Only options with an exercise price below the said average share price are included in the calculation of the number of shares representing the diluted capital.
NOTE 2.24 OPERATING SEGMENTS
NOTE 2.25 FREE CASH FLOW
Free cash ﬂow is equal to net cash provided by operating activities plus cash used in investing activities — excluding cash used for acquisitions of companies, net of cash acquired.
NOTE 2.26 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Operating segment reporting is based directly on the Group’s performance tracking and review systems. The operating segments disclosed in note 35 are identical to those covered by the information regularly communicated to the Executive Committee, in its capacity as the Group’s “chief operating decision maker”. Operating segments refer to the major marketing regions that combine countries with similar economic characteristics in terms of type of product and service, customer type and distribution method. The regions concerned are: the Americas, Europe, Asia-Paciﬁc, and the rest of the world, where the company operates chieﬂy in North Africa, South Africa, Turkey, Israel, and the Middle East. These regions are involved in sales and the provision of services to their customers. They do not perform any industrial activities or R&D. They draw on centralized competencies and a wide array of functions that are pooled among all of the regions, including marketing, communication, logistics, procurement, manufacturing, R&D, ﬁnance, legal affairs, human resources, and information systems. All of these cross-divisional activities are reported as an additional operating segment referred to here as the “Corporate” segment. Performance is measured by the segment’s income from operations before non-recurring items and impairment of assets, if any. Marketing regions derive their revenues from external customers; all inter-segment billings are excluded from this item. The gross proﬁt margins used to determine operating performance are identical for all regions. They are computed for each product line and include added value supplied by the Corporate segment. Consequently, for products or services supplied in full or in part by the Corporate segment, a percentage of consolidated gross proﬁt is retained in the income computed for the Corporate segment in order to cover its costs. Since most of the Corporate segment’s general overheads are ﬁxed, its proﬁt margin and consequently its income from operations depend mainly on the volume of business generated by marketing regions.
Preparation of the ﬁnancial statements in accordance with IFRS demands that certain critical accounting estimates be made. Management is also required to exercise its judgment in applying the Group’s accounting policies. Although such estimates are made in a particularly uncertain environment, their relevance is supported by the Group’s business model features. The areas involving a higher degree of judgment or complexity, or requiring material assumptions and estimates in relation to the consolidated ﬁnancial statements, relates to goodwill impairment (see note 6) and deferred taxation (see note 11.3).
NOTE 2.27 TRANSLATION METHODS