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4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 12. Organization of financial risks and derivatives management
DANONE
REGISTRATION DOCUMENT 2015
126
Note 11.2. Other financial investments
Main changes during the period
2015 transactions
The Group did not carry out any material transactions.
2014 transactions
The Group's equity interest in the Mengniu group (Fresh Dairy Products, China), acquired in 2013, has been accounted for as an associate
since January 1, 2014 (see Note 4.4 of the Notes to the consolidated financial statements).
Carrying amount
As of December 31
(in € millions)
2014
2015
Investments in non-consolidated companies
92
70
Bonds and money-market funds
(a)
123
124
danone.communities
20
13
Other
(b)
68
52
Other long-term financial assets
210
189
Long-term loans
17
15
Other financial assets
228
204
Of which, unrealized capital gain (loss)
(c)
42
17
(a) Bonds and money-market funds held as the counterpart to certain “damage and personal protection” provisions.
(b) Comprises mainly security deposits required by the tax regulations of some countries in which the Group operates.
(c) Pre-tax amount, recognized under consolidated equity in Accumulated other comprehensive income.
Note 11.3. Other financial income and other financial expense
Accounting principles
Other financial income and other financial expense correspond
to financial income and expense other than income and expenses
related to net financial debt. They include, in particular, the following:
•
the ineffective portion of the hedges, in particular hedges of
currency risk related to operations in accordance with IAS 39,
Financial Instruments: Recognition and Measurement
;
•
the impact of the accretion of the present value of commitments
net of the expected return on plan assets of retirement commit-
ments and other long-term benefits;
•
bank commissions, including commissions for the non-use of
committed credit facilities (recognized in Other financial expense);
•
gains or losses on disposals of Investments in other non-conso-
lidated companies and Other long-term financial assets.
Change in other financial income (expense) in 2015
Other financial income (expense) was stable in 2015 relative to the
previous year.
Change in other financial income (expense) in 2014
The change in other financial income and expense resulted primarily
from the exceptionally high basis for comparison in 2013, which
included a capital gain relating to Danone's disposal of its interest
in SNI as part of the takeover of Centrale Danone (Morocco).
NOTE 12. ORGANIZATION OF FINANCIAL RISKS AND DERIVATIVES
MANAGEMENT
Note 12.1. Organization of financial risks management
As part of its normal business, the Group is exposed to financial risks,
especially foreign currency, financing and liquidity, interest rate,
counterparty risks, securities-related risks and commodity risks.
The Group's policy consists of (i) minimizing and managing the
impact that its exposure to financial market risks could have on its
results and, to a lesser extent, on its balance sheet, (ii) monitoring
and managing such exposure centrally, (iii) whenever the regulatory
and monetary frameworks so allow, executing the financial tran-
sactions locally or centrally, and (iv) using derivative instruments
only for the purpose of economic hedging.
Through its Treasury and Financing Department, which is part of the
Group Finance Department, the Group possesses the expertise and
tools (trading room, front and back office software) to act on different
financial markets following the standards generally implemented by