L'Oréal - 2018 Registration Document

2018 Consolidated Financial Statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table provides an analysis of financial instruments recorded at fair value by level of the fair value hierarchy.

€ millions 31 December 2018 Assets at fair value Foreign exchange derivatives

level 1

level 2

level 3 Total fair value

149.6

149.6

Sanofi shares

8,945.0 1,899.8

8,945.0 1,899.8

Marketable securities

TOTAL ASSETS AT FAIR VALUE Liabilities at fair value Foreign exchange derivatives TOTAL LIABILITIES AT FAIR VALUE

10,844.8

149.6

-

10,994.4

182.5 182.5

182.5 182.5

-

-

€ millions 31 December 2017

level 1

level 2

level 3

Total fair value

Assets at fair value Foreign exchange derivatives

230.3

230.3

4

Sanofi shares

8,494.6 1,810.4

8,494.6 1,810.4

Marketable securities

TOTAL ASSETS AT FAIR VALUE Liabilities at fair value Foreign exchange derivatives TOTAL LIABILITIES AT FAIR VALUE

10,305.0

230.3

-

10,535.3

190.5 190.5

190.5 190.5

-

-

€ millions 31 December 2016

level 1

level 2

level 3

Total fair value

Assets at fair value Foreign exchange derivatives

254.2

254.2

Sanofi shares

9,091.7

9,091.7

Marketable securities

758.4

758.4

TOTAL ASSETS AT FAIR VALUE Liabilities at fair value Foreign exchange derivatives TOTAL LIABILITIES AT FAIR VALUE

9,850.1

254.2

-

10,104.3

330.4 330.4

330.4 330.4

-

-

Offsetting financial assets and financial liabilities 10.9. Financial assets and liabilities resulting from foreign exchange and/or interest rate hedging transactions entered into with the Group’s counterparty banks are not offset in the balance sheet since they are FBF (French Banking Federation) or ISDA (International Swaps and Derivatives Association) agreements that only provide for offsetting in the event of default by one of the parties to the agreement. Accordingly, they do not meet the offsetting criteria set out in IAS 32. Had the agreements been offset at the level of each counterparty bank, assets and liabilities would have decreased by €65.5 million, €80.1 million and €125.4 million respectively at 31 December 2018, 2017 and 2016.

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