5 Trade accounts receivable Accounts receivable from customers are recorded at their nominal value, which corresponds to their fair value. The current trade accounts receivable impairment methodology at L’Oréal reflects the level of expected losses on the customer portfolio, calculated on the basis of past statistics from the outset of the receivable. Moreover, this risk is contained thanks to the credit insurance policy applied by the Group. Except when local conditions do not allow it, the Group has insurance cover for the subsidiaries. 3.1. Segment information 3.1.1. Information by business segment The Group’s business activities are organised into four Divisions. In its markets, each Operational Division develops and enhances a range of its own brand of consumer products: • the Professional Products Division provides expertise to beauty professionals. For over 1 00 years, this Division has acquired extensive knowledge of, and provided tailored support solutions for, the hairdressing sector. It has built up a unique brand portfolio which currently includes L’Oréal Professionnel, Kérastase, Redken, Matrix and PureOlogy; • the Consumer Products Division’s goal is to democratise access to the best that the world of beauty has to offer. The Di vision is underpinned by four major global brands (L’Oréal Paris, Garnier, Maybelline New York and NYX Professional Makeup), and by the deployment of its specialised and regional brands (Stylenanda, Essie, Dark and Lovely, Mixa, Magic , etc.); • L’Oréal Luxe creates exceptional experiences and products, for the most demanding consumers in selective distribution. The Division has built a unique portfolio of prestigious brands including iconic mainstream, aspirational, alternative and specialist brands (Lancôme, Kiehl’s, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Biotherm, Helena Rubinstein, Shu Uemura, IT Cosmetics, Urban Decay, Ralph Lauren, Mugler, Viktor&Rolf, Valentino, Azzaro, etc.); • the Active Cosmetics Division, whose goal is to help everyone in their quest to have healthy and beautiful skin. Its portfolio of highly complementary brands (La Roche- Posay, Vichy, CeraVe, SkinCeuticals, etc.) is designed to keep pace with major skincare trends and recommendations of healthcare professionals. The “non-allocated” item includes expenses incurred by the Functional Divisions, fundamental research and the cost of free shares not allocated to the Divisions. It also includes non- core businesses, such as reinsurance. The performance of each Division is measured on the basis of operating profit. WEIGHT OF NET SALES BY DIVISION OVER THE THREE PERIODS € mill ions 2021 Sales Operating profit Operational Assets (1) Investments in tangible and intangible assets Depreciation, amortisation and provisions Professional Products 3,783.9 806.9 3,251.6 80.3 175.1 Consumer Products 12,233.5 2,466.0 10,186.6 370.7 709.1 L’Oréal Luxe 12,346.2 2,816.3 9,532.4 293.3 473.6 Active Cosmetics 3,924.0 990.5 2,957.4 80.1 117.5 TOTAL OF DIVISIONS 32,287.6 7,079.7 25,927.9 824.4 1,475.3 Non-allocated - -919.4 1,047.7 259.6 215.6 GROUP 32,287.6 6,160.3 26,975.7 1,084.0 1,690.9 (1) Operational assets mainly include goodwill, intangible and tangible assets, right-of-use assets, trade accounts receivable and inventories. L’Oréal Luxe 38.2% 37.9% 11.7% 12.2% L’Oréal Luxe 36.4% L’Oréal Luxe 36.9% Consumer Products 41.8% 11.1% 10.8% 42.7% Professional Products 11.5% Active Cosmetics 8.9% 2021 SALES: €32,288 M 2020 SALES: €27,992 M 2019 SALES: €29,874 M Professional Products Active Cosmetics Active Cosmetics Professional Products Consumer Pr oducts Consumer Products L ’ ORÉAL I UNIVERS AL REGISTRATION DOCUMENT 2021 295 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements