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Short-term investments
Short-term investments comprise marketable securities and other short-term investments: 
• 
Marketable securities comprise highly liquid instruments with short maturities that are easily convertible into a known amount 
of cash. They are measured as assets held for trading within the meaning of IFRS 9 Financial Instruments and are recognized 
at their fair value in the consolidated balance sheet; 
• 
Other short-term investments are measured at their fair value as securities held for trading within the meaning of IFRS 9. 
Changes in the fair value of short-term investments are recognized directly under the heading Interest income in the consolidated 
income statement. 
Translation of transactions denominated in foreign currencies 
At period-end, trade receivables and trade payables denominated in foreign currencies are translated using the exchange rates on that 
date. Foreign exchange gains and losses arising from the translation of borrowings denominated in foreign currencies or other 

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DANONE Consolidated financial statements 2019 43 
instruments that are used to hedge long-term investments denominated in the same currencies are recognized in consolidated equity 
under the heading Translation adjustments. 
Note 11.2. Liquidity risk and management policy 
Risk identification 
Danone does not use debt in either a recurring or a significant way in connection with its operating activities. Operating cash flows are 
generally sufficient to finance Danone’s business operations and organic growth. 
Danone may, however, take on additional debt to finance acquisitions or, occasionally to manage its cash cycle, particularly when 
dividends are paid to the Company’s shareholders. 
The Group’s objective is always to keep this debt at a level enabling it to maintain the flexibility of its financing sources. 
Liquidity risk arises mainly from the maturities of its (i) interest-bearing liabilities (bonds, bank debt, etc.), and (ii) non-interest-bearing 
liabilities (liabilities related to put options granted to non-controlling interests), and from payments on derivative instruments. 
As part of its debt management strategy, Danone regularly seeks new financing to refinance its existing debt. 
In those countries where centralized financing is not available, when medium-term financing is unavailable and/or in the case of some 
existing financing in a company prior to the acquisition by Danone of a controlling interest in it, Danone is exposed to liquidity risk 
involving limited amounts in those countries. 
More generally, it is possible that in the context of a systemic financial crisis, Danone may not be able to access the financing or 
refinancing it needs on the credit or capital markets, or to access such finance on satisfactory terms, which could have an adverse 
impact on its financial situation. 
In addition, 
Danone’s ability to access financing and the amount of its interest expense could depend in part on its credit rating by 
financial rating agencies. The Company’s short- and long-term debt ratings and any potential deterioration therein could result in higher 
financing costs and affect its access to financing.
Lastly, most of the financing agreements entered into by the Company (bank lines of credit and bonds) include a change of control 
provision, which offers creditors a right of early repayment in the event that a change in control of the Company causes its rating by the 
financial rating agencies to fall below investment grade.