LOREAL_Registration_Document_2017

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

Change in the scope of consolidation (1)

€ million 2017

Acquisitions/ Amortisation

Disposals/ Reversals

Other movements 31.12.2017

31.12.2016

Brands with indefinite useful life (2) Amortisable brands and product ranges

2,219.5

-

- -

-260.3

-198.2

1,761.0

117.9 323.6

0.1 0.4

1.0 1.0

-7.9 -6.7 41.1 -65.8

111.0 308.3

Licences and patents

-10.1 -44.9

Software

1,151.2

67.1

-42.4

1,172.0

Customer relationships

606.8

-

-1.4 -2.4

3.0

542.6

Key money

82.3

7.7

-36.9 -52.4

2.2

53.0

Other

263.6

140.3 215.7

-27.3 -86.1

-125.8 -361.1

198.5

Gross value

4,765.0

-387.0

4,146.4

Brands with indefinite useful life

165.5

-

- -

-

-10.7

154.8

Amortisable brands and product ranges

79.8

4.1

-1.5

-4.2 -3.1

78.2

Licences and patents

150.5 804.5 290.9

11.7

-10.1 -44.9

-

149.0 816.6 349.6

Software

127.7

-26.9

-43.8 -36.5

Customer relationships

96.6

-1.4 -2.4

-

Key money

19.5 74.9

4.7 5.3

-14.0 -38.7 -81.0

0.7

8.6

Other

-26.8 -85.5

-4.3

10.4

Amortisation and provisions Other intangible assets – net

1,585.5 3,179.4

250.2 -34.5

-101.9 -259.2

1,567.4 2,579.1

-0.6

-305.9

This item consists mainly of changes in the scope of consolidation: The Body Shop and CeraVe. (1) At 31 December 2017, brands with an indefinite useful life consist mainly of Matrix (€298.3 million), IT Cosmetics (€201.5 million), CeraVe (€173.7 million), Kiehl’s (2) (€132.4 million), Shu Uemura (€103.8 million), NYX Professional Makeup (€95.0 million), Clarisonic (€92.1 million), Decléor and Carita (€81.4 million), and Magic (€80.8 million).

Other movements mainly consisted of the negative change in exchange rates over the period of -€241.7 million.

Accumulated impairment losses amounted to €14.0 million on Biomedic, €42.6 million on Yue-Sai, €52.2 million on Softsheen-Carson and €46.1 million on Magic at 31 December 2017.

Change in the scope of consolidation (1)

€ million 2016

Other movements

Acquisitions/ Amortisation

Disposals/ Reversals

31.12.2016

31.12.2015

Brands with indefinite useful life (2) Amortisable brands and product ranges

2,031.5

-

- -

234.1

-46.0

2,219.5

116.1 319.6

1.8 2.6

-

0.1 1.0

117.9 323.6

Licences and patents

-0.4

0.9 0.1

Software

1,031.2

87.2

-52.0

84.7 12.0

1,151.2

Customer relationships

539.5

-

-

55.2

606.8

Key money

70.0

12.1

-1.5 -0.1

0.5 0.0

1.3

82.3

Other

232.2

106.9 210.6

-75.4 -22.5

263.6

Gross value

4,340.1

-54.1

290.9

4,765.0 165.51

Brands with indefinite useful life

116.9

49.0

- -

- -

-0.3 -1.1 -0.4

Amortisable brands and product ranges

76.3

4.6

79.8

Licences and patents

135.5 739.6 241.1

15.5

-0.5

0.3 0.0 0.0 0.0 0.0 0.3

150.5 804.5 290.9

Software

109.5

-52.0

7.5 8.7 0.0

Customer relationships

41.0

-

Key money

17.1 70.8

3.8 7.0

-1.4 -0.1

19.5 74.9

Other

-2.8

Amortisation and provisions Other intangible assets – net

1,397.2 2.942.9

230.5 -19.9

-54.0

11.6 -34.1

1,585.5 3,179.4

-0.2

290.6

This item consists mainly of changes in the scope of consolidation resulting from IT Cosmetics. (1) At 31 December 2016, brands with an indefinite useful life consist mainly of The Body Shop (€486.5 million), Matrix (€330.1 million), IT Cosmetics (€228.6 million), Kiehl’s (2) (€145.1 million), Magic (€135.2 million), Shu Uemura (€110.8 million), NYX Professional Makeup (€106.3 million), Clarisonic (€102.5 million) and Decléor and Carita (€81.4 million).

Other movements mainly consisted of the negative change in exchange rates over the period for -€29.8 million.

Accumulated impairment losses amounted to €14.0 million on Biomedic, €45.4 million on Yue-Sai, €57.0 million on Softsheen-Carson and €49.1 million on Magic at 31 December 2016.

REGISTRATION DOCUMENT / L'ORÉAL 2017

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