PERNOD RICARD - 2018-2019 Universal registration document

6.

CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements

Expenses by type Note 3.5 Operating profit notably includes depreciation, amortisation and impairment expenses as well as personnel expenses as follows:

30.06.2019

30.06.2018

€ million

Depreciation, amortisation and impairment on property, plant and equipment and intangible assets

(288) (1,260)

(293) (1,286)

Salaries and payroll costs

Pensions, medical expenses and other similar benefits under defined benefit plans

(47) (33)

(43) (40)

Expense related to share-based payments TOTAL PERSONNEL EXPENSES

(1,340)

(1,369)

Notes to the balance sheet Note 4

Intangible assets and goodwill Note 4.1 Intangible assets are measured at cost on initial recognition. With the exception of assets with indefinite useful lives, they are amortised on a straight-line basis over their period of use, which is generally less than five years, and are written down when their recoverable amount is less than their net carrying amount. Amortisation of intangible assets is recognised within operating profit in the income statement.

In the context of the Group’s activities, and in accordance with IAS 38 (Intangible assets), research and development costs are recognised as expenses in the financial year during which they are incurred, except for certain development costs which meet the capitalisation criteria described by the standard.

Movements in the year

Foreign currency gains and losses

Other movements 30.06.2018

30.06.2017 Acquisitions Allowances Disposals

€ million

Goodwill

5,535

17 33 33

- - - -

(1) (3) (1) (5)

(94)

0 0

5,456

Brands

12,937

(209)

12,757

Other intangible assets

382

(10)

2 3

407

GROSS VALUE

18,854

82

(314)

18,620

Goodwill

(138)

- - - -

-

- 1 1

1

0 0 0 0

(137)

Brands

(1,294)

(71)

31

(1,334)

Other intangible assets

(270)

(29)

7

(291)

AMORTISATION/IMPAIRMENT

(1,702) 17,152

(101) (101)

2

39

(1,762) 16,858

INTANGIBLE ASSETS, NET

82

(3)

(274)

2

Movements in the year

Foreign currency gains and losses

Other movements 30.06.2019

30.06.2018 Acquisitions Allowances Disposals

€ million

Goodwill

5,456

8

- - - -

(4)

71

(3)

5,528

Brands

12,757

62 42

(34)

169

3

12,957

Other intangible assets

407

(8)

3

8

452

GROSS VALUE

18,620

112

(45)

243

8

18,937

Goodwill

(137)

- - - -

-

-

0

0

(137)

Brands

(1,334)

(65)

15

(24)

-

(1,408)

Other intangible assets

(291)

(30) (95) (95)

6

(2)

(1)

(318)

AMORTISATION/IMPAIRMENT

(1,762) 16,858

21

(26)

(1)

(1,863) 17,074

INTANGIBLE ASSETS, NET

112

(25)

217

7

173

2018-2019

PERNOD RICARD UNIVERSAL REGISTRATIONDOCUMENT