Danone // 2020 Universal Registration Document

4 111 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 16. Related party transactions Note 15.2. Other non-current provisions and liabilities As of December 31 (in € millions) 2019 2020 Other non-current provisions 557 513 Other non-current liabilities (a) 621 591 Total (b) 1,178 1,104 (a) These relate to uncertain income tax positions. (b) The current portion totaled €71 million as of December 31, 2020 (€65 million as of December 31, 2019). Note 15.3. Changes in Other provisions Changes during the period (in € millions) As of January 1, 2020 Changes in consolida- tion scope Increase Reversal of provisions used Reversal of provisions not used Translations adjustments Other As of December 31, 2020 Tax and territorial risks (a) 113 − 19 (2) (11) (30) 2 92 Employee-related and commercial disputes and other provisions 380 - 101 (40) (68) (20) 1 354 Restructuring provisions 64 − 58 (50) (5) − − 67 Total 557 − 178 (92) (84) (51) 4 513 (a) These concern those risks not relating to income tax, which are presented in Other non-current liabilities. Changes in Other provisions in 2020 were as follows: • increases resulted primarily from lawsuits against the Company and its subsidiaries in the normal course of business; • reversals of provisions used occurred when the corresponding payments were made. Reversals of provisions not used related mainly to reassessments and situations where some risks ceased to exist. They related to several provisions, none of which is material individually. As of December 31, 2020, provisions for tax risks, territorial (not related to income taxes) and commercial, employee-related, and other disputes included several provisions for legal, financial, tax and territorial risks, as well as provisions for multi-year variable compensation granted to some employees, with these provisions established in the context of the normal course of business. Also, as of this date, Danone believes that it is not subject to known risks that could, individually, have a material impact on its financial si- tuation or its profitability. Note 15.4. Legal and arbitration proceedings In general, the Company and its subsidiaries are parties to legal proceedings arising in the normal course of business, in particular by customs and competition authorities in certain countries. Provisions are recognized when an outflow of resources is probable and the amount can be reliably estimated. To the best of the Danone’s knowledge, no governmental, court or arbitration proceedings are currently ongoing that are likely to have, or have had in the past 12 months, a material impact on Danone’s financial position or profitability. NOTE 16. RELATED PARTY TRANSACTIONS Note 16.1. Accounting principles Themain related parties are the associated companies, themembers of the Executive Committee and themembers of the Board of Directors. Note 16.2. Transactions with associates Transactions with these companies are generally carried out at arm’s length. They mainly involve management fees and royalties paid to Danone, services (mainly logistics) and financing. As in 2019, the amounts pertaining to 2020 are not material.