6 . 6.5. NOTES TO THE FINANCIAL STATEMENTS OF L’ORÉAL SA Note contents NOTE 1 Accounting principles 353 NOTE 2 Sales 355 NOTE 3 Other revenue 355 NOTE 4 Average headcount 355 NOTE 5 Depreciation, amortisation and charges to provisions 355 NOTE 6 Net financial income 355 NOTE 7 Exceptional items 356 NOTE 8 Income tax 356 NOTE 9 Increases or reductions in future tax liabilities 356 NOTE 10 Research costs 356 NOTE 11 Intangible assets 357 NOTE 12 Tangible assets 357 NOTE 13 Non-current assets held under finance leases 358 NOTE 14 Financial assets 358 NOTE 15 Marketable securities 359 NOTE 16 Maturity of receivables 359 NOTE 17 Stock purchase or subscription options – Free shares 359 NOTE 18 Provisions for liabilities and charges 360 NOTE 19 Borrowings and debt 361 NOTE 20 Maturity of payables 361 NOTE 21 Unrealised exchange gains and losses 362 NOTE 22 Derivative financial instruments 362 NOTE 23 Transactions and balances with related entities and parties 363 NOTE 24 Off-balance sheet commitments 363 NOTE 25 Changes in working capital 364 NOTE 26 Changes in other financial assets 364 NOTE 27 Net cash and cash equivalents at the end of the year 364 NOTE 28 Other information 364 NOTE 29 Subsequent events 364 NOTE 30 Table of subsidiaries and holdings 365 Highlights of the financial year On 7 December 2021, the L’Oréal Board of Directors approved a strategic transaction consisting of the repurchase by L’Oréal, as part of its share buyback programme, of 22.26 million of its own shares – representing 4% of its capital – from Nestlé. The  total price paid to Nestlé was €8.904 billion. This transaction led the Group to take out a bridging loan of €1.9  billion and issue commercial paper for €2.3  billion, with the balance financed by the cash available at 31 December 2021. 352 L ’ ORÉAL I UNIVERSAL REGISTRATION DOCUMENT 2021 PARENT COMPANY FINANCIAL STATEMENTS Notes to the financial statements of L’Oréal SA