97 / 364
4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 5. Information concerning the Group's operating activities
DANONE
REGISTRATION DOCUMENT 2015
97
Sales to the Group's largest customers and overdue receivables for which no impairment provision has been recognized
Year ended December 31
(in percentage)
2014
2015
Portion of sales made to the Group's largest customers
Group's largest customer
4.3%
4.2%
Group's five largest customers
13%
12%
Group's ten largest customers
19%
18%
Portion of overdue trade receivables for which
no impairment provision has been recognized
(a)
4.1%
4.3%
(a) More than 30 days overdue.
Trade receivables derecognized in connection with the non-recourse factoring programs
As of December 31
(in € millions)
2014
2015
Total trade receivables derecognized in connection
with the non-recourse factoring program
(a)
257
111
(a) These relate to several Group subsidiaries that use non-recourse factoring programs (with transfer of risks and benefits).
Reverse factoring programs
The Group uses reverse factoring programs in the normal course
of its business. These programs are implemented without major
changes to payment terms and are used only for approved invoices
and payments made in accordance with the terms and conditions of
the invoice (in particular the payment term). The amounts to be paid
via
these programs are recognized within operating liabilities under
the Trade payables heading until paid by Danone, which has the effect
of clearing the commitment. Several of the Group's subsidiaries in
various parts of the world are involved in these programs, none of
which is individually material.
Note 5.5. Property, plant and equipment and capital expenditure
Accounting principles
Property, plant and equipment acquired by the Group are recognized
at cost of acquisition or at construction cost.
Assets used by the Group under finance leases are recognized
as Property, plant and equipment in the consolidated balance
sheet, when, in substance, the terms of the lease transfer to the
Group essentially all of the risks and rewards associated with the
ownership of the asset. The asset is recognized for an amount that
corresponds to the lower of fair value and the discounted value of
future lease payments. The assessment of the level of risks and
rewards transferred is based on an analysis of the lease agreement.
The financial debt associated with the leased asset is recognized as
a liability in the consolidated balance sheet under Financial debt.
Interest on borrowings to finance the construction of property, plant
and equipment until their operational start date is considered to be
an integral part of the cost price of the property, plant and equip-
ment, provided that the criteria of IAS 23,
Borrowing Costs
are met.
Depreciation
Depreciation of property, plant and equipment is calculated on a
straight-line basis over the estimated useful lives as follows:
•
buildings: 15 to 40 years;
•
equipment, furniture and fixtures: 5 to 20 years;
•
other: 3 to 10 years.
The depreciation charges in respect of property, plant and equipment
are allocated to various headings in the income statement on the
basis of the nature and utilization of the assets concerned.
Refundable containers
Refundable containers (including, in particular, jugs in the Waters
Division) are recognized at cost. They are depreciated on a straight-
line basis, based on available statistics for each Group entity, over
the shorter of the following lengths of time:
•
physical useful life, taking into account the internal and external
breakage rates and wear and tear;
•
commercial useful life, taking into account planned or likely
modifications of containers.
When the amount of the refund changes, the liability for deposits
received is measured based on the new amount.