Danone // 2020 Universal Registration Document

4 81 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 Carrying amount and changes during the period 2019 2020 (in € millions) Land and buildings Machinery and equipment Other and assets in progress Total Land and buildings Machinery and equipment Other and assets in progress Total Carrying amount As of January 1 2,587 2,882 1,373 6,842 2,644 2,877 1,323 6,844 Capital expenditure (a) 96 228 602 926 56 109 725 890 Disposals (3) (10) 1 (12) (6) (19) (8) (34) Reclassification of assets held for sale (43) − − (43) − − − − Changes in consolidation scope (8) (9) (5) (21) 13 4 1 17 Translation adjustments 32 32 21 85 (154) (200) (108) (461) Impairment (a) (40) (79) (10) (128) (8) (45) (1) (54) Depreciation charges (a) (138) (495) (137) (770) (142) (431) (133) (706) Impacts of the above on the right-of-use assets (gross) (b) 119 32 46 197 191 29 78 298 Impacts of the above on the right-of-use assets (depreciation and impairment) (b) (115) (31) (81) (227) (120) (29) (81) (230) Other (c) 155 326 (486) (5) 125 313 (431) 7 As of December 31 2,644 2,877 1,323 6,844 2,600 2,608 1,365 6,572 Of which right-of- use assets (b) 663 207 201 1,072 709 196 189 1,095 Of which gross amount 4,266 8,217 2,339 14,822 4,371 8,067 2,366 14,804 Of which depreciation and impairment (1,622) (5,340) (1,016) (7,978) (1,771) (5,459) (1,001) (8,232) (a) Excluding right-of-use assets. (b) Right-of-use assets pursuant to IFRS16 Leases . (c) Corresponds mainly to the effects of the application of IAS 29 (see Note 1.3 of the Notes to the consolidated financial statements). Impairment review of property, plant and equipment Property, plant and equipment are reviewed for impairment when events or circumstances indicate that the recoverable amount of the asset (or group of assets to which it belongs) may be impaired: • the recoverable amount corresponds to the higher of the market value and value in use; • value in use is estimated on the basis of the discounted cash flows that the asset (or group of assets to which it belongs) is expected to generate over its estimated useful life in the conditions of use determined by the Group; • market value corresponds to the estimated net selling price that could be obtained by the Group in an arm’s length transaction. An impairment provision is recognized when the recoverable amount of the asset proves to be lower than its carrying amount. Capital expenditure during the period Year ended December 31 (in € millions, except percentage) 2019 2020 Related cash flows (951) (962) As a percentage of sales 3.8% 4.1%