FORM 20-F Grupo Casa Saba, S.A.B. de C.V.

Table of Contents
ii) Change in the tax consolidation regime which required for determining at December 31, 2009 annual income tax as if tax consolidation rules had not existed since 1999 and
henceforth. Therefore, the restated income tax that is related to the benefits of tax consolidation obtained as of that year, is paid for: (a) operating tax losses and losses on sale of stock
used in tax consolidation that would have not been carried forward individually by the entity that incurred them; (b) special consolidation items for transactions among entities of the
Group; and (c) dividends paid among entities of the Group that are paid out of earnings not taxed for income tax purposes in the past.
As a result of tax deconsolidation and the resulting payments of income taxes discussed in the paragraph a) in this same Note, the reversal process of tax benefits generated up to
December 31, 2009 referred in the paragraph above is no longer applicable to the Group.
Effective 2011, the Company again adopted the tax consolidation regime; therefore, the benefits generated in tax consolidation will be reversed by considering the terms and
percentages set forth in the Income Tax Law.
19. Operating segments:
Effective January 1, 2011, the Group adopted Mexican FRS B-5, “Financial information by segment” (FRS B-5), which superseded Bulletin B-5 with the same name. That adoption had
no impact on the consolidated financial statements.
Operating segments are the components of an entity oriented toward production and sale of goods, as well as rendering services. The Group operates on a regional basis by
considering the distribution segment and retail pharmacy segment. Each regional director supervises and is responsible for all the business activities in each unit. These activities
refer to the distribution of pharmaceutical products, as well as health and beauty aids/other products, entertainment products, food/non-perishable products through its operating
subsidiaries. The Group distributes these product lines through its distribution network, as well as retail pharmacies throughout Mexico, as well as Rio de Janeiro, Brasil and, effective
2010, Chile and Peru.
The regional director, who is one level below the chief financial officer and chief executive officer in the organizational structure, reports to such officers the operating results of the
business unit. The Group’s management internally evaluates the results and performance of each business unit for decision-making purposes.
The main indicator used by Group’s management to evaluate the performance of each entity is operating EBITDA, which the Group defines as operating income plus depreciation and
amortization. This indicator, which is presented in the selected financial information, is consistent with the information used by Group’s management for decision-making
purposes. The accounting policies applied to determine the financial information by operating segment are consistent with those described in Note 3).
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