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

NOTE 10. FINANCING AND FINANCIAL

SECURITY, NET DEBT AND COST

OF NET DEBT

119

Note 10.1. Accounting principles

119

Note 10.2. Liquidity risk and management policy

119

Note 10.3. Group's financing and financial security

situation managed at the Company level

and changes during the period

120

Note 10.4. Short-term investments

123

Note 10.5. Net debt

123

Note 10.6. Cost of net debt

124

Note 10.7. Financial risks associated with the financing

activity

124

NOTE 11. OTHER FINANCIAL INVESTMENTS,

OTHER FINANCIAL INCOME (EXPENSE)

125

Note 11.1. Accounting principles

125

Note 11.2. Other financial investments

126

Note 11.3. Other financial income and other financial

expense

126

NOTE 12. ORGANIZATION OF FINANCIAL RISKS

AND DERIVATIVES MANAGEMENT

126

Note 12.1. Organization of financial risks management

126

Note 12.2. Accounting principles

127

Note 12.3. Derivatives used to hedge operational

currency risk

127

Note 12.4. Derivatives used to hedge currency and

translation risk on net assets

129

Note 12.5. Derivatives used to hedge interest rate risk

130

Note 12.6. Counterparty risk

131

Note 12.7. Securities risk

131

Note 12.8. Reconciliation of the consolidated balance

sheet by class and accounting category

132

NOTE 13. DANONE SHARES, DIVIDEND,

EARNINGS PER SHARE

133

Note 13.1. Accounting principles

133

Note 13.2. Transactions and changes involving DANONE

133

Note 13.3 Outstanding DANONE shares

134

Note 13.4. Earnings per share – Group share

134

Note 13.5. Dividend

135

NOTE 14. OTHER NON-CURRENT PROVISIONS

AND LIABILITIES AND LEGAL

AND ARBITRATION PROCEEDINGS

136

Note 14.1. Accounting principles

136

Note 14.2. Carrying amount and change during the period 136

Note 14.3. Legal and arbitration proceedings

136

NOTE 15. RELATED PARTY TRANSACTIONS

137

Note 15.1. Accounting principles

137

Note 15.2. Transactions with associates

137

Note 15.3. Compensation and benefits granted to

members of the Executive Committee

and Board of Directors

137

Note 15.4. Related party agreements

137

NOTE 16. SUBSEQUENT EVENTS

137

NOTE 17. LIST OF SUBSIDIARIES

AS OF DECEMBER 31, 2015

138

Note 17.1. Fully consolidated holding companies and

financial companies held directly by the Company 138

Note 17.2. Main fully consolidated companies of the

Fresh Dairy Products Division

138

Note 17.3. Main fully consolidated companies of the

Waters Division

139

Note 17.4. Main fully consolidated companies of the Early

Life Nutrition Division

140

Note 17.5. Main fully consolidated companies in the

Medical Nutrition Division

141

Note 17.6. Main investments in associates

141