L’Oréal obtains financing through medium-term bank loans and issues short-term marketable instruments in France and the United States. The amounts of the programmes are €5,000 million and $5,000 million respectively. None of the Group’s borrowings or debt contains an early repayment clause linked to financial ratios (covenants).
Liquidity on the short-term marketable instruments issues is provided by confirmed undrawn short-term credit facilities with banks, which amounted to €5,000 million at 31 December 2021,compared to €5,363 million at 31 December 2020 and €3,801 million at 31 December 2019.
Issuance costs of borrowings are expensed immediately in the year in which they are incurred.
All borrowings and debt are denominated in euros and can be broken down as follows:
| € millions | 31.12.2021 | 31.12.2020 | 31.12.2019 |
|---|---|---|---|
| Bonds | Bonds 31.12.2021 - |
Bonds 31.12.2020- |
Bonds 31.12.2019- |
| Short-term marketable instruments(1) | Short-term marketable instruments (1)31.12.2021 2,507.0 |
Short-term marketable instruments (1)31.12.2020360.0 |
Short-term marketable instruments (1)31.12.2019200.0 |
| Bank overdrafts and financing with the Group’s cash pool | Bank overdrafts and financing with the Group’s cash pool 31.12.2021 - |
Bank overdrafts and financing with the Group’s cash pool 31.12.2020- |
Bank overdrafts and financing with the Group’s cash pool 31.12.2019- |
| Other borrowings and debt(2) | Other borrowings and debt (2)31.12.2021 2,439.5 |
Other borrowings and debt (2)31.12.20209.3 |
Other borrowings and debt (2)31.12.20197.5 |
| TOTAL | TOTAL 31.12.2021 4,946.50 |
TOTAL31.12.2020369.3 | TOTAL31.12.2019207.5 |
To finance the repurchase of its own shares from Nestlé, the Group:
(1) issued commercial paper (€2,300 million) and
(2) took out a bridging loan (€1,904 million).
| € millions | 31.12.2021 | 31.12.2020 | 31.12.2019 |
|---|---|---|---|
| Less than 1 year | Less than 1 year 31.12.20214,939.8 |
Less than 1 year 31.12.2020361.7 |
Less than 1 year 31.12.2019200.9 |
| 1 to 5 years | 1 to 5 years 31.12.20216.7 |
1 to 5 years 31.12.20207.6 |
1 to 5 years 31.12.20196.6 |
| More than 5 years | More than 5 years 31.12.2021- |
More than 5 years 31.12.2020- |
More than 5 years 31.12.2019- |
| TOTAL | TOTAL31.12.20214,946.50 | TOTAL31.12.2020369.3 | TOTAL31.12.2019207.5 |
The fall in euro interest rates is now reflected by drawdowns of short-term marketable instruments with negative interest rates.
The average interest rate on short-term marketable instruments denominated in euros was -0.51% in 2021, compared with -0.31% in 2020 and -0.45% in 2019.
| € millions | 1 year or less | More than 1 year | Total |
|---|---|---|---|
| Trade accounts payable | Trade accounts payable1 year or less994.7 | Trade accounts payableMore than 1 year
|
Trade accounts payable Total 994.7 |
| Other current liabilities, of which | Other current liabilities, of which1 year or less1,096.2 | Other current liabilities, of whichMore than 1 year138.6 | Other current liabilities, of which Total 1,234.8 |
| Tax and employee-related payables | Tax and employee-related payables1 year or less572.5 | Tax and employee-related payablesMore than 1 year- | Tax and employee-related payables Total 572.5 |
| Payables related to non-current assets(1) | Payables related to non-current assets (1)1 year or less77.4 |
Payables related to non-current assets (1)More than 1 year138.6 |
Payables related to non-current assets (1)Total 216.0 |
| Other payables | Other payables 1 year or less446.3 |
Other payables More than 1 year- |
Other payables Total 446.3 |
(1) Non-current payables relate to earn-out clauses on acquisitions.
Accrual accounts included in trade accounts payable and other current liabilities are as follows:
| € millions | 31.12.2021 | 31.12.2020 | 31.12.2019 |
|---|---|---|---|
| Trade accounts payable | Trade accounts payable31.12.2021542.4 | Trade accounts payable31.12.2020482.0 | Trade accounts payable31.12.2019369.3 |
| Payables related to non-current assets | Payables related to non-current assets31.12.2021168.1 | Payables related to non-current assets31.12.2020230.2 | Payables related to non-current assets31.12.2019315.4 |
| Tax and employee-related payables, of which | Tax and employee-related payables, of which31.12.2021486.9 | Tax and employee-related payables, of which31.12.2020442.4 | Tax and employee-related payables, of which31.12.2019391.2 |
| Provision for employee Profit Sharing | Provision for employee Profit Sharing 31.12.202129.2 |
Provision for employee Profit Sharing 31.12.202028.5 |
Provision for employee Profit Sharing 31.12.201945.5 |
| Provision for incentives | Provision for incentives 31.12.2021135.2 |
Provision for incentives 31.12.2020122.1 |
Provision for incentives 31.12.2019103.6 |
| Other payables | Other payables31.12.2021199.9 | Other payables31.12.2020179.6 | Other payables31.12.201964.6 |
| TOTAL | TOTAL 31.12.20211,397.3 |
TOTAL 31.12.20201,334.2 |
TOTAL 31.12.20191,140.5 |
