LOREAL_Registration_Document_2017

4 2017 Consolidated Financial Statements* NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

31.12.2017

31.12.2016 31.12.2015

€ millions

Finished products and consumables

2,302.2

2,446.4

2,191.3

Raw materials, packaging and semi-finished products

507.4

550.3

517.4

Gross value

2,809.6

2,996.8

2,708.7

Valuation allowance Inventories – net

315.0

298.2

268.0

2,494.6

2,698.6

2,440.7

Trade accounts receivable 3.3.2.

31.12.2017

31.12.2016 31.12.2015

€ millions

Gross value

3,969.8

3,993.4

3,677.8

Valuation allowance

46.4

51.6

50.1

Net book value

3,923.4

3,941.8

3,627.7

Trade accounts receivable are due within one year. Group policy is to recommend credit insurance coverage as far as local conditions allow.

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 2017.

Other current assets 3.3.3.

31.12.2017

31.12.2016 31.12.2015

€ millions

Tax and employee-related receivables (excluding income tax) (1)

546.2 295.8 240.5

548.6 312.0 254.2

544.9 300.4 283.0 101.7 256.9

Prepaid expenses

Derivatives

Current financial assets (2)

23.6

49.5

Other current assets

287.7

256.1

TOTAL

1,393.8

1,420.4

1,486.9

Including the €189.5 million fine paid in April 2015 following the decision of the competition authority in France (note 11.2.2.b). (1) Nestlé repaid €43.9 million of loans in July and August 2016. (2)

Other current liabilities 3.4.

31.12.2017

31.12.2016 31.12.2015

€ millions

Tax and employee-related payables (excluding income tax)

1,268.8

1,301.1

1,241.8

Credit balances on trade receivables

944.6 178.5 190.5 241.5

855.0 196.5 330.4 171.4

841.7 156.3 205.4 152.1

Fixed asset payables

Derivatives

Other current liabilities

TOTAL

2,823.9

2,854.4

2,597.3

Changes in working capital 3.5. This caption amounts to €261.1 million, €4.3 million and - €217.5 million respectively in 2017, 2016 and 2015, and can be analysed as follows:

2017 -82.6 -266.7 317.1 293.3 261.1

2016

2015

€ millions

Inventories

-196.4 -238.4 169.9 269.2

-110.0 -275.2 395.7 -228.0 -217.5

Trade accounts receivable Trade accounts payable

Other receivables and payables

TOTAL

4.3

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