Modèle Word ddr danone

 

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DANONE Consolidated financial statements 2019 14 
Note 2. Highlights of the year 
Notes 
Disposal of Earthbound Farm 
3 
Impairment of the investment in associates Yashili 
5.6 
Subsequent events 
17 
Note 3. Disposal of Earthbound Farm to Taylor 
Farms (EDP, United States) 
Note 3.1. Context of the transaction 
On April 11, 2019, Danone signed a definitive agreement for the sale of Earthbound Farm, the US organic salads business, to Taylor 
Farms. The sale of Earthbound Farm is part of Danone’s portfolio management and capital allocation optimization strategy.
Note 3.2. Recognition of the transaction 
Following the receipt of an unconditional offer, non-current assets and related liabilities have been classified as held for sale as from 
March 31, 2019, as required by IFRS 5.
They have been thus measured at the lower of their carrying amount and fair value less costs to sell based on the terms of the 
transaction. Since their carrying amount exceeded their fair value less costs to sell by €119 million, their carrying amount has been 
written down by this amount and the corresponding impairment provision has been recognized in Other operating income (expense) for 
the year. 
The transaction was completed on April 11, 2019. The disposal net loss amounted to €(47) million including an income tax credit of 
€107 million related to the deductibility of a portion of the capital loss on disposal. 
Note 4. Fully consolidated companies and non-
controlling interests 
Note 4.1. Accounting principles 
Fully consolidated companies 
The Group fully consolidates all subsidiaries over which it has the ability to exercise exclusive control, whether directly or indirectly. 
Exclusive control over an investee is assessed (i) by the power the Group has over said investee, (ii) whether it is exposed, or has 
rights, to variable returns from its relationship with the investee, and (iii) whether it uses its power over the investee to affect the amount 
of the Group’s returns. 
Full consolidation enables the recognition of all assets, liabilities and income statement items relating to the companies concerned in the 
Group’s consolidated financial statements, after the elimination of intercompany transactions, the portion of the net income and equity 
attributable to owners of the Company (Group share) being distinguished from the portion rela
ting to other shareholders’ interests (Non-
controlling interests). Intercompany balances and all material intercompany transactions between consolidated entities (including 
dividends) are eliminated in the consolidated financial statements.