DANONE - Registration document 2015

4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Notes to the consolidated financial statements

DANONE

REGISTRATION DOCUMENT 2015

Notes to the consolidated financial statements

TABLE OF CONTENTS

NOTE 1. ACCOUNTING PRINCIPLES

Note 1.1. Basis for preparation

Note 1.2. Accounting framework applied

NOTE 2.FULLY CONSOLIDATED COMPANIES

Note 2.1. Accounting principles

Note 2.2. Main changes during the period

Note 2.3. Main fully consolidated companies

Note 2.4. Accounting for acquisitions resulting in control

being obtained in 2015

Note 2.5. Finalization in 2015 of the accounting for

the acquisitions resulting in control being

obtained carried out in 2014

Note 2.6. Liabilities/assets linked to earn-outs related

to acquisitions resulting in control being obtained 84

NOTE 3. NON-CONTROLLING INTERESTS

AND RELATED LIABILITIES

Note 3.1. Accounting principles

Note 3.2. Main companies in terms of net income and

consolidated net assets, fully consolidated

but not fully-owned

Note 3.3. Transactions relating to non-controlling

interests in the Danone-Unimilk group

(Fresh Dairy Products, CIS)

Note 3.4. Transactions relating to non-controlling

interests in Danone Spain

(Fresh Dairy Products, Spain)

Note 3.5. Transactions relating to non-controlling

interests in Centrale Danone

(Fresh Dairy Products, Morocco)

Note 3.6. Liabilities related to put options granted to

non-controlling interests

NOTE 4. ASSOCIATES

Note 4.1. Accounting principles

Note 4.2. Main associates in terms of net income and

consolidated net assets

Note 4.3. Main changes during the period

Note 4.4. Mengniu (Fresh Dairy Products, China) and

Yashili (Medical Nutrition, China)

Note 4.5. Yakult (Fresh Dairy Products, Japan)

Note 4.6. Carrying amount and change during the period 92

Note 4.7. Impairment review of Investments in

associates other than Mengniu and Yashili

Note 4.8. Share of profit of associates

NOTE 5. INFORMATION CONCERNING

THE GROUP'S OPERATING ACTIVITIES

Note 5.1. Accounting principles

Note 5.2. Operating segments

Note 5.3. Other components of trading operating income 95

Note 5.4. Working capital

Note 5.5. Property, plant and equipment and capital

expenditure

Note 5.6. Off-balance sheet commitments relating

to operating activities

Note 5.7. Financial risks associated with operating

activities

100

NOTE 6.EVENTS AND TRANSACTIONS OUTSIDE

THE GROUP'S ORDINARY ACTIVITIES

101

Note 6.1. Other operating income (expense)

101

Note 6.2. Impact of the false safety alert issued by

Fonterra with respect to certain ingredients

supplied to the Group in Asia in 2013

102

Note 6.3. Savings and adaptation plan for the Group's

organizations in Europe

104

Note 6.4. Danone 2020 transformational plan

104

Note 6.5. Notification by the Spanish National

Commission for Markets and Competition

105

NOTE 7. NUMBER OF EMPLOYEES,

PERSONNEL COSTS AND EMPLOYEE BENEFITS 105

Note 7.1. Number of employees at fully consolidated

companies

105

Note 7.2. Personnel costs of fully consolidated

companies

105

Note 7.3. Retirement obligations and other long-term

benefits

106

Note 7.4. Group performance shares and stock-options

granted to certain employees

and corporate officers

110

Note 7.5. Company Savings Plan

111

NOTE 8. INCOME TAX

112

Note 8.1. Income tax

112

Note 8.2. Deferred taxes

113

Note 8.3. Tax loss carryforwards

114

NOTE 9. INTANGIBLE ASSETS

114

Note 9.1. Accounting principles

114

Note 9.2. Carrying amount and change during the period 115

Note 9.3. Impairment review

116