222
Annual Report -
2013
-
Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 1. Accounting policies and valuation methods
Net cash used for investing activities
Net cash used for investing activities includes changes in net working
capital related to property, plant and equipment, and intangible assets
as well as cash from investments (particularly dividends received from
equity affiliates). It also includes any cash flows arising from the gain or
loss of control of subsidiaries.
Net cash used for financing activities
Net cash used for financing activities includes net interest paid on
borrowings, cash and cash equivalents, bank overdrafts, as well as
the cash impact of other items related to financing activities such as
premiums from the early redemption of borrowings and the settlement
of derivative instruments. It also includes cash flows from changes in
ownership interests in a subsidiary that do not result in a loss of control
(including increases in ownership interests).
1.2.3.
Operating performance of each operating segment and of the group
Vivendi considers Adjusted Earnings Before Interest and Tax (EBITA),
Adjusted net income (ANI), and Cash Flow From Operations (CFFO), non-
GAAP measures, to be relevant indicators of the group’s operating and
financial performance.
EBITA
Vivendi considers EBITA, a non-GAAP measure, to be a relevant measure
to assess the performance of its operating segments as reported in
the segment data. The method used in calculating EBITA excludes the
accounting impact of the amortization of intangible assets acquired
through business combinations, impairment losses on goodwill and
other intangibles acquired through business combinations, and other
income and charges related to financial investing transactions and to
transactions with shareowners. This enables Vivendi to measure and
compare the operating performance of operating segments regardless of
whether their performance is driven by the operating segment’s organic
growth or acquisitions.
The difference between EBITA and EBIT consists of the amortization of
intangible assets acquired through business combinations, impairment
losses on goodwill and other intangibles acquired through business
combinations, as well as other financial income and charges related to
financial investing transactions and to transactions with shareowners
that are included in EBIT. The charges and income related to financial
investing transactions include gains and losses recognized in business
combinations, capital gains or losses related to divestitures or the
depreciation of equity affiliates and other financial investments, as well
as gains or losses incurred from the gain or loss of control in a business.
Adjusted net income
Vivendi considers adjusted net income, a non-GAAP measure, to
be a relevant measure to assess the group’s operating and financial
performance. Vivendi Management uses adjusted net income because
it better illustrates the underlying performance of continuing operations
by excluding most non-recurring and non-operating items. Adjusted net
income includes the following items:
EBITA (**);
income from equity affiliates (*) (**);
interest (*) (**), corresponding to interest expense on borrowings
net of interest income earned on cash and cash equivalents;
income from investments (*) (**), including dividends and interest
received from unconsolidated companies; and
taxes and non-controlling interests related to these items.
It does not include the following items:
amortization of intangibles acquired through business
combinations (**) as well as impairment losses on goodwill and
other intangibles acquired through business combinations (*) (**);
other income and charges related to financial investing transactions
and to transactions with shareowners (*), as defined above;
other financial charges and income (*) (**), equal to the profit and
loss related to the change in value of financial assets and the
termination or change in value of financial liabilities, which primarily
include changes in fair value of derivative instruments, premiums
from the early redemption of borrowings, the early unwinding of
derivative instruments, the cost of issuing or cancelling credit
facilities, the cash impact of foreign exchange transactions (other
than those related to operating activities, included in the EBIT),
as well as the effect of undiscounting assets and liabilities, and
the financial components of employee benefits (interest cost and
expected return on plan assets);
earnings from discontinued operations (*) (**); and
provisions for income taxes and adjustments attributable to non-
controlling interests and non-recurring tax items (notably the
changes in deferred tax assets pursuant to Vivendi SA’s tax group
and the Consolidated Global Profit Tax Systems, and the reversal of
tax liabilities relating to risks extinguished over the period).
(*)
Items as presented in the Consolidated Statement of Earnings.
(**)
Items as reported by each operating segment.
