Danone // 2020 Universal Registration Document

4 85 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 8. Number of employees, personnel costs and employee benefits NOTE 8. NUMBER OF EMPLOYEES, PERSONNEL COSTS AND EMPLOYEE BENEFITS Note 8.1. Number of employees at fully consolidated companies Number of employees as of December 31 and breakdown by Reporting Entity and geographical area As of December 31 2019 2020 Total number of employees 102,449 101,911 By geographical area Europe and North America 31% 32% North America 6% 6% Europe 25% 26% Rest of the World 69% 68% Asia, Pacific and Middle East 21% 21% China 8% 8% CIS 9% 9% Africa 8% 8% Latin America 23% 23% Total 100% 100% By Reporting entity EDP 41% 41% Specialized Nutrition 21% 21% Waters 35% 35% Corporate functions 3% 3% Total 100% 100% Note 8.2. Personnel costs of fully consolidated companies Year ended December 31 (in € millions) 2019 2020 Salaries and social security charges (a) (3,917) (3,990) Retirement obligations – defined benefit plans (b) (37) (43) Expenses relating to Group performance shares (GPS) (28) (16) (a) Salaries after social security charges. Also comprises the contributions in respect of defined contribution retirement plans. (b) Service cost. Note 8.3. Retirement commitments, retirement indemnities and personal protection General principles The Group contributes to employee retirement benefit plans in ac- cordance with the laws and usual practices of countries in which its subsidiaries operate. The Group has no actuarial liability in respect of contributions paid under such plans to private or state sponsored pension funds. The Group also has contractual obligations for sup- plementary retirement plans, severance pay, retirement indemnities and personal protection plans. The related actuarial commitments are taken into account either through the payment of contributions to independently-managed funds responsible for their service and the fund administration, or through provisions. Accounting principles Defined contribution retirement plans Contributions due under defined contribution plans are expensed as incurred. These expenses are allocated to different headings in the consolidated income statement. Defined benefit retirement plans The Group’s obligations relating to defined benefit retirement plans are calculated using the projected unit credit method and by taking into account actuarial assumptions, including employee turnover, salary increases and employees’ expected active lives.