L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Inventories, Trade accounts receivable and Other current assets 3.3. Inventories 3.3.1.

31.12.2018

31.12.2017 31.12.2016

€ millions

Finished products and consumables

2,599.5

2,302.2

2,446.4

Raw materials, packaging and semi-finished products

594.3

507.4

550.3

Gross value

3,193.8

2,809.6

2,996.8

Valuation allowance Inventories – net

371.9

315.0

298.2

2,821.9

2,494.6

2,698.6

Trade accounts receivable 3.3.2.

31.12.2018

31.12.2017 31.12.2016

€ millions

Gross value

4,032.7

3,969.8

3,993.4

Valuation allowance

49.4

46.4

51.6

Net value

3,983.2

3,923.4

3,941.8

4

Trade accounts receivable are due within one year. The impairment of trade accounts receivables reflects the level of expected losses on the customer portfolio from the outset of the receivable. Moreover, except when local conditions do not allow, the Group has insurance cover for the subsidiaries.

The non-collection risk on trade receivables is therefore minimised, and this is reflected in the level of the allowance, which is less than 2% of gross receivables at the end of 2018.

Other current assets 3.3.3.

31.12.2018

31.12.2017 31.12.2016

€ millions

Tax and employee-related receivables (excluding income tax)

617.9 338.5 175.6

546.2 295.8 240.5

548.6 312.0 254.2

Prepaid expenses

Derivatives

Current financial assets Other current assets

23.1

23.6

49.5

354.0

287.7

256.1

TOTAL

1,509.1

1,393.8

1,420.4

Other current liabilities 3.4.

31.12.2018

€ millions

31.12.2017 31.12.2016

Tax and employee-related payables (excluding income tax)

1,406.6 1,026.0

1,268.8

1,301.1

Credit balances on trade receivables

944.6 178.5 190.5 241.5

855.0 196.5 330.4 171.4

Fixed asset payables

279.9 182.5 243.9

Derivatives

Other current liabilities

TOTAL

3,138.9

2,823.9

2,854.4

Changes in working capital 3.5. This caption amounts to €113.8 million, €261.1 million and €4.3 million respectively in 2018, 2017 and 2016, and can be analysed as follows:

2018 -292.8 -83.1 392.9

2017 -82.6

2016

€ millions

Inventories

-196.4 -238.4 169.9 269.2

Trade accounts receivable Trade accounts payable

-266.7 317.1 293.3 261.1

Other receivables and payables

96.8

TOTAL

113.8

4.3

REGISTRATION DOCUMENT / L'ORÉAL 2018

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