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FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
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Registration Document 2016 — Capgemini
incentive instruments
capital instruments (share subscription options, reserved shares
and performance shares) granted by IGATE prior to the acquisition
and to fix the price thereof based on the transaction price. A cash
amount will therefore be granted at the initial vesting dates
Capgemini Group decided to maintain the vesting conditions of
In the context of the acquisition of IGATE on July 1, 2015, the
associated with these instruments at the vesting date.
calculated based on a price of US$48. The cash payment for
share subscription options and reserved shares not vested at
July 1, 2015 will be made primarily in 2015 (post acquisition),
2016 and 2017 subject to compliance with the presence condition
instruments in the course of vesting is spread over the period
between the different grant and vesting dates. Accordingly, a
provision of US$54 million was recognized in the opening balance
sheet in respect of services rendered between the grant dates and
The payment in respect of vested capital instruments is
US$42 million. The US$75.5 million expense in respect of
An expense of €7.7 million was recognized in respect of 2016
(€9.9 million in 2015).
the date of acquisition of IGATE. The expense in respect of the
period after the acquisition date is estimated at US$21.5 million
and will be recognized progressively in the Income Statement over
the period from the acquisition date to the relevant vesting dates.
Alternative performance measures
Note 3
The alternative performance measures monitored by the Group
are defined as follows:
employees (including social security contributions and employer
contributions), and non-recurring revenues and expenses,
notably impairment of goodwill, negative goodwill, capital gains
or losses on disposals of consolidated companies or
expenses. It is calculated before “Other operating income and
expenses” which include amortization of intangible assets
recognized in business combinations, the charge resulting from
the deferred recognition of the fair value of shares granted to
Operating margin
is equal to revenues less operating
◗
businesses, restructuring costs incurred under a detailed formal
plan approved by the Group’s management, the cost of
companies acquired, and the effects of curtailments, settlements
and transfers of defined benefit pension plans;
acquiring and integrating companies acquired by the Group,
including earn-outs comprising conditions of presence in
Normalized earnings per share
are calculated by dividing
normalized profit or loss attributable to owners of the Company
by the weighted average number of ordinary shares outstanding
during the period, excluding treasury shares. Normalized net
profit or loss is equal to profit for the period attributable to
owners of the Company corrected for the impact of items
recognized in other operating income and expense (see Note 8,
Other operating income and expense), net of tax calculated
using the effective tax rate;
Net debt
(or net cash and cash equivalents) comprises (i) cash
◗
and cash equivalents, as presented in the Consolidated
Statement of Cash Flows (consisting of short-term investments
and cash at bank) less bank overdrafts, and also including (ii)
cash management assets (assets presented separately in the
Consolidated Statement of Financial Position due to their
characteristics), less (iii) short- and long-term borrowings.
Account is also taken of (iv) the impact of hedging instruments
when these relate to borrowings and own shares;
less acquisitions of property, plant, equipment and intangible
assets (net of disposals) and adjusted for flows relating to the
net interest cost.
Organic free cash flow
calculated based on items in the
◗
Statement of Cash Flows is equal to cash flow from operations