Note 26 - Cash and cash equivalents
Cash and cash equivalents reported in the statement of cash flows are calculated as follows:
| 31 Dec. 2019 | 31 Dec. 2018 | ||
|---|---|---|---|
| Cash and cash equivalents | 913 | 710 | |
| Short-term bank loans and overdrafts | (45) | (50) | |
| Cash and cash equivalents, net | 868 | 660 | |
Cash and cash equivalents break down as follows:
| 31 Dec. 2019 | 31 Dec. 2018 | ||
|---|---|---|---|
| Bank accounts | 753 | 431 | |
| Money market funds | 33 | 213 | |
| Term deposits and current accounts maturing in less than three months | 127 | 66 | |
| Cash and cash equivalents | 913 | 710 | |
Changes in working capital as reported in the statement of cash flows can be analysed as follows:
| 31 Dec. 2019 | 31 Dec. 2018 | ||
|---|---|---|---|
| Change in inventories | (26) | (23) | |
| Change in trade receivables | (50) | - | |
| Change in trade payables | 80 | 33 | |
| Change in other receivables and payables | 30 | 7 | |
| Change in lease liabilities | (9) | (1) | |
| Changes in working capital(*) | 25 | 1 | |
(*) Increase/(decrease) in cash and cash equivalents.
Changes in working capital represented a positive €25 million impact over the year, after a positive €16 million impact in 2018. Changes in cash and cash equivalents attributable to lease liabilities relate to new building leases in France in Other Activities, in respect of which rent-free periods have been negotiated.
Changes in working capital excluding lease liabilities represented a positive €16 million impact, reflecting (i) a rise of €49 million for Lagardère Publishing resulting from lower author advances at the end of the year and a year-on-year reduction in Partworks inventories, which had been affected by a busy launch schedule at the end of 2017, and (ii) a rise of €26 million for the non-retained scope, including a €22 million inflow relating to the collection of a portion of the proceeds from the sale of most of the magazine publishing titles to Czech Media Invest (CMI). The positive impact was offset by a €73 million negative impact for Lagardère Travel Retail (2018 had been boosted by a favourable one-off impact linked to the working capital optimisation drive).