LOREAL_Registration_Document_2017

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

Number of shares 517,623,734 45,904,768

Diluted earnings per share

Diluted earnings per share of continuing operations

2017

Shares carrying ordinary dividend rights Shares carrying preferential dividend rights

6.30 6.93

6.73 7.40

Number of shares

Diluted earnings per share

Diluted earnings per share of continuing operations

2016

Shares carrying ordinary dividend rights Shares carrying preferential dividend rights

523,478,712 41,030,423

5.46 6.01

5.46 6.01

Number of shares

Diluted earnings per share

Diluted earnings per share of continuing operations

2015

Shares carrying ordinary dividend rights Shares carrying preferential dividend rights

529,927,154 34,964,234

5.80 6.38

5.80 6.38

Contingent liabilities and material ongoing disputes Provisions for liabilities and charges –

NOTE 11

Provisions for liabilities and charges 11.1.

These provisions are estimated on the basis of the assumptions deemed most probable or by using statistical methods, depending on the type of provisions. Provisions for liabilities and charges are recorded either as Non-current liabilities or as Current liabilities , depending on their nature. Provisions for liabilities or litigation which must be settled within 12 months of the closing date, and those linked to the normal operating cycle (such as product returns), are recorded as Current liabilities . Other provisions for liabilities and charges are recorded as Non-current liabilities .

ACCOUNTING PRINCIPLES Provisions for liabilities and charges are set up to cover probable outflows for the benefit of third parties without any equivalent consideration being received by the Group in return. They relate mainly to restructuring costs and tax risks and litigation, industrial, environmental and commercial risks relating to operations (breach of contract, product returns) and employee-related risks.

REGISTRATION DOCUMENT / L'ORÉAL 2017

270