Danone // 2020 Universal Registration Document

4 77 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 6. Information concerning the Group’ s operating activities Note 6.3. Other components of recurring operating income Other income (expense) Year ended December 31 (in € millions) 2019 2020 Various taxes (a) (43) (36) Restructuring costs (b) (25) (7) Capital gains on disposals of property, plant and equipment and intangible assets 4 (4) Other (c) 11 (15) Total (53) (61) (a) Comprises notably sales taxes. (b) Excluding transformation of the Group’s operations and the integration of the Early Life Nutrition and Advanced Medical Nutrition businesses. (c) Comprises currency translation differences, asset impairment, provisions for doubtful receivables and several other components. Note 6.4. Working capital Accounting principles Inventories Inventories and work-in-progress are recognized at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. Trade receivables Trade receivables are recognized at amortized cost in the conso- lidated balance sheet. Impairment provisions Impairment provisions mainly concern disputes on which Danone is in discussion with customers. Impairment provisions for expected losses are recognized at the level of expected losses over the life of the receivable. Transactions in foreign currencies When they are not hedged, transactions denominated in foreign currencies are translated using the exchange rate prevailing on the date of the transaction. At period-end, trade receivables and trade payables denominated in foreign currencies are translated using the exchange rates applicable on that date. Foreign exchange gains and losses arising from transactions in foreign currencies are recognized under the heading Other income (expense) in the consolidated income statement. When they are hedged, the hedging impact is recognized in the same item as the hedged element. As a result, all such transactions are recognized at the hedged spot rate, swap points being recognized under the heading Other financial income (expense).