third parties, software developed for internal use, commercial rights (stores’ rights of use), customer lists, advantageous lease agreements, advantageous furniture supply agreements and brands. Intangible assets with definite useful lives are amortized using the straight-line method. The amortization period and method are reviewed, at least, at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimate. Software development costs recognized as assets are amortized over their useful lives (5 a 10 years), according to the amortization rates, mentioned in the note 4.10., beginning amortization when they become operational. Intangible assets with indefinite useful lives are not amortized, but tested for impairment at the end of each reporting period or whenever there are indications that their carrying amount may be impaired either individually or at the level of the cash-generating unit. The assessment is reviewed annually to determine whether the indefinite life assumption remains appropriate. Otherwise, the useful life is changed prospectively from indefinite to definite. When applicable, gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net proceeds from the sale of the asset and its carrying amount, and recognized in the statement of operations in the year when the asset is derecognized. |
Classification of assets and liabilities as current and noncurrent | Assets (except for deferred income tax and social contribution) that are expected to be realized or are intended for sale or consumption within twelve months as of the end of the reporting periods are classified as current assets. Liabilities (except for deferred income tax and social contribution) that are expected to be settled within twelve months as of the end of the reporting periods are classified as current. All other assets and liabilities (including deferred tax assets and liabilities) are classified as “noncurrent”. The deferred tax assets and liabilities are classified as “noncurrent”, net by legal entity, according to IAS 12. |
Assets held to sale | Noncurrent assets and group of assets are reclassified as held for sale if the carrying amount will be recovered through a sale transaction, instead of continuous use. This condition is considered reached only when the asset is available to sale in the present condition, exposed only the terms that are usual to sales of these assets and the sale is highly probable. Management has to be committed to completed the sale within one year. When the Company is committed to a sale plan involving the loss of subsidiary control, all the assets and liabilities of this subsidiary are classified as held for sale when the criteria above is met, even if the Company keeps a non-controlling interest in its former subsidiary after the sale. Additionally, the net results of the entity classified as held for sale is presented as discontinued operations in a single caption in the statements of operations. After the completion of the sale, the Company records any residual interest in the associate in accordance with IAS 39, unless the Company has significant influence in the associate and, in this case, the Company uses the equity method of accounting. Non current assets classified as held for sale are measured based on the lower amount between carrying amount and fair value less cost to sell. |
Leases | The definition of an agreement as lease is based on an assessment at the inception of the lease, i.e., if fulfilment of the arrangement depends on the use of a specific asset or assets or the arrangement transfers the right to use the asset. The Company rents equipments and commercial spaces, including stores and distribution centers, through lease agreements. The agreements length vary substantially from 5 to 25 years. Company as lessees Financial lease agreements, which transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or at the present value of the minimum lease payments, whichever is lower. Lease payments are allocated between financial charges and reduction of lease liabilities so as to achieve a constant interest rate in the remaining balance of liabilities. Financial charges are recognized as a financial expense in the year. Leased assets are depreciated over their useful lives. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over its estimated useful life or the lease term, whichever is shorter. The leasehold improvements and rebuilding follow the same rule. Lease agreements are classified as operating leases when there is no transfer of risk and benefits incidental to ownership of the leased item. The installment payments of leases (excluding service costs, such as insurance and maintenance) classified as operating lease agreements are recognized as expenses, on straight-line basis, during the lease term. Contingent rentals are recognized as expenses in the years they are incurred. Company as lessors Lease agreements where the Company does not transfer substantially all the risks and benefits incidental to ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized over the agreement term on the same basis as rental income. Contingent rentals are recognized as revenue in the periods in which they are earned . |
Provisions | Provisions are recognized when the Company has present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and the obligation can be reliably estimated. Where the Company expects a provision to be fully or partially reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to the eventual provision is recognized in statement of operations for the year, net of any reimbursement. In cases of attorney’s fees in favorable court decisions, the Company’s policy is to make a provision when fees are incurred, i.e., upon final judgment on lawsuits, as well as disclose in notes the amounts involved in lawsuits in progress. |
Dividend distribution | Dividend distribution to the Company’s shareholders is recognized as a liability at the year-end, based on the minimum mandatory dividends established by the Bylaws. Additional dividends are only recorded when approved by the Company’s shareholders. The Company may pay interest as remuneration of its own capital calculated over the shareholders' equity accounts, observing the rate and limits determined by law. |
Deferred Revenue | The Company records deferred revenue related to amounts received in advance from business partners for the exclusivity in the intermediation of services of additional or extended warranties, recognized in profit by evidence of the service rendered in the sale of these warranties jointly with the business partners. |
Equity | Common and preferred shares are classified as equity. When the Company purchases its own shares (treasury shares), the remuneration paid, including any directly attributable costs, is deducted from equity, and are recorded as treasury shares until the shares are cancelled or sold to the market. When these shares are subsequently sold, any remuneration received, net of any directly attributable costs, is included in equity. No gain or loss is recognized on the purchase, sale, issue or cancellation of the Company’s own equity instruments. |
Share-based payment | Employees and senior executives of the Company (including ours subsidiaries) receive compensation in the form of share-based payment, whereby employees render services in exchange for equity instruments (“equity-settled transactions”). Equity-settled transactions The cost of equity-settled transactions is recognized as an expense in the year, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are met. Cumulative expenses recognized for equity instruments at each reporting date until the vesting date reflect the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will be ultimately vested. Each year’s expenses or expenses reversals represents the change in the cumulative expenses recognized at the beginning and the end of that year. No expense is recognized for services that has not completed the vesting period, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vested irrespective of whether or not the market or non-vesting condition is met, provided that all other performance and/or service conditions are met. When an equity instrument is modified, the minimum expense recognized is the expense that would have been incurred if the terms had not been modified, an additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction or is otherwise beneficial to the employee, as measured at the date of modification. When an equity instrument is cancelled, it is treated as fully vested on the date of cancellation, and any expense not yet recognized related to the premium are immediately recognized in profit or loss for the year, this includes any premium whose non-vesting conditions within the control of either the Company or the employee are not met. However, if the cancelled plan is replaced by another plan and designated as a replacement grants on the grant date, the cancelled grant and the new plan are treated as if they were a modification of the original grant, as described in the previous paragraph. All cancellations of equity-settled transactions are treated equally. The dilutive effect of outstanding options is reflected as an additional share dilution in the calculation of diluted earnings per share (see note 29). |
Earnings per share | Basic earnings per share are calculated based on the weighted average number of outstanding shares of each category during the year. Diluted earnings per share are calculated as follows: · Numerator: profit for the year adjusted by dilutive effects from stock options granted by subsidiaries. · Denominator: weighted average number of outstanding shares of each category adjusted to include potential shares corresponding to dilutive instruments (stock options), less the number of shares that could be bought back at market, if applicable. Equity instruments that will or may be settled with the Company’s shares are only included in the calculation when its settlement has a dilutive impact on earnings per share. |
Determination of net income | Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company, and it can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, and sales taxes. The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements, except for those referring to extended warranties and insurance policy brokerage, among others. Specifically in these cases, the Company operates as agents, and revenue is recognized on a net basis, which reflects the commission received from insurance companies. The following specific recognition criteria must also be met before revenue is recognized: 4. (i) Revenue a) Sale of goods Revenue from sale of goods are recognized at their fair value and, when all the risks and benefits inherent to said good are transferred to the buyer, the Company ceases to hold control or responsibility for the goods sold and the economic benefits generated to the Company are probable. No revenue is recognized if their realization is uncertain. b) Service revenue Due to the Company’s actions as agent in insurance extended warranty, financial protection insurance, personal accident insurance, sales agents in technical assistance and mobile phone recharge, revenues earned are presented net of related costs and recognized in profit or loss when probable that the economic benefits will flow to the Company and their values can be measured reliably. c) Finance service revenue As the activity of customer financing is an important part of the Company’s business, for all financial instruments measured at amortized cost, revenue is recorded using the effective interest rate, which discounts exactly the estimated future cash receipts through the expected life of the financial instrument, or a shorter period of time, where applicable, to the net carrying amount of the asset. Interest income is included under financial services, comprising the Company's gross profit in the statement of operations. This practice is substantially related to discontinued operations. d) Interest income For all financial instruments measured at amortized cost, interest income is recorded using the effective interest rate, which is the rate that discounts the estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability, Interest income is included in the financial result in the statement of operations for the year. e) Barter revenue Revenues are recognized: (i) at the time of conclusion of the exchange of land owned by GPA M&P at the fair value of the consideration received on the barter date, (ii) upon delivery of the units sold by GPA M&P. The cost of the units sold comprises the fair value of the initially recognized barter. f) Returns and cancellations Returns and cancellations are recognized when incurred. When the sale is recorded, the assumptions are based on the volumes of sales and historic past experience on returns of each reporting segment. Revenue is recorded net of returns and cancellations. (ii) Cost of goods sold The cost of goods sold comprises the acquisition cost net of discounts and bonuses received from suppliers, changes in inventory and logistics costs. Rebates received from suppliers are measured based on contracts and agreements signed with them. The cost of sales includes the cost of logistics operations managed or outsourced by the Company, comprising warehousing, handling and freight costs incurred until the goods are ready for sale. Transport costs are included in the acquisition costs. (iii) Selling expenses Selling expenses comprise all store expenses, such as salaries, marketing, occupancy, maintenance, expenses with credit card companies, etc. Marketing expenses refer to advertising campaigns for each segment in which the Company operates. The main media used by the Company are: radio, television, newspapers and magazines. These expenses are recognized in results of operations when incurred, net of amounts received from suppliers joining the campaigns. (iv) General and administrative expenses General and administrative expenses correspond to overhead and the cost of corporate units, including the purchasing and procurement, information technology and financial activities. (v) Other operating expenses, net Other operating income and expenses correspond to the effects of major non-recurring events occurred during the year that do not meet the definition of other items in the statement of operations lines. (vi) Financial result Financial expenses include substantially all expenses generated by net debt and receivables sold during the year, offset by capitalized interest, losses related to the measurement of derivatives at fair value, losses on disposals of financial assets, financial charges on provisions on lawsuits and taxes and interest charges on financial leases, as well as discount charges. Financial income includes income generated by cash and cash equivalents and restricted deposits, gains related to the measurement of derivatives at fair value. |
Taxation | Current income tax and social contribution Current income tax and social contribution assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the tax authorities. The tax rates and tax laws used to calculate taxes are those enacted or substantially enacted at the end of each balance sheet date. Income taxes comprise Corporate Income Tax (“IRPJ”) and Social Contribution on Net Income (“CSLL”), calculated based on taxable income (adjusted income), at the statutory rates set forth in the legislation in force: 15% on taxable income plus an additional 10% on annual taxable income exceeding R$240,000 for IRPJ, and 9% for CSLL. Deferred income tax and social contribution Deferred income tax and social contribution are generated by temporary differences at the end of the reporting periods between the tax basis of assets and liabilities and their carrying amounts. Deferred income tax and social contribution assets are recognized for all deductible temporary differences and unused tax loss carryforwards to the extent that it is probable that taxable income will be available against which to deduct temporary differences and unused tax loss carryforwards, except where the deferred income and social contribution tax assets relating to the deductible temporary difference arise from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor tax income or losses. Deferred income tax and social contribution liabilities are recognized for all temporary taxable differences, except when the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in an transaction other than a business combination and which, at the time of the transaction, affects neither accounting profit nor tax losses. With respect to deductible temporary differences associated with investments in subsidiaries and associates, deferred income and social contribution taxes are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable income will be available against which the temporary differences can be utilized. The carrying amount of deferred income and social contribution tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred income and social contribution taxes to be utilized. Unrecognized deferred income tax and social contribution tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable income will allow these assets to be recovered. Deferred income and social contribution tax assets and liabilities are measured at the tax rates that are expected to be enacted in the year when the asset is realized or the liability is settled, based on inacted tax rates (and tax laws) or substantively enacted tax rates at the end of the reporting period. Deferred taxes related to items directly recognized in equity are also recognized in equity and not in the statement of operations. Deferred income tax and social contribution tax assets and liabilities are offset if there is a legal or contractual right to offset tax assets against income tax liabilities, and the deferred taxes refer to the same taxpayer entity and to the same tax authority. Other taxes Revenue from sales of goods and services are subject to taxation by State Value-Added Tax (“ICMS”) and Services Tax (“ISS”), calculated based on the rates applicable to each state and city, as well as contribution for the Social Integration Program (“PIS”) and contribution for Social Security Financing (“COFINS”), and are presented net of sales revenue. Revenue and expenses are recognized net of taxes, except where the sales tax incurred on the purchase of assets or services is not recoverable from the tax authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable. |
Business combinations and goodwill | Business combinations are recorded using the acquisition method. The cost of an acquisition is measured as the sum of the consideration transferred, measured at fair value on the acquisition date, and the remaining amount of non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling interest in the acquired at fair value or at the proportional interest in the acquiree identifiable net assets. The acquisition costs incurred are accounted for as general and administrative expenses. When the Company acquires a business, it assesses its financial assets and liabilities in order to appropriately classify and designate them in accordance with contractual terms, economic circumstances and relevant conditions on the acquisition date. This includes the segregation of derivatives embedded in agreements by the acquiree. If the business combination occurs in phases, the fair value on the acquisition date of the interest previously held by the acquirer in acquiree is adjusted to fair value on the acquisition date through profit or loss. Any contingent payment to be transferred by the acquirer will be recognized at fair value on the acquisition date, Subsequent changes in the fair value of the contingent payment considered as an asset or liability will be recognized through profit or loss or as a change in other comprehensive income. Goodwill is initially measured at cost and is the excess between the consideration transferred and the non-controlling interest in assets and assumed liabilities, if this payment is lower than the fair value of the acquirer’s net assets, the difference is recognized in profit or loss as gain on bargain purchase. After initial recognition, goodwill is measured at cost, less any impairment losses. For impairment testing purposes, the goodwill acquired in a business combination is, as of the acquisition date, allocated to the operating segment that will benefit from the business combination, regardless of whether other assets or liabilities of the acquire will be assigned to that operating segment. When goodwill is part of a cash-generating unit and part of the operation at this unit is sold, the goodwill related to the sold operation is included in the carrying amount of the operation when calculating profit or loss from the sale of the operation. This goodwill is then measured based on the relative amounts of the sold operation and part of the cash-generating unit which was maintained. |
Accounting for equity investments at cost deriving from corporate restructuring and performed with related parties | The Company accounts for at historical cost the interest deriving from corporate restructuring performed with related parties. Difference between the acquiring value and historical cost is recorded in shareholders’ equity, when the interest acquired is from companies under common control. Such transactions are not in the scope of IFRS 3. |
Foreign currency translation | The financial statements are presented in Reais, the functional currency of the Group’s Parent Company. Each entity determines its own functional currency and all their financial transactions are measured in that currency. The financial statements of foreign subsidiaries that use a different functional currency from the Parent Company are translated into Reais, at closing date according to the following: · Assets and liabilities, including goodwill and fair value adjustments, are translated into reais at the closing rate. · Statement of operations and cash flow items are translated into reais using the average rate unless significant variances occurs, when is used the rate of the transaction date. · Equity is recorded into Reais at historical cost and the exchange rate variation is recorded in equity valuation adjustments as other comprehensive income. Exchange differences are recognized within a separate component of equity. When a foreign operation is sold, the accumulated value of exchange differences on the equity is reclassified to results of operations. Foreign currency transactions (i.e. transactions that use currency different from functional currency of entity) are translated using the exchange rate at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate and the resulting exchange differences are recognized in the statement of operations. Non-monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate at the transaction date. |
Customer loyalty programs | Until December 31, 2017, the Company provided incentives to its customers in the sale of products or services. When acquiring products or services and upon achievement of certain scoring levels customer could use credit points as a discount when acquiring goods at the stores. As announced to the participants, the loyalty program was terminated at the end of the 2017 and all points not redeemed by customers were considered expired and recorded in income. |
3. Basis of consolidation (Tabl
3. Basis of consolidation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basis Of Consolidation Tables | |
Interest in subsidiaries and associates | Direct and indirect equity interests - % (rounded) 2017 2016 Companies Subsidiaries Novasoc Comercial Ltda. (“Novasoc”) (****) 100 10 Sendas Distribuidora S.A. (“Sendas”) 100 100 Bellamar Empreend. e Participações Ltda. (“Bellamar”) 100 100 GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (“GPA M&P”) 100 100 CBD Holland B.V. (“CBD Holland”) 100 100 GPA 2 Empreed. e Participações Ltda. (“GPA 2”) 100 100 GPA Logística e Transporte Ltda. (“GPA Logística”) 100 100 Via Varejo S.A. (“Via Varejo”) (*) 43 43 Via Varejo Luxembourg Holding S.à.r.l. (“VVLuxco”) (*) 43 43 Via Varejo Netherlands Holding B.V. (“VVDutchco”) (*) 43 43 Indústria de Móveis Bartira Ltda. (“Bartira”) (*) 43 43 VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (“VVLOG Logística”) (*) 43 43 Globex Adm. e Serviços Ltda. (“Globex Adm”) (*) 43 43 Lake Niassa Empreend. e Participações Ltda. (“Lake Niassa”) (*) 43 43 Globex Adm. Consórcio Ltda. (“Globex Adm. Consórcio”) (*) 43 43 Cnova Comércio Eletrônico S.A. (”Cnova Brasil”) (*) 43 43 E-Hub Consult. Particip. e Com. S.A. (“E – Hub”) (*) 43 43 Nova Experiência PontoCom S.A. (“Nova Experiência”) (*) 43 43 Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco”) 100 100 Companhia Brasileira de Distribuição Netherlands Holding B.V. (“CBDDutchco”) 100 100 Associates Cnova N.V (“Cnova Holanda”) (**) 34 34 Cdiscount Group S.A.S. (“CDiscount”) (**) 34 34 Cnova Finança B.V. (“Cnova Finança”) (**) 34 34 Cdiscount Afrique SAS (“Cdiscount Afrique”) (**) 34 34 Cdiscount International BV The Netherlands (“Cdiscount Internacional”) (**) 34 34 Cnova France SAS (“Cnova France”) (**) 34 34 Cdiscount S.A. (“Cdiscount”) (**) 34 34 3W SAS (“3W”) (**) (***) - 34 CD Africa SAS (“CD Africa”) (**) (***) - 29 Cdiscount Côte d'Ivoire SAS Ivory Coast (“Cdiscount Côte”) (**) 34 29 Cdiscount Sénégal SAS (“Cdiscount Sénégal”) (**) 34 29 Cdiscount Cameroun SAS (“Cdiscount Cameroun”) (**) 34 29 CLatam AS Uruguay (“CLatam”) (**) 24 24 Cdiscount Panama S.A. (“Cdiscount Panama”) (**) 24 24 Cdiscount Uruguay S.A. (“Cdiscount Uruguay”) (**) 24 24 Ecdiscoc Comercializadora S.A.(Cdiscount Ecuador) (“Ecdiscoc Comercializadora”) (**) 24 24 Cnova Pay (“Cnova Pay”) 34 - BeezUP SAS (“BeezUp”) 20 - Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) 42 42 Banco Investcred Unibanco S.A. (“BINV”) 22 22 FIC Promotora de Vendas Ltda. (“FIC Promotora”) 42 42 |
Associates summarized financial statements | FIC 2017 2016 Current assets 4,621 4,060 Noncurrent assets 69 43 Total assets 4,690 4,103 Current liabilities 4,026 3,050 Noncurrent liabilities 11 15 Shareholders’ equity 653 1,038 Total liabilities and shareholders’ equity (*) 4,690 4,103 Statement of operations: 2017 2016 2015 Revenues 988 1,118 1,118 Operating income 321 386 370 Net income for the year 184 236 226 (*) For the purposes of measurement of the investment in this associate, the special goodwill reserve recorded by FIC shall be deducted from its shareholders’ equity, since it is Itaú Unibanco’s exclusive right. Cnova N.V. consolidated 2017 2016 Current assets 2,836 1,457 Noncurrent assets 796 501 Total assets 3,632 1,958 Current liabilities 3,941 1,948 Noncurrent liabilities 174 70 Shareholders’ equity (483) (60) Total liabilities and shareholders’ equity 3,632 1,958 Statement of operations: 2017 2016 2015 Revenues 7,651 7,187 6,599 Operating loss (72) (146) (331) Loss for the year (367) (224) (319) |
4. Significant accounting pol42
4. Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies Tables | |
Property and equipment useful life | Asset category Useful life (in years) Buildings 40 Improvements 24 Data processing equipment 5 Software 10 Facilities 12 Furniture and fixtures 9 Vehicles 5 Machinery and equipment 11 Decoration 5 |
5. Adoption of standards, ame43
5. Adoption of standards, amendments/interpretations of existing standards and standards issued but not yet effective (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Adoption Of Standards Amendmentsinterpretations Of Existing Standards And Standards Issued But Not Yet Effective Tables | |
New and revised standards starting at the current year | Statement Description Impact Annual improvements to IFRS: 2015 – 2017 cycle Amendments to IFRS 12 - Disclosure of interests in other entities - clarification of the scope statements. The adoption of this standard had no significant impact on the consolidated financial statements. IAS 12 – Deferred tax income recognize for unrealized losses Describes the treatment of temporary difference. The adoption of this standard had no significant impact on the consolidated financial statements. IAS 7 – Initiatives to improve disclosures Describes about disclosures that enable users to evaluate the changes in liabilities related to financing activities. The adoption of this standard had no significant impact on the consolidated financial statements. |
New and revised standards not yet adopted | Pronouncement Description Applicable to annual periods beginning on or after IFRS 9 – Financial Instruments Several changes in classification and measurement, measurement of impairment and hedge accounting. 01/01/2018 IFRS 15 – Revenue from contracts with customers Applies a five-step model and a definitive guide as when to recognize revenue. It also introduces new disclosures. 01/01/2018 IFRS 16 – Leases Requires a review on lease arrangements for both lessors and lessees, replacing IAS 17. The definitions of operating lease disappear, except for short-term leases and contracts involving immaterial items. 01/01/2019 IFRS 2 – Classification and measurement of share based payment Between other changes describes modifications of settled options of shares. 01/01/2018 IFRS 10 and IAS 28 improvements – sale or asset contribution, between investor and associate or Joint Venture In case of assets sale, or asset contribution, between investor and associates or joint venture, the transaction will only be recognized in profit and loss if the transaction is done with an unrelated third party. 01/01/2018 |
7. Cash and cash equivalents (T
7. Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents Tables | |
Cash and cash equivalents | Rate 2017 2016 Cash and banks - Brazil 396 349 Cash and banks - Abroad (*) 68 66 Short-term investments - Brazil (**) 3,328 4,697 3,792 5,112 (*) Refers to amounts deposited in the United States of America in US Dollars. (**) Short-term investments as December 31, 2017 refer substantially to highly liquid investments accruing interest corresponding at a weighted average rate of 98,07% (98,26% on December 31, 2016) of the Interbank deposit Certificate ("CDI") and redeemable in less than 90 days of investment date. |
8. Trade receivables (Tables)
8. Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade Receivables Tables | |
Trade receivables | 2017 2016 Credit card companies (note 8.1) 246 187 Credit card companies - related parties (note 12.2) 170 54 Sales vouchers 147 142 Private label credit card 74 62 Receivables from related parties (note 12.2) - 5 Receivables from suppliers 79 95 Allowance for doubtful accounts (note 8.2) (4) (2) 712 543 Current 632 543 Noncurrent 80 - |
Estimated losses on doubtful accounts | 2017 2016 2015 At the beginning of the year (2) (392) (354) Provision for loss (722) (609) (556) Write-off of receivables 621 561 544 Assets held for sale and discontinued operations (note 32) 99 422 - Exchange rate changes - 16 (26) At the end of the year (4) (2) (392) |
Aging list of gross receivables | Overdue receivables Total Not overdue <30 days 30-60 days 61-90 days >90 days 2017 716 685 15 5 2 9 2016 545 524 13 6 1 1 |
9. Other receivables (Tables)
9. Other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Receivables Tables | |
Other receivables | 2017 2016 Accounts receivable from insurers (i) 208 19 Rental receivable 48 61 Receivable from Paes Mendonça (note 9.1) 532 532 Receivable from sale of subsidiaries (note 9.2) 81 69 Other 44 57 913 738 Current 271 126 Noncurrent 642 612 |
10. Inventories (Tables)
10. Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories Tables | |
Inventories | 2017 2016 Stores 3,564 3,400 Distribution centers 1,307 1,255 Real estate inventories (note 10.3) 24 61 Allowance for losses on inventory obsolescence and damages (note 10.2) (73) (75) 4,822 4,641 |
Estimated losses on obsolescence and breakage | 2017 2016 2015 At the beginning of the year (75) (150) (91) Additions (110) (208) (129) Write-offs 111 164 72 Exchange rate changes - 1 (2) Assets held for sale and discontinued operations (note 32) 1 118 - At the end of the year (73) (75) (150) |
11. Recoverable taxes (Tables)
11. Recoverable taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Recoverable Taxes Tables | |
Recoverable taxes | 2017 2016 State value-added tax on sales and services – ICMS (note 11.1) 1,886 545 Provision for non-realization to ICMS (369) - Social Integration Program/Contribution for Social Security Financing-PIS/COFINS (note 11.2) 424 418 Income tax on short term investments 13 45 Income tax and Social Contribution 71 80 Social Security Contribution - INSS 312 211 Other 6 7 Total 2,343 1,306 Current 596 674 Noncurrent 1,747 632 |
Future realization of revoverable taxes | Up to one year 318 From 1 to 2 years 228 From 2 to 3 years 172 From 3 to 4 years 148 From 4 to 5 years 139 More than 5 years 512 1,517 |
12. Related parties (Tables)
12. Related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Parties Tables | |
Compensation | Base salary Variable compensation Stock option plan Total 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Board of directors (*) 5,797 7,128 4,026 - - - - - - 5,797 7,128 4,026 Executive officers 31,408 26,035 33,704 26,813 16,684 13,377 24,405 22,545 5,727 82,626 65,264 52,808 Fiscal Council 456 - - - - - - - - 456 - - 37,661 33,163 37,730 26,813 16,684 13,377 24,405 22,545 5,727 88,879 72,392 56,834 % share-based payment over the total 27.5% 31.1% 10.1% |
Related party balances and transactions | Balances Transactions Trade receivables Other assets Trade payables Other liabilities Revenues (expenses) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2015 Controlling shareholders Casino (i) - 5 - 1 1 - 4 - (48) (64) (76) Wilkes Participações - - - - - - - - - - (1) Euris (i) - - - - - - - 1 (3) (4) (6) Éxito (i) - - - - - - - - (1) - - Helicco Participações(i) - - - - - - - - - (1) - Subsidiaries Others - - - 1 - - - - - - 1 Associates FIC (ii) 170 54 24 14 22 14 - - 84 55 34 Other related parties Instituto Grupo Pão de Açúcar - - - - - - - - - (1) (7) Greenyellow (iii) - - - - - - 149 146 (58) (26) (10) Others - - 1 1 - - - - - (2) 1 Total 170 59 25 17 23 14 153 147 (26) (43) (64) |
13. Investments in associates (
13. Investments in associates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments In Associates Tables | |
Investments in associates | FIC BINV Other (*) Total Balances at 2015 361 20 1 382 Share of profit (loss) of associates – continued operations 76 - (16) 60 Share of profit of associates – discontinued operations 29 1 - 30 Dividends – continued operations (20) - - (20) Dividends – discontinued operations (8) - - (8) Other movements - - (9) (9) Exchange rates - - 5 5 Company reorganization (note 32) - - 7 7 Transfer to held for sale (note 32) (123) (21) (9) (153) Balances at 2016 315 - (21) 294 Share of profit(loss) of associates – continued operations 65 - (125) (60) Share of profit(loss) of associates – discontinued operations 25 1 - 26 Dividends and interest on own capital – continued operations (204) - - (204) Dividends and interest on own capital – discontinued operations (81) - - (81) Other movements - - (18) (18) Transfer to held for sale (note 32) 56 (1) - 55 Balances at 2017 176 - (164) 12 (*) Refers substantially to Cnova N.V. |
14. Property and equipment (Tab
14. Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property And Equipment Tables | |
Changes in property and equipment | Balance at 2015 Additi-ons Depre-ciation (a) Write-offs Transfers Exchange rate changes Assets held for sale and discontinued operations (*) Balance at 2016 Additi-ons Depre-ciation Write-offs (**) Transfers(***) Assets held for sale and discontinued operations(*) Balance at 2017 Land 1,464 - - (1) 36 - (85) 1,414 - - (31) (21) - 1,362 Buildings 2,023 48 (62) (24) (96) - (33) 1,856 113 (59) (225) 85 - 1,770 Leasehold improvements 3,675 213 (272) (83) 441 - (690) 3,284 295 (254) (156) 342 (19) 3,492 Machinery and equipment 1,676 295 (279) (26) 35 (1) (360) 1,340 158 (234) (77) 118 (43) 1,262 Facilities 422 175 (47) (7) 19 (5) (124) 433 109 (46) (20) 5 6 487 Furniture and fixtures 701 73 (90) (5) 28 (3) (161) 543 55 (79) (14) 60 (25) 540 Vehicles 75 1 (6) (11) - - (57) 2 - (1) (6) 5 1 1 Construction in progress 172 546 (1) (11) (450) (2) (50) 204 596 - (4) (595) (75) 126 Other 97 31 (27) (9) (7) - (22) 63 41 (21) (3) (11) (6) 63 Total 10,305 1,382 (784) (177) 6 (11) (1,582) 9,139 1,367 (694) (536) (12) (161) 9,103 Finance lease Equipment 13 - (2) (2) - - - 9 - (2) - (1) - 6 IT equipment 31 5 (14) - - - (14) 8 - (3) - - - 5 Facilities 1 - (1) - - - - - - - - - - - Furniture and fixtures 6 - - - - - - 6 - (2) - - - 4 Buildings 21 - (1) - - - - 20 - - - - - 20 72 5 (18) (2) - - (14) 43 - (7) - (1) - 35 Total 10,377 1.387 (802) (179) 6 (11) (1,596) 9,182 1,367 (701) (536) (13) (161) 9,138 |
Property and equipment | 2017 2016 Cost Accumulated depreciation Net Cost Accumulated depreciation Net Land 1,362 - 1,362 1,414 - 1,414 Buildings 2,705 (935) 1,770 2,823 (967) 1,856 Leasehold improvements 5,310 (1,818) 3,492 4,926 (1,642) 3,284 Machinery and equipment 2,828 (1,566) 1,262 2,779 (1,439) 1,340 Facilities 817 (330) 487 723 (290) 433 Furniture and fixtures 1,209 (669) 540 1,159 (616) 543 Vehicles 8 (7) 1 8 (6) 2 Construction in progress 126 - 126 204 - 204 Other 183 (120) 63 168 (105) 63 14,548 (5,445) 9,103 14,204 (5,065) 9,139 Finance lease Equipment 26 (20) 6 30 (21) 9 IT equipment 46 (41) 5 46 (38) 8 Facilities 1 (1) - 1 (1) - Furniture and fixtures 13 (9) 4 14 (8) 6 Buildings 43 (23) 20 43 (23) 20 129 (94) 35 134 (91) 43 Total 14,677 (5,539) 9,138 14,338 (5,156) 9,182 |
Reconciliation of additions to property and equipment | 2017 2016 Additions (i) 1,367 1,387 Finance lease - (5) Capitalized borrowing costs (16) (14) Property and equipment financing - Additions (ii) (553) (802) Property and equipment financing - Payments (ii) 604 699 Total 1,402 1,265 |
15. Intangible assets (Tables)
15. Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets Tables | |
Changes in intangible assets | Balance at 2015 Addi-tions Amorti-zation Write-off Transfers Assets held for sale and discontinued operations (*) Exchange rate changes Balance at 2016 Addi-tions Amorti-zation Write-off Transfer Assets held for sale and discontinued operations (*) Balance at 12.31.2017 Goodwill - retail 2,272 - - (2) - (1,116) (47) 1,107 - - - - - 1,107 Tradename - cash and carry 2,121 - - (4) 1 (2,075) (4) 39 - - - - - 39 Commercial rights - retail 650 - (2) - 6 (574) - 80 6 - - - - 86 Lease agreement – under advantageous condition 70 - (14) - - (56) - - - - - - - - Contractual rights 148 65 (28) - - (185) - - - - - - - - Software 1,127 208 (210) (70) (46) (447) (39) 523 236 (86) (9) (9) (104) 551 Software capital leasing 89 94 (31) - 83 (76) - 159 41 (46) - - (13) 141 Other 66 69 (2) (3) (52) (64) (14) - - - - - - - Total 6,543 436 (287) (79) (8) (4.593) (104) 1,908 283 (132) (9) (9) (117) 1,924 |
Intangible assets | 2017 2016 Cost Accumulated amortization Net Cost Accumulated amortization Net Goodwill - retail 2,217 (1,110) 1,107 2,217 (1,110) 1,107 Tradename - cash and carry 39 - 39 39 - 39 Commercial rights - retail (note 15.2) 86 - 86 80 - 80 Software 1,038 (487) 551 929 (406) 523 Software capital leasing 377 (236) 141 349 (190) 159 Total intangibles 3,757 (1,833) 1,924 3,614 (1,706) 1,908 |
Reconciliation of additions to intangible assets | 2017 2016 Additions 283 436 Finance lease (41) (94) Contractual rights - (65) Intangible assets financing - Payments 69 2 Total 311 279 |
16. Trade payables (Tables)
16. Trade payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade Payables Tables | |
Trade payables | 2017 2016 Product suppliers 8,554 7,763 Service suppliers 412 320 Bonuses from suppliers (note 16.2) (838) (851) 8,128 7,232 |
17. Borrowings and financing (T
17. Borrowings and financing (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings And Financing Tables | |
Debt breakdown | Weighted average rate 2017 2016 Debentures and Certificate of Agribusiness Receivables (note 17.4) 99.84% of CDI (i) 3,015 2,472 3,015 2,472 Borrowings and financing Local currency BNDES 3.88% per year 45 51 Working capital 104.80% of CDI (i) 285 1,302 Working capital TR (ii) + 9.80% per year 125 135 Finance lease (note 22) 195 215 Swap contracts (note 17.7) 101.40% of CDI (i) (19) (10) Borrowing cost (4) (6) 627 1,687 Foreign currency Working capital USD + 2.57% per year 664 1,361 Working capital EURO + 1.99% per year 200 172 Swap contracts (note 17.7) 103.53% of CDI (i) 55 177 Borrowing cost (1) - 918 1,710 Total 4,560 5,869 Noncurrent assets 28 - Current liabilities 1,251 2,957 Noncurrent liabilities 3,337 2,912 |
Changes in borrowings | At December 31, 2015 7,978 Additions - working capital 8,082 Additions - finance lease 100 Accrued interest 862 Accrued swap 920 Mark-to-market (22) Monetary and exchange rate changes (635) Borrowing cost 4 Interest paid (624) Payments (6,876) Swap paid 19 Liabilities related to assets held for sale (note 32) (3,939) At December 31, 2016 5,869 Additions - working capital 7,789 Additions - finance lease 41 Accrued interest 748 Accrued swap 114 Mark-to-market 12 Monetary and exchange rate changes 22 Borrowing cost 9 Interest paid (1,131) Payments (8,336) Swap paid (318) Liabilities related to assets held for sale (note 32) (259) At December 31, 2017 4,560 |
Maturity schedule of borrowings and financing | Year From 1 to 2 years 1,892 From 2 to 3 years 1,298 From 3 to 4 years 40 From 4 to 5 years 24 After 5 years 66 Subtotal 3,320 Borrowing costs (11) Total 3,309 |
Debentures, Promissory Note and Certificate of Agribusiness Receivables | Date Type Issue Amount Outstanding debentures (units) Issue Maturity Annual financial charges Unit price (in reais) 2017 2016 12th Issue of Debentures – CBD No preference 900 900,000 09/17/14 09/12/19 107.00% of CDI 1,023 921 939 13th Issue of Debentures – CBD and CRA No preference 1,012 1,012,500 12/20/16 12/20/19 97.50% of CDI 1,001 1,014 1,017 14th Issue of Debentures – CBD and CRA No preference 1,080 1,080,000 04/17/17 04/13/20 96.00% of CDI 1,015 1,096 - 2nd Issue of Promissory Note – CBD No preference 500 200,000 08/01/16 01/30/17 108.00% of CDI - - 530 Borrowing cost (16) (14) Total current and noncurrent 3,015 2,472 Current liabilities 481 568 Noncurrent liabilities 2,534 1,904 |
18. Financial instruments (Tabl
18. Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments Tables | |
Financial instruments | Carrying amount 2017 2016 Financial assets: Loans and receivables (including cash) Cash and cash equivalents 3,792 5,112 Trade receivables and other receivables 1,625 1,281 Related parties - assets 25 17 Financial instruments – Fair value hedge 28 - Financial liabilities: Amortized cost Related parties - liabilities (153) (147) Trade payables (8,128) (7,232) Financing for purchase of assets (116) (120) Acquisition of non-controlling interest - (7) Debentures (3,015) (2,472) Borrowings and financing (520) (1,562) Fair value through profit or loss Borrowings and financing (989) (1,835) Financial instruments – Fair value hedge (64) - |
Changes as to objectives, policies or processes | 2017 2016 Cash and cash equivalents 3,792 5,112 Financial instruments – Fair value hedge 28 - Borrowings and financing (4,588) (5,869) Other liabilities with related parties (note 18.2) (*) (145) (149) Net debt (913) (906) Shareholders’ equity (13,292) (12,597) Net debt to equity ratio 7% 7% |
Aging profile of financial liabilities | Up to 1 Year 1 – 5 years More than 5 years Total Borrowings and financing 702 659 75 1,436 Debentures and promissory notes 652 2,773 - 3,425 Derivative financial instruments 90 20 (3) 107 Finance lease 67 157 156 380 Trade payables 8,128 - - 8,128 Total 9,639 3,609 228 13,476 |
Hedge position | Notional value Fair value 2017 2016 2017 2016 Fair value hedge Hedge object (debt) 1,039 1,768 989 1,666 Long position (buy) Prefixed rate TR+9.80% per year 127 127 125 134 US$ + fixed 2.57% per year 692 1,421 663 1,362 EUR + fixed EUR+1.99% per year 220 220 200 176 1,039 1,768 988 1,672 Short position (sell) 103.29% per year (1,039) (1,768) (1,024) (1,839) Hedge position - asset - - 28 - Hedge position - liability - - (64) (167) Net hedge position - - (36) (167) |
Other financial instruments | Market projection Transactions Risk (CDI variation) Balance at 12.31.2017 Scenario I Scenario II Scenario III Fair value hedge (fixed rate) 101.44% of CDI (106) (190) (193) (196) Fair value hedge (exchange rate) 103.53% of CDI (918) (1,127) (1,147) (1,168) Debentures 107% of CDI (921) (989) (1,005) (1,022) Certificate of Agribusiness Receivables 97.50% of CDI (1,014) (1,089) (1,107) (1,126) Promissory note 96% of CDI (1,096) (1,176) (1,197) (1,217) Bank loans - CBD 104.80% of CDI (285) (306) (311) (317) Leases 100.19% of CDI (58) (62) (63) (64) Leases 100% of CDI (5) (6) (6) (6) Leases 95% of CDI (86) (92) (94) (95) Total borrowings and financing exposure (4,489) (5,037) (5,123) (5,211) Cash and cash equivalents (*) 98.07% of CDI 3,328 3,550 3,606 3,662 Net exposure (1,161) (1,487) (1,517) (1,549) Net effect - gain (loss) (326) (356) (388) (*) Weighted average |
Fair value hierarchy of financial assets and liabilities | Carrying amount Fair value 12.31.2017 12.31.2017 Level Financial instruments Cross-currency interest rate swaps (55) (55) 2 Interest rate swaps 19 19 2 Borrowings and financing (fair value) (989) (989) 2 Borrowings and financing and debentures (amortized cost) (3,535) (3,508) 2 Total (4,560) (4,533) |
Consolidated position of outstanding derivative transactions | Amount payable or receivable Fair value Description Counterparties Notional value Contractual date Maturity 2017 2016 2017 2016 Exchange swaps (US$ x CDI) Banco Tokyo US$ 75 1/14/2014 1/10/2017 - 61 - 59 Mizuho US$ 50 10/31/2014 10/31/2017 - 38 - 37 Bank of America US$ 40 9/14/2015 9/14/2017 - (26) - (25) Banco Tokyo US$ 50 7/31/2015 7/31/2017 - (6) - (6) Scotiabank US$ 50 9/30/2015 9/29/2017 - (39) - (37) Agricole EUR 50 10/7/2015 10/8/2018 (24) (54) (20) (42) Itaú BBA US$ 50 10/27/2015 1/17/2017 - (60) - (61) Bradesco US$ 50 3/3/2016 3/6/2017 - (53) - (54) Scotiabank US$ 50 1/15/2016 1/16/2018 (42) (50) (42) (47) Scotiabank US$ 50 9/29/2017 9/29/2020 9 - 9 - Banco Tokyo US$ 100 12/12/2017 12/12/2019 (3) - (2) - Interest rate swap registered with CETIP (pre-fixed rate x CDI) Itaú BBA R$ 21 11/11/2014 11/5/2026 1 1 3 2 Itaú BBA R$ 54 1/14/2015 1/5/2027 3 1 8 3 Itaú BBA R$ 52 5/26/2015 5/5/2027 2 2 8 4 (54) (185) (36) (167) |
19. Taxes and contributions p56
19. Taxes and contributions payable and taxes payable in installments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Taxes And Contributions Payable And Taxes Payable In Installments Tables | |
Taxes and contributions payable and taxes payable | 2017 2016 PIS and COFINS 52 49 Provision for income tax and social contribution 38 10 ICMS 65 75 Withholding Income Tax 13 22 Taxes payable in installments – PERT 176 - INSS 4 9 Taxes payable in installments - Law 11,941/09 (ii) 511 624 Other 8 5 867 794 Current 301 254 Noncurrent 566 540 |
Maturity schedule of taxes payable | From 1 to 2 years 105 From 2 to 3 years 99 From 3 to 4 years 99 From 4 to 5 years 82 After 5 years 181 566 |
20. Income tax and social con57
20. Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax And Social Contribution Tables | |
Reconciliation of income and social contribution tax expense | 2017 2016 2015 Income (loss) before income tax and social contribution 779 (47) 844 Credit (expense) of income tax and social contribution at the nominal rate of 25% for the Company and 34% for subsidiaries (267) (29) (259) Tax penalties (25) (26) (11) Share of profit of associates (9) 21 28 Interest on own capital 16 13 - Other permanent differences (nondeductible) (12) (3) 13 Effective income tax and social contribution (297) (24) (229) Income tax and social contribution for the year: Current (171) (126) (156) Deferred (126) 102 (73) Income tax and social contribution expense (297) (24) (229) Effective rate 38,13% (51.06)% 27.13% |
Breakdown of deferred income tax and social contribution | 2017 2016 Assets Liabilities Net Assets Liabilities Net Tax losses and negative basis of social contribution 200 - 200 112 - 112 Provision for risks 289 - 289 347 - 347 Goodwill tax amortization - (585) (585) - (531) (531) Mark-to-market adjustment - (7) (7) - (8) (8) Technological innovation – future realization - (13) (13) - (16) (16) Depreciation of fixed assets as per tax rates - (112) (112) - (81) (81) Unrealized gains with tax credits (note 11) - (185) (185) - - - Other 145 (5) 140 30 - 30 Deferred income tax and social contribution assets (liabilities) 634 (907) (273) 489 (636) (147) Compensation (513) 513 - (319) 319 - Deferred income tax and social contribution assets (liabilities) , net 121 (394) (273) 170 (317) (147) |
Recovery of deferred tax assets | Up to one year 163 From 1 to 2 years 175 From 2 to 3 years 117 From 3 to 4 years 123 From 4 to 5 years 56 634 |
Changes in deferred income tax and social contribution | 2017 2016 2015 At the beginning of the year (147) (778) (642) Expense for the year – Continued operations (126) 102 (73) Expense for the year – Discontinued operations 164 11 (63) Morzan arbitration (see note 1.1) - - 50 Cnova N.V. IPO cost - - (46) Corporate restructuring - (4) - Special program on tax settlements – PERT – Discontinued operations – use of tax loss (89) - - Exchange rate variation - (10) 29 Assets held for sale and discontinued operations (see note 32) (75) 522 - Other - 10 (33) At the end of the year (273) (147) (778) |
21. Provision for contingenci58
21. Provision for contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provision For Contingencies Tables | |
Provision for contingencies | PIS/COFINS Taxes and other Social security and labor Civil Regulatory Total Balance at December 31, 2015 103 414 597 248 34 1,396 Additions 91 325 680 291 35 1,422 Payments - (29) (251) (125) (10) (415) Reversals (4) (19) (153) (140) (26) (342) Monetary adjustment 14 38 79 38 6 175 Exchange rate changes - (2) (2) (8) - (12) Liabilities related to assets available to sell and discontinued operations (see Note 32) (56) (141) (648) (195) (7) (1,047) Balance at December 31, 2016 148 586 302 109 32 1,177 Additions 162 125 856 241 44 1,428 Payments - (37) (301) (94) (15) (447) Reversals (114) (102) (328) (178) (31) (753) Transfer to instalments taxes (42) (89) - - - (131) Monetary adjustment (26) 38 116 34 5 167 Liabilities related to assets available to sell and discontinued operations (see Note 32) (54) 42 (314) (7) (1) (334) Balance at December 31, 2017 74 563 331 105 34 1,107 |
Judicial deposits | 2017 2016 Tax 204 181 Labor 474 414 Civil and other 42 26 Regulatory 42 40 Total 762 661 |
Guarantees | Lawsuits Property and equipment Letter of guarantee Total 2017 2016 2017 2016 2017 2016 Tax 858 851 7,324 6,867 8,182 7,718 Labor 3 3 91 26 94 29 Civil and other - - 125 53 125 53 Regulatory 6 9 154 111 160 120 Total 867 863 7,694 7,057 8,561 7,920 |
22. Leasing transactions (Table
22. Leasing transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leasing Transactions Tables | |
Minimum rental payment on termination | 2017 2016 Minimum payments on the termination date 392 339 392 339 |
Contingent lease payments | Expenses (Income) for the year 2017 2016 Contingent payments 484 504 Non contingent payments 453 368 Sublease rentals (*) (174) (145) (*) Refers to lease agreements receivable from commercial shopping malls. |
Finance lease | 2017 2016 Financial lease liability –minimum rental payments: Up to 1 year 51 41 1 - 5 years 117 144 Over 5 years 27 30 Present value of finance lease agreements 195 215 Future financing charges 185 207 Gross amount of finance lease agreements 380 422 |
23. Deferred revenue (Tables)
23. Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Revenue Tables | |
Liabilities related to assets held to sale | 2017 2016 Additional or extended warranties 27 35 Barter agreement 14 12 Services rendering agreement - Allpark 13 15 Back lights 104 85 Future revenue agreement (note 23.1) - 100 Others 10 1 168 248 Current 146 224 Noncurrent 22 24 |
24. Shareholders' equity (Table
24. Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders Equity Tables | |
Former stock option plan, stock option plan and compensation plan | Exercise price Lot of shares Series granted Grant date 1st date of exercise Expiration date At the grant date End of the year Number of shares granted (in thousands) Exercised Not exercised by dismissal Expired Total in effect Balance at December 31, 2017 Series B1 5/30/2014 6/1/2017 11/30/2017 0.01 0.01 239 (166) (73) - - Series C1 5/30/2014 6/1/2017 11/30/2017 83.22 83.22 239 (12) (108) (119) - Series B2 5/29/2015 6/1/2018 11/30/2018 0.01 0.01 337 (119) (37) - 181 Series C2 5/29/2015 6/1/2018 11/30/2018 77.27 77.27 337 - (71) - 266 Series B3 5/30/2016 5/30/2019 11/30/2019 0.01 0.01 823 (246) (41) - 536 Series C3 5/30/2016 5/30/2019 11/30/2019 37.21 37.21 823 (130) (42) - 651 Series B4 5/30/2017 5/31/2020 11/30/2020 0.01 0.01 537 (146) (11) - 380 Series C4 5/30/2017 5/31/2020 11/30/2020 56.78 56.78 537 (1) (11) - 525 3.872 (820) (394) (119) 2.539 Exercise price Lot of shares Series granted Grant date 1st date of exercise Expiration date At the grant date End of the year Number of shares granted (in thousands) Exercised Not exercised by dismissal Expired Total in effect Balance at December 31, 2016 Series A6 - Gold 3/15/2012 3/31/2015 3/31/2016 0.01 0.01 526 (490) (36) - - Series A6 - Silver 3/15/2012 3/31/2015 3/31/2016 64.13 64.13 526 (490) (36) - - Series A7 - Gold 3/15/2013 3/31/2016 3/31/2017 0.01 0.01 358 (231) (43) - 84 Series A7 - Silver 3/15/2013 3/31/2016 3/31/2017 80.00 80.00 358 (230) (43) - 85 Series B1 5/30/2014 6/1/2017 11/30/2017 0.01 0.01 239 (27) (58) - 154 Series C1 5/30/2014 6/1/2017 11/30/2017 83.22 83.22 239 (11) (84) - 144 Series B2 5/29/2015 6/1/2018 11/30/2018 0.01 0.01 337 (75) (32) - 230 Series C2 5/29/2015 6/1/2018 11/30/2018 77.27 77.27 337 - (55) - 282 Series B3 5/30/2016 5/30/2019 11/30/2019 0.01 0.01 823 (165) (28) - 630 Series C3 5/30/2016 5/30/2019 11/30/2019 37.21 37.21 823 (10) (28) - 785 4,566 (1,729) (443) - 2,394 |
Maximum percentage of interest dilution | 12.31.2017 12.31.2016 Number of shares 266,579 266,076 Balance of effective stock options granted 2,539 2,394 Maximum percentage of dilution 0.95% 0.90% |
Stock option activity | Shares Weighted average of exercise price Weighted average of remaining contractual term At December 31, 2016 Granted during the year 1,645 18.61 Cancelled during the year (144) 40.40 Exercised during the year (374) 13.39 Outstanding at the end of the year 2,394 29.21 1.84 Total to be exercised at December 31, 2016 2,394 29.21 1.84 At December 31, 2017 Granted during the period 1,073 28.40 Cancelled during the period (110) 40.56 Exercised during the period (699) 22.14 Expired during the period (119) 83.22 Outstanding at the end of the period 2,539 29.48 1.53 Total to be exercised at December 31, 2017 2,539 29.48 1.53 |
Transactions with non-controlling shareholders | 2017 Controlling shareholders’ Non-controlling interest Consolidated Other transactions with non-controlling interest (2) - (2) 2016 (*) Change in Cnova’s Brasil interest (127) 127 - Change in Cdiscount’s interest 1 7 8 Payment in shares exchange between Cnova N.V. by Cnova Brasil (20) (27) (47) Share of profit of associates on shares change effect at Cdiscount 14 - 14 Sale of subsidiary Cdiscount (11) 45 34 Other transactions with non-controlling interest 5 13 18 (138) 165 27 2015 Company reorganization and NPC debt (36) - (36) Other transactions with non-controlling interest (7) (1) (8) (43) (1) (44) (*) See note 32.1 |
Dividends proposed | Proposed dividends 2017 2016 Net income (loss) for the year 619 (482) Legal reserve (31) - Calculation basis of dividends 588 - Mandatory minimum dividends – 25% 147 - Payment of interim dividends as interest on own capital, net of withholding taxes (69) - Dividends payable 78 - |
25. Net operating revenue (Tabl
25. Net operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Operating Revenue Tables | |
Net operating revenue | 2017 2016 2015 Gross sales Goods 48,597 45,267 40,519 Services rendered 365 294 355 Sales returns and cancellations (523) (592) (632) 48,439 44,969 40,242 Taxes on sales (3,805) (3,515) (3,044) Net operating revenues 44,634 41,454 37,198 |
26. Expenses by nature (Tables)
26. Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Expenses By Nature Tables | |
Expenses by nature | 2017 2016 2015 Cost of inventories (32,425) (30,473) (26,817) Personnel expenses (4,691) (4,503) (4,011) Outsourced services (648) (587) (523) Functional expenses (2,376) (2,304) (2,079) Selling expenses (1,003) (953) (951) Other expenses (564) (564) (430) (41,707) (39,384) (34,811) Cost of sales (33,931) (31,933) (28,123) Selling expenses (6,804) (6,567) (5,922) General and administrative expenses (972) (884) (766) (41,707) (39,384) (34,811) |
27. Other operating expenses,64
27. Other operating expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Operating Expenses Net Tables | |
Other operating expenses, net | 2017 2016 2015 Tax installments and other tax risks (a) (217) (357) (22) Restructuring expenses (b) (107) (99) (116) Losses on disposal of fixed assets (c) (247) (99) (44) Other (8) (12) (24) (579) (567) (206) |
28. Financial results, net (Tab
28. Financial results, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Results Net Tables | |
Financial results, net | 2017 2016 2015 Finance expenses: Cost of debt (498) (705) (698) Cost of the discounting receivables (144) (163) (120) Monetary restatement loss (131) (174) (213) Other finance expenses (138) (92) (91) Total financial expenses (911) (1,134) (1,122) Financial income: Income from short term instruments 38 84 171 Monetary restatement gain 137 137 182 Other financial income 6 10 1 Total financial income 181 231 354 Total (730) (903) (768) |
29. Earnings per share (Tables)
29. Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share Tables | |
Earnings per share | 2017 2016 2015 Preferred Common Total Preferred Common Total Preferred Common Total Basic numerator Net income (loss) allocated to common and preferred shareholders – continued operations 312 170 482 (44) (27) (71) 397 218 615 Net income (loss) allocated to common and preferred shareholders - discontinued operations 89 48 137 (257) (154) (411) (226) (124) (350) Net income (loss) allocated to common and preferred shareholders 401 218 619 (301) (181) (482) 171 94 265 Basic denominator (millions of shares) Weighted average of shares 166 100 266 166 100 266 166 100 266 Basic earnings per millions of shares (R$) – continued operations 1.87356 1.70324 (0.26891) (0.26891) 2.39760 2.17964 Basic earnings per millions of shares (R$) - discontinued operations 0.53335 0.48487 (1.54778) (1.54778) (1.36515) (1.24104) Basic earnings per millions of shares (R$) - total 2.40692 2.18810 (1.81669) (1.81669) 1.03245 0.93859 Diluted numerator Net income (loss) allocated to common and preferred shareholders – continued operations 312 170 482 (44) (27) (71) 397 218 615 Net income (loss) allocated to common and preferred shareholders - discontinued operations 89 48 137 (257) (154) (411) (226) (124) (350) Net income (loss) allocated to common and preferred shareholders 401 218 619 (301) (181) (482) 171 94 265 Diluted denominator Weighted average of shares (in millions) 166 100 266 166 100 266 166 100 266 Stock call option 1 - 1 - - - - - - Diluted weighted average of shares (millions) 167 100 267 166 100 266 166 100 266 Diluted earnings per millions of shares (R$) – continued operations 1.86188 1.69955 (0.26891) (0.26891) 2.39222 2.17964 Diluted earnings per millions of shares (R$) – discontinued operations 0.52887 0.48118 (1.54778) (1.54778) (1.36515) (1.24104) Diluted earnings per millions of shares (R$) – total 2.39074 2.18073 (1.81669) (1.81669) 1.03014 0.93859 |
30. Segment information (Tables
30. Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information Tables | |
Segment information | Food retail (*) Cash & Carry Assets held for sale and discontinued operations (**) Subtotal Eliminations/ Others (***) Total Description 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net operating revenue 26,194 26,967 26,745 18,440 14,487 10,453 - - 44,634 41,454 37,198 - - 44,634 41,454 37,198 Gross profit 7,762 7,351 7,538 2,941 2,170 1,537 - - 10,703 9,521 9,075 - - 10,703 9,521 9,075 Depreciation and amortization (604) (576) (552) (175) (131) (98) - - (779) (707) (650) - - (779) (707) (650) Profit from operations before net financial expenses and share of profit of associates 747 319 1,194 822 477 337 - - 1,569 796 1,531 - - 1,569 796 1,531 Net financial expense (682) (808) (691) (48) (95) (77) - - (730) (903) (768) - - (730) (903) (768) Share of profit of subsidiaries and associates 64 77 81 - - - - - 64 77 81 (124) (17) (60) 60 81 Profit(loss) before income tax and social contribution 129 (413) 584 774 383 260 - - 903 (30) 844 (124) (17) 779 (47) 844 Income tax and social contribution (63) 76 (140) (234) (100) (89) - - (297) (24) (229) - - (297) (24) (229) Net income (loss) for continued operations 66 (337) 444 540 283 171 - - 606 (54) 615 (124) (17) 482 (71) 615 Net income (loss) for discontinued operations (33) (78) (74) - - - 416 (927) (817) 383 (1,005) (891) - - 383 (1,005) (891) Net income (loss) of year end 33 (415) 370 540 283 171 416 (927) (817) 989 (1,059) (276) (124) (17) 865 (1,076) (276) Current assets 7,202 8,938 3,093 2,417 23,182 20,538 33,477 31,893 (257) (242) 33,220 31,651 Noncurrent assets 11,168 10,955 3,568 2,620 - - 14,736 13,575 (28) (9) 14,708 13,566 Current liabilities 7,966 9,171 3,414 3,020 17,897 15,642 29,277 27,833 (285) (251) 28,992 27,582 Noncurrent liabilities 4,943 4,747 701 291 - - 5,644 5,038 - - 5,644 5,038 Shareholders' equity 5,461 5,975 2,546 1,726 5,285 4,896 13,292 12,597 - - 13,292 12,597 (*) Food retail includes GPA Malls & Properties. (**) See note 32. (***) The eliminations consist of intercompany balances. In the management’s view, the net earnings eliminations are made inside of own segment, besides, the equity pickup of the Company in Luxco. |
Company general information | 2017 2016 2015 Extra 16,110 16,776 17,032 Assaí 18,440 14,487 10,454 Pão de Açúcar 6,659 6,711 6,491 Proximidade 1,085 1,131 946 Other business 2,340 2,349 2,275 Total net operating revenue 44,634 41,454 37,198 |
32. Non current assets held f68
32. Non current assets held for sale and discontinued operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non Current Assets Held For Sale And Discontinued Operations Tables | |
Statement of operations, balance sheet and cash flow statement of Cdiscount before the eliminations | Balance sheet: 10.31.2016 Assets Current Cash and cash equivalents 621 Trade receivables, net 365 Inventories, net 900 Other current assets 129 Total current assets 2,015 Noncurrent Deferred income tax and social contribution 38 Related parties 520 Other noncurrent assets 14 Property and equipment, net 46 Intangible assets, net 423 Total noncurrent assets 1,041 Total assets 3,056 Liabilities Current Trade payable, net 1,319 Related parties 1,300 Other current liabilities 363 Total current liabilities 2,982 Noncurrent Provision for risks 52 Other noncurrent liabilities 17 Total noncurrent liabilities 69 Shareholders’ equity 5 Total liabilities and shareholders’ equity 3,056 32.1. Interest change on Cnova N.V Investment – Continued Statement of operations 10.31.2016 12.31.2015 Net operating revenue 5,509 6,598 Cost of sales (4,973) (6,025) Gross profit 536 573 Operating income (expenses) Selling, general and administrative expenses (527) (662) Depreciation and amortization (63) (74) Other operating expenses, net (69) (168) (659) (904) Loss from operations before financial expenses (123) (331) Financial expenses, net (9) 27 Loss before income tax and social contribution (132) (304) Income tax and social contribution (24) (61) Net loss from discontinued operations (156) (365) Attributed to: Controlling shareholders (48) (113) Non-controlling shareholders (108) (252) In addition to statement of operations of October 31, 2016, the net loss of discontinued operations consider R$(9) related to the November and December net loss, amounting to R$(165). Statements of cash flow 10.31.2016 12.31.2015 Cash flow used in operating activities (998) (730) Cash flow provided by (used in) investing activities 54 (112) Cash flow from financing activities 950 404 Exchange rate in cash and cash equivalents (24) 92 Net increase (decrease) in cash and cash equivalents (18) (346) |
Statement of operations, balance sheet and cash flow statement of Via Varejo before the eliminations | Balance sheet (*): 12.31.2017 12.31.2016 Assets Current Cash and cash equivalents 3,559 4,030 Trade receivables, net (i) 3,988 2,782 Inventories, net 4,379 3,054 Recoverable taxes 219 581 Other current assets 168 123 Total current assets 12,313 10,570 Noncurrent Trade receivables, net 224 204 Recoverable taxes 2,725 2,317 Other accounts receivable, net 940 615 Deferred income tax and social contribution 354 289 Related parties 539 681 Investment properties 89 144 Property and equipment, net 1,711 1,550 Intangible assets, net 4,287 4,170 Total noncurrent assets 10,869 9,970 Total assets 23,182 20,540 Balance sheet (*): Liabilities 12.31.2017 12.31.2016 Current Trade payable, net 7,726 5,618 Structured payable program 437 489 Borrowings and financing (i) 3,802 3,532 Related parties 139 189 Other current liabilities (ii) 2,177 2,231 Total current liabilities 14,281 12,059 Noncurrent Borrowings and financing (i) 397 407 Deferred income tax and social contribution 839 849 Other noncurrent liabilities (ii) 2,380 2,329 Total noncurrent liabilities 3,616 3,585 Shareholders’ equity 5,285 4,896 Total liabilities and shareholders’ equity 23,182 20,540 (*) Before intercompany eliminations with GPA in the amount R$243 of assets and R$73 of liabilities. In the total balance held for sale of the balance sheet as of December 31, 2017, R$22 refers to the reclassification of CBD land to available for sale. (i) Includes financed sales through CDCI, whose value on December 31, 2017 is R$ 2,382 in assets (R$ 2,138 at December 31, 2016) and R$ 3,466 in liabilities (R$ 3,002 on December 31, 2016). (ii) Includes balance of R$1,374 on December 31, 2017 (R$1,662 on December 31, 2016) of deferred revenue related to the advance received from Zurich Seguros (extended warranty and insurance) and from Bradesco (cards transactions and bank correspondent). Statement of operations (*) 2017 2016 2015 Net operating revenue 25,690 23,215 25,447 Cost of sales (17,343) (16,201) (18,780) Gross profit 8,347 7,014 6,667 Operating income (expenses) Selling, general and administrative expenses (6,791) (6,084) (5,680) Depreciation and amortization - (207) (237) Other operating expenses, net (218) (389) (231) (7,009) (6,680) (6,148) Profit from operations before financial expenses and share of profit of associates 1,338 334 519 Financial expenses, net (770) (1,075) (899) Share of profit of associates 26 30 31 Income (loss) before income tax and social contribution 594 (711) (349) Income tax and social contribution (161) (34) (87) Net income (loss) for the year 433 (745) (436) Attributed to: Controlling shareholders 187 (268) (148) Non-controlling shareholders 246 (477) (288) (*) Via Varejo began to consolidate Cnova Brasil on October 31, 2016, as such the net loss of 2016 and 2015 above is the sum of the results of Via Varejo and Cnova Brasil with the eliminations from January 1st, 2016. Before eliminations of amounts of related parties with GPA. Description 2017 2016 2015 Net operating revenue (36) (22) (24) Cost of sales (8) (7) (6) Selling costs - 1 2 General and administrative expenses (1) - - Financial expenses, net 21 5 6 Income tax and social contribution 6 6 6 Total (18) (17) (16) Additionally incurred costs related to indemnity costs of contingences from prior periods were reclassified to discontinued operations in the amount of R$32 in 2017 (R$77 in 2016) in line with IFRS 5 requirements. Cash flows from discontinued operations 2017 2016 2015 Cash flow provided by (used in) operating activities 70 (2,636) 2,445 Net cash used in investing activities (333) (237) (420) Net cash provided by (used in) financing activities (208) 226 (658) Cash variation for the year (471) (2,647) 1,367 |
33. Insurance coverage (Tables)
33. Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Coverage Tables | |
Insurance coverage | Insured assets Covered risks Amount insured Property and equipment and inventories Assigning profit 16,369 Profit Loss of profits 8,338 Cars and Others (*) Damages 412 |
3. Basis of consolidation (Deta
3. Basis of consolidation (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Associate 1 | ||
Disclosure of associates [line items] | ||
Associate name | Cnova N.V (Cnova Holanda) (**) | Cnova N.V (Cnova Holanda) |
Equity interests in associate | 34.00% | 34.00% |
Associate 2 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Group S.A.S. (CDiscount) (**) | Cdiscount Group S.A.S. (CDiscount) |
Equity interests in associate | 34.00% | 34.00% |
Associate 3 | ||
Disclosure of associates [line items] | ||
Associate name | Cnova Finança B.V. (Cnova Finança) (**) | Cnova Finança B.V. (Cnova Finança) |
Equity interests in associate | 34.00% | 34.00% |
Associate 4 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Afrique SAS (Cdiscount Afrique) (**) | Cdiscount Afrique SAS (Cdiscount Afrique) |
Equity interests in associate | 34.00% | 34.00% |
Associate 5 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount International BV The Netherlands (Cdiscount Internacional) (**) | Cdiscount International BV The Netherlands (Cdiscount Internacional) |
Equity interests in associate | 34.00% | 34.00% |
Associate 6 | ||
Disclosure of associates [line items] | ||
Associate name | Cnova France SAS (Cnova France) (**) | Cnova France SAS (Cnova France) |
Equity interests in associate | 34.00% | 34.00% |
Associate 7 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount S.A. (Cdiscount) (**) | Cdiscount S.A. (Cdiscount) |
Equity interests in associate | 34.00% | 34.00% |
Associate 8 | ||
Disclosure of associates [line items] | ||
Associate name | 3W SAS (3W) (**) (***) | 3W SAS (3W) |
Equity interests in associate | 0.00% | 34.00% |
Associate 9 | ||
Disclosure of associates [line items] | ||
Associate name | CD Africa SAS (CD Africa) (**) (***) | CD Africa SAS (CD Africa) |
Equity interests in associate | 0.00% | 29.00% |
Associate 10 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Côte d'Ivoire SAS Ivory Coast (Cdiscount Côte) (**) | Cdiscount Côte d'Ivoire SAS Ivory Coast (Cdiscount Côte) |
Equity interests in associate | 34.00% | 29.00% |
Associate 11 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Sénégal SAS (Cdiscount Sénégal) (**) | Cdiscount Sénégal SAS (Cdiscount Sénégal) |
Equity interests in associate | 34.00% | 29.00% |
Associate 12 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Cameroun SAS (Cdiscount Cameroun) (**) | Cdiscount Cameroun SAS (Cdiscount Cameroun) |
Equity interests in associate | 34.00% | 29.00% |
Associate 13 | ||
Disclosure of associates [line items] | ||
Associate name | CLatam AS Uruguay (CLatam) (**) | CLatam AS Uruguay (CLatam) |
Equity interests in associate | 24.00% | 24.00% |
Associate 14 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Panama S.A. (Cdiscount Panama) (**) | Cdiscount Panama S.A. (Cdiscount Panama) |
Equity interests in associate | 24.00% | 24.00% |
Associate 15 | ||
Disclosure of associates [line items] | ||
Associate name | Cdiscount Uruguay S.A. (Cdiscount Uruguay) (**) | Cdiscount Uruguay S.A. (Cdiscount Uruguay) |
Equity interests in associate | 24.00% | 24.00% |
Associate 16 | ||
Disclosure of associates [line items] | ||
Associate name | Ecdiscoc Comercializadora S.A.(Cdiscount Ecuador) (Ecdiscoc Comercializadora) (**) | Ecdiscoc Comercializadora S.A.(Cdiscount Ecuador) (Ecdiscoc Comercializadora) |
Equity interests in associate | 24.00% | 24.00% |
Associate 17 | ||
Disclosure of associates [line items] | ||
Associate name | Cnova Pay (Cnova Pay) | Cnova Pay (Cnova Pay) |
Equity interests in associate | 34.00% | 0.00% |
Associate 18 | ||
Disclosure of associates [line items] | ||
Associate name | BeezUP SAS (BeezUp) | BeezUP SAS (BeezUp) |
Equity interests in associate | 20.00% | 0.00% |
Associate 19 | ||
Disclosure of associates [line items] | ||
Associate name | Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (FIC) | Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (FIC) |
Equity interests in associate | 42.00% | 42.00% |
Associate 20 | ||
Disclosure of associates [line items] | ||
Associate name | Banco Investcred Unibanco S.A. (BINV) | Banco Investcred Unibanco S.A. (BINV) |
Equity interests in associate | 22.00% | 22.00% |
Associate 21 | ||
Disclosure of associates [line items] | ||
Associate name | FIC Promotora de Vendas Ltda. (FIC Promotora) | FIC Promotora de Vendas Ltda. (FIC Promotora) |
Equity interests in associate | 42.00% | 42.00% |
Subsidiary 1 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Novasoc Comercial Ltda. (Novasoc) (****) | Novasoc Comercial Ltda. (Novasoc) |
Equity interests in subsidiary | 100.00% | 10.00% |
Subsidiary 2 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Sendas Distribuidora S.A. (Sendas) | Sendas Distribuidora S.A. (Sendas) |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 3 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Bellamar Empreend. e Participações Ltda. (Bellamar) | Bellamar Empreend. e Participações Ltda. (Bellamar) |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 4 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (GPA M&P) | GPA Malls & Properties Gestão de Ativos e Serviços Imobiliários Ltda. (GPA M&P) |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 5 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | CBD Holland B.V. (CBD Holland) | CBD Holland B.V. (CBD Holland) |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 6 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | GPA 2 Empreed. e Participações Ltda. (GPA 2) | GPA 2 Empreed. e Participações Ltda. (GPA 2) |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 7 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | GPA Logística e Transporte Ltda. (GPA Logística) | GPA Logística e Transporte Ltda. (GPA Logística) |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 8 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Via Varejo S.A. (Via Varejo) (*) | Via Varejo S.A. (Via Varejo) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 9 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Via Varejo Luxembourg Holding S.à.r.l. (VVLuxco) (*) | Via Varejo Luxembourg Holding S.à.r.l. (VVLuxco) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 10 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Via Varejo Netherlands Holding B.V. (VVDutchco) (*) | Via Varejo Netherlands Holding B.V. (VVDutchco) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 11 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Indústria de Móveis Bartira Ltda. (Bartira) (*) | Indústria de Móveis Bartira Ltda. (Bartira) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 12 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (VVLOG Logística) (*) | VVLOG Logística Ltda. (PontoCred Negócio de Varejo Ltda.) (VVLOG Logística) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 13 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Globex Adm. e Serviços Ltda. (Globex Adm) (*) | Globex Adm. e Serviços Ltda. (Globex Adm) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 14 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Lake Niassa Empreend. e Participações Ltda. (Lake Niassa) (*) | Lake Niassa Empreend. e Participações Ltda. (Lake Niassa) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 15 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Globex Adm. Consórcio Ltda. (Globex Adm. Consórcio) (*) | Globex Adm. Consórcio Ltda. (Globex Adm. Consórcio) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 16 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Cnova Comércio Eletrônico S.A. (Cnova Brasil) (*) | Cnova Comércio Eletrônico S.A. (Cnova Brasil) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 17 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | E-Hub Consult. Particip. e Com. S.A. (E Hub) (*) | E-Hub Consult. Particip. e Com. S.A. (E Hub) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 18 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Nova Experiência PontoCom S.A. (Nova Experiência) (*) | Nova Experiência PontoCom S.A. (Nova Experiência) |
Equity interests in subsidiary | 43.00% | 43.00% |
Subsidiary 19 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco") | Companhia Brasileira de Distribuição Luxembourg Holding S.à.r.l. ("CBDLuxco") |
Equity interests in subsidiary | 100.00% | 100.00% |
Subsidiary 20 | ||
Disclosure of subsidiaries [line items] | ||
Subsidiary name | Companhia Brasileira de Distribuição Netherlands Holding B.V. (CBDDutchco) | Companhia Brasileira de Distribuição Netherlands Holding B.V. (CBDDutchco) |
Equity interests in subsidiary | 100.00% | 100.00% |
3. Basis of consolidation (De71
3. Basis of consolidation (Details 1) - BRL (R$) R$ in Millions | 10 Months Ended | 12 Months Ended | |||
Oct. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of associates [line items] | |||||
Current assets | R$ 33220 | R$ 31651 | |||
Noncurrent assets | 14,708 | 13,566 | |||
Total assets | 47,928 | 45,217 | |||
Current liabilities | 28,992 | 27,582 | |||
Noncurrent liabilities | 5,644 | 5,038 | |||
Shareholders' equity | 13,292 | 12,597 | R$ 13352 | R$ 14194 | |
Total liabilities and shareholders' equity | 47,928 | 45,217 | |||
Revenues | 44,634 | 41,454 | 37,198 | ||
Operating income | 1,569 | 796 | 1,531 | ||
Net income (loss) for the year | 865 | (1,076) | (276) | ||
FIC | |||||
Disclosure of associates [line items] | |||||
Current assets | 4,621 | 4,060 | |||
Noncurrent assets | 69 | 43 | |||
Total assets | 4,690 | 4,103 | |||
Current liabilities | 4,026 | 3,050 | |||
Noncurrent liabilities | 11 | 15 | |||
Shareholders' equity | 653 | 1,038 | |||
Total liabilities and shareholders' equity | 4,690 | 4,103 | |||
Revenues | 988 | 1,118 | 1,118 | ||
Operating income | 321 | 386 | 370 | ||
Net income (loss) for the year | 184 | 236 | 226 | ||
Cnova N.V. | |||||
Disclosure of associates [line items] | |||||
Current assets | R$ 2015 | 2,836 | 1,457 | ||
Noncurrent assets | 1,041 | 796 | 501 | ||
Total assets | 3,056 | 3,632 | 1,958 | ||
Current liabilities | 2,982 | 3,941 | 1,948 | ||
Noncurrent liabilities | 69 | 174 | 70 | ||
Shareholders' equity | 5 | (483) | (60) | ||
Total liabilities and shareholders' equity | 3,056 | 3,632 | 1,958 | ||
Revenues | 5,509 | 7,651 | 7,187 | 6,599 | |
Operating income | (123) | (72) | (146) | (331) | |
Net income (loss) for the year | R$ 156 | R$ 367 | R$ 224 | R$ 319 |
4. Significant accounting pol72
4. Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 40 years |
Leasehold Improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 24 years |
Data processing equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 5 years |
Software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 10 years |
Facilities | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 12 years |
Furniture and fixtures | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 9 years |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 5 years |
Machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 11 years |
Decoration | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average useful life | 5 years |
5. Adoption of standards, ame73
5. Adoption of standards, amendments/interpretations of existing standards and standards issued but not yet effective (Details) | 12 Months Ended |
Dec. 31, 2017 | |
New/Amended Standard 1 | |
Disclosure of initial application of standards or interpretations [line items] | |
Changes to IFRS and new interpretations of mandatory application starting at the current year | Statement: Annual improvements to IFRS: 2015 – 2017 cycle Description: Amendments to IFRS 12 - Disclosure of interests in other entities - clarification of the scope statements. Impact: The adoption of this standard had no significant impact on the consolidated financial statements. |
New/Amended Standard 2 | |
Disclosure of initial application of standards or interpretations [line items] | |
Changes to IFRS and new interpretations of mandatory application starting at the current year | Statement: IAS 12 – Deferred tax income recognize for unrealized losses Description: Describes the treatment of temporary difference. Impact: The adoption of this standard had no significant impact on the consolidated financial statements. |
New/Amended Standard 3 | |
Disclosure of initial application of standards or interpretations [line items] | |
Changes to IFRS and new interpretations of mandatory application starting at the current year | Statement: IAS 7 – Initiatives to improve disclosures Description: Describes about disclosures that enable users to evaluate the changes in liabilities related to financing activities. Impact: The adoption of this standard had no significant impact on the consolidated financial statements. |
5. Adoption of standards, ame74
5. Adoption of standards, amendments/interpretations of existing standards and standards issued but not yet effective (Details) | 12 Months Ended |
Dec. 31, 2017 | |
New/Amended Standard 1 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New and revised standards already issued but not yet adopted | Pronouncement: IFRS 9 – Financial Instruments Description: Several changes in classification and measurement, measurement of impairment and hedge accounting. |
Applicable to annual periods beginning on or after | Jan. 1, 2018 |
New/Amended Standard 2 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New and revised standards already issued but not yet adopted | Pronouncement: IFRS 15 – Revenue from contracts with customers Description: Applies a five-step model and a definitive guide as when to recognize revenue. It also introduces new disclosures. |
Applicable to annual periods beginning on or after | Jan. 1, 2018 |
New/Amended Standard 3 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New and revised standards already issued but not yet adopted | Pronouncement: IFRS 16 – Leases Description: Requires a review on lease arrangements for both lessors and lessees, replacing IAS 17. The definitions of operating lease disappear, except for short-term leases and contracts involving immaterial items. |
Applicable to annual periods beginning on or after | Jan. 1, 2019 |
New/Amended Standard 4 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New and revised standards already issued but not yet adopted | Pronouncement: IFRS 2 – Classification and measurement of share based payment Description: Between other changes describes modifications of settled options of shares. |
Applicable to annual periods beginning on or after | Jan. 1, 2018 |
New/Amended Standard 5 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
New and revised standards already issued but not yet adopted | Pronouncement: IFRS 10 and IAS 28 improvements – Sale or asset contribution, between investor and associate or Joint Venture Description: In case of assets sale, or asset contribution, between investor and associates or joint venture, the transaction will only be recognized in profit and loss if the transaction is done with an unrelated third party. |
Applicable to annual periods beginning on or after | Jan. 1, 2018 |
7. Cash and cash equivalents (D
7. Cash and cash equivalents (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||
Cash and cash equivalents | R$ 3792 | R$ 5112 |
Cash and banks - Brazil | ||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||
Cash and cash equivalents | 396 | 349 |
Cash and banks - Abroad | ||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||
Cash and cash equivalents | 68 | 66 |
Short-term investments - Brazil | ||
DisclosureOfCashAndCashEquivalentsLineItems [Line Items] | ||
Cash and cash equivalents | R$ 3328 | R$ 4697 |
8. Trade receivables (Details)
8. Trade receivables (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | R$ 712 | R$ 543 |
Trade receivables, current | 632 | 543 |
Trade receivables, noncurrent | 80 | 0 |
Credit card companies | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 246 | 187 |
Credit card companies - related parties | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 170 | 54 |
Sales vouchers | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 147 | 142 |
Private label credit card | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 74 | 62 |
Receivables from related parties | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 0 | 5 |
Receivables from suppliers | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 79 | 95 |
Allowance for doubtful accounts | ||
DisclosureOfTradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | R$ 4 | R$ 2 |
8. Trade receivables (Details 1
8. Trade receivables (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trade Receivables Details 1 | |||
At the beginning of the year | R$ 2 | R$ 392 | R$ 354 |
Provision for loss | (722) | (609) | (556) |
Write-off of receivables | 621 | 561 | 544 |
Assets held for sale and discontinued operations | 99 | 422 | 0 |
Exchange rate changes | 0 | 16 | (26) |
At the end of the year | R$ 4 | R$ 2 | R$ 392 |
8. Trade receivables (Details 2
8. Trade receivables (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfGrossReceivablesLineItems [Line Items] | ||
Gross receivables | R$ 716 | R$ 545 |
Not overdue | ||
DisclosureOfGrossReceivablesLineItems [Line Items] | ||
Gross receivables | 685 | 524 |
Less than 30 days | ||
DisclosureOfGrossReceivablesLineItems [Line Items] | ||
Gross receivables | 15 | 13 |
30-60 days | ||
DisclosureOfGrossReceivablesLineItems [Line Items] | ||
Gross receivables | 5 | 6 |
61-90 days | ||
DisclosureOfGrossReceivablesLineItems [Line Items] | ||
Gross receivables | 2 | 1 |
Greater than 90 days | ||
DisclosureOfGrossReceivablesLineItems [Line Items] | ||
Gross receivables | R$ 9 | R$ 1 |
9. Other receivables (Details)
9. Other receivables (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | R$ 913 | R$ 738 |
Other receivables, current | 271 | 126 |
Other receivables, noncurrent | 642 | 612 |
Accounts receivable from insurers | ||
DisclosureOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 208 | 19 |
Rental receivable | ||
DisclosureOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 48 | 61 |
Receivable from Paes Mendonça | ||
DisclosureOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 532 | 532 |
Receivable from sale of subsidiaries | ||
DisclosureOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | 81 | 69 |
Other | ||
DisclosureOfOtherReceivablesLineItems [Line Items] | ||
Other receivables | R$ 44 | R$ 57 |
10. Inventories (Details)
10. Inventories (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfInventoryLineItems [Line Items] | ||
Inventories, net | R$ 4822 | R$ 4641 |
Stores | ||
DisclosureOfInventoryLineItems [Line Items] | ||
Inventories, net | 3,564 | 3,400 |
Distribution centers | ||
DisclosureOfInventoryLineItems [Line Items] | ||
Inventories, net | 1,307 | 1,255 |
Real estate inventories | ||
DisclosureOfInventoryLineItems [Line Items] | ||
Inventories, net | 24 | 61 |
Allowance for losses on inventory obsolescence and damages | ||
DisclosureOfInventoryLineItems [Line Items] | ||
Inventories, net | R$ 73 | R$ 75 |
10. Inventories (Details 1)
10. Inventories (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories Details 1 | |||
At the beginning of the year | R$ 75 | R$ 150 | R$ 91 |
Additions | (110) | (208) | (129) |
Write-offs | 111 | 164 | 72 |
Exchange rate changes | 0 | 1 | (2) |
Assets held for sale and discontinued operations (note 32) | 1 | 118 | 0 |
At the end of the year | R$ 73 | R$ 75 | R$ 150 |
11. Recoverable taxes (Details)
11. Recoverable taxes (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | R$ 2343 | R$ 1306 |
Recoverable taxes, current | 596 | 674 |
Recoverable taxes, noncurrent | 1,747 | 632 |
State value-added tax on sales and services ICMS | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 1,886 | 545 |
Provision for non-realization to ICMS | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | (369) | 0 |
Social Integration Program (PIS) and Contribution for Social Security Financing (COFINS) | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 424 | 418 |
Income tax on short term investments | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 13 | 45 |
Income tax and Social Contribution | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 71 | 80 |
Social Security Contribution (INSS) | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 312 | 211 |
Other | ||
DisclosureOfRecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | R$ 6 | R$ 7 |
11. Recoverable taxes (Details
11. Recoverable taxes (Details 1) R$ in Millions | Dec. 31, 2017BRL (R$) |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 1517 |
Up to 1 year | |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 318 |
From 1 to 2 years | |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 228 |
From 2 to 3 years | |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 172 |
From 3 to 4 years | |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 148 |
From 4 to 5 years | |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 139 |
More than 5 years | |
DisclosureOfRealizationOfRecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 512 |
12. Related parties (Details)
12. Related parties (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfKeyManagementPersonnelCompensationLineItems [Line Items] | |||
Base salary | R$ 37661 | R$ 33163 | R$ 37730 |
Variable compensation | 26,813 | 16,684 | 13,377 |
Stock option plan | 24,405 | 22,545 | 5,727 |
Total | 88,879 | 72,392 | 56,834 |
Board of directors | |||
DisclosureOfKeyManagementPersonnelCompensationLineItems [Line Items] | |||
Base salary | 5,797 | 7,128 | 4,026 |
Variable compensation | 0 | 0 | 0 |
Stock option plan | 0 | 0 | 0 |
Total | 5,797 | 7,128 | 4,026 |
Executive officers | |||
DisclosureOfKeyManagementPersonnelCompensationLineItems [Line Items] | |||
Base salary | 31,408 | 26,035 | 33,704 |
Variable compensation | 26,813 | 16,684 | 13,377 |
Stock option plan | 24,405 | 22,545 | 5,727 |
Total | 82,626 | 65,264 | 52,808 |
Fiscal Council | |||
DisclosureOfKeyManagementPersonnelCompensationLineItems [Line Items] | |||
Base salary | 456 | 0 | 0 |
Variable compensation | 0 | 0 | 0 |
Stock option plan | 0 | 0 | 0 |
Total | R$ 456 | R$ 0 | R$ 0 |
12. Related parties (Details 1)
12. Related parties (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Trade receivables | R$ 170 | R$ 59 | |
Other assets | 25 | 17 | |
Trade payables | 23 | 14 | |
Other liabilities | 153 | 147 | |
Revenues (expenses) | (26) | (43) | R$ 64 |
Controlling shareholders | Casino | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 5 | |
Other assets | 0 | 1 | |
Trade payables | 1 | 0 | |
Other liabilities | 4 | 0 | |
Revenues (expenses) | (48) | (64) | (76) |
Controlling shareholders | Wilkes Participações | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | 0 | 0 | (1) |
Controlling shareholders | Euris | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 1 | |
Revenues (expenses) | (3) | (4) | (6) |
Controlling shareholders | Exito | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | (1) | 0 | 0 |
Controlling shareholders | Héllico | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | 0 | (1) | 0 |
Subsidiaries | Others | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 1 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | 0 | 0 | 1 |
Associates | FIC | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 170 | 54 | |
Other assets | 24 | 14 | |
Trade payables | 22 | 14 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | 84 | 55 | 34 |
Other related parties | Others | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 1 | 1 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | 0 | (2) | 1 |
Other related parties | Instituto Grupo Pão de Açúcar | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 0 | 0 | |
Revenues (expenses) | 0 | (1) | (7) |
Other related parties | Greenyellow | |||
Disclosure of transactions between related parties [line items] | |||
Trade receivables | 0 | 0 | |
Other assets | 0 | 0 | |
Trade payables | 0 | 0 | |
Other liabilities | 149 | 146 | |
Revenues (expenses) | R$ 58 | R$ 26 | R$ 10 |
12. Related parties (Details Na
12. Related parties (Details Narrative) - Via Varejo R$ in Millions | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Disclosure of transactions between related parties [line items] | |
Accounts payable with FIC | R$ 5 |
Accounts receivables with CB | R$ 228 |
13. Investments in associates87
13. Investments in associates (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Investments, beginning | R$ 294 | R$ 382 | |
Share of profit (loss) of associates – continued operations | (60) | 60 | R$ 81 |
Share of profit (loss) of associates – discontinued operations | 26 | 30 | |
Dividends and interest on own capital – continued operations | (204) | (20) | |
Dividends and interest on own capital – discontinued operations | (81) | (8) | |
Other movements | (18) | (9) | |
Exchange rates | 0 | 5 | |
Company reorganization | 0 | 7 | |
Transfer to held for sale | 55 | (153) | |
Investments, ending | 12 | 294 | 382 |
FIC | |||
Disclosure of associates [line items] | |||
Investments, beginning | 315 | 361 | |
Share of profit (loss) of associates – continued operations | 65 | 76 | |
Share of profit (loss) of associates – discontinued operations | 25 | 29 | |
Dividends and interest on own capital – continued operations | (204) | (20) | |
Dividends and interest on own capital – discontinued operations | (81) | (8) | |
Other movements | 0 | 0 | |
Exchange rates | 0 | 0 | |
Company reorganization | 0 | 0 | |
Transfer to held for sale | 56 | (123) | |
Investments, ending | 176 | 315 | 361 |
BINV | |||
Disclosure of associates [line items] | |||
Investments, beginning | 0 | 20 | |
Share of profit (loss) of associates – continued operations | 0 | 0 | |
Share of profit (loss) of associates – discontinued operations | 1 | 1 | |
Dividends and interest on own capital – continued operations | 0 | 0 | |
Dividends and interest on own capital – discontinued operations | 0 | 0 | |
Other movements | 0 | 0 | |
Exchange rates | 0 | 0 | |
Company reorganization | 0 | 0 | |
Transfer to held for sale | (1) | (21) | |
Investments, ending | 0 | 0 | 20 |
Other | |||
Disclosure of associates [line items] | |||
Investments, beginning | (21) | 1 | |
Share of profit (loss) of associates – continued operations | (125) | (16) | |
Share of profit (loss) of associates – discontinued operations | 0 | 0 | |
Dividends and interest on own capital – continued operations | 0 | 0 | |
Dividends and interest on own capital – discontinued operations | 0 | 0 | |
Other movements | (18) | (9) | |
Exchange rates | 0 | 5 | |
Company reorganization | 0 | 7 | |
Transfer to held for sale | 0 | (9) | |
Investments, ending | R$ 164 | R$ 21 | R$ 1 |
14. Property and equipment (Det
14. Property and equipment (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | R$ 9182 | R$ 10377 |
Additions | 1,367 | 1,387 |
Depreciation | (701) | (802) |
Write-offs | (536) | (179) |
Transfers | (13) | 6 |
Exchange rate changes | 0 | (11) |
Assets held for sale and discontinued operations | (161) | (1,596) |
Property and equipment, ending | 9,138 | 9,182 |
Finance lease | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 43 | 72 |
Additions | 0 | 5 |
Depreciation | (7) | (18) |
Write-offs | 0 | (2) |
Transfers | (1) | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (14) |
Property and equipment, ending | 35 | 43 |
Land | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 1,414 | 1,464 |
Additions | 0 | 0 |
Depreciation | 0 | 0 |
Write-offs | (31) | (1) |
Transfers | (21) | 36 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (85) |
Property and equipment, ending | 1,362 | 1,414 |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 1,856 | 2,023 |
Additions | 113 | 48 |
Depreciation | (59) | (62) |
Write-offs | (225) | (24) |
Transfers | 85 | (96) |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (33) |
Property and equipment, ending | 1,770 | 1,856 |
Buildings | Finance lease | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 20 | 21 |
Additions | 0 | 0 |
Depreciation | 0 | (1) |
Write-offs | 0 | 0 |
Transfers | 0 | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | 0 |
Property and equipment, ending | 20 | 20 |
Leasehold Improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 3,284 | 3,675 |
Additions | 295 | 213 |
Depreciation | (254) | (272) |
Write-offs | (156) | (83) |
Transfers | 342 | 441 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | (19) | (690) |
Property and equipment, ending | 3,492 | 3,284 |
Machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 1,340 | 1,676 |
Additions | 158 | 295 |
Depreciation | (234) | (279) |
Write-offs | (77) | (26) |
Transfers | 118 | 35 |
Exchange rate changes | 0 | (1) |
Assets held for sale and discontinued operations | (43) | (360) |
Property and equipment, ending | 1,262 | 1,340 |
Facilities | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 433 | 422 |
Additions | 109 | 175 |
Depreciation | (46) | (47) |
Write-offs | (20) | (7) |
Transfers | 5 | 19 |
Exchange rate changes | 0 | (5) |
Assets held for sale and discontinued operations | 6 | (124) |
Property and equipment, ending | 487 | 433 |
Facilities | Finance lease | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 0 | 1 |
Additions | 0 | 0 |
Depreciation | 0 | (1) |
Write-offs | 0 | 0 |
Transfers | 0 | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | 0 |
Property and equipment, ending | 0 | 0 |
Furniture and fixtures | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 543 | 701 |
Additions | 55 | 73 |
Depreciation | (79) | (90) |
Write-offs | (14) | (5) |
Transfers | 60 | 28 |
Exchange rate changes | 0 | (3) |
Assets held for sale and discontinued operations | (25) | (161) |
Property and equipment, ending | 540 | 543 |
Furniture and fixtures | Finance lease | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 6 | 6 |
Additions | 0 | 0 |
Depreciation | (2) | 0 |
Write-offs | 0 | 0 |
Transfers | 0 | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | 0 |
Property and equipment, ending | 4 | 6 |
Vehicles | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 2 | 75 |
Additions | 0 | 1 |
Depreciation | (1) | (6) |
Write-offs | (6) | (11) |
Transfers | 5 | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 1 | (57) |
Property and equipment, ending | 1 | 2 |
Construction in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 204 | 172 |
Additions | 596 | 546 |
Depreciation | 0 | (1) |
Write-offs | (4) | (11) |
Transfers | (595) | (450) |
Exchange rate changes | 0 | (2) |
Assets held for sale and discontinued operations | (75) | (50) |
Property and equipment, ending | 126 | 204 |
Other | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 63 | 97 |
Additions | 41 | 31 |
Depreciation | (21) | (27) |
Write-offs | (3) | (9) |
Transfers | (11) | (7) |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | (6) | (22) |
Property and equipment, ending | 63 | 63 |
Total property and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 9,139 | 10,305 |
Additions | 1,367 | 1,382 |
Depreciation | (694) | (784) |
Write-offs | (536) | (177) |
Transfers | (12) | 6 |
Exchange rate changes | 0 | (11) |
Assets held for sale and discontinued operations | (161) | (1,582) |
Property and equipment, ending | 9,103 | 9,139 |
Equipment | Finance lease | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 9 | 13 |
Additions | 0 | 0 |
Depreciation | (2) | (2) |
Write-offs | 0 | (2) |
Transfers | (1) | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | 0 |
Property and equipment, ending | 6 | 9 |
IT equipment | Finance lease | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Property and equipment, beginning | 8 | 31 |
Additions | 0 | 5 |
Depreciation | (3) | (14) |
Write-offs | 0 | 0 |
Transfers | 0 | 0 |
Exchange rate changes | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (14) |
Property and equipment, ending | R$ 5 | R$ 8 |
14. Property and equipment (D89
14. Property and equipment (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | R$ 14677 | R$ 14338 | |
Property and equipment, accumulated depreciation | (5,539) | (5,156) | |
Property and equipment, net | 9,138 | 9,182 | R$ 10377 |
Finance lease | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 129 | 134 | |
Property and equipment, accumulated depreciation | (94) | (91) | |
Property and equipment, net | 35 | 43 | 72 |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 1,362 | 1,414 | |
Property and equipment, accumulated depreciation | 0 | 0 | |
Property and equipment, net | 1,362 | 1,414 | 1,464 |
Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 2,705 | 2,823 | |
Property and equipment, accumulated depreciation | (935) | (967) | |
Property and equipment, net | 1,770 | 1,856 | 2,023 |
Buildings | Finance lease | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 43 | 43 | |
Property and equipment, accumulated depreciation | (23) | (23) | |
Property and equipment, net | 20 | 20 | 21 |
Leasehold Improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 5,310 | 4,926 | |
Property and equipment, accumulated depreciation | (1,818) | (1,642) | |
Property and equipment, net | 3,492 | 3,284 | 3,675 |
Machinery and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 2,828 | 2,779 | |
Property and equipment, accumulated depreciation | (1,566) | (1,439) | |
Property and equipment, net | 1,262 | 1,340 | 1,676 |
Facilities | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 817 | 723 | |
Property and equipment, accumulated depreciation | (330) | (290) | |
Property and equipment, net | 487 | 433 | 422 |
Facilities | Finance lease | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 1 | 1 | |
Property and equipment, accumulated depreciation | (1) | (1) | |
Property and equipment, net | 0 | 0 | 1 |
Furniture and fixtures | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 1,209 | 1,159 | |
Property and equipment, accumulated depreciation | (669) | (616) | |
Property and equipment, net | 540 | 543 | 701 |
Furniture and fixtures | Finance lease | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 13 | 14 | |
Property and equipment, accumulated depreciation | (9) | (8) | |
Property and equipment, net | 4 | 6 | 6 |
Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 8 | 8 | |
Property and equipment, accumulated depreciation | (7) | (6) | |
Property and equipment, net | 1 | 2 | 75 |
Construction in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 126 | 204 | |
Property and equipment, accumulated depreciation | 0 | 0 | |
Property and equipment, net | 126 | 204 | 172 |
Other | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 183 | 168 | |
Property and equipment, accumulated depreciation | (120) | (105) | |
Property and equipment, net | 63 | 63 | 97 |
Total property and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 14,548 | 14,204 | |
Property and equipment, accumulated depreciation | (5,445) | (5,065) | |
Property and equipment, net | 9,103 | 9,139 | 10,305 |
Equipment | Finance lease | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 26 | 30 | |
Property and equipment, accumulated depreciation | (20) | (21) | |
Property and equipment, net | 6 | 9 | 13 |
IT equipment | Finance lease | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, cost | 46 | 46 | |
Property and equipment, accumulated depreciation | (41) | (38) | |
Property and equipment, net | R$ 5 | R$ 8 | R$ 31 |
14. Property and equipment (D90
14. Property and equipment (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of changes in property, plant and equipment | |||
Additions | R$ 1367 | R$ 1387 | |
Finance lease | 0 | (5) | |
Capitalized borrowing costs | (16) | (14) | |
Property and equipment financing - Additions | (553) | (802) | |
Property and equipment financing - Payments | 604 | 699 | |
Total | R$ 1402 | R$ 1265 | R$ 1581 |
14. Property and equipment (D91
14. Property and equipment (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property And Equipment Details Narrative | ||
Capitalized borrowing costs | R$ 16 | R$ 14 |
Borrowing costs eligible for capitalization rate | 101.66% | 104.53% |
Cost of goods and services sold | R$ 54 | R$ 55 |
15. Intangible assets (Details)
15. Intangible assets (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | R$ 1908 | R$ 6543 |
Additions | 283 | 436 |
Amortization | (132) | (287) |
Write-off | (9) | (79) |
Transfers | (9) | (8) |
Assets held for sale and discontinued operations | (117) | (4,593) |
Exchange rate changes | 0 | (104) |
Intangible assets, ending | 1,924 | 1,908 |
Goodwill - retail | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 1,107 | 2,272 |
Additions | 0 | 0 |
Amortization | 0 | 0 |
Write-off | 0 | (2) |
Transfers | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (1,116) |
Exchange rate changes | 0 | (47) |
Intangible assets, ending | 1,107 | 1,107 |
Tradename - cash and carry | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 39 | 2,121 |
Additions | 0 | 0 |
Amortization | 0 | 0 |
Write-off | 0 | (4) |
Transfers | 0 | 1 |
Assets held for sale and discontinued operations | 0 | (2,075) |
Exchange rate changes | 0 | (4) |
Intangible assets, ending | 39 | 39 |
Commercial rights - retail | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 80 | 650 |
Additions | 6 | 0 |
Amortization | 0 | (2) |
Write-off | 0 | 0 |
Transfers | 0 | 6 |
Assets held for sale and discontinued operations | 0 | (574) |
Exchange rate changes | 0 | 0 |
Intangible assets, ending | 86 | 80 |
NCB for lease agreement under advantageous condition | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 0 | 70 |
Additions | 0 | 0 |
Amortization | 0 | (14) |
Write-off | 0 | 0 |
Transfers | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (56) |
Exchange rate changes | 0 | 0 |
Intangible assets, ending | 0 | 0 |
Contractual Rights | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 0 | 148 |
Additions | 0 | 65 |
Amortization | 0 | (28) |
Write-off | 0 | 0 |
Transfers | 0 | 0 |
Assets held for sale and discontinued operations | 0 | (185) |
Exchange rate changes | 0 | 0 |
Intangible assets, ending | 0 | 0 |
Software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 523 | 1,127 |
Additions | 236 | 208 |
Amortization | (86) | (210) |
Write-off | (9) | (70) |
Transfers | (9) | (46) |
Assets held for sale and discontinued operations | (104) | (447) |
Exchange rate changes | 0 | (39) |
Intangible assets, ending | 551 | 523 |
Software capital lease | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 159 | 89 |
Additions | 41 | 94 |
Amortization | (46) | (31) |
Write-off | 0 | 0 |
Transfers | 0 | 83 |
Assets held for sale and discontinued operations | (13) | (76) |
Exchange rate changes | 0 | 0 |
Intangible assets, ending | 141 | 159 |
Other | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets, beginning | 0 | 66 |
Additions | 0 | 69 |
Amortization | 0 | (2) |
Write-off | 0 | (3) |
Transfers | 0 | (52) |
Assets held for sale and discontinued operations | 0 | (64) |
Exchange rate changes | 0 | (14) |
Intangible assets, ending | R$ 0 | R$ 0 |
15. Intangible assets (Details
15. Intangible assets (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, cost | R$ 3757 | R$ 3614 | |
Intangible assets, accumulated depreciation | (1,833) | (1,706) | |
Intangible assets, net | 1,924 | 1,908 | R$ 6543 |
Goodwill - retail | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, cost | 2,217 | 2,217 | |
Intangible assets, accumulated depreciation | (1,110) | (1,110) | |
Intangible assets, net | 1,107 | 1,107 | 2,272 |
Tradename - cash and carry | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, cost | 39 | 39 | |
Intangible assets, accumulated depreciation | 0 | 0 | |
Intangible assets, net | 39 | 39 | 2,121 |
Commercial rights - retail | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, cost | 86 | 80 | |
Intangible assets, accumulated depreciation | 0 | 0 | |
Intangible assets, net | 86 | 80 | 650 |
Software | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, cost | 1,038 | 929 | |
Intangible assets, accumulated depreciation | (487) | (406) | |
Intangible assets, net | 551 | 523 | 1,127 |
Software capital lease | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, cost | 377 | 349 | |
Intangible assets, accumulated depreciation | (236) | (190) | |
Intangible assets, net | R$ 141 | R$ 159 | R$ 89 |
15. Intangible assets (Detail94
15. Intangible assets (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of changes in intangible assets and goodwill | |||
Additions | R$ 283 | R$ 436 | |
Finance lease | (41) | (94) | |
Contractual rights | 0 | (65) | |
Intangible assets financing - Payments | 69 | 2 | |
Total | R$ 311 | R$ 279 | R$ 404 |
16. Trade payables (Details)
16. Trade payables (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTradePayableLineItems [Line Items] | ||
Trade payables | R$ 8128 | R$ 7232 |
Product suppliers | ||
DisclosureOfTradePayableLineItems [Line Items] | ||
Trade payables | 8,554 | 7,763 |
Service suppliers | ||
DisclosureOfTradePayableLineItems [Line Items] | ||
Trade payables | 412 | 320 |
Bonuses from vendors | ||
DisclosureOfTradePayableLineItems [Line Items] | ||
Trade payables | R$ 838 | R$ 851 |
17. Borrowings and financing (D
17. Borrowings and financing (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of detailed information about borrowings [line items] | |||
Noncurrent assets | R$ 28 | R$ 0 | |
Borrowings and financing, current liabilities | 1,251 | 2,957 | |
Borrowings and financing, noncurrent liabilities | 3,337 | 2,912 | |
Borrowings and financing | 4,560 | 5,869 | R$ 7978 |
Debentures and Certificate of Agribusiness | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 3,015 | 2,472 | |
Debentures and Certificate of Agribusiness | Receivables | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 3,015 | 2,472 | |
Borrowings and financing | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 627 | 1,687 | |
Borrowings and financing | Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 918 | 1,710 | |
Borrowings and financing | BNDES | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 45 | 51 | |
Borrowings and financing | Working capital | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 285 | 1,302 | |
Borrowings and financing | Working capital | Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 664 | 1,361 | |
Borrowings and financing | Working capital | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 125 | 135 | |
Borrowings and financing | Working capital | Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 200 | 172 | |
Borrowings and financing | Finance lease | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 195 | 215 | |
Borrowings and financing | Swap contracts | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | (19) | (10) | |
Borrowings and financing | Swap contracts | Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 55 | 177 | |
Borrowings and financing | Borrowing cost | Local currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | (4) | (6) | |
Borrowings and financing | Borrowing cost | Foreign currency | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | R$ 1 | R$ 0 |
17. Borrowings and financing 97
17. Borrowings and financing (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowings And Financing Details 1 | ||
Borrowings and financing, beginning | R$ 5869 | R$ 7978 |
Additions - working capital | 7,789 | 8,082 |
Additions - finance lease | 41 | 100 |
Accrued interest | 748 | 862 |
Accrued swap | 114 | 920 |
Mark-to-market | 12 | (22) |
Monetary and exchange rate changes | 22 | (635) |
Borrowing cost | 9 | 4 |
Interest paid | (1,131) | (624) |
Payments | (8,336) | (6,876) |
Swap paid | (318) | 19 |
Liabilities related to assets held for sale (note 32) | (259) | (3,939) |
Borrowings and financing, ending | R$ 4560 | R$ 5869 |
17. Borrowings and financing 98
17. Borrowings and financing (Details 2) R$ in Millions | Dec. 31, 2017BRL (R$) |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | R$ 3309 |
From 1 to 2 years | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | 1,892 |
From 2 to 3 years | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | 1,298 |
From 3 to 4 years | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | 40 |
From 4 to 5 years | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | 24 |
After 5 years | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | 66 |
Subtotal | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | 3,320 |
Borrowing costs | |
DisclosureOfMaturityScheduleOfBorrowingsLineItems [Line Items] | |
Borrowings and financing, noncurrent | R$ 11 |
17. Borrowings and financing 99
17. Borrowings and financing (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | R$ 4560 | R$ 5869 | R$ 7978 |
Borrowings and financing, current liabilities | 1,251 | 2,957 | |
Borrowings and financing, noncurrent liabilities | 3,337 | 2,912 | |
Borrowing cost | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | (16) | (14) | |
Debentures, Promissory Note and Certificate of Agribusiness Receivables | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings and financing | 3,015 | 2,472 | |
Borrowings and financing, current liabilities | 481 | 568 | |
Borrowings and financing, noncurrent liabilities | 2,534 | 1,904 | |
12th Issue of Debentures CBD | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue Amount | 900 | 900 | |
Outstanding debentures | R$ 900000 | 900,000 | |
Issue date | Sep. 17, 2014 | ||
Maturity date | Sep. 12, 2019 | ||
Annual financial charges | |||
Unit price | 1,023 | 1,023 | |
Borrowings and financing | 921 | 939 | |
13th Issue of Debentures CBD - CRA | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue Amount | 1,012 | 1,012 | |
Outstanding debentures | R$ 1012500 | 1,012,500 | |
Issue date | Dec. 20, 2016 | ||
Maturity date | Dec. 20, 2019 | ||
Annual financial charges | |||
Unit price | 1,001 | 1,001 | |
Borrowings and financing | 1,014 | 1,017 | |
14th Issue of Debentures CBD and CRA | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue Amount | 1,080 | 1,080 | |
Outstanding debentures | R$ 1080000 | 1,080,000 | |
Issue date | Apr. 17, 2017 | ||
Maturity date | Apr. 13, 2020 | ||
Unit price | R$ 1015 | 1,015 | |
Borrowings and financing | 1,096 | 0 | |
2nd Issue of Promissory Note CBD | |||
Disclosure of detailed information about borrowings [line items] | |||
Issue Amount | 500 | 500 | |
Outstanding debentures | R$ 200000 | 200,000 | |
Issue date | Aug. 1, 2016 | ||
Maturity date | Jan. 30, 2017 | ||
Annual financial charges | |||
Unit price | 0 | 0 | |
Borrowings and financing | R$ 0 | R$ 530 |
17. Borrowings and financing100
17. Borrowings and financing (Details Narrative) | Dec. 31, 2017 | Dec. 31, 2016 |
Swap contracts | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average annual rate of CDI | 9.93% | 14.00% |
18. Financial instruments (Deta
18. Financial instruments (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial assets | R$ 5470 | R$ 6410 |
Financial liabilities | (12,985) | (13,375) |
Loans and receivables (including cash) | Cash and cash equivalents | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial assets | 3,792 | 5,112 |
Loans and receivables (including cash) | Trade receivables and other receivables | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial assets | 1,625 | 1,281 |
Loans and receivables (including cash) | Related parties - assets | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial assets | 25 | 17 |
Loans and receivables (including cash) | Financial instruments - Fair value hedge | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial assets | 28 | 0 |
Financial liabilities - amortized cost | Related parties - liabilities | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | (153) | (147) |
Financial liabilities - amortized cost | Trade payables | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | (8,128) | (7,232) |
Financial liabilities - amortized cost | Financing for purchase of assets | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | (116) | (120) |
Financial liabilities - amortized cost | Acquisition of non-controlling interest | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | 0 | (7) |
Financial liabilities - amortized cost | Debentures | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | (3,015) | (2,472) |
Financial liabilities - amortized cost | Borrowings and financing | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | (520) | (1,562) |
Fair value through profit or loss | Borrowings and financing | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | (989) | (1,835) |
Fair value through profit or loss | Financial instruments Fair value hedge | ||
DisclosureOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | ||
Financial liabilities | R$ 64 | R$ 0 |
18. Financial instruments (D102
18. Financial instruments (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Instruments Details 1 | ||||
Cash and cash equivalents | R$ 3792 | R$ 5112 | ||
Financial instruments - Fair value hedge | 28 | 0 | ||
Borrowings and financing | (4,588) | (5,869) | ||
Other liabilities with related parties | (145) | (149) | ||
Net debt | (913) | (906) | ||
Shareholders' equity | R$ 13292 | R$ 12597 | R$ 13352 | R$ 14194 |
Net debt to equity ratio | 7.00% | 7.00% |
18. Financial instruments (D103
18. Financial instruments (Details 2) R$ in Millions | Dec. 31, 2017BRL (R$) |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | R$ 13476 |
Up to 1 Year | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 9,639 |
1 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 3,609 |
After 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 228 |
Borrowings and financing | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 1,436 |
Borrowings and financing | Up to 1 Year | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 702 |
Borrowings and financing | 1 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 659 |
Borrowings and financing | After 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 75 |
Debentures and Promissory Notes | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 3,425 |
Debentures and Promissory Notes | Up to 1 Year | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 652 |
Debentures and Promissory Notes | 1 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 2,773 |
Debentures and Promissory Notes | After 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 0 |
Derivatives financial instruments | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 107 |
Derivatives financial instruments | Up to 1 Year | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 90 |
Derivatives financial instruments | 1 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 20 |
Derivatives financial instruments | After 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | (3) |
Finance lease | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 380 |
Finance lease | Up to 1 Year | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 67 |
Finance lease | 1 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 157 |
Finance lease | After 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 156 |
Trade payables | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 8,128 |
Trade payables | Up to 1 Year | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 8,128 |
Trade payables | 1 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | 0 |
Trade payables | After 5 years | |
DisclosureOfMaturityAnalysisForFinancialLiabilitiesHeldForManagingTotalLiquidityRiskManagementLineItems [Line Items] | |
Financial liabilities | R$ 0 |
18. Financial instruments (D104
18. Financial instruments (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedged items [line items] | ||
Notional value | R$ 0 | R$ 0 |
Fair value | (36) | (167) |
Fair value hedge | Hedge item (debt) | ||
Disclosure of detailed information about hedged items [line items] | ||
Notional value | 1,039 | 1,768 |
Fair value | 989 | 1,666 |
Long position (buy) | ||
Disclosure of detailed information about hedged items [line items] | ||
Notional value | 1,039 | 1,768 |
Fair value | 988 | 1,672 |
Long position (buy) | Prefixed rate | ||
Disclosure of detailed information about hedged items [line items] | ||
Notional value | 127 | 127 |
Fair value | 125 | 134 |
Long position (buy) | US$ + fixed | ||
Disclosure of detailed information about hedged items [line items] | ||
Notional value | 692 | 1,421 |
Fair value | 663 | 1,362 |
Long position (buy) | EUR + fixed | ||
Disclosure of detailed information about hedged items [line items] | ||
Notional value | 220 | 220 |
Fair value | 200 | 176 |
Short position (sell) | ||
Disclosure of detailed information about hedged items [line items] | ||
Notional value | (1,039) | (1,768) |
Fair value | R$ 1024 | R$ 1839 |
18. Financial instruments (D105
18. Financial instruments (Details 4) R$ in Millions | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | R$ 1161 |
Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,487) |
Net effect - gain (loss) | (326) |
Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,517) |
Net effect - gain (loss) | (356) |
Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,549) |
Net effect - gain (loss) | (388) |
Fair value hedge (fixed rate) | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (106) |
Fair value hedge (fixed rate) | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (190) |
Fair value hedge (fixed rate) | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (193) |
Fair value hedge (fixed rate) | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (196) |
Fair value hedge (exchange rate) | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (918) |
Fair value hedge (exchange rate) | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,127) |
Fair value hedge (exchange rate) | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,147) |
Fair value hedge (exchange rate) | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,168) |
Debentures | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (921) |
Debentures | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (989) |
Debentures | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,005) |
Debentures | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,022) |
Certificate of Agribusiness Receivables | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,014) |
Certificate of Agribusiness Receivables | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,089) |
Certificate of Agribusiness Receivables | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,107) |
Certificate of Agribusiness Receivables | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,126) |
Promissory note | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,096) |
Promissory note | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,176) |
Promissory note | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,197) |
Promissory note | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (1,217) |
Bank loans - CBD | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (285) |
Bank loans - CBD | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (306) |
Bank loans - CBD | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (311) |
Bank loans - CBD | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (317) |
Leases | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (58) |
Leases | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (62) |
Leases | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (63) |
Leases | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (64) |
Leases | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (5) |
Leases | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (6) |
Leases | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (6) |
Leases | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (6) |
Leases | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (86) |
Leases | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (92) |
Leases | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (94) |
Leases | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (95) |
Total borrowings and financing exposure | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (4,489) |
Total borrowings and financing exposure | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (5,037) |
Total borrowings and financing exposure | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (5,123) |
Total borrowings and financing exposure | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | (5,211) |
Cash and cash equivalents | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | 3,328 |
Cash and cash equivalents | Scenario I | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | 3,550 |
Cash and cash equivalents | Scenario II | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | 3,606 |
Cash and cash equivalents | Scenario III | |
DisclosureOfOtherFinancialInstrumentsLineItems [Line Items] | |
Net exposure | R$ 3662 |
18. Financial instruments (D106
18. Financial instruments (Details 5) R$ in Millions | Dec. 31, 2017BRL (R$) |
DisclosureOfCarryingAndFairValueMeasurementOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | |
Carrying amount | R$ 4560 |
Fair value | (4,533) |
Cross-currency interest rate swaps | |
DisclosureOfCarryingAndFairValueMeasurementOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | |
Carrying amount | (55) |
Fair value | (55) |
Interest rate swaps | |
DisclosureOfCarryingAndFairValueMeasurementOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | |
Carrying amount | 19 |
Fair value | 19 |
Borrowings and financing (fair value) | |
DisclosureOfCarryingAndFairValueMeasurementOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | |
Carrying amount | (989) |
Fair value | (989) |
Borrowings and financing and debentures (amortized cost) | |
DisclosureOfCarryingAndFairValueMeasurementOfFinancialAssetsAndLiabilitiesLineItems [Line Items] | |
Carrying amount | (3,535) |
Fair value | R$ 3508 |
18. Financial instruments (D107
18. Financial instruments (Details 6) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 0 | R$ 0 |
Amount payable or receivable | (54) | (185) |
Fair value | (36) | (167) |
Exchange swaps registered with CETIP | Banco Tokyo | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 75 | |
Contractual date | Jan. 14, 2014 | |
Maturity | Jan. 10, 2017 | |
Amount payable or receivable | R$ 0 | 61 |
Fair value | 0 | 59 |
Exchange swaps registered with CETIP | Mizuho | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Oct. 31, 2014 | |
Maturity | Oct. 31, 2017 | |
Amount payable or receivable | R$ 0 | 38 |
Fair value | 0 | 37 |
Exchange swaps registered with CETIP | Bank of America | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 40 | |
Contractual date | Sep. 14, 2015 | |
Maturity | Sep. 14, 2017 | |
Amount payable or receivable | R$ 0 | (26) |
Fair value | 0 | (25) |
Exchange swaps registered with CETIP | Banco Tokyo | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Jul. 31, 2015 | |
Maturity | Jul. 31, 2017 | |
Amount payable or receivable | R$ 0 | (6) |
Fair value | 0 | (6) |
Exchange swaps registered with CETIP | Scotiabank | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Sep. 30, 2015 | |
Maturity | Sep. 29, 2017 | |
Amount payable or receivable | R$ 0 | (39) |
Fair value | 0 | (37) |
Exchange swaps registered with CETIP | Agricole | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (EUR) | R$ 50 | |
Contractual date | Oct. 7, 2015 | |
Maturity | Oct. 8, 2018 | |
Amount payable or receivable | R$ 24 | (54) |
Fair value | (20) | (42) |
Exchange swaps registered with CETIP | Itaú BBA | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Oct. 27, 2015 | |
Maturity | Jan. 17, 2017 | |
Amount payable or receivable | R$ 0 | (60) |
Fair value | 0 | (61) |
Exchange swaps registered with CETIP | Bradesco | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Mar. 3, 2016 | |
Maturity | Mar. 6, 2017 | |
Amount payable or receivable | R$ 0 | (53) |
Fair value | 0 | (54) |
Exchange swaps registered with CETIP | Scotiabank | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Jan. 15, 2016 | |
Maturity | Jan. 16, 2018 | |
Amount payable or receivable | R$ 42 | (50) |
Fair value | (42) | (47) |
Exchange swaps registered with CETIP | Scotiabank | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 50 | |
Contractual date | Sep. 29, 2017 | |
Maturity | Sep. 29, 2020 | |
Amount payable or receivable | R$ 9 | 0 |
Fair value | 9 | 0 |
Exchange swaps registered with CETIP | Banco Tokyo | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (US$) | R$ 100 | |
Contractual date | Dec. 12, 2017 | |
Maturity | Dec. 12, 2019 | |
Amount payable or receivable | R$ 3 | 0 |
Fair value | (2) | 0 |
Interest rate swap registered with CETIP | Itaú BBA | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (R$) | R$ 21 | |
Contractual date | Nov. 11, 2014 | |
Maturity | Nov. 5, 2026 | |
Amount payable or receivable | R$ 1 | 1 |
Fair value | 3 | 2 |
Interest rate swap registered with CETIP | Itaú BBA | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (R$) | R$ 54 | |
Contractual date | Jan. 14, 2015 | |
Maturity | Jan. 5, 2027 | |
Amount payable or receivable | R$ 3 | 1 |
Fair value | 8 | 3 |
Interest rate swap registered with CETIP | Itaú BBA | ||
DisclosureOfOutstandingDerivativeTransactionsLineItems [Line Items] | ||
Notional value (R$) | R$ 52 | |
Contractual date | May 26, 2015 | |
Maturity | May 5, 2027 | |
Amount payable or receivable | R$ 2 | 2 |
Fair value | R$ 8 | R$ 4 |
18. Financial instruments (D108
18. Financial instruments (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | R$ 0 | R$ 0 |
Fair value | (36) | (167) |
Effects of the fair value hedge recorded | 129 | 722 |
Fair value hedge | Hedge item (debt) | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 1,039 | 1,768 |
Fair value | R$ 989 | R$ 1666 |
19. Taxes and contributions 109
19. Taxes and contributions payable and taxes payable in installments (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | R$ 867 | R$ 794 |
Taxes and contributions payable and taxes payable in installments, current | 301 | 254 |
Taxes and contributions payable and taxes payable in installments, noncurrent | 566 | 540 |
PIS and COFINS | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 52 | 49 |
Provision for income tax and social contribution | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 38 | 10 |
ICMS | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 65 | 75 |
Withholding Income Tax | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 13 | 22 |
Taxes payable in installments PERT | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 176 | 0 |
INSS | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 4 | 9 |
Taxes payable in installments - Law 11,941/09 | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 511 | 624 |
Others | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | 8 | 5 |
Total taxes payable in installments | ||
DisclosureOfTaxesAndContributionsPayableAndTaxesPayableInInstallmentsLineItems [Line Items] | ||
Taxes and contributions payable and taxes payable in installments | R$ 867 | R$ 794 |
19. Taxes and contributions 110
19. Taxes and contributions payable and taxes payable in installments (Details 1) R$ in Millions | Dec. 31, 2017BRL (R$) |
DisclosureOfTaxesPayableInInstallmentsMaturityLineItems [Line Items] | |
Taxes payable in installments, noncurrent | R$ 566 |
From 1 to 2 years | |
DisclosureOfTaxesPayableInInstallmentsMaturityLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 105 |
From 2 to 3 years | |
DisclosureOfTaxesPayableInInstallmentsMaturityLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 99 |
From 3 to 4 years | |
DisclosureOfTaxesPayableInInstallmentsMaturityLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 99 |
From 4 to 5 years | |
DisclosureOfTaxesPayableInInstallmentsMaturityLineItems [Line Items] | |
Taxes payable in installments, noncurrent | 82 |
After 5 years | |
DisclosureOfTaxesPayableInInstallmentsMaturityLineItems [Line Items] | |
Taxes payable in installments, noncurrent | R$ 181 |
20. Income tax and social co111
20. Income tax and social contribution (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax And Social Contribution Details | |||
Income (loss) before income tax and social contribution | R$ 779 | R$ 47 | R$ 844 |
Credit (expense) of income tax and social contribution at the nominal rate of 25% for the Company and 34% for subsidiaries | (267) | (29) | (259) |
Tax penalties | (25) | (26) | (11) |
Share of profit of associates | (9) | 21 | 28 |
Interest on own capital | 16 | 13 | 0 |
Other permanent differences (nondeductible) | (12) | (3) | 13 |
Effective income tax and social contribution | (297) | (24) | (229) |
Income tax and social contribution for the year: | |||
Current | (171) | (126) | (156) |
Deferred | (126) | 102 | (73) |
Income tax and social contribution | R$ 297 | R$ 24 | R$ 229 |
Effective rate | 38.13% | (51.06%) | 27.13% |
20. Income tax and social co112
20. Income tax and social contribution (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | R$ 121 | R$ 170 | ||
Deferred income tax and social contribution, liabilities | (394) | (317) | ||
Deferred income tax and social contribution, net | (273) | (147) | R$ 778 | R$ 642 |
Tax losses and negative basis of social contribution | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 200 | 112 | ||
Deferred income tax and social contribution, liabilities | 0 | 0 | ||
Deferred income tax and social contribution, net | 200 | 112 | ||
Provision for risks | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 289 | 347 | ||
Deferred income tax and social contribution, liabilities | 0 | 0 | ||
Deferred income tax and social contribution, net | 289 | 347 | ||
Goodwill tax amortization | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 0 | 0 | ||
Deferred income tax and social contribution, liabilities | (585) | (531) | ||
Deferred income tax and social contribution, net | (585) | (531) | ||
Mark-to-market adjustment | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 0 | 0 | ||
Deferred income tax and social contribution, liabilities | (7) | (8) | ||
Deferred income tax and social contribution, net | (7) | (8) | ||
Technological innovation future realization | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 0 | 0 | ||
Deferred income tax and social contribution, liabilities | (13) | (16) | ||
Deferred income tax and social contribution, net | (13) | (16) | ||
Depreciation of fixed assets as per tax rates | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 0 | 0 | ||
Deferred income tax and social contribution, liabilities | (112) | (81) | ||
Deferred income tax and social contribution, net | (112) | (81) | ||
Unrealized gains with tax credits (note 1.1) | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 0 | 0 | ||
Deferred income tax and social contribution, liabilities | (185) | 0 | ||
Deferred income tax and social contribution, net | (185) | 0 | ||
Other | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 145 | 30 | ||
Deferred income tax and social contribution, liabilities | (5) | 0 | ||
Deferred income tax and social contribution, net | 140 | 30 | ||
Subtotal | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | 634 | 489 | ||
Deferred income tax and social contribution, liabilities | (907) | (636) | ||
Deferred income tax and social contribution, net | (273) | (147) | ||
Compensation | ||||
DisclosureOfDeferredIncomeTaxAndSocialContributionLineItems [Line Items] | ||||
Deferred income tax and social contribution, assets | (513) | (319) | ||
Deferred income tax and social contribution, liabilities | 513 | 319 | ||
Deferred income tax and social contribution, net | R$ 0 | R$ 0 |
20. Income tax and social co113
20. Income tax and social contribution (Details 2) R$ in Millions | Dec. 31, 2017BRL (R$) |
DisclosureOfEstimateToRecoverDeferredTaxAssetsLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 634 |
Up to 1 year | |
DisclosureOfEstimateToRecoverDeferredTaxAssetsLineItems [Line Items] | |
Recovery of deferred tax assets | 163 |
From 1 to 2 years | |
DisclosureOfEstimateToRecoverDeferredTaxAssetsLineItems [Line Items] | |
Recovery of deferred tax assets | 175 |
From 2 to 3 years | |
DisclosureOfEstimateToRecoverDeferredTaxAssetsLineItems [Line Items] | |
Recovery of deferred tax assets | 117 |
From 3 to 4 years | |
DisclosureOfEstimateToRecoverDeferredTaxAssetsLineItems [Line Items] | |
Recovery of deferred tax assets | 123 |
From 4 to 5 years | |
DisclosureOfEstimateToRecoverDeferredTaxAssetsLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 56 |
20. Income tax and social co114
20. Income tax and social contribution (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax And Social Contribution Details 3 | |||
At the beginning of the year | R$ 147 | R$ 778 | R$ 642 |
Expense for the year – Continued operations | (126) | 102 | (73) |
Expense for the year – Discontinued operations | 164 | 11 | (63) |
Morzan arbitration (note 1.1) | 0 | 0 | 50 |
Corporate restructuring | 0 | (4) | 0 |
Cnova NV IPO cost | 0 | 0 | (46) |
Special program on tax settlements - PERT - Discontinued operations - use of tax loss | (89) | 0 | 0 |
Exchange rate variation | 0 | (10) | 29 |
Assets held for sale and discontinued operations (see note 32) | (75) | 522 | 0 |
Other | 0 | 10 | (33) |
At the end of the year | R$ 273 | R$ 147 | R$ 778 |
21. Provision for contingenc115
21. Provision for contingencies (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
DisclosureOfOtherLongtermProvisionsLineItems [Line Items] | ||
Provision for contingencies, beginning | R$ 1177 | R$ 1396 |
Additions | 1,428 | 1,422 |
Payments | (447) | (415) |
Reversals | (753) | (342) |
Transfer to instalments taxes | (131) | |
Monetary adjustment | 167 | 175 |
Exchange rate changes | (12) | |
Liabilities related to assets available to sell and discontinued operations (see Note 32) | (334) | (1,047) |
Provision for contingencies, ending | 1,107 | 1,177 |
PIS/COFINS | ||
DisclosureOfOtherLongtermProvisionsLineItems [Line Items] | ||
Provision for contingencies, beginning | 148 | 103 |
Additions | 162 | 91 |
Payments | 0 | 0 |
Reversals | (114) | (4) |
Transfer to instalments taxes | (42) | |
Monetary adjustment | (26) | 14 |
Exchange rate changes | 0 | |
Liabilities related to assets available to sell and discontinued operations (see Note 32) | (54) | (56) |
Provision for contingencies, ending | 74 | 148 |
Taxes and other | ||
DisclosureOfOtherLongtermProvisionsLineItems [Line Items] | ||
Provision for contingencies, beginning | 586 | 414 |
Additions | 125 | 325 |
Payments | (37) | (29) |
Reversals | (102) | (19) |
Transfer to instalments taxes | (89) | |
Monetary adjustment | 38 | 38 |
Exchange rate changes | (2) | |
Liabilities related to assets available to sell and discontinued operations (see Note 32) | 42 | (141) |
Provision for contingencies, ending | 563 | 586 |
Social security and labor | ||
DisclosureOfOtherLongtermProvisionsLineItems [Line Items] | ||
Provision for contingencies, beginning | 302 | 597 |
Additions | 856 | 680 |
Payments | (301) | (251) |
Reversals | (328) | (153) |
Transfer to instalments taxes | 0 | |
Monetary adjustment | 116 | 79 |
Exchange rate changes | (2) | |
Liabilities related to assets available to sell and discontinued operations (see Note 32) | (314) | (648) |
Provision for contingencies, ending | 331 | 302 |
Civil | ||
DisclosureOfOtherLongtermProvisionsLineItems [Line Items] | ||
Provision for contingencies, beginning | 109 | 248 |
Additions | 241 | 291 |
Payments | (94) | (125) |
Reversals | (178) | (140) |
Transfer to instalments taxes | 0 | |
Monetary adjustment | 34 | 38 |
Exchange rate changes | (8) | |
Liabilities related to assets available to sell and discontinued operations (see Note 32) | (7) | (195) |
Provision for contingencies, ending | 105 | 109 |
Regulatory | ||
DisclosureOfOtherLongtermProvisionsLineItems [Line Items] | ||
Provision for contingencies, beginning | 32 | 34 |
Additions | 44 | 35 |
Payments | (15) | (10) |
Reversals | (31) | (26) |
Transfer to instalments taxes | 0 | |
Monetary adjustment | 5 | 6 |
Exchange rate changes | 0 | |
Liabilities related to assets available to sell and discontinued operations (see Note 32) | (1) | (7) |
Provision for contingencies, ending | R$ 34 | R$ 32 |
21. Provision for contingenc116
21. Provision for contingencies (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfRestrictedDepositsForLegalProceedingsLineItems [Line Items] | ||
Judicial deposits | R$ 762 | R$ 661 |
Tax | ||
DisclosureOfRestrictedDepositsForLegalProceedingsLineItems [Line Items] | ||
Judicial deposits | 204 | 181 |
Labor | ||
DisclosureOfRestrictedDepositsForLegalProceedingsLineItems [Line Items] | ||
Judicial deposits | 474 | 414 |
Civil and other | ||
DisclosureOfRestrictedDepositsForLegalProceedingsLineItems [Line Items] | ||
Judicial deposits | 42 | 26 |
Regulatory | ||
DisclosureOfRestrictedDepositsForLegalProceedingsLineItems [Line Items] | ||
Judicial deposits | R$ 42 | R$ 40 |
21. Provision for contingenc117
21. Provision for contingencies (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | R$ 8561 | R$ 7920 |
Tax | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 8,182 | 7,718 |
Labor | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 94 | 29 |
Civil and other | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 125 | 53 |
Regulatory | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 160 | 120 |
Property and equipment | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 867 | 863 |
Property and equipment | Tax | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 858 | 851 |
Property and equipment | Labor | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 3 | 3 |
Property and equipment | Civil and other | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 0 | 0 |
Property and equipment | Regulatory | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 6 | 9 |
Letter of guarantee | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 7,694 | 7,057 |
Letter of guarantee | Tax | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 7,324 | 6,867 |
Letter of guarantee | Labor | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 91 | 26 |
Letter of guarantee | Civil and other | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | 125 | 53 |
Letter of guarantee | Regulatory | ||
DisclosureOfGuaranteesLineItems [Line Items] | ||
Guarantees | R$ 154 | R$ 111 |
21. Provision for contingenc118
21. Provision for contingencies (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | R$ 1107 | R$ 1177 |
Non-accrued contingencies liabilities | 11,778 | 12,221 |
PIS/COFINS | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | 184 | 204 |
Non-accrued contingencies liabilities | 2,124 | 2,532 |
Tax claims | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Accrued Supplementary Law 110/2001 costs | 72 | 77 |
Contingent tax liabilities of business combination Via Varejo | 90 | 89 |
Contingent tax liabilities of business combination Bartira | 1 | 1 |
Accrued ICMS Provision | 142 | 153 |
Others accrued provision | 184 | 408 |
Accrued ICMS over tax substitution | 167 | 138 |
Social security and labor | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Provision for contingencies | 1,284 | 950 |
Civil and other | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Accrued lawsuit provision | 314 | 343 |
ICMS | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Non-accrued contingencies liabilities | 7,246 | 6,832 |
INSS | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Non-accrued contingencies liabilities | 474 | 421 |
IRPJ | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Non-accrued contingencies liabilities | 964 | 1,192 |
Municipal tax | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Non-accrued contingencies liabilities | 281 | 292 |
Other tax claims | ||
DisclosureOfProvisionForContingenciesLineItems [Line Items] | ||
Non-accrued contingencies liabilities | R$ 689 | R$ 953 |
22. Leasing transactions (Detai
22. Leasing transactions (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Leasing Transactions Details | ||
Minimum payments on the termination date | R$ 392 | R$ 339 |
22. Leasing transactions (De120
22. Leasing transactions (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Contingent payments | ||
DisclosureOfLeasingTransactionsLineItems [Line Items] | ||
Lease expenses (income) | R$ 484 | R$ 504 |
Non contingent payments | ||
DisclosureOfLeasingTransactionsLineItems [Line Items] | ||
Lease expenses (income) | 453 | 368 |
Sublease rentals | ||
DisclosureOfLeasingTransactionsLineItems [Line Items] | ||
Lease expenses (income) | R$ 174 | R$ 145 |
22. Leasing transactions (De121
22. Leasing transactions (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessee [line items] | ||
Financial lease liability -minimum rental payments | R$ 195 | R$ 215 |
Future financing charges | 185 | 207 |
Gross amount of finance lease agreements | 380 | 422 |
Up to 1 year | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Financial lease liability -minimum rental payments | 51 | 41 |
1 5 years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Financial lease liability -minimum rental payments | 117 | 144 |
After 5 years | ||
Disclosure of finance lease and operating lease by lessee [line items] | ||
Financial lease liability -minimum rental payments | R$ 27 | R$ 30 |
22. Leasing transactions (De122
22. Leasing transactions (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Leasing Transactions Details Narrative | ||
Financial lease liability -minimum rental payments | R$ 195 | R$ 215 |
23. Deferred revenue (Details)
23. Deferred revenue (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | R$ 168 | R$ 248 |
Deferred revenue, current | 146 | 224 |
Deferred revenue, noncurrent | 22 | 24 |
Additional or extended warranties | ||
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | 27 | 35 |
Barter agreement | ||
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | 14 | 12 |
Services rendering agreement | ||
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | 13 | 15 |
Back lights | ||
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | 104 | 85 |
Future revenue agreement (note 23.1) | ||
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | 0 | 100 |
Others | ||
DisclosureOfDeferredIncomeLineItems [Line Items] | ||
Deferred revenue | R$ 10 | R$ 1 |
24. Shareholders' equity (Detai
24. Shareholders' equity (Details) | 12 Months Ended | ||
Dec. 31, 2017BRL (R$)shares | Dec. 31, 2016BRL (R$)shares | Dec. 31, 2015shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares granted | 1,073,000 | 1,645,000 | |
Number of shares exercised | (699,000) | (374,000) | |
Total number of shares in effect | 2,539,000 | 2,394,000 | 1,267,000 |
Series A6 - Gold | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | Mar. 15, 2012 | ||
First date of exercise | Mar. 31, 2015 | ||
Expiration date | Mar. 31, 2016 | ||
Price at the grant date | R$ | R$ 0.01 | ||
Price at the end of the year | R$ | R$ 0.01 | ||
Number of shares granted | 526,000 | ||
Number of shares exercised | (490,000) | ||
Number of shares not exercised by dismissal | (36,000) | ||
Total number of shares in effect | 0 | ||
Series A6 - Silver | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | Mar. 15, 2012 | ||
First date of exercise | Mar. 31, 2015 | ||
Expiration date | Mar. 31, 2016 | ||
Price at the grant date | R$ | R$ 64.13 | ||
Price at the end of the year | R$ | R$ 64.13 | ||
Number of shares granted | 526,000 | ||
Number of shares exercised | (490,000) | ||
Number of shares not exercised by dismissal | (36,000) | ||
Total number of shares in effect | 0 | ||
Series A7 - Gold | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | Mar. 15, 2013 | ||
First date of exercise | Mar. 31, 2016 | ||
Expiration date | Mar. 31, 2017 | ||
Price at the grant date | R$ | R$ 0.01 | ||
Price at the end of the year | R$ | R$ 0.01 | ||
Number of shares granted | 358,000 | ||
Number of shares exercised | (231,000) | ||
Number of shares not exercised by dismissal | (43,000) | ||
Total number of shares in effect | 84,000 | ||
Series A7 - Silver | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | Mar. 15, 2013 | ||
First date of exercise | Mar. 31, 2016 | ||
Expiration date | Mar. 31, 2017 | ||
Price at the grant date | R$ | R$ 80 | ||
Price at the end of the year | R$ | R$ 80 | ||
Number of shares granted | 358,000 | ||
Number of shares exercised | (230,000) | ||
Number of shares not exercised by dismissal | (43,000) | ||
Total number of shares in effect | 85,000 | ||
Series B1 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 30, 2014 | May 30, 2014 | |
First date of exercise | Jun. 1, 2017 | Jun. 1, 2017 | |
Expiration date | Nov. 30, 2017 | Nov. 30, 2017 | |
Price at the grant date | R$ | R$ 0.01 | R$ 0.01 | |
Price at the end of the year | R$ | R$ 0.01 | R$ 0.01 | |
Number of shares granted | 239,000 | 239,000 | |
Number of shares exercised | (166,000) | (27,000) | |
Number of shares not exercised by dismissal | (73,000) | (58,000) | |
Number of shares expired | 0 | ||
Total number of shares in effect | 0 | 154,000 | |
Series C1 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 30, 2014 | May 30, 2014 | |
First date of exercise | Jun. 1, 2017 | Jun. 1, 2017 | |
Expiration date | Nov. 30, 2017 | Nov. 30, 2017 | |
Price at the grant date | R$ | R$ 83.22 | R$ 83.22 | |
Price at the end of the year | R$ | R$ 83.22 | R$ 83.22 | |
Number of shares granted | 239,000 | 239,000 | |
Number of shares exercised | (12,000) | (11,000) | |
Number of shares not exercised by dismissal | (108,000) | (84,000) | |
Number of shares expired | (119,000) | ||
Total number of shares in effect | 0 | 144,000 | |
Series B2 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 29, 2015 | May 29, 2015 | |
First date of exercise | Jun. 1, 2018 | Jun. 1, 2018 | |
Expiration date | Nov. 30, 2018 | Nov. 30, 2018 | |
Price at the grant date | R$ | R$ 0.01 | R$ 0.01 | |
Price at the end of the year | R$ | R$ 0.01 | R$ 0.01 | |
Number of shares granted | 337,000 | 337,000 | |
Number of shares exercised | (119,000) | (75,000) | |
Number of shares not exercised by dismissal | (37,000) | (32,000) | |
Number of shares expired | 0 | ||
Total number of shares in effect | 181,000 | 230,000 | |
Series C2 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 29, 2015 | May 29, 2015 | |
First date of exercise | Jun. 1, 2018 | Jun. 1, 2018 | |
Expiration date | Nov. 30, 2018 | Nov. 30, 2018 | |
Price at the grant date | R$ | R$ 77.27 | R$ 77.27 | |
Price at the end of the year | R$ | R$ 77.27 | R$ 77.27 | |
Number of shares granted | 337,000 | 337,000 | |
Number of shares exercised | 0 | 0 | |
Number of shares not exercised by dismissal | (71,000) | (55,000) | |
Number of shares expired | 0 | ||
Total number of shares in effect | 266,000 | 282,000 | |
Series B3 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 30, 2016 | May 30, 2016 | |
First date of exercise | May 30, 2019 | May 30, 2019 | |
Expiration date | Nov. 30, 2019 | Nov. 30, 2019 | |
Price at the grant date | R$ | R$ 0.01 | R$ 0.01 | |
Price at the end of the year | R$ | R$ 0.01 | R$ 0.01 | |
Number of shares granted | 823,000 | 823,000 | |
Number of shares exercised | (246,000) | (165,000) | |
Number of shares not exercised by dismissal | (41,000) | (28,000) | |
Number of shares expired | 0 | ||
Total number of shares in effect | 536,000 | 630,000 | |
Series C3 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 30, 2016 | May 30, 2016 | |
First date of exercise | May 30, 2019 | May 30, 2019 | |
Expiration date | Nov. 30, 2019 | Nov. 30, 2019 | |
Price at the grant date | R$ | R$ 37.21 | R$ 37.21 | |
Price at the end of the year | R$ | R$ 37.21 | R$ 37.21 | |
Number of shares granted | 823,000 | 823,000 | |
Number of shares exercised | (130,000) | (10,000) | |
Number of shares not exercised by dismissal | (42,000) | (28,000) | |
Number of shares expired | 0 | ||
Total number of shares in effect | 651,000 | 785,000 | |
Series B4 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 30, 2017 | ||
First date of exercise | May 31, 2020 | ||
Expiration date | Nov. 30, 2020 | ||
Price at the grant date | R$ | R$ 0.01 | ||
Price at the end of the year | R$ | R$ 0.01 | ||
Number of shares granted | 537,000 | ||
Number of shares exercised | (146,000) | ||
Number of shares not exercised by dismissal | (11,000) | ||
Number of shares expired | 0 | ||
Total number of shares in effect | 380,000 | ||
Series C4 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Grant date | May 30, 2017 | ||
First date of exercise | May 31, 2020 | ||
Expiration date | Nov. 30, 2020 | ||
Price at the grant date | R$ | R$ 56.78 | ||
Price at the end of the year | R$ | R$ 56.78 | ||
Number of shares granted | 537,000 | ||
Number of shares exercised | (1,000) | ||
Number of shares not exercised by dismissal | (11,000) | ||
Number of shares expired | 0 | ||
Total number of shares in effect | 525,000 | ||
Stock Option Plan | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares granted | 3,872,000 | 4,566,000 | |
Number of shares exercised | (820,000) | (1,729,000) | |
Number of shares not exercised by dismissal | (394,000) | (433,000) | |
Number of shares expired | (119,000) | ||
Total number of shares in effect | 2,539,000 | 2,394,000 |
24. Shareholders' equity (De125
24. Shareholders' equity (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shareholders Equity Details 1 | |||
Number of shares | 266,579,000 | 266,076,000 | |
Balance of effective stock options granted | 2,539,000 | 2,394,000 | 1,267,000 |
Maximum percentage of dilution | 0.95% | 0.90% |
24. Shareholders' equity (De126
24. Shareholders' equity (Details 2) | 12 Months Ended | |
Dec. 31, 2017BRL (R$)sharesyr | Dec. 31, 2016BRL (R$)sharesyr | |
Shareholders Equity Details 2 | ||
Options, outstanding, beginning | shares | 2,394,000 | 1,267,000 |
Options, granted | shares | 1,073,000 | 1,645,000 |
Options, cancelled | shares | (110,000) | (144,000) |
Options, exercised | shares | (699,000) | (374,000) |
Options, expired | shares | (119,000) | 0 |
Options, outstanding, ending | shares | 2,539,000 | 2,394,000 |
Options, exercisable | shares | 2,539,000 | 2,394,000 |
Weighted average exercise price, outstanding, beginning | R$ | R$ 29.21 | R$ 39.57 |
Weighted average exercise price, granted | R$ | 28.4 | 18.61 |
Weighted average exercise price, cancelled | R$ | 40.56 | 40.4 |
Weighted average exercise price, exercised | R$ | 22.14 | 13.39 |
Weighted average exercise price, expired | R$ | 83.22 | 0 |
Weighted average exercise price, outstanding, ending | R$ | 29.48 | 29.21 |
Weighted average exercise price, exercisable | R$ | R$ 29.48 | R$ 29.21 |
Weighted average of remaining contractual term, ending | yr | 1.53 | 1.84 |
Weighted average of remaining contractual term, exercisable | yr | 1.53 | 1.84 |
24. Shareholders' equity (De127
24. Shareholders' equity (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfTransactionsWithNonControllingInterestLineItems [Line Items] | |||
Change in Cnova's Brasil interest | R$ 0 | ||
Change in Cdiscount's interest | 8 | ||
Payment in shares exchange between Cnova N.V. by Cnova Brasil | (47) | ||
Share of profit of associates on shares change effect at Cdiscount | 14 | ||
Sale of subsidiary Cdiscount | 34 | ||
Company reorganization and NPC debt | R$ 36 | ||
Other transactions with non-controlling interest | R$ 2 | 18 | (8) |
Transactions with non-controlling interest | (2) | 27 | (44) |
Controlling Shareholders | |||
DisclosureOfTransactionsWithNonControllingInterestLineItems [Line Items] | |||
Change in Cnova's Brasil interest | (127) | ||
Change in Cdiscount's interest | 1 | ||
Payment in shares exchange between Cnova N.V. by Cnova Brasil | (20) | ||
Share of profit of associates on shares change effect at Cdiscount | 14 | ||
Sale of subsidiary Cdiscount | (11) | ||
Company reorganization and NPC debt | (36) | ||
Other transactions with non-controlling interest | (2) | 5 | (7) |
Transactions with non-controlling interest | (2) | (138) | (43) |
Non-controlling Interest | |||
DisclosureOfTransactionsWithNonControllingInterestLineItems [Line Items] | |||
Change in Cnova's Brasil interest | 127 | ||
Change in Cdiscount's interest | 7 | ||
Payment in shares exchange between Cnova N.V. by Cnova Brasil | (27) | ||
Share of profit of associates on shares change effect at Cdiscount | 0 | ||
Sale of subsidiary Cdiscount | 45 | ||
Company reorganization and NPC debt | 0 | ||
Other transactions with non-controlling interest | R$ 0 | 13 | (1) |
Transactions with non-controlling interest | R$ 165 | R$ 1 |
24. Shareholders' equity (De128
24. Shareholders' equity (Details 4) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Shareholders Equity Details 4 | ||
Net income (loss) for the year | R$ 619 | R$ 482 |
Legal reserve | (31) | 0 |
Calculation basis of dividends | 588 | 0 |
Mandatory minimum dividends – 25% | 147 | 0 |
Payment of interim dividends as interest on own capital, net of withholding taxes | (69) | 0 |
Dividends payable | R$ 78 | R$ 0 |
24. Shareholders' equity (De129
24. Shareholders' equity (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfShareholdersEquityLineItems [Line Items] | |||
Subscribed and paid-up capital | 266,579,000 | 266,076,000 | |
Cumulative other comprehensive income, controlling shareholders | R$ 17 | R$ 88 | R$ 86 |
Cumulative other comprehensive income, non-controlling interests | R$ 146 | R$ 133 | |
Common Shares | |||
DisclosureOfShareholdersEquityLineItems [Line Items] | |||
Subscribed and paid-up capital | 99,680,000 | 99,680,000 | |
Preferred Shares | |||
DisclosureOfShareholdersEquityLineItems [Line Items] | |||
Subscribed and paid-up capital | 166,899,000 | 166,396,000 |
25. Net operating revenue (Deta
25. Net operating revenue (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfNetOperatingRevenueLineItems [Line Items] | |||
Revenues | R$ 44634 | R$ 41454 | R$ 37198 |
Goods | |||
DisclosureOfNetOperatingRevenueLineItems [Line Items] | |||
Revenues | 48,597 | 45,267 | 40,519 |
Services rendered | |||
DisclosureOfNetOperatingRevenueLineItems [Line Items] | |||
Revenues | 365 | 294 | 355 |
Sales returns and cancellations | |||
DisclosureOfNetOperatingRevenueLineItems [Line Items] | |||
Revenues | (523) | (592) | (632) |
Gross sales | |||
DisclosureOfNetOperatingRevenueLineItems [Line Items] | |||
Revenues | 48,439 | 44,969 | 40,242 |
Taxes on sales | |||
DisclosureOfNetOperatingRevenueLineItems [Line Items] | |||
Revenues | R$ 3805 | R$ 3515 | R$ 3044 |
26. Expenses by nature (Details
26. Expenses by nature (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Cost of sales | R$ 33931 | R$ 31933 | R$ 28123 |
Selling expenses | (6,804) | (6,567) | (5,922) |
General and administrative expenses | (972) | (884) | (766) |
Operating expense | (41,707) | (39,384) | (34,811) |
Cost of inventories | |||
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Operating expense | (32,425) | (30,473) | (26,817) |
Personnel expenses | |||
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Operating expense | (4,691) | (4,503) | (4,011) |
Outsourced services | |||
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Operating expense | (648) | (587) | (523) |
Functional expenses | |||
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Operating expense | (2,376) | (2,304) | (2,079) |
Selling expenses | |||
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Operating expense | (1,003) | (953) | (951) |
Other expenses | |||
DisclosureOfExpensesByNatureLineItems [Line Items] | |||
Operating expense | R$ 564 | R$ 564 | R$ 430 |
27. Other operating expenses132
27. Other operating expenses, net (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfOtherOperatingExpensesNetLineItems [Line Items] | |||
Other operating expenses, net | R$ 579 | R$ 567 | R$ 206 |
Tax installments and other tax risks | |||
DisclosureOfOtherOperatingExpensesNetLineItems [Line Items] | |||
Other operating expenses, net | (217) | (357) | (22) |
Restructuring expenses | |||
DisclosureOfOtherOperatingExpensesNetLineItems [Line Items] | |||
Other operating expenses, net | (107) | (99) | (116) |
Loss (gain) on disposal of fixed assets | |||
DisclosureOfOtherOperatingExpensesNetLineItems [Line Items] | |||
Other operating expenses, net | (247) | (99) | (44) |
Others | |||
DisclosureOfOtherOperatingExpensesNetLineItems [Line Items] | |||
Other operating expenses, net | R$ 8 | R$ 12 | R$ 24 |
28. Financial results, net (Det
28. Financial results, net (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial expenses | R$ 911 | R$ 1134 | R$ 1122 |
Total financial income | 181 | 231 | 354 |
Financial results, net | (730) | (903) | (768) |
Income from short term instruments | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial income | 38 | 84 | 171 |
Monetary restatement gain | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial income | 137 | 137 | 182 |
Other financial income | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial income | 6 | 10 | 1 |
Cost of debt | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial expenses | (498) | (705) | (698) |
Cost of the discounting receivables | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial expenses | (144) | (163) | (120) |
Monetary restatement loss | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial expenses | (131) | (174) | (213) |
Other finance expenses | |||
DisclosureOfFinancialResultsLineItems [Line Items] | |||
Total financial expenses | R$ 138 | R$ 92 | R$ 91 |
29. Earnings per share (Details
29. Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic numerator | |||
Net income (loss) allocated to common and preferred shareholders - continued operations | R$ 482 | R$ 71 | R$ 615 |
Net income (loss) allocated to common and preferred shareholders - discontinued operations | 137 | (411) | (350) |
Net income (loss) allocated to common and preferred shareholders | R$ 619 | R$ 482 | R$ 265 |
Basic denominator | |||
Weighted average of shares | 266,000,000 | 266,000,000 | 266,000,000 |
Diluted numerator | |||
Net income (loss) allocated to common and preferred shareholders - continued operations | R$ 482 | R$ 71 | R$ 615 |
Net income (loss) allocated to common and preferred shareholders - discontinued operations | 137 | (411) | (350) |
Net income (loss) allocated to common and preferred shareholders | R$ 619 | R$ 482 | R$ 265 |
Diluted denominator | |||
Weighted average of shares | 266,000,000 | 266,000,000 | 266,000,000 |
Stock call option | 1,000,000 | 0 | 0 |
Diluted weighted average of shares | 267,000,000 | 266,000,000 | 266,000,000 |
Preferred | |||
Basic numerator | |||
Net income (loss) allocated to common and preferred shareholders - continued operations | R$ 312 | R$ 44 | R$ 397 |
Net income (loss) allocated to common and preferred shareholders - discontinued operations | 89 | (257) | (226) |
Net income (loss) allocated to common and preferred shareholders | R$ 401 | R$ 301 | R$ 171 |
Basic denominator | |||
Weighted average of shares | 166,000,000 | 166,000,000 | 166,000,000 |
Basic earnings per share - continued operations | R$ 1.87356 | R$ 0.26891 | R$ 2.39760 |
Basic earnings per share - discontinued operations | 0.53335 | (1.54778) | (1.36515) |
Basic earnings per share - total | R$ 2.40692 | R$ 1.81669 | R$ 1.03245 |
Diluted numerator | |||
Net income (loss) allocated to common and preferred shareholders - continued operations | R$ 312 | R$ 44 | R$ 397 |
Net income (loss) allocated to common and preferred shareholders - discontinued operations | 89 | (257) | (226) |
Net income (loss) allocated to common and preferred shareholders | R$ 401 | R$ 301 | R$ 171 |
Diluted denominator | |||
Weighted average of shares | 166,000,000 | 166,000,000 | 166,000,000 |
Stock call option | 1,000,000 | 0 | 0 |
Diluted weighted average of shares | 167,000,000 | 166,000,000 | 166,000,000 |
Diluted earnings per share - continued operations | R$ 1.86188 | R$ 0.26891 | R$ 2.39222 |
Diluted earnings per share - discontinued operations | 0.52887 | (1.54778) | (1.36515) |
Diluted: continued and discontinued operations | R$ 2.39074 | R$ 1.81669 | R$ 1.03014 |
Common | |||
Basic numerator | |||
Net income (loss) allocated to common and preferred shareholders - continued operations | R$ 170 | R$ 27 | R$ 218 |
Net income (loss) allocated to common and preferred shareholders - discontinued operations | 48 | (154) | (124) |
Net income (loss) allocated to common and preferred shareholders | R$ 218 | R$ 181 | R$ 94 |
Basic denominator | |||
Weighted average of shares | 100,000,000 | 100,000,000 | 100,000,000 |
Basic earnings per share - continued operations | R$ 1.70324 | R$ 0.26891 | R$ 2.17964 |
Basic earnings per share - discontinued operations | 0.48487 | (1.54778) | (1.24104) |
Basic earnings per share - total | R$ 2.18810 | R$ 1.81669 | R$ 0.93859 |
Diluted numerator | |||
Net income (loss) allocated to common and preferred shareholders - continued operations | R$ 170 | R$ 27 | R$ 218 |
Net income (loss) allocated to common and preferred shareholders - discontinued operations | 48 | (154) | (124) |
Net income (loss) allocated to common and preferred shareholders | R$ 218 | R$ 181 | R$ 94 |
Diluted denominator | |||
Weighted average of shares | 100,000,000 | 100,000,000 | 100,000,000 |
Stock call option | 0 | 0 | 0 |
Diluted weighted average of shares | 100,000,000 | 100,000,000 | 100,000,000 |
Diluted earnings per share - continued operations | R$ 1.69955 | R$ 0.26891 | R$ 2.17964 |
Diluted earnings per share - discontinued operations | 0.48118 | (1.54778) | (1.24104) |
Diluted: continued and discontinued operations | R$ 2.18073 | R$ 1.81669 | R$ 0.93859 |
30. Segment information (Detail
30. Segment information (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of operating segments [line items] | ||||
Net operating revenue | R$ 44634 | R$ 41454 | R$ 37198 | |
Gross profit | 10,703 | 9,521 | 9,075 | |
Depreciation and amortization | (779) | (707) | (650) | |
Profit from operations before net financial expenses and share of profit of associates | 1,569 | 796 | 1,531 | |
Net financial expenses | (730) | (903) | (768) | |
Share of profit of subsidiaries and associates | (60) | 60 | 81 | |
Profit (loss) before income tax and social contribution | 779 | (47) | 844 | |
Income tax and social contribution | (297) | (24) | (229) | |
Net income (loss) for continued operations | 482 | (71) | 615 | |
Net income (loss) for discontinued operations | 383 | (1,005) | (891) | |
Net income (loss) for the year | 865 | (1,076) | (276) | |
Current assets | 33,220 | 31,651 | ||
Noncurrent assets | 14,708 | 13,566 | ||
Current liabilities | 28,992 | 27,582 | ||
Noncurrent liabilities | 5,644 | 5,038 | ||
Shareholders' equity | 13,292 | 12,597 | 13,352 | R$ 14194 |
Food Retail | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 26,194 | 26,967 | 26,745 | |
Gross profit | 7,762 | 7,351 | 7,538 | |
Depreciation and amortization | (604) | (576) | (552) | |
Profit from operations before net financial expenses and share of profit of associates | 747 | 319 | 1,194 | |
Net financial expenses | (682) | (808) | (691) | |
Share of profit of subsidiaries and associates | 64 | 77 | 81 | |
Profit (loss) before income tax and social contribution | 129 | (413) | 584 | |
Income tax and social contribution | (63) | 76 | (140) | |
Net income (loss) for continued operations | 66 | (337) | 444 | |
Net income (loss) for discontinued operations | (33) | (78) | (74) | |
Net income (loss) for the year | 33 | (415) | 370 | |
Current assets | 7,202 | 8,938 | ||
Noncurrent assets | 11,168 | 10,955 | ||
Current liabilities | 7,966 | 9,171 | ||
Noncurrent liabilities | 4,943 | 4,747 | ||
Shareholders' equity | 5,461 | 5,975 | ||
Cash & Carry | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 18,440 | 14,487 | 10,453 | |
Gross profit | 2,941 | 2,170 | 1,537 | |
Depreciation and amortization | (175) | (131) | (98) | |
Profit from operations before net financial expenses and share of profit of associates | 822 | 477 | 337 | |
Net financial expenses | (48) | (95) | (77) | |
Share of profit of subsidiaries and associates | 0 | 0 | 0 | |
Profit (loss) before income tax and social contribution | 774 | 383 | 260 | |
Income tax and social contribution | (234) | (100) | (89) | |
Net income (loss) for continued operations | 540 | 283 | 171 | |
Net income (loss) for discontinued operations | 0 | 0 | 0 | |
Net income (loss) for the year | 540 | 283 | 171 | |
Current assets | 3,093 | 2,417 | ||
Noncurrent assets | 3,568 | 2,620 | ||
Current liabilities | 3,414 | 3,020 | ||
Noncurrent liabilities | 701 | 291 | ||
Shareholders' equity | 2,546 | 1,726 | ||
Assets held for sale and discontinued operations | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Profit from operations before net financial expenses and share of profit of associates | 0 | 0 | 0 | |
Net financial expenses | 0 | 0 | 0 | |
Share of profit of subsidiaries and associates | 0 | 0 | 0 | |
Profit (loss) before income tax and social contribution | 0 | 0 | 0 | |
Income tax and social contribution | 0 | 0 | 0 | |
Net income (loss) for continued operations | 0 | 0 | 0 | |
Net income (loss) for discontinued operations | 416 | (927) | (817) | |
Net income (loss) for the year | 416 | (927) | (817) | |
Current assets | 23,182 | 20,538 | ||
Noncurrent assets | 0 | 0 | ||
Current liabilities | 17,897 | 15,642 | ||
Noncurrent liabilities | 0 | 0 | ||
Shareholders' equity | 5,285 | 4,896 | ||
Subtotal | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 44,634 | 41,454 | 37,198 | |
Gross profit | 10,703 | 9,521 | 9,075 | |
Depreciation and amortization | (779) | (707) | (650) | |
Profit from operations before net financial expenses and share of profit of associates | 1,569 | 796 | 1,531 | |
Net financial expenses | (730) | (903) | (768) | |
Share of profit of subsidiaries and associates | 64 | 77 | 81 | |
Profit (loss) before income tax and social contribution | 903 | (30) | 844 | |
Income tax and social contribution | (297) | (24) | (229) | |
Net income (loss) for continued operations | 606 | (54) | 615 | |
Net income (loss) for discontinued operations | 383 | (1,005) | (891) | |
Net income (loss) for the year | 989 | (1,059) | (276) | |
Current assets | 33,477 | 31,893 | ||
Noncurrent assets | 14,736 | 13,575 | ||
Current liabilities | 29,277 | 27,833 | ||
Noncurrent liabilities | 5,644 | 5,038 | ||
Shareholders' equity | 13,292 | 12,597 | ||
Eliminations/Others | ||||
Disclosure of operating segments [line items] | ||||
Net operating revenue | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Profit from operations before net financial expenses and share of profit of associates | 0 | 0 | 0 | |
Net financial expenses | 0 | 0 | 0 | |
Share of profit of subsidiaries and associates | (124) | (17) | 0 | |
Profit (loss) before income tax and social contribution | (124) | (17) | 0 | |
Income tax and social contribution | 0 | 0 | 0 | |
Net income (loss) for continued operations | (124) | (17) | 0 | |
Net income (loss) for discontinued operations | 0 | 0 | 0 | |
Net income (loss) for the year | (124) | (17) | R$ 0 | |
Current assets | (257) | (242) | ||
Noncurrent assets | (28) | (9) | ||
Current liabilities | (285) | (251) | ||
Noncurrent liabilities | 0 | 0 | ||
Shareholders' equity | R$ 0 | R$ 0 |
30. Segment information (Det136
30. Segment information (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Net operating revenue | R$ 44634 | R$ 41454 | R$ 37198 |
Extra | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | 16,110 | 16,776 | 17,032 |
Assaí | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | 18,440 | 14,487 | 10,454 |
Pão de Açúcar | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | 6,659 | 6,711 | 6,491 |
Proximidade | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | 1,085 | 1,131 | 946 |
Other business | |||
Disclosure of operating segments [line items] | |||
Net operating revenue | R$ 2340 | R$ 2349 | R$ 2275 |
32. Non current assets held 137
32. Non current assets held for sale and discontinued operations (Details) - BRL (R$) R$ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | |||||
Cash and cash equivalents | R$ 3792 | R$ 5112 | |||
Trade receivables, net | 632 | 543 | |||
Inventories, net | 4,822 | 4,641 | |||
Recoverable taxes | 596 | 674 | |||
Other current assets | 271 | 126 | |||
Total current assets | 33,220 | 31,651 | |||
Noncurrent | |||||
Trade receivables, net | 80 | 0 | |||
Recoverable taxes | 1,747 | 632 | |||
Other accounts receivable, net | 642 | 612 | |||
Deferred income tax and social contribution | 121 | 170 | |||
Related parties | 25 | 17 | |||
Investment properties | 21 | 23 | |||
Property and equipment, net | 9,138 | 9,182 | R$ 10377 | ||
Intangible assets, net | 1,924 | 1,908 | 6,543 | ||
Total noncurrent assets | 14,708 | 13,566 | |||
Total assets | 47,928 | 45,217 | |||
Current | |||||
Trade payable, net | 8,128 | 7,232 | |||
Borrowings and financing | 1,251 | 2,957 | |||
Related parties | 153 | 147 | |||
Other current liabilities | 213 | 253 | |||
Total current liabilities | 28,992 | 27,582 | |||
Noncurrent | |||||
Provision for risks | 1,107 | 1,177 | 1,396 | ||
Borrowings and financing | 3,337 | 2,912 | |||
Deferred income tax and social contribution | 394 | 317 | |||
Other noncurrent liabilities | 53 | 46 | |||
Total noncurrent liabilities | 5,644 | 5,038 | |||
Shareholders’ equity | 13,292 | 12,597 | R$ 13352 | R$ 14194 | |
Total liabilities and shareholders’ equity | 47,928 | 45,217 | |||
Cnova N.V. | |||||
Current Assets | |||||
Cash and cash equivalents | R$ 621 | ||||
Trade receivables, net | 365 | ||||
Inventories, net | 900 | ||||
Other current assets | 129 | ||||
Total current assets | 2,836 | 1,457 | 2,015 | ||
Noncurrent | |||||
Deferred income tax and social contribution | 38 | ||||
Related parties | 520 | ||||
Other noncurrent assets | 14 | ||||
Property and equipment, net | 46 | ||||
Intangible assets, net | 423 | ||||
Total noncurrent assets | 796 | 501 | 1,041 | ||
Total assets | 3,632 | 1,958 | 3,056 | ||
Current | |||||
Trade payable, net | 1,319 | ||||
Related parties | 1,300 | ||||
Other current liabilities | 363 | ||||
Total current liabilities | 3,941 | 1,948 | 2,982 | ||
Noncurrent | |||||
Provision for risks | 52 | ||||
Other noncurrent liabilities | 17 | ||||
Total noncurrent liabilities | 174 | 70 | 69 | ||
Shareholders’ equity | (483) | (60) | 5 | ||
Total liabilities and shareholders’ equity | 3,632 | 1,958 | R$ 3056 | ||
Via Varejo | |||||
Current Assets | |||||
Cash and cash equivalents | 3,559 | 4,030 | |||
Trade receivables, net | 3,988 | 2,782 | |||
Inventories, net | 4,379 | 3,054 | |||
Recoverable taxes | 219 | 581 | |||
Other current assets | 168 | 123 | |||
Total current assets | 12,313 | 10,570 | |||
Noncurrent | |||||
Trade receivables, net | 224 | 204 | |||
Recoverable taxes | 2,725 | 2,317 | |||
Other accounts receivable, net | 940 | 615 | |||
Deferred income tax and social contribution | 354 | 289 | |||
Related parties | 539 | 681 | |||
Investment properties | 89 | 144 | |||
Property and equipment, net | 1,711 | 1,550 | |||
Intangible assets, net | 4,287 | 4,170 | |||
Total noncurrent assets | 10,869 | 9,970 | |||
Total assets | 23,182 | 20,540 | |||
Current | |||||
Trade payable, net | 7,726 | 5,618 | |||
Structured payable program | 437 | 489 | |||
Borrowings and financing | 3,802 | 3,532 | |||
Related parties | 139 | 189 | |||
Other current liabilities | 2,177 | 2,231 | |||
Total current liabilities | 14,281 | 12,059 | |||
Noncurrent | |||||
Borrowings and financing | 397 | 407 | |||
Deferred income tax and social contribution | 839 | 849 | |||
Other noncurrent liabilities | 2,380 | 2,329 | |||
Total noncurrent liabilities | 3,616 | 3,585 | |||
Shareholders’ equity | 5,285 | 4,896 | |||
Total liabilities and shareholders’ equity | R$ 23182 | R$ 20540 |
32. Non current assets held 138
32. Non current assets held for sale and discontinued operations (Details 1) - BRL (R$) R$ in Millions | 10 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Net operating revenue | R$ 44634 | R$ 41454 | R$ 37198 | |
Cost of sales | 33,931 | 31,933 | 28,123 | |
Gross profit | 10,703 | 9,521 | 9,075 | |
Operating income (expenses) | ||||
Selling, general and administrative expenses | 6,804 | 6,567 | 5,922 | |
Depreciation and amortization | 779 | 707 | 650 | |
Other operating expenses, net | (579) | (567) | (206) | |
Total operating expenses | 9,134 | 8,725 | 7,544 | |
Profit (loss) from operations before financial expenses and share of profit of associates | 1,569 | 796 | 1,531 | |
Financial expenses, net | (730) | (903) | (768) | |
Share of profit of associates | (60) | 60 | 81 | |
Income (loss) before income tax and social contribution | 779 | (47) | 844 | |
Income tax and social contribution | 297 | 24 | 229 | |
Net income (loss) from discontinued operations | 383 | (1,005) | (891) | |
Net income (loss) for the year | 865 | (1,076) | (276) | |
Attributed to: | ||||
Non-controlling shareholders | 246 | (594) | (541) | |
Controlling shareholders | 619 | (482) | ||
Non-controlling shareholders | 246 | (594) | (541) | |
Cnova N.V. | ||||
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Net operating revenue | R$ 5509 | 7,651 | 7,187 | 6,599 |
Cost of sales | (4,973) | (6,025) | ||
Gross profit | 536 | 573 | ||
Operating income (expenses) | ||||
Selling, general and administrative expenses | (527) | (662) | ||
Depreciation and amortization | (63) | (74) | ||
Other operating expenses, net | (69) | (168) | ||
Total operating expenses | (659) | (904) | ||
Profit (loss) from operations before financial expenses and share of profit of associates | (123) | (72) | (146) | (331) |
Financial expenses, net | (9) | 27 | ||
Income (loss) before income tax and social contribution | (132) | (304) | ||
Income tax and social contribution | (24) | (61) | ||
Net income (loss) from discontinued operations | (156) | (365) | ||
Net income (loss) for the year | (156) | (367) | (224) | (319) |
Attributed to: | ||||
Controlling shareholders | (48) | (113) | ||
Non-controlling shareholders | R$ 108 | (252) | ||
Via Varejo | ||||
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Net operating revenue | 25,690 | 23,215 | 25,447 | |
Cost of sales | (17,343) | (16,201) | (18,780) | |
Gross profit | 8,347 | 7,014 | 6,667 | |
Operating income (expenses) | ||||
Selling, general and administrative expenses | (6,791) | (6,084) | (5,680) | |
Depreciation and amortization | 0 | (207) | (237) | |
Other operating expenses, net | (218) | (389) | (231) | |
Total operating expenses | (7,009) | (6,680) | (6,148) | |
Profit (loss) from operations before financial expenses and share of profit of associates | 1,338 | 334 | 519 | |
Financial expenses, net | (770) | (1,075) | (899) | |
Share of profit of associates | 26 | 30 | 31 | |
Income (loss) before income tax and social contribution | 594 | (711) | (349) | |
Income tax and social contribution | (161) | (34) | (87) | |
Net income (loss) for the year | 433 | (745) | (436) | |
Attributed to: | ||||
Controlling shareholders | 187 | (268) | (148) | |
Non-controlling shareholders | 246 | (477) | (288) | |
Via Varejo | Adjustment | ||||
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Net operating revenue | (36) | (22) | (24) | |
Cost of sales | (8) | (7) | (6) | |
Operating income (expenses) | ||||
Selling costs | 0 | 1 | 2 | |
General and administrative expenses | (1) | 0 | 0 | |
Financial expenses, net | 21 | 5 | 6 | |
Income tax and social contribution | 6 | 6 | 6 | |
Net income (loss) for the year | R$ 18 | R$ 17 | R$ 16 |
32. Non current assets held 139
32. Non current assets held for sale and discontinued operations (Details 2) - BRL (R$) R$ in Millions | 10 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Cash flow provided by (used in) operating activities | R$ 1895 | R$ 1304 | R$ 4632 | |
Net cash used in investing activities | (1,592) | (2,020) | (1,852) | |
Net cash provided by (used in) financing activities | (2,094) | 1,475 | (3,006) | |
Exchange rate in cash and cash equivalents | 0 | (24) | 92 | |
Cash variation for the year | (1,791) | (1,849) | (226) | |
Cnova N.V. | ||||
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Cash flow provided by (used in) operating activities | R$ 998 | (730) | ||
Net cash used in investing activities | 54 | (112) | ||
Net cash provided by (used in) financing activities | 950 | 404 | ||
Exchange rate in cash and cash equivalents | (24) | 92 | ||
Cash variation for the year | R$ 18 | (346) | ||
Via Varejo | ||||
DisclosureOfAssetsHeldForSaleAndDiscontinuedOperationsLineItems [Line Items] | ||||
Cash flow provided by (used in) operating activities | 70 | (2,636) | 2,445 | |
Net cash used in investing activities | (333) | (237) | (420) | |
Net cash provided by (used in) financing activities | (208) | 226 | (658) | |
Cash variation for the year | R$ 471 | R$ 2647 | R$ 1367 |
32. Non current assets held 140
32. Non current assets held for sale and discontinued operations (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non Current Assets Held For Sale And Discontinued Operations Details Narrative | |||
Assets held for sale | R$ 22961 | R$ 20303 | |
Non current liabilities held for sale | 17,824 | 15,632 | |
Net income (loss) from discontinued operations | R$ 383 | R$ 1005 | R$ 891 |
33. Insurance coverage (Details
33. Insurance coverage (Details) R$ in Millions | 12 Months Ended |
Dec. 31, 2017BRL (R$) | |
Property and equipment and inventories | |
Disclosure of types of insurance contracts [line items] | |
Covered risks | Assigning profit |
Amount insured | R$ 16369 |
Profit | |
Disclosure of types of insurance contracts [line items] | |
Covered risks | Loss of profits |
Amount insured | R$ 8338 |
Cars and Others | |
Disclosure of types of insurance contracts [line items] | |
Covered risks | Damages |
Amount insured | R$ 412 |